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☆ This 'wild card' strategy can help retirees with unpaid quarterly taxes before year-end
▼ + stars: | 2022-12-20 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

If you're retired and skipped your 2022 tax payments, you can still avoid late penalties with an under-the-radar year-end strategy, experts say. Since taxes are due as you receive income, you must withhold levies from earnings or pay quarterly estimated tax payments. You may owe quarterly taxes if you didn't withhold enough from Social Security, pensions or other income. But if you missed paying quarterly taxes, you can correct that mistake through your year-end required minimum distribution, or RMD, which currently begins at age 72. More from Personal Finance:There's still time to reduce your 2022 tax bill with these last-minute moves21% of investors don't think they pay fees.

☆ There’s still time to reduce your 2022 tax bill with these last-minute moves
▼ + stars: | 2022-12-20 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +3 min

Getty ImagesThere's still time to reduce your 2022 tax bill or boost your refund, but the last chance for certain strategies is fast approaching, according to financial experts. And the deadline for many tax-slashing moves is Dec. 31, leaving limited time amid the busy holiday season. After reducing your 2022 investment gains, you can use additional losses to lower regular income by $3,000 and carry the remaining losses forward to future tax years. watch nowOf course, you'll want to know how the conversion affects your 2022 taxes because more adjusted gross income may trigger higher Medicare premiums, among other tax consequences. For 2022, the standard deduction is $12,950 for individuals and $25,900 for married couples filing together.

☆ 88% of employers offer a Roth 401(k) — almost twice as many as a decade ago. Here’s who stands to benefit
▼ + stars: | 2022-12-16 | by ( Greg Iacurci | ) www.cnbc.com time to read: +3 min

Maskot | Maskot | Getty ImagesThe ranks of employers offering a Roth savings option to 401(k) investors continue to grow, giving more workers access to its unique financial benefits. Workers pay taxes up front on 401(k) contributions, but investment growth and account withdrawals in retirement are tax-free. Almost 28% of workers participating in a 401(k) plan made Roth contributions in 2021, up from 18% in 2016, according to the PSCA. (One important note: Investment growth is only tax-free for withdrawals after age 59½, and provided you have had the Roth account for at least five years.) Some may shun Roth savings because they assume both their spending and their tax bracket will fall when they retire.

☆ 23% of Americans think real estate is the best way to build wealth, but only 12% bought in 2022
▼ + stars: | 2022-12-15 | by ( Ryan Ermey | ) www.cnbc.com time to read: +1 min

When it comes to building wealth, Americans say one thing and do another. Why real estate is more popular than stocks in theory, but not in practiceSo what's keeping Americans from investing the way they want? "In real estate, it takes money to make money," says Nicholas Bunio, a certified financial planner in Downingtown, Pennsylvania. It's no wonder, then, that wealthier respondents in Make It's survey were more likely to have invested in real estate. Just 6% of respondents earning $50,000 or less said they bought real estate this year, compared with 12% earning between $50,000 and $99,000 and 21% earning $100,000 and up.

☆ Long Covid medical costs average $9,500 in first six months, as patients become 'health-system wanderers'
▼ + stars: | 2022-12-15 | by ( Greg Iacurci | ) www.cnbc.com time to read: +5 min

Long Covid is a chronic illness that can carry potentially debilitating symptoms, which may last for months or years. Long Covid patients are "health-system wanderers," said Mark Newman, CEO and co-founder of Nomi Health. "There are diseases and conditions with a lot of obvious answers, and long Covid is not one of them," Newman said. In a separate study, Harvard University economist David Cutler estimated that long Covid costs patients $9,000 a year in medical expenses. Patients with long Covid racked up $9,000 in additional average medical costs per person when compared to similar people who had Covid but didn't have subsequent long-haul symptoms, Nomi Health found.

☆ What to do about the highest interest rate in 15 years
▼ + stars: | 2022-12-14 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +11 min

In its last policymaking meeting of the year, the Federal Reserve on Wednesday raised its benchmark interest rate for the seventh time in a row, to a range of 4.25% to 4.5%. Otherwise, any remaining balance will be subject to a new interest rate that could be higher than you had before if rates continue to rise. That said, “don’t jump into a large purchase that isn’t right for you just because interest rates might go up. If that’s not possible, consider paying off that balance by taking out a HELOC with another lender at a lower promotional rate, McBride suggested. The floating rate is tied to a short-term benchmark rate, such as the fed funds rate, so it will go up whenever the Fed hikes rates.

