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☆ Powerball jackpot soars to $615 million. Here's how much the winner could owe in taxes
▼ + stars: | 2023-07-07 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

If you manage to score the winning ticket for the Powerball jackpot this Saturday evening, your winnings will shrink significantly after Uncle Sam takes its share. The Powerball jackpot winner can choose between a lump sum of $310.6 million cash or yearly payments worth $615 million. These are estimates until the Multi-State Lottery Association takes bids on the purchase of investments. "One thing that's unique about the lottery is that you can accept it over a 30-year period with annuity payments," said certified financial planner John Chichester Jr., founder and CEO of Chichester Financial Group in Phoenix. The odds of winning the Powerball jackpot are about 1 in 292 million.

Persons: Uncle Sam, John Chichester Jr, It's, Chichester Organizations: State Lottery Association, Chichester Financial Group, Finance, Federal, Shoppers, Amazon Prime Locations: Phoenix

Medical debt can affect your credit score, but its been deprioritized by the credit industry. While FICO has lessened the weight of medical debt on your credit score, VantageScore completely removed medical debt from its calculations. How to improve your credit after medical debtWhile unpaid medical debt doesn't have the same impact on your credit score as an unpaid credit card bill, it can impact your credit nonetheless. Once you transfer that debt to your credit card, those protections you and your credit score have against medical debt no longer apply. Medical debt frequently asked questionsIs medical debt being removed from credit reports?

Persons: FICO, VantageScore, —, doesn't, Experian, Tiffany Cross, Rick Eicheldinger, You'll, Cross Organizations: Service, Consumer Financial Protection Bureau, Kaiser Family Foundation Locations: United States

☆ These energy investments spin out attractive income, even as oil prices have fallen
▼ + stars: | 2023-07-05 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +3 min

Energy stocks are also this year's underdogs, with the S & P sector down more than 7%. In turn, the limited partners collect income distributions from the business. MLPs aren't subject to federal income taxes, but the limited partners are responsible for levies on the income they receive. In that case, the C-corp pays corporate income taxes and the shareholders are responsible for levies on dividends they get. Tax hurdles Attractive income aside, investors need to be on the lookout for where they keep these MLPs.

Persons: there's, Stephen Ellis, Ellis, MLPs, George Gagliardi, you'll Organizations: West Texas, Energy, Morningstar Research Services, Wealth Management, MLP, Internal Revenue Service

☆ While investors can't expect a deal like former baseball star Bobby Bonilla, they can use an annuity to create a stream of income in retirement
▼ + stars: | 2023-07-01 | by ( Ana Teresa Solá | ) www.cnbc.com time to read: +3 min

Infielder Bobby Bonilla of the MLB's New York Mets at a game against the Los Angeles Dodgers at Dodger Stadium, July 25, 1993. Stephen Dunn | Getty Images Sport | Getty ImagesFormer Major League Baseball player Bobby Bonilla collects a $1,193,248.20 check from the New York Mets every July 1, and he'll continue to do so until 2035. In fact, ever since, July 1 has been known as Bobby Bonilla Day. Annuities provide a guaranteed stream of incomeAn annuity is a lump sum of money, often taken out of a retirement plan, which is converted into a future stream of income, or annuitized. The allure for investors is a guaranteed stream of income, much similar to Social Security or pensions.

Persons: Bobby Bonilla, Stephen Dunn, hasn't, Bonilla, they've, Louis Barajas, Limra, Barajas Organizations: New York Mets, Los Angeles Dodgers, Dodger, Getty, Major League Baseball, Mets, International Private Wealth, CNBC's, Finance, Social Security, ., Barajas, American Council of Locations: Irvine , California, Barajas

☆ These 3 unique challenges have an 'overarching effect' on LGBTQ people's finances
▼ + stars: | 2023-06-30 | by ( Ryan Ermey | ) www.cnbc.com time to read: +5 min

The challenges unique to the queer community are present year-round. "David and I like to say that 80% of personal finance is the same for everybody. That's the finance in personal finance," he says. "But the other 20%, which is the personal side of personal finance, is based on our backgrounds, our histories, our socioeconomic status, race, creed, segmentation, all of that." Here are three unique financial challenges queer people face, and how LGBTQ-focused financial planners say they can overcome them.

