Graduate school can be expensive. On top of tuition, you typically need to cover the cost of books and living expenses. At the same time, you may be juggling undergrad student debt.
One way to ease costs is to get a graduate assistantship. If you’re not familiar with the concept, a graduate assistantship is a salaried employment opportunity for graduate students. Graduate assistants work a set number of hours per week and, in return, receive a tuition waiver and/or a monthly living stipend.
Securing a graduate assistantship can buoy finances and boost connections. Read on to learn how graduate assistantships work and how to find one.
What Is a Graduate Assistant?
Graduate assistants are students enrolled in graduate or professional schools who assist departments or professors in a teaching, research, or administrative capacity. A graduate assistant might be paired with a professor who is actively engaged in research or work that might complement their career goals or current focus.
Graduate assistantships often benefit both the university and the student. The university is able to fill positions that might be more costly if filled by a traditional employee. The student typically receives a tuition waiver, monthly stipend, and/or a fixed sum of money to help them pay for graduate school. Some programs may also offer class credit for these jobs. 💡 Quick Tip: Fund your education with a low-rate, no-fee SoFi private student loan that covers all school-certified costs.
Things to Consider
Overall, graduate assistant programs are meant to offer value to potential students, and to defray at least a portion of the costs associated with pursuing a graduate degree.
When combined with scholarships, grants, and other financial awards, becoming a graduate assistant can make the costs of grad school more manageable. Some schools also offer tuition waivers — for some or all of the tuition — for qualifying graduate assistants.
Compensation packages vary depending on the school but tuition waivers are more commonly offered to graduate assistants who are employed by the school already, have financial or other hardships, or are veterans (or the spouse or dependent of a veteran).
Graduate assistantships that offer tuition waivers are often competitive, so it can be a good idea to explore the assistantship options offered by your college or department and apply as early as possible.
Another thing to keep in mind: A stipend typically counts as taxable income, though it isn’t considered wages (which means you won’t pay Medicare or Social Security taxes on it). So while assistantships do bring in some extra money, Uncle Sam will collect a portion of it.
As for tuition waivers, graduate assistants can exclude up to $5,250 worth of educational assistance benefits from their income each year, according to the IRS.
Also keep in mind that many universities prefer it if graduate assistants don’t seek additional, outside employment. It’s a common policy intended to protect a graduate student’s limited bandwidth — being a full-time student with an assistantship can feel like having two full-time jobs. Adding an additional part-time job on top of that could become too much of a strain.
Recommended: Finding & Applying to Scholarships for Grad School
Tips on How to Become a Graduate Assistant
How you go about becoming a graduate assistant will depend on the program and school. Acceptance letters often include at least some initial information pointing students toward any financial aid or assistantship the program might be offering.
You can also explore graduate assistantship opportunities by looking at the school’s or department’s website, as well as websites of professors. In addition, you can check the school’s job boards and social media sites, and even just do an online search using the name of your intended school and the phrase “graduate assistant.”
What if You Need More Funding?
Stipends and/or tuition waivers that come with graduate assistantships can make graduate school more affordable. However, if you still have gaps in funding, you may want to explore scholarships, grants, and federal or private student loans.
Graduate and professional students can apply for federal Direct PLUS Loans. Eligibility is not based on financial need, but a credit check is required.
Graduate and professional students may also apply for Direct Unsubsidized Loans; again, eligibility is not based on financial need.
To apply for federal loans for graduate school, you simply need to complete the Free Application for Federal Student Aid, or FAFSA.
Because graduate students face some of the highest federal student loan interest rates, and loan origination fees, you may also want to look into private graduate school loans and compare offers. Just keep in mind that private student loans don’t come with same protections, such as forbearance and forgiveness programs, offered by federal student loans. 💡 Quick Tip: Need a private student loan to cover your school bills? Because approval for a private student loan is based on creditworthiness, a cosigner may help a student get loan approval and a lower rate.
The Takeaway
Getting a graduate assistantship position can help cover the often high-cost of graduate school. These positions can involve being a teaching, administrative, or research assistant. Compensation may be in the form of a monthly stipend and/or a tuition waiver.
If you aren’t able to get a graduate assistantship, or you have secured one but it isn’t enough to fully cover your costs, you may want to look into other sources of graduate school funding, including private grants and scholarships and federal or private student loans.
If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.
Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.
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SoFi Private Student Loans Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs.
SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Step into a world where sleek lines, open spaces, and a harmonious marriage of form and function reign supreme.
Mid-century may be a classic style from the mid-1900s, but homes built in this style have a timeless appeal. With their distinct architectural features — which often include flat roofs, horizontal planes, and geometric shapes — they embrace simplicity, functionality, and a seamless integration with the surrounding environment.
Nature and lifestyle were key when designing mid-century houses, so many of them were built with floor-to-ceiling windows with views of the yard, sliding glass doors, and many access points to the outdoors.
Incorporating clean lines and basic shapes, simple furnishings, a practical Scandinavian approach with muted color palette, and warm inviting earth tones, simplicity is a notable characteristic of mid-century design. Mid-century modern homes also used spaces efficiently with their split-level design, which makes it easy to see why the this architectural style continues to fascinate with both its practicality and its aesthetic appeal.
Our favorite midcentury modern houses
For those who want to immerse themselves in the world of midcentury beauties, we’ve rounded up our favorites. Carefully restored by their owners while preserving their original character and incorporating modern amenities and technologies, we believe the examples below have done a great job at striking a balance between maintaining the historical integrity of the house and making it functional for contemporary living.
Without further ado, here are 13 stylishly refreshed-yet-classic mid-century modern houses that we’ve covered in the past, many of which had some quite famous owners (or architects).
#1 A secluded mid-century modern home with unique features and views of lush surroundings
There is so much to love about this Santa Clarita property — which was home to ‘Dallas’ Star Linda Gray for almost FIVE decades. Named Oak Tree Ranch after the stunning oak trees that grow on the property, the private California compound has many unique features.
Designed by acclaimed architect A. Quincy Jones, the mid-century house is unquestionably elegant and captivating. True to the principle of bringing the outside in, the floor is made of heart pine, (meaning the heart of the pine tree), sourced from a New Orleans schoolhouse.
The freestanding fireplace is another unique feature of this property. The kitchen was designed by renowned architect Josh Schweitzer who added beautiful racks to hang pots and pans out in the open, pro-style appliances, and a pizza oven.
Sitting on 2.7 acres of lush land, the property has stables for four horses, a tack room/barn, a north-south tennis court, a large swimmer’s pool with spa, organic gardens, koi pond, chicken coop, and an endless lawn to enjoy the outdoors.
#2 This mid-century modern home built by Steele & Van Dyk resembles a semi-secluded paradise
The 8.86-acre property located in the Sonoma County town of Sebastopol is one of the most spectacular (and most lovingly preserved) mid-century homes you’ll find.
It was once owned by Charles M. Schulz, the creator of the beloved comic strip Peanuts and his children have fond memories of the property, which was used by their father as a creative studio.
