Every year, millions of dollars in credit card rewards go unclaimed — money that could be covering travel, everyday expenses, or even cash back in your pocket. If you’re not redeeming those rewards, you’re leaving money on the table.

As someone who leverages credit card rewards, I was somewhat surprised by the recent Bankrate survey revealing that 25% of Americans didn’t redeem their rewards last year.

That represents big money. For example, in 2022, consumers using general-purpose credit cards from major issuers earned more than $40 billion in rewards, according to a 2024 Consumer Financial Protection Bureau report. “Issuers forfeit, expire, revoke, or otherwise take away hundreds of millions of dollars in earned rewards value each year,” the agency said.

With so much content from social media influencers to financial experts highlighting these benefits, the real issue isn’t just awareness; it’s execution. 

Knowing about the reward programs is one thing, but implementing is what actually matters.  Like any other aspect of financial planning, without a strategy, these perks may go unclaimed.

Here are some key points for consumers to know.

Many consumers sign up for credit cards without thoroughly reviewing the rewards structure and benefits. Financial institutions often bury perks in fine print, making them easy to overlook. Many people think of rewards as a “bonus” rather than a tangible financial asset that could offset expenses.

Beyond standard rewards, many credit cards often offer embedded perks such as travel insurance, purchase protection and exclusive event access. These benefits offer cardholders added security and savings beyond traditional points or cashback. 

Understanding which card offers which benefit can help maximize the value of your credit card and prevent you from leaving money on the table.

I want to share a personal experience to show how easily overlooked credit card perks can make a real difference.

Several years ago, my son received an iPad as a Hanukkah gift from his grandparents. A few days later, at his brother’s hockey game, he put it down for just a moment to celebrate a big win — and in an instant, it was gone. 

He was heartbroken, and my in-laws were frustrated, assuming it was gone for good. I encouraged them to check the benefits offered by the credit card they used to buy it.

After a call to the financial institution, they discovered the credit card they purchased the item with had purchase protection, which can reimburse you for recently purchased items that are stolen or damaged.

Thanks to that, the cost of the iPad would be reimbursed to them after they submitted some paperwork. Within weeks, they got their money back, allowing them to replace the item. It was a great reminder that so many people are unaware of various perks.

Knowing what your credit card offers can turn an unexpected loss into a valuable lesson and soften the financial impact.

• Credit card perks aren’t just about points and cashback — they offer hidden protections that can save consumers thousands.

• Ignorance is costly. If you’re not using your perks, you’re effectively giving money back to the financial institution; especially if you have a credit with a yearly fee. 

• If a newly purchased item is lost or stolen or if an expensive item breaks after the warranty expires don’t assume you are out the money. If you paid with a credit card, reach out to your financial institution to check for possible coverage via embedded purchase protection and extended warranties.

• If you run into an issue on vacation — such as a delayed flight, lost luggage, or canceled reservation — and you booked the trip on a credit card, call the issuer. You may be able to get reimbursement from embedded travel insurance that will cover your losses or unexpected expenses. 

• If you’re concerned about accumulating a balance you can’t pay in full at the end of the month, consider making weekly payments or paying off large purchases immediately. This approach allows you to leverage the benefits, protections and rewards of a credit card while maintaining the discipline many find in using a debit card.

— By Lawrence D. Sprung, a certified financial planner and founder/wealth advisor at Mitlin Financial Inc.

Despite the Federal Reserve‘s recent cuts, credit card interest rates have been hovering near record highs. A new bipartisan bill would cap them at a dramatically lower figure, but experts say it may not be a win for consumers.

Senators Bernie Sanders, I-Vt., and Josh Hawley, R-Mo., introduced a bill this week that would cap credit card interest rates at a 10% annual percentage rate (APR) for five years. It’s an idea President Donald Trump floated at campaign rally in New York in September. 

“Capping credit card interest rates at 10%, just like President Trump campaigned on, is a simple way to provide meaningful relief to working people,” Hawley said in a statement. 

The average APR on credit cards for January 2025 was 24.26%, according to LendingTree.

Almost half of credit card holders carry debt from month to month, according to a recent survey by Bankrate. In 2022, credit card companies charged consumers more than $105 billion in interest and more than $25 billion in fees, according to a 2023 study by the Consumer Financial Protection Bureau. 