Persons: John Schneider, David Auten, David, Schneider, Laura LaTourette, Frank Summers, Summers, Catherine Valega Organizations: Human, D.C, Family Wealth Management, Cetera Advisors, CFP, Green Bee Locations: San Francisco , New York, Chicago, Dahlonega , Georgia, Charlotte , North Carolina, Winchester , Massachusetts

☆ Supreme Court's student loan decision will have 'detrimental impact' on borrowers, financial advisor says
▼ + stars: | 2023-06-30 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

A sign calling for student loan debt relief is seen outside the U.S. Supreme Court in Washington, D.C., on Feb. 28, 2023. If you're one of the millions of Americans affected by the Supreme Court's decision to strike down student loan forgiveness, financial advisors have tips before payments resume. The high court on Friday blocked President Joe Biden's plan for federal student loan forgiveness, which would have provided borrowers up to $20,000 of relief. "For some folks, it will require some hard choices," said Miller, a planner in the Washington, D.C., area who specializes in student loans. Over the past few years, the student loan pause has provided freedom from payments, which has allowed some borrowers to save for buying a home or starting a family, he said.

Persons: Joe Biden's, Ethan Miller, Miller Organizations: U.S, Supreme, Washington , D.C, Planning, Progress, Finance, U.S . Department of Education, D.C Locations: Washington ,, Washington

☆ Decision of when to retire has little to do with how much you've saved for retirement, report finds
▼ + stars: | 2023-06-28 | by ( Ana Teresa Solá | ) www.cnbc.com time to read: +3 min

Pixdeluxe | E+ | Getty ImagesAmericans often worry about hitting specific money goals for retirement, but a new report finds that the decision to retire often happens independently of reaching that "magic number." The report found that more than a third, 36%, of households ages 55 to 64 are already retired. In that age group, 27% are within five years of stopping full-time work and 37% expect to continue working full-time for more than five years. About a third, 35%, of people in that age group who have less than $50,000 in investable assets described themselves as retired. That may be especially true of those in the 55-plus age group, who may believe they have enough, but cannot predict whether they will live another four decades.

Persons: haven't, Laura Varas, Carolyn McClanahan, that's, McClanahan Organizations: Getty, Hearts, Census, Federal Reserve, Finance, Planning Partners, CNBC Locations: U.S, Jacksonville , Florida

☆ Some advisors are flocking to alternative investments, survey finds. What investors need to know
▼ + stars: | 2023-06-27 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

After a tough year for the stock and bond markets in 2022, some advisors are turning to alternative investments, according to a new survey from the Financial Planning Association. Nearly 30% of advisors are actively investing in or seeking alternative investments, or "alternatives," for clients, the findings show. These assets typically fall outside traditional investments in publicly traded stocks, bonds and cash. Some investors are drawn to alternatives for diversification, lowering portfolio risk and boosting returns, said certified financial planner Ashton Lawrence, director at Mariner Wealth Advisors in Greenville, South Carolina. It's not zeroHow jobless workers use side gigs to make ends meetIndeed, "diversification" and "risk mitigation" were top objectives among advisors who recommend alternatives, according to the FPA survey.

Persons: Ashton Lawrence, Lawrence Organizations: Financial, Association, Mariner Wealth Advisors, Finance Locations: Greenville , South Carolina

Our experts answer readers' student loan questions and write unbiased product reviews (here's how we assess student loans). Borrowers who have refinanced federal loans into private loans are ineligible for forgiveness. See Insider's picks for the best student loan refinance lenders >>What is Biden's student loan forgiveness plan? Federal student loans you've refinanced are not eligible for forgiveness under Biden's debt relief plan. Types of student loans that are eligible for forgivenessThe Education Department maintains a list of eligible student loans on its website, which includes the following:Federal Direct Loans — subsidized, unsubsidized, PLUS loans, and consolidation loansFederal Family Education Loan (FFEL) Program loans (ended in 2010)Federal Perkins Loan Program loans (ended in 2017)Education Department-held defaulted loansAll loans funds must have been received on or before June 30, 2022.

Persons: Pell Grant, —, Biden, Pell, you've, doesn't, Andrew Latham, Biden's, Perkins, Latham Organizations: Service, —, Pell Grants, Education Department, US, of Education, Department, Federal, Family Education, Loan Program, Public

☆ Don't budget, says financial psychologist. Here's why he recommends a 'spending plan' instead
▼ + stars: | 2023-06-27 | by ( Ana Teresa Solá | ) www.cnbc.com time to read: +2 min

Budgets help address maladaptive financial behavior or areas where you need control, such as overspending or spending leakages. "Psychologically, 'budgets' sound restrictive. 'Spending plans' sound a lot better — they give a lot more freedom and flexibility," he said. "It's about giving yourself permission to start the life stage that you're in and then go on to the next one," said Cherry. Jump-start your financial journey by being honest with yourself on where you are standing.

