If you’re a first-time home buyer, the process of purchasing your dream home can be overwhelming and seem complicated. Where do you begin? The first question most people ask themselves is: Should I use a real estate agent?
The Real Money
Here’s the first thing you need to know, it’s not free to use an agent! A traditional buyer’s agent typically earns a 3% commission on the sale of a house. So a $300,000 house means $9,000 goes directly to the buyer’s agent. $9,000! Because homeowners often finance their homes, that $9,000 turns into even more money over the life of a 30-year loan. If you think sellers are paying this for you, think again. You see the money you bring to the table pays for both the seller’s agent and your agent. Does that sound free to you?
The Real Emotions
Houses are not a commodity where details don’t matter. Your house is YOUR HOME. The job of a real estate agent is not to decide your price range, home size, budget, and location. That is all up to you.
The Real Work
Times have changed. When your parents were buying a house, they had no way of knowing which houses were for sale until they contacted a real estate agent. According to the National Association of Realtors, the majority of home buyers today search for and often find their own homes without their agent, usually by browsing the internet or driving around their targeted neighborhoods. This is just one more part of the job that used to be on the agent that is now in the hands of the buyer. Keep in mind that even though buyers now perform many tasks once executed by buying agents, you’ll end up paying the full buyer agent commission.
The Real Focus
In the book Freakonomics, world-renowned economist Steven Levitt published his thoughts about the misalignment between the interests of real estate agents and those of their clients. Agents are better served if sales happen quickly and at a high price. Buyers are best served if the home is right—even if it takes a long time to find—and the price is low. The studies he cites clearly show that agents are choosier, take more time, and find better deals in buying and selling their own homes than those of their clients. If you do decide to use a traditional buyer’s agent, never make an offer until you are sure the house, the price, and the details of the home loan are a good match for you.
Who’s Got Your Back?
In the golden days of real estate agents, buyers had little knowledge of how to navigate the sea of professionals necessary for making a home purchase and had to rely on recommendations from their agents. These days, a quick internet search can give buyers tips on how to find and choose everything from a lender to a title company.
Welcome to Homie. Homie is a one-stop platform that provides you with a dedicated buyer’s agent to help you through your journey and an easy-to-use app to make the process simple. On top of having an experienced agent on your side, you can keep up to 50% of our commission.* Say whaat?
Should You Hire an Agent?
Yeah! A Homie agent! Skip the traditional way of selling your home and get buying with Homie. We can’t wait to help you find your dream home and save. Click here to start browsing homes in your area.
*Subject to terms and conditions outlined in the Buyer Broker Agreement.
If you want to buy a high-priced home and need to borrow a lot for the purchase, you’ll need a jumbo loan.
What are jumbo loans?
Jumbo loans earn their title because they exceed the conforming loan limit, which is the maximum loan amount subject to guarantee by Fannie Mae and Freddie Mac. These limits differ depending on where the property is located.
Jumbo loan limits by state
Jumbo loan limits don’t always vary by state; they vary by the counties within those states. To determine whether you need a jumbo loan, start by looking at the state where you want to buy. Keep in mind that what qualifies as a jumbo loan might look very different in a county just a few miles away, with the exception of Hawaii and Alaska, where the jumbo loan limit is the same no matter where you go.
What are typical jumbo loan requirements?
When comparing jumbo loans versus conventional loans, know that qualifying for the bigger-sized borrowing package tends to be more difficult. You’re borrowing more money, so a lender needs to feel even more confident you’ll pay it back. While every lender is different, here’s a look at some fairly standard jumbo loan requirements:
Credit score – The minimum credit score required for a jumbo loan depends on the mortgage lender, but is usually at least 700. Conforming loan credit score minimums are typically 620 or 640.
Debt-to-income (DTI) ratio – When it comes to DTI ratio, the lower the better, especially for a jumbo loan. Many lenders look for no higher than 43 percent.
Down payment – The minimum down payment on a jumbo loan varies by lender. While lenders often approve down payments as low as 3 percent for conventional loans, jumbo loans typically have much larger minimums: 10 percent or greater. Often, you’ll need at least 25 percent down to get the lowest advertised interest rate.
Cash reserves – Some lenders might want to see a sizable cushion of cash in your accounts, too. Be prepared to show that you have enough money remaining to cover between six months’ and 12 months’ of mortgage payments.
Why are jumbo loan limits necessary?
Conforming loan limits are set by the Federal Housing Finance Agency (FHFA), which oversees Fannie Mae and Freddie Mac, the two government-sponsored enterprises (GSEs) that buy a large portion of mortgages made in the U.S. from lenders and resell them on the secondary market to investors. These limits help lenders make more loans available to borrowers, since the lender can now sell them to the GSEs, mitigating risk if the borrower can’t repay. Loans outside of the conforming loan limits, including jumbo loans, are riskier for lenders.
What are jumbo loan rates?
For some time now, jumbo loan rates have been lower than the rates you’ll find on conforming loans. That wasn’t always the case.
Rates on jumbo loans are also tied to the credit profile of the borrower, just like any other type of mortgage.
“Credit scores are a critical input in the lending decision,” says Greg McBride, chief financial analyst for Bankrate. “Lenders may use compensating factors such as higher income or significant assets to offset a deficiency in the credit score, and this tends to be more common in jumbo loans than the smaller conforming and government-backed loans.”
How to shop for a jumbo loan
While they’re easy to find, jumbo loans aren’t all the same. Some lenders might cap the size of the loan at $2 million, $3 million or $4 million, while others might be willing to let you borrow significantly more, such as $5 million or $10 million.
Just as it pays to compare multiple lenders with conventional mortgages, you’ll want to consider a few different options for jumbo loans, too. You might also want to talk with a mortgage broker who can help you find options based on your specific needs.
Keep in mind, too, that interest rates have been rising across the entire home lending landscape. Be sure to use Bankrate’s mortgage calculator to estimate how much interest you’ll be paying. If you see a rate that looks especially attractive and you’re ready to buy, it’s wise to consider locking it in before they jump higher and that jumbo loan has an even bigger price tag.
If you have a savings goal that’s coming up in the not too distant future — such as the downpayment on a home, a bathroom reno, or plumping up an emergency fund — you may want to consider some good short-term savings options.
There isn’t a hard and fast definition of short-term savings, but it’s typically considered to be money you want to use in five years or less.
While there are a number of options for short-term savings, one of the best places to start stashing cash for a short-term goal can be a savings account. They can offer safety (so you shouldn’t lose any money), liquidity (allowing you to access money when needed), and growth (meaning they are interest-bearing).
But some of these accounts offer more liquidity and higher interest than others. With a little reading and research, you can start socking your cash away in the right place — and start moving closer to those short-term savings goals.
Should You Invest Short-Term Savings?
Depending on your short-term savings goals, a savings account may be a wise move. One significant downside to any cash savings account is that they tend to have relatively low-interest rates.
You might however wonder: Should I invest this money in stocks or a mutual fund in order to meet my short-term goals more quickly?
Generally speaking, for short-term money, your goal is not necessarily to maximize returns. It is to control the risk — to keep it safe — so that the money is available when it’s needed.
While everyone’s risk tolerance is different, the downside to investing in the market is that you might lose money in the short term. Investment returns start to “smooth out,” or return their average yield, over longer periods. Shorter periods tend to be volatile and unpredictable — especially in the stock market.
cost of living. For money that isn’t needed for many years to come, it can be a smart idea to consider investing to grow beyond inflation.
If you’d prefer to avoid risk with your short-term savings, here are options to consider.
Recommended: 5 Types of Savings You Should Consider Having
Option 1: Online Savings Account
Online-only savings accounts, also sometimes referred to as high-yield savings accounts, are an increasingly popular option for short-term savings. As their name implies, these banks or financial institutions only operate online. Here’s the scoop:
• That means no brick-and-mortar locations and no chatting up a banker face-to-face with employees. The upside: When you compare accounts offered by traditional banks vs. online banks, the latter typically pass the savings onto their clients in the form of a higher annual percentage yield (APY).
• A potentially higher rate of interest isn’t the only reason to use online-only savings accounts. The websites and mobile apps for online accounts essentially serve as storefronts, so online financial institutions often devote lots of resources to make sure they’re optimized and easy to navigate.
• Additionally, many online-only institutions don’t have monthly account fees, which can be a real burden for those at the start of their savings journey. (For example, some traditional banks might charge a fee when you balance drops below the minimum.)
• Banking online doesn’t mean you have to forgo the conveniences of your neighborhood bank. You can typically still do all of the important banking duties, such as depositing checks (via mobile deposit, or snapping a picture of the check on your phone), moving money back and forth between accounts, and speaking with a customer service rep.
In the past, most online savings accounts were required by the Federal Reserve to limit withdrawals to six times per month. These rules are evolving; post-pandemic, some banks dropped this rule. Before you sign up, you’ll want to understand the rules for accessing your money.
Also, while online banking is now considered mainstream, it’s always smart to do a little background research before you open an online account. You may want to check, for instance, to make sure an institution has Federal Deposit Insurance Corp (FDIC) coverage, a government-guaranteed program that protects your money.
Option 2: Certificate of Deposit
A certificate of deposit (CD) is a savings account that holds a specific and fixed amount of money, and for a designated period of time, such as six months or three years. In exchange for the deposit, the bank pays a fixed rate of interest.
Generally, CDs with longer maturities offer higher interest rates. For example, a bank is typically going to be willing to pay more for a deposit that’s guaranteed for five years as compared to three months. As a saver, you often get more rewards for the risk.
