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☆ 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.

☆ 4 financial moves if you have — or are worried about — long Covid
▼ + stars: | 2022-12-06 | by ( Greg Iacurci | ) www.cnbc.com time to read: +5 min

"We're far from being done with this," McClanahan, founder of Life Planning Partners in Jacksonville, Florida, said of long Covid. Waiting until after developing long Covid might mean you pay higher premiums for life insurance or private disability insurance — or that insurers will deny coverage, McClanahan said. Long Covid has been linked to hundreds of potential symptoms, some of which are debilitating and serious, like damage to vital organs. For instance, there's not yet a test to determine if someone has long Covid, meaning some doctors are hesitant to diagnose or treat patients. For individuals worried they might have long Covid, McClanahan recommends creating a medical diary with detailed logs of each symptom and doctor visit.

☆ Robinhood to pay a 1% 'match' on customer contributions to retail individual retirement accounts
▼ + stars: | 2022-12-06 | by ( Greg Iacurci | ) www.cnbc.com time to read: +6 min

The retail brokerage will pay a 1% "match" on contributions its customers make to a Robinhood individual retirement account, the firm said Tuesday. The firm is billing it as the first-ever match paid to retail IRA customers (i.e., outside of a workplace retirement plan.) A 401(k) match is a common retirement benefit offered by employers that sponsor a workplace retirement plan. How the match worksA 401(k) match is generally structured as a share of employee contributions. There aren't any contribution or account minimums to get the Robinhood match, and trades don't carry commissions.

☆ Tech layoffs may not be a bad omen for U.S. economy at large
▼ + stars: | 2022-12-02 | by ( Greg Iacurci | ) www.cnbc.com time to read: +4 min

Many tech layoffs were announced in November, meaning they may show up in the next JOLTS report, said Daniel Zhao, lead economist at Glassdoor. There were about 10.3 million job openings in October. Further, the ratio of job openings to unemployed individuals is about 1.7 — meaning available jobs are almost double those of people looking for work. However, total job cuts in 2022 are the second-lowest on record, trailing only behind last year, according to the report. Meta CEO Mark Zuckerberg alluded to this dynamic in a recent letter to employees explaining job cuts, which impact more than 11,000 workers.

☆ Why labor economists say the remote work 'revolution' is here to stay
▼ + stars: | 2022-12-01 | by ( Greg Iacurci | ) www.cnbc.com time to read: +5 min

ZipRecruiter, another job site, found a fourfold increase in job listings mentioning remote work, to a 12% total share. In all, remote work translates to roughly 4% more hours worked during a 40-hour week. "People really, really want remote work," Pollak said, adding: "It's difficult to put the genie back in the bottle." 'Significant variation' in remote work opportunitiesThat said, most jobs in the U.S. economy can't be done remotely. People really, really want remote work.

☆ Millions suffer from long Covid — and it costs them $9,000 a year in health-care expenses, on average
▼ + stars: | 2022-12-01 | by ( Greg Iacurci | ) www.cnbc.com time to read: +11 min

There is no cure or approved treatment for ME/CFS; as with long Covid, patient symptoms are merely treated or managed. 'People are trying all sorts of treatments'Getting an official long Covid diagnosis can be challenging, which can compound early expenses. Like many who suffer from long Covid, Pohl seeks relief from crippling symptoms wherever it's available. "There are so many of us now that it's taking months to see professionals," she said of long Covid patients. watch nowTime alone generally doesn't cure long Covid symptoms; it often requires some form of rehabilitation.

☆ Long Covid may be 'the next public health disaster' — with a $3.7 trillion economic impact rivaling the Great Recession
▼ + stars: | 2022-11-30 | by ( Greg Iacurci | ) www.cnbc.com time to read: +12 min

Norpel is one of millions of Americans with long Covid, also known as long-haul Covid, post-Covid or post-acute Covid syndrome. Key symptoms: Long Covid has been linked to more than 200 symptoms, according to The Rockefeller Foundation. Duration: There's no consistent definition of how long symptoms must persist for someone to be considered a long Covid patient. What experts do know is that for some, long Covid symptoms can last months or even years. "I don't know if it's for the rest of my life or not," Hurst said of feeling long Covid symptoms.

☆ The fear of loss can cost investors big-time. Here’s how
▼ + stars: | 2022-11-29 | by ( Greg Iacurci | ) www.cnbc.com time to read: +6 min

Westend61The fear of loss is a powerful emotion for investors — and, if left unchecked, can cost them big bucks in the long term due to years of forfeiture of investment gains. watch nowFor investors, that evolutionary impulse plays out as "loss aversion bias." Investors have a bias toward avoiding financial loss. Prioritizing the avoidance of loss over earning a gain "is a major reason why so many investors underperform the market," Aguilar said. Meanwhile, 401(k) investors pulled money out of stock mutual funds during the same time period.

