DINARRECAPS8 4/15/25 DINARRECAPS8 4/15/25

77% of Americans Plan To Use Tax Refunds for Essential Expenses: 5 Tips for Using Yours

Dawn Allcot Tue, April 15, 2025 GOBankingRates

For Americans who usually receive a tax refund, that spring windfall sometimes helps cover a treat, like a family vacation, a pool or new patio furniture. But for a majority of people this year, their tax refund is going toward necessities, according to a study from Talker Research, commissioned by TaxSlayer.

The study found that 77% of Americans will spend their tax refund on necessities this year. What’s on the top of their list? More than half (52%) of those polled said the money will go toward rent or utility bills. Meanwhile, 44% will put the money toward groceries and essential goods. Thirty-seven percent are using the cash to pay down credit card debt, with 56% of that group still paying off holiday bills.

Dawn Allcot Tue, April 15, 2025 GOBankingRates

This is common — and nothing to be ashamed of — in today’s financial environment.

“If your refund is going straight to keeping the lights on and food in the fridge, that probably says more about the cost of living than your decision-making,” said Taylor Kovar, CFP, founder and CEO of 11 Financial. “That kind of pressure is real.”

However, there are ways to plan ahead to remove some of that financial sting throughout the rest of 2025. Try spending what you can of your tax refund strategically to try to get ahead.

Look at Your Spending Patterns

If you’re consistently running behind on fixed expenses, like your car loan, rent or utility bills, you should “zoom out and look at the patterns,” Kovar advised. “It’s worth seeing if there’s a monthly expense that’s quietly draining your budget.”

See if you can change due dates on bills so everything doesn’t hit your bank account at the same time too. If you have good credit, consider consolidating some of your credit card debt to a 0% interest credit card that you can aim to pay off within 12 to 18 months.

Sometimes, small tweaks like changing due dates and reducing interest payments can provide the breathing room you need.

Use Your Refund To Build a Small Cushion

If you can, deposit part of your refund into a high-yield savings account to provide a buffer for months when emergency expenses crop up or cash gets tight.

“The goal isn’t perfection,” Kovar said. “It’s just trying to make the months ahead feel a little less like a juggling act.”

Plan for the Holidays

DINARRECAPS8 4/15/25 DINARRECAPS8 4/15/25

What Does A Financial Advisor Do And When Should You Get One?

Brian Baker, CFA Mon, April 14, 2025 Bankrate

Most people are aware of financial advisors and may even hire one at some point in their lives, but what exactly do financial advisors do? Financial advisors provide advice and guidance on a variety of financial issues you’ll encounter over the course of your life such as investments, retirement planning, insurance and even taxes.

Here’s what else you should know about financial advisors, including the advantages and disadvantages of using one and when you should consider hiring one.

What Does A Financial Advisor Do And When Should You Get One?

Brian Baker, CFA Mon, April 14, 2025 Bankrate

Here’s what else you should know about financial advisors, including the advantages and disadvantages of using one and when you should consider hiring one.

Financial Advisors: What They Do And How They Can Help Manage Your Money

A financial advisor is someone who helps you manage various aspects of your financial life. People most often associate financial advisors with planning for retirement, but they can also be involved in general investment management, budgeting, insurance, taxes, estate planning and more.

Financial advisors charge a fee, often expressed as a percentage of your assets, in return for their services. They can assist you with several different aspects of your financial life, but not all advisors or firms provide the same services.

Here are some of the common areas financial advisors provide guidance on:

Goal planning: One of the first things an advisor typically does is ask clients about their short- and long-term financial goals. A financial plan is then built around achieving those goals while taking into account the unique circumstances of each client.

Budgeting: If you’re just starting out in your financial journey or even if you’re more established, advisors can help you construct an overall budget and identify ways to boost your savings, if necessary.

Investments: Financial advisors also provide advice on your investment portfolio and can assess things such as your overall asset allocation. They can also answer questions and recommend investment products such as mutual funds and ETFs.

Retirement planning: Nearly every financial advisor will be able to assist with retirement planning, which is often the biggest long-term financial goal for most people. They can help you navigate your employer’s 401(k) plan and offer guidance on other choices such as a traditional or Roth IRA.

Taxes: Financial advisors can provide guidance that takes into account current and future tax considerations.

Insurance: Financial advisors can also help you determine whether life insurance or annuity products make sense for you, but be sure to understand whether the advisor will receive a commission on the product they’re selling to you.

Estate planning: Planning for the end of life isn’t easy, but financial advisors may be able to guide you through the estate planning process, which will make it easier on your heirs when that time comes.

Types Of Financial Advisors

DINARRECAPS8 4/14/25 DINARRECAPS8 4/14/25

What It Really Means To Help Someone — And The Consequences That Can Follow

He borrowed $20K from his brother — then crashed the car he bought instead of going to law school

Victoria Vesovski Moneywise Sun, April 13, 2025

When a loved one is in need, lending a helping hand can feel like second nature — even with a price tag.

