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☆ Over 60% of Americans don't talk about money—here's why that could hold you back from building wealth
▼ + stars: | 2023-05-10 | by ( Kamaron Mcnair | In Kamaronmcnair | ) www.cnbc.com time to read: +4 min

Growing up, you might have been taught that it's impolite to talk about money at a dinner party or other social gathering. The reason: Talking about money can help you make smarter financial decisions, feel more confident in your situation and, ultimately, build wealth. Majority of Americans talk about money with their spouses, but not with friendsWhen Americans do talk about money, they're most likely having those conversations with their spouse or partner. However, many couples still don't: Nearly half (46%) of respondents say they don't talk about money with their partners. On top of that, 75% of people don't have financial conversations with their friends.

☆ What the debt ceiling standoff means for money market funds
▼ + stars: | 2023-05-10 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

But some investors worry about increased risk as the debt ceiling debate intensifies. Money market funds — which are different than money market deposit accounts — typically invest in lower-risk, short-term debt, such as Treasury bills, and may make sense for short-term investing goals. As a result, some of the biggest money market funds are paying nearly 5% or more as of May 9, according to Crane data. Investors worry funds may 'break the buck'As default concerns rise, investors fear money market funds may "break the buck," which happens when a fund's so-called net asset value, or total assets minus liabilities, falls below $1. Money market funds may provide an 'opportunity'Despite the looming debt ceiling, advisors are still recommending money market funds for cash.

☆ Here's the best time to redeem Series I bonds to maximize your interest
▼ + stars: | 2023-05-10 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

Meanwhile, annual inflation rose to 4.9% in April, the smallest jump in two years, the U.S. Bureau of Labor Statistics announced Wednesday. But after a series of interest rate hikes from the Federal Reserve, alternatives like Treasury bills, certificates of deposit or money market accounts have emerged as competitive options for cash. "You lose that last three months of interest," said Ken Tumin, founder and editor of DepositAccounts.com. watch nowIf you're selling I bonds within five years, it's easy to get confused by how much interest you're giving up. (You can find the rate by purchase date here and rate change by purchase month here.)

☆ 4 of the best places for cash as the Federal Reserve weighs a pause in interest rate hikes
▼ + stars: | 2023-05-06 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +4 min

Hero Images | Hero Images | Getty ImagesWhether you're building an emergency fund or short-term savings, finding the best place for your cash isn't easy — especially as the Federal Reserve weighs a pause in interest rate hikes. The central bank on Wednesday unveiled another quarter percentage point interest rate increase, with signals that it may be the last. But higher yields are still available for those "willing to shop around," said Greg McBride, chief financial analyst at Bankrate. While the average savings rate is still below 0.5%, some of the top high-yield online savings accounts are paying over 4%, as of May 4. However, CDs are generally less liquid than savings accounts because you may owe a penalty for cashing out before the term ends.

Our experts answer readers' personal loan questions and write unbiased product reviews (here's how we assess personal loans). Payday loans and title loans come with high interest rates that trap many people in a cycle of debt. Low interest personal loans. These loans are helpful for home repairs or remodeling where you may need to borrow money as needed. These loans are helpful for home repairs or remodeling where you may need to borrow money as needed.

☆ A recession could hit single women especially hard, says financial advisor. Here's how they can prepare
▼ + stars: | 2023-05-05 | by ( Annie Nova | ) www.cnbc.com time to read: +2 min

Fotostorm | E+ | Getty ImagesFears of an upcoming recession and high inflation may be weighing most heavily on single women, according to a financial advisor who works with that demographic. "Rising inflation hits women harder with their smaller incomes," she said. If there is a recession later this year, as some economists predict there will be, many single women would enter it in a more financially vulnerable situation, Curtis said. For women who live alone, losing a paycheck can mean a pause in all income for the household, and lower wages relative to men may mean single women also have less savings to turn to. Look for ways to cut back on expensesWomen worried about an economic downturn may want to cut back on their discretionary spending as much as possible, Curtis said.

