Financial planning

Simonskafar | E+ | Getty ImagesESG funds have become more popularSteve Cicero | Photographer's Choice | Getty ImagesFunds that allocate investor money according to ESG issues held $357 billion at the end of 2021 — more than four times the total three years earlier, according to Morningstar, which tracks data on mutual and exchange-traded funds.Investors poured $69.2 billion into ESG funds, also known as sustainable or impact funds, last year, an annual record, according to Morningstar.These funds come in a variety of…

How to calculate your interestThe interest is an annual rate compounded daily, meaning you divide the 6% rate by 365, explained Tommy Lucas, a certified financial planner and enrolled agent at Moisand Fitzgerald Tamayo in Orlando, Florida.With the average brick-and-mortar savings account paying well below 1%, the IRS interest may sound appealing. However, it's still lower than annual inflation, which grew by 8.5% in July.And with the average 2021 tax refund at more than $3,000, many filers would rather have their payment…

Investors have been pouring money into high-yield bonds, which typically pay more interest for taking on greater risk. But these investments are also known as "junk bonds," and financial experts urge caution before piling in.After a rocky start to 2022, U.S. high-yield bond funds received an estimated $6.8 billion in net money in July, according to data from Morningstar Direct.While yields have recently dipped to 7.29% as of Aug. 10, interest is still higher than the 4.42% received in early January, according to the ICE…

Firefighters pull up to a burning house during the Kincade fire in Healdsburg, California, on Oct. 27, 2019.Josh Edelson | Afp | Getty ImagesAs climate change threatens the U.S. with more natural disasters, it's becoming increasingly costly for Americans to insure their homes ⁠— and it's only expected to get worse, according to experts."These things are occurring more often, and they're causing more damage," said Jeremy Porter, chief research officer at First Street Foundation, a non-profit focused on defining U.S.…

Anti-abortion activists demonstrate outside the Supreme Court of the United States in Washington, June 13, 2022.Evelyn Hockstein | ReutersResidents of Georgia may now claim embryos as dependents on their state income tax returns.Any "unborn child with a detectable human heartbeat," may qualify for a $3,000 state income tax deduction for 2022, effective July 20, according to guidance released by the state's Department of Revenue.The announcement follows the U.S. Supreme Court's decision to overturn Roe v. Wade, ending the…

How employee stock purchase plans worksTypically offered to all employees, ESPPs may allow you to purchase company stock at a discount of up to 15%, capped at $25,000 per year for tax-qualified plans.The plan collects after-tax contributions from each paycheck during an "offering period," and uses the funds to buy company stock on a specific date."The gold standard for a plan is going to be a 15% discount with a lookback feature," said Bruce Brumberg, editor-in-chief and co-founder of myStockOptions.com.A "lookback"…

domoyega | E+ | Getty ImagesAs credit card debt swells and interest rates spike, many spenders are fearful about high balances.Nearly 1 in 5 Americans are afraid to check their credit card statements, according to a recent report from travel website Upgraded Points, which surveyed 3,500 people in April 2022. While Americans trimmed credit card debt in 2020, steep balances have returned amid soaring costs for staples like gasoline, groceries and housing.Indeed, credit card balances jumped $71 billion year over year,…

Marko Geber | DigitalVision | Getty ImagesAfter battling downturns in the stock and bond markets, more financial advisors looking to further diversify their clients are turning to alternative investments, according to a recent survey from Cerulli Associates.Falling outside of traditional asset classes, alternative investments are typically added to portfolios for more diversification, income and the possibility of higher returns. The report, surveying 100 advisors during the first half of 2022, found average alternative…

With increased fears of a possible recession, investors seeking steady income may turn to stocks paying quarterly dividends, which are part of company profits sent back to investors.Historically, dividends have significantly contributed to an asset's total return, sometimes providing a boost during economic downturns.From 1973 to 2021, companies paying dividends earned a 9.6% total annual return, on average, beating 8.2% from the S&P 500 Index, and eclipsing the 4.79% yield from non-dividend payers, according to a…

seksan Mongkhonkhamsao | Moment | Getty Images1. Review tax withholdingsWhen starting a new job, you fill out Form W-4, covering how much your employer withholds from your paychecks for federal taxes. But you need to revisit those withholdings, especially for major life changes such as marriage, having children or starting a side business.Top reasons to adjust your withholding:1. Tax law changes2. Lifestyle changes like marriage, divorce or children3. New jobs, side gigs or unemployment4. Tax deductions and credits…