☆ As BlockFi files for bankruptcy, what to know about crypto investor protections
▼ + stars: | 2022-11-28 | by ( Greg Iacurci | ) www.cnbc.com time to read: +7 min

The ongoing FTX fallout — and bankruptcies earlier this year for lenders Celsius Network and Voyager Digital — is teaching crypto investors a hard lesson about their protections relative to more traditional asset classes. Howey Co., established the so-called Howey test to determine what constitutes a security, or "investment contract." More on how the Howey test works can be found below. Here's why this is important for crypto: It's unclear in many cases if digital assets are an "investment contract" under the 76-year-old Howey test. The Securities Investor Protection Corporation insures investors for up to $500,000 in the event a brokerage firm liquidates and their holdings are tied up in the insolvent firm.

☆ 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

☆ With TV prices down 17%, Black Friday shoppers may find ‘excellent deals’
▼ + stars: | 2022-11-23 | by ( Greg Iacurci | ) www.cnbc.com time to read: +4 min

Why TV prices are falling amid broader inflationAverage TV prices fell by almost 17% in October 2022 compared with the same month in 2021, according to the consumer price index. They're an outlier at a time when stubbornly high inflation led prices to climb steeply for a broad basket of consumer products. Manufacturers had cranked up production to historic highs to meet consumer demand — and retailers now have a glut of TVs, Kowalski said. Black Friday and Cyber Monday TV dealsRetailers have long used TV deals to draw in shoppers on Black Friday — the Friday after Thanksgiving and the traditional start to the holiday shopping season. watch nowSome Black Friday deals from retailers such as Best Buy have been jaw-dropping, especially for some well-known brands, said Julie Ramhold, consumer analyst with DealNews.

☆ Biden administration loosens Trump-era investing rules around environment, social and governance funds for 401(k) plans
▼ + stars: | 2022-11-22 | by ( Greg Iacurci | ) www.cnbc.com time to read: +1 min

The Biden administration on Tuesday issued a final rule that makes it easier for employers to consider climate change and other so-called environment, social and governance factors when picking investment funds for their 401(k) plans. The U.S. Department of Labor rule, which takes effect in 60 days, undoes regulations put in place during the Trump administration. Those prior rules, issued in 2020, had a "chilling" effect that effectively sidelined employers from weighing ESG factors when selecting 401(k) funds, senior Labor Department officials said during a press call Tuesday. ESG funds have grown more popular in recent years. The Inflation Reduction Act is expected to further bolster the popularity of ESG investing.

☆ Why protections for crypto investors are linked to orange groves
▼ + stars: | 2022-11-21 | by ( Greg Iacurci | ) www.cnbc.com time to read: +6 min

watch nowHow orange groves impact crypto protectionsThe reason why largely hinges on a 1946 Supreme Court case about investors in Florida orange groves. Howey Co. — established the so-called Howey test to determine what constitutes a security, or "investment contract." (More on how the Howey test works can be found below.) Here's why this is important for crypto: It's unclear in many cases if digital assets are an "investment contract" under the 76-year-old Howey test. Why the 'security' distinction mattersThe Howey test has four parts to determine if something like bitcoin is an "investment contract."

☆ Taylor Swift public ticket sale on Friday is canceled, Ticketmaster says. But the secondary market can be 'buyer beware'
▼ + stars: | 2022-11-17 | by ( Greg Iacurci | ) www.cnbc.com time to read: +5 min

Kevin Mazur | Wireimage | Getty ImagesDeals for hot tickets, you're virtually not going to find one. Why concert tickets are a 'buyer beware' marketSome Taylor Swift fans who bought seemingly legitimate tickets have already discovered they were duped. Buying tickets on the "secondary market" poses an elevated risk of fraud and/or exorbitant prices for consumers, entertainment-industry experts warned. "There are almost so many [secondary sellers] that you just can't keep up," Cobb said. Of course, this isn't to say secondary sellers are grifters in all circumstances.

☆ Retirement savers seek safe havens within their 401(k) plans. They may regret it later
▼ + stars: | 2022-11-17 | by ( Greg Iacurci | ) www.cnbc.com time to read: +1 min

Data suggests some retirement savers are seeking out safe havens within their 401(k) plans. Investors sold out of target-date funds and large-cap U.S. stock funds in October in favor of "safer" ones, such as stable value, money market and bond funds, according to Alight Solutions, which administers company 401(k) plans. For example, stable value and money market funds captured 81% and 16% of net investor funds in October, respectively, according to Alight data. Target-date funds and large-cap stock funds accounted for 37% and 12% of net investor withdrawals, respectively; company stock funds accounted for 34% of total outflows, according to Alight. Target-date funds, the funds most popular with 401(k) plan investors, offer a mix of stocks and bonds that align with someone's expected retirement year (their target date, so to speak).

