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January 12, 2022

Discount Grocery Stores: Are They Worth the Savings?

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Like most people, I’d rather not spend any more at the grocery store than I have to. Over the years, I’ve tried every trick in the book to save money on groceries. And the single best way I’ve found to cut my grocery bill is to shop at discount grocery stores.

Discount grocers like Aldi and Lidl offer much lower prices than big chains like Walmart and Kroger — not just on a few products, but on nearly everything they sell. When I hit my local store, I save money on every single item on my shopping list with no extra effort.

Admittedly, discount grocery stores have their limitations. They offer a smaller selection of products than a regular grocery store, and their quality can be uncertain in some cases. Hours are often limited, and the atmosphere isn’t fancy. But the savings make it well worth it.

Types of Discount Grocery Stores

The term “discount grocery store” can refer to two types of store: salvage stores and limited-assortment stores. Both types of discount grocers offer low prices. However, their selections and the strategies they use to keep their prices low are quite different.

Salvage Stores

Salvage stores sell goods rejected or discarded by other grocery stores. They’re also known as surplus grocery stores, closeout grocery stores, bent-and-dent stores, or grocery outlet stores. Like outlet fashion stores, they sell products other stores can’t at significantly reduced prices.

Salvage Store Inventory

Salvage and outlet stores can get goods at a discount for various reasons. Their merchandise includes:

Overstock. Sometimes, supermarkets find themselves with more of a product than they can sell. They sell them to a salvage retailer at a steeply reduced price to clear their shelves. The salvage store passes the savings on to its customers.
Discontinued Goods. Grocery stores often need to unload merchandise they no longer want to carry. Some of these are out-of-season goods, such as Halloween candy in November. Others simply didn’t sell well.
Damaged Goods. Supermarket shoppers prefer food in perfect condition. Slightly damaged food, such as dented cans or ugly-looking veggies, tends to get left on the shelf. Grocers sell them to salvage stores for less fussy customers to buy.
Late-Dated Goods. Some of the wares on a salvage store’s shelves are approaching or even past their expiration dates. However, that doesn’t mean they’re unsafe to eat. Their quality is no longer guaranteed, but they’re still safe and often still perfectly good.
Unsuccessful Products. Sometimes, a company like Kraft or General Mills tests a new product or new packaging for an existing one and finds it isn’t a hit. Rather than discard the unsuccessful products, they sell them to an outlet store.
Wreck Salvage. A few goods at salvage stores are literally salvaged. When a truck carrying groceries gets into an accident, goods often fall off. Salvage retailers reclaim the surviving items from these wrecks and put them on their shelves.

Because salvage stores sell items recovered from larger chains, most of their offerings are name-brand products. However, these rejected products sell at much lower prices than usual.

The selections at salvage stores aren’t limited to food, either. You can also find wine and beer, health and beauty products, cleaning supplies, and pet food. There are even some non-grocery products like garden supplies, office supplies, or clothing.

But the selection at these stores is a bit haphazard. It varies weekly based on what other retailers happen to discard. And a few products at salvage stores are unfit for consumption, such as half-rotted produce or severely dented cans.

In short, shopping at salvage stores is a bit like a treasure hunt. You can pick up some real gems, but you might have to dig through a lot of doubtful bargains to find them.

Examples of Salvage Stores

One sizable chain of salvage stores is Grocery Outlet Bargain Market. It has over 400 locations, mostly in the northwestern part of the United States.

This chain’s offerings include fresh meat, produce, frozen foods, health and beauty products, and wines. These goods can be as much as 70% off their retail price. Items marked as “WOW deals” are particular bargains.

There are also many independent salvage stores located across the U.S. They’re especially common in Amish country.

You can find stores near you by consulting the directory at Extreme Bargains or searching online for “discount grocer near me,” “outlet grocer near me,” or “salvage grocer near me.”

There are also chain stores known as job-lot or liquidation stores that sell salvaged and overstock goods. They don’t specialize in groceries, but they usually have some food products for sale. One example is the Ocean State Job Lot in the Northeast.

While not identical to salvage stores, dollar stores like Dollar Tree and Dollar General are similar. Their pricing model sets these stores apart, with most inventory priced at $1.

Dollar stores don’t focus on food, although most carry some grocery items. However, they often use the same methods as salvage grocery stores to score bargains on overstock and discontinued goods.

Limited-Assortment Grocery Stores

Limited-assortment grocers are just like regular grocery stores but with a smaller selection of products. Many of them offer just one brand and size for each product they sell. The stores are smaller and need fewer employees to stock the shelves. That helps keep prices down.

Limited-assortment stores also keep prices low by cutting out extras. For example, they typically don’t have fresh bakery, deli, or floral sections. These no-frills stores often display products right in their shipping cartons so employees spend less time stocking shelves.

If you shop at a limited-assortment store, expect to bag your own groceries. You must also bring your own bags or pay extra for bags at some stores.

Some chains even require customers to pay a $0.25 deposit to use a grocery cart. This small fee encourages shoppers to bring the carts back rather than leaving them in the parking lot. That way, the store doesn’t have to pay employees to collect them.

Limited-Assortment Store Inventory

Limited-assortment grocery stores tend to focus heavily on their own private-label store brands. At some stores, that’s practically every product on the shelf.

In fact, some limited-assortment stores, such as Trader Joe’s, have built a bit of a cult following around their store brands. Devoted customers regularly visit these stores for products they can’t find anywhere else.

If you’re loyal to any name brands, you probably can’t do all your grocery shopping at limited-assortment stores. But it’s worth visiting them for staple foods that are often similar regardless of brand. Examples include flour, sugar, salt, vinegar, and cooking oil.

Examples of Limited-Assortment Stores

There are many limited-assortment grocery chains in the U.S. Major ones include:

Aldi. This German chain has more than 2,000 stores across the U.S. Its stores are small — about one-third the size of a traditional grocery store. It sells primarily store brands, including organic, gluten-free, and European specialty food items.
Dollar General. This chain has over 17,000 stores in 46 states. Many of them are in small towns and rural areas with few other stores. Its fresh food options are limited, but it has great prices on staple foods, household goods, and non-food items like clothing.
Food4Less. Part of the Kroger family, this chain includes about 50 stores in Southern California, Illinois, Indiana, and Nevada. Its deeply discounted selections include produce, bakery, dairy, meat, and foreign foods.
Lidl. This European chain entered the U.S. in 2017. It now has over 150 stores along the East Coast, from New Jersey to South Carolina. It has higher-end goods than many discount grocers, including organic products, fresh-baked goods, and affordable wines.
Save A Lot. There are over 1,000 Save A Lot locations in over 30 states, many in areas with few or no other stores. Its small, no-frills locations carry primarily store brands. But it gets high marks for its inexpensive meats and fresh produce.
Trader Joe’s. Loyal fans flock to Trader Joe’s for its high-quality store brands. Its specialties include wine, cheese, organic foods, and goodies like cookies and frozen dumplings. The chain has over 500 locations in 43 states.
WinCo. This employee-owned discount chain has over 100 bare-bones stores concentrated in the western U.S. Most stores are open 24/7. One notable feature of WinCo is its use of bulk bins like the ones at Whole Foods to cut down on packaging.

How to Save Money at Discount Grocery Stores

To get the most for your grocery dollar at discount stores, you have to shop strategically. Some grocery shopping strategies are the same for both salvage and limited-assortment stores. Others are more useful for one type of store or the other.

Check the Store Hours

Many salvage stores have limited store hours, which helps keep costs down. They’re only open on certain days or hours each day.

But it’s seriously annoying — and a big waste of gas and time if the store’s far away — to plan a special trip to a closed salvage store. So always check the store hours before you go.

Confirm Coupon Policies

One of the most popular ways to save money on groceries is clipping coupons. Unfortunately, that trick doesn’t always work at discount grocery stores. Most salvage stores and many limited-assortment stores refuse manufacturer coupons.

But at the few stores that take them, such as WinCo, the savings can be significant.

For example, suppose you have a coupon for $1.50 off a 12-ounce bag of ground coffee. At a regular grocery store, that coffee might cost $8.49. That means your price with the coupon would be $6.99.

But at a discount grocery store, you might find that same bag of coffee for as little as $3.99. With your coupon, you’d pay only $2.49. That’s less than one-third the regular retail price.

To find out whether you can score bargains like this at your local discount store, check the store’s coupon policy. If you can’t find it on the store’s website, ask a cashier.

Even if a discount store doesn’t take manufacturer coupons, it may issue its own store coupons. For instance, you can sign up for the mailing list at Grocery Outlet to get deals such as $5 off any $25 purchase. Most limited-assortment stores also offer special deals to subscribers, though Aldi and Trader Joe’s do not.

Bring Cash

Few salvage stores accept credit cards, and some limited-assortment stores follow suit. That’s because credit card issuers charge merchants a fee to use their cards.

Most stores pass these fees on to customers through higher prices. By refusing credit cards, discount stores can keep prices lower.

Some stores are starting to relax their no-credit policies. For instance, on my most recent trip to Aldi, I was able to pay with my credit card instead of having to use cash. But to be on the safe side, bring cash or a debit card on your first visit to any new store.

Examine Containers Carefully

At salvage stores, it’s common to encounter food in damaged packaging, such as dented cans. In most cases, the food is still safe to eat. For example, the U.S. Department of Agriculture says it’s not dangerous to eat canned food if the dents are slight.

However, if a can has a deep dent — big enough to lay your finger in — leave it on the shelf. Deep dents can compromise the seal, letting bacteria in.

The same guidelines apply to rust. A little rust on the surface that rubs right off is no problem. However, heavy rust can create tiny holes that admit bacteria.

Food in torn or dented boxes is also safe as long as the plastic bag inside the box is intact. Boxed foods with no inner liner, such as pasta, are OK if the box is only dented. But if a box is torn open to expose the food, it’s best to leave it.

Examine Fresh Produce

Fresh produce at discount grocery stores is a mixed bag. On some trips to Aldi, I’ve failed to find a single bag of potatoes without at least one that was visibly rotten. On the other hand, the bagged Brussels sprouts and miniature avocados at Trader Joe’s have never let me down.

Since quality is hard to predict, it’s best to examine all produce carefully for signs of spoilage before you put it in your cart. In fact, that’s a good policy at most grocery stores. Even at big supermarkets, I often find a couple of mushy strawberries in a quart container.

