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☆ 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

☆ 'We’re all crazy when it comes to money,' advisor says. How to manage your psyche for better finances
▼ + stars: | 2023-06-15 | by ( Greg Iacurci | ) www.cnbc.com time to read: +2 min

D3sign | Moment | Getty ImagesHuman psychology and money don't mix well. Left unchecked, our psyches can easily sabotage financial decision-making, behavioral experts said during a panel discussion at CNBC's Financial Advisor Summit. "We're all crazy when it comes to money," said Brad Klontz, managing principal of YMW Advisors in Boulder, Colorado, and a founder of the Financial Psychology Institute. Additionally, feelings of shame, such as thinking we have too much or too little money, are pervasive, experts added. It's kind of like a thumbprint, so it's very unique," added Cherry, a CFP and member of the CNBC Financial Advisor Council.

Persons: Brad Klontz, Klontz, Preston Cherry, Charles Schwab, Cherry Organizations: CNBC's Financial, YMW Advisors, Financial, Institute, CNBC Locations: Boulder , Colorado, Green Bay , Wisconsin

☆ Average 401(k) account balance tops $112,000, new report shows
▼ + stars: | 2023-06-15 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +5 min

New York CNN —The average balance in employer-sponsored savings plans last year was $112,572, well below the $141,542 recorded in 2021. “Vanguard participants’ average account balances decreased by 20% since year-end 2021, driven primarily by the decrease in equity and bond markets over the year,” according to the report. “Among plans with a nonmatching employer contribution, the average contribution was equivalent to 5.1% of pay; the median contribution, 4.1% of pay,” Vanguard noted. The auto enrollment feature has helped boost overall participation in the plans Vanguard oversees. Including what employees kick in, the average total contribution rate was 11.3%.

Persons: ’, nonparticipants Organizations: New, New York CNN, Vanguard Locations: New York, nonparticipants

☆ How to shift your bond portfolio as the Fed pauses interest rate hikes
▼ + stars: | 2023-06-14 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

Couple talking to financial advisor at home Fg Trade | E+ | Getty ImagesConsider when to increase bond durationWhile it's difficult to predict future interest rate cuts, Kyle Newell, a certified financial planner and owner of Newell Wealth Management in Orlando, Florida, said he has started shifting bond allocations. When building a bond portfolio, advisors consider so-called duration, which measures a bond's sensitivity to interest rate changes. watch nowAs interest rates rose in 2022, many advisors opted for shorter-duration bonds to protect portfolios from interest rate risk. But allocations may shift, depending on future Fed policy. Look for 'areas of opportunity'As policy shifts, advisors are also looking for ways to optimize allocations amid continued economic uncertainty.

Persons: Kyle Newell, Newell, Ashton Lawrence Organizations: Newell Wealth Management, Mariner Wealth Advisors Locations: Orlando , Florida, Greenville , South Carolina

☆ The Fed’s latest pause still means high rates for you
▼ + stars: | 2023-06-14 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +6 min

The average bank savings rate as of June 7 was a mere 0.25%, according to Bankrate.com. But that’s because the savings rates at the biggest US banks pay very little — see, for instance, 0.01% at JPMorgan Chase (JPM). Currently, the average credit card rate is at a record high of 20.44% as of June 7, according to Bankrate.com. [And] home equity rates are the highest in more than 20 years,” McBride said. The average rate on a 30-year mortgage was 6.71% in the week ending June 8, down from 6.79% the week before.

Persons: ”, Greg McBride, Sara Kalsman, Schwab, you’ll, That’s, ” McBride, Bankrate, McBride, Anna Bahney Organizations: New, New York CNN, Federal Reserve, JPMorgan Chase, Fidelity, Fed, “ Locations: New York, Boston, Detroit

☆ The year is half over. Here are three considerations to make sure your portfolio is on track
▼ + stars: | 2023-06-13 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +5 min

Rebalance your portfolio Tech's remarkable bounce in 2023 could result in a significant portfolio tilt toward that sector — and an overconcentration that could hurt in the event there's a downturn. That means it's time to trim down a few of those oversized positions and make sure your asset allocation is properly reflecting your goals. Check in with cash Cash is another asset that requires your attention, especially in an era when investors have a host of options of where keep those funds. Cash you don't need for many years can go right back into your stock portfolio so you can keep ahead of inflation, Pearce said. "Make sure you have an appropriate amount of cash, and make sure you're not sitting on an enormous pile of cash that's doing nothing," he added.