“We cannot continue to allow big banks to make huge profits ripping off the American people. This legislation will provide working families struggling to pay their bills with desperately needed financial relief,” Sanders said in a statement.

This isn’t the first time these senators have proposed the idea of a rate cap. In 2023, Hawley proposed an 18% rate cap, while Sanders proposed a 15% rate cap in 2019. Neither had adequate support to advance the proposals.  

Around three-quarters, or 77%, of Americans surveyed said they support a cap on the interest rates financial institutions can charge on a credit card, according to a recent survey by LendingTree. But that support is down from 80% in 2022, and 84% in 2019. 

The legislation has a long way to go before it could become law, and experts say its fate may depend in part on what happens with inflation, and whether Trump continues to support the measure. 

“If pricing stays stable, I think it’s going to be much tougher to advance this kind of legislation,” said Jaret Seiberg, a policy analyst for TD Cowen.

While a 10% rate cap may sound appealing, experts say the intricacies of how it is structured are important, with consideration for periodic interest rates, fees and the repayment structure.

“You could have zero interest and still have an incredibly expensive product,” said Chi Chi Wu, a senior attorney at the National Consumer Law Center.

The proposal also seems at odds with the Trump administration’s interest in eliminating the Consumer Financial Protection Bureau, she said.

“If policy makers want to show that they actually care about protecting consumers’ wallets and keeping them from being abused by high-cost credit, they would make sure we have a strong Consumer Financial Protection Bureau,” Wu said.

The banking industry opposes the idea of a rate cap. Seven financial groups representing banks and credit unions of all sizes have joined forces to oppose the measure. They say it will limit consumers’ access to credit and push them into higher-priced, less-regulated products like payday loans, which can have an average APR of 400%. 

“There’s no evidence that APR caps make consumers better off or save them money,” said Lindsey Johnson, president and CEO of the Consumer Bankers Association. 

There are already a few federal caps on interest rates. In 2006, Congress passed the Military Lending Act, which put a 36% interest cap on revolving loans for active duty service members and their families.

Federal credit unions are typically restricted to a 15% APR maximum, but the rate can be increased to protect the safety and soundness of the credit union. The maximum is currently 18% through March 10, 2026.

Bankers say a rate cap inhibits lenders and reduces access to credit for higher-risk consumers. 

“Providing an all-in APR is a flawed tool for measuring the true cost of the loan, because to maintain the safety and soundness of the lender and ensure that credit availability is offered to a broad range of consumers, banks have to price their loan products commensurate with a risk for each borrower,” Johnson said. 

For consumers who are already carrying debt, this proposal may not be the lifeline it appears. 

“If you already have a lot of debt, this legislation probably doesn’t help you,” said Seiberg.

That’s because the interest rate cap wouldn’t be applied retroactively, he said: “It’s likely to only be on new purchases.” 

The Trump administration emailed more than 2 million federal workers this week, giving them the option to resign now and get pay and benefits through Sept. 30.

Workers have until Feb. 6 to accept the “deferred resignation” offer.

The payouts come on the heels of President Donald Trump‘s executive order to end DEI programs. On Wednesday, he said federal workers need to return to the office five days a week “or be terminated.”

“We think a very substantial number of people will not show up to work, and therefore our government will get smaller and more efficient,” Trump said at the signing of an immigration detention law.

Experts advise federal employees to take their time before accepting the offer. By accepting the resignation, tenured federal employees could lose certain rights they may have.

“If you resign, it’s deemed voluntary,” said Michael L. Vogelsang, Jr., a principal of The Employment Law Group, P.C. “If you are a permanent, tenured employee in the government and the administration wants you out, laws still exist that federal employees cannot just be fired on a whim.”

Meanwhile, some lawmakers question whether the president can make this offer without Congressional approval.

Sen. Tim Kaine, D-Virginia, said federal employees should not be “fooled” by Trump’s proposal.

“If you accept that offer and resign, he’ll stiff you,” Kaine said. “He doesn’t have any authority to do this.” 

The Voluntary Separation Incentive Payment Authoritygives federal agencies the authority to offer buyoutincentives for some employees to resign or retire, but it is capped at $25,000.

