Investing in forest land suitable for producing lumber can provide you income, diversification, inflation protection and more. Timber investing requires careful study of the industry, market and individual parcels, and it’s generally a long-term play, with years required to realize a profit. Timberland is also highly illiquid, so you might need a year or more to turn your asset into cash should you need it. Talk to a financial advisor to learn how investing in timber and other real assets can help you achieve your long-term objectives.
Timber Investment Basics
Investing in timber involves owning land that’s used to grow trees that can be processed into lumber. Timber, which is considered a real asset, is vital to the production of paper, utility poles and furniture, as well as the construction of homes and other buildings.
Timber sales are infrequent, as it can take decades for trees to grow large enough to be harvested. In fact, you may only make a handful of timber sales in your life as a timberland investor. Timber investors can generate income more regularly by selling seeds or renting land for livestock to graze on. Timberland can also be used for recreation.
More than 500 million acres of commercial timberland exist in the United States, according to the United States Department of Agriculture. An acre of timberland can cost from $1,500 to $2,000, with prices varying by location, road access and the type and maturity of trees. The value of timber also varies by tree variety, size and quality. According to TimberUpdate.com, which tracks prices and trends in the timber industry, prices can range from about $5 per ton for low-quality small trees to as much as nearly $50 per ton for mature, straight trees that can be sawn into knot-free boards for decorative uses.
Pros and Cons of Timber Investing
Timberland has a number of features that make it attractive to investors. These include:
Income from selling timber to sawmills
Inflation protection similar to other commodities
Diversification and risk management from owning an asset not correlated to stocks, bonds and other asset classes
Favorable capital gains tax treatment for most income
Appreciation as trees grow into more mature specimens that command higher prices
Sustainability, since trees generally benefit the environment
Owning timberland can also give you the opportunity to personally enjoy an investment. A section of timberland can even provide a site for building a second home or even a primary residence.
But owning timberland also may involve some or all of the following limits and risks:
Long time frames waiting for trees to be mature enough to harvest
Unpredictable prices when you sell trees due to commodity cycles
Time, money and attention required to plant and tend trees and maintain the property
Risk of fires, floods, hurricanes and other natural disasters
Low liquidity compared to most other investments can also be an issue. It can easily take a year or more to sell a parcel of timberland and turn your investment into cash.
Investing in Timber ETFs
Rather than directly buying timberland yourself, you can buy shares of exchange-traded funds (ETFs) focused on timber. These specialized ETFs invest in shares of companies that own or lease timberland and harvest the trees for lumber or other forest products. Buying shares of timber-focused ETFs allows you to get asset diversification, inflation protection and other timber investment benefits without the challenge and illiquidity of owning and managing the timberland yourself. You will also get additional diversification within the asset class because these ETFs own shares of a number of timber-related companies, reducing your exposure to weather, fire and other risks.
Timber ETFs include the iShares Global Timber & Forestry ETF and the Invesco MSCI Global Timber ETF.
Bottom Line
Timberland investments offer a way to diversify your portfolio with real assets that can produce both income and capital gains. But buying and owning timberland requires an in-depth knowledge of the industry and significant time and attention. Timberland is also a long-term play, often requiring years or decades to generate a profit.
Investing Tips
A financial advisor can help you evaluate alternative approaches to achieving diversification, inflation protection and other benefits of owning timberland. If you don’t have a financial advisor yet, finding one doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors in 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.
SmartAsset’s Investment Return & Growth Calculator takes a lot of the guesswork out of forecasting how your investment will perform over time. Enter the amount of your initial investment, the timing and amount of any additional contributions, your anticipated rate of return and the number of years you plan to let the investment grow. The calculator will give you an estimate of how much your portfolio will be worth, assuming all those factors play out as planned.
Mark Henricks
Mark Henricks has reported on personal finance, investing, retirement, entrepreneurship and other topics for more than 30 years. His freelance byline has appeared on CNBC.com and in The Wall Street Journal, The New York Times, The Washington Post, Kiplinger’s Personal Finance and other leading publications. Mark has written books including, “Not Just A Living: The Complete Guide to Creating a Business That Gives You A Life.” His favorite reporting is the kind that helps ordinary people increase their personal wealth and life satisfaction. A graduate of the University of Texas journalism program, he lives in Austin, Texas. In his spare time he enjoys reading, volunteering, performing in an acoustic music duo, whitewater kayaking, wilderness backpacking and competing in triathlons.
Last month I wrote a post on do-it-yourself beauty and personal care products. That touched a nerve with a lot of people: some loved it, some hated it; it seemed like everyone had something to say.
At the time I’d planned to follow up with a post on do-it-yourself cleaning products for the home, but I’ve decided to take a step back and look at the bigger question: What is a clean house worth?
Everyone puts some resources into keeping their home clean. Whether you spend hundreds of dollars a month on professional cleaning services or struggle to pay for soap, you’re going to have to shell out cash, time, and effort to have a healthy, clean, happy place to live.
Should You Do It Yourself?
For some, having your house cleaned by a professional seems like an unthinkable luxury. To others it’s just part of the cost of running their household, like paying the electric bill.
The thing to remember when deciding whether to do your own cleaning or pay someone else to do it is that you always have to spend something on keeping your house clean: money or time. Time is a finite resource, too, just like money. If you decide to do it yourself, you’re committing to spending a chunk of time every week doing chores. If you pay someone else, you get that time back in exchange for your money.
House cleaning isn’t cheap. In the area where I live, you’ll pay a house cleaner $70-$100 for biweekly cleaning of a moderate-sized apartment. If you want a really deep cleaning or have a large house, it can cost a lot more.
That price tag is worth it to a lot of professionals. They look at the value of their own time and decide that it’s worth their while to pay someone else to wash the floors and scrub the tub. The time they don’t spend cleaning their own house they can spend working or relaxing.
In the days before I had kids, I lived in a shared apartment with four other adults. We all worked full time. With five salaries coming in and no one with a lot of time on their hands, hiring a house cleaning service was clearly the right call. We never had to fight over whose turn it was to do those cleaning chores, and we were all happy to spend money rather than time on keeping the house clean.
As a stay-at-home mom, that equation changed. Suddenly I was drowning in time and scrambling to come up with enough money to pay my bills every month. Housekeeping services were one of the first things to go.
Every household has to do their own math and figure out how much time and money they’re willing to spend on keeping the house clean.
How DIY Do You Want to Be?
Even if you hire a cleaning service to take care of the big stuff, you’ll still do a fair amount of housekeeping yourself. There will always be spills to mop up, dishes to wash, laundry to do, and garbage to haul to the curb.
When you’re going about your household cleaning, you have a lot of choices to make. What products will you buy? What tools will you use?
There are probably as many individual answers to those questions as there are houses being cleaned. Here are some popular strategies that people use to keep costs down when they’re cleaning their homes:
Make your own cleaning products. I know, I know, some of you are tired of the hippie stuff. But this one isn’t mine. Trent at the Simple Dollar has done all the math on how much you can save by just making your own laundry detergent, and it adds up to a decent chunk of change.
Do away with disposables. Try using rags instead of paper towels to clean up messes, or buying refills for your handsoaps instead of whole new containers. Every time you can eliminate waste in your cleaning process you’re cutting costs as well as helping out the environment.
Buy in bulk. Cleaning products last for a long time, if not indefinitely. You can buy bulk containers of things like laundry soap, handsoap, and all-purpose cleaner. Typically, the per unit cost on these is lower than if you buy just a regular size bottle at the drug store. Watch out for shopping momentum, though. Only buy bulk items you really need and will use.
Use coupons. A lot of people make out like bandits byclipping coupons and taking advantage of sales to stock up on their favorite cleaning products.
Keep it simple. There’s a dizzying array of cleaning products on the market, making competing offers and boasting features you never knew you needed. Stick to the basics.
Have a Cleaning Plan
Cleaning the house can be an intimidating prospect. Where do you begin? How do you know when you’re done? Without a plan, you can wind up spending a lot more time, frustration and money than you really need to.
Some of the best cleaning advice I ever got was this simple truth: Do one thing at a time. Don’t set aside Saturday as cleaning day and think you’re going to rock the whole place into a state of pristine order like a team of professional house cleaners might.
Instead, pick one task or one room and get it done. Some people get a lot of mileage out of chore charts. (And, of course, there’s J.D. and his silly chore cloud.) In my house, we used to use a chart that listed out all the chores that needed doing. When someone did a chore, they’d initial the chart with the date, so everyone knew when the floors had last been swept or the windows washed.
After nine years of living together, my husband and I are past the days of chore charts. We both know pretty well what needs to be done and how often it needs to happen. We have our routines, and we’re comfortable with the cluttered-but-clean living space we share. The chart was invaluable for helping us work out those routines in the early days, though, and I’m thinking of bringing it back in a different form for my kids’ benefit.
How do you keep your house cleaning without breaking your back — or the bank?
Whether you want to save for retirement or buy stock in your favorite company, you’re going to need a brokerage account before you can get started. Brokerage accounts are different from regular bank accounts because they give you access to securities like stocks and bonds. Not to mention some brokerage accounts come with special tax advantages.
