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☆ Here's why Social Security cost-of-living adjustments may be smaller in 2025 and beyond
▼ + stars: | 2024-03-15 | by ( Lorie Konish | ) www.cnbc.com time to read: +3 min

Peopleimages | Istock | Getty ImagesEarly estimates for the 2025 Social Security COLANew government data points to a 2.4% Social Security cost-of-living adjustment for 2025, The Senior Citizens League estimates, based on new government inflation data released this week. The Social Security Administration typically announces the cost-of-living adjustment for the following year in October. In the meantime, experts say there are steps retirees can take to help compensate for the prospect of lower benefit increases. Annuities, which provide fixed income in retirement in exchange for a lump-sum investment, can be one way to supplement a retiree's income, LaVigne said. Consult with a financial advisorBefore purchasing an annuity or other retirement income strategy, it helps to consult with a professional.

Persons: " Johnson, Johnson, Lisa Featherngill, Featherngill, Kelly LaVigne, You've, LaVigne Organizations: Istock, Getty, Security COLA, Social Security, Senior Citizens League, Urban, Clerical Workers, CPI, Comerica Wealth Management, Social, Allianz Life Locations: Winston, Salem , North Carolina

☆ The average tax refund is over $3,000. Here are 7 ways to put it to good use
▼ + stars: | 2024-03-15 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +7 min

New York CNN —The average federal tax refund is more than $3,000, according to the latest data from the IRS. … They don’t understand how much interest they’re paying,” Russ said. Create or add to an emergency fundYou can use your refund to start or bolster an emergency fund. If you have high-rate debt and you’re lacking emergency savings, Russ suggested you might use a portion of your refund to attack your debt and the other portion to create an emergency fund. If you need the money within three years, you might consider putting your refund in certificates of deposits and US Treasury bonds.

Persons: you’re, ”, Eric Bronnenkant, Keyana Russ, ” Russ, Russ, Bronnenkant, Roth, Bronnenkant, Charles Schwab, ” Bronnenkant Organizations: New, New York CNN, Ponds Financial, Invest, Roth IRA, Treasury Locations: New York, Ponds

☆ Why Social Security is so important for women: ‘It all comes down to longevity,’ expert says
▼ + stars: | 2024-03-15 | by ( Greg Iacurci | ) www.cnbc.com time to read: +4 min

"It all comes down to longevity," Mary Beth Franklin, a certified financial planner and Social Security expert, said Thursday at Financial Advisor Magazine's annual Invest in Women conference in West Palm Beach, Florida. Beneficiaries get an 8% guaranteed increase in their Social Security checks for every year they defer beyond their full retirement age, up to 70 years old. Why Social Security is 'crucial' for womenGuaranteed income such as Social Security is "crucial" for women, Franklin said. "Full retirement age" is the age at which someone becomes eligible for their full Social Security benefit. Importantly, continuing to work after claiming benefits — if before full retirement age — may temporarily reduce your Social Security benefits due to an earnings cap.

Persons: Momo, Mary Beth Franklin, Franklin, — Organizations: Getty, Social, Social Security, Women, Security, Social Security Administration, Centers for Disease Control Locations: BEACH, Fla, West Palm Beach , Florida

☆ Nearly half of young adults have 'money dysmorphia,' survey finds. Here are the symptoms
▼ + stars: | 2024-03-13 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

Overwhelming evidence suggests social media has a negative impact on self-esteem. That's not only true for how people feel about their appearance and social status but also their financial wellbeing and economic standing. "Money dysmorphia is kind of like today's version of keeping up with the Joneses," said Courtney Alev, consumer financial advocate at Credit Karma. Not surprisingly, money dysmorphia is even more prevalent among younger generations, according to Credit Karma. Many of those who experience money dysmorphia have above-average savings, Credit Karma also found.

