By Peter Anderson13 Comments – The content of this website often contains affiliate links and I may be compensated if you buy through those links (at no cost to you!). Learn more about how we make money. Last edited April 26, 2011.
Over the past week or so I’ve been hearing rumblings from various talking heads that the government should consider, or has considered, changing the rules when it comes to the Roth IRA and their tax free withdrawals at retirement. In some scenarios some people would just like to do away with the accounts altogether. The reasoning? They allow for too much tax revenue to be lost, and with government entitlements growing every day, they’re going to need more tax revenue.
While even a year or two ago I would have dismissed this type of thinking as it would represent a significant betrayal of savers and investors, the more I see our government spending, the more I’m inclined to not rule out the idea that the Roth IRAs as we know them may not always be around. They’re just too tempting of a target for our politicians and their big spending ways.
So what are some of the ways that people are predicting that Roth IRAs could change in the future?
Roth IRA Become Taxable At Retirement For Some?
One of the ways that folks are suggesting that Roth IRAs could change in the future is that politicians could institute a tax of some sort on taxpayers over a certain income threshold, or those with what one writer in the New York Times calls an “excessive balance”.
So in one scenario, say you make over $250,000, you’d be taxed 5% on your Roth withdrawals. Or they could do something like charging tax on earnings through a capital gains tax of some sort. The possibilities are endless.
At the most extreme end, the federal government might try to tax the earnings on a Roth after all, say through the capital gains tax, which is currently at 15 percent for long-term gains but could go up in the next few years. Or it might levy some sort of an excise tax on excessive balances, however those might be defined.
Roths are especially useful for estate planning purposes. Regular I.R.A. holders have to start taking money out once they reach the age of 70 and a half, but Roth owners don’t have to take money out during their lifetimes. Heirs of Roth holders, meanwhile, pay no income taxes when they cash out of the inherited account and can spread those distributions over an entire lifetime, allowing for decades more of tax-free growth thanks to the wonders of compound interest. Some part of this could certainly change.
So the author seems to thinks that some of the other benefits of a Roth IRA, including no required minimum distributions and inheritance provisions, could be phased out – or changed to include some sort of tax.
Forced Withdrawals From Roth IRA
Some say that the Roth IRA is a drag on the economy because the money can sit in the account indefinitely with no required minimum distribution. An article in the LA Times yesterday says as much:
All of which makes Roths a perfect “fiscal Frankenstein.” In return for little more than ordinary upfront taxes, Congress waived untold billions in future Treasury receipts. Then, too, Roths could be a drag on the U.S. economy. Since no withdrawals are required, assets can lie idle indefinitely.
I can’t say I agree with that idea that because the money is in someone’s investment account growing – that somehow they’re a drag on the economy. To me it speaks to the mindset that far too many have that somehow the government owns everything and is only being gracious and allowing us to have a little taste of our own money. I also don’t agree that having money site idle in the private sector is somehow worse for the economy than allowing the public sector to spend it all for us. In the end most will be withdrawing it, and I think having the money in the private sector to actually have people purchasing things, creating jobs, and creating more tax revenue that way is the better way to go.
Include Roth IRA Withdrawals In Calculating Tax On Social Security Benefits
Another idea that some have put forth is the idea that the government could change it to that people would have to include their Roth IRA withdrawals in retirement as regular income when coming up with the tax due on their Social Security checks. Of course this again would mean more taxes to the government.
Will You Continue Using The Roth IRA?
So with all this speculation out there, do you think that the government would ever go down this road of making Roth IRAs taxable at withdrawal, through capital gains taxes or by including it in social security income? Does it give you pause when thinking about investing in a Roth, or will you continue to invest there anyway because it’s all just speculation?
Tell us your thoughts on the Roth IRA and if they’ll ever end up making changes to make them taxable at the front end and back.
This is the 2nd installment from my buddy Eric Moorman, who I consider to be a real estate investing genius. Be sure to check out his first post “How I make $250,000 a year investing in real estate“, in case you missed it.Also, if you want to learn more about real estate investing, be sure to subscribe to our free newsletter below.
It is no surprise; there are a LOT of Foreclosures in the Real Estate market right now.
It is also no surprise these houses can be bought at steep discounts.
In fact, Foreclosures, in my opinion, are the hottest thing going in Real Estate investing.
The market is full of them, and the banks are holding thousands back, so as not to flood the market even more. As most of you know, banks are not in the business of Real Estate. They are in the business of loaning money.
When a bank gets a Foreclosure, it is a toxic asset on the banks books. Now, more than any other time in history, banks are dumping these toxic assets for pennies on the dollar.
Before you quit your day job and decide you are going to get rich buying and selling Foreclosures, know this:
The word Foreclosure means several different things and has several different stages. Depending on what stage of Foreclosure a house is in will depend on the amount of risk you will take on. Let’s look at the different stages of Foreclosure and the positives and negatives to buying in each stage.
Before you read further, understand that each state handles Foreclosures differently. The timelines and examples I give below will not necessarily be the standard for where you live.
The Pre-Foreclosure
The first stage of the Foreclosure process is known as Pre-Foreclosure. This means the individual who owns the mortgage is behind on their payments. Depending on the bank, the payments could be between 3-12 months behind. Yes, some banks do not start the Pre-Foreclosure period for 12 months!
At this stage, the owner is still living in the house. Interest and penalties are accruing on their loan, but the only thing that is really happening is their credit score is going down (rapidly) and they are getting a lot of letters in the mail from the bank. The bank has not decided to go full blown foreclosure yet, as they are attempting to work something out with the home owner and save themselves the very high cost of the foreclosure process.
The positive to buying at this stage of the foreclosure process is you obviously have a motivated seller. Depending on their situation, they may be willing to sell their house very cheap, in order to avoid foreclosure and save what they can of their credit.
The negative is they may not have a lot of equity in the house, and therefore their motivation may not be a factor. It does not do an investor any good to buy a house when it is worth what the seller owes on it (or as is the case with many properties in this market, the house is not worth what the seller owes).
You look for motivation but you make purchases on equity.
Without getting too deep into investment strategy, know that in some cases it may be worthwhile to make up delinquent payments and purchase the house with creative financing. We will not discuss that in this post, but know it is a viable option and one we will discuss in future posts.
The Short Sale
The next stage in the Foreclosure process is when you can buy the house on a Short Sale. A Short Sale is when the bank is willing to take less for the house than what is currently owed on the property. There is no set time period for when a house goes from Pre-Foreclosure status to the bank being willing to do a short sale on it.
When the bank has decided it will take a Short Sale, it has basically come to the conclusion the current homeowner is not going to be able to make up their back payments and continue with the mortgage. The only reason a bank will accept a short sale is to forego the long process and high cost to Foreclose on the delinquent mortgage.
There are a few positives and a LOT of negatives to buying in this stage of Foreclosure. Some investors love to buy at this stage, but as you will see it is a lot of work, takes an extremely large amount of time and rarely produces a deal.
The positive to buying a house as a short sale is this, you can get a very steep discount…. That is about it!
The negatives are the following: The current homeowner has to apply for a Short Sale, sending in a lot of financial information basically convincing the bank they are no longer in a position to pay their mortgage.
This takes forever!
Once the house has been approved for a Short Sale, the current owner must agree to your price and then send it to the bank for approval. This process also takes forever (several months). A short sale can easily take 6-9 months to go through, and I have seen cases in which it took over one year.
Here is the scary reality of short sales, it may be to the very end and you think the deal you have been working on for months is about to go through and BOOM, the bank rejects it. There is money to be made in Short Sales, but it is definitely not a method to base your investment business around.
Going to the Auction
The third stage of the Foreclosure process is when the property is being auctioned at the courthouse steps. This is the most dangerous time to buy, and only seasoned investors should attempt to buy at the courthouse auction!
At this stage, the bank has gone through the legalities of the Foreclosure process and the house is going up for auction. The bank will send a representative to bid at least what is owed on the property, and anyone who is willing to pay above that can buy the house.
The positives of this are, if there is a ton of equity in the house, you may have a shot at getting a good deal. Here are the negatives. The individual often times may still be in the house at this stage! Even if you buy it, they may trash it as they are leaving. Hence, you have no way to calculate what your repairs will be on the house.
