Money Management

The deadline to file taxes is approaching. Check out what you need to know about changes to TurboTax for 2024. [[{“value”:”

It’s happening again: I’m using TurboTax to file for the 2023 tax year. Despite taking the top off my tax refund — the tax software isn’t cheap — it’s worth the convenience.

TurboTax updates yearly. Here’s how the company has changed its tax-filing software for 2024.

Automatic race mode

Bad news first: TurboTax has dragged “Race Mode” from 2023 into the new year. The feature tracks your time live, and it encourages you to beat your previous tax-filing record. You know what’s worse than filing taxes? Filing taxes under pressure.

I dislike it. Worse, you’re automatically entered into Race Mode when you start filing. Here’s the good news: You can disable it by clicking on the top-left toggle. I highly recommend doing so if you like to take things at your own pace.

Linked bank and credit card accounts

Green flag alert: TurboTax introduced linked accounts, which lets you quickly import purchases you made in 2023. This sped up my filing process — and it might have sped things up even more if I had a business checking account. But it worked just fine on my personal accounts.

Here’s how it works: You link your bank and credit card accounts to TurboTax. The tax filing system automatically imports your purchases. You can sort through your purchases and flag them as deductions. You can check multiple to flag many all at once.

Two reasons this is awesome: You can skim purchases to recall business-related expenses fast, and you can mass-label them. I highly recommend using the search bar. For example, search “ChatGPT” to bring up every ChatGPT-related expense and mark them as business-related.

Why flag purchases as business-related? Business-related purchases may count toward your deductions. TurboTax will calculate whether you should use itemized deductions or the Standard Deduction to lower your taxable income as much as possible.

AI assistant chatbot

It’s not 2024 without a chatbot thrown into the mix. TurboTax offers a 24/7 chatbot that answers your tax-related questions. Supposedly. It’s a bit janky, in my experience.

To speak to the bot, click “Help” in the top-right corner of the desktop platform. A window will open in the sidebar. You can ask the chatbot anything in natural language. If it doesn’t know the answer, it will direct you to the TurboTax community forums or offer expert (human) help.

The AI assistant, dubbed Intuit Assist, is far from a game-changer. On a one-through-five scale, I’d rate it a three for helpfulness. Still, it’s worth a try. The feature is fast and free.

TurboTax cost in 2024

Despite what its misleading advertisements promise, TurboTax usually costs money. The majority of tax filers don’t qualify for its free tax-filing service. Turbotax Premium users, including freelancers and small business owners, sometimes pay hundreds of dollars to file. Eek.

Even so, it tops the list of best tax-filing software out there. TurboTax earns its due by making tax seasons quick and mostly painless. Last year, it took me a few hours to submit all my taxes through the platform, despite it being my first time. For me, it was well worth the money.

When to file taxes in 2024

The federal tax-filing deadline in 2024 is April 15. If you want to start early, now is the time. Even if you’re lacking forms, you can begin right now on TurboTax because it automatically saves your progress.

Or you can get started with a free tax-filing software alternative. TurboTax isn’t the only player out there. Cash App users can file taxes free through the app; it doesn’t attempt to upsell you. Plus, the IRS is rolling out Direct File in some states, 100% free. You may be eligible.

Get started early. Or…you can wait to file until the very last second? Maybe you like the rush of barely making the deadline. Maybe cutting it close is one of many tiny ways you rage against the machine. Sure. Do you. So long as you avoid late payment penalties, you’re golden.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Cole Tretheway has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Intuit. The Motley Fool has a disclosure policy.

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Costco’s newest bakery creation is truly gargantuan. Should you bring it home? Read on to find out. [[{“value”:”

There are certain Costco bakery items that have been available to customers for years. Take the store’s classic jumbo-sized muffins. Whether your favorite flavor is blueberry, corn, or chocolate with chocolate chips, those muffins have been a Costco bakery mainstay for ages.

But the great thing about Costco is that the warehouse club giant also has a tendency to introduce new products to its lineup. And Costco’s latest bakery offering might tempt you to a very large degree.