This article will cover the best brokerage accounts you can choose from. For those who are new to investing it will also cover the basics of what brokerage accounts are and how they work.
What’s Ahead:
Overview: Best brokerage accounts for beginners
TD Ameritrade: Best overall for new investors
What sets TD Ameritrade apart is its extensive library of free educational resources that new investors can use to learn about investing.
thinkorswim is TD Ameritrade’s trading software that allows you to make trades anywhere. New investors can use paper trading to simulate investing without risking any money, while experienced investors can use the same software to test new strategies or learn new skills.
Pros
Educational library and training tools. TD Ameritrade’s suite of free resources and simulation software makes it one of the best platforms for new investors.
Customer support. TD Ameritrade is known for its world-class customer support, which is available 24/7 on most communications platforms, including Twitter.
Cons
Fewer no-cost mutual funds. TD Ameritrade only offers around 1,600 no-cost mutual fund options. This is less than some of its competitors.
No crypto trading. TD Ameritrade does not currently support cryptocurrency trades.
Visit TD Ameritrade to learn more or read our TD Ameritrade review.
Robinhood: Best mobile trading app
Robinhood was a disrupter when it launched its mobile trading app in 2015. Its mission is to provide everyone with access to wealth-building investing activities and it does this by offering users commission-free trades.
Robinhood’s app is designed for digitally-native investors. With just a few swipes, you can buy stocks and begin building your own portfolio.
Advanced traders can join Robinhood Gold, which allows you to trade on margin. Proceed with caution: Margin trading is a risky business.
Pros
No-fee trades. Buy and sell stocks, ETFs, and crypto without paying trading fees.
User-friendly app. The app is easy to use, allowing you to make trades right from your phone.
No minimum to get started. You can open a Robinhood account and start with as little as $1.
Cons
Trade suspensions. Robinhood got into some hot water after it suspended trading during the GameStop short squeeze of 2021. They’ve run into trouble with regulators over a few other issues too.
Limited options. Robinhood doesn’t give you the full suite of investment options you might find at other firms. While you can buy stocks, ETFs, and crypto on the platform, you can’t buy mutual funds or bonds.
Visit Robinhood.com to learn more or read our Robinhood review.
Advertiser Disclosure – This advertisement contains information and materials provided by Robinhood Financial LLC and its affiliates (“Robinhood”) and MoneyUnder30, a third party not affiliated with Robinhood. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Securities offered through Robinhood Financial LLC and Robinhood Securities LLC, which are members of FINRA and SIPC. MoneyUnder30 is not a member of FINRA or SIPC.”
E*TRADE: Best for active traders
E*TRADE is a financial services company that is part of Morgan Stanley. It offers $0 commission trades and an advanced trading platform that makes it perfect for active traders.
The platform gives you access to a wide variety of investment options including stocks, bonds, ETFs, and mutual funds. More than 4,700 mutual funds are available with no transaction fees.
Active traders have access to a suite of data tools including the Power E*TRADE app. This software offers traders access to real-time data feeds and the ability to build custom graphs.
Pros
Advanced analytics. Power E*TRADE is an advanced app with great charting tools.
$0 commissions. E*TRADE eliminated its $6.95 trade commission back in 2019. It is now one of the most cost-effective brokerage options available.
Wide selection of investments. Investors can choose from a wide variety of investment options including stocks and bonds.
Cons
No crypto trading. E*TRADE does not support cryptocurrency at this time.
Transfer fees. If you want to move money out of E*TRADE to another brokerage, be prepared to pay $25 for a partial transfer and $75 for a full transfer.
Visit E*TRADE to learn more or read our E*TRADE review.
Webull: Best for casual traders
If you’re looking for an easy-to-use, no-frills trading platform, Webull could be a good fit for you.
Webull provides a very readable dashboard of the top stocks and best-performing industries. Its mobile trading app gives you access to a range of investment options — including crypto — with no trading fees.
New investors who fund an account on the platform can even get free stocks just for joining. Terms apply.
Pros
Lots of investment options. Webull gives investors access to 44+ different cryptocurrencies, as well as fractional shares.
No educational resources. Inexperienced investors with a lot to learn probably shouldn’t turn to Webull.
No interest on uninvested cash. Some other brokerage firms partner with banks to offer interest for uninvested cash. But any cash at Webull that isn’t invested will sit idle in your account.
Visit Webull to learn more or read our Webull review.
Fidelity: Best all-in-one brokerage
Fidelity is one of the most well-known financial services companies out there. In addition to offering taxable brokerage accounts, Fidelity also has a number of tax-advantaged options, like health savings accounts (HSA).
One of Fidelity’s key selling points is its zero-expense-ratio index funds. An index fund typically tracks a specific index in the stock market, like the S&P 500. It gives you the opportunity to invest in a basket of top-performing companies without having to pick individual stocks. While most index fund managers typically charge a small fee, Fidelity is the first company to offer index funds with no fees.
Fidelity’s variety of account options also makes it a good one-stop-shop for investors. You can have a taxable brokerage account at Fidelity, along with your retirement accounts, an HSA, and a 529 College Savings Plan. Fidelity also offers a suite of educational resources to help new investors build a comprehensive portfolio to meet their personal financial goals.
Pros
Zero-expense ratio index funds. These are highly cost-effective, low-fee funds to maximize the return on your investments.
Retirement planning. Fidelity offers a library of educational resources that are great for someone looking to start saving for retirement.
Cons
No crypto. Fidelity does not support crypto at this time.
High broker fees. Fidelity doesn’t charge a commission on self-initiated trades but it does charge fees to tap into its network of financial advisors.
Visit Fidelity to learn more or read our Fidelity review.
Charles Schwab: Best customer service
Charles Schwab is another well-known financial services company that offers both taxable and tax-advantaged brokerage accounts. Schwab invests in research to build in-house expertise that anyone can use, no matter how much money they have. If you have questions or want to learn more, an expert is only a phone call away.
Charles Schwab also offers its own index funds tracking a variety of indices, including the S&P 500, large-cap stocks, the bond market, and REITs. With low expense ratios, Schwab’s index funds are a cost-efficient passive investing option.
Pros
World-class research. Schwab customer service reps are experts who can help you learn more about investing and the products Schwab offers.
Cost-effective index investing. The suite of Schwab’s low-cost index funds makes it a great option for passive investors.
Cons
No crypto. Schwab doesn’t offer direct crypto investing, but it does give you access to crypto-related products like Grayscale Bitcoin Trust.
Foreign stock fees. Schwab offers low-cost options for U.S.-traded companies, but not for foreign companies.
Visit Charles Schwab to learn more.
Vanguard: Best for passive investing
Vanguard is one the leading brokerage firms out there thanks to its famous founder, Jack Bogle. Fans of Vanguard — known as Bogleheads — follow Jack’s simple investing philosophy of letting compound interest grow over time, making Vanguard one of the best platforms for passive investors.
Vanguard is a pioneer of low-cost index funds. Investors use index funds to save money without having to develop technical expertise or make active trades. The “set it and forget it” mindset works well with Vanguard, where investors can benefit from compounding interest without paying expensive management fees.
Pros
Low-cost index funds. Vanguard offers some of the most cost-effective and best-performing index funds.
Cheap mutual funds. In addition to index funds, Vanguard’s Admiral Shares mutual funds are some of the cheapest mutual funds available. The minimum required to invest in their mutual funds is $3,000.
Cons
Not user friendly. Vanguard’s platform is a bit old school and might not be the best option for active traders.
Basic. It’s another no-frills option, so you won’t get access to advanced analytical tools or research with Vanguard.
Visit Vanguard to learn more or read our Vanguard review.
Ally Invest: Best account options
Ally Invest is the trading platform affiliated with Ally Bank. It offers no-cost trades that appeal to both new and experienced investors.
Ally Invest offers a variety of account options depending on how involved you want to be. You can choose to open a self-directed account, invest in a robo-advisor portfolio, or work with Ally’s wealth management team. This gives you the flexibility to invest on your own or to capitalize on Ally Invest’s in-house expertise.
Pros
Options for all types of investors. You can manage your own investments if you want, but Ally Invest gives you options so you don’t have to.
Integration with Ally Bank members. Ally Invest allows you to move money easily between all your accounts if you already bank with Ally.
Cons
No crypto. Ally Invest offers a variety of securities but does not support crypto at this time.
No in-person branches. Ally is fully digital, so if you’re looking for in-person support this brokerage firm might not be the best for you.
Visit Ally Invest to learn more or read our Ally Invest review.
How I chose these brokerage accounts
I chose these brokerage accounts based on three core factors:
Securities available to investors
User experience
Fees
My logic: If a platform is hard to use and has a lot of fees you’re probably not going to benefit from it. Plus, a brokerage firm with limited offerings can make it hard to build a well-diversified portfolio. A good beginner brokerage account should have low fees, a variety of investment options to choose from, and a good user experience.
What is a brokerage account?
A brokerage account is an investment account where you can buy and sell securities. These are things like stocks, bonds, ETFs, mutual funds, and sometimes even crypto.
Most brokerage firms allow you to open an account online. Many even have apps where you can get started right from your phone.