Also, at this stage, the bank does NOT necessarily remove all liens from the property. You may buy the house and discover there is a mechanics lien, a lien from the city or various other liens that YOU have now inherited.
Also, every state has a period of redemption for the previous homeowner to catch up the mortgage and all of the fees, after the auction sale.
Granted, this is VERY unlikely, but it is something to consider. Also, at the courthouse steps, the buyer is required to put a large sum of money down as a deposit, with a very small window to come up with the remaining balance.
If you are not a cash buyer, you will have a very hard time buying these properties. Once again, there is money to be made by purchasing homes at the courthouse auction but it is very dangerous, and there are several things you may discover once you purchase the property that completely change the financial outlook of the deal.
If the phrase “Buyer beware” was ever appropriate, it is when buying at the courthouse steps!
REO…Speedwagon? Not quite
The final stage of the Foreclosure process is my favorite. This is the point where the house becomes an “REO.” Once an auction on the courthouse steps takes place and no one bids more than the bank’s bid, the property goes back to the bank and becomes an REO or “Real Estate Owned” property.
At this point, the bank has been dealing with this toxic asset for quite a while, with no money coming in and only money going out! You must understand the bank’s costs, to understand why they are extremely motivated to sell these properties.
As previously stated, the bank has had this non-performing asset on their books for a long time. They have spent money on attorney’s fees, property preservation, insurance etc. Most big banks have thousands of these non-performing assets and they need them off the books badly.
The positives to buying at this stage are many. First, once the property is an REO, when the bank sells the property, they are required to deliver a clean title and remove all liens. Hence, you will not have any surprises once you have bought the house.
Also, no one will be living in the house at this point. The bank has seen that the previous owners have vacated the property, with no chance of redeeming their loan. The negatives to buying at this stage are, the previous owners often leave the house in poor condition. Depending on how you look at it, this may not be a negative at all. The worse condition a property is in, the better the discount. When you become good at estimating repairs, this is simply a factor that will go into your offer.
This may surprise you, but as investors, the house matters very little when it comes to getting a check.
I am not saying the condition of the property plays no role when deciding to pursue an investment, but the condition of the house is not the main factor.
My point is, do not stray away from houses that smell like cat pee or are in bad shape, there is money there! Many of the current houses on the market will not be financeable through a bank, due to their condition. This only serves as a bonus for you, the investor!
As of this writing, Fannie Mae, Freddie Mac and FHA (Federal Housing Administration) alone hold nearly 250,000 REO homes. As an investor, the foreclosure market is definitely something you should be paying attention too.
While there are various stages of foreclosure and each stage carries a different amount of risk, each stage also allows the opportunity to create a huge amount of wealth. While there are several avenues to focus on when trying to make money in Real Estate, in this market, few come close to the power of harnessing equity out of bank distressed REO’s.
Focus on your education and learn the foreclosure process, and then go make some money!
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If you’ve been declined coverage from an insurance company, don’t assume that you can’t get the protection that your family needs. There are plenty of affordable insurance options.
For those who cannot get approved for a basic term life policy, guaranteed acceptance life insurance is the solution to their problem. Being exactly what it sounds like, there is not a single person turned away or left uninsured if you want a guaranteed acceptance life policy. On paper, this sounds like an excellent option for insurance coverage.
Even if you’ve been declined in the past for life insurance, this may not be your only option, but it’s important that you understand all of your options and that you realize even if you have terrible health, you can still get life insurance coverage.
Smokers, those with medical conditions, and seniors over 50 seeking life insurance with health conditions are the majority who look to these types of life insurance policies, hoping to be able to leave something behind for their families.
Anyone who has a health problem or has any risky behavior is going to be classified as a “high-risk applicant,” which means higher premiums or possibly being rejected.
Many companies have a guaranteed acceptance life insurance policy available and a little searching will do you worlds of good in getting the best rates. A policy is only as good as the company that offers it, and knowing whether the company you choose is right will take a little time and some research, but can wind up saving you quite a bit.
Note: If you are considered to be a high risk individual, see here for more high risk life insurance quotes.
What You Need to Know About Guaranteed Issue Life Insurance
The first thing to know about a guaranteed issue life policy is that no medical examination, medical history, or tests are performed; simply apply and you’re approved. The lack of underwriting means you can be approved within minutes. Many clients considered ‘high risk’ will find this type of policy to be the only available to them, and it comes with a price.
See here for more information regarding term life insurance that does not require a medical exam.
With the majority of clients being ‘high risk’ the premiums you’ll pay on the policy are more expensive. Rates will vary from company to company, but you’ll always wind up paying more than you would for a simple term life policy. If you want cheap life insurance protection, then you’ll need to find a company that will accept you with one of their traditional plans.
Benefits of Guaranteed Acceptance Life Insurance
There are some obvious advantages to these guaranteed acceptance life insurance plans, the biggest one is that anyone can buy one of these plans. Anyone can purchase one of these plans and get the coverage that they want. Nobody should have to go without the insurance protection that their family needs.
Perhaps one of the most beneficial features of a guaranteed acceptance life insurance policy is that it can be whatever you need it to be, term life or permanent. With a term life policy, your rates are set and won’t increase with your age while a permanent policy will be there for the rest of your life. The freedom to choose what policy you want makes a guaranteed acceptance life plan unique.
Another benefit to these plans that you won’t find with other types of insurance coverage is how quickly that you can be accepted for the insurance policy. With a traditional life insurance policy, you’ll wait weeks to get life insurance, or even month. Guaranteed acceptance gives you coverage in hours.
Taking the time to search and compare premiums will help you find the best guaranteed acceptance life insurance policy available. Companies will be quick to offer free quotes and estimates, features that can help you find the right company faster. If you can’t find the information you need from their site then contact their customer service, someone in the company is sure to be able to help you.
What Questions Do They Ask?
For the most part, insurance companies will ask the same or similar questions for a guaranteed life policy. The trick is that some companies will decline you on specific conditions while others will not.
How do you know who to go through? That’s the good news. You don’t!
That’s what we’re here to do. 🙂
We just need to ask some basic questions about your previous conditions and we’ll help align you with the right guaranteed issue insurance company.
Does Guarantee Issue Insurance Offer Same Death Benefit?
In most cases, the answer is no. Since the insurance company is taking on more risk by insuring higher risk individuals, the maximum amount of death benefit you can get is substantially lower. Face amounts will range between $5k-$50,000.
There are some carriers that will issue higher amounts, just be prepared to pay exorbitant prices. For most applicants that are looking for life insurance protection, this isn’t nearly enough life insurance. The smaller plans would leave their loved ones with debt leftover. Which means that if you’re looking for an insurance policy that is going to give you more coverage than that, you’ll have to go with a normal life insurance plan. The other option is that you can buy two smaller plans to get the coverage that you need.
Sometimes, too, you won’t have the same death benefit payout getting what’s called a “graded benefit”. A graded benefit means that if you die within 2 years of taking out the policy, you’ll only get the premiums you paid plus a certain amount of interest. These graded benefit clauses are the way that the insurance company offset the additional risk.
The majority of no-exam plans are going to come with the graded benefit components. This shouldn’t keep you from purchasing one of these plans, but it’s something to be aware of. The only way that you would receive the full benefit is if you were to die because of an accident.
Getting you the information you need to make an informed decision will show you how dependable a company can be, and with something as important as life insurance you need a company you know you can trust.
Pros and Cons of Guaranteed Issued Life Insurance
Guaranteed Acceptance Life Insurance policies have both advantages and disadvantages. On the one hand, they do not require a medical exam or health questions, guarantee acceptance regardless of health status, and may be a suitable option for individuals with pre-existing medical conditions or those seeking only a small amount of coverage. The death benefit is typically paid out tax-free.
On the other hand, these policies are often more expensive than traditional life insurance policies, have lower coverage limits, and have a graded death benefit that limits the benefit payout if the insured dies within the first two years of the policy.
As a result, these policies may not be suitable for those who require a large amount of coverage for income replacement or other financial needs.
Pros
Cons
– No medical exam or health questions required
– Typically more expensive than traditional life insurance policies
– Guaranteed acceptance, regardless of health status
– Lower coverage limits than traditional policies
– Can be a good option for people with pre-existing medical conditions or older individuals who may have difficulty getting traditional life insurance
– Graded death benefit means that if the insured dies within the first two years of the policy, the death benefit may be limited
– Can be a good option for those who only need a small amount of coverage for final expenses or to leave a small legacy
– May not be a good option for those who need a large amount of coverage for income replacement or other financial needs
– Death benefit is typically paid out tax-free
– Before purchasing, it’s important to compare rates from different insurers and consider other types of life insurance that may be a better fit for the individual’s needs and budget.
