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They fired their financial advisor and decided to manage their investments independently. "Investing in index funds had been around for decades but had been cast as a boring, predictable, and lazy approach to investing. While Julien's financial advisor wasn't intentionally malicious, Julien was shocked to learn that his financial advisor wasn't legally obligated to make recommendations in his best interest. That's index funds — kind of boring, but a safer place for your cash over the long run. "When you're investing in index funds, you're betting on the fact that overall a given index will continue to deliver favorable results," the couple writes.

☆ 3 lesser-known ways to trim your 2022 tax bill or boost your refund before year-end
▼ + stars: | 2022-11-25 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

"It's always exciting to reap the rewards of hard work by getting a year-end bonus," said Lisa Greene-Lewis, a CPA and tax expert with TurboTax. However, by receiving the money in January, you may reduce 2022 income without waiting too long for the funds, assuming your company allows it, she said. Prepay future medical expenses for a deductionIt's not easy to claim the medical expense deduction. For 2022, there's a tax break for unreimbursed medical expenses that exceed 7.5% of your adjusted gross income. Of course, you'll need to project your adjusted gross income, total itemized deductions and tally your previous 2022 medical expenses first.

☆ Inflation boosts U.S. household spending by $433 a month, on average, Moody’s finds
▼ + stars: | 2022-11-25 | by ( Greg Iacurci | ) www.cnbc.com time to read: +4 min

Hourly earnings fell 2.8%, on average, in the year to October after accounting for inflation, according to the BLS. Your personal inflation rate depends on the types of goods and services you buy, and other factors such as geography. The Moody's estimate of inflation's dollar impact analyzes October's annual inflation rate and typical household outlays as outlined by the Consumer Expenditure Survey. "There's no one silver bullet," Joseph Bert, a certified financial planner who serves as chairman and CEO of Certified Financial Group, told CNBC. Joseph Bert certified financial planner and chairman of Certified Financial Group

☆ Why charitable individual retirement account transfers should be the 'first source of giving' for certain retirees
▼ + stars: | 2022-11-21 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

If you're retired and giving to charity this holiday season, experts say there's a way to trim your 2022 tax bill while supporting your favorite cause. Despite economic uncertainty, the majority of American adults plan to donate similar amounts this year as they did last year, a recent Edward Jones study found. While tax breaks aren't typically the prime reason for giving, retirees may consider using qualified charitable distributions, or QCDs, which are direct gifts from an individual retirement account to an eligible charity. If you're age 70½ or older, you may donate up to $100,000 per year, and it may count as a required minimum distribution if you transfer the money at age 72. While the maneuver doesn't provide a charitable deduction, you may see other significant tax benefits, financial experts say.

To combat high inflation, the Federal Reserve has raised interest rates this year at the fastest clip in 40 years. But analysts warn that high interest rates and potentially unfavorable terms can trip up shoppers, eroding the hoped-for savings. That’s the highest interest rate since the credit card marketplace began tracking it for store cards in 2018. Using credit cards can help build credit. And with fees and rates for new store cards even higher than the current record levels for traditional credit cards, “many people’s financial margin for error is basically zero,” Schulz says.

☆ 75% of young, wealthy Americans get this 'wrong' about investing, says CFP
▼ + stars: | 2022-11-18 | by ( Ryan Ermey | ) www.cnbc.com time to read: +2 min

Although advisors generally recommend that younger investors hold the vast majority of their investments in stocks, wealthy young people are skeptical that traditional investments can get the job done. In fact, 3 in 4 say it's not possible to achieve above-average returns with stocks and bonds, according to the survey. Young rich investors may 'mistake success with expertise'Why are young, affluent investors pulling away from stocks? It could be that there are newer, fresher ideas out there, says Ken Shepard, head of investments at Bank of America Private Bank. Why stocks are still the best option for young investors

FG Trade/GettyI've always limited myself to one credit card because I'm afraid of falling into debt and lowering my credit score. As someone who is terrified of taking on any credit card debt or doing anything to lower my credit score, I usually store their suggestions in the back of my brain and continue to live my life with just one single credit card. When I was exploring ways I could get access to fast cash, I came across the option of taking a credit card cash advance, which lets you withdraw cash from your credit card account, but not without a fee. A few of my friends have recently found themselves in credit card debt and did balance transfers to a new credit card. Noble says that if you find a credit card that offers 0% on balance transfers, you can move money from a high APR credit card to that other credit card getting 0% on that balance for a limited time.