You may also want to keep in mind that the interest rate on a CD is locked in at the point of purchase, as opposed to the interest rate in a savings account (both traditional and online-only), which may fluctuate. If you’re interested in locking in a certain rate, you may want to consider a CD. (Although be aware that you would be locking yourself into a lower rate, if rates rise.)
While savings accounts are designed to provide regular access to your money, CDs are not. Because CDs have a fixed timeframe, there may be a penalty to access the money before the period is over. And in exchange for the lock-up period, you may find that financial institutions pay slightly more interest than online-only savings accounts.
CDs can be a good option for people who don’t need to touch their short-term savings for a certain period of time. And they are typically FDIC-insured.
Option 3: Money Market Account
A money market account (MMA) is like a mix between a savings and a checking account.
These accounts, offered by banks and credit unions, can allow you to write checks (though you may be limited on how often) and may also have a debit card. (Savings accounts, whether online or at a traditional bank, typically do not allow for check-writing.
Returns on these accounts often beat those on traditional savings accounts. Depending on what’s happening in the economy overall, an MMA may be in line with that of an online-only bank account.
However, MMAs sometimes require higher minimum balances than other types of savings accounts. So, this might be a better option for those with more money to save.
MMAs are considered a safe choice since, like other types of savings accounts, they are typically covered by FDIC if held by a bank, and National Credit Union Administration (NCUA), if held by a credit union. (Although, it’s always a good idea to double-check insurance coverage to be sure.)
Keep in mind that MMAs differ from money market mutual funds, which are not FDIC- or NCUA-insured.
Option 4: Cash Management Account
A cash management account (CMA) is a cash account offered by a financial institution other than a bank or credit union. These accounts are designed to merge the services and features of checking, savings, and investment accounts, all into one offering.
While CMAs are typically offered by financial service providers that are not themselves technically classified as banks, they are still usually covered by FDIC deposit insurance like regular bank deposits — often through a partner bank.
Generally, CMAs function similarly to a traditional checking account, yet pay interest that is often higher than most savings accounts.
Some brokerage firms require a large minimum deposit to open a CMA, or may charge monthly fees for anyone under that minimum. Before opening a checking and savings account, it’s a good idea to ask about monthly fees and minimum balance requirements.
Also, since checking and savings account providers automatically “sweep” your unused cash into investments that pay dividends or interest (which maximizes the account’s profitability), you may want to make sure those sweep accounts are low-risk or FDIC-insured.
The Takeaway
Short-term savings is money that you likely will need in the not too-distant future, such as within two to five years.
There are a number of options for short-term savings, but some of the safest bets include online savings accounts and CDs, among others. These accounts tend to be low-risk, typically allow you to have access to your money when you need it, and can offer a higher return than a traditional savings or checking account.
If you’re saving for a large purchase (perhaps a wedding or a down payment on a home, consider signing up for a high yield bank account. SoFi’s Checks and Savings Account offers a competitive APY, charges no account fees, and let’s you spend and save in one convenient place.
Start working towards those short-terms savings goals today!
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
SoFi members with direct deposit can earn up to 4.20% annual percentage yield (APY) interest on Savings account balances (including Vaults) and up to 1.20% APY on Checking account balances. There is no minimum direct deposit amount required to qualify for these rates. Members without direct deposit will earn 1.20% APY on all account balances in Checking and Savings (including Vaults). Interest rates are variable and subject to change at any time. These rates are current as of 4/25/2023. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet. Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances. SOBK0523028U
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Do you know how much a freight broker makes?
Shipping is one of the most common forms of international trade that takes place on our planet. There are many different types to choose from, like air freight, sea transport, and trucking.
Freight brokers are in high demand.
The daily tasks of a freight broker require plenty of planning, organization, and skill.
In this post, we will explore how much a freight broker makes on average each year as well as the types of employment that pay them the best salaries.
Let’s take a look at what these jobs entail:
What is a Freight Broker?
A freight broker negotiates with carriers for shipping opportunities by representing buyers and sellers interested in transportation services offered through qualified carriers or companies which may include ships as well as land-based modes such as trucks and trains.
It can be a lucrative profession if you’re skilled at it, but how much do freight brokers earn?
What is the average freight broker salary?
The average freight broker salary is $45,000. This number can vary depending on a number of factors, including the region of the country in which they work and their level of experience.
Also, as Freight 360 points out, the commission is the lucrative part of the job, and most W-2 employees make over $80K per year.
Freight brokers in the Midwest typically earn more than those in other regions. This is due to the fact that there is more business activity in this part of the country.
Those who are just starting out in this career field may not earn quite as much as those who have been working as freight brokers for several years. However, with time and experience, most people will see a gradual increase in their income.
How much does a freight broker make per year?
According to the US Bureau of Labor Statistics, the median salary for a freight broker is $46,910 or $22 an hour.
On a higher pay scale, Indeed.com lists the national average salary at $62,105 per year.
This means that 50% of all workers make more than this amount and 50% make less.
The freight broker salary is often impacted by a number of factors. One of the most important factors is whether or not the freight broker is a W-2 employee or an owner/operator of their own company.
W-2 Freight Brokers
W-2 employees are more common and make less than owners/operators. They work under a licensed freight broker and receive a base salary plus commission on each shipment they book.
Licensed Freight Brokers
Licensed freight brokers who own their own company often employ other freight brokers and may have higher earnings potential.
A freight broker is an independent business person or a broker who works with the transportation companies, agents, or brokers to renegotiate freight contracts on behalf of the shipper.
Becoming a freight broker requires a significant investment and takes a higher than average risk but it could prove to be well worth it in the long-term.
1099 Freight Broker
As 1099 independent contractors, a freight broker works under a licensed broker. But, they do not have the benefits of being a W-2 employee.
Freight broker Salaries by state
Freight broker salaries hover near the average $60000 salary. However, this salary varies widely based on location.
These statistics below are from Indeed.com.
Highest paying states
Kansas: $75,686 per year
Arkansas: $71,220 per year
Illinois: $66,448 per year
Utah: $65,250 per year
Georgia: $63,896 per year
Florida: $62,515 per year
Ohio: $62,268 per year
Texas: $61,921 per year
Iowa: $60,744 per year
Lowest paying states
West Virginia: $37,750 per year
Vermont: $38,040 per year
Alaska: $39,620 per year
Wisconsin: $39,710 per year
Hawaii: $39,920 per year
Interestingly enough, many of the low cost of living areas have the highest salaries. Whereas the lowest paying states have a higher cost of living. So, when factoring this into the HCOL vs LCOL debate, this is a highly lucrative career in those mid0west states.
Can you make good money as a freight broker?
Since you make money as a freight broker through commissions, there is no limit to what you can earn. You can make good money if you are driven to succeed and hit your sales quota each month.
Is becoming a freight broker worth it?
Being a freight broker training can be lucrative, with many freight brokers making six figures.
This business is ideal for talented salespeople who know how to cultivate long-lasting customer relationships. Freedom is one of the biggest factors for many people and it’s hard to find a job that offers this amount of freedom.
What are the most common freight broker job responsibilities?
Freight brokers are responsible for a variety of tasks, including finding shipments for their clients, negotiating rates, and arranging transportation. They must have strong analytical thinking and problem-solving skills in order to be successful in this career.
Freight brokers are responsible for a wide range of tasks, from communicating with clients and carriers to preparing and issuing invoices.
The most common freight broker job responsibilities are maintaining strong communication, collaborating with other departments, and retaining customers. Freight brokers are also responsible for ensuring that shipments arrive on time and under budget.
In addition, they also need to be familiar with the laws and regulations governing freight transportation.
Additionally, freight brokers should have a deep understanding of the transportation industry so they can provide the best possible service to their clients.
What skills are required to be a successful freight broker?
There are a number of skills that are important for freight brokers. These include, but are not limited to, customer service skills, problem solving skills, communication skills, and organization skills. Additionally, it is important to have a passion for the job in order to maximize income potential.
In order to succeed in this career, you’ll need strong computer skills. This includes being able to use Excel spreadsheets and other software programs that are commonly used in the freight industry.
What education is necessary to become a freight broker?
There are many ways to become a freight broker, but the best way to start is by taking a course from a private company. This will give you the essential knowledge and training you need to start working in this field.
DAT, one of the best companies, that provides the best load boards for truckers recommended this course.
In order to become a freight broker, you will need both experience and education. Depending on the state in which you reside, you may be required to have a certification in order to work as a freight broker.
In fact, it is one of the few well-paying careers that does not require secondary education. Most employers only need a high school diploma or GED.
What are the career prospects for freight brokers?
The freight broker job market is always on the move. The industry is constantly growing and changing, so it’s important to stay up-to-date on the latest trends.
As will all know, supply chain issues will continue and freight brokers will help eliminate the problems with logistics.
One of the best ways to get started is by working for someone else as a freight broker before moving on to become running your own business.
Unfortunately, the turnover rate for new brokerage authorities is high. Only one-third keep their designations. However, if you have the right skills and are willing to put in the work, then your career prospects are excellent.
In fact, if you keep using these good excuses to miss work, then a job change is probably needed.
How can you earn more as a freight broker?
There are many ways to increase your income as a freight broker. As a business owner or someone working on commissions, you want to do everything you can to increase your profit margin.
Use Load Boards
Freight brokers can maximize their income potential by using load boards.
Load boards are a valuable resource for freight brokers, as they provide access to a large number of shippers and carriers. When freight brokers have access to a large number of shippers and carriers, they are able to find the best matches for their clients’ shipments.
Grow with DAT load boards.