How Much Life Insurance Do You Need To Buy?
It’s vital that you get the right amount of life insurance protection that you and your loved ones need to how the money that they need. Getting the perfect size life insurance policy is a delicate balance between not paying for more insurance than you need and buying enough coverage.
If you’ve already paid off your mortgage, and you don’t hold a lot of debt, you can consider getting a smaller insurance plan, like one of the guaranteed acceptance life insurance policy. They are built to give coverage for people who don’t have any major debts.
The next factor to consider is your salary. As long as you don’t have anyone who needs your paycheck, then you can buy one of these guaranteed issue plans and they will provide enough protection.
After that, you should also consider any future expenses that your family may run into. You can’t predict the future, but there are some bills that you know they will encounter. The best example of this is college tuition. When your children are heading off to college, your spouse will have to pay for those bills with only one income, which can be difficult.
There are more factors that you’ll need to look at based on your situation to determine how much life insurance you and your family need. Our independent insurance agents can help you decide how much insurance that you need, and they can also help you find the perfect plan to fit your needs. These guaranteed issued plans are a great way to get the coverage that you need, but they aren’t for everyone.
Is A Guaranteed Acceptance Life Insurance Policy Right For Me?
Because there are so many different types of insurance policies, it can be difficult to decide which type of plan fits your needs. While these guaranteed accepted plans are an excellent option for anyone that’s been declined for life insurance policy, don’t automatically assume that they are your only option. If you have severe preexisting conditions, like heart problems or diabetes, guaranteed acceptance is one option, but not necessarily your only option.
Every insurance company is different, which means all of them are going to view your applicant through different medical underwriting. There are dozens of insurance companies that specialize in insuring high-risk applicants with various conditions and health problems. These companies have experience working with applicants that are in less than perfect health and they will give you a much greater chance of being accepted for life insurance and will deliver much lower rates.
Additionally, our agents have years of experiencing working in the insurance market, which means they know the companies that specialize in high-risk applicants and can get you the best chances of getting insurance coverage at an affordable rate.
Going with a life insurance plan that requires medical underwriting is going to be much cheaper than a plan that is no exam. These guaranteed issue policies should always be used as a last resort for life insurance, unless you have a specific reason for choosing one of these plans.
Now that Tarek and Heather El Moussa have joined forces in holy matrimony and in the business of flipping homes and in starring on their own show, “The Flipping El Moussas,” we figured it was only a matter of time before they took the next step that all reality star couples take.
Can you guess? They’ve embarked on selling their own line of home decor.
Pretty much all big-name reality TV stars hawk their own products, of course. Chip and JoannaGaines peddle home accessories galore at Magnolia and Target. Property brothers Drew and Jonathan Scott launched a furniture line at Living Spaces. Dave and Jenny Marrs of “Fixer to Fabulous” have a slew of outdoor wares at Walmart. Even Tarek’s ex-wife, Christina Hall, has her own bracelet line. In short, the list of celebrity-endorsed products is nearly endless.
So it stands to reason that the El Moussas would also enter into the fray. Yet while I was excited to check out their offerings, I have to admit I was somewhat underwhelmed.
Is Tarek and Heather El Moussa’s home decor line a flop?
Home by Tarek & Heather currently offers only four products: two candles priced at $38, one candle priced at a jaw-dropping $249, and a dispenser of hand soap for $16.
All “smell lovely,” says Heather in a promotional video.
Apparently, these four products are just the start, with more to come—at least according to the second episode of their show, when Tarek and Heather were celebrating the arrival of some samples. They are not only sniffing candle scents, but also plumping pillows and nuzzling what looked like whisper-soft throws.
Tarek describes their new line: “In all of our flips, we’re going to put in candles, we’re going to do floor mats, rugs, maybe blankets, like homey stuff. Like comfy rugs and pillows.”
“So when people walk in, they know it’s a home by Heather and Tarek—er, Tarek and Heather. Sorry,” Heather says with a laugh.
I’m sure I wasn’t the only one who immediately wanted one of those throws. Given my anticipation, I was sorely disappointed to scour their website with nary a throw in sight—just four freaking products, one of them a $249 candle.
Could they have been overly eager to get to market, or just painfully naive about marketing home products? Tarek is known for selling homes, but selling home decor is a whole different game.
To find out what they might have been thinking, I reached out to consummate branding and marketing expert Klint Briney, founder and CEO of BRANDed Management. His company has worked with celebs, including Ed Sheeran, LeAnn Rimes, Mariah Carey, and Mark Cuban among others.
I asked him why the El Moussas launched so few products right out of the gate—shouldn’t they have waited until they had more to offer? Briney thinks not.
“By entering the saturated market of celebrity brands and home goods, a more risk-averse approach would be to initiate a small launch to test the market,” Briney says.
In other words, less is initially more when it comes to these lines.
“They chose two hero products that are both gender-neutral, accessibly-priced, and shelf-stable,” Briney continues. “In a time when most Americans struggle with decision fatigue, fewer offerings can often initiate higher conversion rates, as they are not bombarding the consumer with too many choices.”
I heard that. When I do a search on Amazon for one specific product and get 20 pages of results, I am usually overwhelmed by the choices and hold off on my purchase.
Tarek and Heather’s products haven’t been picked up yet by big-box stores like Target and Walmart, where their contemporaries have a presence? Is that a bad sign?
Not really, according to Briney.
“It appears they are taking a more targeted and narrow approach upon launch, as it is critical for them to ‘win their own backyard’ before employing a more large-scale, blanketed rollout,” Briney continues. “Their items are strategically branded Newport Beach and Los Angeles, the two markets they work and reside in. This sort of data is great presentation material when meeting with mainstream retailers, which often leads to better terms.”
In other words, you start out small and targeted, prove your work in a niche area, then your business offers a lot more value to a big-box store.
“They can learn a lot by the recent acquisition of Aussie brand Aesop,” Briney adds. This producer of skin, hair, and body care products was recently “acquired by Loreal for $2.5 billion, the largest in company history.”
If they’re lucky, Tarek and Heather, after starting with a few candles and some hand soap, could end up with a billion-dollar deal with a major international corporation.
“In an era of cancel culture and the fast rise and fall of most celebrity careers, the fact that Tarek has had a show in production over 10 years, along with reinventing himself after a high-profile divorce, shows his marketplace viability,” Briney concludes.
Forget the throws. Maybe instead I should buy stock in the El Moussa company.
If you’re in the market for a conventional or Department of Veterans Affairs (VA) home loan and come from a military background, a USAA mortgage can be your best option.
This mortgage lender also offers home loans for first-time homebuyers with low down payment requirements. However, you won’t be able to get approved for a USAA mortgage if you don’t qualify for membership or want an FHA or USDA loan.
USAA overview
United Services Automobile Association (USAA) started in 1922 as an automobile insurance company for military officers. Over the decades, the organization has expanded its product offerings to include mortgages, consumer loans, banking accounts and various types of insurance.
Current members of the U.S. Armed Forces, veterans and their immediate families are eligible for USAA membership. It’s possible to apply for conventional, VA and jumbo loans to buy a house or refinance an existing mortgage.
Your mortgage options include:
Conventional: Fixed-rate purchase, low down payment purchase, rate-and-term refinance and cash-out refinance
Jumbo: Conventional purchase, VA purchase and VA jumbo IRRRL
Currently, Mr. Cooper (formerly Nationstar) services all USAA Bank mortgages, and you can mail a payment to the USAA headquarters by mail or schedule payments online or by phone.
Find the right VA loan: Best VA mortgage lenders
How to qualify for a USAA mortgage
If you’re not a USAA member yet, you’ll need to apply for membership. Membership is open to U.S. military members, veterans, their spouses and children of USAA members.
Some of the initial borrower requirements include:
Credit score of 620 or above for all loans.
Debt-to-income (DTI) ratio of 50% (lower for conventional loans). It’s variable for VA-backed loans.
Two years of tax returns.
Pay stubs for the last 30 days.
