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☆ What Is Cash Value Life Insurance and Is It Worth It?
▼ + stars: | 2023-06-09 | by ( ) www.wsj.com time to read: +10 min

What is cash value life insurance? Although you’ll see insurance companies advertise various life insurance products, all policies can be divided into two categories: term and cash value. How your policy’s cash value worksCash value life insurance is so named because of its ability to build cash value. Types of cash value coverageThere are two main types of cash value insurance:Whole lifeWhole life insurance is the most popular form of cash value insurance. Universal lifeUniversal life policies are more flexible than whole life policies.

Persons: Kat Tretina, you’re, PolicyGenius, Jay Zigmont, “, they’re, ” Zigmont, Andrew Latham, you’ll, ”, Latham Organizations: Universal, American Council of Locations: Water Valley, Miss, Santa Ana, Calif

☆ 6 in 10 Americans aren't saving for retirement—here's where to get started
▼ + stars: | 2023-06-06 | by ( Ryan Ermey | ) www.cnbc.com time to read: +6 min

If you're among the cohort lacking a retirement account, just about every financial planner would tell you to get started as soon as possible. There are plenty of different ways to invest out there, including workplace retirement accounts, individual retirement accounts, accounts designed for medical expenses and regular old brokerage accounts. Still, there are some general guidelines that financial pros typically prescribe when it comes to where you park your retirement savings. Priority 3: Get triple tax savings with an HSANot every retirement saver can invest using a health savings account. Like a traditional 401(k), money you contribute to an HSA counts against your taxable income.

Persons: Christopher Lyman, Kevin Brady, Roth, you've, Amy Miller Organizations: Financial Advisors, Wealthspire Advisors Locations: Newtown , Pennsylvania, New York City, West Hartford , Connecticut

☆ Should You Lock in Today’s CD Rates?
▼ + stars: | 2023-05-25 | by ( ) www.wsj.com time to read: +8 min

Buying a long-term CD means you could lock in today’s generous rates for years to come. Today top CD rates on three- to five-year CDs are 4% to 5%, the highest they have been since the mid 2000s. Deciding when to lock in CD rates is always a balancing act—and even more so in today’s climate of high economic uncertainty. Second, they let you lock prevailing interest rates, so if rates fall you’ll continue to earn the rate you signed up for, for the entire term of the CD. For instance, CIT Bank’s no-penalty CD has an APY of 4.9%—just a hair below the 5% APY its top regular CD offers.

☆ 10 states where homeowners put the most money toward housing costs—No. 1 isn't New York or California
▼ + stars: | 2023-05-17 | by ( Mike Winters | ) www.cnbc.com time to read: +3 min

It compared median income in each state to housing costs, which included mortgages, taxes, insurance, utilities and HOA fees. The analysis used 30% since it's a common benchmark for housing costs in a monthly budget. Known as the "30% rule," financial planners typically recommend putting no more than 30% of household income toward housing costs. While the median income in these states is significantly higher than the bottom-ranked states, housing costs are also elevated. As with fourth-ranked Rhode Island, there's a limited amount of land to develop in Hawaii, which has pushed up housing costs.

☆ Fewer Adults Have Life Insurance, but Skipping It Can Be Risky
▼ + stars: | 2023-05-15 | by ( ) www.wsj.com time to read: +11 min

But financial planners say a basic life insurance policy, especially products known as term life insurance, should be an important part of many Americans’ financial plans. A life insurance policy:Replaces lost income: If you were to pass away, your family could use your life insurance policy’s death benefit to replace your income. How to shop for life insuranceIf you’re ready to start shopping for a life insurance policy, follow these steps:1. According to PolicyGenius, an insurance marketplace, typical rates for a whole life policy, the most common type of permanent life insurance, are about 10 times the cost of a term life policy. Term Life Insurance Because term life insurance expires, it's often a far cheaper option.

