Markus Andrews

The Federal Trade Commission has banned “deceptive advertising” from Intuit, maker of tax filing software TurboTax.
The FTC on Monday found Intuit violated federal law by marketing free TurboTax software to filers who were not eligible.
The final order bans Intuit from advertising “free” services unless all filers can use the free software or the company “clearly and conspicuously” discloses eligibility.

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“Absolutely no one should be surprised that FTC Commissioners — employees of the FTC — ruled in favor of the FTC as they have done in every appeal for the last two decades,” Derrick Plummer, spokesperson for Intuit, said in a statement. “This decision is the result of a biased and broken system where the Commission serves as accuser, judge, jury, and then appellate judge all in the same case.”

“Intuit has appealed this deeply flawed decision, and we believe that when the matter ultimately returns to a neutral body Intuit will prevail,” he added.
The opinion comes as the IRS prepares to launch Direct File, the agency’s free electronic tax filing pilot program, which will allow certain taxpayers to file federal returns directly with the IRS. The limited pilot will roll out in phases in certain states, with wider availability expected by mid-March. More

Residents from major cities across the country are increasingly moving to Southern and Midwestern cities where housing costs and competition are less severe, and where construction is keeping up with the demand, according to a recent Zillow report.
“Housing affordability has always mattered…and you’re seeing it across the country,” said Orphe Divounguy, a senior economist at Zillow.

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With high mortgage rates and home prices, would-be buyers are understandably looking for deals — even if they have to move to a different city, state or region to find them.
Last year, consumers moving interstate tended to pick new metropolitan areas where housing costs and competition are less severe, and construction is keeping up with demand, according to a recent Zillow Group analysis of United Van Lines data.

Homes in those consumers’ new metros cost $7,500 less, on average, compared to the places they left.
“Housing affordability has always mattered…and you’re seeing it across the country,” said Orphe Divounguy, a senior economist at Zillow. “Housing affordability is reshaping migration trends.”
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The 10 metros where people are moving

The search for affordability has led a strong migration flow into states like Florida, North Carolina, South Carolina, Tennessee and Texas, said Jessica Lautz, deputy chief economist and vice president of research at the National Association of Realtors.
Cities in the Zillow analysis showing the most inbound moves include Charlotte, North Carolina; Providence, Rhode Island; Indianapolis, Indiana; Orlando, Florida; and Raleigh, North Carolina, according to the Zillow analysis.

The real estate market is facing a low supply of active listings; while builders are trying to fill the gap, they can only do so in areas where it is financially feasible for both buyers and builders.
“That’s why you’re seeing these relatively more affordable Southern, Midwestern markets rise to the top of the list,” Divounguy said.
The draw of these metros is because they “are markets where jobs are being created rapidly” and where more new houses are being constructed, Divounguy said. For example, Charlotte and Raleigh have become tech and financial hubs attracting workers from metro areas like New York City.
“Because of that, they have remained relatively more affordable than other markets across the country,” he said. More

Here are the top 10 hottest housing markets in 2024, according to an analysis by Zillow.
“In markets where you’re going to have a ton more job creation than there is housing supply, you’re likely going to see homes move faster, [and] stronger home value appreciation,” said Orphe Divounguy, a senior economist at Zillow.

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The top 10 hottest housing markets are expected to be spread across the South, Northeast and Midwest this year, according to an analysis by real estate marketplace Zillow. But a “hot” market isn’t always great for would-be buyers.
Buffalo, New York, made the top of the list, as the area is slated to see increased job growth compared with the number of approved construction permits for new homes.

“In markets where you’re going to have a ton more job creation than there is housing supply, you’re likely going to see homes move faster, stronger home value appreciation,” said Orphe Divounguy, a senior economist at Zillow.

The list is based on an analysis of home value appreciation, how long it takes to sell a home and job growth relative to housing supply. That’s important information that can help you decide where you may want to look for a home — and places you may want to avoid.

