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☆ What a record 8.7% Social Security cost-of-living adjustment could mean for taxes on benefits
▼ + stars: | 2022-10-20 | by ( Lorie Konish | ) www.cnbc.com time to read: +5 min

Halfpoint | Istock | Getty ImagesRetirees who rely on Social Security benefits for income will get some relief from record high inflation when an 8.7% cost-of-living adjustment kicks in next year. How Social Security benefits are taxedSocial Security benefits are taxed based on a formula known as "combined" or "provisional" income. That is calculated by taking your adjusted gross income and adding non-taxable interest and half of your Social Security benefits. Taxes on Social Security benefits apply to single taxpayers starting with $25,000 in combined income, and married taxpayers starting with $32,000 in combined income. watch nowFor individuals with more than $34,000 in combined income and couples with over $44,000, up to 85% of their Social Security benefits may be taxed.

☆ Americans think you need $1.7 million to retire comfortably—here's how much you need to save each month to get there by 65
▼ + stars: | 2022-10-20 | by ( Cheyenne Devon | ) www.cnbc.com time to read: +1 min

On average, American workers think they'll need $1.7 million saved for retirement, but a little less than half believe they're likely to meet their savings goals, according to a recent Charles Schwab study. That's understandable: Financial planners typically recommend saving between 10% and 15% of your gross annual salary for retirement, which is no small feat. Workers with employer-sponsored retirement plans only contribute around 7% of their income toward their retirement fund on average, according to Vanguard's "How America Saves 2022" report. With this in mind, CNBC calculated how much you'd need to put away to save $1.7 million by 65, as well as how much you'd need to earn to accomplish this without saving more than 15% of your income. Here's how much you need to put away each month to save $1.7 million by 65.

I know I'll need passive income to support myself if I want to retire early. I asked financial planners who work with millionaires which passive income streams are most lucrative. That's why financial planner Darren Colananni says it's one of the most common passive income streams among millionaires. "You can get a tax deduction on the rental income by depreciating the property," which means deducting the cost of buying or improving a rental property, says Colananni. Social Security, collected strategicallyA passive income stream that most American workers get when they retire, Social Security, is one that millionaires also bank on, according to financial planner Scott Sturgeon.

☆ Citizens is targeting wealthy clients with the launch of a new private bank. Here's how the firm is beefing up its wealth management business.
▼ + stars: | 2022-10-11 | by ( Carter Johnson | Hayley Cuccinello | ) www.businessinsider.com time to read: +7 min

On Tuesday, Citizens said it plans to launch a new private bank by the end of the year. Citizens Private Client will cater to customers with $200,000 more in deposits or investments. Citizens Private Client is intended to retain these customers as their financial needs become more complex. Private banking is a profitable business with relatively stable revenue that is often based on fees. The new private bank program is the latest step in Citizens' strategy to beef up its wealth management offerings.

I want to retire before I'm 50 — I'm in my 30s now — so I asked financial planners how to mitigate risk. In order to make sure I'm managing as much risk now as possible, here's what financial planners say I need to consider if I want to retire early as a millionaire. As I continue to grow my investment portfolio, financial planner Evon Mendrin says that it's a good idea to diversify my portfolio even further to help with risk. Secure the right insuranceWhen planning for the future, it's easy to forget what we need right now to handle any potential financial emergencies. By the time you reach 50, either have a plan for long-term care out of your retirement funds or a long-term care insurance policy in place."

For years, the LGBTQ+ community has had to focus more on survival than wealth-building. Why we need to build wealth in the LGBTQ+ communityIf you hear words like "wealth" and "investing" and cringe, you're not alone. Here's one: Wealth in our culture means security and power, and the LGBTQ+ community can wield those to make a difference. Here are some tips for building wealth within the LGBTQ+ community. Search for fee-only, fiduciary advisors in your ZIP code, and filter for terms like "LGBTQ family."

☆ The CNBC FA 100 ranking recognizes advisory firms that help clients navigate their financial lives
▼ + stars: | 2022-10-04 | by ( Kelli Grant | Cfp | ) www.cnbc.com time to read: +4 min

The top-ranked advisors on the CNBC list have an average 30 years in business and collectively have more than $300 billion in assets under management. The CNBC FA 100 recognizes those advisory firms that best help people navigate their financial lives. Working with an advisor has financial benefitsThe pandemic spurred consumer interest in working with a financial advisor. Yet reports indicate that many consumers aren't thinking about an advisor as their first choice for financial help. How, and how much, you pay for financial advice can also vary widely by advisor and the scope of services.

High-yield savings accounts can earn significantly more interest on cash you need in the short term. Dozens of banks offer high-yield savings accounts, but we compared three of the most popular. To help out, we compared three of the most popular high-yield savings accounts on offer today: the Ally High Yield Savings Account, a favorite among financial planners and super savers; , investment bank Goldman Sachs' online savings account; and the Wealthfront Cash Account by the popular robo-advisor. Below you'll find each of these high-yield savings accounts compared on a variety of metrics. That's because interest rates on savings accounts fluctuate depending on inflation and the government's interest-rate benchmark.

