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☆ For retirees, here's what to do with required withdrawals when you don't need the money
▼ + stars: | 2024-10-07 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +3 min

Skynesher | E+ | Getty ImagesFor some retirees, the deadline to take required withdrawals from retirement accounts is approaching — and those who don't need the money have options, experts say. Since 2023, most retirees must take required minimum distributions, or RMDs, from pre-tax retirement accounts starting at age 73. Brokerage assets could be subject to capital gains taxes, whereas pre-tax retirement funds incur regular income taxes. Unlike mutual funds, most ETFs don't distribute capital gains payouts, which can save brokerage account investors on annual taxes. There's no charitable deduction, but QCDs don't count toward adjusted gross income, meaning retirees don't need to itemize tax breaks to claim it.

Persons: Judy Brown, you'll, Berkemeyer, You'll, Karen Van Voorhis, Daniel J, Galli, QCDs, It's Organizations: SC, H, D.C, Abrin, Goodman Financial, Galli & Associates, Galli & Locations: Washington, Baltimore, Houston, Norwell , Massachusetts

☆ No. 1 Alabama upset by Vanderbilt: Is the Tide in Playoff trouble after historic loss?
▼ + stars: | 2024-10-05 | by ( Kennington Smith Iii | Joe Rexrode | ) www.nytimes.com time to read: +7 min

It marked the Commodores’ first-ever win over an AP top-five team and just the fourth time Alabama has lost as a No. — Joe RexrodeAlabama isn’t in as much CFP trouble as it may seemThe CFP margin for error has shrunk, of course, for an Alabama team that still has challenging road games against Tennessee, LSU and Oklahoma ahead. Despite a near-even margin in total yards (Vanderbilt 186, Alabama 159), the Commodores controlled the game by converting third downs — 7-of-10 in the first half. Williams’ magic isn’t enoughWhen Alabama needed a big play it called on its 17-year-old phenom Ryan Williams — and he delivered. Then, faced with a fourth-and-goal and trailing 40-28, Williams’ 2-yard touchdown run put Alabama back within one possession.

Persons: Vanderbilt, Diego Pavia, Alexander, Randon Fontenette, Jam Miller, Kalen DeBoer, Vandy, Nick Saban, tTlO0FrxtX, Billy Derrick, Saban’s, Pat McAfee, “, It’s, it’s, ” Vanderbilt, ”, QDfGufSQol, — harkening, Dan McGugin, Pavia, Joe Rexrode, —, asser, hird, oster Organizations: Music City Miracle, Commodores, AP, Alabama, Vanderbilt, Georgia, . Alabama, College Football, SEC, Georgia State, Joe Rexrode Alabama, Tennessee, LSU, Oklahoma, Crimson Tide, Pavia, VANDERBILT, ards, avia Locations: Alabama, , Alabama, ., Missouri, ards

☆ These dividend stocks have a track record of solid fourth-quarter performance, Bespoke says
▼ + stars: | 2024-10-04 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +3 min

October is off to a rocky start, but a strong period of seasonality is only just beginning – particularly for select dividend-paying stocks, Bespoke Investment Group found. Dividend-paying stocks have been especially strong when it comes to fourth-quarter returns over the past 10 years, Bespoke found. In addition to having seasonality in their favor, dividend stocks are also expected to benefit from the Federal Reserve's interest rate cutting cycle. Tapestry also has a dividend yield of 3%. The stock has a total return of more than 21% in 2024, as well as a dividend yield of nearly 5%.

Persons: Matthew Boss, Tabby, Boss, Coach's, it's, Piper Sandler, Scott Siefers, Siefers, Wells, Michael Brown, Brown, Lamb Weston Organizations: Investment, New, JPMorgan, BlackRock, JPMorgan Chase, Bank of America Locations: Brooklyn, BlackRock, Wells Fargo

☆ IRS free tax filing will be available in 24 states for the 2025 season — here's who can use it
▼ + stars: | 2024-10-03 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

Internal Revenue Service Commissioner Danny Werfel testifies before the House Appropriations Committee on Capitol Hill on May 07, 2024 in Washington, DC. Kevin Dietsch | Getty Images News | Getty ImagesWho can use IRS Direct File"This year, taxpayers in Direct File's 24 states will see far more tax situations covered than during last year's pilot," and the program will be available at the opening of tax season, IRS Commissioner Danny Werfel said Thursday on the press call. Next season, Direct File will also support interest income above $1,500, pension and annuity income (excluding individual retirement accounts) and Alaska Permanent Fund Dividends. The IRS and Treasury in May unveiled a nationwide Direct File expansion and invited all 50 states to join the program. During the pilot, more than 140,000 users filed returns and saved an estimated $5.6 million in tax preparation fees, the agencies said in April.

