Schlifske’s 14-year tenure as CEO defined by historic business performance, bold client experience transformation, unsurpassed financial strength, exceptional product value, and meaningful investments in talent and diversity Tim Gerend to succeed Schlifske as the company’s next CEO, effective January 1, 2025 MILWAUKEE, Jan. 25, 2024 /PRNewswire/ — After 14 years as Northwestern Mutual’s Chief Executive … [Read more…]
At Fannie Mae’s not-so-annual meeting held in Washington today, president and CEO Daniel Mudd told shareholders that he doesn’t expect a housing market recovery until late 2009 “at the earliest.”
“This is the worst housing and mortgage market in recent memory, and we are still working our way to the bottom, in our view,” Mudd added.
His grim estimate is probably the worst of a slew of recent predictions made by executives and analysts, with others seeing a recovery as soon as mid-2008 and early 2009.
Mudd blamed recent housing woes on unaffordable prices, and said average home prices will decline another four to five percent in 2008.
“With the decrease of affordability, a lot of those products grew up to get payments down,” he said, with respect to the recent surge in subprime lending.
At the same time, Mudd assured investors that the mortgage financier “will weather the turbulence of today’s mortgage market and prosper when better conditions return,” claiming the company had made a series of improvements over the past three years.
Fannie posted a third-quarter loss of $1.4 billion, prompting the largest purchaser and guarantor of U.S. home mortgages to cut its dividend by 30 percent and sell $7 billion in preferred stock to raise capital.
“We have to have a solid and conservative capital position to go into a market this challenging,” he said.
Interestingly, it was Fannie Mae’s first annual meeting since May 2004, five months before the accounting scandal rocked the company and led to the ousting of its top executives.
The good news is borrowers will have ample time to up their credit scores and get their asset and income documentation in order for the coming housing bonanza of 2010.
Want to learn how to get paid to do nothing? Picture this: making money without putting in much effort, even when you’re just relaxing, sleeping, or waiting in line. The idea of getting paid for doing nothing has always been popular and it’s probably your dream life. It may seem too good to be true,…
Want to learn how to get paid to do nothing?
Picture this: making money without putting in much effort, even when you’re just relaxing, sleeping, or waiting in line. The idea of getting paid for doing nothing has always been popular and it’s probably your dream life.
It may seem too good to be true, but there are real ways to use your free time or things you already have to make money with minimal ongoing work.
There are actually quite a few things on this list that I regularly do so that I can make money doing nothing.
Now, some of the ways below may take initial effort or even some maintenance over the years. But, you may be able to earn money while sleeping or while at the beach with minimal effort needed from you.
Best Ways To Get Paid To Do Nothing
Do you want to earn money while you relax? You can get paid without a 9-to-5 job. Let’s look at some ways to make money while doing nothing.
Here are some ways out of the list below that you may be interested in:
Sell printables online – These can be made once and sold an unlimited amount of times. Learn more at How I Make Money Selling Printables On Etsy.
Pose as an art model – It’s simple; just sit still! Art schools pay models around $25 per hour.
Real estate – You can invest in real estate funds. Your money might work for you, and you don’t have to manage properties.
Take online surveys – You can answer these whenever you have free time and the questions are extremely easy. Best online survey sites include Branded Surveys, Swagbucks, and Survey Junkie.
Rent your stuff – You’ve got stuff other people might want for a day or two. Think about renting out things like your storage room, baby gear, RV, and more.
Learn more about the different ways to get paid to do nothing below.
1. Sign up for a rewards credit card
Earning money without working hard can sound really nice. One way to do this is to get a rewards credit card. When you use this kind of card, you can get points or cash back for buying things you would buy anyway.
When you sign up for a new card, you might receive a big signup bonus. Some cards give you bonus points, like 50,000 or even more, as a welcome gift! However, you usually need to spend a certain amount of money first (such as $4,000 in the first 3 months).
Here is a table with the different types of rewards you might get:
Reward Type
What You Get
Points
Use for travel and gift cards.
Cash Back
Money back on your purchases.
Mile Rewards
Miles to fly on planes for free airfare.
I have a few rewards credit cards and I earn points every time I use my credit card, such as by paying a bill or going grocery shopping. I actually just signed up for a new rewards credit card this week that has a great signup bonus value of over $800.
Two rewards credit cards that I personally like are:
Important note: Using credit card rewards is a good idea as long as you use your credit card responsibly. It’s not smart to go into debt just for rewards because having debt with interest is not free or helpful. To truly make money from credit card rewards, be sure to pay your full credit card balance every month.
2. Get paid to stand in line
If you don’t mind waiting, you can earn money by standing in line for other people. Some companies and individuals pay for this service, especially when they’re busy or want to attend popular events without waiting.
Here’s how it works: You take someone else’s spot in line, like waiting for tickets or securing a spot at a busy restaurant. You do the waiting for them so they don’t have to.
You can earn approximately $25 to $35 per hour by just standing in line. The exact amount depends on your location and how much people need line sitters.
To get started, search for websites that link line sitters with clients, such as Taskrabbit, Same Ole Line Dudes, and InLine4You. Join the sites, create a listing for your services, and wait for someone to hire you.
3. Dividend-paying stocks
One of the best ways to make money without a job is to invest in dividend-paying stocks.
When you invest in dividend-paying stocks, you’re buying a piece of a company that gives you money regularly. Think of it like getting a small thank you for holding on to the company’s stock. These payments usually come from the company’s profits and they’re called dividends.
Here’s how it works. You buy stocks that pay dividends, and then, every so often (usually every three months), the company sends you money. It’s a way to earn without doing much after your initial investment.
