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☆ As the cost of living skyrockets, 23% of couples stay together mainly because of money constraints
▼ + stars: | 2023-03-31 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

Money can be a relationship's downfall; it can also be the reason couples stay together. With more Americans feeling financially constrained, 23% of all couples are primarily staying in their current relationships due to financial dependency, according to a new report by LendingTree. Between sky-high inflation and stubborn gender dynamics, "I am not surprised at all," said Stacy Francis, a certified financial planner and president and CEO of Francis Financial in New York. Couples in committed relationships also tend to do better financially. A Pew Research study found that men and women both earned more and were more financially sound in a relationship.

Most people only need two bank accounts financial planner Brannon Lambert told HerMoney: A checking account and a savings account. You'll earn more interest with a high-yield savings account than a traditional savings account. See Insider's best high-yield savings accounts right now>>How many bank accounts should I have? Most people just need one checking account and one savings account, Lambert said. The sheer number of bank accounts you have doesn't hurt your credit.

☆ 3 financial red flags that may mean your spouse is thinking divorce, according to a CFP: 'Start looking for money movement'
▼ + stars: | 2023-03-30 | by ( Aditi Shrikant | ) www.cnbc.com time to read: +2 min

La Spisa is not a therapist or a lawyer. "Start looking for money movement," La Spisa advises. Mark La Spisa CFP2. You don't know where the tax return went If your tax return "disappears," that is another sign that your partner could be preparing for divorce, according to La Spisa. A good rule of thumb, La Spisa says, is if you feel like something is off it probably is: "It's all the stuff you'd look for if your spouse was cheating."

☆ 4 red flags for an IRS tax audit — including what one tax pro calls a 'dead giveaway'
▼ + stars: | 2023-03-29 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +3 min

While the IRS plans to hire more workers, including enforcement agents, experts say there's no need to worry — as long as you keep proper documentation. Still, certain red flags are more likely to trigger an IRS audit, experts say. "Round numbers are a dead giveaway," said Preeti Shah, a certified financial planner at Enlight Financial in Hamilton, New Jersey. Earned income tax creditThe IRS has also examined refundable credits, which can provide a refund even when the credit value exceeds taxes owed. While audits have declined overall, the drop has been lower for filers claiming the earned income tax credit, or EITC, targeted at low- to middle-income workers.

But if you're still missing key forms or feeling overwhelmed, you can buy more time by filing a free tax extension. You can avoid a late-filing penalty with an extension by the federal deadline on April 18. You may also need a separate state income tax extension, depending on where you live. How to file a federal tax extensionIf you can't make the April 18 tax deadline, there are a few ways to file for a federal extension, with or without a tax professional. One option is to file Form 4868 online via IRS Free File, which offers free guided tax prep software.

☆ Is your money safe? A financial planner explains whether you should be concerned about your deposits, and how to take advantage of risk-free returns on your cash
▼ + stars: | 2023-03-25 | by ( Laila Maidan | ) www.businessinsider.com time to read: +6 min

The recent lineup of bank failures has depositors suddenly asking the simple question: is my money safe? Jason J. Howell, a certified financial planner and the president of Jason Howell Company, says yes, your money is safe. This way, if you need cash quickly, you could get it. "You're going to have to go to the US TreasuryDirect to buy those bonds," Howell said. "Money markets nearly went bust in the 2008 financial crisis, so there's no need to put a wrapper around it," Howell said.

☆ How to maintain financial independence in a long-term relationship
▼ + stars: | 2023-03-25 | by ( Aditi Shrikant | ) www.cnbc.com time to read: +2 min

Four in five Americans believe that women stay in unhappy relationships due to lack of financial independence, according to data from Bumble's State of the Nation 2023 survey. If independence is important to you, it would be wise to maintain some financial distance from your partner, whether or not you feel your relationship is on shaky ground. "If your value system is to be able to be independent, then you've got to create that independence," said Mark La Spisa, a certified financial planner and president of Vermilion Financial. Mark La Spisa CFPMore tips for maintaining financial independenceHaving your own credit cards is also important, La Spisa said. "People are willing to sacrifice their happiness, in a lot of cases, for security or for stuff," La Spisa said.

