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The 60/40 portfolio is an important investment strategy for the average investor.
Inflation and higher interest rates have stressed it.
The strategy is still sound but perhaps needs tweaking, one expert said.

Cravetiger | Moment | Getty Images

The 60/40 portfolio — a cornerstone strategy for the average investor — has been stressed by the pandemic-era economy and market dynamics.
However, “the 60/40 portfolio certainly isn’t dead,” Holly Newman Kroft, managing director and senior wealth advisor at asset manager Neuberger Berman, said Thursday at the semiannual CNBC Financial Advisor Summit.

While not dead, “it needs to be modernized,” she added.

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What is a 60/40 portfolio?

The strategy allocates 60% to stocks and 40% to bonds — a traditional portfolio that carries a moderate level of risk.
More generally, “60/40” is a sort of shorthand for the broader theme of investment diversification.
The thinking is that when stocks — the growth engine of a portfolio — do poorly, bonds serve as a ballast since they often don’t move in tandem.
The classic 60/40 mix is generally thought to include U.S. stocks and investment-grade bonds, like U.S. Treasury bonds and high-quality corporate debt.

Why the 60/40 portfolio is stressed

Through 2021, the 60/40 portfolio had performed well for investors.
Investors got higher returns than those with more complex strategies during every trailing three-year period from mid-2009 to December 2021, according to an analysis authored last year by Amy Arnott, portfolio strategist for Morningstar.
However, things have changed.
Inflation spiked in 2022, peaking at a rate unseen in four decades. The U.S. Federal Reserve raised interest rates aggressively in response, which clobbered stocks and bonds.
Bonds have historically served as a shock absorber in a 60/40 portfolio when stocks tank. But that defense mechanism broke down.

How to rethink the 60/40

That dynamic — stocks and bonds moving more in tandem — is likely to persist for a while, Paula Campbell Roberts, chief investment strategist for global wealth solutions at KKR, said at the summit.
Indeed, while the Fed is unlikely to raise interest rates much higher (if at all), officials have also signaled they’re unlikely to cut rates anytime soon.
And there are some risks for U.S. stocks going forward, experts said. For one, while the S&P 500 is up 14% this year, those earnings are concentrated in just 10 of the biggest stocks, Roberts said.
That said, investors also benefit from higher interest rates since they can “access safer asset classes at a higher yield,” Kroft said. For example, banks are paying 5% to 5.5% on high yield cash accounts, and municipal bonds pay a tax-equivalent yield of about 7%, she said.

The Fed’s “higher for longer” mentality means bonds should have these equity-like returns for a longer period, Kroft said.
So, what does this mean for the 60/40 portfolio? For one, it doesn’t mean investors should dump their stocks, Kroft said.
“You never want to exit the asset class,” she said.
However, investors may consider substituting part — perhaps 10 percentage points — of their 60% stock allocation for so-called alternative investments, Kroft said.

That would likely increase investment returns and, given the typical properties of “alts,” reduce the risk of those assets moving in tandem with stocks, Kroft said.
Within the alts category, high net-worth investors can access certain things like private equity and private credit, Kroft said. The typical investor can gain alts access through more liquid funds — like a mutual fund or an exchange-traded fund — that focuses on alts, or via funds geared toward commodities, she added.
She cautioned that affluent investors pursuing private equity need to be “very careful” in their selection of asset managers because the difference in performance between top-performing and mid-tier firms is “huge,” Kroft said.
Within bonds, investors holding bonds with a short duration may want to consider extending that duration to lock in higher yields for longer, she added. More

According to a recent report by the National Institute on Retirement Security, the typical Gen X household only has $40,000 in retirement savings in private accounts, and most Gen Xers are failing to meet retirement savings targets. 
When broken down by generation, Gen Xers are most likely to feel behind on their retirement savings, a recent Bankrate study found.
Here’s how the “sandwich generation” can get back on track.

Ethan Hawke sits with Winona Ryder in a scene from the 1994 film “Reality Bites.”
Universal Pictures | Moviepix | Getty Images

As Generation X knows all too well, “reality bites,” to quote the iconic 1994 film of the same name.
Most Gen Xers — roughly defined as those born between 1965 and 1980 — are failing to meet retirement savings targets. The typical Gen X household has just $40,000 in retirement savings in private accounts, according to the National Institute on Retirement Security.

“When we think about retirement preparation, we worry about the large numbers of people who are not on track,” Dan Doonan, executive director of the National Institute on Retirement Security, said Thursday at CNBC’s Financial Advisor Summit.

