Accident and illness policies have unlimited annual coverage.
Live customer support chat available.
15-day waiting period for orthopedic issues is shorter than that of many other insurers.
No waiting period if your pet is switching from another policy.
No option to pay your vet directly.
No hip dysplasia coverage for pets enrolled after age 5.
Wellness plans don’t reimburse for spay/neuter surgery or microchipping.
Bottom line
ManyPets offers comprehensive coverage for pet owners with short waiting periods for orthopedic conditions and fast claim processing times.
About ManyPets pet insurance
ManyPets earned 4 stars out of 5 for overall performance thanks to its modern take on pet insurance. You can live-chat customer support and receive a claims decision within 48 hours in many cases.
Unlike many of its competitors, ManyPets doesn’t have a separate, multi-month waiting period for orthopedic conditions like knee injuries or hip dysplasia. Coverage for these and all other conditions begins 15 days after you buy your policy. The company will waive the waiting period if you’re switching to ManyPets from another pet insurance provider.
ManyPets insurance was founded in 2012.
Strengths: ManyPets has a comprehensive accident and illness plan that includes coverage for exam fees and dental disease treatment — two items not always covered by other plans.
Weaknesses: ManyPets doesn’t cover prescription food or behavioral modification. It also doesn’t have an accident-only plan, and its wellness package won’t pay for spaying or neutering.
ManyPets pet insurance plans and coverage
ManyPets offers a single accident and illness plan with the option to add preventive care coverage.
Note: Coverage options and availability may vary depending on where you live and the age and breed of your pet.
Accident and illness
The ManyPets accident and illness plan has no annual coverage limit. This plan can reimburse you for:
Sick visit exam fees.
Vet specialist and ER visits.
Prescribed medications.
Treatment for illnesses including cancer, dental diseases and hereditary conditions.
Diagnostic tests.
Rehabilitation, acupuncture and chiropractic treatments.
Surgeries.
Hospitalization.
Euthanasia and cremation.
Wellness plan
You can add an optional wellness plan to get reimbursed for preventive care expenses. The ManyPets wellness plan has a total annual benefit of $600. It covers:
Checkups and vaccines, up to $150 per year.
Parasite testing and prevention, up to $150 per year.
Teeth cleaning, dental chews and other oral care expenses, up to $150 per year.
Vitamins, supplements, and services such as acupuncture or massage, up to $150 per year.
What’s not covered
A ManyPets accident and illness plan won’t pay for:
Pre-existing conditions, unless your pet has been symptom-free without treatment for at least 18 months.
Routine care, unless you’ve added a wellness plan.
Hip dysplasia, if you enrolled your pet after age 5 or the animal has previously been diagnosed with this condition.
Behavioral modification treatments.
Anal gland expression.
Breeding, pregnancy or giving birth.
Sickness or injury due to neglect, racing or guarding.
Cosmetic procedures like tail docking or dew claw removal.
Treatment of cruciate ligament problems if your pet has had prior cruciate ligament injuries to any leg before the start of the policy.
The ManyPets wellness plan doesn’t cover the following (some of which other companies’ preventive care packages will cover):
Spay or neuter surgery.
Microchipping.
Blood tests.
Grooming services.
Prescription diet food.
ManyPets coverage options
Deductibles: A pet insurance deductible is the amount you have to pay before your plan reimburses you for vet expenses. For the ManyPets accident and illness plan, deductible options may range from $250 to $1,000 per year, though not all pets have the same choices.
Wellness plans have no deductible.
Reimbursement amounts: ManyPets will reimburse you for a certain percentage of vet expenses, minus your deductible. With ManyPets plans, you can generally choose between a 70% and 80% reimbursement rate.
ManyPets first applies its reimbursement rate to your vet bills, then your deductible. This is a less generous method of payment than that of some other pet insurers. Say you have a $1,000 vet bill, an 80% reimbursement rate and a $500 deductible. ManyPets will deem $800 of your bill reimbursable (80% of $1,000), then subtract the $500 deductible from your payout. That leaves ManyPets paying $300 and you covering the remaining $700.
Companies that apply the deductible first would pay $400 of the same vet bill. Here’s the math: $1,000 vet bill – $500 deductible = $500. 80% of the remaining $500 vet bill = $400.
Reimbursement percentages don’t apply to the ManyPets wellness plan.
Coverage limits: ManyPets has no annual coverage limit for its accident and illness plan. Its wellness plan can pay up to $600 per year.
Restrictions and waiting periods
Age restrictions: New policies are available to pets between the ages of 8 weeks and 14 years. Once enrolled, your pet won’t be denied coverage due to age as long as your policy stays active. You must enroll pets before age 6 for hip dysplasia coverage.
Waiting periods: A waiting period is the time between when you buy your policy and when your coverage starts. ManyPets has a 15-day waiting period in most states for accident and illness coverage. Wellness coverage begins the day after purchase.
ManyPets pet insurance rates
The cost of ManyPets pet insurance depends on where you live and your pet’s age and breed. Below are sample monthly rates from ManyPets for six common dog breeds at ages 2 and 8. Sample pets lived in Katy, Texas, and had accident and illness coverage with a $250 deductible, unlimited annual coverage and an 80% reimbursement rate. Your own price will vary.
French bulldog
German shepherd
Golden retriever
Labrador retriever
Medium mixed-breed dog
We also gathered rates for a variety of cat breeds with the same coverage limits as above. Rates below are sample monthly premiums for cats living in Katy, Texas.
Domestic shorthair
Exotic longhair
Maine coon
Discounts
ManyPets doesn’t advertise any pet insurance discounts.
State availability
ManyPets pet insurance is available in Washington, D.C., plus all states except Hawaii, Idaho, Maine, Massachusetts and Minnesota.
Availability may change at any time. Coverage may not be available to all pets in a given state.
Consumer experience
Website: The ManyPets website is easy to use. You can get a free quote and enroll your pet, plus browse FAQs to get answers to your questions. The website also has sample policies if you’d like to review details before you purchase a plan.
App: TheManyPets mobile app is available for both iOS and Android. You can use the app to submit and track claims, view benefit information, refer friends, and watch pet care videos.
Claims: With ManyPets insurance, you pay your vet upfront and get reimbursed after filing a claim. You have 180 days to file a claim from when you pay your vet bill. You can file a claim online or in the mobile app. ManyPets tries to process most accident and illness claims within 48 hours. It issues reimbursements within 24 business hours of approval, so you can generally expect a quick turnaround. You can get your reimbursement via bank deposit or check.
Customer service: The ManyPets customer care team is available by phone at 888-978-5291 and by email at [email protected]. You can also reach out via live chat. The company’s business hours are Monday through Friday from 9 a.m. to 9 p.m. and Saturdays from 10 a.m. to 6 p.m. ET.
Other pet insurance companies to consider
Not ready to make a decision? You may be interested in these other pet insurance companies:
How we review pet insurance
Our writers and editors follow strict editorial guidelines that ensure fairness and accuracy to help you choose the financial products that work best for you. In our pet insurance reviews, we consider coverage, discounts, financial strength ratings from AM Best and more to determine our star ratings.
Our rating system rewards companies that cover a wide range of potential expenses, offer many ways to customize your plan and have a strong financial rating. Within the consumer experience category, we looked at features such as mobile app ratings and whether the company offers direct vet payments. To calculate each insurer’s rating, we adjusted the scores to a curved 5-point scale.
Frequently asked questions
Does ManyPets cover neutering or spaying?
ManyPets doesn’t cover neutering and spaying for your pet, even under a wellness plan. This is unusual, as many pet insurance companies will reimburse you for spay or neuter surgery if you have a preventive care package. Learn more about which pet insurance companies cover spaying or neutering.
Does ManyPets cover dental issues?
ManyPets covers dental injuries and illnesses as long as they’re not related to a pre-existing condition. If you have a wellness plan, you can get reimbursed up to $150 per year for preventive care like cleanings, dental chews and toothbrushes. Learn more about pet dental insurance.
How do I cancel ManyPets insurance?
You can cancel your ManyPets insurance at any time by calling or emailing the company. It will cancel your policy and stop future premium payments. If you aren’t happy with the policy within the first 30 days and haven’t made a claim, you can cancel for a full refund in most states.
Real estate investing can be an effective way to hedge against the effects of inflation in a portfolio while generating a steady stream of income. When it comes to how to invest in real estate, there’s no single path to entry.
Where you decide to get started can ultimately depend on how much money you have to invest, your risk tolerance, and how hands-on you want to be when managing real estate investments.
Why Invest in Real Estate?
Real estate investing can yield numerous benefits, for new and seasoned investors alike. Here are some of the main advantages to consider with property investments.
• Real estate can diversify your portfolio, allowing you to better balance risk and rewards.
• Provides the opportunity to generate investment returns outside of owning securities such as stocks, ETFs, or bonds.
• Historically, real estate is often seen as a hedge against inflation, since property prices tend to increase in tandem with price increases for other consumer goods and services.
• Owning real estate investments can allow you to generate a steady stream of passive income in the form of rents or dividends.
• Rental property ownership can include some tax breaks since the IRS allows you to deduct ordinary and necessary expenses related to operating the property.
• Real estate may appreciate significantly over time, which could result in a sizable gain should you decide to sell it. However, real estate can also depreciate in value, leading to a possible loss or negative return. Investors should know that the real estate market is different than the stock market, and adjust their expectations accordingly.
There’s one more thing that makes real estate investing for beginners particularly attractive: There are many ways to do it, which means you can choose investments that are best suited to your needs and goals.
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Alternative investments, now for the rest of us.
Start trading funds that include commodities, private credit, real estate, venture capital, and more.
7 Ways to Invest in Real Estate
Real estate investments can take different forms, some of which require direct property ownership and others that don’t. As you compare different real estate investments, here are some important things to weigh:
• Minimum investment requirements
• Any fees you might pay to own the investment
• Holding periods
• Past performance and expected returns
• Investment-specific risk factors
With those things in mind, here are seven ways to get started with real estate investing for beginners.
1. Real Estate Investment Trusts (REITs)
A real estate investment trust (REIT) is a company that owns and operates income-producing properties. The types of properties you might find in a REIT include warehouses, storage facilities, shopping centers, and office space. A REIT may also own mortgages or mortgage-backed securities.
REITs allow investors to enjoy the benefits of property ownership without having to buy a building or land. Specifically, that means steady income as REITs are required to pay out 90% of taxable income annually to shareholders in the form of dividends. Most REIT dividends are considered to be ordinary income for tax purposes.
Many REITs are publicly traded on an exchange just like a stock. That means you can buy shares through your brokerage account if you have one, making it relatively easy to add REITs to your portfolio. Remember to consider any commission fees you might pay to trade REIT shares in your brokerage account.
2. Real Estate Funds
Real estate funds are mutual funds that own a basket of securities. Depending on the fund’s investment strategy, that may include:
• Individual commercial properties
• REITs
• Mortgages and mortgage-backed securities
Mutual funds also trade on stock exchanges, just like REITs. One of the key differences is that mutual funds are not required to pay out dividends to investors, though they can do so.
Instead, real estate funds aim to provide value to investors in the form of capital appreciation. A real estate fund may buy and hold property investments for the long term, in anticipation of those investments increasing in value over time.
Investing in a real estate fund vs. REIT could offer broader exposure to a wider range of property types or investments. A REIT, for instance, may invest only in hotels and resorts whereas a real estate mutual fund may diversify with hotels, office space, retail centers, and other property types.
3. REIT ETFs
A REIT ETF or exchange-traded fund is similar to a mutual fund, but the difference is that it trades on an exchange just like a stock. There’s also a difference between REIT ETFs and real estate mutual funds regarding what they invest in. With a REIT ETF, holdings are primarily concentrated on real estate investment trusts only.
That means you could buy a single REIT ETF and gain exposure to 10, 20 or more REITs in one investment vehicle.