☆ Here’s how the IRS says you should handle 1099-K tax reporting mistakes on your return
▼ + stars: | 2023-03-24 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

The 2022 threshold for Form 1099-K, which reports third-party business payments to the IRS, is still more than 200 transactions worth an aggregate above $20,000. That's slated to change for next tax season when the 2023 threshold drops to $600 for even a single transaction. In the meantime, you still need to report business income, regardless of whether you receive Form 1099-K, the IRS said in a news release on Thursday. "In effect, the IRS compares the information it receives from third parties to the information included on a tax return," he said. watch nowHow to handle 1099-K reporting errors

☆ Here are a financial advisor's 4 most important money tips for parents with young kids
▼ + stars: | 2023-03-24 | by ( Greg Iacurci | ) www.cnbc.com time to read: +4 min

Save for future education costsThere are tax-advantaged ways to save for your child's future education. Among the most popular is the 529 plan, which allows parents to invest money for higher education and other costs. While each state has its own 529 plan, parents can invest in a plan outside of their state. "I think parents should ask, do they want to relinquish ownership of this money when their child is an adult?" There are other avenues for parents to invest for their kids, but they may be more challenging.

☆ 3 last-minute moves to lower your 2022 tax bill or boost your refund
▼ + stars: | 2023-03-24 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

Getty ImagesThe tax deadline is approaching, and there are still a few ways to reduce your 2022 bill or boost your refund, experts say. However, there are a few last-minute moves to consider before the federal tax-filing deadline, which is April 18 for most Americans. However, you need to consider more than the current year's tax break before making pre-tax IRA contributions, Lucas said. Contribute to a spousal IRAMarried couples filing taxes jointly may also consider a lesser-known option before the tax-filing deadline: spousal IRA deposits. Collectively, annual spousal IRA deposits can't exceed joint taxable income or two times the yearly IRA limit.

It's usually better to not highly prioritize paying off your mortgage versus saving for retirement. It's important to consider the type of debt and consider whether you should prioritize paying off debt or saving in the final years before retirement. You'll want to list out each of your debts, the interest rate, and monthly payment amount. If your investment return is lower than the interest rate on your debt, then prioritizing debt payoff makes the most sense. If you have less than $375,000 saved across your various retirement accounts, then you will want to heavily prioritize your retirement savings.

☆ Retirement vs. emergency savings: How to prioritize in a shaky economy
▼ + stars: | 2023-03-23 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

Jamie Grill | Getty ImagesWhen you're on a tight budget, It can be tough to decide between contributing to your retirement savings or to your emergency fund — especially during periods of economic uncertainty. Although the 401(k) contribution limit jumped to $22,500 for 2023, experts say you shouldn't forgo emergency savings to max out your plan. More than half of savers are prioritizing short-term financial goals in 2023, including emergency savings, according to a recent study from Fidelity Investments. While maxing out your 401(k) should be the goal, your emergency savings is also important, she said. If your emergency savings are short after that, you should "definitely" divert any additional funds to build up that cash reserve, she said.

☆ Barely one-quarter of financial planners are women, but industry experts say 2 simple strategies could move the needle
▼ + stars: | 2023-03-22 | by ( Korie Wilkins | ) www.businessinsider.com time to read: +5 min

Only 23% of financial planners in the US are women. But as women grow their wealth — women control about 32% of the world's wealth, according to Boston Consulting Group — financial firms are evaluating how best to serve them. "People often saw me as someone's assistant," Sandra Cho, the president and founder of Pointwealth Capital Management, told Insider. Anne Marie Stonich, the chief wealth strategist at Coldstream Wealth Management, told Insider its Women and Wealth program focuses on networking and mentoring. Kate Healy, the managing director of the CFP Board's Center for Financial Planning, told Insider that financial firms are getting savvier about creating career paths for women.