Persons: Danny Werfel, Kevin Dietsch Organizations: Revenue, Capitol, Getty, Social, NEC, Fund, IRS, Treasury Locations: Washington , DC, Alaska

☆ Buffer ETFs can shield investors from some losses. Here's what to know before investing
▼ + stars: | 2024-10-03 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

Buffer ETFs, also known as defined-outcome ETFs, use options contracts to offer investors a pre-defined range of outcomes over a set period. As of August 2024, there were 327 buffer ETFs, representing more than $54.8 billion in assets, up from 73 such ETFs and roughly $4.6 billion in August 2020, according to data from Morningstar Direct. For example, a buffer ETF could shield investors from the first 10% of losses while limiting upside returns to 15%. Another downside is the assets have higher fees than traditional ETFs, with 0.8% for the average buffer ETF compared to 0.51% for the average ETF, Armour said. The benefits of buffer ETFs

Persons: Jordi Mora Igual, Bryan Armour, Armour Organizations: North America, Morningstar, Morningstar Direct

While there's no universal minimum credit score to rent an apartment, landlords generally prefer applicants with a good credit score, which is at least 670. How to improve your credit score for rentingIf your credit score isn't stellar right now, don't worry. The average credit score of a Gen Z consumer is 680 compared to the average baby boomer's credit score of 745. Credit builder loans and rent reporting companies can help you add credit history to your credit report. Frequently asked questions about apartment credit score requirementsCan you rent an apartment if you do not have credit?

Persons: —, TransUnion, Kendall Meade, Jay Zigmont, Jennifer, Read Organizations: Fair, Childfree, Business, Yahoo, Finance, CBS, MSNBC, CNBC, Forbes, Black Enterprise, USA, The Johns Hopkins University Carey School of Business, Business Journalists Locations: AnnualCreditReport.com, SoFi, Chevron, America, TheGrio, New York City

☆ Active bond funds put up a strong performance — and they may be poised to stand out as rates fall
▼ + stars: | 2024-10-03 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +5 min

Over the 12-month period ending June, about 2 of 3 active bond managers trounced their average passive counterpart, according to a recent analysis from Morningstar . There were a few tailwinds in active managers' favor. With the Fed recently cutting rates by a half point — and Chair Jerome Powell noting that two more quarter-point cuts could be in the cards this year — a new challenge awaits these active bond funds. As interest rates fall, active managers can position accordingly, said Roger Hallam, global head of rates at Vanguard. "We expect active managers to make a little more, and they should be because they're doing more trades and it costs more to manage active portfolios," said Olmsted.

Persons: —, Ryan Jackson, Jerome Powell, it's, Jackson, Paul Olmsted, Roger Hallam, wouldn't, Hallam, Morningstar, Olmsted Organizations: Federal Reserve, Morningstar, Vanguard, Bond Fund, SEC

☆ Why your Roth IRA conversions could have 'unintended' tax consequences
▼ + stars: | 2024-10-02 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

As year-end approaches, you may be eyeing Roth individual retirement account conversions. The strategy, however, boosts your income, which can have other tax consequences, experts say. Roth conversions shift pretax or nondeductible IRA funds to a Roth IRA, which provides future tax-free growth. Otherwise, you could lose eligibility for certain tax breaks or unexpectedly trigger tax hikes. Here are a couple of other major tax issues to watch, experts say.

Persons: eyeing Roth, Roth, JoAnn May, Helene Organizations: Roth IRA, Asset Management, Finance, Social Locations: Riverside , Illinois

If you're bracing for year-end mutual fund distributions, swapping assets for exchange-traded funds could sidestep the capital gains payout for 2024 and beyond. Some mutual funds distribute yearly capital gains to shareholders, typically in November and December. By comparison, most ETFs don't have an annual payout, which helps reduce ongoing taxes. Typically, investors incur capital gains when trading profitable mutual funds for ETFs in a brokerage account. Depending on their income, certain investors can "capital gain harvest" — strategically selling profitable assets while in a lower tax bracket — to swap mutual funds for ETFs, said Tommy Lucas, a certified financial planner and enrolled agent at Moisand Fitzgerald Tamayo in Orlando, Florida.