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Across the board, many Americans worry about their financial well-being and retirement plans. Over half of working adults feel behind on their retirement savings, according to a recent Bankrate study.
But when broken down by generation, Gen Xers are most likely to feel this way, followed by baby boomers then millennials and then Gen Zers, Bankrate found. Gen X workers are also most likely to say they are contributing less to their retirement savings this year compared to last year.
More than half of Gen X workers, or roughly 57%, think it is not likely they will save enough to retire comfortably, according to Bankrate.
At the same time, the average 401(k) balance among Gen Xers is $153,300, up nearly 15% from a year ago, according to the latest data from Fidelity Investments, the nation’s largest provider of 401(k) plans. 

Gen X savers have benefited significantly from improved defined contribution plans, including newer plan features such as auto enrollment and auto escalation.

Why Gen X is falling behind

Yet, “they still have a big savings gap relative to what they need in retirement,” Fiona Greig, global head of investor research and policy at Vanguard, said at the summit.
Financial pressure from the rising costs of higher education and health care, as well as ballooning student loan balances, have weighed heavily, Vanguard’s retirement readiness report found.
This generation is also projected to live longer than boomers, adding another hurdle to their savings shortfall. “They are living a full year longer, but they are not working a full year longer,” Greig said.

How the ‘sandwich generation’ can get on track

For clients in their 40s and 50s, “we dig into why they feel behind,” certified financial planner Lazetta Rainey Braxton, co-founder and co-CEO of 2050 Wealth Partners, said at the summit.
Often, “life has happened and the financial responsibilities have increased,” said Braxton, who is also a member of CNBC’s Financial Advisor Council.

They are the so-called “sandwich generation” for a reason, she added. “They are supporting the generations ahead of them and also building and expanding their family which requires resources for the generations behind them.”
Still, there are investment vehicles available that can help, including what your employer offers and individual retirement accounts.
“If they are coming to us a little later, we put everything on the table so we can move forward in a way that’s realistic,” said Braxton. More

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Social Security beneficiaries will see a 3.2% boost to their benefits in 2024, the Social Security Administration announced on Thursday.
The annual cost-of-living adjustment for 2024 will affect more than 71 million Social Security and Supplemental Security Income beneficiaries. These benefit adjustments are made annually to help benefits keep place with inflation.

The change will result in an estimated Social Security retirement benefit increase of $50 per month, on average. The average monthly retirement benefit for workers will be $1,907, up from $1,848 this year, according to the Social Security Administration.
Most Social Security beneficiaries will see the increase in their monthly checks starting in January. SSI beneficiaries will see the increase in their December checks.
The 2024 benefit increase is much lower than record 8.7% cost-of-living adjustment Social Security beneficiaries saw this year, the biggest boost in four decades in response to record high inflation. It is also lower than the 5.9% cost-of-living adjustment for 2022. 
The 3.2% increase is in line with an estimate released last month by The Senior Citizens League, a nonpartisan senior group.
The Social Security cost-of-living adjustment is calculated based on the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W.

The 2024 adjustment comes as many retirees are still struggling with higher prices.
This is breaking news. Please check back for updates. More

Year-end Planning

The U.S. birth rate fell slightly in 2022 and still hasn’t recovered to pre-pandemic levels, which was already below the “replacement rate” to maintain the current population.
Some policy experts point to immigration reform to boost tax revenue and bolster the economy.
“The biggest hurdle has been polarization and politicization of immigration,” said Silva Mathema, director for immigration policy at the Center for American Progress.

Demonstrators call for immigration reform near the White House on Feb. 14, 2022.
Nicholas Kamm | AFP | Getty Images

As the U.S. fertility rate continues to fall, there are growing concerns about the long-term economic impact: A smaller population means less tax revenue, which could reduce funding for programs such as Social Security and Medicare.
But immigration policy reform could be one solution, some experts say.

Lea este artículo en español aquí.

The U.S. birth rate fell slightly in 2022 compared with 2021, with roughly 3.7 million babies born nationwide, and the birth rate still hasn’t recovered to pre-pandemic levels, according to an initial analysis from the Centers for Disease Control and Prevention.  
A growing concern for economists, the U.S. fertility rate has generally been below the replacement rate — which is needed to maintain the current population — since 1971 and has consistently been below the replacement rate since 2007. 