☆ Credit card balances jump 15%, highest leap in over 20 years, as Americans fall deeper in debt
▼ + stars: | 2022-11-16 | by ( Jessica Dickler | ) www.cnbc.com time to read: +2 min

Not only are credit card balances back to pre-pandemic levels, but consumers are also carrying balances for long periods. Among Americans who carry credit card debt from month to month, 60% have been in credit card debt for at least a year, according to CreditCards.com. As the Federal Reserve raises its target federal funds rate, credit card annual percentage rates are climbing, as well. High inflation and high interest rates are making it harder than ever to pay down credit card debt. As the federal funds rate rises, the prime rate does, as well, and credit card rates follow suit.

☆ Investors bought nearly $7 billion in Series I bonds in October. Here's the best time to cash them in, experts say
▼ + stars: | 2022-11-14 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

If you're one of the masses of new Series I bond owners, there are a few things to weigh before cashing in your assets, experts say. You can't access the money for at least one year and there's a penalty for redeeming I bonds within five years. If you cash in your I bonds before that five-year mark, you'll lose the previous three months of interest. "You should only cash out when you don't like the interest [rate]," he said. Of course, you'll want to consider your goals, risk tolerance and timeline for the money when deciding whether to redeem.

☆ Here are 4 ways to take advantage of your health-care expenses before the end of the year
▼ + stars: | 2022-11-13 | by ( Sarah O'Brien | ) www.cnbc.com time to read: +5 min

Take advantage of reaching your deductibleIf you've met your plan's deductible, you may be able to pay less for qualifying health-care services before the end of the year than you would after the deductible resets Jan. 1. Once you've met your plan's deductible, you may or may not face copays or coinsurance — it depends on your plan's out-of-pocket maximum, which may be higher. See if you can get the medical expense tax deductionThere is a tax deduction for medical expenses, although it comes with parameters that prevent some taxpayers from using it. For starters, you can only deduct health-care expenses that exceed 7.5% of your adjusted gross income. Its gains grow tax-free, and as long as withdrawals are used for qualifying medical expenses, tapping those funds also comes with no tax.

☆ A certified financial planner and author shares his 5 strategies to recession-proof your finances before a downturn hits
▼ + stars: | 2022-11-11 | by ( Jennifer Streaks | ) www.businessinsider.com time to read: +5 min

The time to make your finances more resilient is before the economic downturn starts. He shared with Insider his top strategies for protecting your finances before and during a financial downturn. With high inflation and increasing interest rates, it would be best to put off large expenditures that are not necessary. "Being in a position where you can respond effectively to emergencies or even a job loss makes you better prepared for an economic downturn." Prepare your finances before the economic downturn beginsTaking steps to prepare for the economic downturn before it happens will take away the stress and panic that can arise when experiencing a recession.

☆ Didn't win Powerball's $2 billion jackpot? You may be still be one of the 22 people who won $1 million
▼ + stars: | 2022-11-10 | by ( Kamaron Mcnair | ) www.cnbc.com time to read: +3 min

But matching five of the numbers still means a $1 million payout — and 22 people across 16 different states may have winning tickets, according to Powerball. The automatic 24% federal tax rate would take a $1 million payout down to $760,000, according to Powerball's tax calculator. There are enough horror stories of lottery winners squandering their earnings to make winning a major prize seem like more trouble than it's worth. A smaller prize takes a bit of the pressure off, but anyone receiving such a large cash payout can make mistakes. Common advice for lottery winners says to take the prize as an annuity to extend its life.

☆ Most Americans want to 'age in place' at home. Here's how to plan your support systems
▼ + stars: | 2022-11-09 | by ( Deborah Nason | ) www.cnbc.com time to read: +3 min

Retirement-focused financial advisors can help with both the financial and non-financial preparations to do so. "I saw my clients struggling [with this issue] and I wanted to help them think about the process of aging." Sandy Adams partner with the Center for Financial PlanningWhen should people start this kind of planning? "None of us knows when that event might happen that will cause us to suddenly need help." Black, CFP and partner at Bridgeworth Financial Management in Birmingham, Alabama.

