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☆ Can you afford a 'second act' after retirement? Here are some questions to ask yourself
▼ + stars: | 2022-10-15 | by ( Andrew Osterland | ) www.cnbc.com time to read: +3 min

Fg Trade | E+ | Getty ImagesAre you ready for a "second act" in retirement? Although they may long to quit a job and pursue a passion — a "second act" — their financial state will make that difficult. "We need to have a second act," she added. The key to figuring out your second act, Garrett said, is starting with a realistic self-assessment that answers several important questions: • What is your passion? Depending on your financial circumstances, a second act may still have to provide you with substantial income to make sense — in effect, you'll be "unretiring."

☆ The 'bummer' of the $7,500 electric vehicle tax credit: Its full value may be hard to get
▼ + stars: | 2022-10-15 | by ( Greg Iacurci | ) www.cnbc.com time to read: +6 min

But it may be tough for consumers to get the full value of the tax credit — at least initially. The tax credit 'bummer': It's nonrefundableThe legislation, called the Inflation Reduction Act, made the tax credit "nonrefundable." This person wouldn't get the full $7,500 tax credit — they'd be able to claim $5,000 and cut their tax bill to zero. More from Personal Finance:Missed a tax credit from last year? It's unclear which electric vehicles will meet these standards and qualify for a tax credit next year.

☆ Mega Millions jackpot is nearly $500 million—here's how much you'd need to quit your job and retire early
▼ + stars: | 2022-10-14 | by ( Tom Huddleston Jr. | ) www.cnbc.com time to read: +1 min

Winning enough money to never have to work again might be reason enough to shell out a few dollars for lottery tickets — and the Powerball and Mega Millions jackpots are currently worth nearly $1 billion combined. But horror stories of lottery winners who mismanaged their jackpots and ended up losing it all abound. You might rightly wonder: How large of a jackpot would actually be enough to support you for the rest of your life? Pagliarini is a certified financial planner who specializes in advising lottery winners on how to manage their sudden wealth. How big of a jackpot do you need to quit your job and retire early?

☆ I Bonds: Last chance to lock in a nearly 10% return on your savings
▼ + stars: | 2022-10-13 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +3 min

Inflation is soaring, markets are down and savings rates are still very low. Until the end of this month, you have a chance to lock in a 9.62% rate for six months, October through March, on up to $10,000 in savings, if you purchase a Series I savings bond from TreasuryDirect.gov. While interest rates have been rising this year, they are not nearly high enough to beat inflation, which was pacing at 8.2% year over year through September. At best, you might get a high-yield savings rate of just under 3% at some places. If inflation falls as much as the Federal Reserve hopes – its target is 2% – your I bond rate in the coming years will fall too.

☆ Delaying big purchases, reducing debt: 76% of adults are making lifestyle changes to prepare for a potential recession
▼ + stars: | 2022-10-13 | by ( Sarah O'Brien | ) www.cnbc.com time to read: +2 min

However, the job market remains tight. However, that also can translate into job and/or income loss — which generally is the primary pain point for households in a recession. "If we do go into a recession, it doesn't mean it will be bad or last long," said certified financial planner David Mendels, director of planning at Creative Financial Concepts in New York. "And it doesn't mean you're going to lose your job — or if you do, it doesn't mean you won't get another." "Six months to a year's worth of income is what you should have in savings anyway," Mendels said.

☆ A risk management and securities expert says that there has been a proliferation of bad financial advice going viral across social media from so-called 'finfluencers.' He explains how to spot it and s
▼ + stars: | 2022-10-13 | by ( Jennifer Streaks | ) www.businessinsider.com time to read: +8 min

Securities expert Tony Dong discusses common bad advice and misinformation being spread on social media. More often than not, Dong says, the financial advice is being given by a social media influencer without any financial training. Dong has shared a few examples of bad financial advice and how to spot the good finfluencers from the bad. However, some of the financial advice seen on social media could be misleading at best, or even outright false, at worst. And this is especially the case when the financial advice is on social media — it's even more important to verify that the advice is accurate.

