money moves Archives - Hanover Mortgages

Apache is functioning normally

September 9, 2023 by Brett Tams

What a long, strange couple of months it’s been for me. On the blog, things have been quiet. Behind the scenes, I’ve been as busy as I’ve ever been.

The good news is that this busy-ness will (eventually) lead to a number of interesting articles. I’ve been reading Cal Newport’s Deep Work, for instance, and have some thoughts on it. I’ve been thinking about the concept of “no speed limits”. Shocking but true: I’m going to write an article about my primary credit card. And I’ve been reading and writing a lot about “doing nothing”.

Today, though, I want to clear my head (and my inbox) by sharing five short financial anecdotes.

In the past month, I’ve had probably twenty deep discussions about personal finance and personal values. While some of these conversations lead to bigger things (like the three articles I mentioned above), most don’t. But they still produce intertesting concepts and ideas. They sometimes lead me to make changes.

Here are a five money-related topics that don’t (yet) warrant articles of their own, but which I still find interesting (and worth sharing).

Going With Google

During my ten days in Portugal for the FI chautauqua, cell phone service was a common topic of conversation. Some folks didn’t have any. Others were paying a small fortune just to get a tiny bit of data from their provider.

There were two types of people who didn’t have any trouble with their cell service in Portugal: those who use T-Mobile and those who use Google FI.

“What’s Google FI?” I asked. I’d never heard of it.

“It’s Google’s cell service,” Owen said. “It’s cheap and has lots of features, but you can’t use it with Apple phones.”

“Actually, you can,” Bill said.

“But the website says it doesn’t work with iPhones,” said Owen.

“The website is wrong,” said Bill. “I’ve been using it with my iPhone for months with no problems — even here in Portugal.” He showed us his phone and explained how much he liked Google FI.

“I’ll look into,” I said. And I did. Here’s what I learned:

Kim and I currently spend $117 (plus taxes and fees) for our shared T-Mobile plan. This gives us a limited amount of high-speed data (although plenty for normal needs), plus service for my Apple Watch. (When the watch dies, I don’t plan to replace it, so eventually that’ll save us ten bucks per month.)
If we were to move to Google FI, it’d cost us $120 per month (plus taxes and fees). That’s roughly the same price, obviously, with no real advantages. (We’d have access to more high-speed data, although we rarely need that. Plus, we’d get Google One, whatever that is.) And it doesn’t include service for my watch.

My conclusion? For T-Mobile customers like us, moving to Google FI doesn’t make much sense. But I suspect many people ought to consider their service.

Meanwhile, we’ve been struggling with our wireless network here at home. Although Apple no longer makes wireless networking equipment, our network is built with routers from when they did sell the stuff. Some of these routers are now a decade old (or possibly older). We have four of them.

For whatever reason, our network is constantly going down. It’s frustrating. It’s quite common that three of the routers will be up while a fourth will arbitrarily decide to stop working for a few days. (And when we changed the network name last spring? Nightmare!)

While visiting MMM HQ last weekend, I noticed that Pete uses the Google Mesh system to provide service in his co-working space. “Do you like it?” I asked. “I’ve heard other people rave about Google Mesh, but I don’t know anything about it.”

“It’s awesome,” he said. “Totally trouble-free.” So, I’ve ordered a starter set of Google Mesh devices. They’ll arrive tomorrow. I have high hopes that this will cure our wifi headaches.

Taming the Email Beast

After returning from my nineteen-day trip to Portugal, Wisconsin, and southern California, my email inboxes were swamped. (I have five separate gmail accounts. Crazy, right?)

Naturally, I complained about the situation on Facebook. My friend Charlotte sent me a private message: “Do you have time to hop on a video call?” she asked. “I’ll show you a way to tame your email.”

Charlotte spent twenty minutes walking me through an email system she recently adopted. It effectively divides your gmail inbox — and yes, you have to be using gmail — into five different inboxes, each of which is themed. Once a day, you tackle your main inbox, routing messages to sub-inboxes. Then, when you have time, you work through the other inboxes.

This is a minor change to the way I do things (and admittedly it mostly delays messages to later), but it’s effective.

I send myself email twenty times each week. It’s my note-taking system. It’s how I offload things from my brain. This is great…except that my inboxes tend to get flooded with book recommendations, article ideas, and reminders of upcoming events. It’s a mess. Using this system, I can still send myself messages, but I’m now able to flag these messages so they’re routed to the appropriate sub-inbox.

I’ve been following Charlotte’s advice for two weeks now, and I like it. It hasn’t solved my email woe, but it’s mitigated the problem substantially.

Dozens of Credit Cards

Last weekend, Kim and I flew to Colorado to celebrate the birthday of a certain mustachioed friend. While there, I had several memorable conversations.

For instance, I chatted with Amy from Go With Less about how she and her husband play the credit-card game. They have an insane number of cards — 34? 43? I can’t remember the exact count — and over three million credit-card points.

While our conversation touched on topics like manufactured spending (a concept that blows my mind and angers card issuers), I was more interested in how and why Tim and Amy juggle dozens of credit cards. Doesn’t this hurt their credit score? Turns out: No. Because they pay bills on time and never cancel cards, they have nearly perfect credit.

Here’s a video in which they address this topic:

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I wanted to ask Tim and Amy more about their crazy credit-card fueled lifestyle, but I didn’t have the chance. I look forward to picking their brains more in the future, though.

Health Shares for the Non-Religious

Last weekend, I also had a conversation with Ben, who famously gets his cars for free. Ben is super smart and doesn’t accept the status quo. He’s always looking for ways to challenge the system in order to make the most of his money.

Lately, he’s been doing this with healthcare.

For many people who have retired early, health insurance is thorny issue. It’s expensive. Take my case, for example. I pay $403 per month for shitty coverage. This year, I’ve met my $7900 out-of-pocket max, which means I’ll have spent $12,736 (plus co-pays and prescriptions) when the dust settles. I hate the U.S. healthcare system. It’s insane.

Well, Ben too thinks it’s insane. Rather than complain about it, though, he’s been seeking creating solutions.

“Have you looked at health-sharing ministries?” Ben asked me on Sunday morning. “They can be a great way to cut costs.”

“I have,” I said. “But they all require a statement of faith, which I’m not able to give.”

“I had the same problem,” Ben said, “so I searched for alternatives. I found Sedera. It’s basically the same as a health-share ministry. You still have to agree to abide by certain principles, but they’re not based on a religion.”

“Is it affordable?” I asked.

“Yes,” he said. “I’m paying $200 per month per person for my wife, my daughter, and myself.”

“That’s not bad,” I said.

“But here’s the thing,” Ben said. “Sedera is designed to work with a direct primary care physician.”

“A what?” I said.

“A direct primary care physician is just what it sounds like. It’s a doctor that you work with directly without a third-party intermediary. That means the doctor bills you directly, not an insurance company. When you combine this with a health-sharing program like Sedera, it’s a cost-effective alternative to traditional insurance.”

“Kim and I have an appointment to talk with an insurance broker next week,” I said. “I’ll have to look into this as an alternative.”

“Do it,” Ben said. “You won’t regret it.”

Downgrading My Motorcycle

Lastly, here’s a topic that comes from several different conversations and a lot of soul-searching on my part.

When Kim and I started dating, I was surprised to learn that she was a motorcycle enthusiast. After she bought her father’s bike from him, I decided to learn to ride myself.

I started with a low-power Honda Rebel, which was perfect for my needs. Then, a couple of years ago, I made an impulse purchase: I upgraded to a Harley-Davidson Street 750. The new bike gave me the power to keep up with Kim on long trips. (The little Rebel was always falling behind on the highway.)

Turns out, though, that for day-to-day riding, I wish I had my Rebel. Kim and I don’t make many long trips — about one per year. And when we do, I’m fine falling behind. I’d rather have a quick and easy bike for running errands or zipping downtown. My Street 750 is not the right bike for this. It takes a long time to gear up and get the Harley ready to go.

I’ve spent the past year trying to figure out my best move. I’ve talked with a lot of friends and considered several options. Do I just stick it out with the motorcycle I have? Do I buy a new Rebel? Do I do something else?

After much thought and contemplation, I’ve decided that my best plan for the motorcycle situation is three-fold:

Sell the Street 750. Use the proceeds to purchase two replacements.
Buy a (used?) scooter to use for errands and running downtown. Kim plans to sell her motorcycle, so long trips are no longer an issue. I want something quick and easy to ride. I want to be able to get on the bike and go.
Buy an electric bike for use around home. I already own a bike, but as I’ve mentioned before, I don’t ride it. For one, I am fat. For another, we are surrounded by hills. MMM has urged me to look into Rad Power electric bikes.

Making this move — which likely won’t happen until the spring, when people are looking for motorcycles — is much more aligned with my values and lifestyle. Currently, my motorcycle mostly gathers dust. I ride it maybe 1000 miles per year. I’d ride the scooter more often, and the electric bike would get me out slicing through these hills for exercise!

What about you? What financial conversations have you been having with your friends? What minor money moves are you making in your life?

Source: getrichslowly.org

Apache is functioning normally

September 5, 2023 by Brett Tams

The Federal Trade Commission recently revealed the most reported text message scam: bank impersonations.

Reports of bank impersonations by text in 2022 jumped to 20 times the number reported in 2019. According to the FTC, consumers reported a loss of more than $330 million to text message scams in 2022. And cash that’s lost because of bank fraud or scams isn’t covered by the Federal Deposit Insurance Corp. or National Credit Union Administration.

Banks are a safe place to keep your money, but there are still a few basic but important precautions you can take to ensure you don’t fall for a bank-impersonation text scam. Here’s how to protect your money from text message scams impersonating your financial institution.

Don’t make money moves under pressure

Text message scammers will try to make you feel like action is required immediately — at the risk of losing your money. It may come as an urgent message warning you to call or click on a link because of alleged suspicious activity.

“Any type of pressure tactic is not legitimate — that is not your bank,” says Paul Benda, senior vice president of operational risk and cybersecurity at the American Bankers Association. As with any decision about your finances, avoid taking actions when you feel scared, stressed out or pressured.

Don’t click on any links from an unsolicited message

If you receive a text message you’re not expecting, be wary — especially if it looks like it might be from your bank.

In a recent poll by security experts at Security.org, 66% of respondents said that they had received a suspicious text from someone they didn’t know, and about 20% clicked on links texted from strangers, which is never advisable. “Look at any type of unsolicited communication very cautiously,” says Benda.

Major banks were popular choices for scammers to impersonate in 2022. According to the FTC, the most common scam text messages often claimed to be from large banks, including Bank of America, Wells Fargo, Chase and Citibank.

