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    Do I have enough money to retire? Ask yourself these 3 questions to assess whether you’re ready

    Join us on October 24th at 1pm for an online Your Money event: REGISTER HERE

    Many workers worry about whether they will have enough money to retire.
    While surveys show people think they need a big lump sum set aside, it helps to calculate your prospective income to get a sense of your savings progress.
    Ask yourself several questions to assess how much you may get from your portfolio, Social Security and other assets, according to Morningstar personal finance expert Christine Benz.

    Panama is one of the most affordable places to retire abroad.
    Helovi | E+ | Getty Images

    Today’s investors face one looming question: Will I have enough money when I retire?
    Surveys show prospective retirees may have big lump sums in mind.

    To get a more accurate, personal gauge, it helps to start with your planned spending, Christine Benz, director of personal finance and retirement planning at Morningstar, said Thursday during the CNBC Your Money event.
    Benz is also the author of the book “How to Retire: 20 Lessons for a Happy, Successful, and Wealthy Retirement.”
    To get a better sense of what your retirement income may look like, it helps to consider the answer to several questions, according to Benz.

    1. Can I live on 4% of my portfolio?

    One financial planning rule of thumb — the 4% rule — has been around for decades.
    The idea is retirees may withdraw 4% from their investment portfolio in the first year of retirement, and adjust their withdrawals with each subsequent year for inflation.

    Whether that gauge is best is a matter of fierce debate among financial planning experts.
    It’s still a great place to start to understand what your retirement income may look like, Benz explained.

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    Start by tallying your non-portfolio assets. For many, that includes Social Security retirement benefits. For others, it may include a pension or income from other assets such as real estate.
    After tallying that sum, assess how much 4% of your portfolio may add to those income sources.
    “That’s a good formula to run yourself through when you’re trying to determine whether you have enough to retire,” Benz said.

    2. When should I claim Social Security benefits?

    Many retirees rely on Social Security benefits as a significant source of retirement income.
    And surveys show many also worry that the program will not be able to provide the funding they expect when they retire. Social Security’s retirement trust fund is currently facing a 2033 depletion date, at which point projections find 79% of benefits may be payable unless Congress takes action.
    If you’re over age 60, you probably won’t see big changes to the program between now and when you claim benefits, Benz said.
    While eligibility for retirement benefits starts at age 62, it still pays to wait, if you can, she said.

    Full retirement age — which ranges from 66 to 67, depending on year of birth — is when you may get 100% of the benefits you’ve earned.
    But you can pick up about 8% more for every year you delay past full retirement age until age 70, Benz said.
    You may want to adjust your claiming decision to coordinate with your spouse, if you are married, as well as consider other personal factors, such as your life expectancy.

    3. How will I withdraw money in retirement?

    One reason retirement is a such a big transition is workers go from having a regular paycheck to having to create income from a big lump sum of money.
    It helps to think through how you will withdraw funds before you reach retirement, Benz said.
    Benz prefers a bucketing strategy to help make it so funds are allocated for immediate, near-term and long-term needs.
    Having at least several years of portfolio withdrawals available in safer assets can protect retirees from sequence of return risks, when taking withdrawals on investments that are down can negatively impact portfolios. That may include a combination of allocations that can hold up during equity market sell-offs, such as cash, short-term bonds and intermediate-term bonds, Benz said.
    Long-term assets may be more aggressively invested in stocks to help provide growth for later in retirement, as well as assets that may eventually be passed on to heirs. Roth accounts are ideal for those assets, Benz said, as they can provide tax-free income in retirement and also limit the taxes heirs pay on inheritances. More

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    The great wealth transfer is underway. Here’s how to prepare

    Join us on October 24th at 1pm for an online Your Money event: REGISTER HERE

    The great wealth transfer is underway and families need to prepare, according to Stacy Francis, president and CEO of Francis Financial.
    An estimated $84 trillion of wealth will change hands by 2045, with the majority going to Gen X and millennial heirs, Cerulli Associates reports.
    “The real reality is that most families are not talking about money,” said Francis, speaking at CNBC’s Your Money event on Thursday. 