You also don’t need a lot of money to get started either. Once you fund your brokerage account, you can begin trading stocks. An important thing to note: The brokerage firm doesn’t buy securities for you. After you fund your account it is up to you to begin investing. If you don’t, your cash will just sit there collecting dust.
Types of brokerage accounts
The brokerage account you’re probably most familiar with is your retirement account. Whether you have an employer-sponsored 401(k) or your own IRA, retirement accounts are actually brokerage accounts.
Read more: A beginner’s guide to saving for retirement
Aside from retirement accounts, there are a couple of other types of accounts you’ll want to be aware of.
A self-directed brokerage account is one where you make your own stock picks. Robinhood is a good example of this type of account. Unlike your retirement account, there are no tax benefits with self-directed brokerage accounts.
If the idea of picking your own stocks is overwhelming, you can opt to work with a financial advisor. These are individuals who act as brokers and are paid on commission to make trades on behalf of their clients. Sometimes they are paid a percentage of the total assets they manage. Other times they are paid on a per-trade basis.
When you work with a financial advisor you’re essentially paying for their expertise. They pick stocks and build a portfolio based on their knowledge of the market. The more active your advisor is, however, the more it will cost you.
Read more: Do you need a financial advisor?
An alternative to using a human financial advisor is to work with a robo-advisor. These are proprietary algorithms that use technology to manage your portfolio. They basically automate the entire investing process.
One of the benefits of using a robo-advisor is that it allows you to invest in a pre-picked portfolio while leveraging investing strategies like tax-loss harvesting. You essentially get a lot of the expertise a human advisor would give you at a fraction of the cost.
These different types of accounts each come with their own costs and benefits. You’ll need to first identify your overall investing goal before figuring out which type of account will work best for you.
How do brokerage accounts work?
Brokerage accounts work like bank accounts with extra benefits. Like a bank account, you can deposit money into them. But instead of letting the money just sit there and collect interest, a brokerage account allows you to buy assets, like stocks or bonds.
Whatever assets you purchase through your brokerage account are yours to keep. At any time you can sell them (although there are some tax implications when you do this) to turn them back into cash. Some assets earn dividends that generate passive income.
You can have as many brokerage accounts as you want and there is no limit to how much money you can invest (except for tax-advantaged accounts). There are no fees to open a brokerage account, although there may be fees to make trades or to work with a financial advisor.
What is a brokerage fee?
Brokerage fees are commissions a broker charges to make trades. Sometimes you are charged a flat fee while other times you are charged a percentage of the assets your broker holds for you.
Where you’ll find the most fees is if you work with a full-service broker. These individuals are paid a fee for the trades they make on behalf of clients. You’re not actually paying them just to make trades though. You’re also paying for the research they do to build your portfolio and the expertise they bring to help you manage your investments.
FAQs
How many brokerage accounts can I have?
You can have as many brokerage accounts as you would like. In fact, you’ll probably want to have several different accounts depending on your goals.
A retirement account, for example, is going to be different than an account where you buy and sell stocks frequently. Retirement accounts are tax-advantaged and because of that, they have contribution limits. If you use an employer-sponsored retirement plan, you might not even get a say in who brokers your account.
A taxable, self-directed account where you buy and sell individual stocks is different than a retirement account. For a self-directed account, you might prefer to use a brokerage firm with an easy-to-use app to make daily trades.
Are brokerage accounts FDIC insured?
No, brokerage accounts are not FDIC insured. But that’s not exactly a bad thing.
The FDIC — or Federal Deposit Insurance Corporation — protects deposit bank accounts (aka your checking and savings account). They don’t protect money invested in the stock market or other investment instruments.
Those investments are protected by a different agency called the Securities Investor Protection Corporation (SIPC). The SIPC will intervene if a broker goes bust. In that event the SIPC will either transfer your portfolio to another firm, or they will work outright to rebuild it, buying new assets to make up for any that are lost.
Like the FDIC, SIPC does come with some stipulations. For one, a brokerage has to be a member that qualifies for SIPC coverage. And that coverage is limited to up to $500,000 per customer.
How are brokerage accounts taxed?
Brokerage accounts are taxed differently depending on the type of account you have and how long you hold assets for.
Retirement accounts are usually tax-advantaged. In the case of a traditional 401(k), this means that you won’t pay taxes on your account contributions, but you will pay taxes later when you withdraw money in retirement. However, in the case of a Roth IRA, you will pay taxes on your account contributions, but won’t pay taxes on the withdrawals in retirement.
Read more: IRA vs. 401(k)
Self-directed brokerage accounts don’t come with any tax benefits. You invest money that has already been taxed and you pay taxes on your investments when you sell.
Selling an asset triggers a taxable event. If you’ve held it for less than a year it is considered a short-term capital gain. This is taxed at your current income bracket.
If you hold an asset for a year or more, however, it will be counted as long-term capital gains. You’ll pay between 0% and 20% depending on your tax bracket. Long-term capital gains taxes are usually lower than income taxes, which is why it’s advised to hold onto a stock for at least a year before selling it.
Summary
A brokerage account gives you the ability to put your money to work. Most firms offer access to securities like stocks and bonds, while others give you access to cost-effective index funds. These are ways you can grow your money beyond collecting interest in a savings account.
You can have as many brokerage accounts as you would like, and those accounts can vary depending on your goals. If you’re not sure where to get started, set a financial goal — like saving for retirement — and find a brokerage firm that gives you the best bang for your buck with respect to that particular goal.
What if the amenities at your apartment community went beyond the usual pool, tennis courts and fitness center — way beyond? How involved might you choose to be in an apartment society, a place that encourages shared involvement with fellow residents?
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In California, an apartment community developer is going beyond the basics to give new meaning to “community,” creating programs like theater troupes, adult enrichment courses and after-school care for residents. And in Denver, some lucky sports fans can look forward to cheering for baseball… from their own rooftop!
Programs that have paid off According to John Huskey of Los Angeles-based Meta Housing Corporation, apartment communities can do more to support families who live there. In building his most recent family-oriented apartment communities, Huskey discovered that there was a real need for on-site programs — and specially-designed spaces — where children could gather after school and continue to learn. That’s why his company has created after-school learning and mentoring programs which are available to residents living in the apartment community at no extra cost.
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The benefits to the children who participate have proved to be substantial. The after-school programs kept kids at home, actively engaged in study — instead of involved in risky behavior. And the learning opportunities increased their confidence at school. These programs have been so successful that Meta Housing Corp. has begun building dedicated, school-like structures in more of their apartment communities to accommodate the programs.
Sharing the arts at home The same is true in Meta Housing Corp.’s senior communities, where education and art programs have been wildly successful. The company first began offering adult enrichment classes to seniors in great-room spaces, noting that the most popular courses involved creativity and the arts. They also noticed that, while the great-room environment was attractive to some residents, most found it too impersonal for social activity. In later generations of their senior communities, they have developed smaller, more intimate spaces for residents to gather to take classes and get to know each other. These new spaces foster a tighter-knit sense of community.
Seniors have enjoyed the enrichment and social aspects of arts classes so much that Huskey’s company went as far as building a 78-seat theater in one apartment community dedicated to a permanent theater troupe. When the theater troupe isn’t giving professional performances on-site, residents are allowed free access to use the theater building, as well.
Take me out to the ballgame… next door! Another approach to creating community at home is featured at Broadstone Blake Street in Denver, Colorado. Alliance Residential is building a modern apartment community right next to Coors Field downtown. (Residents will be able to see the field from the rooftop of the community.) The residence-in-development is thought to appeal to young people — perhaps especially men — who want to live in a walkable area with easy commutes for working and access to downtown excitement, like ball games. Sharing that excitement with apartment neighbors — and built-in proximity — will make living in this community THE place to be a sports fan in Denver.
Toward apartment societies The success of Meta Housing Corp.’s children and senior programs might indicate that apartment communities are evolving. With an emphasis on enriching resident lives beyond basic shelter, these spaces — based on what residents want and need — might become known as apartment societies in the future.
What else might the future hold? Amenities including on-site senior services like medical care and support groups, or family-oriented services like childcare or even home schooling could be possibilities. As apartment living continues to change shape and mature, multifamily community developers around the country will be looking to Huskey’s success to gain insight on new ways to meet the needs of their residents. In the meantime, you can look for ways to create community in your own apartment life today.
10 Cool Apartment Amenities You’re Missing Out On
Photo credit: Shutterstock / Monkey Business Images
Most of us know we should save for retirement, but sometimes it’s tough to get started. If your employer sponsors a retirement plan — especially if it offers a generous match to your contributions — that’s usually the best place to begin. But even if you don’t have a retirement plan through your job, you can still save for the future. One of the best ways to do so is through a Roth IRA.
What Is a Roth IRA?
An IRA is an individual retirement arrangement, a retirement plan that gives you tax advantages when saving for retirement. There are two types of IRAs:
With a traditional IRA, the money you contribute is typically tax-deductible, but the money you pull out at retirement will be taxed at the then-current rate.
With a Roth IRA, you contribute after-tax dollars, but when you retire, you don’t have to pay taxes on the investment returns.
In other words, money in a traditional IRA is taxed when you pull it out, but the money in a Roth IRA is taxed before you put it in.