Now, a table to show you what to look for:
Term
Meaning
Dividend Yield
How much you earn compared to the stock price
Payout Ratio
The part of profits used for dividends
Ex-Dividend Date
The day when you must own the stock to get paid
Keep in mind, not all dividend stocks are the same. Some may lose value and payments could stop if the company isn’t doing well. So, it’s important to choose wisely, and you might want to seek guidance from someone who knows a lot about stocks.
For me, I love earning dividends. It’s like being rewarded for saving for retirement, and it is so easy.
Recommended reading: What Are Dividends & How Do They Work? A Beginner’s Guide
4. High-yield savings accounts
When you put your money in a savings account, you want it to grow. High-yield savings accounts are like your regular savings account but with an extra boost for making your money grow faster.
The interest rate or annual percentage yield (APY) is what the bank pays you. The higher the APY, the more money you make. Good news! Some of these accounts offer APYs much higher than the usual, like more than 5%! That’s a lot better than the average savings account.
I personally use Marcus by Goldman Sachs and they have a very high interest rate. You can get up to 5.50%, at the time of this writing, through my referral link bonus. So, at this rate, if you have $10,000 saved, you could earn $550 with a high-yield savings account in a year. Whereas with normal banks, your earnings would only be $46.
You must be thinking, “What’s the catch?” Well, most of these accounts are from online banks. No biggie, just that you won’t have a bank branch to visit. They also tend to not offer other features, such as bill pay and checks – it’s simply a place to park your money and earn a lot more in interest.
5. Sell printables
If you want to earn money while doing nearly nothing on the internet, you can try selling printables online. Printables are files that you make once, like planners, invitations, flash cards, and worksheets, and then sell over and over again.
Yes, you will have to make the printables and open a store, but after a while, you can start making money from the same printables over and over again.
This is because printables are digital products that sell with just simple downloadable files.
I recommend reading How I Make Money Selling Printables On Etsy to learn more.
6. Share your opinions
You can earn money in your free time by joining paid market research studies. Keep in mind, it won’t replace a full-time job (they usually pay only $1 to $3 for each survey you complete), but you might make some extra cash.
When I was paying off my student loans, I did online surveys almost every day. I did them before work, during my lunch break, or after work. What I like about answering online surveys is that I can answer them whenever I want, such as while watching TV or eating lunch.
Some of the survey companies I recommend include:
Please head to Best Paid Online Surveys to read more.
7. Rent out your extra storage space
If you’ve got extra room at your place, you can make money by renting it out.
Think about renting out parts of your home, like an empty closet, your driveway or parking space, or your garage. Websites like Neighbor allow you to list these spaces for someone to store their belongings (such as a car, sofa, boxes, and more).
Neighbor is like the Airbnb of storage space. Instead of having guests over, you’re renting out your storage space to store other people’s belongings.
8. Sell stock photos
Selling stock photos is a good way to earn money through passive income without actively working for it.
You upload photos you’ve taken with your camera or phone to a platform like Depositphotos. When someone buys one of your photos, you get a commission.
Websites, companies, and blogs use stock photos for all different kinds of reasons. Businesses use them to improve their content, websites, or overall appearance, as they may not have the time to take photos of everything they need.
I personally use stock photos in my blog posts all the time, and I know many, many others who do as well. The photos throughout this article are all stock photos, so you can see how useful they are to website owners.
Stock photography includes pictures of things like:
Travel, landscapes, and outdoor scenes
Business settings like laptops, offices, and people working
Family moments, including parents and children
Household items, such as living areas and kitchens
Animals, including pets and wildlife
Vehicles like cars and boats
Sports, from professional events to casual games
Recommended reading: 18 Ways You Can Get Paid To Take Pictures
9. House sitting
For some people, house sitting is the ultimate dream job. You may be able to watch houses around the world in dream destinations after all!
House sitting involves taking care of someone’s house while they’re away. It’s a way to earn money without much effort. Your responsibilities include staying in the house, making sure everything is safe, collecting mail, and sometimes looking after pets or watering their plants. Many times, people just want it to look like someone is living in their home so that no one will try to break in.
You can find house sitting jobs on websites like TrustedHousesitters and Care. You may also find these types of jobs through dog walking gigs, such as on Rover.
10. Invest in REITs
Investing in a Real Estate Investment Trust (REIT) is like buying a small piece of many buildings without the hassle of managing them.
REITs are companies that own many real estate properties, and they earn money by renting out space in those properties. Imagine shopping malls, apartments, and offices as examples.
Here’s how it works:
Choose a REIT – Look for REITs with good histories, like those experts trust.
Invest Your Money – You can start with a small amount of money.
Earn Money – REITs make cash from their buildings. They share this cash with you through dividends.
11. Pose for art classes
If you can stay still for a while, you might like posing for art classes. When you pose, art students look at you and draw or paint your picture. It’s a way you can make money by just sitting or standing.
Most times, art models get about $20 to $30 each hour. You’ll usually be there for around three hours or more.
What will you do? You will hold a pose. A pose can be something like sitting in a chair, standing, or making an interesting shape with your body. These poses can last from five to twenty minutes. Don’t worry, you get breaks so you can stretch and rest.
Who can do this? You don’t have to look a certain way. Artists need all kinds of people to learn how to draw humans well. You just need to be okay with being looked at while you are posing.
Where to find these jobs? Check with local art schools, colleges, or community centers. They usually need new models. You can also look online for art model jobs in your area.
12. Listen to music
If you enjoy music, you can actually make some money by listening to songs. You can use apps and websites that pay you just for listening. Companies want your opinion on new music, and they’ll pay you for your time!
Slicethepie is a popular site that pays you to listen to music. Other popular sites include Playlist Push, Current Rewards, and Hit Predictor.