    Andreswd | E+ | Getty Images

    The great wealth transfer is underway and families need to prepare, according to certified financial planner Stacy Francis, president and CEO of Francis Financial in New York City.
    An estimated $84 trillion of wealth will change hands by 2045, with the majority going to Gen X and millennial heirs, according to Cerulli Associates. 

    “The real reality is that most families are not talking about money,” said Francis, speaking at CNBC’s Your Money event on Thursday. 

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    Here’s a look at more stories on how to manage, grow and protect your money for the years ahead.

    Why you need professional guidance

    Some Americans do not want to pay an attorney to draft key estate planning documents that dictate their wishes, such as a will, trusts or a health-care proxy, experts say.
    But a proper estate plan can “make or break the financial values that you want to impart to your children,” Francis said.
    “Online tools are great, but they don’t take the place of a very smart advisor to help you do this planning,” she said.

    You should also update beneficiary designations on all financial accounts, which outlines where those assets go upon death, Francis said.

    Change to ‘an incredibly high exemption’

    Enacted by former President Donald Trump, the Tax Cuts and Jobs Act, or TCJA, significantly increased the lifetime estate and gift tax exemption, which applies to tax-free wealth transfers during life and at death.
    Starting in 2025, the exemption will rise to $13.99 million for individuals and $27.98 million for married couples filing jointly, the IRS announced this week.  
    But these thresholds could fall significantly after 2025 unless Congress extends the TCJA provision.  

    “It’s an incredibly high exemption that we have now,” and clients frequently ask about the expirations, said Samantha Pahlow, wealth management chair of Ferguson Wellman Capital Management in Portland, Oregon. The firm ranked No. 10 on CNBC’s 2024 Financial Advisor 100 list.
    Some advisors are preparing. But it is difficult to predict the future of the exemption with uncertain control of Congress and the White House. More

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    For investors, ‘there are a number of reasons to be bullish,’ JPMorgan strategist says

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    With stocks under pressure and the presidential election less than two weeks away, uncertainty is the prevailing sentiment in the market.
    Yet, “there are a number of reasons to be bullish,” J.P. Morgan’s Jordan Jackson said at CNBC’s Your Money event on Thursday.

    Traders work on the floor at the New York Stock Exchange on Oct. 24, 2024.
    Brendan McDermid | Reuters

    With the U.S. presidential election less than two weeks away and voters decidedly split, some investors are understandably spooked.
    “This is likely to cause a little bit of choppiness in the markets,” Jordan Jackson, a global market strategist at J.P. Morgan Asset Management, said at CNBC’s Your Money event on Thursday.

    On Wednesday, the Dow suffered its biggest one-day loss since early December, declining more than 400 points. The S&P 500 shed nearly 1%, and the Nasdaq lost 1.6%. As of mid-afternoon Thursday, the Dow was headed for its fourth straight decline, while the S&P and Nasdaq were up slightly.
    If history is a guide, “when you look back over previous election cycles, while you do have that choppiness leading up to the election, almost uniformly you get markets that bounce back at the tail end of the year,” Jackson said.

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    As Election Day nears, 72% of American investors say they are worried about the presidential election, according to a survey from life insurance company F&G. 
    But the best course of action is to “stay the course,” Jackson advised.
    “Markets are resilient,” he said.

    Despite November’s choppiness, when you look at the broader picture, “there are a number of reasons to be bullish,” Jackson said.
    For starters, according to Jackson, more interest rate cuts are expected to follow the Fed’s half-percentage-point reduction in September, if inflation indicators cooperate. The annual rate of CPI inflation was 2.4% in September, a vast improvement over the 9.1% top in June 2022.
    “That tends to be a very good backdrop,” Jackson said.

    In addition, “things are looking pretty good from a corporate fundamentals perspective,” he said, although “we have to be careful making big sector bets based off of the rhetoric we hear on the campaign trail.”
    “But again, I do think that when we look at the broader backdrop, follow the earnings, there’s more all-time highs in the market as we round out this year and more all-time highs over the course of next year,” Jackson said.
    For consumers, it will take longer to adjust to price pressures, even though wages are rising and unemployment is low.
    “I think over the course of next year, we should continue to see consumers start to feel a little bit more confident about their wallet share and what they are able to spend,” Jackson said. More

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    U.S. will be ‘more pro-crypto’ after this election, no matter who wins, says Ripple CEO Garlinghouse

    Brad Garlinghouse, CEO of Ripple, speaks at the 2022 Milken Institute Global Conference in Beverly Hills, California, U.S., May 4, 2022. 
    Mike Blake | Reuters

    Ripple Labs CEO Brad Garlinghouse has been skeptical of crypto regulation in the U.S., but he is feeling highly optimistic about the post-election environment around the corner.
    “This is the most important election we’ve had, but I also believe no matter what happens, we’re going to have a more pro-crypto, more pro-innovation Congress than we’ve ever had,” he said in a Wednesday conversation with CNBC at DC Fintech Week.