You make investments in an IRA through an individual retirement account. You have just one Roth IRA, but you can have many Roth IRA accounts. That may sound confusing, but all you really need to know is that you can have a Roth IRA account at your credit union and a different Roth IRA account at your broker, but they’ll both be part of the same individual retirement arrangement. Clear as mud?
It’s important to understand that an IRA isn’t itself an investment — it’s a place to put investments. When you open an IRA account, it’s like an empty bucket waiting to be filled. You might, for instance, buy stocks to put into your bucket, or maybe bonds. Some people use their IRA accounts to invest in real estate, and some simply let their cash sit there, earning interest on certificates of deposit.
Roth IRA Rules and Requirements
There are some restrictions on who can contribute to Roth IRAs. These arrangements are designed to help ordinary working folks to save for retirement by giving them a significant tax break. They’re not meant for people with really high incomes.
For 2012:
If your tax status is single and you earn more than $110,000 but less than $125,000, the amount you can contribute will be limited. If you earn more than $125,000, you can’t contribute to a Roth IRA at all.
If you’re married and filing jointly, your contributions are limited if your household income is more than $173,000. If you and your spouse earn more than $183,000, you can’t contribute to a Roth IRA.
These income limits are based on your modified adjusted gross income. (If you don’t know what that is, don’t worry about it unless you’re close to the limit.) Also note that Roth IRA income limits generally increase every year.
A few other useful facts:
If you’re younger than age 50, you can contribute $5,000 to your Roth IRA in 2012. If you’re over 50, you can contribute up to $6,000.
To invest in a Roth IRA in a given year, you (or your spouse) need to have earned income. In other words, you can’t fund a Roth IRA if all of the money you received that year came from an inheritance.
You can use a Roth IRA even if you have a 401(k) or other retirement plan.
You have longer than you might expect to make your Roth IRA contributions each year — you have until the tax deadline. For instance, if you want to contribute to your 2011 Roth IRA, you still can. You have until April 17th!
You may be able to convert your traditional IRA to a Roth IRA. This gets arcane, though, and is beyond the scope of this article. If you can’t figure out the IRS doc I linked to, consult a professional.
You can withdraw your contributions to a Roth IRA at any time without penalty. But if you try to withdraw the earnings (the returns on your contributions) before age 59-1/2, you’ll have to pay taxes and, probably, a 10% early-withdrawal penalty.
Lastly — and this is important for many people — if you’ve had your Roth IRA long enough, you can withdraw up to $10,000 in earnings without penalty in order to buy your first home. (You’re still taxed on that money, though.) Check out this article from The Motley Fool for more info.
There are other guidelines and provisions, but these are the basics. If you want more info, check out Publication 590 at the IRS website or contact your friendly neighborhood financial planner.
How to Open a Roth IRA Account
Opening a Roth IRA account is easy. If you’ve ever filled out a job application, applied for a credit card, or opened a bank account, you’ve got what it takes to open a Roth IRA account.
Deciding where to open your Roth IRA account is the toughest part of the process. If you already have an investment advisor, ask her for recommendations, but look for other options, too. Many banks and credit unions offer IRA accounts (though you’ll usually be able to invest only in deposit accounts, like CDs and savings accounts).
If you’re willing to make some decisions on your own, you can open an IRA account through a discount broker or mutual fund company. There are a lot of good options out there, but you might start your search with these firms:
I recommend that you set aside an hour or two some Saturday morning to explore the options over a cup of coffee and a bowl of Lucky Charms. With a little research, you should be able to find a company and program that suit your needs. When you’re shopping around for a place to open an IRA account, ask the following questions:
Is there a minimum initial investment?
What sorts of fees will be charged to the account?
Can you make automatic contributions?
What investment options are available?
Are electronic statements available?
Search for a company that suits your needs, but don’t fret about finding a perfect match. Remember: The perfect is the enemy of the good. Find a good match, and then set your IRA account in motion. You can move your money to a new IRA account if the first company you choose isn’t a good fit.
Once you pick a place to open your IRA account, it’s time to fill out the application. Some firms want you to download forms and then mail them back. So 1999! Most places should let you apply online, though. To complete the application, you’ll need your Social Security number, bank account info (so you can transfer funds), info about your current employer, money in a bank account (depending on where you open your Roth IRA account, you might need anywhere from $25 to $3000), and about half an hour of free time.
Some applications will ask a few simple questions about your investment plans and goals. Once you complete the application, you’ll transfer money to your new account. (It’ll probably earn interest until you choose an investment.) That’s all there is to it.
I haven’t mentioned Roth IRAs around here much over the past few years. For one thing, I did a series of articles on the Roth when this site was young. I’ve always just pointed back there. For another, as my own income grew, the Roth was no longer an option. Starting next year, though, I’l be back in Roth IRA land. You can be darn sure I’ll max that sucker out every year. And so should you, if it’s an option.
Do you have a Roth IRA? Where do you have your accounts? What sorts of investments do you put in them? Any advice for newbies who want to open a Roth IRA account but don’t know where to start? Share your advice in the comments below!
I referenced in my last opinion piece in Housing Wire that the Urban Institute publishes a “monthly chart book” that is packed full of relevant data. This recent publication paints a clear picture as to why any Realtor or homebuilder should always include a nonbank lender in their referrals.
Before I open myself up to attacks here, I am using macro data from Urban Institute and there are certainly some banks who serve a broader swath of the market. But let’s start with the basics as to who really is expanding credit access in the market.
When looking at the nonbank share of all loans broken down by investor (Fannie, Freddie, and Ginnie Mae) the glaring data point that stands out is that nonbanks do well over 80% of all loans being made today. More importantly, when it comes to the Ginnie Mae programs, banks contribute only 7% of all the mortgages by the FHA, VA, and USDA. Seven percent is a glaring figure, especially when you look at the dynamics shaping the housing market.
The reason why this stands out is that the distribution of loans in the Ginnie Mae programs has the highest concentration of first-time homebuyers and the largest percentage of minorities. In the FHA program alone, 46.3% of all loans are to Hispanic and Black borrowers and with over 80% of all FHA’s purchase transactions going to first-time homebuyers, the fact that banks only do 7% of these loans is extraordinary.
Why does this all matter? Because the key regulators in Washington spend a lot of their time ingratiating themselves to the banking industry and lamenting about nonbanks. As Chris Whalen articulated in his recent op-ed, “Consumer Financial Protection Bureau head Rohit Chopra said in May that ‘a major disruption or failure of a large mortgage servicer really gives me a nightmare.’ He made these intemperate comments during CBA Live 2023, a conference hosted by the Consumer Bankers Association.”
The fact that regulators spend time “biting the hand that feeds them,” my reference to the fact that it is the nonbanks providing support for the constituency that this administration should care about and certainly not the audience at a CBA conference, is pretty alarming.
As Whalen goes on to highlight, “Chopra’s focus is political rather than on any real threat. But of course, progressive solutions require problems. Three large and mismanaged depositories failed in the first quarter of 2023, yet progressive partisans like Chopra, Treasury Secretary Janet Yellen, and Federal Housing Finance Agency head Sandra Thompson ignore the public record and continue to fret about nonexistent risk of contagion from mortgage servicers.”
I have taken a lot of negative feedback from many who are connected to the current administration about my criticism of things like LLPA fee changes. But in a similar context as Whalen, I am tiring of the politics of an administration and its regulators who focus their time on trying to reign in the independent mortgage banks (IMBs) — the very set of institutions that are responsible for ensuring that access to credit remains for American families who might otherwise be shut out of the market.
One might ask, why do IMBs do so much better here in advancing credit availability? I think it comes down to a core principal: IMBs only do mortgages. Unlike banks, they don’t do auto loans, credit cards, student loans, business lending, lines of credit and more. Banks don’t need to expand their mortgage lending businesses. In fact, the trend has been to retreat from mortgages, not embrace this segment further.
Just look at the data. When it comes to credit (FICO) scores, IMBs are significantly more aggressive. And since credit scores are lower for first-time homebuyers and trend lower in most minority segments, the IMBs naturally prevail as the best option for the homebuyer.
Or look at this data on DTI (debt to income ratio). The spread between median bank DTIs versus nonbanks in the Ginnie Mae program is significant and, frankly, will affect those on the margin of access to homeownership in a significant way.
The fact that banks are only 7% of all Ginnie Mae lending is not by accident. The reality is that they have systematically walked away from any element of mortgage lending that seems to be of greater risk. It’s frankly why companies like Wells Fargo today are a shadow of the mega-market dominators that they once were.
Whalen perhaps said it best stating, “More than any real-world problem posed by IMBs, it is the government in all of its manifestations that poses a significant risk to the world of mortgage finance and the housing sector more generally. Washington regulatory agencies seek to stifle the markets, limit liquidity and impose additional capital rules, strictures that must inevitably reduce economic growth and access to affordable housing.”
We have a labyrinth of federal regulators who failed to see how the significant rise in banks’ cost of funds, driven by the actions of the Federal Reserve, might push some banks into negative basis territory. This scenario, where they were paying depositors more than they were earning on their unhedged assets, put them out of business. And the regulators missed all of this. In all of their angst and speech-making about the risks of nonbanks, they simply overlooked three of the most expensive failures in banking history.
