A reverse mortgage may help older Americans who find they need more money in retirement. It’s common for inflation and rising medical costs to be issues. A reverse mortgage allows them to convert some of their home’s equity into cash, which can benefit their financial situation.
Protections established over the past few years by the U.S. Department of Housing and Urban Development (HUD) focus on lowering the risk previously associated with reverse mortgages. What’s more, the federal and state governments have taken aim at deceptive marketing practices that can minimize the complex aspects of reverse mortgage agreements.
That said, it’s wise to proceed with caution. There are still considerable cons to reverse mortgages, and borrowers may be unaware of the finer points. One important fact: It is possible to lose one’s home if you don’t comply with all the loan terms. Take a closer look at this topic here.
Why Do People Choose a Reverse Mortgage?
A reverse mortgage allows qualifying homeowners age 62 and older to convert part of the equity they’ve built up in their primary residence into money they can use to pay off their existing mortgage or for any other expenses that come up in retirement (from health-care costs to home repairs).
The big selling point for reverse mortgages is that the loan usually doesn’t have to be paid back until the last borrower, co-borrower, or eligible non-borrowing spouse dies, moves away, or sells the home. And when it is time to repay the loan, neither the borrower nor any of the borrower’s heirs will be expected to pay back more than the home is worth.
Main Types of Reverse Mortgages
There are three basic types of reverse mortgages. The most common is a home equity conversion mortgage (HECM), which is the only reverse mortgage insured by the U.S. government and is available only through an FHA-approved lender. An HECM can be used for anything, but there are limits on how much a homeowner can borrow.
There are also proprietary reverse mortgages, which are private loans that may have fewer restrictions than HECMs — including how much a homeowner can borrow.
And there are single-purpose reverse mortgages, which are typically offered by nonprofit organizations or state or local government agencies that may limit how the funds can be used. Most of the time, when someone refers to a reverse mortgage, though, they’re talking about an HECM.
Reverse Mortgage Terms to Know
There are safeguards in the reverse mortgage process that protect borrowers, but there are also loan terms borrowers are required to uphold or risk defaulting and potentially triggering a mortgage foreclosure. They include:
Staying Current With Ongoing Costs
Borrowers must stay up to date on property taxes, homeowners insurance, homeowners association fees, and other costs, or they could risk defaulting on the loan. An assessment of a borrower’s ability to pay for those ongoing expenses is part of the reverse mortgage application process, and if it looks as though money might be tight, a lender may require a borrower to set up a reserve fund, called a “set-aside,” for those costs. (In this way, it’s akin to an emergency fund, which is there to cover expenses if needed.)
Maintaining Full-Time Residency
Borrowers (and eligible non-borrowers) must use the home as their primary residence — the home they occupy for most of the year. If they move out of the house or leave the home for more than six months, or receive care at a nursing home or assisted living facility for more than 12 consecutive months, it could result in the lender calling the loan due and payable.
The lender also may choose to accelerate the loan if the borrower sells the home or transfers the title to someone else, or if the borrower dies and the property isn’t the principal residence of a surviving borrower.
Keeping the Home in Good Repair
Because the home is collateral and may have to be sold to repay the loan, lenders may require borrowers to do basic maintenance that will help the property keep its value (e.g., repairing a leaky roof or fixing a problem with the electrical system). If an inspector feels the home is not being properly maintained, the lender could take action.
What Happens If a Reverse Mortgage Borrower Defaults?
If the homeowners default, the first thing that could happen is that future loan payments may be stopped. And if the problem isn’t corrected within the lender’s stated timeline, the loan may become due and payable, which means the money the lender has distributed to the borrower, plus any interest and fees that have accrued, must be repaid. In that case, the borrower typically has four options:
• They can pay the balance in full and keep their home.
• They can sell the home for the lesser of the balance or 95% of the appraised value and use the proceeds to pay off the loan.
• They can sign the property back to the lender.
• They can allow the lender to begin foreclosure.
No matter what the homeowners decide to do, the process could take months to complete. HECM lenders may offer borrowers additional time to fix the problem that put them into default, or the borrowers may qualify for extensions or a repayment plan.
But in the meantime, there could be other implications — if the homeowners are no longer getting money they need to pay their bills or if the lender reports the default to credit monitoring agencies — that could affect the homeowners’ credit scores.
A Few Alternatives to Consider
The advertisements some lenders use to sell their reverse mortgages can be convincing, and some seniors may see these loans as a convenient way to get some extra cash or as a much-needed lifeline.
But, as with any financial decision, there are advantages and disadvantages — and alternatives — to be considered. There are other ways homeowners may be able to get help that could be less complicated and less limiting than a reverse mortgage.
Here are a few options:
• Borrowers may wish to tap into their home’s equity with a traditional home equity loan or home equity line of credit. They’ll have to make monthly payments, and their income and credit history will be considered when they apply, but the terms may be more flexible and the overall cost may be lower than a reverse mortgage. Because the home is used as collateral, there’s still a risk of foreclosure.
• Low interest-rate personal loans might be another option for homeowners who qualify for a competitive interest rate based on their income and credit. Borrowers who don’t have much equity in their home may choose to look into this type of loan, which is unsecured and is paid out in a lump sum. While foreclosure is not a worry with a personal loan, there still may be consequences to the borrower’s credit rating if they don’t uphold the loan terms.
• Borrowers who are struggling to keep up with their bills in retirement may find that refinancing a mortgage with a new, lower-cost mortgage might be an option to help them lower their monthly payments and stay on track with their budget.
Or, if they need extra cash right away and can get a low enough interest rate, they may want to look into a “cash-out refinance,” which would involve taking out a new loan for a larger amount based on the equity they’ve built up during the years they’ve lived in the home.
Unfortunately, no matter which type of loan homeowners might choose, there could be risks.
The government requires a counseling session for reverse mortgage borrowers for a reason: They’re complex, and it can be helpful to have someone cover all the rules and costs involved.
Homeowners also may want to pay a financial advisor and tap their expertise about what type of loan, if any, fits with their needs, goals, and where they are in their retirement.
Though reverse mortgages are available to homeowners starting at age 62, borrowers who expect to have a long retirement may choose to wait until they’re older to tap into their home equity, so they don’t risk running out of money in their later years.
How SoFi Can Help
For many retirees, the equity they have in their home is their biggest asset. Armed with knowledge about the pros and cons of each type of loan and a long-term plan, borrowers can better protect that asset and their financial security.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% – 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It’s online, with access to one-on-one help.
SoFi Mortgages: Simple, smart, and so affordable.
SoFi Mortgages Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.
SoFi Loan Products SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
*SoFi requires PMI for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Minimum down payment varies by loan type.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Investors who chafe at having to take required minimum distributions (RMDs) each year have a new tool to help them reduce the tax bite of these withdrawals – and provide retirement income for life.
A financial advisor can help you manage your RMDs and tax liability in retirement.
Among the many provisions in the new SECURE 2.0 Act is an option that allows IRA holders to combine qualified charitable distributions (QCDs) with a little-known vehicle called a charitable gift annuity. The result? Your charitable donations can help fund your lifestyle in retirement. Here’s how it works.
How to Turn a QCD into Lifetime Income
Anyone turning 73 this year is required to take a taxable required minimum distribution (RMD) from their IRA (the rules and ages vary according to birth dates). Someone turning 73 with an IRA worth $500,000 at the end of 2022 would need to withdraw $18,868 by the end of the year. That money is taxed as ordinary income.
Contributions to qualified charities can be made directly from an IRA for up to $100,000 each year, with that money being tax-exempt and counting toward the annual RMD amount. As of Jan. 1, retirees ages 70 1/2 or older can donate up to $50,000 of that $100,000 in one single tax year only to a charitable gift annuity.
In exchange for the donation, the charity makes a fixed annual annuity payment to the donor for the rest of their life or for the lifetime of the donor and donor’s spouse. The payment must be 5% of the donation or more. Most charities set the annuity payouts using the American Council on Gift Annuities suggested rates, according to The Wall Street Journal.
A recent article uses the example of a 70-something retiree who donated $25,000 from her IRA to her alma mater, which immediately reduced the taxable income from her required minimum distribution (RMD) by that amount. By directing the money to her college’s charitable gift annuity program, she has a fixed 7% annuity that will pay her $1,750 a year for the rest of her life. If she lives another 15 years, she’ll receive more from the annuity than the amount of her original gift.
Taxes and Other Considerations
While this strategy can help lower your tax bill in a given year, keep in mind that the annuity payments are considered ordinary income, so you’ll owe taxes on the money. Additionally, any money left over after the death of the donors goes to the charity.
While the $50,000 contribution must be made in a single year, it can be broken up into smaller amounts and distributed to different charities that offer charitable gift annuities.
However, both the $100,000 charitable donation limit and the $50,000 charitable gift annuity limit adjust for inflation after 2023. The annuity is backed by the assets of the charity.
Gift annuities allow donors to make contributions to charities that they otherwise might not be able to afford if they weren’t going to receive the annuity payments in return, since it provides some income for the rest of the donor’s life.
Bottom Line
Recent changes to the laws surrounding required minimum distributions (RMDs) from IRAs and other tax-deferred accounts have given retirees a bit more flexibility about how to handle their withdrawals and the resulting taxes. Using RMD money to make a charitable donation reduces the amount of taxable income from the distribution. Making a donation from an IRA to a charity offering a gift annuity provides some lifetime income for donors who might otherwise not be able to afford to make a donation.