☆ $2 billion Powerball jackpot winner: The 3 smartest moves to make first—and 1 thing to avoid
▼ + stars: | 2022-11-09 | by ( Mike Winters | ) www.cnbc.com time to read: +3 min

In fact, lottery winners are more likely to declare bankruptcy within three to five years than the average American, according to 2011 academic study. Get professional financial adviceHire a financial team consisting of a fiduciary financial planner, estate planning attorney and accountant "at a minimum," says Brady. A fiduciary financial planner can be found on the National Association of Personal Financial Advisors's website, Collado says. These tips can help people find a financial planner that's a good fit for their needs. But everyone's situation is different, which is why consulting a financial planner is a good first step.

Rep. Mike Levin is running against Republican Brian Maryott in California's 49th Congressional District. 2022 General EmbedsCalifornia's 49th Congressional District candidatesLevin is serving his second term in the House and sits on the Committee of Veterans Affairs, where he is vice chairman. This is his third time running for the 49th Congressional District seat. Voting history for California's 49th Congressional DistrictCalifornia's 49th Congressional District is located in northern San Diego County and includes the cities of Oceanside and Encinitas. Republican hybrid PAC Congressional Leadership Fund leads all spenders, with Democratic hybrid PAC House Majority PAC and the Democratic Congressional Campaign Committee so far placing second and third.

☆ Here are the pros and cons of owning cryptocurrency in your 401(k) plan
▼ + stars: | 2022-11-08 | by ( Greg Iacurci | ) www.cnbc.com time to read: +1 min

Cryptocurrency is starting to pop up as an alternative asset class in some 401(k) plans. "Making it this easy and accessible has both pros and cons [for investors]," said Douglas Boneparth, a certified financial planner and founder of Bone Fide Wealth in New York. Fidelity Investments and ForUsAll, which administer workplace retirement plans, began offering cryptocurrency such as bitcoin to 401(k) investors within the past few months. However, that doesn't mean all 401(k) plans will offer crypto. "As volatile as it is, it has the potential for huge upswings," said Ivory Johnson, a CFP and founder of Delancey Wealth Management in Washington, referring to cryptocurrency.

☆ Despite stock market losses, investors may get year-end mutual fund payouts. That can trigger a surprise tax bill.
▼ + stars: | 2022-11-07 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

After a rough year for the stock market, investors may not expect to receive a surprise tax bill from year-end actively managed mutual fund payouts, experts say. When a fund manager sells underlying assets at a profit without losses to offset it, those gains are passed along to investors. And some fund managers sold profitable underlying assets as money has continued shifting from active to passively managed funds. As a result, some investors may see year-end mutual fund distributions, despite stock market losses in 2022, the report found. Lucas said mutual fund payouts often "slip under the radar" and need to be included as part of an investor's year-end tax planning.

☆ Saving for a short-term goal? Here's where to put your money
▼ + stars: | 2022-11-07 | by ( Ryan Ermey | ) www.cnbc.com time to read: +2 min

If you're investing for a long-term goal, such as retirement, this thinking is sound. Compared with other types of investments, stocks offer a high potential return on your money. How to invest for short-term goalsSay you want to put a down payment on a house sometime over the next three years. Theoretically, you could boost the amount you're stashing away if you put the money in a stock market that shoots up. That means that your shortest-term money likely belongs in cash — not even in a relatively conservative asset, such as bonds, which can still lose money.

☆ 6 health insurance terms you need to know as open enrollment begins
▼ + stars: | 2022-11-06 | by ( Greg Iacurci | ) www.cnbc.com time to read: +9 min

PremiumsThe premium is the sum you pay an insurer each month to participate in the health plan. It's perhaps the most transparent and easy-to-understand cost component of a health plan — the equivalent of a sticker price. Eighty-eight percent of workers covered by a health plan have a deductible in 2022, according to KFF. For example, would you struggle to pay a $1,000 medical bill if you require health care? If so, a health plan with a larger monthly premium and a smaller deductible may be your best bet, Sun said.

