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In February 2022, the IRS suspended automated collection notices to devote resources to its backlog.
But starting next month, notices will resume and the IRS will send a “special reminder letter” to taxpayers with unpaid balances.
If you receive a notice, experts say it’s critical to take action and pay your balance or set up a payment plan.

The Good Brigade | DigitalVision | Getty Images

How IRS collection notices work

Typically, CP14 is the first IRS notice for an unpaid tax balance, followed by three or four reminder letters, every five weeks, explained Darren Guillot, national director at Alliantgroup, who previously served as IRS deputy commissioner of the agency’s small business division.
It’s possible many taxpayers only received that first letter before the IRS paused automated collection notices, he said. 
However, the agency is waving roughly $1 billion in late-payment penalties for millions of taxpayers with balances under $100,000 from returns filed in 2020 and 2021. The relief is automatic, but late-payment penalties for unpaid balances from 2020 and 2021 will resume April 1, 2024.

How to respond to IRS letter: ‘You can’t bury your head’ 

While late-payment penalty relief may be welcome news for taxpayers with debt from 2020 or 2021, you still need to pay off those balances.    
“You can’t bury your head and pretend it’ll go away,” Guillot said, emphasizing the importance of responding to collection notices promptly to avoid further enforcement actions.  
“The vast majority of taxpayers can set up a payment plan for themselves” by scanning a QR code on their IRS notice, he said.  

The vast majority of taxpayers can set up a payment plan for themselves.

Darren Guillot
National director at Alliantgroup

If you owe $50,000 or less, including tax, penalties and interest, you can set up a long-term payment plan online. You can also set up a short-term payment plan, 180 days or less, online for less than $100,000 in combined tax, penalties and interest.
“The online installment payment application is just fantastic,” said Phyllis Jo Kubey, a New York-based enrolled agent and immediate past president of the New York State Society of Enrolled Agents. “I use that online installment agreement all the time for my clients.”
If you choose the monthly payment option and select a very small amount, such as $2, for example, the system will default to the minimum monthly payment it will accept for your balance, she said. 
Kubey typically urges clients to contract for the minimum monthly payment and then pay extra if they can afford it. “It’s super convenient,” she added.

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Some colleges offer and market financial products to students that can be exploitatively pricey, a new CFPB report finds.
Here’s what to look out for.

Andersen Ross Photography Inc | Digitalvision | Getty Images

Some colleges offer and push financial products to students that can be exploitatively pricey, a new report by the Consumer Financial Protection Bureau finds.
“This analysis indicates that hundreds of colleges are paid by financial institutions to market certain products to students,” the bureau writes. “This can lead to students paying more for financial products than they would on the open market.”

Between 2021 and 2022, financial institutions generated over $17.3 million in revenue from more than 650,000 student bank accounts, the CFPB says. These banks may hit students with overdraft fees as high as $36, among other charges, even as many other financial institutions have ended such practices. Account holders at historically Black colleges and universities, or HBCUs, and Hispanic-servicing institutions paid especially high fees, on average.
Meanwhile, credit card issuers paid colleges and affiliated organizations over $19.6 million in 2022, with more than 140 partnerships between schools (and their associations) and credit card issuers.
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Lawmakers have tried to curb the marketing of financial products at colleges. In 2008, Congress passed the Higher Education Opportunity Act, which established some protections for students against unfair and deceptive private educational lending. The Credit Card Accountability Responsibility and Disclosure Act, or CARD Act, of 2009, reined in aggressive advertising of credit cards on campus.
Despite such legislation, “many colleges continue to offer and market financial products in ways, including through online and email advertisements, that may mislead students under certain circumstances,” according to the CFPB.

“Reading this report, I was disappointed to see that some of these practices are apparently still going on,” said Betsy Mayotte, president of The Institute of Student Loan Advisors, a nonprofit.
Here’s what students should know, consumer advocates say.

