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☆ Jamie Dimon says Congress shouldn't play games with the creditworthiness of the U.S. government
▼ + stars: | 2023-01-19 | by ( Yun Li | ) www.cnbc.com time to read: +1 min

Jamie Dimon, President, CEO & Chairman of JP Morgan Chase, speaking on Squawk Box at the WEF in Davos, Switzerland on Jan. 19th, 2023. JPMorgan Chase CEO Jamie Dimon said Thursday that politicians should be serious about the debt ceiling as Congress remains locked in a political fight to increase the U.S. borrowing limit. It should never happen," Dimon said Thursday on CNBC's "Squawk Box" from the World Economic Forum in Davos, Switzerland. His comments come as Congress remains in a standoff over the debt ceiling, the amount of money the U.S. is authorized to borrow to pay its bills. Today, Dimon said, "Of course Democrats will blame the Republicans and Republicans will blame the Democrats.

☆ A debt ceiling standoff may trigger 'serious' fallout for Americans, warns economist. Here's what it means for you
▼ + stars: | 2023-01-18 | by ( Greg Iacurci | ) www.cnbc.com time to read: +4 min

Kevin Dietsch | Getty Images News | Getty ImagesThe U.S. may be about to hit its debt ceiling. Here's what the debt ceiling is, and what makes it so important for consumers. What is the debt ceiling? The debt ceiling is the amount of money the U.S. Treasury is authorized to borrow to pay its bills. Congress can raise or temporarily suspend the debt ceiling in the interim to avert a debt-ceiling crisis — something lawmakers have done many times in the past.

☆ Smartphones, used cars and bacon: 10 things with the biggest price drops in 2022, despite inflation
▼ + stars: | 2023-01-18 | by ( Greg Iacurci | ) www.cnbc.com time to read: +3 min

The largest declines, on a percentage basis, were concentrated in categories like consumer electronics, beef, and cars and trucks, according to the consumer price index. watch nowUsed cars and trucks, rental vehiclesA used car dealership in New York on Jan. 19, 2022. Pablo Monsalve | View Press | Corbis News | Getty ImagesPrices for used cars and trucks were among the first to spike as inflation took hold in early 2021. The category inflated by 37.3% that year — the most of any item outside of energy commodities like gasoline and fuel oil, according to the consumer price index. "Rental car companies were buying — and now completely stopped buying — used vehicles," said Mark Zandi, chief economist at Moody's Analytics.

☆ School lunch, eggs and airfare: Why inflation soared for 10 items in 2022
▼ + stars: | 2023-01-13 | by ( Greg Iacurci | ) www.cnbc.com time to read: +6 min

Here's a look at the 10 items with the largest price gains, as measured by the annual inflation rate in December. Food at school: 305.2%The price of a meal at elementary and secondary schools spiked the most in 2022, by a whopping 305%. Overall food prices have been pressured on many fronts, too, funneling into school meals. Oil prices retreated in the second half of the year, though, as fears mounted of a possible recession and an accompanying weakness in oil demand. Monthly milk production among major suppliers fell each month from September 2021 to June 2022, according to the U.S. Department of Agriculture.

☆ Here’s the inflation breakdown for December 2022 — in one chart
▼ + stars: | 2023-01-12 | by ( Greg Iacurci | ) www.cnbc.com time to read: +8 min

A decline in the annual inflation rate doesn't mean consumers saw deflation, which is when overall prices decrease. Categories with the largest changes in Decemberwatch nowWhile on the decline, the annual inflation rate remains at its highest since the early 1980s. Car and truck rental prices fell by 4.9%, while beef and veal prices fell by 3.1%, women's dresses by 2.3% and admission to sporting events by 1.5%. A decline in the inflation rate for electronics may seem counterintuitive when iPhones and other gadgets didn't necessarily come with steep discounts in 2022. Hourly wages have fallen by 1.7% in the past year, after accounting for inflation, according to the U.S. Department of Labor.