W-2 forms for the past two years.
Bank and investment account statements.
You will also need to present your Certificate of Eligibility (COE) if you’re applying for a VA-backed home loan.
The minimum loan amount is $50,000 on all products and up to $3 million with a jumbo loan.
Additional requirements may apply for a specific loan program. For example, you may need to complete a free online course for the low down payment conventional purchase loan.
How to apply for a USAA mortgage
You can apply online anytime or by calling a loan officer during the week. Depending on your circumstances, you may need to call to start the application process.
The first step is getting mortgage preapproval. USAA will do a hard pull of your credit report in order to provide a rate quote. You should also have your desired purchase price and down payment amount in mind to estimate your loan-to-value (LTV) ratio.
After comparing your loan options, you will apply to confirm your eligibility and finalize your interest rate, term and loan APR.
Many loan programs require a property appraisal to complete the application process. The VA IRRRL loans most likely won’t need an appraisal.
The average duration for the underwriting process is from 30 to 45 days on purchase and refinance loans.
Compare the average rates: Current mortgage rates
How to pay your USAA mortgage online
You can schedule one-time payments and enroll in autopay through your USAA account. You can also watch how-to videos on coordinating payments and linking your accounts at USAA’s payment support site.
Pros of a USAA mortgage
Low down payment loan options.
Positive customer service ratings.
Can apply online or by phone.
Specializes in VA home loans.
Cons of a USAA mortgage
No FHA, USDA or home equity loans.
Must contact the lender to estimate rates and fees.
Strict membership requirements.
No phone support on weekends.
USAA perks and special features
Here are some of the best aspects of getting a mortgage through USAA.
Savings and discounts
The lender doesn’t offer interest rate discounts or other incentive programs to reduce your closing costs. Like other banks, you can purchase discount points or potentially roll your lender fees into the loan which may be of benefit. Additionally, all loans have a fixed interest rate.
As many USAA members are eligible for VA loans, they can avoid common mortgage fees including private mortgage insurance (PMI). These loans also have low down payment requirements compared to a conventional loan. The lender usually won’t charge origination fees on VA purchase loans or refinances, but a one-time funding fee and origination fee (up to 1% or a maximum of $1,295) for conventional purchase and refinance loans applies.
As USAA also offers homeowners insurance and auto insurance, you might receive a 10% discount on your home insurance premium by bundling these products. However, you should compare rates and coverage from several insurance providers to find your best option.
First-time homebuyer loan
While you cannot apply for FHA loans through USAA, the lender offers first-time homebuyer loans that require a down payment of 5% or less. You’re eligible for this 30-year conventional loan when you haven’t owned a home in the past three years, but you might be required to complete an online education course to qualify.
You may also consider this loan type if you’re not eligible for a VA home purchase loan.
Easy to apply
Borrowers can apply for a mortgage online or by phone and receive hands-on help. After getting approved, you can continue to work with USAA if you start to struggle with affording your mortgage payment. You can call the mortgage assistance department (1-855-430-8489) to review your repayment options.
How USAA could improve
There are several downsides that may hinder you from getting a USAA mortgage.
Provide additional loan options
While the conventional, VA and jumbo mortgage options will suit many borrowers, not having access to FHA loans, USDA loans or adjustable-rate mortgages (ARM) can make it harder to compare your loan options.
USAA also doesn’t offer home equity loans which are a second mortgage that prevents refinancing your existing mortgage balance. To tap your equity through USAA, you must apply for a conventional or VA cash-out refinance which replaces your existing rate and term along with having higher closing costs as the loan balance is bigger.
Offer weekend phone support
While the USAA mortgage team receives consistently high marks for customer service, you can only call its loan officers on weekdays and there are no physical branches.
Other mortgage lenders might be better if you anticipate completing the application steps over the weekend. However, you can start and monitor the application process online 24/7.
Have less restrictive membership requirements
You must have military experience or be an immediate relative of a USAA member to join and apply for financing.
USAA customer service and reviews
You can speak with a USAA loan officer by phone Monday through Friday from 7 a.m. to 8 p.m. CT. Keep in mind, however, that phone support isn’t available on the weekends.
The lender has 171 mortgage-related complaints in the Consumer Financial Protection Bureau (CFPB) Consumer Complaint Database. This number is relatively low and borrowers primarily mention challenges with scheduling payments. Some also report troubles advancing through the application process without delays.
This institution has negative Better Business Bureau (BBB) and Trustpilot ratings but mainly focus on its banking and insurance products.
USAA mortgage alternatives: USAA vs. Navy Federal vs. Chase
USAA is an excellent lender for VA and conventional loans but doesn’t offer as many specialty programs. As a result, you may consider one of these two alternatives which offer more loan types with low down payment requirements or the ability to borrow from your home equity.
Navy Federal Credit Union has similar membership requirements as USAA Bank and caters to the military community. Borrowers ineligible for VA loans may consider the Homebuyers Choice or Military Choice loan programs that require no down payment or private mortgage insurance. This lender also offers home equity loans and lines of credit (HELOC).
If you don’t come from a military background or want to work with a brick-and-mortar national bank, Chase Bank is an excellent option. Its mortgage options include conventional, FHA, VA and jumbo loans. Home equity products are available too and the lender offers relationship discounts for qualified borrowers.
Frequently asked questions (FAQs)
USAA uses Mr. Cooper (formerly Nationstar) to service its mortgages although you can schedule payments through your USAA member dashboard or by contacting USAA.
No, USAA only offers conventional, VA and jumbo home purchase loans as well as mortgage refinancing.
A minimum 620 credit score is necessary for conventional and VA home loans. Other factors also apply including your DTI ratio, current income, employment history and down payment requirements.
Yes, you can get pre-approved for a USAA mortgage online or by phone after agreeing to a hard credit check and submitting the necessary initial documents such as proof of income, bank statements and recent tax returns.
Buying a house is a tricky process. It may seem like all you can do is submit a good offer, be patient, and hope that the universe has gifted you with a lot of karma points. But if you’ve fallen hard for a particular house and are losing sleep and your appetite over it (I’m right there with you!), this just might be the time to write an offer letter.
An offer letter is a personal letter from you to the sellers that is included with your offer paperwork. It allows you to say, in your own words, why you want to buy the house and why you hope the sellers select your offer. The sellers review it as part of the overall offer and, depending on whether you’re tied for first with another potential buyer, may use it to determine who goes under contract (especially if the other person did not write a letter).
While there are no hard and fast rules to crafting an offer letter, the following guidelines will help ensure that you put the best version of yourself forward in writing:
Be honest and sincere – I happen to think this is a good rule to have in life, not just in home-buying! But if you are writing a letter to tell the sellers why you love this house, you need to tell them why YOU love this house, not what you think they want you to say. I happen to have a very sensitive BS meter, and I get turned off if I feel someone is being dishonest with me. And if your letter sounds insincere or your seller suspects that you aren’t being truthful, your offer may not be accepted or your contract may later be at risk. An additional benefit of being honest is that you may find surprising commonalities with your seller (as we did) which could increase your offer’s chances of being accepted.
Humanize yourself – Who are you? Are you a young couple with a dog and a few chickens? A single parent with a teenage daughter? An elderly couple looking to downsize? Giving details about yourself, your family, and your interests allows the seller to understand who you are and helps them to better relate to you as a person, which can be useful not only in having your offer accepted, but in keeping any future price negotiations civil and fair.
Give specific details about what speaks to you about the house/property – Why are you placing this offer? What are the things that you love about the house, and how do you envision your life within it? These details reassure the seller that you’ve spent some time observing the house and that you have directly connected to it in some way. Plus, depending on the things you mention, you may be paying a compliment to the seller’s handiwork or style, which doesn’t hurt.
Pretend you’re writing a letter to a crush – Writing a letter to someone you have never met is challenging for everyone, especially when you are trying to express to them how much you like their house. I find myself rereading letters and emails after they’ve been sent wondering if I should have phrased something differently or provided more (or less) detailed information. But crafting a letter with respect, kindness, and conviviality is never a bad thing, and can help a seller to overlook a weaker writing voice. And, just like writing to a crush, this is not the time for sass or put-downs. Selling a house is often a bittersweet process, and depending on the seller’s situation, they may or may not be happy about their move. Be sensitive to what they might be going through, and acknowledge their feelings in your letter.