Here’s how it typically works:
Step
Action
Find an app
Look for apps that offer payment for music listening.
Sign up
Create an account on these platforms.
Listen and rate
Start listening to music and provide your honest feedback.
Earn
Collect your earnings, usually through points that can be converted into cash or gift cards.
13. Get paid to work out
Yes, you can get paid for being active, even while doing your regular workout!
Apps like HealthyWage make staying fit exciting by allowing you to bet on your fitness goals. You set a weight loss target, bet on yourself, and join others with similar goals. If you achieve your goal first, you win money from the prize pool. It’s a friendly competition with a chance to earn a financial reward.
14. Become a notary
If you want to earn money with little effort, you might think about becoming a notary. As a notary, your job is to be a witness when people sign important papers and to check that the people signing are really who they say they are.
So, yes, you are still working a job, but you are simply watching people sign papers.
What notaries do:
Meet people who need papers signed.
Check their IDs to make sure they are who they say they are.
Watch them sign the document.
Use your notary stamp and write in your record book.
You can make anywhere from $9 to $21 per hour, but it depends on things like where you live and if you have to go to people or they come to you.
15. Mattress tester
Testing mattresses is a unique side hustle where you can make money by just testing out mattresses.
As a mattress tester, you’ll test beds and write reviews about your sleep quality, comfort, and any other observations. Your feedback is valuable as it helps companies improve their products to better meet customer needs.
Some mattress companies pay individuals like you to test their products. This helps them figure out how comfortable their mattresses are and how they can make them even better.
You can find these gigs by researching local sleep clinics or mattress companies that offer paid studies or testing.
I have actually been paid to test mattresses in the past, and it is easy! I was only paid with free mattresses, but at one point in a single year, I think I received 5 or 6 mattresses. I ended up giving away a couple to friends and family because the work was so easy.
16. Join a sleep study
Similar to testing out mattresses, you may be able to get paid to join a sleep study.
Sleep studies are research projects that help doctors understand sleep patterns and disorders. If you’re interested in earning money while contributing to science, participating in one of these studies is an option. Typically, sleep studies seek specific types of participants, such as a particular age group or weight range. Your initial step is to determine if you meet their requirements.
After being accepted into a study, you’ll visit the center for tests. During the study, you might wear special equipment while you sleep. This equipment helps researchers monitor and track your sleep patterns.
The payment you receive depends on how long the study is, which might be for one night or even several weeks.
Many universities, like the Harvard Division of Sleep Medicine, pay for sleep studies.
17. Put an advertisement on your car
If you want to earn extra money without doing much, think about turning your car into a moving billboard. Companies will pay you to put their ads on your car.
To start, join a car wrap advertising company like Carvertise or Wrapify. They’ll place a special sticker, called a car wrap, on your entire car or specific parts of it. These companies seek drivers to display ads on their cars, and the more you drive and the places you go can increase your earnings.
Your car’s make and model, condition, and paint quality are important. They decide how well the ads will stick and look.
The type of ad wrap you choose changes how much you get paid too. The options are:
Full wrap
Partial wrap
Just the windows
Here’s what you might be able to earn:
Car Wrap Type
Possible Earnings
Full Wrap
$200 to $1000 per month
Partial Wrap
$150 to $250 per month
Window Ads
$100 to $250 per month
Keep in mind that the earnings can vary. It depends on factors like how frequently you drive and where your car is visible.
Recommended reading: 6 Best Ways To Get Paid to Advertise On Your Car
18. Rent out a spare room in your home
If you have an extra room in your house and want to earn passive income streams, you can make money by renting it out. This is a smart way to earn cash without much work.
I have had several roommates over the years. We would rent out our spare room to long-term renters and people that we personally knew (such as friends and my sister).
To find a roommate and earn rental income, you can advertise your space in various places. You can announce on your personal Facebook page, place an ad on websites like Craigslist, create a rental listing on Airbnb, and more.
Whether you have a house or an apartment, this may be an option available to you.
19. Use cash back sites
When you shop online, you can earn money back on what you spend by using cash back sites.
Think of it like getting a discount, but instead of saving money right away, you get some cash back later.
I use cash back sites and apps pretty much every single time I shop – it’s easy, free money for me.
Popular cashback sites include:
Rakuten – Gives you a percentage of your money back.
Swagbucks – Earns points that you can exchange for cash or gift cards.
Fetch Rewards – I use this site for every single grocery receipt I have.
Ibotta – Another easy grocery scanning app to use.
For example: To get cash back, all you need to do is create a Rakuten account, visit their website, and click on the store where you want to shop (such as Target, Best Buy, Old Navy, etc.). They will then redirect you to that store, and you can shop online as you normally would to get cash back.
These types of sites typically pay via free gift cards or PayPal cash.
20. Rent out your RV
Renting out your RV can be a way to earn extra money on something that might be sitting around collecting dust (and rust!).
By renting it out, you could potentially make $100 to $300 a day or even more.
RVing has become very popular these days, and people frequently rent RVs to explore on vacations or even to try out a specific RV model before making a purchase.
One RV rental platform that I recommend is RVshare. RVshare is basically an Airbnb just for RVs. It’s a site where you can list your RV for rent and RVshare will handle all payments and bookings for you.
Similar to this, you can also rent out your car on Turo!
Recommended reading: How To Make Extra Money By Renting Out Your RV
21. Receive a pension
Getting paid to do nothing may sound like a dream, but if you have a pension, it’s a real thing that can happen when you retire.
A pension is money that you get regularly after working for a certain number of years.
When you work at a job that offers a pension plan, your employer puts money into this plan for you. When it’s time to retire, this money comes back to you, usually every month.