Persons: Preston D, Cherry Organizations: CNBC's Locations: Green Bay , Wisconsin

☆ This little-known income play offers portfolios price stability and yield
▼ + stars: | 2023-06-26 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

Floating rate notes' short duration gives them a measure of relative price stability, while offering investors' portfolios some support through variable income. It's the prospect of higher rates for longer, along with the inverted yield curve, that make floating rate notes an attractive play for some. For his clients, Winter has committed between a quarter and a third of investors' fixed income allocation to floating rate notes. "It's lower coupon rates versus the opportunity to lock in high fixed rates now if you consider the environment," said Collin Martin, fixed income strategist at Charles Schwab. That means in a recession, you may not get an increase in floating rate note prices to offset a decline in equities, he said.

Persons: Allison Bonds, Bonds, Jerome Powell, Paul Winter, Winter, aren't, Collin Martin, Charles Schwab Organizations: State Street's U.S, Treasury Bond ETF, Federal Reserve, Federal, Five Locations: Treasurys

☆ Don't believe everything your parents told you about money: 4 common money myths, debunked
▼ + stars: | 2023-06-26 | by ( Isabel Engel | In Isabel--Engel | ) www.cnbc.com time to read: +4 min

For young professionals new to the workforce — particularly recent college graduates — here are four common money myths that have been passed down through generations, debunked. The idea has likely inhibited women and people of color in particular from being confident about investing, Ransom-Cooper says. The gap has begun to close, though, with 58% of Black Americans investing in 2022, compared with 63% of white Americans. What's more, young professionals do not have to wait until their student loans or other outstanding debt is completely paid off to begin. Investing early and growing your retirement savings, for example, are valuable ways to build wealth outside of the real estate market.

Persons: you've, Chelsea Ransom, Cooper, Ransom, Schwab, Roth, it's Organizations: Zenith Wealth Partners, CNBC, Investor Survey, Roth IRA

☆ Americans think they will need nearly $1.3 million to retire comfortably, study says. How to calculate your own 'magic number'
▼ + stars: | 2023-06-26 | by ( Lorie Konish | ) www.cnbc.com time to read: +5 min

Respondents in their 50s expected to need the most when they retire — more than $1.5 million, the survey found. Calculating your own retirement 'magic number'Rather than think about a big goal number for retirement, Patel said he urges clients to identify their income needs. As you think about retirement, in an ideal world, you would have enough guaranteed zero risk income to cover your guaranteed expenses. Alap Patel wealth management advisor for Northwestern MutualEveryone typically has three types of expenses, Patel said. "As you think about retirement, in an ideal world, you would have enough guaranteed zero-risk income to cover your guaranteed expenses," Patel said.

Persons: Antonio Suarez Vega, It's, Alap Patel, it's, Patel, Gen Xers, Gen, Winnie Sun, Sun Organizations: Istock, Northwestern Mutual, Savings, Finance, Cerulli Associates, Sun Group Wealth Partners, CNBC's Locations: Chicago, millennials, Irvine , California

watch nowA lot of financial planning is, of course, about the future. But people's goals can backfire if they neglect themselves in the present, says Preston Cherry, a certified financial planner and founder and president of Concurrent Financial Planning in Green Bay, Wisconsin. "Starving your current self ... could be discouraging," said Cherry, who is also a member of CNBC's Financial Advisor Council. But people shouldn't have to pick between a good life now and a good life later, Cherry said. 'Wants are needs, too'The division between "wants" and "needs" is often too rigid for people, Cherry said.

Persons: Preston Cherry, Cherry, it's Organizations: CNBC's, Council, Getty Locations: Green Bay , Wisconsin

☆ ChatGPT probably won’t help you beat the stock market—but it can assist investors in other ways, says CFP
▼ + stars: | 2023-06-23 | by ( Cheyenne Devon | ) www.cnbc.com time to read: +2 min

But letting AI build your portfolio probably isn't the best investment strategy anyway. Boneparth himself put ChatGPT's financial acumen to the test and says the results weren't great. After informing ChatGPT of this, it tried to correct the error but didn't necessarily pull the right information, he says. However, Boneparth says he was impressed by how close ChatGPT came to achieving what he asked. People who use AI tools like ChatGPT for financial advice may misunderstand the current capabilities and limitations of these tools.

