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Andrew Harnik | Getty ImagesPresident-elect Donald Trump's return to the White House is poised to have big impacts on consumer health care. CMS, in turn, administers the Affordable Care Act marketplace and the Children's Health Insurance Program (CHIP), among other endeavors. A spokesperson for Trump's transition team did not respond to a request from CNBC for comment about the President-elect's health policy plans. Still, it's a 'big' gamble to forgo health insurance Around 3.8 million people will lose their health insurance if the subsidies expire, the Congressional Budget Office estimates. Short-term health insurance plans offer coverage for limited amounts of time, and typically on fewer medical services than comprehensive coverage.
Persons: Donald Trump, Andrew Harnik, Donald Trump's, Michael Sparer, Sparer, Trump, Robert F, Kennedy Jr, Kennedy, who's, Mario Tama, Cynthia Cox, I'd, Cox, Sabrina Corlette, Georgetown University's, Corlette, Carolyn McClanahan, Larry Levitt, Levitt, enrollee, they're, Yasin Ozturk, Biden, It's, Organizations: Base Andrews, Getty, Affordable, Trump, Republican, Columbia University, of Health Policy, Management, of Health, Human Services, Medicare, Services, CMS, Children's Health Insurance, Washington Post, The Washington Post, CNBC, Providence St, Mary Medical Center, Finance, American, ACA, Cox, Congressional, Office, Republicans, Center, Health, Georgetown, Georgetown University's McCourt School of Public, Planning Partners, Medicaid, Social Security, Maskot, of Columbia, U.S, Capitol, Washington , D.C, Anadolu Agency, GOP, Corlette, pharma, Centers Locations: Base Andrews , Maryland, U.S, Duluth, Apple Valley , California, Jacksonville , Florida, Washington ,
Yet, Wall Street's reaction to the election outcome does not reflect how many Americans feel about the state of their personal finances, some financial experts say. Feelings, however, should not overshadow anyone's focus when assessing the potential impact of a second Trump presidency when it comes to finances, advisors say. "Stick to your long-term financial plan, adjusting only when your personal circumstances or goals change." However, improving your personal economy is possible by taking better control of your money, experts say. Increase savings goals Boost savings goals in accounts that also offer tax breaks.
Persons: Sharon Epperson, Stocks, Donald Trump, Rianka Dorsainvil, Dorsainvil, Roth, Roth IRAs, you've, Lee Baker, Joe Biden Organizations: Federal Reserve, Dow Jones, Nasdaq, Trump, YGC, CNBC, Financial, U.S, Reuters Locations: Atlanta
Retirees' debt was rising before the pandemicRising debt levels were a problem for older Americans even before pandemic-era inflation. The typical family with heads age 75 and older had $1,700 of credit card debt in 2022, EBRI said in the August report. Those with heads age 65 to 74 had $3,500 of credit card debt, it said. Meanwhile, any spending cuts should be applied to reduce credit card debt, McClanahan explains. Boost income Retirees can also consider going back to work at least part time to earn more income, McClanahan said.
Persons: Bridget Bearden, Bearden, it's, EBRI, Louis, Carolyn McClanahan, She's, McClanahan, Cardholders, Cook, Ted Jenkin, Winnie Sun Organizations: Research Institute, Social Security, Senior Citizens League, Reserve Bank of St, Federal Reserve, U.S . Federal Reserve, Federal Reserve Bank of St, Planning Partners, CNBC's, CNBC, Facebook, Craigslist, Sun Group Wealth Partners Locations: Louis, Jacksonville , Florida, Irvine , California
Bernd Vogel | Stone | Getty ImagesBrad Klontz was drawn to financial psychology after the tech bubble burst in the early 2000s. GI: Does this suggest that people, no matter their socioeconomic circumstances, can lift themselves out of poverty if they adopt a rich mindset? A rich mindset puts an emphasis on owning their time versus owning a bunch of stuff. Bradley T. Klontz, Psy.D., CFP, is an expert in financial psychology, behavioral finance and financial planning. You can work at McDonald's your entire life and be a millionaire if you have that mindset.
