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☆ I inherited my dad's house at 33 after he died unexpectedly. The guilt and embarrassment of suddenly having money was painful.
▼ + stars: | 2023-10-28 | by ( Gary Nunn | ) www.businessinsider.com time to read: +7 min

My sister and I inherited his house and sold it to put deposits down on our own apartments. We knew we'd inherit the house and his possessions; he'd told us we were the only people in his will. We had two weeks to put our dad's house on the market, clear out 40 years of memories, and decide what to do with all his possessions. AdvertisementAdvertisementIt took me a long time to accept the inheritanceI was almost embarrassed by suddenly having money. AdvertisementAdvertisementThe money didn't feel like mine and neither, to a certain extent, did the flat.

Persons: —, Dad, he'd, everything's, We'd, We've, hadn't, should've, I'd, I'm, sharer, I've, wouldn't, didn't Organizations: Service Locations: Australia

You may think the term "net worth" only applies to celebrities and CEOs, but it's something we all have — and we all should know it. Here's a breakdown of both median and average American net worth by age, according to the Federal Reserve's Survey of Consumer Finances published in October 2023. Knowing your net worth can help you assess whether your next financial move is a good one. Empower (formerly Personal Capital) and Mint are two platforms that make tracking your net worth easy. Empower has its own net worth calculator and Mint has a net worth-specific dashboard that calls out your progress each month.

Organizations: Federal Reserve's Survey, Consumer, Federal Reserve Survey, Consumer Finances, Google, Android, CNBC, CNBC Select's, Facebook, Twitter Locations: U.S

☆ Is a Financial Advisor Worth It?
▼ + stars: | 2023-10-24 | by ( Bernice Napach | ) www.wsj.com time to read: +12 min

The right financial advisor can help you find the right answers to your life’s biggest, most difficult financial decisions. A one-time feeIf all you need is a comprehensive financial plan—a look at how your current savings, including your 401(k) and investments stack up—you don’t need to retain a financial advisor. When a financial advisor may be worth the costA financial advisor is worth paying for if they provide help you need, whether because you don’t have the time or financial acumen or you simply don’t want to deal with your finances. You want reassurancePlenty of investors work with a financial advisor for less tangible reasons too. ”It’s important that you get quality fiduciary advice on all those subjects because they’re irrevocable.”When a financial advisor probably isn’t worth the costThere are several financial areas where paying for a financial advisor may not be worth the cost, especially if you are willing to do a little basic research and have the discipline to stick to your goals.

Persons: Bernice Napach, ”, Rick Ferri, Read, it’s, that’s, won’t, Fee, Micah Hauptman, Peter Palion, —, “ They’re, ” Sheryl Garrett, Eric Amzalag Organizations: Vanguard, Ferri Investment Solutions, Investment, Consumer, Consumer Federation of America, IRS, Advisors, Garrett Planning Network, Peak Financial Locations: Georgetown , Texas, East Norwich, N.Y, Los Angeles

☆ Millennials, Gen Z Mistakenly Bet on Inheritance From Boomer Parents
▼ + stars: | 2023-10-18 | by ( Ann C. Logue | ) www.businessinsider.com time to read: +14 min

When she died, Grandma Sue left the most common form of inheritance, called an accidental bequest, which is simply the money left over when someone dies. The New York Times reported on a coming inheritance wealth boom in 2023, 2019, 2014, 2008, and 1999. Even for families with incomes in the 51% to 90% range of earners, the average inheritance was $46,000 — hardly life-changing money. Researchers have been talking about the coming Great Wealth Transfer for at least a quarter of a century. But the reality is that all the wealth boomers are sitting on probably won't end up fixing our collective financial problems.