☆ How Much Rent Can I Afford?
▼ + stars: | 2023-05-11 | by ( ) www.wsj.com time to read: +7 min

Paying too much in rent could leave you struggling to pay your other bills or unable to save for the future. Here’s how financial planners say you can make sure your rent is in line with your income and goals. Experts we spoke to recommend keeping rent costs below 25% to 30% of your monthly income. Another factor to consider is whether spending a little more on rent could help you save on other costs. When it makes sense to spend lessIt can make sense to spend less than 30% of your net income on rent if you have other large expenses.

Persons: Kevin J, Ryan, isn’t, “, ”, Christopher Lyman, James Guarino, Baker Newman Noyes, Guarino, Garrett Sorensen, Akeiva, Ellis, Sorensen, you’re, it’s Organizations: Financial Advisors, ”, Utilities Locations: Newtown, Penn, Woburn , Mass, Boston , New York, San Francisco, Old Hickory, Tenn, Natick, Mass

☆ I blew a golden opportunity to boost my savings in my 20s—the 7 money skills I wish I'd known by 30
▼ + stars: | 2023-05-10 | by ( Mike Winters | ) www.cnbc.com time to read: +6 min

And since I lived with my parents for almost half of my 20s, my expenses were low, which meant I blew a golden opportunity to boost my retirement savings. Know how interest worksYou can't make long-term financial decisions without knowing how interest affects your money. Your credit score matters because you're less likely to qualify for loans, auto financing and credit cards if you have a low credit score. Additionally, itemized summaries of your credit score, known as credit reports, are produced by the three major U.S. credit bureaus: Equifax, Experian and TransUnion. Overdue payments can result in penalty fees, higher interest rates and a lower credit score by over 100 points, in some cases.

I started my SEP IRA at 30, but I wondered if there were other, nontraditional options for retirement. I asked financial planners how their millionaire clients saved. I'm happy to be saving for retirement now, but I still wonder if I could retire comfortably without saving into a traditional retirement account. To find out, I asked financial experts if any of their millionaire clients had retired without traditional retirement funds. They didn't take on debtIt turns out you can retire as a millionaire without robust traditional retirement funds.

A high-yield savings account is a good place to store money for short-term needs. Many banks offer high-yield savings accounts with variable high interest rates. A high-yield savings account may be the best place to save money for travel or a wedding. The best high-yield savings accounts offer variable annual percentage rates (APYs), some at 3.75% APY or more. Fun moneyIf you really want to reward yourself, consider putting your "just for fun" money in a high-yield savings account.

☆ Exclusive: Google's VC firm just led a $12 million Series A investment in Range, a startup that's training AI to give financial advice
▼ + stars: | 2023-05-03 | by ( Darius Rafieyan | ) www.businessinsider.com time to read: +7 min

The company is training an AI model to give financial advice and hopes to make human advisors obsolete within a decade. Enter Range, a startup that's looking to use artificial intelligence and machine learning to make human financial planners obsolete. The company is building out a suite of financial planning tools aimed at aging millennials and designed to help streamline investing, saving, and estate planning. 'We're looking to replace you'These recommendations are reviewed and "massaged" by human advisors before being passed on to clients. She said she's excited about the prospect of making her own job obsolete if it means more people having access to financial planning.

☆ 'Avoid the 1-click option 100% of the time': 5 ways to trick yourself into saving money
▼ + stars: | 2023-04-20 | by ( Mike Winters | ) www.cnbc.com time to read: +4 min

If you're like most people, you find that saving money is harder than spending it — especially when impulse purchases are just a mouse-click away. To help you save money, financial planners recommend following some sort of a budget, like one that follows the 50-30-20 rule. For that reason, "avoid the one-click option 100% of the time," suggests Brenna Baucum, a CFP in Oregon. Think of purchases in hours worked, not dollars spentAnother mental trick is to think of purchases in terms of hours worked, rather than dollars spent. It involves withdrawing all of your spending money as cash every month and dividing it into envelopes dedicated to different budgeted expenses, like groceries, gas or rent.