    Ripple, a veteran company in crypto known in part for its close association with the XRP token, operates a global payments business with banks and financial institutions as its main customers. About 95% of its business takes place outside of the U.S., which Garlinghouse said is partly a reflection of the contentious environment in Washington.
    In 2020, the U.S. Securities and Exchange Commission sued Ripple, but last year the company scored a big victory for the industry when a judge determined that XRP is not a security when sold to retail investors on exchanges.
    On Wednesday, Garlinghouse offered a piece of advice to fintech startups in this changing time: “Incorporate outside the United States.”
    Nevertheless, he was upbeat about where the industry is heading in the long term.
    “Anybody who doesn’t believe that no matter what, we’re going to end up in a better place, is not paying attention … and [if in] 10 years we look back on how the U.S. got it wrong for years and years. … It’s going to be a speed bump, and this industry is going to continue to thrive.”

    An approaching ‘reset’

    Ripple has donated at least $45 million to the Fairshake pro-crypto political action committee. Co-founder Chris Larsen recently donated $11 million to Vice President Kamala Harris’ campaign. Garlinghouse pointed out he was intentionally wearing a purple tie on Wednesday.
    “Obviously, Trump came out early and very aggressively in a pro crypto [way] and said he’s the crypto president,” Garlinghouse said. “Team Harris have been more nuanced. This week, they had some of the most constructive things they have said publicly.”
    “Kamala Harris is from Silicon Valley, she has generally been pro technology over the years,” he added. “She has been relatively quiet on the topic, but I think no matter what happens, we’re going to see a reset.”
    Because of that contrast, sentiment in the crypto industry has grown increasingly partisan — even as it has previously applauded growing bipartisan support for crypto issues in Congress. Many pro-crypto voters fear that the Harris campaign would continue the “attack” on crypto, as Garlinghouse called it.

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    “No matter what happens, we’re going to leave behind a failed approach from the Biden administration,” he said. “It has been an attack, and it isn’t just the SEC. The [Office of the Comptroller of the Currency] is hostile towards crypto; the Treasury is hostile towards crypto.”
    He highlighted banks becoming unwilling to work with crypto businesses in what many in the industry have referred to as “Operation Chokepoint 2.0.” The term refers to an Obama-era project known as “Operation Choke Point,” which discouraged banks from serving risky but legal enterprises, such as payday lenders and online gambling businesses.
    “That is a hostile administration, and no matter what happens in this next election, we will have a reset,” Garlinghouse said. “We can debate the magnitude of that reset, and there’s lots of disagreement about that. … We’re going to see forward progress, and I certainly am looking forward to that.”
    Though Garlinghouse hasn’t publicly backed any of the presidential candidates, he said that this week he endorsed John Deaton, an attorney seeking to unseat Sen. Elizabeth Warren, D-Mass. Warren has been critical of the crypto industry, seeking additional oversight of the space.

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    Here’s how much you can make in 2025 and still pay 0% capital gains

    The IRS on Tuesday announced 2025 inflation adjustments for long-term capital gains, which apply to investments owned for more than one year.
    In 2025, single filers can have $48,350 in taxable income or $96,700 for married couples filing jointly and still pay 0% capital gains taxes.
    The 0% capital gains bracket could offer a tax planning opportunity for investors, experts say. 

    Phynart Studio | E+ | Getty Images

    If you’re ready to rebalance investments or harvest profits, you could shield more earnings from capital gains taxes in 2025.
    The IRS on Tuesday announced dozens of inflation adjustments for 2025, including long-term capital gains brackets, which apply to assets owned for more than one year.