As I write this, I know that I too was once part of the arrogance of an administration that lectured and directed more than it listened at times. But today we face too many risks. Whalen clearly articulates how the GSEs are being directed down a path that will only decrease their relevance over time if left unchecked.
But perhaps the core message here is this: If I were a Realtor or homebuilder, I would make sure that my potential buyers, especially my first-time homebuyers, were in conversation with an IMB (or mortgage broker). If that simple step isn’t being done, then the access to credit challenges will likely only loom larger.
Remember, IMBs are not risk taking entities. They pass through the credit risk into government-backed lending institutions and they get paid a fee to service the loans for these government entities. We need regulators to stop speechmaking at banking conferences about risk here and instead applaud the critical role these companies perform.
More importantly, regulators should spend more time bolstering forms of liquidity to these entities. There are solutions that can help.
But really, the more time they spend politicizing the nonbank story, we risk more bank failures, which are truly the greater risk in the sector. Let’s applaud the IMBs for keeping the doors to homeownership open. And let’s demand that our regulators stop using political platforms to distort others’ views while not focusing on their primary responsibilities.
Accountability will only exist when stakeholders demand it.
David Stevens has held various positions in real estate finance, including serving as senior vice president of single family at Freddie Mac, executive vice president at Wells Fargo Home Mortgage, assistant secretary of Housing and FHA Commissioner, and CEO of the Mortgage Bankers Association.
This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners.
To contact the author of this story: Dave Stevens at [email protected]
To contact the editor responsible for this story: Sarah Wheeler at [email protected]
It’s easy to put off writing a will. The process can seem complicated, not to mention expensive. And, if you’re single and don’t own a house, you may also feel like a will is unnecessary.
But writing a will actually doesn’t have to take a lot of time, or money. And even if you don’t have a lot of assets, having a will can give you peace of mind that your preferences will be followed.
Here’s what you need to know to write your own will.
What Is a Will?
Simply defined, a will (also known as a last will and testament) is a legal document that details what you want to be done with your possessions after your death. Your will may also identify a guardian if you have young children, as well as an executor, the person who will carry out the terms of your will.
What a will doesn’t cover is any asset in which you’ve designated beneficiaries. Named beneficiaries override a will. For example, if you designate all your property to go to your parents but you have a life insurance policy in which your brother is listed as a beneficiary, your brother will get the life insurance payout while your parents would get the rest of your assets.
There are other important documents people may create at the same time as they create a will, and are all a part of an estate plan. These include:
• Living will If you were to become incapacitated, what are your preferences as far as medical treatments? This document legally outlines your wishes.
• Power of attorney If you are unable to make decisions for yourself, who has the authority to make those decisions on your behalf? Power of attorney may be divided into medical power of attorney — the person who has power to make medical decisions for you — and financial power of attorney. Both can be the same person.
• Do Not Resuscitate (DNR) order This document communicates that, in the event of your heart no longer beating or you no longer being able to breathe independently, that you do not want doctors to perform any life-saving action.
• Organ and tissue donation If you were to die, would you want your organs and tissue to be donated? Having a form explicitly stating your wishes can make it easier for loved ones to fulfill your desires, instead of guessing what they think you would have wanted.
Not all documents need to be filled out at once. For example, some people may only fill out a DNR order if they have a terminal illness or are unlikely to recover.
Recommended: Important Estate Planning Documents to Know
Dying Without a Will
Even if you think you own nothing of great value and you’re still working on money management, chances are you do your own things that matter to your family. And if you die without a will, your loved ones may become involved in a complicated court process that will freeze your assets until state inheritance laws are followed.
If you’re single and die without a will, your assets will likely go to your closest blood relatives, which may be your parents or siblings. While this may be the preferred choice for some people, having a will allows you to earmark certain assets (or pets) for a charity or close friends.
It’s also a final chance to communicate your wishes to your loved ones and allows your loved ones to avoid a potentially drawn-out court process.
Dying without a will can become even more problematic if you have children. If you die without a will, the court will appoint a guardian. And, while the court attempts to choose a guardian with the best interest of children in mind, that choice may not be the same choice you would make.
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How To Create a Will
Below are simple steps that can help you make a will.
1. Choosing How You’ll Create Your Will
For people who own a lot of property or assets, and may want to set up trusts as a way to minimize taxes and ensure their heirs follow their wishes, it can be well worth the investment to hire an attorney who can walk them through the basics of estate planning.
However, online templates and will-creating platforms can be sufficient for many people. These DIY options can be much less expensive than working directly with an attorney and are legal and binding provided they are signed appropriately. Some of these online options are even free.
Recommended: How to Write a Will Online in 8 Steps
2. Making a List of Your Assets
In order to leave property to your loved ones, you need to know exactly what you have. So it can be a good idea to start by making a list of all your significant assets, including jewelry, artwork, real estate/land, cars, and bank accounts that don’t name a beneficiary.
If you have retirement funds and/or life insurance, you don’t need to write out who is going to receive the proceeds, as these require naming beneficiaries within the account or policy.
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3. Being Specific About Who Gets What
Once you have a list of all your assets, you can decide who you would like to get what. Here, it’s helpful to be as specific as possible, such as using full names and being detailed in describing the assets.
4. Considering Guardianship
For many parents, including pet parents, guardianship can be the most fraught element of their will. This can be a decision that takes time.
For example, some parents love the bond their children have with their grandparents but worry about how aging parents would handle the physical stressors of raising young kids. Other parents may wish to appoint a sister or brother who already has children, so their own kids can be brought up alongside other children. There is no wrong answer, but thinking through contingencies and what-ifs can be helpful in making the most informed decision.
It can also be a good idea to discuss the idea of guardianship with the intended recipient. Maybe a single uncle loves your kids but is uncomfortable taking on the role of parent, or maybe grandparents have similar reservations as to their fitness for taking on the role.
Recommended: New Parent’s Guide to Setting Up a Will
5. Choosing an Executor
Naming an executor for your will is an important choice. This is the person who will make sure that the wishes laid out in your will are followed. The duties of an executor include paying any remaining bills and debts, distributing your assets, and handling probate (transferring the titling of assets).
If you wish, you can name more than one person as an executor of your will.
6. Signing Your Will and Storing it in a Safe Place
A will is only legal when it is made legal — that is, printed and signed according to instructions. You generally need to sign a will in the presence of at least two witnesses. In some cases (such as if you’re using a document called a “self-proving affidavit” to simplify the process of going through probate court), your signature must be notarized as well.
You’ll also want to make sure you keep copies as directed. Many people keep a physical copy in a safe place, as well as a digital copy. Some might also share their will with their executor, or tell them where it is so it can be easily and quickly accessed if you were to die unexpectedly.
7. Updating Your Will as Appropriate
As your life changes, you may need to return to your will and update it. This could be due to:
• Asset changes. Buying a house, opening an investment portfolio, and other financial moves may lead you to revisit your will.
• Relationship changes. If you get married or have a serious partner, you may want to change your will to reflect that.
• The addition of children or pets to your family.
• The death or incapacitation of an appointed guardian.
It can also be good practice to assess your will after every life change, or every year or so. To update a will, you can either write what’s called a codicil (essentially a document stating any updates, written and signed by witnesses) or create a new will, depending on the extent of the changes.
The Takeaway
While the topic of death and end-of-life wishes can seem overwhelming, creating a will can be relatively straightforward. And, thanks to the many online templates now available, you can often make your own will for a relatively low flat fee, or even for free.
The process of writing a will typically includes coming up with a list of assets, choosing where you’d like each asset to go, as well as choosing a guardian (if you have children) and an executor of your will.
While you may not think you need a will, having one (and updating it as appropriate) can be a gift to your loved ones when they may need it most.
As you get your affairs in order, you may also want to get your financial life organized. One simple step that can help is opening an online bank account, such as SoFi Checking and Savings. With SoFi Checking and Savings, you can spend, save, and earn a competitive annual percentage yield (APY) — all in one place. Plus, you won’t pay any annoying account fees.
Better banking is here with up to 4.30% APY on SoFi Checking and Savings.
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SoFi members with direct deposit can earn up to 4.30% annual percentage yield (APY) interest on Savings account balances (including Vaults) and up to 1.20% APY on Checking account balances. There is no minimum direct deposit amount required to qualify for these rates. Members without direct deposit will earn 1.20% APY on all account balances in Checking and Savings (including Vaults). Interest rates are variable and subject to change at any time. These rates are current as of 6/9/2023. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet. 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. This article is not intended to be legal advice. Please consult an attorney for advice. SOBK0623001
Montana is a beautiful place to live, with its waterways and mountainous terrain. If you live and work in the state, you likely need a great place to park your money. The best banks in Montana give you everything you need to pay your bills and manage your money while also keeping fees to a minimum.
The banking industry in Montana is thriving, with a wide range of brick-and-mortar banks that include local, national, and regional banks. Online banking can be a great option, as well, offering reduced fees and savings interest rates that are above the national average.