Some of the main advantages of choosing a REIT ETF vs. real estate funds or individual REITs include:
• Increased tax efficiency
• Lower expense ratios
• Potential for higher returns
A REIT ETF may also offer a lower minimum investment than a REIT or real estate fund, which could make it suitable for beginning investors who are working with a smaller amount of capital.
But along with those advantages, investors should know about some of the potential drawbacks:
• ETF values may be sensitive to interest rate changes
• REIT ETFs may experience volatility related to property trends
• REIT ETFs may be subject to several other types of risk, such as management and liquidity risk more so than other types of ETFs.
As always, investors should consider the risks along with the potential advantages of any investment.
4. Real Estate Crowdfunding
Real estate crowdfunding platforms allow multiple investors to come together and pool funds to fund property investments. The minimum investment may be as low as $500, depending on which platform you’re using, and if you have enough cash to invest you could fund multiple projects.
Compared to REITs, REIT ETFs, or real estate funds, crowdfunding is less liquid since there’s usually a required minimum holding period you’re expected to commit to. That’s important to know if you’re not looking to tie up substantial amounts of money for several years.
You’ll also need to meet a platform’s requirements before you can invest. Some crowdfunding platforms only accept accredited investors. To be accredited, you must:
• Have a net worth over $1 million, excluding your primary residence, OR
• Have an income of $200,000 ($300,000 if married) for each of the prior two years, with the expectation of future income at the same level
You can also qualify as accredited if you hold a Series 7, Series 65, or Series 82 securities license.
5. Rental Properties
Buying a rental property can help you create a long-term stream of income if you’re able to keep tenants in the home. Some of the ways you could generate rental income with real estate include:
• Buying a second home and renting it out to long-term tenants
• Buying a vacation home and renting it to short-term or seasonal tenants
• Purchasing a multi-unit property, such as a duplex or triplex, and renting to multiple tenants
• Renting a room in your home
But recognize the risks or downsides associated with rental properties, too:
• Negative cash flow resulting from tenancy problems
• Problem tenants
• Lack of liquidity
• Maintenance costs and property taxes
Further, the biggest consideration with rental properties usually revolves around how you’re going to finance a property purchase. You might try for a conventional mortgage, an FHA loan if you’re buying a multifamily home and plan to live in one of the units, a home equity loan or HELOC if you own a primary residence, or seller financing.
Each one has different credit, income, and down payment requirements. Weighing the pros and cons of each one can help you decide which financing option might be best.
6. Fix and Flip Properties
With fix-and-flip investments, you buy a property to renovate and then resell it for (ideally) a large profit. Becoming a house flipper could be lucrative if you’re able to buy properties low, then sell high, but it does take some knowledge of the local market you plan to sell in.
You’ll also have to think about who’s going to handle the renovations. Doing them yourself means you don’t have to spend any money hiring contractors, but if you’re not experienced with home improvements you could end up making more work for yourself in the long run.
If you’re looking for a financing option, hard money loans are one possibility. These loans let you borrow enough to cover the purchase price of the home and your estimated improvements, and make interest-only payments. However, these loans typically have terms ranging from 9 to 18 months so you’ll need to be fairly certain you can sell the property within that time frame.
7. Invest in Your Own Home
If you own a home, you could treat it as an investment on its own. Making improvements to your property that raise its value, for example, could pay off later should you decide to sell it. You may also be able to claim a tax break for the interest you pay on your mortgage.
Don’t own a home yet? Understanding what you need to qualify for a mortgage is a good place to start. Once you’re financially ready to buy, you can take the next step and shop around for the best mortgage lenders.
How to Know If Investing in Real Estate Is a Good Idea for You
Is real estate investing right for everyone? Not necessarily, as every investor’s goals are different. Asking yourself these questions can help you determine where real estate might fit into your portfolio:
• How much money are you able and willing to invest in real estate?
• What is your main goal or reason for considering property investments?
• If you’re interested in rental properties, will you oversee their management yourself or hire a property management company? How much income would you need them to generate?
• If you’re considering a fix-and-flip, can you make the necessary commitment of time and sweat equity to get the property ready to list?
• How will you finance a rental or fix-and-flip if you’re thinking of pursuing either one?
• If you’re thinking of choosing REITs, real estate crowdfunding, or REIT ETFs, how long do you anticipate holding them in your portfolio?
• How much risk do you feel comfortable with, and what do you perceive as the biggest risks of real estate investing?
Talking to a financial advisor may be helpful if you’re wondering how real estate investments might affect your tax situation, or have a bigger goal in mind, like generating enough passive income from investments to retire early.
💡 Quick Tip: When you’re actively investing in stocks, it’s important to ask what types of fees you might have to pay. For example, brokers may charge a flat fee for trading stocks, or require some commission for every trade. Taking the time to manage investment costs can be beneficial over the long term.
The Takeaway
Real estate investing is one of the most attractive alternative investments for portfolio diversification. While you might assume that property investing is only for the super-rich, it’s not as difficult to get started as you might think. Keep in mind that, depending on how much money you have to invest initially and the degree of risk you’re comfortable taking, you’re not just limited to one option when building out your portfolio with real estate.
Ready to expand your portfolio’s growth potential? Alternative investments, traditionally available to high-net-worth individuals, are accessible to everyday investors on SoFi’s easy-to-use platform. Investments in commodities, real estate, venture capital, and more are now within reach. Alternative investments can be high risk, so it’s important to consider your portfolio goals and risk tolerance to determine if they’re right for you.
Invest in alts to take your portfolio beyond stocks and bonds.
FAQ
How Can I Invest in Property With Little Money?
If you don’t have a lot of money to invest in property, you might consider real estate investment trusts or real estate ETFs for your first investments. REITs and ETFs can offer lower barriers to entry versus something like purchasing a rental property or a fix-and-flip property.
Is Real Estate Investing Worth It?
Real estate investing can be worth it if you’re able to generate steady cash flow and income, hedge against inflation, enjoy tax breaks, and/or earn above-average returns. Whether investing in real estate is worth it for you can depend on what your goals are, how much money you have to invest, and how much time you’re willing to commit to managing those investments.
Is Investing in Real Estate Better Than Stocks?
Real estate tends to have a low correlation with stocks, meaning that what happens in the stock market doesn’t necessarily affect what happens in the property markets. Investing in real estate can also be attractive for investors who are looking for a way to hedge against the effects of inflation over the long term.
Is Investing in Real Estate Safer Than Stocks?
Just like stocks, real estate investments carry risk meaning one isn’t necessarily safer than the other. Investing in both real estate and stocks can help you create a well-rounded portfolio, as the risk/reward profile for each one isn’t the same.
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Individual customer accounts may be subject to the terms applicable to one or more of these platforms.
1) Automated Investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser (“SoFi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC.
2) Active Investing and brokerage services are provided by SoFi Securities LLC, Member FINRA (www.finra.org)/SIPC(www.sipc.org). Clearing and custody of all securities are provided by APEX Clearing Corporation.
For additional disclosures related to the SoFi Invest platforms described above please visit SoFi.com/legal.
Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform.
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.
Investment Risk: Diversification can help reduce some investment risk. It cannot guarantee profit, or fully protect in a down market.
[cd_fund-fees] Exchange Traded Funds (ETFs): Investors should carefully consider the information contained in the prospectus, which contains the Fund’s investment objectives, risks, charges, expenses, and other relevant information. You may obtain a prospectus from the Fund company’s website or by email customer service at [email protected]. Please read the prospectus carefully prior to investing.
Shares of ETFs must be bought and sold at market price, which can vary significantly from the Fund’s net asset value (NAV). Investment returns are subject to market volatility and shares may be worth more or less their original value when redeemed. The diversification of an ETF will not protect against loss. An ETF may not achieve its stated investment objective. Rebalancing and other activities within the fund may be subject to tax consequences.
Claw Promotion: Customer must fund their Active Invest account with at least $10 within 30 days of opening the account. Probability of customer receiving $1,000 is 0.028%. See full terms and conditions.
An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. This and other important information are contained in the Fund’s prospectus. For a current prospectus, please click the Prospectus link on the Fund’s respective page. The prospectus should be read carefully prior to investing. Alternative investments, including funds that invest in alternative investments, are risky and may not be suitable for all investors. Alternative investments often employ leveraging and other speculative practices that increase an investor’s risk of loss to include complete loss of investment, often charge high fees, and can be highly illiquid and volatile. Alternative investments may lack diversification, involve complex tax structures and have delays in reporting important tax information. Registered and unregistered alternative investments are not subject to the same regulatory requirements as mutual funds. Please note that Interval Funds are illiquid instruments, hence the ability to trade on your timeline may be restricted. Investors should review the fee schedule for Interval Funds via the prospectus.
HELOC, home equity loan, 5/1 adjustable-rate home equity loan
APR
From 7.49%
Credit score
Undisclosed
Contact info
Visit www.thirdfederal.com or call at 800-THIRD-FED (800-844-7333)
Operating out of Cleveland, Ohio, Third Federal Savings & Loan offers home equity lines of credit (HELOCs) in 26 states and home equity loans in eight states. With Third Federal, you can borrow up to $300,000 against the equity in your home. Although the bank doesn’t lend everywhere in the US, it made our list of the best home equity loan and HELOC lenders due to its easy online application process, lowest-rate guarantee and price transparency.
Third Federal Savings & Loan: At a glance
Types of loans offered
HELOC, home equity loan, 5/1 adjustable-rate home equity loan
APR range
From 7.49%
Loan amounts
From $10,000 to $300,000
Credit score requirements
Undisclosed
Repayment terms
HELOC: 10-year draw period, 20-year repayment period Home equity loan: Five- or 10-years
Average time for approval
Undisclosed
Rates as of March 26, 2024.
Third Federal is best suited for homeowners who need a long repayment period and want the option of choosing between a fixed-rate or variable-rate loan. It also offers a $1,000 lowest-rate guarantee: If you find a lower rate from another lender, Third Federal will match the rate or pay you up to $1,000. You just need to find the lower rate 10 days before closing on your loan.
What we like
Low fees: There are no applications or prepayment fees with Third Federal, and an annual $95 fee is waived the first year. You also don’t have to pay an origination fee or closing costs, which saves you thousands of dollars upfront.
Low minimum draw requirement: Sometimes minimum withdrawal requirements can make your loan more expensive because you end up wasting money paying interest on funds you never use. But with Third Federal, there is only a $10,000 minimum withdrawal requirement.
$1,000 lowest-rate guarantee: If you find a lower interest rate with comparable terms from another lender, Third Federal says it will beat the rate or pay you $1,000 as long as you find the rate up to 10 days before closing on your loan.
What we don’t like
Limited availability: Third Federal offers home equity loans in only eight states (California, Florida, Kentucky, New Jersey, North Carolina, Ohio, Pennsylvania and Virginia) and offers HELOCs in only 26 states and the District of Columbia. Most of its brick-and-mortar locations are clustered in Ohio and Florida.
No interest-only payments: You must pay back your principal balance from the start of your draw period, which will make your monthly payments higher from the very beginning. However, if you can afford it, this can also be a benefit for homeowners who want to tackle paying down their principal balance from day one, saving themselves money in interest over the lifetime of the loan.
Undisclosed credit score requirements: Without knowing the minimum credit score or this lender’s preferred credit score to receive its best rates, it’s hard to know whether it’s worth applying or how you compare to other applicants. Completing a full application for loan preapproval will result in a hard pull on your credit.
Home equity loan products
HELOC: With a Third Federal HELOC, you can borrow up to $300,000 (depending on how much equity you’ve built up) at a variable interest rate. It has a standard 10-year draw period followed by a 20-year repayment period.
Home equity loan: You can borrow a large sum of money with a Third Federal home equity loan. The bank has loan terms of five or 10 years.