☆ 6 things to do with your tax refund other than spend it right away
▼ + stars: | 2023-04-18 | by ( Mike Winters | ) www.cnbc.com time to read: +4 min

That's what many tax filers have been considering this tax season, which ends today, April 18, for most filers. As of April 7, the average 2022 tax refund is $2,878, slightly lower than 2021's $3,175, according to the Internal Revenue Service. Of course, an IRS refund is merely a zero-interest reimbursement for overpayment on taxes throughout the year. To get you started, here are six smart things to do with your tax refund other than spend it right away. "If your tax refund can make a dent to lower the balance or possibly pay off your credit card, do it," says Nycole Freer, a certified financial planner in California.

I'm able to start investing the money for my future, and I cut my tax bill by around $3,500. This included a federal tax bill of around $9,700 and a New York state tax bill of around $3,300. Freelance income often fluctuates year to year, so this type of retirement account is great for meeting that need. All in all, my new tax bill was around $9,400 — with a $7,200 federal bill and a $2,200 New York state bill. If you're a freelancer looking for last-minute ways to reduce your taxes, consider opening up a SEP IRA account before the deadline.

☆ Skittish Savers Are Fleeing Local Banks. Here’s Why They Could Still Be a Great Deal for You
▼ + stars: | 2023-04-06 | by ( ) www.wsj.com time to read: +6 min

In fact, experts say now may be the time to consider what small banks have to offer. Depositors appear to be fleeing small banks because they fear problems in the banking sector could spread beyond the tiny number of troubled banks that have made headlines so far. “Which is bad for them, but good for their customers.”Of course, online banks also offer savers high interest rates that meet or exceed what most small banks offer. Small bank loansIf you are looking for a loan, small banks have a lot to offer, too. And if you already have a relationship with a small bank, you might be able to obtain more favorable borrowing terms.

☆ 6 signs you have too much debt—and how to pay it off
▼ + stars: | 2023-04-05 | by ( Mike Winters | ) www.cnbc.com time to read: +5 min

For just credit card debt, the average amount is $5,910. If you aren't able to add anything to your emergency fund while covering your minimum debt payments, your debt burden is probably too high to comfortably manage. You can only afford to make minimum debt paymentsOnly making minimum payments can be a sign that your debt burden is unsustainable. You're opening new credit card accounts to help pay for older onesOne way to pay down credit card debt faster is through a balance transfer card that offers a 0% interest rate for a limited time, usually 12 to 21 months. To calculate your debt-to-income ratio, tally all of your monthly debt payments and divide that total by your monthly income, after taxes.

Most people only need two bank accounts financial planner Brannon Lambert told HerMoney: A checking account and a savings account. You'll earn more interest with a high-yield savings account than a traditional savings account. See Insider's best high-yield savings accounts right now>>How many bank accounts should I have? Most people just need one checking account and one savings account, Lambert said. The sheer number of bank accounts you have doesn't hurt your credit.

☆ Investing isn't free. But here's why 20% of investors think it is
▼ + stars: | 2023-03-25 | by ( Greg Iacurci | ) www.cnbc.com time to read: +6 min

Investment fees may be a worthy addition to that list in the modern era — though not all investors are aware of this near-universal fact. These firms — whether an investment fund or financial advisor, for example — generally levy investment fees of some kind. watch now"And that makes you much less sensitive to the fees you're paying — in amount and whether you're paying fees at all." 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.

☆ Barely one-quarter of financial planners are women, but industry experts say 2 simple strategies could move the needle
▼ + stars: | 2023-03-22 | by ( Korie Wilkins | ) www.businessinsider.com time to read: +5 min

Only 23% of financial planners in the US are women. But as women grow their wealth — women control about 32% of the world's wealth, according to Boston Consulting Group — financial firms are evaluating how best to serve them. "People often saw me as someone's assistant," Sandra Cho, the president and founder of Pointwealth Capital Management, told Insider. Anne Marie Stonich, the chief wealth strategist at Coldstream Wealth Management, told Insider its Women and Wealth program focuses on networking and mentoring. Kate Healy, the managing director of the CFP Board's Center for Financial Planning, told Insider that financial firms are getting savvier about creating career paths for women.