☆ 66% of renters say homeownership is 'hopeless'—here's how they'd rather spend their money
▼ + stars: | 2023-05-04 | by ( Mike Winters | ) www.cnbc.com time to read: +2 min

A majority of them don't think they'll ever have enough money to buy property, recent data finds. In fact, 66% of U.S. renters say rising home prices have them feeling "hopeless" about owning a home, according to a survey by online brokerage Home Bay of 1,000 renters. With median home prices up 33% since January 2020, 77% of renters say the U.S. has an affordable housing crisis. While 51% of renters consider owning a home to be a "very important" financial milestone, survey respondents were more likely to select other achievements as priorities. Rising housing costs are an issue in the rental market too, as nearly 1 in 4 renters say they currently spend 50% or more of their income on rent.

A high-yield savings account is a good place to store money for short-term needs. Many banks offer high-yield savings accounts with variable high interest rates. A high-yield savings account may be the best place to save money for travel or a wedding. The best high-yield savings accounts offer variable annual percentage rates (APYs), some at 3.75% APY or more. Fun moneyIf you really want to reward yourself, consider putting your "just for fun" money in a high-yield savings account.

☆ Where to get the best returns on your savings when rates are high
▼ + stars: | 2023-05-03 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +6 min

The average bank savings rate as of April 26 was a paltry 0.24%, according to Bankrate. At some of the biggest banks, savings rates are as low as 0.01%. For the rest of your emergency fund and other savings, you can get a healthy return just by opening an online high-yield savings account at an FDIC insured online bank. As with most bank rates, high-yield rates are variable so can change at any point. Don’t chase yieldAs attractive as many savings rates are today, they are no substitute for the long-term returns you can earn in a diversified investment portfolio of stocks, bonds and other assets.

In its continued battle with inflation, the central bank on Wednesday announced another quarter percentage point interest rate increase. The latest rate increase comes after annual inflation eased to 5% in March, down from 6% in February, according to the U.S. Bureau of Labor Statistics. When building a bond portfolio, advisors consider so-called duration, which measures a bond's sensitivity to interest rate changes. I don't see us moving much higher from an interest rate perspective, so that should be good for bonds moving forward. But it may take another six months to see the results from the Fed's series of interest rate hikes, he said.

☆ Your mortgage and home loans: What to do now that the Fed just raised rates for the 10th time
▼ + stars: | 2023-05-03 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +2 min

The 30-year fixed rate mortgage has run north of 6% all year. As to where mortgage rates go next, look to inflation. If inflation keeps dropping, then mortgage rates are expected to drift lower too. The average home equity loan rate was running at 7.94% as of April 26, well above the 6.4% recorded in mid-April last year. If you are close to buying a home or refinancing one, it may be a good idea to lock in the lowest fixed rate available to you.

"We've got this window of low taxes here," said certified financial planner Dan Galli, owner at Daniel J. Galli & Associates in Norwell, Massachusetts. Former President Donald Trump's signature tax overhaul temporarily shifted individual income tax brackets by reducing the rates and applicable income levels. "It's a fascinating time to look at how you want to blend or sequence your income in retirement," Galli added. If you're 59½ or older, you can start taking withdrawals from pre-tax retirement plans without incurring a penalty. While you'll still owe regular income taxes, those rates may be lower through 2025, he said.

If you're spending your extra cash right now, it's a good idea to spend it on personal improvement. But deciding what to do with extra cash shouldn't just be about immediate fun if you can help it. And second, if you put the money in a high-yield savings account, it can earn interest. Let the money earn interestIt might take you some time to decide what to do with extra cash. Certified financial planner Jim Eutsler shared that you can park the cash in a high interest rate environment, such as a high-yield savings account or a CD.