Then, pick a high-yield savings account, and consider a CD ladder for cash you can store safely away. "This can help you ‌get through tough times without having to rack up high interest rate debt," she says. Choose an account that pays moreIf you're the most comfortable keeping your cash liquid, certified financial planner Charles Thoman III says that's fine, but consider a savings account that's offering a high interest rate. "Find one that has a high interest rate, FDIC insurance, and low or no fees." However, she does recommend always shopping carefully and reading the fine print to understand terms, penalties, and FDIC coverage of a CD you're considering buying.

☆ 'It could be a blessing and a curse.' Here are 3 unexpected financial pitfalls unmarried couples need to know
▼ + stars: | 2022-12-13 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

SEATTLE — If you're living together before marriage or committed long-term without plans to tie the knot, you'll need to prepare for the future — or you may face challenges later, experts say. There are "rising rates of cohabitation," with many couples skipping marriage because "they don't see the benefit," said Michelle Petrowski, a certified financial planner at the Phoenix-based financial firm Being in Abundance. Financially speaking, "it can be a blessing and a curse," she said, speaking at the Financial Planning Association's annual conference on Monday. While some couples opt out of marriage for financial reasons, they may not understand the pitfalls, Petrowski said. Here are some unexpected financial issues unmarried couples need to consider.

☆ The No. 1 action Americans took in 2022 to build wealth
▼ + stars: | 2022-12-13 | by ( Ryan Ermey | ) www.cnbc.com time to read: +2 min

If earning more money is on your to-do list in the upcoming year, it's worth examining the actions other Americans say they took to do so in 2022. When asked which steps they took to build their personal wealth in 2022, 27% of Americans said they invested in the stock market. Zoom In Icon Arrows pointing outwards Gene Kim | CNBC Make ItInvesting during a down market: 'You should be super excited'Investing in the stock market in 2022 has required some perseverance. While the slide in stock prices has likely scared off more than a few investors in the short-term, those looking to build long-term wealth have been smart to keep buying. That's because, historically, the stock market has trended steadily upward.

☆ Strong returns could be hard to find in 2023. How to prep your portfolio and generate income
▼ + stars: | 2022-12-11 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +5 min

Wall Street is warning of a stormy start to 2023 , but investors should prepare to find pockets of opportunity and ensure their portfolio is running efficiently. Bond prices have tumbled alongside stocks, such that even the iShares Core Growth Allocation ETF – which is based on a 60/40 split between equities and fixed income – has dropped nearly 15%. Higher yields on fixed income The silver lining of the Federal Reserve's interest rate hiking campaign is the rising yield investors can find on even the most boring fixed income offerings. Meanwhile, Series I savings bonds that are issued from Nov. 1 to April 30, 2023 have a current interest rate of 6.89%. Short-term Treasurys are another attractive option for your fixed income sleeve.

☆ 5 ways grocery stores get you to pay more — and how to outsmart them
▼ + stars: | 2022-12-09 | by ( Jen Glantz | ) www.businessinsider.com time to read: +6 min

She asked experts about the sneaky ways grocery stores get customers to buy and pay more. I asked five experts, from recipe developers to nutritionists, to share how I can outsmart grocery stores and lower my bill every week. Grocery stores target your cell phoneOne long-standing tradition I have is hunting for coupons before heading to the grocery store. To prevent this, York advises to only use the grocery store app after your shopping cart is complete to avoid giving into any tempting deals. Veronica Rouse, a registered dietitian and nutritionist, explained how grocery stores manipulate customers into buying certain items just through the setup of the store.

☆ Here are some things to think about before deciding to retire in another state
▼ + stars: | 2022-12-09 | by ( Deborah Nason | ) www.cnbc.com time to read: +4 min

This may include health care, health insurance, rent, home prices, home insurance (especially in a place like Florida), property taxes, transportation costs, etc. Income taxes: It can really impact long-term retirement projections when you move from a state without income taxes to one with state levies on earnings. It can really impact long-term retirement projections when you move from a state without income taxes to one with state levies on earnings. Estate taxes: Many states have much lower estate-tax exemptions than the federal government, which could result in a state estate tax applying to heirs. "Both private health insurance for younger retirees and Medicare Advantage plans have specific service areas," he said.

A holiday bonus offers a good opportunity to pay off debts or add to your savings. Here's how to make the most of your holiday bonus — and some key spending mistakes to avoid. With soaring energy bills and the cost-of-living crisis hitting people hard, a holiday bonus offers a chance to eat away at debt and boost your savings. The careers site Indeed suggests the average holiday bonus is about 5% to 10% of a salary. She said she didn't think twice about it when December rolled around and her holiday bonus landed in her bank account.

