Financial planners

If you're expecting a tax refund in 2023, it may be smaller than this year's payment, according to the IRS. Typically, you get a federal refund when you've overpaid yearly taxes or withheld more than the amount you owe.Your annual balance is based on taxable income, calculated by subtracting the greater of the standard or itemized deductions from adjusted gross income."Refunds may be smaller in 2023," the IRS said in a November news release about preparing for the upcoming tax season. "Taxpayers will not receive an…

After a volatile year for the stock and bond markets, it may be time to rebalance your portfolio by shifting assets back to match your original goals, according to experts.  As of Nov. 28, the S&P 500 Index was down roughly 17% year-to-date, and the U.S. bond market has dropped by around 13%, leaving many investors with significantly different allocations than one year ago.related investing newsThese assets have yields not seen in years — here’s what to know about preferred stocksTypically, you choose an initial…

Vitapix | E+ | Getty ImagesWhile couples might sign a prenuptial agreement before they're married and a "post-nup" after, it's more than just the timing that differentiates these arrangements, experts say."It's a whole different ballgame once you're married," said Martin Shenkman, estate attorney with Shenkman Law in New York City."With a pre-nup, you have no obligation to a spouse," he explained. "With a post-nup, once you're married, you have a legal and fiduciary obligation to your spouse."Shenkman emphasized that it's…

Charles Taylor | Getty Images1. If your income is higher in 2022, defer your bonus into 2023If you've had a strong year and expect lower earnings in 2023, you may try to defer a holiday bonus until the new year, experts say."It's always exciting to reap the rewards of hard work by getting a year-end bonus," said Lisa Greene-Lewis, a CPA and tax expert with TurboTax. "But sometimes that may bump you up into another tax bracket."However, by receiving the money in January, you may reduce 2022 income without waiting too long…

Ariel Skelley | Getty ImagesYou must 'itemize' to claim the charitable deductionWhen filing your return, you reduce your taxable income by subtracting the greater of either the standard deduction or your total itemized deductions — which may include charitable donations. Signed in 2017, former President Donald Trump's signature tax overhaul nearly doubled the standard deduction, making filers less likely to itemize.For 2022, the standard deduction is $12,950 for single filers or $25,900 for married couples filing…

If you make more than $1 million a year in Massachusetts, you may soon be subject to a "millionaire tax" approved by voters this week through a ballot initiative.The new law creates a 4% tax on annual income above $1 million, on top of the state's current 5% flat income tax, aiming to fund public education, roads, bridges and public transportation.It's expected the levy will affect roughly 0.6% of Massachusetts households, according to an analysis from the Center for State Policy Analysis at Tufts University. More from…

Catherine Yeulet | Getty ImagesWhat the inverted yield curve meansGenerally, longer-term bonds pay more than bonds with shorter maturities. Since longer-maturity bonds are more vulnerable to price changes, investors expect a "premium," explained Preston Caldwell, head of U.S. economics for Morningstar Research Services."In normal times, the yield curve slopes upwards," he said. But there's currently a downward sloping curve, also known as an "inverted yield," with the 2-year Treasury paying more than the 10-year Treasury.…

Shapecharge | E+ | Getty ImagesInvestors crashed the Treasury Department website for Series I bonds on Friday as they clamored to lock in a record-high interest rate before a key deadline.I bonds have proven to be a bright spot for investors amid declines in the broad stock and bond markets this year. They are a nearly risk-free asset tied to the rate of inflation; as inflation has soared to its highest level in roughly four decades, so too have returns for I bond investors.Investors must buy I bonds and receive a…

Insta_photos | Istock | Getty ImagesIf you're eager to secure 9.62% annual interest for Series I bonds for six months, the deadline is quickly approaching.You must purchase I bonds and receive your confirmation email by Oct. 28 to lock in the record 9.62% rate, according to TreasuryDirect. The rate is expected to drop to roughly 6.48% in November, based on the latest inflation data from the U.S. Bureau of Labor Statistics.  More from Personal Finance:You can save $22,500 in 401(k) plans and $6,500 in IRAs in 2023Here's…

If you've already maxed out 401(k) plan contributions for 2022 and you're eager to save more for retirement, some plans have an under-the-radar option, experts say.For 2022, you can defer $20,500 into a 401(k), plus an extra $6,500 for investors 50 and older. But the total plan limit is $61,000 per worker, including matches, profit sharing and other deposits. And some plans let you exceed the $20,500 deferral limit with so-called after-tax contributions. "It's definitely something higher-income people may want to consider…