Persons: Gen Zers, Douglas Boneparth, Boneparth, ChatGPT, hasn't Organizations: CNBC

☆ Your 401(k) match is 'free money'—but you might not be able to take it with you when you leave
▼ + stars: | 2023-06-23 | by ( Ryan Ermey | ) www.cnbc.com time to read: +4 min

Here's what she and other financial pros say you should know about your 401(k) match. How a 401(k) match worksFirst, a quick reminder of how 401(k) matches work and why financial planners love them so much. "I would invest enough to get the company match first, before paying off high interest rate loans," says Jeremy Finger, a CFP and founder of Riverbend Wealth Management. What is a 401(k) vesting schedule? Any 401(k) match you receive from your employer likely comes with some strings attached.

Persons: Kevin Brady, Catherine Valega, Jeremy Finger, they've, you'll Organizations: Wealthspire Advisors, CNBC, Green Bee, Riverbend Wealth Management, Employers Locations: New York City, Winchester , Massachusetts

☆ New to investing? 'Run' to this tax-advantaged retirement account, says CFP
▼ + stars: | 2023-06-22 | by ( Ryan Ermey | ) www.cnbc.com time to read: +4 min

Some 28% of workers made Roth contributions in 2021, up from 18% in 2016, according to the Plan Sponsor Council of America. "Younger, mid- to lower-income employees should run to the Roth 401(k)," he says. Roth 401(k)s vs. Roth IRAsIf you're thinking the rules for Roth 401(k)s sound similar to those for Roth IRAs, you're right. Plus, you can contribute a lot more to a Roth 401(k) than a Roth IRA. For 2023, you can contribute up to $22,500 to a Roth 401(k), plus an extra $7,500 for those age 50 and up.

Persons: it's, you'll, Roth, you've, Jeremy Finger, Younger, you'd, Catherine Valega, Valega, Roth IRAs Organizations: of America, Riverbend Wealth Management Locations: America, Boston , Massachusetts

☆ What to know about crypto investing as regulators weigh the first spot bitcoin exchange-traded funds
▼ + stars: | 2023-06-22 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

Bitcoin has rallied amid news about possible spot bitcoin exchange-traded funds and other big names entering the digital currency space — and financial experts have tips for investors who want a piece of the action. The price of bitcoin topped $30,000 on Wednesday as traders grew bullish about spot bitcoin ETF applications from companies like BlackRock, WisdomTree and Valkyrie. U.S. investors currently have access to bitcoin futures ETFs, which invest in bitcoin futures contracts, or agreements to buy or sell the asset later for an agreed-upon price. The long-awaited bitcoin spot ETF, however, would invest in the digital currency directly. "It's a very serious statement to see BlackRock submit that application," he said, and many crypto advocates believe it's the beeline for a bitcoin spot ETF product.

Persons: Bitcoin, WisdomTree, Douglas Boneparth Organizations: Federal Reserve, Silvergate, Finance, Amazon, Bone, CNBC's, BlackRock Locations: BlackRock, New York

☆ Teenagers are in high demand as summer hiring surge gets under way
▼ + stars: | 2023-06-21 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

Job opportunities and wages rise for teensEconomists are predicting another strong summer for teen employment in 2023. Already, teens make up 18% of all summer hires this year, up from 15% a year ago, according to data from payroll platform Gusto. "The market for teens is hotter than it's ever been," said Luke Pardue, an economist at Gusto. watch nowThe strong labor market and increased demand for low-wage work have also contributed to a rise in labor force participation. Now, teens are more likely to have a paying job over the summer and while in school compared with just a few years ago.

Persons: Luke Pardue, Gregg Murset Organizations: New, U.S . Department of Labor

☆ Municipal bonds can offer your portfolio tax-free income and stability as recession fears loom
▼ + stars: | 2023-06-21 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

"People see [municipal bonds] as a defensive position for two reasons," said Shannon Saccocia, chief investment officer at NB Private Wealth. "Historically, municipal bonds have had low default rates," wrote Jared Woodard, investment and exchange-traded fund strategist at Bank of America, in a June 12 report. For instance, there's the Vanguard California Intermediate-Term Tax-Exempt Fund Investor Shares (VCAIX) and the Nuveen New York Quality Municipal Income Fund (NAN) . In select situations, some advisors are recommending closed-end municipal bond funds. Closed-end muni bond funds trading at a deep discount include the BNY Mellon Municipal Income (DMF) and the MFS High Income Municipal (CXE) .

