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☆ 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.

☆ How Much Should I Have in Savings?
▼ + stars: | 2023-02-07 | by ( ) www.wsj.com time to read: +10 min

And when you are ready to stop working, a healthy retirement savings account will allow you to maintain financial independence. How much should I have in retirement savings? Retirement Savings Targets by Age Saving 10 times your salary doesn't have to seem overwhelming. So how do you translate that into a savings goal? Retirement savings should be prioritized over college savings, says Fruzzetti: “In an ideal world, you’d be able to save enough for retirement and college concurrently, but that’s not always possible.” The most realistic plan for many families is to save as much as possible.

Permanent life insurance can build cash value. Beyond that, how do I use life insurance to build wealth? Financial planners and life insurance agents can help you create a budget to determine how much you can afford. Financial planners and life insurance agents can help you create a budget to determine how much you can afford. Before purchasing any life insurance policy, we recommend meeting with a financial planner or experienced life insurance agent.

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We need to stop thinking of life insurance as insurance. Unfortunately, we continue to see well-intentioned life insurance agents who don't sell more comprehensive policies to buyers they deem "too poor" for good life insurance. Common reasons people think they don't need life insuranceThe first and most important thing we want to address is the misconceptions about who doesn't need life insurance. If you buy a more comprehensive permanent life insurance policy, you can also use it as an investment vehicle for yourself. Insider's Featured Life Insurance Companies Lemonade Life InsuranceNationwide Life InsuranceGuardian Life Insurance Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

Permanent life insurance policies are cheaper than term life insurance in the long run. More than half of Americans overestimate the cost of life insurance, and 30% believe life insurance is only for end-of-life expenses. Whole life insuranceUnlike term life insurance, whole life insurance lasts your entire life. Other types of life insuranceWhile term and whole life insurance are the two primary types of life insurance, there are other options. Variable: A permanent life insurance option, variable life insurance also has a cash-value portion the company invests.

☆ Gen Z workers want to retire before 60—here’s how much they need to save each month to get to $2 million
▼ + stars: | 2023-01-18 | by ( Cheyenne Devon | ) www.cnbc.com time to read: +1 min

Gen Zers, defined as Americans between 18 and 25, aim to retire by 59 on average, according to Northwestern Mutual's 2022 Planning and Progress study. Millennials, defined as those between 26 and 41, intend to retire by 61 on average. On average, American workers think they'll need $1.7 million to retire comfortably, according to Charles Schwab's most recent study, but that varies by generation. Gen Zers and millennials believe they'll need to put away $1.4 million and $1.8 million, respectively. However, a shorter time in the workforce means you'll need to put more money into your retirement savings to meet your financial goals.

To combat the issue of employees forgetting their old 401(k) accounts, Capitalize finds your old account(s) and coordinates the IRA rollover for you. If you indicate that you don't already have an IRA, Capitalize will walk you through opening one. While Capitalize can help you roll your old 401(k)s into a new IRA or an existing IRA, the platform can't help you roll your old account into your current employer's 401(k) account. Bottom lineOverall, Capitalize provides an accessible way for finding old 401(k) accounts and rolling them into an IRA. The platform's features account for some common hang-ups when it comes to 401(k) management, such as not knowing who holds their old 401(k) account or not having an IRA account to serve as a destination for the old 401(k) account's funds.

☆ More than two-thirds of Americans’ financial situation did not improve or stayed the same in 2022 — here's how to better your finances in 2023
▼ + stars: | 2023-01-09 | by ( Jasmin Suknanan | Jason Stauffer | Benji Stawski | ) www.cnbc.com time to read: +12 min

With a higher credit score, you can qualify for better interest rates on your credit card, mortgage, or loan, better loan terms and sometimes even higher funding amounts. One of the most important ways to increase your credit score is to continue making on-time payments on any existing debt. So if you've spent $5,000 on a credit card with a credit limit of $10,000, your credit utilization rate is 50%. Keep in mind that it can take some time to see drastic improvements in your credit score, however, every little score bump helps. Another way to put a little extra money in your pocket is by using a cash-back or rewards credit card.