Persons: Tommy Lucas, Moisand Fitzgerald Tamayo Locations: Orlando , Florida

☆ Yields on cash are cooling. Here are a few alternatives for your short-term dollars
▼ + stars: | 2024-10-01 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +5 min

It's only been two weeks since the Federal Reserve cut interest rates for the first time in more than four years, but investors are already getting paid less to park their extra cash. Central bank policymakers trimmed a half point from the fed funds rate in September, bringing it down to a range of 4.75% to 5%. That means that the days of 5% yields on idle cash are largely in the past, at least for the current cycle. Lock in with ladders Three key considerations for investors holding cash would be liquidity, yield and risk. For clients who want ready access to their cash, a high-yield savings account could be a solid bet, Sergunina said.

Persons: Jerome Powell, Arvind Narayanan, Anna Sergunina, Sergunina, Narayanan, Amy Arnott, isn't Organizations: Federal Reserve, Vanguard, Main, Financial, ., Federal Deposit Insurance, Morningstar, Bond, SEC Locations: Central, Los Gatos, Calif

☆ 37% of couples use cash wedding gifts for the down payment on a new home, report says
▼ + stars: | 2024-09-30 | by ( Aditi Shrikant | ) www.cnbc.com time to read: +2 min

More couples than ever before, 87%, reported including cash funds in their wedding registry, according to recent data from Zola. Of couples collecting cash, 37% are putting that money toward purchasing a house. With today's housing market, it's clear why couples are funneling wedding gifts into a down payment. If you're coming into a substantial financial windfall due to a wedding, or any other scenario, here's the best place to stash your potential down payment cash. "If a client of mine walked in with $30,000 of wedding money, I would say, 'Let's buy you a bond,'" he says.

Persons: Homebuying, Douglas Boneparth, Mark La Spisa, let's Organizations: Bone, U.S Locations: Zola, New York City, Vermilion

☆ Brokerages slash yields on cash, but some still offer upward of 4%
▼ + stars: | 2024-09-27 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +3 min

Brokerages have also jumped in on the action, with several companies dropping the rates they pay on sums held in cash sweep accounts. Charles Schwab recently trimmed its cash sweep rate to 20 basis points, where it was previously 45 basis points, according to an analysis by Bank of America. Wells Fargo also dropped rates by 3 basis points to 30 basis points, based on the level of clients' household assets. A few outliers still pay solid rates on idle cash Brokerages take different approaches toward cash sweeps, with some firms opting to keep rates low even when the Fed was hiking rates. Even as yields are expected to continue falling, a couple of brokerages continue to offer competitive rates, Bank of America found.

Persons: Marcus, Goldman Sachs, Wells, Michael Kaye, Charles Schwab, Wells Fargo, Robinhood, Ryan Salah, We've Organizations: Federal Reserve, Fed, Discover Financial, Bank of America, Wells, Advisors, Interactive, Robinhood, Capital Financial Partners Locations: Wells Fargo, Towson , Maryland

While HYSA rates are dropping, they're still far higher than many traditional savings account rates. With the Fed cutting rates for the first time in four years, many are anticipating a decrease in the interest rates on high-yield savings accounts — finding a high-yield savings account with a 5% interest rate is already getting harder. High-yield savings accounts are low-riskOne major reason to keep your money in a high-yield savings account is that it is a low-risk option. Interest rates still beat other savings accountsOne of the best reasons to keep your money in a high-yield savings account is the higher interest rate compared to traditional bank savings accounts. High-yield savings accounts are still ideal for your emergency fundHigh-yield savings accounts are an excellent choice for short-term (up to a year) and medium-term (one to five years) financial goals.

Persons: they're, Jovan Johnson Jovan Johnson, Jovan Organizations: Barclays Bank, Bank of America, CPA, Instagram Locations: Atlanta , Georgia

☆ These companies could be poised to start paying dividends, Morgan Stanley says
▼ + stars: | 2024-09-25 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

The Federal Reserve's move to start cutting interest rates bodes well for dividend-paying stocks, and Morgan Stanley thinks several companies are poised to join their ranks. "Equity investors are seeking durable, higher yielding dividends as market volatility is expected to continue throughout the easing cycle," wrote Morgan Stanley strategist Todd Castagno in a report last Friday. Morgan Stanley drew up a list of companies that might have what it takes to start paying dividends, drawn from stocks that boast net cash and generate a free cash flow exceeding 3%. Instacart was also seen as a potential dividend initiator by Morgan Stanley. Other companies that Morgan Stanley highlighted as potential dividend initiators include short-term vacation rental company Airbnb and biotech play United Therapeutics .