Generate More Business
If you want to increase your income, the first thing to do is to get more clients.
This can be done by either marketing yourself or networking with other businesses.
By working, harder and smarter, you will find more and retain more clients. This means taking on more jobs, learning new skills, and being efficient with your time.
Increase your Margin
Another way to increase your income is to bill more for your services. You can do this by becoming an expert in a certain area of freight shipping or by charging higher rates.
Additionally, you can work on becoming more efficient so that you can take on more clients and earn more commissions. Finally, try to focus on developing long-term relationships with clients so that you can continue to receive repeat business.
Ask for A Raise
There are a few ways to make more money as a freight broker. You can increase your base salary or commission rate.
Generally speaking, the more business a freight broker can bring in, the higher their commission rate will be. Then, asking for a raise will be easy.
Delegate Tasks
As a freight broker, you may be tempted to do everything yourself in order to save money. However, this can actually limit your earning potential.
By delegating administrative or back-office tasks to others (especially if you are a 1099 or licensed broker), you can free up more time to focus on sales and generate more revenue.
Location. Location. Location.
Location is key when it comes to freight broker salaries. The closer you are to a transportation hub, the more you can expect to make. Additionally, freight brokers in some states earn more than those in others due to differing registration fees, varying licensing and insurance requirements, and different local and state taxes.
Be Your Own Boss
In addition, by owning your own freight brokerage, you keep all of the profits. You will also have more control over the work that you do and who you work with.
This can lead to a more successful business and a higher earning potential.
Now, You Know How Much Freight Brokers Make
Is this the right career path for you?
There are many factors to consider. Many people love that these types of jobs can be done remotely and give you flexibility.
Freight brokers are in high demand due to the increasing popularity of freight shipping.
Freight broker salaries vary depending on a variety of factors, including experience, skills, and location. However, most freight brokers make a comfortable living.
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Save more, spend smarter, and make your money go further
A credit card for your kid? Before you completely write the idea off, consider that there are legitimate reasons to consider giving your kid plastic. Getting your child a credit card for kids can help make your little one a savvy spender. By empowering them with the skill of financial literacy from an early age, they could be set up for a much more stable future, which could benefit both them and you.
But wait, can kids even get credit cards? They can with your help. That’s why it’s important for you to be knowledgeable about the options for credit cards for kids and how you can guide them to develop good habits and responsible credit management.
If you’re still hesitant about the idea of kids’ credit cards (we can’t blame you), we recommend reading this post to learn more about why you might reconsider and how to go about getting one. You can also use the links below to navigate to the section you need:
Benefits of Kids Having Credit Cards
While it might seem like credit cards for kids are a major risk, the benefits often far outweigh them. That’s because with careful supervision, you can help set your child up for a better financial future. Let’s review some of the main benefits of giving your child a credit card.
Help Them Build Credit
Many young adults find themselves unable to qualify for their own credit cards because they have no credit history. However, you can prevent this from becoming an issue for your child if you help them build their credit early on—that’s where kids’ credit cards come in.
Establishing a credit line for them when they’re younger increases length of credit history, which makes up 15% of credit score. With a better credit score, they are more likely to:
Pay less for car insurance premiums
Be approved for an apartment or house rentals
Have an easier time qualifying for student loans or a car loan
Get lower interest rates
Avoid security deposits on cell phones or utilities
Teach Them Good Habits
For many people, getting a credit card can open a door to a lot of temptation, as it gives them access to more money. However, if your child has become accustomed early to good habits when it comes to credit card usage, they may be less likely to fall victim to the potential pitfalls of owning a credit card.
Teaching your child best practices for paying off credit cards, maintaining their balance, and monitoring their credit score are invaluable skills.
Help Them Avoid Overspending
The average American household has $8,398 in credit card debt, according to Debt.org. And with the average credit card interest rate at over 16%, borrowing money doesn’t come cheap. Many credit card holders fall into a pattern of overspending with what they may consider “free money”—sometimes it can feel like that when you don’t have to pay for it right away. Whether it’s retail therapy shopping spree, a spontaneous luxury vacation, or putting a big purchase on the card, many people have every intention of paying it back with their next paycheck, but too often that’s not the case.
While giving your child a credit card is scary, letting them dive into credit unsupervised is even scarier. Teaching kids about money and helping them understand the consequences of overspending on their credit cards can help them avoid the all-too-common fate of ending up in a never ending pit of credit card debt.
Emergency Preparedness
While it might seem hard to imagine what kind of financial emergency your kid could run into, there are actually a variety of situations when having a credit card could help your kid. You never know what kinds of scenarios could arise when they’re on vacation with their friends’ family, on a school trip, or even on their way home from school.
While it’s fairly unlikely that emergency situations will arise, you both will be better off if your child has a back-up plan to get themselves out of a sticky situation. As long as you are both on the same page about what constitutes an emergency, having access to credit card funds could provide both of you peace of mind. Just make sure you lay some ground rules when teaching your child about appropriate credit card usage.
Show Your Child You Trust Them
One of the most overlooked benefits of getting your child a credit card is showing them that you trust them with this responsibility. Your trust in them can help them build confidence in their decision-making capabilities and empower them to be financially responsible, both of which will benefit them well into the future.
How to Get Credit Cards for Kids
You may be wondering, how can a minor get a credit card? They’ll need your help, but it’s fairly straightforward. Here is what you need to do:
Research whether your credit card provider allows you to add your child as an authorized user on your credit card. Some of your options may include:
Adding them as an authorized user: It’s still your account and your responsibility to pay the balance, but as an authorized user your kid can make charges on your card. Be specific about what items you are allowing them to charge and remove them if they prove they cannot handle the responsibility.
Giving them a secured credit card: Put $500 in a bank account to secure the credit limit, then if the bill doesn’t get paid, the bank uses the deposit to cover it. Make sure the issuer reports the payments to the three major bureaus, Experian, TransUnion, and Equifax.
Co-signing on your kid’s credit card: At 21, your grown child may be eligible for a credit card as long as you sign off on it (or if they can show a stable source of income). Co-signing on a credit card can help them secure a better interest rate. But think twice before you put your own credit history on the line, because you are legally both on the hook to pay it off.
If they do have kids’ credit cards, complete your lender or bank’s process for adding them as an authorized user. If they do not, then you will need to look at other banks or credit card companies that do.
Set up the parameters for the card—spending limits, tracking alerts, blocked purchases, etc.
Your child will then be issued their credit card, which will need to be activated.
Keep in mind that not all companies offer credit cards for minors under 18 or allowed for authorized users, in fact most have age requirements, so you may need to research your options to find a credit card issuer that works for you.
Best Credit Cards for Children
Here are credit and debit cards for kids that can be a good starting point for teaching your child about financial management:
Gas card: Credit cards for gas stations are a way to give your child an opportunity to learn about and building credit, without the temptation of spending on unnecessary things. Gas cards make great starter credit cards for students who need to drive to high school and college.
Prepaid debit or credit cards:This type of card won’t build credit, but the upside is that a child as young as 13 can typically get one. Keep in mind that there may be maintenance fees on these types of cards.
Card with a low limit: A low limit credit card can help prevent spending from getting out of control; these cards usually have limits of about $250-$500.
Emergency credit card: Stipulating that the card is only to be used for emergencies is one way to teach your child about credit, without giving them free range. A useful emergency credit card should have a higher balance, but be carefully monitored to prevent abuse of their privileges.
If your child isn’t quite ready for a credit card, set them up with a debit card before graduating to credit. Tie it to their bank account and set up notifications so you can see where your child is charging. If they can’t handle debit, forget about credit for now. The downside is that a debit card does not establish credit history.
How to Help Your Child Manage Their Credit
Set a limit: With tight boundaries that you set, failure may come, but in small doses. Aside from staying out of debt, more and more employers are checking applicants’ credit history, meaning solid credit lessons early on could improve chances of employment down the road.
Review the monthly statement with them:Explain how the card works and when the bill arrives, explain it again. Due date? Check. Payment options check? Check. Interest rate? Check. Grab a calculator and show them what an interest rate is—in real dollars. Talk about what happens if you don’t pay off the balance in full and make a rule to always do so.
Explain fine print: There many aspects of credit management that are easy to overlook. Make sure to point out the repayment terms, annual fees, late penalties. etc.
Monitor credit: If they have their own credit card, you may want to regularly check their credit score (along with their statement) to ensure there are no issues such as unauthorized spending or errors that need to be disputed.
Comparing credit to cash is one of the most important aspects of teaching kids about managing their credit—emphasizing that it is not free money and needs to be repaid responsibly. USA.gov is also a valuable resource for teaching your child ins and outs of credit cards.
Kids’ Credit Card Pitfalls
Before signing your child up for kids’ credit card, it’s important to consider the risks:
Accumulation of debt: One of the scariest things about allowing your child to have a credit card is that they risk accumulating debt. While it can be dangerous if it gets out of control, the key is supervision, and learning to pay off the full balance on time each month.
Risk of scams and theft: With access to a credit card, your child may be pressured or manipulated into spending or allowing others to spend the funds available. There’s also the risk that the card could get lost or stolen; children are known to forget or lose things frequently. This is where emphasizing caution and responsibility will be essential. You should also read up on child identity theft at Consumer.ftc.gov.
More impulsive tendencies: Children tend to be more impulsive in nature because they haven’t learned as many of the hard lessons about consequences as adults. And depending on their age, their decision-making skills may not have fully developed.
Credit card addiction: Those with addictive personalities, especially when it pertains to shopping, may be more inclined to abuse the convenience of credit cards and form a credit card addiction.