    Starting in 2025, there are higher taxable income thresholds for the 0% capital gains bracket, meaning investors can sell more assets without triggering taxes.
    The 0% capital gains bracket creates a “significant opportunity” for tax planning, according to certified financial planner Neil Krishnaswamy, president of Krishna Wealth Planning in McKinney, Texas.
    More from Personal Finance:The IRS unveils higher capital gains tax brackets for 2025How to rethink cash as the Fed cuts interest ratesHealth savings accounts offer ‘unmatched’ tax benefits, expert says
    The 0% capital gains bracket can “allow you to transform your taxable account into a tax-free account, at least temporarily,” said Krishnaswamy, who is also an enrolled agent.
    Here’s what to know about the 0% long-term capital gains rate for 2025 and how to qualify.

    Who qualifies for 0% capital gains in 2025

    Starting in 2025, single filers can qualify for the 0% long-term capital gains rate with taxable income of $48,350 or less, and married couples filing jointly are eligible with $96,700 or less.
    However, taxable income is significantly lower than your gross earnings. You calculate taxable income by subtracting the greater of the standard or itemized deductions from your adjusted gross income.
    Most taxpayers use the standard deduction, which also adjusts for inflation. In 2025, the standard deduction increases to $15,000 for single filers and $30,000 for married couples filing jointly.

    In 2025, a couple making well over $100,000 could still fall within the 0% capital gains bracket after subtracting the standard deduction, experts say. 
    For example, if a married couple earns $125,000 together in 2025, their taxable income could be under $96,700 after subtracting the $30,000 standard deduction.

    However, “people still need to be mindful about their income and where they may fall within the bracket,” said Ashton Lawrence, a CFP and director at Mariner Wealth Advisors in Greenville, South Carolina. “Surpassing the 0% threshold by even a small amount could mean a 15% tax on all gains above the limit.”
    Plus, profitable assets you sell will be part of the taxable income calculation and could bump you above the 0% capital gains threshold. Before selling assets, you should run a full-year tax projection and understand how the increased income could impact your situation.

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    Thursday’s big stock stories: What’s likely to move the market in the next trading session

    Traders work on the floor of the New York Stock Exchange (NYSE) on October 22, 2024 in New York City. 
    Spencer Platt | Getty Images

    Stocks @ Night is a daily newsletter delivered after hours, giving you a first look at tomorrow and last look at today. Sign up for free to receive it directly in your inbox.
    Here’s what CNBC TV’s producers were watching as the 30-stock Dow and the S&P 500 posted a third straight losing day, and what’s on the radar for the next session.

    The airlines

    After two big interviews regarding the Boeing strike in two days, CNBC TV’s Phil LeBeau turns his attention to two big airlines.
    He’ll interview Robert Isom, CEO of American Airlines, in the 7 a.m. hour ET and Robert Jordan, CEO of Southwest Airlines, in the 9 a.m. hour.
    American Airlines is up 22% in the past three months. The carrier reports on Thursday morning. American is 20% from the March high.
    Southwest also reports Thursday morning. The stock is up 13% in three months. Southwest is 12.6% from the February high.
    Over the last three months, United Airlines is the leader in the group. Shares are up 52% over that period. The stock hit a high Monday.

    Stock chart icon

    American Airlines over the past three months

    The utilities

    Utilities are the only S&P 500 sector up so far this week: up 0.26%. It is up 17% in three months.
    Four utilities hit new highs Wednesday, including Dominion Energy, DTE Energy, Consolidated Edison and Entergy.
    Entergy is now at an all-time high. The stock is up 5.3% in a month and 24% in three months.
    Consolidated Edison, also hit a new all-time high Wednesday. The stock is up 3% in October, and it has gained 15% in three months.
    DTE is at a 25-month high. The stock is up about 3% in a month, and it’s up 12% in three months.
    Dominion Energy is at a 20-month high. The stock is up 5.4% in October and up 20% in three months.

    Honeywell reports before the bell

    In a week full of reports from big industrials, Honeywell is next on the list. The company reports Thursday before the bell.
    The stock is up 1.4% since last reporting three months ago and hit a high Monday. The stock is up 6.6% so far in October.
    The S&P Industrials sector is up 39% in the last year.
    Howmet Aerospace is the top performer, up 136% in the past year. It’s followed by GE Aerospace, up 113%. Axon is up 110% in the last year.
    Paycom, Boeing and UPS are the weakest performers in the industrials in the last year. Paycom is down 36% in the past year, while UPS is down 11%. Boeing is down 13% in a year.

