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Apache is functioning normally

May 27, 2023 by Brett Tams

A fraud alert is a temporary alarm system set up on your credit account that will inform you if there are any changes in your account. A credit freeze is a freeze placed on your credit file that blocks lenders from viewing your report without authorization.

The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.

Fraud alerts and credit freezes are two methods for protecting yourself from identity theft. But they’re not the same thing, and if you understand the pros and cons of each, you can decide which is best suited to your needs. A fraud alert requires creditors to verify your identity before allowing new credit accounts to be opened, whereas a credit freeze stops new credit accounts from being opened in your name. 

So, what’s the right choice for you in the fraud alert vs. credit freeze debate? Keep reading for a complete breakdown of both options. 

What is a fraud alert?

A fraud alert is when you put an added layer of security on your credit report that forces all lenders and financial institutions to verify your identify before approving a new credit account being opened. Typically, the creditor will call you whenever a new account request is initiated to confirm you’re the one asking for the account. 

People typically use a fraud alert if they’ve been a victim of identity fraud or if they suspect their information has been compromised. While a fraud alert adds some protection to your account, it’s not a guarantee, and there are still ways scam artists can get around the identity check. 

There are three main types of fraud alerts:

  • Standard fraud alert: A standard fraud alert typically lasts one year but can be renewed as many times as needed. Individuals don’t need to be victims of identity theft to activate this kind of fraud alert on their accounts. 
  • Extended fraud alert: An extended fraud alert lasts for seven years. This option is only available to those who’ve been victims of identity theft. To qualify, you have to file a report with the police or the FTC’s IdentityTheft.gov website. In addition to verifying your identity with each new account request, the extended fraud alert will remove you from marketing lists for credit and insurance offers for the next five years. However, if you want to remain on this list, you can choose to do so. 
  • Active-duty fraud alert: The active-duty fraud alert is only for military service members. When individuals go on active duty assignments, they can apply for this type of fraud alert to protect their accounts while they’re abroad. The alert typically lasts one year but can be renewed as long as the individual is deployed. In addition, they’ll be removed from marketing lists for two years unless they request otherwise. 

Fraud alerts are self-imposed and free to add to your account. 

How do you place a fraud alert?

You can place a fraud alert on your account by reaching out to one of the three major credit bureaus—Experian®, Equifax®, or TransUnion®. After you notify one bureau, it’s their responsibility to inform the others. You can set up a fraud alert online or contact any of the bureaus by phone with this request. You’ll need to submit your proof of identity to successfully set up the fraud alert. 

How do you remove a fraud alert?

Fraud alerts are automatically lifted from your account after the applicable deadline (one year for standard and active-duty alerts and seven years for extended alerts). However, if you want to remove the fraud alert earlier, you can. You’ll need to contact each credit bureau separately and request that the fraud alert be lifted. As was the case with setting up the alert, you’ll need to provide proof of your identity to remove the alert from your account. 

What is a credit freeze?

A credit freeze offers even more protection than a fraud alert. Essentially, a credit freeze stops anyone from accessing your credit report. This effectively prevents anyone from being able to open a new account under your name, as creditors need to review your report before approving a new application. You’ll be able to open new accounts only when you “thaw” or “unfreeze” your account.

How do you freeze your credit?

To freeze your credit, you’ll have to contact each of the three major credit bureaus separately. Note that fees are usually associated with a credit freeze, with the exact amount varying by state. On average, expect to pay around $10 per bureau for a credit freeze. You can apply for a credit freeze online or via phone for all three bureaus. 

When you’re setting up a credit freeze, you’ll be asked to set up a PIN or password, which can later be used to unfreeze your account. 

How do you unfreeze your credit?

Your report will stay frozen until you choose to “thaw” it. This means that you need to unfreeze your credit before applying for more credit, and this is usually the driving factor that motivates people to thaw their accounts. Often, people want to get a new credit card, loan, or mortgage or apply for a rental lease or some other credit account and need to give the lender access to their credit report. 

To unfreeze your account, you’ll need to contact each of the credit bureaus and provide your PIN. There may be a small fee associated with unfreezing your account with each agency. Once you put in a request to unfreeze your account, the change can take from as little as a few minutes to up to three days. As a result, it’s essential to give yourself plenty of time for the account to thaw before the lender goes to access your report. 

If you lose your PIN, unfreezing your account will still be possible, but it’ll take longer to approve. 

Do fraud alerts or credit freezes affect your credit?

No, fraud alerts and credit freezes don’t affect your credit. In fact, they can protect your credit from identity fraud attempts. Identity fraud is a serious situation that can significantly drag your credit score down and take months to years to clear up on your credit report. 

Which option is right for you? 

Ultimately, each individual needs to decide which option is right for them based on their situation. Some of the popular situations to consider that might call for either a fraud alert or a credit freeze are:

  • You’re in the process of or about to begin getting a mortgage, auto loan, lease, or another account: In this case, you don’t want to go through with a credit freeze, as access to your credit report will be necessary to approve your new application. Instead, a fraud alert should be sufficient to protect you. 
  • You’ve been a recent victim of identity theft or know your information has been compromised: If you’re seriously concerned about identity theft, you should likely opt for a credit freeze, as it’s more protective.
  • If you know you don’t need new credit for a while: Older people often are settled with all their credit needs—a mortgage, car loan, credit cards, etc. Therefore, they can comfortably assume they won’t be applying for new credit anytime soon and might feel more protected with a credit freeze. 

Note that you can have both hypothetically, although it might be somewhat redundant. Generally, most experts recommend choosing one or the other. 

Even with a credit freeze or a fraud alert on your account, it’s still crucial for you to check for fraudulent charges on your cards and look for red flags on your credit reports. You never know when something could slip through, and if it does, it’s crucial to act quickly. The longer something remains on your credit report, the longer it will impact your credit and be harder to rectify. 

If you don’t have the time or desire to check your credit reports, you can take advantage of the services provided by Lexington Law Firm. Our credit consultants will help you review your credit reports and file disputes if needed. Removing even one error from your credit report could result in a credit score increase. Get started today.

Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.

Reviewed By

Paola Bergauer

Associate Attorney

Paola Bergauer was born in San Jose, California then moved with her family to Hawaii and later Arizona.

In 2012 she earned a Bachelor’s degree in both Psychology and Political Science. In 2014 she graduated from Arizona Summit Law School earning her Juris Doctor. During law school, she had the opportunity to participate in externships where she was able to assist in the representation of clients who were pleading asylum in front of Immigration Court. Paola was also a senior staff editor in her law school’s Law Review. Prior to joining Lexington Law, Paola has worked in Immigration, Criminal Defense, and Personal Injury. Paola is licensed to practice in Arizona and is an Associate Attorney in the Phoenix office.

Source: lexingtonlaw.com

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Apache is functioning normally

May 26, 2023 by Brett Tams

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.


When you are trying to tighten down the hatches on your spending, you are doing everything possible to stick to your budget.

You are determined to stick to your budget this time around. But, you always hear that budgeting can be hard.

Well, here are some quick budgeting tips that will make sure to stick to your budget.

As most new budgeters learn, they struggle to stick to a budget for their monthly expenses. It is a natural process everyone goes through.

Budget, if you are looking for an easy button, then learn which payment type is best if you are trying to stick to a budget.

Especially if you spend a lot of time on social media, studies have shown you are more likely to overspend. So, you must learn which payment type will have you stick to a budget.

Then, you may be wondering and wanting help deciding which payment type is best for you.

Which payment types is best if you are trying to stick to a budget? Do you want to stick to a budget but find it difficult in choosing which of the many options available including budget debit cards? This guide will help you decide among the different types of payments on the market.

The Optimal Solution Payment Type Solution

The most efficient payment type is something that is instantaneous and there are no fees associated with the transaction.

  • Cash is the most efficient payment type: Cash payments are usually the most efficient and convenient way to pay for goods or services.
  • Credit cards can be a less favorable option: Credit cards tend to have high-interest rates and can lead to financial disaster if used irresponsibly.
  • Debit cards are a great way to keep your spending within your budget: Debit cards should be considered a top priority for budgeting because they keep you within your spending limits.
  • Developing a budget will help you avoid financial disaster: A budget helps you stay organized and make informed decisions about which payment method works best for you.

Today, there are so many options on which payment type to use in today’s online world.

1. Cash

Cash is a payment type that can be used to reduce debt spending. It is versatile and can be used for a variety of expenses, such as groceries, medical bills, and gym memberships.

Cash is an excellent choice for people just starting to budget and save.

It is more restrained than credit or debit cards. The envelope method of cash budgeting can be used to train your brain to reduce spending. Cash is the most traditional payment method and has the fewest drawbacks. However, you need a safe place to store your cash, and some stores may not accept it.

Benefits of Cash:

  • Cash is an excellent payment type when your financial goals are to reduce debt spending.
  • Cash is a finite payment method that prevents you from overspending.
  • You have a set amount of money to spend each month, so there’s no chance of overspending.
  • Easy to track with the envelope method: Utilizing the envelope method ensures that you are tracking your spending (i.e groceries, gas, medical bills) and making sure that you aren’t overspending.
  • Cash is a quick and easy way to pay for goods and services.
  • No Fees. No maintenance fees or interest rates as credit cards. Cash is just plain cash – printed paper of currency.
  • You can avoid high fees associated with card transactions: There are no associated fees when paying with cash, making it the cheapest option overall.
  • Cash discounts may be available. Since you are paying with cash many small businesses offer a cash discount of 2-5%.
  • You can use cash at any store: No need to carry around extra cards or checks.
  • It’s easy to get cash: You can easily get cash and make extra cash.
  • There’s no need for bank account details: No need for bank account details means you’re free from identity theft risks and other inconveniences that come with having a bank account.
  • Cash allows you to skirt some financial regulations: Because cash payments don’t fall under the purview of many financial regulations, businesses can take advantage of loopholes in the law that allow them to charge higher interest rates on loans or engage in shady business practices. (highly recommended to stay above book)

Cons of Cash:

  • Possibility of losing or stolen cash: Keep your cash in a safe place!
  • You need a safe place to store your money: Another disadvantage of using cash is that you may need a safe place in which to keep it – some stores don’t accept it as a payment method.

Why Choose Cash?

  • Total control over your money, so there’s little chance of unexpectedly running out of funds.
  • Cash is a great way to stay on budget, as you can easily track your spending and see where you need to cut back.
  • Unpleasant to spend money with cash, which can help train your brain to reduce spending.
  • Cash is a quick and easy way to pay: Using cash eliminates the need for banks, credit cards, or other forms of payment.

Verdict: Paying with cash is the best method for budgeting and saving.

Overall, cash is a great payment type when it comes to budgeting. You can immediately see how much money you’ve spent and what needs to be cut back.

You can’t make impulsive buying decisions with debit cards or credit cards.

With a finite amount you can spend, cash is an excellent choice to prevent overspending. According to research, paying with cash can feel unpleasant, which can train your brain to reduce spending as much as possible.

2. Credit cards

Credit cards offer a number of benefits, including convenience, cash back, and the ability to make large purchases or pay bills in case of emergency. However, credit cards also come with credit card debt and can lead to overspending and financial problems if not used carefully.

For many, credit cards are the easiest way to blow your budget because you don’t have control over how much money you spend.

It is possible to overspend with credit cards if you are not mindful of what you charge.

On the flip side, this is a preferred method as many credit cards also offer rewards programs that give you cash back or points for purchases. If you make the conscious decision to use credit cards, you must make payments on time to avoid penalties.

Benefits of Credit Cards

  • Credit cards are convenient: Convenient to use and don’t have to worry about losing cash.
  • Use a credit card if you are disciplined and have strict spending habits: If you are disciplined and have strict spending habits, then using a credit card can work well for budgeting purposes.
  • Flexibility on larger purchases: Some benefits that come with having a credit card include more cash flow as well as being able to make larger purchases.
  • Credit cards provide support in times of crisis: Many credit cards offer extended services that can help like 24-hour fraud protection, lost wallet services, traveler’s insurance, and many other benefits – check each issuer for details.
  • $0 Liability on Unauthorized charges: Your credit card company will not be held responsible for any charges that were not authorized by you. This means that if you did not authorize a charge in person, online, or otherwise, you will not be responsible for it.
  • Fraud protection: Check your credit card issuer, but many offer fraud protection.
  • New card introductory APR is helpful to pay down debt: The introductory APR for the new card may not last long.
  • Payments on balance transfer should be manageable: Make sure that the payments on your balance transfer are manageable.
  • Points: You can accrue points along with your spending which can be a great perk.
  • Credit card interest rates are significantly lower than payday loans: Interest rates on credit cards are usually much lower than payday loans.
  • Due Date is After your statement closes. Since your bill cycle is at least another 21 days between the closing date for your statement and the due date, it gives you flexibility. Personally, I still account for the credit card bill in the same month that it was accrued.

Cons of Credit Cards

  • Potential for credit card debt: When using a credit card, be aware of your credit limit and the interest rate that you will have to pay on your debt. Also one of the categories of debt.
  • Credit limit often leads people to spend money: The credit limit often leads people to spend money by giving them a false sense of security, when they should stick to a budget and pay attention to their credit card statement and the billing cycle.
  • Credit card overspending can lead to debt: Consider the purchase if it is essential or delay it if possible.
  • Ability to easily purchase something you cannot afford. Buying something that you don’t have the money saved up for will cost you interest fees associated and maybe even with a credit card balance transfer.
  • There are a number of fees associated with a balance transfer: Transfer fee, interest on new purchases charged to the card.
  • Your introductory APR may not be valid if you make too many payments late: If you fall more than 60 days behind on payments your introductory APR might be canceled and you may face higher interest rates.
  • Credit score can suffer from debt: When you carry a credit card balance or don’t pay your monthly bills on time, you will lower your credit score.
  • Avoid carrying a balance: Pay your statement in full each month to avoid paying interest and maximize your grace period.

Key Takeaways on Credit Cards

  • Make sure to pay attention to the dates: Don’t spend more than you can afford, and make sure you’re making your minimum monthly payments on time so that your debt doesn’t increase over time.
  • A credit card can be used for budgeting only if you’re very disciplined: If you know that overspending is NOT an issue and you pay the credit card’s monthly balance in full, then using a credit card is fine.
  • Credit card transactions usually take several days to register in the feedback system: Something to look out for!
  • You can step back into debit cards or cash if needed: If credit cards are not for you, there are other options available such as debit cards or cash

3. Debit cards

Debit cards are a good option if you want to stick to a budget because the predetermined amount of funds can help you stay within your means. Additionally, debit cards are more convenient than cash and just as accepted as credit cards in most places.

A debit card works more similarly to cash than to credit cards.

They provide an easier way to track your spending and avoid having to carry a lot of cash.

Pros of Debit Cards:

  • No Need to Carry Cash: A debit card is better than cash because you don’t have to carry a lot of paper money and change around, and they’re also safer.
  • Debit cards are faster and easier to use: Debit cards work just like credit cards – withdrawing cash, making purchases, and paying bills – but they are linked directly to your bank account, so there is no need to carry around a separate cash envelope wallet or purse for them.
  • A debit card is a good option if you want to stick to a budget: Debit cards come with a predetermined amount of funds that you can spend from your bank account just like cash.
  • Tracking payments is easy with debit cards: Your debit payments will appear on your issuer’s dashboard, which you can monitor anytime from any location.
  • Convenience: Debit cards are more convenient to use and faster than needing to write a check or carry around cash. Plus they don’t add to your debt.
  • Shopping online is easy. You can use your debit card to make online purchases with your bank account, and digital banking tools make tracking your spending easy.
  • Points: Some debit cardholders can earn points for spending on their cards, which can be redeemable for rewards such as cash back or gift cards. This is new to compete with credit cards.
  • Fraud protection is typically offered for free with most debit cards—meaning if your card is stolen or used without your permission, you can get your money back.
  • No impact on your credit report. When you use a debit card, the funds are actually withdrawn from checking or savings accounts so there is no credit reporting occurring.

Cons of Debit Cards:

  • An overdraft on a debit card can happen when a purchase exceeds the amount of money in the checking account, leading to overdraft fees.
  • Funds on hold with fraudulent charges. If your account gets hacked, your losses will be limited since most banks protect their users against fraudulent charges and online purchases with their accounts. However, those funds will be held while they investigate and you may be liable for $50.
  • No chance to improve your credit score. Since you are not borrowing money, you are unable to improve your credit score.

Debit cards are a great way to keep your spending within your budget and avoid overspending which can lead to many detrimental issues.

Regardless of the overdraft fee, debit cards are still better than cash because they’re safer and easier to carry around.

4. Checks

Checks… do people still write checks? Why yes they do!

Checks offer a few benefits as a payment method, even though they are slowly being replaced by more modern options.

This can help you keep track of your spending and make sure you do not overspend. Additionally, if you ever need to dispute a charge, having a check can be helpful in proving what you paid for.

What is a check?

A check is a written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer from the check writer’s account. The date is usually written in month/day/year format. The signature of the check writer is usually on the line below “Pay to the order of.”

There are three main types of checks:

  • A cashier’s check is a check guaranteed by a bank, drawn on the bank’s own funds, and signed by a cashier.
  • A certified check is a personal check for which the bank has verified that there are sufficient funds to cover the payment.
  • A personal check is one that you write yourself and that is not guaranteed by the bank.

Pros of Checks

  • Checks are still a payment option: Checks are one of the traditional payment methods, but it is slowly dying out because of modernization.
  • Physical written record. It can be helpful to have physical copies of checks in addition to digital records through the bank.
  • You need to make both digital and physical copies of the check: Save check stubs but also transfer the information to a budgeting system.

Cons of Checks

  • Saving check stubs is helpful, but you still need to transfer the information to a budgeting system: Useful for tracking spending, but you’ll likely want more detailed records than just check stubs.
  • Not as convenient as credit or debit cards.

5. Apple Pay or Apple Cash

Apple Pay is easy to use and convenient since you only need to connect your smartphone to your cards and bank accounts via the app.

It is easy to use since you just hold your phone up to the reader and wait for the payment screen to appear.

You can even get cash back with apple pay.

Pros of Apple Pay:

  • Apple Pay is easy to use and convenient: You only need to connect your iPhone to your cards and bank accounts via the app.
  • You don’t need to carry any extra cards or cash: No need for additional cards or cash when you’re out and about
  • You can use Apple Pay on different devices: You can use Apple Pay on your iPhone, iPad, and Mac.
  • Transactions are secure: Your transactions are secured with Touch ID or a passcode.
  • Set up Spending Limits for each user. This way you can make sure you (or others with authorized access) are not spending more than you intended. Learn how.
  • Protection of Data during transactions. Your actual credit card number is changed to a different digital number, which allows limits your card number’s exposure.

Cons of Apple Pay:

  • Not widely accepted (yet). This method of payment is 100 percent guaranteed. While many stores offer apple pay, not all do quite yet.
  • The same rules apply if you load apple pay with a debit or credit card drawbacks include late fees, interest rates, and overspending: Keep that in mind when choosing Apple Pay as your payment method.

6. Mobile wallets like Google Pay, Samsung Pay, Venmo, or Zelle

Mobile wallets are digital payment systems that allow you to pay for items with your smartphone. Many people find mobile wallets are very convenient and becoming a traditional method of payment (such as credit cards).

With mobile wallets, you are making digital payments without having to carry around cash or cards using just your smartphone.

Mobile wallets are easy to use and provide instant payment convenience, making them perfect for shopping online.

Pros of Mobile Wallets:

  • Mobile wallets use credit cards and debit cards: Connect your smartphone to your bank accounts and use it for digital payments.
  • Mobile wallets are easy to use and convenient: Instant payment convenience makes them perfect for shopping online as well.
  • No need for cash or cards: No need for cash or cards.
  • Strong secuirity features provide privacy and security features that ensure your personal information is safe from data breaches and unwanted charges.
  • You can make purchases without having to show your identification: You can make purchases without having to show your identification.
  • Additional Layer of Security. Additionally, mobile wallet data is protected with verification, such as fingerprints.