☆ Did Trump donate his presidential salary in 2020? Tax returns don’t tell full story
▼ + stars: | 2023-01-11 | by ( Greg Iacurci | ) www.cnbc.com time to read: +2 min

When former President Donald Trump's tax returns were issued publicly Dec. 30, some news reports suggested he didn't donate his salary in 2020 — thereby breaking a campaign pledge — because the tax returns showed $0 of charitable gifts. However, it's unclear from the available data if he did or didn't break his promise, due to how certain information is reported on tax returns, accountants said. He didn't pay federal income tax because he didn't have any taxable income. But that's not the case if you report negative income and don't pay income tax; you can't get a tax deduction if there's no income from which to deduct. However, taxpayers can "carry forward" that unused tax break to future years — effectively using past charitable donations to reduce their tax bill later.

☆ 12 million people got a refund from the IRS for a tax break on 2020 unemployment benefits
▼ + stars: | 2023-01-09 | by ( Greg Iacurci | ) www.cnbc.com time to read: +1 min

The IRS has issued tax refunds to 12 million people eligible for a tax break on unemployment benefits received in 2020, when the pandemic caused joblessness on a scale unseen since the Great Depression. However, President Joe Biden signed the law in March 2021, after many households had already filed their tax returns. The average tax refund associated with those corrections was $1,232. More from Personal Finance:Trump's tax returns show no Social Security benefit incomeWhy your investment ego may be costly2022 was the worst-ever year for U.S. bondsIn total, the agency corrected 14 million tax returns, the agency said. The IRS mailed letters informing these taxpayers of the corrections and advised keeping them with their tax records.

☆ 2022 was the worst-ever year for U.S. bonds. How to position your portfolio for 2023
▼ + stars: | 2023-01-07 | by ( Greg Iacurci | ) www.cnbc.com time to read: +6 min

Interest rates started 2022 at rock-bottom — where they'd been for the better part of the time since the Great Recession. Bond prices move opposite interest rates — as interest rates rise, bond prices fall. Duration is a measure of a bond's sensitivity to interest rates and is impacted by maturity, among other factors. We can see why long-dated bonds suffered especially big losses in 2022, given interest rates jumped by about 4 percentage points. The traditional dynamics of a 60/40 portfolio — a portfolio barometer for investors, weighted 60% to stocks and 40% to bonds — will likely return, advisors said.

☆ Think you've got investing skill? Your overconfidence may be costly
▼ + stars: | 2023-01-06 | by ( Greg Iacurci | ) www.cnbc.com time to read: +4 min

Fuse | Corbis | Getty ImagesWhen it comes to investing, you may know less than you think — and that overconfidence may be costly. But "overconfidence bias" — the behavioral principle of overestimating one's financial acumen — can have damaging results. "It's very easy to have an impression of, 'Actually, I know a lot and haven't been proven wrong,'" Egan said. Similarly, overconfidence may lead rushed investors to accidentally buy the wrong stock, Egan said. However, investors inadvertently bought the wrong stock — the Tesla and SpaceX CEO was referring to the encrypted messaging app Signal, whereas Signal Advance is a small component manufacturer.

☆ Workers still quitting at high rates — and getting a big bump in pay
▼ + stars: | 2023-01-04 | by ( Greg Iacurci | ) www.cnbc.com time to read: +4 min

Filadendron | E+ | Getty ImagesThe share of workers who quit their jobs jumped in November for the first time since last spring — and they're getting a big pay bump for moving, data shows. The labor market remains strong by historical standards, characterized by a high level of job openings and low layoffs. That translates to ample opportunity for workers, who generally get an increase in pay when they accept a new position. In other words, the average consumer lost buying power because rapidly rising prices for goods and services outstripped pay growth. Wage growth has moderated a bit from 2021, though remains strong relative to its pre-pandemic trend, Bunker said.

☆ Secure 2.0 changes 3 key rules around required withdrawals from retirement accounts
▼ + stars: | 2023-01-03 | by ( Greg Iacurci | ) www.cnbc.com time to read: +2 min

President Joe Biden signed a $1.7 trillion legislative package on Dec. 29, 2022 that has several updates for retirement savers. Raising the RMD age to 73 (and eventually 75)Currently, savers have to start taking RMDs at age 72. The new law raises the RMD starting age in two tranches: to 73, starting in 2023, and to 75, starting in 2033. Eliminating RMDs from a Roth 401(k)Starting in 2024, investors in employer retirement plans likes Roth 401(k) accounts will no longer have to take RMDs. This change aligns Roth 401(k) with Roth IRAs, which don't require distributions during one's lifetime.