☆ YouTubers are pushing dodgy crypto investment advice. Here’s why you should ignore it.
▼ + stars: | 2022-09-26 | by ( Rob Price | Meghan Morris | ) www.businessinsider.com time to read: +15 min

Together, these revenue streams mean cryptocurrency influencers profit off their viewers no matter which way the market turns. Of course, crypto YouTube is a far cry from the regulated world of traditional finance. Armstrong told the Post that he made "maybe close to a million" from before dropping sponsored content in January 2022. A price list leaked by ZachXBT appears to show that dozens of small crypto influencers also have menus for similar undisclosed deals. But with little regulatory oversight, crypto influencers show little sign of slowing down — despite the precipitous decline of the crypto market.

☆ A CFP who was rated as one of America's top financial planners in 2021 explains why employees who get restricted stock options should sell as soon as their lock-up ends
▼ + stars: | 2022-09-22 | by ( A.J. Cohen | ) www.businessinsider.com time to read: +5 min

If you've received a job offer that includes equity-based stock options, you may have been offered something called restricted stock units (RSUs). Stock options are more commonly offered, and involve the company giving employees the ability to buy company stock at a discounted price, usually referred to as "strike price" or "exercise." "Research has shown that this is best achieved by receiving market performance via low cost index funds." Index funds are passively managed, low-cost investment funds that places the investor's assets to a portfolio of stocks that are meant to mimic a particular financial market. Index funds are popular with a lot of people striving for early retirement due to their consistency and the longevity on those returns.

☆ While inflation causes many workers and consumers to panic about the economy's future, author and financial planner Roger Ma tells his clients not to panic. Here's why.
▼ + stars: | 2022-09-16 | by ( A.J. Cohen | ) www.businessinsider.com time to read: +7 min

Proactive planning is about keeping your eye on goals and being flexible if circumstances change. In addition to the rising cost of goods, inflation also forces the Federal Reserve to hike up interest rates in an attempt to slow it down. Higher interest rates can make it more difficult for people to buy homes or take out new loans. When you have the Fed raising interest rates, they're trying to control inflation and put the brakes on a red-hot economy," Ma said. Once you've done that, you can go full steam ahead into proactive financial planning.

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A Registered Investment Advisor (RIA) is a professional firm that manages the assets of clients and offers investment advice. During your search, you may have learned about Registered Investment Advisor (RIAs). And how does a Registered Investment Advisor differ from all those other folks offering financial advice? What is a Registered Investment Advisor (RIA)? What does the "registered" in Registered Investment Advisor mean?

☆ A 40-year-old software developer who built a hugely popular early-retirement calculator says 2 'boring' tips are helping her reach financial independence
▼ + stars: | 2022-07-14 | by ( A.J. Cohen | Reporter | Read More | ) www.businessinsider.com time to read: +5 min

She created an early-retirement simulator that's been used over 500,000 times in the last year. When asked what methods the couple has used to near their FIRE goal, Boland said they did it "the boring way." She stressed that it's particularly important to keep housing costs low, but understands that this can be a big challenge right now. Shared housing could help keep costs down — for example, splitting costs with family members or having long-term, reliable roommates. Budget for a monthly investment contribution and stick to itAfter you slash your living costs, the next step is simple: Invest what you've saved.

"I became a financial advisor to mentor my clients through all financial aspects of their lives," says John Stoj, investment advisor representative and founder of Verbatim Financial. Traditional financial advisors: These include Certified Financial Planners (CFP), brokers, Registered Investment Advisors (RIA), and wealth managers. Find a financial advisor near youJust about anyone can benefit from working with a financial advisor. 7 questions to a financial advisor before you hire themBelow are a few of the most important questions to ask a financial advisor you're considering hiring. The financial takeawayConsulting with a financial advisor is a smart way to make headway in achieving both short-term and long-term financial goals.

A financial advisor is a professional who provides clients with guidance pertaining to financial goals, mortgages, insurance, retirement, investing, and general financial management. "I became a financial advisor to mentor my clients through all financial aspects of their lives," says John Stoj, founder of Verbatim Financial. "In an ideal world, a financial advisor should look at your overall financial picture and help you build a plan to get to and through retirement," says Mary Lyons, financial advisor and founder of Benchmark Income Group. 7 questions to a financial advisor before you hire themBelow are a few of the most important questions to ask a financial advisor you're considering hiring. How much a financial advisor cost varies from advisor to advisor, and can look different depending on how they charge you.