Students can pick where financial aid ‘refunds’ go

Students typically receive a “refund” or “credit balance” of their financial aid after their school has applied their funding to tuition and fees. “Disbursement of credit balances are vital to students,” the CFPB says, and help students cover essentials “including food [and] housing.”
Institutions often contract with banks to offer deposit accounts with these funds, according to the bureau.
In other cases, colleges partner with financial institutions to offer bank accounts or prepaid cards, separate from financial aid disbursement. Many schools allow students to use their ID cards as debit or prepaid cards, if they participate with the partnered bank.

“When students choose to use their IDs for financial services, they may be required to open a new account with a specific financial institution,” the CFPB writes. And in some instances, misleading marketing can make it seem like a student must use their ID cards to access their remaining financial aid.
Don’t fall for it, said higher education expert Mark Kantrowitz.
“Students have a right to have their financial aid refund deposited to a bank account of their choosing,” he said. “They do not have to have it deposited to the debit card or bank account picked by the college.”
Students should spend some time shopping around and looking for an account with the least fees, Kantrowitz added. Some online banks offer free checking accounts and free withdrawals from any ATM.
When you’ve found a good option, colleges usually have a form where you can provide the bank routing and account number of your choosing.

Credit cards should be mostly avoided

Although credit card companies have scaled back their marketing on college campuses, problems persist, the CFPB found. “College students continue to rely on credit cards to help cover costs,” it says.

In general, students should avoid carrying a balance on a credit card, experts say.
While undergraduate federal student loans disbursed last summer had an interest rate of 5.5%, the average interest rate on credit cards is more than 20% of late.
Even if your college appears to be recommending a card, you should be wary, said Elaine Rubin, director of corporate communications at Edvisors. “Credit cards can be high risk,” Rubin said.
Young people looking to build their credit may want to explore secured credit card options, she added. These typically require a security deposit and have smaller credit limits than unsecured cards. More

ETF Strategist

Assuming the U.S. Securities and Exchange Commission approves spot bitcoin ETFs, more companies might decide to offer it within their 401(k) lineup.
Retirement savers who believe in the long-term potential of the cryptocurrency will have more access to crypto as an asset class, either through their company 401(k) plan or through solo 401(k)s, if applicable, and self-directed IRAs.
Bitcoin is up over 150% year to date, but it is extremely volatile, and many investors don’t have the risk appetite to invest even a portion of their retirement dollars in this emerging asset class.

Paul Yeung | Bloomberg | Getty Images

Retirement savers who want a taste of bitcoin without owning the cryptocurrency coins directly could soon gain the access they’ve been craving.
The Jan. 10 deadline is nearing for U.S. regulators to decide whether to allow a spot bitcoin exchange-traded fund, which would attempt to track the real-time price of bitcoin, and industry participants are feeling hopeful the U.S. Securities and Exchange Commission will give it a thumbs-up.

It remains to be seen how popular such an ETF would be with retail investors, but more than 10 asset managers, including the world’s largest, BlackRock, are working to get their version of a spot bitcoin ETF approved. Industry participants predict that after these offerings become available, it won’t just be high-risk traders, but also retirement savers who will have more access to crypto as an asset class, either through their company 401(k) plan or through solo 401(k)s, if applicable, and self-directed IRAs.
“It’s a big step toward mainstream adoption of bitcoin and cryptocurrency. [Investors] will have more options available,” said Chris Kline, chief revenue officer of Bitcoin IRA, which allows retirement savers to invest in more than 60 cryptocurrencies within retirement accounts. 

More from ETF Strategist

Here’s a look at other stories offering insight on ETFs for investors.

Right now, interest in bitcoin is high. The cryptocurrency is up over 150% this year after a dismal 2022, and the spot bitcoin ETF race has helped push its value higher. But it remains an extremely volatile asset class with as many enemies as true believers.
Many major pension funds have earmarked dollars to crypto as an asset class in recent years. According to the 2022 CFA Institute Investor Trust Study, 94% of state and local pension plans had some crypto exposure. Fidelity Investments, the largest 401(k) plan administrator in the U.S., first added a bitcoin fund option in the fall of 2022 to allow employees who are comfortable with the risks and volatility of cryptocurrency to invest in bitcoin within their company-sponsored 401(k) plan.
Here’s what retirement savers who do see long-term potential in cryptocurrency as an asset class need to know about the potential use cases for spot bitcoin ETFs.