Asked for more detail on the payouts, including what authority the president has to offer to pay through September 30, the White House referred back to its statement given on Tuesday.

“If they don’t want to work in the office and contribute to making America great again, then they are free to choose a different line of work and the Trump Administration will provide a very generous payout of eight months,” White House press secretary Karoline Leavitt said in a statement.

There is already uncertainty around current funding for the federal government. It’s operating under a short-term continuing resolution passed in December. Unless Congress acts, the federal government could shut down on March 14. 

Unlike with corporate buyouts, federal employees who received this offer can’t appeal for a better deal, experts say.

“Usually with buyouts, I think of more severance, and usually it’s sort of some kind of negotiation. This isn’t really negotiation. It’s sort of a unilateral offer,” Vogelsang said.

Still, some of the factors to consider for weighing the government’s deferred resignation offer are similar to what one would weigh in a corporate buyout, experts say:

For federal employees who aren’t permanent, Vogelsang says they should consider how much their position is at risk and if their skills make it likely they’ll be able to find another job. 

“I think there’s enough executive orders out there that people in DEI, probationary employees, IRS employees, environmental employees, can probably read between the lines that their positions may be at risk moving forward,” he said.

Career experts advise not waiting to begin the job search.

“Start thinking about your search now, because it’s going to be longer than you think, especially with people flooding the market,” said Caroline Ceniza-Levine, a career coach and founder of Dream Career Club. 

Prepare for a job search by updating your LinkedIn profile, identifying your accomplishments and reflecting on professional achievements so you can explain them clearly and concisely. “You don’t get every job that you apply for, and that can be a very frustrating and emotionally draining process,” said Ron Seifert, senior client partner at the staffing firm Korn Ferry. 

Think about the culture and career implications of rejecting the offer. A question to ask yourself is, “If I’m still here after this is done, what will this place feel like?” Seifert said. “Is this a place where I have opportunity?”

“I would caution people against making decisions when they’re in the panic zone,” said Connie Whittaker Dunlop, principal of Monarch Consulting Group. “There are a fair number of unknowns, but if you can kind of ground yourself in what you know, what you value, and then make that, make a decision from that space, I think,  people will be better served.” 

Mergers and acquisitions happen all the time between companies of varying size and notoriety. These can be a great opportunity for businesses and owners to achieve their strategic or long-term goals, but often leave employees feeling uneasy and confused about what the deal means for them — especially when it comes to retirement plans.

Here are a few things you should know if your company is being impacted by an M&A transaction:  

Though it may not be obvious on the surface, the treatment of retirement plans is a critical part of the M&A process.

Before the M&A transaction is finalized, leadership from both companies will typically meet to discuss and compare their respective retirement plan offerings. This includes important items such as contribution limits, applicable fees, investment options, and vesting schedules. 

Regardless of the size of your company, there are federal laws that protect many aspects of employee benefits.

The Employee Retirement Income Security Act, or ERISA, for example, ensures that vested employee benefits aren’t adversely impacted because of an M&A transaction. As such, the primary purpose of ERISA is to ensure plans are properly integrated while maintaining employees’ vested rights. 

Employees may be understandably concerned over potential changes to their retirement benefits during an M&A transaction, but there are often new retirement options that are an even better fit than their existing plan. 

Here’s what an M&A deal can mean for defined-contribution plans such as 401(k) plans:

• New investment options: Depending on the situation, employees may gain access to entirely new investment options which could improve their overall retirement outlook. However, employees may have to become comfortable with a new user interface on a different investment platform. 

• Adjusted contribution levels and matching policies: Changes to contribution limits and employer match policies may be more generous than in an employee’s previous plan. It may also be less competitive in some cases.

• Amended vesting schedules: Adjustments to the vesting schedule – how long an employee has to work in order to access the entirety of their benefits – may also occur. This could mean earlier access to retirement benefits, or added restrictions.

• Transition to a new plan: If an employer decides to completely replace an existing plan, employees will need to educate themselves on the changes to their benefits and pros and cons of each new plan option.

While pensions are less common today, there are still many people who rely on them or are planning to utilize pension benefits in their retirement. These pension funds can undergo dramatic changes during an M&A transaction, so employees should remain vigilant to any proposed changes to the pension program. 