There were several lots on the original 27-acre property such as Schulz’ main house, his grandmother’s house, a large pond, a baseball field, a miniature golf course, a large swimming pool, an enclosed entertainment pavilion, and his studio, all surrounded by vineyards and apple orchards.
The family who bought the property after Charles Schulz’ ownership made a few changes to the studio but made sure not to alter the nature of the design.
They renovated the studio and turned it into an inviting one-bedroom home which operated as a licensed vacation rental for a few years.
True to the architecture of mid-century modern houses, the former art studio has clean lines, minimal decoration, and large, flat panes of glass windows and doors which allow a connection with nature.
With the home surrounded by natural beauty, you’ll find a four-hole golf course, Redwoods groves, and walking trails lined with numerous rhododendrons, azaleas, camellias, dogwoods, several varieties of ferns, fruit trees, and plenty of flowers.
#3 One of legendary architect Frank Lloyd Wright’s last projects, a mid-century masterpiece
Sitting on 14 acres of protected land in New Canaan, Conn., we find one of legendary architect Frank Lloyd Wright’s final projects, built in 1955, just a few years before his death in 1959.
Known as Tirranna — a moniker inspired by an Australian Aboriginal word meaning “running waters”, as the home is cantilevered over a pond and overlooks a waterfall on the Noroton River — the property is one of Frank Lloyd Wright’s largest residential properties.
The architect also lived here while building the Guggenheim Museum and even used some of the scalloped glass windows from the Guggenheim Museum project to complete the home’s south-facing greenhouse.
Clocking in at a generous 7,000 square feet, the 7-bedroom, 8.5-bath home blends geometric complexity with nature’s flowing curves, in typical Frank Lloyd Wright style.
Throughout the home, the architect combined and contrasted soaring ceilings and open living spaces with cozy and cocoon-like mahogany-paneled bedrooms.
The home’s functional wood-paneled and stainless-steel kitchen epitomizes the mid-century modern aesthetic, while each of the bathrooms are spa-like and adorned with spectacular wood panels and unique features.
#4 A Mid-century home in Palo Alto that has maintained the integrity of its original design
This mid-century modern home is so simple that it reads as sophisticated.
It bears the signature of internationally recognized architect and Frank Lloyd Wright protégé Aaron Green. The 3-bed, 2-bath home features extensive use of mahogany, slab floors with radiant heat, built-in beds, desks and dressers, and Formica counters.
With flat roofs, both the exterior and interior have a clean and functional design. Inside the home, there is minimal decoration and the various cabinetry adds depth and variation in elevation.
The large windows give magnetic views of the yard. All in all, a gorgeous home updated for modern living while still retaining its mid-century authenticity.
#5 One of the most spectacular mid-century modern houses with a Moroccan theme and great views of the Coachella Valley
This stylish home is located in a compound in Rancho Mirage’s Thunderbird Heights — a prestigious gated hillside community adjacent to Thunderbird Country Club.
The mid-century home was custom-built for famous entertainer Bing Crosby and his second wife, Kathryn Grant, and was an absolutely perfect fit for its celebrity owner who loved to live large.
Among its most striking features, Bing Crosby’s former home lists a large living room with a stone fireplace and bar, a chef’s kitchen, a movie theater, and a beautiful and spacious 1,400-sq. foot master suite with a stunner of a walk-in closet and a fireplace, as well as four additional en-suite bedrooms.
Spread over 1.36 acres of land, the phenomenal home has approximately 6,700 square feet of living space that extend into the outdoor areas.
The home’s most famous guests, though, were definitely Marilyn Monroe and John F. Kennedy. In honor of their stay there, the two-bedroom attached casita has been named the JFK Wing.
#6 An architectural gem with mesmerizing views of its lush surroundings and direct entrance to Rustic Canyon Park
Set in Los Angeles, this mid-century home designed by notable architect David Hyun has formerly been the residence of prominent entertainment lawyer Gary Concoff and his wife Jean.
The house dubbed ‘the Modern Tree House’ has large floor-to-ceiling windows which provide scenic views of the century-old trees that surround it and encourage a sense of harmony with the outdoor spaces it’s built around. The combination of the large windows and open floor plans let in a lot of beautiful natural light into the two-story home.
Notable features on the lower level of the house include an eat-in Eggersman kitchen, a full-service bar, a formal powder room, and three bedrooms. The distinctive spiral staircase leads to the primary suite upstairs fitted with generously sized closets as well as two separate offices and a large den/media room.
The massive backyard of the nearly quarter-acre property features a large swimming pool, a unique area for dining set amongst the trees, and a gate directly into Rustic Canyon Park, said to be one of the best parks in Los Angeles.
#7 The lovely mid-century modern house Richard Neutra designed for his secretary
One of the most impressive celebrity homes on our list, Red Hot Chili Peppers bassist Flea’s house is made out of two architecturally significant structures: The first is a modern heptagon-shaped house designed by AD100 architect Michael Maltzan and the other is a lovely midcentury-style house built by famed architect Richard Neutra in the early 1950s.
Clocking in at 1,350 sq ft, the midcentury-style home has 2 bedrooms, and one bath, and is surrounded by walls of glass.
The home was built by Richard Neutra for his secretary, Dorothy Serulnic and her husband, George, back in 1953. Neutra, one of the most influential architects of the twentieth century, made sure that his secretary’s home is as livable and comfortable as it is visually appealing.
He designed several built-ins including a sofa system with a record player and concealed speakers, multiple desks, shelving systems, a dining room table, and a sliding breakfast nook, which are still present in the house today (or, rather, were still there when Flea tried offloading his La Crescenda compound a while back).
Architect Michael Maltzan then built a dramatic, seven-sided house on the property half a century later. The spaceship-like house is surrounded by seven exterior walls (some made out of glass) and is anchored by an open-air courtyard that sits right at the center.
A small cabin built by artist and craftsman Peter Staley provides a little extra space for guests and an eye-grabbing feature.
#8 Master architect Richard Dorman’s award-winning home, the Seidenbaum Residence
Tucked away down a long private driveway into a quiet, secluded compound we find architect Richard Dorman’s Seidenbaum Residence.
With its timeless appeal and unique design, the home is nestled in the Hollywood Hills on Mulholland Drive, overlooking outstanding views of the San Fernando Valley and the Hollywood sign.
Spanning 3,198 square feet, the five-bedroom, three-bathroom home has two peaked roofs and clerestory windows that capture the California sunshine inside the main living area.
Boasting an open-concept layout, the home blends mid-century and modern designs. From the dining and main living areas to the kitchen, the fluid design captures a sense of tranquility amid the walls of glass that draw in the natural light.
Providing warmth and intimacy, the see-through, double-sided fireplace is a show-stopper in the great room.
#9 This elegant home with a zen factor beautifully remodeled for modern-day living
Originally built in 1955, this home offers a fresh, contemporary take on the timeless midcentury style. Esteemed architectural firm OWIU (which stands for the only way is up) updated the property, building on its mid-century modern legacy.
