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☆ '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."

☆ Politics and your portfolio: Midterm elections create uncertainty for markets
▼ + stars: | 2022-10-31 | by ( Stephanie Dhue | ) www.cnbc.com time to read: +3 min

Voters file down the hall as early voting begins for the midterm elections at the Citizens Service Center in Columbus, Georgia, on Oct. 17, 2022. So with the midterm elections now a week away but the outcome still not in focus, does it make sense to make those adjustments now? Financial advisors say it's best to adjust your portfolio based on your financial goals and not on the outcome of any event. The market has a 'very distinct' midterms patternHistorically, stocks tend to do better after midterm elections. In 17 of the 19 midterm elections held since 1946, stocks performed better in the six months after the election than they did in the six months prior.

☆ 'Don't end up in a lopsided portfolio.' Here's what advisors say to do if you’re worried about tech exposure
▼ + stars: | 2022-10-31 | by ( Lorie Konish | ) www.cnbc.com time to read: +2 min

Investors who are worried about the tech sector can take comfort in the fact the current shift is not the same as the bust of 2000, according to Raymond James chief investment officer Larry Adam. watch nowThe biggest names in the pure tech sector — Apple , Microsoft and Visa — make up more than 45% of earnings in that space, according to Adam. Alphabet and Meta , which are technically in communication services, represent 53% of the earnings in that sector. "It's always about making sure you don't end up in a lopsided portfolio," Viktorin said. For example, someone who works in tech is already taking on substantial risk outside of their portfolio because their income is dependent on the sector, Viktorin said.

☆ The fear of missing out can be a killer for investors. Here's how top-ranked financial advisors keep it at bay
▼ + stars: | 2022-10-30 | by ( Greg Iacurci | ) www.cnbc.com time to read: +3 min

Michael H | Digitalvision | Getty ImagesThe fear of missing out, or FOMO, can be a powerful psychological force — and it may lead unwary investors to lose bundles of money, according to financial advisors. Financial advisor Josh Brown uses the term "animal spirits" to describe the concept of investors allowing their emotions to guide them. Problem is: Investors often only hear about the big winners, not the duds, advisors and experts said. Various hype-men and -women and social media communities helped nudge investors to buy in last year. watch nowHow advisors overcome investors' FOMOPlaying off that future regret is how top financial advisors try to dissuade investors from succumbing to FOMO.

☆ 'Your loved ones will already be in a state of trauma.' The ramifications of dying without a will
▼ + stars: | 2022-10-29 | by ( Deborah Nason | ) www.cnbc.com time to read: +1 min

Burton | The Image Bank | Getty ImagesWhat happens if a loved one dies without a will? Millions of us are bound to find out, as two-thirds of American adults have no will, according to a recent Caring.com study. "But while the court distributes the property, it is ultimately up to the survivors to claim their rights to it," he said. For an intestate situation, the probate court appoints an executor for the estate who will follow a process according to the laws of the state where the deceased lived. "Generally speaking, this process, as a first step, involves identifying the kinship, aka bloodline, of the deceased," Ponnapalli said.

☆ Inflation bonds have surged in popularity amid a flight to safety. Why they may also be a good opportunity for younger investors
▼ + stars: | 2022-10-28 | by ( Samantha Subin | ) www.cnbc.com time to read: +4 min

Investments in the U.S. Treasury's Series I savings bonds have surged this year as prices climbed and so far show few signs of easing. I bonds offer holders a standard fixed rate together with a variable rate that shifts every six months, the latter depending on the latest consumer price index numbers. Even putting a few thousand dollars in the bond could offer a decent cash cushion for times ahead, she said. While a safe haven for cash, I bonds are not an alternative to investing, McLoughlin said. Despite the market's dismal performance this year, equities offer much better returns for those with longer time horizons, she said.