Persons: That's, Credit Karma, Courtney Alev, dysmorphia, Carolyn McClanahan, Karma, Alev Organizations: Credit, Finance, Planning Partners Locations: Jacksonville , Florida

☆ These niche funds provide investors with steady monthly payments in retirement
▼ + stars: | 2024-03-12 | by ( Michelle Fox | ) www.cnbc.com time to read: +3 min

Some investors looking for steady income in retirement are turning to managed payout funds. There are just a handful of these niche mutual funds, which pay monthly income to investors, Morningstar portfolio strategist Amy Arnott said. Schwab offers three such funds: Schwab Monthly Income Fund - Income Payout (SWLRX), Schwab Monthly Income Fund - Flexible Payout (SWKRX) and Schwab Monthly Income Fund - Target Payout (SWJRX). The Schwab Monthly Income Fund - Target Payout (SWJRX), on the other hand, aims to offer a 5% annual payout. Managed payout funds are not offered in many defined contribution plans, such as 401(k)s. In fact, a 2022 Cerulli survey of defined contribution plan consultants showed just 17% of the plans offered any managed payout funds.

Persons: Morningstar, Amy Arnott, Schwab, Inga Rachwald, Schwab's, Morningstar's Arnott, Rachwald, Arnott, Brett Lozowski, doesn't Organizations: Schwab, Income, Schwab Asset Management, Planning Partners

☆ The minimum amount of money to save in case of an emergency, according to a CFP
▼ + stars: | 2024-03-12 | by ( Annie Probert | ) www.cnbc.com time to read: +1 min

Experts generally say emergency savings should cover three to six months of living expenses. In fact, nearly 1 in 4 U.S. adults say they have no emergency savings, a recent Bankrate survey found. "Emergency savings demands a personalized approach," he says. "While the conventional wisdom endorses three to six months of living expenses, I persistently advocate that any amount is superior to none." Kellar recommends breaking down your emergency savings goals into bite-sized amounts — and celebrating wins where you can.

Persons: Will Kellar, Kellar Organizations: Human Locations: U.S

☆ I finally invested my HSA money after writing about millionaires who take advantage of a 'triple tax threat strategy.' I could pocket an extra $233,000 by the time I retire.
▼ + stars: | 2024-03-09 | by ( Kathleen Elkins | ) www.businessinsider.com time to read: +12 min

After 65, you can use your HSA money to cover any expense without incurring a penalty, but the funds are subject to income tax. I happily used my HSA money to cover the $1,075 bill. An even smarter move would have been to invest my HSA funds (which I eventually did) and not touch them until age 65. I was relieved when Weiss told me that he also invests his HSA money in a retirement date fund. I asked about how often I should be transferring money from my cash account, where my HSA funds land automatically, to my investment account.

Persons: I've, Brent Weiss, Roth IRAs, HSAs, It's, Weiss, Max, don't, Kathleen Elkins, —, I'm Organizations: Business, Vanguard, IRS Locations: That's, Epsom

☆ 4 tips financial planners are always giving solopreneurs and small-business owners
▼ + stars: | 2024-03-06 | by ( Bella Sayegh | ) www.businessinsider.com time to read: +7 min

Solo business owners face unique challenges in managing business finances. Starting simple and delegating tasks are important skills to help owners stay organized. Build in necessary expensesSolopreneurs often operate all aspects of their business — building a product, dealing with customers, and keeping track of finances. Business owners should also be mindful of how they go about outsourcing these services , Camp added. Camp said these resources could help solo business owners build their teams and stay organized without losing money.

Persons: —, Rachael Camp, you’re, it's, ” Camp, Kathryn Knighton, Knighton, ”, Camp, “, ” Knighton, don’t Organizations: Service, Wealth, Camp, Business, Small Business Administration Locations: ” Knighton

☆ Retirement prospects for women can be ‘pretty bleak,’ expert says — but there are ways to prepare
▼ + stars: | 2024-03-06 | by ( Greg Iacurci | ) www.cnbc.com time to read: +2 min

About 50% of women ages 55 to 66 have no personal retirement savings, a higher share than men (47%), according to U.S. Census Bureau data. Those who do have retirement savings are less likely to have $100,000 or more (22% vs. 30%). "The picture is pretty bleak for women" who don't save enough for retirement, Cindy Hounsell, founder and president of the Women's Institute for a Secure Retirement, said Tuesday at CNBC's Women & Wealth event. watch nowThey may become burdens on their children if they have kids who can offer financial support, she said at the Women & Wealth event. Compounding the problem: Caregiving, especially for a spouse, has a "more detrimental economic impact" on women, according to the National Institute on Retirement Security.