Persons: —, it's, John Stoj, Here's, John Hagensen, Mary Lyons, Lyons, they're, Fee, you'll Organizations: Service, Financial Planners, Investment, NASAA, RIA, National Association of, Financial, Creative, Benchmark Income, CPA, Chevron, Consulting

I want to make sure I have passive income coming in if a recession hits, so I asked experts. Financial planners recommend investing in self-storage and other real estate, including REITs. Over the years, I've made passive income by selling online courses and ebooks, and doing affiliate advertising on content I create for my own website or social media channels. That's why I asked financial experts to share some recession-proof passive income streams that might be worth considering. "The passive income derived from term rents and leases is recession-proof and has a low correlation to market volatility," says Nicola.

Persons: I'm, I've, Susannah Snider, it's, Snider, George Nicola, Nicola, Tammy Trenta, Marli Erickson, Erickson, Joseph Hogue, Hogue, Barnes, Noble Organizations: Financial, Service, Invest, Amazon Direct Publishing, Barnes, Noble Press, Apple Locations: Wall, Silicon

There's some cliché financial advice I've heard over and over that financial planners say to ignore. "Renting is throwing money away" and "a credit card balance is good for your credit score" are examples. That made me wonder if frequently passed-along financial advice always rings true. Crypto is the futureLately, all the financial advice my friends are giving me has to do with cryptocurrencies. "Since credit utilization is responsible for 30% of your credit score, it's a good idea to keep it as low as you can."

☆ 5 mistakes millennials are making when building their financial life
▼ + stars: | 2022-04-14 | by ( Kunyi Yang | ) edition.cnn.com time to read: +5 min

Our seven-part guide has helpful hints for paying off student loans, negotiating your salary, building credit, and more. The road to financial independence is not easy, and usually requires patience and diligence early on. Here are the five most common mistakes young adults are making when building their financial lives:1. Waiting too long to start retirement savingPlanning for retirement is about finding a balance between putting money aside for later and having enough to pay for stuff now. “Social media creates the desire to keep up with others,” said Nick Reilly, a certified financial planner based in Seattle.

A financial planner advises clients on cash flow, spending, savings, taxes, retirement, estate planning, and more. I'm not in the best financial shape, so I thought meeting with a financial planner was terrifying and embarrassing. I was paired with a financial planner who specializes in LGBTQ+ wealth, and I felt safe and supported. In an effort to bounce back from student loan debt and past financial hardships, I decided to hire my own financial planner to see what they had to offer. To my surprise, my financial planner was just willing to meet me where I am in my relationship with money.

I'm not alone, according to financial planners who shared with me big mistakes some clients made this year. I knew I wasn't alone in that, which is why I asked four of the best financial advisors to share the top money mistakes they saw clients make in 2021. Financial planner Scott Turner said this was a common mistake this year that he saw with his own clients. Perhaps there's extra cheer in this air this year because according to financial planner Chuck Zuzak, I'm not alone with that mistake. Financial planner R.J. Weiss said that prioritizing instant gratification when it comes to your money is a mistake.

Persons: I've, I'm, —, Scott Turner, Turner, Chuck Zuzak, Zuzak, R.J, Weiss, Olivia Summerhill Organizations: Service, Financial, Gamestop Locations: Summerhill

A fee-only financial advisor will be one you'll come across during your search. What is a fee-only financial advisor? A fee-only financial advisor is an advisor that's paid on a set rate based on the services they provide a client, rather than being paid based on commission. The financial takeawayWorking with a fee-only financial advisor can be a great way for clients to get fiduciary financial advice that's in their best interest. "Working with a fee-only advisor minimizes conflicts of interest, but just because someone is a fee-only advisor does not inherently mean they have the particular expertise you are looking for," says Brandon Renfro, CFP and owner of Belonging Wealth Management.

Some money decisions call for reinforcement from a financial planner, who can help organize your overall financial picture, or focus on specific financial needs. 7 reasons to hire a financial plannerHere are 7 reasons you should consider hiring a financial planner. If this sounds like you, consider consulting a financial planner to formulate an investment strategy that satisfies your risk tolerance. There are a few things you should know about any financial planner you're considering in advance of booking an appointment. And by working together with a financial planner, you can work your way to achieving your financial goals — and financial freedom.

Life insurance can help build wealth in the Hispanic community, but first there needs to be trust. Insider spoke to Silvia Tergas, a financial planner with Prudential, about how life insurance plays a role in financial wellness in the Hispanic community. 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. "Financial planning begins and ends with the client's need for life insurance," said Tergas, "and at end of day, life insurance is risk management." She said based on your cash flow and potential resources, you should balance the need for permanent life insurance, which is more expensive than term life insurance.

Have a blend of permanent and term life insuranceThere are two types of life insurance: permanent life and term life. She recommends blending permanent and term life insurance, because permanent life insurance is a tool to build wealth and leave a legacy in the Black community. She said, "If you can't afford permanent life insurance, then get a term life insurance policy with the goal of converting it before the end of the policy." Convert your term life insurance to a permanent policy to prepare for retirementGlenn notes that life insurance is the optimal way to prepare for retirement. When you make the conversion from term life to permanent, understand that there are different types of permanent life insurance policies, like whole, universal, and variable life.

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