Make sure that you clearly answer the question, “Why do I want this house?” – Here’s an exercise: ask yourself “why do I want this house” before you begin your letter. Try to come up with an answer that is one or two sentences long at maximum. Write it down, set it aside, and then reference it while you’re writing and reviewing your letter. Of course, your letter will have more detail than this statement, but that message and the reasons why you want the house should be clearly expressed. For us, our house was the perfect combination of architectural aesthetics, a close neighborhood community, and a yard that would allow us to grow a large garden. We made sure to explain why each of those things were important to us and why we felt this particular house met our needs.
Keep your letter to one page if you can, and remember that spellcheck is your friend. If you’d like further inspiration, my own offer letter is included below. Now get to writing, and best of luck!
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Whether you like flashy sports cars or practical minivans, shopping around for cars can feel like a fresh start. The problem is, most people can’t afford to pay out of pocket.
So how do you get a car loan to help turn your motorized dreams into reality? Like most big purchases, creating a thorough plan is a must. Understanding all your financing options, how a car loan will affect your credit, and how you can get the most bang for your buck will save you headaches—and debt—down the road.
Have a specific question in mind? Use the links below to get straight to the information you need:
What Are the Steps for Getting a Car Loan?
Throughout the financing process, remember that you’re shopping for two different products: the car and the car loan. Before setting foot on a dealership, take the time to weigh all your options so you feel 100% certain that investing in a new car is the best decision for your financial health as a whole.
Start with a Budget
If you don’t have a monthly budget, it’s time to create one. Assess all the monthly debt payments you currently have—such as rent, student loans, and credit card bills—and then figure out how much you’ll be able to afford on a monthly car payment.
Your car payment calculations should include not only the amount paid back to the lender, but also gas, insurance, and maintenance fees. If you come up with a number that won’t work with your income, consider saving for a larger down payment so you won’t have to take out a large car loan.
Check Your Credit Score
Request a copy of your free credit report to determine how your score will affect the loan shopping process. When doling out the best rates, lenders look for a score of 760 or higher and will give you a better deal the higher your score. Payment history, debt-to-income ratio, and the history of your credit lines all affect that magic three-digit number.
Start by fixing any inaccuracies you find on your report that could be dragging down your score. Within a month or two, you should see the mistakes removed which may make your number rise. If you aren’t in a rush to purchase the car, work on bringing your score up to help you get more favorable loans when it does come time to apply.
If you don’t have the time or ability to raise your credit score before purchasing the car, you could find a co-signer for the loan. Consider asking a parent, friend, or family member with a good score to co-sign. It’s important to remember that the co-signer is responsible for paying back the loan if you’re unable to make the monthly payments, and the credit score of both you and the co-signer will be affected by late or missed payments.
Explore All Your Loan Options
There are two main ways to get a car loan: direct lending and dealership financing. After picking out the car you want to buy, consider which option makes the most sense for you.
Direct Lending
Direct lending entails receiving a loan from a bank, credit union, or online lender. You’ll agree on the amount of the loan and the finance charge, or interest rate, that you’ll pay on the loan. Some things to note about receiving direct lending:
Banks often offer competitive interest rates but are more exclusive about who they offer a loan to. It is more likely you will need to have a good or excellent credit score to obtain a desirable loan from a bank. You don’t usually have to be a member at the bank to apply for an auto loan or get pre-approval.
Credit unions may have an easier loan application process and lower interest rates. However, you must be a member to apply for a loan.
Online lending websites often contact several lenders at the same time so you can easily obtain competing loan offers. Just like a bank or credit union, you will determine the terms of the loan with the lender. Make sure to always do background research on each lender you contact to ensure they aren’t predatory lenders.
Dealership Financing
Some dealerships offer on-site financing, which means you agree on the loan amount and interest rate with the dealer. Here are some things to keep in mind:
The dealer will gather all your information and send it to one or more prospective auto lenders, who will then give the dealer a “buy rate.” This could be higher than the interest rate you negotiate because it could include a compensation fee for the dealer handling your loan.
Because you are treating the dealership as a one-stop-shop for all your car needs, you might be offered special deals or rebates that include low interest rates.
Get Pre-Approval
Whichever financing option you decide to pursue, don’t just take the first loan offer that comes your way. Take the time to shop around and get competing rates through the pre-approval process. This entails asking multiple lenders to look at your credit report and draft up the loan amount and interest rate they’d be willing to offer you.
Pre-approval may give you more bargaining power with a dealership than if you went in without a financing plan. You also might be able to hunt down the best deals because lenders are competing for your business. Remember, just because you receive pre-approval from a lender doesn’t mean you have to take their offer.
An important element of loan shopping is keeping your pre-approval applications and final loan applications within a short window of time. Every time a lender looks at your credit report, it triggers a hard inquiry. If you build up too many hard inquiries, it could lower your credit score.
Fortunately, Turbo uses VantageScore, one of the common scoring models, which offers a 14-day grace period. If multiple hard inquiries are made during this time period for an auto loan, it will only be counted as a single inquiry—thus protecting your score.
Negotiate the Total Cost
Once you’ve found a lender that you want to finance your car loan, consider negotiating the final deal. This includes:
Length of the loan. Typically, a shorter loan will have higher monthly payments but lower interest rates. A longer loan will have smaller monthly payments and higher interest rates.
APR and interest rate. Depending on your pre-approval offers, you might be able to negotiate for a lower interest rate. This means you’ll pay the lender less to borrow the money over the length of the loan.
Additional add-ons. Extended warranties or additional insurance can raise the total cost of the loan.
Special offers or discounts. If you’re getting your loan through a dealership, use the negotiation process to ask about any manufacturer rebates that could get you a lower price on the car, therefore reducing the amount of money you need to borrow.
Close the Deal
Before driving off into the sunset, make sure to tie up any loose ends that could impact your car loan. Per the federal Truth in Lending Act, lenders are required to provide you with important information about your agreement so you can verify all the terms match what you discussed.
Sign all paperwork before taking your new car home, and make sure you have multiple ways to contact your lender if you ever have any questions. Whether you make online or by-mail monthly payments will be discussed during the negotiation process. It’s crucial that you pay these back on time every month to avoid severe late fees or repossession of your brand new set of wheels.
Will Trading In my Car Affect an Auto Loan?
If you plan to trade in your current car before purchasing a new one, it could lower the total cost of your car loan. The credit or cash you receive from the trade-in can be put to use as a down payment, thus reducing the amount you need to borrow from a lender.
Before trading in, make sure you know whether the total amount you still owe on your car is less than what it’s worth. Carrying an old auto loan onto a new auto loan may raise your interest rates and limit your options for the best deals. While trading-in can significantly help some buyers, it may not always be the best option if you want to get a favorable loan for your new vehicle.
Can I Get a Car Loan with Bad Credit?
Despite many lenders being wary of borrowers with poor credit scores, there are still options available to obtain a car loan. As mentioned earlier, paying off any existing debt, finding a co-signer, or saving for a larger down payment are all ways to help offset bad credit.
However, if the purchase can’t wait, lenders may still offer you a loan—but likely at a high price. Interest rates and additional fees skyrocket for borrowers with less-than-ideal credit scores, and it may dig you into a deeper hole of debt than you started with.
If you think you might be late on a payment, contact your lender immediately to discuss the possibility of adjusting your payment plan. While most of the original terms you negotiate will likely stay the same, you may be able to make a delayed payment. But if you consistently default on your payments, the lender is allowed to repossess your car, sell it, and use the money to pay off your remaining debt.
Despite its complexities, getting a car loan can be a straightforward process if you make a strategic plan. Assess your current financial health, loan shop, and negotiate a deal that suits your needs; in no time you’ll be able to hit the streets with a shiny new toy and feel confident in your abilities to manage debt.
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Mortgage rates have nearly doubled to around 6.5% from the beginning of this year, but they may have not peaked, putting pressure on affordability for most prospective buyers as the Federal Reserve vows to tame inflation.
Following the Fed’s decision to raise interest rates by an additional 75 basis points on Wednesday, the central bank said it will hike rates as high as 4.6% in 2023. Goldman Sachs predicts a 75 bps hike at the November meeting followed by a 50 bps raise in December and a 25 bps increase in January 2023.