☆ How to make inflation-protected bonds work in your portfolio as interest rates rise
▼ + stars: | 2022-10-12 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

It's been a tough year for bonds, including Treasury inflation-protected securities, or TIPS, an inflation-linked asset. Despite recent losses, TIPS offer portfolio diversification amid market uncertainty, experts say. However, bond values and market interest rates move in opposite directions, making TIPS values drop as the Federal Reserve has hiked rates. However, TIPS have outperformed the S&P 500 Index , which is down nearly 24% over the same period. TIPS — particularly TIPS funds with shorter average maturities — have offered a cushion amid double-digit losses for the stock and bond markets, he said.

☆ Powerball's jackpot is now $420 million and Mega Millions' top prize is $494 million. Here's how to handle a huge windfall
▼ + stars: | 2022-10-12 | by ( Sarah O'Brien | Nicole Webb | Senior Vice President Financial Advisor At Wealth Enhancement Group | ) www.cnbc.com time to read: +3 min

Powerball's jackpot is an advertised $420 million for Wednesday night's drawing. Mega Millions' top prize is even more: $494 million for the next pull, set for Friday night. Of course, the chance of a single ticket matching all six numbers drawn in either game is tiny: 1 in 292 million for Powerball and 1 in 302 million for Mega Millions. Nevertheless, it's worth giving thought to what you'd do if you were to beat the odds and land such a windfall. The process of figuring out how to handle a huge amount of money can take several months, Stanzak said.

A high-yield savings account has a higher interest rate than a typical bank savings account. For short-term goals, choose a high-yield savings account, says financial planner Spencer Betts, who sits on the Certified Financial Planner Board of Standards. Here are three situations where Betts says you should definitely keep your cash in a high-yield savings account. Creating a travel budgetBetts advises his clients to use a high-yield savings account to save up for their travels. Paying down debtExperts recommend only keeping three to six months in a high-yield savings account for emergencies.

☆ Young, wealthy investors are flocking to alternative investments, study shows. What to know before adding to your portfolio
▼ + stars: | 2022-10-12 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

Getty ImagesMore advisors are using alternative investmentsAlternative investments typically fall into four categories: hedge funds, private equity, "real assets" such as real estate or commodities and prepackaged investments known as "structured products." Amid double-digit losses in the stock and bond markets this year, there's been an uptick in advisors turning to alternative investments, as planners seek further diversification, according to a recent survey from Cerulli Associates. watch nowScott Bishop, a certified financial planner and executive director of wealth solutions at Houston-based Avidian Wealth Solutions, said some clients use a portion of their portfolios to educate their adult children about investing. 'Know what you own and why you own it'With more interest in alternative investments, experts say it's important to understand the risks — as well as the products themselves — before shifting portfolio allocations. There's a growing range of products falling under the umbrella of alternative investments, and it's critical to understand how an asset could perform through different market conditions, he said.

☆ Citizens is targeting wealthy clients with the launch of a new private bank. Here's how the firm is beefing up its wealth management business.
▼ + stars: | 2022-10-11 | by ( Carter Johnson | Hayley Cuccinello | ) www.businessinsider.com time to read: +7 min

On Tuesday, Citizens said it plans to launch a new private bank by the end of the year. Citizens Private Client will cater to customers with $200,000 more in deposits or investments. Citizens Private Client is intended to retain these customers as their financial needs become more complex. Private banking is a profitable business with relatively stable revenue that is often based on fees. The new private bank program is the latest step in Citizens' strategy to beef up its wealth management offerings.

The strategy, which transfers pre-tax IRA funds to a Roth IRA for future tax-free growth, may pay off when the market drops because you can buy more shares for the same dollar amount. Here are three of the biggest Roth conversion errors — and the best ways to avoid them. You'll need to compare the break-even point of the upfront levy on pre-tax contributions and earnings to future tax-free growth, she said. But even if the tax-free growth won't exceed the upfront costs during your lifetime, a Roth conversion can still be used as a "wealth transfer tool," Collado said. Of course, this assumes there are heirs to enjoy the future tax savings.

☆ The best year-end tax strategies from top-ranked advisors – including a ‘once in multiple-decade' opportunity
▼ + stars: | 2022-10-11 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +3 min

Tetra Images | Tetra images | Getty ImagesAfter several months of soaring inflation, stock market volatility and interest rate hikes, many investors are feeling weary about their finances. But the prolonged stock market downturn offers a silver lining for some investors: opportunities to reduce their tax bill. Here are some of the most popular year-end moves to consider, according to top financial advisors. You can use Roth conversions to transfer pre-tax IRA money to an after-tax Roth IRA, for tax-free future growth. But you'll need to consider how the extra income may affect your taxes, Strain said.