Retirement Planning Tips
Tax planning is an essential part of determining how to save and invest for retirement, and becomes even more important when you start taking withdrawals. A financial advisor can help you answer your questions about RMDs and taxes. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Social Security is a key component of most retirees’ income plans. Knowing how much you can expect to receive is vital to creating a financial plan in retirement that meets your needs. SmartAsset’s Social Security calculator can estimate how much your benefits will be and help you determine when is the best time to claim them.
Back in 2013 my friends and I graduated, got jobs, and strangely, began seeing positive numbers in our bank accounts (student loans notwithstanding).
To protect and organize this novel and exciting resource, the savvy among us downloaded budgeting apps. Others budgeted in Excel, and the rest (including me) spent blindly, dreading our monthly statement like a jury summons.
Point is, seven years ago there were plenty of options for virtually managing your budget. Today, there are perhaps too many. There are hundreds of apps for climbing out of debt, budgeting between spouses, investing a percentage of your savings, even budgeting as a freelancer.
With overwhelming options and data breaches still making headlines, is it time to return to good ol’ budget spreadsheet?
What’s Ahead:
Here’s why I budget using spreadsheets
For six months in 2015, I tried everything I could to start meditating. I knew the practice would be challenging, so I tried to flatten my learning curve with apps, books, and by carefully studying the esoteric ramblings of gurus on YouTube.
Nothing worked. I couldn’t close my eyes for six minutes without snatching up my phone like Bilbo Baggins to resume my consumerist coma. It wasn’t until I visited a Buddhist monastery, and meditated for 45 minutes straight with no apps, music, or guidance, that I finally mastered the practice.
I found budgeting to be the same way. I knew it wouldn’t be fun, so I spent weeks trying dozens of different budgeting apps. They sent me reminders, gold stars, and even performed many essential tasks for me.
I wasn’t learning. I was looking for the path of least resistance.
But critical life skills are sharpened through resistance. Budgeting in a spreadsheet is like meditating without music or lifting free weights instead of using machines. You’ll sweat more, but you’ll grow faster. If sweating isn’t your thing, using apps like Mint to track your finances is a great alternative to budgeting in spreadsheets.
As illustrated in the “Pros..” section below, there are plenty of objective advantages to budgeting in a spreadsheet versus an app. Spreadsheets are extremely reliable, built upon the most simple, stable, and well-supported software in the world. Spreadsheets won’t crash or hamper you with surprise “security updates.” They’re effortless to share, and there’s a free template for virtually every conceivable scenario. Best of all, spreadsheets are infallibly secure. While many apps will store your most compromising information using security that’s failed before, there’s nothing a virtual villain can do with your spreadsheet in plain view.
But it’s the subjective psychological advantages of spreadsheet budgets that I believe give them the edge. The security and stability lower stress. The raw journaling aspect offers moments of deep introspection. Finally, the act of learning a new skill in the most organic way offers rewards and nourishment.
My top three budgeting tips
If you’re reading this article, you’re either looking to start budgeting or considering changing up your current method. In either case, you deserve a high-five because budgeting isn’t easy.
There’s a psychological weight to knowing precisely how much money you do (or don’t) have at all times. But trust me, it’s much less burdensome than the pervasive anxiety of not knowing and making poor financial decisions as a result. Plus, budgeting helps you save more, invest more, and makes you a better partner.
Whether you’re just getting started or looking to refine your process, here are my top three budgeting tips:
Be as honest with your budget as you are with your doctor
What do your doctor, your therapist, and your budget all have in common? They all help you solve big problems, but they can only help if you’re honest with them.
It can be extremely hard to admit to yourself just how much you’re spending on certain things, and in tandem, how much money you’re not really saving. But like a mystery stomach pain, mystery spending only gets worse with time.
So when you begin the budgeting process, be honest with yourself. Record everything. If looking at a certain expense makes you cringe, good! Like a massage therapist finding knots in your back, discovering cringeworthy expenses is pretty much the whole point.
Don’t forget insurance and retirement
Perhaps the most common mistake among budgeters is forgetting to include big, routine expenses that fall outside of a monthly cycle. The two that are most oft-forgotten are retirement and insurance.
Generally speaking, you should consider putting away at least 10% of your monthly income into a retirement account. I highly recommend opening a Roth IRA. Remember to subtract whatever you stash away from your monthly income on your spreadsheet.
Similarly, be sure to factor your insurance premiums into each month’s budget. Even if you pay in full, whatever you pay in total annually for home/renters, medical, and auto should be divided by 12 and included in your monthly expenses.
Think of budgeting as “money journaling”
The process of journaling is excellent for your mental health because it “helps you prioritize problems, fears, and concerns” and “provides an opportunity for positive self-talk,” according to the University of Rochester Medical Center.
Because “budgeting” can have loaded connotations, I think of budgeting as “money journaling.” If I’m nervous about my income-to-spending ratio, I record everything to remove the fear of the unknown. Then, I either discover that I’m well within my spending limit, or that I’ve exceeded it and should go lean until the end of the month.
In either case, I feel much better.
Pros of budgeting in a spreadsheet
Versatile and easy to share
Perhaps you’re worried that budgeting in a spreadsheet will involve the complex drudgery of designing something from scratch. Thankfully, nothing could be further from the truth.
I like Google Sheets because it’s free, cloud-based, and doesn’t require surprise lengthy updates. Plus, the platform has hundreds of professional and user-sourced budget templates for every possible scenario. When you find a template you like, you can click FILE > MAKE A COPY, and ta-da, it’s yours forever.
Plus, Google Sheets makes it easier than most apps to share your spreadsheet with friends, family members, or your financial advisor. And when things get private, you can dynamically update the view, comment, or edit access (or revoke it entirely!).
Download Money Under 30’s official “Simple Budgeting Spreadsheet” for Excel here.
Here to stay
Apps come and go, regardless of popularity. Thousands of full-time Viners didn’t think they’d lose their primary source of income overnight until they did.
While budgeting apps are probably less volatile than social media platforms, it’s safe to say that Google Sheets and Microsoft Excel will be around much longer than many of the medium-sized budgeting apps competing on the Apple or Play Store.
By “investing” in a spreadsheet over an app, you can rest assured that your preferred budgeting tool will always be available (and offline, no less).
Better security
A lot of money management apps prompted me for my bank account information. Although they listed good reasons for the invasion of privacy (real-time budgeting data, auto-deposits into retirement, etc.), it still made me feel uneasy.
If the Equifax breach has taught us anything, it’s that a miserly approach to sharing personal information is probably a good idea. Keeping your budget spreadsheet and your accounts separated may be less convenient, but it’s indisputably safer.
There’s very little a hacker can do with a copy of your budget spreadsheet other than mock you for spending $41 on Ben & Jerry’s Chocolate Therapy.
Now that I’ve covered the advantages of budgeting with a spreadsheet, I should acknowledge some shortcomings.
Cons of budgeting in a spreadsheet
Can lack user-friendliness
Rather than overwhelm you with a sea of empty cells, apps YNAB (You Need a Budget) will ease you into the process by asking a few questions at a time to calculate your income, expenses, and goals.
If you feel especially psychologically intimidated by the budgeting process, or you need extra help cataloging your expenses, the Q&A format of many user-friendly apps may ease some of your troubles.
Short on features
Even the best-designed spreadsheet templates are still static in nature and require your input to work effectively. Apps, by contrast, can be more dynamic, automatically adjusting your data based upon the access you give it to your accounts, bills, etc.
While you can write those off as mere conveniences, it’s hard to ignore how some apps will even go so far as to drive behavior. A spreadsheet admittedly can’t send reminders to your phone to stop spending, nor can it automatically invest for you.
Not mobile-friendly
I’d hesitate to call Sheets or Excel “mobile-friendly” – a more apt descriptor would be “mobile-tolerable.” Before a medium-sized purchase, I can always take a quick glance at my budget on Sheets mobile, but I lack the dexterity or patience to make any actual changes until I find a laptop.
By contrast, virtually all budgeting apps are designed to be mobile-friendly. If you’re someone whose laptop stays sheathed most of the day as you do most admin tasks on your phone, an app may better fit your lifestyle.
Summary
My budgeting spreadsheet is like a Toyota SUV – it may be short on fancy features or connectivity, but it’ll always be there and it will never break down.
Even still, while I strongly prefer to budget using a spreadsheet, there’s really no right answer for everyone. What’s most important is that you’re budgeting somehow, somewhere.
If customer satisfaction is your thing, and you happen to need a home loan, you might want to check out Royal United Mortgage.
The company recently topped LendingTree’s customer satisfaction rankings for four consecutive quarters, and have consistently ranked in the top-10 for the past six years.
Another thing that makes them unique is the fact that they offer home equity lines of credit (HELOCs), and a lot of them at that, based on their HMDA data. Let’s learn more.
Royal United Mortgage Fast Facts
Privately-held, employee-owned retail mortgage lender licensed in 32 states
Founded in 2008, headquartered in Indianapolis, Indiana
Funded roughly $1 billion in home loans during 2019 via consumer direct channel
Ranked a top-10 mortgage lender by LendingTree since 2014
Began 2020 as LendingTree’s #1 lender in customer satisfaction for 4th quarter in a row
Most of their business comes from the states of Florida, Indiana, and Texas
Royal United Mortgage is a relatively young company, around since 2008, which is right around the time the mortgage crisis and Great Recession took place.