Cons of Mobile Wallets:

  • With Zelle and Venmo, it is easy to send money to the wrong person or add an extra zero and send more money from planned. More often than not, it is difficult to recover your money.
  • You need to be disciplined when using a mobile wallet: Pay attention to late fees and interest rates, as well as the amount you spend in a month.

7. Prepaid Cards or Gift Cards

A prepaid card or a gift card could be right for you. The advantage of these is the mere fact that you reached the limit is enough to deter overspending.

It can make you think twice about whether you need to purchase an item or not.

Pros of Prepaid Cards and Gift Cards

  • Easy to use: Prepaid and gift cards are easy to use and manage your finances with.
  • The mere fact that you reached the limit is enough to deter overspending: It can make you think twice about whether you need to purchase an item or not.
  • No strings attached: No need to worry about any fees associated with the prepaid card once activated.
  • Privacy: The prepaid card does not track your spending or use any personally identifiable information.
  • Credit Score Doesn’t Matter: Your credit score does not matter when obtaining a prepaid card.

Cons of Prepaid Cards or Gift Cards

  • Losing a prepaid card is not a fun experience. Contact the prepaid card issuer right away to protect the funds on the prepaid card.
  • Fraud protection: Consider whether your prepaid card issuer offers any theft or fraud protection, as not all providers offer this feature.
  • Prepaid cards have limits on how much money you can load onto them, which can be frustrating if you need to make a large purchase.

8. PayPal

PayPal is a very convenient way to pay for items online or in person. It is widely accepted and used by many people.

PayPal is a digital payment service that offers convenience and ease of use. You can use them to send money to people or pay for online purchases.

However, because these services can only be used online, they should not be relied on as your sole method of budgeting and tracking expenses. Instead, consider Paypal in combination with another budgeting tool, like a spreadsheet or app, to get a fuller picture of your spending.

Pros of PayPal:

  • PayPal is one of the most popular online payment methods: Widely accepted and used by many people.
  • You can use them to send money to people or pay for online purchases: Help you review your spending prior to purchase.

Cons of Paypal:

  • Easy Target for phishing scams. A phishing scam is when someone tries to trick you into giving them your personal information, like your password or credit card number. They might do this by sending you an email that looks like it’s from PayPal, but it’s not. Or they might create a fake website that looks like PayPal. If you enter your information on these sites, the scammers can then use your account to make purchases or send money to themselves.
  • Reputation for poor customer service. This is evident in their customer service ratings, which are some of the lowest in the industry. The majority of complaints against PayPal revolve around poor service received when asking for assistance with fund freezes and account holds.

9. Cryptocurrency (ie: Bitcoin)

Cryptocurrencies offer a new and innovative way of handling payments. They’re not yet widely accepted, so there’s potential for businesses to get in on the ground floor with this new technology.

However, because cryptocurrencies are so new, it’s uncertain if they will be regulated or not. This could pose a challenge for businesses down the road.

Pros of Crypto

  • Not subject to the same regulations as traditional currency, which makes them appealing to those who want to avoid government intervention.
  • The valuation of Crypto changes rapidly. If you are smart with crtyple this is a great way to spend your crypto coins.

Cons of Crypto

  • Cryptocurrencies are not accepted everywhere: Cryptocurrencies are not accepted by most organizations yet, which it makes it difficult to use them in day-to-day life.
  • It’s unclear if cryptocurrencies will be regulated: It’s uncertain if cryptocurrencies will be strictly regulated or not. This poses a challenge for those who want to use them as a payment method.
  • Bitcoin and other cryptocurrencies are still in their infancy: Bitcoin and other cryptocurrencies have only been around for a few years, so they may still face challenges in the future.

Here are the most popular budget apps today:

Other Payment Methods:

ACH payments

ACH Payments is an excellent way to pay bills and other financial obligations: You can easily set up a billing cycle for recurring payments, making it safe and convenient.

Fewer people are aware of your transactions when using ACH payments, reducing the chances of fraud or theft.

Key Facts:

  • Fewer people know about your transactions when using ACH payments, reducing the chances of fraud or theft.
  • Your checking account information is not shared or accessed by the system in any way.
  • You can quickly pay bills and other expenses with ACH payment: Financial institutions offer this as part of their deals.
  • When setting up recurring bills with ACH payment, you are aying your bills on time is important for maintaining a good credit score.
  • Pay attention to your check account balances: Make sure you have enough funds in your check account to avoid paying overdraft fees.

Money orders

A money order is a document that orders the payment of a specified amount of money. Money orders are convenient because they can be bought at many locations, including post offices, banks, and convenience stores.

To get a money order, you will need to fill out a form with the payee’s name, the amount of the payment, and your contact information. You will then need to purchase the money order with cash or a debit card.

To cash a money order, you will need to take it to a bank or post office. You will need to show identification and sign the back of the money order. The teller will then give you the cash for the payment.

  • More secure than cash: Money orders are more secure than cash because they don’t require a bank to make the transaction.
  • Less convenient: money orders are less convenient because you must purchase them in person.
  • Able to trace. They are also more secure than cash because they can be traced if lost or stolen.

Wire Transfers

Wire transfers are a more secure way to transfer money than traditional methods like checks and cash. These are sent through the banking system and are usually processed within two business days.

Typically, wire transfers are used when sending and receiving large sums of money (over $10000).

  • More secure than cash: Wire transfers are more secure than cash as the bank verifies there is enough money to make the wire transfer.
  • Fees involved with using a wire transfer. Most institutions charge for handling a wire transfer.

What method of payment is best?

Cash is the most widely accepted form of payment, but debit and credit cards are very popular.

The payment method that is best for you depends on which one helps you to stick to your budget and spend less money. The goal is to be financially stable.

What method is best for sticking to a budget?

Picture of a lady determining what method is best for sticking to a budget

There are several different types of budgeting methods that people use in order to manage their finances. Many people focus on using the 50/30/20 method, in which each percent corresponds to a different category of expenses.

There are plenty of budgeting tools available today to make sure you stick to your budget.

You need to find what works best for you. At the end of the month, you want to spend less than you make. That is the winning combo!

1. Budgeting App

There are many budgeting tools available online, which can be helpful as it can be easier to track your progress and budget over time.

You can use various popular budgeting apps like Quicken, Qube Money, or Simplifi.

These apps can help you track your spending, set goals, and stay on track with your budget.

2. Paper and Pen or Simple Spreadsheet

Some people find that they prefer using a simple spreadsheet or paper budget. This may be due to personal preference or because they find it easier to understand and use.

Additionally, using a paper budget may help you stay more organized as you can physically see where your money is going.

Options to get you started include our own budgeting spreadsheets or using an automated system like Tiller.

3. Envelope budgeting method

The cash envelope system is a good way to stick to a budget because it is rigid and based on envelopes and cash. You can’t get more money until your cash payday. So, this system helps you track your spending and budget better.

However, using only cash can have drawbacks as having large amounts of cash on hand can be risky.

The envelope method gives you a sense of control over your spending and makes it more tedious to write down your transactions. If you find writing down your transactions tedious, the envelope method may be too much for you.

4. Know Your Budget Categories and Track expenses

Tracking expenses is essential to move ahead financially: Knowing what you have spent in each category will help you make better financial decisions.

Be specific with your budgeting categories. Don’t make it too complicated. Always remember to include household items, clothing, and groceries when tracking expenses.

5. Prioritize your Budget Plan

A budget can provide a realistic picture of your finances, help reduce stress related to money matters, and guide you toward achieving your goals.

Creating a budget can help ensure that you are able to meet your financial obligations and still have money left over for savings and other goals. A budget can also help you track your spending so that you can make adjustments if necessary.

  • Make a budget plan: This will help you stay on track and make sure that you are spending your money wisely.
  • You decide where to spend money: A budget helps you set future goals and achieve your financial goals.
  • Creating a budget can help reduce stress: If you tend to get stressed about money matters, creating a budget can give you peace of mind.
  • A budget has other benefits beyond financial ones: If you want to achieve something in life, creating a budget can help guide you in the right direction.
  • See where to cut back spending. You can also look at your past spending habits to see where you can cut back. Sometimes it may be necessary to save more in order to achieve long-term goals, like buying a house or having a wedding. Always be mindful of your budget when making payments and spending money.
  • It’s a three-step process that involves basic math: Making a budget is simple and requires only basic math skills.
  • Stay on track: Making a budget plan will help you stay organized and keep track of your expenses.

A budget plan will help you stay on track and make sure that you are using the best payment type for your budget.

Making a budget is an easy way to save money. By following a few simple steps, you can keep track of your expenses and make sure that you are spending your money wisely.

Which type of payment is best for sticking to a budget?

Picture of a calculator and graphs for which type of payment is best for sticking to a budget?

One of the main pros of using cash as a method of payment is that it is the most efficient way to keep track of your finances. This is because it is very easy to budget when you are only dealing with cash.

However, many people prefer debit or credit cards are the best type of payment. They are more convenient than cash and can help you keep track of your spending. However, if you have a bad credit history or a low credit score, credit cards may not be the best option for you.

  • Cash payments are the most efficient: Most convenient and easiest to keep track with cash envelopes.
  • Credit cards allow you to accrue points along with your spending: These are a great benefit and one that can be a perk if handled well as part of your budgeting process. As long as pay them off in full each month to avoid credit card debt, high-interest rates, and other negative consequences.
  • Debit cards are also a good option for sticking to a budget. They can be used like credit cards but with less risk of debt.
  • Cash-based payments are a newer option and are more reliable: May not have as many negative consequences as other payment methods such as credit cards or loans.

What Not to Use when you are Trying to Stick to a Budget

You need to steer clear of these types of payments if you want to be financially stable person.

Personal loans

Personal loans are a risky way to budget. However, if you need the money for an emergency or unexpected expense, a personal loan can be a lifesaver.

There are many risks to consider and other ways to lower your spending before resorting to a personal loan.

  • Loans can cause budgeting problems: Loans can mess up your budget and make it difficult to stick to spending plans.
  • Taking out a personal loan just for the sake of having money can disrupt your budgeting: Consumers often borrow money in order to pretend they’re doing better financially than they really are.
  • Borrowing money is usually not a good idea: When you borrow money, you may find that you cannot handle seeing low checking account balance, which can lead to deeper debt problems.

Payday Loans

Payday loans are a bad option for someone looking for a long-term solution. They are expensive, and there is a high chance that the person will not be able to pay back the loan.

The interest that is charged is also high, and it can add up quickly.

Write bullet points about what happens with a payday loan

  • Payday loans can trap people in a cycle of debt, as they are often unable to pay back the loan in full on the due date.
  • When someone takes out a payday loan, they are borrowing money from a lender in a short amount of time, usually two or three days.
  • Payday loans are often expensive, with interest rates that can be above 300%.

Debt Consolidation Loans

Debt consolidation can be a good way to manage your debt because it can result in a lower monthly payment and extended payments may impact your financial plan. You can use a debt consolidation calculator to estimate how much debt you can afford before taking out a consolidation loan.

Debt consolidation loans also provide convenience because they have lower interest rates than payday loans. However, be careful when consolidating your debt because it is possible to overspend and lose your introductory APR.

  • You may be able to pay off your debt with one monthly payment: A consolidation loan often results in a much lower monthly payment than all of your previous monthly payments combined.
  • Extended payments may impact your financial plan: Take a look at how these extended payments will impact your financial planning.
  • You can estimate how much debt you can comfortably afford: use this tool – Tally .
  • It is possible to overspend with debt consolidation: If you spend more money than you planned on your day-to-day expenses, this could increase your debt. Consider if the purchase is necessary or if it can be delayed.
  • You may lose your introductory APR: If you fall more than 60 days behind on payments, you will likely lose your introductory APR and may even trigger a penalty interest rate.
  • You need to be careful when transferring a balance: Transferring a balance can also forfeit your grace period and you’ll need to pay interest on new purchases charged to the new card.

What type of payment method is best for sticking to a budget?

Picture of a budget worksheet for what type of payment method is best for sticking to a budget.

There are a variety of payment methods available, and each has its own benefits and drawbacks. It’s important to choose the payment method that’s best suited for your business and budget.

A payment method that allows you to stick to a budget is the best option.

FAQs

There are three main types of payment methods: cash, debit cards, credit cards, and cash-based payments.

The envelope budgeting method is a simple way to create a budget. You will need envelopes and divide your money up into the different categories that you spend money on. You will then put the corresponding amount of money into each envelope. This method can be helpful if you have a hard time sticking to a budget.

The zero-based budgeting method is a more methodical way to create a budget. With this method, you track every penny that you earn and spend. This can help you to see where your money is going and make adjustments accordingly.

A debit card is a plastic card that is linked to a checking account. Customers can spend money by drawing on funds they have already deposited. An overdraft on a debit card can lead to overdraft fees, which have high-interest rates.

A credit card is a plastic card that allows customers to borrow money up to a certain limit in order to purchase items or withdraw cash. Using a credit card can help build credit or improve your credit score.

There are a few different ways to use a credit card. You can use it to check your balance and review your spending history, which can be helpful in staying accountable.

Credit cards also offer online tools which make the analysis of your spending easier which can be helpful in tracking your budget.

Finally, you can use a credit card to rebuild your credit score by using it responsibly and paying off the balance in full each month.

Which payment type can help you stick to a budget?

When it comes to choosing a payment type that will help you stick to a budget, there is no one-size-fits-all solution.

The best payment method for you will depend on your specific needs and preferences.

When you are creating a budget, it is important to consider which payment type will help you stay on budget. Different payment types work better for different people, so it is important to experiment and find the one that works best for you.

As I stated for me, I have learned how to use credit cards to maximize cash back. But, I learned how to budget with cash when first starting.

Please pay attention to your budget and how it changes over time, as different payment types may work better at different stages of your life.

Consequently, I hope that this guide has given you a better understanding of the different payment types available and helped you narrow down your options. There are a variety of payment types that can help you stick to a budget, so it’s important to research each one carefully.

I highly recommend using an app to track your expenses and know where you spend your money. By developing a budget and choosing the right payment type, you can stick to your financial goals.

Know someone else that needs this, too? Then, please share!!

Source: moneybliss.org

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Apache is functioning normally

May 25, 2023 by Brett Tams

For most people contributing to a 401(k) retirement plan at their workplace is the main way they’re investing for the future.

Sometimes those retirement plans are easy to understand, low cost, and offer great options to invest, but other times they’re confusing and complicated.

Blooom is an automated investment advisor and advice engine that can make managing your 401(k) a little bit easier.

Blooom is a robo-advisor for your 401(k).   Let’s take a look at who Blooom is, and what they do.

Blooom History

Blooom was founded in March 2013 in Overland Park, Kansas by three friends, co-founders Chris Costello, Kevin Conard and Randy AufDerHeide.

The idea behind the company was to help give better advice and management for 401(k) plans, for regular people.

The firm’s researchers analyzed close to 90,000 401(k)s, with over $3 billion in total assets, and they found that over 80% of them were managed poorly.

That’s where Blooom decided to step in.

Blooom helps people to manage their employer sponsored retirement plans. They can manage your 401(k), no matter where your plan is held, or who your employer is.

They’ll give you good advice, and manage the 401(k) in your best interest, since they are a fiduciary and are required to by law.

Here’s an overview of the company from the folks at Blooom:

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What Does Blooom Do?

Blooom Review

Blooom ReviewBlooom will automatically manage your 401(k) retirement account for you. It is a robo-advisor that will help you to maximize returns within your company sponsored retirement plan.

If you work for a company that has a 401(k) plan, often the company won’t give you much advice on how to manage your investments, once you’re signed up for a plan.

They basically tell you there’s a plan, that they’ll match your contributions up to a certain level, and give you a login for your account.

Simple enough. But what happens once you start contributing money? Where does that money go, and what should you invest in? What are the expense ratios on the different funds?

If you’re in your 20s and just starting out these concepts can be a bit difficult to grasp, especially if you’re more focused on building a career.

Blooom can step into this knowledge gap and help you to make sure your investments are aligned with your future goals.

They’ll find out some basic information from you like your age, target retirement date and a few other things, and then Blooom will recommend an allocation for your portfolio.

For younger people they’ll typically recommend a 100% stock allocation, and as you age the portfolio will begin to be more heavily weighted towards bonds. In other words, you’ll be taking on more risk in your early earning years, and move towards more stable investments as you age. If you don’t like their recommendation you can opt for a different ratio of stocks to bonds.

Blooom Review - Asset Allocation

Blooom Review - Asset Allocation

Whenever possible Blooom wil select a low cost index fund to help you meet your goals, and if you’re someone who has accidentally selected high cost mutual funds, this could bring some significant savings for you right off the bat. They’re looking to get you into investments that will be low cost, and track the performance of the market.

Based on their algorithm, Blooom will rebalance your portfolio every 90 days to make sure your desired stock to bond ratio is maintained. If you want to adjust your allocations, or target retirement date, you can do that at any time as well.

In addition to managing your 401(k) account, Blooom will allow users to ask financial questions from experts and real advisors. Should you invest or pay extra towards your mortgage?  Should you be worried about market downturns?  Ask them and they’ll be happy to help.

Get Started With A Free 401(k) Checkup

Blooom offers a free 401(k) checkup before you even sign up for their services, no promo code needed.

Blooom Review - 401k Checkup

Blooom Review - 401k Checkup

They’ll take you through a quick questionnaire where they ask you for your name, date of birth and when you expect to retire.

Next, they’ll ask you for an email address and password to secure your account.

Third they’ll confirm that you do in fact have a 401(k), 401(a), 403(b), 457 or TSP account, and ask you to link that account.

Finally they’ll analyze your retirement account, and you’ll see how your account is doing, and what you might be able to do better. It will show you how you can do better with fees, with allocation, and with the diversity within your portfolio.

Blooom Review - Fees assessment

Blooom Review - Fees assessment

Finally it will give you a summary of your 401(k) checkup telling you just how much Blooom can save you, and how they can help.

Blooom Review - 401k checkup summary

Blooom Review - 401k checkup summary

To get started with your  free 401(k) checkup, head on over through our link here:

After Your Free Checkup

After your free 401(k) analysis, if you choose to continue with Blooom within 30 days they’ll adjust the investments in your account so that it aligns with your goals.

the average Blooom client cuts their hidden investment fees by 44%. (Based on Blooom clients‘ median pre-Blooom expense ratios and median post-Blooom expense ratios as of August 5, 2018)

First they’ll check your 401(k) and remove any funds that aren’t worth having. They’ll prioritize index funds, and typically only use actively managed funds to gain investment exposure in an area that you’re light.

Then Blooom will use their algorithm to select the best portfolio based on costs and manager experience.

Any time a change is made, they’ll advise you of the changes, and you’ll get a full break down of what has changed with your investments, how your investments look now and how you can save more.

Finally, every 90 days or so Blooom will check your account for opportunities to rebalance your portfolio. If the investments are out of balance, Blooom will rebalance them. Regular rebalancing can add an additional 0.5% to the annual returns on investment.

What Types Of Accounts Will Blooom Manage?

Blooom only manages employer-sponsored retirement accounts at the current time. That means that you can sign up and use them if you have one of these types of retirement account:

  • 401k
  • 403b
  • 401a
  • 457
  • TSP

IRAs, Roth IRAs and other taxable account types need not apply.

Blooom Security

If you’re concerned about the security of Blooom, and whether or not your retirement accounts are safeguarded, they are.  Here is how they’re protecting your information:

  • 256 bit encryption, bank level security: The website is secured with secure socket layer encryption, and bank level security.  Their servers are secure and encrypted to ensure private online transactions.
  • Third party verification: They take extra measures to ensure you are really who you say you are any time changes are requested.

What Is The Cost To Use Blooom?

Blooom Review - Monthly Cost

Blooom Review - Monthly CostWhat does it cost to use Blooom?