14 Best Banks in Montana
This list offers a combination of different bank accounts to help you find the right combination of features to fit your needs.
1. First Interstate Bank
With branches in Montana, Arizona, Colorado, Idaho, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Oregon, South Dakota, Washington, and Wyoming, First Interstate Bank has a fairly large footprint.
You’ll also get fee-free access to ATM withdrawals nationwide through the MoneyPass network. First Interstate’s free checking account waives monthly maintenance fees with direct deposit or at least a $250 daily balance. Account holders under the age of 24 also pay no service fees.
Fees:
$5 monthly service fee (waived with requirements)
$10 overdraft fee
Balance requirements:
$100 minimum deposit to open
No minimum balance requirements
ATMs:
Fee-free at First Interstate Bank ATMs
Fee-free at 37,000+ MoneyPass ATMs nationwide
$2.50 out-of-network ATM fee
Interest on balance:
Up to 0.25% APY on savings accounts
Up to 0.25% APY on money market accounts
Up to 4.29% APY on CDs
Additional perks:
Open a FirstRewards World Mastercard along with a checking account and get 5,000 bonus points
Wealth management services available
2. GO2bank
GO2bank is an online-only bank that integrates all your banking functions into its app. You’ll get most of the features you need to manage your bank account in the app, including mobile check deposit and the ability to transfer money from checking to your savings account.
But what sets GO2bank apart from other online and mobile banking options is its cash accessibility. Not only can you withdraw funds at any Allpoint ATM, but you can also deposit cash at more than 90,000 retail locations nationwide.
Fees:
$5 monthly fee
$15 overdraft fee
Balance requirements:
No minimum deposit to open
No minimum daily balance requirement
ATMs:
Fee-free at Allpoint ATMs nationwide
$3 out-of-network ATM fee
Interest on balance:
4.50% APY on savings accounts
Additional perks:
Deposit cash at 90,000+ retail locations nationwide
Secured credit card helps you boost your credit score with no credit check required
3. U.S. Bank
Multiple national banks have branches in Montana, including U.S. Bank, which operates 21 branches across 14 towns. You’ll find ATMs across Montana, but the bank doesn’t operate in every state. You will, however, enjoy fee-free access to cash while you’re traveling through the MoneyPass network, which currently operates about 40,000 ATMs nationwide.
The U.S. Bank Smartly checking account is an interest-earning account that doesn’t charge fees, provided certain conditions are met. These conditions include having monthly electronic deposits of $1,000 or more, maintaining a minimum average balance of at least $1,500, or possessing an eligible U.S. Bank credit card. Alternatively, you can also qualify for fee-free status if you reach one of the bank’s rewards tiers.
In addition, for a limited time, you can earn a $400 sign-up bonus with qualifying activities.
Fees:
$6.95 monthly maintenance fee (waived with requirements)
$35 overdraft fee (waived up to $50)
Balance requirements:
$25 minimum opening deposit
No minimum daily balance requirement
ATMs:
Fee-free at U.S. Bank ATMs
Fee-free at MoneyPass ATMs nationwide
$2.50 fee per out-of-network ATM transaction
Interest on balance:
Up to 0.05% APY on checking accounts
0.01% APY on savings accounts
Up to 4.75% APY on CDs
Up to 4.00% APY on money market accounts
Additional perks:
Smart Rewards program helps you earn rewards for purchases
Up to $750 bonus for business checking accounts
4. Stockman Bank of Montana
Those who prefer brick-and-mortar banks should take a look at Stockman Bank of Montana. As Montana’s largest family-owned bank, Stockman Bank offers branches and ATMs throughout the state. It might not be the best option if you regularly leave Montana, though, as you’ll pay an out-of-network ATM fee of $1 per transaction in addition to third-party ATM fees.
Fees:
No monthly maintenance fees
$15 overdraft fee
Balance requirements:
$100 minimum deposit to open
No minimum balance requirements
ATMs:
Fee-free at Stockman ATMs
$1 out-of-network ATM fee
Interest on balance:
Up to 0.60% APY on savings accounts
Up to 4.39% APY on CDs
Additional perks:
High ratings for customer service
Enhanced debit card security features in mobile banking app
5. Opportunity Bank of Montana
Based in Helena, Opportunity Bank of Montana is another community bank with access to a nationwide ATM network. There are two free checking account options.
Opportunity Checking has all the basics, but Opportunity Reward Checking issues 1% unlimited cash back on qualifying purchases. To qualify for reward checking, you’ll need to receive at least $1,000 in monthly direct deposits and have at least 10 qualifying purchase transactions on your debit card.
Fees:
No monthly service fees
$30 overdraft fee
Balance requirements:
$100 minimum deposit to open
No minimum daily balance requirement
ATMs:
Fee-free at Opportunity Bank ATMs
Fee-free at MoneyPass ATMs nationwide
$2 fee for ATMs outside the Opportunity and MoneyPass networks
Interest on balance:
Rates not publicly disclosed
Additional perks:
6. Glacier Bank
It might be a regional bank, but Glacier Bank has a heavy presence in its service area. You’ll find 222 branches in Montana, Idaho, Utah, Washington, Wyoming, Colorado, Arizona, and Nevada, and you can use your ATM card at any Allpoint ATM across the globe. In addition to local bank branches, you’ll also get great deals on checking accounts, as well as savings and business banking options.
Fees:
No monthly fees
$30 overdraft fee
Balance requirements:
No minimum deposit to open
No minimum balance requirement
ATMs:
Fee-free at Glacier Bank ATMs
Fee-free at 55,000 Allpoint ATMs worldwide
$2 fee for ATMs outside of Glacier Bank and Allpoint networks
Interest on balance:
Rates not publicly disclosed
Additional perks:
New checking account comes with a thank-you gift
Robust business banking services
7. Chime
If you have direct deposit, Chime is an online banking option that’s worth considering. Chime doesn’t charge monthly service fees on its checking account, and automatic savings features can help move money from your checking account to your savings account regularly. There is no cash deposit option with Chime, but you can withdraw cash from any Allpoint ATM.
Fees:
No monthly service fees
No overdraft fees
Balance requirements:
No minimum deposit to open
No minimum daily balance requirement
ATMs:
Fee-free at 60,000+ ATMs nationwide
$2.50 outside ATM fee
Interest on balance:
2.00% APY on savings accounts
Additional perks:
8. Chase
Chase Bank is another national bank with branches and ATMs in Montana. You’ll find branches in Helena and Billings. One of the best things about Chase is its nationwide presence. Chase has 4,800 branches and 16,000 ATMs spread across 48 states and the District of Columbia.
The most popular account is Chase Total Checking, which is fee-free if you receive at least $500 in electronic deposits monthly, have a daily balance of at least $1,500, or maintain an average combined balance of $5,000 across all your Chase Bank accounts.
Fees:
$12 monthly service fee (waived with requirements)
$34 overdraft fee
Balance requirements:
No minimum opening deposit
No minimum daily balance required
ATMs:
Fee-free at 15,000+ Chase ATMs
$3-$5 non-Chase ATM fee
Interest on balance:
0.01% APY on savings accounts
Up to 3.75% APY on CDs
Additional perks:
$300 bonus for new checking accounts
Autosave makes it easy to transfer funds to your savings account
9. Farmers State Bank
Another community bank is Farmers State Bank, which has locations across Montana. Farmers State Bank offers both e-banking and traditional banking services to meet all your needs. Although their checking accounts require an opening balance, you can find a fee-free option with no minimum balance requirements or fees.
Fees:
No monthly fees
Balance requirements:
$25 minimum deposit to open
No minimum balance requirement
ATMs:
Fee-free at Farmers State Bank locations
$1 non-Farmers State ATM fee
Interest on balance:
Up to 0.03% APY on savings accounts
Up to 2.27% APY on money market accounts
Up to 4.59% APY on CDs
Additional perks:
Consumer and business loans available
Scholarship program available for students
10. Trailwest Bank
Serving Ravalli, Missoula, Mineral, and Flathead Counties, Trailwest Bank is a locally owned bank with checking and savings options. One feature that sets Trailwest Bank apart is its rewards checking account. Your account comes with a debit card that issues unlimited $.10 rewards per purchase with no fees or minimum balance required.
Fees:
No monthly fees
$30 overdraft fee
Balance requirements:
$25 minimum deposit to open
No minimum daily balance requirement
ATMs:
Fee-free at Trailwest Bank locations
Fee-free at Allpoint ATMs nationwide
$2 ATM fee for transactions outside the Trailwest and Allpoint networks
Interest on balance:
Rates not publicly disclosed
Additional perks:
Wide range of personal loans available
Business checking and savings account options
11. Ally
Another online banking option is Ally, which stands apart from other online banks due to its competitive interest rates on checking accounts, savings accounts, CDs, and money market accounts.
Ally pays up to 0.25% APY on checking account balances, as well as 3.85% APY on savings accounts. One perk included with your Ally checking account is spending buckets, a tool that helps you better balance your budget.
