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    Betterment sees record growth, as GameStop frenzy 'shines a light' on investing

    Betterment launched a new savings option in 2019.Source: BettermentTrading apps aren’t the only ones benefiting from the rise of meme stocks.Betterment, a digital investment advisor, said it saw record growth in the first quarter of 2021. Despite offering so-called passive investing and not allowing clients to hand-pick stocks, Betterment’s CEO, Sarah Kirshbaum Levy, said excitement around GameStop and “gambling” on markets during the Covid pandemic still boosted business.”What it’s done is shine a light on investing generally,” said Levy, a former ViacomCBS chief operating officer, who took over the role in December. “Strategically, we’re very different from other players in the market, but we’re a nice complement.”In Betterment’s first full quarter with Levy at the helm, its new clients and net deposits grew 116% and 118%, respectively. The firm added $10 billion in fresh customer assets, bringing its total under management to $29 billion.The New York-based company was founded by former CEO Jon Stein in 2010, and offers retail investment advice, a platform for independent investment advisors, and 401(k) plans for small and medium-sized businesses. Its majority millennial clients use Betterment for “long-term” and “safety-net” investing, and often have more than one account, Levy said.”They’re having fun with someone else for day trading,” she said in a phone interview.Some of Betterment’s robo-advisor competitors have seen similar growth this year.Wealthfront told CNBC it saw the highest number of net deposits on record in March, and crossed $25 billion in assets under management in the quarter.Investment app Acorns doubled its accounts from the fourth quarter to the first quarter for its best three months on record. Its assets topped $4.5 billion.Free trading app Robinhood was at the center of the GameStop controversy amid a short squeeze in the stock, which was partially fueled by Reddit-driven retail investors. Still, it added 3 million customers in January alone, according to estimates from JMP Securities.Charles Schwab on Thursday said it added a record 3.2 million new clients in the first quarter — more fresh accounts than in all of 2020. CEO Walt Bettinger credited “heightened market attention to certain names via social media” as one factor that “significantly bolstered trading activity.”Levy, who was also chief operating officer at Viacom’s Nickelodeon unit, said she’s looking to embrace the stock market’s new intersection with social media. Betterment clients should be able to ride the viral stock wave safely, she said.”We see the evolution of the space, and want people to experiment on the margin without losing their life savings,” Levy said. “I worry about volatility — some people aren’t going to be able to dump their GameStop shares, and they’re going to get burned if they don’t have a safety net.”Enjoyed this article?For exclusive stock picks, investment ideas and CNBC global livestreamSign up for CNBC ProStart your free trial nowDisclosure: NBCUniversal and Comcast are investors in Acorns. More

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    New $3,000 child tax credit payments set to start in July. Here's what to know

