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☆ How many credit cards should you have? The answer isn’t zero, say experts
▼ + stars: | 2023-06-24 | by ( Greg Iacurci | ) www.cnbc.com time to read: +4 min

Eighty-two percent of American adults had a credit card in 2022, according to the U.S. Federal Reserve. Benefits to having more than one credit cardHowever, there can be drawbacks to having just one credit card. In addition, having a second credit card, or more, can help build a person's credit utilization ratio, said Curtis, founder and CEO of Curtis Financial Planning. Credit utilization is an important determinant in one's credit score and having one that's too high can reduce your score. Having more than one card raises one's overall credit limit, and with responsible use, can reduce one's credit utilization ratio.

Persons: Jose Luis Pelaez, Ted Rossman, Strong, cardholders, Bruce McClary, McClary, Rossman, Cathy Curtis, Curtis, Xavier Lorenzo, Cardholders Organizations: Jose Luis Pelaez Inc, CreditCards.com, Consumer Federation of America, U.S . Federal, National Foundation, Credit, Mastercard, Curtis, Curtis Financial

☆ Americans’ buying power rose for first time since March 2021 amid falling inflation
▼ + stars: | 2023-06-22 | by ( Greg Iacurci | ) www.cnbc.com time to read: +3 min

Images By Tang Ming Tung | Digitalvision | Getty Images"This is clearly a function of inflation starting to come down," Terrazas said. 'Unprecedented' pay jumps during pandemicWage growth started to spike in 2021 as workers enjoyed the benefits of a hot job market. In some cases, workers' pay growth was strong enough to outrun inflation's impact — especially for those who quit their jobs for higher-paying gigs elsewhere. Meanwhile, wage growth has also declined but at a slower pace — translating to a net boost to Americans' financial well-being in May relative to last year. These data sets are more inclusive than that of wage growth.

Persons: Tang Ming Tung, Terrazas, Julia Pollak, Pollak, Mark Zandi, Aaron Terrazas, Zandi Organizations: ZipRecruiter, CPI, . Bureau, Moody's, Federal Reserve Bank of New Locations: U.S, Federal Reserve Bank of New York

☆ 4 ways 'anchoring bias' can hurt you financially
▼ + stars: | 2023-06-21 | by ( Greg Iacurci | ) www.cnbc.com time to read: +3 min

A 401(k) match can be an unintentional anchor"Anchors" can be intentional or unintentional, said Klontz, a member of CNBC's Advisor Council. A 401(k) match can serve as an unintentional anchor. Companies choose the respective structure of their 401(k) match — and that structure may inadvertently influence a worker's savings rate. For example, a company may opt to pay a match worth up to 3% of a worker's salary. Encouraging investors to start with a micro-investment "leads to lower wealth accumulation in this brokerage account due to anchoring bias," according to the paper.

Persons: Klontz, they'll, Grill, Tim Vipond, Itzkowitz Organizations: Companies, Google, Corporate Finance, Bank, Getty, Puerto, CFI Education Locations: Hawaii, Puerto Rico

☆ Auto insurers are raising rates, even as car prices ease. 'The pandemic has been really disruptive to the auto repair business,' economist says
▼ + stars: | 2023-06-16 | by ( Greg Iacurci | ) www.cnbc.com time to read: +3 min

About a third (31%) of U.S. auto insurance customers say they experienced a rate increase during the past year, according to a recent study by J.D. Many factors have conspired to push up the cost of car repairs, which ultimately feeds through to insurance prices, economists said. "The pandemic has been really disruptive to the auto repair business," he said. Auto insurers lost 12 cents on each dollar of customer premiums paid in 2022, on average, according to J.D. Vehicle prices moderate after pandemic-era surgeFurther, vehicle prices began rising at a rapid clip in the first half of 2021.