☆ 55% of Americans are behind on saving for retirement—and that's OK
▼ + stars: | 2022-11-04 | by ( Mike Winters | ) www.cnbc.com time to read: +5 min

Around 55% of Americans say they're behind on saving for retirement, a recent Bankrate survey found. She's had clients who didn't start seriously saving until their 40s who are now on track to comfortably retire. How to get your savings back on trackIf you want to catch up on saving for retirement, you'll first need a well-defined goal. To get a basic idea of how much you need, a retirement savings calculator is a good place to start. Since life is full of unexpected expenses, you can never have too much money put away for retirement, she says.

☆ This individual retirement account deduction mistake may derail your tax break
▼ + stars: | 2022-11-04 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

As the year-end approaches, you may be looking for ways to lower your 2022 tax bill — and certain tax-saving moves have rules you must follow in order to qualify. One option, adding money to your pretax individual retirement account, may be attractive if you make too much for Roth IRA deposits, and want to lower your adjusted gross income. For 2022, you can save up to $6,000 or $7,000 if you're 50 or older, as long as you've made at least that much from a job or self-employment. "Anyone can contribute to a traditional IRA — you, me, Jeff Bezos," said certified financial planner Howard Pressman, partner at Egan, Berger & Weiner in Vienna, Virginia. But the ability to write off IRA contributions depends on two factors: participation in workplace retirement plans and income, he said.

☆ Here’s how to adjust your portfolio as the Fed hikes interest rates again
▼ + stars: | 2022-11-02 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

After another 0.75 percentage interest rate hike from the Federal Reserve, financial experts have tips for investors amid volatility in the stock and bond markets. Continuing to fight inflation, the central bank on Wednesday announced its fourth consecutive three-quarters of a percentage point interest rate increase. More from Personal Finance:Series I bond to pay 6.89% annual rate for the next six monthsHere's what the inverted yield curve means for your portfolioEducation Dept. While some experts believe certain yield curve inversions may forecast a future recession, financial advisors say the economic conditions may also provide timely options for investors. "There are absolutely opportunities present with an inverted yield curve," said Andrew Fincher, a certified financial planner at VLP Financial Advisors in Vienna, Virginia.

☆ Democratic Rep. Mike Levin faces off against Republican Brian Maryott in California's 49th Congressional District election
▼ + stars: | 2022-11-02 | by ( Hanna Kang | ) www.businessinsider.com time to read: +4 min

Rep. Mike Levin is running against Republican Brian Maryott in California's 49th Congressional District. California's 49th Congressional District candidatesLevin is serving his second term in the House and sits on the Committee of Veterans Affairs, where he is vice chairman. This is his third time running for the 49th Congressional District seat. Voting history for California's 49th Congressional DistrictCalifornia's 49th Congressional District is located in northern San Diego County and includes the cities of Oceanside and Encinitas. Republican hybrid PAC Congressional Leadership Fund leads all spenders, with Democratic hybrid PAC House Majority PAC and the Democratic Congressional Campaign Committee so far placing second and third.

☆ What rising interest rates mean for your credit, loans, savings and more
▼ + stars: | 2022-11-02 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +11 min

“Interest rates have increased at the fastest pace in 40 years,” said Greg McBride, chief financial analyst at Bankrate.com. They’re offering far higher rates – with some topping 3% currently – and have been increasing them as benchmark rates go higher. At the most recent auction in October, for instance, the 5-year TIPS had an interest rate of 1.625%. Home loans: Lock in fixed rates nowMortgage rates have been rising over the past year, jumping more than three percentage points. That said, “don’t jump into a large purchase that isn’t right for you just because interest rates might go up.

☆ 'Nearly risk-free' I bonds now pay 6.89%—here's why they 'could still be a good investment'
▼ + stars: | 2022-11-01 | by ( Ryan Ermey | ) www.cnbc.com time to read: +1 min

The U.S. Department of the Treasury on Tuesday announced Series I savings bonds — also known simply as I bonds — will pay a 6.89% annual interest rate through April 2023, down from the 9.62% the paid to those who purchased from May through the end of October. It's the third-highest rate since I bonds debuted in 1998, but that may feel like a bit of a consolation prize for those who attempted to lock in the 9.62% rate last-minute. Investor traffic flooded and ultimately crashed TreasuryDirect — the site that exclusively sells these bonds — in the days leading up to the interest rate change, which occurs every six months. "[I bonds] could still be a good investment for the short- to medium-term," he says. "Even though most people expect inflation to come down, they still offer attractive yield given their nearly risk-free nature."

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