Options to own crypto in retirement accounts are limited

Many employers have been hesitant to offer crypto in a 401(k) based on 2022 guidance from the U.S. Department of Labor, according to industry experts.
With options to own crypto within retirement accounts such as 401(k)s and IRAs being limited, most people who own crypto today do so outside of retirement accounts. Many take a self-custody approach or use an exchange such as Coinbase or Gemini. Options are also available in nonretirement accounts at Fidelity and Betterment, for example.
Accordingly, retirement savers seeking to hold crypto assets in a retirement account typically need to find a self-directed provider that allows crypto investments, and that list is also limited. Once spot bitcoin ETFs are approved, however, expect more providers to allow them, and more options for retirement savers to invest in this fashion, say industry experts. 

If SEC approves over Department of Labor concerns, what happens next

Assuming the SEC gives an affirmative nod to spot bitcoin ETFs, as expected, more companies might decide to offer it within their 401(k) lineup, said Steven T. Larsen, a certified financial planner and founder of Columbia Advisory Partners in Spokane, Washington.
The question is how many.
The Department of Labor doesn’t prohibit crypto in company retirement plans, but in its March 2022 guidance, “it put a pretty heavy thumb on the scale for plan sponsors considering it,” said Joshua Rubin, vice president of legal at Betterment. 
“At this early stage in the history of cryptocurrencies, the Department has serious concerns about the prudence of a fiduciary’s decision to expose a 401(k) plan’s participants to direct investments in cryptocurrencies, or other products whose value is tied to cryptocurrencies,” the Department of Labor wrote in a compliance assistance release. 

A spot bitcoin ETF may solve some of the hesitancies the DOL outlined, including concerns related to custody and recordkeeping and valuation, Rubin said. Still, employers may be hesitant to jump on board, at least initially, some industry watchers said.
“Employers will be very reticent about being the first ones out there to allow this,” said Tim Picciott, a CFP with Lexington, Massachusetts-based Innovative Advisory Group. “I don’t see most HR departments and plan trustees just signing on. I think it’s going to have to be a move from the workers” asking for it, he said. 

Spot bitcoin ETFs likely to ‘be everywhere’

While market-leading custodians such as Schwab and Fidelity don’t allow investors to invest directly in cryptocurrencies within individual retirement accounts, they have become more involved in the crypto market on multiple fronts, from venture investments both financial services giants made in a crypto trading infrastructure company to a thematic crypto fund launched by Schwab.
But to invest directly, retirement investors need to work with other providers such as Bitcoin IRA, BitIRA and iTrustCapital.
However, market watchers predict more mainstream custodians will offer spot bitcoin ETFs once they become available. “It will be everywhere once these come out,” said Larsen, who is also the founder of Defi Steward, which helps investment advisors manage digital assets for clients. “This is great for people who want exposure to bitcoin as an asset class,” he said.

Tax advantages for long-term crypto investors

There are a lot of factors that go into whether bitcoin has a place in your retirement portfolio. First and foremost, bitcoin is extremely volatile and many investors don’t have the risk appetite to invest even a portion of their retirement dollars in this emerging asset class. Investors also need to consider whether they want to hold bitcoin directly in a self-directed IRA, or solo 401(k), if applicable, or invest in bitcoin through an ETF. 
With a spot bitcoin ETF, having a professional manager who is going to be diversifying access to crypto could lessen — though not eliminate — risk, said Mark Parthemer, chief wealth strategist at Glenmede, a wealth management firm.

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On the other hand, there can be advantages to owning bitcoin directly through a self-directed IRA, Kline said. For instance, when it comes time to take your withdrawals after age 59½, you may be able to receive your distribution as the crypto asset itself, instead of taking the cash. When you sell the spot bitcoin ETF, the redemption would likely be for cash, he said. It’s an approach the SEC regards as safer.
In either case, there can be tax advantages for long-term investors who invest in crypto through a retirement account versus a brokerage account, Parthemer said. Assuming the investment increases dramatically, a retirement account allows investors to avoid the tax at the time of sale. If it’s in a Roth IRA and you meet the holdings requirements, the withdrawals aren’t subject to tax. By contrast, if you held it in a regular brokerage account and sold it, you could be subject to capital gains taxes at the time of sale, Parthemer said.