☆ 401(k) 'hardship' withdrawals hit record high, Vanguard says — another sign households feel the pinch of inflation
▼ + stars: | 2022-12-08 | by ( Greg Iacurci | ) www.cnbc.com time to read: +6 min

Thomas Barwick | Stone | Getty ImagesThe share of retirement savers who withdrew money from a 401(k) plan to cover a financial hardship hit a record high in October, according to data from Vanguard Group. Nearly 0.5% of workers participating in a 401(k) plan took a new "hardship distribution" in October, according to Vanguard, which tracks 5 million savers. Americans are 'feeling the pinch from inflation'Nearly all 401(k) plans allow workers to take hardship withdrawals, but employers may vary in their rationale for allowing them. Participants can also access 401(k) savings via loans or nonhardship withdrawals. Beyond the apparent acute financial need among households, hardship withdrawals carry negative repercussions.

☆ How to invest in cryptocurrency like a financial planner: 'Do so with caution'
▼ + stars: | 2022-12-08 | by ( Ryan Ermey | ) www.cnbc.com time to read: +1 min

Even if you don't directly work with a financial advisor, it could be worth paying attention to what they're saying about markets and investing. Take the recent announcement regarding cryptocurrency from the CFP Board, the professional organization for certified financial planners. Planners providing advice on crypto-related investments, the board ruled, are neither required to or barred from providing advice related to crypto, but "should do so with caution." If a group of financial professionals are treading carefully around crypto, it may make sense for you to follow suit. Here are the crypto risks that financial pros are most worried about, and how they're approaching crypto on behalf of their clients.

☆ Taking required minimum distributions? How to reduce the sting of selling in a down market
▼ + stars: | 2022-12-07 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

The deadline is fast approaching for mandatory retirement plan withdrawals, which may force some retirees to sell assets in a down market. But experts say there may be ways to reduce the negative effects. Required minimum distributions, known as RMDs, are yearly amounts that must be taken from certain retirement accounts, such as 401(k) plans and most individual retirement accounts. Although it's been a rough year for the stock market, there's a steep IRS penalty for missing RMD deadlines — 50% of the amount that should have been withdrawn. As of mid-day Dec. 7, the S&P 500 Index is down more than 17% for 2022, and the Bloomberg U.S.

☆ It's never too soon to save for retirement. Here are 3 ways Gen Z workers can start now
▼ + stars: | 2022-12-07 | by ( Taiya Jarrett | ) www.cnbc.com time to read: +1 min

If you're just out of college, you may be wondering when the right time is to get started with a retirement savings plan. To that point, 55% of Americans already working think they are behind on saving for retirement, according to a recent Bankrate survey. But even some younger workers are concerned: Almost one-third, 30%, of Gen Z think they are behind. Plus, the most common regret among older employees and retirees is that they didn't start planning or saving for retirement early enough. "Not only will it reward you, it's necessary to successfully navigate your life," he said.

☆ 4 financial moves if you have — or are worried about — long Covid
▼ + stars: | 2022-12-06 | by ( Greg Iacurci | ) www.cnbc.com time to read: +5 min

"We're far from being done with this," McClanahan, founder of Life Planning Partners in Jacksonville, Florida, said of long Covid. Waiting until after developing long Covid might mean you pay higher premiums for life insurance or private disability insurance — or that insurers will deny coverage, McClanahan said. Long Covid has been linked to hundreds of potential symptoms, some of which are debilitating and serious, like damage to vital organs. For instance, there's not yet a test to determine if someone has long Covid, meaning some doctors are hesitant to diagnose or treat patients. For individuals worried they might have long Covid, McClanahan recommends creating a medical diary with detailed logs of each symptom and doctor visit.

☆ 'You can control your tax reporting destiny.' 4 key year-end tax moves
▼ + stars: | 2022-12-05 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +3 min

While your tax return isn't due until April, several key deadlines are approaching by year-end, experts say. "You can control your tax reporting destiny," said certified financial planner Jim Guarino, a CPA and managing director at Baker Newman Noyes in Woburn, Massachusetts. Since few Americans itemize deductions, it's harder to claim a tax break for charitable gifts. Time Roth IRA conversions with transfers to a donor-advised fundAnother charitable giving strategy, donor-advised funds, may pair well with a Roth IRA conversion, Guarino said. Donor-advised funds act like a charitable checkbook, allowing investors to "bunch" multiple years of gifts into a single transfer, providing an upfront tax deduction.