☆ How not to run out of money in retirement
▼ + stars: | 2022-10-10 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +6 min

No one wants to run out of money before they die. That makes it difficult to figure out how much you can take every year from your portfolio and not outlive your money. But there are various rules of thumb to help you gauge a sustainable withdrawal rate. Rules of thumb for sustainable withdrawal ratesOne rule is a “percent of portfolio” withdrawal strategy. A more sustainable withdrawal rate might be 3.3%, according to Morningstar, or between 2.8% and 3.3% according to Vanguard.

☆ Mega Millions jackpot is $410 million. Here are 3 key things to do if you win
▼ + stars: | 2022-10-07 | by ( Sarah O'Brien | ) www.cnbc.com time to read: +1 min

There's a chance that a Mega Millions player is going to wake up Saturday morning with a $410 million windfall in their lap. That's the advertised jackpot amount for the lottery game's next drawing, set for Friday night. It's the third time this year the top prize has crossed the $400 million mark, but the amount remains far below the $1.34 billion jackpot won in July. Powerball's jackpot isn't far behind for its Saturday night drawing: $378 million. While stress from winning a life-changing amount of money may be tricky to avoid, there are three key things you can do right out of the gate to protect your winnings.

☆ REITs are suffering big time as rates rise, but there's opportunity in the carnage
▼ + stars: | 2022-10-07 | by ( Michelle Fox | ) www.cnbc.com time to read: +6 min

Their underperformance this year can be pinned to rising interest rates, since investors who have REITS for their high dividend yields may dump the assets for risk-free Treasurys. While he had reduced his firm's exposure to REITs due to rising interest rate fears, he's now thinking about increasing that exposure. REITs typically make up 5% to 10% of his firm's 10-year plus portfolio portfolio, with the exposure currently at the lower end of that range. In this environment, companies that are less sensitive to rising interest rates should outperform, said Morningstar's Brown. "They should be less sensitive overall to interest rates movements given that most investors are not in hotel names for the dividend," Brown said.

☆ The tax extension deadline is Oct. 17. Watch out for these 3 common errors, advisors warn
▼ + stars: | 2022-10-05 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

If you're looking to meet the Oct. 17 tax extension deadline, make sure you don't skip key forms as you're rushing to the finish line, experts say. Furthermore, you may prevent stalled refunds and future IRS notices by filing an error-free return online with direct deposit. More from Personal Finance:As demand soars for Series I bonds, TreasuryDirect gets a makeoverThe job market is cooling but workers still have power, say economistsThe extended tax deadline is Oct. 17. These may include a W-2 from your job, 1099-NEC forms for contract work and 1099-G for unemployment income. As for write-offs, forms may include 1098 for mortgage interest, 5498 for individual retirement account deposits and 5498-SA for health savings account contributions, among others.

☆ The CNBC FA 100 ranking recognizes advisory firms that help clients navigate their financial lives
▼ + stars: | 2022-10-04 | by ( Kelli Grant | Cfp | ) www.cnbc.com time to read: +4 min

The top-ranked advisors on the CNBC list have an average 30 years in business and collectively have more than $300 billion in assets under management. The CNBC FA 100 recognizes those advisory firms that best help people navigate their financial lives. Working with an advisor has financial benefitsThe pandemic spurred consumer interest in working with a financial advisor. Yet reports indicate that many consumers aren't thinking about an advisor as their first choice for financial help. How, and how much, you pay for financial advice can also vary widely by advisor and the scope of services.

☆ This 'wild card' strategy offers retirees a fix for unpaid quarterly taxes. Here's how to use it
▼ + stars: | 2022-10-03 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

If you're retired and haven't made the necessary quarterly estimated tax payments for 2022, there may still be time to avoid late penalties, experts say. Retirees must send tax payments four times per year if they don't withhold enough from Social Security, pensions, investments or other sources of income. However, for certain retirees, there's a chance to correct missed payments through required minimum distributions, or RMDs, paid annually at age 72. If you estimated you still owed $5,000 in taxes to meet quarterly estimated tax obligations, you could opt to withhold that amount, remit it to the IRS and receive the remaining $70,000 withdrawal. "People don't know this, but you could have a 100% withholding" by sending the entire RMD to the IRS, Collado said.