Persons: Shannon Saccocia, Jerome Powell, Jared Woodard, Nisha Patel, Patel, Paul Winter Organizations: Bank of America, Bond, Muni Bond ETF, Vanguard, Income Fund, Five, BNY, Income Locations: York, BNY Mellon

Money market funds Assets in retail money market funds grew to $1.99 trillion, according to the latest data from the Investment Company Institute . Further, even as money market funds offer relative safety, they can still face some risk. Don't confuse money market funds with money market accounts. Though money market accounts – which are offered by banks – are protected by the Federal Deposit Insurance Corporation, up to $250,000, money market funds are not. Certificates of deposit and high-yield savings accounts Liquidity should be a big factor for investors eyeing bank products like CDs and high-yield savings accounts.

Persons: Jamie Hopkins, Hopkins, Don Grant, Jordan Benold, Lehman, Danika Waddell, BancShares, Waddell Organizations: Federal, Carson Group, Sabre, Investment Company Institute, Investors, –, Lehman Brothers, Federal Deposit Insurance Corporation, Xena, BMO, Ally Financial, CIT Bank, Synchrony, Ally, Capital

Not all financial advice turns out to be solid — and many claims about crypto haven't come to pass. That's also when financial writers like me started hearing (and reading) wild claims and advice surrounding crypto investing. So how can you know when financial claims like this one are not what they seem? And what should you look for when deciding which financial claims may actually come true one day? The same is true for all the self-proclaimed "crypto experts" that have been all over the media over the last few years.

Persons: —, cryptocurrency, That's, FTX, Taylor, CFP Mike Earl Organizations: Service, CFP Locations: Africa

☆ Firms are 'bombarding' small businesses with ads for a Covid-era tax credit, advisor says. Here's how to know if you qualify
▼ + stars: | 2023-06-18 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

Small businesses are facing an onslaught of ads, phone calls and emails to help them claim a pandemic-era tax credit. The tax break — known as the employee retention credit, or ERC — was enacted in 2020 to support small businesses during the Covid-19 pandemic, worth up to $5,000 per employee for 2020 or $28,000 per employee in 2021. While the credit applies to tax year 2020 or 2021, business owners still have time to amend returns and claim the credit, which has sparked a flood of ads from companies offering to help. While Hausz's company has completed at least 100 amended filings for clients to claim the employee retention credit, it has also informed clients when they don't qualify. "ERC mills" have popped up, charging small businesses up to 25% to 30% of the credit received, said Kristin Esposito, director for tax policy and advocacy for the American Institute of CPAs.

Persons: Craig Hausz, Kristin Esposito Organizations: ERC —, Finance, CMH Advisors, ERC, American Institute of CPAs Locations: Dallas

☆ Here's how much Americans in their 30s have in their 401(k)s
▼ + stars: | 2023-06-18 | by ( Cheyenne Devon | ) www.cnbc.com time to read: +3 min

Instead, keep this key number in mind: your retirement savings rate, which is the percentage of your income you're contributing to your 401(k). As a younger worker, time is on your side when it comes to saving for retirement, Cheng says. If you're in your 30s, your income is likely to increase as you get older, which can allow you to make larger contributions to your retirement savings over time. 1 best piece of advice for regular investors, do's and don'ts and three key investing principles into a clear and simple guidebook. CHECK OUT: Here’s how much Americans have in their 401(k)s at every age

Persons: Marguerita Cheng, Cheng, Warren Buffett Organizations: Fidelity Investments, CNBC, Blue, Wealth, Fidelity

☆ Mortgage points may help homebuyers lower monthly costs amid high interest rates. How to know if this strategy is right for you
▼ + stars: | 2023-06-17 | by ( Lorie Konish | ) www.cnbc.com time to read: +4 min

Other experts say buyers purchasing mortgage points can be a great strategy for the right situation. Being able to lower that monthly payment can really help give some more wiggle room in people's budgets and help them reach affordability. "Being able to lower that monthly payment can really help give some more wiggle room in people's budgets and help them reach affordability," Bachaud said. In addition to higher upfront costs, home buyers should also weigh other factors before buying mortgage points. But putting those sums toward a down payment likely will not make much of a difference on your monthly costs, Elliott said.

Persons: Getty, Grubbs, Nicole Bachaud, Bachaud, Kamila Elliott, Atlanta . Elliott, Elliott, Stephanie Grubbs Organizations: Fed, Zillow, Wealth Partners, CNBC, Douglas Locations: Atlanta ., Douglas Elliman

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