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☆ Using cash like a millionaire may not make sense for most investors. Here's why
▼ + stars: | 2023-06-08 | by ( Greg Iacurci | ) www.cnbc.com time to read: +5 min

The poll considered cash and cash-like investments to include money market funds, checking and savings accounts, plus certificates of deposit. A recent Capgemini Research Institute survey also found affluent investors are holding a record share of cash. On one hand, having more money in cash today isn't necessarily a bad move due to higher interest rates, advisors said. Yet, the CNBC millionaire survey suggests wealthy millennials shifted into cash more readily than older investors. When to boost cash holdingsBut there are circumstances in which it may make sense to up one's cash-like holdings, she said.

Persons: Ted Jenkin, Jenkin, it's, millennials, X, Young, Carolyn McClanahan, what's, McClanahan, Cash Organizations: Millionaires, CNBC Millionaire Survey, Research Institute, Federal Reserve, CNBC, Planning Partners Locations: Atlanta, Jacksonville , Florida

☆ Crypto is Gen Z’s most common investment. That may be risky, experts said
▼ + stars: | 2023-06-07 | by ( Greg Iacurci | ) www.cnbc.com time to read: +4 min

But while young people can afford to take more investment risk relative to older generations, using crypto as the linchpin of an investment portfolio is nonetheless a risky bet due to its volatility, experts said. Crypto zeal a concern if investors don't diversifyFifty-five percent of adult Gen Z investors currently invest in crypto, according to the joint Finra-CFA Institute report. Gen Z is a cohort born in the late 1990s and into the 21st century, meaning its oldest members are in their mid-20s. The joint Finra-CFA Institute report doesn't specify the average share of Gen Z investors' portfolios allocated to cryptocurrency. Gen Z investors in the U.S. view themselves as risk-takers.

Persons: Gen, Coinbase, Binance, Crypto, —, Gerri Walsh, Walsh, Ted Jenkin, cryptocurrency, They've, Jenkin, bitcoin, It's, There's, they've Organizations: CFA Institute, Financial Industry, Investor Education, Securities and Exchange Commission, SEC, Finance, Finra Investor Education Foundation, Meta, cryptocurrency Locations: Atlanta, cryptocurrency, U.S

☆ Why investors 'always misunderstand' the difficulty of regaining a loss, says advisor
▼ + stars: | 2023-05-15 | by ( Greg Iacurci | ) www.cnbc.com time to read: 1 min

You may need to wait longer than you think to regain that loss. Yet, "investors always misunderstand this," said Ted Jenkin, a certified financial planner based in Atlanta and a member of CNBC's Financial Advisor Council. Its value declines to $8 — a 20% loss. The stock's value then rebounds by 20%. That 20% gain returns the stock's value to $9.60, not the original $10.

☆ Yellen says uninsured deposits may be at risk in future bank failures. Here’s how FDIC coverage works
▼ + stars: | 2023-03-17 | by ( Lorie Konish | ) www.cnbc.com time to read: +3 min

How FDIC coverage worksThe limit for FDIC coverage is $250,000 per depositor, per bank, in each account ownership category. The majority of Americans are going to be covered by FDIC insurance. For example, a married couple with a business may have up to $250,000 insured in an account in one spouse's name, up to $250,000 insured in an account in the other spouse's name and up to $250,000 insured in a business account. How to check, boost FDIC protectionIf you want to know whether your deposits are FDIC-insured, check your bank statement, Jenkin said. Not all accounts provide FDIC coverage, Jenkin noted.

☆ 84% of recent first-time home sellers have regrets. Here are 4 mistakes to avoid
▼ + stars: | 2023-03-15 | by ( Lorie Konish | ) www.cnbc.com time to read: +3 min

Brandon Bell | Getty Imageswatch now"Even in a really strong seller's market, people still have regrets," said Amanda Pendleton, Zillow home trends expert. Here are four regrets from recent sellers that homeowners ought to be aware of before listing their homes this spring. "If you price it competitively, you're going to be able to sell it a lot quicker," Jenkin said. Homes that get more saves and views on Zillow have virtual, three-dimensional home tours and interactive floor plans, Pendleton said. Bad timingA quarter of recent sellers felt they got their timing wrong, Zillow found.

☆ Are your bank deposits FDIC-insured? What to know in the wake of Silicon Valley Bank, Signature Bank closures
▼ + stars: | 2023-03-13 | by ( Lorie Konish | ) www.cnbc.com time to read: +3 min

Liu Guanguan | Getty ImagesThe unexpected shutdowns of Silicon Valley Bank and Signature Bank have prompted new questions about the level of protection for bank deposits that many consumers have not asked since the 2008 financial crisis. The limit for FDIC coverage is $250,000 per depositor, per bank, in each account ownership category. For example, a married couple with a business may have up to $250,000 insured in an account in one spouse's name, up to $250,000 insured in an account in the other spouse's name and up to $250,000 insured in a business account. How to check, boost FDIC coverageIf you want to know whether your deposits are FDIC-insured, check your statement, Jenkin said. The majority of Americans are going to be covered by FDIC insurance.

☆ Why moving in retirement can earn you an extra $100,000 — or more
▼ + stars: | 2023-03-07 | by ( Greg Iacurci | ) www.cnbc.com time to read: +3 min

Getty ImagesMoving in retirement can unlock a big pot of money to help fund those post-work years. The typical person at the top 10th percentile made even more money — $347,000 — by using the "retire and relocate" strategy, Vanguard found. A quarter of all U.S. retirees have "the potential to shore up their retirement funding" by moving to a cheaper market, the report estimates. watch nowThis isn't necessarily a strategy Americans should use as the linchpin of their retirement savings strategy, however. "[However], if you're thinking of moving from a major metro area in one state to another, and your housing costs will be half, in general that's not going to be the case," Jenkin said.