The amount you get usually depends on three things:
Age – Generally, the older you are when you retire, the more you get.
Salary – How much you earned at your job can affect your pension.
How long you worked there – The longer you worked, the higher your pension.
Sometimes, you might have the option to receive all your pension money at once, known as a “lump sum.” It’s a substantial, one-time payment instead of monthly checks. Make a wise decision by considering what works best for you. If you’re unsure, seeking advice from someone knowledgeable about finances could help you decide.
Frequently Asked Questions About Getting Paid to Do Nothing
Below are answers to common questions about how to get paid to do nothing.
How can I get money for doing nothing?
You might be surprised, but there are ways to earn money with little to no effort. For instance, using a cash back credit card for your everyday spending allows you to get a percentage back. You can also do any of the things above, such as selling digital downloads online, finding a job that will pay you a pension once you retire, investing in dividend-paying stocks, and more.
What are jobs where you do nothing and get paid a lot?
So, it can be hard to work an actual job that pays you a lot of money to do nothing. After all, if that existed, then everyone would be doing it, haha! Some jobs do pay you, though, for simple tasks, such as being a notary.
Can I really make income by just being idle?
Yes, you can make passive income through methods like earning interest from a high-yield savings account or renting out your spare space.
Where can I find jobs that don’t expect much work from me?
Look for gig economy jobs where you can earn money based on the tasks you choose to accept, such as delivering food or charging electric scooters. There are so many other side jobs that aren’t even mentioned on the list above, such as creating an online course, becoming a taste tester, micro-investing (such as with the Acorns app), becoming a background actor, watching ads, affiliate marketing, delivering groceries, writing a book review online (such as for Kirkus Media), playing games, talking with an online companion or strangers, and more.
How to get paid to do nothing online?
Some ways to get paid to do nothing online include selling digital files and stock photos. These will both require initial work from you, but eventually, these will sell with little work needed by you.
How To Get Paid to Do Nothing – Summary
I hope you enjoyed this article on how to get paid to do nothing and found one or more gigs that fit what you’re looking for!
As you can see, there are many ways to get paid to do nothing (or almost nothing).
You can grow your savings effortlessly with high-yield savings accounts or make money by renting out extra storage space. Investments in stocks that pay dividends or REITs can give you money regularly without needing your daily attention.
According to CNBC, Citigroup could announce a writedown as high as $24 billion when it reports fourth-quarter earnings Tuesday, more than doubling previous estimates.
The bank’s board is also expected to meet tomorrow to discuss a possible dividend cut, or even an outright suspension, a move Citi had previously said it would not make, but one that could save billions a year.
Additionally, as part of the massive restructuring plan, the New York-based bank and mortgage lender is expected to cut an estimated 20,000 jobs.
The struggling giant is also looking to raise as much as $15 billion from foreign and domestic investors, including Saudi Prince Alwaleed bin Talal.
Alwaleed, who assisted the bank during a crisis in the early 1990s, is Citigroup’s largest individual shareholder, holding a four percent stake in the company.
However, he is unlikely to raise his current stake beyond five percent to avoid regulatory headaches, the WSJ reported.
The Financial Times reported that Citi could also receive $9 billion from Chinese investors, and another $1 billion to $2 billion from The Kuwait Investment Authority.
In November, Citi obtained $7.5 billion in new capital from The Abu Dhabi Investment Authority, just weeks after former CEO Charles Prince was ousted.
At that time, the bank said it expected writedowns of just $8 to $11 billion, a far cry from recent analyst estimates of $15 to $18 billion.
According to a survey conducted by Bloomberg, analysts anticipate Citi to report a fourth-quarter loss of $4.21 billion.
Shares of Citi climbed 45 cents, or 1.60%, to $28.56 Friday on news the company was in talks to acquire new capital.
Check out the latest mortgage layoffs, closures and mergers.
Citigroup recorded the worst quarterly loss in its storied history today, chalking up $18.1 billion in writedowns related to subprime related debt and boosting loan-loss reserves by $4.1 billion.
The New York-based bank and mortgage lender reported a net loss of $9.83 billion, or $1.99 per share for the fourth quarter, bringing net income to just $3.62 billion, or 72 cents per share for the whole of 2007.
During the same period a year ago, the company reported earnings of $5.13 billion, or $1.03 per share.
Citigroup’s revenue fell a whopping 70 percent to $7.22 billion, down from $23.83 billion in the fourth quarter of 2006.
Analysts surveyed by Thomson Financial expected the company to report a loss of $1 a share on revenue of $10.64 billion.
In a bid to raise much needed capital, the Board slashed its quarterly dividend 41 percent to 32 cents from 54 cents and will offer $2 billion in preferred securities.
The bank also said it had gathered $12.5 billion in additional capital from investors and shareholders, including $6.88 billion from the Government of Singapore Investment Corporation (GIC).
As of December 31, 2007, direct subprime exposure was $37.3 billion, including roughly $8 billion of gross lending and structuring exposures and around $29.3 billion of net ABS CDO super senior exposures, down from a total of $54.6 billion the prior quarter.
The company reported that 2.56 percent of its first mortgages were 90+ days delinquent, up from 2.09 percent the previous quarter, while second mortgage delinquencies rose 39 basis points, from 0.99 percent to 1.38 percent.
A hefty 7.83 percent of first mortgages with a Fico score below 620 (subprime mortgage) were similarly delinquent, along with 2.48 percent of second mortgages greater than 90% loan-to-value.
Additionally, the banking giant said it cut 4,200 jobs during the quarter and noted during the conference call that there would be more to come.
Shares of Citi were down $1.83, or 6.31%, to $27.23 in late morning trade on Wall Street, hovering above their 52-week low of $26.50.