How does six pounds of cheesecake sound to you?

Costco has sold regular cheesecake at its bakeries for quite some time. During the fall, it tends to offer a pumpkin-flavored version.

Now, Costco is introducing a cherry-topped cheesecake that has many customers swooning. It features a graham cracker crust, a sour cream layer, a rich cheesecake filling, and a cherry topping, all of which is surrounded by white buttercream. Best of all, since this is Costco we’re talking about, this new cheesecake offering is almost six pounds. And the price is a very reasonable $22.99.

As a point of comparison, Junior’s, a famous cheesecake maker, sells a cherry crumb cheesecake for $55.95 for a three-pound dessert. Eli’s, another big name in the cheesecake world, sells a cherry vanilla bean cheesecake for $63 for a 3.5-pound creation. So all told, Costco’s version reads like the best financial deal.

Should you buy Costco’s latest dessert?

Bringing six pounds of cheesecake into your home could be a somewhat dangerous thing from a caloric perspective. From a financial one, though, it’s easy to argue that the latest cheesecake is a good buy if you have a good use for it.

You may be gearing up to host a room full of friends for the big game coming up. Costco’s new cheesecake could serve as an awesome dessert. Similarly, if you’re invited out that Sunday, showing up with the new cheesecake in hand could make you a hero.

If you’re not hosting or feeding a crowd, you could still make the argument that Costco’s cherry-topped cheesecake is worth buying. Though cheesecake has a limited shelf life, it freezes fairly well. You could portion it out and stash some of it away for those nights when you’re craving something sweet and don’t want to head out to the grocery store.

It’s also worth noting that cheesecake isn’t the easiest thing to whip up in your own kitchen. Baking a cheesecake requires certain tools that you may not have. And sometimes, even experienced bakers find that their homemade cheesecakes cave in on them during the baking process. So if you’re someone who loves cheesecake but doesn’t love making it yourself, buying Costco’s newest creation could be a good bet.

Don’t buy the new Costco cheesecake, though, if you have zero storage space in your freezer and you’re not hanging out with company anytime soon. Your chances of being able to consume an almost six-pound cheesecake on your own are pretty slim. Attempting to finish one off on your own could lead to a world of digestive upheaval you’d probably rather avoid. Otherwise, it’s pretty easy to make the case that this is a good dessert to bring home.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

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Investing advice is popular on TikTok. Check out recent data to learn why you’re better off getting advice elsewhere. [[{“value”:”

With its short videos, TikTok has become a popular place for bite-sized financial advice. That includes investing advice. It’s often published under the hashtag StockTok, and videos with this hashtag have currently racked up 3.5 billion views.

The StockTok craze is understandable. Some investing advice can be long and dull; StockTok is the opposite. Even if the content itself is appealing, TikTok isn’t the place to go for investing advice or stock tips. WallStreetZen recently investigated the StockTok phenomenon, and it found some serious issues.

1. Nearly two out of three stock videos are misleading

For its investigation, WallStreetZen reviewed transcripts of 1,089 TikTok videos with stock-related hashtags. It found that 63% are misleading. Videos were marked as misleading if any of the following were true:

They didn’t have a disclaimer.They encouraged viewers to invest in a particular stock asset.They implied a return on investment.They encouraged viewers to invest a certain amount of their savings or income.

To be fair, some of these aren’t always problematic. For example, if a video recommends that viewers aim to invest 10% of their income, that would be marked as misleading under the final criteria. But sending a portion of your income to your brokerage account and investing it is a good financial habit. Advice like that doesn’t lead investors astray.

It’s still alarming that such a large portion of videos were marked as misleading. And while it’s possible that these don’t all provide bad advice, WallStreetZen’s analysis found that many of them do.

2. Advice often pumps specific stocks and suggests unrealistic returns

Of the advice classified as misleading, 36% push viewers toward specific stocks. In addition, the vast majority (95%) of the stock content on TikTok has no disclaimers.