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☆ How to Invest in Stocks
▼ + stars: | 2022-12-30 | by ( ) www.wsj.com time to read: +23 min

Set your time frameWhen you’re ready to invest in stocks, it’s natural to start by looking at how the stock market has performed recently. If you’re saving for the long-term: Invest in stocksOn the other hand, if you have a long-term financial goal—especially retirement, but any goal a decade or more out—you can afford to invest in the stock market. Decide how much risk to takeJust because you have time to invest in stocks doesn’t mean you have the stomach. Return Best Year Worst Year Years with a loss 100% Stocks 12.3% 54.2% -43.1% 25/96 80% Stocks 11.1% 45.4% -34.9% 24/96 60% Stocks 9.9% 36.7% -26.6% 22/96 40% Stocks 8.7% 35.9% -18.4% 19/96 20% Stocks 7.5% 40.7% -10.1% 16/96 100% Bonds 6.3% 45.5% -0.8% 20/96 VanguardStep 3. Most ETFs are index funds, meaning they merely aim to match the returns of a stock market index, although some target very narrow slices of the market, such as just tech stocks or just energy stocks.

While these events are out of our control, there are still steps you can take in 2023 to feel a little more confident and prepared with our finances. Annual Percentage Yield (APY) Earn up to 4.11% APYMinimum balance NoneMonthly fee NoneMaximum transactions NoneExcessive transactions fee NoneOverdraft fees N/AOffer checking account? Check your credit scoreChecking your credit score can be especially important if you plan on applying for a mortgage, loan, apartment or a new credit card later in the year. Experian Boost® Learn More On Experian's secure site Cost FreeAverage credit score increase 13 points, though results varyCredit report affected Experian®Credit scoring model used FICO® Score Results will vary. Bottom lineWhile 2022 was a financially tumultuous year with many twists and turns, there are steps every individual can take to walk into 2023 feeling a little more prepared.

☆ How to Build an Emergency Fund
▼ + stars: | 2022-12-26 | by ( ) www.wsj.com time to read: +8 min

“Covid really drove home the importance of having an emergency fund,” says Diana Linn, a wealth advisor in Newton, Mass. But the rest of setting up an emergency fund, from estimating your needs to opening an account, is relatively simple. Chen recommends multiple emergency funds, with different time frames and purposes: a short-term fund for any last-minute necessary purchase like a new car battery that you’d otherwise charge on a credit card; a midterm fund for repairs, like a new water heater; and a long-term emergency fund for when you lose your job. Decide how to reach your savings targetThe surest way to build up an emergency fund is to regularly put aside a portion of your earnings into an emergency savings account, preferably as an automatic debit from a checking account. Decide where to keep your emergency fundThere are several savings vehicles you can use for your emergency fund, both online and otherwise.

☆ 2023 should be a brighter year for the traditional 60/40 portfolio
▼ + stars: | 2022-12-21 | by ( Carmen Reinicke | ) www.cnbc.com time to read: +7 min

Investors who stuck to the traditional portfolio breakdown of 60% allocated to stocks and 40% allocated to bonds were hit hard this year as both asset classes shed value. Bonds also lost value for investors this year, going against the traditional correlation where they act as a hedge to stock market volatility. Still, most analysts don't expect the year to yield a worse performance than 2022 for the standard 60/40 portfolio. That bodes well for investors who still have a traditional portfolio balance. And even though the traditional 60/40 portfolio had a dismal 2022, investors shouldn't write it off.

Student loan debt has become such an issue that the Biden Administration has been attempting to cancel up to $20,000 in student debt per eligible borrower and has continually extended the student loan repayment pause. Ways employers are currently assisting with student debt management"Employers are increasingly offering student loan contribution plans as a direct way to help borrowers pay down student loan debt," Scruggs says. How other employers can help employees manage student loan debtOne of the simplest and most affordable ways employers can help employees is to share information on what employees need to know about their student loans. "There are many ways to help employees manage and pay down student loan debt. However, note that if you refinance federal student loans you'll lose federal protections, like the current student loan payment freeze and potential student loan forgiveness.

☆ 21% of investors don't think they pay investing-related fees. Here's why they're wrong — and how it costs them
▼ + stars: | 2022-12-19 | by ( Greg Iacurci | ) www.cnbc.com time to read: +6 min

Damircudic | E+ | Getty ImagesMore than a fifth of investors don't think they pay any fees for their investment accounts, an industry survey has found. An additional 17% of investors in the recent poll said they didn't know how much they paid in fees. These firms — whether an investment fund or financial advisor, for example — generally levy investment fees of some kind. 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.