Your credit habits could affect their history: No matter how responsible we try to be, sometimes we make financial missteps or fall on hard times. How your credit history can affect your childs’ is important to keep in mind if they’re an authorized user on your card.
Keeping in mind these kids’ credit card pitfalls, and how to circumvent them, will help you set your child up for success.
Sign Them up for Their First Kids’ Credit Card
Taking the plunge into getting your kids a credit card can be a scary and stressful process, but it doesn’t have to be. By taking it one step at a time, educating your child about credit cards, and closely monitoring their usage, you can make this a positive experience. Once you have a game plan for how you’ll help your child use the credit card, take the initiative and sign them up as soon as they’re eligible.
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Getting Your Kid A Credit Card? This Is What You Need To Know
Ready? Set? The time to prepare for your home sale is NOW!
Start now and you’ll be set to list during the peak home-selling season, ensuring you get top-dollar for your house.
Spring is almost here. Bears leave hibernation and people get moving. Literally.
That’s right. Spring and summer consistently see a greater volume of home sales than fall and winter. Why? Are you kidding? Who needs more reason than a simple aversion to moving in cold, dark weather? Besides that, moving in the winter interrupts the school year for those folks who have kids. Plus, homes show better when flowers are blooming and grass is green. You and the rest of the nation are probably dreaming of flowers this very February minute. It’s not a secret. Spring and summer pretty much rock for home sales.
Not only do houses typically move faster during the on-season, they sell for more money. This is probably due to the high demand for houses and a sense of “time running out” as autumn, and the school year, approach. An influx of buyers can create a situation called a bidding war, when more than one buyer offers on a house. This sometimes causes the house to sell for higher than the asking price as buyers compete.
How do you get in on this fast-selling, high-price season?
Imagine it. You wait until the weather is nice and buyers are already shopping. You start thinking about how you want to sell. Then you trip on the broken grate of your fireplace which you didn’t see because of the missing lightbulb overhead. You realize that fixing up the flaws in your home is 1) the only way to get the best price for it, and 2) a time-consuming process. Buyers are already touring the homes they will buy and you’re not on the race track. You’re not ready to list and you won’t be anytime soon, potentially for months.
Now imagine instead that you look February in the eye and declare that it’s no match for you. That’s right.
You prep your home now.
Start with these six steps and come back to our blog often. Over the weeks, we will dish out tips on what you can do to get your home sold at a good price.
Shop Homie and other websites as if you are a buyer looking for a home in your neighborhood. Learning a market is best done over time, not in a cram-session. For the next month, search new listings daily to get a sense of what sells quickly and where prices are at. This will help you know how to price and show your home.
List problem areas of your home. Walk the home and property. This might require a jacket, but it’s worth it. Write down everything that doesn’t function properly or is unsightly.
Prioritize your repairs and upgrades. Organize your list of problem areas from the most to the least important. Think small-to-large and front-to-back. In other words, now is not the time to tackle large renovations, which do not always give a full return on investment. List first the small things that will repair quickly and inexpensively, with an extra focus on items that will be seen first by potential buyers. So, the front of the house, the front rooms, and the kitchen. You may not get to all items.
Get estimates for the repairs you hope to make and set aside money for them. Putting money into the house during this phase of home-selling is a wise investment, as serious buyers often walk away from homes that need too much work. Other buyers will give low-ball offers because they sense that the seller is not truly prepared to show the home well.
Set a deadline for when you hope to put your house up for sale. You can always bump it back, but having a goal helps to organize your repair personnel and your own time. There will be bumps along the way. Don’t lose hope! The housing market is strong and by starting early, you have more time on your hands than most.
Contact Homie. When it comes to selling homes, Homie’s got your back. Homie quickly and painlessly walks you through the first steps to the last without the traditional 6% commission fees. Some of the steps to selling a home can even be done with the touch of a button on your phone! So relax. Selling a home has never been cheaper—or easier. Sign up to sell with Homie today.
Note: This post is the first of our Home-Sellers’ Journey series, where we walk you through every step of selling a home during peak season. For more details on selling your home, visit our post How Homie Helps You Sell Your Home and be sure to check back soon for our next post in the series, Tips for Staging Your Home.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
The Christmas season is here and you want fun ideas to do!
To help make your life easier this year, I created a bucket list full of over 100 activities. You can use it as an actual bucket list or just enjoy scrolling through some fun things to do with friends and family before December 25th.
You will find everything from decorating ideas for your home (from simple snowflakes that are easy enough for kids to make) all the way to DIY recipes for Christmas treats.
Who doesn’t love a good list?
This Christmas bucket list is things you can do with your family around the Christmas season to make it more lively and enjoyable.
I made this list for my own kids, but I thought I would share it with you to use it too!
How can you make your Christmas bucket list more fun?
There are many different ways to make your Christmas bucket list more fun.
One way is to focus on new activities that you haven’t done before. Another way is to add food-related activities, which always make Christmas special.
You can also try incorporating some outdoor activities, even if it’s just for a (snowy) day.
And don’t forget about family traditions! They’re a big part of the holidays and can really enhance the experience.
No matter what you do, make sure you enjoy yourself (and not stress yourself out)! The holidays are a time for celebration and should be spent with loved ones. Merry Christmas!
Memorable Christmas Bucket List
While we love the classic Christmas bucket lists, we also are always looking for unique ideas to add to your holiday bucket list.
Some of these out-of-the-box ideas are pretty sweet and you may want to do them year and year again.
You can find everything from baking cookies to attending a German market to spending Christmas at a lodge. No matter what you choose, make sure you keep in touch with your family and friends during the holidays.
1. Go to Mexico. This is one of our Christmas traditions! There is something relaxing about enjoying the beach while Felix Navidad is playing in the background. (Gift hint… all of the beach gifts can be given to be used on the trip.)
2. Book a Wintery Mountain Stay. On the flip side, there is something magical about sipping hot cocoa while by the fireplace when giant snowflakes are falling outside.
3. Participate in a Neighborhood Luminaires Night. Organize one night for all of your neighbors to put luminaries outlining their driveways. It is a symbolic event with neighbors coming together in peace.
4. Roast Chestnuts. Just like in the famous song by Nat King Cole, it is your turn to roast chestnuts on an open fire.
5. Wrap Presents with Friends. For some wrapping presents is fun, for others it is a task. But everything is always sweeter to do with friends, so plan a time to wrap presents with friends. Appetizers and drinks are optional.
6. Order Matching Christmas Pajamas. This is a popular Christmas tradition for most families. Make sure you order your matching Christmas Pajamas in time. Some of my favorite places to find them are Kohl’s, Macy’s, and Amazon.
7.Wear Matching Christmas Pajamas. Depending on the age of your kids and spouse will depend on how well the matching outfits go over. Make sure to snap pictures!!
8.Kiss Under the Mistletoe. This is a fun Christmas tradition for kids and adults. Kids love this because it’s not just kissing their parents on the cheek, but they get to kiss everyone in the room! Adults love this too because it’s a great opportunity to get some alone time with your significant other.
9. Host a Progressive Dinner. This is a great idea to host a fun holiday party. For each course of a meal, you move houses.
For example, you start at house A for appetizers.
Then, move to House B for dinner.
Finally, wrap up at House C for dessert.
If you have more houses participating, then you can easily stretch to a 7-course meal.
10. Buy Ugly Christmas sweaters. This is a love-hate for many people. Are you totally into buying Christmas sweaters or do you want to shy away? Either way, it is always helpful to have at least one ugly Christmas sweater in your closet.
11. And then host an Ugly Sweater Christmas Party. Time to invite all of your introvert friends for an epic ugly sweater party. The winner walks away with a prize!
12. Go to a Christmas Eve Service. If you’re feeling a little more spiritual, there are many churches that offer Christmas Eve services. If it’s your first time going to one, consider this a good opportunity to introduce the whole family and get them interested in going.
13. Classic Christmas Movie Marathon. This is always a popular idea! Especially one that is next to free to do! Pull up the classic movies and enjoy!
14. Read Christmas Books. This is another one that is uber-popular in our house! We try to stick with Christmas-only books in the month of December. One of our favorites is JK Rowling’s latest book!
15. Go on River Cruises. The river is a great place to find some peace and quiet. You can go during the day or at night.
16. Stay Downtown. Whether you are looking in another state or in your own city, you’ll find a new adventure.
17. Snowman Building Competition. Set up a snowman building competition in your neighborhood and let the winners decide what charity to donate the money raised! Bragging rites until the next competition is held.
18. Shake a Snowglobe. Maybe even add to your snowglobe collection. There is a great children’s book called Snow Globe Family. That is a super fun read.
Classic Christmas Bucket List Ideas
This is the list you think of when it comes to Christmas things to do!
Whatever you decide to do this holiday season, make sure it’s something that will create memories that will last a lifetime.
19. Bake Christmas Cookies. This is the classic holiday bucket list idea. Here are some of our favorite Christmas cookie recipes.
20. Watch Christmas Hallmark Movies. Did you know there is a countdown to when the Hallmark Channel releases their Christmas movies?!?! Yes, this is a must-do for many people. In fact, you may want to buy them the same Hallmark socks we gave our moms.
21. Host a Christmas cookie exchange. Yes, please! Cookie exchanges are the best. In fact, it is one of the most popular Christmas challenges.
22. Go Christmas Caroling. Is it a tradition? Or is it just something that you love to do with your friends and family? Bring joy to your neighborhood or nursing home by singing traditional Christmas carols.