Understand Expiration Dates

Food at salvage stores is often close to or even past the expiration date on the package. But that doesn’t mean it’s unsafe to eat. Dates on food are there to assure food quality, not food safety.

There are several different types of expiration dates, each with its own meaning:

Best if Used By means the flavor or quality of the food is best before the given date. Past this date, crackers might be a bit stale, or powdered milk might have an off-taste.
Sell-By dates tell stores how long to keep the product on their shelves. Food is still good up to this date and for several days after. For example, milk doesn’t go sour until five to seven days past its sell-by date.
Use-By dates tell consumers when the product will be at peak quality. They’re not an indication of safety for most products. The only product it’s unsafe to buy or use after its use-by date is baby formula.

Most products, including canned and frozen foods, are still safe after any of these expiration dates. The only time frozen food might be unsafe is if it has been thawed and refrozen. If the freezers at the store have puddles around them or don’t feel cold everywhere, pass them by.

There’s one non-food product on which dates are important: over-the-counter drugs. According to the Food and Drug Administration, drugs degrade over time. Any medicine past its expiration date may be unsafe or ineffective.

Know How to Spot a Good Deal

Although discount grocery stores generally offer low prices, they’re not always the lowest possible. Sometimes, you can do better at a regular grocery store by buying store brands or stacking sales with coupons.

The best way to spot the true deals is to keep a grocery price book. It’s simply a record of the prices you typically pay for the grocery items you buy most often.

For instance, the page for peanut butter in my price book tells me that the best price I can usually get is $2.85 per pound at Costco. So if I go to a discount store and see peanut butter for only $2 per pound, I know it’s time to stock up.

Consider All Brands

Salvage stores have a wide variety of brands on the shelves. Some are familiar name brands you know and love, like Campbell’s or Coca-Cola. When you find these, you can take the opportunity to stock up on your favorites.

But these name brands aren’t always available. Often, they carry off-brands you’ve never heard of before, like Banquet mayonnaise or Finest refried beans.

Similarly, when you shop at limited-assortment stores, there are very few name-brand products for sale. Most of the offerings are store brands, though they don’t always have the store’s name.

For instance, Aldi calls its cereals Millville and its snack foods Clancy’s. Save A Lot names its store brands after former employees, like McDaniel’s coffee and Sunny’s cookies.

Don’t discount these brands just because they’re unfamiliar. Some of them are just as tasty as the name brands you’re used to. But you can’t be sure until you try them.

To be on the safe side, buy the smallest package the first time you try an unfamiliar brand. If you like it, you can stock up on it next time. And if not, you haven’t wasted much money.

Stock Up When Appropriate

Discount grocery stores are great places to stock up on goods you use a lot. Even if you can’t use something right away, it makes sense to buy plenty, especially at salvage stores. Their stock is ever-changing, so the product might not be there the next time you shop.

But stocking up only makes sense for nonperishable goods or those you know you can use before they go bad. There’s no point in buying six avocados if four of them are going to turn black before you eat them.

The best products to stock up on are canned foods, shelf-stable foods, and produce with a long shelf life. Potatoes, onions, and garlic can all last a long time if you store them in a cool, dry place. Frozen foods are also a good choice if you have a big enough freezer to store them all.

Final Word

If you don’t like the offerings at one local discount store, don’t let that put you off the idea altogether. Each discount grocery store is different. If you don’t like the store brands at Aldi, maybe you’ll prefer the ones at Save A Lot.

Also, remember that the selection at salvage stores changes frequently. If you didn’t find anything you liked at your local store the first time, it’s still worth going back to see if it has anything better next time.

Shopping at discount grocery stores requires an open mind. The brand names aren’t as familiar, and the packaging isn’t as pretty. But if you’re willing to take a little extra time, these stores offer a way to save money every time you grocery shop.

For more tips on saving at the grocery store, check out our shopping archive.

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Amy Livingston is a freelance writer who can actually answer yes to the question, “And from that you make a living?” She has written about personal finance and shopping strategies for a variety of publications, including ConsumerSearch.com, ShopSmart.com, and the Dollar Stretcher newsletter. She also maintains a personal blog, Ecofrugal Living, on ways to save money and live green at the same time.

Source: moneycrashers.com

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Source: mint.intuit.com

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November 17, 2021

25 Tips to Save Money on Christmas Decorations This Year

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For all its joy and cheer, Christmastime pulls us in many different directions — physically, emotionally, and financially. It can be tough to keep up with all the demands, including your holiday budget.

You can’t control the cost of perfect gifts for everyone on your list. You can’t control the unpredictable expenses that always seem to come with the season. But you can go out of your way to save money on Christmas decorations, leaving plenty left over to spread holiday cheer. There are plenty of ways to deck the halls in style for less.

Ways to Save Money on Christmas Decorations

You can save money on holiday decorations with these tips for proper planning, smart sourcing, and strategic shopping.

Plan Before You Go

Planning your holiday decor before you start shopping gives you more opportunities to think strategically and find savings.

1. Start Planning Early

The further ahead you plan your holiday decorations, the more time you have to set up chances to save.

You can shop around, buy just what you need, and avoid last-minute markups. You’re also more likely to find what you’re looking for instead of making do with whatever’s left on the shelves.

If you wait until mid-December, you have to hastily buy what’s available without any research. And you’re often stuck at a specialty or big-box store just when they’ve marked up prices the most.

2. Pick a Theme

What do you want your holiday decorations to look like this year? You have lots of options.

You can go classic with a Dickens theme. Or focus on the religious meaning with a peaceful Nativity scene. Or perhaps your kids or grandkids are all about the latest Disney princess.

No matter what you decide, once you’ve settled on a theme, it narrows the types of decorations that make sense. It doesn’t matter how cute a novelty or bauble is. If it doesn’t fit the theme, it stays out of the cart.

3. Decide Where to Decorate

Themes and goals do little to help you save if you fill your cart with vaguely appropriate stuff you’re unsure how you plan to use. Go through your house and decide what kind of thing might go in each location.

You don’t have to make final decisions yet. Just know what space you have available.

That open spot on the side table might accommodate a wicker basket filled with clove-spiked oranges or a holiday-themed candy bowl. But a taper candle or nutcracker will be dwarfed by that space.

Take notes. Use online images to help you envision the final look. You can even take pictures of your home and use a graphics editor like Photoshop to create mock-ups.

4. Set a Budget

Run the numbers for your holiday budget. Don’t forget to include what you’d like to spend on holiday gifts, travel, entertaining, and fun. From whatever’s left over, set a maximum amount to spend on decorations this year.

Then remember the saying. “It’s called a budget because you don’t budge.” This budget is a promise to yourself, so keep that promise.

5. Make a List

Going grocery shopping with a list can save you big on food bills. And the same applies to your Christmas decoration shopping.

Once you have a plan and budget, write down the things you need and how much it’s likely to cost. Don’t forget to include related expenses like batteries and tea lights.

If the things you want send you over budget, rethink each decoration. Put anything you decide to cut on a wish list. You may be able to get them if you get a fantastic deal or find an alternative before you go shopping.

Otherwise, once you’ve got your list under budget, stick to it to ensure you don’t overspend, no matter what cool upgrade shows up in your decor shopping journey.

Think Before You Shop

You have a plan, but you’re not ready to shop yet. Before you head to the store, think about how you can get the most bang for your buck, how fancy your decorations need to be, and alternatives to buying brand-new decorations.

Every decoration you can save on or get for free is a decoration you can move from your wish list to the shopping list.

6. Embrace the Power of Showrooming

“Showrooming” is a term retailers use to describe going into a store to physically interact with a product only to buy it cheaper online. Retailers hate showrooming because it cuts into their profits.

But for a consumer, showrooming is a fantastic opportunity. Many online listings fail to give a good enough sense of the size, colors, and quality of the product. The wait for shipping can mean receiving a disappointing decoration with little time to do anything about it.

Don’t just walk away once you’ve settled on a product. Many big-box stores match Internet pricing if you can show them what’s available. But don’t just buy it, either. Wait until you’ve seen what’s out there.

7. Invest in Quality Where It Counts

Imagine you have to choose between a $120 door wreath and a $12 one. If the cheap one lasts just one year, and the expensive one lasts 10 years or more, the expensive wreath is the better choice.

It’s better to buy just one or two quality things each year and amass a stellar collection over time than buy lots of cheap stuff you continuously replace. So aim to buy a few high-quality pieces each year instead of large collections of cheap baubles that will break or wear out.

Your tree is one of the best examples. A quality artificial Christmas tree lasts 10 years or more and costs just two to three times as much as a live tree of a comparable size. That means it’s between three and five times as good a deal before you even consider the fire hazard or costs of watering and disposal.

That said, some things, such as fads and kids picks your children will outgrow, are better cheap and disposable. You can pick those up at the dollar store or a budget retailer.

As you’re making your plan, decide what needs to be an investment piece and what you can cheap out on.

8. Opt for Multitaskers

Items that serve just one purpose are the bane of budget-conscious shopping. Decorative ones are the worst of the lot. They get used once each year and spend the rest of the time in storage.

A Christmas tree is a must in most households. But consider forgoing the Santas, reindeer, and candy canes for more general decorations. For example:

Pine boughs and holly, which can stay up for most of winter
White lights instead of multicolored, which you can string outside all summer
Snowflake and winter art celebrating the weather more than the holiday

As you map out your Christmas decoration plan, incorporate as many of these elements as possible.

9. Shop Your Home First

Before you set foot in a store, go through your home. Pull out all the Christmas decorations, winter equipment, and general decorations. Look in your donations box and the toy trunks.

You may find exactly what you need or things that are close enough. You may even find something that’s even better than you planned.

Depending on how established your household is, it can cut half or more of the items off your shopping list. As a bonus, it means you have fewer new things to find a home for when the season is over.

10. Shop Your Neighbors & Family

After you’ve run through the potential decorations in your home, check with people you know. Find out if they can lend you anything for this year’s plan and offer to return the favor.

Better yet, set up a neighborhood decoration swap. At a swap, participants meet to exchange their unwanted stuff for things they need without spending a dime.

11. Team Up With Friends & Family

Warehouse clubs, retail supply outlets, and large online lots sell goods in bulk at a discount. During the season, you can find decorations like wreaths, tree baubles, and lights among those deals.

The problem is you only need one household’s worth of decor. Buying the bulk package for everything you need won’t save you money.