Persons: Momo, Cindy Hounsell, Marianela Collado, Collado Organizations: Stone, Getty, Census, Women's Institute, CNBC's, Pew Research, Security, Financial, National Institute on Retirement Security Locations: U.S, Plantation , Florida

☆ Self-made millionaire Vivian Tu went from 'scrimping and saving' to creating wealth with this mindset shift
▼ + stars: | 2024-03-06 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

"I was still living below my means and then investing that larger proportional difference," she said. Those raises helped Tu invest and grow her wealth more quickly. Why both saving and investing are criticalTu's mindset shift is one other women can learn from. Lifelong saving and investing are both critical for women, according to Boston-based certified financial planner Catherine Valega, founder of Green Bee Advisory. Leaving the workforce reduces earnings and the chance to save and invest for retirement, Valega said.

Persons: Vivian Tu, Heidi Gutman, Tu, Catherine Valega, Valega Organizations: Green Bee, Federal Reserve Bank of Minneapolis Locations: Boston

☆ This move could help protect your portfolio from volatility as stocks trade near their highs
▼ + stars: | 2024-03-05 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +5 min

There's a party happening in stocks in 2024, and though investors may be reluctant, it could be time to think of taking a few chips off the table. My portfolio has recovered [from 2022],'" said Marguerita Cheng, certified financial planner and CEO of Blue Ocean Global Wealth in Gaithersburg, Maryland. "I tell people we're not selling everything, but we need to give the portfolio the TLC it deserves – this is the fine-tuning of your portfolio," she added. Be tax aware: Investors may be wary of selling highly appreciated holdings within their taxable accounts, which can incur levies on capital gains. Cheng of Blue Ocean has been turning toward dividend payers, as well as small and midcap stocks.

Persons: There's, they're, Marguerita Cheng, it's, Morningstar, Carla Adams, –, Sean Lovison, Cheng, Russell, Matson, – that's, It's, Jon Ulin Organizations: Nasdaq, Dow Jones, Netflix, Blue, Global Wealth, CNBC's, CFP, Ametrine, Investors, redeploy, Pfizer, Micron Technology, Holdings, Federal Reserve, Ulin, Wealth Management Locations: Gaithersburg , Maryland, Lake Orion , Michigan, Moorestown , New Jersey, SDVY, Boise, Boca Raton , Florida

☆ You could 'owe huge taxes' next year if you don't make this update, says CFP—how to check if you need to
▼ + stars: | 2024-03-05 | by ( Mike Winters | ) www.cnbc.com time to read: +3 min

If you contribute too little money, you might receive a sizable tax bill you weren't expecting when you file your taxes next year. Take adding dependents, for example: They can lower your tax bill by thousands of dollars if you claim credits like the child tax credit, the child and dependent care credit or the earned income tax credit. "Tax withheld on bonuses and stock compensation is typically — though not always — withheld at a flat 22% for federal taxes," says Carla Adams, a certified financial planner in Michigan. However, those in a higher tax bracket could owe huge taxes." How to check if your tax withholding is on track

Persons: it's, Roth, Michelle Gessner, Carla Adams Organizations: Internal Revenue Locations: Houston, Michigan

☆ I'm a certified financial planner and tax reporter at CNBC. How I tackle my own retirement tax planning
▼ + stars: | 2024-03-04 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +3 min

Now, as a tax reporter for CNBC, I focus on tax strategy all year, including how retirement contribution decisions may affect long-term plans. Pretax vs. Roth retirement contributionsOne of the biggest questions from investors is whether to save money into a pretax or after-tax Roth account. Early in my career, I focused on Roth savings, which made sense with lower income and decades until retirement. I've prioritized my employer match with pretax and Roth 401(k) deferrals, while also making Roth individual retirement account contributions. There's also a small nest egg in my health savings account, which I added to during my years of self-employment.