5/1 adjustable-rate home equity loan: Third Federal also offers a unique 5/1 adjustable-rate home equity loan. If you opt for this loan type, your interest rate will be fixed for five years and then adjust annually after that. 5/1 adjustable-rate loans have terms ranging from 6-30 years.
Fees
There are minimal fees with Third Federal, which is why it’s good if you need financing but don’t want to spend a lot of money upfront to obtain it. You don’t have to pay an origination fee, application fee or closing costs, which provides valuable savings from the start. However, you must pay a $95 annual fee for HELOCs (but it’s waived the first year).
How to qualify
Third Federal doesn’t disclose its minimum credit score requirements. In order to get a personalized-rate quote, you must apply and provide your specific financial details, as well as personal information like your Social Security number, address and date of birth. As with any kind of home equity loan, you must have built up enough equity in your property over the years to qualify to borrow against it.
Most lenders typically require at least 15% to 20% home equity to be approved. Additionally, you must also have current homeowners’ insurance, as well as flood insurance if you live in a flood zone that requires it.
How to apply for a home equity loan or HELOC with Third Federal
You can apply for a home equity loan online, at one of its physical branches or over the phone, and the whole process should take only about 30 minutes, according to Third Federal.
Everything you need to get started on your application is clearly laid out on its website. Third Federal wants to see the following documentation to verify that you are creditworthy and will pay back your loan on time.
Gross annual or monthly income amount
Monthly payments for property tax and homeowners insurance
List of assets
Paystub dated within at least 30 days of the application date, illustrating year-to-date earnings of at least 30 days
Tax Form W-2 from the most recent year
Customer service
For general information about Third Federal’s home equity loans and HELOCs, you can visit Third Federal’s website, call its customer care department at 800-THIRD-FED (800-844-7333) or fill out a form on the website for a loan officer to contact you directly. You can also go in person to a branch location, which is an option not all lenders provide. For HELOCs and home equity loans specifically, when you need to activate your debit card to access your funds you can call the number below.
However, Third Federal isn’t open on Sundays and has limited hours on Saturday, which are only from 8:30 a.m. to 1:30 p.m. ET. You can call Monday through Friday from 8:30 a.m. to 5 p.m. ET and until 6 p.m. on Fridays.
Inside: Learn what 29 an hour is how much a year, month, and day. Plus tips to budget your money. Don’t miss the ways to increase your income.
You’re probably wondering if I made $29 a year, how much do I truly make? What will that add up to over the course of the year when working? Is $29 an hour good?
Is this wage something that I can actually live on? Or do I need to find ways that I can increase my hourly wage? How much more is $29.50 an hour annually?
When you finally start earning $29 an hour, you are happy with your progress as an hourly employee. Typically, this is when many hourly employees start to become salaried workers.
In this post, we’re going to detail exactly what $29 an hour is how much a year. Also, we are going to break it down to know how much is made per month, bi-weekly, per week, and daily.
That will help you immensely with how you spend your money. Because too many times the hard-earned cash is brought home, but there is no actual plan for how to spend that money.
By taking a step ahead and making a plan for the money, you are better able to decide how you want to live, make sure that you put your money goals first, and not just living paycheck to paycheck struggling to survive.
The ultimate goal with money success is to be wise with how you spend your money.
If that is something you want too, then keep reading. You are in the right place.
$29 an Hour is How Much a Year?
When we ran all of our numbers to figure out how much is $29 per hour is as an annual salary, we used the average working day of 40 hours a week.
40 hours x 52 weeks x $29 = $60,320
$60,320 is the gross annual salary with a $29 per hour wage.
As of June 2023, the average hourly wage is $33.58 (source).
Let’s Break Down Of 29 Dollars An Hour Is How Much A Year
Typically, the average workweek is 40 hours and you can work 52 weeks a year. Take 40 hours times 52 weeks and that equals 2,080 working hours. Then, multiply the hourly salary of $29 times 2,080 working hours, and the result is $60,320.
That number is the gross income before taxes, insurance, 401K, or anything else is taken out. Net income is how much you deposit into your bank account.
That is slightly above the $60000 salary threshold, which is desired to become middle-income worker.
Work Part Time?
But you may think, oh wait, I’m only working part time. So if you’re working part time, the assumption is working 20 hours a week at $29 an hour.
Only 20 hours per week. Then, take 20 hours times 52 weeks and that equals 1,040 working hours. Then, multiply the hourly salary of $29 times 1,040 working hours, and the result is $30,160.
Just over $30000 a year.
How Much is $29 Per Month?
On average, the monthly amount would average $5,027.
Annual Amount of $60,320 ÷ 12 months = $5,027 per month
Just over $5000 a month.
Since some months have more days and fewer days like February, you can expect months with more days to have a bigger paycheck. Also, this can be heavily influenced by how often you are paid and on which days you get paid.
Plus by increasing your wage from $24 an hour, you average an extra $867 per month. So, yes a few more dollars an hour add up!
Work Part Time?
Only 20 hours per week. Then, the monthly amount would average $2,513.
How Much is $29 per Hour Per Week
This is a great number to know! How much do I make each week? When I roll out of bed and do my job, what can I expect to make at the end of the week?
Once again, the assumption is 40 hours worked.
40 hours x $29 = $1,160 per week.
Work Part Time?
Only 20 hours per week. Then, the weekly amount would be $580.
How Much is $29 per Hour Bi-Weekly
For this calculation, take the average weekly pay of $1,160 and double it.
$1,160 per week x 2 = $2,320
Also, the other way to calculate this is:
40 hours x 2 weeks x $29 an hour = $2,320
Work Part Time?
Only 20 hours per week. Then, the bi-weekly amount would be $1,160.
How Much is $29 Per Hour Per Day
This depends on how many hours you work in a day. For this example, we are going to use an eight-hour workday.
8 hours x $29 per hour = $232 per day.
If you work 10 hours a day for four days, then you would make $290 per day. (10 hours x $29 per hour)
Work Part Time?
Only 4 hours per day. Then, the daily amount would be $116.
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$29 Per Hour is…
$29 per Hour – Full Time
Total Income
Yearly Salary (52 weeks)
$60,320
Yearly Wage (50 weeks)
$58,000
Monthly Salary (173 hours)
$5,027
Weekly Wage (40 Hours)
$1,160
Bi-Weekly Wage (80 Hours)
$2,320
Daily Wage (8 Hours)
$232
Net Estimated Monthly Income
$3,834
**These are assumptions based on simple scenarios.
Paid Time Off Earning 29 Dollars an Hour
Does your employer offer paid time off?
As an hourly employee, you may or may not get paid time off.
So, here are the scenarios for both cases.
For general purposes, we are going to assume you work 40 hours per week over the course of the year.
Case # 1 – With Paid Time Off
Most hourly employees get two weeks of paid time off which is equivalent to 2 weeks of paid time off.
In this case, you would make $60,320 per year.
This is the same as the example above for an annual salary making $29 per hour.
Case #2 – No Paid Time Off
Unfortunately, not all employers offer paid time off to their hourly employees. While that is unfortunate, it is best to plan for less income.
Life happens. There will be times you need to take time off for numerous reasons – sick time, handling an emergency, or even vacation.
So, let’s assume you take 2 weeks off without paid time off.
That means you would only work 50 weeks of the year instead of all 52 weeks. Take 40 hours times 50 weeks and that equals 2,000 working hours. Then, multiply the hourly salary of $29 times 2,000 working hours, and the result is $58000 per year.
40 hours x 50 weeks x $29 = $58,000
You would average $232 per working day and nothing when you don’t work.
$29 an Hour is How Much a year After Taxes
Let’s be honest… Taxes can take up a big chunk of your paycheck. Thus, you need to know how taxes can affect your hourly wage.
Also, every single person’s tax situation is different.
On the basic level, let’s assume a 12% federal tax rate and a 4% state rate. Plus a percentage is taken out for Social Security and Medicare (FICA) of 7.65%.
Gross Annual Salary: $60,320
Federal Taxes of 12%: $7,238
State Taxes of 4%: $2,413
Social Security and Medicare of 7.65%: $4,614
$29 an Hour per Year after Taxes: $46,054
This would be your net annual salary after taxes.
To turn that back into an hourly wage, the assumption is working 2,080 hours.
$46054 ÷ 2,080 hours = $22.14 per hour
After estimated taxes and FICA, you are netting $22.14 an hour. That is $6.86 an hour less than what you thought you were paid.
This is a very highlighted example and can vary greatly depending on your personal situation. Therefore, here is a great tool to help you figure out how much your net paycheck would be.
Plus budgeting for under $22 an hour wage is much different.
$29 An Hour Salary Calculator
Now, you get to figure out how much you make based on your hours worked or if you make a wage between $29.01-29.99.
This is super helpful if you make $29.15, $29.45, or $29.81.
Also, if you work various hours other than the standard 40 hours per week. You can adjust to your personal situation.
$29 an Hour Budget – Example
You are probably wondering can I live on my own making 29 dollars an hour? How much rent or mortgage payment can you afford on 29 an hour?
Using our Cents Plan Formula, this is the best-case scenario on how to budget your $29 per hour paycheck.
When using these percentages, it is best to use net income because taxes must be paid.
In this example, above we calculated that $29 an hour was $22.14 after taxes. That would average $3838 per month.
According to the Cents Plan Formula, here is the high-level view of a $29 per hour budget:
Basic Expenses of 50% = $1919
Save Money of 20% = $768
Give Money of 10% = $384
Fun Spending of 20% = $768
Debt of 0% = $0
Obviously, that is not doable for everyone. Even though you would expect your money to go further when you are making double the minimum wage. So, you have to be strategic in ways to decrease your basic expenses and debt. Then, it will allow you more money to save and fun spending.
To further break down an example budget of $29 per hour, then using the ideal household percentages is extremely helpful.
recommended budget percentages based on $29 per hour wage:
Category
Ideal Percentages
Sample Monthly Budget
Giving
10%
$402
Savings
15-25%
$1005
Housing
20-30%
$1,181
Utilities
4-7%
$176
Groceries
5-12%
$385
Clothing
1-4%
$20
Transportation
4-10%
$176
Medical
5-12%
$251
Life Insurance
1%
$15
Education
1-4%
$25
Personal
2-7%
$75
Recreation / Entertainment
3-8%
$126
Debts
0% – Goal
$0
Government Tax (including Income Taxes, Social Security & Medicare)
15-25%
$1,189
Total Gross Income
$5,027
**In this budget, prioritization was given to basic expenses.
Can I Live off $29 Per Hour?
At this $29 hourly wage, you are more than likely double the minimum wage. Things should be easy to live off this $29 hourly salary.
However, it is still slightly above the median income of over $60,000 salary. That means it can still be a tough situation.
Is it doable? Absolutely.
In fact, $29 an hour is higher than the median hourly wage of $19.33 (source). That seems backward, but typically salaried workers earn more per hour than hourly workers.
Can you truly live off $29 an hour annually?
You just have to have the desire to spend less than your income. Plus consistently save.
If you are constantly struggling to keep up with bills and expenses, then you need to break that constant cycle. It is possible to be smart with money.
Your mindset is everything.
This is what you say to yourself… Okay, I have aspirations and goals to increase how much I make. This is the time to start diversifying my income into multiple streams and start investing. I am going to stretch my 29 dollars per hour.
In the next section, we will dig into ways to increase your income, but for now, is it possible to live on $29 an hour?
Yes, you can do it, and as you can see it is possible with the sample budget of $29 per hour.
Living in a higher cost of living area would be more difficult. So, you may have to get a little creative. For example, you might have to have a roommate. Move to a lower cost of living area where rent is cheaper.
Also, you must evaluate your “fun spending” items. Many of those expenses are not mandatory and will break your budget. You can find plenty of free things to do without spending money.