☆ 'Staying the course is the play,' advisor says. 4 tips to help weather market volatility
▼ + stars: | 2023-03-22 | by ( Lorie Konish | ) www.cnbc.com time to read: +4 min

"In the months ahead, volatility may come and go," Vanguard global chief economist Joe Davis said last week. "And for all of us, I think it's important to remember to focus on what we can control," he said. By staying invested in the markets, investors have a better chance of success when it comes to achieving their long-term goals, Davis said. There are a few things to keep in mind that can help you stick through market turbulence, advisors say. "It's important to remember that by staying invested, you're playing the game of compounding your returns," Boneparth said.

☆ It's been a year since the Fed began hiking rates—where things go from here remains 'muddy'
▼ + stars: | 2023-03-22 | by ( Ryan Ermey | ) www.cnbc.com time to read: +1 min

By this time last year, the Fed had kept its benchmark rate near zero since the beginning of the Covid-19 pandemic to help stimulate economic activity. It was the first of eight hikes that have pushed the benchmark rate range to 4.50% to 4.75%. That still puts it a long way from the Fed's target rate of 2%. As the Fed mulls whether to continue upping rates, the central bank will have to consider the collateral damage rate hikes have brought to the economy, markets and investors. "They've been feeling in the darkness for when things would break, and recently [with bank failures] things are starting to break.

☆ What to do with your money now that the Fed just raised rates for the ninth time
▼ + stars: | 2023-03-22 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +9 min

“But the average credit card rate is now at a record high above 20%, auto loan rates are at a 12-year high and mortgage rates are still north of 6.5%. But online high-yield savings accounts now offer rates as high as 5%, well above the 0.23% national savings account average, according to Bankrate. Another high-yield savings optionGiven today’s still-high rates of inflation, Series I savings bonds may be attractive because they’re designed to preserve the buying power of your money. Your credit card debt: Minimize the biteIf you’re carrying credit card debt, expect to see a hike in the rate you pay within a few statements. “Credit card rates are at record highs and still rising.

☆ Social media can be a 'messy place,' says advisor. Here's how to vet online financial advice
▼ + stars: | 2023-03-21 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

watch nowIn the era of social media influencers, some investors are turning to platforms like YouTube, TikTok and Instagram for answers to their most pressing financial concerns. Boneparth, who is president of Bone Fide Wealth and a member of CNBC's Financial Advisor Council, said when sifting through social media advice, it can be difficult to know who to trust and whether the information is accurate. Why 'due diligence' matters with social mediaWhen it comes to financial advice on social media, Boneparth urges caution. When weighing social media advice, you need to check the source and whether the information has been verified, Boneparth said. By balancing it with other sources of information, you may avoid making the wrong decision or taking financial advice that "actually might do more harm than good," he said.

Our experts answer readers' tax questions and write unbiased product reviews (here's how we assess tax products). While the official date to file taxes this year is April 18, people have the option to postpone and file for an extension instead. See Insider's picks for the best tax software »Insider's Featured Tax Software TurboTaxTax SlayerH&R Block Tax Software Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options. Editor's Rating 4.2/5 A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star Editor's Rating 4.6/5 A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star Editor's Rating 4.5/5 A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star Learn more On TurboTax's website Learn more On Tax Slayer's website Learn more On H&R Block's websiteMyth No. "You can only file for one extension, giving you six more months to file your tax return," he says.

☆ Key banking crisis lesson: 'The first line of defense should always be cash,' advisor says
▼ + stars: | 2023-03-20 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

People wait outside the Silicon Valley Bank headquarters in Santa Clara, California, to withdraw funds after the federal government intervened upon the bank's collapse, on March 13, 2023. watch now"The first line of defense should always be cash," said Braxton, who is a member of CNBC's Financial Advisor Council. Without liquidity, SVB couldn't "absorb the shock of the cash run," and had to sell its assets at the wrong time, she said. It's a valuable lesson for investors who may someday face their own cash crunch due to a job loss or another financial emergency, Braxton said. The first line of defense should always be cash.