The 1,516-square-foot home is in Mount Washington, a historic neighborhood in the San Rafael Hills of Northeast Los Angeles. It has bright, warm interiors, and is filled with the natural finish of attractive light oak wood.
The house — which has retained its original charm —is all about comfort, timeless design, and an approachable elegance.Kane Lim from the popular reality show Bling Empire was once the owner of this beautiful property.
It has all the standard features of a mid-century home and then some,with floor-to-ceiling windows, clean lines, breathtaking views, and a deck in the primary suite that leads to a Japanese-style garden with bonsai and maple trees.
The house’s exterior has fresh pathways and gardening beds, a gate that leads to the lower portion of the property, and a large open space that has a sculptural staircase and custom wood bench surrounding a fire pit.
#10 A charming, thoughtfully updated former celebrity home on a quiet hilltop
On a quiet hilltop right above the famed Mulholland Drive sits a 4-bedroom hilltop hideaway once owned by power couple Emily Blunt and John Krasinski.
The secluded, single-level mid-century home has a large open plan design and walls of glass that allow light to enter rooms from multiple angles.
With soaring, beamed ceilings, wide plank hardwoods, and original stonework, the living room is as eye-catching as it is inviting and features a gas fireplace.
The primary bedroom suite is one of the main highlights of this home and it looks and feels like a retreat in itself. With its vaulted, beamed ceilings, and massive windows inviting the outdoors in, a sitting area, custom built-ins, a walk-in closet, and a marble-clad ensuite bath with a soaking tub and steam shower, it truly is a stylish and elegant space.
The flagstone patio is surrounded by mature oak and olive trees and features a bubbling fountain, making it a great place to relax and soak in the picturesque views of mountains, the canyon, and the slivers of the city skyline.
#11 A spectacular stilt house with jaw-dropping views and a unique taste of Los Angeles history
Nestled in Sherman Oaks, Los Angeles, this is one of 17 unique homes propped up over the side of the Beverly Glen Canyon. The mid-century house was tastefully modernized by its previous owner, acclaimed architect Donald M. Goldstein. It’s undoubtedly a part of architecture history in Los Angeles.
Known as Neutra’s Platform Houses because they were originally designed by legendary architect Richard Neutra, these gravity-defying homes are incredible. Also known as the Stone-Fisher Speculative Houses (as they were built for the Stone-Fisher development company), the unique abodes were later completed by architect William S. Beckett.
The one-story home creates the illusion of a floating vessel in the sky. The unique structure has a rectangular form, horizontal emphasis, long balconies stretching the full width of the house, and large windows to display magnificent views of the San Fernando Valley.
Some of the notable features of the 2-bedroom, 2-bathroom home include pyramid skylights, raised ceiling and roof lines, a 300+ bottle wine cellar, a Roman soaking tub, and its black metal exterior is coated with a 24-gauge Kynar finish.
#12 A classic mid-century house in a prime location with a long list of past celebrity owners
The star-studded Los Angeles Tree House — carefully tucked away from prying eyes in the famous Mulholland Drive — has attracted names like Ellen DeGeneres, Heath Ledger, and Hunger Games star Josh Hutcherson as its owners.
The charming home with its lush surroundings is as serene as it is private. Inside, the clean mid-century modern style is warmed by a blend of natural textures, with walls of glass opening the home to the beautifully landscaped outdoors.
The home’s most extraordinary feature is its expansive 2,500-square-foot outdoor deck which is pretty phenomenal.
It overlooks the leafy treetops illuminated with ethereal lights at night and is furnished with an outdoor grill, lots of seating areas, and an open-air screening room with a retractable projection screen.
#13 A two-story mid-century gem in Bel Air with artsy appeal
Set in a quiet cul-de-sac, the 5,134-square-foot mid-century modern home features 5 bedrooms and 4 baths and has been fitted with everything from stone counters to auto window shades, radiant limestone floors, and high-end SS Thermador appliances.
The two-story Bel-Air home features dramatic vaulted ceilings that soar over the living, dining, and family rooms.
With its seamless indoor/outdoor living, scenic surroundings and the floor-to-ceiling windows and doors that are popular in mid-century modern houses, the house is flooded with natural light.
The home’s interior is stylishly refreshed with inviting warm-toned furnishings providing a relaxing and enriching experience, with art and pops of color accenting its midcentury aesthetic.
Midcentury modern houses continue to captivate and inspire with their timeless charm and architectural elegance. From their clean lines and expansive windows to their innovative use of materials, these houses represent a design movement that has left an indelible mark on the world of architecture, one that will continue to attract homeowners and renovators for years to come.
Especially since, as we’ve seen with the examples listed above, updating these midcentury gems creates true masterpieces.
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what is COBRA insurance exactly? It is a law that was put into place with the Consolidated Omnibus Budget Reconciliation Act (COBRA). The Act, first enacted in 1985 and revised in 1999, was put in place to protect you and your family if you lose your employer-sponsored health benefits.
More specifically, to help those suffering from job loss during the 2008 recession, Congress passed a 65% subsidy for laid-off workers in 2009 under former President Barack Obama. This way, workers could receive assistance paying COBRA insurance premiums for 15 months while looking for work.
The final three months were paid by the laid-off employee. This subsidy expired on June 1, 2010, though, meaning that those laid off since the end of May 2010 do not have this subsidy. COBRA insurance is still available to those who want access to an employer health plan, but the subsidy is gone, after being extended more than once.
Hence, when I changed jobs, COBRA was there to take of care of me and family in case of a medical emergency.
If you qualify for COBRA coverage, then you have the option of continuing your employer-sponsored health plan for a limited period of time. COBRA requires that three requirements be met before you can qualify for COBRA coverage:
Your employer is obligated to provide COBRA coverage;
You are a Qualified Beneficiary; and
Qualifying Event has occurred
Under COBRA, you may be responsible for paying up to 102% of the health insurance premium on your own. There is an important item to be aware of here. If your former employer paid a substantial portion of your health insurance coverage, you are now responsible for the whole premium payment now.
However, you may find that your premium goes higher without your employer picking up part of the tab.
In my case, that was more than double than what I had been accustomed to paying. Basically, the better your insurance coverage was, the more that you will probably have to pay under COBRA. This can make COBRA unaffordable to those whose incomes have been diminished by a job loss.
What Are the Employer Requirements Under COBRA
Employers are only obligated to offer COBRA coverage if:
they offer an employer-sponsored health insurance plan; and
they have at least 20 employees
If you are a Federal employee, you do not qualify for COBRA Insurance. You will need to contact your human resources department to see about continuing your health insurance coverage.
COBRA Qualified Beneficiaries
If you didn’t take part in your employer’s insurance plan, you will not qualify for coverage.
COBRA coverage may be offered to employees, an employee’s spouse, or an employee’s dependents. In certain cases, this includes a retired employee, and the retired employee’s spouse and dependents. If you are expecting a child or adopt a child during the period in which you are receiving coverage through COBRA, then that child will also qualify as a beneficiary.