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“The tax base is shrinking, and allowing immigrants to come in lawfully is an easy solution to that,” said Jackie Vimo, senior economic justice policy analyst at the National Immigration Law Center. “It’s the answer hiding in plain sight.”
In 2022, foreign-born U.S. residents — including legally admitted immigrants, refugees, temporary residents and undocumented immigrants — represented about 18% of U.S. workers, up from 17.4% in 2021, according to the U.S. Bureau of Labor Statistics.
A pathway to citizenship for undocumented immigrants would offer eligible workers better education and employment opportunities while boosting federal tax revenue, Vimo said.

Reform could offer ‘huge benefits’ to tax base

Depending on the scope of changes, immigration policy reform could provide “huge benefits” to the U.S. tax base and economy, said Silva Mathema, director for immigration policy at the Center for American Progress.
In a 2021 report, the organization modeled the economic impact of four scenarios involving a pathway to legalization and citizenship for undocumented immigrants. 
The most comprehensive option — a pathway to citizenship for all undocumented immigrants — would increase the U.S. gross domestic product by a total of $1.7 trillion over 10 years and create 438,800 new jobs, according to the report. Eligible workers would earn $14,000 more annually after 10 years.

“Immigrants currently without a pathway to citizenship pay billions in taxes, even though they don’t benefit from many of the programs they pay into,” such as Social Security and Medicare, Vimo said.
Undocumented immigrant-led households paid an estimated $18.9 billion in federal taxes and $11.7 billion in combined state and local taxes in 2019, according to the American Immigration Council.
However, other experts caution that growing the U.S. population through expanded immigration may not boost tax revenue as expected because there’s little control over the ages of new residents.

Immigrants currently without a pathway to citizenship pay billions in taxes, even though they don’t benefit from many of the programs they pay into.

Jackie Vimo
Senior economic justice policy analyst at the National Immigration Law Center

“You will have a bigger economy, and you will have more tax revenue, but you will also have more people,” said Steven Camarota, director of research for the Center for Immigration Studies. “There’s no evidence your per capita GDP will go up.”

The challenges of ‘common-sense policy’

It’s been nearly 40 years since the country made significant changes to immigration policy. The Immigration Reform and Control Act of 1986 “reset the clock and undocumented immigration” but didn’t address future inflows or ways for people to enter the country lawfully, Vimo said.
“That’s the problem we’ve been facing for decades now,” she said. “And unfortunately, there hasn’t been a political environment in Washington to implement what is common-sense policy.”
While nearly three-fourths of Americans say it’s “unacceptable” for people to immigrate illegally to the U.S., 56% support making legal immigration easier and 55% support a pathway to citizenship for undocumented immigrants who are already here, according to a 2021 survey of 2,600 U.S. adults by the Cato Institute.
“The biggest hurdle has been polarization and politicization of immigration,” Mathema said. More

The average consumer carries about $6,000 in credit card debt — a 10-year high.
A higher credit score can help you qualify for the lowest rates on credit cards and personal loans.
For many consumers, a 0% interest balance transfer card is the best way to pay off credit card debt.

Eleganza | E+ | Getty Images

About half of holiday shoppers have already started making purchases or plan to begin by Halloween, according to a recent Bankrate survey.  Most of them will use credit cards to pay for at least some of their purchases, the survey shows.
“A couple of years ago, early holiday shopping was all about the supply chain mess,” said Bankrate senior industry analyst Ted Rossman. “Now, I think the motivation is more financial.”

Many consumers are anticipating the effect of inflation on what they’re buying, he said, and they’re stressed about the cost of holiday shopping. But it’s also important to consider the rising cost of carrying credit card debt.

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Overall, credit card debt in the U.S. has reached a staggering record high of $1.03 trillion, according to the Federal Reserve Bank of New York. The average consumer carries about $6,000 in credit card debt — a 10-year high.
Many Americans are also carrying more card debt month to month.
“Part of what’s pushing debt higher is people struggling to make ends meet in the midst of high inflation,” said Matt Schulz, senior credit analyst at LendingTree. “They look at their credit card as a de facto emergency fund.”
But consumers are paying an exorbitant price for having that credit. 

The average credit card rate is now about 21%, according to the Federal Reserve Bank of St. Louis. Yet Lending Tree finds the average interest rate on new card offers is 24.45%, the highest level since the firm started tracking credit card rates in 2019. Additionally, 1 out of 3 of the 200 cards it has reviewed has a rate of 29.99% or higher. 
Here are five strategies to start paying off credit card debt before you begin holiday shopping: 

1. Know what you owe

First, get a handle on your debt and what you owe. Find out the interest rate you’re paying on the total balance on each credit card. If you know how much you owe and what you’re paying to borrow that money, it will be easier to come up with a plan to reduce your debt. 