Persons: Seksan, I've, Ashton Lawrence, Roth, you'll, pretax, There's, JoAnn May Organizations: CNBC, CFP, Mariner Wealth Advisors, Asset Management Locations: Greenville , South Carolina, Berwyn , Illinois

☆ This financial move should be a 'last resort,' says CFP—but 1 in 5 workers has done it
▼ + stars: | 2024-03-04 | by ( Ryan Ermey | ) www.cnbc.com time to read: +3 min

In fact, about 1 in 5 workers have borrowed or withdrawn money from retirement accounts, according to a recent survey from SoFi. In a narrow set of circumstances, it can be a smart financial move, says Jared Friedman, a certified financial planner and partner at Redwood Financial Planning in Scotch Plains, New Jersey. How 401(k) loans workThe specifics of a 401(k) loan will vary from employer to employer, but here's how they generally work. Like most loans, you'll be charged a rate of interest. And while money in your 401(k) is put in pre-tax, the money you pay back is in post-tax dollars.

Persons: doesn't, Anne Lester, Jared Friedman, Friedman, you'll, haven't Organizations: CNBC, Redwood Financial Locations: SoFi, Scotch Plains , New Jersey

☆ 'A budget is a picture of what your money is doing,' The Budgetnista says. Here's where to start
▼ + stars: | 2024-03-03 | by ( Ana Teresa Solá | ) www.cnbc.com time to read: +2 min

Karan Kapoor | The Image Bank | Getty ImagesHaving a strong budget can help you build financial wellness. "A budget is a picture of what your money is doing," Tiffany Aliche, also known as The Budgetnista, told CNBC during a Women & Wealth livestream. You have to understand what your money is doing," said Aliche, a personal financial educator and author of "Get Good with Money." Make a list of expenses: The first thing to do is write a list of all the things you spend money on within a given month, said Aliche. It can also help to list out expenses you don't pay every month, such as annual memberships or quarterly taxes.

Persons: Karan Kapoor, Tiffany Aliche, Sophia Bera Daigle, who's Organizations: Bank, Getty, CNBC, Wealth, Gen, CNBC Financial Locations: Austin , Texas

☆ 93% of women are stressed about money. Building a cash reserve can help, experts say
▼ + stars: | 2024-03-01 | by ( Jessica Dickler | ) www.cnbc.com time to read: +3 min

Largely as a result of the wealth gap, women tend to be more financially vulnerable than their male counterparts. Regardless of their household income, 93% of women feel stress when it comes to money, according to a new report by Fidelity Investments. In fact, financial stress levels drastically decrease with each additional month of emergency savings set aside, according to Fidelity. Roughly 81% of women with no emergency savings felt a fair amount or a lot of stress. Once women have three months' worth of emergency savings, only 26% report high stress levels, Fidelity found.

Persons: Stacy Francis, Francis, Paulette Perhach, Perhach, Lorna Kapusta Organizations: Francis Financial, Fidelity Investments, CNBC, Fidelity Locations: New York

☆ Private credit may offer high yields, but investors should tread carefully. What to know
▼ + stars: | 2024-02-29 | by ( Michelle Fox | ) www.cnbc.com time to read: +8 min

Private credit has become a hot investment on Wall Street as institutional investors seek out alternative investments with attractive dividends. "Investors might consider allocating a portion of their portfolio to private credit, depending on their individual risk tolerance, investment horizon and financial goals." Private credit funds have yields generally in the low-teens, although it can vary, he said. In a February report on U.S. life insurance ratings, Fitch Ratings said, "elevated private credit borrower leverage and a relative deterioration in private credit terms and conditions during more competitive lending environments are adding to pressures in the credit quality of private credit assets." The majority of the portfolio is in direct lending private credit, but a portion is also in publicly-traded securities of larger corporate issuers.