What a ‘hot’ market means for buyers

“Market heat” refers to the level of competition among buyers; when you have more buyers than sellers, you have a hot market, Divounguy said.
“These are areas where competition will be stiff among homebuyers,” he said. “The hottest market doesn’t necessarily mean market health.”
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Market growth in some areas may not correlate to newly created jobs.
Florida, for instance, is attracting baby boomer residents who are seeking warmer, tax-friendly places to retire, said Jessica Lautz, deputy chief economist and vice president of research at the National Association of Realtors.
The claim that “the biggest share of homebuyers are baby boomers looking into warmer climates is a trope, but it’s a trope that’s true,” she said. “They’re looking into warmer areas, favorable tax conditions and better housing affordability.”
Baby boomers are also the generation that holds most of the wealth and some of them are going to be cash buyers as they can tap into their home equity.

Where the housing market is cooling

Meanwhile, home values are expected to decline this year in the “coolest markets,” or places that will be less competitive. These places are New Orleans; San Antonio; Denver; Houston; and Minneapolis.
“It’s a matter of affordability as well; if a market has gotten less affordable … you’re likely not going to see that type of heat in the market,” Divounguy said.

Denver, for instance, was a popular attraction for homebuyers during the pandemic, but it has turned into an area where affordability was constrained.
“Denver had a massive population flow,” Lautz said. “Finding the new Denver will be important to buyers.”
Millennials will also be major buyers; most are in their prime homebuying age and some have reached their peak earning potential.
Unlike baby boomers who are looking for favorable areas to retire, this cohort may be seeking employment opportunities or the ability to work remotely in new areas.
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Employers have been pushing for more in-person time at the office.
However, employees are increasingly prioritizing work-life balance and flexibility in their careers.
Now half of workers are more interested in balance and belonging than climbing the career ladder, according to a new study by Randstad.

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At the end of last year, Wayfair CEO Niraj Shah had a clear message for workers heading into 2024: “Winning takes hard work.”
“Working long hours, being responsive, blending work and life, is not anything to shy away from,” Shah wrote in an email to employees first obtained by Business Insider. “There is not a lot of history of laziness being rewarded with success,” Shah wrote.

The online furniture retailer, which also recently announced layoffs, has been working aggressively to return to profitability as the home market remains under pressure. In a statement, a Wayfair spokesperson responded to criticism of the CEO’s message. “In his note, Niraj was reinforcing some of the values that have contributed to Wayfair’s success, including questioning the status quo, being cost-efficient and working hard together to drive results.”
However, employees now have other priorities, new research shows, and more time at the office is not one of them.
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While 56% of workers consider themselves to be ambitious, 47% are not focused on career progression at all, according to Randstad’s latest Workmonitor, which surveyed 27,000 workers globally.   
Employees are more likely to consider work-life balance, flexible hours and mental health support as more important, the report found. 

Employees would quit rather than give up hybrid work

To that end, fewer want to spend any more time at the office than they already do.
Since the Covid pandemic, a significant number of workers have moved or made other changes to their lives based on being able to work remotely, at least some of the time.
To that point, 37% of workers now say they would consider quitting their job if their employer asked them to spend more time in the office, and 39% say that working from home is nonnegotiable, Randstad found.  
“We saw a huge acceleration of the shift to hybrid work during the pandemic and people don’t want to give this up,” said Sander van ‘t Noordende, Randstad’s CEO.

And yet, some employers continue to push return-to-office mandates.
Citing productivity among other concerns, companies such as Amazon, Disney, Goldman Sachs, Microsoft and Walmart recently revised their hybrid and remote work policies. A few organizations even threatened to fire workers who don’t return to the office for a certain number of days.
“There is a growing gap in understanding between employers and talent,” van ‘t Noordende said.
Also among high-paying job listings, fully remote and hybrid opportunities fell 12% and 69%, respectively, at the end of 2023, while in-person postings jumped 93%, according to a separate report from career site Ladders. 
“Companies that were previously offering hybrid roles are now increasingly posting in-office positions, especially for jobs paying over $200,000,” said John Mullinix, director of growth marketing at Ladders, in an emailed statement. 