☆ How to invest in cryptocurrency like a financial planner: 'Do so with caution'
▼ + stars: | 2022-12-08 | by ( Ryan Ermey | ) www.cnbc.com time to read: +1 min

Even if you don't directly work with a financial advisor, it could be worth paying attention to what they're saying about markets and investing. Take the recent announcement regarding cryptocurrency from the CFP Board, the professional organization for certified financial planners. Planners providing advice on crypto-related investments, the board ruled, are neither required to or barred from providing advice related to crypto, but "should do so with caution." If a group of financial professionals are treading carefully around crypto, it may make sense for you to follow suit. Here are the crypto risks that financial pros are most worried about, and how they're approaching crypto on behalf of their clients.

Insider's experts choose the best products and services to help make smart decisions with your money (here’s how). Welcome to Personal Finance Insider, a biweekly newsletter that connects you with the stories, strategies, and tips you need to be better with money. Financial planner Alex Alba told Insider it's important to pad your emergency fund, especially if you're worried about layoffs. Financial planner Pamela Capalad recommends a high-yield savings account for this purpose. High-yield savings are offered by major banks, and many accounts are currently paying 3% or more.

They fired their financial advisor and decided to manage their investments independently. "Investing in index funds had been around for decades but had been cast as a boring, predictable, and lazy approach to investing. While Julien's financial advisor wasn't intentionally malicious, Julien was shocked to learn that his financial advisor wasn't legally obligated to make recommendations in his best interest. That's index funds — kind of boring, but a safer place for your cash over the long run. "When you're investing in index funds, you're betting on the fact that overall a given index will continue to deliver favorable results," the couple writes.

☆ $2 billion Powerball jackpot winner: The 3 smartest moves to make first—and 1 thing to avoid
▼ + stars: | 2022-11-09 | by ( Mike Winters | ) www.cnbc.com time to read: +3 min

In fact, lottery winners are more likely to declare bankruptcy within three to five years than the average American, according to 2011 academic study. Get professional financial adviceHire a financial team consisting of a fiduciary financial planner, estate planning attorney and accountant "at a minimum," says Brady. A fiduciary financial planner can be found on the National Association of Personal Financial Advisors's website, Collado says. These tips can help people find a financial planner that's a good fit for their needs. But everyone's situation is different, which is why consulting a financial planner is a good first step.

On a live-streamed Twitter Spaces call, Elon Musk announced that he may add a high-yield savings feature to Twitter. Money earned from paywalled content would sit in the creator's account, which would function like a high-yield savings account. A high-yield savings account helps you earn passive incomeA high-yield savings account is a type of savings account that pays much higher interest rates than a regular savings account. Musk apparently plans on offering high-yield savings account to Twitter users who plan on keeping their cash there, once Twitter's content paywalls are established. The Tesla CEO's plans to add paywalled content, new payment systems, and a high-yield savings account could incite further backlash.

☆ 55% of Americans are behind on saving for retirement—and that's OK
▼ + stars: | 2022-11-04 | by ( Mike Winters | ) www.cnbc.com time to read: +5 min

Around 55% of Americans say they're behind on saving for retirement, a recent Bankrate survey found. She's had clients who didn't start seriously saving until their 40s who are now on track to comfortably retire. How to get your savings back on trackIf you want to catch up on saving for retirement, you'll first need a well-defined goal. To get a basic idea of how much you need, a retirement savings calculator is a good place to start. Since life is full of unexpected expenses, you can never have too much money put away for retirement, she says.

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☆ There's still time for big savers to use 'after-tax contributions' to funnel more into 401(k) plans for 2022
▼ + stars: | 2022-10-24 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

BartekSzewczyk | GettyAfter-tax versus Roth accountsAfter-tax contributions are different than Roth 401(k) plans. For 2022, if you're under 50, you can defer up to $20,500 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 $20,500 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.

☆ How to Find a Financial Advisor
▼ + stars: | 2022-10-21 | 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. Advisor fees and minimumsHow a financial advisor gets paid can be as important as how much you pay them because you want an advisor whose paramount consideration is your best interest, not their own, and whether or not that is the case is largely determined by how you pay them. 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.

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