Options if your employer won’t offer a spot bitcoin ETF

If your employer won’t offer a spot bitcoin ETF in its 401(k) plan, you could always ask your employer to reconsider. If the answer is no, you can still open an IRA with a provider that makes spot bitcoin ETFs available.
The new spot bitcoin ETFs will be eligible for use in all types of IRA accounts — deductible, nondeductible, Roth and SEP, as well as solo 401(k) plans, said Ric Edelman, founder of Edelman Financial Services, in an email.

“Given the outsized returns that many people expect these ETFs to produce over time, buying them inside an IRA account is going to be a common recommendation by financial advisors,” said Edelman, who wrote the 2022 book, “The Truth About Crypto” to educate advisors on the asset class and has described it as a once-in-a-generation wealth opportunity.
There are applications for an Ether ETF, but that’s likely to be approved by the SEC at a later point, Larsen said. “The spot bitcoin ETF will be the test case.” More

The IRS has unveiled a “voluntary disclosure program” for businesses that claimed a pandemic-era tax credit in error and want to pay the money back.
The new voluntary disclosure program offers the chance to repay credits received at a 20% discount to cover third-party promoter fees.  
The deadline to apply to the voluntary disclosure program is March 22, 2024.

IRS Commissioner Daniel Werfel testifies before the House Small Business Committee on July 17, 2013.
James Lawler Duggan | Reuters

The IRS has unveiled a “voluntary disclosure program” for businesses that claimed a pandemic-era tax credit in error and want to pay the money back.
Worth thousands per employee, the employee retention tax credit, or ERC, was designed to support small businesses affected by the Covid-19 pandemic. The lucrative tax break sparked a cottage industry of firms pushing employers to wrongly claim the credit. 

The IRS unveiled a “special withdrawal process” for companies with pending claims in September. The new voluntary disclosure program offers applicants the chance to repay credits received at a 20% discount to cover third-party promoter fees.  
However, it’s a “limited-time offer,” IRS Commissioner Danny Werfel said during a press call Thursday. The deadline to apply to the voluntary disclosure program is March 22, 2024.
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“We urge employee retention credit recipients who think they were misled by promoters to review these special programs, including either the disclosure program or the withdrawal option, depending on their situation,” Werfel said.
The new program comes roughly two weeks after the IRS announced it’s sending more than 20,000 ERC rejection letters to taxpayers as part of its crackdown on “dubious” filings. 

Werfel said the IRS is sending another round of letters to companies that wrongly received the ERC and those taxpayers will not be eligible for the voluntary disclosure program.
“It’s for those that have received the claim, or received their credit, and have not yet heard from the IRS,” he said.
To qualify for the program, companies must provide the IRS with contact information for any advisors or tax preparers who assisted them with the erroneous claim, along with details about the services.  

Companies can apply for the program by filing Form 15435, which can be submitted through the IRS’ document upload tool.
Participants won’t owe interest or penalties if they repay 80% of the credit upon signing the closing agreement. However, interest and penalties will apply for repayment via installment agreements.Don’t miss these stories from CNBC PRO: More

Both new and used cars were expensive for drivers this year, as poor inventory and high borrowing costs affected affordability.
Yet, consumers might begin to see cooler prices in 2024 due to improvements in the supply chain bolster inventory and declining interest rates.
“It’s going to be a much better time for a consumer to buy a car in 2024 versus this year,” said Paul Waatti, an industry analyst at market research firm AutoPacific.

Maskot | Maskot | Getty Images

Both new and used car purchases were expensive for drivers this year, as limited inventory and high borrowing costs affected affordability.
“Interest rates have taken such a toll on purchasing power,” said Ivan Drury, director of insights at Edmunds.

