CBS News business analyst Jill Schlesinger tackles the questions many people have about money — from where to invest to whether it’s time to refinance a mortgage. Below is a concise, practical recap of the common topics and straightforward guidance she offers for everyday financial decisions.
1) Investing: focus on time horizon and fees
– Start by clarifying your goal and time horizon. Long-term goals (retirement, college in 10+ years) can tolerate more stock exposure; short-term goals should favor safer, more liquid options.
– Keep costs low. Choose low-cost index funds or ETFs rather than high-fee active funds whenever possible. Fees compound against returns over time.
– Diversify across asset classes (stocks, bonds, and, when appropriate, other assets) and globally to reduce single-market risk. Rebalance periodically to maintain your target allocation.
2) Retirement accounts: use tax-advantaged vehicles
– Maximize any employer match in your 401(k) first — it’s essentially free money.
– After capturing a match, prioritize tax-advantaged accounts (IRAs, Roth IRAs, HSAs when eligible) based on your current tax situation and expected future tax bracket.
– If you can, automate contributions and increase them over time.
3) Debt: prioritize high-interest balances
– Pay down high-interest debt (credit cards, payday loans) before investing heavily. The interest rates on these debts often exceed expected investment returns.
– For lower-rate debts like some mortgages or federal student loans, evaluate the balance between paying down debt and investing. Often a blended approach makes sense: contribute to retirement while making regular loan payments.
4) Emergency fund and liquidity
– Keep an emergency fund equal to 3–6 months of living expenses in a safe, accessible account (high-yield savings, money market). If your job is less stable, lean toward a larger cushion.
– Don’t lock up all cash if you might need it for immediate opportunities or unexpected bills.
5) Mortgages and refinancing
– Consider refinancing if the new rate reduces your monthly payment enough to cover closing costs within your break-even horizon. Calculate the break-even point: closing costs divided by monthly savings.
– Fixed-rate mortgages provide predictability; adjustable-rate mortgages can be cheaper initially but carry future rate risk. Match mortgage type to how long you expect to stay in the home and your risk tolerance.
– Shop lenders and get multiple rate quotes. Small rate differences can add up over the life of a loan.
6) Homebuying vs. renting
– Compare the total cost of homeownership (mortgage, taxes, insurance, maintenance) with rent in your area. Buying can make sense if you plan to stay multiple years and want to build equity; renting may be smarter if you anticipate relocation or want flexibility.
– Get pre-approved before house hunting so you know your price range and appear serious to sellers.
7) Credit score matters
– Pay bills on time, keep credit utilization low, and avoid opening too many new accounts at once. Those actions will support a strong credit score, which lowers borrowing costs.
8) Market timing: don’t try to time the market
– Regular, disciplined investing (dollar-cost averaging) is generally better than trying to buy at the perfect moment. Over long horizons, staying invested matters more than short-term timing moves.
9) When to get professional help
– For complex tax, estate, or investment situations, consider consulting a fiduciary advisor or certified financial planner who is required to put your interests first. A clear, written financial plan can be worth the cost for peace of mind and better long-term decisions.
Bottom line: make practical choices based on your goals and timeline — capture employer matches, keep costs low, reduce high-interest debt, maintain a safety cushion, and be deliberate about home- and mortgage-related moves. Small, sensible steps done consistently tend to do the most for long-term financial success.