☆ Here's why it may take a while for housing inflation to cool off
▼ + stars: | 2022-11-14 | by ( Greg Iacurci | ) www.cnbc.com time to read: +2 min

Allison Dinner | Getty ImagesThere are signs inflation may fall further in coming months, but housing threatens to mute any improvement. The consumer price index, a key barometer of inflation, rose 7.7% in October from a year ago. That may seem counterintuitive at a time when many observers have said the U.S. is in a "housing recession." The shelter category is up 6.9% in the last year. The rental and housing markets are coolingBusà Photography | Moment | Getty ImagesWhy shelter prices lag

☆ Why egg prices are surging — but chicken prices are falling: It's an 'act of God' event, says trade strategist
▼ + stars: | 2022-11-11 | by ( Greg Iacurci | ) www.cnbc.com time to read: +4 min

Yet chicken prices fell in October. It may seem counterintuitive that egg and chicken prices moved in opposite directions. The last bout was in 2015, when a record 50.5 million birds were impacted, the CDC said. Elevated egg prices "could last into the first quarter of 2023," Lapp said. 'Broilers' are less affected by flu than 'layers'Meanwhile, chicken prices retreated in October, falling by 1.3% during the month.

☆ Here’s the inflation breakdown for October 2022 — in one chart
▼ + stars: | 2022-11-10 | by ( Greg Iacurci | ) www.cnbc.com time to read: +7 min

The consumer price index, a key inflation barometer, jumped by 7.7% in October relative to a year earlier — the smallest 12-month increase since January 2022. Economists expected a 7.9% annual increase, according to Dow Jones. "That's the crux of the problem: the pervasiveness of inflation," said Greg McBride, chief financial analyst at Bankrate. Hourly earnings have fallen 2.8% in the last year after accounting for inflation, according to the BLS. For example, consumers in the United Kingdom saw prices increase 10.1% annually in September, tying a 40-year high hit in July.

☆ 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.

☆ 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.

☆ Fidelity, ForUsAll now offering 401(k) investors access to cryptocurrency
▼ + stars: | 2022-11-04 | by ( Greg Iacurci | ) www.cnbc.com time to read: +1 min

Retirement savers in some 401(k) plans are starting to get access to cryptocurrencies like bitcoin. Fidelity Investments, the largest provider of 401(k) plans by total assets, began offering a Digital Assets Account to clients this fall, a spokesperson confirmed. Employers sponsoring a 401(k) plan through Fidelity can choose to offer the account to workers, allowing them to allocate a share of their savings to bitcoin. For its part, ForUsAll, a plan administrator geared toward startups and small businesses, in September also rolled out crypto to 401(k) savers, said David Ramirez, the company's CEO. ForUsAll intends to add five more in the coming weeks, said Ramirez, who declined to disclose which ones.

☆ Treasury Department sold a record nearly $1 billion of Series I bonds on Friday, the deadline to lock in higher rate
▼ + stars: | 2022-11-01 | by ( Greg Iacurci | ) www.cnbc.com time to read: 1 min

The U.S. Treasury Department in Washington. Al Drago/Bloomberg via Getty ImagesI bonds broke daily, weekly and monthly sales recordsThe Treasury sold $979 million of I bonds before the deadline on Friday — nearly as much in one day as during the three years from 2018 to 2020, when investors bought slightly more than $1 billion, according to Treasury Department figures shared Tuesday. Investors opened 95,482 new accounts on Friday, also a record. Investors purchased more than $3 billion of I bonds last week and almost $7 billion in October — which represent weekly and monthly records, too, according to initial estimates the Treasury Department provided Monday. Investors opened 359,822 new accounts last week and 731,336 new accounts during October.

☆ You may experience a 'mysterious disappearance’ on Halloween — and insurance probably won't pay for it
▼ + stars: | 2022-10-31 | by ( Greg Iacurci | ) www.cnbc.com time to read: +3 min

Renters and homeowners insurance claims related to a "mysterious disappearance" increased by 5% on Halloween and 3% on Mischief Night, which is the night before Halloween, according to Travelers Insurance claims data from 2011 to 2021. Some have clauses that explicitly deny payment in cases of such a "mysterious disappearance." Why 'named perils' matter in insurance coverageHowever, you're not necessarily in the clear just because your policy doesn't explicitly omit a "mysterious disappearance." When it comes to personal property, insurance generally only covers renters and homeowners for a "named peril," Griffin said. So-called all-risk policies or open perils policies, by contrast, cover any event the policy doesn't specifically exclude.

☆ 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.

☆ 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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