Yet, consumers might begin to see lower prices in 2024, experts say. Improvements in the supply chain ought to bolster inventory, while interest rate cuts are on the horizon.
“It’s going to be a much better time for a consumer to buy a car in 2024 versus this year,” said Paul Waatti, an industry analyst at market research firm AutoPacific.
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November was the third consecutive month when the average transaction price for a new car was lower than last year. The average new car sold for $48,247 in November, an increase of less than 1% from October, but a 1.5% decline from last year, according to data from Kelley Blue Book.
Edmunds puts the November average at slightly less, $47,939, per data it provided to CNBC.

‘As supply goes up, we tend to see more incentives’

In 2023, low inventory in a high-demand market left little room for discounts. That is likely to change next year as dealers will be motivated to sell more cars on the lot, experts say.
“As supply goes up, we tend to see more incentives being thrown on the hoods,” said Waatti.
Car shoppers could see more models with lower sticker prices before discounts, too. As supply chains continue to normalize, “we’re going to start to see automakers build more lower-end models, which are more affordable, and that should help bring that average monthly payment down,” he said.

Electric vehicle shoppers may see more deals

Most of the consumers who bought a new EV in the last year are still considered “early adopters,” or buyers who like to have the latest technology and are not as price sensitive, said Waatti.
“We’ve pretty much run through all of the early adopters at this point. Now we’re seeing the natural demand for EVs to show up and it’s not as robust, posing a slight decline in sales,” he said.
Some automakers are recalibrating their production in response to that lower demand. For instance, Ford Motor plans to cut production of the F-150 Lightening by half in 2024: “That’s a very high number,” said Drury.
Similarly, General Motors says they’re pushing out the launch of the all-electric Chevrolet Silverado for another year, said Drury.
“These vehicles we had very high hopes for, a lot of anticipation…they’re getting unfulfilled,” he said.

While market growth is expected to continue, it’s not going to be at the same rate like the past 12 to 18 months, said Waatti.
After two to three years of “full steam ahead,” electric cars are now “sitting on dealer’s lots collecting dust,” said Drury: “We don’t have the enthusiasm we used to.”
As manufacturers and dealers look to clear out those vehicles, shoppers might come across more plentiful incentives next year as well as less expensive new models.

2 things to consider when car shopping in 2024

Here are two key things to keep in mind if you’ve been waiting for prices to cool before buying a new car:
1. Incentives are making a comeback: While incentives such as rebates and discounts slightly declined in October, they rebounded to the highest point of the year in November, according to Cox Automotive.
More incentives are likely to appear as more cars become available on the lot, said Drury. If you need a new car, “look for those incentives, they do exist,” he said.
2. Make the most of your trade-in: Limited supply of new and affordable cars in the past years pushed buyers into the used market. As demand for used cars increased, so did the prices, said Waatti. However, used car values are coming down, meaning trade-in values are weakening as well.
“We’re not defying market norms anymore, your value is not going to be going up anytime soon,” said Drury.
Get an estimate of the trade-in value from a dealer and consider selling the car yourself if you want to maximize the value of the car, said Waatti. More

Almost half, 43%, of unmarried American adults want to get married in the future, according to a 2022 Harris Poll survey. But only 28% said they want to have a child.
This trend has contributed to the growth of a household configuration popularly referred to as DINKs: “dual income, no kids.”

“This idea and household configuration of dual-income partners living alone without children is on the rise,” according to Misty L. Heggeness, an associate research scientist at the University of Kansas’ Institute for Policy and Social Research. “In 2022, it was around 43% of households, and that’s about a 7% increase from a decade previously.”
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Almost half, 46%, of adults in the Harris Poll survey who do not have children and do not want to have a child in the future pointed to their personal financial situation as a reason, while 33% noted housing prices as a factor.
“When we advise clients about having children, we honestly don’t even give them the full real details and the real numbers,” said Shannon McLay, founder of The Financial Gym. “It’s one of those things if you see the math of it all, it might make you decide to not have children.”

Besides eliminating expenses such as child care, DINKs can also fully reap the benefits of combining their finances.