You’re likely familiar with the story of Robinhood, the outlaw who stole money from the rich and gave it to the poor. Well, you’ll find a similar principle behind the investing app, Robinhood.
The founders of Robinhood aren’t stealing anything, but they do believe that the current financial system doesn’t benefit every American. For that reason, they make it easy for non-traditional investors to get started.
When you sign up for Robinhood, you get access to commission-free trades, a cash management account, and a lot more. Keep reading to learn more about the pros and cons of signing up for Robinhood, as well as whom the app is best for.
Introduction to Robinhood
Robinhood is a popular investing app that allows users to trade stocks, options, exchange-traded funds (ETFs), and even cryptocurrencies without paying any commission fees. It was founded in 2013 and has since grown to over 22 million users, disrupting the financial industry.
The app is designed to cater to non-traditional investors and make the financial system more accessible to everyone. In this Robinhood review, we’ll explore its features, pros and cons, and determine who it’s best suited for.
How does Robinhood work?
When you sign up for a Robinhood account, you’ll get your first stock for free, even if you don’t deposit any funds. Signing up for an account is easy. All you have to do is enter your name, email address, and create a password.
From there, you’ll be prompted to enter more personal information, like your address and Social Security Number. Robinhood is required by federal law to request this information.
After you’ve set up your brokerage account, you’ll outline your investing experience thus far. And to go forward, you will need to fund your account at this point. However, there’s no minimum deposit required to fund the account, so you can always start small and invest more later.
You can connect your bank account to the Robinhood app to make funding your account easier. And there are no fees for transferring money in and out of your account.
Get started with Robinhood
on Robinhood’s secure website
Robinhood’s User Interface and Ease of Use
User-friendly interface: One of the key selling points of Robinhood is its simple, user-friendly interface. Both the web and mobile versions of the app have been designed to make it easy for users to navigate and trade. The intuitive design allows users to quickly understand their account, monitor their investments, and execute trades with minimal hassle.
Account setup and verification: Setting up an account with Robinhood is a straightforward process. Users can sign up with just their name, email address, and a password. Further personal information, such as address and Social Security number, is required due to federal law. Once the account is set up, users can outline their investing experience and link their bank account for easy funding.
Diving Deeper into Robinhood’s Features
Robinhood offers several features that make it stand out from other investing apps:
Zero commissions: As mentioned earlier, Robinhood has been a pioneer in offering commission-free trading on stocks, options, ETFs, and cryptocurrencies. This feature has helped democratize investing and lower the barriers to entry for non-traditional investors.
Cryptocurrency trading: Robinhood is among the few investing apps that support cryptocurrency trading. Users can trade popular cryptocurrencies like Bitcoin, Ethereum, Litecoin, and Dogecoin. This added functionality allows users to diversify their investments within a single platform.
Mobile app: Robinhood’s mobile app is highly regarded for its ease of use and clean design. Users can quickly view their portfolio, monitor market news, and execute trades on the go.
Account notifications: Users can customize their notification settings to receive alerts about their account performance, significant price movements, and other relevant information.
Daily market updates: Robinhood’s news feed provides users with daily updates on market trends, economic news, and other developments that can impact their investments. This helps users stay informed and make better investment decisions.
Exploring Additional Robinhood Features and Aspects
In addition to the features already discussed, Robinhood offers various other aspects that make it an attractive choice for investors. Let’s dive into some of these additional features and see how they can benefit users.
Extended-hours trading
Robinhood allows users to participate in extended-hours trading, which includes pre-market and after-hours trading sessions. This feature gives investors the opportunity to act on news and events that happen outside of standard market hours, potentially capitalizing on price movements before the broader market reacts.
Options trading
Robinhood offers options trading, which involves buying and selling contracts that give investors the right, but not the obligation, to buy or sell a stock at a specific price within a specified period. This feature enables users to implement more sophisticated trading strategies and potentially profit from market volatility, while also providing the flexibility to manage risk according to their preferences.
Dividend Reinvestment Program (DRIP)
Robinhood supports a Dividend Reinvestment Program, allowing users to automatically reinvest their dividends back into the underlying stocks or ETFs. This feature can help investors grow their portfolios more efficiently over time by harnessing the power of compounding returns, allowing them to maximize their potential earnings.
Fractional share dividend reinvestment
In addition to allowing fractional share purchases, Robinhood also enables users to reinvest dividends as fractional shares. This functionality ensures that users can continue to grow their investments, even if they don’t have enough dividends to purchase a full share, making it a valuable tool for long-term wealth accumulation.
Instant deposits
Robinhood offers instant deposits for its users, allowing them to access their transferred funds more quickly (up to $1,000). This feature ensures that users can take advantage of investment opportunities without waiting for their funds to settle, providing a more seamless investing experience.
Security and account protection
Robinhood prioritizes the security of its users’ accounts and personal information. The platform uses industry-standard encryption and security measures to protect user data. Additionally, Robinhood accounts are insured by the Securities Investor Protection Corporation (SIPC) for up to $500,000, including a $250,000 limit for cash. This protection offers users peace of mind as they navigate the world of investing.
Educational resources
Robinhood offers various educational resources, including articles and guides, to help users improve their investment knowledge and make more informed decisions. These resources can be especially beneficial for new investors looking to learn more about the world of investing, equipping them with the knowledge needed to navigate the markets confidently.
Social aspect and community
Robinhood’s platform has a social component, allowing users to follow friends, family members, or other investors and view their portfolios. This feature can create a sense of community and motivate users to learn from one another’s investment strategies, fostering collaboration and the sharing of ideas.