☆ Trump tax returns show former president was subject to $10,000 SALT cap — but experts say he may have sidestepped the limit
▼ + stars: | 2022-12-30 | by ( Greg Iacurci | ) www.cnbc.com time to read: +5 min

A 2017 tax law capped SALT deductions at $10,000The House Ways and Means Committee's release of six years of Trump's tax returns follows a lengthy fight over making them public. New state rules provide a SALT workaroundHowever, the income tax returns don't provide the full picture, experts said. Here's why: Many states issued rules after 2017 that offer a workaround to certain business owners impacted by the $10,000 SALT cap. The workarounds would apply to business income Trump derived from partnerships, S corporations and some LLCs after 2017. While it's likely Trump leveraged these tax rules, it's impossible to know without additional information like business tax returns if he did and the extent to which he may have benefited, experts said.

☆ Here's why egg prices surged in 2022. Those elevated costs could last into the first quarter of 2023, expert says
▼ + stars: | 2022-12-29 | by ( Greg Iacurci | ) www.cnbc.com time to read: +4 min

D3sign | Moment | Getty ImagesThe surge in egg prices has stood out in a year when Americans saw their bills balloon across the grocery store. Bird flu is largely to blame for rising egg pricesAbout 40 million egg-laying hens — "layers," in industry shorthand — have died this year due to avian flu, Moscogiuri said. Egg prices jumped 2.3% just in the month of November, and by 10.1% in October, according to the CPI. watch nowElevated egg prices "could last into the first quarter of 2023," Lapp said. It's also due to record egg prices somewhat dampening demand, he said.

☆ 4 new ways to avoid a tax penalty for early individual retirement account withdrawals
▼ + stars: | 2022-12-28 | by ( Greg Iacurci | ) www.cnbc.com time to read: +9 min

New exceptions to the 10% tax penaltySavers generally incur a 10% tax penalty if they withdraw money from a retirement account before age 59½. The following list outlines rules in the new legislative package that waive the 10% early withdrawal penalty for IRA owners. Terminal illness A terminally ill person wouldn't be penalized for withdrawing retirement funds before age 59½. Disability Certain disabled retirement savers under age 59½ aren't beholden to the tax penalty. IRS levy You won't incur a penalty if the distribution results from an IRS tax levy (i.e., if the IRS takes your retirement funds to satisfy a tax debt).

☆ New retirement account rules make it easier to tap savings early for emergencies
▼ + stars: | 2022-12-27 | by ( Greg Iacurci | ) www.cnbc.com time to read: +7 min

But they said the rules also amount to another source of so-called "leakage" that run contrary to the overall goal of retirement savings: to build a nest egg for the future. Participants can also access 401(k) savings via loans or non-hardship withdrawals. Non-hardship distributions also hit an all-time high in October — almost 0.9% of participants took one that month, according to Vanguard. And the share of workers taking 401(k) loans rose to 0.9% in October from 0.8% at the beginning of 2022. Beyond the apparent acute financial need among households, hardship withdrawals carry negative repercussions like tax penalties.

☆ Travel abroad is poised 'for a big comeback' in 2023 as Americans eye trips to Asia, Europe
▼ + stars: | 2022-12-25 | by ( Greg Iacurci | ) www.cnbc.com time to read: +6 min

Jackyenjoyphotography | Moment | Getty ImagesAmericans are poised to travel overseas in a big way in 2023. Why travel abroad is poised 'for a big comeback'D3sign | Moment | Getty ImagesThirty-one percent of Americans are more interested in international than domestic travel, according to a recent poll by tourism market research firm Destination Analysts. It cited international travel among the top three trends for 2023, saying it's poised "for a big comeback." Karl Hendon | Moment | Getty Imageswatch nowWhere travel is ramping up mostHo Chi Minh City, Vietnam. Global demand for travel has played out similarly, with most interest directed at Europe and Asia, according to Expedia data.