Hybrid work is here to stay, for now

Although some companies are ramping up return-to-office plans, most hybrid work arrangements are staying — for now, according to another survey by the Conference Board. Only, 4% of U.S. CEOs said they will prioritize bringing workers back to the office full time in the year ahead.
The share of paid work-from-home days was flat in 2023, Nick Bloom, an economics professor at Stanford University, recently told CNBC. In a post on X, formerly Twitter, he wrote, “Return to the office is dead.”
With top talent still in high demand, employers have to be more flexible and amenable to workers’ wants and needs as it relates to working remotely, according to Vicki Salemi, career expert at Monster, as well as increased time off policies and shorter work weeks.
“This is excellent news for workers who need that flexibility,” she said.
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The S&P 500 index has continued to climb to new highs in recent days.
Investing in funds that track the index was a favorite strategy for Vanguard founder John Bogle.
Here’s what experts say you should think about before you invest.

People walk through the Financial District by the New York Stock Exchange (NYSE) on the last day of trading for the year on December 29, 2023 in New York City.
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The S&P 500 stock index climbed to a new all-time high on Monday.
A bull market — by two definitions — is here. Last year, the S&P 500 rose more than 20% from its most recent low. As of Friday, it crossed another bull market threshold when it surpassed its previous high.

For investors who want to get in on the action, the good news is that investing in a fund that tracks the S&P 500 index is an easily accessible strategy.
But experts say it also deserves a word of caution: Past performance is not indicative of future returns. And while the S&P 500 was a clear winner in 2023 — finishing the year up 26%, including dividends — it may not be the strategy that comes out ahead at the close of 2024.

What is the S&P 500 index?

The S&P 500 includes around 500 large cap equity stocks. The index is a market cap-weighted index, which means each company’s weighting is based on its market capitalization, or the total value of all outstanding shares.
The top companies by weight include Apple, Microsoft, Amazon, Nvidia, Alphabet (with two share classes), Meta, Tesla, Berkshire Hathaway and JPMorgan Chase.
Information technology represents the largest sector, with 28.9% of the index. A recent rally of big tech names has helped push the index to its recent highs.

How can you invest in the S&P 500?

Today, investors may choose from mutual funds or exchange-traded funds that track the index. Among the biggest ETFs are: SPDR S&P 500 ETF Trust, iShares Core S&P 500 ETF, and Vanguard S&P 500 ETF.
Vanguard in 1975 created the first index mutual fund that tracked the S&P 500. Vanguard founder John Bogle was famously a proponent of investing in a broad index fund.
“Simply buy a Standard & Poor’s 500 Index fund or a total stock market index fund,” Bogle wrote in his book, “The Little Book of Common Sense Investing.”
“Then, once you have bought your stocks, get out of the casino — and stay out,” he wrote. “Just hold the market portfolio forever.”
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For stock investors who want to keep their strategies simple, experts say the approach can work.
“Among the better decisions people can make is starting with an index-based fund tracking the S&P 500 because it works,” Todd Rosenbluth, head of research at VettaFi, recently told CNBC.com.
Over time, passive strategies have shown better returns than actively managed funds. Moreover, the cost of those funds is much lower compared to active strategies. Together, that combination is hard to beat.
“I don’t think individual investors or money managers can generally outperform the S&P 500,” said Ted Jenkin, a certified financial planner and the CEO and founder of oXYGen Financial, a financial advisory and wealth management firm based in Atlanta. Jenkin is also a member of the CNBC FA Council.

When does it pay to diversify?

The greater a portfolio’s exposure to the S&P 500 index, the more the ups and downs of that index will affect its balance.
That is why experts generally recommend a 60/40 split between stocks and bonds. That may be extended to 70/30 or even 80/20 if an investor’s time horizon allows for more risk.

Moreover, exclusively investing in the S&P 500 on the stock side of a portfolio may be limiting if other areas of the market prove more successful in 2024.
In 2023, the S&P 500 was up around 26% for the year, besting other strategies like a U.S. small cap index fund or an international stock index fund, noted Brian Spinelli, a certified financial planner and co-chief investment officer at Halbert Hargrove Global Advisors in Long Beach, California, which was No. 8 on CNBC’s FA 100 list in 2023.
It may be tempting to throw out those other strategies and just go with the one that did really well last year, Spinelli noted.
“But I wouldn’t go overboard,” Spinelli said. “You shouldn’t be 100% U.S. large cap and let it sit there and expect the same level of returns we’ve seen over the last five years.” More

In the last three years, the population of the super wealthy has skyrocketed in this country and around the world.
If current trends continue, the world will have its first trillionaire within a decade, according to a recent Oxfam report on global inequality.
Shortly after Oxfam’s report was released, some of the world’s wealthiest people called for higher taxes on the very richest in society.