But they’ve made it through some tough times and mustered over a billion in home loan volume last year.
They’re a privately-held, employee-owned direct-to-consumer mortgage lender, meaning they operate remotely without branches.
At the moment, they seem to be licensed to do business in 32 states, including Alabama, Arizona, Arkansas, California, Colorado, Florida, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Michigan, Minnesota, Mississippi, Missouri, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Washington, and Wisconsin.
Royal United Mortgage Loan Process
They offer a digital mortgage application powered by Ellie Mae
You must first get in touch with a loan advisor to get started
Prospective can call them up directly or fill out a short contact form on their website
Claim to have some of the fastest turn times in the industry thanks to in-house processing and underwriting
To get started, they ask that you either call them up or fill out a short contact form on their website.
Once you connect with a so-called trusted loan advisor, they’ll go over your goals and guide you through the loan process, including an overview of available loan options.
They appear to offer a digital mortgage application powered by Ellie Mae that should allow you to link financial accounts and/or upload key documents.
Additionally, once conditionally approved for a loan, you can check loan status at any time or opt-in to real-time notifications regarding loan progress.
Because they use in-house loan underwriters and processors, they say they’re able to offer some of the fastest turn times in the industry, typically only 2 to 3 weeks (how long does it take to get a mortgage).
All in all, pretty straightforward, though it would be nice if you could apply without having to take the extra step of speaking to a human.
Loan Types Offered by Royal United Mortgage
Home purchase loans and refinance loans
Rate and term and cash out refis (debt consolidation)
Home improvement loans
Conforming loans backed by Fannie/Freddie
FHA loans and VA loans
Home equity lines of credit (HELOCs)
One drawback to Royal United Mortgage is their somewhat limited menu of loan programs.
While they appear to have most of the basics, they’re missing a few major loan types, including jumbo loans and USDA home loans.
That leaves us with conforming loans backed by Fannie Mae and Freddie Mac, along with FHA loans and VA loans.
The good news is that should cover most of the homeowner population.
They seem to focus on mortgage refinances, including rate and term refis and cash out refis for debt consolidation.
They also say they’ve got home renovation loans, though it’s unclear if they’re talking about the FHA 203k and/or the Fannie Mae HomeStyle.
One silver lining is they offer home equity lines of credit (HELOCs), which not all lenders offer these days. So you can tap into your equity without touching your first mortgage.
While they do offer home purchase financing, it seems to make up a small portion of their overall loan volume, maybe just north of 10%.
Interestingly, it is HELOCs that tend to make up the most of their business.
They lend on primary residences, second homes, and investment properties.
Royal United Mortgage Rates
For one reason or another, Royal United Mortgage does not publicize its mortgage rates.
This isn’t uncommon, as many banks and lenders tend to keep their interest rates to themselves.
However, since they don’t advertise their rates, we have no way of knowing how competitive they are in the pricing department relative to other mortgage lenders.
The same goes for their lender fees, which don’t seem to be listed on their website anywhere. This means we don’t know if they charge points or a loan origination fee.
So be sure to get all that information early on before you spend too much time with them in case their rates/fees aren’t to your liking.
Royal United Mortgage Reviews
As noted, they were ranked 1st by LendingTree for customer satisfaction from the second quarter of 2019 through the first quarter of 2020.
That’s four consecutive first place rankings, which seems like a pretty big feat. Additionally, they have roughly 9,000 customer reviews on LendingTree with a 4.9 out of 5-star rating.
Some 98% of former customers recommend using Royal United Mortgage, per the LendingTree website.
They have been Better Business Bureau accredited since 2008 and currently hold an A+ rating with the company.
At the time of this writing, Royal United Mortgage has nearly 400 customer reviews on the BBB website with a 4.5/5 rating.
Like all other mortgage lenders, they have complaints too, which are inevitable when you’re dealing with a large number of customers in the mortgage industry.
But all in all, they appear to be well received by their customers, which is a good sign.
Royal United Mortgage Pros and Cons
The Good
Offer a digital mortgage application powered by Ellie Mae
Ranked #1 by comparison service LendingTree
Excellent customer reviews across multiple review sites
A+ BBB rating and an accredited business
Offer home equity lines of credit (HELOCs)
Free mortgage calculators and mortgage glossary on site
The Maybe Not as Great
Not licensed to lend in all states
You have to contact them before applying for a home loan
Financial jargon is so confusing that 34% of Americans say they “don’t know where to start” when it comes to retirement planning, according to a new survey from Unbiased.com. In fact, the analysis found that the majority of adults say they have no confidence when it comes to dealing with retirement planning options.
Consider working with a financial advisor for professional help in putting together or modifying a retirement plan.
What the Survey Found
The 25% of respondents to the Unbiased Retirement Confidence Survey who said they did feel confident about choosing among retirement options said their confidence was the result of working with a financial planner.
The survey also revealed that a considerable 76% of adults older than 50 who are nearing retirement expressed little or no confidence at all about the available financial options for retirement saving. In addition, just 30% of adults say they had high levels of confidence about the retirement products available to them.
“Retirement can be an overwhelming concept and it requires careful planning. Far too many people put this off until it is too late, or don’t get the right advice,” said Unbiased founder and CEO Karen Barrett. “Planning for retirement is one of life’s biggest decisions and it is certainly one of those instances where you want to consider professional guidance.”
Retirement Account Literacy
Slightly more than half of the respondents said they had a strong level of understanding when it came to workplace retirement accounts, such as 401(k)s, 403(b)s and IRAs. However, just 12% said they had an understanding of annuities, and only 11% said they had a high level of knowledge about traditional defined benefit retirement plans.
Much of that discomfort about retirement vehicles could come from the source of information used by nearly half (47%) of the survey respondents: online searches, family members and friends. Only 30% of those people surveyed said they had gotten information from a financial advisor.
The Fear of Surprises
Other retirement-related areas where respondents felt shaky was with the two largest, most unpredictable expenses in retirement: healthcare and inflation. Healthcare was cited as a primary concern by 56% of respondents who have good reason to worry. For instance, one widely circulated Fidelity study found that an average retired 65-year-old couple in 2023 may need approximately $315,000 saved to cover medical costs during retirement.
On the other hand, inflation was cited as a primary concern by 59% of the respondents. The likelihood of a steadily rising cost of living for retirees is a major focus for professional retirement advisors, who often recommend an ongoing investment in stocks to produce the investment gains required to beat inflation.
“The majority of Americans are not feeling confident about their retirement options,” said Barrett. “It also appears that many are not seeking professional help despite these concerns.”
Bottom Line
Confusion and fear that they could make a mistake with investing and saving for retirement keeps many working men and women from moving forward with retirement planning. Many experts advise people to simply get started with a workplace retirement plan or traditional IRA, noting that the worst thing workers can do about retirement planning is nothing.
Tips on Retirement
A financial advisor can help you answer all your questions about retirement options. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
To gauge your retirement readiness, try SmartAsset’s retirement calculator. This free tool will estimate how much you’ll have when the time comes to retire.
Another mortgage-minded fintech company by the name of Sindeo is looking to shake up the dusty old mortgage industry by providing loan pre-qualifications in under five minutes.
Like other companies in its class, you can apply for a mortgage on your computer, tablet, or mobile phone and get an answer in minutes, all without speaking to another human, something Millennials are quite fond of these days.
It works like other mortgage quoting systems in that you enter pertinent details such as property location, transaction type (purchase or refi), loan amount, credit score, and so on.
Additional questions include how long you plan to stay in the home, which I feel is helpful in narrowing down the loan options for borrowers.
Sindeo Offers Over 1,000 Mortgage Products
From there, you’ll be presented with a “Sindeo Suggested” loan product from one of over 1,000 loan products in the Sindeo mortgage marketplace.
Apparently they work with over 45 lenders at the moment, so the choices are quite bountiful.
They refer to themselves as a “lender-paid mortgage originator,” which sounds an awful lot like a mortgage broker to me, especially since they say they’ve got access to wholesale rates.
That means they get paid a certain percentage of the loan amount in exchange for providing the lender business and guiding the client during the loan process.
I decided to give the pricing engine a whirl and it actually took me under a minute to get my quotes (I literally timed it). Watch out Rocket Mortgage…
You’re presented with a cluster of loan programs (pictured above), including the usual suspects like the 30-year fixed, 15-year fixed, and some common ARMs such as the 5/1 and 7/1, assuming you tell the company you’re okay with an ARM during the information gathering process.
At that point you can click on a given product and compare different rates and fees, depending on how much or little you’d like to pay out of pocket in the way of closing costs and discount points.
If you hit pre-qualify, you’ll be asked to sign up with Sindeo and fill out an online application that will conclude with them running your credit.
As you fill out the application, you receive tips on the right sidebar that explain why such questions are being asked. This can be helpful if borrowers wonder why they’re being asked about their job history, housing history, and so on.
Once complete, the information will be sent through Fannie Mae’s DU (automated underwriting) to quickly underwrite the loan and spit out a pre-qual.
Assuming all is good, you can start uploading necessary documents to continue on with the process.
You can also print/download a pre-qual letter to send to your real estate agent if need be. This could be helpful for someone who needs that letter quickly to make a qualified offer on a home.