23. Volunteer. This could be serving at a soup kitchen, organizing an event for people who can’t afford gifts to “shop,” or lending a hand to a neighbor in need. There are many organizations looking for help.
24. Build a Snowman. Yes, this is the ultimate idea for families. Make sure you have the snowman supplies to dress up your Frosty the Snowman properly. Don’t forget the carrot nose!
25. Build a Gingerbread House. This is a classic activity for many kids and you can easily pick up a gingerbread house kit for under $10. However, it is not just for kids. Check out this family’s gingerbread house display!
26. Christmas Portrait Time. Thankfully, this time of year you can find plenty of Pinterest-perfect backdrops to take portraits at. You can take family photos or one of each person in your house. This accessory helps your amateur photos look professional!
27. Mail Christmas Cards. This may have been a long-standing tradition for many years and slowly making a comeback. You can take Christmas photos just for the occasion or a collage of photos. Order your Christmas cards here.
28. Read Twas the Night Before Christmas. This Christmas classic must be read at least once on Christmas Eve. Grab your copy of the classic book.
29. Find Creative Ideas for Elf of the Shelf. Let’s face it. You jumped on this tradition … hook.line.and.sinker. Now, you must keep up with all of the Pinterest perfect ideas.
Christmas Outdoor Bucket List
Time to get outside and explore. Fresh air is always helpful!
30. Go Sledding. This is a classic bucket list item. Check out a new sledding hill in your neighborhood.
31. Build a Snow Fort. This is personally one of my favorite activities, but Mother Nature must cooperate with tons of snow! Grab some shovels and start building a fort!
32. Snowball Fight Time. Who doesn’t love a good snowball fight?!?! Grab some friends and head out for an epic snowball fight. Even better if you built the snow fort prior to game time!
33. Go Ice Skating. This is a classic especially if you live in the upper midwest. There are plenty of recreation centers that make ice skating a reasonable cost activity.
34. Skiing. Fresh powder sounds like the perfect Christmas tradition. Just make sure to book your ticket early.
35. Plan a Wintery Picnic. Grab a blanket, lunch, some hot cocoa, and your Christmas Pajamas for an outdoor picnic this winter! Make this time special with a special picnic basket to use.
36. Go Snowboarding. Time to shred the slopes. Check out the latest snowboarding gear.
37. Time to Go Tobogganing. What is tobogganing exactly? Much like sledding except you hit the snow-covered slopes and artificial-ice-covered chutes with a toboggan.
38. Give the Gift of Nature. Take your family on an outing to see some beautiful nature! Get out in the fresh air and enjoy the beauty of nature.
39. Make a Snow Angel. This is the perfect activity for kids to do. Yet, very calming and peaceful if you decide to get down in the snow and create snow angels.
40. Hunt for the Perfect Live Tree. Grab your permit and go on a hunt for the perfect Christmas tree. Make sure to bundle up and wear snow boots!
41. Catch Snowflakes on your Tongue. Regardless of your age, this childhood memory needs to be done yearly for your Christmas bucket list. Drop all of your worries off your shoulders as you catch a snowflake on your tongue.
42 Skate on Outdoor Ice Skating Rinks. Skip the indoor rinks and head outside to skate. Even more romantic if the snow is falling.
43. Create a Winter Wonderland. This one is a do-it-yourself project that doesn’t require any crafting skills.
44. Go for a Holiday Walk. Take some time out of the hustle and bustle by taking a walk outside.
45. Neighborhood Christmas Light Competition. Another great idea is to put your home in a Christmas lights competition! This can be really fun if you have friends and family who live close by. All you need is some creative decorations and an appetite for holiday cheer.
Name That Entertainment Holiday Bucket List
Time for friends, laughter, and fun!!
These are the social must-haves on your entertainment holiday bucket list!
46. Host Christmas Eve Dinner at your home. If you have room, open up your home to friends or family who might otherwise be alone for Christmas. Our Christmas Eve tradition is fondue!
47. Christmas Party Night. Invite your friends and family over for a Christmas party night! This is a fun way to get everyone together in one place, have some laughs, and enjoy each other’s company.
48. Wear Christmas Dress Attire. Everyone wants an excuse to dress up. So, make sure you have a special occasion to year your Christmas cocktail dresses.
49. Find Entertainment from the Seasonal Classics. This could be watching The Polar Express (it’s on Netflix now!), listening to holiday music, or reading a children’s Christmas book.
50. Host an Advent Calendar Party. It is so much fun to count down the days before Christmas! This works especially well in a classroom setting. Each day is a new activity to count down the days until Christmas.
51. A Christmas Story. Watch A Christmas Story and then read a few of the lines with your friends!
52. Home Acting. Put on your own production of your favorite movie or theater production!
53. Misfit Toys. Collect a variety of small, inexpensive toys and have your guests guess which toy belongs to each guest. To make it more fun, be sure to include some items that are broken or missing pieces!
54. Mistletoe Bingo. Get your guests in the Christmas spirit by setting up a bingo board with different categories for them to fill out!
55. Birthday Party for Jesus. ‘Tis the reason for the season – the birth of Jesus Christ. Plan a birthday party to celebrate everything Jesus gave to us.
56. Holiday Game Night. Christmas is a time for fun and games, so why not have a Christmas-themed game night? Some popular game ideas include playing charades, Pictionary, or Cranium. You could also try some new games that you haven’t played before – like Elf on the Shelf or Monopoly.
Holiday Season Bucket List Around Town
One of the best things about the holiday season is there are SO MANY activities to do with no money. You can find something to do each day for free.
The paid events are classics that create lifelong memories!
57. Book a Limo to Check out Christmas Lights. What better way to enjoy watching the Christmas lights and not having to drive? Personally, this works great when sharing the limo costs with friends!
58. Attend a Local Craft Fair. These craft fairs are becoming a hot place to find personalized gifts. Plus it is a great way to give back to local small businesses as well as the high school teams and clubs who organize the craft fairs.
59. Book Tickets to a Lightshow. This is a hot commodity so make sure to book your tickets early – like around Halloween. That way you will get the prime time you want to attend the light show. Also, many areas have more than one popular light show to see!
60. Attend a Ballet Performace. While the Nutcracker is a popular dance performance, there are plenty of other ballets at this time of year.
61. Watch The Nutcracker Live. I have danced in and seen the Nutcracker so many times that I have lost count. However, I love the production, the costumes, and the music! Make it more magical by taking a young girl who has never seen the Nutcracker before and watching the production through their star-struck eyes.
62. Visit Your Local Christmas Market. Every town has one. A local store stocked with all things Christmas! Maybe even see if your area has a German Christmas Market and check out the varying traditions.
63. Attend a Holiday Tree Lighting Event. Right after Thanksgiving, there are plenty of local tree lighting ceremonies. Check with your city for dates and times.
64. Attend a Holiday Festival. The holidays are the perfect time to attend a festival with family or friends. By attending, you can enjoy the activities and experience new things that may be on your list for next year!
64. Attend a Christmas Parade. Get out and see the Christmas spirit in all of your favorite holiday traditions. Most cities kick off the holidays with a parade.
Christmas Bucket List in the Kitchen (Recipes a Must!)
Around the holidays, the kitchen is the hub of the activity. More money is spent on food and drink in November and December. So, you must include a few of these Christmas activities on your list.
65. Decorate Sugar Cookies. This is a great project that tastes delicious. It’s also really easy and you’ll be surprised how much your decorating skills improve each year.
66. Make Hot Cider. Hot cider is a great drink to have this time of year. This Christmas treat can be made in the oven or on the stovetop, with just enough heat that it’s still perfect for kids and adults. Plus it makes your house smell naturally festive.
67. Enjoy Hot Chocolate with Marshmallows. This is a perfect wintertime drink. Surprise the family with cute Christmas mugs.
68. Drink Egg Nog. This is a classic must-have during the holidays. There is something that warms your belly with the creaminess of egg nog. Make sure to buy your Egg Nog early as many stores ran out at Christmas time. Which eggnog flavor is your favorite?
69. Gourmet Hot Chocolate Bar. Set up a hot chocolate bar with all of your favorite toppings, like cinnamon, heavy cream, and gourmet chocolates. This will make the holidays even more special!
70. Snowy Ice Cream Treats! Make some delicious homemade ice cream and put it in bowls or cups and hand them out to your loved ones.
71. Visit a Bakery. These places are filled with great ideas! If you don’t have time, pick up one of their creations. Or try to make your own at home.
72. Make Your Own Gingerbread House Kit. This gingerbread house kit contains everything you need to make a gingerbread house this season.
73. Make Homemade Marshmallows. These are so simple to make and perfect for hot chocolate or in a sugar cookie recipe!
74. Make a Birthday Cake for Jesus. There is a huge reason to celebrate! So, let’s bake a cake and celebrate!
Crafty Christmas Bucket List
You don’t have to be super crafty for any of these projects. Simple ways to make decorations!
For many people, making their own gifts is a great way to give awesome Christmas gifts when you are broke.
75. Get crafty! There are thousands of Christmas crafts you can do during this season! Some ideas include making ornaments or wreaths, cutting out snowflakes, decorating a gingerbread house, or making your own Christmas cards.
76. Make DIY Christmas Tree Ornaments. Okay, I will be honest … there are so many great ideas for DIY Christmas Tree ornaments that I freeze on which project to actually complete. So, pick 1 or 2 that you know are within your crafty skills and get started!
77. Make Paper Snowflakes. This is a classic Christmas activity to do.
78. Make a Christmas Wreath and Decorations with your kids or family members. This is great for the whole family to do together, as it helps create memories that are sure to last a lifetime.