Persons: Morgan Stanley, Todd Castagno, Castagno, Morgan, Piper Sandler, James Fish, Instacart, Raymond James, Josh Beck Organizations: Equity, Companies, United Therapeutics

☆ Investors should still keep emergency funds liquid after the Fed's interest rate cut, advisor says
▼ + stars: | 2024-09-25 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

After years of higher yields on cash, the Federal Reserve's shifting policy means lower future returns on savings, certificates of deposit and money market funds. Despite falling rates, investors should still keep emergency funds "liquid," meaning the cash can be easily tapped, financial experts say. Banks use the federal funds rate to lend to and borrow from one another. Meanwhile, the biggest retail money market funds were still paying around 5%, as of Sept. 24, according to Crane Data. If you have been earning 4% to 5% on emergency savings, you could see a "small reduction" in the short term, said Kenealy, who recommends keeping emergency funds where they are.

Persons: Kathleen Kenealy, Banks, Kenealy Organizations: Finance, Data Locations: Woburn , Massachusetts

☆ The tax extension deadline is Oct. 15. Here's what to do if you still can't pay your balance
▼ + stars: | 2024-09-24 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

The tax extension deadline is Oct. 15, but you have options if you still can't pay your balance, experts say. This year, the federal tax deadline was April 15. But while the tax extension provided more time to file, 2023 taxes were due April 15. In the meantime, unpaid taxes continue to accrue IRS penalties and interest. By comparison, the failure-to-file penalty is 5% of unpaid taxes per month or partial month, up to 25%.

Persons: Josh Youngblood Organizations: Youngblood, Finance Locations: Dallas

☆ Georgia or Alabama: Who is facing the most pressure in SEC showdown?
▼ + stars: | 2024-09-23 | by ( Seth Emerson | Kennington Smith Iii | ) www.nytimes.com time to read: +11 min

Georgia is favored over Alabama for the fourth straight time Saturday, but another loss would be three losses in those four games. A loss would turn the conversation from “Kirby Smart had a Nick Saban problem” to “Georgia has an Alabama problem.”Alabama beat Georgia in the SEC Championship Game and earned a spot in the College Football Playoff. It certainly was in last year’s SEC Championship Game and likely will be again this weekend. But an Alabama win would elevate his status early in his tenure, so in that regard, there’s a lot to gain. Win or lose, both Georgia and Alabama will come away with things they need to work on.

Persons: Kirby Smart, Billie Jean King, ” Smart, Kalen, Nick Saban, Seth Emerson, Kennington Smith, Smith, That’s, Kirby, Saban, “ Kirby Smart, ”, Kevin C, Cox, Emerson, Smart, Minus Saban, Ole Miss, Carson, Beck, Jalen Milroe, Glenn Schumann, Milroe, he’s, —, Ryan Williams, Brock Bowers, Ladd McConkey, Mitchell, We’ve, I’m, it’s, Meech Robinson, DeBoer, Todd Kirkland, Erick W Organizations: Alabama, Smart, Georgia, Tide, SEC, College Football, Tennessee, LSU, Oklahoma, Saban, Texas, Emerson, Kentucky, Heisman Trophy, NFL, South, Wisconsin, Clemson, Getty Locations: Georgia, Tuscaloosa, Alabama, Smart, DeBoer, “ Georgia, Texas, Missouri, Kentucky, Tennessee, South Florida

☆ Ranking Week 4’s top 10 college football games: From NC State-Clemson to Tennessee-Oklahoma
▼ + stars: | 2024-09-20 | by ( Justin Williams | ) www.nytimes.com time to read: +10 min

The sport dips its toes this weekend with ranked matchups in the Big Ten, Big 12 and SEC featuring College Football Playoff favorites and some remaining question marks. Let’s rank the top 10 games of Week 4, starting with a few honorable mentions and counting down. San Jose State (3-0) at Washington State (3-0), Friday, 10 p.m., The CWWhat a win for Wazzu last week. Line: Auburn -3GO DEEPER College football Week 4 oddly specific predictions: Rolling with road favoritesHow about Kenny Dillingham and the Sun Devils? 6 Tennessee (3-0) at No.