Persons: Grandma Sue, Grandma Sue's, —, Xers, Gen Zers, Xer, shouldn't, Edward Wolff of, Maury Gittleman, Wolff, Gittleman, Michael Bloomberg, Warren Buffett, Larry Ellison, Bill Gates, Isabel Sawhill, It's, Penn, there's, they're, Bank of America cardholders, Joseph Smith, haven't, boomer, Ann Logue Organizations: Social Security, Medicaid, Boomers, Federal Reserve, New York Times, Edward Wolff of New York University, US Bureau of Labor Statistics, Federal, Brookings Institution, University of Pennsylvania, Penn, Medicare, Family Foundation, Bank of America, Consumer, Department of, Northwestern Mutual, IRS Locations: Northwestern, Chicago

☆ Receiving an inheritance? Here's how experts say to handle any windfall
▼ + stars: | 2023-10-16 | by ( Ryan Ermey | ) www.cnbc.com time to read: +5 min

Inheritances come in three primary forms: cash, real estate and investments. How to handle a cash inheritanceCash is the easiest asset to handle, as long as you're not receiving a boatload of it. How to handle inheriting real estateUnless your parents lived in a palace, you're unlikely to run into the inheritance tax limit on a real estate inheritance either. But remember: Real estate often comes with upkeep costs, says Patel. "People underestimate the expense in real estate, so you should be aware of that prior to making the decision."

Persons: it's, windfalls, Grandpa Winston's, Inheritances, Clay Ernst, Cash, Pratik Patel, We're, Patel, you'll, —, Ernst Organizations: University of Pennsylvania, Federal Reserve's Survey, Consumer Finances, Edelman, BMO Family Office Locations: United States

The logo for Morgan Stanley is seen on the trading floor at the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., August 3, 2021. REUTERS/Andrew Kelly/File Photo Acquire Licensing RightsNEW YORK, Sept 7 (Reuters) - Wealthy clients going to a Morgan Stanley banker to discuss their investments may soon have a different sort of experience: having a chatbot listen to their conversation. They signed a deal last summer in which Morgan Stanley has preferred access in product development for wealth management. WEALTH RACEThe AI initiative is part of Morgan Stanley's strategy to drive its wealth division, where net revenue surged 16% to a record in the second quarter and new client assets grew $90 billion. Morgan Stanley is not alone in its AI efforts.

Persons: Morgan Stanley, Andrew Kelly, Sal Cucchiara, Morgan Stanley's, Cucchiara, Andy Saperstein, Sam Altman, Boris Power, OpenAI, they'll, Morgan, James Gorman, JPMorgan Chase, Teresa Heitsenrether, Erica, Nick Reed, Michael Abbott, Abbott, Tatiana Bautzer, Lananh Nguyen, Megan Davies, Nick Zieminski Organizations: New York Stock Exchange, REUTERS, Bankers, Saperstein, Wall, JPMorgan, Rival Bank of America's, OpenAI, Microsoft, Accenture, Thomson Locations: Manhattan , New York City, U.S, California, New York

As a financial planner, there's certain tough advice my clients never want to hear. Advice like, buy less house — and don't expect your home to be a good investment. As a financial advisor, I'm constantly giving people good advice they don't want. I know no one wants to hear this kind of money advice. No one wants to imagine a worst-case scenario, but if something actually went sideways in your financial life, you'll be glad you had multiple levels of safety net built into your overall plan.

Persons: I'm, it's, We'd, doesn't, Get, you'll, It's Organizations: Service Locations: Wall, Silicon

☆ Morgan Stanley's training course to work with super-rich clients has a 40% first-time failure rate. Execs shared an example of a case study that caps the program off.
▼ + stars: | 2023-08-16 | by ( Hayley Cuccinello | ) www.businessinsider.com time to read: +4 min

Each year, some 100 Morgan Stanley advisors take a course to earn the family wealth director title. Morgan Stanley executives Alex Chester and David Bokman share what trips up advisors the most. Every year, about 100 advisors at Morgan Stanley take an exam in order to work with high-net-worth families. "We don't have a requisite number that we're looking to put through the program," Alex Chester, who runs the bank's family wealth director program, told Insider. David Bokman, Morgan Stanley's head of family office resources, and his team, pretend to be a high-net-worth client and their accountant or attorney.

Persons: Morgan Stanley, Alex Chester, David Bokman, Chester, Morgan Stanley's, Bokman Organizations: Advisors

☆ Preparing for the 'great wealth transfer'? 4 steps for managing an inheritance, from a CFP: 'It's not as simple as it might seem'
▼ + stars: | 2023-08-15 | by ( Isabel Engel | In Isabel--Engel | ) www.cnbc.com time to read: +2 min

The so-called "great wealth transfer" is already underway, with over $68 trillion set to be passed down by baby boomers to their children. As a CFP, Miura helps her clients grapple with their own inheritances and transfers of wealth. Adults who expect to receive an inheritance anticipate getting an average of $738,724, according to a recent New York Life Wealth Watch Survey. The newly inherited wealth will take many forms: 58% of those expecting an inheritance anticipate receiving cash, 43% expect property and 28% expect investments. If you're among the many Americans unsure how to manage a windfall, here are four tips to help you be financially smart about your inherited wealth.