Fortunately, nearly everyone you know probably wants or needs them too. So go in on the bulk purchase and split it. That helps you save on your purchase without ordering more than you need.

Take this one step further by getting together with three to six other households. Plan several Christmas decoration themes you all like. You need the same number of themes as you have households.

Avoid fads and pop culture phenomena. A “Frozen” Christmas theme may look dated in three to six years (or your kids may have lost interest).

You each buy the decorations for one theme, then trade at the end of every season. That gives all participating households several years’ worth of Christmas decor for the cost of just one year’s supplies.

Just ensure you set a budget range to ensure everyone feels they got their money’s worth each year. For example, every household should spend a minimum of $75 but no more than $100. You can also establish rules like avoiding tall pieces that don’t fit in every house.

12. DIY It

Before you buy anything, look into what you can make yourself. Homemade decorations ranging from popcorn strings to paper snowflakes to small wrapped boxes can save you a surprising amount of money over buying something comparable.

Or come up with something unique. For example, string last year’s Christmas cards on twine for an attractive, meaningful garland you can update every year.

You can turn the whole project into family time with the kids. Each age group has something to offer, and they can be proud of the finished product knowing they contributed.

But note that some DIY projects cost more than just buying the alternative. For example, you could easily copy that wine bottle message display you found on Etsy, but when you can’t buy in bulk like the original designer, the cost of supplies adds up fast. It’s cheaper to buy it from the Etsy shop.

Do your homework and choose homemade only when it saves money.

Shop Smart

Knowing where to shop (and not shop), how to get discounts and earn rewards, and when and how to compare products can save you a lot if you take the time.

13. Start at the Thrift Store

Thrift shops can be an excellent source of clothing, books, games, and toys. But many also put out seasonal items when the time is right. Some might need some TLC, like a touch of paint or stitching up a tear.

Even if you can’t find holiday decor, you might find some inexpensive supplies for a seasonal DIY. For example, pick up a well-loved doll or broken jack-in-the-box for your Isle of Misfit Toys display.

14. Shop the Dollar Store

While quality is essential for decor you need to last, the Christmas season often calls for stuff you can only use once, such as fake snow or tinsel strands.

You can also find inexpensive candles, jars and vases, artificial flowers, and baskets to fill with holiday-themed baubles like pine cones and Christmas balls. Things like these should last for years if you take care of them. A creative mind can turn them into eye-catching decorations on a budget.

While dollar store selection varies by retailer and location, many carry a surprising variety of Christmas-themed goodies for less than big-box retailers. For example, Target sells Christmas stockings for $5 and up, but my local Dollar Tree sells perfectly good ones for a buck.

But if you need more than a few pieces, check other options for decoration sets. For instance, Target offers several packs of multiple decorations for $25 to $30. If that pack contains more than 25 or 30 individual pieces, you’d spend more replicating it at the dollar store.

15. Shop at the Craft Store

When you’re picking up supplies for your family night DIY, don’t overlook the craft store’s other finds.

In addition to craft supplies, you can often find Christmas-themed components that can serve as decorations. For example, you can nab scented or glittery pine cones, miniature reindeer and Santas, and assorted season-themed picture frames. And they tend to cost a fraction of what you’d pay for something similar in the Christmas aisle elsewhere.

16. Be Careful at Big-Box Stores

Big-box stores like Home Depot, Target, and Best Buy can be a blessing or a curse for saving money on Christmas decorations. They carry some products at prices lower than other retailers but tend to mark up other items substantially.

Their general profit model is to bring you in for a good deal. Then, once you’re inside, they bet on you noticing other things you want or need. And you pay more than you should because it’s convenient.

Stick to your list and only take advantage of the good deals when shopping at these locations.

17. Avoid Specialty Stores

Local holiday pop-up stores appear every season in unused storefronts or holiday markets.

They’re almost always far more expensive than big-box stores and the Internet. Sometimes, they have really neat, exclusive decor, but they’re rarely worth the extra cost.

Closely related are the year-round specialty shops like Hallmark and Disney stores. Their price tags are similarly out of proportion with other options.

18. Run Everything by Amazon

Amazon has immense buying power in multiple industries, meaning they can outprice almost all their competition on a multitude of products.

So before you buy anything from another retailer, check to see if Amazon can do better. If they can and you can receive it in time, that’s the better choice. That’s especially true for Prime members, who get free shipping on almost everything on the site.

This plan is especially frugal if you have an Amazon rewards or Amazon Prime rewards credit card. Both cards offer cash back on every purchase. But stick to your budget and avoid a standing balance.

19. Leverage Customer Loyalty Programs

If you have loyalty rewards cards at stores that sell Christmas supplies, now is the time to use them. For example, the Kohl’s rewards you racked up in November could get you discounts on mantel decorations or lights and garlands.

Run the numbers first. Stores with rewards programs typically have slightly higher prices than the competition. So ensure the savings provides a lower final price than you’d pay elsewhere.

20. Remember Shipping

When you shop online for decorations, don’t forget to account for shipping costs. A discounted online purchase can cost the same or more as an in-store buy after you cover the cost of transportation.

It’s crucial to keep an eye on shipping costs with large objects like inflatable yard decorations or an artificial tree. Shipping them costs the retailer real money, and they pass that cost on to you.

If possible, stick to retailers that offer free shipping, like Amazon and Overstock.

21. Don’t Skip Black Friday & Cyber Monday

Black Friday and Cyber Monday are best known for deep discounts on high-ticket gifts. During these events, you can find good savings on decorations or related products like craft supplies, LED candles, and batteries.

22. Learn to Love Singles’ Day

Singles’ Day is a popular Asian shopping holiday that falls on Nov. 11. Although it’s a newer phenomenon, it already dwarfs Black Friday in terms of overall dollars spent. Singles’ Day sales are only available from Asia-based retailers. So look closely at shipping costs and estimated shipping times to avoid nasty surprises.

23. Use Cash-Back Apps & Browser Extensions

Cash-back apps like Ibotta and Rakuten give you cash back on purchases made at member stores. It’s the equivalent of using a coupon at the register. These deals focus primarily on groceries and restaurants but include retailers who deal in holiday decor. So you can find deals if you look.

Each transaction is only worth a small amount, but the savings accumulate into a single larger periodic payment. Depending on the app you choose, you can receive it via a cash-transfer app like PayPal, check, or free gift card.

You can get similar results online from browser extensions like Capital One Shopping or Honey. These interact with your shopping cart, automatically scanning the Web for coupons to reduce your price for whatever you buy.

24. Pay With Cash-Back Credit Cards

Use cash-back credit cards to pay for all your Christmas purchases, including decorations. When you use one of these cards, a percentage of your purchase becomes a rewards credit on your account.

Later, you can redeem those rewards to reduce the balance on your card or receive a cash payment or gift card. Some cards have other options, like airline miles.

When buying Christmas decorations with cash-back cards, use the one with the best rewards for your needs.

For example, say you have two credit cards. The Capital One Quicksilver card offers 1.5% back on all purchases, while the Costco Anywhere Visa gives 1% cash back everywhere and 2% at Costco. So opt for the Quicksilver when you’re at most retailers, but switch to the Costco card when you’re in the warehouse store.

You can also look at reciprocal discounts from your credit card-associated frequent flyer plan. For example, American’s Simply Miles program offers discounts or extra miles for purchases at 30 retailers. Some of yours might give blanket discounts or other deals at shops where you want to buy your decor.

But use caution. Spending too much on credit cards can saddle you with debt for months to come. The interest can cost more than the value of the rewards. Only spend what you can afford to pay back immediately, and pay off the balance as soon as possible.

25. Stack Discounts

You can save even more by stacking discount opportunities.

For example, you might look at Ibotta and find it has a 7% cash back offer at Michaels craft store for purchases of up to $100 in value. With that in mind, you find they have an inflatable snowman yard decoration for just over $100.

After a little more research, you find a 20% off coupon on the Michaels website. Between that and the Ibotta deal, you’re at a total of 27% saved.

But don’t stop there. At the register, pay with a 2%-cash-back credit card to get even more rewards.

Discount stacking requires research and planning but can add up to hundreds of dollars unspent or returned to you over a holiday season.

Final Word

If you really want to save money, take this year off. Use what you have or leave your home undecorated. Take the money you would have spent on Christmas decor, and put it in a savings account until January.

With the holiday season in everybody’s rearview mirror, whatever stock stores still have goes on deep discount. You can pick up all your Christmas cheer for pennies on the dollar. It’s something you can do every year. Use January’s purchases at the end of the year, then buy upgrades in January.

You can’t use this strategy to save on Christmas decorations this year, but it’s a strong strategy for budget-friendly holidays for a lifetime.

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Jason Brick became a freelance writer after years of small business ownership and life coaching experience. He now works full-time as a freelance writer and speaker. He lives in Oregon.

Source: moneycrashers.com

November 17, 2021

Affordable Child Care Hacks

With many parents living in households where both spouses work outside the home, child care has become a significant portion of many budgets. While nobody wants to leave their children in the care of the absolute lowest paying provider, many people are looking for ways to save money on child care expenses. Here are a few hacks to consider if you’re looking for ways to save money on childcare.

Use Dependent Care FSA

One of the best child care hacks is a dependent care flexible spending account (FSA). A dependent care FSA is similar to a Health Savings Account. Both are accounts that are typically offered as employee benefits. A Dependent Care FSA allows you to take out money from each paycheck and not have to pay taxes on it.

You can then use that money to pay for child care throughout the year. A wide variety of different types of childcare are eligible to be paid for with DCFSA funds, so make sure to check the rules and regulations of your account. By paying for your childcare costs with pre-tax dollars, you’re getting a savings of 20-30% or more as compared to paying with after-tax money.

One other thing that you’ll want to be aware of with a Dependent Care FSA is that many accounts are “use it or lose it” each year. So you’ll want to be conservative with how much money that you put into the account, and make sure that you use all of your funds each calendar year.

Work From Home Or Adjust Your Schedule

Another possible child care hack involves how flexible you can make your schedule. Of course this will depend on your specific employer and job situation, but if you have flexibility with your schedule, it’s possible that you can arrange things to save on childcare. This is especially true if your spouse or partner also has a flexible schedule.

It’s unlikely that you’ll be able to adjust your schedule so that you can both work full-time at home and take care of children full-time, especially if your children are younger. Clearly, that will mean that both your work and home life are likely to suffer. But you may be able to arrange things so that you can trade off with your spouse to reduce the amount of days / hours that you need childcare.