Here’s what an M&A transaction can mean for pension plans:

• Continuation under new ownership: The new company may choose to continue the pension program with as few changes as possible. This is typically the most employee-friendly decision. 

• Freezing pensions: If the new or larger organization decides to freeze pensions, existing benefits will still be provided, but new employees will not be afforded access. 

• Termination of pensions: In some cases, employers may decide to cut pensions entirely. In these cases, employees may receive a lump sum as compensation for the elimination of the pension program. 

Thanks to protections from ERISA and other legal guidelines, employees are safeguarded and can’t “lose” existing money. Companies are prohibited from moving or removing funds that are already contributed by employees, and all vested benefits are secured. 

That said, there are some important long-term implications to keep in mind:

• Market performance and individual goals: When you change your investment options or contribution amounts and schedules, your projected retirement savings are also likely to change in some way. This is important to monitor, especially if you have retirement milestones that you are expecting to reach. 

• Stage of life: Employees who are closer to retirement age are naturally going to feel that any changes may impact their future more acutely. 

The primary takeaway being existing balances are always secure, but unvested contributions or benefits an employee is expecting to gain in the future may not always carry over to a new plan. Employees should always review all documentation associated with a new retirement plan to fully understand how the changes will impact their short and long-term financial goals. 

Employees also have certain legal protections under ERISA that ensure they receive advance notice of any material plan changes, and companies are generally obliged to provide training, documentation and access to additional resources to all employees. 

The changes brought on by an M&A transaction can be challenging for even the most seasoned and well-informed employees. Therefore, it is important that employees always utilize the tools at their disposal to protect their financial outlook, especially when retirement is approaching.

Stay informed, ask questions and ensure your financial goals remain on track.

—By Rick Calabrese, Esq., a certified public accountant and co-founder of advisory firm Commonwealth M&A.

Inflation, job concerns, and already high interest rates are putting the squeeze on many American consumers.

Now, even high earners, defined as people with incomes of $150,000 or more, are showing signs of stress. These borrowers are increasingly having trouble meeting payments on credit cards, auto loans and mortgages.

The delinquency rate among high earners is near a five-year high, rising 130% over the last two years from January 2023 to December 2024, according to a new report by VantageScore, a national credit company, released early to CNBC.  

“We’ve seen significant increases in services cost, like home insurance and auto insurance, and that is hitting the high-income consumer harder than most. That’s what’s driving that delinquency rate,” said VantageScore CEO Silvio Tavares in an interview with CNBC. 

Tavares says for the most part consumers are being cautious with credit. While credit card balances rose 2.9% year over year in December 2024, that pace was keeping with inflation. Consumers have some running room before hitting their limit.

Overall, consumer credit utilization dropped one full percentage point to 51.6%, the second-lowest rate in 2024.

“They actually had a lot of available credit,” Tavares said. “They just chose not to use it.”

Tavares says it’s a positive sign that consumers are exercising self-control and are more “credit cautious” as the year begins. Despite last year’s strong stock market gains, concerns about inflation and unexpected prices remain. 

Challenges to consumers on the horizon include the Department of Education’s plan to start reporting missed or late federal student loan payments to national credit reporting agencies starting this month.

Tavares says those borrowers who don’t pay those loans can expect an 80-point drop in their credit score. The average VantageScore in December was 702. VantageScores range from 300 to 850, with a score below 660 considered subprime. 

With the cost of insured losses after California wildfires reaching an estimated $40 billion, Tavares says the increase in insurance rates could stress borrowers further.

“The cost of the damage is going to spread across all consumers of those insurance companies across the country,” said Tavares. “It’s going to raise insurance rates, and it’s going to further the delinquencies that we’ve been seeing already in the high income category over the past year.”

Other recent data points to the financial stress facing higher-income consumers.

Bain’s Consumer Health Index, a data series focusing on high earners, showed a 10.8% drop in their intent to spend, driven by uncertainty around the future performance of the stock market after strong gains over the last two years. 

“We see a worrying signal recently coming from upper-income earners; their intent to spend is down, and that worries us, given their disproportionate share of discretionary spending in the United States,” said Brian Stobie, a senior director at Bain and Company, a global management consulting firm. 