    MoMo ProductionsParents may soon start getting monthly payments from the IRS, due to a recent change to the child tax credit.IRS Commissioner Charles Rettig said Tuesday that the agency was on track to start issuing that aid in July.Here’s what taxpayers need to know about the tax credit and income stream.Child tax creditThe American Rescue Plan, a $1.9 trillion Covid relief law that President Joe Biden signed in March, enhanced the child tax credit in a few ways.The changes are temporary — they apply only to 2021 taxes (i.e., during tax season next year) unless Congress extends or makes them permanent.The credit is available to families with kids.Before the new law, families got a $2,000 credit per qualifying child — generally a dependent under 17 years old.More from Your Money, Your Future:Here’s a look at more on how to manage, grow and protect your money.Social Security beneficiaries got bulk of latest stimulus checksBiden energy, infrastructure plans may be windfall for investorsHow to handle that big tax bill from Uncle SamSingle adults with up to $200,000 of income (and married joint filers earning $400,000 or less) got the credit’s full value. The amount fell by $50 for every $1,000 of income over those limits.That structure remains in place.But the American Rescue Plan offers a larger benefit to low and moderate earners, according to the Congressional Research Service. Higher-income families will generally get the same credit as under prior law.Larger creditMoMo Productions | DigitalVision | Getty ImagesFor one, the law raised the age of qualifying kids to 17, from 16. (This benefits recipients across the income scale.)Some families will get a larger maximum credit: $3,000 per kid ages 6 to 17 and $3,600 for younger children.Single adults qualify for the full value of that larger credit if their annual income is $75,000 or less. (The income threshold is $112,500 for head-of-household filers and $150,000 for married joint filers.)That larger credit amount gradually reduces for taxpayers with higher income.(The actual income level at which the credit falls to the original $2,000-per-child level depends on the number and age of qualifying children, according to the Congressional Research Service.)The law also made the credit fully refundable.Previously, Americans could get up to $1,400 of the credit as a tax refund. Taxpayers only got a refund if they had at least $2,500 of earned income. Now, there’s no cap on the refund amount and the earned-income threshold was erased — especially helpful changes for low earners.Monthly paymentsThe law also directed the Treasury Department to issue the credit in regular installments starting as early as July 1 — a departure from the typical lump-sum refunds once a year at tax time.Rettig told the Senate Finance Committee on Tuesday that the IRS would be ready to start monthly payments in July.This income is technically an advance on half a taxpayer’s expected 2021 credit amount. So, parents would get up to $300 a month per young child and $250 per older kid.Anyone who qualifies for a child tax credit can get the advance.Shaw Photography Co. | Moment | Getty ImagesBut the regular income stream will be especially helpful to lower earners, according to Elaine Maag, a principal research associate at the Urban-Brookings Tax Policy Center.It may help poor households reduce food insecurity and better manage monthly bills, she said.”Very low-income families are often low income because their wages are bouncing up and down,” according to Maag. “That turns out to be bad for children.”While the IRS is forecasting the payments will be monthly, they may ultimately come quarterly, depending on what the agency can manage, she said.Tax returnsThere’s a caveat: Taxpayers must file a tax return to get the advance payments. That’s the case even for people who don’t typically file a return.Taxpayers will get the remaining half of the child tax credit when filing their 2021 tax return (during the 2022 tax season).”People should be filing those right now so they’re eligible for the payments,” Maag said of tax returns.Constantine Johnny | Moment | Getty Images”But if they don’t, they’ll still be able to get the full child tax credit,” she added. “They’ll just get it as they normally would when they file their taxes next year.”The IRS extended the federal tax filing deadline for 2020 returns by a month, to May 17.Parents will be able to opt out of the advance payments — and elect to receive the full credit at tax time in 2022 — on an online portal the IRS will roll out this year.Paying back the IRSThat portal will be important for another reason, too: It’s where taxpayers can update information that may have changed since they filed their tax return and which would therefore alter the size of their credit.That may include changes in income, filing status or number of children.The IRS estimates monthly advance payments based on data from one’s 2020 income tax return (or, if unavailable, a 2019 return).Taxpayers who receive a larger advance than they’re eligible for will generally have to repay the excess. That may occur, for example, if a taxpayer gets a higher-paying job or a child now lives with another parent or relative.Protections from repaymentSamuel Corum/Bloomberg via Getty ImagesLow earners may be protected from having to repay a portion of the funds, though.Up to $2,000 per child would be shielded from repayment if the error is due to net changes in the number of qualifying children, according to the Congressional Research Service.However, credit amounts exceeding $2,000 would still have to be repaid.Single filers with less than $40,000 in income qualify for the full “safe harbor” amount. (The income threshold is $50,000 for heads of household and $60,000 for married couples filing a joint return.)The $2,000 amount gradually phases out as one’s income rises. Single filers with more than $80,000 of income (or, $100,000 for heads of household and $120,000 for joint filers) wouldn’t get any safe harbor benefit. More

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    NBA legend Dwyane Wade buys ownership stake in Utah Jazz