One idea might be to trade off days where you are working from home vs. being in the office. Or, if you have flexibility with your workable hours, you might work early in the morning with your spouse doing child care in the mornings to trade off later in the day. Experiment with different options to see if any of these options work well for your family. Even one day a week where you can save on childcare represents a 20% savings.

Consider a Nanny Share

If you’re more interested in working with a nanny but feel like it’s too expensive a nanny share could be a great option for your family. Sharing a nanny with neighbors or friends can be a good way to take advantage of the benefits of having a nanny including a more flexible schedule and more one-on-one attention for your child while also cutting cost.

Look For Family And Friends

Another option is to look for family and friends that might be able to help out. If grandparents live in the area, they could be an option, either as full-time caregivers or as part of your overall childcare strategy. Again, this is something where being able to be a little flexible can help out. Another option to look into might be doing a bartering arrangement with another family where you exchange childcare for another service.

Is It Worth It?

Finally, take a look at your budget and see if going to a one-income household is at all feasible for your unique situation. Of course, in many situations it will not be, but there are hidden expenses to the two-income life that you might not be thinking about. If you are in a household situation where one partner makes significantly more than the other, it may make sense to have the second partner stay at home.

Of course, you’ll almost completely eliminate your childcare expenses if one partner stays at home, but with someone at home full-time, you may also drastically reduce your food budget. Having someone at home likely means that you’ll be able to shop more carefully and eat out less.

Taxes are another big expense that you can reduce by dropping to one income. With a second income, not only are you paying taxes on your income, but by raising the total household income, you’re likely being bumped up to a higher tax bracket overall. It may not be possible, but if there is interest in having one spouse stay at home, run the numbers and see if it makes sense for you.

The Bottom Line

For families, childcare is one of the largest expenses of your household budget. But if you’re flexible and think outside of the box a bit, you can save some of those costs. If your employer offers it, look at a Dependent Care Flexible Spending Account to pay some of your child care expenses with pre-tax dollars. And if you have a job where you work from home sometimes, see if you can arrange your schedule to help cut down on childcare costs.

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Source: mint.intuit.com

August 25, 2021

Upstart Personal Loans Review – A Refreshing Take on Online Lending

Looking for an unsecured personal loan? Have decent credit or better? Not sure you want to deal with the red tape you’re apt to encounter at a traditional bank? If so, you might be in the market for an unsecured personal loan from Upstart, an online-only personal lender based in the San Francisco area.

Upstart issues fixed-rate personal loans to U.S.-based borrowers who meet its credit, income, and employment criteria. Well-qualified borrowers snag rates as low as 7.35% APR, subject to change with prevailing interest rates, and loan principals as high as $50,000. Upstart is a peer-to-peer (P2P) lender that partners with third-party bank lenders to initiate loans funded by individual or institutional investors.

Unlike some competitors, Upstart casts a wide underwriting net, evaluating applicants’ educational attainment, area of study, and employment history in addition to more typical factors like credit score and credit history. If you’ve had trouble qualifying for personal loans at other online-only lenders, it’s worth your while to give Upstart a shot.

Let’s take a closer look at Upstart’s loans, lending process, benefits, drawbacks, and overall suitability.

Getting a Loan With Upstart

Upstart’s core product is an unsecured personal loan. Here’s what you need to know about it.

Upstart’s Loans: Characteristics and Restrictions

Upstart issues unsecured loans with principals ranging from $1,000 to $50,000. In some jurisdictions, the minimum loan amount may be higher; for instance, it’s $6,000 in Ohio and $7,000 in Massachusetts. The maximum loan amount depends on your borrower profile, which includes credit factors such as credit score and history, and noncredit factors such as employment history and income.

Upstart’s loan terms are 36 months (3 years) or 60 months (5 years). Origination fees range from 0% to 8% of the loan principal, depending on your borrower profile and loan term. Your origination fee, if any, is deducted from your loan principal at funding. Loan rates are fixed for the life of the loan and currently range from 7.35% to 35.99% APR.

If you choose to make additional principal payments or pay off your loan in full ahead of schedule, Upstart does not charge a prepayment penalty. Other than the origination fee, the only common fees associated with Upstart loans are a late payment fee, which is the greater of $15 or 5% of the monthly past-due amount, charged on payments made more than 10 days past the monthly due date, and a $15 failed payment fee.

Upstart’s loans can be used for:

Upstart’s loans aren’t suitable for everything. If you’re unsure whether you can use an Upstart loan for a particular purpose, discuss it with a loan specialist.

Checking Your Loan Rate

The first step in Upstart’s loan application process is a quick rate check. Choose your loan purpose from the drop-down menu on Upstart’s home page, then click “Check Your Rate.” On the next page, you’ll need to provide a fair bit of detail about your identity, employment, and finances, including:

Desired loan amount
Name and address
Date of birth
Phone number, email, and unique account password
Annual income from all sources you wish to share
Income type (such as salary or hourly wage)
Employment history (employer, start date)
Educational attainment (highest degree)
Educational record (name of institution, field of study, graduation date)
Cumulative checking, savings, and investment account balances
New loans initiated during the preceding three months, if any
Desired payment method (such as automatic debit or mailed check)

Checking your rate does not impact your credit score. If you wish to proceed with your application, though, you’ll need to consent to a hard credit pull that will temporarily decrease your credit score.

Evaluating and Accepting a Loan Offer

Once you submit your information, Upstart checks your credit score, then issues an application decision. If you qualify to proceed with the application process, you’ll see at least one loan option offering a particular rate, term, and origination fee. Rates on 60-month loans tend to be lower than rates on 36-month loans.

If you wish to proceed, you’ll need to provide your Social Security number and verify any bank accounts you want Upstart to consider during the underwriting process. After applying, you may be required to provide additional documentation, such as pay stubs or tax documents, so it’s best to keep a close watch on your email and phone until your application is formally approved or denied.

Upstart sets itself apart with a proprietary underwriting process that takes into account a variety of noncredit factors, including your employment history, professional marketability — as measured by your field of study — and educational attainment.

Upstart doesn’t provide detailed information about its underwriting criteria, but it’s entirely possible that its bias toward highly educated borrowers allows it to consider applications from prospective borrowers whose credit scores or employment profiles would otherwise disqualify them. I’m just one data point, but I find it noteworthy that Upstart didn’t bat an eye — and, indeed, conditionally approved my application — when I listed my income type as “self-employed” and used the vague category of “media” to describe my job duties. For many lenders, that’s not enough.

Funding Your Loan

Upstart prides itself on rapid funding. If you accept your loan terms before 5pm Eastern time on a business day and Upstart encounters no hitches during the verification process, you’ll receive your funds the next business day. If you accept after 5pm, you’ll receive your funds two business days later. Funds are deposited into the bank account of your choosing, minus the agreed-upon origination fee.

Repaying Your Loan

Beginning the month after your loan is funded, you’ll need to make regular repayments at the agreed-upon fixed payment amount by the monthly due date. Repayments include principal and interest calculated on the loan’s total principal. Repayment options include manual electronic payments, automatic electronic payments (auto-debits), and mailed checks. Payments are considered late after 10 days past due. There’s no penalty for accelerating your repayments or paying off your balance in full before your loan reaches term.

If you need to get in touch with the Upstart team, you can call the toll-free customer support hotline at 855-438-8778 from 6am to 5pm Pacific time (9am to 8pm Eastern time), seven days a week. After regular business hours, email [email protected]

Advantages of Getting a Loan From Upstart

Innovative, Inclusive Underwriting Process. Upstart’s underwriting process is more inclusive and innovative than the typical personal lender’s, P2P or not. In addition to common factors such as credit history and credit score, Upstart’s proprietary underwriting engine takes into account employment history, educational attainment, and even the borrower’s area of study — which, for better or worse, can significantly impact lifetime earning potential. In other words, Upstart is not a one-size-fits-all lender, and that’s great news for borrowers who don’t fit the traditional mold.
Rapid Funding. The vast majority of Upstart loans are funded within a single business day. If rapid funding is important to you — and it may well be, if you’re using your loan proceeds for time-sensitive purposes such as debt consolidation — Upstart should be high on your list. Some competing lenders take up to a week to fund the typical loan.
No Prepayment Penalties. You can pay off your Upstart loan at any time without incurring any financial penalty. This lets you eliminate a recurring monthly expense, budget permitting, without paying extra.
Borrow Up to $50,000. Well-qualified Upstart applicants can borrow up to $50,000 in a single loan. Some competing lenders’ loans top out at $25,000 or $30,000. If you’re looking to consolidate debts or fund major purchases approaching $50,000, Upstart’s high borrowing cap could be a difference-maker. Just remember that you’re not automatically entitled to a $50,000 loan from Upstart, and your borrower profile may well cap your borrowing capacity below that threshold.
Some Borrowers Pay Trivial Origination Fees. Upstart has a wide origination fee range. On the bright side, well-qualified borrowers may qualify for sub-1% origination fees, if they’re charged origination fees at all.
Wide Range of Acceptable Loan Uses. By the standards of the online personal lending category, Upstart’s loans are appropriate for a wider-than-usual range of uses. Notably, Upstart loans can be used to fund tuition and other education expenses. Many competitors specifically exclude this application.

Disadvantages of Getting a Loan From Upstart

Potential for High Origination Fees. The flip side of Upstart’s wide origination fee range is the potential for extremely high origination fees — up to 8% of the loan principal in the worst case. Upstart determines origination rates on a case-by-case basis and doesn’t reveal precisely how they’re calculated, but applicants with less-than-stellar credit or otherwise weak borrower profiles are likely to trigger higher fees.
Higher Minimum APRs Than Some Competitors. Upstart’s minimum APR currently sits above 7%. That’s higher than some competing branchless lenders. Even small rate discrepancies add up over time, so well-qualified borrowers may wish to shop around for the lowest possible rate.
Only Two Term Options. Upstart has just two loan term options: 36 and 60 months. Traditional bank lenders may offer more flexible unsecured loan terms, while some branchless lenders, including Upgrade, offer credit lines with a wider range of term options.
Limited, Confusing Help Portal. Upstart’s help portal isn’t particularly helpful or user-friendly. In my experience, its search function seems pretty picky and selective. For example, a search for “origination fees” returned zero hits, even though a standard-issue Google search for “Upstart origination fees” returned an Upstart help article mentioning origination fees. I’d recommend using your favorite search engine as a back door into Upstart’s help library unless the information you seek happens to appear among the handful of featured articles.
Only One Core Credit Product. Upstart has just one core credit product: an unsecured personal loan funded by P2P investors. With a pretty wide variety of accepted uses, the product is versatile enough, but its structure and terms aren’t particularly flexible. Some competing lenders offer unsecured personal lines of credit, which are better for borrowers with short-term working capital needs. Most traditional bank lenders offer secured credit options as well, such as home equity lines of credit (HELOCs) for borrowers with sufficient equity in their homes.
Not Available Everywhere. Upstart loans aren’t available in all states, and availability is subject to change over time.