On a recent episode of his new Netflix talk show, Everybody’s Live With John Mulaney, the comedian explores what it really means to help someone — and the consequences that can follow.

He’s joined by actor Michael Keaton and Jessica Roy, a personal finance columnist for the San Francisco Chronicle. Their first caller was Dylan from Montville, New Jersey, who borrowed $20,000 from his brother to attend law school. But instead of cracking open textbooks, Dylan bought a car. Then he crashed it. After selling the wreck for scrap, only $1,200 of the original $20,000 remained

What It Really Means To Help Someone — And The Consequences That Can Follow

He borrowed $20K from his brother — then crashed the car he bought instead of going to law school

Victoria Vesovski Moneywise Sun, April 13, 2025

When a loved one is in need, lending a helping hand can feel like second nature — even with a price tag.

On a recent episode of his new Netflix talk show, Everybody’s Live With John Mulaney, the comedian explores what it really means to help someone — and the consequences that can follow.

Now, Dylan finds himself in a bind: no money, no law degree, a totaled car and a $20,000 lie he has to repay.

It’s a cautionary tale and one that might hit closer to home than you’d expect. Whether you’ve loaned money to a loved one or considered asking for help yourself, navigating finances within personal relationships can be tricky.

Being a good friend

When money enters the mix between friends and family, the emotional toll can often outweigh the financial loss. A LendingTree survey found that 31% of Americans are owed money by a loved one — with friends and siblings being the most common borrowers.

The top reason? Covering debt payments and everyday expenses like meals and gas. But personal lending often comes with strings attached: nearly half of the respondents said they regretted lending money to someone close, and one in six admitted it had damaged a relationship.

In the episode, Roy emphasized that lending money to someone you care about requires a mental shift.

“Any money you loan someone you need to be psychologically detached from it,” she explained. “It’s a gift and I’m not going to get it back.”

It’s a mindset that protects more than just your wallet — it safeguards your relationships, too. When lending to friends and family, boundaries are just as valuable as budgets.

Stuck in a tough spot

https://www.yahoo.com/finance/news/borrowed-20k-brother-then-crashed-102500592.html

DINARRECAPS8 4/8/25 DINARRECAPS8 4/8/25

Hoarding Cash and Delaying Purchases

Hoarding Cash and Delaying Purchases: Anxious Retirees React To The Stock Market Selloff

Alicia Adamczyk Updated Mon, April 7, 2025 Fortune

Though few people are enjoying the tariff-induced market meltdown, it is an especially tough time for retirees and those near retirement, who have been hit with a double financial whammy: Not only are their portfolios losing value at a time when they can least afford it, but they are also often the people least able to absorb higher costs on their fixed incomes.

Though financial advisors generally advise clients to remain calm in the face of market volatility, they say some clients have made a few key moves over the past few days to put themselves in better positions.

Hoarding Cash and Delaying Purchases: Anxious Retirees React To The Stock Market Selloff

Alicia Adamczyk Updated Mon, April 7, 2025 Fortune

"I have been advising my retiree clients for months to build up their cash reserve to about one year's worth of withdrawals from their portfolio, at minimum," says Katrina Soelter, California-based certified financial planner (CPF). This allows retirees the ability to avoid taking disbursements, withdrawals from a retirement account, at a loss. "If retirees don't have that cash reserve right now, then building that up strategically over the next several months would be key."

For many, a key consideration is distinguishing between money needed now and money needed later, says Brenna Baucum, an Oregon-based CFP.

"One client who reached out this week was understandably anxious, but we were able to revisit a decision we made in January to move this year's required minimum distribution into cash," says Baucum. "Knowing they won't need to sell anything from their investment portfolio again until, at the latest, December 2026 gave them real peace of mind."

Other clients are postponing large or nonessential discretionary purchases in order to keep some liquid breathing room in their budget. That said, it can also make sense for pre-retirees and retirees on fixed incomes to speed up some spending. At a time when headlines are warning of potential $2,300 iPhones, consumers need to think through how their spending could be impacted.

"With new tariffs on the horizon, it's worth being intentional about spending," says Baucum. "If you were already planning to buy goods from soon-to-be-tariffed countries…it may make sense to accelerate those purchases. That's not market timing, it’s thoughtful consumption."

It's important to be proactive and track expenses closely, says New York CFP Melissa Caro.

"Retirees may need to adjust spending or consider inflation hedges like TIPS or a refreshed asset allocation to stay on track," says Caro, referring to Treasury Inflation-Protected Securities, which are bonds whose principal and interest rate payments increase with inflation.

Shifting investment strategies

DINARRECAPS8 4/6/25 DINARRECAPS8 4/6/25

These Are the 6 Most Common Money Questions

I’m a Financial Influencer: These Are the 6 Most Common Money Questions I’m Asked

Nicole Spector Tue, July 30, 2024 GOBankingRates

With general financial literacy and better financial planning exploding on social media, millions of folks are turning to financial influencers to get their money questions answered without breaking the bank.

What are people the most curious or confused about? What are they reaching out to financial influencers to find out about? And how do financial influencers answer their queries or point them in the right direction?