5 Ways to Increase Your Hourly Wage
This right here is the most crucial section of this post.
You need to figure out ways to increase your hourly income because I’m going to tell you…you deserve more. You do a good job and your value is higher than what your employers pay you.
Even an increase of 50 cents to $29.50 will add up over the year. An increase to $30 an hour is a big milestone!
1. Ask for a Raise
The first thing to do is ask for a raise. Walk right in and ask for a raise because you never know what the answer will be until you ask.
If you want the best tips on how specifically to ask for a raise and what the average wage is for somebody doing your job, then check out this book. In this book, the author gives you the exact way to increase your income. The purchase is worth it or go down to the library and check that book out.
2. Look for A New Job
Another way to increase your hourly wage is to look for a new job. Maybe a completely new industry.
It might be a total change for you, but many times, if you want to change your financial situation, then that starts with a career change. Maybe you’re stressed out at work. Making $29 an hour is too much for you and you’re not able to enjoy life, maybe changing jobs and finding another job may increase your pay, but it will also increase your quality of life.
3. Find a New Career
Because of student loans, too many employees feel like they are stuck in the career field they chose. They feel sucked into the job that they don’t like or have the potential they thought it would.
For many years, I was in the same situation until I decided to do a complete career change. I am glad I did. I have the flexibility that I needed in my life to do what I wanted when I needed to do it. Plus I am able to enjoy my entrepreneurial spirit.
4. Find Alternative Ways to Make Money
In today’s society, you need to find ways to make more money. Period.
There is no way to get around it. You need to find additional income outside a traditional nine-to-five position or typical 40 hour a week job. You will reach a point where you are maxed on what you can make in your current position or title. There may be some advancement to move forward, but in many cases, there just is not much room for growth.
So, you need to find a side hustle – another way to make money.
Do something that you enjoy, turn your hobby into a way to make money, turn something that you naturally do, and help others into a service business. In today’s society, the sky is the limit on how you can earn a freelancing income.
Must Read: How to Make Quick Money in One Day: 50 Best Ways to Make Cash
5. Earn Passive Income
The last way to increase your hourly wage is to start earning passive income.
This can be from a variety of ways including the stock market, real estate, online courses, book sales, etc. This is where the differentiation between struggling financially and becoming financially sound.
By earning money passively, you are able to do the things that you enjoy doing and not be loaded down, with having a job that you need to work, and a place that you have to go to. And you still make money doing nothing.
Here is an example:
You can start a brokerage account and start trading stocks for $50. You need to learn and take the one and only investing class I recommend. Learn how the market works, watch videos, and practice in a simulator before you start using your own money.
One gentleman started with $5,000 in his trading account and now has well over $36,000 in 8 months. Just from practice and being consistent, he has learned that passive income is the way for him to increase his income and also not be a slave to his job.
Watch his inspiring story!
Tips to Live on $29 an Hour
In this last section, grasp these tips on how to live on a $29 an hour or just above $60k yearly salary. On our site, you can find lots of money saving tips to help stretch your income further.
Here are the most important tips to live on $29 an hour. More importantly stretch how much you make, in case you are in the “I don’t want to work anymore” mindset. Highlight these!
1. Spend Less Than you Make
First, you must learn to spend less than you make.
If not you will be caught in the debt cycle and that is not where you want to be. You will be consistently living paycheck to paycheck.
In order to break that dreadful cycle, it means your expenses must be less than your income.
And when I say income, it’s not the $29 an hour. As we talked about earlier in the post, there are taxes. The amount of taxes taken out of your paycheck is called your net income which is $29 an hour minus all the taxes, FICA, Social Security, and Medicare are taken out. That is your net income.
So, your net income has to be less than your gross income. Learn more on gross pay vs net pay.
2. Living Below Your Means
You need to be happy. And living on less can actually make you happier. Studies prove that less is better.
Finding contentment in life is one thing that is a struggle for most.
We are driven to want the new shiny toy, the thing next door, the stuff your friend or family member got. Our society has trained you that you need these things as well.
Have you ever taken a step back and looked at what you really need?
Once you are able to find contentment with life, then you are going to be set for the long term with your finances.
Here is our story on owning less stuff. We have been happier since.
3. Make Saving Money Fun
You need to make saving money fun. If you’re good, since you must keep your expenses low, you have to find ways to make your savings fun!
Find new ways of saving money and have fun with it.
Even better, get your family and kids involved in the challenge to save money. Tell them the reason why you are saving money and this is what you are doing.
Here are 101 things to do with no money. Free activities without costing you a dime. That is an amazing resource for you and you will never be bored.
And you will learn a lot of things in life you can do for free. Personally, some of the best ones are getting outside and enjoying some fresh air.
4. Make More Money
If you want if you do not settle for less, then find ways to make more money. If you want more out of life, then increase your income.
You need to be an advocate for yourself.
Find ways to make more money.
It could be a side hustle, a second job, asking for a raise, going to school to change careers, or picking up extra hours.
Whatever path you take, that’s fine. Just find ways to make more money. Period.
5. No State Taxes
Paying taxes is one option to increase what you take home in each paycheck.
These are the states that don’t pay state income taxes on wages:
Alaska
Florida
Nevada
New Hampshire
South Dakota
Tennessee
Texas
Washington
Wyoming
It is very interesting if you take into account the amount of state taxes paid compared to a state with income taxes.
Also, if you live in one of the higher taxed states, then you may want to reconsider moving to a lower cost of living area. The higher taxes income tax states include California, Hawaii, New Jersey, Oregon, Minnesota, the District of Columbia, New York, Vermont, Iowa, and Wisconsin. These states tax income somewhere between 7.65% – 13.3%.
6. Stick to a Budget
You need to learn how to start a budget. We have tons of budgeting resources for you.
While creating a budget is great, you need to learn how to use one.
You do not have to budget down to every last penny.
You need to make sure your expenses are less than your income and that you are creating sinking funds for those irregular expenses.
Budget Help:
7. Pay Off Debt Quickly
The amount that you pay interest on debt is absolutely absurd.
Unfortunately, that is how many of these companies make their money from the interest you pay on debt.
If you are paying 5% to even 20-21% or higher, you need to find ways to lower that debt quickly.
Here’s a debt calculator to help you. Figure out your debt-free date.
Make that paying off debt fast is your target and main focus. I can tell you from personal experience, that it was not until we paid off our debt that we finally rounded the corner financially. Once our debt was paid off, we could finally be able to save money. Set money aside in separate bank accounts and pay for cash for things.
It took us working hard to pay off debt. We needed persistence and patience while we had setbacks in our debt-free journey.
Jobs that Pay $29 an Hour
You can find jobs that pay $29 per hour. Polish up that resume, cover letter, and interview skills.
Job Search Hint: Always send a written follow-up thank you note for your interview. That will help you get noticed and remembered.
First, look at the cities that require a minimum wage in their cities. That is the best place to start to find jobs that are going to pay higher than the federal minimum wage rate. Many of the cities are moving towards this model so, target and look for jobs in those areas.
Possible Ideas:
Virtual Assistant – Get free training NOW!
Freelance writer
Class A Truck Driver
Managers
Entry Level Marketing Jobs
Data Entry Clerks
Customer service managers
Bank tellers
Maintenance workers
Freight broker – Learn how easy it is to start!
Administrative assistants
Athletic Trainers
Event Planners
Day trader
Security guard
Movers
Cashiers
Warehouse workers
Companies that pay more than $29 per hour: Wells Fargo, Disney World, Disney Land, Bank of America, Cigna, Aetna, etc
$29 Per Hour Annual Salary
In this post, we detailed 29 an hour is how much a year. Plus all of the variables that can impact your net income. This is something that you can live off.
$60,320
That is making between $60000 a year and $62000 a year.
In this post, we highlighted ways to increase your income as well as tips for living off your wage.
Use the sample budget as a starting point with your expenses.
You will have to be savvy and wise with your hard-earned income. But, with a plan, anything is possible!
Still thinking I don’t want to work anymore, you aren’t alone and need to start to plan for your early retirement.
Learn exactly how much do I make per year…
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
Money orders and cashier’s checks are both payment methods similar to personal checks. However, a money order is issued and guaranteed by the retailer where it was purchased, while a cashier’s check is issued and guaranteed by a bank.
Money orders and cashier’s checks are payment methods that look much like personal checks. Their similarities may make it difficult to choose between a money order versus a cashier’s check.
Money orders and cashier’s checks are similar to paying by check—you write them out to the recipient for the amount due. The difference is in who guarantees the money. In a money order, the amount is guaranteed by the retailer that sold it, while the funds of a cashier’s check are guaranteed by the bank’s checking account.
We break down the similarities and differences between money orders and cashier’s checks so you can use the right payment method for your situation.
Table of Contents:
What Is a Cashier’s Check?
What Is a Money Order?
Similarities between Cashier’s Checks and Money Orders
Differences between Cashier’s Checks and Money Orders
What Is a Cashier’s Check?
A cashier’s check is a check issued and guaranteed by a financial institution such as a bank or credit union. The funds for a cashier’s check are withdrawn from the bank’s checking account rather than your personal account. A person typically uses them for large purchases.
To get a cashier’s check, you’ll go to a bank or credit union, preferably one where you have an account. Some banks and credit unions may issue a cashier’s check without an account, so call ahead and ask. Tell the teller the amount and recipient of the check, and they will print it out for you after taking the money out of your account, plus a fee for issuing the cashier’s check. The recipient then cashes the check to get the money, just like a personal check.
The benefits of a cashier’s check compared to a personal check include:
A cashier’s check has no risk of bouncing.
A cashier’s check includes guaranteed funds.
Funds are immediately available to the recipient when the check is cashed, while large withdrawals from a personal account may take up to five days to be available.
Increased security features make counterfeiting less likely.
No personal data connects you or your account to the funds.
Faster processing than personal checks gets money to the recipient quicker.
What’s a Money Order?
A money order is a paper document used to make payments. You pay the sum of the money order to the bank or retailer and specify the recipient. The bank then issues the money order, which looks like a check. Because you’ve prepaid for the money order total, the funds are guaranteed. There is no risk that it will bounce like a personal check.
To get a money order, head to any retailer that sells them, such as a bank, credit union, post office, or the customer service desk of a supermarket or convenience store. You’ll fill out the money order, including:
The recipient’s name and address
Your name and address
Memo field (a description of the purpose of the money order)
Then, you’ll sign the front of the money order before paying for the money order, which will include the amount the money order is made out for, plus additional fees. The retailer will issue a receipt, which you’ll want to keep for your records.
Similarities Between Money Orders and Cashier’s Checks
Money orders and cashier’s checks share some traits. These traits make them more appealing than paying by cash, check, or credit card.
Both Are Similar to Checks
Recipients deposit both money orders and cashier’s checks into their accounts as they would a personal or business check. Alternatively, a recipient can cash a cashier’s check or money order at a bank or credit union that allows cashing these payment options.
Both Benefit Recipients
Both cashier’s checks and money orders guarantee that the funds exist, unlike a personal or business check. Unless counterfeit, there’s no risk that either will bounce. This can assure the recipient that your money is guaranteed, which makes it an appealing option in certain situations, such as paying rent.
Both Offer Privacy
Neither money orders nor cashier’s checks require personal information from the payer or payee. Unlike a personal check, they do not include your address or phone number.
Both Are Hard to Stop Payment On
Stopping payment on a cashier’s check or money order is difficult, and it’s all but impossible once the recipient cashes the check or money order.
Differences Between Money Orders and Cashier’s Checks
Even though they look like checks, there are differences between money orders and cashier’s checks.
Different Maximums
The maximum amount for money orders is roughly $700 to $1,000. Actual amounts depend on the issuing bank or credit union. Cashier’s checks have higher limits, even up to hundreds of thousands of dollars.