In just three years, the world has witnessed a “supercharged surge in extreme wealth,” new data shows.  
In the U.S. alone, billionaires are 46% richer than they were in 2020, while the three wealthiest men — Elon Musk, Jeff Bezos and Larry Ellison — have increased their net worth by 84%, a recent Oxfam report on global inequality found.

Yet, despite the fact that America ranks first as the richest nation in the world in terms of gross domestic product, 37.9 million Americans live in poverty, accounting for 11.5% of the total population, according to the latest report from the U.S. Census Bureau. 
“We’re witnessing the beginnings of a decade of division, with billions of people shouldering the economic shockwaves of pandemic, inflation and war, while billionaires’ fortunes boom,” said Oxfam International interim Executive Director Amitabh Behar.
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Oxfam also found that the five richest men globally have more than doubled their vast wealth since 2020. If current trends continue, the world will have its first trillionaire within a decade, but poverty won’t be eradicated for another 229 years. 
“We expect to see continued concentration of extreme wealth at the very top,” added Rebecca Riddell, policy lead economic and racial justice at Oxfam.

There are, however, signs of progress, noted Steven Hamilton, assistant professor of economics at George Washington University.

As the labor market tightened over the same period, more workers have full-time jobs, Hamilton said, and “that has led to rapidly rising nominal wages among low-income people.”
Further, the rash of strikes in 2023 resulted in a string of labor deals where union workers including autoworkers, UPS drivers, airline pilots, and television and film writers pushed for and won higher pay. 
“There are cracks being made that can achieve a more equal world,” Riddell said.

‘Tax our extreme wealth’

But there is also more that could be done, Hamilton added.
“If we wanted less inequality, we could have it,” he said, citing policies such as progressive taxation, higher tax rates on corporate income, dividend and capital gains income, estate taxation, and increasing the earned income tax credit — “there are a lot of measures we could take to pretty radically reduce income inequality in the U.S.”
Shortly after Oxfam’s report was released, some of the world’s wealthiest people called on elected representatives of the world’s leading economies to introduce higher taxes on the very richest in society.
In an open letter to political leaders gathered at the annual World Economic Forum in Davos, Switzerland, more than 250 billionaires and millionaires said that they wished to deliver a clear message, “Tax our extreme wealth.”
The signatories of the letter, entitled “Proud To Pay More,” span 17 countries and include Disney heir Abigail Disney, screenwriter Simon Pegg and Valerie Rockefeller, an heir to the famed U.S. family.
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About 70% of Iowa voters were over the age of 50, an unprecedented turnout, according to AARP.
Yet, topics important to those voters, such as Social Security, the cost of prescription drugs and inflation, were not emphasized on the campaign trail.
Retirement experts say they want to see better conversations on Social Security, given a looming deadline the program’s funds face.

A caucus worker checks in voters at a caucus site at the Horizon Events Center in Clive, Iowa, on Jan. 15, 2024.
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Former President Donald Trump won the Iowa caucus by a landslide, due in part to strong turnout by older voters.
“While the turnout overall was low, 70% of caucusgoers who turned out were over the age of 50, which is unprecedented,” said Brad Anderson, Iowa state director at the AARP.

Historically, the turnout at Iowa caucuses tends to hover around 60% and traditionally skews older, he said.
“Given the weather, I think people are genuinely surprised at how robust the older caucusgoer turnout was,” Anderson said.
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An Iowa poll from the summer showed Trump up substantially, with Florida Gov. Ron DeSantis and former United Nations ambassador Nikki Haley tied. The final result showed support for the candidates “never shifted,” Anderson noted.
“The candidates would have been better served by focusing much more heavily on pocketbook issues that are important to older Iowans like Social Security, the cost of prescription drugs and inflation,” Anderson said. Instead, their advertising in the state largely focused on the economy and immigration.