Final Word

Unlike some online-only competitors, Upstart is a P2P lender that uses individual investors’ funds to support its lending activities. The explosive growth of P2P lending this decade is just one example of the sharing economy’s power to fundamentally reshape how business is done.

The people-powered economic reordering isn’t over, not by a long shot. In the coming years, we can expect plenty of innovations that make P2P lending seem quaint. For now, let’s all celebrate just how easy it’s become to get a reasonably priced personal loan.

Source: moneycrashers.com

August 24, 2021

Private School vs. Public School – Cost & Comparison

School costs for children are one of the most significant expenses for many middle-class families. Some parents pay thousands of dollars each year to send their kids to private schools, while others spend thousands in mortgage costs to buy homes in top-rated school districts.

A 2016 Brookings Institution analysis of 2010 and 2011 data found that housing near high-scoring public schools cost an average of $11,000 more per year than homes near low-scoring schools.

For parents who want the best possible education for their children, the choice between private school and public school is a tricky one. Both have their costs, but which is actually higher? And when you compare the benefits of private and public schools, are they enough to justify the costs?

Costs and Benefits of Private School

According to figures from the National Center for Education Statistics (NCES), there were 34,600 private elementary and secondary schools in the United States in the fall of 2015. About 5.8 million American children were enrolled in private schools that year — roughly 11% of all schoolchildren in the country.

The primary difference between private schools and public schools is that private schools don’t receive any funding from the government. That’s why they have to charge tuition. However, within this broad category, there are many different types of schools that vary widely in their costs and the education they provide.

Types of Private Schools

When you’re weighing the costs and benefits of private school, know that the type of school you choose significantly impacts your decision. There are many different kinds of private schools, and they differ greatly in their cost and approach to education.

For-Profit vs. Nonprofit

All private schools charge fees, but only some are for-profit businesses. Some are nonprofits run by religious organizations or private foundations. A nonprofit school is likely to have lower fees than a for-profit one.

Religious vs. Secular

According to the NCES, two-thirds of all private schools in the country are religious schools. About 20% are Catholic schools, 12% are conservative Christian schools, 9% are affiliated with another religion, and 26% are unaffiliated. In 2015, more than 75% of all private school students were in religious schools.

Religious schools fall into two categories. Some are true private schools, which get their funding from tuition fees. They provide a religious education, but they aren’t part of a church.

Others are parochial schools or parish schools. These are extensions of a local church and receive funding from it. They still charge fees, but they’re likely to be lower than the fees for other private schools.

Boarding Schools vs. Day Schools

Boarding schools provide food and lodging for their students in addition to education. At some schools, students live on campus during the week and go home on the weekends. At others, students live on campus throughout the school year and go home only for vacations. Faculty, staff, and their families often live on campus as well.

At day schools, children go to school each morning and come home in the afternoon, just as they do in public schools. These schools tend to be much cheaper than boarding schools because they don’t have all the extra costs of housing students.

Specialty Schools

Some private schools focus on providing a specific type of instruction. For instance, language immersion schools focus on teaching students a language other than English. Students take all or some of their classes in the foreign language.

Other private schools cater to students with different education requirements. These include students with disabilities, students on the autism spectrum, and students with various types of emotional and learning disorders. Teachers and staff are trained to handle these students’ specialized learning needs. That makes these schools more expensive than most.

Other private schools take their name from their general approach to education. For instance, Montessori schools focus on helping children explore and learn in their own way at their own pace. Waldorf schools are nonprofit schools that incorporate the arts into all subject areas.

Private School Costs

On average, the cost of private school tuition is s $12,350 per child, according to EducationData.org. On top of that, parents can expect to pay an average of $3,700 for other costs, such as technology, books, supplies, field trips, sports, and school uniforms. That brings the total to $16,050 per year.

That’s a significant burden for a middle-class family. In 2019, the national median household income in the U.S. was $68,703, according to the U.S. Census Bureau. That means that a family making the median income would have to spend about 23% of its take-home pay to send just one child to private school and 46% for two children.

However, the cost of tuition varies significantly across the U.S. In Massachusetts, the average cost of private school tuition is $24,000 per year — about 27% of the state’s median household income. In Nebraska, it’s just $2,800, less than 4% of the median income. Thus, the affordability of private schools depends a lot on where you live.

The type of school also makes a difference. The average tuition cost for a private day school is $16,000 per year. Five-day boarding schools cost more than twice as much at $33,140. And seven-day boarding schools cost a whopping $37,590 per year.

The grade level affects the cost too. The average tuition for private elementary schools is $7,630 per year compared to $16,040 for private high schools.

Finally, religious affiliation is a significant factor in cost. Catholic schools tend to be much cheaper than other private schools, costing just $4,840 for elementary school and $11,240 for secondary school.

All these factors together add up to considerable differences in cost. A family with an average income would pay just 7% of its income to send a child to a Catholic elementary school but over 50% for a seven-day boarding school.

Private School Benefits

Although private schools are expensive, parents have many reasons for choosing to pay the cost. Private schools can offer many benefits for students, including:

Smaller Class Sizes for Younger Students

A small class allows teachers to give more attention to each student. In 2017-18, the average class size in private elementary schools was 16.7 students, according to the NCES. By contrast, in public primary schools, the average class size was 20.9 students.

Lower Student-to-Teacher Ratio

Aside from class size, private schools also tend to have fewer students in total for each teacher. According to the NCES, the average student-to-teacher ratio in private schools was 11.9 in 2015. For public schools, there were an average of 16.2 students per teacher.

Safety

Private schools are often safer environments than public ones. The NCES reports that gangs are less likely to be present in private schools than public ones. Private school students are also less likely to see hate-related graffiti at school, be called by a hate-related name, or experience bullying.

Curriculum

State law typically requires public schools to provide a curriculum that meets state standards. Private schools have more freedom to experiment. In addition to religious education, they’re more likely to offer courses in subjects like art or music.

Advanced Placement

Private high schools tend to offer a more comprehensive selection of advanced-placement (AP) courses than public high schools. Private schools across the U.S. offer an average of 11 AP courses, while the average for all schools is eight AP courses.

Test Scores

According to a 2006 NCES report, private school students do better on average than public school students in tests of reading and math ability. However, that partly reflects the fact that private school students tend to have wealthier, more educated parents.

After adjusting for students’ backgrounds, the differences in test scores are smaller, and in some cases, they disappear entirely. A 2018 study conducted at the University of Virginia found that when you adjust for background, private school students do no better at age 15 than public school students in or out of school.

College Preparation

There’s some evidence that private schools do a better job preparing students for college than public ones. The League of Christian Schools reports that students in both private and parochial schools do significantly better on the SAT than public school students. But that may also reflect differences in social class.

Costs and Benefits of Public School

The vast majority of U.S. children are enrolled in public schools. According to the NCES, public school enrollment in 2016 totaled 47.3 million, 94% of all students.

Like private schools, public schools vary widely across the U.S. Since public schools get most of their funding from local property taxes, the best schools tend to be in expensive areas. These schools can afford to spend more on the best teachers, equipment, and activities. Students in wealthier schools tend to get better grades and do better on tests.

Types of Public Schools

According to the NCES, 93% of America’s public schools are traditional public schools, which get their funding from tax dollars. Their teachers must meet state licensing standards, and their curricula are also regulated.

In most areas, students are assigned to a local public school based on where they live. But some cities, such as Boston, allow parents to choose among several nearby schools for their kids.

About 7% of public schools are charter schools. These schools still get their funding from tax dollars, but they operate outside the local public school system. That gives them more flexibility in choosing their curriculum. Many charter schools focus on a specific type of education, such as science or the arts.

Charter schools are on the rise, according to the NCES. The number of charter schools in the country rose from around 2,000 in 2001 to around 7,000 in 2016. The number of students attending them rose from 400,000 to 3 million.

Many parents choose charter schools for their kids because they think they offer a better education than the local public school. But that’s not the case on average. The average student-teacher ratio in charter schools is 17.8, compared to 16.1 in traditional public schools. And scores on reading and math tests for the two types of schools are nearly identical.

Some areas also have magnet schools. Like charter schools, they typically focus on a specific subject area, such as science, the arts, or language.

But unlike charter schools, magnet schools are part of the school system. They’re run by a school district or a group of districts and are open to all students in that district, no matter where they live. There are 4,340 magnet schools in the country educating over 3.5 million students, according to Magnet Schools of America.

Public School Costs

Although public schools don’t charge tuition, that doesn’t mean they’re cost-free. Parents are responsible for the cost of their kids’ school supplies, which nowadays means not just notebooks and pencils but also a home computer and printer. Students may also need supplies for extracurricular activities, such as sports uniforms or musical instruments.

But all these are costs private school parents must also pay. The most significant cost of sending your kids to a public school is the property taxes you pay to support the school system, though private school parents pay those too, as do those with no children. And even if you rent rather than own a home, you still pay property taxes indirectly. The property owner pays them and folds that cost into the rent amount.

Of course, you have to live somewhere, and you must pay property taxes no matter where that is. But good school districts usually have much more expensive homes. Living in one means you pay more for both property taxes and all the costs of homeownership.

To figure out the cost of a good public school, you must compare the cost of the neighborhoods associated with that school with the cost of nearby neighborhoods in other school districts. An excellent place to start is with Niche, a website that rates and compares U.S. school districts based on factors like test scores, graduation rates, health and safety ratings, and reviews.

Each year, Niche lists the 10 school districts it rates as the best in America. For 2021, the top school district on the list is the Adlai E. Stevenson High School District No. 125 in Lincolnshire, Illinois. According to Trulia, the average home value in that area is $513,369. With a 30-year fixed-rate mortgage at 2.89%, that works out to about $2,115 per month.