☆ 'A lot of people are going to see less money in their pocket.' Here are must-know tax changes for 2022
▼ + stars: | 2022-12-02 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

Tom Werner | DigitalVision | Getty ImagesCertain tax credits have been reducedOne possible reason for a smaller tax refund is the child tax credit and the child and dependent care tax credit have been reduced for 2022, explained certified financial planner Cecil Staton, president and wealth advisor at Arch Financial Planning in Athens, Georgia. "The big picture is a lot of people are going to see less money in their pocket," Staton said. In 2021, the child tax credit offered up to $3,600 per child under age 6, and up to $3,000 per child ages 6 through 17, with half available via upfront payments. But for 2022, the tax break reverts to the previous amount — up to $2,000 per child under age 17. You may get Form 1099-K for third-party paymentsIf you've received payments through apps like Venmo or PayPal in 2022, you may get Form 1099-K in early 2023, which reports income from third-party networks.

I shared my finances with an advisor to get his advice for preparing for a recession. In addition to having a solid health insurance plan, Keil suggests looking into a plan that includes a health savings account. Another strategy Keil mentioned is that if you have an HSA but can cover a health expense out of pocket, do that and save the receipt. For example, some of my fixed costs include my rent payment, health insurance monthly premium, and utility bills (electricity, cable bills, etc.). Action step: Keil also recommends opening a Roth IRA since withdrawals of both contributions and earnings are tax-free once you turn 59 1/2.

☆ It's been a volatile year for the market: These are the key things to know before rebalancing your portfolio
▼ + stars: | 2022-11-29 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

After a volatile year for the stock and bond markets, it may be time to rebalance your portfolio by shifting assets back to match your original goals, according to experts. As of Nov. 28, the S&P 500 Index was down roughly 17% year-to-date, and the U.S. bond market has dropped by around 13%, leaving many investors with significantly different allocations than one year ago. Typically, you choose an initial percentage of stocks, bonds and other assets based on risk tolerance and goals, said certified financial planner Anthony Watson, founder and president of Thrive Retirement Specialists in Dearborn, Michigan. More from Personal Finance:3 lesser-known ways to trim your 2022 tax bill or boost your refundHere's how the BlockFi bankruptcy may affect your crypto taxes for 2022What to know about the latest payment pause extension on student loansBut as the markets fluctuate, the allocation of each type of asset may shift, and without periodic rebalancing, "the portfolio starts to look very different," he said. For example, if your target is 50% stocks and 50% bonds, those percentages could eventually drift to 70% stocks and 30% bonds, which is "far riskier" than the original allocation, Watson said.

☆ Here's how those looking to 'age in place' can fund home health-care services
▼ + stars: | 2022-11-28 | by ( Deborah Nason | ) www.cnbc.com time to read: +4 min

Halfpoint Images | Moment | Getty ImagesSome 70% of people want to age at home, yet only 10% have long-term care insurance, a recent HCG Secure/Arctos Foundation study found. Furthermore, about half of respondents had no idea how much in-home care would cost. "Basically, I try to segment the risk into a short-term need and a long-term need, and to fund them separately," he said. "And most of them can't afford long-term care insurance." Digging into any corporate retiree benefits beyond just a pension, as there's often additional services for in-home care, he said.

☆ Over 10 years, 43% of first marriages can fail. Here's why couples might want a postnuptial agreement
▼ + stars: | 2022-11-27 | by ( Deborah Nason | ) www.cnbc.com time to read: +4 min

Vitapix | E+ | Getty ImagesWhile couples might sign a prenuptial agreement before they're married and a "post-nup" after, it's more than just the timing that differentiates these arrangements, experts say. "It's a whole different ballgame once you're married," said Martin Shenkman, estate attorney with Shenkman Law in New York City. When a post-nup might be called forWhat situations might prompt a couple to prepare a postnuptial agreement? For example, married couples may need to adjust a pre-nup they'd signed, according to attorney and certified financial planner Keith Singer, president of Singer Wealth in Boca Raton, Florida. According to the Centers for Disease Control and Prevention, over 10 years as many as 43% of first marriages can fail.

☆ This 1 simple step can help you increase your charitable giving
▼ + stars: | 2022-11-27 | by ( Kamaron Mcnair | ) www.cnbc.com time to read: +3 min

Those who budget for charitable donations are also twice as likely to say they plan to increase their donations over the next year compared with those who don't have a giving budget. Plus, 24% of donors with a giving plan say inflation has inspired them to give more. Now imagine, instead, that those are your options for charitable giving: $14.99 per month or $139 per year. "One easy way to save toward charitable giving is to automate a percentage or fixed amount from each paycheck into a savings account that is specifically meant for giving to charity," Kellerman said. Of course, giving to charity isn't a competition, and the organizations or causes to which you donate appreciate gifts of any size.

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