The Bain Index also dipped this time last year and recovered, although not back to the previous levels. Since higher-income earners represent the majority of discretionary spending any weakness could have an outsize impact on the economy.

Wages continue to grow, and the unemployment rate has remained around 4%, making the case for continued growth in consumer spending. While the rate of growth has slowed, the direction is still positive. PNC Financial Services expects consumer spending will be around 2%.  

“I think that that’s a good, solid pace that’s consistent with a good economy and a good labor market and sustainable over the longer run,” said Gus Faucher, chief economist at PNC. 

More than half of U.S. consumers planned to make a financial resolution for 2025, according to a December poll by Discover Personal Loans. 

Even if you didn’t ring in the new year with some money goals in mind, it’s not too late to set some, experts say. In fact, now is a great time to get started.

“The ideal time for financial reset is usually at the beginning of the year,” said financial advisor Jordan Awoye, managing partner of Awoye Capital in New York City. “You’re able to start from scratch, see what you’ve done the year prior, and just have a clean slate.”

It helps that the 2025 tax filing season will begin on Jan. 27. You can consider your priorities and goals for the year ahead as you review your finances from last year, Awoye said.

Saving and earning more, spending less, improving credit scores, building an emergency fund, and paying off or consolidating debt are among the top resolutions, according to Discover. However, almost all respondents said they anticipate at least one challenge — inflation, the state of the economy, unexpected or current expenses — may prevent them from achieving those goals. 

Morning Consult, on behalf of Discover, polled 2,201 adults in early November.

Don’t allow the state of the economy — which you cannot control — or regret over past money mistakes to prevent you from moving forward. 

“If you’re feeling down on yourself and don’t have that right positive mindset, you might just continue down that downward spiral,” said Corbin Blackwell, a New York City-based certified financial planner with Betterment. “There is no amount too small to just get started. Maybe that’s saving. Maybe that’s paying down debt little by little.”  

Make sure your asset allocation is appropriate for your time frame, said Natalie Taylor, a CFP and founder of The Goodland Group in Santa Barbara, California. Understand market volatility and how it may impact your goals.

Some resolutions, like ensuring you have a fully-funded emergency savings account, are examples of what Taylor calls “base hit” goals. Saving might be the right strategy for these goals, which may be short-term or focus on preserving cash assets.

“You typically don’t want to use more aggressive strategies to achieve those from an investment standpoint,” she said. For cash-based goals, “we’d look at a more standard, diversified portfolio using high-yield savings or [certificates of deposit].”

Other resolutions like fully funding your child’s college education, buying a second home or retiring early may be considered “home run” goals and warrant investing in a diversified stock portfolio and possibly more aggressive strategies, Taylor said. 

The key is to focus on your goals for the year ahead and then plan the steps to achieve them.  

1. Build a better budget. Track your monthly spending and how much you save from your take-home pay. Awoye said to ask yourself, “Do you have more money coming in than going out? And if you do not, how do you fix that? What expenses can you drop? What other streams of revenue can you create that work a little bit parallel with the streams of revenue that you have now?” While you must pay for everyday expenses and recurring household bills, you should also aim to stash money away in an emergency savings account. Experts advise setting a goal to save three to six months’ worth of expenses so that you don’t have to tap your credit card for an unplanned expense.
2. Pay down high-interest debt, if you have any, and build savings. Yes, you can do both at the same time. However, some advisors say the interest rate you’re paying on the debt or earning on your savings can help determine which goal deserves more immediate attention. ”Paying off the high-interest debt is pretty much the highest priority,” Blackwell said. “If you have credit card debt, which is probably costing you about 20%, double-digit interest at least, your dollars are probably best served paying that down.” 
3. Focus on longer-term savings and investing. This is typically money you won’t need for at least 10 years. To invest your retirement savings, you might contribute to an individual retirement account (IRA) and/or 401(k) or workplace retirement plan. Put any extra money to invest in a taxable brokerage account to help turbo-charge your savings. Your time frame can help determine how you invest and what investments you choose.

Completing your financial reset is important, so you’ve set the stage for achieving your goals.

“Ultimately, where you’re going to find financial success is going to depend on what you define as successful,” Blackwell said. 