Persons: John Mateer, Jake Dickert, Ken Niumatalolo, Grayson McCall, CJ Bailey, Cade Klubnik, Alex Hicks Jr, Sam Pittman, Hank Brown, Kenny Dillingham, ASU —, Sam Leavitt, Skattebo, Tyler Shough, ESPN Mario Cristobal’s, Cam Ward, Byrum Brown, Sam Navarro, Fox, Dylan Raiola, Patrick Mahomes, Raiola, haven’t, Alex Orji, Davis Warren, D’Anton Lynn, Cam, Doak Walker, Ollie Gordon, Alan Bowman, Bowman, Collin Oliver, Josh Heupel, Joe Rexrode, Joe, ”, Nico Iamaleava’s, Jackson Arnold, Nic Anderson, Andrel Anthony, Brent Venables ’, Norman, Aaron M Organizations: College, Big, SEC, College Football, Rutgers, Virginia Tech, Navy, TCU, SMU, San, San Jose State, Washington State, Wazzu, Apple, Cougars, WSU, Spartans, Air Force, North Carolina State, Clemson, ABC, NC, Wolfpack, Louisiana Tech, Lousiana Tech, App, Tigers, ACC, App State, USA, Auburn, ESPN, CBS, Arkansas, Arkansas ’, New, College football, Sun Devils, ASU, Texas State, Texas Tech, Abilene Christian, Georgia Tech, ESPN2 Georgia Tech, VMI, Syracuse, Jackets, Cardinals, Austin Peay, Jacksonville State, Notre Dame, Louisville, Miami, Hurricanes, FBS, USF, Alabama, Bulls, Tide, Nebraska, Illini, Cornhuskers, Illinois, USC, Michigan, Wolverines, LSU, Ohio State, Penn State, Oklahoma State, Fox, Baylor, Utes, Kansas State, Sooners, ESPN’s, GameDay Locations: North Carolina, Memphis, SMU , Iowa, Minnesota, San Jose, Washington, Tennessee, Georgia, Arkansas, New Mexico, Auburn, Texas, North Texas, Louisville, South Florida, Tampa, Miami, Illinois, Nebraska, Lincoln, Michigan, Ohio, Oregon, Penn State , Nebraska, Utah, Fox Utah, Stillwater, Kansas, Arizona, Oklahoma

☆ 64% of U.S. retirement savers make this 'dangerous' assumption—'avoid it at all costs,' says CFP
▼ + stars: | 2024-09-20 | by ( Ryan Ermey | ) www.cnbc.com time to read: +2 min

The idea behind saving for retirement is to provide yourself with income between when you stop working and when you die. For those born after 1960, full retirement age — when you receive a full Social Security benefit — is age 67. So maybe it's not surprising that most U.S. retirement savers aren't planning on a lengthy retirement. "Building a plan around spending your assets down to zero, for us, we simply avoid it at all costs." In fact, the median retirement age for U.S. workers is 62, according to research from the Employee Benefit Research Institute.

Persons: CNBC's, SurveyMonkey, Yusuf Abugideiri, Yeske Buie, Abugideiri, you'll Organizations: National Center for Health Statistics, Social Security, Research Locations: Vienna , Virginia, America

☆ 401(k) savers can access one of the 'rare guarantees' in investing, CFP says
▼ + stars: | 2024-09-20 | by ( Greg Iacurci | ) www.cnbc.com time to read: +1 min

Yet, according to financial advisors, there is an outlier in the realm of investing: the 401(k) match. The basic concept of a 401(k) match is that an employer will make a matching contribution on workers' retirement savings, up to a cap. In this example — a dollar-for-dollar match up to 3% — the investor would be doubling their money, the equivalent of a 100% profit. "If you were in Vegas and every time you put $1 in [the slot machine] you got $2 out, you'd probably be sitting at that slot machine for a mighty long time," said Elliott, a member of CNBC's Advisor Council. However, that money can come with certain requirements like a minimum worker tenure, more formally known as a "vesting" schedule.