Persons: Mark Zandi, Power, Zandi, Charlie Chesbrough, Chesbrough Organizations: Moody's, U.S . Department of Transportation, Auto, Cox Automotive, U.S . Federal Reserve Locations: ., U.S

☆ 'We’re all crazy when it comes to money,' advisor says. How to manage your psyche for better finances
▼ + stars: | 2023-06-15 | by ( Greg Iacurci | ) www.cnbc.com time to read: +2 min

D3sign | Moment | Getty ImagesHuman psychology and money don't mix well. Left unchecked, our psyches can easily sabotage financial decision-making, behavioral experts said during a panel discussion at CNBC's Financial Advisor Summit. "We're all crazy when it comes to money," said Brad Klontz, managing principal of YMW Advisors in Boulder, Colorado, and a founder of the Financial Psychology Institute. Additionally, feelings of shame, such as thinking we have too much or too little money, are pervasive, experts added. It's kind of like a thumbprint, so it's very unique," added Cherry, a CFP and member of the CNBC Financial Advisor Council.

Persons: Brad Klontz, Klontz, Preston Cherry, Charles Schwab, Cherry Organizations: CNBC's Financial, YMW Advisors, Financial, Institute, CNBC Locations: Boulder , Colorado, Green Bay , Wisconsin

watch nowWhat the federal funds rate means for youWage growth hasn't been able to keep pace with higher prices for many Americans. Sarah Silbiger | ReutersThe federal funds rate, which is set by the central bank, is the interest rate at which banks borrow and lend to one another overnight. Here's a breakdown of how that affects consumers:Credit cardsSince most credit cards have a variable rate, there's a direct connection to the Fed's benchmark. As the federal funds rate rose, the prime rate did, as well, and credit card rates followed suit. Today's credit card rates are likely as high as they've been in decades.

Persons: Philipson, Sarah Silbiger, that's, Matt Schulz, they're, Freddie Mac, Sam Khater, Freddie Mac's Organizations: Eccles Federal Reserve, Washington , D.C, Reuters, LendingTree, Treasury, Istock, Getty, U.S . Department of Education Locations: Washington ,

☆ Why economists say it's a near certainty that housing inflation will soon fall
▼ + stars: | 2023-06-14 | by ( Greg Iacurci | ) www.cnbc.com time to read: +3 min

That gives housing an outsized influence on the overall direction of inflation data. Housing inflation has been stubbornly high for months, according to CPI data. But economists think it has peaked and is on the precipice of a reversal. "I know this with about as high a degree of confidence as one could have," Mark Zandi, chief economist at Moody's Analytics, said of falling housing inflation being near at hand. The latest CPI reading, issued Tuesday, showed a monthly increase in shelter inflation, to 0.6% in May from 0.4% in April.

Persons: Richard Newstead, Mark Zandi, Andrew Hunter, Jason Furman, Obama Organizations: Moody's, Capital Economics, CNBC, Finance, Social Security, U.S . Bureau of Labor Statistics, BLS, Harvard University, White House Council, Economic Advisers, Twitter, CPI

☆ Here's the inflation breakdown for May 2023, in one chart
▼ + stars: | 2023-06-13 | by ( Greg Iacurci | ) www.cnbc.com time to read: +5 min

The CPI is a key barometer of inflation, measuring prices of anything from fruits and vegetables to haircuts and concert tickets. Where consumers saw inflation, deflation in MayConsumers saw gasoline prices decline 5.6% between April and May, according to the CPI report. "Energy prices at this time last year were just absurd," Leer said. watch nowBut food and energy prices can be volatile. "The progress on core inflation has stalled out in recent months," said Greg McBride, chief financial analyst at Bankrate.