Currently it costs only $10/month to have Blooom manage your 401(k). If you have additional 401(k) accounts to manage under the same login it is an additional $7.50 per account.

Depending on how much you have invested, the fee may be a large percentage of your portfolio, or it could be an extremely reasonable fee.  Let’s look at why that is.

The more you have in your 401(k) account, the better deal Blooom will be for you.  For example, let’s compare Blooom to the fees charged for assets under management by Wealthfront or Betterment. They both charge 0.25% annual fee for assets under management.  On the other hand a human financial advisor will often charge somewhere around 1%.

Let’s say you have $1000 invested in your 401(k) (not very much), then the $10 monthly fee will come out to $120/yr, or a 12% fee.  That’s not going to make much sense for most people.

If you have a larger account, however, say $100,000, the $10/month fee will come out to about a 0.12% fee. At $50,000 it will be a 0.24% fee.

Once you reach a certain level it’s very reasonable and low cost to have your 401(k) fully managed by Blooom. The more you have in your 401(k), the more cost effective it is.

Reasons To Use Blooom

There are a lot of reasons to like Blooom, and to give them a try:

  • They’ll give your 401(k) a free once over: Even before you pay for their service, they’ll analyze your 401(k) for free, and give you some recommendations. If you don’t like the recommendations, don’t sign up.
  • Their service is unique, and helpful: They are one of the only full service 401(k) management services available, and what they’re offering is helpful, and at a reasonable price.
  • Cancel the service at any time: There are no long term management contracts. Just cancel through your blooom account before your next billing cycle and you won’t pay additional fees.
  • Fees are paid directly with credit or debit card: Often investment companies will take their fees directly from your investments, decreasing returns you might gain. Blooom will charge your linked card for the $10 monthly fee.
  • Their analysis will give insight into your plan’s fees, funds: Once they analyze your plan, they’ll give you insights into our investment options in the 401(k) plan that you may not have had before. Things like which funds have the lowest expense ratios.
  • You have access to a real advisor through email and chat: Not only will you get the automated financial advice, you’ll also have access to a real person through email and chat if you have questions. It doesn’t necessarily have to be about your 401(k).

Reasons To Not Use Blooom

There are a few reasons to avoid Blooom.  They may not be for you if:

  • Have a non employer sponsored type retirement account: If you don’t have a  401(k), 401(a), 403(b), 457 or TSP account, you won’t be able to work with Blooom.
  • Don’t agree with their aggressive stock allocations for younger investors: Most investors under the age of 40 receive a stock allocation of 100%. If that’s too aggressive for you this might not be for you.
  • If your account is too small to make the fee worthwhile: If your account is small enough the fee may be too large or a percentage of your assets under management. You’re probably better off managing it yourself for the time being, and working hard to max out your contributions.  Sign up later.

Blooom Is The Low Cost Robo-Advisor For Your 401(k)

Blooom is a low cost automated investment advisor for your 401(k).

Most people will contribute to a 401(k), but aren’t really fully aware of what they’re investing in, or why. If you don’t have the time or the inclination to research your 401(k), it can be like fishing in the dark. Which funds are the best for my situation?

Blooom can step in, and fill in the gap. They have the expertise, knowledge and the technology tools in order to turn your 401(k) around.

They’ll analyze your account for fees, allocations and diversity of investments.  They’ll find ways that you can improve your investments and then help you to implement their suggestions.

In short, they’ll manage your 401(k) and allow you to focus on things that are more important to you.

I would definitely recommend giving Blooom a try!

Get Your Free 401(k) Account Analysis

Blooom

$10/month

Blooom

Rating

9.5/10

Pros

  • Professional account management for 401ks
  • Low cost at a certain account level
  • Work with a variety of providers
  • Live chat and email support
  • No account minimum

Cons

  • Fees high if low account balance
  • Aggressive stock allocations

Blooom Review: The Low Cost Robo-Advisor For Your 401k

Related Posts

Source: biblemoneymatters.com

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Apache is functioning normally

May 25, 2023 by Brett Tams

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The savings offers that appear on this site are from companies from which MoneyCrashers.com receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MoneyCrashers.com does not include all savings companies or all savings offers available in the marketplace.

Years ago, finding a bank meant heading downtown and choosing from whichever options were available there. The Internet dramatically lessened the importance of physical branches and made it possible to bank from anywhere at any time.

Virtually all banks with physical locations have online portals, but a growing number now do the bulk of their business online. Some have ties to community banks and may have physical branches in select regions. Others exist only in the digital realm and have no physical branches.

What follows is a list of the best online banks on the market today.


Best Online Banks of May 2023

These are the best online banks on the market right now.

Each does at least one thing really well, whether it’s offering a potent lineup of budgeting and money management tools or delivering savings and CD rates well above the national average. Our top pick offers the most value for the greatest number of potential customers, in our opinion.

Unless otherwise noted, all the accounts on this list come with FDIC insurance up to $250,000 per account.


Best Overall: American Express® National Bank, Member FDIC

Png Amex Savings Wordmark Fdic Light

The American Express® High Yield Savings Account has a solid yield on all balances with $0 maintenance fees, a $0 minimum opening deposit, and a $0 minimum balance. The current savings yield is 3.90% Annual percentage Yield (APY) as of May 16, 2023.

Want to tie up your money for a while at a higher interest rate? Choose from seven CD options ranging from six months to five years.

CD yields are very good across the board: 3.00% Annual Percentage Yield (APY) on the longest-term product (60 months or 5 years) and 4.25% on the 12-month CD. Early withdrawal penalties are:

  • 90 days’ interest for terms under 12 months
  • 270 days’ interest for terms between 12 and 48 months (four years)
  • 365 days’ interest for terms between 48 and 60 months (five years)
  • 540 days’ interest for terms of 60 months or longer

Additional features:

  • Extensive lineup of personal credit products, including premium credit cards like The Platinum Card® from American Express
  • Move money between up to three external bank accounts in short order
  • 24/7 customer service

Apply Now


Best Credit Union: Alliant Credit Union

Alliant Credit Union

When is an online bank not an online bank? When it’s an online credit union.

There’s no better branchless option than Alliant Credit Union. As a credit union, Alliant exists for its members rather than stockholders so they will always put you first.

Alliant has a comprehensive lineup of checking and savings accounts, like:

  • High-Rate Savings, a high yield savings account for goal-oriented savers (currently 3.10% APY¹)
  • High-Rate Checking, a checking account with competitive interest rates
  • Certificates of Deposit, which help you earn more with set interest rates for a fixed period of time (currently yielding 5.00% APY)
  • Kids Savings, a custodial account that helps you teach sound money management concepts to kids 12 and younger 
  • Teen Checking, a joint account for kids aged 13 to 17 — there when you’re ready to loosen the reins

Additional features:

  • Get access to over 80,000 in-network ATMs with Alliant
  • No monthly service fee with eStatements
  • Low minimum deposit and balance requirements
  • Bank anywhere, anytime with the Alliant mobile app

Sign Up for Alliant Savings

Insured by NCUA

(¹For important additional disclosures, please refer to the corresponding footnote at the Sign Up link directly above.)


Best for High Yields: CIT Bank

Cit Bank Logo

CIT Bank offers several different accounts with category-leading yields:

  • Savings Connect has one of the best yields of any bank account, online or off: 4.50% APY.
  • Platinum Savings has an outstanding yield when you maintain a balance of $5,000 or more (4.75% APY) and a so-so yield when you don’t (0.25% APY).
  • Savings Builder yields up to 1.00% APY for accountholders who can meet minimum balance or deposit requirements.
  • The CIT Bank Money Market account has a very good yield on all balances (currently 1.55% APY) with no monthly maintenance or service fees.
  • Multiple CIT Bank CDs offer above-average yields, led by the 11-month CIT No Penalty CD at 4.80%

Additional features:

  • No monthly service fee
  • No early withdrawal penalty for No Penalty CDs
  • No ATM fees in-network
  • CIT may reimburse up to $30 in outside ATM fees
  • Earn interest on eligible eChecking funds

Sign up for CIT Bank


Best for Investors: Wealthfront

Wealthfront Logo

Wealthfront is a next-generation banking service that’s ideal for day-to-day money management. Its Cash Account features high-interest checking, no account fees, and a host of value-added features — and you can open an account with just $1.

But Wealthfront made its name in the investment business, and there’s where it continues to shine. Key features include:

  • Build semi-customized, automatically rebalanced, globally diversified portfolios of low-cost index funds optimized with daily tax-loss harvesting
  • Just $500 minimum to invest 
  • Pay an annualized management fee of 0.25% assets under management (AUM) on all balances
  • Choose from individual and joint taxable accounts, IRAs, and 529 college savings plan accounts
  • Portfolio line of credit that lets you tap up to 30% of your account value once you have $25,000 or more under management
  • Consolidated view of all your accounts through Wealthfront’s free DIY financial planning tool

Additional features of the Wealthfront Cash Account include:

  • 4.55% APY (variable) on all balances
  • $1 minimum opening deposit
  • No account fees
  • No overdraft fees
  • FDIC insurance on balances up to $5 million
  • Get paid up to two days early with direct deposit
  • Put your money to work in the market within minutes when you use your Cash Account to invest in a Wealthfront Investment Account
  • Mobile check deposit
  • Free bill pay and peer-to-peer (P2P) transfers
  • Complimentary debit card and free in-network ATM access
  • For a limited time, get $30 bonus cash when you open a Wealthfront Cash Account and fund your new account with at least $500 in new money. Terms apply.

Sign Up for Wealthfront

Money Crashers, LLC receives cash compensation from Wealthfront Advisers LLC (“Wealthfront Advisers”) for each new client that applies for a Wealthfront Automated Investing Account through our links. This creates an incentive that results in a material conflict of interest. Money Crashers, LLC is not a Wealthfront Advisers client, and this is a paid endorsement. More information is available via our links to Wealthfront Advisers.


Best for Customer Support: Albert

Albert Logo

Albert is a powerful financial app that makes spending, saving, and investing easy. It’s among the growing crop of financial solutions that offer early payday with eligible direct deposit, and its automated savings and investing features put it well ahead of the pack.

But where Albert really shines is on the customer service front. The platform has a dedicated team of in-house financial experts — called Geniuses — to help you make sense of your money. That puts it heads and shoulders above its crop of fellow digital money management apps.

Additional features:

  • Albert Cash. This is the place to manage your day-to-day spending money with Albert. Earn up to 20% back on eligible debit card purchases and get paid up to two days early with qualifying direct deposit. Use the Albert Instant cash advance feature to get up to $250 from your next paycheck with no hidden fees.
  • Albert Savings. Albert’s Smart savings engine sizes up your cash flow and sets aside funds automatically so that you’re always moving toward your financial goals. Set specific goals within the app, such as building an emergency fund or saving for your next vacation. And get cash bonuses on your Albert Savings every year.
  • Albert Investing. Start investing with as little as $1 using Albert’s guided investment platform. Choose your own stocks or themes, or have Albert do it for you.

Sign Up for Albert


Best for Debit Card Rewards: GO2bank

Go2bank Logo

GO2bank is a low-friction online bank with a mobile-friendly bank account (no monthly fee with eligible direct deposit) and impressive yields on savings (4.50% APY2 on savings up to $5,000).

Eligible electronic gift card purchases in the app earn up to 7% cash back; Amazon eGift Card purchases in the app earn 3% cash back. Terms and conditions apply.

Additional features:

  • No minimum opening deposit or ongoing balance requirement
  • Avoid the $5 monthly fee with an eligible direct deposit
  • Get paid up to two days early with ASAP Direct DepositTM 3
  • Deposit cash at participating retail stores, subject to fees and deposit limits
  • Enjoy up to $200 in overdraft protection with opt-in and eligible direct deposit.*
  • Earn 4.50% APY paid quarterly on savings up to $5,000 — over 10 times the national average savings rate2

* $15 fee may apply to each purchase transaction not repaid within 24 hours of authorization of the first transaction that overdrafts your account. Overdrafts paid at GO2bank’s discretion.

Sign Up for GO2Bank

1Active GO2bank account required to receive an eGift Card. eGift Card merchants subject to change.

2GO2bank, Member FDIC. Interest paid quarterly on the average daily balance of savings during the quarter up to a $5,000 balance and if the account is in good standing. 4.50% Annual Percentage Yield (APY) as of April 2023. APY may change before or after you open an account. The average national savings account interest rate of 0.39% is determined by the FDIC as of 4/18/23. Visit https://www.fdic.gov/regulations/resources/rates/ to learn more. Fees on your primary deposit account may reduce earnings on your savings account.

3Direct deposit early availability depends on the timing of the payor’s payment instructions and fraud prevention restrictions may apply. As such, the availability or timing of early direct deposit may vary from pay period to pay period. The name and Social Security number on file with your employer or benefits provider must match your GO2bank account exactly or GO2bank will decline your deposit.


Best for No Account Fees Ever: Rewards Checking via Upgrade

New Upgradelogo Fullcolor V 1

Rewards Checking via Upgrade4 has a slew of user benefits, but its defining feature couldn’t be simpler: no account fees, ever.

That’s right. As a user, you pay no account fees — no annual fees, overdraft fees, transfer fees, or ATM fees charged by Rewards Checking by Upgrade1.

There’s more, of course. Additional features of Rewards Checking via Upgrade include:

  • 2% cash back on purchases at convenience stores, drugstores, restaurants, and bars, and on utility bills and certain monthly subscriptions2
  • Earn up to $500 cash back per year at the 2% rate
  • Earn 1% cash back on all other eligible purchases
  • Get up to five third-party ATM fee rebates each month1
  • You may receive discounts on loans and cards through Upgrade3
  • FDIC Insured up to $250,000 through Cross River Bank, Member FDIC

Sign Up for Rewards Checking via Upgrade

1 There are no account fees, overdraft fees, annual fees, or transfer fees associated with Rewards Checking accounts. Rewards Checking charges no ATM fees, but third-party institutions may charge you a fee if you use their ATM/network or if you use your Upgrade VISA® Debit Card internationally. Upgrade will rebate any ATM fee charged by another institution for debit card withdrawals in the United States, up to five times per calendar month. To be eligible to receive third-party ATM fee rebates in any calendar month for eligible ATM withdrawals made during that month, customers must have (i) an open Rewards Checking account and (ii) either maintained an average daily balance in their account of at least $2,500 in the prior calendar month or made direct deposits into their account totaling at least $1,000 during the prior calendar month. As a courtesy to new customers, Upgrade will provide third-party ATM fee rebates for up to the first 2 calendar months after account opening regardless of account activity. Some limitations apply and terms and conditions may change. Please refer to the applicable Cross River Bank Deposit Account Agreement and Upgrade VISA® Debit Card Agreement and Disclosures for more information.

2 Rewards Checking customers accrue 2% cash back on common everyday expenses at convenience stores, drugstores, restaurants, and bars – including deliveries – and gas stations, as well as recurring payments on utilities and monthly subscriptions including phone, cable, TV and other streaming services, and 1% cash back on all other debit card charges. 2% cash back is limited to $500 in rewards per calendar year; after $500, customers accrue 1% cash back on all eligible debit card charges for the remainder of the year. Some limitations apply. Please refer to the applicable Upgrade VISA® Debit Card Agreement and Disclosures for more information.

3 The interest rate on a new loan or credit line through Upgrade may be up to 20% lower than would otherwise be applicable without this discount, as long as you have an active Rewards Checking Account. Additional terms may apply. Please refer to the applicable Truth-in-Lending Disclosure and Loan Agreement.

4 Upgrade is a financial technology company, not a bank. Rewards Checking services provided by Cross River Bank, Member FDIC. Upgrade VISA® Debit Cards issued by Cross River Bank, Member FDIC, pursuant to a license from Visa U.S.A. Inc. Personal Loans made by Upgrade’s bank partners. Personal Credit Lines are issued by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender. The Upgrade Card is issued by Sutton Bank, Member FDIC, pursuant to a license from Visa U.S.A. Inc.



Best for Automated Budgeting: Douugh

Douugh Logoo

Douugh is a money management app that makes it easy to stay on top of your day-to-day financial obligations while saving for a rainy day — and happier days too. 

A single mobile-friendly dashboard makes it all possible.

How? That’s down to Salary Sweeper, an AI-enabled feature that automatically allocates income to two protected “jars”:

  • Your Bill Jar, complete with a virtual card of its own
  • Your Savings Jar, which is actually a customizable array of single-purpose savings buckets

The rest is yours to spend as you please using a debit card accepted by millions of merchants worldwide. Best of all, you never have to give manual budgeting a second thought.

Additional features:

  • Enjoy a free checking account with a Mastercard debit card 
  • Use Apple Pay, PayPal, and other payment apps to make purchases online and IRL
  • Lock and unlock your card and change your PIN within the app — without calling customer service or visiting a branch.

Sign Up for Douugh


Best for Debt Refinancing: SoFi Checking and Savings

Sofi Logo

Need to refinance the student loans you’ve been carrying for years with no end in sight?

Open a SoFi Checking and Savings account, then head over to SoFi’s student loan refinancing portal to check out your options. SoFi is a category leader in the education loan refinancing business, with incredibly low rates, flexible terms, and an array of reasonable repayment options.

And since you’re also in the market for a new online bank, you’ll enjoy these great SoFi Checking and Savings perks and features:

  • No minimum opening deposit or balance requirement
  • Rate discounts on SoFi loans
  • Free peer-to-peer (P2P) transfers
  • Customized financial planning
  • Member-exclusive offers from SoFi partners
  • A referral program that pays up to $310 per successful referral
  • Up to 3.75% APY on eligible balances

Plus, for a limited time, sign up for SoFi Checking and Savings and earn a $250 opening bonus when you set up direct deposit of at least $1,000 into your account

Sign Up for SoFi Checking and Savings


Best for Teens and Young People: Copper Banking

Copper.purple

Copper is a banking solution for teens age 13 and older — and their parents too. 

It’s built around the Copper Card, a personalized debit card that leverages Apple Pay technology to facilitate seamless online and in-person transactions. 

The Copper App allows parents to monitor spending and instantly send money in seconds. For teens, its Automatic Saving feature encourages saving — a lifelong financial habit — by automatically setting aside a portion of each paycheck or inflow.

Additional features:

  • Copper has a wealth of financial literacy content for parents and kids alike — it’s one of the best financial education tools around
  • Withdraw cash for free at over 55,000 ATMs
  • All Copper Accounts are FDIC-insured up to $250,000 through Evolve Bank & Trust

Sign Up for Copper


Best for Potential Returns on Savings & Spending: PrizePool

Pp Gold

PrizePool is a truly unique financial app — the only FDIC-insured deposit account provider that offers users the chance to earn serious money based on your saving and spending habits.

PrizePool offers two ways to win:

  • Savings Balances: Get 1 ticket for PrizePool’s prize drawings for every $1 on deposit in your savings account, every day. So if you have $1,000 in your account, you get 1,000 tickets every day.
  • Debit Card Purchases: Earn 30 tickets for every $1 spent, plus get the chance to have your purchases reimbursed.

PrizePool holds a weekly drawing every Friday. There are almost 6,000 cash prizes every week, including a $10,000 grand prize drawing at least once every six weeks.

Additional features:

  • Earn 0.30% APY on eligible savings balances
  • Deposits are FDIC-insured up to $250,000
  • Refer new users to PrizePool and get 10% of their prize winnings forever

Sign Up for PrizePool


Best for Freelancers and Self-Employed People: Lili

Lili Logo

Lili offers a totally free checking solution with a slew of value-added features designed to simplify your financial life. 

Its core product is built with freelancers in mind, but it’s appropriate for a range of use cases, from solopreneurs to folks who supplement 9-to-5 income with side hustle revenue.

With powerful, automated tax savings and expense categorization tools, Lili eliminates the need to juggle separate bank accounts for business and personal needs — it’s just one deposit account for your entire financial life.