Just hearing those words “estate planning” makes most people zone out, as it’s tied to the end of their mortality, a topic they’d rather avoid.

However, it’s important to consider what will happen to your personal belongings, finances and both tangible and digital assets as part of your estate plan.

I would be remiss if I didn’t address a common myth: there’s no correlation between signing your estate planning documents and something happening to you immediately following.

This is an objection to estate planning I have heard countless times from clients over the years. Estate planning attorneys have shared stories with me on many occasions where people come for a consultation, have the documents drafted, pay for them and fail to sign them for this reason as well.

Let’s work to reframe how you think about this type of planning. Visualize the benefits of sharing your wishes with those you love.

Estate planning isn’t about focusing on your demise; it’s about taking control and making decisions that ensure your loved ones are cared for. It’s a way to share your wishes and protect the people you care about most, leaving them a roadmap instead of unanswered questions. 

Money often causes disagreements, even among the closest families. Without clear instructions, disputes can arise, which could be disastrous to a family at a time when they should be leaning on each other.

Having the proper documents in place does not guarantee there won’t be a family feud, as fighting is something that may take place with even the best plans. But you can provide the guidance your loved ones need to respect your wishes.

Key documents:

• Will and/or trust to outline your wishes for your assets and family.
• Power of attorney to appoint someone who can step into your shoes and make financial decisions on your behalf.
• Health care proxy to appoint someone who can make health decisions on your behalf.

Consider this: Without a will and a plan, state intestacy laws determine what happens to your hard-earned assets.

This process, known as probate, is a legal procedure through which a court oversees the distribution of your estate. During probate, your assets are inventoried, debts are paid and the remaining property is distributed according to state law — often without regard to your wishes.

Your will can help your family avoid this and have your assets distributed according to your wishes.

Probate can be a lengthy, expensive, and public process. The public nature means that details of your estate, including its value and who inherits it, become a matter of public record. This lack of privacy can lead to unwanted scrutiny, potential disputes, or even predatory actions against your family. Probate can cause unnecessary stress and delays for your loved ones.

There are actions you can take to further minimize the complexity of the probate process.

Assets that are titled properly (such as joint with rights of survivorship) or that have a beneficiary named, will not be subject to your will or probate as a result. Naming a trust that will own your assets is also a way to avoid the complex and often lengthy probate process.

These extra steps will help limit the say the state law or courts have over your assets and the public nature of the assets owned by the trust. You probably will not be able to avoid probate altogether, but this will help you make your wishes known and limit the involvement of the state.

If you don’t take action, deeply personal decisions about your finances, assets, and even your loved ones will be made by the courts — not by you.

Allowing the courts to make these decisions can lead to outcomes that may not reflect your wishes or the needs of your family.

A solid estate plan ensures your assets go where you want, protecting your family from added stress during an emotional and already stressful time. Without these documents, your hard work and your legacy may go to those you would not want to benefit.

A will and/or trust allows you to outline your wishes and direct what will happen after you are gone. These documents provide a way to share your expectations and provide direction on how you want your assets handled when you are gone. Absent these documents the state you reside in will decide how your assets are distributed.

If you have children, the state will decide who cares for them. Think about that: if you die without a will, the state will decide the fate of your children.

Estate planning isn’t just about the future — it’s about empowering the present. Estate planning includes appointing trusted individuals to handle your finances and health care decisions if you’re ever unable to.

In general, people are living longer — life expectancy in the U.S. has risen from approximately 61 years in 1940 to over 79 years today.  As individuals age, many may find themselves unable to manage day-to-day finances or make critical health decisions.

With tools like a power of attorney and health care proxy, you can empower the people you trust most to step in when needed and ensure your wishes are honored keeping these deeply personal decisions out of the hands of the state.

A power of attorney allows you to select someone to make financial decisions on your behalf, while a health care proxy ensures your trusted advocate can make critical health-related choices when you cannot.

High-profile disputes serve as powerful cautionary tales, even for those of us outside the spotlight.

For example, Aretha Franklin’s music will live on as her legacy, but her estate planning mistakes have kept her family in court for years. Thirty years after Bob Marley’s death, his heirs were still battling over the singer’s estate in court, and when Kurt Cobain died by suicide in 1994, he did so without a will, so the State decided the fate of his estate, now valued at more than $400 million.