☆ Mastering this skill is the ‘hardest part’ of personal finance, advisors say
▼ + stars: | 2023-05-01 | by ( Greg Iacurci | ) www.cnbc.com time to read: +1 min

The following is an excerpt from "This week, your wallet," a weekly audio show on Twitter produced by CNBC's Personal Finance team. Being a "master of cash flow" is a key element of household finance — and also one of the most challenging, said certified financial planner Douglas Boneparth. "Balancing these two things [is] arguably the hardest part of all of personal finance," he said. While investing for long-term goals is important due to the power of compounding, "what good is investing if you can't stay invested?" Without discipline around cash flow, an unforeseen life event may arise that causes you to dip into those investments that you'd hoped not to touch for years, he added.

☆ There's still time to claim your share of $1.5 billion in unclaimed tax refunds from 2019, IRS says
▼ + stars: | 2023-05-01 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

The 2022 federal tax deadline has passed for most Americans, but another key date is approaching for past-due filers. If you're one of the nearly 1.5 million people with an unclaimed tax refund from 2019, the last chance to file your return is July 17, according to the IRS. There's a state-by-state breakdown of median potential refunds for 2019 here. "The 2019 tax returns came due during the pandemic, and many people may have overlooked or forgotten about these refunds," IRS Commissioner Danny Werfel said in a statement. With the 2019 tax deadline extended until July, Werfel said, many Americans, particularly lower earners such as students and part-time workers, may have accidentally skipped the filing.

☆ 31% of new crypto buyers influenced by friends. Here’s why that can be 'a horrible idea,' advisor says
▼ + stars: | 2023-04-28 | by ( Greg Iacurci | ) www.cnbc.com time to read: +3 min

"I don't imagine friends are talking about when they lost money," said Lee Baker, a certified financial planner and founder of Apex Financial Services in Atlanta. "The sexy sells," added Baker, a member of CNBC's Advisor Council. On one hand, crypto can be an on-ramp to more traditional investing — which is generally a good outcome, Mottola said. There's some evidence of this happening: 36% of new crypto investors said their purchase made them more interested in investing in the stock market, the study found. However, "the friends recommending [crypto], the sources of information on social media, may not be reliable," Mottola said.

☆ 3 smart ways to prepare for next year’s taxes now
▼ + stars: | 2023-04-27 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

FatCamera | E+ | Getty ImagesIf you had a surprise tax bill this season, it's not too soon to prepare for next year, financial experts say. Typically, a refund comes when you've overpaid throughout the year, whereas you get a tax bill for not having paid enough. Check your withholdingsIf you owed more taxes than expected for 2022, you may revisit your paycheck withholdings for 2023 and make the necessary adjustments. "A simple calculation would be dividing the extra tax paid in 2022 by the number of remaining paychecks in 2023," he said. If you have three types of accounts — brokerage, tax-deferred and tax-free — you can be strategic about where to keep assets.

☆ Talk about money in your relationship, says financial psychologist: 'It tends to be good for us'
▼ + stars: | 2023-04-27 | by ( Sara Lindsay | In Sara-Lindsay | ) www.cnbc.com time to read: +2 min

This disparity can lead to uncomfortable situations like not wanting to talk about money or even "financial infidelity" — couples hiding their purchases from each other. But financial psychologist Bradley Klontz, a member of CNBC's Financial Advisor Council, said talking about money in a relationship can serve as an opportunity for growth. "Sometimes we don't enjoy that experience, but it tends to be good for us when it comes to our relationship with money." That anxiety surrounding money, Klontz said, is also often inherited. Not talking these things through leaves people feeling alone in their financial struggles, even though 7 in 10 Americans report feeling stressed about money, according to a new CNBC Your Money Financial Confidence Survey conducted in partnership with Momentive.

☆ Took a huge hit on taxes this year? How investors can avoid a hefty bill next year
▼ + stars: | 2023-04-26 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +5 min

Last year was a complex one for investors, as the sharp market decline seemingly left traders short of huge capital gains from dumping highly appreciated stocks. "It's counterintuitive to people: Why do I have a large capital gains distribution this year? Meanwhile, investments that you hold for more than a year are subject to long-term capital gains rates, which can be as high as 20%. This means you sell a losing position to offset capital gains elsewhere in the portfolio, thus reducing the tax hit. Meanwhile, in a traditional IRA, taxes are merely deferred, but withdrawals are subject to income taxes.