    Dwyane Wade #3 of the Miami Heat blows on his hand during the team’s shoot around before their game against the Utah Jazz at the Vivint Smart Home Arena on December 12, 2018 in Salt Lake City, Utah.Chris Gardner | Getty ImagesDwyane Wade, 13-time NBA All Star and three-time NBA champion, is joining the ownership group of the Utah Jazz, the Jazz announced Friday.The terms of the transaction were not disclosed.Wade will join the ownership group led by technology entrepreneur and Qualtrics founder Ryan Smith and his wife, Ashley, who acquired a majority interest in the Utah Jazz in late 2020. “Shortly after Smith acquired the Utah Jazz, he and Wade began conversations about Wade joining the Utah Jazz ownership group and Smith Entertainment Group (SEG), the first of many joint business ventures,” a statement from the Utah Jazz read.”As a kid from the south side of Chicago, this partnership goes beyond my wildest dreams of playing basketball, and I hope to inspire the next generation of dreamers,” Wade said in a statement.Wade joins a growing list of athletes, current and retired, who have invested in sports teams across the globe. Earlier this week, former Yankees star Alex Rodriguez joined former Walmart e-commerce CEO Marc Lore to buy the Minnesota Timberwolves for a reported $1.5 billion.Correction: This story was updated to remove mention that Smith’s ownership group is the youngest in the NBA. More

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    Here's how new voting laws across the nation sparked a major corporate backlash

    A rash of new voting legislation has caused an uproar among progressive activists, leading to some big businesses to take a political stance. Some corporations and executives have voiced opposition to the new bills, most notably in Georgia.Amazon, General Motors, and others released a joint statement in opposition to voting restrictions. Earlier in the month, Major League Baseball reportedly moved the All-Star Game out of Georgia in protest of the new bill, and the CEO of Delta Airlines said the voting law was “unacceptable.””Well, the corporations obviously have no idea what they’re talking about because [from] many of their objections, it’s pretty clear they haven’t actually read the bill,” Heritage Foundation senior legal fellow Hans von Spakovsky said.”They don’t seem to understand that, that … the requirements of Georgia law are really not that much different from numerous other states across the country,” he said. “In fact, in some aspects, their law is less strict than places like New York and New Jersey.”The new law in Georgia requires voter ID for absentee voting, limits the use of drop boxes, and restricts giving out food and water to voters waiting in line near polls. Proponents think these measures will increase security and faith in elections.Opponents of such bills say they’re targeting low-income voters who have less flexibility to vote during work hours and are less likely to have a driver’s license or other forms of ID. “Georgia, perhaps more than any other state, has benefited financially from the success of the civil rights movement,” People For the American Way President Ben Jealous said. “And so Governor Kemp should not find it surprising that if he wishes to hurl his state back into Jim Crow, that big business and that corporations would withdraw from their involvement in his state,” Jealous said.Watch the video above to find out how these voting laws caused a corporate backlash. More

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    Car shoppers should expect high prices and limited inventory this spring