Additional features:

  • No minimum opening deposits or ongoing balance requirements and no account fees
  • Pay virtually anywhere with a Visa debit card that’s accepted worldwide
  • Lili’s Tax Bucket tool automatically sets aside funds earmarked for income tax payments
  • Utilize expense management and categorization tools that simplify business budgeting, cash flow management, and year-end accounting
  • Get real-time alerts for every transaction (and other account activities too)
  • Make mobile check deposits through the Lili mobile app
  • Make cash deposits at more than 90,000 retail locations across the U.S., including CVS, Walgreens, and Rite Aid
  • Get paid up to two days early with early direct deposit
  • Enjoy fee-free withdrawals at about 38,000 ATMs nationwide

For $9 per month, Lili Pro adds even more valuable features:

  • A premium Visa Business Debit Card that delivers cash-back rewards
  • BalanceUp, a fee-free overdraft solution that covers up to $200 in would-be overdrafts
  • Advanced expense tracking that helps business owners maximize their tax deductions
  • A savings account that pays interest

Sign Up for Lili


Best for Savers: Quontic Bank

Quontic

Quontic Bank got its start as a New York City community bank that catered to thrifty types.

Today, Quontic’s branch-based banking options represent just a small fraction of its offerings. With a nationwide digital footprint, Quontic delivers category-leading checking and savings yields for consumers and small-business owners from all walks of life — all with no monthly service fees:

  • Cash Rewards Checking: Earn unlimited 1.5% cash back on qualifying debit card transactions after meeting the $100 minimum opening deposit.
  • Bitcoin Rewards Checking: Earn 1.5% Bitcoin on qualifying debit card transactions. The minimum opening deposit is $500. This account may not be available in all states.
  • High Interest Checking: Make 10 or more qualifying debit card point-of-sale transactions of $10 or more per statement cycle to earn interest at competitive rates based on account balance. The minimum opening deposit is $100.
  • High Yield Savings: Earn interest at category-leading rates (currently 4.25%) after meeting the $100 minimum opening deposit.
  • Money Market: Earn solid yields (currently 4.75%) after meeting the $100 minimum.
  • CDs: Quontic CDs have terms ranging from six months to three years and competitive yields that generally increase in proportion to term. The minimum opening deposit is $500. Early withdrawal penalties may apply.

Additional features:

  • Tap to pay with the Quontic Pay Ring — the first wearable debit card
  • Choose from an array of home loans, including community development loans that go beyond your traditional credit profile
  • Take advantage of special loans for foreign nationals and recent immigrants

Sign Up for Quontic Bank


Best for Borrowers: Discover Bank

Discover Bank Logo

Discover Bank is a full-service online bank with a wide range of deposit accounts. It’s a great (almost) one-stop shop for your digital financial needs.

Discover Bank’s real differentiator is its comprehensive lineup of secured and unsecured credit products. That includes unsecured personal loans, which many online banks don’t bother with due to perceived risk. 

You’ll find home loans, home equity products, student loans, credit cards, and personal lines of credit here too.

Discover Bank’s deposit account options include:

  • Cashback Debit: This checking account has no yield, but you can earn 1% cash back on up to $3,000 in qualifying debit card spending each month. There’s no monthly maintenance fee.
  • Online Savings Account: This account has a very strong yield on all balances — currently 3.90% APY. There’s no maintenance fee or minimum to open.
  • Money Market Account: With a minimum opening deposit and balance requirement of $2,500, this account has competitive yields on all balances. Its two balance tiers cleave at $100,000, but yields on higher balances barely exceed those on lower balances. Enjoy a free, optional debit card, and no maintenance fee. There’s also no minimum balance fee, despite the minimum balance requirement.
  • Traditional CDs: CD terms range from three months to 10 years. Yields range widely, peaking on longer-term CDs. You need $2,500 to open any CD. 

Additional features:

  • Structure any money market or CD as a traditional, Roth, or SEP IRA
  • Or roll over your 401(k), 457 deferred compensation plan, annuity, or IRA from another institution
  • Enjoy a coast-to-coast network of 60,000 fee-free ATMs
  • Enjoy 24/7 support by phone, live chat, and email 
  • Make mobile check deposits from anywhere
  • Enjoy free, instant P2P money transfers

Sign Up for Discover Bank


Methodology: How We Select the Best Online Banks

We use several key factors to evaluate online banks and surface the very best ones for our readers. Each relates in some way to the overall user experience, and you’ll see many represented in our “Best For” categories above.

Available Account Types

The best online banks offer a range of different deposit account types: free checking, savings, CD, and money market accounts, among many others.

Truly comprehensive online banks go even further, with less-common account offerings like savings IRAs, jumbo CDs, and more. More accounts doesn’t necessarily mean a better banking experience, but it’s helpful if you’re looking for a one-stop financial shop.

Interest Rates

Online banks tend to have higher yields — interest rates paid to the account holder — as well as lower interest rates on certain types of loans, if offered.

You shouldn’t count on that though. It’s important to shop around and choose an online bank that consistently offers significantly better rates. Not all do.

Account Minimums

The best online banks have low or no minimum balances and low or no minimum opening deposit requirements on checking, savings, and money market accounts. 

CDs generally do have minimum deposit requirements, even at the best online banks, but there’s lots of variation. Look for deposits at or below the $1,000 mark, if possible.

Monthly Maintenance Fees

Free is always better than not free, right?

Not necessarily. Some of the best online banks around charge modest monthly fees. In exchange, they offer a wealth of value-added features and services that can earn or save you money (and sometimes both at the same time).

That said, we do give preference to banks that don’t charge monthly fees at all. Because everyone could use a break.

Other Account Fees

The trusty monthly maintenance fee is just the most visible bank fee. Others include:

  • ATM fees (in-network and out-of-network)
  • Wire transfer fees
  • Excess transaction fees
  • Early withdrawal penalties
  • Minimum balance fees

Traditional banks are notorious for nickel-and-diming their customers. By contrast, most online banks do charge at least some fees, but they’re predictable and clearly disclosed on their websites and applications. 

For example, many online bank CDs come with early withdrawal penalties. These can be equivalent to as little as one month’s interest on shorter-term CDs but may range up to 24 months of interest on very long-term CDs.

All else being equal, we prefer online banks that charge few if any fees — and hidden fees are a dealbreaker.

Investment and Tax-Advantaged Options

Many online banks stick to core banking services, like checking and savings. But a growing number of online banks offer a wider array of options for people who’d like to be able to do all their banking in the same place.

We’re particularly fond of online banks that offer tax-advantaged account options, such as savings IRAs and CD IRAs. We also like online banks that have in-house investment platforms — whether they’re self-directed brokerages like Ally Invest or low-cost robo-advisors like Wealthfront.

Credit Options

All online banks have at least one deposit account product. That’s what makes them online banks.

A smaller but growing number make loans or issue lines of credit — including credit cards — as well. Common online bank credit products include:

  • Mortgage loans, including purchase loans and refinance loans
  • Home equity products, including home equity loans and lines of credit
  • Auto loans
  • Student loans and student loan refinancing products
  • Personal loans
  • Credit cards and other types of credit lines

We don’t hold it against online banks that don’t make loans — it’s a big step for many a lean bank. But we do look out for banks that have taken the leap.

Budgeting and Money Management Features

Budgeting is hard to do right. That’s why we’re big fans of online banks with built-in budgeting and money management tools.

The more automated these tools are, the better. In fact, some make our list of the top budgeting apps on the market. Truly “set it and forget it” money management saves the typical consumer hundreds if not thousands of dollars per year.


Online Banking FAQs

Still have questions about online banks and managing money online? We have answers.

How Much Does Online Banking Cost?

Online bank rates, yields, and fees are subject to change at banks’ sole discretion. For up-to-date information about specific accounts and bank policies, check their websites or call customer service.

That said, online banks are generally more affordable than traditional banks. They’re less likely to charge monthly maintenance fees on checking and savings accounts, and many have fewer hidden fees too.

What’s the Interest Rate on an Online Bank Account?

That also depends on the individual bank. But many online accounts feature higher yields relative to those of traditional banks. 

That’s because online banks have less overhead than traditional banks. They don’t need to pay to keep big, centrally located branches open or pay people to work at them. Their operations are more efficient, which allows them to pass the savings on to customers via higher rates and lower fees.

How Do You Enroll in Online Banking?

It depends on the bank and how its website or app is structured, but it’s usually straightforward. In fact, with an online-only bank, enrollment is usually automatic. You don’t have to complete a separate application or even click a button to activate your account.

However, you will need to create a unique username and password to get started. You may be asked to do this as part of the initial application process or once your account is approved. You’ll also need to link at least one external funding source to transfer money into your account.

Can You Get a Mortgage From an Online Bank?

Some online banks offer home loans (mortgages) and other credit products. These banks tend to be larger online banks with high name recognition, like Ally Bank and Capital One Bank. Look for a “Mortgages” or “Home Loans” tab on the homepage or in your account dashboard.

Be aware that some online banks outsource mortgage origination to other companies. In other words, if you apply for a mortgage through your bank, your loan officer might actually work for someone else. This isn’t necessarily a bad thing, but it could mean a different level or style of service than you’re used to.

And don’t expect your online bank to offer better mortgage rates than other lenders. The mortgage loan business is highly competitive, and direct lenders with even lower overhead may be able to undercut online banks.


How to Choose the Best Online Bank — Or Several

The institutions on this list offer a great combination of FDIC-insured banking products, solid yields, open access, and helpful customer service.

Before choosing one, take a closer look at the features that set it apart from the competition: rewards checking, flexible withdrawal terms for CDs, particularly high account yields, a socially responsible corporate philosophy, and so on.

And remember that, unlike in the old days, your banking choices aren’t bound by geography or other restrictions. If you can’t settle on a single online bank, why not open accounts at multiple banks and compare your experiences?

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

Source: moneycrashers.com

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Apache is functioning normally

May 24, 2023 by Brett Tams

One of the keys when it comes to investing for the long term is to make sure you’re minimizing the fees you’re paying to invest your money.

Whether it’s plan administration fees for the company you’re investing with, mutual fund expense ratios and fees, or fees for added account functionality, the more you can minimize how much you’re paying, the better.

Morningstar reports that the average expense ratio for actively-managed equity mutual funds is 1.2% and investment-grade bond funds have an expense ratio of 0.9%. For me, I prefer to invest in mainly low-cost index funds with expense ratios that are much lower.

Beyond saving money on the expense ratios, I also would love to save money on the administration fees I pay in order to invest.  My company 401(k) has fees just under 1%,  which is way too much for my tastes. I’ve stopped investing there first since there is no company match.

This past week I was doing some research on the new slate of robo advisors that have popped up. One of them jumped out at me because the company is extremely affordable, but it also has shown some of the best results in the past couple of years.  Not only do they invest your money for you in a slate of well-diversified ETF index funds, and rebalance your holdings on a regular basis, but they charge you a pretty minimal fee to do it.

This all sounded too good to be true, so I decided to do a full review of this new automated investing service called Axos Invest Managed Portfolios, to see what they are all about.

Axos Invest Managed Portfolios

Axos Invest History

Axos Invest Managed Portfolios logo

Axos Invest launched several years ago under the name WiseBanyan. They had the goal of being the world’s first completely free financial advisor. 

Here’s their reasoning behind why they launched their site.

Herbert Moore and Vicki Zhou founded WiseBanyan after seeing that the incentives between financial advisors and clients were often misaligned. They saw this firsthand while working in asset management and investment banking respectively, and later as colleagues at a quantitative asset management firm. They realized that the main cause of misalignment was a conflict of financial interests, which often resulted in high fees, unnecessary tax consequences, and unreasonable account minimums for the clients. As a result, they set out to build a company that was not incentivized to earn money at its clients’ expense.

WiseBanyan began with the idea that investing is a right – not a privilege. Our mission is to ensure everyone can achieve their financial goals, which starts with investing as early as possible. This is why there is no minimum to start and we do not charge high fees. We hope you are as excited about WiseBanyan as we are, especially what it means for you, your friends, and society as a whole.

Axos Invest was launched with the hope of making investing easy, accessible, and cheap – even for beginning investors who could only invest a small amount every month.

While the service is no longer free (They started charging a 0.24% annual assets under management fee in 2020), they still practice the values of making investing more accessible and affordable for everyone.

WiseBanyan Holdings was acquired by Axos Financial, and as of October 2019 and moving forward the company formerly known as WiseBanyan is now known as Axos Invest.

Axos Invest has become a part of the Axos Financial online banking platform. Check out our full review of Axos Bank.

Axos Invest Account Types – Managed Portfolios Vs. Self-Directed Trading

After reading up a bit about Axos Invest I was intrigued enough to sign up for one of their accounts. I went to their site to find that there are a couple of different account types you can sign up for.

I was mainly interested in signing up for Managed Portfolios since I intended to use this as a robo-advisor to automatically invest, rebalance and reinvest my dividends for me. I wanted it to be hands-off.

If you prefer to research and invest in your own choices of individual stocks, the commission-free Self Directed Trading account may be a better choice for you.

If you’re an advanced trader the Self Directed Trading account has the “Axos Elite” subscription which gives you real-time market data, TipRanks market research, extended trading hours, margin trading, stock lending, and more for a monthly fee.

Head on over to the Axos site via my exclusive invite link below to get started on your Axos Invest account now:

Axos Invest Review

Open Your FREE Axos Invest Account Now

Open an Axos Self Directed Trading account and deposit at least $2000, and you’ll get a $250 bonus for a limited time!. Open Axos Self Directed Trading

Opening An Account With Axos Invest

After going to the Axos Invest site to open my Managed Portfolios account, it dropped me right into a brief questionnaire to assess my risk tolerance, investment time horizon, and more.

While you’re answering the questions you’ll see a progress bar and a “current risk score” listed to the right, telling you just how conservative or aggressive Axos Invest believes you are.

Axos Invest portfolio setup page

My risk score went up and down throughout the survey based on my answers, and when I finally completed it gave me a risk score of 7.2.  That would give me an estimated asset allocation of 65% stocks to 35% bonds – which seems about what most would suggest as I’m relatively conservative in my investments, and the bond allocation roughly matches my age (put your age in bonds!)

Your portfolio is ready

I decided that I wanted to change my risk score and asset allocation to be a bit more aggressive, however, and you can do that simply by moving the slider to the right (or left if you’re more conservative).  I ended up with closer to 75/25 stocks to bond allocation.

After completing the survey you click on the “Open My Account” button, which takes you into the account opening process. It will ask for all of your personal information including an email, password, employment information, and Social Security number (like you would have to at any brokerage).

Once you’re done entering your personal information you’ll be asked to choose an account type.  Currently, you can choose:

  • Taxable Investment Account
  • Roth IRA
  • SEP IRA
  • Traditional IRA

After you choose an account type you’ll be asked to link a bank to fund your account.  You can then choose to fund the account with as little as $500.  If you want, you can also set it up to automatically invest for you every month. I have it set to automatically invest $300 for me on the 15th and 30th of the month.

Once you’re done your account will be sent to Axos Financial for approval.  Their site says it takes about 5 business days for an account to be approved.

Axos Invest New Account Ready Soon

Axos Invest Investment Philosophy

Axos Invest will invest your funds based on Modern Portfolio Theory (MPT).

We use the tools of Modern Portfolio Theory to design the optimal portfolio for a given level of risk. In addition, we further optimize our investment process to minimize tax consequences and streamline the reinvestment of dividends and contributions.

Their investment philosophy is built upon four main pillars:

  1. The value of diversification
  2. Keeping fees as low as possible
  3. The value of passive investing
  4. Starting sooner rather than later

Axos Invest will attempt to give you a portfolio that is well-diversified, low-cost, and at low minimums so just about anybody can get started now.  They’ll use the ideas behind MPT to give you the optimal portfolio for your given risk score.

The Actual Investments

So what are you getting when you invest with Axos Invest? You’re getting a well-diversified portfolio that contains passively managed exchange-traded funds (“ETFs”).

The funds held with Axos Invest have an average fund fee of 0.12% – the only fees you’ll pay to invest. Here is the breakout for the individual funds they use (the funds used by Axos is subject to change, and probably will) and their expense ratios:

wisebanyan-allocation
  • Vanguard Total Stock Market ETF (VTI): 0.03%
  • Schwab U.S. Broad Market (SCHB): 0.03%
  • Vanguard FTSE Developed Markets ETF (VEA): 0.05%
  • Schwab International Equity (SCHF): 0.06%
  • Vanguard FTSE Emerging Markets ETF (VWO): 0.15%
  • iShares Core MSCI Emerging Markets (IEMG): 0.14%
  • Vanguard REIT Index Fund (VNQ): 0.12%
  • iShares U.S. Real Estate (IYR): 0.42%
  • iShares Investment Grade Corporate Bond ETF (LQD): 0.15%
  • Vanguard Intermediate-Term Corporate Bond Index (VCIT): 0.05%
  • Vanguard Intmdte Tm Govt Bd ETF (VGIT): 0.05%
  • iShares Barclays TIPS Bond Fund (ETF) (TIP): 0.19%
  • State Street Global Advisors Barclays Short Term High Yield Bond Index ETF (SJNK): 0.40%
  • PIMCO 0-5 Year High Yield Corporate Bond Index (HYS): 0.56%
  • Vanguard Short-Term Corporate Bond (VCSH): 0.05%

As you can see they have a broad diversification that also includes real estate via the Vanguard REIT Index fund, which isn’t something that Betterment gives you.

The performance of Axos Invest has been pretty good. As you can see from the screenshot from Barron’s “Ranking the Robos” article below, WiseBanyan/Axos Invest had the second-best two-year annualized return, through 6/30/19. Not too bad!

Axos Invest - returns comparison Barrons

Axos Invest Mobile App

When the service first came out one of the complaints some users had was that there was no mobile app for the service. A mobile-optimized app for iOS was released shortly thereafter, as well as an app for Android users.

wisebanyan-app

From the app, you can now do things on the go like check your balances, view your allocations, make a quick deposit, and more. The apps really are very pretty to look at and are a pleasure to use.

Axos Invest Fees & Account Charges

wisebanyan fees

One of the biggest draws for Axos Invest when they started was the fact that they were essentially a fee-free service. While that is no longer the case, they are still very low-cost, one of the lowest-cost robo-advisors on the market.

Here are a few of the fees (or lack thereof) that you’ll see with the service:

Managed Portfolios

  • Management fee: 0.24% of assets under management. Accounts less than $500 pay $1/month.
  • Trading fees: FREE
  • Rebalancing fees: FREE
  • Dividend reinvestment fee: FREE

Self-Directed Trading

  • Stock Trading fees: FREE
  • ETF Trading Fees: FREE
  • Options trading: $1 per contract

Self-Directed Trading – Axos Elite

Axos Elite is the premium self-directed investing service that offers more powerful investment tools, real-time market data, extended trading hours, lower fees, stock lending, and margin trading.

  • Monthly fee: $10/month
  • Stock Trading fees: FREE
  • ETF Trading Fees: FREE
  • Margin Trading: 5.5%
  • Options trading: $0.80 per contract with Axos Elite

So essentially the Axos Invest service is very low cost with only the 0.24% AUM fee for Managed Portfolios. There are no trading fees, and no fees to rebalance your account or reinvest dividends. Competing services often charge much higher annual management fees, so with Axos being one of the very lowest when it comes to fees, you’re saving on those fees right off the bat.

There are some fees related to transferring funds via wire transfer, or do a full account transfer out, although regular electronic funds transfers (EFT) are free.

  • Electronic Fund Transfer (EFT) fee: FREE for deposits or withdrawals.
  • Wire transfers in: FREE (although your bank may charge).
  • Wire transfers out: $30 per domestic wire transfer.
  • Account closing fee: FREE.
  • Full account transfer out fee: $75 per account.
  • Partial account transfer out fee: $5 per security ($25 minimum/$75 max).
  • Disbursement of funds by check by mail: $10 per check.
  • Returned check fee: $40 per occurrence.