☆ 54% of adults say they have stopped or reduced their retirement savings contributions due to inflation, study shows
▼ + stars: | 2022-10-28 | by ( Sarah O'Brien | ) www.cnbc.com time to read: +1 min

"Maybe you know you're getting a raise and you know when it's coming, and so you say that money will go into your retirement account." "You'll have to figure out how to reduce your spending to [increase] your retirement savings." If you examine how you spend your money, you may discover that there are expenses you could cut back on. "Wherever you can make costs a little lower, little by little they add up," he said. Dipping into retirement savings may mean a penalty

☆ Demand for Series I bonds crashes TreasuryDirect site ahead of key deadline as investors try to secure 9.62% rate
▼ + stars: | 2022-10-28 | by ( Greg Iacurci | ) www.cnbc.com time to read: +6 min

Shapecharge | E+ | Getty ImagesInvestors crashed the Treasury Department website for Series I bonds on Friday as they clamored to lock in a record-high interest rate before a key deadline. Investors must buy I bonds and receive a confirmation email by Oct. 28 to lock in the 9.62% rate, according to TreasuryDirect. What a TreasuryDirect outage means for investorsAn outage on TreasuryDirect.gov — where investors purchase I bonds — may mean they're unable to complete an I bond purchase by Friday's deadline to secure the 9.62% rate. The Treasury Department is not planning to extend the deadline, a Treasury Department spokesperson said Friday. The site continues to "see customers successfully create accounts and purchase bonds at record levels," the spokesperson added.

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☆ Tomorrow is your last chance to earn a 'nearly risk-free' 9.6% return on your money
▼ + stars: | 2022-10-27 | by ( Ryan Ermey | ) www.cnbc.com time to read: +1 min

If you've been looking for an investment to keep up with inflation, everyone from your financial planner to your dad to Suze Orman has likely recommended looking into Series-I savings bonds, also known as "I bonds." These inflation-adjusted bonds backed by the U.S. government pay a fixed rate throughout the life of the bond, plus an inflation rate pegged to changes in the consumer price index. Given how high inflation has been, these bonds currently offer a record 9.62% annual interest rate. If you haven't bought in already, rushing to get it done by tomorrow could be worth it, says Naveen Neerukonda, a certified financial planner with PVA Financial in Chicago, Illinois. If you already have certain bases covered financially, "this is a great opportunity, given the nearly risk-free nature of I bonds," he says.

☆ ‘Ugly times’ are pushing record annuity sales. Here's what you need to know before you buy
▼ + stars: | 2022-10-26 | by ( Greg Iacurci | ) www.cnbc.com time to read: +5 min

How to know if an annuity makes sense for youFinancial advisors often recommend using a different flavor of annuity when building financial plans: a single-premium immediate annuity or deferred-income annuity. Payouts from immediate annuities start right away, while those from deferred-income annuities starts later, perhaps in a retiree's 70s or 80s. Single-premium immediate annuities and deferred-income annuities are relatively simple to understand compared with other categories, advisors said. By contrast, consumers can't get back principal when they buy single-premium immediate annuities or deferred-income annuities. This is one likely reason consumers don't buy them as readily, despite their income efficiency, Giesing said.

☆ Here are tips for buying a home in a cooling market, according to top-ranked financial advisors
▼ + stars: | 2022-10-26 | by ( Sarah O'Brien | ) www.cnbc.com time to read: +5 min

Add in higher mortgage rates, elevated home prices and unrelenting high inflation — i.e., the current home-buying environment — and it may feel decidedly unattainable. This means having a good handle on your current financial situation. While the purchase of a house is a single transaction, affordability is largely about monthly mortgage payments. "Look at your current credit score and see if you need to make improvements," Higgins said. Look at your current credit score and see if you need to make improvements.

Ascentxmedia | E+ | Getty ImagesAdd this to the list of challenging questions for retirement savers: Should I contribute to a pre-tax or Roth account? The key difference between a pre-tax and Roth accountThe tax code offers a financial benefit to Americans who contribute to a qualified retirement account like a 401(k) plan or individual retirement account. The core difference between a pre-tax and Roth account is when savers reap those benefits — and when their taxes come due. In a pre-tax account, savers get an upfront tax benefit. The opposite is true of a Roth account: Savers pay tax upfront when they contribute money, but don't pay income tax on withdrawals in retirement.