In nearby Buffalo Grove, Trulia says the typical home value is only $339,497, or $1,420 per month. That’s a difference of $8,340 per year. The NCES puts the average cost of private school tuition in Illinois at only $6,860, so for a family with one child, private school is cheaper than a top-notch public school.

But for a family with two children, the math looks different. Living in Lincolnshire would cost them only $8,340 extra per year, while private school for both kids would cost $13,720. That makes private school about 65% more expensive.

Of course, that’s only one school district. The relative costs of public and private schools in your area may be different. You can use Niche to find the best schools in your area, then use data from Trulia to see how much it costs to live in those school districts. Compare that to the cost for nearby districts, then compare the difference to the cost of private schools near you.

Public School Benefits

If you have two or more kids, living near a good public school is likely to cost less than paying for private school. But there are even more reasons to choose a public school for your kids.

Smaller Classes for Older Students

While private elementary schools offer smaller class sizes than public schools, the reverse is true for middle and high schools. In 2017-18, private secondary schools averaged 17.8 students per class, according to NCES data. But the NCES shows the average class size was only 16.6 in public middle schools and 16.3 in public high schools.

More Qualified Teachers

Some parents choose private schools because they assume their children will get a better education there. But if you want to ensure your kids have the most qualified teachers, it could make more sense to choose a public school.

According to the NCES, public schools typically pay their teachers more than private schools. That makes it easier for public schools to attract the most qualified teachers.

NCES data show that public schools have fewer teachers with less than three years of experience than private schools. They also have fewer teachers without a college degree and more teachers with graduate degrees.

Diversity

For some parents, one perk of public schools is their diversity. According to NCES, 69% of private school students are white as compared to only half of public school students. Charter schools are the most diverse of all, with 33% white students, 32% Hispanic, 27% Black, and 8% of other races.

This greater diversity extends to the faculty as well. The NCES reports that only 3% of private school teachers are Black as compared to 7% of public school teachers and 10% of teachers in charter schools. Similarly, only 7% of private school teachers are Hispanic as compared to 9% of teachers in public schools and 16% in charter schools.

This greater diversity offers clear benefits for minority students. They’re likely to feel more at home and more supported in an environment where there are both students and teachers who look like them. According to the Center for Black Educator Development, having at least one Black teacher early on lowers a Black student’s chance of dropping out of school by 39%. And the National Coalition on School Diversity (NCSD) reports that students of color perform better in diverse schools than segregated ones and white students perform equally well.

But diversity has advantages for students of all races. According to the NCSD, attending a racially diverse school reduces prejudice and improves communication, critical thinking, and problem-solving skills.

Programs for Students With Disabilities

Children with disabilities, including physical, developmental, and learning disabilities, are often better off in public schools than private ones. Under the Individuals With Disabilities Education Act, public schools must provide education programs for students with disabilities and employ teachers trained to work with those students.

But private schools don’t have to provide for these students. Some schools simply don’t admit students who need certain special learning accommodations, and those that do usually don’t provide any special education programs.

A few private schools cater specifically to children with disabilities, but these cost even more than other private schools. According to Private School Review, tuition for private schools for kids with disabilities typically ranges from $50,000 to $68,000.

Extracurricular Activities

On average, public schools tend to be bigger than private schools. In 2015, the average private school had just 166 students, while the average public school had 526, according to the NCES.

This larger size gives public schools an advantage when it comes to extracurricular activities like sports, theater, debate clubs, and community service programs. A small school, even one with lots of resources, can’t support as many different programs because it just doesn’t have enough students to take part in them.

In general, if your child is interested in a particular sport or activity, a public school is more likely to offer a club or program to support it than a private school. The exception to this rule is private schools that specialize in specific activities, such as art or music.

Advanced Placement

Overall, private schools offer more advanced-placement courses on average than private schools. But that’s only an average. Many private schools don’t offer AP courses at all. A 2017 report by the Center for Public Education says 70% of public high schools offer at least one AP class compared to only 51% of private high schools.

Moreover, private school students who take AP classes don’t always perform better than their peers in public schools. For example, the New Jersey Education Association reported in 2020 that public school students in New Jersey got higher AP scores on average than private school students and were more likely to score high enough to qualify for college credit.

Final Word

When it comes to choosing between private and public schools, there’s no one-size-fits-all answer. Instead, you have to look at the details of your situation.

First, consider the costs. Look at prices for private schools in your area as well as housing costs in neighborhoods with good public schools. Remember that the more kids you have, the more bang you’ll get for your buck with a home in a good public school district.

Then, think about the benefits of both private and public schools. For instance, if you want a religious education for your kids, only a religious private school can provide it. A private school can also provide a lower student-to-teacher ratio and smaller class sizes for younger kids.

But public schools offer the benefits of better education for kids with disabilities, more diversity, and a wider range of extracurricular activities. Weigh the costs and benefits, and make the decision that’s best for you and your kids.

Also, you don’t have to stick with the same type of school for 12 years or more. If your local elementary school is great but the high school isn’t, you can send your kids to public school through grade six before moving them to a private school. That gives you the best of both worlds and saves you money on tuition as well.

Source: moneycrashers.com

August 24, 2021

Paul Merriman 4 Fund Portfolio – Guide to Asset Allocations, Pros & Cons

Paul Merriman is something of a legend on Wall Street. Not only was he the founder of a brokerage and investment advisory firm bearing his name, since his retirement he has continued to contribute to the market news and analysis site MarketWatch, acting as an educator to the financial industry.

Moreover, the famed financial advisor established the Merriman Financial Education Foundation in 2014, an organization dedicated to providing quality financial education to investors. He’s also the author of several books.

It only makes sense that investors would be interested in an investment portfolio Merriman designed, and one of his most popular is the 4 Fund Portfolio.

What Is the Paul Merriman 4 Fund Portfolio?

Merriman’s 4 Fund Portfolio was meant to provide the ultimate level of simplicity, built as a 4-fund combo, with each fund in the portfolio receiving equal allocation at 25%. Due to the buy-and-hold nature of the portfolio, it’s not only simple to set up, but extremely easy to manage.

Interestingly, the strategy is a 100% equity portfolio, which doesn’t take asset class diversification into account. As a result, it comes with elevated risk because there are no safe havens to limit the pain caused by a market correction or bear market.

Nonetheless, the portfolio is known to consistently outperform the S&P 500 by giving significant weight to investments that offer a significant risk premium (covered in more detail later). While it’s definitely not a one-size-fits-all portfolio strategy, it is an attractive option for younger investors and those who have a high tolerance for risk.

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Portfolio Asset Allocation

As mentioned above, the portfolio’s asset allocation is about as easy as it gets, with equal investments in four highly diversified funds. Here’s how the allocation breaks down:

25% in the S&P 500. The first quarter of the portfolio is geared toward a large-cap tilted blend of U.S. stocks. One of the best ways to get this exposure is by investing in an S&P 500 index fund because it covers well over half of the United States’ total market cap.
25% in Large-Cap Value. The portfolio calls for a fund that provides exposure to large-cap value stocks, ditching the concept of investing in large-cap growth and focusing on where long-term returns will likely be larger.
25% in Small-Cap Value. The portfolio also contains a heavy allocation to small-cap value stocks.
25% in Small-Cap Blend. The portfolio also gives exposure to small-cap blend stocks. This includes smaller stocks from various sectors that offer a mix growth, value, or income characteristics.

The Investment Thesis Behind the Portfolio

As with the Alexander Green Gone Fishin’ Portfolio, this portfolio is centered around factor investing, also simply known as factoring. Factoring takes index investing, or indexing, to the next level.

Instead of simply investing in a group of investment-grade funds that track specific market indexes, factor investors look for factors that pay a risk premium — higher potential gains in exchange for a higher level of risk.

There’s only one asset included in the 4 Fund Portfolio that doesn’t fall in line with factors that pay risk premiums: the S&P 500 index fund. This fund offers an important level of stability considering the lack of fixed-income investments in the strategy. Here are the factors behind the rest of the portfolio:

Large-Cap Value (The Value Factor)

The larger the company you invest in, the more stable it is likely to be, but that has nothing to do with the risk premium. The risk premium here is in the value factor.

Historically, large-cap value stocks are known to outperform large-cap growth stocks, and often by a wide margin. By avoiding the allure of growth stocks and investing in their value counterparts, you may be taking on the risk of investing in a company that’s undervalued for a reason, but this is offset by the potential that the undervaluation is coincidental and that significant gains are ahead.

Small-Cap Value (The Small-Cap and Value Factors)

Smaller companies aren’t quite as stable as larger companies, increasing the risk associated with investing in them. Investing in small companies with value characteristics comes with two key factors that produce risk premiums.

While larger, blue chip companies offer stability, they’ve already addressed a large portion of their audience, often being household names. Small companies typically haven’t done so, setting up for a long runway of growth ahead. So, that growth becomes a premium.

Also, as with their larger counterparts, small-cap companies that display value characteristics have historically outperformed small-cap growth companies. There’s an added premium in focusing on the value side of small-cap investing.

Small-Cap Blend (The Small-Cap Factor)

As described above, small companies may be more volatile, but they often have much more of a runway and larger opportunities for growth than larger companies. As a result, investing in small-caps pays a risk premium, generally resulting in more potential for gains than investing in larger companies.

Pros and Cons of the 4 Fund Portfolio

There’s no such thing as a portfolio that’s perfect for everyone. Any prebuilt portfolio comes with pros and cons to consider, and this particular portfolio is no different. The most exciting benefits and most significant drawbacks are as follows:

Portfolio Pros

Merriman isn’t just an expert, he’s an investing mogul. Over the years, he has reached a level of success in the market only matched by a minuscule percentage of investors. It’s only natural that following a portfolio of his design comes with its perks. Some of the most significant advantages include:

Stellar Past Performance. Throughout history, a portfolio following Merriman’s strategy would have been a top performer all the way back to 1928. In the 91-year period from 1928 to 2019, the portfolio generated an average annual return of 11.8%, while the S&P 500’s return averaged at 9.9%. Who doesn’t like higher returns?
Simplicity. This particular portfolio is one of the laziest in the “lazy portfolio” category. With only four assets included in the strategy, all of which given equal weight, there’s not much work to set up or maintain, making this a great option for the busy investor.
Small-Cap-Tilted. Investors are often fans of portfolios that have a tilt toward small-cap assets. Once again, this points to the strong return potential of the portfolio because small companies have a long history of outperforming large companies.
Value-Tilted. The portfolio also tilts heavily toward stocks with value characteristics. This also increases the potential returns of the portfolio because value stocks have a long history of outperforming their growth-centric counterparts.