79. Wonder the Craft Stores. With no agenda and plenty of time! Let your mind wander and fill with amazing Christmas crafts you could make.
80. Make Salt Dough Ornaments. This is the simplest Christmas craft for the non-crafty person! Learn how to make salt dough from Katie.
81. Create Candy Care Garlands. The options are endless on this one! You can use big candy canes or mini candy canes to make your garlands.
82. Decorate a Christmas Photo Frame. This is a fun project that can be completed in just minutes! Take any old frame and spray paint it white. Then, add Christmas decorations around it or use spray painted puzzle pieces.
83. Knit Christmas Mittens. This is a quick and easy project to knit up for the holidays!
84. Make Your Own Snowmen. Make your own snowman out of rice or beans, it’s fun and easy.
85. Put Snowflakes on the Windows. This is a fun and easy way to decorate for the holidays.
86. Make Your Own Poinsettia Wreath. These wreaths can be made in no time at all!
87. Find Creative Ideas for Elf of the Shelf. Let’s decorate the elf and make its day bright!
88. Make Wreath Cards from Last year’s Christmas Cards. This is a great way to upcycle and make unique Christmas ideas. Watch this YouTube video to learn how.
89. Decorate Staircases with Ribbons. This is a simple trick to make your house look more festive!
90. Make Orange Peel Poppuri. This is a simple and quick recipe that will make your house smell fragrant.
91. Make Christmas Cards. This is the perfect time to make your own Christmas card with all of your family members, friends, and even pets! There are so many fun ways to customize these cards. You can be crafty with paper supplies or use a digital template.
Decoration Christmas Bucket List
The decor is the major component of the holidays! Make sure you are ready to get decorating!
92. Decorate the Christmas Tree. This “to-do” should be treated with a little more emphasis. Plan an event around decorating the tree and sharing memories while hanging ornaments.
93. Create a Themed Christmas Tree. Star Wars fan? Barbie lover? Marvel fan? Sports diehard? Time to unleash all of your passion and decorate a themed Christmas tree in honor of your fervor. Find some ideas to jumpstart your creativity.
94. Hang Chrismas lights. Even better make your house look better than the National Lampoon’s Christmas Vacation. Order your lights here.
95. Upgrade Your Christmas House Lights to a Christmas Light Show. Thankfully, technology has greatly approved and you do not need to be an engineer to figure it out. You can pick up this up and quickly set your lights to music.
96. Pick a New Scent for the Holidays. Personally, I like peppermint.
97. Buy Cute Christmas Dish Towels. This is a simple decoration tip from the pros. With this simple purchase, it looks like your house has been staged for the Pinterest perfect Christmas dinner.
Shopping Place for Holiday Activity
Every bucket list has gifts on it, so time to get your shopping done!
98. Create your Christmas Budget List. While this may not be on the top of your list, this is a very important money management tip to master. Learn how to make a Christmas budget that works for you.
99. Shop for Christmas Gifts. This is a great time to find gifts for your friends and family. No need to rush, but shop early if possible! Amazon has a ton of gift ideas that are easy on the wallet too! Find a list of the best Christmas gifts under $10 for kids.
100. Purchase Christmas Flowers just for You! Buy some fresh flowers from your local flower shop and enjoy them for the holidays!
101. Wear Christmas socks. Hello, we all love cool socks! Make sure you pick up some new Christmas socks for your holiday collection.
102. Start A Collection. If you are looking for some easy gifts, start a collection that can be added year after year! A few examples include Christmas ornaments, books about Christmas traditions from around the world, and ornaments made out of candy canes.
103. Shop A Christmas Store. Find a Christmas Store; they are worth a visit if you want to get into the holiday spirit! They have everything from traditional nutcrackers to more unique items like Santa toilet paper holders. No matter what your interests are, these specialty stores have something for everyone.
104. Give Money Creatively. Did you know you could give money besides just writing a check? There are over 45 different money gift ideas for you.
Christmas Bucket List for Family Activities
Entertaining the kids is a must! Thankfully there are so many things to do.
Plus you can see the magic of the season through their eyes!
105. Write a Letter to Santa. This needs to be done in the first part of December in time to reach the North Pole.
106. Make Reindeer Food. Fruit and vegetables make a great snack for the reindeer, so it’s easy to do this activity with your kids. You can also experiment with adding different spices into the mix such as cinnamon or nutmeg.
107. Watch the Holiday Funny Movie Marathon. This is a fun way to spend a cold or hot day. Pick out some of your favorite hilarious movies and get cozy in front of the TV! Laugh til you drop!
108. Make Winter Slime. Yes, every kids LOVES slime and what is better than just slime… WINTER SLIME! Pick up Iceberg Frozen Winter Slime for your kid’s Christmas Party.
109. Host a Kid’s Christmas Party. This is something we have done every year is to host a kid’s Christmas party. It is a simple and festive way to share in the Christmas season. Provide some simple Christmas crafts, hot chocolate (with marshmallows of course), and easy snacks.
110. Sing Christmas Carols. This is a fun family activity that will make you feel festive!
111. Visit Santa. This is an old-fashioned tradition that never gets old. Visit Santa and find out if you have been naughty or nice!
112. Make Paper Snowflakes. This activity is a must for kids. Simple and easy to make. Plus they will get lost in the activity for hours! Find paper snowflake ideas.
113. Make Rudolph Pancakes. One easy way to make your Christmas bucket list more fun is by adding some creative and festive tasks to ordinary things like making pancakes.
114. Talk to Santa Claus. It’s hard to believe, but there are actually people who talk to Santa every year and make sure he has everything he needs for Christmas Eve. You can talk to him on the phone or online, and it’s a great way for your kids to get in touch with their inner child.
115. Go for a Christmas Scavenger Hunt. This is a great family activity that will have your kids having fun and learning at the same time. You can make it as easy or as hard for them to complete, depending on their age.
116. Make a Christmas wish list and check it twice. Have the kids pick out gifts they would like for themselves as well as give to others.
117. Have a Holiday Movie Night with your Friends and Family. Make some popcorn, grab your favorite movie, and cuddle up on the couch for an evening of laughter!
Holiday Bucket List to Help Others
You don’t have to be a millionaire philanthropist to help others in your community. You can make a difference by doing small things that will go unnoticed, but still, provide assistance for those who need it.
118. Participate in Random Acts of Kindness. This is a fun way to do something nice for someone else this Christmas. It’s also a great opportunity to practice your own “random acts of kindness” you want to give back in the new year.
119. Polar Plunge: A Fun and Festive Way to Help Others. Create a team of people who will pledge money for every degree the temperature drops below freezing! Make sure to follow through and take the polar plunge!
120. Donate to a Food Bank. Make a donation to your local food bank or homeless shelter in order to help those who are less fortunate during this time of year. This is a perfect way to help those in need in the wintertime and continue the tradition year round!
121. Be Someone’s Secret Santa. This is a fun and heartwarming tradition that works well for your whole family. It’s simple, too: just give out the names of people you would like to be Santa Claus for in December and tell them not to let the person know who you are.
122. Donate Toys. There are a ton of organizations that accept donations of toys or other items. Find the best charities to donate your old toys and help those in need this holiday season!
123. Make a Financial Contribution to a Nonprofit. Most nonprofits receive the majority of their financial donations in the last months of the year. Maybe see if you could make it a part of your biweekly budget and give more often.
124. Visit the Animal Shelter for a pet adoption event. It’s not just cats and dogs that need homes on Christmas Eve! Many of our furry friends are forgotten about this time of year. Stop by a local animal shelter.
125. Adopt a Family for Christmas. If you’re not into the whole Santa Claus thing, why not take it upon yourself to give back to the community? Adopt a family for Christmas by purchasing gifts, food, and necessities that they might not otherwise have. There are many families in need this time of year and it’s truly an act of love and kindness to give back in this way.
126. Give the gift of music. If you’re a musician or know someone who is, offer to play at a nursing home or assisted living facility on Christmas Eve. If you’re not a musician, sponsor the music of a local choir or orchestra.
127. Give the Gift of a Smile. Visit an elderly neighbor and say hi. Smile to the person behind you in line. It takes more muscles to frown than smile.
128. Pick a Tag from a Giving Tree. Many companies set up a tree with tags of people who are in need. Then, their employees can pick a tag and purchase the selected item.
129. Baking for Others: A Fun Way to Help Others. Bake for someone in your neighborhood and donate the ingredients to an organization that feeds people in need!
130. Pray for Peace and Happiness. Don’t stop praying during these hard times. Pray for peace, happiness and prosperity around the world.
Something Else for Holiday Bucket List Items
These are the ones that are still awesome ideas but don’t fit in the above categories!
131. Empty your Christmas Schedule. This is a great way to destress, especially if you have been stressing about your holiday season.
132. Start Dreaming About Your New Year’s Resolutions. This one is my favorite! I love rolling over to a new year with fresh dreams.
133. Grab your Yearly Planner before January 1st. Yes! Especially with supply chain issues, I recommend getting your yearly planner in advance. Here is the current yearly planner I use.
134. Create Your Own Advent Calendar. It’s easy to create your own advent calendar. Use a simple white board and some markers to create your own countdown to Christmas.
Christmas Bucket List for Couples
These are the top 10 ideas from above just for couples!
Ice Skating at Night
Kiss Under the Mistletoe
Go on a Sleigh Ride
Romantic Movie Night
Catch a Snowflake on Your Tongue
Enjoy A Fireside Cuddle
Leisurely Stroll on a Snowy Mountain Area
Escape for a Night Away
Volunteer Together
Dream About Your Future
Christmas Bucket List Template
Okay, we gave you TONS OF IDEAS!