Disclaimers are a crucial part of stock advice. Trustworthy advice will include a disclaimer letting viewers know if the content creator holds a position in any of the mentioned stocks, or if they’ve been paid to promote anything. This lets the viewer know if the content creator has a financial incentive behind their advice. Most of the TikTokers who recommend stocks conveniently omit this information.

WallStreetZen also found that 22% of StockTok videos imply a return on investment. The average potential annual return that they advertise is 600%.

Any time someone suggests such a massive potential return, it’s a scam. The S&P 500 (an index of 500 of the largest publicly traded companies) has an average annual return of about 10%. In the last 50 years, its highest return in a single calendar year is 34%. There’s no investment where you can realistically expect annual returns of 20% or higher, much less 600%.

3. Less than 1% of stock influencers on TikTok have relevant qualifications

There’s no barrier to entry to be a stock influencer on TikTok. Only 0.8% of the TikTokers who give stock advice have finance-related credentials. If you watch videos from 100 different stock influencers, the odds are that only one of them will have a background in finance.

That makes it even more important to do your homework before you follow their advice. Anybody can start sharing stock tips, even if they opened their first brokerage account yesterday.

Because hardly anyone on TikTok has finance-related credentials, bad advice is common. And some supposed advice is just a flat-out scam. A whopping 70% of stock influencers self-promote their services, which are often systems or courses you can use to trade stocks just like they do. It’s always worth asking yourself: If they were really making so much money by investing, why would they need to sell these services in the first place?

There are financial influencers on TikTok who give sound advice. Unfortunately, they’re a drop in an ocean of scams and misinformation. You’re better off going elsewhere for investing advice, or thoroughly vetting any stock influencers you follow to make sure they’re trustworthy.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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Investing for the future is like time travel. See how saving money now can be a win-win for you and “future you.” [[{“value”:”

Saving for retirement is like time travel for your personal finances. When you save and invest money, you are sending money to your future self. And whenever you rack up credit card debt or take out a loan, you’re borrowing money from your future self. One of the biggest challenges of spending, saving, and investing is: Are “present-day you” and “future you” both going to be happy with the deal?

If you borrow too much money from your future self, you might force “future you” to work harder to earn extra money to pay off those debts. In the worst-case scenario, “future you” might never be able to retire.

But the opposite problem can also happen. If you save and invest every last dollar, if you don’t spend some money to have fun and make memories along the way, you might end up with plenty of money, but not enough time, health, or energy left to enjoy it.

Let’s look at a few money moves that can be win-win deals for you today and you in the future.

1. Put money in a 401(k) or other workplace retirement account

One of the first things you should do in 2024, if you haven’t already, is make sure you’re contributing money to your 401(k) or other retirement plan at work. If you get an employer match, try to put in at least as much money as it takes to get that full matching amount. (For example, many companies might offer to match 50% of the first 5% of your salary. So if you put 5% of your salary, you’ll get an extra 2.5% of salary as employer matching contributions.)

Why this is a good deal for you in 2024: Putting money into a 401(k) or other pre-tax retirement plan at work will reduce your taxable income. This can help you get a break at tax time. For example, if you’re single with an income of $60,000, that means you’re in the 22% tax bracket for 2024. So if you put 5% of your 2024 salary into a 401(k), this reduces your taxable income by $3,000, which saves you $660 on taxes.

Why this is a good deal for “future you”: Saving money for retirement can help your future self have extra income in retirement, instead of having to rely entirely on Social Security.

2. Put money into a traditional IRA

If you don’t have a 401(k) plan at work, or even if you do, you can put extra cash for retirement into a traditional IRA account. This is another pre-tax account that lets you reduce your taxable income. For 2024, you can put up to $7,000 into a traditional IRA (with an extra $1,000 “catch-up contribution” if you’re age 50 or older).

If you or your spouse are eligible for a 401(k) or other retirement plan at work, you might not be able to deduct all the money you put into a traditional IRA. There are limits based on income and tax filing status. But depending on your income, if you have extra cash, you can put the maximum amount into your 401(k) and still put up to $7,000 into a traditional IRA.