Persons: Bernd Vogel, Stone, Brad Klontz, Klontz, Adrian Brambila —, Greg Iacurci, That's, I've, It's, I'm, They're, they're, Bradley T, Bradley Organizations: CNBC, Financial Wellness, IRA, BK Locations: McDonald's
Early in-person voting for the 2024 US presidential election began in Virginia, South Dakota and Minnesota. - | Afp | Getty ImagesMany investors worry their investments may be affected by the outcome of the U.S. presidential election. Forward four-year returns were positive for Democrats in 11 out of 12 terms, compared to Republicans who had positive returns in nine out of 12. watch nowHowever, the presidential contest could usher in short-term volatility, particularly if a winner is not declared right away. Yet even with deregulation, record production and higher oil prices, the energy sector was down 8.4% during Trump's presidential term, according to Adam's research.
Persons: Mark Motley, Jimmy Carter, George W . Bush, Motley, Joseph Veranth, Veranth, Larry Adam, Raymond James . Long, Adam, Donald Trump Organizations: Bozeman Government, Afp, Getty, U.S, Morningstar, Democrats, Foster & Motley, Dana Investment, CNBC, Locations: Arlington , Virginia, Virginia , South Dakota, Minnesota, Cincinnati, Waukesha , Wisconsin, U.S
Only 22% of parents are "completely confident" in their ability to teach their children the basics of investing, the survey found, and they're looking to their kids' schools for help. All else being equal, 74% of parents said they would move their children to a different school if it offered financial education and investment courses. SIFMA with Wakefield Research polled 1,000 U.S. parents of students in grades K-12. Getting your child hands-on experience with investing is also a smart strategy, advisors say. Hands-on experience also gives children a chance to discuss with parents what investing means to them, she said.
Persons: , Melanie Mortimer, Lance Robert, Stacy Francis, Francis, Catherine Valega, Roth IRAs, Valega Organizations: SIFMA Foundation, Wakefield Research, Francis Financial, CNBC, Getty Images, Green Bee Advisory Locations: Los Angeles, New York, Getty Images Boston
Blueflames | Getty ImagesNecessities are 'swallowing up' incomeThe share of households living paycheck to paycheck has grown since 2019, according to the firm. Around 35% of households earning less than $50,000 per year are living paycheck to paycheck, up from 32% in 2019. Higher-income households also report struggling, with around 20% of households with more than $150,000 living paycheck to paycheck, the research found. Inflation is a top issue with voters as the November election approaches, according to an October CNBC All-America Economic Survey. People who rent are among those feeling the biggest impact of inflation, Traphagen said.
Persons: It's, David Tinsley, Tinsley, Jamie Grill, Peter Traphagen, Traphagen, Nick Roth, Roth Organizations: CNBC, America Economic Survey, Bank of America Institute, Labor Department, Wealth, Foster & Motley Locations: U.S, Oradell , New Jersey, Cincinnati
In the second quarter of 2024, U.S. homeowners with mortgages had a net homeowner equity of over $17.6 trillion, according to CoreLogic. It's also generally considered a path to build wealth and increase your net worth , financial experts say. It's a way to increase your net worth over time. Homeowners can start to see their equity and net worth increase within five to 10 years. Homeownership allows you to increase your net worth because you can build equity through mortgage payments, which increases your asset value over time as the property appreciates in value, experts say.
Persons: It's, Steven LaRosa, Freddie Mac Organizations: Edgemoor Investment, Urban Institute Locations: Bethesda , Maryland
Total investments in 529s hit $508 billionFinancial experts and plan investors agree that 529 plans are a smart choice for many. And yet, in previous years, data shows that regular contributions to a 529 college savings plan often took a back seat to paying more pressing bills or other priorities. Fstop123 | E+ | Getty ImagesBut this year, in part because of the new changes, more parents are utilizing a 529 college savings plan, with most making recurring monthly and quarterly contributions. In 2024, total investments in 529s jumped to $508 billion in June, up nearly 13% from $450.5 billion the year before, according to data from the College Savings Plans Network, a network of state-administered college savings programs. How much you can contribute to a 529 plan
Persons: Roth, David Nienaber, Martha Kortiak Mert, accountholders, Fstop123 Organizations: College, Foster, Motley Wealth Management, Saving, College Savings Plans Network Locations: Miami
Family Matters: Successful Estate Planning
  + stars: | 2024-10-24 | by ( Tyler Mathisen | ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailFamily Matters: Successful Estate PlanningThe Great Wealth Transfer is here: over the next 20 years, an estimated $84 trillion is set to be passed down from older relatives to their Gen X and millennial heirs. However, finances and estate plans are often difficult topics for families to discuss. Stacy Francis, Francis Financial President & CEO and CNBC Financial Advisor Council Member talks about developing an effective plan and how you can start facilitating these conversations with loved ones.