Persons: Michael M, Leer, Greg McBride, They're, Ben Bernanke, Olivier Blanchard Organizations: Lincoln Market, Santiago, Getty, U.S . Bureau of Labor Statistics, Consumers, CPI, Bureau of Labor Statistics, BLS, U.S . Federal Reserve, Peterson Institute for International Economics, Bankrate Locations: Prospect, Brooklyn, New York City, U.S, Ukraine

☆ The rich often misjudge the potency of their retirement savings, report finds
▼ + stars: | 2023-06-12 | by ( Greg Iacurci | ) www.cnbc.com time to read: +5 min

Thirty-two percent of high-income households are "not worried enough" about their retirement risk, a larger share than the 26% of low- and middle-income earners. The Center for Retirement Research uses the survey data to construct a National Retirement Risk Index. The index models retirement preparedness according to a range of assets like Social Security, pensions, home equity and employer-sponsored retirement plans, such as a 401(k). Anqi Chen assistant director of savings research, Center for Retirement Research at Boston CollegeIn 2019, 47% of American households were at risk of not being able to maintain their standard of living in retirement, according to the index. Why the rich are more likely to underestimate riskWestend61 | Westend61 | Getty ImagesNineteen percent of U.S. households correctly identify as being at risk of falling short in retirement, according to the center's report.

Persons: Anqi Chen, Chen, they're, David Blanchett, Louis Organizations: Getty, Center for Retirement Research, Boston College, Finance, GOP, Federal Reserve's Survey, Consumer Finances, Retirement Research, Social Security, for Retirement Research, Westend61, Prudential Financial, Federal Reserve Bank of St, Center for Locations: U.S, PGIM

☆ 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

☆ Use this 401(k) investing strategy to calm your market jitters
▼ + stars: | 2023-06-05 | by ( Greg Iacurci | ) www.cnbc.com time to read: +1 min

Jackyenjoyphotography | Moment | Getty ImagesSteady contributions make investing 'more palatable'Among the primary benefits of dollar-cost averaging: It strips the emotion out of investing. For example, the fear of losing money can trigger harmful behavior like trying to time the market, akin to guessing the best time to buy and sell. People often sell out of fear when stocks decline in value, and then miss out on potential gains when stocks rebound, the regulator said. "If you're always looking at a reason not to invest, you're missing out on long-term wealth accumulation. Investing smaller sums of money in chunks makes it easier to stomach a poorly timed investment, according to Charles Schwab.

Persons: Sean Deviney, There's, Charles Schwab Organizations: Investors Locations: Fort Lauderdale , Florida, Ukraine

☆ Time is running out to repay Covid-era 401(k), IRA withdrawals — and claim a tax refund
▼ + stars: | 2023-06-03 | by ( Greg Iacurci | ) www.cnbc.com time to read: +2 min

Hundreds of thousands took distributionsData suggests hundreds of thousands of people took coronavirus-related distributions — and that few have repaid it. Nearly 6% of investors in workplace retirement plans took a CRD in 2020, according to internal administrative data from Vanguard Group. That amounts to about 268,000 people out of 4.7 million retirement investors for whom Vanguard provided administrative services that year. Amended return necessary to claim refundInvestors who repay all or part of their CRD by the three-year deadline must file an amended tax return to claim a tax refund, according to the IRS. This person would have to file an amended tax return for each year.

Persons: Sean Deviney, Deviney Organizations: Vanguard Group, Vanguard, IRS, Investors Locations: Fort Lauderdale , Florida

☆ Measuring inflation can be tricky and quirky. Here are 3 examples
▼ + stars: | 2023-06-01 | by ( Greg Iacurci | ) www.cnbc.com time to read: +5 min

HousingRichard Newstead | Moment | Getty ImagesHousing is perhaps the most consequential category in the consumer price index, a key inflation barometer. But Covid-19 warped that dynamic: Housing costs shot up but have slowed and even started to fall in some areas, economists said. Overall inflation is expected to slow sharply during the second half of the year as the CPI incorporates the housing price cooldown, economists said. The government doesn't calculate health insurance inflation by measuring consumers' direct costs, such as monthly premiums. Health insurance inflation readings may flip positive in fall 2023 and persist into 2024 due to this dynamic, Zandi said.