Sindeo Can Save You $20,000 on Average and Close in 15 Days?
I was reading through Sindeo’s FAQ page and they mention they can save the average borrower $20,000 on their loan. Digging in a bit more, the say their clients can snag lower interest rates and save some $32,802 over the life of the loan.
Additionally, their “internal technology” allows them to close mortgages a lot faster than the brick and mortar shops.
In fact, Sindeo may be able to close a loan in a few as 15 days, which certainly beats the 90-day turn times at some other big commercial banks.
Of course, results may vary and it will depend on how complicated (or not) your loan turns out to be.
Sindeo Mortgage Advisors Get Paid on Customer Satisfaction
Another interesting aspect of the company is the way their mortgage advisors get paid. These folks are basically loan officers or Account Executives that guide you through the loan process.
Instead of earning a commission based on the loan amount, which can clearly muddle service between low loan amount borrowers and high, they are paid on customer satisfaction.
Aside from earning a flat fee for each closed loan, Sindeo mortgage advisors also earn a quarterly bonus based strictly on customer satisfaction.
Borrowers are asked to complete surveys and the corresponding scores are used to determine the amount of the quarterly bonus between 6% and 10% of their annual salary.
So that should ensure your advisor is on top of their game and in constant contact, and not avoiding you like the plague.
Sindeo is currently serving the states of Arizona, California, Colorado, the District of Columbia, Florida, Oregon, Tennessee, Texas, and Washington.
They plan to get licensed in other states and expect to expand into new regions in the near future.
Check out some other fintech mortgage lenders, such as Clara and Lenda.
Update: Sindeo has shut its doors, marking perhaps the first fintech mortgage startup to fail. As a result, a number of employees will lose their jobs.
Update 2: Sindeo is back in business, after closing in late June 2017. Looks like the closure only lasted about 3 weeks. Hopefully good news for the employees involved.
Inside: Working mothers face many challenges when balancing work and family life. This guide offers the best jobs for moms. Find out how to maximize your career opportunities while raising children.
Moms often feel like they can’t have a successful career and be a good moms at the same time.
I completely feel that way too. I struggled to be a stay-at-home mom when my kids were little because I wanted to help out financially to help pay down debt. It took me a few years, but I soon realized there are great ways to make a mom and be a great mom!
I have uncovered plenty of jobs for moms with no degree that offers flexible hours, good pay, and satisfying work.
The best jobs for moms with no degree are ones that offer flexibility, good pay, and room for growth.
It can be tough to balance family and career, but it is possible to find a job that fits your lifestyle.
Here are the best jobs for moms with no degree or with a degree.
What jobs are good as a mom?
As a mom, finding a job that allows for flexibility and growth can be challenging, especially if you don’t have a college degree.
However, there are still plenty of opportunities out there that can help you balance your family and career.
Most importantly, you need to find a job that you LOVE! An environment that you thrive in!
With flexible schedules, remote work options, and potential for growth, these jobs can provide the stability and income moms need while still being able to prioritize their families.
Whether you’re looking for a part-time job or a full-time career, there are plenty of opportunities out there for moms.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
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What are the best careers for current stay-at-home moms?
Stay-at-home moms face the challenge of balancing their family responsibilities with the desire to pursue a career.
With the high cost of child care, you need to find a job that allows you to take your kids or one that offers flexibility to work around your kid’s schedules.
Hello- that is me! I am a blogger and day trader when I’m not taxing my kids around.
Your best bet is to check out how to make money online for beginners. That is where you will find the most job options that can be done from home or offer flexible schedules, making it possible to have the best of both worlds.
What are the best careers for former stay-at-home moms?
Returning to the workforce after being a stay-at-home mom can be a daunting task, but there are many careers that are best suited for moms.
You still want careers that offer flexibility, high earning potential, and a good work-life balance.
You need to consider your previous employment, any education or certificates you hold, or skills and/or interests.
As such, the answer will vary for each person reading this post. So, consider any one of these past ideas.
Best Jobs for Moms
There are plenty of great jobs for working moms.
The key is to find a position that offers the right mix of income, hours, and flexibility.
Preferably, you want a low-stress job that pays well without a degree.
Here are jobs to consider if you’re a working mom with no degree.
1. Web developer
Web development is a highly flexible and lucrative career option that is ideal for working moms who may not have a college degree. With the ability to work remotely or part-time, web development is a perfect fit for moms who need a flexible schedule.
This field is rapidly growing and in high demand, making it an excellent choice for those looking for a career change.
To become a successful web developer, proficiency in programming languages like HTML, CSS, and JavaScript is essential. Additionally, knowledge of website design and development tools is crucial to create visually appealing and functional websites.
The skills required for web development can be learned through online courses or boot camps, making it accessible to anyone with an interest in technology and design.
Benefits:
Many web developers work from home or have flexible schedules, making it easier for moms to balance work and family life.
The demand for web developers is expected to grow, making it a stable and secure career option.
Web development is a field that allows for creativity and self-expression.
Pay: The salary for a web developer varies greatly on experience, but it is possible to make six figures.
2. Customer Service Representative
Customer service representative is an excellent career option for working moms who do not hold a college degree.
As a customer service representative, you will be the primary point of contact between customers and the organization, providing information about products and services, taking orders, responding to customer complaints, and processing returns.
You can work from home part-time or full-time, and many times the work takes place remotely. To succeed in this role, you will need to have strong communication and negotiation skills, patience, and the ability to multitask.
Benefits:
The work environment is flexible, and you can work from the comfort of your home.
Job offers great work-life balance and schedule options, making it an ideal choice for working moms.
Pay: As a customer service representative, you can expect to make from minimum wage to $20 an hour.
3. Proofreader
Being a proofreader can be a rewarding and fulfilling career for individuals who have a way with words and a keen eye for grammar. As a proofreader, your primary responsibility would be to review and correct spelling, grammar, and punctuation errors in various types of written content, such as books, websites, and social media posts.
Moreover, the earning potential as a proofreader can be quite lucrative. For instance, Caitlin Pyle, a successful proofreader, made $43,000 in one year working part-time.
To get started as a proofreader, it is important to develop the necessary skills. You can start by attending a free introductory workshop or enrolling in a course that teaches the skills needed to become a freelance proofreader.
Benefits:
Great flexibility as you work on a project basis.
The significant earning potential in the field of proofreading, especially for those who are dedicated and skilled in their craft.
Rewarding career path for individuals with a passion for language and a meticulous eye for detail.
Pay: In terms of salary, the median pay for a proofreader ranges from $15.22 to $26 an hour, depending on experience and the project you are working on. Many other proofreaders earn between $1,000 to $4,000 per month.
4. Flight Attendant
A flight attendant is a career that does not require a college degree but extensive training and certification. It is an ideal job for working moms due to its non-traditional scheduling that allows them to work part-time, take extended periods off, and get out of the house.
Flight attendants can take on trips when they know they have child care covered, and stay at home for days at a time.
Benefits:
Enjoy the perks of travel.
Flexible schedules.
Great health benefits.
Pay: The pay ranges by airline, but the median salary is $65000 per year.
5. Blogger
For moms who are looking for a flexible work-from-home job that doesn’t require a degree, becoming a blogger could be the perfect fit.
With the rise of the internet, there is an increasing demand for content writers and bloggers. These jobs allow you to work from home, set your own schedule, and choose the topics you want to write about. Additionally, these jobs don’t require a degree, making them accessible to anyone who has a passion for writing and a way with words.
Blogging is another option for those who want to write about specific topics they are passionate about and share their insights with others.
Benefits:
Be your own boss.
Flexibility blogging offers – work as much or as little as you want.
Work from home.
Choose the topics you want to write about.
Pay: As a blogger, you are creating passive income through ads, affiliating marketing, and paid sponsorships.
6. Engineer
Returning to work as a mom can be a challenging transition, but leveraging your engineering degree can open up a range of opportunities for you. With your technical skills and problem-solving abilities, there are several career paths that can offer a healthy work-life balance and flexibility to accommodate your family responsibilities.
Here are ways to utilize your degree and still have the flexibility you crave:
Pursue freelance work in your field. As a freelance engineer, you have the freedom to determine your own schedule and take on projects that align with your interests and availability. Platforms like Upwork provide a space for engineers to connect with clients and offer their services on a project basis. This allows you to work on engineering projects from the comfort of your own home, giving you the flexibility to balance work and family life.
Explore part-time or remote positions with engineering firms or companies that value work-life balance. Many engineering firms recognize the importance of accommodating working parents and offer flexible work arrangements. With your engineering background, you can contribute to projects and collaborate with teams remotely, allowing you to work from home and adjust your schedule to meet the needs of your family.
Pursue a career in technical writing or content creation. Many companies and organizations require technical documentation, manuals, and instructional materials to accompany their products or services. With your engineering background, you can leverage your expertise to create clear and concise technical content.
Work as an engineering consultant. As a consultant, you can offer your specialized knowledge and expertise to clients on a project basis. Consulting also provides the opportunity to work remotely or have a flexible work arrangement, making it an ideal option for moms returning to work.
By expanding your knowledge and skill set, you can position yourself for more opportunities and increase your marketability in the engineering field.
Benefits:
This can be done on a freelance basis or as a remote employee, allowing you to work from home and have more control over your schedule.
Take on projects that align with your skills and interests.