Persons: Stacy Francis, Francis Organizations: Francis Financial, CNBC Financial
However, many are renting in their retirement years. Most older adults, those at least 65 years old, own their homes, according to the Joint Center for Housing Studies at Harvard University. Renting in retirement years can be a positive because older people can avoid costly maintenance associated with the upkeep of a home. "Renting often offers more amenities, less maintenance, more accessibility," said Jennifer Molinsky, director of the housing an aging society program at the Joint Center for Housing Studies. And unlike younger renters, adult renters in retirement years could be especially vulnerable to rent hikes because they are on fixed income, experts say.
Persons: Jennifer Molinsky, Roth, Lazetta Rainey Braxton, Braxton Organizations: Joint Center for Housing Studies, Harvard University, Finance, CNBC Locations: U.S
Terry Vine | Getty ImagesHow dorm insurance compares to other optionsColleges and universities will often partner with different insurers to offer dorm insurance, Worters said. If parents decide to take on a dorm insurance policy, it would be billed separately from the room and board, said Worters. watch nowWhether you sign up for dorm insurance or not, your child's dorm possessions will likely be covered under your home insurance plan, according to experts. But keep in mind that dorm-specific insurance policies tend to have lower deductibles than home insurance policies, Worters said. The home insurance policy will often stretch over, so long as the kid lives in a dorm, she said.
Persons: Terry Vine, Worters, McClanahan Organizations: CNBC, Council, National Association of Insurance
Assets in money market funds hit $6.3 trillion the week that ended Wednesday, another record high, according to the Investment Company Institute . The annualized 7-day yield on the Crane 100 list of the 100 largest taxable money funds is currently 5.08%. History shows that when investors do move out of money market funds, they move into fixed income over equities, he said. Institutional investors will also continue to move into money market funds as the Fed cuts rates because any cash they have in direct money market investments, such as Treasury bills, will be hit by rate cuts quicker than money market funds, explained Peter Crane, founder of Crane Data, a firm that tracks the industry. Once you have the appropriate cash needs set aside, consider moving any excess funds into fixed income, Jenkin said.
Persons: Mark Cabana, Peter Crane, Crane, Ted Jenkin, Jenkin, Leslie Falconio, Fannie Mae, Freddie Mac, Ginnie Mae, Falconio Organizations: Investment Company Institute, Bank of America, Federal Reserve, Institutional, Crane, CNBC, American Express, Bread Financial, UBS, U.S . Locations: UBS Americas
Roth contributions don't get the same upfront tax break: Investors fund Roth IRAs with after-tax money, but generally don't pay income taxes on earnings or withdrawals in retirement. The 'only reason' to save in a nondeductible IRALordhenrivoton | E+ | Getty ImagesHigh earners can contribute to a so-called nondeductible IRA, however. The ability to use the backdoor Roth IRA is a major benefit of these accounts, tax experts said. watch now"The only reason you'd do [a nondeductible IRA] is if the intention was to do a backdoor Roth," Slott said. "All high wage earners should consider looking at both a backdoor Roth IRA and a mega backdoor Roth IRA if they can't set up a Roth IRA," said Ted Jenkin, a certified financial planner and founder of oXYGen Financial, based in Atlanta.
Persons: Thomas Barwick, Roth, Slott, Ted Jenkin, He's Organizations: Investors, Roth IRA, IRA, CNBC, Taxpayers, IRS, Arnold, Mote Wealth Management, Medicare, nondeductible Locations: deductibility, Atlanta, Hiawatha , Iowa
Last week, three online banks cut their 1-year CD rates, according to BTIG. Meanwhile, Synchrony slashed its online savings rate by 10 basis points to 4.65%. "We believe online banks are intentionally trying to shift customers toward savings rates, which are floating, over term rates," he said. The annualized seven-day yield on the Crane 100 list of the 100 largest taxable money funds is 5.11%, as of Monday. With both high-yield savings and money market funds, the rates can fluctuate.