Persons: Jorrell Bland, Josh Brown, Tony Roth, haven't, Wilmington Trust's Roth, Roth, Cash, Jerrod Pearce, Goldman Sachs, Marcus, Pearce, — CNBC's Michael Bloom Organizations: Nasdaq, Federal Reserve, Mitlin, Ritholtz Wealth Management, Wilmington Trust Investment Advisors, JPMorgan Equity, Wilmington, Creative Planning, Bread, Bread Financial, Citizens Financial, Treasury Locations: Wilmington, Treasurys

☆ IRS: Meet this June 15 deadline to 'avoid a surprise at tax time'
▼ + stars: | 2023-06-13 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

The due date for 2023 second-quarter estimated tax payments is June 15, which applies to income without withholdings, such as self-employment earnings, investments, gig economy work and more. Some filers also make quarterly payments when their employer doesn't withhold enough from each paycheck. Last week, the IRS reminded filers to consider quarterly payments to "stay current and avoid a surprise at tax time." It's important to calculate tax payments accurately, pay on time and to consider meeting the "safe harbor" rule to avoid underpayment penalties, Lovison said. "Keep records, monitor your tax situation, and seek professional guidance for a smooth tax experience," he said.

Persons: filers, Sean Lovison, Lovison Organizations: IRS, Finance, WJL Financial Locations: Philadelphia

☆ 62% of student loan borrowers 'live for today' when it comes to spending—why that's a problem
▼ + stars: | 2023-06-12 | by ( Kamaron Mcnair | In Kamaronmcnair | ) www.cnbc.com time to read: +4 min

Student loan borrowers are younger, more impulsive and less financially secure than the rest of the U.S., a recent study from UBS found. Additionally, student loan borrowers earn less money on average, are younger and skew slightly female, UBS found. Impulsive spending could be hurting your financial goalsThe majority of student loan borrowers — 62% — follow a similar philosophy when it comes to spending, UBS found: "Live for today because tomorrow is so uncertain." The share of all adults who have more than six months' worth of expenses saved — about 34% — is more than double the share of student loan borrowers who say they have as much. Of course, student loan borrowers also have less money to work with, since a portion of their income goes to loans each month.

Persons: —, Tara Unverzagt, Unverzagt Organizations: UBS, —, CNBC Locations: U.S

So they helped to create a cohousing development for LGBTQ+ seniors and allies, making it easier to offer support to one another. "These things are going to happen, but we also find that we are really good at taking care of each other." How to avoid 'the closet' while ensuring good careOlder adults in the LGBTQ+ community are twice as likely to be single and four times less likely to have children as their non-LGBTQ+ peers, according to SAGE, a national advocacy organization for LGBTQ+ elders. The Village Hearth is a 55-plus cohousing community for LGBTQ+ adults, friends and allies located in Durham, North Carolina. When you're in the hospital or a care facility, "if you're heterosexual, the spouse automatically gets visiting rights," Lee said.

Persons: Margaret Roesch, Pat McAulay, Roesch, McAulay, Stephanie Lee, Kyle Young, Lee, That's, they're, Young, Allison O'Shea, O'Shea Organizations: Finance, Nonprofit, SAGE, East Rock Financial, CNBC Experts, Morgan Stanley Wealth Management, Morgan Stanley Wealth, Local Locations: Durham , North Carolina, Florida, San Francisco, New York, Durham, Tennessee

☆ Millionaires support raising Federal Deposit Insurance Corp. limits. They may be overlooking ways to access more coverage on deposits now
▼ + stars: | 2023-06-12 | by ( Lorie Konish | ) www.cnbc.com time to read: +4 min

Currently, the Federal Deposit Insurance Corp. insures $250,000 per depositor for each ownership category for deposits held at an insured bank. That year, the standard maximum deposit insurance amount was temporarily raised to $250,000, from $100,000. How future deposit insurance may changeThe FDIC in May released a report that outlined three options for the future of the deposit insurance system. This may include an increased, yet also "finite," deposit insurance limit, the FDIC's report states. A third choice, targeted coverage, would provide different levels of deposit insurance coverage for different types of accounts, with higher coverage for business payment accounts.

Persons: Lauren Justice, First Republic —, Martin Gruenberg, Gruenberg, Ted Jenkin, Atlanta . Jenkin, Jenkin Organizations: Bank, Bloomberg, Getty, Valley Bank, Signature Bank, CNBC, Millionaire Survey, Federal Deposit Insurance Corp, First, Committee, Silicon Locations: Beverly Hills , California, First Republic, Atlanta .