New Hampshire voters are set to decide the state’s primary this week. However, the candidates have dropped to two after DeSantis suspended his campaign over the weekend and endorsed Trump.

To the candidates’ credit, they did not dodge the issue of Social Security when asked, Anderson said.
“They did talk about the issue, they did take it head on when asked in forums and they did agree to talk to us on the record on that issue,” Anderson said.
Trump, who has not debated fellow candidates, discussed Social Security in a December town hall.
“You don’t have to touch Social Security,” Trump said. “We have money laying in the ground far greater than anything we can do by hurting senior citizens with their Social Security.”
On the campaign trail, DeSantis has also said he would not “mess with” Social Security, most recently calling the benefits that are earned by paying payroll taxes “a promise” that “needs to be fulfilled,” in a January debate on CNN.
Haley, however, suggested raising the retirement age for younger individuals in their 20s, an idea DeSantis rejected.
“Social Security is going to go bankrupt in 10 years,” Haley said. “We have to keep our promises to seniors, but we also can’t put our head in the sand.”

The funds on which the Social Security Administration relies on to pay benefits have a projected depletion date of 2034. If nothing is done by that time, benefit cuts are certain.
Social Security’s actuaries anticipate just 80% of overall benefits may be payable at that time.
The shortfall for retirees may be more than 20%, based on the status of the fund dedicated to those benefits.
The “no changes needed” approach has frustrated retirement experts including Nevin Adams, a retiree who formerly served as chief content officer at the American Retirement Association.
“Something will have to give,” Adams said, such as changing how much taxes are withheld from workers’ paychecks or raising the retirement age.
“There’s not enough money, the system is not generating enough to keep that promise going,” Adams said.
While politicians may vow to protect current beneficiaries from seeing cuts, now is the time to have a conversation about the program for the sake of future generations, he said.
“It’s an acknowledgment that there is an issue here that really does need to be addressed,” Adams said.Don’t miss these stories from CNBC PRO: More

The restart of student loan payments could impact your credit, experts say.
As a result, borrowers should monitor their reports and make sure any new information is accurate.

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On-ramp period should protect your credit

Generally, failing to make timely payments on debts, including your student loans, can damage your credit. Payment history accounts for 35% of your score, according to FICO.
Typically, “missing just one payment can cause your credit score to drop by 50 to 100 points, or more,” said higher education expert Mark Kantrowitz.
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But before federal student loan bills resumed in October, the Biden administration announced that it would implement a 12-month “on-ramp” to repayment, during which borrowers would be shielded from most of the consequences of late or missed payments.
As a result, throughout this relief period, set to expire Sept. 30, 2024, borrowers who aren’t making payments shouldn’t see negative marks related to their student loans on their credit reports, Kantrowitz said.

The Education Department recently sent a letter to credit reporting and credit scoring companies reminding them that borrowers’ current activity is not necessarily indicative of an inability or unwillingness to make payments.
Nonpayment will likely be reported to the credit reporting agencies as “an authorized forbearance,” Kantrowitz said: “It doesn’t hurt the borrower’s credit, but it doesn’t help, either.”

That doesn’t mean you shouldn’t make payments if you can afford to, said Ted Rossman, senior industry analyst at Bankrate.
“Negative information shouldn’t be reported during the 12-month on-ramp period, but positive information should be included,” Rossman said.
Kantrowitz agreed.
“If a borrower is trying to improve their credit, they should make all of their required payments on time, by the due date,” he said. “Doing this every month consistently eventually leads to a better credit score.”

Still, check for errors on your credit report

Student loan borrowers should regularly check their credit reports to make sure the information is accurate, Kantrowitz said. You can get a free weekly copy of your credit report from each of the three major bureaus — Equifax, Experian and TransUnion — at Annualcreditreport.com.
If your loan servicer makes an error, such as reporting your loan as delinquent during the on-ramp period, you’ll want to bring it to their attention quickly, he said.
Creditors typically have 30 days to investigate your complaint, he said. In this case the creditor would be your student loan servicer, on behalf of the U.S. Department of Education.

Rossman also recommends filing a complaint with each credit bureau that is showing the wrong information.
“The easiest way to file disputes is on the credit bureaus’ websites,” he said. More