Have a fulfilling career that allows you to balance work and motherhood successfully.
Pay: Additionally, engineering offers high earning potential, which can help support a family and provide financial stability. Most engineers earn over $100000 a year.
7. Virtual Assistant
For working moms with no degree, finding a job that balances well with their family life can be a challenge. However, virtual assistant jobs can be the perfect solution.
As a virtual assistant with no experience, you can work from home, set your own schedule, and earn a good income.
A virtual assistant provides administrative support remotely, handling tasks such as email and social media management, scheduling appointments, data collection, customer service, and event planning. The skills required for this job include strong multi-tasking, organizational, and time-management skills, as well as basic computer skills.
Here is a virtual assistant checklist to see if you would enjoy this job possibility.
Benefits:
Be the boss of your own schedule.
Build your own small business if you desire.
Earn significant income
Pay: Most virtual assistants can earn $21 an hour or more pending experience.
8. Teacher
Teaching can be an excellent option for moms who want to work in a field that values education and have the same schedule as their kids.
Plus you can take on one of these summer jobs for teachers to extra cash.
Another option is to become a teacher’s aide that assists teachers in the classroom, helping with tasks such as grading papers, supervising students, and preparing materials. To become a teacher’s aide, you need to have a high school diploma or GED.
Benefits:
Same work hours as your children.
Work in a field that values empathy and care for children, while also providing financial stability and work-life balance.
Most teacher retirement plans are well worth working your full 30 years for that ongoing income post-retirement.
Pay: Unfortunately, teachers are one of the lowest paid salaries for the fantastic work they do. Find out if teachers get paid in the summer.
9. Substitute teacher
Substitute teaching can be an excellent job option for working moms who don’t have a degree. It offers flexibility, a chance to get teaching experience, and a decent daily rate of pay.
A substitute teacher fills in for full-time teachers when they are absent.
This experience can be helpful if you decide to pursue a permanent teaching position in the future.
Benefits:
Allows you to work when your schedule permits. You can note your availability and work as much or as little as you like.
Gain teaching experience without committing to a full school year.
Rewarding job option for some.
Pay: As of right now, there is a shortage of teachers, so the pay for substitute teachers has increased immensely. Substitute teachers can earn a daily rate ranging from $60 to $200, depending on the school district and the region with most substitutes making $22 an hour or more.
10. Consultant
As a consultant, you can use your prior work or life experience to offer solutions and advice to clients in a wide range of areas, including sales, marketing, operations, and management.
Furthermore, consulting can be an ideal way to transition your prior work or life experience into a new career and shorten the time spent in school, making it a great option.
To become a successful consultant, you need to have strong communication skills, the ability to work independently, and experience in your field to run a successful business.
Benefits:
As a consultant, you can enjoy flexible work hours.
The potential to work from home.
Ability to control your schedule.
Pay: The hourly rate for consultants varies depending on the type of consultant and the industry, with some earning high salaries.
11. Day Trader
Swing or day trading is a popular option for individuals who want to work from home and make a living from the stock market. Day traders buy and sell securities within the same day, aiming to make a profit from small price movements.
This job requires a certain set of skills and investing knowledge, as well as specific equipment and software.
It is possible to make money with stocks fast.
Day trading can be a good option for working moms with no degree because it offers flexibility and the potential for high earnings. Personally, I love trading stocks and options. I learned from Teri Ijeoma.
Benefits:
Unlike traditional jobs, day trading allows individuals to work from home and set their own schedules.
Successful traders can make a significant amount of money, with some earning six-figure or seven-figure incomes.
While a degree is not required for day trading, I highly recommend taking this investing course to jumpstart your learning.
Pay: Widely variable as it depends on your risk. You can lose money or make $1000 a day.
12. Claims adjuster
As a claims adjuster, you will be responsible for investigating insurance claims, negotiating settlements, and collaborating with other professionals such as lawyers and medical experts. To become a claims adjuster, you will need to possess relevant experience, strong communication abilities, and proficiency in data analysis.
The work environment can be fast-paced and stressful, but the potential for career growth and the flexibility to work remotely make this an attractive option for many working moms.
Claims adjusters must also maintain accurate records and documentation of all claims activities.
Benefits:
While the work environment can be fast-paced and stressful, the potential for career growth is likely.
Flexibility to work remotely make this an attractive option for many working moms.
Pay: Claims adjusters can advance to higher positions within the insurance industry, such as senior claims adjuster or claims manager. Additionally, many claims adjusters work as independent contractors or consultants, providing even more flexibility and potential for career growth.
13. Bookkeeper
As a bookkeeper, one is responsible for monitoring a company’s cash flow by keeping track of transactions and preserving copies of receipts. The job requires great attention to detail, excellent organizational skills, and an ability to analyze and interpret financial data.
This job can be done virtually, making it an excellent position for moms who want to improve their work-life balance.
Bookkeeping does not require a degree and one can earn a decent hourly pay or salary. To become a bookkeeper, one must have bookkeeping skills, which can be learned from online courses.
Benefits:
Flexible working hours, allowing them to work whenever suits them.
Great for someone who loves analytics.
Pay: Most bookkeepers enjoy relatively high hourly salaries. They can work as independent contractors or be paid as a salaried employee.
14. Nanny
Being a nanny is an excellent option for moms who want to balance work and family life.
As a nanny, you would be responsible for taking care of children, cooking, cleaning, and running errands. The best part about being a nanny is the flexible hours, which allow you to work part-time or full-time while still being present for your family.
Finding a job that allows moms to work while still being present for their families is crucial, and being a nanny provides the perfect solution.
Benefits:
Be able to care for your own children at the same time.
Find a nanny job that works for your circumstances.
Stay young and playful while working with kids!
Pay: The pay varies widely for a nanny, but once you have experience and great references, you can earn good money.
15. Marketing Specialist
Marketing can be an excellent job choice for moms looking for flexibility, potential job growth, and the opportunity to work remotely. With the advancement of digital marketing, moms can now pursue a career in marketing without having to leave their homes or work in a traditional office setting.
As a digital marketer, there are various specializations and skills that can be honed to advance in the field. These include SEO (search engine optimization), web development, content creation, and marketing strategies.
By continuously learning and improving these skills, moms can enhance their professional reputation and open doors to new opportunities within the marketing industry.
Benefits:
Ability to work from home.
Work flexible work hours that can be adjusted to fit their family’s needs.
Digital marketing also offers potential job growth and career development.
Pay: As a marketing specialist, the pay can vary greatly if you work as a freelancer or a bigger corporation.
16. Financial Advisor
Financial advising can be an excellent career path for working moms without a degree, offering flexibility and opportunities for growth.
Honestly, I know many people who have successfully entered the workforce as financial advisors.
The first step towards becoming a financial advisor is to obtain relevant certifications and licenses, such as the Certified Financial Planner (CFP) designation. Once certified, financial advisors can work for a firm or start their own business, providing financial advice to clients.
Pursuing a career as a financial advisor can offer a good salary and work-life balance, making it a great option for working moms.
Benefits:
Help others pursue a life of financial independence.
Perfect for someone who loves numbers!
Pay: The pay for a financial advisor varies greatly, but the median salary is $75000 a year.
17. Writer
Becoming a writer can be a great career choice for moms who want to work from home and have a passion for writing. With flexibility, the potential for a decent income, and no degree required, it’s an accessible and rewarding career path.
Highly recommended to take this writing course to jumpstart your networking opportunities.
As a writer, you can work as a content writer, staff writer, or freelance writer.
Content writers produce content for websites, such as blogs, news aggregators, and e-commerce sites.
Staff writers write articles for publications, such as magazines or newspapers.
Freelance writers write for clients without being permanent employees.
What’s more important is having a way with words, strong research skills, and a passion for writing.
Benefits:
Flexibility to work on a story when you are able to.
For those with a love of English, this is a great way to express yourself.
Pay: While the average hourly rate for writers and bloggers varies, it’s possible to earn a decent income in these fields.
17. Social Media Specialist
As a social media specialist, you will manage social media accounts, create and post content, increase engagement, analyze data, and monitor social media. This role requires skills such as graphic design, writing appealing content, an eye for design, and flexibility.
Moms possess many of these skills naturally, such as multitasking, creativity, and communication. These skills can be applied to social media management, including content creation, scheduling, and community management.
Social media management is also a growing field. As a result, this job can provide moms with a stable income and career growth opportunities while allowing them to prioritize their family life.
Benefits:
Great for those who personally love social media.
Easy to work anywhere.
Pay: With an average salary of $52000 a year, this job can be done from home, making it a perfect fit for moms.
18. Human resources manager
Work-life balance is crucial for working moms, and a career as a human resources manager can provide just that.
Human resources managers are responsible for managing employee benefits, overseeing hiring processes, and handling employee relations. This job offers flexibility, including the ability to work remotely or part-time.
A career in human resources management can positively impact a working mom’s family life by providing a consistent schedule that doesn’t involve weekends or holidays.
Benefits:
HR managers are in high demand in many industries, as every organization requires HR expertise to manage its workforce effectively.
Opportunities for personal and professional growth.
Make a positive impact on employees’ lives.
Ample networking opportunities with employees, upper management, and external stakeholders.
Pay: Human resource managers often receive competitive salaries, with average annual earnings exceeding $120,000.