Persons: Housing Richard Newstead, Zandi, Price, Mark Zandi, Andrew Hunter, Hunter, There's, Jordi Mora Igual Organizations: Housing, Capital Economics, U.S . Bureau of Labor Statistics, BLS, CPI, Health, Images, Kaiser Family Foundation, Consumers

☆ The ‘great resignation’ — a trend that defined the pandemic-era labor market — seems to be over
▼ + stars: | 2023-05-31 | by ( Greg Iacurci | ) www.cnbc.com time to read: +2 min

Quits started to surge in early 2021 as Covid-19 vaccines rolled out to the masses and the U.S. economy started to reopen. Business' demand for workers outstripped the supply of people looking for a job, giving workers an unprecedented amount of power in the labor market. We are much closer to the labor market we had in 2019, which was hot but not overheating. Conditions are still favorable for job seekersIt's unclear if the labor market will cool further from here. While quits and job openings told different labor market stories in April, quits are generally a less volatile and more reliable indicator, economists said.

Persons: Quits, Julia Pollak, Pollak, Daniel Zhao Organizations: Getty Images Workers, Business, Employers, Glassdoor, Federal, BLS Locations: U.S

☆ Thanks to vesting schedules, it can take up to 6 years for workers to own their 401(k) match
▼ + stars: | 2023-05-26 | by ( Greg Iacurci | ) www.cnbc.com time to read: +1 min

One important note: An employee always fully owns their own contributions. watch nowMore than 44% of 401(k) plans offer immediate full vesting of a company match, according to the PSCA survey. Cliff vesting grants ownership in full after a specific point. For example, a saver whose 401(k) uses a three-year cliff vesting fully owns the company match after three years of service. For example, someone who gets 40% of a $5,000 match can walk away with $2,000 plus 40% of any investment earnings on the match.

Persons: Iparraguirre, Cliff vesting Organizations: Federal

☆ IRS flagged more than 1 million tax returns for identity fraud in 2023
▼ + stars: | 2023-05-17 | by ( Greg Iacurci | ) www.cnbc.com time to read: +2 min

The IRS flagged more than 1 million tax returns for potential identity theft during the 2023 tax season, according to the U.S. Department of the Treasury, signaling that such fraud continues to be a pervasive problem for taxpayers. The IRS had confirmed 12,617 of the tax returns were fraudulent as of the same date in March, Treasury reported. That figure is up from 9,626 tax returns at the same time in 2022. Identity theft was the most prevalent type of fraud that consumers reported to the Federal Trade Commission in 2022. The IRS increased the number of filters it uses to identify potentially fraudulent tax returns since the 2022 tax season.

☆ Americans think gold beats stocks as a long-term investment. Advisors disagree: 'It's more like a speculation'
▼ + stars: | 2023-05-17 | by ( Greg Iacurci | ) www.cnbc.com time to read: +1 min

Twenty-six percent of Americans ranked gold as the best long-term investment in 2023, almost double the 15% who thought so in 2022, according to a recent Gallup poll. The share surpassed that of stocks: 18% of Americans ranked stocks as the top long-term holding, down from 24% last year, according to the survey. It was the first time since 2013 that their perception of stocks was below that of gold. "As a long-term investment, [gold] is a very poor solution," said Charlie Fitzgerald, a certified financial planner and principal of Moisand Fitzgerald Tamayo in Orlando, Florida. Stocks beat gold over the long term

☆ 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.

☆ Social Security, Medicare, federal salaries: What payments may be delayed in debt ceiling standoff
▼ + stars: | 2023-05-13 | by ( Greg Iacurci | ) www.cnbc.com time to read: +6 min

Among the ramifications of a debt ceiling standoff, any payment issued by the federal government — like Social Security, Medicare, tax refunds, military paychecks and ample others — may be delayed. Alex Wong | Getty Images News | Getty ImagesThe U.S. is in this situation due to a political standoff tied to the debt ceiling, also known as the debt limit. Congress periodically raises or temporarily suspends the debt ceiling to avoid the other scenario: a default on the national debt and other federal payments. Here's the current problem: The country hit the debt ceiling — currently $31.4 trillion — in January. Federal Reserve officials alluded to the likelihood of prioritizing bondholders in a 2011 meeting that followed an earlier debt ceiling episode.