    Stock chart icon

    Honeywell in 2024

    CBRE Group reports before the bell

    The real estate investment trust reports Thursday morning.
    The stock is up 24% in the last three months and hit a high Monday.
    Many of the office REITs have had a solid three months.
    Vornado is up 46% in three months. BXP is up nearly 26% in three months, and SL Green is up 20%. Brandywine is up about 12% in that period.
    The S&P Real Estate sector is up 8.5% in three months. It’s 2% from the mid-September high.

    Several regional banks report Thursday

    Stock chart icon

    Valley National Bancorp over the past three months

    Weyerhaeuser reports after the bell

    The company specializing in timber products is up 5% over the past three months.
    Weyerhaeuser is 12% from the March high.
    There are two ETFs with nifty symbols in the space. CUT is the Invesco MSCI Global Timber ETF, and it is flat in three months. It’s 4.6% from the September high.
    WOOD is the iShares Global Timer & Forestry ETF. It is also flat in three months. The ETF is 7% from the September high.

    Microsoft’s AI Copilot

    CNBC TV’s Steve Kovach is tracking Microsoft’s AI Copilot product on Thursday, almost a year after its release.
    Microsoft ended Wednesday’s trading at $424.60 a share. That is 9.3% from the July high. 
    The stock is up about 13% so far in 2024.

    Nvidia’s Jensen Huang in India

    CNBC TV’s Seema Mody will watch and listen in on Nvidia CEO Jensen Huang’s trip to India, a growing tech hotspot.
    Nvidia is 3.4% from the high hit Tuesday.
    The stock is up about 15% so far in October and up 181% in 2024.

    Palantir’s Alex Karp

    The CEO of the defense tech company will be with CNBC TV’s Morgan Brennan and Jon Fortt in the 4 p.m. hour.
    Palantir is up 14.5% in October.
    The stock is down 4% from the Oct. 14 high.
    Palantir has almost doubled in the last six months. It ended Wednesday’s session at $42.59, and shares are up 1% after hours. More

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    Watch Ripple CEO Brad Garlinghouse speak live on legal battle with SEC and upcoming election

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    Ripple Labs CEO Brad Garlinghouse will speak at DC Fintech Week in Washington, D.C., on Wednesday afternoon.

    Ripple, the largest holder of XRP coins, scored a partial victory last summer after a three-year legal battle with the U.S. Securities and Exchange Commission. This was hailed as a landmark win for the crypto industry as it established a precedent that could help determine when other cryptocurrencies might be deemed securities. The SEC appealed that decision earlier this month.
    Garlinghouse will discuss that lawsuit, along with Ripple’s role in informing U.S. crypto regulation more broadly. He will also speak about the upcoming presidential election and his donations to the Fairshake pro-crypto political action committee.
    The CEO will also talk about why his company is entering the burgeoning stablecoin space this year with the launch of Ripple USD (RLUSD).
    Subscribe to CNBC on YouTube.  More

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    4 ways to make your home down payment savings grow, according to top-ranked advisors

    Coming up with a down payment can be daunting with high home prices.
    Different investment and savings vehicles can help you get a higher return on your funds, experts say.
    Deciding what works best for you will depend on when you need to access the money, said one financial advisor.

    Saving for a home down payment can feel challenging, given current real estate prices. Using the right assets can help give your balance a lift.
    When you actually need the money is the “biggest driving factor,” said Ryan Dennehy, principal and financial advisor at California Financial Advisors in San Ramon, California. The firm ranked No. 13 on the 2024 CNBC FA 100 list.

    “Do you need the money six months from now, or do you need the money six years from now?” he said.

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    That timing matters because financial advisors generally recommend keeping money for short-term goals out of the market. There can be more flexibility for intermediate-term goals of three to five years, but it’s still wise to prioritize protecting your balance. After all, you don’t want a bad day in the market to impact your ability to put in an offer on a home.
    But that doesn’t mean your down payment funds need to sit in a basic savings account, either.
    Here’s how to figure out how much money you might need, and some of the options for safely growing your balance:

    How much you need for a down payment

    Understanding how much money you might need can help you better gauge your timeline and the appropriate assets for your down payment.