“Being able to split our finances, to look at both of our incomes coming in and see how we’re able to handle all of that because we don’t have extra finances with a child or anything like that, it’s much more comfortable,” said Taylor Graves, a 32-year-old project manager in health-care technology who has been living the DINK lifestyle for 10 years. “We get to focus more on the things that we want to do, saving a lot of that money for the future and worry less about the day-to-day finances of the house and our bills.”
Watch the video to find out more about what it’s like to live the DINK lifestyle. More

Tesla is slated to see the highest net inflows from retail traders of any security in 2023, research shows.
It’s a crowning moment for the stock, which climbed in individual investor interest in recent years.
Everyday investors say they like Tesla because of its disruptive technology and focus on the future.

Several Tesla electric vehicles are parked in front of a Tesla service center in the Kearny Mesa region, in San Diego, California, U.S., October 31, 2023. 
Abhirup Roy | Reuters

Marko Sustic has bet big on Tesla this year.
The investor, who also happens to work in the European auto industry, bought Tesla shares nearly every month in 2023 and has almost doubled the size of his position over the course of the year. Sustic has no other electric vehicle holdings out of a belief that competitors won’t be able to beat Tesla’s technology.

“There is no catching up with them,” said the 32-year-old, who also has two Tesla cars at his home in Croatia. “It’s just a matter of time when the stock will explode.”
Sustic isn’t alone. Tesla, which entered the S&P 500 three years ago this week, is on pace to attract the largest flow of individual investor dollars of any security in 2023, according to data from Vanda Research. The firm calculates net inflows to find these favorites, subtracting the amount of stock sold from what was bought.
That means Tesla will eclipse even the SPDR S&P 500 ETF Trust (SPY), which tracks the largest stock market index in the world. This underscores the stock’s fast ascent to retail-investor glory, especially considering Tesla wasn’t even among the top 20 equities that individual investors bought before 2019, Vanda data shows.

A banner year

Tesla’s increasing favor among retail traders can be tied to its comeback in 2023, according to Christopher Schwarz, a finance professor at the University of California Irvine. After plunging 65% in 2022, the Elon Musk-led stock has more than doubled in 2023.
The stock has outperformed the market this year in tandem with other mega-cap technology equities dubbed the “Magnificent 7.” Many investors looking to play “disruptive” technology in this elite group have focused on Tesla and chipmaker Nvidia. But after more than tripling this year thanks to an appetite for all things tied to artificial intelligence, Schwarz said Nvidia may be too expensive for many individual investors.

Schwarz researches retail trader behavior, and thinks a lot of attention comes from Musk. The Tesla CEO’s contentious purchase of X, formerly known as Twitter, has brought increased media coverage as well as scrutiny of the billionaire business mogul, Schwarz said.
When faced with thousands of stocks to choose from, Schwarz said individual traders mainly look for names that grab their attention, are familiar and have saliency to current trends. Given Musk’s persona, the growing ubiquity of Teslas on the road and concerns about climate change, Schwarz said Tesla checks many boxes for everyday investors.
“It’s always in people’s minds to trade when they’re looking for something to trade,” Schwarz said.

Stock chart icon

Tesla over the last 5 years

‘That was a bargain’

Individual investors told CNBC that Tesla’s bumpy ride in recent years hasn’t made them doubt the company as much as it’s created opportunities to pick up shares at cheaper prices. To them, there’s little doubt Tesla’s share price will continue to surge.
One of those is Jeremy Ford, a construction contractor in Virginia who first bought Tesla shares as the pandemic took hold in 2020. He became interested when his wife considered — and ultimately ended up — purchasing a Tesla.
Ford has tried to time buying and selling shares to Tesla news over the past year. For example, he sold some stock before what turned out to be poor third-quarter delivery numbers, only to load back up ahead of the release of new details about Tesla’s electric pickup truck.
The 48-year-old now holds about the same number of Tesla shares as he did when 2023 began, but lowered his cost basis. Given an interest in disruptive technology, Ford reallocated some of those profits to new stakes in Palantir and Nvidia. The latter is tracking to see the fourth largest net inflows this year, while the former is not in the top 20, according to Vanda data.