☆ Your last chance to secure 9.62% annual interest for Series I bonds is Oct. 28
▼ + stars: | 2022-10-25 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

Insta_photos | Istock | Getty ImagesHow to estimate I bond rates for one yearThere are two parts to I bond rates: a fixed rate, which stays the same after purchase, and a variable rate, which shifts twice per year based on inflation. It's nice to know what interest rates you will get when you're committing to a 12-month lockup. Jeremy Keil Financial advisor at Keil Financial Partners"A short-term investor — somebody just wanting to put away cash — should definitely buy in October," he said. The downsides of buying I bondsWhile roughly knowing I bond rates for one year may be appealing, there are a few things to consider before buying, experts say. "The biggest downside is you are locked in for 12 months," Keil said.

☆ If you're not planning to have kids, you can rethink 'the whole foundation' of your financial plan
▼ + stars: | 2022-10-25 | by ( Ryan Ermey | ) www.cnbc.com time to read: +6 min

"Most, if not all, financial rules of thumb assume you have kids," says Jay Zigmont, a certified financial planner and author of "Portraits of Childfree Wealth." Take the possibility of kids out of the equation, and "the whole foundation of your financial plan changes." If you're still aiming for traditional financial landmarks, such as retiring at 65, you may be following someone else's financial "life script" that doesn't match up with your goals, Zigmont says. Here are three strategies Zigmont, who specializes in advising childfree clients, says childfree people can employ, even though they deviate from the standard advice. And to be clear, just because you're not spending your money on children doesn't mean it's OK to abandon core financial principles altogether.

☆ Here's why stock investors need to pay careful attention to earnings season 'report cards'
▼ + stars: | 2022-10-24 | by ( Greg Iacurci | ) www.cnbc.com time to read: +4 min

Spencer Platt | Getty Images News | Getty ImagesIt's a big week for stock investors. Think of earnings as a company 'report card'Earnings is a synonym for "profits." Think of the disclosures like a company "report card," said John Butters, senior earnings analyst at FactSet. The metric measures S&P 500 company stock prices in the two days before and after an earnings report. What companies report now is sort of in the rearview mirror.

☆ Rates on I bonds are expected to drop in November. Why they're still offering the best risk-free return
▼ + stars: | 2022-10-21 | by ( Michelle Fox | ) www.cnbc.com time to read: +6 min

If you buy an I bond before Oct. 28, you will lock in the 9.62% interest rate for six months. How to buy I bonds I bonds can only be bought on the government website, TreasuryDirect.com , which has been recently updated . "If you are going to need it in the next year or two, that is a great interest rate you can make." However, a diversified bond portfolio will likely provide the same results over the long term, she added. Another thing to think about is how much you are holding in I bonds, McLoughlin said.

☆ How to Find a Financial Advisor
▼ + stars: | 2022-10-21 | 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. Advisor fees and minimumsHow a financial advisor gets paid can be as important as how much you pay them because you want an advisor whose paramount consideration is your best interest, not their own, and whether or not that is the case is largely determined by how you pay them. 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.

☆ What a record 8.7% Social Security cost-of-living adjustment could mean for taxes on benefits
▼ + stars: | 2022-10-20 | by ( Lorie Konish | ) www.cnbc.com time to read: +5 min

Halfpoint | Istock | Getty ImagesRetirees who rely on Social Security benefits for income will get some relief from record high inflation when an 8.7% cost-of-living adjustment kicks in next year. How Social Security benefits are taxedSocial Security benefits are taxed based on a formula known as "combined" or "provisional" income. That is calculated by taking your adjusted gross income and adding non-taxable interest and half of your Social Security benefits. Taxes on Social Security benefits apply to single taxpayers starting with $25,000 in combined income, and married taxpayers starting with $32,000 in combined income. watch nowFor individuals with more than $34,000 in combined income and couples with over $44,000, up to 85% of their Social Security benefits may be taxed.