Don’t call a phone number that’s texted to you

Just as you shouldn’t click on a link texted to you from someone you don’t know, don’t click on or dial a phone number you receive in a text. Instead, find the official phone number for your bank by going to its website or mobile app. Initiate contact with your financial institution at its official phone number to ensure you’re talking to a legitimate representative, and verify whether there actually is an issue.

“Making that phone call can be the difference between getting scammed versus not getting scammed,” says Tremaine Wills, a financial advisor and founder of Mind Over Money, a financial literacy company in Newport News, Virginia.

One particular kind of text scam resulted in a median loss of $3,000 in 2022, according to the FTC: a text from someone impersonating your bank, instructing you to reply with a “Yes” or “No” to confirm or deny a suspicious transaction. Once you replied, the scammer would call you under the guise of helping you. Their ultimate goal was to either fraudulently transfer money out of your account or obtain personal information such as a Social Security number.

What to do if you were unable to avoid a scam

If you should happen to fall for a text scammer impersonating your bank, there are a few critical steps to take.

First, alert your bank to the incident and get its help in making sure no more money leaves your account fraudulently. Next, report the scam to local law enforcement. Those first two actions are key for trying to recover any cash that was wrongfully taken from your account.

Finally, file a complaint with the FTC at ReportFraud.ftc.gov and/or report the instance to the Federal Bureau of Investigation’s Internet Crime Complaint Center. The FTC also recommends that you forward suspicious text messages to 7726, which helps wireless providers identify and intercept similar text messages. You can also report and block suspicious text messages within your messaging app.

Having a good idea of your account activity is a key part of protecting your money from scams.

“Have a regular practice of knowing what’s going on with your account,” says Wills. If you’re not completely sure of what’s happening in your account, then you might be more likely to be alarmed by a text message claiming to be from your bank, she says.

This article was written by NerdWallet and was originally published by The Associated Press.

Source: nerdwallet.com

Apache is functioning normally

July 15, 2023 by Brett Tams

Your first job thrusts you into the adult world and the tricky balancing act of managing your money. The key to a healthy, wealthy, and low-stress lifestyle is not to get rich, but to master this balance as early as possible.

Here are six money-related moves to make during your first job so you feel good about your future.

What’s Ahead:

1. Open a Checking Account and Set Up Direct Deposit

If you don’t have one already, you’ll need a checking account to safely store your money.

The two most common reasons Americans are hesitant to open bank accounts are a) they don’t think they have enough cash, and b) they want to avoid bank fees. But many banks won’t charge you a penny for opening an account. And as long as you maintain the required minimum balance, if there is one, you won’t get charged any low balance fees and might be able to avoid maintenance fees.

The next question would be: which bank? You might’ve heard shifty things about some brick-and-mortar banks in the headlines, so who can you trust? Chime® and LendingClub are two great online-only options for modern banking.

Chime

Designed to help young people build their savings while they bank, Chime offers a safe and rewarding place to keep the money from your first job — and even get it early.*

When you set up direct deposit with Chime, you may be able to get your paychecks up to two days in advance if you qualify for early direct deposit.³ What’s more, Chime not only doesn’t charge overdraft fees but will cover up to $200 in overdrafts for eligible accounts with a feature called Chime Spot Me®. If you overdraw, Chime will “spot” you the money and deduct it from your next deposit at no cost to you.⁵

For its simple tools and variety of features to help make your life easier when money is tight, this is an ideal first checking account.

Open a Chime account or read our Chime review.

* Chime is a financial technology company, not a bank. Banking services provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC.
³ Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.
⁵ Chime SpotMe is an optional, no fee service that requires a single deposit of $200 or more in qualifying direct deposits to the Chime Checking Account each month. All qualifying members will be allowed to overdraw their account up to $20 on debit card purchases and cash withdrawals initially, but may be later eligible for a higher limit of up to $200 or more based on member’s Chime Account history, direct deposit frequency and amount, spending activity and other risk-based factors. Your limit will be displayed to you within the Chime mobile app. You will receive notice of any changes to your limit. Your limit may change at any time, at Chime’s discretion. Although there are no overdraft fees, there may be out-of-network or third party fees associated with ATM transactions. SpotMe won’t cover non-debit card transactions, including ACH transfers, Pay Anyone transfers, or Chime Checkbook transactions. See Terms and Conditions.

LendingClub

If you want a bank with more features that’ll pay interest on your balance, check out LendingClub. LendingClub offers a fee-free checking account that earns interest and cash back.

LendingClub’s Rewards Checking account pays 1.00% APY on balances between $2,500 and $100,000 (and 0.15% on balances above this). It’s not much, but the interest will add up the more you deposit. Plus, you can earn 1.00% cash back on qualifying purchases you make with your LendingClub debit card. And like Chime, users may be able to get their paychecks up to two days ahead of schedule.

Open a LendingClub account or read our LendingClub review.

Related: Best No-Fee Checking Accounts

2. Get the Right Credit Card

Once you’ve opened a checking account, your next step is to apply for a credit card. This can be through your current bank or a new institution altogether.

As a good rule of thumb, you should look for cards that have no annual fees and come with benefits like cash back and free stuff. But as you’re browsing rewards cards, make sure you choose one that actually makes sense for your spending habits.

Most likely, a fancy metal card that offers a high rewards rate on one category wouldn’t be as useful to you as a more basic rewards card that offers less cash back on more categories. Watch out for high annual fees and high interest rates with any rewards card.

One of the best cash back credit cards out there is the Chase Freedom Unlimited®. We recommend this card for anyone looking to build their credit when they start earning money from their first job.

For starters, this card offers a wide array of cash back categories. These are:

5% back on travel booked through the Chase Ultimate Rewards® portal
3% on dining, takeout, and drugstore purchases
1.5% on everything else

For a card with no annual fee that you can qualify for with average or good credit, you can’t do a lot better.

Read our Chase Freedom Unlimited® review.

Secured Credit Cards

Depending on your income and credit score, you might not qualify for the exact card you want. Most unsecured credit cards like the Chase Freedom Unlimited® have income requirements and want to see a certain credit score from applicants. Frankly, it can be tough to meet these as a newbie.

Secured credit cards can be a great option for people applying for credit for the first time. These are called secured because they require a security deposit, which is used as collateral in the event that you can’t pay back your balance. Secured cards tend to be easier to qualify for than unsecured cards but help you build credit all the same.

The OpenSky® Secured Visa® Credit Card is one of the best secured cards out there. With this card, you’ll put down a security deposit of between $200 – $3,000 when applying and this will become your credit limit.

All of your payment activity is reported to the three major credit bureaus, so making your payments on time will set you up for success and a better credit score.

What’s unique about the OpenSky® Secured Visa® Credit Card is that it doesn’t require a credit check or affect your credit when applying.

Read our review of the OpenSky® Secured Visa® Credit Card.

3. Start Budgeting

Budgeting is like driving. When you’re first starting out, it’s awkward, anxiety-inducing, and decidedly un-fun. But eventually, it kind of becomes second nature.

Effective budgeting can help you save money and feel less stressed. Knowing precisely how much money you have and where it’s going means there are no surprises and helps you plan for your financial goals. But making a budget and following it is a whole lot easier said than done.

If you’ve ever tried and failed to stick to a budget, it’s probably because you weren’t using the right tools. Trust us when we say the right tool makes all the difference.

We recommend PocketSmith and YNAB to beginners. If you want to make sure the money you’re earning from your new job is being put to good use, start with one of these budgeting products.

PocketSmith

PocketSmith is not your average budgeting app.

Yes, it’ll track your income and expenses and sound warning bells when you’re about to go over budget. But its most unique and useful feature is financial forecasting. With this, can insert a “dummy expense” and see how it’ll affect your finances as far as 30 years into the future. For example, if you want to go on a $3,000 vacation, you can see how much of a hit your money will take a year or two from now from that trip.

This feature is especially helpful for people with a new source of income. It takes a lot of practice to learn what you can afford to buy with each paycheck, and PocketSmith can save you from making some costly mistakes.

Start budgeting with PocketSmith or read our Pocketsmith review.

YNAB

You Need a Budget (YNAB) makes zero-based budgeting not only possible but simple. By linking your bank accounts, the app pulls information about your cash flow to quickly show you how much you have to spend. Then, you “give every dollar a job” each month by allocating all of your money to different spending and expense categories. Throughout the month, YNAB logs your transactions for you to help you stay on track in each budgeting category.

YNAB offers a variety of visuals and resources to help you figure out what you’re doing as you’re doing it. If you’re budgeting (or even just making money) for the first time and want to start out on the right foot, this tool is for you.

Start budgeting with YNAB or read our YNAB review.

4. Start Building Good Credit

You’ve probably heard a used car commercial say: good credit, bad credit, no credit, no problem! So what exactly is “credit,” why is it important, and how can you build it?

Your credit score is a three-digit number between 300 and 850 automatically assigned to you and updated regularly by the big three credit bureaus: Equifax, Experian, and TransUnion. Each bureau will have a slightly different score for you, but they’ll be roughly the same. Your score essentially tells financial institutions how reliable you are and how likely you are to actually pay your debt.

Having good credit throughout your 20s and 30s pays off big time. For example, if you take out a $25k auto loan with a credit score of 750 instead of 650, you could end up paying ~$6,000 less in interest over 60 months.

Thankfully, building credit is pretty simple if you’re consistent.

Here are the two main things you can do to build good credit:

Spend less than 30% of your credit limit each month on your card – this is called your credit utilization ratio and it says a lot to lenders about how responsible you are
Pay your balance in full and on time – set up automatic payments to avoid missing due dates

Related: How To Build Credit the Right Way

5. Open a Retirement Account

Is it ever too early to think about retirement? Nope! In fact, opening a retirement account as soon as you get your first job is one of the best decisions you can make.

A retirement account is a specialized savings account that you add to while you’re working and withdraw from when you retire.

The sooner you open a retirement account, the longer your money has to mature and earn interest (and interest on that interest).

How much interest you earn depends on the type of retirement account you open. The two most common types of retirement accounts are 401(k)s and IRAs.

The main difference between a 401(k) and an IRA is that your employer opens a 401(k) on your behalf but you open an IRA yourself. Some employers will match your 401(k) contributions up to a certain percentage each year. 401(k)s are common for full-time employees on payroll and IRAs are more common among self-employed folks.

If your employer doesn’t offer 401(k) options, you can open an IRA yourself pretty easily.

So after you open an account, now what? Your bank can manage your retirement accounts for you or you can hire a third-party advisor to take over.

There are a lot of ways to go about getting help managing and optimizing your retirement accounts, but one of the best options for beginners is a robo-advisor.

A robo-advisor is an automated platform that uses an algorithm to help advise your investments. Blooom and Betterment are two of our favorites.

Related: How To Figure Out What Retirement Account To Open First

Blooom

Like other “robo-advisers,” blooom uses AI to optimize your retirement accounts.