You can choose to accept coverage under COBRA just for yourself or for your family. You can also choose to fore-go COBRA for yourself and just cover your spouse or dependent children.
Qualifying Events for COBRA
For the Employee
If you leave your job voluntarily; this includes retirement
If your work hours are reduced so that you are no longer eligible for health benefits under your employer’s policy
If you lose your job for any reason other than gross misconduct
The Employee’s Spouse
If the employee’s work hours are reduced
If the employee leaves the job for any reason other than gross misconduct
If the employee becomes entitled to Medicare
Divorce or legal separation
Death of the employee
Any Dependent Children
If the employee’s work hours are reduced
If the employee leaves the job for any reason other than gross misconduct
If the child loses dependent child status under the employer-sponsored health plan’s rules
If the employee becomes entitled to Medicare
Divorce or legal separation
Death of the employee
Non-Qualifying Events
Please note that the Qualifying Events for COBRA are events that affect your employment status only. For example, if your employer decided to change the type of insurance coverage they provide, that will not trigger a qualifying event. Consequently, you will not qualify for COBRA Coverage.
COBRA Coverage
Your health insurance coverage under COBRA must be identical to the coverage your employer offers its current employees. Generally, this means that you should get the same coverage after the Qualifying Event as you did before. I know in my case, I did qualify for the same type of coverage, so there was no worry if something went wrong.
If your employer reduces coverage to its current employees or cancels its employer-sponsored health insurance benefits altogether, then your coverage will be affected. You will be entitled only to the same benefits as current employees have. This means that if your employer cancels its sponsored plan, then you will no longer be entitled to COBRA.
Providing Notice – The Plan Provider’s Responsibilities
When you become a participant in your employer’s sponsored health insurance plan, the plan administrator must provide you with an “Initial Notice” that outlines your rights under COBRA.
When a Qualifying Event occurs, your employer must provide you with “Specific Notice” that you are qualified to elect continuing coverage under COBRA. Typically, you will get this notice in the mail. Be on the lookout for this. My notice came about a month after I had separated from my employer.
Providing Notice – Your Responsibilities
You are responsible for notifying your plan administrator after certain Qualifying Events occur. These Qualifying Events are divorce, legal separation, or loss of “Dependent Child” status. The length of time you have to report these Qualifying Events depends on your plan’s rules. Many plans require notice to be made within 60 days of the Qualifying Event.
Selecting COBRA
By law, when a Qualifying Event occurs, your employer must provide you with notice that COBRA is available. You may be informed in person, or you may receive this notice in the mail. Once you receive notice, you have 60 days to choose COBRA continuation coverage. If you select COBRA, then your coverage will be retroactive to the day you lost your health insurance benefits due to the Qualifying Event.
If you initially reject COBRA continuation coverage, you still have a chance to change your mind. As long as you are within the 60-day window, you can inform your employer that you do want COBRA continuation coverage. Your coverage will begin from the day you inform your employer.
COBRA Term
COBRA coverage continues for 18 months. If you initially elect COBRA, then your coverage will begin on the first day that you would have lost your health insurance benefits due to the Qualifying Event. If you initially rejected COBRA but changed your mind within the 60-day window, then your coverage will begin on the day you notified your employer.
The COBRA term can be shortened if:
You do not pay your premiums on a timely basis
Your employer ceases to maintain any group health plan
You obtain coverage with another employer
A beneficiary becomes entitled to Medicare benefits
The COBRA term can be extended if you become disabled within the first 60 days of COBRA continuation coverage. To qualify for this extension, you must submit a ruling from the Social Security Administration that says you have become disabled. If you qualify, then you and your family may extend your COBRA coverage for an additional 11 months, but you may be required to pay up to 150% of the premium cost for those additional 11 months.
A spouse or dependent may extend the COBRA continuation period to a maximum of 18 months under certain circumstances. These circumstances include divorce or separation from the covered employee, the death of the employee, a child’s loss of dependent status or if the employee becomes eligible for Medicare within the continuation period.
Filing a Claim for Health Benefits Under COBRA
Health insurance plans are required to explain how to obtain benefits and must include written procedures for processing claims. Claims procedures must be described in the Summary Plan Description.
You should submit a claim for benefits in accordance with your plan’s rules for filing claims. If the claim is denied, you must be given notice of the denial in writing generally within 90 days after the claim is filed. The notice should state the reasons for the denial, any additional information needed to support the claim, and procedures for appealing the denial.
You will have at least 60 days to appeal a denial and you must receive a decision on the appeal generally within 60 days after that.
Contact the plan administrator for more information on filing a claim for benefits. Complete plan rules are available from your employer or your insurance company. There can be charges up to 25 cents a page for copies of plan rules.
COBRA Time Line
The first 44 days—Employers that do not self-administer their health insurance coverage (typically small employers) have 30 days to notify the third-party administrator of the plan of the worker’s COBRA rights after the worker leaves his or her job. The third-party administrator then has 14 additional days to notify the worker of his or her COBRA rights. Employers that self-administer their own group health plans (typically large firms) have 44 days to notify workers of their COBRA rights.
The next 60 days—After receiving notification of his or her rights (as described above), a worker has 60 days to accept or decline COBRA coverage.
The final 45 days—Premium payments for periods before the election of coverage cannot be required before 45 days after a worker elects to accept coverage. But if a worker decides not to pay at the time the premium is finally due, nothing is lost except the coverage. Thus, a worker who is entitled to COBRA coverage can wait—sometimes for as many as 149 days—to see if taking coverage is in his or her best interest. The 149-day period could be shortened if employers or third-party administrators provide notifications in less than the maximum time allowed within the 44-day period described above. For example, if employers or third-party administrators provided a very quick notification, a worker could have slightly more than 105 days to act.
The Bottom Line
If you can’t afford COBRA insurance, consider your other options. There are web sites and insurance brokers that can help you compare health plans, and it’s possible to find an individual or family plan that costs less than COBRA — and isn’t tied to your job.
If you had a high deductible plan at your employer, and have been taking advantage of a Health Savings Account, you can tap into this to help pay for costs. You can also check your savings accounts to see how much you have for medical expenses.
Paying for health care is always an expensive proposition, and with no more COBRA subsidies, and an extension unlikely, it is up to you to see what you can do until you find another job with health benefits.
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About the Author
Jeff Rose, CFP® is a Certified Financial Planner™, founder of Good Financial Cents, and author of the personal finance book Soldier of Finance. He was a financial planner for 16+ years having founded, Alliance Wealth Management, a SEC Registered Investment Advisory firm, before selling it to focus on his passion – educating the masses on the importance of financial freedom through this blog, his podcast, and YouTube channel.
Jeff holds a Bachelors in Science in Finance and minor in Accounting from Southern Illinois University – Carbondale. In addition to his CFP® designation, he also earned the marks of AAMS® – Accredited Asset Management Specialist – and CRPC® – Chartered Retirement Planning Counselor.