These families endured costly legal battles and are extreme examples, but they highlight an important lesson: no matter the size of your estate, planning is essential.

Having a plan allows your family to know what you want and gives them a roadmap to carry it out. Therefore, having that will and an estate plan in place will give your family the ultimate gift: a plan that leaves no question unanswered.

Creating a plan is not just about dividing assets; it’s about showing love and responsibility for the people who mean the most to you. While no plan can promise to prevent all family conflicts, it will undoubtedly place your loved ones in a far better position than leaving things to chance — or the courts.

By putting these essential documents in place, you can experience the joy of knowing you’ve taken control of your legacy in both life and death.

— By Lawrence D. Sprung, a certified financial planner and founder/wealth advisor at Mitlin Financial Inc.

U.S. consumers would likely see prices increase if President-elect Donald Trump follows through with a plan to levy import tariffs, experts said Tuesday during CNBC’s Financial Advisor Summit.

“Either way, there is a cost to consumers,” said Erica York, senior economist at the Tax Foundation.

A tariff is a tax placed on imported goods. Tariffs are paid by U.S. companies that import those goods.

Businesses could pass along higher prices to consumers at the store to offset the cost of tariffs, for example, experts said.

Tariffs may also reduce business profits, thereby lowering returns for shareholders and perhaps pushing businesses to hold down wages or employment opportunities for workers, York said.

“It is such a company-specific decision,” she said.

In an NBC News interview that aired Dec. 8, Trump said he would fulfill his campaign promise to impose tariffs, but said he couldn’t guarantee U.S. households wouldn’t pay more because of tariffs.

“I can’t guarantee anything,” Trump said. “I can’t guarantee tomorrow.”

Trump imposed tariffs during his first term on washing machines, solar panels, steel, aluminum and a range of Chinese goods, for example. The Biden administration kept many of them intact.

Trump has called for a more sweeping tariff regime during his second term.

On the campaign trail, he floated the idea of universal tariffs, of up to 20%, on all trade partners, and of at least 60% on Chinese goods.

Such a policy would raise costs by $3,000 in 2025 for the average U.S. household, according to an October analysis by the Tax Policy Center.

Low- and middle-income households “who might already be living paycheck to paycheck” would likely see the largest financial impact from tariffs, said Marianela Collado, CEO and senior wealth advisor at Tobias Financial Advisors.

In November, Trump also pledged to impose 25% tariffs on Canada and Mexico — the U.S.’ largest trading partners — if they didn’t address drug trafficking and migration across the border.

However, there’s considerable uncertainty around how tariffs might be implemented, including the countries and products that are targeted.

It’s also unclear if Trump has the authority to unilaterally impose universal tariffs, York said.

Some market experts aren’t convinced Trump means to follow through on his pledges.

His various tariff policies are likely “starting gambits” meant as leverage to “coerce” trading partners during negotiations, said David Zervos, chief market strategist at Jefferies, during the CNBC summit.

“People are trying to take something literal and at [Trump’s] word when we know that’s not how” he operates, Zervos said.

However, others were less sure of that outcome.

“I hope … they really are just negotiating tactics,” said Barbara Doran, CEO and chief investment officer of BD8 Capital Partners. “But they may not be.”

Tariff revenue may be used to help offset the cost of a tax-cut package Republicans are eyeing on Capitol Hill.

Trump also nominated Jamieson Greer as his U.S. trade representative; Greer was chief of staff to Trump’s former U.S. trade representative, Robert Lighthizer, who was an architect of Trump’s first-term tariffs.

“I think it’s still a big wild card,” Doran said of tariffs.

If you are considering a year-end Roth individual retirement account conversion, you’ll need to plan for an upfront tax bill.

Roth conversions move pretax or nondeductible IRA funds to a Roth IRA, which can kick-start tax-free growth. It’s a popular strategy among investors with large pretax balances, particularly in lower-income years, experts say.  

Still, “it can be hard to bite the tax bullet today and do a Roth conversion,” said certified financial planner Abrin Berkemeyer, a senior financial advisor with Goodman Financial in Houston.

When a Roth conversion is completed, you’ll owe regular income taxes on the converted balance, based on your current-year taxable income. 