☆ What Is Cash Value Life Insurance and Is It Worth It?
▼ + stars: | 2023-06-09 | by ( ) www.wsj.com time to read: +10 min

What is cash value life insurance? Although you’ll see insurance companies advertise various life insurance products, all policies can be divided into two categories: term and cash value. How your policy’s cash value worksCash value life insurance is so named because of its ability to build cash value. Types of cash value coverageThere are two main types of cash value insurance:Whole lifeWhole life insurance is the most popular form of cash value insurance. Universal lifeUniversal life policies are more flexible than whole life policies.

Persons: Kat Tretina, you’re, PolicyGenius, Jay Zigmont, “, they’re, ” Zigmont, Andrew Latham, you’ll, ”, Latham Organizations: Universal, American Council of Locations: Water Valley, Miss, Santa Ana, Calif

☆ Using cash like a millionaire may not make sense for most investors. Here's why
▼ + stars: | 2023-06-08 | by ( Greg Iacurci | ) www.cnbc.com time to read: +5 min

The poll considered cash and cash-like investments to include money market funds, checking and savings accounts, plus certificates of deposit. A recent Capgemini Research Institute survey also found affluent investors are holding a record share of cash. On one hand, having more money in cash today isn't necessarily a bad move due to higher interest rates, advisors said. Yet, the CNBC millionaire survey suggests wealthy millennials shifted into cash more readily than older investors. When to boost cash holdingsBut there are circumstances in which it may make sense to up one's cash-like holdings, she said.

Persons: Ted Jenkin, Jenkin, it's, millennials, X, Young, Carolyn McClanahan, what's, McClanahan, Cash Organizations: Millionaires, CNBC Millionaire Survey, Research Institute, Federal Reserve, CNBC, Planning Partners Locations: Atlanta, Jacksonville , Florida

☆ Crypto is Gen Z’s most common investment. That may be risky, experts said
▼ + stars: | 2023-06-07 | by ( Greg Iacurci | ) www.cnbc.com time to read: +4 min

But while young people can afford to take more investment risk relative to older generations, using crypto as the linchpin of an investment portfolio is nonetheless a risky bet due to its volatility, experts said. Crypto zeal a concern if investors don't diversifyFifty-five percent of adult Gen Z investors currently invest in crypto, according to the joint Finra-CFA Institute report. Gen Z is a cohort born in the late 1990s and into the 21st century, meaning its oldest members are in their mid-20s. The joint Finra-CFA Institute report doesn't specify the average share of Gen Z investors' portfolios allocated to cryptocurrency. Gen Z investors in the U.S. view themselves as risk-takers.

Persons: Gen, Coinbase, Binance, Crypto, —, Gerri Walsh, Walsh, Ted Jenkin, cryptocurrency, They've, Jenkin, bitcoin, It's, There's, they've Organizations: CFA Institute, Financial Industry, Investor Education, Securities and Exchange Commission, SEC, Finance, Finra Investor Education Foundation, Meta, cryptocurrency Locations: Atlanta, cryptocurrency, U.S

☆ Millionaires see market volatility, inflation among biggest threats to wealth, CNBC survey finds
▼ + stars: | 2023-06-07 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

"We're starting to climb that wall of worry again," said certified financial planner Chris Mellone, partner at VLP Financial Advisors in Vienna, Virginia, referring to market resilience despite economic uncertainty. The volatility index, or the VIX , is currently trending lower, below 15 as of June 5, Mellone pointed out. Inflation is still a top concernWhile inflation continues to moderate, many affluent Americans still worry about high prices. Annual inflation rose 4.9% in April, down slightly from 5% in March, the U.S. Bureau of Labor Statistics reported in May. Chris Mellone Partner at VLP Financial Advisors

Persons: Chris Mellone, Mellone, Natalie Pine, We're Organizations: Getty, VLP Financial, Briaud Financial, College Station ,, U.S . Bureau of Labor Statistics Locations: Vienna , Virginia, College Station, College Station , Texas

☆ 3 steps to take before you start investing, according to a financial advisor
▼ + stars: | 2023-06-07 | by ( Annie Nova | ) www.cnbc.com time to read: +2 min

Yet some people put their money into stocks before they're ready, warns certified financial planner Douglas Boneparth. To achieve the benefits of long-term investing, Boneparth said, you should take these three steps first. "When you have time on your side, you can take more risk," Boneparth said. "It's usually not worth the risk of losing that money you're going to need pretty soon," he said. Of course, identifying why you're investing will also help you know how much you need to put away.