Persons: SoFi, Vivek Paul, Paul, Goldman, Greg Olafson, David Solomon, Fitch, Lisa Kwasnowski, Blackstone, Kwasnowski, Chuck Failla, it's, Failla, Oppenheimer, Mitchel Penn, Penn, Ares Capital, They've Organizations: Street, Franklin BSP Private Credit Fund, CNBC, Wall, BlackRock, Research, Management, UBS, Blackstone Private Credit Fund, Sovereign Financial Group, Securities and Exchange Commission, Owl, Golub, Ares, Sixth, SEC Locations: DBRS Morningstar's

I wondered if ChatGPT would give me good retirement adviceSpeaking of tiresome work, I've spent many years putting off my retirement plan beyond my husband's 401(k). First, I asked Rush and ChatGPT the same question: What are the best retirement strategies for self-employed people? They recommended similar types of accountsRush and ChatGPT had similar suggestions regarding which kinds of retirement savings accounts freelancers should consider. ChatGPT also mentioned determining your risk tolerance and diversifying your investment portfolio accordingly, as well as including healthcare expenses in your retirement plans by contributing to an HSA, and reassessing and adjusting your retirement plans regularly. I'm happy getting retirement advice from a humanBut Rush had a few other suggestions that ChatGPT didn't list in its response to my question.

Persons: ChatGPT, I've, Justin Rush, Rush, it's, they've, doesn't Organizations: Service, Business, Google, IRA

☆ A certified financial planner shares 4 things new real-estate investors should do before they buy their first property — including 2 budgeting strategies for building up savings
▼ + stars: | 2024-02-28 | by ( William Edwards | ) www.businessinsider.com time to read: +5 min

Getting into real-estate investing for the first time can be a scary thing. But according to Kyle Mast, a certified financial planner, preparation can help mitigate fear when buying your first property. Establish a visionThe first is to develop a vision and a goal for where you want to go with real-estate investing and what you hope to achieve with it. The bigger this number is, the better position you are in to both secure a lower mortgage rate and weather any real-estate investing storms. "I would say one of the best things you can do is if you know somebody that does real-estate investing, buy them coffee, and just talk to them about it and see what they did."

Persons: Kyle Mast, Mast, you've, Dave Meyer, It's

☆ These surprise sources of income could cost you during tax season
▼ + stars: | 2024-02-28 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

Investors are celebrating a year of easy-to-obtain interest income, but the Tax Man will want his slice this spring. Institutions report interest income of $10 or more to their customers and the Internal Revenue Service on Form 1099-INT . For instance, you can be on the hook for an accuracy-related penalty of 20% of the underpayment of the tax. Interest income from these I bonds is subject to federal income tax, but investors don't receive it until they redeem the bond or it matures. "It might be worth it to buy the MLP and pay the tax," Kearns said.

Persons: Elizabeth Buffardi, Buffardi, you'll, Jerrod Pearce, Adam Markowitz, Brian Kearns, Kearns Organizations: Internal Revenue Service, IRS, CPA, Creative Planning, Luminary, CFP, Haddam, Advisors, MLP Locations: Oak Brook , Illinois, Overland Park , Kansas, Windermere , Florida, Evanston , Illinois

According to Certified Financial Planner Lauryn Williams, having good credit is more important than ever due to lingering inflation, higher interest rates, and layoffs. A good credit score, defined as 670 or above with the FICO credit model, is crucial if you want to qualify for the lowest mortgage rates, lower credit card interest rates, and more. Potential lenders are more likely to approve someone with a 700 credit score than a 550 credit score. It also positively impacts your credit utilization, which affects your credit score. Think about your credit report as a reference for the job you did handling your credit," Williams told Business Insider.