Persons: Danielle Miura, Miura, I've Organizations: New York, CNBC, Wealth Watch Survey Locations: New

☆ 40% of millennials and Gen Zers think marriage is outdated—but 'it's important to be realistic' about the financial benefits, says CFP
▼ + stars: | 2023-08-11 | by ( Ryan Ermey | ) www.cnbc.com time to read: +7 min

After all, 85% of respondents in the same survey say you don't need marriage to have a fulfilled and committed relationship. "Marriage brings about 1,200 rules, tweaks and changes to how people are treated compared to unmarried people," he says. Getting married comes with tax benefits that unmarried couples don't enjoy. In the case of death or incapacitation, unmarried couples (especially those in the LGBTQ community) could have the legitimacy of their relationship questioned by family members. CHECK OUT: The ‘most successful’ relationships follow these 8 rules, say psychology experts who studied couples for 50 years

Persons: Frank Summers, Gen Zers, Summers, you'll, Couples, Kendall Meade, haven't, you've, you'd, Warren Buffett Organizations: Cetera Advisors, Psychology, SoFi, Social Security

Considering contributing to a 529 plan for their college education, or making them your life insurance beneficiary. But when that generosity comes at the cost of depleting your own retirement savings, the prospect becomes a lot less compelling. At current levels, most American families will have absolutely zero interaction with federal estate taxes. Amorello explained: "Gifting money actually can help grandparents lessen their own net worth to lower estate taxes. Because if you're leaving behind an inheritance, but half of it is going to the estate taxes, that can be a daunting realization."

Persons: Kathryn Amorello, Don, It's, Amorello, you've, they're, we've, — Organizations: Service, Financial, Internal Revenue Service Locations: Wall, Silicon, Amorello

☆ This Is The Best Debit Card for Teens Who Want to Try Their Hand at Investing
▼ + stars: | 2023-08-05 | by ( Kerri Anne Renzulli | ) www.wsj.com time to read: +5 min

With Fidelity’s Youth Account, teens can experience firsthand the risks and rewards of investing. There are other debit card accounts available to under 18-year-olds that also offer investing services, but most charge a subscription or other fee to take advantage. Greenlight, our pick for best overall debit card for kids, for example, costs $9.98 a month if you want access to its investing platform. Chase’s First Banking debit card, our pick for best free debit card for younger children, also offers a range of spending controls. How we pickedTo pick Buy Side from WSJ’s Best Debit Cards for Kids, we looked at card options available to those under the age of 18, including prepaid debit cards, checking account-linked debit cards, secured credit cards and brokerage account-linked debit cards.

Persons: Kerri Anne Renzulli, Roth Organizations: Fidelity, Learning, Fidelity ZERO

☆ The Best Debit Cards for Kids and Teens
▼ + stars: | 2023-07-02 | by ( Kerri Anne Renzulli | ) www.wsj.com time to read: +15 min

Banks, credit unions, financial technology companies and even investment firms all offer debit cards geared toward under 18-year-olds. With Greenlight, children receive a physical debit card with their name on it. In addition to its abundance of customizable features, Greenlight also rises above other kids debit cards thanks to the educational tools and games included in its app. This is possible because the Step Visa Card is not technically a debit card, though it functions very similarly. How we pickedTo pick Buy Side from WSJ’s Best Debit Cards for Kids and Teens, we looked at card options available to those under the age of 18, including prepaid debit cards, checking account-linked debit cards, secured credit cards and brokerage account-linked debit cards.