Persons: Douglas Boneparth, Boneparth Organizations: Bone Locations: New York

☆ Homeownership is a great way to build wealth, advisor says. Here's how to make that purchase successful
▼ + stars: | 2023-06-07 | by ( Lorie Konish | ) www.cnbc.com time to read: +2 min

Achieving that goal now can be challenging, with home prices still elevated and higher interest rates pushing mortgage costs higher, said Elliott, who is a member of CNBC's Financial Advisor Council. You should also work on improving your credit score, which will put you in the best possible position to get a good rate on your mortgage, Elliott said. Anticipate unexpected homeownership costsOne of the benefits of buying versus renting a home is the ability to have fixed costs, Elliott said. Look for flexibility on your purchaseThough home prices and interest rates are high, there are still possible ways prospective homebuyers can cut costs. By getting a shorter-term mortgage — say, for 15 years instead of 30 years — borrowers may access lower interest rates.

Persons: Kamila Elliott, Elliott, Carline Jean, Elliot Organizations: Wealth Partners, CNBC's, Tribune, Service, Wealth Locations: Atlanta, Parkland , Florida

☆ 6 in 10 Americans aren't saving for retirement—here's where to get started
▼ + stars: | 2023-06-06 | by ( Ryan Ermey | ) www.cnbc.com time to read: +6 min

If you're among the cohort lacking a retirement account, just about every financial planner would tell you to get started as soon as possible. There are plenty of different ways to invest out there, including workplace retirement accounts, individual retirement accounts, accounts designed for medical expenses and regular old brokerage accounts. Still, there are some general guidelines that financial pros typically prescribe when it comes to where you park your retirement savings. Priority 3: Get triple tax savings with an HSANot every retirement saver can invest using a health savings account. Like a traditional 401(k), money you contribute to an HSA counts against your taxable income.

Persons: Christopher Lyman, Kevin Brady, Roth, you've, Amy Miller Organizations: Financial Advisors, Wealthspire Advisors Locations: Newtown , Pennsylvania, New York City, West Hartford , Connecticut

☆ When you come up short one month, here's how to prioritze which bills to pay first
▼ + stars: | 2023-06-06 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +7 min

The last thing you need is to have what is most essential to you taken away or to ruin your credit. For starters, speak upThe most important thing you should do is let your creditors know you’re in a jam. Then think about your credit cards: These shouldn’t be your highest-priority bills to pay when you’re up against a wall. If you are late with a payment, call your credit card issuer to see if they can waive the late fee, Robertson said. The initial review is typically free, and beyond that someone using ongoing counseling services may pay $35 to $40 a month on average, McClary said.

Persons: you’ve, ”, Bruce McClary, McClary, you’re, Linda Robertson, ” Robertson, “, Robertson Organizations: New, New York CNN, National Foundation, Credit Counseling, Energy Assistance, Housing Locations: New York

☆ These lesser-known tax tips may help college-bound families
▼ + stars: | 2023-06-06 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

LAS VEGAS — College is a major expense for many families, but a payment strategy can provide significant tax savings, according to a college funding expert. "Distribution planning is not just for retirement," said certified financial planner Ross Riskin, chief learning officer for the Investments & Wealth Institute. Families also need a plan when tapping assets to pay for college, he said. Education funding can be complicated, especially when you're juggling eligibility for college tax credits, Riskin said at the American Institute of Certified Public Accountants' annual conference in Las Vegas on Monday. However, you can't "double dip" tax breaks by claiming one of these credits and withdrawing money from a 529 college savings plan for the same expense.

Persons: Ross Riskin, Riskin Organizations: VEGAS —, Investments & Wealth Institute, Families, American Institute of Certified Public Accountants, Finance, Ivy League Locations: Las Vegas

☆ Use this 401(k) investing strategy to calm your market jitters
▼ + stars: | 2023-06-05 | by ( Greg Iacurci | ) www.cnbc.com time to read: +1 min

Jackyenjoyphotography | Moment | Getty ImagesSteady contributions make investing 'more palatable'Among the primary benefits of dollar-cost averaging: It strips the emotion out of investing. For example, the fear of losing money can trigger harmful behavior like trying to time the market, akin to guessing the best time to buy and sell. People often sell out of fear when stocks decline in value, and then miss out on potential gains when stocks rebound, the regulator said. "If you're always looking at a reason not to invest, you're missing out on long-term wealth accumulation. Investing smaller sums of money in chunks makes it easier to stomach a poorly timed investment, according to Charles Schwab.