☆ 5 key things to know when you create a will and make other end-of-life plans
▼ + stars: | 2023-03-19 | by ( Sarah O'Brien | ) www.cnbc.com time to read: +6 min

Here are five key things to know if you start thinking about how you'd craft an estate plan. A will may not cover all your basesA will is a basic part of an estate plan. Be aware that many 401(k) plans require your current spouse to be the beneficiary unless they legally agree otherwise. watch nowAdditionally, an estate plan should include other end-of-life documents, including a living will. You'll need to revisit your estate plan

☆ Yellen says uninsured deposits may be at risk in future bank failures. Here’s how FDIC coverage works
▼ + stars: | 2023-03-17 | by ( Lorie Konish | ) www.cnbc.com time to read: +3 min

How FDIC coverage worksThe limit for FDIC coverage is $250,000 per depositor, per bank, in each account ownership category. The majority of Americans are going to be covered by FDIC insurance. For example, a married couple with a business may have up to $250,000 insured in an account in one spouse's name, up to $250,000 insured in an account in the other spouse's name and up to $250,000 insured in a business account. How to check, boost FDIC protectionIf you want to know whether your deposits are FDIC-insured, check your bank statement, Jenkin said. Not all accounts provide FDIC coverage, Jenkin noted.

☆ 41% of adults are preparing for a recession. It's time to stress-test your income, advisors say
▼ + stars: | 2023-03-17 | by ( Lorie Konish | ) www.cnbc.com time to read: +5 min

Yet many Americans — 41% — have taken steps to prepare for a possible economic downturn, according to a survey by Morning Consult. Still, there are a few steps advisors say you should take now to make sure you are prepared to weather a downturn. Barry Glassman president of Glassman Wealth Services"Stress-test your income against your ongoing obligations," Glassman said. The upside for conservative investors is they are now able to get higher interest rates on their cash. Reduce your debtsHigher interest rates mean consumer debts are climbing higher.

☆ Why bank runs like the SVB collapse happen: 'It's like a mass delusion that becomes a reality'
▼ + stars: | 2023-03-17 | by ( Ryan Ermey | ) www.cnbc.com time to read: +1 min

Shares of multinational financial firm Credit Suisse soared in early trading Thursday after the bank announced it would borrow up to 50 billion Swiss francs ($54 billion) from the Swiss National Bank. Late last week week, SVB's clients — many of them tech startups — pulled their money from the bank en masse, forcing regulators to step in and seize deposits in what became the second-largest bank failure in U.S. history. Others say the bank failed to manage risk properly. Anonymous employees at the bank say the firm would have been fine had it not spooked depositors by publicly revealing its struggles. It comes down to our herd mentality, our tribal brain," says Brad Klontz, a certified financial planner and financial psychology professor at Creighton University.

☆ How to Pick a Financial Advisor
▼ + stars: | 2023-03-17 | by ( ) www.wsj.com time to read: +12 min

Read on to get started:Types of financial advisorsMany financial professionals, including financial planners, securities brokers, investment managers, and insurance brokers call themselves financial advisors so it’s important to know exactly what services an advisor provides before hiring one. Financial advisor designationsThere are myriad designations for financial advisors but only a handful that indicate the expertise most consumers need. CPAs, or Certified Public Accountants, can be certified with a Personal Financial Specialist credential, which combines their tax expertise with personal financial planning knowledge. How to find a financial advisorFinding a financial advisor is not so different from finding any other specialized service you’re in the market for. The right financial advisor can help navigate your financial life, from budgeting everyday spending to fulfilling long-term financial goals over a lifetime including the purchase of a home and a comfortable retirement.

☆ The last chance for some retirees to avoid a 25% tax penalty is April 1
▼ + stars: | 2023-03-17 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

In 2022, Secure 2.0 raised the age to 73, which starts in 2023. RMDs apply to both pre-tax and Roth 401(k)s and other workplace plans, along with most individual retirement accounts. Secure 2.0 reduced the RMD penaltyIf you skip your RMD or don't take out enough, there's a 25% penalty, levied on the amount you should have withdrawn. Secure 2.0 dropped the penalty to 25% from 50% starting in 2023, with the possibility of reducing it further to 10% if you take your missed RMD during the "correction window." "In the past, the IRS was lenient about missed RMDs, but with the new reduced penalties, they may get more aggressive," he said.

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