Persons: Lauryn Williams, Williams Organizations: Service, Business

☆ Unemployment benefits, emergency savings. Here's how to get by without a paycheck after a job loss
▼ + stars: | 2024-02-26 | by ( Annie Nova | ) www.cnbc.com time to read: +3 min

"Job loss is extremely traumatic, but it is important to remember that it is not the end of the world," said Michele Evermore, a senior fellow at The Century Foundation. The average weekly benefit ranges greatly between states, Evermore said. Job loss is extremely traumatic. Michele Evermore a senior fellow at The Century FoundationWhether or not the package affects your unemployment benefits depends on your state's rules, Evermore said. Strategize which savings to tap, in what orderHopefully you have an emergency savings fund to draw from, Curtis said.

Persons: Michele Evermore, Evermore, you've, Carolyn McClanahan, McClanahan, Curtis Organizations: Google, Microsoft, Paramount, CNBC, The Century Foundation, The Century, Employment Security Department, Planning Partners, CNBC's Locations: New York, Washington, Jacksonville , Florida

☆ Now is the 'perfect time' to check your Social Security benefit, says CFP—even if you're years away from retirement
▼ + stars: | 2024-02-26 | by ( Ryan Ermey | ) www.cnbc.com time to read: +3 min

"Review your 401(k) balance, review your bank balances, review your credit limits, and yes, check on your Social Security Statement." Just create an account on the Social Security Administration's website (you'll have to submit some identifying documents) and download your form. The strategies around timing when to claim Social Security depend on myriad factors. "That way you can look at [your estimated retirement income] in total with your 401(k), Roth IRA and Social Security benefits." Why now's a good time to check your Social Security statement

Persons: Jared Friedman, isn't, aren't, Friedman, you'll, Roth, you've Organizations: Social Security, Redwood Financial, Security, Roth IRA Locations: Scotch Plains , New Jersey

☆ Your home sale may leave you in a tax shock. Here's how to reduce your capital gains tax bill
▼ + stars: | 2024-02-24 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +3 min

Those gains could trigger a tax bill this season, depending on the size of the windfall, experts say. In 2023, home sellers made a $121,000 profit on the typical median-priced single-family home, according to ATTOM, a nationwide property database. Still, "the tax laws were written to encourage homeownership," and many sellers qualify for a tax break, Ringbauer said. Single homeowners can shield up to $250,000 of home sales profit from capital gains taxes and married couples filing jointly can exclude up to $500,000, provided they meet IRS eligibility. Who qualifies for the capital gains exemptionsThere are strict rules to qualify for the $250,000 or $500,000 capital gains exclusions, Ringbauer warned.

Persons: Witthaya, Miklos Ringbauer, Ringbauer, you've, There's, Assunta McLane Organizations: Summit Place Financial Locations: Los Angeles, Summit , New Jersey

☆ How to construct your portfolio for maximum income in retirement
▼ + stars: | 2024-02-23 | by ( Michelle Fox | ) www.cnbc.com time to read: +4 min

An efficient portfolio typically focuses on both income and price returns, said certified financial planner David Blanchett, head of retirement research at PGIM, the asset management arm of insurer Prudential Financial. "It really depends on that retirees' perception of how they're going to access their savings to fund their retirement spending," Blanchett said. Higher yields are doing the heavy lifting Generally, the rule of thumb is to withdraw about 4% of your portfolio a year during retirement. His firm uses the Dodge & Cox Income (DODIX) fund and BlackRock Strategic Income Opportunities (BSIIX) fund. "If you have a diversified portfolio, in theory, you can actually get higher income over time as the companies that you own pay out higher dividends," he said.

Persons: David Blanchett, who's, Blanchett, Barry Glassman, Glassman, Brandon Goldstein, " Goldstein Organizations: Prudential Financial, Treasury, Wealth Services, CNBC, Dodge, Cox, Prudential Locations: PGIM, North Bethesda , Maryland, BlackRock

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