Interest rates can move higher as the economy stays firm, Logan Mohtashami, Lead Analyst at HousingWire said. “However, this is all about a tug of war between how long the economy can still be expanding.”
The Fed’s short-term rate does not directly impact long-term mortgage rates but it does steer market activity to create higher rates and reduce demand. Time will tell whether the mortgage market had already priced in expectation of the Fed’s rate hike on Wednesday, but in the months ahead, many industry watchers forecast mortgage rates to continue their climb until the central bank changes its monetary policy.
“Before the Federal Reserve raised the federal funds rate by 0.75 percentage point this week, mortgage rates had already risen by a similar amount,” said Holden Lewis, home and mortgage expert at NerdWallet. “Now the Fed has signaled that it will hike rates several more times this year and next year, so mortgage rates have plenty of room to go up even more.”
“The trickle-down effect of rising borrowing costs means that homebuyers will continue to feel higher monthly payments,” added George Ratiu, manager of economics research at Realtor.com.
With the rate for a 30-year mortgage 300 basis points higher than in 2021, the buyer of a median-priced home this week is facing a monthly payment that is 66% higher than the same week in 2021, Ratiu noted.
Marty Green, principal with mortgage law firm Polunsky Beitel Green, described increasing affordability pressures in the housing market as “throwing cold water on what was a frenzied residential real estate market.”
“Where ‘inventory’ was the big concern in 2021 and early 2022, the concern today is ‘affordability,’ with the combination of substantial price increases and rising rates simply pricing more and more Americans out of the market,” Green said.
The number of existing home sales reflects how the housing sector has been impacted by the Fed’s interest rate policies. Existing home sales declined for seven consecutive months in August, declining 0.4% to a seasonally adjusted annual rate of 4.8 million units last month from July, according to the National Association of Realtors (NAR). Existing home sales are down 19.9% year-over-year.
Although home price growth slowed and demand has weakened, tight supply is keeping prices elevated. The median existing house price increased 7.7% from a year earlier to $389,500 in August. While housing prices typically slow in July and August, they surged to an all-time-high of $413,800 in June.
With the mortgage industry accepting the current rate environment as a “necessary period of adjustment,” lenders are expected to roll out “creative mortgage products” to entice more borrowers, said Kurt Carlton, co-founder and president of real estate investment firm New Western.
“We do not see new construction returning in a meaningful way any time soon. Our macro-outlook is that demand for housing will remain out of balance with supply for the mid to long term,” Carlton said.
According to the NAR, there were 1.28 million existing homes on the market in August and would take 3.2 months to exhaust the current inventory of existing homes at last month’s sales pace. A five-to-seven-month supply is viewed as a healthy balance between supply and demand.
Loan officers get an up-close look at how much shoppers and capital-strapped buyers are getting priced out in the rate-rising environment.
Will Savage, a loan originator at PMC Mortgage, sees many pre-approved clients having to get reapproved for a mortgage based on the rate increases.
With higher monthly mortgage payments, buyers who had money are getting spooked and some those with less financial stability are getting priced out, Savage explained.
“They (buyers with less financial stability) are having to go to surrounding towns instead of where everybody wants to be because they can no longer afford the more desirable locations.”
And for those shoppers who choose to buy, “they may be more likely to select an adjustable-rate mortgage (ARM) because their initial payments will be lower than those they would find with a fixed rate mortgage,” said Michele Raneri, vice president of U.S. research and consulting at TransUnion.
The way ARMs work is lenders offer lower mortgage rates for the initial term, generally three, five, or seven years. After that initial period ends, rates adjust periodically based on a benchmark or index, such as the Secured Overnight Financing Rate (SOFR), based on actual transactions in the Treasury repurchase market.
About 9.1% of total mortgage applications were for ARMs for the week ending Sep. 16, according to the Mortgage Bankers Association (MBA). The volume is slightly lower than in May when it hit a 14-year high of nearly 11% of the overall residential mortgage applications.
While some housing market watchers, including Ratiu, expect that household finances will get squeezed by rising costs and a shortage of homes for sale, some hopeful loan officers see opportunities for buyers as they may be seeing price cuts.
“We are already starting to have sellers realize we had a great run for a couple years and we’re getting more inventory,” said Matt Topping, a senior loan officer at Movement Mortgage.
“Buyers are going to have more choices than they’ve had in the last couple of years. They’re also going to have less competition and I think they’re going to be sellers who are more amenable to things they may have not even considered six months ago, a year ago.”
Thanks to the recent decline in mortgage rates, which have since inched up some, the so-called “refinanceable population” has swelled 30% to 6.7 million homeowners.
These are the folks that Black Knight Financial Services singled out as standing to benefit from a refinance based on the related costs and savings.
The company looked at this population two months ago and found that a refinance would prove advantageous for just 5.2 million homeowners based on their broad-based eligibility criteria.
That number was also on the decline and expected to dip quite a bit after the Fed raised rates for the first time since 2006. But then the stock market plummeted and with it the 10-year yield, which pushed mortgage rates back toward record lows.
As a result, the population of refinanceable borrowers surged, and with it the amount those borrowers could potentially save.
Let’s All Save $20 Billion Together, Shall We?
In total, Black Knight estimates that if all these 6.7 million homeowners refinance, we’ll save a collective $20 billion annually on mortgage payments.
The total monthly savings have increased from around $1.28 billion per month to somewhere near $1.68 billion, with the average borrower saving $3,000 annually.
Some one million or so borrowers could save over $400 per month if they refinanced, and 3.3 million homeowners could save $200 or more each month. Of course, we know not everyone will refinance, even if they’re able to do so.
There are plenty of folks that simply aren’t interested, others who don’t want to put in the work, and probably more that don’t want to reset the clock or risk being declined for some reason. I’m sure many also don’t think their homes are worth enough to refinance.
Amazingly, a mere 15-basis-point additional reduction in 30-year fixed mortgage rates that would push them down to 3.5% would add another 2.1 million borrowers into the refinanceable population.
If that were to happen, the 8.8 million population of ripe refinance candidates would be the highest since 2012-2013, at a time when mortgage rates were at all-time lows.
We’ll see if that happens – rates are currently on an upward swing, though plenty of market bears see the current uptrend as a short-lived interruption in an economy that is decidedly ugly and questionable at current valuations.
Only 5% of Homeowners Think Rates Will Go Down
It might seem strange that a lot of these homeowners aren’t refinancing, and probably never will since Americans largely believe mortgage rates have nowhere to go but up.
The latest Fannie Mae Housing Survey (February 2016) revealed that just five percent of respondents believe mortgage rates will go down over the next 12 months. At the same time, 55% expect them to go up during that time.
In other words, no one really thinks rates are going to get much more attractive, so why aren’t they refinancing now?
It could be for reasons I already discussed, or just some sort of numbness after enjoying year after year of low rates, and wrong forecast after wrong forecast about them finally rising.
There’s also the thought that homeowners don’t want to give up their cozy fixed mortgages for a lower rate that one could find in a hybrid ARM, despite the fact that many of these homeowners will likely move in the next five years.
A Good Time to Buy?
Fannie also found that fewer homeowners expect home prices to rise from current levels. The share of respondents who felt home prices would rise over the next 12 months slipped from 45% to 44% last month. Meanwhile, the share that expected them to drop increased from 8% to 11%.
Despite this, a larger share of respondents felt it was a good time to buy a home, with a 63% share (up from 61%) reported in February. The share who felt it was a bad time also dropped from 30% to 28%.
At first glance, it is kind of strange that more Americans think it’s a good time to buy when home prices appear to be topping, but I suppose that could just have to do with the recent improvement in mortgage rates.
As you can see from the chart above, “good time to buy” has been trending lower and lower over the past two years as home prices have increased.
And “bad time to buy” is on the rise for the same reason, limited upside and expensive home prices. There just seems to be a blip related to the pullback in interest rates.
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If you’re looking to make a big difference with your money, then read on.
You might be thinking that it’s unlikely for anyone to generate $100k in revenue on their first go.
But we have good news: You don’t need to – people can earn more than 10x the amount they had initially invested into them!
This is possible because there are so many ways to make money today that cost less than what most would consider “big-ticket” investments like a car or a house.
Today, you will learn from this article provides tips on how to turn $10k into more money in 2022.
The goal is to learn how to make your money work for you.
We have included 20 different ways to make quick and easy money.