Persons: Sean Deviney, There's, Charles Schwab Organizations: Investors Locations: Fort Lauderdale , Florida, Ukraine

☆ How much should you have saved for retirement at your age? It’s complicated
▼ + stars: | 2023-06-05 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +6 min

Please keep that in mind, especially if you’re discouraged your savings don’t currently match the recommended targets for your age. A very ballpark estimateOne of the more flexible age-based retirement savings benchmarks comes from mutual fund company and 401(k) record keeper T. Rowe Price. Among their assumptions, they presumed your retirement savings are in tax-deferred accounts like a 401(k), which means you will owe income tax on your withdrawals in retirement. But here’s the thing …Many Americans’ savings likely fall at or below the lowest end of the recommended savings range for their age. Or you may plan to work past age 65, which will give your savings more time to compound.

Persons: New York CNN —, you’re, Rowe Price, ”, Ann Minnium, ” Minnium, “, Roger Young Organizations: New, New York CNN, Research Locations: New York, United States, New Jersey

☆ The U.S. reached a deal on the debt ceiling. Here’s what might be next for investors in Treasurys
▼ + stars: | 2023-06-04 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +3 min

The worst of the debt ceiling crisis is over now that lawmakers have passed a bill and sent it to President Joe Biden for signing, but investors are about to see an influx of Treasury securities enter the market. A large issuance of new Treasurys could push down prices of holdings in investors' portfolios. While large investors scoop up the new T-bills, the extent to which individual investors capture the benefit will also depend on the Federal Reserve's policy stance. "As you get past the debt ceiling, getting paid on your cash is still a concern, and doing it with T-bills where you still get a 5% yield is attractive," Tannuzzo said. "Interest rates have been so low, and to see 4%, 5% on T-bills – you can make money on money, and that's wonderful," Shagawat said.

Persons: Joe Biden, Morgan Stanley, Gene Tannuzzo, Tannuzzo, James Shagawat, Greg McBride, Shagawat, Treasurys, he's, Michael Bloom Organizations: Treasury, Columbia, Federal, Federal Reserve, AdvicePeriod

☆ Time is running out to repay Covid-era 401(k), IRA withdrawals — and claim a tax refund
▼ + stars: | 2023-06-03 | by ( Greg Iacurci | ) www.cnbc.com time to read: +2 min

Hundreds of thousands took distributionsData suggests hundreds of thousands of people took coronavirus-related distributions — and that few have repaid it. Nearly 6% of investors in workplace retirement plans took a CRD in 2020, according to internal administrative data from Vanguard Group. That amounts to about 268,000 people out of 4.7 million retirement investors for whom Vanguard provided administrative services that year. Amended return necessary to claim refundInvestors who repay all or part of their CRD by the three-year deadline must file an amended tax return to claim a tax refund, according to the IRS. This person would have to file an amended tax return for each year.

Persons: Sean Deviney, Deviney Organizations: Vanguard Group, Vanguard, IRS, Investors Locations: Fort Lauderdale , Florida

☆ How to manage a big retirement risk amid health-care inflation
▼ + stars: | 2023-06-02 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

Geber86 | E+ | Getty ImagesThere are plenty of risks for retirees — and those risks may compound by the rising cost of health care in retirement. There's also a higher likelihood of retirees needing medical care as they grow older. A 65-year-old couple who retired in 2022 will spend an average of $315,000 in health-care costs throughout retirement, not including long-term care, according to Fidelity Investments. Of course, every retiree's costs will be different, said certified financial planner Anthony Watson, founder and president of Thrive Retirement Specialists in Dearborn, Michigan. "The best way to plan for health-care costs is to learn how to be a good health-care consumer," said McClanahan, who also is a physician and member of CNBC's Advisor Council.

Persons: it's, There's, Anthony Watson, Carolyn McClanahan, McClanahan Organizations: —, U.S . Bureau of Labor Statistics, Fidelity Investments, Morgan, Planning Partners Locations: Dearborn , Michigan, Jacksonville , Florida

This is a good chance to talk to your kids about money and the actual cost of what they want. It's a good idea to make saving for your kids' summer a part of your year-round saving plan. Bosse, who also writes books about money for kids, sees a lot of parents stressed about the summer. See Insider's picks for the best high-yield savings accounts »How do you start the summer money conversation with kids? Involve kids in your financial decisionsOnce you and your kids decide what's important for the summer, Delisle and Bosse recommend being open and transparent about how much value-driven activities cost with your kids.

Persons: —, Jamie Bosse, Bosse, David Delisle, Delisle, you'll Organizations: Service, American Camp Association Locations: The Kansas, Florida

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