As mentioned above, Axos Invest’s product and service is very low cost and there are only a few small fees for certain types of transfers or check disbursements. 

Premium Add-On Products & Services

There are several premium packages in your Axos Invest account that have a fee associated with them. You can turn them off and on whenever you want.

Premium packages with Axos Invest

Currently, the premium packages include:

  • Portfolio Plus: The ability to create your own custom portfolio from an expanded list of investments. You can choose from lists of different investment classes and types and add up to 20 investments to each portfolio you create.  It costs $3/month to use this add-on package.
  • Quick Cash: When activated this gives you quick same-day deposits, auto-deposit scheduler, and overdraft protection. It costs $2/month to use this add-on package.
  • Tax Protection: This package will give you tax loss harvesting, selective trading (to remove ETFs you hold elsewhere to avoid the potential for wash sales) and IRAutomation, which helps you to maximize the use of your retirement account deposits, setup auto deposit plans and more. Each month the cost will be the lesser of 0.02% of your average Axos Invest account value (0.24% annually) or $20. So if you have $5,000 in your account, the monthly cost would be $1.

Using these add-on packages is purely optional, but even if you were to turn them all on it likely isn’t going to cost you more than a few bucks per month.

Axos Invest: Great For Cost-Conscious Investors

When I first read about Axos Invest I dismissed it out of hand because I thought that there had to be a catch somewhere, there’s no way they were offering this service for such a low cost when others are charging anywhere from .35%-1.0% annual management fees for similar services.

After looking into it further, however, it does truly seem like Axos Invest is committed to offering a low-cost investing service for both self-directed investors and those who want their portfolios managed for them.

Axos Invest does seem like a good option for newer investors.  Not only can you start investing with no account minimums, and low management fees – but you can buy fractional shares with as little as $10 and get a highly diversified portfolio that should match the market in the long term. 

The account has SIPC protection that covers up to $500,000 per client as well, so if Axos Invest were to go under you’d be covered.

I’ve signed up for my own Axos Invest account and have been with them now for years. They are my go-to recommendations for new (and even experienced) investors.

Open your own account below via my invite link.

Get Started With Axos Invest Now!

Axos Invest

Axos Invest

Ease of use

9.5/10

Design

9.5/10

Cost efficiency

10.0/10

Investment strategy

10.0/10

Available tools

9.5/10

Pros

  • Low management fees
  • No trading or rebalancing fees
  • Proven strategy
  • Low minimum investment
  • Auto investing

Cons

  • Cash can take a bit to be invested

Axos Invest Managed Portfolios Review: Automated Investment Advisor

Related Posts

Source: biblemoneymatters.com

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Apache is functioning normally

May 23, 2023 by Brett Tams

Hey everybody, welcome back to the FlipNerd Show! Today, we are going to talk to my buddy, Brent Moreno, a real estate investor who has become an expert on A.I. (artificial intelligence)! AI is seemingly taking over the world; is it going to make us all irrelevant or better business owners? That is what we are going to talk about today: what is going on in AI and what impact will it have on real estate investors? It’s a pretty exciting and timely topic; let’s jump right in!  

Mike: Hey everybody. Welcome back to the show. Uh, today we’re gonna talk with my buddy Brent Moreno, who really has become, uh, is a real estate investor, but has become an expert on AI and, um, we’re gonna be talking about how AI is gonna make us all irrelevant or better business owners. One of those two things are probably gonna happen here.

Mike: It can be pretty exciting, pretty timely to talk about what’s going on in AI. Welcome to Real Estate Investing Secrets. We’re all looking for freedom and the opportunity to live better, more fulfilling lives. But most of us, were trained our entire lives to work for someone else to chase their dreams. How can we use real estate investing as a vehicle to achieve financial freedom?

Mike: My life is dedicated to answering your real estate investing questions and helping you build an investing business that allows you to change your life. And the world around you, and to enable you to turn your dreams of financial freedom into a reality. My name is Mike Hambright from FlipNerd.com, and your questions get answered here on the Real Estate Investing Secrets show.

Mike: Brent, welcome to the show, buddy.

Brent: I appreciate you having me, Mike.

Mike: Yeah, I, I’m excited. I’m scared. I don’t know what’s gonna happen here, but. Uh, I know AI’s taken over the world. I’ve got a lot of friends that are, are all in on it. I’m probably a little bit behind the eight ball and excited to talk to you today.

Mike: You’re, you’re the master and gonna get us all up to

Brent: speed. I guess one thing that I wanna say to people who feel like they’re behind the eight ball on it, you’re, you’re not, especially even if you just logged in to just chat g p t and even used it one time, you’d be surprised for somebody like me who’s like in it every single day.

Brent: I come across people every day. I was like, what? Never heard of it. Nope. Never used it. I’m like, how? I mean, it reached a hundred million users in two months. However, have you never heard this? Yeah. Um, so you’re not behind the eight ball. Matter of fact, I’d, I’d say you’re still early. If you have any interest in ai, uh, to jump in right now and start using it, uh, even if you’re, you know, solo or you’re run a big corporation.

Brent: One thing I tell a lot of business owners, cause I talk to a lot of business owners, not just in real estate, is that you know, every single body in your company, you should just make it a mandate that they use chat g p T for at least 30 minutes. Hmm, just use it and direction. What we’re

Mike: gonna do today is, is go through every area of your company, marketing, acquisitions, dispo, staffing your business, things like that, and just talk about.

Mike: What you can use AI for and maybe what’s coming, right? And so for those of you that are using it now, some of this will be a little bit of a refresher. Uh, but um, you know, despite how popular AI has become, there’s not a lot of people talking about it, uh, yet on podcasts and how, how to use it in real estate other than writing copy.

Mike: But it’s so much more than that. I think Brent’s gonna tell us today of. Uh, what it can really do, uh, for us. So, so let’s just talk, uh, generally, I mean, how, how disruptive before we kind of dive into departments, how disruptive is this? Is this gonna be for our industry, you

Brent: think? Brett, I think, I mean, it’s gonna be disruptive.

Brent: I don’t think it’s gonna necessarily change the fundamentals of investing, right? That’s not, that’s, that’s not going to change. But as far as the staff. The, the people, the time. I mean, it’s disruptive in every industry when it comes to that aspect. I mean, I think Goldman Sachs has recently reported that two thirds of all jobs could be automated in the next five years.

Brent: So, uh, the problem isn’t necessarily, you know, uh, Is it gonna help me buy real estate is like, is there going to be real estate left to buy if this thing takes over? Right. I mean, I’m not, I’m not a doomsday guy type scenario. I definitely believe that if we get this right, we can have a lot of serious positives.

Brent: Um, but as far as like as a real estate investor goes like, You just need to be thinking of ways, not only just for copywriting, but looking for tools on a daily basis that can help you, uh, increase your productivity. Cuz anything that can increase your productivity, even by margins of 10% is, is pretty huge and it’s significant.

Brent: Yeah. Yeah.

Mike: And a lot of us have, uh, you know, over the years have pivoted more to using virtual assistance and stuff like that. And it could be that you, you, you even continue the transition of needing less, um, general kind of administrative assistance overall,

Brent: right? Yeah. So the, the first, the first wave of people, I believe, are gonna be your customer service.

Brent: Uh, backend type representatives in your company that handle lead intake, that handle, uh, you know, questions, things of that nature. Your, your, uh, cold callers even. Uh, I saw Google Duplex back in 2018 get revealed, and I think I just watched, I don’t know, it might have been 2020 when I watched a great hack, but I put all this together and it was like, well, if Facebook and all these other companies have thousands of data points on somebody and.

Brent: An AI voice assistant can call and use that information that it has on people, then it will know how to sell you better than even, you know, how to sell yourself. Right, right. So that’s kind of where my brain started pivoting. I was like, man, eventually, like call centers are done, like call centers, uh, lead intake VAs, stuff like that.

Brent: They’re, you know, they’re pretty much done. Yeah. Um, fast forward to G P T three, which I started using when it came out for Jasper and a couple other. Platform was back in 2021 and I remember it was like only like three videos on YouTube about G P T three, and I was just amazed by all three of ’em like, man, this is, this is insane.

Brent: Backtrack even farther. There was a Humans Need Not Apply video. I think that’s, that came out like nine years ago and it freaked me out. Um, so I’ve been thinking about these problems for a really long time and, and honestly I kind of forgot about ’em until Tay PT was released and I was like, oh, okay, I can build on top of this.

Brent: This is, this is groundbreaking, this is different, this is new. And I think we we’re seeing that with, you know, the, the amount of people who are embracing it. Moving forward and the things that have, have kind of happened since then. Yeah. Uh, it’s incredible to watch and there’s been a, like I was telling you earlier, there’s so many things that are going on that even for somebody like myself who spends hours a day going through Twitter threads and Reddit threads and everything else, finding kind of new and what’s happening, going through research papers, it’s, it’s hard to keep up with, even from my side because the amount of.

Brent: Uh, research that’s going into this now is, is incredible and there’s a turning point of what, when that happened, uh, used to in machine learning and deep learning, you know, you had your, you know, you had vision, computer vision, you had all these other aspects of machine learning that had their own kind of unique interest intricacies that, you know, certain teams were working on this side, some certain teams were working on.

Brent: This is what happens when you had the G P T aspect of it, everything became language. And when, I mean everything becomes language. Literally everything is a language. Mm-hmm. Uh, I was watching something the other day where they literally can take wifi signals from your house and take that signal and turn it into an image.

Brent: Uh, so they can show you like who, how many people are in the house, what position they’re in, all that stuff. It’s. It’s insane what’s happening. They’re taking F M R I data, right? It’s a brain scan and they’re taking that data and showing people images, and then they’re t training it on a model that will actually recreate that image of what they saw or turn it into a text.

Brent: So it’s basically reading their thoughts. Wow. Yeah. Insane. Yeah.

Mike: So, uh, let’s, uh, let’s dive into different departments in, in a traditional real estate investor’s business, right? Yeah. So let’s kind of talk about marketing first. So, and I run an agency as well, so hopefully you’re not gonna put us out of business here, Brett Brent.

Mike: But, uh, let’s talk a little bit about how, um, you know, how it might impact how real estate investors market. There’s some obvious stuff, probably like writing copy, like everybody. That’s probably where a lot of people are using chat G P T right now or AI kind of start there like let me help it, have it write email sequences and stuff like that.

Mike: But I know it’s way more so talk about where, where we’re at and where we’re

Brent: going. I do want to add something to copy as well. Um, I’ve, I’ve seen people, you know, people charge money to write these beautiful listings and stuff for people, right. I’ve seen those people that have been, you know, we all wanna believe we’re special snowflakes and that we can’t be replaced.

Brent: And that, you know, no, nothing can do it better than I can do it. It’s just not true. Uh, yeah. I’ve seen a lot of people on, on that side of the fence where they talk about, well, it, you know, it’s nowhere near as good. It’s nowhere this, it’s like, well, it’s. Nine times outta 10. It’s simply about prompting, right?

Brent: If you can ask really good questions and you can describe something extremely well, uh, in a prompt, then you’ll get better responses. But if you’re just lazy and you’re like, Hey, write me a listing for this. It’s not going to p know the beds and baths. It’s not gonna know what your goal is. Like. You have to give it all that and give it a goal, uh, for it to actually write really good copy that doesn’t.

Brent: I can spot it from a mile away when somebody just does a lazy, uh, edit and just throws it in there or lazy prompt and just throws it in there and they just paste the output, uh, that’s easy to spot. And I think a lot more people will become aware of that. So that’s copy. Now you own agency, right? So you know all about ad A and b testing.

Brent: Well, what’s what’s happening in with, with the advancements of AI is that. You’ll have a to Z to 10 billion testing that can happen all at one time simultaneously. So you can basically pick your winners and losers a lot faster and make decisions for you without having to go and compile that information.

Brent: Uh, not only just go and test that all, but create all of those tests all at one time. Right. So you could launch, you could launch like landing pages or

Mike: direct mail

or

Brent: any of those things. Landing pages, direct mail, uh uh, Facebook ads, PPC ads, any of that stuff. Uh, there’s already people that are working on this where essentially you just, you know, input your goal, input what your company is.

Brent: And essentially it’ll create all the marketing copy, create everything, import it right into Google, import it right into Facebook, and have everything done for you, and it’ll test and run automatically for you. Uh, over time picking on picking the best winners, what’s working, what’s not working. Yeah. Wow.

Brent: So significantly saving you a lot more in time, energy, and cost, and not necessarily requiring you to hire a PPC manager or a Facebook ads manager or something like that. Yeah.

Mike: And how will, uh, how do you think the ad platforms, let’s just say like Facebook for example, Google, how will they, um, transform to accepting that to, to, to where there’s not as potentially as much manual management of ad campaigns and stuff like that.

Mike: Like how can it iterate and make, uh, campaign changes on the back end? Like, man, from a campaign management

Brent: standpoint, You talking about from, uh, like if you’re inside a Facebook ad manager right?

Mike: In, in, in the ad managers or you’re in, uh, the Google ad platform.

Brent: I mean, I think eventually what will happen is they’re they’re gonna implement their own systems that will do all that for you.

Brent: Yeah. Or will probably end up acquiring one of these companies that are doing it. That’s, that’s essentially the, the, the way they typically go. Um, But yeah, currently, I mean, I, I wouldn’t really know how to answer that question. Um, but they will,

Mike: they will, uh, evolve to be able to interact with the perfect, the perfect advertising campaign.

Mike: And it just did it for you while you were sleeping, correct?

Brent: Yeah. Yeah, it’s, um, and it’s really interesting to think about, well, what does PPC look like once Google puts in, uh, their chatbot in their search bar? Right? Yeah. Cause having on that

Mike: right now, entrepreneurs expect to be able to compete on something, right?

Mike: If everything’s optimized. How is there, how is there more than one company that does everything in America? You know,

Brent: that’s, that’s where we, that’s where we come into regulation, and that’s, that’s where I think that, you know, as, as a whole, as our co you know, not to get too political, but [00:12:00] that’s been the biggest problem in our country in general for the longest time, uh, not just in our politics, but in our corporations.

Brent: We have these, uh, monopolies, duopolies, all these things. Right? Right. But I, this is, this is where I get really into the weeds of things. And I know it’s just gonna necessarily about real estate. But if, if something doesn’t happen quickly and we don’t fundamentally change as a society, we’re in for a rude awakening.

Brent: Um, or if we don’t regulate this to death, And then at that point, like who chooses, who regulates what and how do we trust other countries to regulate it? I mean, it’s a, it’s a big problem, and that’s why you see. Meetings at the White House, and you see, uh, the European countries are, are getting together and trying to figure out what, you know, what the future looks like.

Brent: And it’s my goal to kind of hopefully have a seat at one of those tables one day.

Mike: Yeah. That’s awesome. Um, so let’s, let’s move on and talk a little bit about, uh, acquisitions, right? Uh, the acquisition side of, of our business. And so o obviously there’ll be some ai, some ability to analyze deals, crunch numbers, evaluate things, right?

Mike: It’s o as you know, That stuff’s not hard at all. It all comes down to how good are the inputs in the first place. Right. But talk about how the acquisition side of the business might get impacted.

Brent: Yeah. So I mean, I think 80% of your acquisition process can be automated, uh, because again, it’s a lot of the same questions that you need answers to.

Brent: Um, the, it’s the deal structuring. That’s gonna be a little tricky, especially for somebody like me who kind of thrived in the creative side of things. Yeah. Um, so, you know, there’s so many different ways to structure a deal and there’s, you know, AI can’t understand the fact that, oh, well I’m trading, I’m giving them a boat or giving them this, or whatever, you know, for, for all that stuff.

Brent: But, um, I think what you’re gonna see is when it comes to acquisitions, is that your forms, your chat on your website and your SMS. And phone intake can all be automated and be undetectable, whether or not if it’s an AI doing it or if it’s a human doing it, we’re already pretty close to that right now. As a matter of fact, I’m working with a company to build voice assistance for real estate investors.

Brent: Um, And they’ve already offloaded 75% of the Golden Nugget Casino hotels, uh, of their, uh, reservations to ai, uh, voice assistance. So it’s, it’s working, uh, and it’s going to happen to where eventually, like VAs are kind of, their days are cold callers, VAs lead intakes. That, that those things are gonna be automated, so, which is great.

Brent: For a business owner. Right. Uh, not so great. If you’re an employee and you’re, you know, a customer service employee or lead intake or acquisitions manager, uh, at a company. I’m not saying it’s gonna happen, you know, tomorrow, but it’s gonna, I think within the next 12 months, you’ll see, uh, a massive shift in what you’ll need as an, as a company when it comes to employees.

Mike: Yeah. And there’s probably some there, there’s some delay. I would assume like a lot of folks that we buy houses from tend to be a little bit older. Right. Mm-hmm. Um, and they’re probably more likely to wanna sit across the table and look somebody in the eye. Right? I mean, they’re, there’s just, just like, just like, and I, I believe this, and I, I support people that do all these things inside of my mastermind and other things.

Mike: There’s people that buy virtually over the phone across lots of markets. Mm-hmm. And there’s people that go meet with them at the kitchen table. And the kitchen table folks still outperform virtual just because of that personal touch. And so, yeah, there, there is some. Balance between what is possible and what’s realistically implementable, I

Brent: guess, too.

Brent: Right? Yeah. I mean, I, I, I’m, I’m a firm believer of the, the kitchen table. I mean, there’s nothing wrong at all of people doing virtually. I, I’m just, in my mind if, if the parameters are the same, we can spend the same amount of money on the same house and I can meet ’em in person at their, at their kitchen table and talk to ’em.

Brent: Yeah. I’m gonna win.

Mike: Uh, yeah, I agree with you. Yeah, I believe that too. So my point is, is like even though, you know, grandma could get on on there and fill out a form to analyze her house and probably get a bunch of virtual automated offers, right? Mm-hmm. There’s the, the, the folks that can still build that relationship, human to human are still gonna have a leg up for, certainly for the foreseeable future, I would assume.

Brent: I think it’s gonna become even more important. Yeah. Um, as more and more things become automated things, I mean, you’re already starting to see a, a. Big breakdown in trust, um, because it’s hard to tell what’s real anymore, and it’s gonna become even harder. Once these, once these get more powerful, especially when it comes to video, uh, we’ve already seen it with audio.

Brent: It can, with it, you got three seconds of someone’s voice, you can automatically recreate that voice, uh, which is scary because they’re already using it for scams. People saying that, oh, they got their daughter’s voice and they’re calling their parents and like, Hey, I forgot my social security number. I need it.

Brent: I’m applying for this job, or whatever. And boom, there you go. You got your social hacking right there. Yeah. Wow. That’s crazy. So you need to create a password, like a phrase for people. Uh, that’s gonna be a reality whenever you’re talking to someone to be sure that you’re talking to the right person. Yeah.

Brent: They need to know your, they need to know your passcode.

Mike: Wow. So, so on the acquisition side, you know, it’s more around lead intake, possibly analyzing properties, uh, automating some of those things. But the, yeah. You’re seeing relationship stuff is still gonna be winning out for a while.

Brent: Yeah. So, and you’re seeing like even, uh, I think deal machine just launched, uh, last week.

Brent: They launched like up their alma. I believe it’s what it’s called. And it’s basically if you were a brand new wholesaler just getting into this business or a brand new investor, just getting into it like that looks pretty, I haven’t gotten the chance to use it yet, but it looks pretty good because it’s given you like helpful tips on like how to analyze the property and it’s giving you all the information.

Brent: Now that’s assuming that it has all the information it needs. It might be a little bit harder if you’re in like a non-disclosure state like Mississippi, uh, but it’ll tell you like, this property last sold for this should be your max allowable offer. Uh, all these things. So it’s, it’s. Basically doing a lot of the research and study for you to help you make better decisions.