    Ty Wright | Bloomberg | Getty ImagesIt’s a challenging time to be a car buyer.High consumer demand coupled with a manufacturing shortage of microchips — key parts needed for today’s autos to operate — have pinched new-car inventory at dealerships across the country. And with drivers seeking affordable options for hitting the open road, the used-car market isn’t offering much of a reprieve.”It’s a seller’s market, not a buyer’s market,” said Kelsey Mays, senior consumer affairs editor for Cars.com. “And sellers don’t have that much to sell.”Zoom In IconArrows pointing outwardsThe average price paid for a new car is about $40,000, according to Edmunds.com. For used cars, it’s roughly $23,000.A year ago, when dealerships and manufacturing plans were shut down due to the pandemic, chipmakers pivoted to focusing on the consumer electronics industry — i.e., computers and gaming consoles — and are still scrambling to meet the renewed demand from automakers.”The chip shortage is causing a lot of mayhem,” said Ivan Drury, senior manager of insights at Edmunds.com. “But those chips are critical to a car because it’s basically a rolling computer.”Some manufacturers have new cars produced that are sitting in their parking lots and waiting for chips to arrive and get installed, Drury said.”It’s what they can do to get the cars as close to completion as they can,” he said.One result from squeezed inventory is that fewer lower-cost vehicles are available. At Cars.com, listings for cars selling below $25,000 dropped about 19% in March from February. There’s also just 38 days worth of inventory at dealerships, Mays said. That compares to the usual 65 to 70 days’ worth.”What’s remaining on dealer lots is inventory that’s more expensive,” Mays said.More from Personal Finance: How investors can spot the next Bernie MadoffPressure mounts for Biden to forgive student debtHere are smart things to do with your tax refundHowever, while the chip shortage is expected to impact production through the end of the summer or early fall, not all automakers — or specific models — have been affected equally. “It could be a good time to explore other brands if you’re usually loyal to just one,” Drury said. “There could be a vehicle that has the same features, the same color … but just might be a different brand.”Although manufacturer incentives are not as plentiful as they’ve been in the past, there are some models that continue to be discounted. The average incentive amount is $3,527, down from $4,415 in March 2020 and $3,789 in March 2019, according to estimates from J.D. Power and LMC Automotive.It could be a good time to explore other brands if you’re usually loyal to just one.Ivan DrurySenior manager of insights at Edmunds.comChevrolet, for example, is offering deals on the 2021 Equinox that range from $3,500 to $6,500 for most versions through May 3, according to Cars.com. After the discount, the price would be anywhere from $21,000 to $38,000. The new Jeep Renegade comes with a factory discount of $2,000 to $6,000, putting the price you’d pay between $20,000 and $33,000.If you’re able to get a manufacturer’s discount, don’t assume there is no additional wiggle room in the price.”That [reduced price] should be the starting point for negotiations,” Mays said.Additionally, high demand for used autos means your existing car may be more valuable, as well. The average amount for a trade-in is about $17,000, according to data from Edmunds. The average age of those cars is about 5.5 years.”Those trade-in values are pretty dramatic,” Drury said.Average cost of financing a car New car More

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    Danish energy giant Orsted is pivoting to onshore wind in new $684 million deal

    lupmotion | iStock | Getty ImagesOrsted said Friday it had reached an agreement with Brookfield Renewable to purchase a 100% equity interest in the latter’s Irish and U.K. onshore wind business, Brookfield Renewable Ireland.Orsted said the deal would see it enter Europe’s onshore market. In 2014 the company, which was then known as DONG Energy, divested its last activities in onshore wind to focus on the offshore sector.According to Orsted, the agreement has an enterprise valuation of 571 million euros ($684 million), although this figure is subject to adjustments. The deal is slated to close in the second quarter of 2021.Brookfield Renewable Ireland, or BRI, is headquartered in the Irish city of Cork and specializes in the development and operation of onshore wind farms.Orsted described BRI as having “an attractive portfolio” which includes 389 megawatts (MW) in operation and under construction as well as a development pipeline of over 1 gigawatt (GW).”In the US, we’ve built a strong onshore business with 4 GW in operation and under construction,” Orsted CEO, Mads Nipper, said in a statement.”The European market for onshore wind power is expected to grow significantly in the coming years,” Nipper added.He went on to state his firm’s acquisition of BRI would provide it with “a strong platform that expands our presence in onshore renewables to Europe.”Europe is home to a well-developed wind energy industry. According to figures from WindEurope, 2020 saw 14.7 GW of wind energy capacity installed there.The industry body says 80% of these installations were in the onshore sector, with total onshore capacity amounting to 194 GW.In the U.S., onshore capacity stands at more than 122 GW, according to the American Clean Power Association. China, a dominant force in wind energy, boasts over 278 GW of onshore capacity, the Global Wind Energy Council says.Capacity refers to the maximum amount that installations can produce, not what they are necessarily generating. More

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    Robinhood and Coinbase top Apple App Store