Different Issuers
You can purchase a money order by walking into any store that sells them. These stores include convenience stores, pharmacies, post offices, grocery stores, banks, and credit unions. You cannot purchase money orders online.
You can only purchase cashier’s checks from banks and credit unions. It’s best to go to your own bank or credit union for a cashier’s check, but if you don’t have an account at a local branch, you can also get a cashier’s check:
Online, by mail, or by fax from a bank or credit union where you have an account
From an online bank where you have an account
From a bank where you do not have an account—if you have cash for the amount and the bank is willing
Some banks restrict who can order cashier’s checks online and where you can send them.
Different Trust Levels
Cashier’s checks are more trusted than money orders because banks issue and guarantee cashier’s checks. Money orders are seen as less trustworthy (although more trustworthy than a personal check).
Different Costs
Both cashier’s checks and money orders include a cost. You can purchase money orders for 70 cents to $5 above the value of the order, depending on the issuer. Cashier’s checks can cost $10 on top of the check’s value. Some banks and credit unions may waive the fee for select customers.
They are also issued by the banks, which have a higher reputation compared to the low reputation of the mass sellers who often sell money orders for a dollar.
Availability of Funds
The first $5,000 of a cashier’s check is typically available within one business day. The remaining funds will take longer to become available. Money order funds also take longer. Only the first $200 is available within a business day.
Money orders purchased from the United States Postal Service typically ensure funds are available within a business day.
When to Use a Money Order vs. a Cashier’s Check
There is a time and a place for money orders and cashier’s checks.
Use a money order when:
You don’t want to share personal information on a check.
You are paying a smaller amount (less than $1,000).
You are sending money overseas. First confirm that your issuer’s money orders can be cashed overseas.
Use a cashier’s check when:
You want to protect your personal information.
You are making a large payment (for example, buying a home or a car).
The merchant you are working with requires it for security purposes.
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You stop by your local supermarket on Sunday. It’s more crowded than usual, which makes finding a parking spot a little tough. You usually pick up a favorite brand’s organic, free-range chicken breasts, but you haven’t seen them stocked in a while. Instead, all that’s available are factory-farm brands — and they seem more expensive than they should be.
And those dog biscuits from the mom-and-pop bakery across town? They’re usually here, but you can’t find them, either. You’d ask an associate for help finding them, but you don’t see any employees who aren’t busy at the registers or behind the counter.
A version of this lackluster shopping experience is what antitrust experts fear everyday shoppers may encounter if The Kroger Company’s $24.6 billion acquisition of Albertsons Companies Inc. — which would be the largest grocery merger in the nation’s history — is permitted to close. On Feb. 26, the Federal Trade Commission filed a motion to block the acquisition, which was announced in 2022. Attorneys general from eight states and Washington, D.C., joined the FTC in its suit, and the attorneys general in two other states — Colorado and Washington — filed suits of their own against the move to combine the companies.
Several antitrust experts, including academics, public policy researchers and financial analysts, told NerdWallet that a merged Kroger and Albertsons could lead to less product variety, lower product quality, higher grocery prices and an overall worse shopping experience, with stores having fewer employees available for customer service. For workers, many of whom are part of the United Food and Commercial Workers International Union (UFCW), the proposed acquisition may threaten the competitive benefits and retirement packages that the union secured, UFCW representatives told NerdWallet.
One crux of the FTC’s case against the deal is the idea that a combined Kroger-Albertsons would create a monopoly in the supermarket sector, which it considers distinct from other kinds of food retail sectors, such as club stores (Sam’s Club, Costco), premium and organic stores (Whole Foods, Sprouts), superstores (Target, Walmart), dollar stores and e-commerce sellers.
“The FTC is saying that, among and within the entire constellation of companies that sell groceries at retail, there are niches within that larger constellation that matter, and one of them consists entirely of traditional grocery stores,” says James B. Speta, a professor of law at Northwestern University’s Pritzker School of Law. “The company is going to argue, ‘Oh, no, you’ve got to include all these others.’ When you do, composition in that larger market is less significant.”
And that is exactly what proponents of the acquisition say: that the real competition in retail grocery comes from Walmart and other non-traditional outlets.
Scott Moses, partner and head of the grocery, pharmacy and restaurants investment banking practice at Solomon Partners, a financial advisory firm, is representing Albertsons in the deal. Moses says it doesn’t make sense to consider the supermarket sector as distinct from the broader food retail market, which now includes companies like Walmart, Amazon, Costco, Target and several others. All of these companies have invested heavily in their grocery retail businesses over the past decade, competing with supermarkets and fundamentally altering the American grocery landscape.
Walmart owns a 30% market share of broader food retail, based on February 2024 earnings reports, Moses said, and traditional supermarket grocers make up 36% of the food retailers market when supercenters, dollar chains, specialty grocers and online sellers are included. The deal is essential for Kroger and Albertsons to survive the existential threat posed by those retailers, he says.
“The amount of capital that these folks are spending to drive their subscribed members and retain customers is radically more than any supermarket can remotely fathom competing with,” Moses says. “They simply cannot do it.”
Proponents and opponents of the acquisition slice the retail food market differently and tend to cite numbers that bolster their case. According to data from Food & Water Watch, a nongovernmental organization focused on corporate accountability, a combined Kroger and Albertsons would, alongside Walmart, control 55% of the food retail market, excluding convenience stores.
Based on a broader definition of food retailers that Kroger and Albertsons prefer, the new combined company would be the second-largest food retailer in the U.S., with an 11.8% market share, second to Walmart’s 17.1% share, based on widely reported rankings from the research firm GlobalData.
Less ‘urgency’ to innovate for customers, skeptics say
Kroger and Albertsons collectively own and operate nearly 5,000 stores in 48 states. Combined, they employ nearly 700,000 workers. The companies own more than 40 standalone grocery brands, including Safeway, Fred Meyer, Jewel-Osco, Ralphs, Dillons, Tom Thumb and Vons. Their brands are in all regions of the continental U.S. but are concentrated in the West, Midwest and New England. You’ve almost certainly visited one of their stores, and there’s a solid chance that a supermarket owned by either Kroger or Albertsons is your regular grocery store of choice.
Because Kroger and Albertsons are currently competitors, they’re naturally motivated to experiment with product offerings, promotions and prices, says William E. Kovacic, director of the Competition Law Center at George Washington University. These experiments can include stocking well-liked, locally made products that cost more to buy from suppliers than mass-produced alternatives, running sales during peak shopping seasons, or offering ready-to-eat meals and hot bar options.
“The FTC argues that the transaction will reduce the urgency that companies feel to do those kinds of things,” Kovacic says.
From the companies’ perspective, there’s no shortage of urgency to continue innovating and investing in product variety and promotions, Moses says, due to increased competition from Walmart, Costco and other non-supermarket food retailers. He says he first noticed similarities around 15 years ago between competition in the grocery space and the kinds of disruptions that eventually leveled the department store space, which led to hundreds of store closures, bankruptcies and job losses. Those department store disruptions came from some of the same retailing giants currently competing in the grocery space, like Amazon, Walmart and Target.
The continued existence of supermarkets is not guaranteed, Moses says. “If supermarket grocers aren’t allowed to level the playing field, it will not be long before grocery looks like department stores, with thousands of supermarkets closed and millions of union jobs lost.”
Conversely, antitrust experts worry that under a combined Kroger-Albertsons company, consumers would wind up paying the same or higher prices for food products of equal or lower quality. Eleanor Fox, an antitrust expert and professor at New York University School of Law, pointed to the $26 billion merger of Sprint and T-Mobile in 2020 as an illustration of how two companies that already command significant market share — just as Kroger and Albertsons do in the supermarket sector — can often behave after a merger.
In 2023, a federal judge in Chicago ruled that the merger led consumers to “pay higher prices” via “taxes and fees that were previously included in the plan prices, paying new fees and surcharges, or paying more for device protection plans or accessories.”
Of course, telecommunications and grocery are two starkly different industries. Still, Fox says the case is an example of how companies will often raise prices when facing less competition, simply because they can.
“When the competitor goes away, they can manipulate, they can do various things, they can decrease quality, they can decrease service,” Fox says. “They can simply not lower prices when their costs go down.”
Kroger, for its part, has publicly committed to lowering prices following the acquisition.
Workers fear losing hard-fought union benefits
Workers advocates are concerned about the potential acquisition’s impacts and fear workers may lose significant retirement packages, benefits and work shifts if Kroger and Albertsons combine.
Kroger and Albertsons are the two largest employers of unionized grocery workers in the U.S., and the majority of their employees are represented by the UFCW. That’s a powerful negotiating tool for the union, specifically when one company is more open to an agreement or proposal than the other company, says John Marshall, capital strategies director for UFCW Local 300, which represents members across Washington state, northeast Oregon, and northern Idaho.
“Currently, we can go to Albertsons, get a tentative agreement on that particular proposal, and then go to Kroger and say, ‘Look, this is what Albertsons has agreed to. If you don’t also agree to this, we may end up going on strike at the Kroger stores,’” Marshall says. “Yeah, Kroger understands that’s a very effective tool.”
If Kroger’s acquisition goes through, Marshall says the union’s negotiating power would be weakened, and benefits once guaranteed by the union — like its competitive pension plan — may be in flux, Marshall says.
Moses disagrees.
“Stronger company unions get better wages and benefits for their members than weaker company unions, because the weaker company unions can’t afford better benefits,” Moses says. “Teammates will actually be better off.”
Most union members receive a defined benefit pension plan, says Bertha Rodríguez, a representative of UFCW 770, which represents workers in California. Under that plan, a union employee can expect retirement payouts comparable to their Social Security benefits, Marshall says, and the pension pays employees for life.
Defined benefit plans are almost always better for employees than defined contribution plans, as individuals can outlive the funds available in a 401(k) retirement account. Plus, having a defined benefit plan makes it easier to plan for retirement, because workers know exactly what their retirement savings will be worth when they retire. Also, defined benefit plans are guaranteed to pay the worker for as long as they live, unlike defined contribution plans, which can run out.
“The retirement and health care that our union has negotiated are generally far superior to nonunion benefits,” Marshall says.
Because individuals can withdraw from their 401(k) accounts before retirement, many employees wind up doing just that to cover unexpected emergency costs, such as car repairs or hospital bills, Marshall says. But most pension plans won’t allow employees to withdraw until they reach retirement age. This makes pensions a safer bet for grocery workers’ retirement savings, Marshall says. Many of those workers earn hourly wages and may therefore be more vulnerable when facing an emergency expense and have few options aside from pulling money from their retirement savings.
It’s worth noting that the FTC’s prioritization of workers’ rights is a unique hallmark of the Biden administration’s focus on worker protections, Kovacic says. In past antitrust complaints, worker protections typically aren’t cited as prominently as they are in the FTC’s allegations against Kroger and Albertsons.
“An unmistakable theme of the Biden administration’s antitrust program has been to give greater emphasis to the effect that business behavior has on worker welfare,” Kovacic says.
It also reflects the recent growth of unions in the private sector. In 2023, the unionization level in the private sector rose from 6.8% to 6.9% — an increase of more than 261,000 unionized workers, according to the Economic Policy Institute.
Fear of store closures in small towns, despite assurances
Although Kroger has explicitly stated that there will be no store closures as a result of the acquisition, both workers and antitrust experts are concerned about the possibility of closures in smaller cities and towns with fewer grocery retailers.
“Kroger and Albertsons are two of the largest supermarket chains in thousands of local communities throughout the country,” the FTC states in its suit against the deal. “In hundreds of those communities, the proposed acquisition would create a single supermarket with market shares so high as to be presumptively unlawful under the antitrust laws.”
In Gunnison, Colorado, a city south of Boulder with a population of less than 7,000, there are three traditional supermarkets: a Safeway, which is owned by Albertsons; a Kroger supermarket and a City Market, which Kroger owns. (There’s also a Walmart.) If the deal were to close, residents would have to drive 65 miles to a supermarket that’s not owned by Kroger.