Elon Musk speaks onstage during The New York Times Dealbook Summit 2023 at Jazz at Lincoln Center on November 29, 2023 in New York City. 
Slaven Vlasic | Getty Images

Still, he’s all in on Tesla’s story, citing the push into robots and AI chips as cause for long-term optimism. His only serious concern would be if Musk left and the company’s performance worsened.
“If you can find a company that makes a product that people love, and it’s different than anything that other people have, then you have that chance to really make substantial money,” Ford said. “At some point, I do believe that I’ll look back at the price of the stock now and go, ‘Wow, that was a bargain.'”

‘Guts and heart’

Despite Tesla’s strong year on Wall Street and Main Street, others see challenges ahead. Roth MKM analyst Craig Irwin said profit margins could come under pressure from additional price cuts amid cooling growth.
But that may not dent individual investors’ enthusiasm. In fact, Irwin said the stock could be a beneficiary of turbulence in the electric vehicle industry, because any uncertainty would lead investors to companies like Tesla that have proven they can design, make and sell vehicles.
Given their affinity for the brand, Irwin said retail investors may also stick with Tesla longer than institutional investors. That could keep Tesla stock “levitating” above where it would otherwise be priced.
“Retail tends to trade on guts and heart,” Irwin said. “And a lot of people love Tesla.”
Changes in individual investor sentiment are so key to Tesla’s stock performance that hedge funds take note of these trends when evaluating what to do, the analyst noted earlier this year.
Irwin is in the majority on Wall Street in giving Tesla a neutral rating of no more than “hold,” neither recommending it be bought nor sold. Following 2023’s rebound, the average analyst surveyed by LSEG sees the stock falling about 13% over the next year.

Individual investors have often been the butt of the joke, with investing experts pointing to their inability to time the market and best allocate their money.
Yet individual traders have gained attention following the rise of short-squeezed “meme” stocks during the pandemic. Even as that craze fizzled, retail trading remains popular: Everyday investors put more than four times the amount of money into their 20 most-bought securities in 2023 than they did in all of 2018, according to Vanda data from early December.
For Schwarz, the UC professor, the flight to Tesla this year is complicated.
It’s concerning, he said, if individual investors are making bigger bets on single stocks than funds that invest in diversified indexes like the S&P 500 ETF. Still, while investments that spread bets across a pool of stocks is safer, trying to pick certain companies is more desirable than not being in the market at all, he said. 
“Traders would be much better off if they just bought [the] index and forgot the password to their brokerage account,” he said. But, “even if Tesla doesn’t do as well as the market, it’s still better than probably just spending it on useless consumption and not participating.” More

The Powerball jackpot has soared to an estimated $572 million, making it the fourth prize to exceed $500 million in 2023.
There are two payout options for the winner: annuitized payments worth $572 million or a lump sum valued at $286.7 million.
The next Powerball drawing is Wednesday at 10:59 p.m. ET.

Medianews Group | Getty Images

Whether you pick the lump sum or annuity payout, Loyd suggests a “cooling off period” after winning the lottery before making any big financial moves.
If you’re planning to donate money to charity, start a business or make any investments, it will be “really tricky” to line up the right team of experts before year-end. “You probably wouldn’t be getting the ‘A’ team,” Loyd said. “So, I would buy yourself some time.”

Plan for higher taxes in 2026

The winner will also need to plan for looming tax law changes slated for 2026 when provisions sunset from former President Donald Trump’s signature tax overhaul.
For example, without changes from Congress, the top federal income tax bracket will revert to 39.6% from 37%. “That’s a lot of money,” Loyd said.
The winner will also need to plan for federal estate taxes. While the exemption rises to $13.61 million per individual or $27.22 million for married couples in 2024, those limits will drop by roughly one-half in 2026.
Robert Dietz, national director of tax research at Bernstein Private Wealth Management in Minneapolis, said estate tax exemption change is “the biggest issue” his firm is talking about with high-net-worth clients right now.

Wednesday’s Powerball drawing comes roughly two months since a single ticket sold in California won the game’s $1.765 billion jackpot. Meanwhile, the Mega Millions jackpot is back down to $57 million and the odds of winning that prize are roughly 1 in 302 million.Don’t miss these stories from CNBC PRO: More