2. Review your credit report and score

You can get free access to your credit reports online from each of the three major credit rating agencies — Equifax, Experian and TransUnion — at annualcreditreport.com to help you regularly manage your finances. 
Check for errors, including accounts that aren’t yours or that you didn’t authorize, or incorrect information on credit card limits or loan balances. You can dispute these errors directly online on the credit agency’s websites.

While the free credit reports on annualcreditreport.com will not include your credit score, many credit card companies offer their customers a free look at their credit scores. Often when you get your score, it also will give you the risk factors that are affecting your score and what you can work on to improve it. 
Paying your credit card bills on time and using 10% or less of the available credit are important factors in raising your score. Higher scores can help you qualify for lower-rate cards or cards with promotional offers of 0% interest.

3. Consider consolidating your debt

One of the best ways to get rid of credit card debt is to consolidate it by using a 0% interest balance transfer card, but you may need to already have a credit score of 700 or higher to get one. 
A 0% interest balance transfer card offers 12, 15 or even 21 months with no interest on transferred balances. You may be charged a 3% to 5% fee on the amount that you transfer, so crunch the numbers to make sure it is worth it. 
For many consumers, it’s the “best weapon” for reducing credit card debt, Schultz said. “The ability to go up to 21 months without accruing any interest on that balance is really a game changer,” he added. “It can save you a lot of money. And it can dramatically reduce the time it takes to pay that balance off.”

If you get a 0% interest card, be aggressive about paying off as much of the balance as you can with no interest during that introductory period. Generally, after that, it will adjust to a much higher interest rate.
Another way to consolidate debt is with a personal loan. Currently, such loans come with an average annual percentage rate of about 12%, although a good credit score could garner you a rate as low as 8%. Only borrow enough money to pay off your credit card debt, not to spend more. 
“You work with a lender,” said Rod Griffin, senior director for public education and advocacy at Experian. “They give you a personal loan that pays off those credit card debts that are a relatively low interest rate, usually over a long, longer term, but it can reduce your payments.
“And all those credit card account payments would then be paid and reported as paid in full,” he added. “That’s key.” 

4. Work with your card issuer

If you don’t qualify for a 0% card or personal loan, contact your card issuer and ask for a lower credit card rate.
Just make the call. A recent Lending Tree survey found about three-quarters of consumers who asked the issuer for a lower interest rate on their credit card in the past year got one — and they didn’t need a great credit score to get it. 
If you’re really cash strapped, you could also try working out a debt settlement directly with the creditor. Your goal is to get the creditor to agree to settle your account for an amount that is less than what is owed because at least some payment is better than none. However, there may be some negative consequences, like a tax hit on the amount of debt that you don’t pay that has been forgiven. 

Oleksandra Yagello | Moment | Getty Images

Be wary of using debt settlement programs offered by outside companies. With a debt settlement company, instead of paying your creditor, you make a monthly payment into a separate bank account set up by that company.
Once there is enough money in that account, that company will use the funds to negotiate with creditors for a lump sum payment that is less than what you owe. These programs can take years and you can wind up paying hefty fees, experts say.  
“So you may be better off using those payments toward your existing debts and reducing those credit card payments yourself as opposed to paying a debt settlement firm,” Griffin said.

5. Pick a repayment strategy and stick to it

Once you have lowered the interest you’re paying on your credit card debt, you need to figure out how much you can truly afford to pay every month, every two weeks or every pay period. 
Figure out how much you must pay for committed expenses such as rent or mortgage, utilities, food and transportation, as well as debt payments, including student loans and credit card bills. 
Commit to putting a certain amount of your pay toward paying down your credit card debt — at least the minimum balance due on each card.
If you have multiple cards to pay off, figure out whether you are going to prioritize paying off the highest-interest debt, known as the “avalanche method,” or paying off the smallest to largest balances, known as the “snowball method.”
If you still prefer to use a credit card for daily expenses, make sure to pay it off in full every month while you’re paying down the balance on other cards. That’s known as the “island approach:” using different cards for different purposes with the goal of getting the lowest possible interest rate, rewards or cash back on each of them, for example. 
One repayment strategy isn’t necessarily better than the other, but you need to have a plan — and stick to it.
“There’s no quick fix,” said Griffin. “It takes time to get into debt; it takes time to dig your way out of debt.” The best solution “is usually the slow and steady, have a plan, pay it off over time and change your behaviors,” he added.
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The Powerball jackpot surged to an estimated $1.73 billion without a winning ticket on Monday.
The next winner has two payout options: an annuity worth $1.73 billion or a lump sum valued at $756.6 million.
Experts say there are a few reasons why lottery grand prizes have grown in recent years.
The next Powerball drawing is Wednesday at 10:59 p.m. ET.