19. Sell on Printables on Etsy
In recent years, the demand for printable products has grown tremendously, making Etsy a great platform for working moms without a degree to earn a steady income from home.
Printables are digital files that customers can download and print at home, such as wall art, planners, calendars, and invitations.
The best part is that once you create a printable, you can sell it repeatedly without having to invest more time or money.
Check out the list of the most popular printables you can create.
Benefits:
A flexible job that allows you to work from home and set your own hours.
Earn a steady income from a single printable, which means you can focus on creating new products and growing your business.
Able to start s small business.
Pay: This is a passive income. Learn how much these sellers have made.
20. Retail associate
Many moms become retail associates to get a discount from the retailer!
Working in retail can be a rewarding and dynamic career choice. Retail jobs are generally physically demanding, as employees are often on their feet for long periods and may need to lift and move heavy items.
The nature of retail work can also be stressful, especially during busy periods such as holidays or sales events. However, it can also be an opportunity to develop and utilize various skills, particularly when interacting with customers.
Benefits:
Working part-time hours while your children are at school.
Discounts to the retailer you work.
Flexible scheduling hours.
Pay: This is a minimum wage job earning $13 an hour to $18 an hour.
21. Nursing
Nursing is a fulfilling career for moms who enjoy taking care of others.
While most nursing positions require a degree, there are also entry-level jobs available for those without a degree. Certified nursing assistant (CNA) and licensed practical nurse (LPN) are two such positions.
Both positions require certification and training, which can be completed in a matter of months. Pursuing a career in nursing as a working mom without a degree offers the flexibility to balance work and family while also providing the opportunity for career advancement.
Benefits:
Flexible scheduling around what works best for your family.
Ability to work part-time or full-time.
Great career option to take fewer hours while your children are little and more hours when they are in school.
Pay: The average hourly rate for nursing varies depending on where you work. Most certified nurses make between $32 an hour to $50 an hour.
22. Transcriber
As a transcriber, you will listen to audio files and create a document that contains an accurate record of what was said. This is one of the best jobs for moms with no degree, as most transcription companies just require you to pass their test before they give you work.
To become a successful transcriber, you will need fast typing skills, attention to detail, and the ability to sit for long periods of time. You may also need to purchase special transcribing equipment, depending on the company you work for. Most transcription jobs will require the ability to type 75 WPM or more.
This is a great non phone work from home job.
With the right skills and tools, you can become a successful transcriber and earn a decent income. So if you are a fast typer with an eye for detail, consider taking a free mini-course to find out if this is the right job for you.
Benefits:
Transcription jobs from home are available remotely and work as many hours as you want.
Set your own schedule.
Make money by meeting deadlines.
Pay: Generally, transcriptionists earn around $19 per hour in the US, but this can be more depending on your employer.
23. Graphic Designer
Graphic design is an excellent job for working moms with no degree, as it allows for significant flexibility in working hours and can be done from home.
As a graphic designer, you will be responsible for creating logos, designing websites, and developing marketing materials such as brochures and flyers. To succeed in this field, you’ll need to be creative, detail-oriented, and able to work with clients to meet their specific needs.
Benefits:
Balance their family responsibilities with a fulfilling and rewarding career.
Perfect to showcase your creative side.
Pay: With a median annual wage of $48000 per year, graphic design is a lucrative career that offers plenty of room for growth and advancement.
24. Online Coach
Being an online coach is a great job for individuals who are looking to earn money online without a degree. While some online coaches do gain certifications, it is not always necessary.
There are several types of coaching fields to enter, including career coaching, life coaching, health coaching, family coaching, and fitness coaching. It is advisable to choose a field that you have experience in or feel comfortable handling.
As a life coach, for example, you can assist clients in achieving their goals, dealing with self-esteem issues, or working on relationships.
Benefits:
Freedom to set your own schedule and work from home, which allows you to balance work and family responsibilities.
Potential to earn a good income, especially if you specialize in a high-demand niche and build a strong client base.
Viable career option for working moms without a degree.
Work remotely from their computers and communicate with clients online.
Pay: Most coaches make between $30 an hour – 100 an hour pending experience.
25. Counselor
Counseling is indeed a vital service that plays a crucial role in helping individuals and families overcome difficult challenges.
As a counselor, you work closely with clients to address various issues and support them in achieving their personal and professional goals.
Counselors can work in diverse settings, including private practices, mental health centers, schools, substance abuse centers, or government institutions. This allows for a wide range of opportunities and flexibility in terms of work environment and schedule. Additionally, advancements in technology have made it possible for counselors to provide their services online, further expanding the accessibility and convenience of counseling.
Benefits:
Flexibility to work part-time or full-time.
Making a positive impact on the lives of others and contributing to their well-being is a significant aspect of counseling that attracts many individuals, including moms, to pursue this profession.
Offers a fulfilling and financially rewarding career path.
Pay: The average hourly rate for counselors is $39 an hour.
Other Jobs Options to Consider:
Home Health Aide: Care for patients in their own homes. Many opportunities for part-time work.
Personal Care Aide: Assist clients with daily tasks such as bathing, dressing, and grooming. Flexible schedules are available.
Event Planner: Plan and organize events such as weddings, conferences, and parties. Can often work on a freelance or contract basis.
Photographer: Take photographs for a variety of purposes such as weddings, events, or marketing materials. Can often work on a freelance basis.
Personal Trainer: Help clients achieve fitness goals through exercise and nutrition coaching. Can often work on a freelance or contract basis.
House Cleaner: Clean homes or businesses on a regular basis. Offers flexibility in terms of schedule and workload.
Online Tutor: This job involves teaching students online in various subjects. Skills required include teaching ability, subject expertise, and communication. To balance work and family life, set a schedule and prioritize family time.
Translator: This job involves translating written or spoken content from one language to another. Skills required include fluency in multiple languages, attention to detail, and communication. To balance work and family life, set a schedule and prioritize family time.
Pet Sitter/Dog Walker: This job involves caring for pets while their owners are away. Skills required include love for animals, responsibility, and time management. To balance work and family life, set a schedule and communicate with clients to ensure availability.
Personal Shopper: This job involves shopping for clients and delivering their purchases. Skills required include organization, communication, and time management. To balance work and family life, set a schedule and communicate with clients to ensure availability.
What to consider when choosing a job for working moms without a degree?
Working mothers without a degree face many challenges when it comes to finding a job.
They need to find a balance between their family and career commitments, and they also need to find a job that is flexible enough to accommodate their schedule. Here are the things to consider when looking for a new job.
1. Hours and Shiftwork
For working moms being able to control their own schedules allows them to be present for their children’s needs while also earning an income is extremely important. It is important to consider the hours you have available to dedicate to a job along with the shiftwork necessary when choosing a job.
Think about whether you want to go part-time or full-time.
Also, weekend shifts are also an option for those who need to work around their family’s schedule. Even better, remote work has become increasingly popular and offers even more flexibility.
2. Salary
Salary considerations play a significant role in achieving this stability a mom desires.
It is essential to explore different salary options and negotiate to ensure that you are being fairly compensated for your skills and experience.
Consider starting salary, the potential for growth, benefits packages, and negotiation when exploring job options.
3. Responsibility and Stress
As any working mom can tell you, being a working mom can be an incredibly stressful experience. Mothers often have to balance their work responsibilities with household chores and childcare, which can be overwhelming.
Finding a job that balances responsibility and stress is crucial for working moms to maintain their mental and physical health, and to be able to provide for their families.
4. Level of Education Required
As a working mom, it is important to consider the level of education required when choosing a job.
Plus, it is crucial to research job requirements and considers personal interests and skills when selecting a job. By doing so, working moms can find a job that offers flexibility, decent pay, and job satisfaction.
5. Professional Licenses and Certifications
Obtaining, professional licenses and certifications is an excellent way for working moms without a degree to increase their job opportunities, earn higher salaries, and improve job security.
These certifications and licenses are often required for specific industries, such as healthcare, education, and law enforcement.
With so many options available, it’s important for working moms to explore the various certifications and licenses that are relevant to their industry and career goals.
6. Work-Life Balance
Balancing work and family life is a challenge for anyone, but it can be particularly daunting for working moms.
However, there are several factors to consider when choosing a job that can help achieve a work-life balance:
Flexible Work Hours: A job with flexible work hours can help working moms without a degree balance their work and family responsibilities. This can include part-time work, remote work, or jobs that allow for flexible scheduling.
Remote Work Options: Remote work can be an excellent option for working moms without a degree who need to work from home.
Company Culture: A supportive company culture can make all the difference for working moms. Look for companies that offer family-friendly policies such as paid time off, flexible work schedules, and on-site childcare.
By prioritizing work-life balance, working moms can achieve success in both their personal and professional lives.
7. Vacation and Time Off
For working moms without a degree, vacation and time off are crucial benefits to consider when evaluating a potential job offer.
Here are three factors to consider when reviewing a company’s vacation and time off policy:
The number of vacation days offered, including paid time off for sick days and personal days.
The flexibility of the policy, such as the ability to take time off for family emergencies or unexpected events.
The potential for extended leave, such as maternity or paternity leave.
8. Career Advancement
When considering a job as a mom, career advancement is an important consideration. It is essential to choose an employer and a job that offers opportunities for growth and progression in your chosen field.
Advancing in your career not only allows you to achieve personal and professional goals but also provides financial stability and job satisfaction.