To get started, you give blooom information about how much risk you’re willing to take with your investments and when you hope to retire. Maybe retirement is the last thing on your mind now that you’ve started a new job, but it shouldn’t be.

With blooom, there’s no pressure to know what you’re doing with your retirement accounts. The platform will make recommendations to make your 401(k) or IRA more profitable, rebalance your investments, and save more by avoiding hidden fees. They’ll even suggest an investment strategy for you and help you set goals.

Blooom can help manage both employee-sponsored 401(k)s and Roth IRAs at an incredibly low rate.

Start investing with blooom or read our blooom review.

Betterment

Betterment is another great choice. This robo-advisor can help you pick the right retirement accounts for your needs from a list of options. If your go-to retirement account is an IRA, Betterment can help you choose between traditional IRAs, Roth IRAs, and SEP IRAs.

To get started, all you’ll need to do is answer a few questions, and Betterment will build and manage an investment portfolio for you that aligns with your retirement goals. Then, they’ll handle rebalancing and managing your investments too according to your goals. Plus, Betterment offers tax-smart tools to help ensure your investments are always working efficiently.

Start investing with Betterment or read our Betterment review.

6. Sign Up for Health Insurance

Most medium- to large-sized employers offer health insurance and automatically deduct your premiums from your paycheck. Sometimes your company’s health insurance is optional and sometimes it’s required. Usually, you can save when you get health insurance through your work because employers can negotiate better benefits and premiums from providers.

Once you opt in, you’ll receive a benefits package detailing everything your insurance covers. Take the time to read through this carefully because understanding the benefits and perks of your plan can seriously pay off.

For example, one common perk of employer-sponsored health insurance is free or subsidized gym memberships, which can save you hundreds annually. You might also be able to save on everyday health items you buy anyway.

Choosing Health Insurance

If your employer doesn’t offer health insurance benefits, you’ll probably want to get some health insurance on your own to protect yourself from medical debt. Policygenius can help you choose the right provider for you.

Policygenius aggregates insurance quotes for any type of insurance you may need, ranging from auto insurance to life insurance to pet insurance. Basically, it does the hard work of comparison shopping for you.

The site saves you time and money by showing you only the best health insurance offers based on your answers to a few basic questions about what you’re looking for. Your privacy is protected and your personal details are not shared with any companies until you sign up.

Get insurance through Policygenius or read our Policygenius review.

Related: How To Pick a Health Insurance Plan

Summary

Becoming happy and well-off isn’t a matter of making money, but managing it. Making these six smart money moves when you get your first job shouldn’t take you more than a few hours and a few hundred bucks, and will accelerate you on your path to financial freedom.

Focus on doing these things – and doing them right – soon after you get that first paycheck.

Apache is functioning normally

July 13, 2023 by Brett Tams

If you’re curious about investing but have yet to start, you’re not alone. Taking the plunge may be the hardest part.

The world of investing is broad, and at times, it can feel complicated. As much as you may read and research, it’s natural to end up with unanswered questions about investing.

For answers, you can scour the internet for articles, but it can be hard to know where to go and whom to trust. That’s where a trusted financial advisor comes in.

Getting Started With Investing

To begin your investment journey, you need to understand basic information about the process. That can help you feel secure and comfortable enough to take the first concrete step.

For instance, you’re probably wondering about such things as, how much money do I need to invest? And what basic investments are right for me?” Read on to learn the answers to these investing questions and more.

6 Investing Questions to Ask Yourself

As you begin your investment journey, the following 6 questions to ask about investing can help you figure out how much to invest as well as investment options you may want to look into.

1. What’s a Good Amount of Money to Start Investing?

Great news: Investing in your future is no longer an activity reserved for the wealthy. You can get started easily with active investing, even without much in your pocket.

When you’re an investor starting with a small amount, say $10 or $100, it may be a good idea to look for banks or online stock trading platforms that offer free accounts, no account and investment minimums, and no trading costs. SoFi Invest® is one such option.

By starting early, and choosing certain types of investment or savings accounts, such as money market accounts, high-yield savings accounts, and CDs, you may be able to take advantage of the power of compounding. Compound interest is the phenomenon of earning interest on your interest. Essentially, the way it works is that the interest you earn is added to the principal balance in your account, and the new higher amount earns even more.

So, if you invested $1,000 in a money market account and earned $20 in interest, your principal balance becomes $1,020, and that new higher amount earns even more interest. Compound interest may help your money grow.

That said, it may be worth setting up a secure emergency fund before you start investing. An emergency fund is often held in cash separate from your checking account, preferably in an accessible, FDIC-insured savings account.

It’s recommended to save between three to six month’s worth of expenses before investing. (One exception? Take advantage of your company’s 401(k) match, if you have one.)

2. I Only have $30 In My Bank Account — Can I Invest?

First, do you have an emergency fund?

Falling within $30 of a zero-dollar bank account at the end of the month may mean there’s not enough extra for unexpected emergencies and incidentals.

What happens if you get hit with an unforeseen medical bill? Or your car breaks down? It’s helpful to have a cash cushion to weather any storms — and avoid going into credit card debt to cover unexpected costs.

You might consider spending some time building up your cash reserves. As mentioned above, three months of expenses is a good start. But you may want to increase this amount to six months or more.

And once you’ve secured a minimum of three months’ expenses in an emergency fund, it may be time to consider your next money moves.

A great next step is to determine if your employer offers a 401(k) match. Even if you’re only able to invest 1% of your salary, your employer may match with an additional 1% — an immediate 100% return on your investment.

Don’t have a 401(k)? In that case, it may be wise to avoid wasting precious resources on the fees and costs of investing when you’re starting with small amounts, like $30. Instead, work on that emergency fund.

3. What Are My Investment Options With $10,000?

With that amount of money, it can be wise to consider a diversified investment strategy.

Diversification is the practice of allocating money to many different investment types. Big picture, this means investing in multiple different asset classes like stocks, bonds, cash, and real estate. Next, an investor might consider diversifying within each category. With stocks, investors might consider companies within different industries and countries of origin.

One way to diversify is with a portfolio of low-cost index funds, whether index mutual funds or exchange-traded funds (ETFs). For example, you could buy an S&P 500 index fund that invests in 500 leading companies in the United States across many industries. This way, you may eliminate the risk of investing in only one company or in one industry.

Once you’ve established a diversified strategy with the majority of your funds, you might consider buying a few individual stocks. Bear in mind that stock-picking is hard work and requires hours of research — and a ton of luck. Therefore, you may not want to use more than $500 (5% of your $10,000) on individual stocks.

4. Are ETFs or Mutual Funds Better For Beginner Investors?

ETFs vs. mutual funds are similar in that they each bundle together some other type of investment, such as stocks are bonds.

They also have some important differences. ETFs trade throughout the day, like a stock. Mutual funds trade once per day.

Here’s an important question: What is the strategy being used to invest within the fund? Funds, both mutual funds and ETFs, come in two varieties: actively managed and index. (Currently, many ETFs are index, though there are actively-managed ETFs.)

An actively-managed fund typically has higher costs, while an index fund aims to invest in the market using a passive strategy, usually at a low cost. (Not sure of the cost? Look for a fund’s annual fee, called an expense ratio.)

They’re called index funds because they track an index that aims to measure market performance. For example, the S&P 500 is an index designed for the sole purpose of tracking U.S. stock market performance.

But, it is possible to buy an index fund that mimics the S&P 500 — and this can be done via either an ETF or an index mutual fund.

Considering that it’s possible to buy ETFs and index mutual funds that accomplish the same exact thing, you may want to consider the following: 1) Which do you have access to and 2) Which option is lower-cost?

For example, if you only have access to index mutual funds in your 401(k), that may be the direction to go in.

Get up to $1,000 in stock when you fund a new account.**

Access stock trading, options, auto investing, IRAs, and more. Get started in just a few minutes.

**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.

5. Should I Open a Traditional IRA or a 401(k)?

If your employer offers a 401(k) and contributes matching funds, it likely makes sense to join the plan. A 401(k) allows you to make contributions that may reduce your taxable income. You can have the contributions automatically deducted from your paycheck, which makes it easy. And if you leave your job, you can roll over the IRA to another plan.

In addition to your 401(k), you can absolutely consider opening another investment account like a traditional IRA.

However, as an active participant in your 401(k), your ability to contribute to a traditional, tax-deductible IRA depends on your income level. If you are already covered by a workplace retirement plan, the IRS allows you to deduct the full amount ($6,500) only if you earn less than $73,000 as a single person and $116,000 if you file taxes jointly.

You might have better luck with a Roth IRA, which has different taxation and rules for use than a Traditional IRA. Unlike a 401(k) and Traditional IRA, Roth IRA contributions are not tax-deductible.

Although you don’t get a tax break now, you won’t pay taxes on it when you pull the money out in retirement. You can contribute the full amount to a Roth IRA if you earn less than $138,000 as a single filer or $218,000 for joint filers.

If neither of these options work, you can always open up a brokerage account with an online trading platform. Just because these accounts do not have “special” tax treatment like retirement-specific accounts does not mean that they cannot be used to save and invest for the long term. You’ve got lots of options.

6. Do I Need a Financial Advisor?

A financial advisor can help you create a financial plan for your future while also meeting your current obligations, like your mortgage and bills. If you’re worried about making a mistake with your money, and you think using a financial advisor would make you feel more confident about investing, getting financial advice may be worth it for you.

Financial advisors do charge fees. They may charge you a flat fee, or they may make commissions on investments they suggest to you. It’s important to find out what their fees are and how the fee process is structured.

If you decide to enlist the help of a financial advisor, proceed carefully to make sure you find the right professional to work with.

Automated Investing

Another option you may want to consider is a robo advisor or automated investing. This is an algorithm-driven digital platform that provides basic financial guidance and portfolio options based on such factors as your goals and risk tolerance.

Because most automated portfolios are built with low-cost index or exchange-traded funds (ETFs), these services are considered efficient and low cost compared with using a human advisor.

Robo portfolios often involve an annual fee, perhaps 0.25% to 1% of the account balance.

Financial Planning With SoFi

Ready to invest in your goals? It’s easy to get started when you open an Active Invest account with SoFi Invest. You can invest in stocks, exchange-traded funds (ETFs), and more. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).

Invest with as little as $5 with a SoFi Active Investing account.

FAQ

What are good questions to ask about investing?

As a beginning investor, it’s important to ask some good basic questions, including: How much can I afford to invest, how much risk am I comfortable taking, and what types of investments are right for me? You’ll also want to consider your goals (for instance, are you investing for retirement), your age, and how long you plan to invest your money.

What are the benefits of investing?

Investing can help you put your money to work for you and potentially make it grow so you can reach your financial goals. Investing can be a way to save for retirement, build wealth, and outpace inflation. In addition, some investments, like 401(k)s and IRAs, can also help you save on taxes.