☆ Travel costs fell in April's inflation reading. The dip may be short-lived, experts warn
▼ + stars: | 2023-05-11 | by ( Greg Iacurci | ) www.cnbc.com time to read: +4 min

Typical trip costs increased by 9% in the first quarter of 2023, according to the NerdWallet Travel Price Index, which includes prices for flights, hotels, car rentals and dining out. When expressed in dollar terms, travelers would have paid an extra $180 per person for a $2,000 trip, NerdWallet found. "As has been the case ever since the onset of the pandemic, travel prices have been volatile," said Sally French, a travel expert at NerdWallet. "I think you're going to enjoy it a little bit more," Griscavage said of off-season travel to popular cities. Use your rewardsMany people built up frequent flier miles during the pandemic by using their credit cards that carry travel rewards benefits, Josephs said.

☆ Why missing one $2 expense could derail your whole national park trip
▼ + stars: | 2023-05-10 | by ( Greg Iacurci | ) www.cnbc.com time to read: +5 min

What this means: Travelers can't necessarily bank on showing up spontaneously to a national park and getting the experience they desire. Record park visitation spurred reservationsTourists crowd into the Midway Geyser Basin on July 14, 2021 at Yellowstone National Park, Wyoming. One — Hot Springs National Park in Arkansas — saw record visitors last year. Overall visits to national parks jumped by 5% in 2022 versus the year prior, to 312 million recreation visits. These national parks require vehicle reservationsTraffic heading into Yosemite Village on Oct. 6, 2019, in Yosemite National Park, California.

☆ Here’s the inflation breakdown for April 2023 — in one chart
▼ + stars: | 2023-05-10 | by ( Greg Iacurci | ) www.cnbc.com time to read: +3 min

Where consumers saw prices fall in AprilConsumers saw average prices decline outright in April in certain categories. Housing — the largest component of the average household's budget — was the largest contributor to inflation in April, the BLS said. watch now"It looks like inflation in the [shelter] category has peaked," Andrew Hunter, senior U.S. economist at Capital Economics, said. Overall, households are faring much better than they were months ago relative to inflation in staples like food, energy and housing, according to Zandi at Moody's Analytics. Why inflation surged to multi-decade highsConsumer prices began rising rapidly in early 2021 as the U.S. economy started to reopen after the pandemic-related shutdown.

☆ Summer travel: How to save during a busy, expensive season
▼ + stars: | 2023-05-07 | by ( Greg Iacurci | ) www.cnbc.com time to read: +1 min

Alexander Spatari | Moment | Getty ImagesThe following is an excerpt from "This week, your wallet," a weekly audio show on Twitter produced by CNBC's Personal Finance team. Here are some insights and ways to save on your trip, shared during a recent conversation with Griscavage, CNBC airline reporter Leslie Josephs and CNBC associate personal finance editor Ken Kiesnoski about summer travel. To that point, airline officials have indicated in company earnings reports that they expect a "monster summer," Josephs said. Use your rewardsMany people built up frequent flier miles during the pandemic by using their credit cards that carry travel rewards benefits, Josephs said. Now is a good time to use — and not hoard — those benefits, especially since it's expensive to buy a flight in cash.

☆ What is the debt ceiling? Why it's important and how it affects you
▼ + stars: | 2023-05-04 | by ( Greg Iacurci | ) www.cnbc.com time to read: +5 min

To avoid that outcome, lawmakers are trying to find a path forward to raise or suspend the debt ceiling, which would enable the U.S. to pay its bills on time. What is the debt ceiling? The debt ceiling is the amount of money the U.S. Department of the Treasury is authorized to borrow to pay the nation's bills. The debt ceiling wouldn't be an issue if U.S. revenues — i.e., tax proceeds — exceeded its costs. Congress can raise or temporarily suspend the debt ceiling in the interim to avert a debt-ceiling crisis — something lawmakers have done many times in the past.

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