☆ Rollovers from a 401(k) plan to an IRA: Weigh these 7 factors first
▼ + stars: | 2023-02-09 | by ( Greg Iacurci | ) www.cnbc.com time to read: +4 min

Investment funds in 401(k) plans are generally less costly than their IRA counterparts. That's largely because IRA investors are "retail" investors while 401(k) savers often get access to more favorable "institutional" pricing. watch nowOf course, not all 401(k) plans are created equal. For example, more than 30% of 401(k) plans disallow periodic or partial withdrawals by retirees, and about 36% disallow installment payments, according to the Plan Sponsor Council of America, a trade group. Company stockWorkers who own company stock in their 401(k) can get a tax benefit for keeping those holdings in-plan rather than rolling them to an IRA, Jenkin said.

☆ Tax credits vs. tax deductions: How they differ, and what to know before you file
▼ + stars: | 2023-01-31 | by ( Greg Iacurci | ) www.cnbc.com time to read: +5 min

Tax credits offer a dollar-for-dollar reduction in liabilityA tax credit offers a dollar-for-dollar reduction of your taxes. For example, let's say you get a $1,000 tax credit and have a $5,000 tax liability. It's therefore a more indirect way of cutting your taxes relative to tax credits, which directly lower your actual tax liability. On the other hand, a $1,000 tax credit would shave $1,000 off their actual tax bill total. Tax deductions are a lot more valuable [for people] in the 37% tax bracket than someone in the 10% tax bracket.

☆ 75% of retirees fall short of a key retirement income goal. These steps can help
▼ + stars: | 2023-01-21 | by ( Lorie Konish | ) www.cnbc.com time to read: +6 min

But many retirees fall short of that retirement income goal, according to research from Goldman Sachs Asset Management. The gap isn't surprising, considering that more than 40% who are still working say they are behind schedule on their retirement savings. "You have all these competing priorities that can crowd out retirement savings," said Mike Moran, senior pension strategist at Goldman Sachs. What to know about Social Security's 8.7% cost-of living adjustmentWhy applying for Social Security benefits with long Covid is tricky1. Delay claiming Social Security benefitsThe longer you wait to claim Social Security retirement benefits up to age 70, the bigger your monthly checks will be.

☆ Amid inflation, more middle-class Americans struggle to make ends meet
▼ + stars: | 2023-01-18 | by ( Jessica Dickler | ) www.cnbc.com time to read: +3 min

watch nowThe middle class is shrinkingEconomists' definitions of middle class vary. To bridge the gap, Americans are dipping into their savings accounts and running up credit card balances. With economists now forecasting a possible recession, 62% of middle-income households said they need to get financially prepared, Primerica also found. Experts often recommend starting with high-interest credit card debt. Credit card rates, in particular, are now more than 19%, on average — an all-time record.

☆ 4 key money moves in an uncertain economy, according to financial advisors
▼ + stars: | 2023-01-17 | by ( Jessica Dickler | ) www.cnbc.com time to read: +3 min

In some cases, it used to make financial sense to tap cheap credit for a larger purchase, rather than withdrawing money from a savings or investment account. If you currently have credit card debt, "grab one of the zero-percent or low-rate balance transfer offers," McBride advised. Put your cash to workOnce you've paid down debt, Peters recommends setting some money aside in separate savings account for emergency expenses. "Online savings accounts can be a way to earn money in times when other investments may not be returning well," he said. "It's not a huge return but you are not going to lose your money," he said.

☆ If federal regulators ban noncompete agreements, 'I'd be the first person to start working again,' advisor says
▼ + stars: | 2023-01-12 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

Ted Jenkin signed a noncompete agreement when he sold his financial advisory practice in 2019. Bound by this clause, Jenkin, who is a member of CNBC's Financial Advisor Council, stayed on as an employee until the end of last year. The proposed rule would require companies with existing noncompete agreements to rescind them and inform current and past employees that they have been canceled, in which case Jenkin would be free to pursue other employment. "I'd be the first person to start working again," Jenkin said. "I wouldn't have the fear of getting into a legal battle just because I'm working in my profession."

☆ Building emergency savings is a top financial resolution for 2023, survey finds. Here’s how to get started
▼ + stars: | 2022-12-30 | by ( Lorie Konish | ) www.cnbc.com time to read: +3 min

Jenkin, who co-wrote a book called "The 21-Day Budget Cleanse," recommends people take a detox-type approach to their household budgets. "Most people really haven't taken the time to see where they're overspending and size up what the difference is," Jenkin said. That's "troubling" now, as interest rates on those debts are poised to continue to climb, according to Matt Schulz, chief credit analyst at LendingTree. Look for higher rates on your cashAs interest rates climb, that's good news for the money you stand to earn on your cash. Online savings accounts and certificates of deposit, or CDs, are providing the highest interest rates in more than a decade.

☆ 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.

☆ 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.

☆ 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.

Ascentxmedia | E+ | Getty ImagesAdd this to the list of challenging questions for retirement savers: Should I contribute to a pre-tax or Roth account? The key difference between a pre-tax and Roth accountThe tax code offers a financial benefit to Americans who contribute to a qualified retirement account like a 401(k) plan or individual retirement account. The core difference between a pre-tax and Roth account is when savers reap those benefits — and when their taxes come due. In a pre-tax account, savers get an upfront tax benefit. The opposite is true of a Roth account: Savers pay tax upfront when they contribute money, but don't pay income tax on withdrawals in retirement.

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