    Coinbase is a popular option for buying bitcoin and other cryptocurrencies.Todd Haselton | CNBCWatch out social media, finance apps are becoming a more popular form of entertainment on people’s phones.Trading platforms Robinhood and Coinbase grabbed the top two spots in Apple’s App Store this week as Americans turn their attention to stock and cryptocurrency markets.Robinhood notched the no. 1 spot on Friday, followed by crypto trading platform Coinbase, according to data from Sensor Tower. TikTok was third. The surge in popularity comes as Coinbase made its debut on the Nasdaq on Wednesday, and bitcoin topped $64,000 for the first time.The surge in popularity underlines a boom in retail trading during the pandemic and “meme stock” culture around names like GameStop. The video game retailer became a household name in January after a group of traders on Reddit sparked a historic short squeeze.Typically, social media and entertainment options such as TikTok, Reddit and Instagram are the top apps. The rankings reflect the momentum in downloads of a certain app, not necessarily the total cumulative downloads.This isn’t Robinhood’s first time at the number one spot. In January, at the height of the GameStop controversy, the brokerage firm was the most popular app in Apple and Google app stores. Webull, another trading app, was second. Coinbase, Square’s Cash App and Fidelity also made the top 10.Robinhood, which shut down the buy side of certain stocks during the height of the GameStop frenzy, saw blowback on social media, and its CEO was later called testify in front of Congress. But Robinhood still added an estimated 3 million customers in January alone, according to estimates from JMP Securities.Venture capital investors watch engagement and download numbers closely. Until recently, those metrics had mostly been used to measure the success of social media apps. Robinhood investors are now using similar metrics. It was able to raise $3 billion in capital over a few days in January, which investors told CNBC was due to its eye-popping growth as it dealt with a public relations and regulatory crisis.Charles Schwab said Thursday it added a record 3.2 million new clients in the first quarter — more new accounts than in all of 2020. CEO Walt Bettinger credited “heightened market attention to certain names via social media” as one factor that “significantly bolstered trading activity.”– CNBC’s Steve Kovach contributed reporting. More

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    Fed's Waller says the economy is 'ready to rip' but policy should stay put

    Federal Reserve Governor Christopher Waller said Friday he sees the U.S. economy as set to take off, though not at a fast enough pace that the central bank should start tightening policy.”I think the economy is ready to rip,” Waller told CNBC’s Steve Liesman during a “Squawk on the Street” interview. “There’s still more to do on that, but I think everyone’s getting a lot more comfortable with having the virus under control and we’re starting to see it in the form of economic activity.”Those comments came amid a decidedly upward move in economic data.In March alone, nonfarm payrolls jumped by 916,000, retail sales saw a 9.8% stimulus-fueled boom, and multiple manufacturing gauges reached their highest levels in years.There are further indications that job growth continued into April, with jobless claims last week tumbling to 576,000, easily the lowest level since the early days of the coronavirs pandemic.Coupled all that with a vaccination pace in excess of the 3 million a day, and it adds up to a strong outlook, Waller said.”We can get the virus pretty much under control. We get 70% of the population vaccinated, then all the fundamentals are there for good, strong growth that we left back in January, February of 2020,” he said. “We’ve still got room to catch up to where we were. We’re making up for lost ground.”‘No reason to be pulling the plug’The economy officially entered recession in February 2020, according to the National Bureau of Economic Research, which makes the official call on contractions and expansions. While the U.S. is poised for another quarter of strong growth, gross domestic product is still running a bit below where it was before the Covid-19 onset.That’s part of the reason Waller concurs with his fellow central bankers in seeing the need to keep policy loose. The Fed is currently holding short-term borrowing rates near zero while it purchases at least $120 billion of bonds each month.In a major policy shift last year, the Fed pledged that it will not raise rates until it sees full and inclusive employment, and is willing to tolerate inflation a bit above the traditional 2% target until it gets there. Fed officials have expressed concern about the uneven nature of the recovery, particularly regarding those at the lower end of the income spectrum.”We’ve got to make that up first,” Waller said. “Other parts of the economy seem to have really come back. We still have relatively high unemployment rates, particularly for minorities, and so we’ve still got a long way to go. There’s no reason to be pulling the plug on our support till we’re really through this.”Waller added that he thinks inflationary pressures that have begun to show up are likely temporary, a view widely held at the Fed. The consumer price index rose 2.6% in March from a year ago.Waller said he expects the Fed’s preferred inflation gauge based on personal consumption expenditures could run around 2.5% for 2021.Become a smarter investor with CNBC Pro.Get stock picks, analyst calls, exclusive interviews and access to CNBC TV.Sign up to start a free trial today. More