The methods included are varied and include things like investing in stocks, starting a business, and finding work that pays well. This guide will help you get started on making extra cash quickly and easily!
What can I do with my 10K to make money?
There are many ways to make money with your 10K. You can use it to invest, save, or spend.
You can also use it to purchase items that will generate income such as rental properties, stocks, and businesses.
The most important thing is to find something that you enjoy and that will help you grow financially. Making passive income is even better!
How can I grow 10K to 100K?
The goal is to find the method that works best for you and makes the most money. That is who you will grow 10K to 100K this year.
There are many options available below to help you grow your money, so choose what will work best for you.
You don’t need expensive equipment or special skills to start making your money multiply. In fact, learning how to invest $100 to make $1000 a day is a common question answered here by Money Bliss.
You can start with simple methods and add on as you get better at it.
What are some fast ways to invest 10k to make 100k?
While it is difficult to make a living from one job, the ability to work multiple jobs has been shown in many studies as an effective way of generating income.
More and more people today, are focusing on ways to build passive income to grow their wealth.
Setting a goal of how to turn $10k into $100k is a great way to multiply your money.
Option #1 – Stock market investing
The goal of investing in the stock market is to earn profits by buying and selling stocks at a higher price than what was paid for them.
There are several ways to invest in the stock market, but the simplest way is to buy and sell individual stocks. You can also purchase mutual funds, which are collections of different stocks that are managed by an investment company or ETFs. Other investors prefer to look at dividend stocks.
Investments in the stock market can be risky, but if you do it correctly, you could see significant returns over time.
Related Learning: How To Invest In Stocks For Beginners: Investing Made Easy
Option #2 – Invest with Retirement Accounts
Investing in retirement accounts can help you turn 10K into 100K over time. By investing in a 401k, IRA, or other retirement accounts, you will have access to growing assets that can help you reach your financial goals.
When you invest money in a retirement account, the funds are held by the company and grow over time. This means that even if the stock market experiences tough times, your 401k or IRA will still be growing steadily. This is important because it allows you to delay taking major financial risks and focus on long-term planning instead.
By investing early in your career, you can build up a sizable nest egg that will provide security for yourself and your loved ones when you retire.
Option #3 – Invest in Rental Property
Investing in rental property can be a great way to make money. Rental properties often have high yields (the percentage of income returned to investors), and there’s never been a better time to invest in this type of property.
Rental properties are an attractive investment because they tend to have stable yields, which means you can count on making a certain amount of money every year.
In addition, rental properties are usually less risky than other types of investments, so you can feel confident about your returns even if the market goes down.
There are many ways to buy and sell rental properties, so you can find one that’s right for your financial situation. And since rents always go up (to some degree), investing in rental property is a guaranteed way to grow your money over time.
Option # 5 – Flip Stuff To Make Money
Flipping is the process of buying and selling assets in order to generate profits. It can be done through stocks, bonds, real estate, furniture, art, sports equipment, or any other type of material item.
There are a few ways to flip stuff for money. One way is to buy assets and then sell them at a higher price later.
For example, you might buy stock in a company and then sell it two months later for a higher price. This technique is called “swing trading.” Others do the buying and selling within the same day for “day trading.”
Another way to flip stuff is to wait until the asset has reached its peak value and then sell it. For example, you might buy property in downtown Chicago for $100,000 and wait six months until the market reaches its peak value of $200,000 before selling it for $200,000 minus commission.
On a smaller scale, many people flip items found at Flea Markets and easily make $100k with a few transactions. If that sounds like you, then take a free flippers class!
Option # 6 – Start An Online Business
Starting an online business is a great way to make money. There are a variety of ways to do this, and the sky is the limit!
Some people start their own businesses to create something they’re passionate about, and others start businesses in order to make extra money. Whatever your reasons for starting an online business, there are plenty of ways to do it fast.
In fact, learning how to make money online for beginners is a hot topic!
Option #7 – Start a Side Hustle
Not willing to start a full-fledged online business yet? Then, look at a side hustle. This is an extra job or business you do on the side to make money.
It is flexible, easy to start, and doesn’t require much time commitment. You can work part-time or full-time, as long as you’re able to devote enough time each week to it. And since it’s your own gig, you have complete control over its success!
There are plenty of resources available online that will help guide you through the process (including this blog post on best gig economy jobs). Just remember: don’t give up on your side hustle until it becomes profitable and meaningful to you – because once it does, that’ll be worth double the effort!
Option #8 – Invest In Cryptocurrency
Cryptocurrencies are digital tokens that use cryptography to secure their transactions and control the creation of new units. Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control.
Many people view cryptocurrencies as a way to make money online. Bitcoin, for example, has increased in value by over 1,000% since its inception in 2009! While there is a lot of speculation involved with cryptocurrencies, if you’re patient, you can find opportunities to invest in them as well.
There are two main ways you can invest in cryptocurrencies: buying them on an exchange and mining them. Buying cryptocurrencies on an exchange allows you to quickly and easily trade them for other currencies or assets. Mining coins involves trying to solve complex mathematical problems that reward participants with cryptocurrency tokens.
While it’s important to do your own research before investing in any type of cryptocurrency, these fast ways could help you double your money within just a few short weeks!
Option #9 – Peer-to-peer lending (P2P)
P2P lending is a type of online lending where individuals lend money to other individuals, usually without any collateral.
P2P lending has become increasingly popular in recent years because it offers borrowers and lenders an alternative to traditional banking products. Borrowers can borrow money from multiple lenders at once, which gives them more options and access to financing. Lenders can earn interest on their loans while also taking advantage of the high demand for P2P lending products.
Because P2P lending is a new product category, there are still some risks associated with it. For example, borrowers may not be able to repay their loans, and lenders may not be able to collect on the loans they have lent out. However, the growth of P2P lending indicates that there is room for this type of financing in the marketplaces.
Peer-to-Peer Lending Options:
Option #10 – Invest in Yourself with Education
The fastest way to turn $10,000 into $100,000 is to invest in yourself. This is very often overlooked, but one of the best returns on investment that you can have.
Consider taking courses to improve your skillset or investing in real estate or stocks.
My favorite online courses to improve your income:
With hard work and dedication, you can make your money work for you and achieve your financial goals.
Option #11 – Day Trade (or Swing Trade) in the Stock Market
Investing in the stock market is a way to make money by buying and selling shares of companies.
There are two main ways to make money through investing: buying and holding (also known as long-term investing), and active trading (also known as short-term investing).
Many people in this popular investing course choose to become active investors by day trading or swing trading for income. In fact, many people have made the $1000 in a day club.
Option #12 – Trading Stock Options
Option traders can make money by predicting which direction prices will move and then trading on those predictions.
Trading options is risky because it’s possible for prices to change after you’ve bought or sold them – so your profits (or losses) may depend on how well you guess what’ll happen.
But if you do manage to make money by trading options, it can be very lucrative – especially over short periods of time (days or weeks).
First, before trading stock options, you must learn how to trade the underlying stocks first. Learn how to trade options with this VIP investing course.
Option #13 – Invest in an Initial Public Offering (IPO)
Wouldn’t you love to invest in Amazon (AMZN) or Google (GOOGL) when they first went public??
If you invested $500 into AMZN, it would be worth $855,505 (as of August 2022) – source)
If you invested $500 into GOOGL, it would be worth $27,502 (as of August 2022) – source)
An IPO is a type of stock market transaction in which a company sells shares to the public. An IPO offers businesses the opportunity to expand their reach and raise money quickly.
IPOs are popular because they provide investors with access to new companies at an early stage. As such, IPOs can be a great winner or a great loser of your capital. Thus, do your research.
Option #14 – Flip Websites
Flipping websites is a quick and easy way to make money. All you need is the right software and some knowledge of how the internet works.
Flipping websites means buying a website, fixing up the code, improving the SEO, and selling it to another owner or business. This process can be done quickly and easily with the help of some simple tools. By flipping websites, you can earn a profit while also increasing your web traffic.
Flipping websites is a great way to make money on the side and supplement your income. It’s also an excellent way to learn more about online marketing and build your own business skills.
Option #15 – Start Affiliate Marketing to Turn 10k into 100k
Affiliate marketing is a great way to turn 10,000 into 100,000 by earning money through promoting other people’s products. This is also known as an influencer. And you don’t have to carry inventory yourself!