How do beginners learn to invest?

One good way for beginners to learn to invest is to open a 401(k) if their employer offers one, especially if the employer matches a portion of their contributions. With a 401(k), you’ll choose investment options based on what your employer offers. This can help you learn the basics, such as figuring out your risk tolerance and what types of funds are right for you, and diversifying your investments so that you have a mix of different assets, such as stocks and bonds.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

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.

SoFi Invest®
The information provided is not meant to provide investment or financial advice. Also, past performance is no guarantee of future results.
Investment decisions should be based on an individual’s specific financial needs, goals, and risk profile. SoFi can’t guarantee future financial performance. Advisory services offered through SoFi Wealth, LLC. SoFi Securities, LLC, member FINRA / SIPC . SoFi Invest refers to the three investment and trading platforms operated by Social Finance, Inc. and its affiliates (described below). Individual customer accounts may be subject to the terms applicable to one or more of the platforms below.
1) Automated Investing—The Automated Investing platform is owned by SoFi Wealth LLC, an SEC registered investment advisor (“Sofi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC, an affiliated SEC registered broker dealer and member FINRA/SIPC, (“Sofi Securities).

2) Active Investing—The Active Investing platform is owned by SoFi Securities LLC. Clearing and custody of all securities are provided by APEX Clearing Corporation.

3) Cryptocurrency is offered by SoFi Digital Assets, LLC, a FinCEN registered Money Service Business.

For additional disclosures related to the SoFi Invest platforms described above, including state licensure of Sofi Digital Assets, LLC, please visit www.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. Information related to lending products contained herein should not be construed as an offer or prequalification for any loan product offered by SoFi Bank, N.A.

SOIN1122023

Source: sofi.com

Apache is functioning normally

June 22, 2023 by Brett Tams

Our rating

Marcus Online Savings

Monthly Fee: $0
Minimum Balance: $0
Account Yield: 4.15% APY
Deposit Insurance: Yes, up to $250,000

.kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-table-of-content-wrappadding-top:23px;padding-right:23px;padding-bottom:23px;padding-left:23px;background-color:#f9fafa;border-color:#cacaca;border-top-width:1px;border-right-width:1px;border-bottom-width:1px;border-left-width:1px;.kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-table-of-contents-title-wrappadding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;.kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-table-of-contents-titlefont-size:14px;line-height:18px;letter-spacing:0.06px;font-family:-apple-system,BlinkMacSystemFont,”Segoe UI”,Roboto,Oxygen-Sans,Ubuntu,Cantarell,”Helvetica Neue”,sans-serif, “Apple Color Emoji”, “Segoe UI Emoji”, “Segoe UI Symbol”;font-weight:700;font-style:normal;text-transform:uppercase;.kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-table-of-content-wrap .kb-table-of-content-listcolor:#001c29;font-size:14px;line-height:21px;letter-spacing:0.01px;font-family:-apple-system,BlinkMacSystemFont,”Segoe UI”,Roboto,Oxygen-Sans,Ubuntu,Cantarell,”Helvetica Neue”,sans-serif, “Apple Color Emoji”, “Segoe UI Emoji”, “Segoe UI Symbol”;font-weight:inherit;font-style:normal;margin-top:var(–global-kb-spacing-sm, 1.5rem);margin-right:0px;margin-bottom:0px;margin-left:0px;.kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-table-of-content-wrap .kb-table-of-content-list .kb-table-of-contents__entry:hovercolor:#16928d;.kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-table-of-content-list limargin-bottom:7px;.kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-table-of-content-list li .kb-table-of-contents-list-submargin-top:7px;.kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-toggle-icon-style-basiccircle .kb-table-of-contents-icon-trigger:after, .kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-toggle-icon-style-basiccircle .kb-table-of-contents-icon-trigger:before, .kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-toggle-icon-style-arrowcircle .kb-table-of-contents-icon-trigger:after, .kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-toggle-icon-style-arrowcircle .kb-table-of-contents-icon-trigger:before, .kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-toggle-icon-style-xclosecircle .kb-table-of-contents-icon-trigger:after, .kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-toggle-icon-style-xclosecircle .kb-table-of-contents-icon-trigger:beforebackground-color:#f9fafa;

The most important feature of a high-yield savings account is its interest rate. But it’s nice when your account helps you manage your money too — or at least doesn’t get in the way of that.

The Marcus Online Savings account does both. It pays a yield that’s well above the national average for savings accounts (both online and at traditional banks) while offering some basic budgeting and money management tools, including automated savings. It also has an unusually large same-day transfer allowance, which could come in handy once in a while.

But Marcus Online Savings isn’t perfect, so take a few minutes to learn about its capabilities and shortcomings before opening one.

What Is the Marcus Online Savings Account?

Backed by Goldman Sachs, one of the biggest banks in the United States, the Marcus Online Savings account is a high-yield savings account that yields 4.15% APY on all balances. It has no monthly or annual maintenance fee and no minimum balance to open or earn interest.

Marcus Online Savings doesn’t come with an ATM card or person-to-person transfer capabilities, but it does have an unusually large same-day transfer limit ($100,000) and unusually robust money management features built into its online and mobile account dashboards. It complements a broader lineup of Marcus CDs and money market accounts.

What Sets the Marcus Online Savings Account Apart?

The Marcus Online Savings account has several standout features:

Excellent yield on all balances. Marcus Online Savings yields 4.15% APY on all balances, with no minimum required to earn interest at the headline rate.
No fees or minimums. This account has no minimum opening balance and no ongoing maintenance fees.
Useful tools for savers. Marcus offers useful money management tools, including automated savings, a built-in savings calculator that shows how much your cash could be worth at specific points in the future, and a comparison tool that shows how much you can earn with Marcus compared with other banks.
24/7 customer service. Marcus is one of the few banks of any size that still has 24/7 customer support by phone.

Key Features of the Marcus Online Savings Account

All things considered, Marcus Online Savings is a straightforward savings account from a straightforward online bank. But knowledge is power, so dig a bit deeper into its core features before deciding to apply.

Account Yield

Marcus Online Savings yields 4.15% APY on your entire balance, with no minimum required to earn interest.

Account Fees & Minimums

Marcus Online Savings has no monthly or annual maintenance fee. There’s no minimum balance to open or maintain an account either.

Money Management Tools

Marcus Online Savings has a handy savings automation tool that lets you deposit a set amount on a recurring basis — weekly, monthly, or another frequency. The mobile app and online dashboard also have useful savings calculators that show both how much you can earn on your balance over time and how that compares with potential earnings at another bank.

Deposit Options & Transfer Limits

You can deposit cash into your Marcus Online Savings account via:

Marcus Online Savings doesn’t have an ATM card or accept mobile check deposits. However, you can transfer up to $100,000 in or out of the account with same-day turnaround — just initiate the transfer by 12pm Eastern and your money moves by 5pm Eastern the same day.

Mobile Features

Marcus has a comprehensive mobile app that can do just about anything the online dashboard can. You can schedule online bill payments and external transfers on your phone, and link your account with third-party money management apps like Quickbooks.

Deposit Insurance

Through Goldman Sachs, Marcus Online Savings balances are FDIC-insured up to $250,000. In the unlikely event that Goldman Sachs fails, you won’t lose any funds below that amount.

Pros & Cons

Marcus Online Savings has more positive attributes than negative ones. In fact, it’s difficult to find too much wrong with this account.

Excellent yields on all balances
No maintenance fees
Same-day transfers up to $100,000
24/7 customer support by phone

No mobile check deposit
No ATM access

Pros

Marcus Online Savings is a well-rounded savings account with a mix of features that appeal to would-be users across the income and wealth spectrum.

Well above-average yield. This account has an excellent yield (currently 4.15% APY on all balances) that puts it comfortably ahead of most competing banks.
No monthly maintenance fee. Marcus charges no monthly or annual maintenance fees on this account, so your savings won’t erode over time unless you withdraw.
No minimum balance. There’s no minimum balance to open (or keep open) this account. There’s also no minimum balance to earn the full advertised interest rate.
Same-day transfers up to $100,000. You can transfer up to $100,000 into or out of your account with same-day delivery. That’s an unusually high limit, especially for external transfers, which usually take one to three business days to clear.
Helpful budgeting and money management tools. Marcus offers some basic but helpful budgeting and money management tools, including set-it-and-forget-it savings automation and customizable savings calculators.
24/7 customer support by phone. You can reach a Marcus customer service rep by phone at any time of day (or night). You’re unlikely to take advantage of Marcus’ customer service very often because the account is so simple, but it’s nice to know it’s there.

Cons

Marcus Online Savings has some notable gaps in its feature lineup that could impact your ability to access or top up your balance.

No mobile check deposit. Marcus Online Savings has no mobile check deposit feature. That’s a notable gap in its menu of deposit options, and one that’s increasingly rare among well-funded online banks.
No ATM access. Marcus Online Savings doesn’t come with an ATM card, so you can’t directly withdraw cash from your account.

How the Marcus Online Savings Account Stacks Up

Marcus Online Savings is among the best online savings accounts around, but it’s not the only one you should consider if you’re looking for a new home for your long-term savings. Before you apply, see how Marcus compares to another popular option: Upgrade Premier Savings.

	Marcus Online Savings	Upgrade Premier Savings
Maximum Yield	4.15% APY	4.81% APY
Minimum Yield	4.15% APY	None
Minimum Balance	$0	$0
Minimum Interest Balance	$0	$1,000
Maintenance Fee	$0	$0

With no minimum balance to open the account or earn interest, Marcus Online Savings is ideal for if you’re just beginning your savings journey. Upgrade Premier Savings is a better fit if you can clear the $1,000 minimum balance to earn interest, as its yield is significantly higher.

Final Word

The Marcus Online Savings account is an excellent online savings account because it has a yield well above the national average, no maintenance fees, and no minimums of any kind. Sometimes, simpler is better.

Not that Marcus Online Savings is perfect. The ability to deposit checks remotely rather than mailing them and an ATM card to directly withdraw cash from the account would both be nice. You can also find higher savings yields if you know where to look. But all in all, there’s more to like than dislike about this account.

Editorial Note:
The editorial content on this page is not provided by any bank, credit card issuer, airline, or hotel chain, and has not been reviewed, approved, or otherwise endorsed by any of these entities. Opinions expressed here are the author’s alone, not those of the bank, credit card issuer, airline, or hotel chain, and have not been reviewed, approved, or otherwise endorsed by any of these entities.

The Verdict

Our rating

Marcus Online Savings

Marcus Online Savings has an excellent yield relative to other banks and no minimums or fees to get in the way of growing your savings. It’s customer-friendly too, thanks to a generous same-day transfer allowance and 24/7 service. But it has some missing features that make it less flexible than some users might like.