If you're in debt or need help with your taxes, you can often get free help. Some situations may require the help of a financial advisor, and a fee-only advisor can be a good choice. Whether you simply don't want to pay for a help or are unable to, there's good news: Expensive professional help isn't the only way to solve your financial problems. The National Foundation for Credit Counseling provides credit counseling for any income level. Investing for retirementThe Financial Planning Association allows financial planners to provide free advice for families experiencing cancer, households needing help after COVID-19, and more.

☆ How to Pick a Financial Advisor
▼ + stars: | 2023-03-17 | by ( ) www.wsj.com time to read: +12 min

Read on to get started:Types of financial advisorsMany financial professionals, including financial planners, securities brokers, investment managers, and insurance brokers call themselves financial advisors so it’s important to know exactly what services an advisor provides before hiring one. Financial advisor designationsThere are myriad designations for financial advisors but only a handful that indicate the expertise most consumers need. CPAs, or Certified Public Accountants, can be certified with a Personal Financial Specialist credential, which combines their tax expertise with personal financial planning knowledge. How to find a financial advisorFinding a financial advisor is not so different from finding any other specialized service you’re in the market for. The right financial advisor can help navigate your financial life, from budgeting everyday spending to fulfilling long-term financial goals over a lifetime including the purchase of a home and a comfortable retirement.

☆ CNBC FA Council members share their strategies for a volatile market
▼ + stars: | 2023-03-08 | by ( Sara Lindsay | ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailCNBC FA Council members share their strategies for a volatile marketCertified Financial Planners and CNBC FA Council members Douglas Boneparth and Stacy Francis share their outlooks and strategies for an unpredictable 2023 market.

☆ Here's how after-tax 401(k) contributions can help with those big retirement savings goals for 2023
▼ + stars: | 2023-02-28 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

Morsa Images | E+ | Getty ImagesThe difference between after-tax and Roth accountsAfter-tax 401(k) contributions are different than Roth 401(k) savings. For 2023, if you're under 50, you can defer up to $22,500 of your salary into your plan's regular pretax or Roth 401(k) account. The percentage of plans offering a Roth 401(k) saving option has surged over the past decade. watch nowHowever, some plans offer additional after-tax contributions to your traditional 401(k), which allows you to save more than the $22,500 cap. In 2021, roughly 21% of company plans offered after-tax 401(k) contributions, compared to about 20% of plans in 2020, the survey found.

This is where having an adequate life insurance policy can make all the difference. Even if you're only interested in a cheap funeral life insurance policy, the price is inevitably lower when you buy early. When I asked Gura about life insurance in the early days after death, he said, "Whole life and universal life insurance used in planning is very, very impactful. For example, let's look at a modest $300,000 whole life insurance policy. Even if you're not ready to have the discussion about end-of-life arrangements, life insurance is also made for the living.

Reuters GraphicsThe U.S. Labor Department is due to release its Consumer Price Index report for January at 8:30 a.m. EST (1330 GMT). For the purpose of calculating inflation, "housing" is considered a service. Reuters Graphics Reuters GraphicsEven outside of housing, the general pace of services inflation has been falling somewhat. Carpenter said he felt that one of Powell's top stated concerns, of low unemployment driving wages higher for workers in the services sector and keeping inflation elevated, may be overstated. "The link from wages to inflation is there, but small, and both services wage and price inflation are trending down," he said, noting a recent White House study indicating wage growth across key services businesses was declining.

☆ This savings account offers a 'triple tax benefit'—but 88% of users are missing out
▼ + stars: | 2023-02-09 | by ( Ryan Ermey | ) www.cnbc.com time to read: +3 min

Traditional retirement accounts, such as 401(k)s and individual retirement accounts, come with an upfront tax break. But a third type of account comes with tax-deductible contributions, tax-free growth in your investments and tax-free withdrawals on certain expenses in retirement: health savings accounts. How health savings accounts workHealth savings accounts are only available to people enrolled in high-deductible health plans. But the HSA comes with some extra benefits. You're also allowed to invest your HSA money in stocks, bonds, exchange-traded funds and mutual funds.

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