Benefits of Robinhood
There are several advantages to using Robinhood as your investing app of choice:
No account minimum: Robinhood requires no minimum deposit to start trading, making it accessible to users with limited funds.
Free trading: Commission-free trades on stocks, options, ETFs, and cryptocurrencies helps users save on trading costs.
Cash management account: Robinhood offers a cash management account with a 1.50% APY on uninvested cash, no hidden fees, and a debit card issued by Sutton Bank.
Fractional shares: Users can invest in fractional shares of thousands of stocks, allowing them to build a diversified portfolio with minimal investment.
Drawbacks of Robinhood
Despite its numerous benefits, there are a few drawbacks to using Robinhood:
Limited account types: Robinhood only supports individual taxable accounts, so users looking to open other types of brokerage accounts will need to explore other platforms.
Limited trading tools: Robinhood’s research and trading tools are relatively basic compared to those offered by other online brokers.
Minimal customer support: Customer support is primarily available through a chatbot and FAQ page, which may not be sufficient for users with more complex queries.
Get started with Robinhood
on Robinhood’s secure website
Robinhood Gold: Premium Features for Advanced Investors
Robinhood Gold is a subscription-based premium service that offers a suite of advanced features designed for more experienced investors. By upgrading to Robinhood Gold, users can access the following benefits:
Bigger Instant Deposits
While standard Robinhood users can access instant deposits of up to $1,000, Robinhood Gold subscribers receive instant deposits depending on their account balance. This feature allows users to invest larger amounts immediately, without waiting for their funds to settle.
Level II Market Data
Gain access to Level II market data provided by Nasdaq TotalView, which shows real-time bids and asks for stocks. This advanced market data can help users make more informed trading decisions by providing greater transparency into market activity.
Margin Trading
Robinhood Gold allows users to trade on margin, providing them with access to additional buying power by borrowing funds from Robinhood. With margin trading, users can potentially amplify their gains, but should be aware that it also increases the risk of losses. It’s essential to carefully consider the potential risks and rewards before engaging in margin trading.
Research Reports
Subscribers receive access to research reports from Morningstar, a leading provider of independent investment research. These reports can help users make more informed decisions by offering in-depth analyses of individual stocks and industries.
Access to Investing in IPOs
Robinhood Gold users have the opportunity to invest in initial public offerings (IPOs) before the stocks are listed on public exchanges. This feature allows users to potentially profit from the early stages of a company’s growth, as well as gain exposure to new and innovative industries.
The cost of Robinhood Gold is $5 per month, which includes access to all the premium features mentioned above. It’s important to note that margin trading also comes with additional fees based on the amount borrowed, so users should carefully consider the costs before utilizing this feature.
Robinhood: Ideal for New and Casual Investors
Robinhood is best suited for new investors who want an easy-to-use platform to start trading with minimal barriers to entry. It’s also an excellent choice for casual investors who prefer a more hands-off approach, as the app’s features and design make it easy to monitor investments and stay informed on market trends.
For those interested in margin trading, Robinhood Gold is an option worth considering. This premium service costs $5 per month and provides access to additional margin, ranging from $5,000 to $50,000, depending on the user’s deposit amount.
However, Robinhood may not be the best fit for individuals focused on long-term retirement savings, as it doesn’t offer retirement accounts or investment options like bonds and mutual funds. Additionally, more experienced investors seeking advanced research tools and a wider range of account types may find Robinhood’s offerings somewhat limited.
Other Considerations and Alternatives to Robinhood
While Robinhood is a popular choice for many investors, it’s essential to consider other factors and alternatives before deciding on an investing platform.
Tax implications: Investing through Robinhood’s individual taxable account means that any capital gains or dividends received will be subject to taxation. Users should be aware of the tax implications of their investments and consider seeking professional tax advice.
Risk management: Investing always carries a degree of risk, and Robinhood is no exception. It’s crucial for users to assess their risk tolerance, diversify their investments, and develop a long-term investment strategy to minimize potential losses.
Alternatives to Robinhood: There are several other investing apps and platforms available that cater to different types of investors. Some popular alternatives include:
Fidelity: A full-service brokerage offering a wide range of account types, investment options, and advanced research tools. Fidelity is ideal for more experienced investors or those looking for a more comprehensive investment platform.
M1 Finance: A robo-advisor and brokerage platform that allows users to create custom portfolios or choose from expert-curated portfolios. M1 Finance is suitable for investors who prefer a more automated approach to investing.
Acorns: A micro-investing app that rounds up users’ everyday purchases and invests the spare change into a diversified portfolio. Acorns is perfect for beginners who want to dip their toes into investing with minimal commitment.
Bottom Line
Final Thoughts on Robinhood
Robinhood is a solid option for new investors looking to explore the world of trading without paying commission fees. The user-friendly interface, zero-commission trades, and various features make it an attractive choice for casual investors or those just starting. However, more experienced investors or those with specific account needs may need to consider other brokerage platforms.
By weighing the pros and cons, potential users can decide if Robinhood is the right fit for their investment goals and preferences. With no commitment required and a free stock upon sign-up, there’s little risk in giving Robinhood a try and determining if it meets your investing needs.
Both Bank of America and Wachovia Bancorp barely chalked fourth-quarter profits as a result of hefty mortgage-related writedowns and increased loan-loss provisions.
Bank of AmericaProfit Dives
Bank of America saw its fourth-quarter profit slip 95 percent to just $268 million, or 5 cents per share, compared to $5.26 billion, or $1.16 per share, during the same period last year.
Its earnings were severely impacted by a $5.28 billion writedown related to the flagging value of its CDOs, and $3.3 billion set aside for bad loans.
The bank’s fourth-quarter revenue fell a staggering 31 percent to $12.67 billion, from $18.49 billion last year.