Brian Martucci writes about credit cards, banking, insurance, travel, and more. When he’s not investigating time- and money-saving strategies for Money Crashers readers, you can find him exploring his favorite trails or sampling a new cuisine. Reach him on Twitter @Brian_Martucci.

Source: moneycrashers.com

Apache is functioning normally

June 22, 2023 by Brett Tams

Our rating

Marcus Online Savings

Monthly Fee: $0
Minimum Balance: $0
Account Yield: 4.15% APY
Deposit Insurance: Yes, up to $250,000

.kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-table-of-content-wrappadding-top:23px;padding-right:23px;padding-bottom:23px;padding-left:23px;background-color:#f9fafa;border-color:#cacaca;border-top-width:1px;border-right-width:1px;border-bottom-width:1px;border-left-width:1px;.kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-table-of-contents-title-wrappadding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;.kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-table-of-contents-titlefont-size:14px;line-height:18px;letter-spacing:0.06px;font-family:-apple-system,BlinkMacSystemFont,”Segoe UI”,Roboto,Oxygen-Sans,Ubuntu,Cantarell,”Helvetica Neue”,sans-serif, “Apple Color Emoji”, “Segoe UI Emoji”, “Segoe UI Symbol”;font-weight:700;font-style:normal;text-transform:uppercase;.kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-table-of-content-wrap .kb-table-of-content-listcolor:#001c29;font-size:14px;line-height:21px;letter-spacing:0.01px;font-family:-apple-system,BlinkMacSystemFont,”Segoe UI”,Roboto,Oxygen-Sans,Ubuntu,Cantarell,”Helvetica Neue”,sans-serif, “Apple Color Emoji”, “Segoe UI Emoji”, “Segoe UI Symbol”;font-weight:inherit;font-style:normal;margin-top:var(–global-kb-spacing-sm, 1.5rem);margin-right:0px;margin-bottom:0px;margin-left:0px;.kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-table-of-content-wrap .kb-table-of-content-list .kb-table-of-contents__entry:hovercolor:#16928d;.kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-table-of-content-list limargin-bottom:7px;.kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-table-of-content-list li .kb-table-of-contents-list-submargin-top:7px;.kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-toggle-icon-style-basiccircle .kb-table-of-contents-icon-trigger:after, .kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-toggle-icon-style-basiccircle .kb-table-of-contents-icon-trigger:before, .kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-toggle-icon-style-arrowcircle .kb-table-of-contents-icon-trigger:after, .kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-toggle-icon-style-arrowcircle .kb-table-of-contents-icon-trigger:before, .kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-toggle-icon-style-xclosecircle .kb-table-of-contents-icon-trigger:after, .kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-toggle-icon-style-xclosecircle .kb-table-of-contents-icon-trigger:beforebackground-color:#f9fafa;

The most important feature of a high-yield savings account is its interest rate. But it’s nice when your account helps you manage your money too — or at least doesn’t get in the way of that.

The Marcus Online Savings account does both. It pays a yield that’s well above the national average for savings accounts (both online and at traditional banks) while offering some basic budgeting and money management tools, including automated savings. It also has an unusually large same-day transfer allowance, which could come in handy once in a while.

But Marcus Online Savings isn’t perfect, so take a few minutes to learn about its capabilities and shortcomings before opening one.

What Is the Marcus Online Savings Account?

Backed by Goldman Sachs, one of the biggest banks in the United States, the Marcus Online Savings account is a high-yield savings account that yields 4.15% APY on all balances. It has no monthly or annual maintenance fee and no minimum balance to open or earn interest.

Marcus Online Savings doesn’t come with an ATM card or person-to-person transfer capabilities, but it does have an unusually large same-day transfer limit ($100,000) and unusually robust money management features built into its online and mobile account dashboards. It complements a broader lineup of Marcus CDs and money market accounts.

What Sets the Marcus Online Savings Account Apart?

The Marcus Online Savings account has several standout features:

Excellent yield on all balances. Marcus Online Savings yields 4.15% APY on all balances, with no minimum required to earn interest at the headline rate.
No fees or minimums. This account has no minimum opening balance and no ongoing maintenance fees.
Useful tools for savers. Marcus offers useful money management tools, including automated savings, a built-in savings calculator that shows how much your cash could be worth at specific points in the future, and a comparison tool that shows how much you can earn with Marcus compared with other banks.
24/7 customer service. Marcus is one of the few banks of any size that still has 24/7 customer support by phone.

Key Features of the Marcus Online Savings Account

All things considered, Marcus Online Savings is a straightforward savings account from a straightforward online bank. But knowledge is power, so dig a bit deeper into its core features before deciding to apply.

Account Yield

Marcus Online Savings yields 4.15% APY on your entire balance, with no minimum required to earn interest.

Account Fees & Minimums

Marcus Online Savings has no monthly or annual maintenance fee. There’s no minimum balance to open or maintain an account either.

Money Management Tools

Marcus Online Savings has a handy savings automation tool that lets you deposit a set amount on a recurring basis — weekly, monthly, or another frequency. The mobile app and online dashboard also have useful savings calculators that show both how much you can earn on your balance over time and how that compares with potential earnings at another bank.

Deposit Options & Transfer Limits

You can deposit cash into your Marcus Online Savings account via:

Marcus Online Savings doesn’t have an ATM card or accept mobile check deposits. However, you can transfer up to $100,000 in or out of the account with same-day turnaround — just initiate the transfer by 12pm Eastern and your money moves by 5pm Eastern the same day.

Mobile Features

Marcus has a comprehensive mobile app that can do just about anything the online dashboard can. You can schedule online bill payments and external transfers on your phone, and link your account with third-party money management apps like Quickbooks.

Deposit Insurance

Through Goldman Sachs, Marcus Online Savings balances are FDIC-insured up to $250,000. In the unlikely event that Goldman Sachs fails, you won’t lose any funds below that amount.

Pros & Cons

Marcus Online Savings has more positive attributes than negative ones. In fact, it’s difficult to find too much wrong with this account.

Excellent yields on all balances
No maintenance fees
Same-day transfers up to $100,000
24/7 customer support by phone

No mobile check deposit
No ATM access

Pros

Marcus Online Savings is a well-rounded savings account with a mix of features that appeal to would-be users across the income and wealth spectrum.

Well above-average yield. This account has an excellent yield (currently 4.15% APY on all balances) that puts it comfortably ahead of most competing banks.
No monthly maintenance fee. Marcus charges no monthly or annual maintenance fees on this account, so your savings won’t erode over time unless you withdraw.
No minimum balance. There’s no minimum balance to open (or keep open) this account. There’s also no minimum balance to earn the full advertised interest rate.
Same-day transfers up to $100,000. You can transfer up to $100,000 into or out of your account with same-day delivery. That’s an unusually high limit, especially for external transfers, which usually take one to three business days to clear.
Helpful budgeting and money management tools. Marcus offers some basic but helpful budgeting and money management tools, including set-it-and-forget-it savings automation and customizable savings calculators.
24/7 customer support by phone. You can reach a Marcus customer service rep by phone at any time of day (or night). You’re unlikely to take advantage of Marcus’ customer service very often because the account is so simple, but it’s nice to know it’s there.

Cons

Marcus Online Savings has some notable gaps in its feature lineup that could impact your ability to access or top up your balance.

No mobile check deposit. Marcus Online Savings has no mobile check deposit feature. That’s a notable gap in its menu of deposit options, and one that’s increasingly rare among well-funded online banks.
No ATM access. Marcus Online Savings doesn’t come with an ATM card, so you can’t directly withdraw cash from your account.

How the Marcus Online Savings Account Stacks Up

Marcus Online Savings is among the best online savings accounts around, but it’s not the only one you should consider if you’re looking for a new home for your long-term savings. Before you apply, see how Marcus compares to another popular option: Upgrade Premier Savings.

	Marcus Online Savings	Upgrade Premier Savings
Maximum Yield	4.15% APY	4.81% APY
Minimum Yield	4.15% APY	None
Minimum Balance	$0	$0
Minimum Interest Balance	$0	$1,000
Maintenance Fee	$0	$0

With no minimum balance to open the account or earn interest, Marcus Online Savings is ideal for if you’re just beginning your savings journey. Upgrade Premier Savings is a better fit if you can clear the $1,000 minimum balance to earn interest, as its yield is significantly higher.

Final Word

The Marcus Online Savings account is an excellent online savings account because it has a yield well above the national average, no maintenance fees, and no minimums of any kind. Sometimes, simpler is better.

Not that Marcus Online Savings is perfect. The ability to deposit checks remotely rather than mailing them and an ATM card to directly withdraw cash from the account would both be nice. You can also find higher savings yields if you know where to look. But all in all, there’s more to like than dislike about this account.

Editorial Note:
The editorial content on this page is not provided by any bank, credit card issuer, airline, or hotel chain, and has not been reviewed, approved, or otherwise endorsed by any of these entities. Opinions expressed here are the author’s alone, not those of the bank, credit card issuer, airline, or hotel chain, and have not been reviewed, approved, or otherwise endorsed by any of these entities.

The Verdict

Our rating

Marcus Online Savings

Marcus Online Savings has an excellent yield relative to other banks and no minimums or fees to get in the way of growing your savings. It’s customer-friendly too, thanks to a generous same-day transfer allowance and 24/7 service. But it has some missing features that make it less flexible than some users might like.

Brian Martucci writes about credit cards, banking, insurance, travel, and more. When he’s not investigating time- and money-saving strategies for Money Crashers readers, you can find him exploring his favorite trails or sampling a new cuisine. Reach him on Twitter @Brian_Martucci.

Source: moneycrashers.com

Apache is functioning normally

June 11, 2023 by Brett Tams

When it comes to smart money decisions, understanding a ledger balance is key. A ledger balance is an important tool for small business owners and investors that helps track their financial health in real-time. It’s the foundation of any successful budgeting or investing strategy, but how exactly do you calculate your own? In this article, we’ll discuss what a ledger balance is, why it matters and how to calculate yours accurately – so you can make better-informed money decisions!

What’s Ahead:

What is a Ledger Balance?

A ledger balance is a record of all the financial transactions that have taken place in an account. It is used to track and monitor the money coming into and out of an account, such as income, expenses, investments, loans, etc. You can use the ledger balance to determine how much money is available for spending or investing at any given time.

Definition of a Ledger Balance

A ledger balance summarizes all financial activity within an account over a certain period. It shows the total amount owed (debits) versus the total amount received (credits).

Components of a Ledger Balance

The components of a ledger balance include debits and credits from various sources, such as deposits, withdrawals, transfers between accounts, or payments for goods/services. Debits are amounts subtracted from your account, while credits are amounts added.