“Combined, Kroger, Albertsons — were this merger to go through — and Walmart would control 55% of the food retail market,” says Karen Gardner, a senior policy associate at the Center for Science in the Public Interest, a food-focused consumer advocacy group based in Washington, D.C. “That means that there’s two CEOs who would be in control of the majority of food sold in America, and that doesn’t seem like a good idea to me.”
When asked about potential store closures, Moses rejected the notion that it would ever make financial sense for a combined Kroger-Albertsons to close any supermarkets.
“I don’t know how much more explicit they can be,” Moses says, referring to Kroger’s assurances that no stores would close due to the acquisition. “What you need, frankly, is to be larger, so you have more of an ability to invest more in lower prices, more in better stores, more in better wages, more in marketing, so that you can retain more customers.”
A hearing to evaluate the FTC’s block is scheduled for Aug. 26 in the U.S. District Court in Oregon. In January, before the FTC filed its suit, The Kroger Company issued a statement saying its acquisition of Albertsons would likely close before the end of the company’s second fiscal quarter on Aug. 17.
Visa and Mastercard reached a settlement with U.S. merchants this week that could have some trickle-down effects for consumers if the deal is approved. The agreement would lower credit card interchange fees, which merchants pay to process credit card transactions, and hold them at that reduced rate for several years. It also would limit the surcharges that merchants could impose on customers who pay with credit cards.
This settlement isn’t connected to the Credit Card Competition Act, bipartisan legislation that seeks to introduce greater competition among credit card payment networks in the hopes of lowering interchange fees.
The settlement still has to be approved by a federal court. If it is, here’s how it could affect consumers.
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What the settlement could change
Merchants’ costs of doing business (and maybe your shopping bill)
According to the terms of the settlement, Visa and Mastercard must lower their interchange fees by at least 4 basis points (that’s 0.04 percentage points) for at least three years. For five years, they can’t raise these fees above 2023 levels, and average interchange fees must be at least seven basis points (or 0.07 points) lower than the current average rate. In other words, interchange fee levels would be lowered for five years.
This interchange fee reduction could save merchants $29.79 billion in the five years after the settlement is approved, according to a statement by one of the law firms representing the class of merchants in the lawsuit.
Theoretically, merchants could pass these savings on to consumers in the form of lower prices or at least prices that remain stable over several years. They could also reinvest the savings into their businesses, such as by improving customer service. But there’s no requirement for merchants to do any of these things.
How you choose to pay
Other terms of the settlement put a limit on credit card surcharges, which are additional fees customers sometimes have to pay to use a credit card at checkout. Currently, Mastercard limits surcharge amounts to no more than 4%, while Visa limits surcharges to 3%.
The new surcharge cap would be 1% on Visa or Mastercard cards, regardless of what surcharges merchants impose on cards on other payment networks, such as American Express and Discover. If the merchant doesn’t accept cards on other payment networks, the surcharge is capped at 3%.
Merchants would be allowed to “steer” customers toward paying in certain ways, such as encouraging the use of cards on certain payment networks by offering lower surcharges. This could affect how you choose to pay for purchases based on what terms a merchant offers.
What won’t change
Credit card access and rewards
According to Visa, this settlement wouldn’t affect consumers’ access to credit, nor would it affect credit card rewards programs.
“By negotiating directly with merchants, we have reached a settlement with meaningful concessions that address true pain points small businesses have identified,” Kim Lawrence, Visa’s president for North America, said in a statement. “Importantly, we are making these concessions while also maintaining the safety, security, innovation, protections, rewards and access to credit that are so important to millions of Americans and to our economy.”
The Credit Card Competition Act
Again, this settlement is separate from the proposed Credit Card Competition Act. The settlement is a result of litigation that began in 2005, while the CCCA was first introduced in 2022.
A statement from the Electronic Payments Coalition, which opposes the CCCA, said the settlement eliminates the need for legislation on interchange fees.
“The agreement between merchants, Visa, Mastercard and financial institutions has been decades in the making and treats businesses of all sizes equally without government mandates or jeopardizing consumers’ data security and rewards programs,” EPC executive chairman Richard Hunt said.
The Merchant Payments Coalition, a CCCA proponent, counters that a temporary fee reduction leaves consumers and businesses hanging once the five-year period is over.
“A few years of very small relief followed by business as usual is not a good outcome from 20 years of litigation,” said a statement from Christopher Jones, a member of the merchant coalition’s executive committee and the National Grocers Association’s senior vice president of government relations and counsel. “The settlement does nothing to actually bring competitive market forces to swipe fees or change the behavior of a cartel that centrally fixes rates and bars competition. Instead, it tries to provide token, temporary relief and then allows the card companies to raise rates yet again.”
What’s next?
Nothing is finalized just yet. The settlement must first be approved by the U.S. District Court for the Eastern District of New York. A statement from Mastercard estimates the changes spelled out in the settlement would go into effect in late 2024 or early 2025.
California-based multichannel mortgage lender HighTechLending appointed reverse mortgage industry veteran Brian Boccia to serve as a senior account executive in its third-party origination (TPO) channel. He joins the company after prior experience at companies like Mutual of Omaha Mortgage and Reverse Mortgage Funding (RMF).
Aiming to keep in mind the financial difficulties that seniors may be facing, Boccia expressed a commitment to the reverse mortgage space and a need to understand senior pain points as key elements of his new position. To get a better understanding of all the dynamics in play, RMD sat down with Boccia and Eric Ellsworth, HighTechLending’s executive vice president of national sales.
Coming aboard
After working at RMF for more than nine years, Boccia transitioned to serve as an AE at Mutual of Omaha and helped to add reverse mortgages to the product mix for brokers there. This past month, he joined HighTechLending, along with some of his former colleagues at RMF, including Ellsworth and soon-to-be company co-owner David Peskin.
“With nearly two decades of experience, Brian brings a wealth of knowledge and expertise to our team,” Peskin said in the announcement of Boccia’s hiring.
When asked about the importance of the wholesale division to the overall plan that HighTech has for reverse mortgage business this year, Ellsworth said Boccia is a key player in the plan.
“The wholesale business is a huge part of our strategy coming into 2024,” he said. “David and I had our eye on Brian coming into this year, and we needed to hire somebody that has the customer service skills as well as the industry expertise. Brian has both of those, which we’re really excited about.”
Ellsworth also credits Boccia’s energy as an intangible element that can help lift the entire sales team, he said.
“That’s one of those non-resume things that you can bring to a sales team, an excitement,” he said. “Brian has the ability to elevate that with a team. So, it’s not just his ability to go out and develop relationships with brokers and create business, but just the impact of his energy on the team. We’re really excited about that.”
Customer-centric mentality
For Boccia, dedication to the customer base is key, he explained.
“All that matters is that we’re there for the senior client,” he said. “And that’s what matters to me. I’ve been working with David for 20 years now, so we kind of know each other. I told him I’ll bring knowledge, since I was a broker before I came to the TPO side. I know what it’s like from both sides. So, I feel like that, coupled with my experience of 15 years now doing the AE job, I can bring some energy and, quite frankly, I’m going to make some people laugh.”
Levity helps to keep customers engaged and builds trust, Boccia said.
“I don’t think it needs to be that serious of a situation if we’re all working together and getting the loans done for the senior,” he said. “We’re just trying to help people out. So, I think I’ll bring energy, especially, but maybe also the right frame of mind.”
If someone at the company hasn’t worked as either an AE or broker before, then being able to offer both of these perspectives should be beneficial for people at HighTechLending, he said.
“I can give them both sides of the fence,” he explained. “I’m looking forward to maybe giving them a few tips to help them grow a business. Simple as that — being part of a team.”
The business climate
When asked to explain what the business climate has been like so far this year, Ellsworth said that things started slow before accelerating into March.
“We started off the year with a nice little rate drop, and we were anticipating that this might be a better year. But quickly, those rates started to go back up,” he said. “In January, we saw a little bit of an uptick; it came back down a little bit in February. But I’ll say March is definitely headed in the right direction.”
Ellsworth described more application volume overall in March, which should lead to a good month.
“I was just talking to somebody about it today, and was thinking people are finally realizing that rates are not going to go down anytime soon,” he said. “We might see some rate drops like we saw this past week, and the Fed came out and announced that they’re still anticipating the three rate drops. Whether or not that makes a big, significant impact to the principal limit, I’m not sure.”
But having these conversations openly with borrowers helps to crystallize their understanding of rate dynamics, he said.
The new normal
“I think everybody understands that interest rates are higher than they have been in years past, especially during COVID,” Ellsworth said. “And because of that, I think people are more open to moving forward with a little bit of a higher interest rate than what they could have gotten three years ago.
“It’s really not as big of an issue as it was two years ago. I think it’s just a matter of whether or not somebody qualifies because of the impact that that rate has on the principal limit.”
Boccia said that seniors are being pragmatic based on other costs — especially the cost of living.
“Seniors are more looking at living a healthy retirement,” he said. “We’re in a little bit of a high interest rate environment, but you’ve got to remember something: The line of credit on the HECM grows at the same interest rate at which they’re being charged. So, it’s not all negative. [Some borrowers might] take whatever [they] can upfront, leave something in a line of credit, and have that grow at 7.5% to 8%.”
Editor’s Note: Options are not suitable for all investors. Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire amount invested in a short period of time. Please see the Characteristics and Risks of Standardized Options.
What Is a Put Option?
In options trading, a put option is the purchase of a contract that gives an investor the right, but not the obligation, to sell a specific security at a certain price by a certain date. Put options are different from call options, the purchase of which gives buyers the right, but not the obligation, to buy a particular security at a certain price by a certain date.
Investors can use put options to trade a variety of securities, including stocks, bonds, futures and commodities. Trading options can potentially lead to greater returns, but it can also amplify losses, making it a potentially riskier strategy.
Understanding certain options terminology — including what a put option is and how it works — can be helpful if you’re thinking about incorporating options trading strategies into your portfolio.
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Options Basics
Before digging into the details of put options, it’s helpful to understand a little about how options trading works in general. An option is a contract that gives the buyer the right, but not the obligation, to buy or sell an underlying security at a certain price — this is called the strike price. Options must also be exercised by a specific expiration date.
An investor who buys an options contract pays a premium to do so, which can be determined by the volatility of the underlying asset and the option’s expiration date. If the option holder does not exercise the option by the expiration date, they lose their right to buy or sell the underlying security and the option has no value.
Options are derivative investments, since they derive their value from the underlying assets. They can be bought and sold on an exchange, just like the underlying assets they’re associated with.
Finally, user-friendly options trading is here.*
Trade options with SoFi Invest on an easy-to-use, intuitively designed online platform.
How Does a Put Option Work?
A put option is a specific type of options contract. Here’s an example: The buyer of the put option has the right, but not the obligation, to sell shares of an underlying asset at the agreed-upon strike price up until the option’s expiration date. Meanwhile, the seller of the put option has an obligation to buy those shares from the buyer if the buyer chooses to exercise the put option.
Put options increase in value as the price of the underlying security decreases. Likewise, put options lose value as the price of the underlying stock increases. Depending on where the underlying asset’s price is in relation to a put option’s strike price, the option can be one of the following:
• In the money: An in-the-money put option has a strike price that’s higher than the underlying asset’s price.
• At the money: An at-the-money (or on-the-money) put option has a strike price that’s equal to the underlying asset’s price.
• Out of the money: An out-of-the-money put option has a strike price that’s below the underlying asset’s price.
Of the three, the in-the-money put option is more desirable because it means a put option has intrinsic value. If you’re the buyer of a put option and that option is in the money, it means you can sell the underlying asset for more than what it’s valued at by the market.