Persons: Kerri Anne Renzulli, they’ve, Banks, we’ve, Greenlight, Chase, it’s, Side’s, —, Equifax, Roth Organizations: Community Federal Savings Bank, Capital, Teens, Chase, Teen, Fidelity, Learning, Kids

☆ This safety net for the elderly and disabled comes with strict rules on savings. That may change
▼ + stars: | 2023-06-30 | by ( Lorie Konish | ) www.cnbc.com time to read: +6 min

Today, those thresholds are just one-sixth of their 1972 value, the Center on Budget and Policy Priorities notes, and their worth declines further each year with inflation. How SSI's asset limits may be raisedIn new research, the Center on Budget and Policy Priorities considers the effects of raising or eliminating the asset limits SSI has for beneficiaries. That $100,000 threshold would be in line with the amount eligible SSI beneficiaries are currently allowed to hold penalty-free in ABLE accounts, tax advantaged savings programs for people with disabilities. Another change — excluding the consideration of retirement accounts — could also help bolster SSI program eligibility. Eliminating the asset test entirely would raise participation in the program by 6%, the nonpartisan research and policy institute found.

Persons: Tom Grill, Kathleen Romig, Romig, Sen, Sherrod Brown, Rob Portman, Portman, Brown, —, Kristen Dama Organizations: Center, Budget, Finance, GOP, Social Security, Sherrod Brown Democratic, Democrat, Republican, Community Legal Services of Philadelphia, Social Security Administration Locations: Ohio, Dama

☆ A New Front in Reparations: Seeking the Return of Lost Family Land
▼ + stars: | 2023-06-08 | by ( Audra D. S. Burch | ) www.nytimes.com time to read: +1 min

For much of their lives, the Jones siblings had passed by a parking lot on the campus of the University of Alabama in Huntsville without giving it much thought. Then one day, a relative casually pointed to the spot and said she thought it was once owned by their ancestors, who had farmed the land since the 1870s. The Joneses want it back. “For our family and others, it’s not just about the taking of the land, it’s about the taking of our ability to build wealth,” said Michael Jones, 63, the youngest of five brothers and sisters. African American families across the country — particularly in the South — are pushing for the return of land they say was taken in government seizures, an emerging attempt to provide economic restoration for the long saga of Black land loss and deprived inheritances.

Persons: Jones, it’s, ”, Michael Jones Organizations: University of Alabama Locations: Huntsville

The last few years have been hard in our marriage, and he sometimes says he's considering a no-fault divorce. But if you live in a community property state, your husband will be entitled to half. Is your state a fault or no-fault state? You mentioned in your letter that your husband has specifically threatened a "no-fault" divorce, but according to Costas, it isn't up to him. If you live in a no-fault state, outside of criminal factors, it won't matter whether one partner cheated or left.

☆ Bernie Sanders once again wants to raise taxes on rich heirs
▼ + stars: | 2023-04-18 | by ( Juliana Kaplan | ) www.businessinsider.com time to read: +3 min

Sanders wants to expand the estate tax to 45% on estates worth at least $3.5 million. The amount exempted from estate tax essentially doubled under Trump's 2017 tax legislation. Sanders, alongside Sen. Elizabeth Warren and Rep. Jimmy Gomez, is introducing new legislation targeting heirs who receive over $3.5 million. The Tax Policy Center similarly found that fewer than 0.1% of people who would die in 2020 would owe estate tax. However, like Sanders' previous attempts to hike taxes on the rich, the proposal is unlikely to make it far.

Diverse hiring helps life insurance companies connect with underserved communities. Life insurance companies are focusing on community and product development. Many of the largest insurance companies have historically denied Black applicants, given them lower-value life insurance than white applicants who paid the same amount, and engaged in other discriminatory activity. Research from William G. Gale, a Brookings Institution economics expert and co-author of "Racial Discrimination in Life Insurance," found that while Black families were 3% more likely than their white counterparts to have a life insurance policy, the differences in inheritances (often including life insurance payouts) accounted for 10-20% of the wealth gap. Aside from eliminating blatantly discriminatory underwriting, Guardian Life has opened the door to life insurance for people with HIV.

☆ Bernie Sanders says teachers should be paid at least $60,000 — and thinks that money should come from higher taxes on the wealthy
▼ + stars: | 2023-02-15 | by ( Juliana Kaplan | ) www.businessinsider.com time to read: +3 min

Bernie Sanders wants teachers to make a minimum of $60,000, and to pay for it with taxes on wealthy estates. Sanders' proposal to address that is higher pay, offset with changes to the estate tax. But one of the primary reasons is the pathetically low pay teachers receive. Sanders' plan to pay for higher teacher salaries hinges on the estate tax, which he wants to make both broader and higher. But Sanders thinks it's necessary to deal with the state of teacher pay, noting that childcare workers fare even worse, making less than doggy daycare workers.