    As of the second quarter of the year, the median sales price of U.S. homes is $412,300, according to the U.S. Census via the Federal Reserve. That is down from $426,800 in the first quarter, and from the peak-high of $442,600 in the fourth quarter of 2022, the Fed reports.
    So, for example, if a homebuyer is looking to put a 20% down payment on a $400,000 house, they might need to save about $80,000, said certified financial planner Shaun Williams, private wealth advisor and partner at Paragon Capital Management in Denver. The firm ranks No. 38 on the FA 100.

    Do you need the money six months from now, or do you need the money six years from now?

    Ryan D. Dennehy
    financial advisor at California Financial Advisors in San Ramon, California

    Of course, a 20% down payment may be traditional, but it’s not mandatory. Some loans require as little as 5%, 3% or no down payment at all. Down payment assistance programs can also cover some of the tab.
    In 2023, the average down payment was around 15%, with first-time buyers typically putting down closer to 8% and repeat buyers putting down around 19%, according to the National Association of Realtors.
    Just be aware that if you put down less than 20%, the lender may require you to buy private mortgage insurance. PMI can cost anywhere from 0.5% to 1.5% of the loan amount per year, depending on factors like your credit score and down payment, according to The Mortgage Reports.

    4 ways to grow your down payment savings

    Here are some options that advisors say are worth considering, depending on when you hope to buy a home, how much you already have saved and how accessible you need the cash to be:

    1. CDs

    A certificate of deposit lets you “lock in” a fixed interest rate for a period of time, Dennehy said. You can buy a CD through a bank or a brokerage account. 
    Term lengths for CDs can span from months to years. The annual percentage yield will depend on factors like the interest rate at the time, the term of the CD and the size of deposits.

    If you need to access the funds before the CD matures, a bank may charge a penalty wiping out some of the interest earned, Dennehy said. Some banks offer penalty-free CD options, too.
    With brokered CDs, there’s often no penalty charge for early withdrawal, but you are subject to whatever the CD is valued at on the secondary market, he said. You may also face sales fees.
    As of Oct. 23, the top 1% one-year CDs earn around 5.22% APY while the national average rate is 3.81%, per DepositAccounts.com.

    2. Treasury bills

    Backed by the U.S. government, Treasury bills are an asset that give you a guaranteed return, with terms that can range from four to 52 weeks. The asset could be less liquid, depending on where you purchase.
    T-bills currently have yields well above 4%.
    You can purchase a short-term or a long-term Treasury depending on your goal timeline, said Dennehy.
    Treasury interest is subject to federal taxes, but not state or local income tax. Stacked against CD rates, Treasurys can offer a “comparable rate with less of a tax impact,” said CFP Jeffrey Hanson, a partner at Traphagen Financial Group in Oradell, New Jersey. The firm ranks No. 9 on the FA 100.

    High yield savings accounts [are] great if you’re going to be buying in the next year.

    Shaun Williams
    private wealth advisor and partner at Paragon Capital Management in Denver, Colorado

    3. High-yield savings accounts
    A high-yield savings account earns a higher-than-average interest rate compared with traditional savings accounts, helping your money grow faster.
    The top 1% average for high-yield accounts is 4.64% as of Oct. 23, per DepositAccounts.com. To compare, the national average for savings accounts is 0.50%.
    Their ease of access makes a HYSA especially suitable as you get close to starting your home search.
    “High-yield savings accounts [are] great if you’re going to be buying in the next year,” Williams said.

    4. Money market funds
    A money market fund generally has a slightly higher yield than a HYSA, said Dennehy. Some of the highest-yielding retail money market funds are nearly 5% as of Oct. 23, according to Crane Data.
    But a HYSA is typically insured by the Federal Deposit Insurance Corp. A money market fund is not, said Dennehy.
    Still, money market funds are considered low risk and are intended not to lose value, according to Vanguard. They may be eligible for $500,000 coverage under the Securities Investor Protection Corp., or SIPC, when held in a bank account, Vanguard notes. More