Portfolio Cons

Although there are plenty of reasons to be excited about this portfolio strategy, there are some serious drawbacks that should be considered before employing it. Some of the most important include:

A Single Asset Class. The portfolio involves investing in four different types of exchange-traded funds (ETFs), all focused on investments in equities. Most financial advisors will tell you that a portfolio made up of 100% equities doesn’t represent sound investing because it opens the door to substantial volatility risk.
Risk Added to Risk. Factor investing is exciting because investors accept risk factors in exchange for a risk premium, or the potential to generate returns that outpace the market averages. On the other hand, the portfolio adds risk onto risk by investing in high-risk, high-return equities while completely avoiding safe-haven investments that could balance things out a bit.
No International Holdings. The fact that Merriman left international stocks out of the equation is surprising. Emerging markets often outperform the domestic market, creating further growth potential. However, this portfolio doesn’t allocate a penny to international stocks.

Who Should Use This Portfolio Strategy?

If you’re looking for a one-size-fits-all portfolio strategy, you’ll be looking for quite a while, because there simply isn’t one. Every investor has a unique tolerance for risk, unique goals, and a specific time horizon.

While most investors can be categorized based on risk tolerance and their methods of working in the market, there’s no way to address the needs of everyone with a single portfolio strategy.

In the case of the 4 Fund strategy, it was designed for a very specific set of investors and is far too risky for most. The perfect candidate to use this portfolio strategy is:

Young. Investing experts often point to the fact that younger investors should be more willing to accept higher levels of risk, as long as the potential payoff is worth it. After all, they have their whole lives to recover should a correction or bear market take place. On the other hand, investors nearing retirement simply can’t absorb large drawdowns and should avoid this strategy at all costs.
Risk-Tolerant. There are few investing experts who would suggest the average investor of any age should consider a portfolio made 100% of equities. That’s a dangerous notion, and one only the most risk-tolerant investors should consider.
Busy. Even if you’re young with a healthy appetite for risk, this might not be the best option for you. Simplicity often comes at a cost, and taking more time to find even better-performing assets based on the level of risk in the portfolio is something worth considering. However, if you’re a busy investor who doesn’t have time to adequately research opportunities and maintain balance in a more complex portfolio, this may be the perfect fit.

How to Duplicate the 4 Fund Portfolio

If you’d like to give the portfolio a try, duplicating it is easy through the use of ETFs with low expense ratios. Also, even if the portfolio strategy isn’t a good fit for your investing style, you may be able to follow along the same lines of the strategy while making simple adjustments so it fits your needs.

Here are a few different ways to go about building your portfolio based on this strategy:

The Traditional 4 Fund Build

The portfolio can be duplicated relatively quickly using a group of four low-cost funds. Here’s how it’s done:

25% in Vanguard S&P 500 ETF (VOO). The VOO fund offers exposure to a large-cap blend consisting of 500 of the largest companies in the U.S. by market cap. With an expense ratio of just 0.03%, it’s also one of the lowest-cost funds on the market.
25% in Invesco S&P 500 Pure Value ETF (RPV). The RPV fund offers a diversified portfolio of large-cap value investments. To provide this exposure, the fund invests in S&P 500-listed companies that display value characteristics.
25% in Vanguard Small-Cap Index Fund ETF (VB). The VB fund offers diversified exposure to domestic small-cap stocks that display value characteristics. These stocks are spread across a wide range of sectors and regions within the U.S.
25% in Vanguard S&P Small-Cap 600 Value Index Fund ETF (VIOV). The VIOV fund gives investors access to a highly diversified group of small-cap domestic stocks that come with value characteristics. Like all other funds on this list, VIOV is heavily diversified across sectors and regions within the U.S.

Pro tip: You don’t have to build this portfolio in your brokerage account yourself. If you use M1 Finance, you can simply load the Paul Merriman’s 4 Fund Portfolio prebuilt expert pie to gain access to a curated allocation of securities that follows this strategy.

The 4 Fund Portfolio With an International Twist

One of the biggest problems some investors have with this portfolio strategy is the lack of international stocks. Historically, international stocks — particularly those in emerging markets — have performed overwhelmingly well, and avoiding investing in them is akin to leaving money on the table.

If you’d like to add a little international flavor to your portfolio, doing so is quite simple, but it will require expanding the fund count from four to six. Here’s how it works:

The first thing you’ll need to do is cut your investments in the VB and VOO funds in half, allocating 12.5% of your portfolio to these. Then add the two following international funds to your portfolio:

12.5% in iShares MSCI Emerging Markets Small-Cap ETF (EEMS). With the EEMS fund, you can add international exposure that’s specifically focused on small-cap companies in emerging markets. With small-caps traditionally outperforming their large-cap peers and emerging markets known for generating compelling opportunities, this is a great way to gain exposure to the best of both worlds.
12.5% in Vanguard Total International Stock Index Fund ETF (VXUS). The VXUS fund includes a diversified list of international stocks in both emerging and developed markets. The fund invests in a wide range of market caps, sectors, and regions, giving you widespread exposure to international markets.

Safe(r) Versions of the 4 Fund Portfolio

The traditional portfolio leaves you exposed to significant risk due to a lack of fixed-income allocation. To protect yourself from bear markets and corrections, it’s relatively easy to build a safer portfolio using the same concepts, but mixing in one extra fund to make it a five-fund portfolio.

To do so, reduce all holdings in the portfolio to 20%, which will result in 20% left for fixed-income investing. This 20% allocation can be invested in the Vanguard Long Term Treasury Index Fund ETF (VGLT).

The assets in the fund are protected by the full faith and security of the U.S. government. At the same time, the long-term nature of the Treasury debt securities the portfolio invests in makes them even more stable. These factors are important because 20% holdings in fixed-income is still a relatively light allocation, so it should be invested in the safest of safe-haven assets.

Another option for those looking to invest in a safer portfolio is to consider the Paul Merriman Ultimate Buy-and-Hold Portfolio, developed by the same financial expert behind the 4 Fund Portfolio strategy but inclusive of safer investment vehicles.

Maintain Balance in Your Portfolio

As with any investment portfolio, it’s important to maintain balance with this one.

Prebuilt portfolios are designed to balance risk by choosing assets for specific characteristics during specific market conditions. As time passes, the prices of every asset in your portfolio will change, some faster than others. As a result, equal exposure among four assets will fall out of line, with some assets over-allocated and some receiving too few of your investment dollars.

To combat this, investors should rebalance their portfolios regularly. As a lazy portfolio, this investment option doesn’t require weekly or monthly rebalancing, but it is important to take time to do so on a quarterly basis.

Final Word

While the 4 Fund Portfolio investing strategy is exciting, it’s also inherently risky. As a result, only young investors with a healthy appetite for risk should follow the portfolio in the traditional sense.

On the other hand, due to the limited number of funds involved in the portfolio, it’s very easy to customize to fit your needs. By mixing in a fixed-income asset or two, you can follow the same principles of the portfolio without exposing yourself to significant amounts of volatility.

As is always the case, before making an investment, it’s important to do your research and get an understanding of just what you’re buying and what it might mean for your portfolio.

Source: moneycrashers.com

August 23, 2021

NinjaTrader Review – The Ideal Platform for Active Technical Traders?

Financial market traders are always looking for a way to get a leg up on the competition in the stock market, whether that be better charting capabilities, more technical indicators, or faster ways to place trades.

Founded in 2003 with its headquarters in Denver, Colorado, NinjaTrader is an online trading platform that hits every one of these nails on the head. Designed for active traders who are interested in trading futures and forex, the platform is an intuitive trading system that gives its users an advantage in the battle between the bears and the bulls.

For those interested in trading stocks, options, and other assets, the platform has partnered with other popular online brokers including TD Ameritrade and Interactive Brokers, but you will need to connect your third-party brokerage account to make these trades.

Most of the features, including charting, active analysis, and live trading are free once you open a funded account. If you want to take advantage of the trading simulator, access is free even before you fund your account.

The platform also offers premium features including backtesting and automated trading for a monthly fee of $60 or a lifetime fee of $1,099.

Users with a lifetime subscription also receive access to Order Flow+, a service that gives you the ability to analyze trading activity using order flow. Order flow points to the number of orders waiting to be filled at a specific price level. This information gives traders powerful, real-time insight into where there’s resistance or support for the price of an asset.

Key Features

As a platform designed for active day traders, NinjaTrader is packed with features designed to help you simplify the process of trading while amplifying your profits. Some of the most impressive features that help to accomplish this goal include:

A Platform With Brokerage Options

The company is best known for its intuitive platform for active traders, but that’s not the only offering brought to the table here. The company also offers NinjaTrader Brokerage Services. When using the platform and accompanying in-house brokerage, you’ll gain access to the forex and futures trading markets.

If you’re not interested in futures trading or forex trading, you won’t be left in the dark. NinjaTrader has partnered with several brokers to make trading in equities possible, with the two most notable being TD Ameritrade and Interactive Brokers.

Moreover, forex and futures traders have the option either to use the company’s in-house brokerage or to work with third-party brokers like City Index and Forex.com.

When working with a third-party brokerage, your money will be held with the broker of your choice. When you make trades through the NinjaTrader platform, those trades will be executed within your linked third-party brokerage account.

Customizable Charting

Anyone who’s been successful at day trading will tell you that technical analysis is the foundation for any solid strategy. After all, short-term trading is based on the notion that the market repeats itself. By performing detailed technical market analysis, you’ll be able to find triggers that generally point to movement in one direction or another in the future.

If you’re going to take part in these types of activities, whether you’re trading stocks, forex, commodities, or any other financial assets, it’s important that you have access to tools that will increase your success rate with your trades.

When using the NinjaTrader platform, you’ll have access to some of the most intuitive trading tools available today. Using these tools, you’ll likely enjoy the user-friendly functionality, giving you the ability to change colors, add indicators, and add trend lines. The platform also offers drawing tools that give you the ability to define trend lines and entrance and exit opportunities.

Trading Data and Add-Ons

The data you use when trading can make the difference between gains and losses — a fact that’s especially true when it comes to active day trading. Because NinjaTrader was specifically designed for active traders, it only makes sense that you’ll have access to top-notch technology and data when using the platform.