While a practicing financial advisor, Jeff was named to Investopedia’s distinguished list of Top 100 advisors (as high as #6) multiple times and CNBC’s Digital Advisory Council.
Jeff is an Iraqi combat veteran and served 9 years in the Army National Guard. His work is regularly featured in Forbes, Business Insider, Inc.com and Entrepreneur.
Many people harbor hopes and dreams for how they will live, achieve professional success, start a family, travel, and more. Whether that means launching a nonprofit by age 30, having three kids, sailing around the world, or all of the above, reaching those goals takes planning and focus.
The same is true of your finances. Money helps fund your aspirations, and it needs care and tending. Solid financial planning can help you realize those dreams, from having your child graduate college debt-free to being able to retire early.
So here’s your guide to setting smart money goals and achieving them, step by simple step.
What Are Financial Goals?
Financial goals are the aspirations you have for how you will bring in income, spend it, and save it. These can be short-term dreams, like financing a vacation to Tulum next winter, or longer-term ones, such as retiring by age 50.
Identifying these goals and then creating a roadmap to achieve them is what smart financial management typically boils down to.
Short-Term Financial Goals
Short-term goals are usually defined as things you want to achieve with your personal finances within anywhere from a few months to a couple of years.
Examples of short-term financial goals could be anything from starting an emergency fund to finding a budget that works for you to saving up for a new mobile phone.
Long-Term Financial Goals
When you pull back and think big-picture about money management, you have likely entered the realm of long-term financial goal setting. These are goals that can take several years or even decades to achieve.
Examples of long-term goals would be saving enough money to buy a house, put your kids through college, or retire comfortably.
What Are S.M.A.R.T. Goals?
When you are thinking about your financial goals and doing some research, you may come upon the acronym S.M.A.R.T. Think of this as a guideline to help you set and achieve your money aspirations. Here’s what it stands for:
• S for Specific: Instead of your goal being “to be financially comfortable,” try to be more precise. Perhaps your goal would be to have no debt except your mortgage and a certain amount in your retirement fund.
• M for Measurable: It can be wise to assign real numbers to your goals. For instance, to save $200K in your kids’ college funds is a measurable aspiration. Just saying, “to pay for college” can be too vague to work toward.
• A for Achievable: Setting unrealistic expectations can lead to frustration and disappointment. Think about your lifestyle, income potential, cost of living, and other key factors, and set reasonable goals.
• R for Realistic: Similarly, plan steps to achieve your goals realistically. Don’t expect to cut your expenses to the rock bottom or ignore the impact of inflation over time.
• T for Time-based: Give yourself specific goals and due dates, such as “Save $500 a month until I have $5,000 in my emergency fund 10 months from now.”
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How to Set Financial Goals
Next, consider the specific steps of setting financial goals. Break it down as follows:
1. Assessing Your Finances
Figuring out exactly what your current finances look like is a vital step. Sure, you probably know when you get paid, but have you checked how much is going toward your retirement savings every pay period or — gulp — exactly how much you’re spending on food delivery? Keeping a close eye on your finances might help you set smarter money goals.
It might seem easy to ignore the finer details of our finances in favor of blissful ignorance, but failing to know where you and your money stand might harm your financial health down the line.
So if you haven’t looked at where your money is going in a while, taking a look at how much money you’re bringing in, how much you’re spending, and how much you’re saving might help you set more meaningful money goals.
• Check out your bank statements, credit card statements, and even online banking records can help you determine where your money is going every month.
• Write down big numbers like credit card, personal loan, or student loan debt. This can help you plan for payoff.
• Consider using tech tools to help you wrangle your finances. There are plenty of apps you can download, and online banking might be able to help you too. Typically, banks offer apps where users can easily access details about their spending and balances. Your credit card bill or app can also often provide a graphic representation of where your dollars fly off to each month.
2. Figuring Out What Is Most Important to You
Once you have a snapshot of your overall financial situation, it can be worthwhile to spend some time reflecting on your money goals: what is really important to you.
While there are many things a person ideally should be saving for, like a down payment on a house or retirement fund, your financial goals might not be the same as your sibling’s or your coworker’s.
Just like your parents always told you: You’re unique. And so is the process of setting financial goals. What might they look like?
• You might want to pay off student debt as fast as possible in order to free up more cash every month.
• You might be working toward public service loan forgiveness and not be as focused on quickly paying off student loans.
• Perhaps your financial goal is to save up an emergency fund or take a vacation in six months.
• You might want to retire and move to another country by the time you’re 55.
It’s likely that your goals will be a mix of short-term and long-term aspirations, as described above.
3. Establishing a Fun Budget
Okay, but what if you just want to go clothes shopping once a month without feeling guilty or take that Budapest vacation you’ve been dreaming about?
Make it work! Setting a financial goal is all about having your money serve you. Here are some pointers:
• Planning out your discretionary spending might not only help keep your finances on track but can also help you inject an extra fun quotient into your life. That’s a win-win.
• When a budget is too harsh and punitive, you might well wind up making impulse buys or otherwise overspending. If you know you have some cash stashed for mood-lifting purposes, you can hopefully avoid that scenario.
But whether you’re focused on saving up for a down payment on a house or a trip to Disneyland, you won’t get there without a plan. Making a budget will get you focused and help you take control of your finances.
4. Staying On Track
Once you’ve decided on a money goal or two, it’s time to put a plan into action. Your plan will vary depending on whether you’re tackling a long-haul climb out of credit card debt or saving an emergency fund. A bit of advice:
• Managing your money isn’t a “set it and forget it” proposition. Life happens. You may get a raise one month, and then have a (surprise!) major dental bill the next. It’s important to check in with your money regularly.
• Adapt your budget when things shift. Everything from getting a nice bonus to having a baby can be a good reason to check in with your money goals and recalibrate.
• Whatever your financial goals, there are tools that can help you along on your financial journey. Having the right banking partner can play a crucial role. Look for a bank that can help you set up automatic deductions from your checking account on payday to savings toward your financial goals. And find a bank that doesn’t charge you all kinds of fees; after all, they’re enjoying the privilege of using the money you’ve deposited!
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Types of Financial Goals to Consider
If you’re looking for help brainstorming how to manage your money aims, here are some popular financial goal examples to consider:
Build an Emergency Fund
Whether you’re easily covering your monthly expenses or grabbing change from the bottom of your bag to buy a coffee, many people are living paycheck to paycheck. But what if that paycheck disappeared or if you had a large, unexpected expense? Enter the emergency fund.
Recent history has taught us a lot about how emergencies can arise. Stashing away an emergency fund might help you comfortably weather a pandemic, a “company-wide restructuring” that eliminates your position, or an unexpected illness that cuts into your freelance earnings.
Consider a long-term financial goal of setting aside about three to six months’ worth of expenses to help you weather any rough financial waters that may lie ahead.
Track Your Spending
As mentioned above, keeping track your expenses is important. Sometimes, spending that starts as an occasional thing (that TGIF latte) becomes a regular expense that drags down your budget.