☆ Jobs, home prices and market volatility are among clients' big concerns right now, advisors say
▼ + stars: | 2022-10-03 | by ( Sarah O'Brien | Nicole Webb | Senior Vice President Financial Advisor At Wealth Enhancement Group | ) www.cnbc.com time to read: +3 min

We spoke with experts from CNBC's Financial Advisor Council to see what they were discussing with their clients. The unemployment rate remains low: The most recent U.S. Bureau of Labor and Statistics data shows an unemployment rate of 3.7% for August, up slightly from 3.5% in July. Memories of the Great Recession lingerYet some clients have memories of the 2008-2009 Great Recession and its accompanying broad-based job losses. In December 2007, ahead of the economic woes brought on by the financial crisis, the U.S. unemployment rate was 5%, according to the BLS. Boneparth said the labor market concerns come primarily from clients who work for startups that are largely tech-related.

"Clearly the SEC is making an example out of Kim Kardashian, who is the biggest influencer perhaps in the world," said Douglas Boneparth, a certified financial planner and the president of Bone Fide Wealth in New York. "We encourage investors to consider an investment's potential risks and opportunities in light of their own financial goals." Gensler also published a video warning investors not to make investment decisions based entirely on the advice of a celebrity or influencer. "Regardless of where we are hearing this advice, we need to remember what works for one person may not be the right advice for you," said Ted Rossman, a senior industry analyst at Bankrate. This used to be a rich person's game, but now everyone can buy stocks or crypto — but that can also lead toward a dangerous situation if you don't have knowledge.

☆ A surprisingly hard part of retirement: Spending what you worked so hard to save
▼ + stars: | 2022-10-03 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +6 min

For some it’s almost physically painful,” said David John, a senior strategic policy advisor at the AARP Public Policy Institute. But unpredictable factors like market performance, life expectancy and health issues make spending your money easier said than done, John said. Changing your mindset is crucialCertified financial planner Kyle Newell reminds clients that the savings they worked so hard to amass is there to help them live well in retirement. And he also advises clients to go easy on themselves and view their first year in retirement as a learning experience when it comes to spending. “You really need to know ‘What are my assets and spending patterns and how do I harmonize the two?’” John said.

☆ Here's how advisors are helping clients slash their 2022 tax bill
▼ + stars: | 2022-10-03 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +3 min

However, lower account balances may provide two opportunities: the chance to buy more shares for the same dollar amount and possible tax savings, depending on how much you transfer. And the tax savings may be compounded for investors during lower earning years, experts say. We regularly discuss Roth conversions for retired clients who haven't started taking Social Security yet because their incomes are temporarily low. "By doing a Roth conversion this year, she'll be able to turn a hard situation into massive tax savings," he said. But depending on your taxable income, you may also benefit from a lesser-known move known as "tax gain harvesting."

☆ Higher-income Medicare beneficiaries may face smaller premium surcharges in 2023. Here are tips for reducing or avoiding those extra amounts
▼ + stars: | 2022-09-29 | by ( Sarah O'Brien | ) www.cnbc.com time to read: +5 min

Shapecharge | E+ | Getty ImagesIf you're a higher-income Medicare beneficiary, you may be paying less in extra premium charges in 2023 than you were this year. The higher your income, the higher the charge. "You pay a little more now to avoid higher tax brackets or IRMAA brackets later on," Meinhart said. RMDs are amounts that must be withdrawn from traditional IRAs, as well as both traditional and Roth 401(k) accounts, once you reach age 72. For investments whose sale you can time, it's also important to remember the benefits of tax-loss harvesting as a way to minimize your taxable income.

Instead, it may be a good time to make adjustments to your portfolio or take some tax losses. For those with a long enough time horizon of five- or 10 years, or more, the sell-off could be an opportunity to buy the right stocks at a discount. Finding shelter For those worried about risk, stability can be found in the Treasury market. You might consider putting some of your holdings in Treasury bills, Treasury notes or Series I savings bonds. You can also get exposure to the Treasury market without owning the actual securities through a mutual fund or exchange-traded fund.

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