For example, if you make two payments on your credit card bill totaling $200 each month, your debit would be $400 ($200 x 2). If you also deposit $500 into your checking account during this same period, your credit would be $500 ($500 x 1). Your net ledger balance after these transactions would be +$100 ($500 – 400 = +$100). This means that you now have an extra $100 in your checking account compared to before these transactions took place.

A ledger balance is integral to understanding your financial situation and making smart money decisions. In the next section, we’ll discuss using a ledger balance to help you make informed decisions about your finances.

Benefits of Maintaining a Ledger Balance

Maintaining a ledger balance is essential to the financial organization and record keeping. It can help you keep track of your finances, save time when preparing taxes, and ensure accuracy in all your financial transactions.

Improved Financial Organization

A ledger balance helps you stay organized by tracking all the money in and out of your accounts. You can easily view where each dollar goes and how much you have left to spend or save for future goals. This will give you a better understanding of your overall financial picture so that you can make informed decisions about spending, saving, investing, etc.

Accurate Record Keeping

By maintaining a ledger balance, you can accurately document every transaction made from each account – income or expenses – making it easier to audit if needed. This also allows for more efficient tax preparation since everything is already documented in one place instead of searching multiple documents for the same information.

Easier Tax Preparation

When filing taxes with accurate records on hand, such as those found in a ledger balance, it eliminates any guesswork or potential errors that could occur while manually entering data into forms or spreadsheets used during tax season. This information readily available saves time when filing taxes because there is no need to go back and look up specific details regarding certain transactions throughout the year; they are already recorded within the ledger balance!

By maintaining a detailed ledger balance throughout the year, individuals and small business owners can benefit from improved financial organization, accurate record-keeping practices, and easier tax preparation processes come April 15th. These benefits will help ensure that all finances are properly tracked and documented for future reference and provide an efficient way to file taxes without any guesswork or potential errors.

Maintaining a ledger balance is essential to keeping your finances organized and up-to-date. In the next section, we’ll discuss setting up a ledger balance and tracking your transactions.

The Gist: Maintaining a ledger balance is essential to the financial organization and record keeping. It can help you stay organized, accurately document transactions, and simplify tax preparation: • Improved Financial Organization • Accurate Record Keeping • Easier Tax Preparation. A detailed ledger balance throughout the year provides individuals and small business owners with efficient ways to track finances, ensure accuracy in all their financial transactions, and save time when filing taxes.

How to Calculate Your Ledger Balance

It helps you stay organized and keep accurate records, making tax preparation easier. Knowing how to calculate your ledger balance is essential for small business owners and investors. Here’s what you need to know about calculating your ledger balance:

Step 1: Gather All Relevant Financial Documents

The first step in calculating your ledger balance is gathering all the relevant financial documents related to the account or accounts you want to track. This includes bank statements, credit card bills, investment portfolios, loan agreements, etc. Make sure all these documents are up-to-date so that you have an accurate picture of where you stand financially.

Step 2: Add Up All Debits and Credits

Once you have gathered all the necessary documents, it’s time to add up all debits and credits associated with each account or transaction. A debit is any money taken out of an account, while a credit is any money put into an account (including interest earned). When adding debits and credits for each transaction or account, be sure to include fees and taxes paid on investments, if applicable.

Step 3: Subtract Debits from Credits To Get The Final Amount

After adding debits and credits for each transaction or account, it’s time to subtract them from one another to get the final amount owed or due on each item/account/transaction listed in Step 1 above. For example, if there were $500 worth of debits associated with a particular bank statement, subtracting this number from $1000 worth of credits would give us a total remaining balance due on that particular statement of $500 ($1000 -$500 = $500). Once we do this for every document we gathered in Step 1, our overall ledger balance should be accurately calculated!

Knowing how to calculate your ledger balance can help ensure everything adds up correctly when it comes time to file taxes or make other financial decisions, such as investing in stocks and bonds. Keeping track of income versus expenses will also help small business owners budget accordingly, so they don’t overspend beyond their means.

Once you have gathered all your financial documents, added up the debits and credits, and subtracted them to get the final amount, you will be able to calculate your ledger balance. Next, we’ll look at how to use this information to make intelligent money decisions.

The Gist: Calculating your ledger balance is integral to managing finances. It helps you stay organized and make accurate records for tax preparation, budgeting, and investing decisions. Here are the following steps: 1. Gather all relevant financial documents 2. Add up all debits and credits 3. Subtract debits from credits to get the final amount owed or due

Tips for Maintaining an Accurate Ledger Balance

Maintaining an accurate ledger balance is essential for any individual or business to ensure their financial records are up-to-date and accurate. Here are some tips that can help you stay on top of your finances:

Keep Track of All Transactions Regularly

It’s essential to keep track of all incoming and outgoing transactions to understand where your money is going clearly. This includes recording deposits, withdrawals, transfers, bills paid, etc. Doing this regularly will help you stay organized and prevent errors from slipping through the cracks. Additionally, reviewing these transactions periodically ensures everything adds up correctly.

Double Check Your Math Before Finalizing Entries

When entering numbers into your ledger balance sheet or other financial documents, it’s always best practice to double-check your math before finalizing entries. Even if you think something looks correct at first glance – take the extra time to verify accuracy by running calculations twice just in case you made any mistakes. This will save you time and energy when reconciling accounts or preparing tax returns!

Utilize Automated Accounting Software When Possible

Technology has come a long way in recent years, making tracking finances more manageable! Utilizing automated accounting software such as QuickBooks or Xero can be extremely helpful when managing multiple accounts simultaneously, as they provide real-time updates with each transaction entered into them. Not only does this save time, but it also helps reduce the human error associated with manual entry processes – making it much more efficient overall!

Overall, maintaining an accurate ledger balance is key for anyone looking to manage their finances properly and efficiently over time – whether they’re a small business owner or simply trying to budget better personally. By following these simple tips outlined above (keeping track of all transactions regularly, double checking math, utilizing automated accounting software), individuals should be able to set themselves up for success in no time.

Maintaining an accurate ledger balance is essential for making sound financial decisions. With these tips, you can stay on top of your finances and make smart money moves.

The Gist: Maintaining an accurate ledger balance is essential for any individual or business to keep their financial records up-to-date and accurate. To do this, it’s vital to • Keep track of all transactions regularly • Double check math before finalizing entries • Utilize automated accounting software when possible By following these tips, individuals can set themselves up for success in managing their finances efficiently over time.

The Importance of a Ledger Balance for Small Business Owners and Investors

A ledger balance is integral to managing your finances, especially for small business owners and investors. A ledger balance is the total amount of money combined in all accounts. It’s calculated by subtracting all debits from credits to get the final amount. A clear understanding of your ledger balance can help you make better financial decisions and stay on top of your finances.

Why It Matters for Small Business Owners

For small business owners, having an accurate record of their ledger balance is essential to running their businesses efficiently and effectively. Knowing exactly how much money they have in each account helps them plan for budgeting, taxes, payroll, and other expenses. Additionally, keeping track of their ledgers allows them to quickly identify any discrepancies or errors so they can be addressed immediately before they become more significant problems.

Why It Matters for Investors

Investors also need to keep close tabs on their ledger balances because it gives them insight into how well their investments perform over time. By regularly monitoring changes in their ledgers, investors can determine if certain investments are worth continuing or if adjustments need to be made based on current market conditions or other factors that may affect returns on investment (ROI). This information can then be used as a guide when making future investing decisions.

Overall, a good understanding of one’s ledger balance is critical for small business owners and investors alike, as it provides valuable insights into where funds are coming from and going at any given moment in time. This ultimately leads to more informed decision-making about personal finance management strategies.

A clear understanding of your ledger balance is essential for small business owners and investors alike, as it allows them to make informed decisions about their financial future. Next, we’ll discuss why it matters for small business owners.

The Gist: A clear understanding of your ledger balance is essential for small business owners and investors. It allows them to keep track of all their accounts, quickly identify discrepancies or errors, monitor investments’ changes over time, and make more informed decisions regarding budgeting, taxes, payrolls, and other expenses. Key takeaways include: • Subtracting debits from credits to get the total amount • Monitoring ledgers regularly for any discrepancies or errors • Keeping track of investments’ performance over time • Using ledger information as a guide when making future investing decisions.

FAQs about What Is a Ledger Balance

Can we withdraw money from the ledger balance?

No, you cannot withdraw money from your ledger balance. Ledger balances are a record of the transactions that have occurred in an account and do not represent actual funds available for withdrawal. You must transfer funds to another account or use a payment method such as a debit card or check to access funds.

How long does the ledger balance take to be available?

The availability of a ledger balance depends on the financial institution you are using. Generally, most banks and credit unions will update your account information within 24 hours. However, if you have recently made a deposit or withdrawal from an ATM, it may take up to 3 business days for the transaction to be reflected in your ledger balance. Additionally, suppose you have recently transferred funds between accounts at different institutions. In that case, it could take up to 5 business days for the transfer to be completed and reflected in your ledger balance.

How do I make my ledger balance available?

The best way to make your ledger balance available is to use online accounting software such as QuickBooks or Xero. These programs allow you to easily track and monitor your financial transactions, giving you a real-time view of your current finances. Additionally, they provide helpful features like budgeting tools and automated reminders to help you stay on top of your money management goals. With these services, you’ll be able to quickly access and review your ledger balance whenever needed.

Can I transfer the ledger balance to the bank account?

Yes, you can transfer your ledger balance to a bank account. This is typically done through an online banking platform or app. It’s important to double-check the transaction details before confirming it, as mistakes may be costly and time-consuming to fix. Additionally, there may be fees associated with transferring money from one account to another, so understand those costs beforehand.

Conclusion

It allows you to track your financial activity and make informed decisions about where to invest or how much money to allocate for certain expenses. By understanding the basics of calculating and maintaining a ledger balance, you can ensure that your finances are in order and that you’re making smart money decisions. So take some time today to review your ledger balance and get on the path toward financial success!

Source: moneyunder30.com

Apache is functioning normally

June 6, 2023 by Brett Tams

Reaching financial independence is like the holy grail of financial goals. After all, the ability to no longer need to work for money to live on is incredibly enticing.

Just imagine what you could do with that newfound freedom!

But the path to financial independence (or FI for short) is usually not glamorous. It requires hard work and dedication to make steady progress towards your ultimate goal of FI. But there are some strategies that can help you achieve your goal of financial independence.

Let’s take a look at these expert tips from people who have actually reached FI, or are seriously dedicated to the path of achieving it. You might find a tip that helps to transform your financial trajectory.

What’s Ahead:

1. Identify your “FI number”

Financial independence happens once you have enough money saved and invested to never need to work another day in your life. Although you might decide to work at a job you love, there is great freedom in knowing that you’ll never have to work another day in your life.

A big part of the financial independence journey is determining just how much money you’ll actually need to make this dream a reality. That number is your FI number, the goal that you should strive for when you decide to seriously pursue FI.