Or you might find that you are dealing with lifestyle creep, which occurs when you earn more but your spending rises too, keeping you at the same level of wealth.
If you track your expenses, you can see how your money is tracking. You might decide to cut back on streaming services or realize that now that you’ve paid off your credit card debt, you could put more toward retirement.
Pay Down Credit Card Debt
High-interest credit card debt can feel like a treadmill: You keep putting in more and more effort, seemingly without getting closer to the finish line. Many of us struggle with it. The average balance that consumers carry as of the start of 2023 was over $7,000, and the average interest rate as of mid-2023 topped an eye-watering 24%.
With numbers like that, it can take a very, very long time to pay off what one owes, especially if you only make the minimum payment. What’s more, if your balance is more than 30% of your card’s credit limit, your credit-utilization ratio may not look too attractive to the credit reporting agencies (Equifax, Experian, TransUnion), and your credit score may skid south. In fact, some say that it’s financially healthiest to use only 10% or less of the credit your card extends to you.
It’s no wonder that for many of us, setting a financial goal involves the words “pay off my credit card.” Indeed, making a plan to pay down debt instead of focusing on those minimum monthly payments could help you dramatically improve your finances. Your credit card statement will tell you how much to pay to get rid of debt in three years; that can be a helpful guideline. If you need other options, consider:
• A balance-transfer credit card deals, which offer low or no interest for a period of time (typically 6 to 18 months), may also be useful.
• A personal loan, which may offer a lower interest rate. You can use that to pay off the credit card debt and then have a lower amount due to pay off the loan.
• You might also consider a debt management plan or meeting with a nonprofit debt counseling agency if you feel you need additional help.
When you get out from under the burden of this kind of debt, other doors (like to a home you own) may open. It can give your budget just the kind of breathing room you crave.
Pay Off Student Loans
Paying off student loans is another move that can help you reach your financial goals. Doing so frees up funds in your budget for other uses. Some ideas:
• Make extra payments toward the principal when possible. That might mean a little more every month or applying a windfall like a tax refund.
• Refinance a student loan. This could potentially lower your rate and help you pay off your debt sooner.
• Pay biweekly instead of monthly. This means you make an extra payment each year, again helping shorten the timeline to becoming free of student loan debt.
• Enroll in autopay. Federal student loan servicers and many private lenders will lower your interest rate a bit if you opt into automatic payments. While it won’t make a huge dent in what you owe, every little bit can help.
Contribute to Your Retirement Fund
Most of us know we should be saving for retirement, but that financial goal can be easier said than done when there are so many competing places to put our money.
The good news is that when you set up a retirement fund and start saving, even small amounts can grow over time, which makes saving for your golden years a great financial goal. Contributing regularly — whether through your employer’s plan or an IRA — is worthwhile, especially in times like these when inflation is high.
Many experts say that a smart financial goal is to be saving 10% to 15% of your pre-tax paycheck for your retirement. One smart move: If your employer offers a company match of dollars put toward retirement, put in at least the minimum required to snag it. So if your company says you must contribute 6% of your salary to get a 50% match, that means if you put in 6%, they will add 3% to your savings. Don’t leave that money on the table!
Save More Money
Another way to hit your financial goals, big and small, is to save more money. Here are a few techniques:
• Automate your savings. Set up seamless recurring deductions from checking to savings for just after payday. Doing so means you don’t have to remember to allocate the funds. And you won’t see the money sitting in checking, tempting you to go shopping with it.
• Challenge yourself each month to give up an expense. For instance, don’t buy any pricey coffees for one month and put aside the savings. Next month, no movies. The following, no takeout lunches. You can do it!
• See about bundling insurance premiums or paying annually vs. monthly to save money.
• Negotiate bills. See if your credit card provider will lower your rate, for starters.
How to Adjust Your Financial Goals if Your Circumstances Change
Sometimes, life throws you curveballs. You don’t get the raise you were hoping for. A family member has a medical issue that requires more money to manage than you expected. Or you move to a new town with a higher cost of living.
In these situations, you may need to ramp down some of your financial goals. Perhaps you can’t have that emergency fund fully saved by the end of this year. You could lower how much you put away and reconcile yourself to the fact that you won’t meet your goal as soon as you would have liked.
This is just another reason why checking in with your money and adjusting your budget often is important.
And don’t forget the bright side: If you get a major salary bump or a windfall, you can use that to crush your goals that much sooner. Staying flexible can be vital, regardless of which way your finances are trending.
The Takeaway
Setting smart financial goals is an important step in managing your money and achieving your life goals.
By taking such steps as evaluating your financial situation, creating a budget, and setting smart benchmarks, you can be on track to check off your aspirations. Whether that means saving for summer vacations, eliminating credit card debt, or retiring early, taking control of your money can be a very good feeling. And finding the right banking partner can help make the process even easier.
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FAQ
What is a good financial goal?
Financial goals need to reflect what’s important to you, but for most people, they are a mix of short-term aspirations (like having an emergency fund and minimizing credit-card debt) and long-term plans, like retirement savings.
How do you stick to a financial goal?
Sticking to a financial goal can be easier if you set up automatic deductions that transfer money from checking (where you might be tempted to spend it) to savings. Also, getting familiar with your finances, developing a plan, and regularly checking your progress are good moves.
What are some money management tips?
It’s a good idea to assess your finances and make short- and long-term goals. Then, allocate a percent of your earnings and set up automatic deductions to your savings; pay down high-interest debt (like credit cards); establish an emergency fund; and start saving for retirement. Even if it’s just a small amount, it will grow!
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After years of competitive bidding wars and rising prices, a new study from Zillow shows it might finally be a good time to buy a home in many U.S. markets.
Zillow researchers looked at three factors to determine which of the largest U.S. housing markets are becoming more buyer-friendly and found that some previously prohibitively competitive markets – including Seattle and Las Vegas – have turned into the best places for buyers this winter.
The three buyer-boosting metrics Zillow considered are:
An increase in the share of listings with a price cut. Price cuts indicate homes are sitting on the market longer – which means more options for buyers, less competition for homes and more room for buyers to negotiate. Many recently white-hot markets have seen large jumps in the share of for-sale listings with a price cut.
Projected increase in rent appreciation over the next year. Rent appreciation has slowed recently, but as mortgage affordability deteriorates due to rising mortgage rates, rents could begin to increase again as some would-be buyers put their buying plans on hold. We know that nearly half of renters consider buying while they’re looking for a home,i and the potential of rising rents also factors in to when it’s a good time to buy.
Affordability relative to the past. We looked for markets where mortgage affordability is poor – but not worse than it was historically. With interest rates on the rise, and mortgage affordability already closing in on its historic norm, prepared buyers may want to enter the market before housing payments become historically unaffordable.
Based on those factors, Zillow found that the cities of Orlando, Boston, Seattle, Las Vegas, Charlotte, Columbus, Portland, Sacramento, Minneapolis and Dallas were the top ten markets for buyers this winter.