There is absolutely no way you can accomplish them all in one Christmas season.
So, here is a template to use to pick your top 25 activities to complete.
If you’re like us then setting up the tree is something that you always look forward to. From decorating the tree, baking cookies, and watching movies under it with your family this Christmas is sure to be a magical time for all of us!
What are some tips for creating an ultimate Christmas bucket list?
There are a few things to keep in mind when creating your ultimate Christmas bucket list.
First, make sure that it includes experiences that you will really enjoy. This is not the time for obligation or duty–the list should be filled with activities that you and your loved ones will love doing together.
Second, try to include a variety of different types of activities, from traveling and vacationing to visiting new places and trying out new experiences.
And finally, don’t forget to add some classic holiday traditions as well!
KEY TIP… Plan Your Day Ahead: What are you going to do tomorrow?
How can you make your Christmas bucket list more meaningful?
When it comes to the holidays, many people want to do as much as they can.
The Christmas bucket list is often a great way to make sure that you’re able to check off all of the items on your wish list. But sometimes, we can become overwhelmed by all of the things that we want to do. This year, consider making your bucket list more meaningful by doing activities that will bring you happiness and joy.
Idea #1 – Be Happy
One way to make your Christmas bucket list more meaningful is by only including activities that truly make you happy.
For example, if decorating the tree or going shopping for presents isn’t really your thing, then don’t put them down as items that you have to do this year! Instead, focus on doing things like baking cookies with loved ones or taking a walk in the snow.
Idea #2 – Spend Time Together
Another way to make your holiday season more special is by spending time together over a fire. Whether you build one in your backyard or take advantage of one at a local park, this is a great opportunity for conversation and reflection.
Consider lighting the fireplace and reading a good book together–or having some deep conversations about what’s been going on in each other’s lives!
Idea #3 – Make an Advent Calendar
Making your own advent calendar is a fun way to get into the Christmas spirit. You can make it as simple or as complex as you want, but the key is to include activities that will get you excited for the holiday season.
For example, one day you might do an act of service for someone else, and on another day you might bake cookies!
Now, start brainstorming ideas with your family and friends.
Idea #4 – Get Prepared
Take time to figure out what kind of holiday experience you want, which helps narrow down the items on your bucket list.
Another way to make your Christmas bucket list more special is by preparing for Christmas Eve the night before. One great idea is to create a box filled with all of the things you’ll need for the following day. This could include pajamas, breakfast foods, and even some presents!
Use the printable to prioritize which activities your family would like to do during the holidays.
Idea #5 – Make it Personal
Finally, why not add a personal touch to your Christmas this year?
Make your list as personal and meaningful to you as possible by only including activities that are important.
Instead of using store-bought wreaths and ornaments, try making them yourself! There are endless possibilities when it comes to homemade decorations, so get creative and have some fun!
This isn’t the time to make your season harder – only what you want to do.
What are some things you can do to make your Christmas bucket list more exciting?
There are many ways to make your Christmas bucket list more exciting!
One way is to add a variety of activities, from festive traditions to outdoor adventures.
You can also mix up the type of activities so that you have something for everyone in the family. Additionally, you can make a point to do new things every year and keep your bucket list updated.
This will help ensure that you have an enjoyable and memorable Christmas season.
What are some tips for making your Christmas bucket list more fun for everyone?
One way to make your Christmas bucket list more fun for everyone is to try and do something that is meaningful and fun for everyone in your family.
This could be anything from spending time by the Christmas tree together, to doing random acts of kindness this holiday season!
A great tip would be to have everyone include their top three ideas that make the family Christmas bucket list.
All in all, you want to start Christmas traditions that the whole family looks forward to each and every year. This may be as simple as starting a new family tradition or making homemade gifts for your friends and neighbors.
Which Holiday Activities do you Need & Love?
So many ideas, right?
Your head may be spinning, but only put the holiday activities on your list that you want to do.
If you’re looking for something special to do this year, consider checking out one of the many Christmas productions around the country. From The Nutcracker to A Christmas Carol, there’s something for everyone.
And don’t forget about all of the amazing light displays – they’re definitely worth seeing!
It’s the most wonderful time of year, so you might as well make your family traditions more exciting by adding some creative tasks to what is normally a boring list of chores.
What are some of your favorite Christmas traditions? I’d love to hear about them!
For more inspiration, check out our Christmas Pinterest board.
Merry Christmas!
Also, it might be time to start thinking about what do I want for Christmas?
Know someone else that needs this, too? Then, please share!!
Who doesn’t want to make a little extra cash these days? The price of digital cameras is dropping on what seems to be a daily basis. Why not put yours to some use? For the past five years I have been selling royalty-free stock photographs and will share my thoughts, ideas and concepts with you, along with some suggestions for getting started.
What is stock photography? The Wikipedia entry for stock photography states:
Stock photography consists of existing photographs that can be licensed for specific uses. Book publishers, specialty publishers, magazines, advertising agencies, filmmakers, web designers, graphic artists, interior decor firms, corporate creative groups, and other entities utilize stock photography to fulfill the needs of their creative assignments. By using stock photography instead of hiring a photographer to perform on location shooting, customers can save valuable time and stay on budget.
Everything for commercial use these days has some sort of marketing on it; often this marketing takes the form of a photograph. Take a look at your cereal box — there’s a photo on it. Flip through any magazine — someone took the photographs in all those ads. This website often uses images to help describe a story better — someone had to take those. You cannot legally just right-click and save an image from the Internet and use it on a website, print article or magazine. A marketing firm based in Florida may need a photograph of snow-capped mountains. They obviously don’t have mountains in Florida, so they turn to stock photos, which they can purchase at a reasonable rate. The photographer makes a percentage of that image sale.
How can you start making money? This is the first question everyone asks, but there are some precursor questions that should be answered first:
Do you have the time to invest (perhaps as much as four hours per week)?
Can you capture images other then your immediate surroundings?
Will friends and family be willing to sign model release forms?
Is your camera of high enough quality?
Do you know how to properly edit a photograph?
Will you be able to associate keywords to go along with your photo?
Will you be willing to invest more into gear and cameras?
Can you be objective with yourself?
How well do you handle rejection?
Are you willing to invest time to learn continually?
Do you have the time to invest? Editing photos takes time. So does giving them full descriptions and uploading full-sized images. This is aside from actually taking photographs. When I was doing this on a regular basis, I would often spend an hour or more a day just editing photographs, another two hours to upload and catalog them.
Can you capture images other then your immediate surroundings? In order to sell a photograph, you need to give the buyer something they can’t grab themselves. This rules out most of your everyday surroundings, including everything at your desk, kitchen, living room, even your sock drawer. Thousands of these images exist in stock catalogs already.
Will friends and family be willing to sign model release forms? One of the best ways to sell a photograph is to have somebody in it. In order to do this, the models in the images need to sign off their rights to collect any money for them. Often times, I will do a trade with friends and family. I’ll agree to bring my camera to so-and-so’s birthday party and photograph the event for them if one or three agree to give me an hour or two time around the house, at the park or wherever to pose and let me photograph them, and sign the release. This works out well for both parties.
Is your camera of high enough quality? Many online stock sites now have minimum requirements for files they will accept. Generally speaking, the baseline where you want to start is a 5mp camera. A digital SLR camera, one that you can change lenses on, is much more desirable as they produce better quality images. More megapixels doesn’t always mean better images; the quality of the sensor has a lot to do with it.
Do you know how to properly edit a photograph? Photographs can often be improved by making adjustments to them, such as:
Cropping
Color
Density
Shadow detail
Sharpening
A basic photo-editing program will be needed, as every image that comes out of your camera can always be tweaked a bit for better quality. I’ve been using Photoshop for years now, current version is CS2, but Photoshop Elements is acceptable. You might also like the GIMP, which is free for both Windows and Mac users. Any corporate name will also need to be edited out of an image. Logos, text or other copyrighted material cannot appear in a photograph that will be sold as stock.
Will you be able to associate keywords to go along with your photo? Stock photography sites use their own internal search engines; you find an image you’re looking for by putting in descriptive words. Nothing magical about that. It is when you need to convey more then what is physically in an image. You could associate 50 or more keywords with an image. This light bulb is an example of a stock photograph. If this were my photo for sale, some of the keywords I would associate with it are:
Light bulb
Glass
Red
Clear
Transparent
Illuminate
Idea
Copy space
As you can see, some are descriptive of the actual item, others are there as adjectives. The key wording “game” is directly related to how well people will be able to find your images. This will be covered in greater detail later on.
Will you be willing to invest more into gear and cameras? As you progress, you will find yourself needing better cameras and lenses, more gear such as studio lights, tripods and just spending more money. You may not make the money back for several months, maybe not at all, but would you be willing to make a small investment? I found myself shooting three cameras and in a studio paying rent for it at one point. It was very much worth it.
Can you be objective with yourself? Self-editing can be a photographer’s biggest downfall. I don’t mean editing the photographs in an image editor like Photoshop — I’m referring to selecting the best possible image from a group. The photographer who took the above light bulb photo more then likely has a dozen of them at slightly different angles; however, she chose what she thought would be the best example of that group. Uploading 15 photos of essentially the same photo all at slightly different angles doesn’t give buyers more choices, it confuses them and often leaves them second-guessing. Only show and sell your very best of the best images. I’ve found myself doing shoots with models with 400 or more shots from a two-hour session. When it was all said and done, I had about twenty I was really happy with and that’s all anyone ever saw.