Although there are a few different schools of thought about how to calculate your FI number, this general rule of thumb is a great place to start:

Your annual expenses x 25 = your FI number

Personally, I am at the beginning of my journey to FIRE (Financial independence/retire early). I’m only a small part of the way to achieving the FI number that I have in mind.

But having mine in mind has helped me stay motivated to save extra diligently. I highly recommend nailing down what your FI number is, too. You might be surprised by how much having a concrete goal in mind keeps you focused on the savings goal — at least that has helped me so far!

2. Pay down debts that stand in your way

Net worth is a big part of achieving financial independence. When you check out your net worth, the debts you have will drag this number down.

With that in mind, David Alyor, recommends paying off your debts as soon as possible. As a lawyer in the final stretches of his financial independence, he says,

“After almost a decade of post-secondary studies, paying off student debts was painful, but I stayed the course and paid as aggressively as I could to get rid of my debts as quickly as possible.”

Alyor says the key to his success with debt repayment was to make a written repayment plan. Additionally, he regularly checked in with his shrinking loan balances to stay motivated along the way. He expands,

“If you’re finding it tough to make as much progress as you’d like, it’s time to look for a side hustle to increase your income earning potential and drop your debt even faster.”

3. Avoid lifestyle inflation

Lifestyle inflation is easy to justify. After all, shouldn’t you take advantage of the best that your paycheck can buy as it increases? If you are trying to achieve financial independence, then saying no to lifestyle inflation is critical.

James Diel, CEO of Textel, achieved FI several years ago. Diel says:

“Saying no to keeping up with the Jones’ helped me stick to a moderate budget that included saving 30% of my monthly income toward retirement and avoiding unnecessary big purchases that get in the way of saving.”

He recommends putting this into practice by:

“making some smart money moves early on in your career and keeping your budget low without severely depriving yourself of the things you want helps you maximize your investment profits, so you can save less now and still end up with an ample nest egg.”

4. Prioritize savings

Saving for a big goal is easier said than done. This is especially true when life throws expenses your way.

But it is possible to boost your savings by making those savings a priority. Or in other words, making it a point to pay yourself first.

Minesh Patel, CEO of the Patel Firm, is so close to FI that he hopes to achieve this big goal within the year. But when he was just starting his journey to FI, he says,

“The most critical way I could save for financial freedom, even as a young graduate with a tight budget, was to pay myself first.”

Paying yourself first sounds like a great idea. But what does it actually look like in practice? For Patel, the journey began by automatically investing some of his earnings into retirement savings every month. With that, he knew that savings weren’t being compromised. Patel says:

“Somehow, being aggressive with savings up-front and seeing less in your checking account during the month makes you feel like you don’t have the money to spend frivolously.”

5. Spend on what matters to you

Kara Metcalf and her husband reached FI in their mid-thirties and left corporate jobs to RV full-time. One of her tips is to spend with purpose.

“Every dollar you spend is a dollar that you’ll never get back.”

She encourages those on the path to FI to consider every purchase as a choice to exchange time being FI in the future so that you can have that item now. She says:

“That perspective helped me adopt a minimalist lifestyle and reduced my consumerism greatly. I really didn’t need another pair of jeans when there was nothing wrong with all of the others in my closet.”

Before you make a purchase, make sure that the item is worth it to you. You’ll have to decide for yourself what is ‘worth it.’ But taking the time to think through your purchases could lead to a decrease in spending.

6. Boost your income

The savings you create must come from the difference between your spending and your investing. Unfortunately, frugality will only get you so far.

At some point, you may need to look at the other side of the equation and boost your income to increase your savings.

Sam Zelinka, the creator of Government Worker FI, is 86% of the way to his FI goal. For his family, increasing their income was a big part of working towards financial independence.

“We’ve primarily raised our income by earning promotions in our traditional job. At the same time, we both have some small side hustles that we have used to help pay off our mortgage more rapidly.”

7. Take care of yourself along the way

It is easy to let your determination to achieve FI push you beyond your limits. But pushing yourself too hard could lead to premature burnout.

Avner Brodsky achieved financial independence through entrepreneurship. He recommends taking the time to understand your limits and learning how to play within these limits. Brodsky says:

“Understanding your limitations and being okay with admitting weakness will only benefit you in your journey of learning. Taking care of your mental health is essential when working toward FI because if you are struggling, your work will struggle.”

Take whatever actions you need to take care of yourself along the way. Remember, it is absolutely okay to slow down on your journey. Don’t push yourself beyond a healthy limit.

8. Invest for the future

Adam Garcia, the founder of the Stock Dork, is well on his way to financial independence. His tip is to consider a smart investment strategy that goes beyond savings. Garcia says:

“The idea of financial independence can easily turn on its head if you follow it blindly. For most people, the most intuitive way to start is by scrimping and saving as much as they possibly can – some even manage to set aside half of their earnings every month!”

But simply saving won’t supercharge your path to financial independence. Garcia expands:

“If you want an efficient FI strategy, you need to complement your saving efforts with investment. In other words, for every penny you save, it’s good to invest another penny so that it could eventually turn into two pennies.”

For Garcia, this concept is what he calls:

“having your cake and nibbling at it, too. It’s only possible and viable if the cake is growing at a sufficient rate that your nibbling will never cause it to disappear.”

9. Don’t try to sprint to the finish line

Financial independence is a major money goal. In most cases, it will take years (or maybe even decades) to achieve.

Anthony from The Investor Handbook wants to remind us that:

“personal finance is not a sprint, it’s a marathon.”

When you are just getting started, the difference might not be noticeable. But over time, you’ll see real progress.

As you approach your journey to financial independence, Anthony recommends thinking about the journey like working out.

“A single session working on your abs won’t give you a flat stomach, but keep at it for ten years, and you’ll definitely be rocking that six-pack.”

Imagine where you could be in ten years by choosing to make progress towards your FI goals with every paycheck. The commitment to FI could transform your life through small efforts over time.

10. Focus on your own journey

Throughout every facet of our lives, it is easy to get caught up in comparisons. That holds true for personal finances, as well.

Kara Metcalf (waiting on link) recommends focusing on your own journey. She says:

“If you compare your life to your friends, family, or coworkers, you’ll usually feel deprived or lacking because you will be saving money rather than going on extravagant vacations, buying a new wardrobe each season, or eating out every day.”

For Kara, she also says that:

“In my 20s, I hated eating my packed lunch every day while my coworkers were going out to lunch. But in my 40s, those friends still get up before the sun rises every day to commute to full-time, oftentimes soul-sucking jobs. I wake up naturally (without an alarm) and spend my days exploring beautiful new places every day.”

Remember that everyone’s journey is different. Make it a priority to focus on your own goals, and stop comparing your life to others.

Summary

The path to financial independence will look different for everyone. As you navigate the journey, tailor your spending patterns to strike a balance between your current needs and your future desires.

What steps are you taking to achieve financial independence? Let us know in the comments!

Apache is functioning normally

June 6, 2023 by Brett Tams

You want to started investing but aren’t sure what steps to take. No worries. Let me walk you through the basics and you’ll soon be on your way.

Before we start, you should know that the stock market offers a great way to grow your wealth. However, with the reward of earning 5%, 8%, or even 12% per year on your investments comes with the risk of losing money.

That means the value of your investments may drop one year. It may also take several years to recover from that loss. If you aren’t ready for the risks, then investing is not for you.

Think about These Issues Before You Start Investing

Investors are urged to invest for long term gain. This is due to changes in the market (those gains and losses you will see).

If you will not need your money for a minimum of 5 – 7 years, then you are the perfect candidate for investing. The between now and when you need your money is called the time horizon. For example, if you are investing toward buying a small cabin on the lake in 15 years, then your time horizon is 15 years. However, if your child will be heading off to college in 4 years, your time horizon would be 4 years.

Your time horizon is not the only thing you should know. Ask yourself a few other questions as well:

Am I investing for retirement, education, or another purpose?
How much do I have to invest, and is that money available in a lump sum, a regular monthly amount, or both?
Am I wanting to spend my time managing these investments?
How much money do I want to spend in investment fees?
What amount of fluctuation from the U.S. stock market performance am I willing to accept?

Your responses will guide your investing decisions, not only for the types of investments but also the brokerage firm you choose.

Consider Investing for Retirement with Low-Cost Index Funds

Let’s say you are investing for retirement, have an initial investment of $3,000. The plan is to add $100 each month to your account. You goal is to spend little time managing your investment. In addition, you would like to closely match U.S. stock performance (either the S&P 500 or the entire market). What should you do?

You can open an IRA with an online brokerage firm such as E*Trade, Fidelity, Schwab, TD Ameritrade, or Vanguard. To get started investing, you will need to fund your account. Funding is how the money moves from your account to your investment accounts.

In most cases, funding is arranged by setting up a link between your checking account and the brokerage account, and making transfers. The initial process can take a few days but after the connection is established, you can move funds to purchase shares of stocks, mutual funds, or ETFs.

Next, purchase either commission-free, market-index exchange-traded funds (ETFs) or no-load, no-transaction-fee market-index mutual funds. For example, you can buy shares in Vanguard Total Stock Market Index Fund Investor Shares (VTSMX) for a minimum initial investment of $3,000 and additional investments of at least $1. You will want to make sure you sign up for paperless statements so you can get the $20 account fee waived.

Or, you could purchase shares in commission-free Schwab U.S. Broad Market ETF (SCHB) for $1,000 (or any multiple of its market price, which is about $50 at this writing); and make additional minimum purchases that equal the fund’s share price.

Buy Individual Stocks If You Are Comfortable with Greater Risk

Alternatively, you may be interested in growing your wealth more aggressively and are willing to accept risks (and losses) associated with potentially greater rewards. You have plenty of time to spend evaluating and selecting individual stocks plus you don’t mind paying transaction fees associated with the purchase and sale of stocks (or sector or specialty mutual funds or ETFs).

Again, you could open a regular brokerage account with any of the online brokerage firms. You might look at investing with Acorns, E*Trade, Schwab, or Fidelity. Keep in mind that each on-line firm has minimum investment thresholds that you will need to meet. You could choose stocks on your own or find ones using screening tools available on each firm’s website.

After determining what you’d like to buy and the approximate quantity, you’ll want to set a price to indicate how much you are willing to pay for shares and then place your order. Fees to place orders typically run about $9.99 or less.

Decide Whether Innovative Brokerage Firms Are Right for You

You might also consider investing with a newer firm, such as Betterment, Motif Investing, or Loyal3; these companies all have unique approaches to serving customers that may or may not meet your needs.

Betterment makes investment decisions on your behalf and charges an account management fee rather than individual transaction fees; you may like this approach if you don’t have time to invest on your own. Motif Investing offers fee-free investing through its Horizon Motifs, which are comprised primarily of market index ETFs, along with its specialty motifs that trade for a flat $9.95 fee. Loyal3 has a totally fee-free platform in which you can buy shares (or even fractional shares) of certain stocks with an investment of as little as $10.