GOBankingRates spoke with Jeff Sekinger, a financial innovator and entrepreneur, and the CEO and founder of Nurp LLC. Sekinger courts a following of 1.1 million on Instagram.

I’m a Financial Influencer: These Are the 6 Most Common Money Questions I’m Asked

Nicole Spector Tue, July 30, 2024 GOBankingRates

GOBankingRates spoke with Jeff Sekinger, a financial innovator and entrepreneur, and the CEO and founder of Nurp LLC. Sekinger courts a following of 1.1 million on Instagram.

These are the six most common money questions he’s asked — along with how he answers them.

Retirement Planning: Whether you're planning for retirement, dealing with a significant life event or simply looking to make smarter financial decisions, a financial advisor can offer the expertise and guidance you need. Here are some compelling reasons why you should consider a financial advisor -- even if you're not wealthy.

‘How Might a Trump Presidency Impact the Economy?’

Sekinger is constantly spammed with burning questions about money. A common one recently revolves around Trump. Specifically, if Trump is re-elected, how would his presidency impact the economy? More specifically, which markets, sectors and companies could benefit?

“A Trump presidency could have significant implications for the economy and markets,” Sekinger said. “Some investors are optimistic that Trump’s policies, like tax cuts and deregulation, could boost the economy and markets. Others are more cautious, citing concerns about Trump’s trade policies and potential geopolitical instability.”

According to Sekinger, companies that could benefit from a Trump presidency are the energy, financial and defense sectors.

“On the other hand, companies in sectors like healthcare and technology might face headwinds,” Sekinger said.

‘What Do I Need To Know To Be A Successful Young Investor?’

Everyone on the path to financial freedom needs to be investing. Investing can be complex, and naturally, people have questions. Commonly Sekinger is asked what you need to know to become a successful young investor.

“As a young investor, time is on your side,” Sekinger said. “Take advantage of compound interest by investing as early as possible, even if it’s just a small amount each month. Consider contributing to a Roth IRA or your employer’s 401(k) plan. Also, educate yourself about investing and avoid getting caught up in get-rich-quick schemes.”

‘How Can I Build Wealth While Managing Student Loan Debt?’

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Do I Have to Worry About Gift Tax?

If I Give My Child $30,000 Towards Their Wedding, Do I Have to Worry About Gift Tax?

Mark Henricks Sat, July 27, 2024 SmartAsset

Imagine your child is getting married and you want to help pay for their wedding. You’ve been saving for years and now have $30,000 set aside for their big day, which you plan to hand over in the form of a check.

However, before you pass along that much cash, it’s important to understand the potential tax implications of making a $30,000 gift. A gift that size could require you to pay the federal gift tax, which can reach up to 40%. The good news is you may avoid paying gift taxes altogether, but there are reporting requirements and other limitations to keep in mind. Consult a financial advisor to minimize your gift tax obligations.

Do I Have to Worry About Gift Tax?

If I Give My Child $30,000 Towards Their Wedding, Do I Have to Worry About Gift Tax?

Mark Henricks Sat, July 27, 2024 SmartAsset

Federal Gift Tax at a Glance

The federal gift tax applies when you transfer money or property to someone else without receiving something of equal value in return. Gift tax rates range from 18% to 40% based on the size of the gift.

However, not all gifts trigger this federal tax. The IRS allows you to give away up to $17,000 ($34,000 for married couples) per year to each individual without owing any taxes on the gift. This is called the annual exclusion, and in 2024 it will increase to $18,000 per person.

However, gifts that exceed this annual exclusion aren’t necessarily taxed either. Instead, they reduce the amount of money or property you can give away tax-free over the course of your lifetime. This lifetime limit is known as the basic exclusion amount or lifetime exemption and it’s adjusted each year for inflation.

The gift tax only applies when you exhaust your lifetime exemption. In 2023, a person can give away up to $12.92 million over the course of their lifetime without triggering the gift tax (this will increase to $13.61 million in 2024). For example, if someone were to give away $13 million, they would pay gift taxes on only $80,000. And if you need additional help planning for major gifts, consider matching with a financial advisor.

How the Gift Tax Could Affect a $30,000 Wedding Gift

If you want to give a child $30,000 to help pay for a wedding, there are a few different ways it could be structured.

As a gift solely from you to your child, a $30,000 wedding gift would avoid most tax liability on its own. The gift only exceeds the $17,000 annual exclusion for 2023 by $13,000, so that’s all that could potentially be taxable if you’re single.

If this is your first time exceeding the annual exclusion, there’s more good news. In that case, the $13,000 excess would simply reduce your $12.92 million lifetime exclusion by that amount. You would not actually have to pay any gift tax unless you exceed your remaining lifetime exclusion, though you still have to fill out Form 709.

Alternatively, you could gift both your child and their future spouse $15,000 each and avoid the annual exclusion threshold (remember, you can gift up to the annual exclusion amount per year per person).

To make sure you structure your gifts in your best interest, talk it over with a financial advisor.

How to Avoid Gift Tax on a $30,000 Wedding Gift