Fees:
No monthly fees
No overdraft fees
Balance requirements:
No minimum opening deposit
No minimum daily balance requirement
ATMs:
Fee-free at 53,000+ Allpoint ATMs nationwide
Up to $10 in third-party ATM fees reimbursed monthly
Interest on balance:
0.25% APY on checking accounts
3.85% APY on savings accounts
Up to 4.80% APY on CDs
4.15% APY on money market accounts
Additional perks:
Robo Portfolios available to help you build wealth
CoverDraft helps you avoid overdrafts
12. Independence Bank
When it comes to local Montana banks, Independence Bank is a great option. You’ll find physical branch locations across Montana, each offering the in-person customer service you can only get from a brick-and-mortar bank. Independence Bank offers two checking accounts, including one fee-free option.
Fees:
No monthly maintenance fees
Balance requirements:
No minimum daily balance required
ATMs:
Fee-free at Independence Bank ATMs
Interest on balance:
Rates not publicly disclosed
Additional perks:
Robust business checking options
Special perks for account holders aged 60 and over
13. Valley Bank of Kalispell
Valley Bank of Kalispell is a community bank with more than a century of experience in the area. The bank’s main office is in downtown Kalispell, with an additional loan office in Eureka. You’ll find multiple basic checking accounts with no monthly maintenance fees, each with its own requirements and features.
Fees:
No monthly maintenance fees
Balance requirements:
$50 minimum opening deposit
No minimum balance requirements
ATMs:
Fee-free at Valley Bank ATMs
Fee-free at MoneyPass ATMs nationwide
Interest on balance:
Rates not publicly disclosed
Additional perks:
Easy check ordering
Wide variety of auto and recreational vehicle loan options
14. Wells Fargo
Wells Fargo is a national bank with branches in 4,900 branches in 37 states. You’ll get fee-free ATM use while traveling at 12,000 ATMs, but if you travel to one of the states without a Wells Fargo presence, Wells Fargo will charge a $2.50 fee for each non-Wells Fargo network ATM withdrawal.
This is in addition to the fee charged by third-party ATM providers. Currently, you can earn a $300 bonus by opening an Everyday Checking Account with a $25 deposit and receiving at least $1,000 in direct deposits within the first 90 days.
Fees:
$10 monthly fee (waived with requirements)
$35 overdraft fee
Balance requirements:
$25 minimum opening deposit
No minimum daily balance requirement
ATMs:
Fee-free at Wells Fargo ATMs nationwide
$2.50 fee for non-Wells Fargo ATM transactions
Interest on balance:
Up to 2.51% APY on savings
Up to 4.51% APY on CDs
Additional perks:
$300 bonus on new checking accounts
FICO score available in mobile banking app
How We Picked These Accounts
Banking needs vary from one person to another, so it can be tough to say what the best banks are. First, there’s the national vs. local debate. Someone who travels often might prefer a bank with branches everywhere, while others might prefer the sense of community you get with a local bank.
This list of best banks also takes into account the different banking services available. You might prioritize a free checking account over a high-yield savings account, for instance. In case you’re looking for a checking or savings account that earns money, we also included banks that pay interest on your savings account, CD, or money market account.
Frequently Asked Questions
What national banks are in Montana?
There are several national banks that have branches within the state of Montana, including U.S. Bank, Chase Bank, and Wells Fargo. If you live in Billings or Helena, Chase might work well for you, but otherwise, U.S. Bank and Wells Fargo will have the statewide coverage you need.
What is the most reliable bank?
Nothing’s guaranteed, but if you go with an FDIC-insured bank, you should be covered, even if you choose an online banking or extremely local bank. Large, corporate banks have a bigger asset base, so if stability is your biggest concern, that might be the way to go. However, there are plenty of FDIC-insured regional banks and small, local banks that are well-established and unlikely to go anywhere.
What Montana bank is ranked the best?
Opinions can vary from one source to another, so it’s important to look across multiple rankings to pull out some trends. When it comes to national banks with a large number of bank branches in Montana, U.S. Bank tops a lot of lists.
As for local banks, two banks receive quite a few mentions. Both Glacier Bank and Stockman Bank of Montana get high marks for their customer service and community focus. Since both of these options are among the best banks for keeping fees low, they’re worth considering.
What should I look for in a Montana bank?
With so many Montana banks, it can be tough to narrow it down to just one. Once you’ve ensured a bank is FDIC insured, it’s a matter of weighing the cost against the rewards. That includes perks like rewards for debit card transactions and checking accounts that pay interest. Here are some factors to consider as you’re researching the best banks.
Overall Better Fee Structure
You’ll see plenty of banks that offer free checking account options, but it’s important to look at the big picture. You’ll see account fees charged for the following:
In most cases, you won’t be penalized for not using an account as long as it doesn’t sit dormant for a while, but it’s essential to look at that. Also consider ATM availability. If you think you’ll regularly need to withdraw cash, the best checking accounts will give you fee-free access whether you’re at home or traveling.
Easy-to-Achieve Fee Waivers
Most online banks and community banks have free checking. But many national and regional banks have strings attached to their free accounts. The best checking accounts have attainable fee waivers, if any at all. Pay close attention to banks that require a lot of debit card purchases every month if you tend to spend more using cash or a credit card.
Some fee waivers will also require a minimum daily balance. This goes for both checking and savings accounts. Before choosing an account, make sure you can maintain that balance, day after day, or be prepared to pay the fee.
Low (or No) Minimum Deposits
Banks often require a small deposit on the account holder’s part to establish checking and savings. But you’ll find plenty of free online banking and smaller local banks that waive the minimum deposit to let you get started with no money whatsoever.
Among the banks that require an opening deposit, though, you’ll find options with small requirements. You might find a bank that lets you open a savings account with just $25 or $50 with a free or low deposit to establish checking. If it’s lower than what you’d put into savings with a different bank, that small checking deposit might be worth it.
Competitive Interest Rates
In addition to fees, you’ll also need to look at the return you’ll get on your savings. The best savings accounts offer a high yield without requiring a ridiculously high balance. Take a look at the interest rate and compare it to other banks to make sure you’re getting the best deal.
Variety of Accounts and Loans
Whether the account pays a higher interest rate is a great consideration, but there’s a benefit to having a one-stop shop. You might find community banks and credit unions offer highly competitive interest rate options on personal loans.
Being an account holder might even get you a discount on auto loans and mortgages. Although you can always shop for loans with other banks, some people prefer to have everything in one place.
Digital banking
Over the years, banking has moved to mobile devices and websites. Whether you go with a large or small bank, take a quick look at the digital offerings. The app should make it easy to pay bills, transfer funds, and keep an eye on your accounts. You might find an online bank gives you better options in this area, particularly if you don’t need to visit a local branch and you rarely deposit cash.
Most importantly, make sure the bank’s mobile app works with your particular mobile device. The app can’t help you at all if you can’t access it. Even if you rarely use the app, it’s a handy tool to have if you suddenly need to take a look at your account when you’re away from your computer.
The best savings accounts and checking accounts offer all the amenities you need while also keeping your balances strong. With so many banks and credit unions in Montana, it’s fairly easy to find a solution that will meet your own needs.
Richard Jefferson: I suppose that I am what some would call an industry brat. My mom was in the mortgage business for most of her working career. I spent many weekends as a child in her office, watching and listening to her with her clients. I funded my first loan during my freshman year of … [Read more…]
Get ready to unlock a treasure trove of invaluable insights and expert advice that will revolutionize your vacation rental property. In this Redfin article, we dive deep into the world of vacation rentals, revealing powerful strategies to make your property shine and leave guests in awe. From savvy investments that boost your property’s allure to crafting an unforgettable resort-like experience, forging strategic partnerships, and crafting personalized guest interactions, we’ll equip you with the knowledge to exceed expectations and achieve unrivaled success in the fiercely competitive world of vacation rentals.
Whether you own a vacation rental property in the enchanting city of Orlando, FL, or the picturesque town of San Marcos, CA, this comprehensive resource is tailored to elevate your rental business to new heights. Here are 18 transformational secrets to maximize guest satisfaction, earn rave reviews, and propel your property to the one of the most sought after homes in the area.
1. Make your rental stand out
“To maintain a five-star rental property, you’ll want to go above and beyond tenant expectations. Our data shows that including a washer and dryer, upgrading to newer appliances, and providing freshly painted walls in neutral tones will not only make your rental stand out, but also make the process of finding great tenants faster,” recommends Doorstead. “Moreover, by ensuring access to a responsive property manager, you can guarantee that all aspects of the home are well taken care of, truly enhancing the tenant experience.”
2. Pretend your vacation rental is a five-star resort
“The most important thing to remember about managing a vacation rental is that this is the hospitality business, not the landlord and tenant business,” shares Todd Ortscheid, Co-Owner of Revolution Rental Management. “You have to think of what you’re offering more like a hotel or resort than a traditional rental property. This means cleanliness, fast response time, desirable amenities, and a well-maintained property. The more you think of your property as a five-star resort, the better off you’ll be.”
3. Consider creating strategic partnerships
“We recommend partnering with a company that specializes in exclusive vacation rental portfolios. If your property is a top-tier, five-star rental, it’s essential to align it with a company whose branding and services cater to the discerning needs of luxury clientele,” recommends Gary Doss, Co-Owner of SoCal Vacations. “Larger companies that offer a broad range of properties may not be able to meet the high expectations and unique demands of this premium market segment.”