NinjaTrader gives its traders access to multiple data providers, with CQG Continuum being the primary provider. If you’re more comfortable using Rithmic as your data provider, you’ll be delighted to know that Rithmic is supported as well.

When using the platform, you’ll automatically have access to the general data needed for successful trading. However, if you’d like to take advantage of full market depth data, you’ll be required to pay small additional fees.

For example, if you’d like full market depth data on the Chicago Mercantile Exchange (CME), you’ll pay $7 per month for the additional information. You can also decide to go with the CME bundle, which includes market data from multiple commodities exchanges including CME, CBOT, NYMEX, and COMEX for just $21 per month.

This data will prove to be overwhelmingly valuable, especially considering the fact that it can be used in conjunction with the Market Replay feature offered by NinjaTrader. This feature gives you the ability to play, pause, and rewind historical data, which enables backtesting and other trade-related research.

Order Flow+

Order Flow+ is only available to NinjaTrader members with lifetime licenses. However, the feature is an extremely compelling reason to sign up for life.

Order Flow+ is add-on trading software that makes it possible to analyze trading activity using the order flow surrounding the financial instruments you’re interested in. The feature includes order flow data, volume bars, and market depth data.

Order flow data is the rawest form of data you can access, providing a combination of actual contracts that have been bought and sold at a certain price and time and the interest of the buyers and sellers.

This is helpful because buyers and sellers ultimately are the reason for moving the market. When there are more buyers jumping in, the price of the financial instrument rises, and when more sellers are getting involved, prices fall.

Order Flow+ gives you the ability to quickly analyze this data, giving you the upper hand by providing information as to whether buyers or sellers are more interested in the asset you’re trading at the time of your trade.

Automated Trading

Due to advancements in technology, automation is becoming part of the daily routine for most Americans. Being one of the pioneers of trading technology, it only makes sense that NinjaTrader is bringing automation to the trading process.

Through the trading platform, you’ll be able to semi-automate or fully automate your trading strategies. You can also work with a NinjaScript programmer to design your own technical indicators and automated strategies.

However, it is worth mentioning that you must be a premium member in order to take advantage of the automated trading offered through the platform.

Trade Simulation

When you get started as a trader, you’ll find that some strategies perform better than others. Moreover, beginners are generally turned off by the risk associated with short-term trades.

The good news is that you don’t have to accept that risk before you learn the ropes.

One way to greatly reduce the risk you take on when you trade is to practice your strategies in a simulated trading environment before using them with real money at stake. By doing so, you’ll be able to pinpoint the most successful strategies and tweak your personal trading process to expand your profitability.

With the demo account offered by NinjaTrader, you’ll be able to practice trading in real time without risking your hard-earned money until you feel comfortable that your strategies are working.

Advantages

NinjaTrader has become a leading platform and brokerage with well over a decade of exceptional service to its customers. Some of the most significant advantages you’ll enjoy when using the platform include:

Technology. Through the years, NinjaTrader has proven its ability to incorporate market-leading technology in the trading process, leading to outsize returns for those who take advantage of the platform. The charting and trading tools on the platform are second to none, and if history is any indication, the company will continue to innovate in order to hold its position as a leader in trading technology.
Third-Party Tools. With NinjaTrader’s NinjaScript, third-party developers are able to create apps and add-ons to improve the trading process for all. As a result of these capabilities, plenty of third-party developers have created compelling add-on offerings. When you use the platform, you’ll have access to thousands of third-party add-ons developed to help you achieve higher levels of profitability as you trade.
Educational Materials. NinjaTrader offers a long list of educational materials designed to turn even the most novice traders into pros. Through the platform, you’ll have access to training articles and tutorials, daily webinars, and forums, all designed to give you the knowledge it takes to become a highly successful trader.
Simulated Trading. Along the lines of education, trading simulation is yet another compelling tool traders have at their disposal using the NinjaTrader platform. Simulated trading benefits beginners, intermediate traders, and even experts by giving them a way to test, tweak, and perfect their strategy before risking their money in the market.
Mobile App. NinjaTrader 8 and the legacy version, NinjaTrader7, are now available as a downloadable application on iPhone, Android, Mac, and Windows. The mobile app version of the platform is just as intuitive and user-friendly as you would expect if you’ve worked with the company’s desktop platform.
Quality Customer Support. It’s important that you trust any financial service company you work with and that the company offers quality customer support. After all, when you have a question about your money, you want to make sure someone knowledgeable will be there to answer it. With NinjaTrader, you’ll have access to a world-class customer support team around the clock, whether you prefer to chat online or on the phone. The company also offers a help guide packed with answers to some of the most common questions traders have when working with a new platform.

Disadvantages

There are plenty of reasons to be excited about the NinjaTrader brokerage and platform. At the same time, every rose has its thorns, and NinjaTrader is no exception. Some of the most significant disadvantages to consider before getting involved include:

Little Fundamental Data. The NinjaTrader platform was developed as an intuitive platform for those taking part in the fast-paced world of active trading. Trading is a technical process that leaves little room for interpreting the fundamental data the average long-term investor would want to use when making investment decisions. Unfortunately, as a platform designed for active traders, there is little to nothing on the platform by way of fundamental data. If you use fundamental analysis in your trading process, you’ll need to access that data through a third party.
Free Version Limitations. When using the free version of the platform, you’ll have access to compelling charting capabilities and the trading simulator. However, you’ll be missing out on Order Flow+, automated trading, and more detailed trading data if you don’t purchase a monthly or lifetime license.
The NinjaTrader Brokerage Doesn’t Offer Access to Stocks. If you’re going to be trading forex or futures, the setup is a breeze because the NinjaTrader brokerage offers access to these assets. However, if you’re interested in trading stocks and other equities, or in trading options, you’ll have to take additional steps to get started by connecting the platform to a supported brokerage that offers the assets you’re interested in.

Final Word

As with most other top-notch financial services, NinjaTrader was designed for a specific audience and has done an amazing job at tailoring its platform accordingly. Geared toward those who are most active in the financial markets, the service offers access to some of the best technical tools in any trader’s toolbox.

At the same time, the company has made its platform somewhat open-source, inviting third-party developers to produce more tools that are ultimately designed to lead to increased profits for those who use them. Through this approach, NinjaTrader has grown to offer not only some of the most robust tools available on an in-house basis, but also a library of thousands of tools sourced throughout the trading community.

However, if you’re more interested in investing money in the stock market over the long term, you won’t fit into the company’s target audience. Due to its focus on active traders and providing all the tools necessary for profits in that space, the platform neglects many of the needs of buy-and-hold investors looking to stick with their investments for the long haul.

Nonetheless, if you’re looking for a platform that offers everything you’ll need to be successful as a short-term trader, NinjaTrader is one of the best online today.

Source: moneycrashers.com

August 23, 2021

Why You Should Save For Your Retirement Before For Your Kidsâ College

Choosing where to put your savings is a question that does not have a simple answer that works for everyone. Deciding how much of your discretionary dollars to put towards retirement savings, college expenses, life insurance, an emergency fund and other buckets of money will vary depending on your unique financial situation. Here are a few arguments for prioritizing saving for retirement ahead of saving for your kids’ college expenses.

Saving as a part of your budget

The first thing that you will want to do is make sure that you’ve got a budget for your household expenses. Your budget can be simple or complex, but it’s important to have a written recording of your cash flow. Living within your means (spending less than you earn) is the number one indicator for a healthy financial situation.

Another great tip is to pay yourself first. Without a written budget, you tend to just save whatever money is leftover at the end of the month. But somehow, no matter how much money you make or how much you try to cut down on spending, there never seems to be very much left at the end of the month. If this has happened to you, transfer a set amount to a separate account right when you get paid. Many have found that when they do this, they have sufficient money to pay their expenses and are able to save more.

Saving for retirement

In addition to budgeting for your ongoing expenses, it’s a good idea to start saving for your future. Depending on where you are, you may have various medium and long-term savings goals. One common goal is saving for future retirement.

There are a variety of different vehicles for saving for retirement. With the decline in employers that offer defined-benefit pensions, a 401(k) plan is a common way to save for retirement. Many employers offer 401(k) plans, and many also offer matching funds as an incentive to contribute to them. Traditional and Roth Individual Retirement Accounts (IRAs) are another great way to save for retirement.

Saving for college

If you have children, you may also be concerned with the rising cost of higher education, and wanting to save for college. Higher education costs are currently rising higher than the rate of inflation, and more and more jobs require higher education. It’s only natural that parents want to do everything they can to help make college more manageable for their kids.

Like with retirement, there are a variety of different ways to save for college. One popular way is through what is called a 529 plan. States set these up as a way to save for college. Generally, you don’t have to be a resident of the state in question to participate in its 529 plan. Although it’s common for states to offer state tax breaks for contributing to their own 529 plan.

Another way to save for educational or other expenses is through UGMA/UTMA accounts. UGMA stands for the Uniform Gifts to Minors Act and UTMA stands for Uniform Transfers to Minors Act. The person that sets up the account (typically but not always a parent) is considered a “custodian.” They may transfer money into the account to benefit the minor, but the money is managed by the custodian.

Why you should save for your retirement first

While the exact way that you allocate your savings depends on your specific situation, here are a few suggestions for why you should save for your retirement first.

The main reason is flexibility — you can always reallocate retirement money towards higher education. If you’ve contributed to a Roth IRA, you can withdraw your contributions tax and penalty-free at any time. While many early withdrawals receive a penalty, qualified education expenses are an exception. On the contrary, you can’t easily transfer money in 529 plans to retirement savings if you end up not needing it for educational expenses.

You find another reason when considering the alternatives. If you fully save for your own retirement but don’t save much for your children’s higher education expenses, there are several different options (loans, grants, scholarships) that may be available to help pay for college. It’s also possible that federal legislation may be passed that reduces the cost for some forms of higher education.

On the other hand, if you save and pay for a significant portion of your children’s college expenses, but skimp on your own retirement savings, there will not be as many options available for you. Relying on Social Security alone is unlikely to be sufficient for many people’s retirement. Hopefully your kids got a great college education as they may be providing a good chunk of your support in your retirement!

While every situation is different, these can make for a compelling argument to focus on your own retirement saving first, and only THEN start saving for college expenses.

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Source: mint.intuit.com

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