Brent: And right now, I think that’s the most effective use case of AI is to basically speed up your learning curve and help you make better decisions. Uh, getting, you know, financial analysts are also done, they’re on the chopping block.

Mike: Hmm. Yeah. How, how, so let’s move into dispo on the dispo side, like typically people have had a leg up over, it’s kind of like data, right?

Mike: Like, I know who is buying, I know who’s paying cash. I. It’s been really archaic. Like, can you get access to your mls? Is it a disclosure state or not? Can I find out what they paid in Texas? You can’t, if it’s a cash buy, you know, if it’s not on the mls. And so how do you think, um, so this is probably an area where it’s more about, um, aggregation of data than it is AI necessarily.

Mike: It’s just, yeah, like talk about a little bit about how dispo dispositions of properties might be impacted.

Brent: I, I mean, it’s obviously gonna become much easier and more automated. Um, I can’t tell you how many times I’ve wasted time on the phone with a buyer who’s got a million questions about a house when I’ve sent ’em literally everything they could possibly want.

Brent: I mean, I got to the point where I just started every house that we were gonna wholesale. I never knew if I was gonna wholesale, if I put it under. My philosophy was if I put it under a contract, I’m buying it. Unless there’s something I find that’s, you know, scary, scary, wrong with it. So I always. I always put it under contract and I paid for an inspection.

Brent: Now that might be a $300 expense, but I did took it as a cost of doing business. And if I found something on that inspection report, well then I can always go back to the homeowner and be like, Hey, look, I, I didn’t know this was, this was a thing. Clearly this is an issue that we’re gonna have to fix.

Brent: That’s a lot more than what we originally discussed. Right. You know, and they’ll work with you usually nine times outta 10 on, on renegotiating. So you’ll be in a better shape. But, You know, as far as dispositions go, it’s, it’s gonna be just simply push a button and you’ll have, be able to have hundreds of conversations with everyone on your list, uh, automatically without ever having to actually talk to them.

Brent: Uh, and then just getting, uh, when someone gets through the funnel essentially, uh, here’s a contract, boom, and here’s it back.

Mike: Yeah. Yeah. Cuz at the end of the day, like, and there have been some people that have, this was an ai, but just certainly during Covid, they would go in and they would take, um, you know, 3d, uh, pictures and videos and people could kind of be there without being there, right?

Mike: Yeah. And so if you have that married together with answers to every question you could possibly have, then you don’t, I guess you don’t need a human salesperson necessarily that’s selling it, right?

Brent: No. Yeah, because my, my thought philosophy is if I send you everything you could possibly need and you’re a real buyer, then I should never really even have to talk to you.

Brent: Right? Like, yeah, yeah. Like, I, I’d be happy to talk to you, but like, if you’re a real buyer and you got an inspection report and you’ve got all the photos, you’ve got everything you could possibly need, you know, the numbers. What do you need me for? Like, this is, this is your decision to make. Yeah,

Mike: yeah, yeah.

Mike: And this is a little bit of a side note here, but what, what do you think the impact of AI is gonna be on kind of the, uh, Just the realtor, uh, structure in America. I mean, I think right now, even for the past like 10 years, people are pretty much finding the houses they wanna look at and just using the realtor as the key holder, the gate, the gatekeeper, I guess, to get in and outta properties.

Brent: But yeah, to go in and look at it. Right. Um, look, I mean, we’ve, we’ve all gotta adapt and overcome. I’m actually a licensed realtor myself. Um, it’s. I think you, I mean, I don’t know if you’ve seen, did you see the Zillow plugin launch? Uh, I mentioned it the other day. No, but, uh, so they’re, so chat GBTs getting plugins, and this kind of really changes everything because it gives it access to the internet, gives it, basically any business can build a plugin.

Brent: Uh, but they, they can, uh, ship out to anybody that wants to use it. So Zillow is basically going, Hey, All gotta do is go in and I can literally ask it any question. Like, I’m looking for a three bed, two bath that fits, you know, this objective, this goal, whatever. Do you have anything in this area? And it will literally start finding everything and spitting ’em all.

Brent: Right, right out to you, right inside of chat, C p t. Hmm. Uh, so think about that as, as an investor wise, right? Uh, if I, if I’m setting parameters that say, you know, I’m looking for. These types of properties and these neighborhoods that fit this description that were recently canceled or, or are pin, uh, pined but canceled or didn’t go through or whatever, I can get all that information sent to me just with a simple question so I get to treat it.

Brent: So as far as realtors go, it’s like, look, you know, I’m not gonna downplay the, the, the good realtors because the really good ones are worth their weight and gold. Uh, but if you’re playing in that kind of part-time mediocrity, I’m just kind of doing this to hopefully get a listing here and there. It, I mean, it’s really not worth it.

Brent: Uh, but I don’t know. I mean, it’s all gonna come down to regulation. I think with that. NA r has a lot of impact on that, but they’re facing their own, uh, litigation, so who knows? Yeah.

Mike: And I think back to what we talked about, acquisitions, I mean, that relationship is still valuable, right? For the people that do, for the people that do a good job.

Mike: I, I don’t, you know, I’m not here to, to bash, uh, realtors, but like you said, there’s a lot, there’s, there’s some good ones and there’s a lot that, that aren’t great. And I think the average, uh, Agent and especially even before the inventory shortage. I mean, I think the average agent in America lists like two houses a year.

Mike: I mean, it’s a real small, it’s like a couple friend and family type things. It is typical, right. And so, right. Uh, and those are the ones that are probably the necessary evil. Like, Hey, my buddy’s a agent so I’ll let him show us access. But you don’t really need it cuz you can see everything you wanna see online anyway.

Mike: Right. Yeah. Interesting. Yep. So let’s, let’s get into, uh, staffing. We talked about this a little bit already, a lot of administrative type things that can be, you know, easily outsourced, uh, overseas right now. Just general staffing and maybe even talk about, not even, um, like general administrative, but just.

Mike: Job search for highly qualified people. Like we, we, we’ve been searching for some, you know, some high-end developers and stuff like that. And it, it’s a cumbersome process, right? To find those people and interview tons of people. And maybe just talk about like, how AI is gonna, uh, maybe change the game there for, for businesses that are staffing up.

Brent: Yeah, just, I just looked at, uh, I didn’t really go too deep into ’em, but I shared it on my newsletter earlier. Uh, there’s already several companies that are working on, like HR that are basically powered through ai. Holly, I think Meet Holly, right? It’s either Holly or Meet Holly ai, um, is one of those companies, and they’re basically using AI to, to help you with your hr.

Brent: Um, I mean, obviously I have the same struggles you have. I mean, you’re working on building, uh, platforms and things of that nature. The reality is though, and this is the day that I’m waiting on because I’m, I’m actively learning how to code now I’m learning about machine learning now. Cause I believe this is our, this is my internet moment.

Brent: Right. Um, real estate’s cool, but it is, it’s not the internet. Right. Um, and what I’m finding is, is that the future is, this is the future. If you can describe it, you can create it. Mm-hmm. Uh, and that goes for anything. If you can, if you can describe the app that you want to build, you can build it without having to ever hire a developer to build it.

Brent: Uh, and it’s all gonna come down the same, back to prompting. The better you are at describing things, the better it will work. There’s already several projects that are working on that. Um, and we can get into like auto, like a agents, right? Uh, that’s kind of been in the hot topic recently is what they call auto, G P T or baby agi.

Brent: These are people who are open source building, uh, what they call auto agents. And essentially you give it a goal and it starts creating tasks based around that goal. So it just spawns all these agents and it goes out to the internet. It researches, it, pulls what it thinks it needs, and it just starts building.

Brent: The problem is, is that like it’s still a little buggy, it’s early. Uh, the second thing is, is like there’s only so much memory it has and it could also, you know, Feed up a ton of your money cuz you’re having to plug in your API for open api, open AI into that platform. So it can just as every time it’s running, it’s just running, running, running, running, running, running into it, figure till it feels like it’s, it’s met its goal.

Brent: So again, back to describing exactly what you want really well. Mm-hmm. But it’s doing all these tasks for you. I mean, I built an entire, um, like essentially press release, um, Ideas for, uh, uh, presentation spreadsheet. It built all the presentations out other than the video, it just gave me all the text, but it was building all the, doing market research, doing all these things for me in the background simply because I asked it like they gave it one goal and it starts doing it.

Brent: So anybody wants to go and like play with those tools. Uh, all you need is open api, open ai, API key, which you can get on open ai. Go to, uh, search God mode AI or baby agi, one of those, you’ll find a platform that somebody built on top of their code and you just plug your a a P I key in there and it’ll literally just go to town, uh, and watch it work.

Brent: And it literally will show you like, what it, what’s it thinking about? Okay, this is the next task, here’s how I accomplish the next task. And it’s just running. And then it goes to the next task and completes until it, until it’s done. Wow. I’ve seen it. I mean the people. So one of the coolest things that I’m seeing right now is this kid who has absolutely no idea how to code at all.

Brent: And he is building what he is dubbing like Jar, G p T. So he is teaching these auto agents how to open blender, open Unreal engine, uh, and create, uh, basically create a, uh, Pixar movie. Basically you just put in a book and it’ll, it’ll animate the entire thing and turn it into a Pixar movie. Um, and I think that’s kind of the, again, back to, if you can describe it, you could build it.

Brent: Yeah.

Mike: Wow. Interesting times, man. So what, what else are we, what, what do we not talk about today that you, you see impacting the real estate

Brent: investor side? I don’t know. I mean, both. I’m like you, right? I’m extremely excited about the future, but I’m also extremely terrified. I, I, I don’t think we’re at the point where we have to worry about some kind of sky nett type situation just yet, although that is, that is still on the table as much as, as funny as it sounds, it is still very much on the table.

Brent: Um, but what I am more worried about is the impact on jobs because, We talked about, great, it’s great for a [00:29:00] business owner that I can replace, you know, half of my staff or you know, even 30% of my staff. Well, what happens when that’s 30% of the global economy, right? Are we buying real estate then? Like, who has money?

Brent: Yeah. Uh, that’s, that’s kind of my biggest fear. Uh, there’ll be this period cuz

Mike: you know, we, we buy houses for people that are in distress. Not that we wish. That distress on

Brent: any, any one, right? Yeah. There’ll be, there’ll be this period that there will be a lot of, uh,

Mike: it’s easier hope to buy. People won’t transition from owners to renters probably.

Mike: Right. So if you’re buying hold, there’ll be some opportunities there, but eventually, you know, how do people pay the rent?

Brent: Right? Right. Yeah. That’s kind of the, the big problem here. And I, and that’s why I’m a firm believer and proponent of, uh, a ubi. I don’t have all the answers, but I do believe that’s an, that’s an issue and that’s why I’m working towards creating a more fair and equitable internet, um, because I believe our.

Brent: Data, our personal data should be private property and treated as such, and we’re more than willing to give access to it. We’ve shown that, uh, but we should also be getting paid for it. So that can create like a, my goal is to create a U B I without taxation legislation or any government involvement. So explain that a

Mike: little bit.

Mike: Uh, basically where people can earn money from sharing their own data. Right when the average wouldn’t, the average, and, and I hate to sound like negative with the average kind of low income person, would basically just say, just take it All right. I mean, just the same person that’s like, you know, yeah.

Mike: Donating plasma right now, because that’s all they can do. Right. It’s just take, take whatever you want, just pay

Brent: me. Yeah. They’re pretty much art, right? So my goal is to make it to where you can select. Whatever you want to share. Some people like you and I are myself, whatever may feel like I don’t wanna share that kind of data.

Brent: Yeah. There will be a lot of people who say, just take it all. Guess what? They are taking it at all already. All right. Uh, Googles the metas, all them are taking it all already. Uh, and they’re doing it with your permission through a terms of service agreement, but they’re not giving you any, anything of [00:31:00] real value, uh, for doing that.

Brent: So my goal is to make a fair exchange, right? I’ll get you, give me permission to use your data. And every time your data is accessed, you get a piece of that, uh, that action. Now, we’re not talking about life-changing sums of money, but it’s better than nothing and it’s better than what we’re currently getting.

Brent: Yeah.

Mike: Interesting stuff. So what can people do? Uh, this is, this is gonna a little bit of a loaded question, but what can they do to prepare for this? And, and this is the same thing people should have been doing all along, is focus on skills that are transferrable to other things and having a skillset that’s, you know, if you were, if you were basically a, a buggy driver like a long time ago, like your days were numbered, right?

Mike: So what can people do to kind of prepare for this, do you think?

Brent: I mean, honestly, you need to do as much research as humanly possible yourself and, and come up with your own conclusions. My conclusion is that, um, we have to rethink how society works currently. Everything from our education systems to our political systems, everything, uh, finance, all that.

Brent: We have to rethink a lot if we’re going to truly. Evolve into a species that, that wants to, uh, inhabit this earth for, for a long period of time. And that’s simply the reason I say all that. And again, I’m not a dor. I just know that people will find this very hard to believe when I say that. Like, look, this thing is, this is serious.

Brent: It’s, this is not the horse and buggy situation. Right? Right. You know, there you could say it does. You know, well, you know, we have cars and there’s more jobs that were created from that. There’s all these issues. There’s the problem is, is I’ve not heard one researcher say, well, this is the exact same. This is the jobs that’s going to create.

Brent: No one can pinpoint that, and no one ever really has been able to pinpoint that until it happens. But what Agi I really is, is, uh, uh, Artificial intelligence that’s more, that’s, that’s [00:33:00] more useful than a human. I mean, it’s already smarter. Chatt is already smarter than, than humanity, than any, any single human because it’s so, it’s so versed on so many different things, and it will hallucinate from time to time.

Brent: But I think the biggest problem is like, what do we do when humans need not apply? Right. What does that look like as a, as a society when we don’t have jobs? When we can’t have jobs, and then the jobs that we do have, like what do we do? What does life look like when work is not the centerpiece of your life?

Brent: Yeah. And it’s a fun and interesting question, but it’s also a very challenging when the answer cause it, it, it pokes holes in everything that we know as, as our society. Yep. Yep. Uh, I look forward to the day when none of us have to work, like, I feel like I’ve done the last 20 years of my life. I feel like I’ve done everything to not work because I’ve always went after things that I enjoy doing.

Brent: Ever since I graduated high school, I moved to Chicago, went to go work for a record label. Like [00:34:00] I always figured out a way to travel, do the things I love, to make money and make a living. Um, so I’m one of the, the few people that have never really had like the, that corporate job that they hated or, you know, had to go work, uh, you know, shitty manual labor jobs out in the field somewhere.

Brent: Even though I’ve done those, I grew up on a farm. Um, I, well, I, I’ve just, I just want to know like, what do we all do? Like, what are we all right, what are, what are we gonna do? Like, what is money? Yeah. Interesting stuff. I know I’m over here, like, probably just rambling and ranting. No, it’s,

Mike: it’s like, it’s, it’s hard because it’s hard to banter cuz you don’t know.

Mike: Like, it’s not like, well here’s what I think’s gonna happen. I have no idea. You know?

Brent: Um, I mean, I, I think there will be a, within the next five years, half the half the, uh, Population on this country, on this planet will have to be reskilled or up trained to something different. Uh, transportation jobs. Are pretty much done, automation’s taken care of.

Brent: A lot of the, I mean, they have already automated the, the crap out of everything, but when you get more general purpose robots that are meshing with the ai, which is happening at the same rate of speed that we’re seeing on other things, you got, that’s what people don’t realize is that now that everything has become a language, everything is working in a singularity towards one goal.

Brent: Right? Uh, and it’s moving at an exponential rate that we have never seen in any kind of industry, any kind of technology, anything. Um, so that’s why you saw like the, you know, the, the, the leaders of AI saying like, Hey, we need to pause for like six months. Uh, and I wasn’t even a big proponent of the pause.

Brent: I’m not a proponent of the pause of research. Uh, I’m a proponent of pausing of public deployment until we can figure out, hey, what’s, what’s going on? Because there’s things that they don’t even understand themselves. They don’t understand why it’s learned languages that it was never taught. It just learned on its own.

Brent: Yeah. And no one can explain why that happened. So like, maybe we should like really figure out what, what we’re unleashed into the public first and what the repercussions could be before we just do this massive employ deployment. Because what happened is Google’s been doing AI for a long time, right? Uh, they’ve had, I mean, they bought Deep Mind years ago.

Brent: They were part of the Alpha Go that, uh, beat the best chess players in the world. They’ve been a part of it for a long time, but they weren’t releasing anything to the public, which again, There’s a, you know, damned if you do, damned if you don’t type thing. It’s like when, when you release something like that and when you keep it private.

Brent: Um, open AI came out, released chat G P t and caught Google on their heels and now they’ve been trying to race to catch up ever since. But what happens is when you create that race, everyone gets in on the race and no one’s really concerned about the casualties that happen along the way. As long as I beat, as long as I beat them.

Brent: Yeah. Yeah, absolutely.

Mike: Well, Brent, I know you share a lot of, uh, information online about this, uh, uh, on your, I dunno if you refer to it as a blog, but where, tell us where people can go, kind of follow along with your learnings and your, uh, and my takes. Your takes,

Brent: takes on everything. Yeah. So I, uh, sent my daily newsletter called Ideations.

Brent: That’s a I d e a t i o n S. Dot com. Um, that’s where every single day I’m, I’m taking Twitter threads, right at threads, uh, newsletters that I’m reading, research papers that I’m reading, and I’m just breaking ’em down in kind of like two paragraph common, you know, common sense. Here’s what’s happening, here’s the impacts, here’s what’s, you know, what’s what this means.

Brent: Sharing, you know, five to six cool tools that I’ve come across every single day and usually throw in a video. And then occasionally some instructions on like, here’s, here’s a cool prompt that you can use it. Here’s how I used it. Um, things like that. So I do that, like I said, three to five times a week I write that newsletter and it’s a lot of fun.

Brent: And right now we have about, I think six or 7,000 subscribers on that. So we have a 50% open rate. So it’s working, it’s, it’s doing something and it’s free to join. Uh, there is an option to pay monthly, but that’s just this show support. And I do a, a monthly call with the premium subscribers, so, It’s, it’s $5 a month.

Brent: It’s pretty cheap. Yeah.

Mike: Yeah. Awesome. Well, we’ll add, uh, we’ll add the link down, although for those of you that heard it but didn’t write it down for how to get the ideation. So, Brent, hey, thanks for, uh, sharing your knowledge with

Brent: us today. I’m hoping that it opened the eyes to some bigger issues, and I know this, this is all about real estate and I look, I love real estate and I, I’m a firm believer that it’s the easiest and quickest way to become truly wealthy.

Brent: Um, As, as far as like, you know, not having to work for a living, um, I just want people to understand that, you know, while I may seem like things, I’m talking about things that are 10 years off, I’m not talking about things that are 10 years off. I’m talking about things that are a year out that are gonna have severe impacts on everything.

Brent: While it’s all, it’s great to think about how can this benefit me? Well, I think we all need to be discussing how can this benefit everyone? Yeah. And what that world looks like moving forward. But at the same time, yes, be using it in your businesses. Learn how to, how to, uh, automate a lot of your processes.

Brent: Take advantage of it because if you’re not, you’re gonna be one of those that’s left in the dirt. Yeah. Yeah.

Mike: Awesome. Well, good stuff. Exciting and scary at the same time. A little mixture of both, I guess. Yeah. Yeah. But, uh, thanks for, I’m optimistic. Look at the end of the drive. It’s always been, I mean, I’ve been in the real estate investing industry for 15 years and it’s always been a race to who can be a better operator, who can be more efficient.

Mike: Right, who can do all these things and, and, and that race is just, uh, is certainly picking up speed, right? And so, right. You need to kind of evolve or you’re gonna die. But, uh, hopefully, you know, some bad things that could happen don’t happen in the process. I

Brent: guess. Let’s hope not. I’m very optimistic that we’ll get it right.