There are a few different ways to get started with affiliate marketing, and the most important thing is to find an affiliate program that aligns with your goals and interests.
Once you’ve registered with an affiliate program, it’s time to start promoting! There are a variety of tools and resources available online that can help you build an effective affiliate campaign through social media or blog traffic.
Option #16 – Invest in REITs with Real Estate Market
Real estate investment trusts (REITs) are a type of investment that allows you to invest in real estate without having to own the property. This is done by investing in a portfolio of properties that are owned and managed by the REIT.
REITs offer investors several advantages over other types of real estate investments. These advantages include:
Low risk – REITs are typically less risky than other real estate investments, such as buying and holding single family homes or properties.
Lower fees – Unlike buying and holding individual properties, REITs pay relatively low management fees, which means your money is more likely to be returned to you quickly.
Liquidity – As long as there is demand for REIT shares, the prices will generally continue to rise, giving you an opportunity to make significant profits over time.
Investing in REITS can be a great way to diversify your real estate portfolio and achieve higher returns while avoiding some of the risks associated with other types of real estate investments.
My favorite REIT platforms are:
Option #17 – Invest in penny stocks
Penny stocks are a type of investment that is usually considered to be risky but can offer high returns if the right investments are made.
Penny stocks are small companies that trade on the stock market for under $2-10 per share. Because these companies are relatively new and often have little financial stability, penny stocks can be volatile – meaning they can rise or fall in price quickly while low or high volume.
Because penny stocks are so risky, it’s important to do your investigation before investing in them. However, if you make the right choices and invest in carefully chosen penny stocks, you could see high returns over time.
Option #18 – Make Money With Retail Arbitrage or Flipping
Retail arbitrage is the practice of buying products in one market and selling them in another market to earn a profit. Many do this with dropshipping.
There are a few fast ways to get started with retail arbitrage. The first is by using online tools like eBay, Facebook Marketplace or Amazon’s Selling Manager. These platforms make it easy to find specific items that you want to buy and sell at a profit.
All in all, you are looking for low price items and selling them for a profit.
By taking advantage of flipping methods like these, you can quickly increase your income without having to spend too much time researching each opportunity. Learn more withthis FREE webinar.
Option #19 – Start A Service-Based Business
Starting a service-based business can be a great way to make money by finding clients willing to pay for your services. There are many different types of service businesses, and each offers its own unique opportunities and challenges.
Service businesses can be profitable in a number of different ways. You may be able to charge high prices for your services or offer them at a discount in order to attract customers.
There are several advantages to starting a service-based business.
First, you have control over your own schedule and work environment.
Second, you can set your own hours and earn a flexible income.
Finally, service businesses tend to be more recession-proof than other types of businesses because they don’t rely as much on consumer spending habits.
Option #20 – Buy a business
Buying a business is a great way to increase your wealth and expand your empire. There are many different types of businesses available for purchase, so it’s important to choose the right one for you.
There are two main reasons why buying a business can be beneficial. First, buying a business gives you access to valuable assets that you couldn’t otherwise own – like cash flow, customer lists, and intellectual property. Second, buying a business can help you build a dynasty by passing on the company name and legacy to future generations.
There are many different factors to consider when purchasing a business, so it’s important to consult with an experienced advisor and do your due diligence.
How to Turn 10K Into 100K FAQs
Obviously, you probably have a lot of questions when trying to decide on which investment opportunities are best for you. While affiliate programs may work for some, you may want to use your stock market knowledge. Maybe even a dog walking business?
Ultimately, you have $10k in investment capital to start with, now you have to make some decisions.
What are the best ways to turn $10k into $100k?
A lot of people have been asking themselves this question lately and wondering what they could do with their money in order to make a big difference in their lives and achieve financial freedom.
In addition, you probably have questions before you make this a reality.
How Can I Get Rich With 10K?
One of the best ways to get rich is to start with a small sum of money and grow it over time by being consistent in your actions.
Learn the best ways to invest 10k.
It’s not about getting lucky, but rather developing habits that will help you achieve your goals. With hard work and dedication, anyone can become wealthy over time.
How to Turn 10k into 100k in 1 year?
There are a few key things you need to do in order to turn 10k into 100k in 1 year.
You need to look for a business to start that has a lot of potential for growth and profit. Don’t forget, that you must be willing to work hard and put in the time and effort required to make your business successful.
You need to be passionate (and adamant) about turning 10000 dollars into 100000. If you are wanting a 900% return on investment, then you must be willing to put in the effort to make that happen.
How to turn 10k into 100k in a month?
For most people, it will take more than just one month to turn 10k into 100k.
Regardless of the path you choose, it will take time to get the education and experience needed to achieve such a high return.
The best options for faster success include: starting an online business, becoming an active stock market trader, or investing in real estate. There are many options available, but it is important to do your research and find what works best for you.
How Can I Turn $10k into $100k Passively?
The key right here is … passive income!
You want to find ways to make money passively – also known as making money while you sleep.
The most common way is through passive income streams, which include investments, real estate, and online businesses. Whichever route you decide to take, the key is to be patient and let the money grow over time.
Many people want to make 10k a month – passive income is even better!
How Do I Convert 10K Into 100K With Stocks?
There are a few different ways to convert 10,000 into 100,000 with stocks.
Buy and hold: This is the simplest option and can be effective for those who are looking to invest for the long term. By buying stock in a company and holding on to it, you will eventually see your investment grow over time.
Day trading: This involves buying and selling stocks quickly in order to make money based on the movements of the market. While this can be very exciting, it is also risky because you could lose all of your money if the market goes down.
Investing in Options: Options allow you to buy or sell a security at a set price within a certain period of time. This type of investing is often considered conservative because you don’t have to worry about losing your investment if the market goes down – you only risk losing money if the option doesn’t expire or hits its expiration date without being exercised (sold).
Dividend stocks reinvestment: When companies pay out cash dividends each quarter, many investors choose to reinvest that money back into more shares of stock – which increases their total ownership stake in the company over time.
Trade shares for assets: Some people choose to trade their shares of stock for other types of assets, such as real estate or precious metals. This allows them to diversify their portfolio and increase their chances of making a profit.
What are some risks associated with these methods?
As always, there are risks with any method of looking for a high rate of return. You must do your due diligence first to make sure the investment is worthwhile and not a scam.
When looking to make a high return on investment, it is important to be aware of the risks involved. Sometimes, these investments are not as secure as low-return options and can result in losing the original investment. It is, therefore, crucial to do your homework before investing in anything.
What are some other things to keep in mind when trying to double your money?
There are a few other things to keep in mind when trying to find a way to double $10k quickly.
Though it can be difficult to turn 10k into 100k, there are ways to make this happen. For example, by investing in stocks or real estate, one can see an increase in their original investment. Additionally, starting a business can also lead to a doubling of one’s money. However, it is important to keep in mind the risks associated with these ventures.
When you are trying to double your money, make sure you are looking at smart investments, saving wisely, and increasing your income. Additionally, don’t forget about enjoying life while you’re working towards this goal!
Be cautious about get-rich-quick schemes
There are a lot of get-rich-quick schemes out there that promise you can make money quickly by following a certain plan or investing in a certain product. While these schemes may seem promising at first, they’re often nothing more than scams.
The reality is that most get-rich-quick schemes don’t work the way they’re supposed to. In fact, many of them actually lead to losses for the people who try them. This is because most of these schemes involve high-risk investments or unproven methods.
So if you’re thinking about trying one of these schemes, be sure to do your research first. You might be able to find a better way to make money without risking everything you have.
What Skills Will Help You Make 100k Fast
The goal of this article is to help you turn $10k into $100K by the end of this year. No need for a fancy MBA or years’ worth of experience, just some simple skills that will help you.
More than likely, you will have to invest in an online course or even a few books to help you along your journey. For instance, I purchased a blogging course to jumpstart my entrepreneurship. Also, I dived straight into an investing course to further my stock market knowledge.
When you are growing your liquid net worth, you are looking somewhere to have your money make more money. The strategy you choose will be different than the person reading this same post. Buy, you have to show patience and know that you will reach your target based on your timeline.
There is a lot of content available to help you along your path.
As we discussed above, there are many different ways to make 10K to 100K this year, so choose the one that works best for you and gets results!
Know someone else that needs this, too? Then, please share!!