If you are ready, now is the time to get started in investing, regardless of whether the market is up or down today. The sooner you start, the more your money can grow.

Julie Rains is a freelance writer specializing in personal finance, mortgages, and investing. She writes for her own blogInvesting to Thrive as well as other media outlets including Wise Bread and Loans101.

Julie holds a Bachelor of Science in Business Administration with a concentration in Finance from The University of North Carolina at Chapel Hill. Julie started investing soon after graduation and has continued to invest and learn over the past 20+ years. In her free time, she enjoys cycling with friends and spending time with her husband and nearly grown sons.

Source: pennypinchinmom.com

Apache is functioning normally

May 31, 2023 by Brett Tams

Payment apps have revolutionized the way we manage our finances, making it easier than ever to send and receive money from the comfort of our smartphones. In the center of this digital revolution are two popular payment services: Zelle and Venmo.

Both offer convenient ways to transfer money, but which one offers the best experience for you? This depends on your specific needs and the features each app provides. In this guide, we’re going to dive into Zelle vs. Venmo, examining their services, fees, transfer limits, security, and more to help you make an informed decision.

Overview of Zelle

Zelle is a payment service backed by many of the biggest financial institutions in the U.S. Launched by Early Warning Services, a consortium of banks, it’s integrated into the regular online banking apps of participating banks, eliminating the need for a separate Zelle account. The service is designed to facilitate instant transfers between linked bank accounts, offering a seamless way to send money.

Overview of Venmo

Venmo, owned by PayPal, is a free-to-use payment app that allows peer-to-peer payments, making it easy to split bills, pay friends, or even pay for goods and services from authorized merchants.

With Venmo, users have a Venmo balance which they can use for transactions, or they can link their bank or credit union accounts or debit card for payments and receiving money. Venmo users also have the option to hold funds in their Venmo accounts or withdraw it back to their bank accounts.

Zelle vs. Venmo: A Detailed Comparison

Transaction Speed

When considering Zelle vs Venmo, transaction speed is one of the most critical aspects. Zelle transfers, due to its integration with regular online banking apps, tend to be instantaneous. The money moves directly from one bank account to another, usually within minutes, provided both sender and recipient’s bank accounts are among Zelle’s participating banks.

On the other hand, Venmo transactions are not instant. Money sent to a Venmo account needs to be manually transferred out to a bank account, which can take one to three business days if using a standard bank transfer. However, Venmo offers an Instant Transfer feature where for a small fee, you can transfer your Venmo balance to a linked bank account or eligible Mastercard or Visa debit card within 30 minutes.

Fees

When it comes to fees, Zelle stands out as a free service. There’s no cost to send or receive money, and since it’s tied to your bank account, there are no fees for transferring money to your bank.

Venmo, in contrast, is free for personal transactions when using a linked bank account, a Venmo balance, or a debit card from a major bank. However, if you use a credit card to send money or fund your Venmo account, there’s a 3% fee. Also, Venmo’s Instant Transfer feature comes with a 1.75% fee, with a minimum fee of $0.25 and a maximum fee of $10.

Transfer Limits

Zelle and Venmo have different transfer limits. For Zelle, if your bank or credit union is a partner, the bank decides the limits on how much money you can send. If your bank isn’t a partner, you can still use Zelle by signing up on its app, but you’ll be limited to sending $500 per week.

On the other hand, when you open a Venmo account, you’re initially limited to sending $999.99 per week. However, once you verify your identity, your limit increases to $19,999.99 per week for peer payments. There’s also a $5,000 per transfer limit. If you want to transfer more than that, you’ll need to initiate multiple transfers.

Security

Security is a top concern when dealing with money transfers. Both Zelle and Venmo use data encryption to protect users. Zelle, being directly embedded within your bank or credit union’s app, benefits from the same security measures your bank uses. Unauthorized transactions, if reported promptly, are usually covered by your bank’s protection policy.

Venmo also employs security measures like encryption and multi-factor authentication to protect user information. However, keep in mind that Venmo’s social nature (where transactions are shared on a social feed) could potentially expose more information than some users are comfortable with. Venmo users can adjust the privacy settings to limit who sees their Venmo activity.

Usability

Zelle’s major advantage is its integration into the existing banking app of many major banks, meaning there’s no separate app to download or account to set up. Money sent via Zelle goes directly into the recipient’s bank account, making it straightforward for users who simply want to transfer money.

Venmo, on the other hand, operates via a separate app, which is also part of its appeal. The Venmo app integrates a social aspect into the money sending process, allowing users to attach notes, emojis, and likes to their transactions. The Venmo app is a digital wallet that offers a more social and engaging experience.

Social Aspects

When comparing Zelle vs. Venmo on social aspects, Venmo clearly has an edge. Venmo transactions come with a social aspect, as each transaction can be shared on the Venmo feed. Venmo users can like and comment on these transactions, making the experience more interactive. This feature, while enjoyable for some, might not be everyone’s cup of tea, especially for those who prefer more privacy in their transactions.

Zelle, in contrast, doesn’t offer any such social features. The service is primarily designed for quick and easy money transfers and doesn’t share transaction details on a social feed.

Zelle vs. Venmo: Specific Use Cases

Best for Immediate Transfers

Zelle outperforms Venmo when it comes to transfer speed. Since Zelle transfers are typically instant among participating banks, it’s a better choice for urgent transfers.

Best for Small Businesses

Venmo could be a better choice for small businesses. The ability to accept payments via Venmo can be a convenience factor for customers. Moreover, Venmo transactions are public by default (though the amount is hidden), which might serve as a form of free advertising for businesses.

Best for Social Transactions

Venmo’s social features make it ideal for social transactions. It’s a popular choice among friends splitting bills or sharing expenses, as the transaction notes and social feed can make the payment process more engaging and transparent.

Best for Larger, Infrequent Transfers

Depending on the bank, Zelle might have higher transfer limits compared to Venmo, making it more suitable for larger, infrequent transfers like rent or high-ticket purchases.

User Reviews and Feedback

Reviews and feedback from Zelle and Venmo users generally align with the strengths of each app. Zelle users appreciate the speed and ease of transferring money directly between bank accounts, especially for those who prefer not to hold funds in another app. On the other hand, some users wish Zelle had more features and functionalities outside of simple peer-to-peer payments.

Venmo user reviews often highlight the app’s user-friendly design and its social features. Users enjoy the ability to like and comment on transactions. However, some users express concern about the privacy of their transactions, even though they can be made private.

Final Verdict

When deciding between Zelle vs. Venmo, it ultimately comes down to your personal needs and preferences. Zelle’s strength lies in its speed and direct bank-to-bank transfers, making it an excellent choice for quick and simple transactions. On the other hand, Venmo’s social features and digital wallet functionality appeal to users who enjoy a more engaging and interactive payment experience.

If you prioritize speed, convenience, and prefer to avoid holding funds in a separate app, Zelle might be the better choice. However, if you appreciate the social aspect of transactions and don’t mind the occasional fee for instant transfers or credit card usage, Venmo could be the more suitable option.

Frequently Asked Questions

Can both apps be used internationally?

Zelle is limited to transactions within the U.S. between participating banks. Venmo, on the other hand, can be used for transactions between U.S. residents and also works with some international cards. However, both apps primarily cater to users based in the United States.

What happens if you send money to the wrong person?

With both Zelle and Venmo, it’s crucial to double-check the recipient’s details before sending money, as reversing transactions can be challenging. In some cases, transactions may not be reversible. If you accidentally send money to the wrong person, it’s best to contact the app’s customer support immediately for assistance.

How to handle disputes and refunds?

In case of disputes or refund requests, both Zelle and Venmo advise users to try to resolve the issue directly with the other party involved. If that doesn’t work, you can contact each app’s customer support for further assistance. Keep in mind that neither app guarantees a refund for unauthorized transactions or payment disputes, so it’s crucial to exercise caution when sending money.

Are Zelle and Venmo safe to use?

Yes, both Zelle and Venmo use data encryption and secure servers to protect users’ information and prevent unauthorized transactions. However, users should also take steps to protect their accounts, such as using strong, unique passwords and enabling multi-factor authentication if available.

Can I link multiple bank accounts to Zelle or Venmo?

Zelle allows you to link multiple bank accounts, but you can only have one active account at a time. On the other hand, Venmo allows you to link and transfer funds between multiple bank accounts.

Can I use Zelle and Venmo for business transactions?

Zelle is primarily designed for personal use between friends and family, and their terms of service prohibit using it for business transactions. Venmo, however, offers a business profile option that allows small businesses to accept payments via the app.

Can I cancel a payment once it’s sent?

In most cases, Zelle payments are instant and cannot be canceled once they’re sent. However, if the recipient has not yet enrolled with Zelle, the payment will remain pending and the sender may be able to cancel it. Venmo payments to existing users are also instant and can’t be canceled. If you paid a new user or an email address, you can cancel the payment on the Venmo app until they claim it.

How do I dispute a charge on Zelle or Venmo?

With both Zelle and Venmo, the first step is to contact the person you sent money to. If that doesn’t resolve the issue, you can file a dispute through your bank (for Zelle) or through Venmo’s support team.

How can I increase my sending limit on Zelle and Venmo?

Your sending limit on Zelle is determined by your bank, so you would need to contact them to discuss any possible adjustments. On Venmo, you can increase your sending limit by verifying your identity. This involves providing information like your zip code, last four digits of your SSN, and your birthdate.

How fast are transfers from Venmo to my bank account?

Transfers from your Venmo account to your bank account typically take 1 to 3 business days. However, for a 1% fee (minimum $0.25 fee, maximum $10 fee), you can opt for an Instant Transfer to an eligible linked debit card or bank account.

Do I need a specific type of bank account to use Zelle or Venmo?

You don’t need a specific type of bank account to use either service. As long as your bank account is based in the U.S., you should be able to use it. However, certain features may only be available with participating banks.

Can I use Zelle or Venmo to pay in stores?

Zelle is primarily designed for peer-to-peer payments and isn’t typically accepted as a payment method in stores. Venmo, however, can be used to pay at many retailers and other businesses that accept PayPal. Venmo also offers a Venmo MasterCard debit card that can be used anywhere MasterCard is accepted in the U.S.

Source: crediful.com

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Marcus Online Savings

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Marcus Online Savings

Get a $500 Cash Bonus.

What Is the Marcus Online Savings Account?

What Sets the Marcus Online Savings Account Apart?

Key Features of the Marcus Online Savings Account

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Money Management Tools

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Mobile Features

Deposit Insurance

Pros & Cons

Pros

Cons

How the Marcus Online Savings Account Stacks Up

Final Word

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