☆ Over half of millennials expect to inherit money: Take 3 steps to be ready
▼ + stars: | 2023-01-19 | by ( Kamaron Mcnair | ) www.cnbc.com time to read: +3 min

Over half of millennials are expecting to receive an inheritance, recent research shows. Aside from potential tax obligations, a cash inheritance may sound like a sweet deal for the recipient. "Many people don't realize that as they're going through the grieving process, they may make unfortunate decisions," Miura says. Along with the expected emotions around the death of a loved one, feelings about the money itself can create an emotional conundrum for an inheritance recipient. Sometimes people feel guilty about receiving an inheritance based on the assumption that you should work hard to earn money, Miura says.

In January 2021, my net worth was -$15,000. Despite this, my net worth increased from -$15,000 to $15,000 since January 2021. Together, these accounted for an increase of $12,000 in my net worth. In the end, these different sources accounted for an additional $5,000+ that I invested over the last six months — which has allowed me to surpass my original net worth goal for this time period. Three years ago, I made the first deposit into my Roth IRA and today that account makes up a substantial portion of my net worth.

☆ Smarter taxes could ease UK productivity crisis
▼ + stars: | 2023-01-09 | by ( Francesco Guerrera | ) www.reuters.com time to read: +4 min

Britain’s sluggish productivity – the amount of output per hour worked – deters investment and limits growth, in turn depressing wages. After keeping pace with other developed countries for decades, UK productivity has grown by 0.3% a year since 2008. That is a third of the 0.9% averaged by G7 members, and well below the 1.2% rate recorded by the United States, according to figures from the Organisation for Economic Co-operation and Development. In 2021, gross fixed capital formation, a measure of investment, accounted for 17% of UK GDP, compared to 24% in France and 21% in the United States, according to the World Bank. Despite a long-standing scheme for research and development, UK businesses still only fund 55% of total R&D spending, below the 63% of the United States, according to a Cambridge University study.

☆ What Is a Robo Advisor, and Do I Need One?
▼ + stars: | 2022-12-16 | by ( ) www.wsj.com time to read: +9 min

That’s where a robo advisor can help. A robo advisor is a digital, automated service that makes investing easy because it picks securities for you. How to start investing with a robo advisorGetting started investing with a robo advisor is designed to be easy. Robo advisor accounts are well-suited for anyone who is comfortable being online but needs a nudge to invest and would rather not do it themselves or doesn’t have the means to hire an individual financial advisor. Betterment and Wealthfront, for example, offer savings accounts, which pay substantially more than traditional bank savings accounts, as well as checking accounts and debit cards.

☆ 'Company loyalty will make you poor': Early retiree credits his $1 million net worth to these 7 ‘unpopular opinions'
▼ + stars: | 2022-08-18 | by ( Steve Adcock | ) www.cnbc.com time to read: +4 min

The self-made millionaire says he got rich the "old-fashioned way"—by investing wisely, marrying the right person, and living a frugal life. At the time, I had $900,000 saved, and within a few years was able to accumulate a $1 million net worth. Here are seven unpopular opinions that helped me retire early as a millionaire:1. I chose to wait until I found someone who shared the same financial values — and it was one of the best life decisions I ever made. Today, I have a supportive spouse who just as enthusiastic as I am about investing and living a frugal lifestyle.

Persons: Steve Adcock Organizations: Employers, Ramsey Solutions, Ivy League

According to RenoFi, the average price of a single-family home in the U.S. could reach $382,000 by 2030. For example, the average price of a home in New York City this year is $795,000, but the average price around Albany in Upstate New York is $227,500, according to Redfin trends. It projects that San Francisco will have the highest average home value in the country at a staggering $2,612,484. For example, Betterment doesn't require clients to maintain a minimum investment account balance, but there is a ACH deposit minimum of $10. So if you want to buy a $400,000 home in 2030, you've got 9 years to start saving.

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