☆ Bob Pisani: How my obsession with a Black Sabbath poster showed how irrational we can be when investing
▼ + stars: | 2022-10-20 | by ( Bob Pisani | ) www.cnbc.com time to read: +8 min

If you think knowing something about behavioral economics prevents you from doing stupid things, let me tell you about the Black Sabbath poster I bought. How I almost lost my mind bidding on a stupid Black Sabbath poster One day I was monitoring an online auction of rock posters. A 1976 Black Sabbath poster came up for sale. It's not like Black Sabbath has an intense cult of collectors, like Zeppelin or the Velvet Underground. With that damn Black Sabbath poster, I violated all the rules.

☆ The typical U.S. household is spending $445 more a month due to inflation. Here's how to reduce the bite
▼ + stars: | 2022-10-19 | by ( Greg Iacurci | ) www.cnbc.com time to read: +3 min

Hourly earnings fell 3%, on average, in the year to September after accounting for inflation, according to the BLS. The inflation impact on households' wallets isn't uniform, though. Your personal inflation rate depends on the types of goods and services you buy, and other factors like geography. The Moody's estimate of inflation's dollar impact analyzes September's annual inflation rate and typical household outlays as outlined by the Consumer Expenditure Survey. They can also reassess monthly subscriptions — to clothing and streaming services, for example — which can often serve as "money drains," Maloon said.

☆ How to get the 'best of both worlds' for Series I bond interest rates before November
▼ + stars: | 2022-10-18 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +3 min

RyanJLane | E+ | Getty ImagesAfter a difficult year for the stock market, investors have poured money into Series I bonds, a nearly risk-free and inflation-protected asset that's paying a record 9.62% annual interest rate through October. While I bond rates shift twice yearly based on inflation, you can still lock in 9.62% annual interest for six months — as long as you complete the purchase by Oct. 28. You can estimate I bond rates for one yearThere are two parts to I bond rates: a fixed rate, which stays the same after purchase, and a variable rate, which shifts twice per year based on inflation. It's nice to know what interest rates you will get when you're committing to a 12-month lockup. "The biggest downside is you are locked in for 12 months," Keil said.

☆ This is the worst year for stock and bond investors since 1969—here's what to do with your money
▼ + stars: | 2022-10-18 | by ( Ryan Ermey | ) www.cnbc.com time to read: +3 min

And for investors who hold both stocks and bonds, that's not how a mixed portfolio is supposed to work. Because bond prices and interest rates move in opposite directions, the Fed's moves have been eroding the value of bond portfolios. Bond investors: 'You have a lot more options'It's impossible to know how the economy or monetary policy will shake out in the short term. Should inflation continue to run hot, the Fed could keep hiking interest rates, in turn pushing down bond prices. According to many experts, who believe much of that carnage is behind us, now may represent a compelling opportunity for bond investors, says Laipply.

☆ Which Charitable Contributions Are Tax Deductible?
▼ + stars: | 2022-10-18 | by ( ) www.wsj.com time to read: +11 min

As a result, the number of people who can claim charitable donations fell from about 1 in 3 before the law to 1 in 10 today. The upshot is that charitable donations are still a valuable potential deduction—but only for the right kind of taxpayer. Who qualifies for charitable tax deductionsEvery taxpayer has a choice between itemizing their deductions and claiming the standard deduction. Note that for tax years 2020 and 2021, the IRS let people claim a $300 charitable deduction even if they didn’t itemize, but that allowance has expiredWhat kind of giving qualifies for the charitable tax deductionContributions to officially registered charities, which are designated with a special tax code like 501(c) (3), may be deductible on your federal tax return (and possibly your state tax return). But in typical IRS fashion, there are special rules that determine whether and how much of your charitable donations are deductible.

☆ Strategies to navigate the $68 trillion 'great wealth transfer,' according to top-ranked advisors
▼ + stars: | 2022-10-17 | by ( Jessica Dickler | ) www.cnbc.com time to read: +5 min

At the same time, the greatest generational wealth transfer in history is underway, with baby boomers set to pass to their children more than $68 trillion. Here are four key considerations to help families prepare, according to CNBC's top-ranked financial advisors. Family legacyThe first hurdle is often bringing generations together to discuss their family legacy, advisors say. "Parents have gotten used to managing their wealth over 20, 30 or 40 years; kids have less than a year." "Financial literacy is a huge part of this wealth transfer," Mirsberger also added.

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