“The housing market always lets up a little in the fall, when kids are back in school and the home shopping season wraps up for the holidays,” said Zillow Senior Economist Aaron Terrazas.
“But this fall and winter are shaping up to be more favorable for those buyers who have struggled to get into the housing market for several years amid red-hot competition. Mortgage rates are rising, but will climb much further in 2019 and early 2020. As purchase affordability deteriorates, expect rents to pick back up as some would-be buyers put their plans on ice. Renters who were thinking of buying and decided to hold off may want to take another look this winter, as a steady clip of mortgage rate increases chips away at affordability and more homes become available on the market.”
Mike Wheatley is the senior editor at Realty Biz News. Got a real estate related news article you wish to share, contact Mike at [email protected].
Creating YouTube content is a great way to generate new clients, especially in real estate. Today’s guest, Sam Caudle, started his channel in 2021. Now, just two years later, he gets 99 percent of his business from YouTube with minimal effort and extremely low expenses. Listen and learn everything you need to know in order to start generating real estate leads from YouTube now. In addition to content ideas, Shelby and Sam discuss titles, thumbnails, video length, editing options, and more!
Listen to today’s show and learn:
About Sam Caudle [1:53]
Sam Caudle’s start in real estate [2:41]
Creating a YouTube channel for real estate leads [5:18]
How to get better with content creation [9:44]
The difference between paid leads and YouTube leads [11:22]
Tips for getting started on YouTube [13:23]
A simple formula for success with YouTube videos [14:49]
What to research before recording a real estate video [16:36]
How long your YouTube videos should be [18:32]
Two things not to do when creating YouTube content [20:07]
Why you should not edit your own videos [23:24]
Ideas for creating video thumbnails and titles [24:27]
Topics and tools for getting more views [25:46]
Time blocking video tasks to save you time and more on thumbnails [28:41]
Tips on where and how to shoot videos [32:10]
Why it’s not too late to get started with YouTube now [34:03]
How to convert viewers into subscribers and clients [36:04]
Easy ways to collaborate with editors [38:45]
Expenses to expect when starting a YouTube channel [40:15]
A mistake new YouTubers make that kills channel growth [42:31]
Sam’s plans for his YouTube channel in the future [44:03]
Doing a video series on areas in your market [47:25]
Sam’s final advice on starting a real estate YouTube channel [49:29]
Why agents should improve their skills as a storyteller [50:54]
Where to find and follow Sam Caudle [53:02]
Sam Caudle
Sam Caudle is a creative business developer, investor, and consultant. His primary focus is attracting real estate clients through a YouTube channel called, Living in Tampa, FL. Same visited 30 countries and had more than 30 jobs before he turned 30. All of these experiences are at work now as he builds his business through YouTube. Sam has many things in the works at all times. Follow Sam on YouTube and IG @thesamcaudle to see what he is up to.
Related Links and Resources:
It might go without saying, but I’m going to say it anyway: We really value listeners like you. We’re constantly working to improve the show, so why not leave us a review? If you love the content and can’t stand the thought of missing the nuggets our Rockstar guests share every week, please subscribe; it’ll get you instant access to our latest episodes and is the best way to support your favorite real estate podcast. Have questions? Suggestions? Want to say hi? Shoot me a message via Twitter, Instagram, Facebook, or Email.
With Taylor Swift propping up the economy, the Federal Reserve has a difficult decision to make.
The central bank will hold its next Open Market Committee meeting on July 25-26 and with it comes the question of another rate hike. While the annualized inflation rate proved to be stickier than expected, it continues to dwindle, falling from 4% in May to 3% in June — both its lowest point and first time below 4% since March 2021.
The Fed ultimately wants long-term inflation settling near 2%. While it’s moving in the right direction, further, lesser hikes could be coming.
Find your lowest mortgage rate. Start here
Will the Fed stop raising rates in 2023?
The Fed has the responsibility of maintaining an inflation rate around 2% over time. Keeping inflation near that pace stabilizes prices for consumers and aids affordability.
Once the annualized rate of inflation climbed above 8% in 2022, the Federal Open Market Committee (FOMC) devised a plan of hiking the federal funds rate to tame it.
As the national inflation rate gradually declined for 12 straight months — from June 2022’s 41-year high of 9.1% to 3% in June 2023, according to the U.S. Bureau of Labor Statistics — the Fed adjusted its tightening policy. The fed funds rate target went from hikes of 50 and 75 basis points, to 25 basis points in February, March, and May, and skipping a hike altogether in June.
However, experts fully anticipate a small rate hike following July’s FOMC meeting. After June’s wait-and-see approach, Fed Chair Jerome Powell said, “the committee clearly believes that there’s more work to do, that there are more rate hikes that are likely to be appropriate.”
Interest rate growth could continue
Interest rates mostly trended up through the first half of 2023, with the average 30-year fixed mortgage ranging from 6.09% to 6.79%, according to Freddie Mac. They went even higher to open the third quarter, climbing to 6.96% on July 13.
Although the annualized pace of inflation is falling, it’s still above the Fed’s goal. Because of this, more hikes and tightening monetary policies could continue until inflation gets brought down to a normalized level.
Interest rates are notoriously difficult to predict but typically rise in response to Fed tightening. Because of the rapid rate growth we saw in 2022, some lenders will allow you to lock in a rate for 90 days at little or no cost so you’re protected from higher rates if you don’t close quickly.
A few examples of lenders offering this include AmeriSave Mortgage, Quicken Loans, and Rocket Mortgage.
Some lenders are even offering borrowers refinances without repeat lending fees or appraisal fees when rates eventually hit a down cycle. When mortgage shopping, be sure to ask your loan officer about these services.
Mortgage rates and the Fed’s role
The Federal Reserve doesn’t determine mortgage rates. Instead, rates are intrinsically tied to the Fed’s actions. Last year, the Fed announced plans to hike its federal funds rate at each of its meetings in 2022 and likely in 2023 as well.
The fed funds rate is the amount banks pay to borrow money from each other overnight and an increase signals higher inflation and economic expansion. Mortgage interest rates typically rise in response to growth in the fed funds rate.
How mortgage rates respond in the immediate aftermath of these FOMC meetings has been a mixed bag over the last year. Most recently, they declined four basis points (0.04%) the day after the 25-point hike on May 3, and inched down two basis points (0.02%) following June’s paused hike.
Advice for borrowers
Inflation keeps dissipating but the Fed will continue taking necessary action to get it down to around 2%.
While rates could grow at any point, they’re still below average historically and many experts and housing authorities predict them to decline over the course of 2023. Even if you missed out on the rock-bottom rates from the last couple years, you can always refinance once they eventually decrease. It’s also important to note that many people build wealth through homeownership and home equity.
If you’re ready to apply for a mortgage, speak with a local lender to see what loan type and interest rate you can qualify for ahead of July’s Fed meeting.