4. Personalize communication
“To ensure a successful guest experience, effective communication plays a pivotal role. It is crucial to make your guests feel genuinely welcomed, leaving a lasting impression. One way to achieve this is by remembering their return and incorporating delightful surprises. Consider offering their favorite snacks accompanied by a bottle of wine, arranging fresh flowers, and providing a personalized welcome message upon their arrival,” recommends Ellie Paget, CEO of HomeSlice Stays.
“Prompt responsiveness is of utmost importance when it comes to addressing guest requests or concerns. Aim to respond to them in a timely manner, never exceeding a 15-minute timeframe. This level of attentiveness demonstrates your commitment to their satisfaction and enhances their overall experience.
By prioritizing personalized communication, you can create an exceptional guest experience that fosters satisfaction and builds positive relationships.”
5. Decorate with style
“When it comes to guest experience and satisfaction, décor has the potential to make a significant difference in how guests perceive your rental property. To ensure an exceptional experience, it is crucial to infuse your property with chic and stylish decor, incorporating appealing color schemes and well-curated furnishings,” recommends Ellie Paget.
“To achieve a truly unique and captivating aesthetic, consider leveraging the expertise of our dedicated team. They can assist you in designing your home, helping you create an environment that not only catches the attention of potential guests through eye-catching marketing images but also provides a one-of-a-kind experience during their stay.
By investing in stylish decor and enlisting professional guidance, you can elevate your rental property’s overall appeal, command top dollar, and leave a lasting impression on your guests.”
6. Make sure you have security and safety measures
“To prioritize the safety and security of your guests, it is important to emphasize on security and safety measures. Install reliable locks, smoke detectors, and fire extinguishers. Provide clear instructions on emergency procedures and ensure your guests feel secure throughout their stay. A focus on safety gives guests peace of mind and contributes to their overall satisfaction,” recommends Damir Dumo from Chalet.
“Smart locks with rotating access keys for each guest are must-haves nowadays. We use a smart home automation system that can be remotely managed for all of our homes.”
7. Leverage guest’s reviews
“Pay attention to guest feedback and reviews,” says Damir Dumo. “Actively seek feedback from your guests and use it to improve your property and services. Address any concerns promptly and implement suggestions that align with your goals. By consistently evolving based on guest feedback, you’ll maintain a high level of guest satisfaction and enhance your reputation as a top-notch rental property.
Ask for a five-star review on the day the guest checks out. If it wasn’t a five-star experience, ask the guest to give feedback directly to you.”
8. Discover your secret formula to winning a rave review
“We’ve found that rave reviews are the secret to creating successful, five-star rental properties,” says ALL IN. “This begins with maintaining excellent communication with our owners, guests, and community management teams. Maintaining a meticulous standard of cleaning, offering modern amenities, and assuring attention to every detail are non-negotiables that must always be upheld as a standard.
We invite the input of our guests and respond promptly to their questions, needs, and feedback. Creating memorable experiences keeps them wanting to share their experience with others.”
9. Elevate your guest’s stay with tailored upsells
“When catering to today’s travelers, it’s important to go beyond providing accommodation and focus on creating memorable experiences. Enhance your guests’ stay by offering exciting upsells and activities that align with your property’s location,” says Kennedy Williams from Mount.
“For instance, if you’re near a beach, consider providing e-bikes, or if you’re situated by a lake, offer kayaks. By incorporating these quality add-ons and upsells, you eliminate the guesswork and reduce trip planning stress for your guests, ensuring your property is a memorable stay for all the right reasons.”
10. Elevate your guest experience through realistic promises and delightful surprises
“The top-performing property managers consistently prioritize the basics of a well-maintained property, comfortable beds, and clean linens to create a memorable guest experience. They also excel in attentive guest communication, providing timely and personalized responses that make guests feel valued and supported,” mentions Hostaway.
“They’re also careful in setting realistic expectations by promoting property highlights without overpromising, along with adding delightful touches like unique decor, outdoor games, or welcome gifts, further enhancing the guest experience.”
11. Thoughtfully prepare your guest’s needs before they arrive
“Take the time to think about your guest experience from their perspective,” recommends Floorspace. “By anticipating their requests, you can provide the amenities, information, and special touches that will make their stay seamless and memorable, while also reducing the amount of communication required.
It’s also helpful to keep in mind the benefits of providing a positive guest experience, which can’t really be overstated. Not only will you garner more five-star reviews, but you’ll also increase your chances of repeat and direct bookings.”
12. Set a competitive pricing strategy
“One thing that often gets overlooked is pricing strategy. You can have high occupancy throughout the year, but if your pricing is not competitive, you will not reach your highest earning potential,” recommends Humberto Pacheco, CEO of Naya Homes. “You will need to research similar listings in your area and take into account factors such as location, size, amenities, and seasonal demand.”
13. Automate communication
“Automating communication in a natural tone through templates or automated messages streamlines your interactions with guests while maintaining a personalized touch,” suggests Alex Withorn from Thorn Point Vacation Rentals. “This approach allows you to experiment with different messaging strategies, refine your communication based on guest responses, and deliver consistently excellent customer service without guests realizing it’s not manual correspondence.
Investing effort in repeat business can significantly contribute to ensuring another great review. By fostering strong relationships with guests and providing exceptional experiences, you increase the likelihood of them returning, resulting in positive reviews from satisfied repeat guests.”
14. Harness the power of preemptive reviews
“When you give guests a five-star review, specifically letting them know before they leave their own review can encourage reciprocity and forgiveness. By expressing gratitude and acknowledging their positive experience, you create a positive feedback loop that encourages guests to leave similarly favorable reviews,” says Alex Withorn from Thorn Point Vacation Rentals
“Being upfront about expectations and educating guests about the review process is crucial for ensuring positive reviews. Transparent communication sets the stage for mutual understanding and helps guests provide feedback that aligns with their expectations, leading to more favorable reviews.”
15. Ensure your guests have a streamlined experience checking in and checking out
“Being in the cleaning industry for so long, I found that attention to detail, open communication, consistency, and streamlined processes leads to a five-star rental experience,” says Celestial Cleaning Service. “Every little thing counts, from beginning to end. The way your entrance is presented with wine and chocolates and a personalized letter, to the ease of checking out. Ensuring all staff members associated with delivering a five-star experience is up to date with your standards in delivering a great experience is key.”
16. Create a cleaning schedule
“To ensure a consistently high standard of cleanliness and maintenance in your vacation rental, it is important to establish a comprehensive cleaning schedule. This schedule should encompass tasks that need to be performed daily, weekly, quarterly, and seasonally,” recommends Jacqueline Barbosa from Morfin Cleaning Services.
“Examples of such tasks include carpet cleaning, window washing, and high dusting. Consider small details such as re-caulking, checking batteries, lightbulbs, filters, and even painting the unit if necessary. It is crucial to use quality products and professional cleaning services to ensure that every area, including appliances and windows, receives proper care.
Attention to detail is key when managing a rental property. In platforms like Airbnb, linens and bedding should be in excellent condition, and all appliances must work properly. Guests should have access to all necessary amenities such as toilet paper and soap, and a complete set of cooking utensils should be provided. It is important to regularly inspect these details and replace anything that is worn or damaged.”
17. Conduct inspections
“To maintain a high-quality vacation rental, it is important to regularly inspect, maintain, and upgrade the unit, including appliances and amenities,” says Jacqueline. “Providing a comprehensive guide for guests, which includes information on internet access, streaming services, local attractions, and useful tips, enhances their experience.
“Essential amenities and toiletries such as toilet paper, soap, and dish soap should be provided and regularly restocked after every visitor. Maintaining open communication with guests, checking in upon arrival, and seeking their feedback throughout their stay are key to providing excellent customer service and ensuring a positive guest experience.”
18. Provide uninterrupted guest service anytime, anywhere
“Providing a smooth and memorable guest experience is essential to maintaining a five-star rental. This involves communicating promptly with guests (no matter what time of the day or night), solving guest problems in a timely manner, and giving guests the tools to create the vacation of their dreams,” shares Sam Ripley from LocalVR.
19. Provide perfectly maintained appliances, ample storage space, and an inviting ambiance for your guests
“When it comes to keeping a five-star rental property, I recommend that all appliances and technology be well maintained and in excellent working condition,” suggests Norma Reyen, Professional Organizer and Owner of Simply Fresh Interiors. “I also recommend making sure that there is enough storage space, such as drawers, cabinetry, shelving, and hanging options. Having an appropriate amount of storage allows for a clean and decluttered space that all guests can enjoy. Lastly, maintaining a fresh-smelling home with good lighting and an airy ambiance will make your rental home memorable.”
20. Monitor booking requests
“Be communicative and professional, but warm and friendly. Don’t allow anyone to book without maintaining a standard; for example, guests must have previous and recent positive five-star reviews,” recommends Michael Skomina, from Host Easy BnB. “Liaise with your cleaners and laundry service, as they are the crux of the business and the most important asset to your success. Follow up and inspect after cleans; if necessary, guide and provide feedback in positive ways to help your services provide the best possible standard that you desire.”