Persons: Marcus, Goldman Sachs, Sallie Mae, Synchrony, Jerome Powell, Vincent Caintic, Christine Benz, Benz, Winnie Sun, Cathy Curtis, Curtis Organizations: Federal, Morningstar, Federal Deposit Insurance Corp, Sun, Wealth Partners, CNBC, Money, Curtis Financial, Treasury Locations: Capital
Officially, the National Bureau of Economic Research defines a recession as "a significant decline in economic activity that is spread across the economy and lasts more than a few months." The last time that happened was early in 2020, when the economy came to an abrupt halt. Economists have wrestled with the growing disconnect between how the economy is doing and how people feel about their financial standing. We're in a 'vibecession'We're in a "vibecession," Joyce Chang, JPMorgan's chair of global research, said at the CNBC Financial Advisor Summit in May. "Everything looks great but when you look beneath the surface, the disparity between the wealthy and nonwealthy is widening dramatically."
Persons: Gene Goldman, Vishal Kapoor, Joyce Chang, JPMorgan's, that's, Chang, Goldman Organizations: Cetera Financial, National Bureau of Economic Research, CNBC, Summit Locations: El Segundo , California
"What would you buy that you know that your household would need for the future?" "That could be like paper towels, it could be toilet paper, it could be things that you know that you're going to need long term." It's smart to adopt a similar mindset when the stock market pulls back as it did Monday, said Sun, who is also a member of the CNBC Financial Advisor Council. "When the stock market pulls back at these levels, these are great opportunities to invest in core names or a quality portfolio that you always wanted," she said. "It's better to buy things on sale than to buy at full price."
Persons: Winnie Sun, Sun, Roth Organizations: Sun Group Wealth Partners, CNBC, Finance, Dow Jones, Nasdaq, Dow Locations: Irvine , California
With the stock market melting down, investors are scrambling for safety and ways to generate income. Treasury yields have also been falling as investors fled to safety, with the 10-year dropping more than 10 basis points earlier in the session. The move down in Treasury yields has Collin Martin, fixed income strategist at Schwab Center for Financial Research, shifting his outlook. "This is really attractive, especially considering that we have seen Treasury yields plunge so much," Martin said. Money needed in 12 months or less should be in a money market, he said.
Persons: Collin Martin, Martin, Barry Glassman, Glassman, Chuck Failla, Failla Organizations: Federal, Treasury, Schwab Center, Financial Research, Investment, Wealth Services, CNBC, Sovereign Financial Group
Harris For President Campaign | Via ReutersFinancial experts describe Vice President Kamala Harris' investment style in one word: Boring. In her role as vice president, Harris filed a public financial disclosure report for 2023, which was signed in May. Carolyn McClanahan, a certified financial planner and founder of Life Planning Partners in Jacksonville, Florida, who also reviewed Harris' financial disclosure, said it makes her "heart sing" to see Harris investing in low-cost passive investment strategies. Since 2020, mortgage rates have increased substantially, which means the couple missed their chance to lock in a low rate for a longer term. McClanahan said she urged everyone to lock in the record low mortgage rates that were available back then.
Persons: Kamala Harris, Barack Obama, Michelle Obama, Harris, Dustin Thackeray, She's, Thackeray, Carolyn McClanahan, McClanahan, Vance, , Second, Douglas Emhoff, Barry Glassman, Glassman, Cash, Emhoff, it's, Ted Jenkin, Atlanta . Jenkin Organizations: Democratic, Reuters, Crewe Advisors, Planning Partners, CNBC, Finance, GOP, Wealth, CNBC's, Council Locations: U.S, Salt Lake City, Jacksonville , Florida, California, Atlanta .
If you are a W-2 employee and get paid biweekly, there are two months out of the year when you will receive three paychecks instead of the usual two. August may be one of those months. This is a great opportunity to give your financial standing a boost, experts say. If you received your first paycheck this year on January 5, your three-paycheck months will be March and August. If you received your first paycheck on January 12, 2024, your three-paycheck months will be May and September.