Don’t underestimate the power of setting clear career goals and actively working towards them.
By investing in your skills, building a strong network, and setting clear career goals, you can pave the way for a successful and fulfilling career as a mom.
9. Job Security
Job security is especially significant for working moms, who may face more challenges in finding and keeping a job.
Typically, working moms are limited in their job options.
So, look for careers that provide financial security as well as companies with a solid track history.
This is the perfect side hustle if you don’t have much time, experience, or money.
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FAQ
You can search for remote jobs, part-time jobs, or freelance gigs.
You can also look for companies that have flexible policies in place. Also, reach out to your network and ask if anyone knows of any openings that are flexible.
Stay-at-home moms can find a variety of jobs that can be done from home and offer flexibility to work around their schedule. Here are some of the options available:
Working from home offers the benefit of having a better work-life balance and the ability to be present for their families while still earning an income.
Which Job for Moms will You Choose?
For moms who want to balance family and career, finding a job that offers work-life balance and career growth is crucial.
Not only can working increase income, but it can also lead to career advancement and personal fulfillment.
Above, we listed many great jobs for moms. You can choose a job that allows you to work from home, or one that provides flexible hours. Also, many moms like me prefer one of these early morning jobs.
Whatever you choose, make sure you find a job that you enjoy and that allows you to spend time with your family.
Know someone else that needs this, too? Then, please share!!
It can be satisfying to watch your 401(k) plan balance grow over time as you contribute to it. But what happens when those contributions stop? The amount your account will grow depends on how much money you have in it and how the market performs. Here is how you can estimate the future performance of your 401(k). If you’d like personalized advice about planning for retirement, consider working with a financial advisor.
What Is a 401(k)?
A 401(k) is an employer-sponsored retirement account that offers tax benefits. A traditional 401(k) will be withdrawn from your paycheck pretax and will only be taxed when you withdraw from it in retirement. A Roth 401(k) is similar but reversed, in that the money that goes into it is already taxed, so it won’t be taxed when you withdraw from it in retirement. You can withdraw from either type of 401(k) penalty-free beginning at age 59 ½.
When you sign up for a 401(k) plan, you’ll be presented with investment options when you complete the paperwork. Once you deposit money, it will be invested according to your selections.
401(k) plans were specifically created to incentivize workers to save for retirement. If you contribute to a traditional 401(k), your taxable income is reduced due to the 401(k) withholdings. If you’re contributing 6% of your income to a 401(k), you won’t owe taxes on that percentage of your income. With a Roth 401(k), instead of saving on taxes in the year you contribute money to your 401(k), you’ll enjoy the savings when you withdraw it in retirement.
How Does a 401(k) Work?
You may be asking yourself, how does a 401(k) plan make money? The main way you will see your 401(k) grow is from your contributions (and your employer’s, if they offer a match). Once you stop contributing, what happens next?
So, remember the investment options you were given when you signed up for the plan? Your choices told your 401(k) provider how to allocate the money in your 401(k). A common investment option is a target-date mutual fund. This type of fund will contain a mixture of investments, including stocks and bonds, managed to maximize returns while minimizing your risk as you near retirement age. Generally, you’ll be advised to invest in riskier funds when you’re younger and move towards more stable investments as you age.
The money you see in your 401(k) and what you’ll be able to withdraw in retirement are made up of contributions, plus earnings from your investments, plus interest.
How Does It Grow When You Stop Contributing to It?
When you stop contributing to your 401(k) plan, don’t expect to see your balance grow at the same rate. But how much your balance will grow will depend on a few factors.
Interest is one of the big factors in the continuing growth of your 401(k) plan’s balance. When you select a fund to invest in, that fund may include CDs, bonds and/or money market funds—all investments that generate interest. And the larger your balance, the larger those interest payments will be. Simply put, 5% of $10,000 is more than 5% of 100,000.
Other investments might generate earnings based on the market, such as stocks and ETFs. You may see greater volatility in these investments, with earnings either being very good or very bad. When you choose what to invest in, you set your risk profile—riskier investments have the promise of a higher payout but also can suffer markedly when the market turns.
One of the most important things to consider when thinking about how much your 401(k) balance will grow once you stop contributing is compounded growth. When you earn money, either from interest or earnings, that amount is put back into your 401(k) and invested. For a very simple example, let’s say you have $1,000 that you invest for one year and it earns $100. Your 401(k) will add that $100 to the pot and invest $1,100 the next year for a return of $110.
On a small scale like that, it might not seem impressive. But compounding interest and earnings is the most meaningful way that a 401(k) plan will continue to generate growth after you stop contributing. If you add a couple zeroes to the end of those example figures, you’ll soon see the point.
The Bottom Line
While your 401(k) account will likely continue to grow after you stop contributing to it, that growth will be limited by the market, your plan’s balance and other factors. The growth can vary over time as any one of those things changes. In order to get a good idea of what yours could look like you may need to work directly with a professional financial advisor to help you calculate the estimation for your account.
Retirement Tips
Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Use SmartAsset’s free retirement calculator to see if you’re on track to meet your retirement goals.
You may find your company’s 401(k) plan may not be the best option for you. And you may get better investment choices and tax breaks if you open an IRA or a Roth IRA. To help you decide, we published articles on the best IRAs and the best Roth IRAs.
Choosing to adopt a child is an exciting milestone in life, but it’s also one that takes a lot of planning and effort. Future adoptive parents can opt for either a domestic adoption or international adoption, but there are a lot of differentiating factors that may influence the decision.
If you’re considering adoption, you’ll want to understand the distinctions between domestic and international adoptions, from the process and timeline to the costs involved, so you can decide what’s best for you.
The Domestic Adoption Process
One of the major advantages of choosing a domestic adoption is that you have the potential to adopt a newborn. However, the timeline is not set in stone and may depend on whether you opt for an open, semi-open, or closed adoption. Most domestic adoptions are considered at least “semi-open.”
Depending on the agency you work with, you may need to be chosen by a birth mother based on your profile. Once you’re selected, the timing depends on the expected (and actual) due date. The process usually takes a few months. Typically, you get access to the child’s medical records as well as the birth mother’s family history.
An open adoption also allows some contact and conversations with the birth mother before the baby is born. In a semi-open adoption, personally revealing information is withheld between the adoptive parents and the birth mother.
Once the baby is born and you officially adopt the child, the adoption agency may facilitate sending updates to the birth mother, as well as pictures so she can see the baby is well taken care of.
Domestic Adoption Eligibility Requirements
American adoption requirements vary by state and by the adoption agency you choose to work with. Generally, you must be at least 18 years old, and there’s often a minimum age difference required between you and the child.
Most states allow domestic adoptions regardless of marital status; parents can be married, single, divorced, or widowed and still qualify.
Explore your state and city adoption websites for more details on additional requirements unique to your area.
The International Adoption Process
International adoption, thanks to rules and clearances, typically will not involve a newborn, so you’ll need to be open to welcoming an older baby or toddler to your home.
With international adoption, there are issues that could affect your ability to adopt, even in the middle of the process. New international laws and relations between the United States and other countries have the potential to derail families who are in the middle of an adoption. The process varies by country but typically takes between 1.5 and 2.5 years.
While you can find out about the child’s medical history, you likely won’t know anything about the family history. Once you adopt a child from abroad, you won’t have any contact with the birth family.
International Adoption Eligibility Requirements
Each country has its own eligibility requirements for adoptive parents, which are typically much stricter than domestic requirements. Often you’ll need to meet income requirements, which may include a higher amount if you already have children. Some countries also have net worth requirements.
In addition, you may discover that some countries restrict the type of families that are allowed to adopt from there. For example, some only offer adoption to married couples or single women.
These rules vary by country, and there are some countries, such as Colombia, that allow single men and same-sex partners to adopt.
International vs Domestic Adoption Costs
The costs vary greatly with both international and domestic adoptions, but the common thread is that it can be expensive if you’re not adopting a foster child.
For international adoptions, expect to pay anywhere from $20,000 to $50,000, depending on the country.
In South Korea, for example, adoptions may cost between $32,000 – $38,000. In China, the range is $35,000 to $40,000. Adoptions from India may span $21,000 to $25,000.
Choosing an international adoption also requires you to travel to the country (often more than once) in advance of actually adopting your child.
Domestic adoptions through a private agency may cost between $30,000 and $60,000.
It is much less expensive, and potentially even free, to adopt through foster care. However, as a foster parent, your goal is to help reunite the child with the existing family. Adoption may become an option, but it is not the primary objective.
Recommended: Common Financial Mistakes First-Time Parents Make
Funding Options for Adoptions
Adoption costs are often out of reach for many U.S. families. But even if you can’t tap into your savings (or don’t want to), you can explore other options for funding your adoption.
Recommended: 5 Tips for Saving for a Baby
Employer Benefits
Some companies offer adoption assistance funds as part of their employee benefits packages. In addition, about 34% of employers offer paid adoption leave and 25% provide paid foster child leave. This provides flexibility to transition when a new family member arrives.
You may want to check with your HR department to make sure you don’t miss out any adoption benefits offered by your company.
Adoption Federal Tax Credit
The federal government provides some tax benefits for adoptions. First, if you use employer benefit funds to pay for the adoption, that money is excluded from your income so you don’t have to pay federal taxes on it.