Justin Sullivan | Getty

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One reason for more frequent large Powerball jackpots is a 2015 change to the game’s matrix, according to J. Bret Toyne, executive director of the Multi-State Lottery Association, which runs Powerball. 
Powerball players must correctly choose all six numbers to win the grand prize — five white balls and one red ball for the jackpot.
In 2015, Powerball added more numbers for the white and red balls, which decreased the chance of hitting the jackpot. Currently, there is roughly a 1 in 292 million chance of winning the grand prize, compared to the previous odds of about 1 in 175 million, Toyne said.

Plus, the game added a Monday drawing in 2021, he said. Without a jackpot winner, the estimated grand prize keeps rolling over until a player chooses all six numbers.

Higher interest rates have boosted jackpots

Another reason for bigger lottery jackpots over the past couple of years has been rising interest rates, said Akshay Khanna, CEO of Jackpot.com, which sells state lottery tickets.
Similar to savings accounts, higher interest rates allow jackpots to grow more quickly over time, he said. “The higher the interest rates, the more you’re earning on that pool of capital.”

Of course, this may shift once the Federal Reserve reverses its policy and begins cutting interest rates.
In the meantime, more online sales options and the “media frenzy” as jackpots grow have also contributed to higher grand prizes, Khanna said. “The combination of these two things is really driving these higher and higher jackpots, particularly in the last two years,” he said.
Wednesday’s Powerball drawing comes less than three months since a single ticket sold in California won the game’s $1.08 billion jackpot. Meanwhile, the Mega Millions jackpot is back down to $48 million and the odds of winning that prize are roughly 1 in 302 million. 
Join CNBC’s Financial Advisor Summit on Oct. 12, where we’ll talk with top advisors, investors, market experts, technologists and economists about what advisors can do now to position their clients for the best possible outcomes as we head into the last quarter of 2023 and face the unknown in 2024. Learn more and get your ticket today. More

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Over a year ago, the Supreme Court overturned Roe v. Wade, the landmark 1973 case that paved the right to abortion.
About 3,030,600 economically insecure Latinas live in the 26 states where abortion is either banned or is likely to be banned, according to a recent report.
That is almost half the nearly 6.7 million Latinas who live in those states, representing the largest group of women of color affected by the court’s decision.

Aldomurillo | E+ | Getty Images

Over a year ago, the Supreme Court overturned Roe v. Wade, the landmark 1973 case that paved the right to abortion, leaving millions of women grappling with the fallout — and Latinas are particularly likely to be affected.

Lea este artículo en español aquí.

More than three million Latinas who live in the 26 states where abortion is either banned or likely to be banned are economically insecure, meaning their family income is below 200% of the federal poverty line, according to a new report by the National Partnership for Women and Families and the National Latina Institute for Reproductive Justice.

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That’s almost half the nearly 6.7 million Latinas who live in those states, representing the largest group of women of color affected by the court’s decision.
Financially insecure women are more likely to be affected by state bans and restrictions, the report notes, because they are likely to lack funds to travel to another state for abortion care. Lack of abortion access also increases the chance they would be pushed into deeper poverty.

“A sound economy requires folks to be able to have freedom and access to what they need in order to make the best decisions,” said Lupe M. Rodríguez, executive director of the National Latina Institute for Reproductive Justice. “The economy is made up of all of us.”
“The effects of folks not being able to make decisions for themselves and not being able to participate in the economy fully has effects on everybody,” she added.

‘The economic insecurity is an additional barrier’

Women who work low-income jobs are less likely to have the necessary funds to travel to another state for the treatment, experts say.

“The economic insecurity is an additional barrier,” said Shaina Goodman, director of reproductive health and rights at the National Partnership for Women and Families.
Roughly 1.4 million Latinas in these 26 abortion-restricted states work in service occupations, according to the report. These jobs are less likely to provide benefits such as paid sick time, and the scheduling isn’t flexible for health appointments, the report found.