Persons: Kamila Elliott, you'd, Elliott Organizations: Collective Wealth Partners Locations: Atlanta, Vegas

☆ Volatility looms as election season heats up. Fortify your portfolio against autumn market shocks
▼ + stars: | 2024-09-19 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +6 min

Recalibrate for risk Protecting your portfolio from sharp losses begins with understanding your comfort with risk and ensuring that your asset allocation reflects your long-term goals. "But over that period when markets were down, there were opportunities to harvest losses in stocks, individual names that experienced big pullbacks." And they've been a good buy for clients who are nearing retirement, seeking income and appreciate bonds' ability to offset stocks' volatility. Options for buffering losses Options are also playing a role in investors' portfolios as financial advisors try to mitigate volatility. Call options give investors the right to buy a stock at a specified strike price before a certain date.

Persons: Stocks, Goldman Sachs, Arun Prakash, Prakash's, Rafia Hasan, San, Hasan, they've, Andrew Herzog, We're, Herzog, he's, Gregory Guenther, Morningstar, " Guenther Organizations: Federal, Wealth Management, Fed, Treasury Bond ETF, SEC, GrantVest Financial Locations: San Francisco, Plano , Texas, Matawan , New Jersey

☆ Fed meeting live updates: Fed set to cut rates — but market reaction may depend on size of move
▼ + stars: | 2024-09-18 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +1 min

The Federal Reserve is expected to make its first cut to interest rates on Wednesday after more than two years of tight monetary policy. That is up from 4.29% during the week of March 11, 2022, just prior to the Fed kicking off its first hike. Home equity loans have also become more expensive, with rates rising to 8.49% as of last week, compared to 5.96% back in March 2022, according to Bankrate. The Fed's tight policy has provided a silver lining to savers, however. The annual percentage yield on a five-year certificate of deposit has jumped to 2.87%, up from 0.5% in March 2022, according to Haver.

Persons: Bankrate, Haver, — Darla Mercado, Nick Wells Organizations: Federal, Mortgage News, Fed

☆ Your inherited individual retirement account could trigger a 'tax bomb,' advisor says. How to avoid it
▼ + stars: | 2024-09-17 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

If you've inherited a pretax individual retirement account since 2020, you could face a sizable tax bill without proper planning, experts say. Previously, heirs could take inherited IRA withdrawals over their lifetime, known as the "stretch IRA." The 10-year rule can mean higher yearly taxes for certain heirs, particularly for higher earners with bigger IRA balances. Shortening the 10-year withdrawal window can compound the issue, experts say. For example, Smith has seen people lose eligibility for the electric vehicle tax credit, worth up to $7,500, by taking a large inherited IRA withdrawal in a single year.

Persons: you've, Ben Smith, Smith Organizations: Financial, Finance, Vanguard Locations: Milwaukee

☆ The Fed is preparing to cut interest rates. How to revamp your fixed income investments
▼ + stars: | 2024-09-17 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +5 min

The Federal Reserve is widely expected to start cutting interest rates Wednesday afternoon. Those yields are expected to start coming down sharply as the Fed begins to ease back on generationally high rates. Adding some duration Duration refers to a bond's price sensitivity to changes in interest rates. A bond yield moves inversely to its price, so that when bond prices rise, yields decline. Though investors in the space may be concerned about prepayment risk, especially as interest rates come down and homeowners look to refinance, Cetera says that worry may already be priced in.

Persons: Kathy Jones, Tony Miano, Jones, Schwab's Jones, Gene Goldman, Goldman, James Shagawat, Shagawat Organizations: Federal Reserve, Treasury, Schwab Center, Financial Research, Wells, Wells Fargo Investment Institute, York Life Investments, Investment Management, Investors Locations: Wells Fargo, AdvicePeriod, Paramus , New Jersey

☆ Save on taxes and bolster your portfolio before year-end with these moves
▼ + stars: | 2024-09-16 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +5 min

It's September – and that means it's prime time to think about maximizing after-tax returns as the year winds down. Of course, there may be a price to pay for that performance: Uncle Sam will want his share of taxes. Here are a few steps that could help you hold onto more of your portfolio's returns this year. Munis spin out income that's free of federal taxes, and they may be exempt from state levies if the investor resides in the issuing state. By directly giving low basis highly appreciated stock (instead of selling the position and donating cash proceeds), you avoid incurring the capital gains tax.

Persons: it's, Sam, Nathan Hoyt, Joel Dickson, Vanguard's, Dickson, James Shagawat, Roth, Shagawat, Malcolm Ethridge, –, Ethridge Organizations: Nvidia, Regent Peak Wealth, Investors, Roth IRA, Treasurys, Wealth Locations: Atlanta, AdvicePeriod, Paramus , New Jersey, New York , New Jersey, California, Rockville , Maryland

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