Ideally, you’re “managing the tax bracket,” said CFP Jim Guarino, managing director at Baker Newman Noyes in Woburn, Massachusetts. He is also a certified public accountant. 

That could involve partial conversions by incurring only enough income to stay within a specific tier. For 2024, there’s a small increase from 10% to 12% or 22% to 24%, but a larger jump from 24% to 32%, Guarino explained.

Ideally, you will want a conversion that keeps you comfortably within a tax bracket, meaning you can afford the upfront bill, Guarino said.

Of course, Roth conversion strategies depend on clients’ long-term goals, including estate planning, experts say. 

Typically, it’s better to cover the upfront taxes with other assets, rather than using part of the converted balance to cover the bill, Berkemeyer said.

The more funds you get into the Roth, the higher your starting balance for future compound growth to “get the maximum benefit out of the conversion,” he said.

Cash from a savings account is one of the best options to pay for taxes, Berkemeyer said. However, you can also weigh selling assets from a brokerage account.

Something to consider if you’re selling brokerage assets to pay Roth conversion taxes: If it’s a lower-income year, you could qualify for the 0% long-term capital gains bracket, assuming you’ve owned the investments for more than one year, he said.

For 2024, you may qualify for the 0% capital gains rate with a taxable income of up to $47,025 if you’re a single filer or up to $94,050 for married couples filing jointly.

However, you’d need to run a projection since the Roth conversion adds to your taxable income.

If you’re planning a gift to charity this holiday season, you could score a tax break by donating cryptocurrency. But there are some key things to know before making the transfer, experts say.

In 2024, there’s been a significant jump in crypto gifts to charity, according to Fidelity Charitable, which has accepted $688 million in crypto donations — mostly in bitcoin — through Nov. 19. By comparison, the public charity received $49 million in digital currency in all of 2023.

Donating crypto to charity is similar to giving other types of property. But “there are some pitfalls,” said certified financial planner Juan Ros, a partner at Forum Financial Management in Thousand Oaks, California. 

Since 2018, the higher standard deduction has made it harder to claim itemized tax breaks for charitable gifts, medical expenses, state and local taxes, among others. 

But if you itemize and can claim the charitable deduction, it’s generally better to donate profitable investments, such as cryptocurrency, rather than cash.

By donating crypto to charity, you can bypass capital gains taxes and claim a deduction based on its fair market value, assuming you’ve owned it for more than one year. The tax break has a cap of 30% of your adjusted gross income for public charities.

It’s an attractive strategy for crypto investors because bitcoin and other coins could be “the most highly appreciated asset in their portfolio,” said Kyle Casserino, vice president and charitable planning consultant for Fidelity Charitable.

The price of bitcoin was around $96,000 on Dec. 4, up by nearly 120% year-to-date, according to Coin Metrics.

However, donating crypto can be more complicated than assets like stock, experts say.

“Not every charity is willing or able to accept gifts of crypto,” so you’ll need to contact the organization first, Ros said.   

As of January, 56% of the biggest U.S. charities accepted cryptocurrency donations, according to The Giving Block, a platform for digital currency gifts and fundraising. That’s up from 49% the previous year.  

However, most large donor-advised funds are “well-equipped” to accept digital currency, Ros said.

Donor-advised funds are investment accounts that work like a charitable checkbook. The donor receives an upfront deduction and can transfer funds to eligible nonprofit organizations later. 

Typically, the donor-advised fund sells the crypto and reinvests the proceeds. But some allow investors to continue holding digital assets in the fund.

When you give a profitable investment owned for more than one year, your deduction is based on the fair market value of the asset.

That’s easy for publicly traded stock, but the IRS requires added documentation for digital assets worth more than $5,000, according to Andrew Gordon, a tax attorney, certified public accountant and president of Gordon Law Group.

“You’ve got to be able to support that deduction through the qualified appraisal,” which has specific IRS requirements, he said.

For example, you must file Form 8283 with your tax return and keep a copy of the appraisal. But if the donated assets exceed $500,000, you must include the appraisal with your return, according to the IRS.

You need to follow the IRS appraisal criteria “to the letter,” Ros explained. Otherwise, you could put your charitable deduction at risk in the event of an audit.