Persons: Winnie Sun Organizations: Sun Group Wealth Partners, CNBC, Finance Locations: Irvine , California
Officially, the National Bureau of Economic Research defines a recession as "a significant decline in economic activity that is spread across the economy and lasts more than a few months." But regardless of the country's economic standing, many Americans are struggling in the face of sky-high prices for everyday items, and most have exhausted their savings and are now leaning on credit cards to make ends meet. We're in a 'vibecession'Economists have wrestled with the growing disconnect between how the economy is doing and how people feel about their financial standing. We're in a "vibecession," Joyce Chang, JPMorgan's chair of global research, said at the CNBC Financial Advisor Summit in May. "If you're a homeowner or if you own financial assets, you've done very well, but you're leaving out huge segments of the population," Chang said.
Persons: Harris, Joyce Chang, JPMorgan's, Chang, that's Organizations: Guardian, National Bureau of Economic Research, CNBC, Summit Locations: U.S
Financial experts, however, don't encourage making investment decisions for political reasons as markets tend to react to economic factors that politicians have no control over . Presidential election outcomes don't significantly affect market performance, but many investors still feel nervous about what this year's presidential matchup between President Joe Biden and former President Donald Trump could mean for their money. "We've got a very stable market," Curtis said. That could make your next trip pricierStill, clients visiting Curtis have expressed concerns about the idea of Trump winning the election. Dating back to 1928, the S&P 500 has returned an average 7.5% in presidential election years, compared to an average 8% in nonelection years, according to an analysis in March from J.P. Morgan Private Bank.
Persons: Joe Biden, Donald Trump, Cathy Curtis, Curtis, We've, Biden, Zers, pricier, Trump, Dan Egan, Egan Organizations: Republican, Democrat, Curtis Financial, Financial, CNBC, Nasdaq, Dow Jones, Finance, Trump, Morgan Private Bank, Federal Reserve Locations: Atlanta , Georgia, Oakland , California, J.P
A retirement savings crisis is looming for people who have 401(k) plans and other retirement balances woefully short of what they will need to live on. But some workers — called "super savers" — are managing to successfully grow their retirement nest eggs. Super savers are workers who are putting away more than 10% of their salaries toward their retirement plans, according to new research from nonprofit Transamerica Institute and its division Transamerica Center for Retirement Studies. The rest, 44%, have reached super saver status — with 15% of workers putting 11% to 15% of their annual pay toward retirement, Transamerica said. Notably, the youngest cohort — Generation Z — has the most super savers, with 53%, followed by millennials and baby boomers, each with 44%, and Generation X, with 40%.
Persons: , Transamerica, millennials, Ted Jenkin, Jenkin Organizations: Transamerica Institute, Transamerica, Retirement Studies, CNBC, Finance, Social Security Workers Locations: Atlanta
Concerns about inflation and interest rates are now at a two-year high, according to a recent report by credit reporting agency TransUnion. Although Americans have seen their buying power rise amid cooling inflationary data and a strong job market, 84% of all adults still rank inflation among their top concerns, followed by housing prices and interest rates, TransUnion's consumer pulse study found. "There continues to be positive progress against bringing down inflation," said Charlie Wise, senior vice president and head of global research and consulting at TransUnion. Relief for those hardest hitMeanwhile, the Federal Reserve's string of 11 rate hikes since 2022, coupled with higher inflation, have hit working-class Americans particularly hard. Many of these households have exhausted their savings and are now increasingly leaning on credit cards to make ends meet.
Persons: Charlie Wise, Joyce Chang, JPMorgan's, that's, Chang Organizations: TransUnion, CNBC
About half, or 48%, of Gen Xers say they won't have enough money to enjoy their retirement, a 2024 report from global asset management company Natixis Investment Managers found. Gen X is typically defined as those born between 1965 and 1980. "I think where it's very stressful for [Gen X] is being sandwiched in that tug of war, saving for their retirement as well as helping aging parents," said Marguerita Cheng, a certified financial planner and Gen X mother. Gen X is the first generation of U.S. workers to come of age with 401(k) plans as their primary retirement vehicle after employers largely shifted away from traditional pensions in the 1980s. As retirement approaches, Gen X is feeling the financial squeeze — but financial planners say there are still ways to maximize your savings.
Persons: Gen Xers, they'll, Gen, Marguerita Cheng, Cherry, Cheng Organizations: Natixis Investment, Preston D, Blue, Wealth, CNBC, CoreData Research
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