☆ Families can make a tax-free rollover from 529 plans to Roth individual retirement accounts starting in 2024
▼ + stars: | 2022-12-23 | by ( Greg Iacurci | ) www.cnbc.com time to read: +4 min

Maskot | Maskot | Getty ImagesMillions of 529 accounts hold billions in savingsThere were nearly 15 million 529 accounts at the end of last year, holding a total $480 billion, according to the Investment Company Institute. watch nowHowever, that investment growth is generally subject to income tax and a 10% tax penalty if used for an ineligible expense. A transfer would skirt income tax and penalties; investments would keep growing tax-free in a Roth account, and future retirement withdrawals would also be tax-free. The rollover can only be made to the beneficiary's Roth IRA — not that of the account owner. Some education savings experts think 529 accounts have adequate flexibility so as not to deter families from using them.

☆ Here are 10 ways to avoid the early withdrawal penalty for individual retirement accounts
▼ + stars: | 2022-12-22 | by ( Greg Iacurci | ) www.cnbc.com time to read: +7 min

But there are some situations in which account owners — both those with savings in individual retirement accounts and workplace plans like a 401(k) — can access that money early without penalty. "The worst thing you can do is take from your retirement account before its intended purpose, because then what will be for your retirement?" The list below outlines situations in which IRA owners wouldn't owe the 10% early withdrawal penalty. watch nowThe IRA withdrawal can be used for you, a spouse or your child, among other qualifying family members. The IRA withdrawal must also occur the year you received unemployment, or in the following year.

☆ 21% of investors don't think they pay investing-related fees. Here's why they're wrong — and how it costs them
▼ + stars: | 2022-12-19 | by ( Greg Iacurci | ) www.cnbc.com time to read: +6 min

Damircudic | E+ | Getty ImagesMore than a fifth of investors don't think they pay any fees for their investment accounts, an industry survey has found. An additional 17% of investors in the recent poll said they didn't know how much they paid in fees. These firms — whether an investment fund or financial advisor, for example — generally levy investment fees of some kind. Here's the good news for many investors: Even if you haven't been paying attention to fees, they've likely declined over time. This is largely due to investors' preferences for low-cost funds, particularly so-called index funds, Morningstar said.

☆ 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.

☆ 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.

☆ Health insurance is helping cool inflation. But 'it's not a very good reflection' of what people pay, cautions economist
▼ + stars: | 2022-12-14 | by ( Greg Iacurci | ) www.cnbc.com time to read: +3 min

Health insurance prices fell by 4% in October and 4.3% in November, according to the consumer price index, a key measure of inflation. Health insurance costs had been rising steadily, within a band of roughly 1.5% to 3% a month since October 2021, according to CPI data. That decline in prices on paper is due to the unique way in which the BLS calculates health insurance inflation, economists said. "It's not a very good reflection of prices consumers are going to be seeing," said Andrew Hunter, senior U.S. economist at Capital Economics. Consumers who get health insurance through the workplace paid $1,327 in health premiums for single coverage in 2022 and $6,106 for family coverage, KFF said.

☆ Santa Claus rallies are a 'meaningful' trend, says financial advisor: What one could mean for investors this year
▼ + stars: | 2022-12-09 | by ( Greg Iacurci | ) www.cnbc.com time to read: +1 min

Santa Claus looks on at the 98th Annual Christmas Tree lighting ceremony at the New York Stock Exchange on Dec. 1, 2021 in New York. If history is a guide, stock investors may be poised to get a gift over the holidays. The trend, known as the "Santa Claus rally," encompasses the last five trading days of the calendar year and the first two of the new year. In the past two decades, the S&P 500 Index — a barometer of U.S. stock performance — has increased by 0.7% a year, on average, over those seven trading days, according to FactSet data. The S&P 500 was positive during those seven days in 15 of the 20 years — or 75% of the time, FactSet found.

☆ 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.

☆ Long Covid is distorting the labor market — and that's bad for the U.S. economy
▼ + stars: | 2022-12-08 | by ( Greg Iacurci | ) www.cnbc.com time to read: +13 min

She eventually learned that the balance issues and ear pain resulted from a damaged vestibular nerve, a known effect of long Covid. She found that 2 million to 4 million full-time workers are out of the labor force due to long Covid. For one, many of the hundreds of potential long Covid symptoms are invisible to others, even if disabling for the afflicted. Why the long Covid labor gap mattersJerome Powell, chair of the Federal Reserve, mentioned Sheiner and Salwati's long Covid research in a recent speech about inflation and the labor market. That burden will continue to rise if long Covid patients don't start recovering at greater rates, she said.

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