The tax code also offers an adoption tax credit that can help offset some of the costs involved in adoption, whether you adopt for a domestic or international adoption. Qualified adoption expenses include things like adoption fees, legal costs, and travel expenses.
The tax credit amount changes every year, so it’s a good idea to talk to an accountant for more specifics.
There are income limits for qualifying for both the tax exclusion and credit.
Friends and Family
Many adoptive parents ask friends and family members for financial support when starting the adoption process. You could even start a crowdfunding campaign as a way for your broader community to donate to your adoption fund.
Hopeful parents may want to include a compelling personal story about the path to adoption to help draw in potential donors from their community.
Just remember that if you use a crowdfunding platform, you generally have to pay fees taken out of the money you’ve raised. This usually ranges from 3% to 8% when including both fundraising fees and processing fees.
Recommended: New Parent’s Guide to Setting Up a Will
Personal Loan
Another option for financing your domestic or international adoption is with an unsecured personal loan.
This type of loan typically comes with a fixed interest rate and repayment period, which allows you to make a set monthly payment over a set number of years.
You’ll need good credit to qualify for the best interest rates. Lenders may also take your debt-to-income ratio into consideration. You may qualify for a larger loan amount if your existing debt is low compared to your monthly income.
Sometimes referred to as an adoption loan, the proceeds from this type of loan can be used for just about anything. That means not just the agency and legal fees but also soft costs like travel and meals, which can get expensive if you’re adopting from abroad.
The Takeaway
Choosing to adopt a child can be life-changing, but an international or domestic adoption usually carries a high price tag. Fortunately, with tax benefits and funding options available, you can worry less about how to pay for all of the costs associated with the process and focus more on the joy of growing your family.
Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.
SoFi’s Personal Loan was named NerdWallet’s 2023 winner for Best Online Personal Loan overall.
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Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
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It’s difficult to visit any news site without seeing some mention of cryptocurrency. Most people sit there and simply think, nope, crypto’s way too much risk for me. And they’d be right. Crypto is an incredibly volatile asset, but, there’s a “safer” way to invest in it.
An investment in blockchain ETFs (blockchain is the technology cryptocurrencies run through) is a great way to diversify your portfolio. It’s also an excellent way to participate in the growth of this emerging technology while limiting your exposure to the potential risk that comes with cryptocurrencies and other ICOs.
In this article, I will discuss how investing in blockchain ETFs works, as well as the best ways for you to invest today.
What’s Ahead:
A step-by-step guide on how to invest in blockchain ETFs
If you decide to purchase a blockchain ETF, it’s a good idea to make sure you are buying one with an established track record of returns. Below, I’ve outlined a basic, step-by-step guide to investing in blockchain ETFs.
1. Open a brokerage account
To invest in a blockchain ETF, the first thing you need to do is open a brokerage account. If you already have one, that’s great. Otherwise, head on over to your preferred broker and open an account with them. Just make sure that you take note of any fees that the account charges.
You’ll also want to ensure they sell the specific blockchain ETF you’re looking to invest in. It’s important to remember that every brokerage account is different. Some may offer special promotions or have discounts on certain fees for new customers. You’ll want to consider this when choosing your broker.
2. Determine the amount you want to invest
Once you’ve opened a brokerage account, you should determine how much you’re willing to invest. Remember that a blockchain ETF is typically priced based on the total value of assets it holds. This means that if a share is worth $100 and an ETF has 100 shares, then each individual share would be worth $1.
It pays to do some research into what type of blockchain ETFs other investors are investing in and how much they’ve invested – this will give you a sense of where a good starting point is.
Public, for instance, allows you to track and follow other people’s investments. So, you can follow someone who knows the blockchain space and replicate their investments if you wanted.
Whatever you decide, make sure you don’t invest more than you can afford to lose. While blockchain ETFs may be “safer” than buying something like cryptocurrency directly, there’s still the potential for risk.
3. Find the ticker symbol of the blockchain ETF you want to buy
Okay, now you’ve figured out where you’re going to invest and how much you’re going to invest. So it’s time to search for the specific blockchain ETF you want to buy.
The first step is to find the ticker symbol of the blockchain ETF you’re looking for. This will be a short three- or four-letter abbreviation representing the fund and its corresponding company – it’s typically listed in small print at the top left corner of your screen. It looks like this: BLOK, for the Amplify Transformational Data Sharing ETF, if that’s one you’re interested in.
A quick Google search for “blockchain ETFs” should give you a list of some out there – so do your due diligence, and find one that looks the most appealing to you.
Once you’ve found it on your screen in front of you, look for a small box that says “symbol” or “ticker symbol.” It should be right under the fund’s name. Copy this string of letters into your browser by highlighting them with the cursor as selected, then paste it into your brokerage’s search bar.
4. Place an order for that ETF
Once you’ve located the blockchain ETF you want to invest in, it’s time to place an order. You have a few different options for order types when buying a blockchain ETF:
Market order – Market order is an order to buy or sell a security at the current best price available in the market.
Limit order – A limit order is an instruction to buy or sell a security at the specified price below or above the current market price.
Stop limit order – When you place stop and limit orders together, they work as one large trade with two parts: first, if the price reaches your set “stop” point, it will execute your “limit” instructions.
Do whatever makes the most sense for you and your investment goals, but don’t worry about the differences too much. The key here is to get invested in a blockchain ETF.
5. Set up automatic contributions and investments (if you can)
By now, you’ve hopefully invested in a blockchain ETF. But you’ll want to keep the momentum going. To do that, set up an automatic investment plan.
You can automate your investments so that when you set a new goal, say buying a house or saving for retirement, every week or month, the predetermined amount gets invested in blockchain ETFs on your behalf- and you never have to worry about it again.
This is also one of those things where doing something simple now could save you from some major hassles later. Because, before long, blockchain will be everywhere.
What is a blockchain ETF?
A blockchain ETF is a security that tracks the performance of blockchain-based assets. ETFs are composed of individual securities, such as stocks, bonds, or commodities.
An investment in a blockchain ETF is an indirect way to invest in the technology’s underlying infrastructure and protocols which currently power cryptocurrencies like Bitcoin and Ethereum, but will soon be used for much more than just finance.
Right now, you can’t purchase a Bitcoin or cryptocurrency ETF in the U.S., so if you want to invest in blockchain ETFs, they’re best suited as a long-term investment.
The investments are decentralized and transparent, making them immune not just to manipulation but also to fraud. As a result, blockchain technology provides some of the greatest opportunities for investors who don’t have much time to delve into individual companies or venture capitalist firms with different levels of risk.
Two of the most popular blockchain ETFs are the Reality Shares Nasdaq NexGen Economy ETF (BLCN) and the Innovation Shares NextGen Protocol ETF (KOIN). Both of these ETFs track stocks that are involved in the implementation of blockchain technology.
The Reality Shares Nasdaq NexGen Economy ETF is made up of companies like:
Amazon.
Bank Of America.
Facebook.
Google.
The Innovation Shares NextGen Protocol ETF focuses on emerging startups rather than established firms and includes a wider range of investments as well.
Where to buy a blockchain ETF
If you want to buy a blockchain ETF, you can do so through your brokerage account or a robo-advisor.
The easiest way to invest in blockchain ETFs is by using online investment platforms such as E*TRADE.
E*TRADE offers access to specific funds that you couldn’t otherwise buy on exchanges like the Reality Shares Nasdaq NexGen Economy ETF and the Innovation Shares NextGen Protocol.
Many robo-advisors, such as Betterment, also offer access to blockchain ETFs in some of their portfolio options.
If you have a brokerage account with Robinhood or TD Ameritrade, then they may also provide investment funds that include blockchain ETFs within them. Regardless of the platform you are using, buying a blockchain ETF is the easiest way to invest in blockchain.
Benefits vs. risks of buying blockchain ETFs
There are many risks and benefits to investing in blockchain ETFs. But, first, let’s start with the benefits.
Benefits of investing in blockchain ETFs
They have a low cost. The biggest benefit of investing in blockchain ETFs is the low cost. You can invest as little or as much as you want, and it’ll all be allocated to your chosen stocks automatically by a fund manager, who will take care of everything for you.
ETFs are often less risky. There’s also very little risk involved with investing in these types of funds because they are highly diversified.
No minimum amount required most of the time. Another great aspect about them is that there’s no minimum amount required – so even if you only have $20 to spare, that could still make an impact. Finally, one last big upside is getting exposure to many different companies just from one company investment.
Risks of investing in blockchain ETFs
Less consistency. First, you will not get the same consistency as investing in a more traditional fund, like an S&P index fund, for instance. This is because blockchain ETFs (along with crypto) may sometimes move irrationally.
More unknowns. It’s hard to know what companies you’re specifically invested in, so if there is an issue with one company and it causes a domino effect, then your investment might take a hit. For this, I recommend doing deep research on the ETF and seeing which companies it holds and how they’re positioned in blockchain technology.
Higher fees than other ETFs. Finally, the fees can be slightly higher than other ETFs on the market because of how they work. They also have no minimum amount required, which could end up costing you even more money.
Summary
Blockchain ETFs are an exciting new way to invest in blockchain technology while also mitigating your overall level of risk. If you’ve been hesitant to jump into this space because you’re unsure where and how to buy Bitcoin, or if you don’t understand the difference between Ethereum and Ripple, now is a good time to learn more about these types of investments before it’s too late. Always research before jumping into any type of investment.