Why this is a good deal for you in 2024: Traditional IRA contributions — if your income is low enough to qualify — are great tax deductions, because they’re “above the line” deductions that reduce your adjusted gross income. For example, if you and your spouse (married filing jointly) have a combined income of $120,000 and you both have retirement plans at work, you can each put $7,000 into a traditional IRA for 2024. This would reduce your taxable income by $14,000. Since you’re in the 22% tax bracket, reducing your taxable income by $14,000 equals a tax savings of $3,080.

Why this is a good deal for “future you”: It’s always a good idea to save more money for retirement, especially if you can get a tax break. If you don’t like the investment options in your 401(k), or if you’re already maxing out your 401(k), putting more retirement savings into a traditional IRA can give your future self another source of retirement money.

3. Put money into a health savings account

One of the biggest expenses for retirees is out-of-pocket healthcare costs. Not everyone gets to use a health savings account (HSA), but if you qualify, this can be a great way to pay for healthcare for “future you.” If you have an HSA-eligible high-deductible health plan (HDHP), here’s how much you can put into an HSA for 2024:

Single coverage: $4,150Family coverage: $8,300

Why this is a good deal for you in 2024: There are no income limits on HSA contributions. So if you’re a high earner whose income is in the “phase-out range” for deducting traditional IRA contributions, an HSA can give you an extra few thousand dollars of tax deductions. And like a traditional IRA, the HSA is a coveted “above the line” deduction.

Why this is a good deal for “future you”: The average retiree can expect to spend $157,500 on healthcare, even with Medicare. Your future self is going to need all the help they can get. Maybe they should get a side hustle.

Bottom line: All of these money moves are win-win deals for you and your future self. Investing more money in tax-deductible retirement accounts or a health savings account can help reduce your taxes today, and make life easier for “future you” in retirement.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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A travel rewards card could help you save on your next vacation. Find out if this type of credit card is right for you. [[{“value”:”

Travel is expensive — when you’re paying for everything in cash. While that’s how many travelers do it, some use travel rewards cards. These cards earn rewards, in the form of points or miles, that you can put toward travel expenses. You could potentially book business-class airfare, a five-star hotel stay, or your next rental car in points instead of cash.

It’s probably no surprise that travel cards are popular with consumers. Nearly one-third (32%) of Americans have them, according to credit card research by The Motley Fool Ascent. They won’t be a match for everyone, though. Here are the signs that a travel card is worth getting in 2024.

You plan to take at least one trip this year

As you’d expect, travel cards are best suited for frequent travelers. The more you travel, the more value you’ll get out of their rewards and other travel perks.

That doesn’t mean you need to travel all the time (although you’ll get a lot out of a travel card if you do). If you know you’ll go on at least one trip this year, a travel card could help you spend less on it.

One of the ways a travel card could help you save big is with a sign-up bonus. Many travel cards have valuable sign-up bonuses, including some that are worth $500 to $750 in travel. You could apply for a travel card, earn the sign-up bonus, and use that bonus to help cover the cost of your next vacation.

You want extra perks with your favorite airline or hotel

Do you always fly with Delta because you live near one of its hubs? Or do you normally stay in Hilton hotels because you like its properties and loyalty program? If you’re loyal to a specific brand and you choose it often, you could get special benefits by opening one of its credit cards.

Airline credit cards normally include perks like free checked bags, priority check-in and boarding, and discounts on in-flight purchases. Some of the higher-end options even include airport lounge access through a membership to the airline’s lounge program. You’ll also earn frequent flyer miles on the purchases you make with your airline card.

Hotel credit cards often get you elite status in the hotel’s loyalty program. This could be complimentary silver, gold, or platinum status, to give you a few examples. Many include free night certificates that you can use at expensive properties. And just like with airline cards, when you use your hotel card, it will earn points with that hotel that you can later redeem for free stays.

You don’t mind a learning curve

Travel credit cards can be a bit complicated. They often have lots of benefits, which is usually a good thing. But it also means you need to keep track of those benefits to get the most value from your card. That can be challenging, especially with cards that have spending credits for specific types of travel purchases, or perks that you need to activate to use.