Brent: Um, it’s just my goal is to create awareness on, on what the problems are. Yeah. [00:40:00] Um, and then moving past that again, it’s just very simple. Like learn to be using. Like, you should be using chat g p t every single day for something, for at least spend 30 minutes every single day. Um, and I ask it questions, treat it like it’s, treat it like it’s your mentor.

Brent: Uh, I, look, I used to sell courses and mentorships and things like that. Like I, it’s really not a, it’s really not necessary anymore. There’s nothing, there’s a lot of money that could be paid for like real guidance, right? I got real mentors that’s worth their weighting gold and they’re definitely worth the money.

Brent: But if it’s a course, like unless it’s on something brand new that. Uh, chat. G B T wouldn’t have access to which it’s coming anyways cause they’re have integrating the web plugin. Um, there’s really no need because I’ve literally learned everything I could possibly want to learn about how to build a, a social media company, what the presentation should look like, what the press release should read, like what the video of the commercials, all these things.

Brent: I just asked the questions for the longest time. I just had all these roadblocks of, uh, you know, I don’t know how to do that. I don’t know how to do that. Uh, talk to it like it’s. The expert at everything you could possibly think of and ask it the right questions. And I promise you, you’ll be amazed at what you can learn and how fast you can learn it.

Mike: Yeah. Uh, and use that opportunity to improve your skills so that this is less of an issue for you, right? Correct. Yeah. Awesome, Brent. Hey, thanks so much for sharing your time with us today. Thanks, Mike. Everybody. Hope you got some good value from today. Uh, don’t be scared. Uh, there’s lots of opportunity here if you use, these are just like, there’s lots of tools out there that in the wrong hands can be used against you, and in the right hands can, can be, uh, used for good, right?

Mike: So I think that’s the key here. Still plenty of opportunities in the real estate investing industry that’s not going anywhere. Just do the right thing for people. Serve people. Uh, and make some money along the way. So thanks for listening to today Show. Have a great day. See you on the next show. There are three ways I can help you start or grow your real estate investing business if you’re a new investor in just getting started, the Flip Nerd Investor Coaching program is the most effective program in America.

Mike: I’ve been coaching and mentoring new real estate investors for 10 years. And my students have literally purchased thousands and thousands of properties. Many of them started with little to no experience at all. Our program is a Paint by Numbers program where we tell you exactly what to do week by week to make sure that you don’t get distracted on your way to results.

Mike: We show you how to build a real business, not just create another job for yourself. New memberships are limited. You can learn more and apply. Or schedule a call with me and my team at lipner.com/coaching. If you’re an experienced investor doing a minimum of 10 deals a year, up to 500 deals a year or more, or have a multi-million dollar real estate portfolio already, you should check out our powerful Investor Fuel Real Estate investor Mastermind.

Mike: Over a hundred of the nation’s leading real estate investors are members, and it’s not uncommon for our members. To two to five x their business just from getting around other members At Investor Fuel. At Investor Fuel, each of us are business advisors to one another’s businesses, but we don’t stop at business.

Mike: We focus heavily on becoming better people and living fuller lives. If you’re looking. For fuel for your business or fuel for your life, please check out Investorfuel.com. Applications and interviews are required as most investors are not a fit for our community. Please learn [email protected] if you’re not ready for coaching or masterminds, but eager to start learning more about investing, please join our private Facebook group by visiting FlipNerd.com/facebook. New members get access to free training from us right [email protected] and it’s a community to safely ask your questions, a great place to get started, simply go to FlipNerd.com/facebook to request your access today.

Source: flipnerd.com

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Apache is functioning normally

May 23, 2023 by Brett Tams

If you’re looking for an affordable term life insurance policy that you can obtain quickly, you need to check out Ladder. Their streamlined online application can have you approved in a matter of minutes. And according to Ladder, many applications are approved without a medical exam requirement. Learn more in our Ladder review.

If you’re looking for an affordable term life insurance policy that you can obtain quickly, you need to check out Ladder. Their streamlined online application can have you approved in a matter of minutes. And according to Ladder, many applications are approved without a medical exam requirement.

In this Ladder review, I’ll let you know what types of policies they offer, key features, who is eligible, and how much you can expect to pay.

  • Easy to use online applications
  • No medical exams for up to $3M in coverage; just answer some health-related questions
  • Adjustable coverage

Table of Contents

Introducing Ladder Insurance

Ladder is a California-based online life insurance provider offering coverage through established life insurance companies. Founded in 2015 and launched in 2017, Ladder’s insurance partners include Allianz Life Insurance Company of New York, Fidelity Security Life Insurance Company®, and its affiliate, Ladder Life Insurance Company.

While the entire application process is online, you can get help from licensed insurance professionals, if needed, who are happy to help.

How Ladder Term Life Insurance Works

Ladder only offers term life insurance policies. Ladder’s mission is to offer affordable policies with speed and ease. Term life insurance best fits that product type.

When applying with Ladder, you should be aware the company does not offer policy riders. These optional additional coverage provisions provide more benefits but at a higher premium. That higher premium is the reason why Ladder doesn’t offer them.

Ladder’s most unique feature is that it allows you to increase or decrease your coverage as needed.

Laddering Up/Laddering Down

laddering-up-screenshot

The name Ladder hints at its most unique feature – the ability to increase or decrease your coverage as needed. The process is known as ‘laddering up’ or ‘laddering down.’ Existing policyholders can increase their death benefit amount as their needs change, subject to underwriting and approval.

Conversely, if your coverage needs decline, you can reduce the death benefit. In short, Ladder Life puts you in charge of the policy’s face amount and the premium you’ll pay. You can request a change to your coverage by visiting the Ladder account page.

Laddering your policy, up or down, is completely free. And you can ladder your policy as often as you like. Naturally, the premium will increase if you ladder up the policy amount. And if you ladder down the death benefit, the premium will decrease.

Term Length Options

Ladder offers terms ranging from 10 to 30 years, the maximum term you can qualify for, regardless of age. That said, your age at the time of application may reduce the maximum term for which you qualify. The maximum issue age is 60.

Ladder uses a simple calculation to determine the maximum term length of a policy. Your current age, plus the term length, cannot exceed 70. For example, if you’re 40, the longest term is 30 years (40+30 = 70.) If you’re 50, the longest term is 20 years (50+20 = 70.)

Ladder policies are underwritten based on your nearest birthday. For example, if you will be 45 in four months, your age will be considered 45 years, not 44.

Policies are renewable for up to 5 years after the guaranteed level premium term. The new premium will be based on your age at renewal and, therefore, higher, but this is how term life insurance renewals work.

Ladder Pricing

Like all life insurance policies, Ladder policy premiums depend on a combination of factors. Those include your age at the time of application, health condition, occupation, hobbies and pastimes, and even geographic location.

We requested information for a non-smoking 40-year-old male in excellent health with no family history of major illnesses, and we received the following quotes for $1 million in coverage:

  • 10 years – $37.50 per month
  • 15 years – $47.70 per month
  • 20 years – $61.80 per month
  • 25 years – $96.90 per month
  • 30 years – $114.30 per month

We then requested a policy for a non-smoking 40-year-old female in excellent health with no family history of major illnesses, and we received the following quotes for $1 million in coverage:

  • 10 years – $35.40 per month
  • 15 years – $46.80 per month
  • 20 years – $52.50 per month
  • 25 years – $77.10 per month
  • 30 years – $88.50 per month

The monthly premiums for men are slightly higher than for women, which is common throughout the life insurance industry. This owes to the fact that women statistically live longer than men by several years.

The premium rate increases with the term of the policy because the longer the term, the greater the likelihood the company will ultimately pay the death benefit.

Ladder Maximum Coverage Limits

Ladder coverage limits range from a minimum of $100,000 to a maximum of $8 million (up to $3 million in CA). If you apply for $3 million or less, you won’t have to take a medical exam, just answer health questions. Applicants applying for benefits greater than $3 million may need to submit to a medical exam.

Policies offered through Ladder have a single death benefit payout, which is paid in a lump sum to the beneficiaries upon the death of the insured. Unlike some life insurance companies, there is no option to distribute benefits in installments or through any other payout method.

As mentioned, Ladder does not offer common life insurance riders, so you won’t have the ability to add provisions, such as a spousal rider, an accelerated death benefit (living benefits), double indemnity (increased death benefit for death caused by an accident), or a conversion provision that enables you to convert the term policy to a permanent, whole life policy before the term expires.

Ladder Coverage Eligibility

Ladder offers coverage for those between the ages of 20 and 60. If you are over 60, you’ll need to make an application elsewhere. Each application is for a single individual, so there is no capability to apply jointly with your spouse or to add your children. Each person will need to complete a separate application.

Policies are available only to US citizens and lawful permanent resident aliens who have lived in the US for at least two years. Ladder offers policies in all 50 states, as well as the District of Columbia.

Ladder Application Process

The application process takes place online, which helps Ladder keep premiums low.

You can apply for coverage in as little as 5 minutes. You will not be required to complete a medical exam for coverage up to $3 million.

But for coverage above $3 million, the approval decision may be delayed several weeks.

Ladder Underwriting

When completing the application, Ladder will request basic information, like your name and email address. In making the underwriting decision, they’ll also request the following information:

  1. Your height and weight
  2. The last time you used tobacco or nicotine products
  3. Your date of birth
  4. Whether a biological parent or sibling has been diagnosed by a physician with diabetes, cancer, heart disease, Huntington’s Disease, or Lynch Syndrome before the age of 60?
  5. Your annual household income
  6. How many children you have
  7. Your remaining mortgage balance

Your answers to these and other questions will determine your eligibility for life insurance coverage, as well as the premium you’ll pay for the policy.

Is Ladder Legit?

Ladder Life is a legitimate term life insurance services provider, offering policies in all 50 US states. The following information indicates its financial strength and how it’s perceived within the insurance industry and by its customers.

Financial Strength

Since Ladder is not the direct issuer of the policies they offer, the company is not rated for financial strength by A.M. Best, the industry’s most well-recognized insurance company rating agency.

But the ratings for two of Ladder’s issuing companies are as follows:

  • Allianz Life Insurance Company of New York, A+ (Superior)*
  • Fidelity Security Life Insurance Company, A (Excellent)*

Since each of the companies is rated “A” or higher by A.M. Best, each is highly likely to have the financial strength to pay the policy death benefit, if necessary.

Ladder’s third issuing company is its affiliate, Ladder Life Insurance Company. Ladder Life Insurance Company has earned a Financial Stability Rating® (FSR) of A (Exceptional) from Demotech, Inc. FSRs are a leading indicator of financial stability, providing an objective baseline of future solvency. The most current FSRs must be verified by visiting www.demotech.com

Third-Party Ratings

In addition to financial strength ratings by A.M. Best, we’ve also considered the credit rating of each of the three providers behind Ladder. The credit rating indicates the company’s ability to meet its financial obligations and continue operations as a going concern.

The news here is as good as it is with the financial strength ratings. The table below shows the credit ratings of two of the companies from two major corporate credit evaluation agencies:

Insurance Company / Rating Service Moody’s Standard & Poor’s

Allianz Life Insurance Company of New York A1 (5th of 21 ratings) AA (3rd of 21 ratings)

Fidelity Security Life Insurance Company® N/A N/A

Customer Service Ratings

Perhaps the best indicator of Ladder’s reputation as a life insurance services provider is to look at the ratings provided by the people who deal most closely with Ladder – its customers. Ladder has an Excellent Trustpilot score of 4.8/5, based on almost 2400 customer reviews. 89% of customers have assigned them a 5-star rating, and only 5 % rated them three stars or fewer.

ladder life trustpilot rating screenshot

We could not locate a rating for Ladder with the Better Business Bureau. However, the BBB has an “A+” (highest) rating for Fidelity Security Life Insurance Company® and has been agency accredited since 1990. There is, however, no BBB rating for Allianz Life Insurance Company of New York, perhaps because the company is an affiliated organization.

How We Evaluated Ladder Life Insurance

We’ve evaluated Ladder based on the policy terms offered, the dollar amount of the death benefits, and the premiums’ cost. We’ve also taken into account applicant eligibility, as well as the apparent underwriting criteria the company uses.

We’ve also considered third-party information about the company, including its financial strength and reputation. Finally, we considered factors that make Ladder Life unique regarding what niche they fill in the insurance industry.

Ladder Pros and Cons

There’s a lot to like about Ladder, but it does lack some key features people look for when shopping for life insurance. Whether or not that matters to you will depend on what you want in a life insurance policy. Here’s our list of Ladder’s pros and cons.

Pros

  • Affordable term life insurance
  • Complete your entire application online
  • Good chance of no medical exam (if you’re in good health)
  • High maximum coverage of $8MM
  • Ladder up or down to change your existing insurance coverage
  • Excellent Trustpilot rating from Ladder Life customers

Cons

Is Ladder a Good Company?

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Ladder is one of the best online life insurance companies for term insurance. While they don’t offer as many coverage options as other providers (term life only, no riders), they provide straightforward term coverage that’s affordable and easy to apply for. You can complete the entire process online, and if you’re in good health, you likely won’t require a medical exam.

Ladder partners with top-notch insurance companies and can boast very high customer ratings. And their Ladder Up/Down features only add to Ladder’s convenience.

Of course, if you fall outside Ladder’s qualifying criteria, i.e., over 60, want universal or whole life insurance, or require specialized coverage via insurance riders, then Ladder is not for you.

The bottom line is if you meet Ladder’s age requirements and are of good health, it’s one of the best places to get term life insurance – which is what the vast majority of American adults need.

FAQs on Ladder Life Insurance

Is Ladder a real life insurance company?

Ladder is a “real” life insurance company that provides online term life insurance. It was founded in 2015 and is headquartered in San Francisco, California. The company offers a range of term life insurance products that can be customized to meet the specific needs of individual customers.

Ladder’s insurance policies are underwritten by companies including Fidelity Security Life Insurance Company® and Allianz Life Insurance Company of New York, both of which are leading life insurance companies. Ladder’s website allows customers to easily apply for and purchase life insurance online, and the company also offers support through its customer service team.

Does Ladder pay out on their insurance policies?

Yes, life insurance policies sold through Ladder pay out in the event of the policyholder’s death, as long as the policy is in effect and the death is covered under the terms of the policy. Life insurance policies are designed to provide financial protection for the policyholder’s loved ones in the event of the policyholder’s death.

Is buying life insurance online safe?

Buying life insurance online can be safe as long as you take certain precautions. Here are some tips to help you ensure that your online life insurance purchase is safe:

1. Do your research: Make sure you understand the different types of life insurance policies available and what each one covers. This will help you make an informed decision about which policy is right for you.

2. Compare quotes: It’s a good idea to compare quotes from multiple insurance companies before you make a purchase. This will help you find the best rate for the coverage you need.

3. Check the company’s reputation: Do some research on the insurance company you are considering purchasing from. Look for reviews and ratings from independent sources, such as the Better Business Bureau.

4. Understand the policy terms: Make sure you fully understand the policy terms before making a purchase. Pay attention to details such as the policy’s length, coverage amount, and any exclusions or limitations.

5. Protect your personal information: Be careful when providing personal information online, especially when it comes to financial information. Make sure the website you use is secure, and protect your personal information by using a strong password and avoiding sharing it with others.

How much life insurance do I need?

Here’s what you need to know on determining how much life insurance you need include:

Your financial obligations: Consider the financial obligations you have, such as a mortgage, car loans, credit card debt, and other expenses. You’ll want enough life insurance to cover these obligations in the event of your death.

Your income: If you have dependents, you may want to have enough life insurance to replace your income in the event of your death. This can help your loved ones maintain their standard of living.

Your assets: If you have significant assets, such as a business or property, you want to have enough life insurance to cover the value of these assets in the event of your death.

Your future financial goals: Consider your future financial goals, such as paying for your children’s education or saving for retirement. You want to have enough life insurance to help your loved ones achieve these goals even if you are not there to contribute.

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Ladder

Product Name: Ladder Life Insurance

Product Description: Ladder is a life insurance services provider that offers term life insurance policies to consumers. It was founded in 2015 and is headquartered in Palo Alto, CA.

[ Get a Free Quote]

Summary

Ladder offers term life insurance coverage of between $100K to $8M with no medical exams for coverage up to $3M (just answer health-related questions). Adjust coverage anytime.

  • Cost and Fees
  • Customer Service
  • User Experience
  • Product Offerings
Overall

4.3

Pros

  • Offers adjustable term life insurance ranging from 10 to 30 years in 5-year increments.
  • The company has a user-friendly website and offers a range of online tools and resources to help consumers understand and compare different life insurance options.
  • Offers no medical exam coverage up to $3M, which may be a good option for individuals who are unable or unwilling to undergo a medical exam as part of the application process. 

Cons

  • No-exam life insurance policies are typically more expensive than traditional life insurance policies
  • May not be the best option for individuals with pre-existing health conditions or other risk factors
  • Do not offer riders on their insurance policies such as: Accidental death and dismemberment (AD&D) rider, waiver of premium rider, or return of premium rider.

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*Allianz Life Insurance Company of New York has been rated A+ (Superior) affirmed October 2021 and Fidelity Security Life Insurance Company® has been rated A (Excellent) based on an analysis of financial position and operating performance, by A.M. Best Company, an independent analyst of the insurance industry. For the latest rating, accesswww.ambest.com.

Ladder Insurance Services, LLC (CA license # 0K22568; AR license # 3000140372) offers term life insurance policies: (i) in California, on behalf of its affiliate, Ladder Life Insurance Company, Menlo Park, CA (policy form # P-LL100CA); (ii) in New York, on behalf of Allianz Life Insurance Company of New York, New York, NY (policy form # MN-26); and (iii) Fidelity Security Life Insurance Company®, Kansas City, MO (policy form # ICC17-M-1069, M-1069 and policy # TL-146) in the District of Columbia and all states except New York and California. Only Allianz Life Insurance Company of New York is authorized to issue life insurance in the state of New York.  Insurance policy prices, coverages, features, terms, benefits, exclusions, limitations and available discounts vary among these insurers and are subject to qualifications.  Each insurer is solely responsible for any claims and has financial responsibility for its own products.

Source: goodfinancialcents.com

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Apache is functioning normally

May 23, 2023 by Brett Tams

It’s almost spring, you guys. I don’t know about the weather in your neck of the woods, but that’s a welcome thought where I’m at, and I live in Texas!

(Northerners, feel free to make fun of my idea of a cold winter. I don’t care. I did not sign up for anything colder than highs of 50 degrees.)

At any rate, I’ve been on a cleaning and organizing kick, a bit of early spring cleaning, if you will. I don’t know what’s gotten into me. Maybe it’s that the days are getting a little longer and that we’ve finally had some consistent sunshine around here. And those might be the reasons we spring clean in the first place, according to TLC’s How Stuff Works:

“Ultimately, spring cleaning may have more to do with simple biology. During winter, we’re exposed to less sunlight due to shorter, often dreary days. With a lack of exposure to light, the pineal gland produces melatonin — a hormone that produces sleepiness in humans. Conversely, when we’re exposed to sunlight, our bodies produce much less melatonin. It’s possible that we spring clean simply because we wake up from a winter long melatonin-induced stupor and find more energy as the days grow longer when spring arrives. After all, it’s easy to allow a house to get a little gross around the edges when you’re sleepy.”

OK, I don’t know about gross. I am, after all, my mother’s daughter. Case in point: Last Christmas, my mother bought me a Roomba. And she did it because we had a lengthy conversation about how great it would be to have a robot vacuum for daily cleaning. In between real house cleaning, of course.

At any rate, when I awoke from my melatonin-induced stupor, I realized that my files, both physical and digital, were a bit of a mess.

Files, files everywhere

My husband and I are selling our vacant land, and we finally have buyers — yea! (Buyers who need things like our septic system design and copies of permits and title documents — boo!)

The good news was that I kept all of these things in a file folder. The bad news was that every scrap of paper related to the land was also shoved into that folder. So, I started organizing the file. That led to organizing our tax return files. Then I just did the whole stupid file cabinet.