The company saw home equity loan losses triple since the end of the third quarter, while charge-offs rose to 0.91% of the total portfolio from 0.82% and non-performing assets more than doubled to 0.68% of total assets from 0.26%.
On a positive note, first mortgage originations rose 22 percent to more than $104 billion from $86 billion a year ago, helped in part by the success of its No Fee Mortgage PLUS, which accounted for 16 percent of the company’s first mortgage production in the fourth quarter.
Bank of America plans to shore up more than $2 billion in capital to better position itself for the pending acquisition of Countrywide Financial, but said it doesn’t plan to cut its dividend.
For the full year, the banking giant reported earnings of $14.98 billion, or $3.30 per share, compared with $21.13 billion, or $4.59 cents per share, a year earlier.
Wachovia Barely Turns a Profit
Wachovia faired even worse, with profit dwindling 98 percent to just $51 million, or 3 cents per share, compared to $2.3 billion, or $1.20, a year ago.
Its fourth-quarter results included a $1.7 billion writedown tied to mortgage-related investments and $1.5 billion set aside for loan losses.
Fourth-quarter revenue at the bank and mortgage lender dipped to $7.2 billion from $8.62 billion in the same period a year ago.
Net charge-offs rose to $461 million, or an annualized 0.41 percent of average net loans, while non-performing assets climbed to $5.2 billion, or 1.08 percent of its loans, foreclosed properties and loans held for sale.
Despite capital concerns, chief executive Ken Thompson told investors during a conference call that the bank would not cut its dividend.
For all of 2007, Wachovia earned $6.31 billion, or $3.31 per share, compared to $7.79 billion, or $4.72 per share, reported in 2006.
Analysts surveyed by Thomson Financial, on average, forecast earnings of 18 cents per share for Bank of America and 33 cents per share for Wachovia.
Shares of Bank of America climbed $1.87, or 5.20%, to $37.84, while Wachovia gained 62 cents, or 2.01%, to $31.42.
National City Reports a Fourth Quarter Loss
In related news, National City reported a fourth-quarter loss of $333 million, or 53 cents a share, compared with year-earlier net income of $842 million, or $1.36 a share.
The results include $181 million, or 26 cents a share, in mortgage-related charges and a loan-loss provision of $691 million tied to the liquidation of portfolios containing non-conforming mortgages and home equity loans.
Net charge-offs for the quarter were $275 million, or 0.96% of average portfolio loans, compared with $128 million a year earlier, while nonperforming assets more than doubled to $1.5 billion, or 1.31% of loans, mostly linked to a larger number of delinquent residential mortgage loans.
Mortgage real estate investment trusts (mREITs) are investment vehicles that focus on generating income through mortgage-related assets, such as mortgage-backed securities and mortgage loans.
Unlike traditional REITs that invest directly in real estate, mortgage REITs earn income from the interest on mortgage assets, offering investors exposure to the mortgage market with the potential for high dividend yields.
Here are the three mortgage REITs with the highest yields.
Orchid Island Capital Inc.
As a specialty finance company that invests in residential mortgage-backed securities (RMBS), Orchid Island Capital Inc. (NYSE:ORC) has the highest dividend yield at 21.04%. The company’s investment strategy focuses on the acquisition and management of government-backed RMBS, aiming to generate attractive risk-adjusted returns for investors.
NexPoint Real Estate Finance Inc.
NexPoint Real Estate Finance Inc. (NYSE:NREF) has a current yield of 17.29%. The company focuses on originating, structuring and investing in first mortgage loans and mortgage-backed securities. Its strategy is centered on providing structured financing solutions to property owners across various sectors, including multifamily, office and hospitality. Its objective is to deliver stable, risk-adjusted returns to investors.
Invesco Mortgage Capital Inc.
Invesco Mortgage Capital Inc. (NYSE:IVR) has a current yield of 17.02% with an investment portfolio including a diverse range of assets like government agency RMBS, nonagency RMBS, commercial mortgage-backed securities (CMBS) and residential and commercial loans. Its overarching strategy is designed to provide sustainable income and capital appreciation for its investors.
Remember, these are the mortgage REITs with the highest yields. That doesn’t necessarily make them the best for you.
Investing in real estate just got a whole lot simpler, and you can get started in minutes with as little as $100. Browse available offerings here.
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This article 3 Mortgage REITs With Yields Up To 21.04% originally appeared on Benzinga.com
Have you ever received a payment — such as a dividend check or a bond interest payment — and noticed that 24% of the expected amount was missing? If so, you may be subject to backup withholding.
This tax action can be irritating, but it only applies to certain kinds of payments and is easily fixed by making sure the IRS has correct tax information from you.
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What is backup withholding?
Backup withholding is an action where the IRS makes payers, such as banks, deduct a 24% tax from certain kinds of payments to taxpayers who have failed to provide the IRS or payers with needed information and send that amount to the government. It’s a way of ensuring the IRS receives the money it’s owed by potentially uncooperative taxpayers.
There are two ways someone can become subject to backup withholding:
The backup withholding “B” program applies to taxpayers who fail to provide a correct tax identification number (TIN) to entities that pay them — for example, a bank at which they have a high-yield savings account. A TIN can be a Social Security number, an employer identification number or an individual taxpayer identification number. (Payers need a valid TIN from payees so that they can accurately report payments to the payee to the government.)
The backup withholding “C” program applies to taxpayers who have unreported interest or dividend income on their federal tax return, or who have accidentally marked themselves as subject to backup withholding due to previous underreporting of income. (Many investment institutions, such as brokers, are required to ask new users if they’re subject to backup withholding. If a user mistakenly checks that box, they may become subject to it.)