☆ The 'holy grail' of investing accounts: How IRAs can boost your retirement savings
▼ + stars: | 2023-04-26 | by ( Ryan Ermey | ) www.cnbc.com time to read: +5 min

Like workplace retirement accounts, such as 401(k)s, IRAs provide another way to save for retirement. And withdrawing money in retirement without owing any tax is the "holy grail," says Ed Slott, a certified public accountant and founder of IRAHelp.com. Roth IRAs offer no upfront deduction, because they're funded with money you've already paid taxes on. Plus, you can take out any of the money you've put in at any time without penalty. How do I open a Roth IRA?

☆ The cost of investing has been falling. Here's what investors should know
▼ + stars: | 2023-04-26 | by ( Pia Singh | ) www.cnbc.com time to read: +5 min

High fees can take a bite out of your portfolio returns, but the good news is that it's becoming cheaper to invest. Financial services firms charge clients a fee to invest their funds, typically withdrawn from their investment assets. Increased competition, notably in the ETF market and between direct-sold mutual funds, has also contributed to lower investment costs, Hauptman said. "It's important for investors to not just look at one piece of the investing puzzle to the extent that they're getting products and services," Hauptman said. Watch for other costs: If you're investing through a brokerage account, keep an eye out for transaction fees, which can be very painful for the most active investors.

Sdi Productions | E+ | Getty ImagesIt's been a grueling period for investors amid rising interest rates and lingering recession fears. "Don't get so wrapped up in the markets that you forget about your asset of you — and how you can best protect your money and your legacy," said Braxton, who is also a member of CNBC's Financial Advisor Council. Braxton said it's critical to have estate planning documents, including a will that dictates who will receive your assets upon death, and to keep your beneficiaries updated. While Covid-19 has prompted a rise in estate planning, nearly 66% of American adults still don't have a will, according to a 2023 survey from Caring.com. Braxton said it's also important to have documents for powers of attorney, allowing someone to make financial or health-care decisions on your behalf if you were unable.

☆ More money will certainly mean more problems in your relationships, financial experts say—especially a marriage
▼ + stars: | 2023-04-21 | by ( Aditi Shrikant | ) www.cnbc.com time to read: +4 min

It's obvious how financial instability can negatively affect relationships – less money means more compromising. Coming into a "life-changing" amount of money can be disorienting, says Susan Bradley, a certified financial planner and the founder of Sudden Money Institute. In opposite-sex marriages, which partner makes more money can also be a source of stress, especially if it's the woman. Well, how many times do you do that before they start to feel weird and you start to feel weird?" Decisions like this can cause stress — stress you wouldn't have if that house was never an option in the first place.

Phishing scams were up 61% in 2022, and the scammers' goal is to convince you to give them your information. A study from SlashNext even showed that in 2022, there were 255 million phishing scam attacks, a 61% increase compared to 2021. Fake bank emailsWhen you're scrolling through your inbox, you might occasionally get emails from your bank, open them up, and resolve what's inside. "These emails often contain a phishing link or attachment that, once clicked, can install malware on the user's device," he says. Real estate wire transferIf you're involved in real estate transactions, Sprung says there's a phishing scam happening in the industry that's worth paying attention to.

☆ 'Avoid the 1-click option 100% of the time': 5 ways to trick yourself into saving money
▼ + stars: | 2023-04-20 | by ( Mike Winters | ) www.cnbc.com time to read: +4 min

If you're like most people, you find that saving money is harder than spending it — especially when impulse purchases are just a mouse-click away. To help you save money, financial planners recommend following some sort of a budget, like one that follows the 50-30-20 rule. For that reason, "avoid the one-click option 100% of the time," suggests Brenna Baucum, a CFP in Oregon. Think of purchases in hours worked, not dollars spentAnother mental trick is to think of purchases in terms of hours worked, rather than dollars spent. It involves withdrawing all of your spending money as cash every month and dividing it into envelopes dedicated to different budgeted expenses, like groceries, gas or rent.

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