Then I realized that some of my files live on the computer, like last year’s tax returns. But my digital file cabinet was a mess too, so I spent a few hours organizing those files.

Not so fresh and so clean

I was quite proud of my gangsta organizing skills. I labeled stuff. I purged. I digitized the heck outta some documents. My files were pristine.

But then I read a report from Experian’s ProtectMyID, and my bubble burst.

Now, as a financial writer, I get a lot of reports and studies in my inbox. I trash most of them (you’re welcome). But this one caught my attention. It was about tidying up files to safeguard your finances and your identity. And the reason that it caught my attention was that I wasn’t doing a lot the stuff they said I should be doing. Gasp! My financial house was gross around the edges!

So, I demanded some answers. Or rather, I kindly requested an interview. Here’s what I learned from Becky Frost, senior manager of Experian’s ProtectMyID.

1. Shred like Steve Vai. Spring cleaning is a good time to get rid of things you no longer need, including old documents. “You probably have documents that you no longer need to keep, like old financial statements from 1992,” says Frost.

But don’t just throw them away; shred sensitive personal documents you don’t need to keep. “If a document has your current address or an account number on it, for instance, you should shred it,” says Frost. “I highly advocate having a personal shredder at home, and today they’re pretty affordable.”

What to look for in a shredder? One that crosscuts, says Frost. “You don’t want a shredder that shreds in strips, which are easy for a thief to tape back together.”

Also, for tax documents, check with IRS.gov to find out how long you need to hold on to records before shredding.

2. As seasons change, so should passwords. Want to hear something sad? I’m so bad at remembering my own passwords that I tried using one of those services like LastPass that remembers your passwords for you. Then I somehow got locked out of that too. This was what that looked like.

So point is, I’m good at setting unique, strong passwords. I just don’t remember them. And to throw another wrench in this operation, I just learned that I need to change my passwords regularly. Double d’oh.

“We recommend changing passwords with the change of every season,” says Frost, “but that’s not something that everyone likes to do.” No, everyone does not.

But Frost had an old-school suggestion for me that she says is perfectly safe in a digital world: Write your passwords down on a piece of paper. It sounded dangerous, but she says it’s “completely fine as long as you store that piece of paper in a secure location, like a locked safe box.”

Other password tips?

  • Passwords should have at least eight characters, including numerals, upper and lowercase letters, and special characters.

  • They should never be obvious, like part of your name or your mother’s maiden name. “Unfortunately, one of the top five passwords people use is still ‘password,’” says Frost.

  • You should have a different password for every account.

“Also, if you’re using something like a bank app, remember to log out of the app each time and to password protect your mobile device’s lock screen,” says Frost. “Don’t give a thief easy access.”

3. Clean out your wallet. Most of us know that you shouldn’t carry your Social Security card in your wallet. If you didn’t know that, get that thing out of your wallet! Ditto for passports, birth certificates, and anything with your Social Security number printed on it.

But Frost goes a bit further, saying that we should only carry what we need on a daily basis. “If you have multiple credit cards, only carry the ones you use most often,” says Frost. “Keep the others in a safe place, which means a box or a drawer with a lock on it.”

And the lock is important. Many times fraudsters and thieves turn out to be family members, friends, or employees, and not masked bandits. “Put a lock on the drawer so you won’t give people the opportunity to commit a crime in the first place,” says Frost.

Another reason to carry the bare minimum? You might lose your wallet. That happened to my dad last week, and he had to remember what was in it to figure out whom to call and what to cancel.

So, after talking to Frost, it seems that I still have some cobwebs to clean. But what about you? Do your files and accounts need a good spring cleaning? Also, I’d like to ask for your paper shredder recommendations, if you have any!

Source: getrichslowly.org

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Apache is functioning normally

May 15, 2023 by Brett Tams

More than 93% of Americans receive their paychecks via direct deposit, meaning the funds are seamlessly transferred straight into their bank account. But did you know that some states allow employers to require that their workers use this payment method? Given that it can be time-consuming and costly for a business to issue paper checks, it can definitely be an advantage to companies.

Here, you will learn about which states require direct deposit and why, as well as learn more about this convenient payment method in general.

Direct Deposits are Electronic Payments

First, let’s quickly define what a direct deposit is. A direct deposit occurs when money is moved from one bank account to another without the use of a physical check. For example, an employer might shift money from its bank account to an employee’s bank account on payday.

Banks use the Automated Clearing House (ACH) network to coordinate electronic payments and other automated money transfers between financial institutions.

When you receive a direct deposit, money goes directly into your bank account, without the need for any intermediary steps, such as accepting the transfer, as you would if you were to deposit a check.

The money is cleared automatically through the ACH and is available immediately. With paper checks, banks might put a temporary hold on the funds while they wait for the check to clear. It can sometimes take some time for a check to clear; several days even.

Because it does away with a lot of cumbersome paperwork, direct deposit has become more and more popular. Direct deposit is not only used to transfer paychecks from employer to employees, but also for things like tax refunds and payments from retirement accounts.

Some government agencies have done away with direct deposit entirely. The Social Security Administration, for example, no longer cuts paper checks, and requires people to accept their benefits via direct deposit or a reloadable debit card.

Which States Allow Required Direct Deposit?

Depending on state law, employers may be allowed to require that employees accept paychecks through direct deposit. State law is not always cut and dried, however.

The rules may depend on whether an employee works in the public sector or for a private company. And rules may not apply to all employers equally.

Here’s a look at the states that allow some form of mandatory direct deposit.

State Mandatory Direct Deposit Allowed? Which Employers Does This Rule Apply To?
Alabama Yes for private sector, no for public sector All employers
Arizona Yes All employers
Indiana Yes All employers
Iowa Yes, for employees hired after July 1, 2005. Employers may not require direct deposit if the cost to employees of setting up and maintaining a bank account effectively reduces their wages to below minimum wage. All employers
Kentucky Yes All employers Louisiana Yes Public sector, state government Maine Yes All employers Massachusetts Yes All employers Michigan Yes All employers Minnesota No for private sector employees, but the commissioner of labor and industry may require direct deposit for public sector employees. All employers subject to state statutes North Carolina Yes All employers North Dakota Yes All employers South Dakota Yes All employers Tennessee Yes Private employers with at least five employees Texas Yes Private employers, except those involved in agriculture or horticulture, household domestic service, or other employment in which there is a written agreement that provides different terms.
Utah Yes Private employers except for those involved in farm, dairy, agricultural, viticulturally, or horticultural pursuits; stock or poultry raising; household domestic service; or other employment in which a written agreement provides different terms.
Washington Yes All employers West Virginia Yes for state higher education institutions. No for employers subject to the state Wage Payment and Collection Act. Wisconsin Yes All employers

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Advantages of Direct Deposit

Whether or not direct deposit is required, there can be some distinct upsides for employers and employees.

Convenience

Direct deposit takes a lot of the legwork out of receiving a paycheck. The funds are deposited automatically and regularly, requiring no trips to the bank or mobile deposits. You don’t need to be home to receive the check. So if you’re on vacation or working far from your regular stomping grounds, your check will go through without lifting a finger.

You may also be able to send some of your paycheck to a savings account, which is a way to automate your savings.

Organization

Keeping track of paper checks can be a pain for employers and employees, who may end up having to file away hard copies of records, such as pay stubs, for future reference. Electronic transfers provide a paperless transaction history that both parties have access to. The transaction history doesn’t need to be stored in a physical place, so it can be referenced from anywhere at any time.

Resource Saving

Sending money via the ACH is often cheaper for employers than printing and mailing paper checks. Generally, it is free for employees to receive payment through the ACH. It’s also greener, allowing businesses to cut back on the amount of paper, ink, and energy that they consume.

Security

It is possible for paper checks to be lost or stolen, and even for someone to fraudulently cash them. Issuers may charge a fee to replace lost checks, and the process of stopping payment on stolen checks may be slow and expensive.

Generally speaking, direct deposit provides a safer alternative for transferring cash since there is no physical item to be lost or stolen.

There are some potential security issues when setting up direct deposit, as banking information must be exchanged between employees and employers. Making sure that the information is passed through secure channels to a person you can trust can help ensure that direct deposit is set up securely.

Speed

How long does a direct deposit take? The swiftness of direct deposit transactions is one of the key benefits. Money often hits your account nearly immediately after a transaction is made. And transactions usually occur at midnight the night before payday, meaning direct deposits may arrive in an employee’s account long before a paper check would arrive in the mail.

Disadvantages of Direct Deposit

Despite the benefits of direct deposit, there are some reasons that the process can be disadvantageous.

Costs and Fees

In some cases the cost of opening and maintaining a bank account can be burdensome for employees, reducing the amount of their take-home pay. Iowa protects against this possibility by disallowing mandatory direct deposit if it becomes a financial burden.

Lack of Attention

Because direct deposit is automatic, you may forget to check deposits in your bank account regularly. That means that if any problems occur, they may go on for a long time before you catch them.

You can avoid this issue by setting up alerts with your bank every time you receive a deposit to quickly see if everything is correct, and if not, nip any problems in the bud.

Cyber Threats

Though direct deposit provides a relatively secure way to transfer money, that doesn’t mean it’s immune to cyber criminals looking to steal sensitive financial information and bank fraud. Protections against cyber threats include using complicated passwords and password protection and avoiding phishing scams that might give fraudsters access to emails and data.

Setting Up Direct Deposit

To set up direct deposit, you must first have a checking or savings account. To receive electronic payments, you must provide your bank account information to your employer.

There may be a specific form that you are asked to fill out, you may be asked to provide a voided check, or you may simply be asked to provide your account information in an email.

Once again, always be sure you are sending your information to someone you trust and through a secure channel. You may want to avoid sending sensitive information, like account numbers, through email, instead handing information directly to a person or providing it over the phone.

Typically you’ll need to let your employer know whether your deposits will be going into a savings or checking account.

Your employer may ask you for other information, such as the name of the account holders on your checking or savings account, your mailing address, and your Social Security number.

Employees can list multiple accounts for direct deposit, which can help them accomplish their financial goals. For example, a worker could direct a portion of the paycheck to a checking account and another to a savings account. That way savings are automated while ensuring that enough is in checking to cover bills.

The Takeaway

Speaking of divvying up earnings to meet specific needs, SoFi Checking and Savings is a good candidate for that — plus much more. It’s a bank account online that offers Vaults for particular goals as well as Roundups to help grow your money. What’s more, you will earn a competitive annual percentage yield (APY) and pay no account fees.

SoFi Checking and Savings: The smart, simple way to manage your money.


SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2023 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.

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.
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Source: sofi.com

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Apache is functioning normally

May 15, 2023 by Brett Tams

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As we transition from childhood to adulthood, there are certain milestones we all must pass. Among the earliest, most significant, and biggest pain in the you-know-what is choosing a new bank. 

Whether you’re starting your first job, saving for a big purchase, or simply looking to better manage your finances, the bank you choose can have a significant impact on your financial well-being. 

With so many options available, choosing the right bank can feel overwhelming. But if you work through it step by annoying step, it’ll be over before you know it.


Factors to Consider When Choosing a Bank

When it comes to choosing a bank, there’s no one-size-fits-all solution. The best bank for you depends on your individual needs and priorities. So before settling for wherever your mom/dad/betrothed banks, think about the most important factors influencing your decision. 

Type of Bank: National, Local, or Online

The type of bank you choose can impact your banking experience in significant ways. There are three main types of banks to consider: national, local, and online.

  • National banks are typically the largest, with branch networks that span the country and a wide range of options. However, they also tend to have higher fees and lower interest rates. Some of the most venerable may also lag behind more modern banks in user-facing technology, including their apps and available features. 
  • Local or regional banks, including credit unions, offer more personalized service, often with lower fees and a more community-focused approach. However, their branch networks may be more limited, and they may not have as many account options or advanced technology — or they could be eons ahead of their behemothic competition. You really just never know.
  • Online banks are a newer option that have gained popularity in recent years. Also called neobanks, they frequently offer low fees, high-interest savings accounts, and advanced mobile and online banking features. However, they may not have any physical branches, which can be a drawback for some customers.

Convenience: Location, Hours, & Availability

When considering convenience, think about factors like the location of branches and ATMs, hours of operation, and availability of customer support.

If you prefer to do your banking in person, look for a bank with branches located near your home or work. If you travel frequently or often find yourself in areas without your bank’s branches, you need a bank with a larger ATM network or fee-free access to third-party ATMs.

Speaking of travel, if that’s something you find yourself doing frequently, a bank with reliable online access or branches far and wide may be a must.

Banking hours are also an important consideration. If you work a traditional 9-to-5 job, you need a bank with extended or weekend hours. Some banks also offer 24/7 customer support, which can be helpful if you need assistance outside regular business hours.

A bank with convenient locations, hours, and availability can save you time and hassle in the long run.

Fees: Account, Overdraft, & ATM Fees

When choosing a bank, it’s important to consider the fees associated with its accounts and services. Depending on your personal tendencies and the account type, look out for fees like:

  • Maintenance fees. Monthly maintenance fees can range from $0 to $25 per month. Some account types waive them if you adhere to the minimum balance requirement or have direct deposit. A few have no maintenance fees at all.
  • Overdraft fees. Banks charge overdraft fees or nonsufficient (NFS) funds fees when you spend more than you have in your account. Overdraft fees can be particularly costly at around $35 per transaction. Some banks, especially neobanks, don’t charge them. However, those banks may block spending when you don’t have enough.
  • ATM fees. Both your own bank and other banks charge ATM fees when you use an out-of-network machine. They can be as much as $2 or $3, meaning a single transaction at an out-of-network ATM could cost you $5 or $6 if both parties charge. Look for a bank with a large network of fee-free ATMs, or consider an online bank that reimburses ATM fees.
  • Foreign transaction fees. If you don’t travel internationally, you don’t have to worry about these. Banks charge them for using your debit card outside the United States. Foreign transaction fees generally range from 1% to 3% of the transaction amount, though some banks go higher and others have no foreign transaction fees. 

Look for a bank with transparent fees and no hidden charges, and consider your own banking habits to choose the account that’s best for you.

Account Features: Interest Rates, Rewards Programs, & Account Minimums

The account features a bank offers can make a significant impact on your banking experience. Common account features to consider include:

  • Interest rates. The interest rate on your account determines how much you’ll earn on your deposits. Most banks only offer interest on certain savings accounts or savings subaccounts. If you’re looking for an account like that, look for a bank that offers competitive interest rates that help your money grow over time.
  • Rewards programs. It’s not terribly common, but some banks offer rewards programs that give you cash back, points, or miles for using your debit card. Look for a bank with a rewards program that fits your spending habits and offers rewards you’ll actually use.
  • Account minimums. Some banks require a minimum balance to open an account or avoid account fees. Check the minimum balance requirements before opening an account, and consider whether you can meet them.
  • Special considerations. Some banks give existing customers special considerations when they open other account types. For example, you might get better rates on a loan, higher interest on a savings account, or extras on your kid’s bank account. Ask about these types of bonuses before opening an account.

Look for a bank with the features that fit your lifestyle and help you achieve your financial objectives.

Technology: Online Portal & Mobile Banking Features

In a time not-so-long ago in a land right underneath us, the info in this section would have been a mere bullet point in the previous one. But the pandemic pushed those of us who are a tad older than Gen Z to acquiesce to the digital revolution if we hadn’t already.  

Since then, the closest I’ve been to a human bank teller is unwittingly passing one in the produce section of the grocery store (I assume). If you’re like me and prefer to stay out of brick-and-mortar banks or just want to preserve your non-corporeal options, online and mobile banking features are a must.

Unless you also hate technology, run the other way from any bank without an app and online portal. If they don’t have them, you can expect them to be similarly behind the times on other things. I bank with a really massive bank, and their app was — I kid you not — just a link to their mobile website rather than a real stand-alone app for way longer than it should have been. And they literally just stopped charging overdraft fees to keep up with neobanks.

Look for a bank with a user-friendly online portal that makes it easy to check balances, transfer funds, pay bills, and view statements. You also need a powerful mobile app with the same features plus mobile check deposit.

But you don’t have to stop there.

Some banks offer additional app-only features that can help you manage your finances and achieve your goals. For example, roundup savings is a feature that automatically rounds up your purchases to the nearest dollar and deposits the difference into a savings account, helping you save without even thinking about it. And savings goals, which online banks may call buckets or envelopes, allow you to set savings goals and track your progress without opening separate savings accounts for each goal.

You’re most likely to get advanced app-only features from online-only neobanks. But you may find these features at traditional or regional banks too.

Make a list of the types of online and mobile features you use and double-check that the bank you choose has an app for that.

The more it matters to you, the more research you have to do. For example, you can look for app or portal walk-throughs on YouTube and check out screenshots on their website or app download page.

Safety & Security: Fraud Protection & Security Measures

When it comes to banking, safety and security are of the utmost importance. You wouldn’t use a bank that was dimly lit and secluded during the hours you needed it. By the same token, you want to ensure your money and personal information are protected at all times. 

Look for a bank that offers two-factor authentication, which adds an extra layer of security by requiring a code in addition to your password to access your account. Also, look for a bank that provides alerts for suspicious activity, such as transactions from an unusual location or unusually large transactions. Some banks may also offer identity theft protection services to help you monitor your credit and detect any fraudulent activity.

It’s also important to consider the bank’s overall security measures, including encryption and firewalls to protect your data from hackers. Check that the bank you choose has a robust security policy and that they’re Federal Deposit Insurance Corporation-insured, which protects your deposits up to $250,000.

Getting Help: Customer Service & Support

No matter how user-friendly a bank’s online portal and mobile app are, there may come a time when you need help from a real person. That’s when it’s important to know what customer service and support options are available.

Ideally, look for a bank that offers 24/7 customer support via phone or chat. If that’s not an option, they should at least have support available during hours you’re likely to have time to use it. Some banks also offer support via email or social media. 

Consider the quality of customer service as well, reading reviews and talking to friends and family members who bank with the same institution.

Finding a bank with stellar customer service is especially important if they don’t have great online or mobile banking options. 

Steps to Help You Make a Decision

Choosing a bank can feel overwhelming, but by breaking the process down into manageable steps, you can make a decision that best suits you. 

  1. Identify your banking needs and preferences. Think about the features that are most important to you. Consider your lifestyle and banking habits as well. Make a list of items to research at each bank. 
  2. Research different banks and compare features. Use online resources such as bank websites and banking and review sites like Money Crashers to learn more about different banks and their features. Make a pros and cons list of the banks that seem to offer the features you’re looking for.
  3. Narrow down your options. Use your pros and cons list to narrow down your options and identify the bank that best fits your needs.
  4. Try a bank’s services before committing. Once you’ve identified a bank you’re interested in, try out their services before committing. No, they don’t offer free trials, but you should think of it that way. Open a checking or savings account, and use their online portal and mobile app to see how easy they are to use. Make sure you feel comfortable with the bank’s customer service and security measures as well. Set a reminder on your calendar to reconsider the bank after three months. If you’re not happy, try something else. It’s a bit of a pain, but ultimately, you’ll be glad you didn’t settle.

Final Word

Choosing the right bank can have a significant impact on your financial — and honestly, mental — well being, but it’s important to remember that you’re not married to your bank. If your bank isn’t meeting your needs or expectations, switch to a bank that does.

It’s also worth having multiple bank accounts at different banks for different purposes. For example, you can open a checking account at a local bank for convenient in-person banking and an online savings account at a different bank for higher interest rates.

The most important factors to consider when choosing a bank are your individual needs and priorities. 

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Heather Barnett has been an editor and writer for over 20 years, with over a decade committed to the financial services industry. She joined the Money Crashers team in 2020, covering banking and credit content for banking- and credit-weary readers. In her off time, she enjoys baking, binge-watching crime dramas, and doting on her beloved pets.

Source: moneycrashers.com

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