If you’re subject to backup withholding, that 24% deduction counts toward your taxes owed. You may be able to get some of it back if you file a Form 1040 that shows that the amount you’ve paid via backup withholding is greater than the amount you owed for a particular year.
What payments are subject to backup withholding?
Backup withholding can apply to many different kinds of nonpayroll income — typically the kind of things that are reported on a 1099 form, which records passive income and nonsalary work, or a W-2 G form, which records gambling winnings. These include:
Dividends.
1099-K income from credit or debit card payments.
Attorney’s fees and court proceeds, for attorneys.
Patronage dividends from co-op businesses.
Rents, profits and other capital gains.
Payments from brokers.
Royalty payments.
Cash payments from fishing boat operators.
Certain government payments.
Gambling winnings (reported on form W-2 G).
But backup withholding doesn’t apply to all nonpayroll income. Certain kinds of payments are excluded from it, such as:
How do you know if you’re subject to backup withholding?
If you’re subject to backup withholding, you should receive at least one letter notifying you of backup withholding before it starts. But which letter you receive and who it comes from depends on which specific backup withholding program you’re subject to.
Backup withholding “B” program notification
If you’re subject to “B” backup withholding, the payer you failed to provide a valid TIN to will send you notices asking for you to provide the missing information. The IRS, however, will not send you a notice — they will send a notice to the payer, who will then reach out to you.
If you provided an obviously incorrect TIN (e.g., one that doesn’t have enough numbers) or you didn’t provide one at all, backup withholding may begin immediately. For example, if you fail to provide a TIN while signing up for an online savings account, backup withholding of interest payments may begin upon account opening.
If there’s just a discrepancy between the name and TIN you provided, you may have up to 60 days to correct the issue before backup withholding begins.
Backup withholding “C” program notification
If you’re at risk of becoming subject to “C” backup withholding due to unreported interest or dividend income, the IRS will send you up to four notices over a 120-day period asking you to correct your income tax return to account for the unreported income. If you don’t make those corrections, the final notice informs you that you’re now subject to backup withholding.
If you become subject to “C” backup withholding because you failed to certify that you’re not subject to it, you will not receive a notice from the IRS, and backup withholding may begin immediately. For example, if you accidentally checked the “backup withholding” box while signing up for a brokerage account, backup withholding may begin upon account opening.
If you want to contact the IRS about backup withholding, you can call them at 800-829-1040 from 7 a.m. to 7 p.m. local time.
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How to stop backup withholding and get credit for it
Backup withholding doesn’t have to be permanent. If you end up paying more than you actually owe, it can be partially refunded, just like any other tax payment. But the details of how to stop backup withholding vary based on which program you’re subject to.
How to stop “B” backup withholding
Stopping “B” backup withholding is simply a matter of sending the payer a W-9 form with a correct TIN. The payer may send you a W-9 form when they notify you of intent to begin backup withholding. If not, you can download it yourself here.
How to stop “C” backup withholding
To stop “C” backup withholding due to unreported interest or dividend income, you’ll need to report that income — and pay taxes on it, if applicable.
If you’ve become subject to “C” backup withholding accidentally, due to an error while filling out a form, contact the customer service department of the relevant bank, brokerage or other payer institution and see if they can help. They may ask you to send them a new W-9 form to stop backup withholding.
How to get credit for past backup withholding
If you were subject to backup withholding for a particular year, you should get documentation of the amount withheld by each payer on your 1099 or W-2 G forms for that year. To get credit for past backup withholding, add those amounts together, enter the total in line 25 of Form 1040, and then attach the relevant 1099 and W-2 G forms when you file it.
Flagstar Bancorp reported a fourth quarter net loss of $30.1 million, or 50 cents per share, compared to net earnings of $6.9 million, or 11 cents per share during the same period a year ago.
For all of 2007, the Michigan-based bank and mortgage lender lost $39.2 million, or 64 cents a share, compared to earnings of $75.2 million, or $1.17 per share in 2006.
The losses were attributed to weaker gains on sales of mortgage servicing rights (“MSRs”), rising credit costs, and an impairment in the value of its securities available for sale portfolio and its trading portfolio.
Fourth quarter loan production was $6.7 billion, up from $5.4 billion during the fourth quarter of 2006, pushing full year production to $26.7 billion, an increase of 32.2 percent from $20.2 billion in 2006.
Flagstar increased its allowance for loan losses to $104.0 million, or 1.28 percent of loans held for investment, up from $45.8 million, or 0.51 percent of loans held for investment, as of December 31, 2006.
Net charge-offs of loans increased to $12.2 million during the fourth quarter, up from $5.2 million during the same period a year ago, while non-performing loans increased to $197.1 million, up markedly from $57.1 million as of December 31, 2006.
As of the end of the year, subprime loans made up approximately one percent of total assets at the bank.
Single-family residential first mortgage loans held for investment had an average Fico score of 719 and an average original loan-to-value ratio of 73.4%.
During the conference call, the bank said it will only originate home loans that can be sold to the GSEs or the FHA, and warned that it may suspend its dividend in an effort to conserve cash until the mortgage mess eases.
Despite that, the bank said yesterday it was re-launching its jumbo loan program that was temporarily halted after Aurora shut down shop.
In related news, Moody’s Investors Service downgraded the long-term deposit rating for Flagstar Bank to the lowest investment grade of “Baa3” from “Baa2” because of ongoing deterioration in the residential and commercial mortgage markets.
Moody’s said it held a negative outlook on the bank, noting that further delinquencies and defaults are likely to increase credit costs for Flagstar and strain earnings.
Shares of Flagstar were down $1.07, or 12.88 percent, to $7.24 in early afternoon trading on Wall Street.