It also takes time to learn how to use your card’s travel rewards. Redemption options vary depending on the card you have. Some cards give you a variety of options, including transferring points to airlines and hotels or redeeming them directly for travel purchases. And the value you get often depends on how you use your points.

If you don’t mind learning about a travel card’s benefits and rewards program, you could save quite a bit on travel. But if you’d rather keep it simple, and save yourself some time, cash back credit cards are better for that.

You’re OK with paying an annual fee

Most travel cards charge an annual fee. The amount depends on the card. Some have fees in the sub-$100 range. Others are much more expensive, ranging from $250 to $695, and have more benefits. As a general rule, if you can use most of a travel card’s features, you’ll come out ahead on the cost of the annual fee.

However, if you’re only interested in no annual fee cards, then you’ll probably want a cash back card. Some no annual fee travel cards exist, but they don’t have many perks, which means they don’t offer much value. To get a quality travel card, expect to pay at least $70 to $100 a year for it. Remember that you’ll likely save far more than that on travel.

Travel cards can be an amazing deal for the right cardholder. If you travel often and don’t mind a learning curve or an annual fee, this type of credit card could pay off for you.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Lyle Daly has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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Employer life insurance can be fairly affordable. Read on to find out why it also may not be enough. [[{“value”:”

If you’re an employee of a company or business, as opposed to being self-employed, there are different workplace benefits you may be privy to. These may include employer-subsidized health coverage, paid time off, and a 401(k) plan.

Your employer might also offer different types of low-cost insurance you can buy. Some companies, for example, offer relatively inexpensive pet insurance. Similarly, you may be able to buy life insurance through your employer at a very low cost. And some companies even throw in life insurance coverage for free.

If you’re entitled to this insurance through your employer, whether it’s one you pay for or not, you may be wondering if that single policy is enough to meet your needs. And the answer is no. It’s generally not a great idea to have employer life insurance only.

Why it’s best to have another life insurance policy

There are a couple of problems with employer life insurance you should know about. First, employer life insurance coverage tends to be somewhat limited. Your policy’s benefit may be limited to one or two times your salary, when financial experts commonly recommend a benefit to replace your salary 10 times over at the least.

In fact, Guardian, an insurance company, has a recommendation that’s far more aggressive than that. Guardian says you should consider getting up to 30 times your income if you’re buying life insurance between the ages of 18 and 40. Otherwise, it recommends 20 times your income at age 41 to 50; 15 times your income at ages 51 to 60; and 10 times your income if you’re 61 to 65.

Now, that’s just one recommendation. If you’re 30 years old earning $60,000 and you decide to buy $600,000 worth of life insurance, you may not by any means be leaving your loved ones high and dry. So if you don’t want to spring for 30 times your salary, or $1.8 million, as Guardian suggests, that’s totally acceptable.

The problem with employer life insurance, though, is that you may only be eligible for coverage of $60,000 under that policy, or $120,000. That’s probably not enough to protect your loved ones.

Another issue with employer life insurance is that it’s often not portable. This means that if you leave your job — whether by choice or not — you lose your life insurance. Without a separate policy, your loved ones could be left with no protection at all.

It pays to shop around

The nice thing about employer life insurance is that it’s often inexpensive and sometimes free. Also, unlike life insurance you apply for yourself, employer life insurance usually doesn’t require you to undergo a medical exam. If you have health issues that a medical exam unveils, it could drive the cost of life insurance up.

However, it’s really important to have life insurance outside of your employer. So if you signed up for employer life insurance during your most recent open enrollment period for benefits, make a point to start shopping around for coverage with different life insurance companies. That way, you’ll know you have protection for the people you care about that has nothing to do with your job whatsoever.

Our picks for best life insurance companies

Life insurance is essential if you have people depending on you. We’ve combed through the options and developed a best-in-class list for life insurance coverage. This guide will help you find the best life insurance companies and the right type of policy for your needs. Read our free review today.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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