Recommended: In the Money (ITM) vs Out of the Money (OTM) Options
Put Option Example
An example might make things even more clear.
Assume you own shares of XYZ stock. The stock is currently trading at $50 a share but you believe its price will dip to $40 per share in the near future. You purchase a put option which would allow you to sell the stock at its current price of $50 per share. The options contract conveys the right to sell 100 shares of the stock, with a premium of $1 per share.
If your hunch about the stock’s price pays off and the price drops to $40 per share, you could exercise the option. This would allow you to sell each of the 100 shares in the contract for $10 more than what it’s worth, resulting in a gross profit of $1,000. When you factor in the $1 per share premium, your net profit ends up being $900, less any commission fees paid to your brokerage.
Difference Between Put and Call Option
It’s important to understand the difference between put and call options in trading. A call option is an options contract that gives the buyer the right, but not the obligation, to purchase shares of an underlying asset at the strike price by the expiration date. The seller of the call option is obligated to sell those shares to the call option buyer, should they decide to exercise the option.
Like put options, call options can also be in the money, at the money, or out of the money. An in-the-money call option has a strike price that’s below the underlying asset’s actual price. An out-of-the-money call option has a strike price that’s above the underlying asset’s actual price.
Here’s a simple way to think of the differences between put options and call options: With buying put options, the goal is to sell an underlying asset for more than its market value. With buying call options, the goal is to buy an underlying asset for less than what it’s worth.
Pros and Cons of Trading Put Options
Options trading may appeal to a certain type of investor who’s comfortable moving beyond stock and bond trading. Like any other investment, put options can have both advantages and disadvantages. Weighing them both in the balance can help you decide if options trading is something you should consider pursuing.
Pros
Cons
• Low initial investment required compared to trading stocks.
• The option buyer has the right but no obligation to sell the underlying asset.
• Higher return potential, on a percentage basis.
• Losses may be amplified.
• The option seller has the obligation to buy the underlying asset at the strike price if the buyer decides to execute the contract, which could result in greater downside for the seller.
• Unforeseen volatility may drastically affect price movements.
Pros of Trading Put Options
• Lower investment. When you purchase a put option, you’re paying a premium and your brokerage’s commission fees. When you purchase shares of stock, you may be investing hundreds or even thousands of dollars at a time. Between the two, put options may be more attractive if you don’t want to tie up a lot of cash in the markets.
Also, buying a put option gives you the right to sell a particular asset at a set strike price but you’re not required to do so. You can always choose to let the option expire; you’d just be out the premium and commission fees you paid.
• Return potential. Trading put options can be lucrative if you’re able to sell assets at a strike price that’s well above their actual price. That might result in a higher profit margin than if you were trading the underlying asset itself.
Cons of Trading Put Options
• Loss amplification. While trading put options can potentially lead to better returns, it can also potentially amplify your losses. If you’re selling put options, you’re obligated to sell the underlying asset at the strike price, even if that strike price is not in your favor.
• Volatility. Volatility can threaten returns with put options if an asset’s price doesn’t move the way you were expecting it to. So it’s possible you might walk away with lower gains than anticipated if you choose to exercise a put option during a period of heightened volatility.
How Do You Trade Put Options?
It’s possible to trade put options inside an online brokerage account that allows for options trading (not all of them do). When deciding which put options contracts to buy, it’s important to consider:
• Where the underlying asset is trading currently
• Which way you think the asset’s price is most likely to move
• How much of a premium you’re willing to pay to purchase an options contract
It’s also important to consider the expiration date for a put option. Keep in mind that options with a longer expiration period may come with a higher premium.
Different Put Option Styles
There’s a difference between European-style and American-style put options.
With European-style options, you can only exercise the option on its expiration date.
With American-style put options you can exercise the option at any time between the date you purchased it and its expiration date, offering more flexibility for the investor.
Put Option Trading Strategies
Different options trading strategies can be used with put options. These strategies vary in terms of reward potential and risk exposure. As you get more familiar with how to trade stock puts, you might begin exploring more advantaged techniques. Here are some of the most common put option plays.
Long Put
A long put strategy involves purchasing a put option with the expectation that the underlying asset’s price will fall. For example, you might want to buy 100 shares of XYZ stock which is trading at $100 per share, which you believe will drop to $90 per share. If the stock’s price drops to $90 or below, you could exercise your contract at the higher $100 per share price point.
Short Put
A short put is the opposite of a long put. In a short put strategy, you’re writing or selling the put option with the expectation that the underlying security’s price will rise or remain above the strike price until it expires. The payoff comes from being able to collect the premium on the option even if the buyer doesn’t exercise it.
Recommended: How to Sell Options for Premium
Married Put
A married put strategy involves holding a long position in an underlying security while also purchasing an at-the-money option for the same security. The idea here is to minimize downside risk by holding both the asset itself and an at-the-money put option.
Long Straddle
A long straddle strategy involves buying both a call option and a put option for the same security, with the same strike price and expiration date. By straddling both sides, you can still end up turning a profit regardless of which the underlying asset’s price moves.
The Takeaway
Options trading may be right for retail investors who are comfortable taking more risk in exchange for a chance to potentially earn higher returns. Getting familiar with put options and how a stock put works is the first step.
Qualified investors who are ready to try their hand at options trading, despite the risks involved, might consider checking out SoFi’s options trading platform. The platform’s user-friendly design allows investors to trade through the mobile app or web platform, and get important metrics like breakeven percentage, maximum profit/loss, and more with the click of a button.
Plus, SoFi offers educational resources — including a step-by-step in-app guide — to help you learn more about options trading. Trading options involves high-risk strategies, and should be undertaken by experienced investors.
Trade options with low fees through SoFi.
Photo credit: iStock/Drazen_
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Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire amount invested in a short period of time. Before an investor begins trading options they should familiarize themselves with the Characteristics and Risks of Standardized Options . Tax considerations with options transactions are unique, investors should consult with their tax advisor to understand the impact to their taxes. Investing in an Initial Public Offering (IPO) involves substantial risk, including the risk of loss. Further, there are a variety of risk factors to consider when investing in an IPO, including but not limited to, unproven management, significant debt, and lack of operating history. For a comprehensive discussion of these risks please refer to SoFi Securities’ IPO Risk Disclosure Statement. IPOs offered through SoFi Securities are not a recommendation and investors should carefully read the offering prospectus to determine whether an offering is consistent with their investment objectives, risk tolerance, and financial situation.
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Want to learn how to make money online without paying anything? Here are ways to earn money online for free. Making money online without putting in money up front is doable for many people. Thanks to the growth of online jobs and businesses, you can make extra money or create a full-time job from home….
Want to learn how to make money online without paying anything? Here are ways to earn money online for free.
Making money online without putting in money up front is doable for many people. Thanks to the growth of online jobs and businesses, you can make extra money or create a full-time job from home.
It doesn’t matter if you’re skilled or just getting started – there are ways to make money without paying anything at the beginning. You can use your creativity and skills in things like making content, providing digital services, and selling stuff online to make a steady income.
I personally have made money online in many different ways without paying anything to get started, so I know that this truly does exist.
Best Ways To Make Money Online Without Paying Anything
Here’s a quick summary of my favorite ways to make money without investment:
Best way to make money online freelancing – Proofreading
My favorite way to make money online for free – Blogging
Best way to make money online for passive income – Selling printables
Best way to make money online for those who like numbers – Bookkeeping
Below are the best ways to make money online without paying anything.
1. Blogging
Blogging is exactly what I started years ago, and I didn’t pay any money in the beginning to get started.
If you want to make money with a laptop, then this is what I recommend.
I began Making Sense of Cents in 2011, and it has helped me earn over $5,000,000 since then. I started my blog on a whim to share my own money journey, not even knowing that people could make money from blogs or how to make a successful one.
Now, it’s my full-time job!
Eventually, you will have costs with a blog, just like with most of the businesses listed below, if you want to grow and make more money. But, the expenses are low compared to how much money you may be able to make.
So, what’s a blog? A blog is like this content you’re reading now – it’s writing on a website. You can blog about something you’re passionate about, something you know a lot about, or even something you want to learn more about (people enjoy following firsthand journeys!).
There are many different niches (topics) that you can write about too, such as travel, personal finance, home, lifestyle, family, food, and more.
You can learn how to start a blog with my free How To Start a Blog Course (sign up by clicking here).
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Want to see how I built a $5,000,000 blog?
In this free course, I show you how to create a blog, from the technical side to earning your first income and attracting readers.
2. Printables
Selling printables is a way to make passive income from home without upfront costs.
This is because printables are digital files that you can download and print at home. You only need to make one digital file for each product, and then you can sell it multiple times.
They can be things like grocery shopping lists, invites, thank you cards, digital art, or gift tags.
I have bought many printables myself, and many others do too. Recently, I purchased a printable to help teach my daughter the alphabet. It was a useful tool, and I could easily print it at home.
You can learn more about this at How I Make Money Selling Printables On Etsy.
Do you want to make money selling printables online? This free training will give you great ideas on what you can sell, how to get started, the costs, and how to make sales.
3. Proofreading
If you like finding mistakes in written content and want to start a business without spending a lot of money, then proofreading might be a good choice for you. This can be a part-time job or a full-time career working from home.
Many proofreaders earn around $40,000 a year or even more.
Proofreaders look for errors in articles, ads, books, student papers, emails, transcripts, and more.
To become a proofreader, all you need is a laptop or tablet, an internet connection, and the ability to spot mistakes and errors. So, you probably already have everything you need to get started.
I recommend signing up for a free 76-minute workshop, where you can learn more about becoming a proofreader. You can sign up for the free How To Become a Proofreader workshop here.
Recommended reading: How To Become A Proofreader And Work From Anywhere
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This free 76-minute workshop answers all of the most common questions about how to become a proofreader, and even talks about the 5 signs that proofreading could be a perfect fit for you.
4. Freelance writing
Freelance writing is a great way to make money online without any upfront costs, as you don’t need any expensive equipment to get started.
A freelance writer is someone who writes for different places like websites, blogs, magazines, ads, books, and other things.
I have been a freelance writer for many years now, all from my laptop. I really enjoy being a freelance writer, and I have many friends who do this as well. I started this job because I wanted to make money from home and not spend money trying to figure it out. And, it worked!
This job can earn you more than $50,000 a year. Some of my friends who are freelance writers make over $200,000 a year.
Recommended reading: 14 Places To Find Freelance Writing Jobs
5. Opening an online store
Starting an online store is a way to make money without upfront costs, and sites like Etsy and Shopify make this possible.
On Etsy, you can sell things like handmade or vintage items and craft supplies. This online marketplace is great if you’re creative and want to sell unique, one-of-a-kind products. Shopify, on the other hand, has more flexibility in what you can sell and allows you to build your personal storefront.
There are many different types of things you can sell, such as digital products like ebooks or web design templates, which don’t require inventory and can be sold repeatedly without additional cost. Physical products, on the other hand, can also be sold but keep in mind that you’ll need a plan for shipping, and you may have to spend money in order to have them as inventory to list on your store.
Another idea is dropshipping. This is a business model where you don’t need to keep inventory or ship products yourself. Instead, you work with suppliers who take care of inventory and shipping for you.
Below are some ideas for things you could sell through an online dropshipping store:
Travel items such as portable luggage scales, neck pillows, or travel cubes
Fitness equipment like yoga mats, weights, or resistance bands
Sustainable products such as reusable utensils, bamboo toothbrushes, tote bags, or eco-friendly cleaning supplies
Camping-related items like hammocks, lanterns, cookware sets, and survival kits
Jewelry such as stackable rings, layered bracelets, anklets, and statement earrings
6. Print-on-demand
Similar to the above, print-on-demand (POD) is a business model where you sell your custom designs on products like T-shirts, mugs, and books, but only print them once an order is placed.