Twenty-six states have banned or further restricted abortion services by providers such as Planned Parenthood since the Supreme Court overturned the landmark Roe v. Wade case.
Michael B. Thomas | Getty Images News | Getty Images

At large, Hispanic women or Latinas are over represented in low-wage occupations, such as servers and cleaners. This leads them to have one of the largest wage gaps among women, paid just 52 cents for every dollar a non-Hispanic white man earns.
Overall, median earnings for Hispanic or Latino workers are lower than those of other racial and ethnic groups. Hispanic or Latina workers who are 16 years or older made $788 median weekly earnings in the second quarter of 2023, the U.S. Department of Labor has found.
“We will continue to see the economic fallout from the Dobbs decision on communities of color,  particularly Latinas,” said Candace Gibson, director of government relations at the National Latina Institute for Reproductive Justice.

‘Life shouldn’t be reduced to economics’

Low-income women who are denied abortion care are more likely to be “at risk of being pushed further into poverty,” added Goodman.
Women who are denied an abortion are three times more likely to lose their jobs and four times more likely to fall below the federal poverty level, according to the Advancing New Standards in Reproductive Health.
However, “life should not be reduced to economics or issues of personal finances,” said Rachel Greszler, senior fellow at the Heritage Foundation, a conservative think tank.
“We can’t allow a financial inconvenience be a justification for ending a life.”

Last year, President Joe Biden signed the bipartisan Pregnant Workers Fairness Act (PWFA) into law, which requires employers to provide reasonable accommodations for pregnant employees, such as time off, said Greszler. It applies to businesses with 15 or more employees.
While the mandate does not require employers to either give paid time off or cover abortion costs, “the act is now law and it absolutely covers pregnant workers,” said Greszler.
Several lawmakers have introduced legislation to help address issues pregnant people often face and to provide future parents with support, said Penny Nance, CEO and president of Concerned Women for America, a conservative public policy organization based in Washington, D.C.
“The women I represent, including many Latinas, believe the system has already failed any woman who feels she has to turn to abortion because she has no other choice,” said Nance. “Information is power, and we believe if women know there is support for their decision, they will choose life.” More

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There’s less than a week until the Oct. 16 tax-extension deadline for 2022 returns.
If you miss the due date, the failure-to-file penalty is 5% of unpaid taxes for each month or part of month until filing, capped at 25%.
“The best thing you can do to meet the extension deadline is to get organized,” said certified financial planner Chris Cybulski of Chisholm Trail Financial Group.

DjelicS | Getty

If you filed a tax extension for more time on your 2022 return, the deadline is fast approaching.
The federal tax-extension deadline on Oct. 16 is the last chance to avoid a late filing penalty, according to the IRS. However, some filers in disaster areas may have additional time.

“The best thing you can do to meet the extension deadline is to get organized,” said certified financial planner Chris Cybulski of Chisholm Trail Financial Group in Austin, Texas. “Highlighters, sticky labels and manila folders are your friends.”

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“There is nothing worse than having an incomplete mess with only days to file,” he added.
Here are three things to know if you still haven’t filed your 2022 return, according to financial experts.

1. Know the IRS late penalties

If you skip the deadline, you could see two IRS penalties, according to Kassi Fetters, a CFP and owner of Artica Financial Services in Anchorage, Alaska.
The failure-to-file penalty is 5% of unpaid taxes for each month or part of month until filing, capped at 25%, she said. By comparison, the failure-to-pay fee is 0.5% per month or partial month. Both include interest. 

2. You may be eligible for IRS Free File

Roughly 70% of taxpayers qualify for IRS Free File but only 2% used it during the 2022 filing season, according to the National Taxpayer Advocate.
You may be eligible with a 2022 adjusted gross income of $73,000 or less — but Free File is only available through Oct. 16 at 12 midnight ET, according to the IRS.

It’s a good option for those who have simple returns, don’t need ongoing tax-planning advice and could benefit financially from the free service.

Judy Brown
Principal at SC&H Group

“It’s a good option for those who have simple returns, don’t need ongoing tax-planning advice and could benefit financially from the free service,” CFP Judy Brown at SC&H Group in the Washington and Baltimore area, previously told CNBC. She is also a certified public accountant.

3. You can still fund SEP individual retirement accounts

There are limited opportunities left to score a 2022 tax deduction before filing, said Houston-based CFP Scott Bishop, managing director of Presidio Wealth Partners. He is also a certified public accountant.

But self-employed, contract or gig economy workers can still contribute to a simplified employee pension, or SEP, individual retirement account, he said. “That could help your retirement plan and give you a nice deduction.”
You can establish a SEP IRA as late as your business’ income tax return deadline, including extensions, according to the IRS.
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