How well do you handle rejection? More then likely you are going to get images rejected. How often? Don’t be surprised if 50% or more of what you submit gets rejected. Don’t let this get you down, use it as a tool to help build upon your growing portfolio.
Are you willing to invest time to learn continually? Whether you are new to photography or have been shooting for years, learning is part of the game. I’m on several different forums on a regular basis chatting with other photographers about how to shoot, tips, techniques and most importantly, critiques. Books and now DVDs are becoming increasingly more important tools to mastering different techniques as well and I often reference them prior to doing a shoot.
Conclusion As this series continues at my own site, I will be writing articles on specific topics, giving examples and suggesting ideas to really maximize a hobby into a source of income. Your comments and suggestions are welcome.
Much of this information is applicable to making money from any hobby. This article originally appeared at Randomn3ss in a slightly different format. The second part of this series gives a brief overview of a photographer’s workflow. The third part discusses types of images that sell well.
Return on Equity vs. Return on Assets: Key Differences
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Return on equity (ROE) and return on assets (ROA) determine how efficient a company can be at generating profits. Both formulas that can help investors determine how good a company is at turning a profit. Let’s take a look at both metrics, how to use them, how they differ and what their limitations are.
If you’d like personalize investment advice, consider working with a financial advisor.
Return on Equity Definition
According to the Corporate Finance Institute, return on equity (ROE) is a percentage that expresses a company’s annual income relative to its total shareholder equity. The equation for ROE is the company’s net income for the year divided by its shareholders’ equity. ROE is a great way to calculate a company’s profitability—put simply, how good it is at making money.
A company’s net income is the amount of money it brings in after paying all its financial obligations, such as taxes and operating expenses. Shareholder equity is the sum of a company’s net worth. The idea is that if the company shut down and liquidated its assets and paid off its debts immediately, the shareholder equity would be the remaining amount that would be distributed to those who owned stock in that company.
Here’s a simplistic example to illustrate how ROE works: Let’s say Company A has a net income of $10 million. Meanwhile, their total stockholder equity—the amount the company would pay to stockholders if it liquidated all its assets and paid off its debts—is $80 million. The ROE for Company A would be 12.5%.
Thus, ROE can be a valuable metric to use as an investor. If you’re considering investing in a company, you can look at their ROE over the years to see if its growing or diminishing, which can point to whether leadership is making wise decisions that benefit shareholders. You can also compare that company’s ROE to other companies in the sector to see how their financial performance matches up.
Return on Assets Definition
Return on assets (ROA) is a different equation but serves a similar purpose: determining how effective a company is at utilizing their assets to create more value. The equation used for ROA is taking the company’s net income and dividing it by their total assets.
A company’s total assets include everything that company owns that can generate money. That might be plain old cash, inventory, intellectual property such as patents, real estate and more. If they could sell it for a profit, that’s an asset.
Let’s take a look at what a simple example of ROA might look like. Let’s say Company B has a net income of $5 million and owns $25 million in assets. When you do the math, you see that Company B has an ROA of 20%. That means for every dollar of assets, the company generates 20 cents in profit.
ROA can be helpful because it shows how a company is using its current investments to generate profits. Higher percentages mean the company is better at its assets to make more money; lower percentages mean that its worse at it.
How ROE and ROA Differ
If both of these measurements sound pretty similar to you, you’re not wrong. They do have a lot in common — both in what they measure and the purpose they serve. But they do have some important differences.
The single biggest difference between ROA and ROE is that ROA takes into account a company’s debt, while ROE doesn’t. If a company doesn’t have any debt, these two numbers would be the same for that company. Debt can add new assets to a company’s balance sheet, but of course the company also now has a financial obligation to its creditor.
Companies can use debt to artificially boost their ROE. Companies can generate profits by borrowing large amounts of money and using that to drive greater income. Of course, that money isn’t free and a company with too much debt isn’t healthy. Make sure you examine both of these metrics rather than just relying on ROE.
How to Use These Metrics
It’s important to know that there are some limitations to these metrics. Investors should not make decisions based on any one number. Any one number may not be representative of the company as a whole, and there are many ways that numbers can be manipulated by unethical accounting methods.
ROE particularly can be manipulated due to the fact it’s not impacted by how a company is leveraged—that is, how much debt it has. As mentioned above, company can borrow extensively to boost profits and artificially inflate their ROE. Stock buybacks can have a similar effect. Make sure that you’re taking a look at the company’s entire balance sheet and wider strategy before making any investment decisions.
And you may be asking: How will I know whether a certain percentage is “good?” For ROA, over 5% is good and over 20% is great. For ROE, 15-20% is considered good — in 2022, S&P 500 companies averaged a ROE of just over 21%. However, these standards can differ greatly between sectors and industries.
The Bottom Line
ROE and ROA can both extremely useful metrics for investors determining the financial health of a company. These formulas can help you determine whether a company is using their assets in a productive and efficient way—and thus, whether or not you should invest in them.
Tips for Investing
Investing isn’t always easy to get into, especially for beginners. But you can get personalized, detailed financial advice from a profession to help you build an investment strategy for your current and future life. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
One of the most important lessons in investing is to maintain a diverse portfolio. A variety of investments in different sectors, industries, locations and risk levels can help you create a portfolio that minimizes risk while still generating strong profits. Use SmartAsset’s asset allocation calculator to help determine a well-diversified portfolio that works for you.
Insurance companies are always trying to develop new insurance products to meet their clients’ needs. While the idea of life insurance started out as a simple concept, through the years, it has evolved into much more. There are dozens of different kinds of insurance plans.
Indexed Universal Life
One new product they’ve recently developed is indexed universal life insurance, and there are pros and cons to indexed universal life insurance.
These policies are interesting because they allow you to use your life insurance funds to invest in the stock market. Additionally, they can be one of the most confusing types of policies that you can purchase. There is a lot of confusing surrounding these plans and the benefits that they offer. It’s vital that you understand all of the options and the advantages of each kind of plans. We want to help you understand indexed universal life insurance plans.
Is this policy a good fit for you?
Let’s take a look…..
What Is Indexed Universal Life Insurance?
Indexed universal life insurance is a combination of other types of life insurance. First off it is a type of permanent life insurance. This means that it’s a policy that’s meant to last your entire life; it doesn’t eventually expire like term insurance. Indexed universal life also builds up cash value, which is money you can take out and spend while you are alive.
Since indexed universal life insurance is a type of universal policy, the amount you need to pay each month isn’t fixed.
You get to decide how much you can pay each month, usually with a minimum requirement. However, if you don’t pay enough into your policy, it could run eventually run out of money and expire.
How Do The Stock Investments Work?
What is unique about indexed universal life insurance is that it invests your cash value in the stock market, using a market index like the S&P 500. This means your cash value growth is based on how well the stock market performs. If the market goes up, you can earn more money with these plans. However, if the market goes down, you won’t earn anything.
The good thing about these policies is that they can’t lose money.
If the stock market crashes, your cash value won’t go down; it just won’t grow that year.
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How Does Indexed Universal Life Insurance Compare To Other Policies?
Since indexed universal life insurance is a permanent policy, it is much more expensive than term insurance. You’d likely pay about ten times as much per month for the same death benefit. If you are looking for life insurance at the lowest possible cost and don’t mind that it expires, term is a better choice. If you want to permanent coverage or want to combine your life insurance with an investment plan, indexed universal life insurance could be a better choice.
Compared to whole life and universal life, indexed universal life insurance costs about the same per month. The main difference is how these accounts manage your cash value.
Whole life has a guaranteed, annual return so you know exactly how much this account earns. Universal life earns an interest rate that can change depending on the market interest rate. This goes up and down, but at least you earn something each year.
Indexed universal life has the most variation since your return is based on the stock market. When the market is good, you’ll earn the most money with these policies. When the market is bad though, you won’t earn any money with these policies.
What Are The Advantages Of Indexed Universal Life Insurance?
Indexed universal life insurance works best as a combination of your retirement plan and life insurance. As a stock investment, these plans can’t lose money which can be very appealing to some investors. This gives you a way to put money in the market without the worry of dealing with market losses.
In addition, indexed universal life policies can offer tax-free growth on your investment gains. As long as you keep your cash value in the life insurance, you don’t need to pay taxes on your stock income. If you take money out as a loan, you also don’t have to pay taxes on your investment gains. This means you can invest with this account and never have to pay taxes on your stocks.
Lastly, these policies give permanent insurance coverage so you never have to worry about your policy expiring; provided you make your monthly premium payments.
What Are The Disadvantages Of Indexed Universal Life Insurance?
The problem with indexed universal life insurance policies is that they can be a bit expensive. Between paying for the insurance coverage, administration expenses, and insurance agent commissions, it could take off about 2-3% of the return you would have gotten by just investing in the stock market.
Some policies also cap your gains. This is the trade-off for not having investment losses. You lose less when the market is bad, but earn less when the market is good.
The other problem with indexed universal life insurance is that to buy a policy, you need to meet an insurance company’s minimum health standards. If your health is poor, your policy will be more expensive and some people can’t qualify at all.
Suitability of Indexed Universal Life Insurance
These policies work best if you need permanent life insurance and want to invest your cash value in the stock market. These policies don’t tend to earn as much as a regular brokerage account so they aren’t as attractive as a pure investment. However, the fact that you can’t lose money with indexed universal life is attractive for investors that don’t like risk. If you can’t stand losing money and don’t mind a lower total return, these policies could also be appropriate.