It’s a popular way to start an online business with minimal upfront costs because you don’t have to worry about inventory. Your job is to create the designs and set up your online store.
Once a customer buys a product, the order goes straight to your POD supplier who prints and ships it under your brand name.
7. Stock photography
Stock photography is a way to make money online without any cash up front. If you already have a camera or even just a cell phone, you can get started selling stock photographs.
You are simply taking photos, putting them on a stock photo website, and selling them to people and companies.
People buy stock images from websites like Shutterstock, Getty Images, or Adobe Stock for many reasons, such as adding them to their websites, articles, blog posts, advertisements, and social media.
You can sell many types of pictures, including travel, business, people, food, animals, health, fashion, sports, and more.
For example, if I write a blog post about making money with a laptop, I might buy a stock photo of a laptop. Or, if I need a picture related to making money while traveling, I’d find a picture of a vacation to include in my blog post. Stock images can make a blog post more enjoyable to read.
Recommended reading: 18 Ways You Can Get Paid To Take Pictures
8. Affiliate marketing
Affiliate marketing is a way for you to earn money by promoting products or services online, and you don’t need anything special to get started.
With affiliate marketing, if your friend or follower buys a product through a referral link you share, you get paid a commission – it’s as simple as that.
First, pick products you love and are sure others will benefit from. Then, sign up for their affiliate program. Each program gives you an affiliate link. This link tracks who clicks and buys from your recommendation.
Your job is to share your affiliate link with as many interested people as possible. You could write about it on your blog, make videos, or even just share it on social media.
I recommend signing up for Affiliate Marketing Tips For Bloggers – Free eBook to learn more.
9. Playing games and watching videos for money
There are lots of money-making apps that let you earn cash by playing games or watching videos on your phone.
These apps pay you real money because they make money from ads and in-app purchases. To get you to keep playing, they give you a share of their earnings. For watching videos, the sites reward you with points for watching sponsored videos, and these videos can range from ads to short clips.
Now, these won’t make you rich, but it is a way to make money from your phone without upfront costs.
Here’s a quick list of the top video and game apps that pay real cash:
KashKick
Swagbucks
InboxDollars
Recommended reading: 15 Ways To Make Money From Your Phone
10. Market research and focus groups
If you love sharing your opinions, market research and focus groups are great ways for you to earn cash online without paying anything. This kind of work connects you with companies seeking feedback on their products or services. It’s all about understanding what you think as a consumer.
Lots of companies want to hear from people like you and me, and you can share your opinions with them using just a laptop or phone, some free time, and a good internet connection.
When I was paying off my student loans, I took online surveys almost every day. I did them before work, during lunch, or after work. Even though they didn’t make me a lot of money, they were flexible because I could do them whenever I had time. Plus, they were really easy and didn’t require much thinking!
Here are some survey companies I suggest:
American Consumer Opinion
Survey Junkie
Swagbucks
InboxDollars
Branded Surveys
PrizeRebel
User Interviews – This one pays on average around $60 per assignment (much higher than the rest, but it is a little more work for participants as these are usually video calls or on the phone)
Signing up for these survey sites is free, and typically, they pay about $1 to $3 for each survey you finish.
11. Online tutoring
As an online tutor, you get to teach students from the comfort of your home. Your job is to share your knowledge and help in a subject you know well. You don’t have to worry about traveling or a strict schedule; you can choose when to do your online tutoring gig.
You can make between $30 and $60 per hour or more, depending on the subject’s difficulty and your expertise. And you don’t need to spend any money up front, so it’s a way to earn online without extra costs.
As a tutor, you might spend 30 minutes to an hour giving a lesson, answering questions online, or working one-on-one with a student in a video lesson.
12. Virtual assistant job
You can make money from home as a virtual assistant by doing administrative tasks for clients online. You don’t need anything to get started other than a computer or laptop.
Virtual assistants, or VAs, do tasks similar to administrative assistants, but they work from home or anywhere with internet.
Virtual assistants do things like:
Email management – Answering and organizing emails
Calendar management – Scheduling appointments, meetings, and events
Administrative support – Preparing reports, presentations, and documents
Travel arrangements – Booking flights, hotels, and transportation for business trips
Internet research – Doing online research on topics to write about, competitors, products, etc.
Personal tasks – Booking appointments or making dinner reservations
I’ve been a virtual assistant before (it was actually one of my first online jobs, and I liked how I didn’t have to spend money to become a VA), and I also have one who works for me, so I know how useful they can be! Plus, you don’t need anything expensive to get started.
13. Social media influencer
Being a social media influencer is a real way to make money online without any initial cost, and plenty of people have started their social media accounts by spending absolutely $0. In fact, I think most people start as just a hobby!
You can start with just your phone, by taking pictures and sharing your thoughts on social media accounts like Instagram, TikTok, and Facebook.
You can earn money as a social media influencer through sponsored posts, where brands pay you to promote their products or services in your posts. You can also make money through affiliate marketing, where you earn commissions from sales made through your referral links. Plus, you can sell digital products like ebooks or online courses.
I’ve been a social media influencer for years, monetizing my Instagram and Facebook accounts. It’s allowed me to collaborate with brands I love and promote products I already use.
14. Transcriptionist
Becoming a transcriptionist can be a good choice to make money online without upfront costs. This is something that you can learn to do, and transcriptionists usually make around $15 per hour.
As a transcriptionist, you can earn money from home by turning audio files or video files into written documents. Clients can include marketers, authors, filmmakers, academics, speakers, and conferences.
To find transcription jobs, some places to start include:
Rev – Transcribers on Rev earn an average of $245 per month, with top earners making up to $1,495.
CrowdSurf – CrowdSurf pays for short transcription tasks, which are great for those looking for quick, manageable projects.
TranscribeMe – This platform is good for beginners as they give training and only require a reliable internet connection and computer.
Recommended reading: 18 Top Online Transcription Jobs For Beginners
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In this free training, you will learn what transcription is, why it’s a highly in-demand skill, who hires transcriptionists, how to become a transcriptionist, and more.
15. Video gaming livestreams
Yes, you can make money online with no upfront costs by live streaming (such as a video game that you like to play). Eventually, you may want to upgrade to higher-quality equipment, but you can start right away with what you already have – your computer and phone.
Twitch is a website where you can make money by playing video games, talking with viewers in real time through live streams, and more.
As your viewer count grows, you can start making money. Streamers can earn through ways such as:
Subscriptions – Your fans can pay a monthly fee to support you as subscribers.
Donations – Viewers can send you tips if they enjoy your stream.
Advertisements – You can get paid from ads that run on your live stream.
Sponsorships – Companies may pay you to promote their products.
Recommended reading: How Much Do Twitch Streamers Make?
16. YouTube
Starting a YouTube channel is a popular way to make money online without any initial investment. You can record videos from your phone or camera, and you don’t really need anything else to get started in the beginning.
You can start a YouTube channel about many different topics like finance, home, travel, toys, pets, and more. There’s a YouTube channel for almost anything nowadays, and there’s still space for more!
In your YouTube videos, you can include links to products you recommend, earn money from ads that play during your videos, get paid by brands to feature their products, and even sell your own stuff.
17. Freelance graphic design
As a graphic designer, you can earn money online without investing any money up front. You can create designs such as logos, social media graphics, and branding materials for clients.
To start, you will most likely want to create a simple but impactful portfolio to display your work. This is your opportunity to show your abilities to potential clients, so you will want to include your favorite projects and what reflects your design style.
You can also sign up on freelance sites like Fiverr where businesses look for designers like you.
18. Virtual bookkeeping
Bookkeepers manage financial records, track expenses, and generate financial reports; it requires attention to detail and strong organizational skills.
This job typically pays more than $40,000 a year. Plus, many types of businesses require bookkeepers, making it a great career choice with opportunities for growth.
Even better, you can do this job from home using your computer and the internet.
Yes, you don’t need a degree to be a bookkeeper. You can start by learning basic bookkeeping and the software most businesses use.
If you want to become a bookkeeper, there is a free workshop all about finding a virtual bookkeeping job, and you can sign up for free here.
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This free training will teach you what you need to know to become a virtual bookkeeper and make money from home.
19. Write an ebook
Writing an ebook can be a way to make money without needing upfront investment, other than your time and effort. This is something you can do yourself too, such as through the self-publishing route on Amazon.
Ebooks are digital books that you can download and read on devices like tablets, phones, e-readers, or laptops. They’ve become very popular because they’re affordable and easy to access.
I’ve purchased many ebooks myself, ranging from nonfiction to fiction, and many, many other people have as well.
Recommended reading: How this person is making $200 a day in book sales passively.
20. Online travel agent
A travel agent is a professional who helps people plan and book trips, vacations, and other travel arrangements. They give their expertise and support in finding the best deals on transportation, accommodations, and activities, considering their clients’ preferences, budgets, and needs.
Travel agents also give helpful advice on destinations, suggest itineraries, arrange tours and excursions, and handle logistics such as flights, hotels, car rentals, and travel insurance.
There are many different kinds of niches you can sell vacations and trips in, such as luxury travel, cruises, Disney, budget travel, and adventure holidays.
21. Write book reviews
If you enjoy reading and talking about books, you can make money by writing reviews at home. Authors and publishers want to hear your honest opinions because they help other readers choose their next book. Readers also like these reviews, so it benefits everyone involved.
You don’t need anything other than your computer (or even just your cell phone) to write the reviews. Many times, the book is given to you to review, so you don’t even have to pay for that.
This is typically more of a side gig for spare cash and free books.
Here are some websites where you can make money online by writing book reviews:
OnlineBookClub.org – They give free books for your first book review (and no other payment). After your first review, you can earn cash for each review, usually between $5 and $60.
Kirkus Media – They look for reviewers for both English and Spanish books, particularly in the Kirkus indie section. Reviews involve around 350-word summaries due two weeks after receiving the book. They cover all genres, with over 10,000 books reviewed annually.
Upwork – Create a profile as a book reviewer on this freelance platform. You can choose projects that interest you and set your own rates.
The US Review of Books – They hire freelance writers for 250- to 300-word reviews that go beyond summarizing to provide insights into the book. To join, submit a resume, writing samples, and a couple of references.
Reedsy Discovery – Review books before they are published and get paid through tips from readers, ranging from $1 to $5. It’s an exciting way to influence which books become popular.
Learn more at 16 Best Ways To Get Paid To Read Books.
22. Online job opportunities
There are many more ways to make money online that won’t cost you money to get started, and these include:
Finding remote part-time or full-time jobs – If you want a full-time income or are interested in part-time work, popular job search platforms like Indeed can help. They help you find jobs that fit your schedule where you work for someone else as an employee, such as software engineer, developer, human resources manager, IT manager, and more.
Customer service and support jobs – As an at-home customer service rep, you would work for companies, answering customer questions and issues that they may be having.
Data entry and administrative jobs – Data entry jobs are ideal for you if you have a good eye for detail and can work independently.
These are all jobs where you would be working for someone else, but online from home. The company would normally provide you everything you need to get started, such as any software and possibly even the laptop as well.
Frequently Asked Questions
Below are answers to common questions about how to make money online without paying anything.
How can I make money online completely for free?
There are many ways to make money online completely for free. You can start a blog, freelance write, bookkeep, write book reviews, sell stock photography, or become a virtual assistant.
How can students earn money online without any investment?
Students can make money online without any investment by answering online surveys, tutoring online, freelance writing, proofreading, blogging, and more. Whether you want to make extra cash or a full-time income, there are many options for students.
How to Make Money Online Without Paying Anything – Summary
I hope you enjoyed this article on how to make money online without paying anything.
Getting started with making money online might feel overwhelming and impossible, but it’s not impossible if you do it right.
The internet has many places where you can show off your skills as a writer, artist, or tutor. You can also sell items online, or even play games and give your opinion in surveys.
What other ways are there to make money online for free without investment?