Personal finance

katleho Seisa Lawmakers have diluted a retirement tax break popular among wealthy Americans, leading many to consider a strategy known as a Roth conversion for individual retirement accounts to try softening the blow. A Roth conversion involves the owner of a traditional IRA, which is funded with pretax contributions, moving that money into an after-tax

ferrantraite “Adulting” with your money. You’ve got this. Your money is like anything else you need to learn. It seems crazy complicated at first, then bit by bit you learn more, until you realize it’s more accessible than you thought. Even though the adult world has many confusing concepts, remember that most people are not

Just because the IRS is auditing fewer tax returns, don’t assume you can dupe the taxman. With much of the agency’s systems automated to spot certain discrepancies, and some parts of tax returns typically generating more scrutiny than others, the risk of hearing from the IRS still remains. “A lot of this is done by

You probably know you’re supposed to have money set aside for the unexpected. Now, a new online tool may help you figure out exactly how much you need.  Created by the JPMorgan Chase Institute and based on its recent research about income volatility among U.S. households, the tool lets you sort by income and age

Richard Sharrocks A case before the Supreme Court has the power dramatically reshape how the U.S. government polices financial fraud and other misdeeds against consumers — which many experts fear would weaken existing protections and expose the public to more harm. The case, which concerns the Consumer Financial Protection Bureau, could ultimately lead to the

With more and more student loan borrowers falling behind, it’s clear many people need a way to make their monthly bills more manageable. Enter income-driven repayment plans, which some 8 million borrowers are enrolled in. In theory, the plans are simple: Borrowers’ bills are capped at a portion of their income. Some payments wind up

wecolmia | Getty Images Morgan Stanley Wealth Management clients now have a new way to manage their cash, with the launch of the asset manager’s CashPlus account.  The new account aims to compete as an alternative to traditional banking. It is directed at the firm’s existing wealth management clients, who can open an account with

Thomas Barwick If you’re a Vanguard investor who is hoping to file your taxes early, you may be disappointed. Clients at The Vanguard Group who switched from the firm’s mutual fund platform to its brokerage account in 2019 will receive two sets of tax forms for that year, the company confirmed. These Form 1099s will

Gwen Merz of Fiery Millennials cites restaurant spending as an easy place to cut back and save big. Source: Gwen Merz Don’t forget the coffee. No need to give up avocado toast. People love to blame high-end coffee drinks as the reason you’re not rich, but maybe just as key is the latte in reverse.

Prince Harry, Duke of Sussex, and Meghan, Duchess of Sussex, leave Canada House on January 7, 2020, in London, England. (Photo by Samir Hussein/WireImage) Samir Hussein | WireImage | Getty Images Prince Harry and Meghan Markle are getting closer to severing financial ties with the Royal Family, but there’s one entity that will always be

Former Vice President Joe Biden (L) greets Sen. Bernie Sanders (I-VT) before the Democratic presidential primary debate at Drake University on January 14, 2020 in Des Moines, Iowa. Scott Olson | Getty Images Top Democratic presidential candidates all want to boost Social Security benefits. But two of the candidates — Sen. Bernie Sanders (I-Vt.) and

Tom Werner | DigitalVision | Getty Images Investing a pot of tax-free cash for medical expenses is a great idea, with apparently few takers. Health savings accounts, which are offered alongside high-deductible health-care plans, come with a bevy of tax benefits. You can contribute to an HSA on a pretax or tax-deductible basis and have

If you think bringing a new human into the world is daunting, wait until you see what he or she will do to your budget. It will cost a middle-income married couple an average of $233,610 to raise a child from birth through age 17, according to 2015 data from the U.S. Department of Agriculture.

Jose Luis Pelaez Inc | Getty Images Lawmakers passed a bill last week that would allow seniors to fight age discrimination in the workplace more easily — and that could help protect older Americans at a precarious time in their financial lives. The House of Representatives passed the Protecting Older Workers against Discrimination Act on

Anastasia Usenko Student debt is consuming an ever larger share of household budgets. Today, more than two-thirds of college graduates have student debt, compared with less than 50% in the early 1990s. And, back then, the average balance was $9,000 – now it’s $30,000. The typical monthly bill is nearly $400. Americans are more burdened

Tera Images If you play your cards right, small everyday purchases put on plastic can add up to big savings over time. That’s thanks to increasingly generous credit card cash-back rewards programs — provided you pay your bills promptly — according to one credit-card comparison website. In addition, the right card for you likely depends

Most American adults own life insurance, yet the buying process can be perplexing and pose traps for the unwary — and cause financial problems years down the road. Around 57% of adults in the U.S. own a life insurance policy, according to a joint study by Limra, a trade group, and Life Happens, a nonprofit

Tom Steyer speaks during the Democratic presidential primary debate at Drake University on January 14, 2020 in Des Moines, Iowa. Six candidates out of the field qualified for the first Democratic presidential primary debate of 2020, hosted by CNN and the Des Moines Register. Scott Olson | Getty Images Billionaire Tom Steyer is calling for

Getty Images Earlier this month, scores of high school seniors submitted their applications to college. Now comes the worst part: waiting. In the wake of a college admissions scandal and as the super-low admission rate at many top colleges receives widespread attention, the business of getting in to college is more intense than ever. However,

Tip 1: Put your savings on autopilot When it comes to saving, the first step is to make it a habit. Many financial advisors recommend beginning with an emergency fund, which is the key to keep from reaching for a credit card when something unexpected pops up, such as a broken appliance or a medical