Time to make a move? Let us find the right mortgage for you
A secured loan is a type of debt backed by collateral, which is something you own, such as a house, car or savings account. There are different types of secured loans, but they all have one thing in common: If you fail to repay the loan, you can lose your asset.
How much you can borrow: Loan amounts vary with secured loans and are often determined by the value of the collateral. For example, a secured home loan, or mortgage, typically covers the value of the house minus your down payment. The same goes for an auto loan. A pawn lender puts a price on your property and loans that amount.
Rates and terms: Rates and repayment terms vary on secured loans, but larger loans generally have lower rates and longer repayment terms. A pawn loan may have a triple-digit interest rate and be due in a month, while a mortgage may have a single-digit interest rate and be repaid over decades.
Secured loans also tend to have lower rates than unsecured loans because pledging collateral gives the lender something to take and sell if you fail to repay, lowering the lender’s risk of losing money.
How do secured loans work?
Banks, credit unions and online lenders offer secured loans. The lender typically reviews your collateral, credit and finances to determine your eligibility. The process often includes a hard credit inquiry, but some secured loans don’t require it.
Most secured loans have fixed interest rates, meaning you’ll repay the loan in equal monthly installments. If the lender reports payments to the three major credit bureaus, on-time payments will build your credit, but missed payments will damage it. After multiple missed payments, the lender can take your collateral.
🤓Nerdy Tip
Car title and pawn loans are examples of no-credit-check secured loans. To make up for the risk of not checking how you’ve previously managed credit and assessing your ability to repay the loan, these lenders charge triple-digit rates that make the loan difficult to repay.
Types of secured loans
Secured loan type
Collateral
When to use
Your 401(k).
You want a low-rate loan with no credit check.
You’re comfortable repaying the loan in full — or paying a penalty — if you leave your company.
Taking the loan outweighs earning compound interest on savings.
The vehicle you’re purchasing.
To finance a new or used vehicle.
Your vehicle.
You need funds fast and feel confident you can repay the loan.
After you’ve ruled out less expensive options.
Your certificate of deposit.
You have a certificate of deposit.
You need a low-rate loan quickly.
You’re comfortable with the risk of losing the CD.
Your crypto.
You don’t want to sell your crypto.
You need a fast, no-credit-check loan.
You’re comfortable adding more crypto if its value drops.
Your home.
You have enough equity in your home to borrow against.
To finance home improvement projects and deduct the interest on your taxes.
The home or property you’re purchasing.
To finance a house.
A personal item.
You need a small loan quickly.
Pledging a personal item is worth the risk of losing it.
You don’t want to sell anything.
Typically a vehicle, savings or investment account.
As a lower-rate alternative to an unsecured loan.
You’re comfortable with the risk of pledging collateral.
Frequently asked questions
Is a payday loan secured or unsecured?
Payday loans are unsecured because you don’t need to provide collateral to get one. Instead, a payday lender may ask for access to your bank account and withdraw the loan amount, plus a fee, on your next payday.
Is a small business loan secured or unsecured?
Small business loans can be secured or unsecured. Lenders typically accept property or equipment as collateral. A lender may require a UCC lien on either loan type, which allows the lender to claim your business assets if you default.
Is a personal loan secured or unsecured?
Most personal loans are unsecured, but some lenders offer secured personal loans. Lenders typically accept a vehicle, savings or investment account as collateral on a secured loan.
Are student loans secured or unsecured?
Private and federal student loans are unsecured, meaning you can’t add collateral to the application. Student loan borrowers who need help qualifying may add a co-signer with a strong credit profile.
🤓Nerdy Tip
Collateral is the key to knowing whether a loan is secured or unsecured. If you’re pledging something the lender can take upon failure to repay, it’s a secured loan.
Pros and cons of secured loans
Pros
Rates can be lower than unsecured alternatives.
Credit requirements may be softer.
Fixed rates keep monthly payments predictable.
Cons
You risk losing your collateral if you fail to repay the loan.
Funding time may be slower while the lender assesses collateral.
How to get a secured loan
Check your finances. Review your budget before getting any loan to understand how much you can put toward monthly repayments. Use a loan calculator to see how the interest rate and repayment terms affect the monthly payment. Check your credit reports for any errors or past-due accounts you can resolve before applying. You can get your reports for free at AnnualCreditReport.com or on NerdWallet.
Review the collateral. If you’re using collateral to lower your rate or get a larger loan, check its value before you apply. You can use an online pricing guide to check a car’s value for an auto-secured loan, review your savings and investment accounts for an account-secured loan or take a personal item to multiple pawn shops to see which gives the highest valuation.
Compare lenders. Look for a secured loan with a low rate and affordable monthly payments. Lenders may weigh collateral, credit and income differently, so it pays to compare. If your bank or credit union offers secured loans, start there to see if they’ll include customer perks or discounts.
Apply. The application process is different for all types of secured loans. You may be able to get a secured loan online, while some banks and credit unions require an in-person visit. Applications for a secured loan may take longer than an unsecured loan because the lender must evaluate your collateral.
What if you don’t repay a secured loan?
If you default on a secured loan, the lender can repossess your asset, sometimes without notice. If your home goes into foreclosure, you may end up in court.
In addition to losing your collateral, your credit and finances could suffer for years. Here are some potential consequences:
Repossession or foreclosure on your credit report for up to seven years.
Difficulty accessing credit in the future.
Still owing money on repossessed assets.
Filing for bankruptcy to keep your property.
Tips to avoid defaulting on a secured loan
Communicate with your lender. There are no consequences to your credit or finances for telling your lender you’re concerned about missing a payment as long as you call before you miss it. The lender may even be able to help: Some companies have hardship programs that include payment deferrals or lower monthly payments.
Request a new payment date. If you’ve got a new job or added bills that make the loan’s payment date challenging to honor, request a different payment date. You may also be able to change the payment frequency.
Seek credit counseling. A nonprofit credit counseling agency can provide budgeting help, debt management plans and housing counseling. Some assistance may be free.
Ask for help. If a trusted friend or family member can provide financial assistance, ask for it. Though it may be a difficult request, it could keep you from losing your property or savings.
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Updated: September 1, 2022
1 Min Read
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GoodFinancialCents® partners with outside experts to ensure we are providing accurate financial content.
These reviewers are industry leaders and professional writers who regularly contribute to reputable publications such as the Wall Street Journal and The New York Times.
Our expert reviewers review our articles and recommend changes to ensure we are upholding our high standards for accuracy and professionalism.
Our expert reviewers hold advanced degrees and certifications and have years of experience with personal finances, retirement planning and investments.
With all the recent talk about health care policy reform, it’s no surprise that many Americans feel the strain that their health insurance premiums put on their wallets. Many families struggle month to month trying to cover the costs of skyrocketing health insurance that many choose to roll the dice and have no insurance coverage. Studies show that approximately 18 percent of the U.S. population (over 46 million Americans) under the age of 65, simply have no coverage at all. If you are one with no coverage or are looking for a way to find a cheaper health insurance solution, here are three ways to lower your health insurance premiums.
1. Raise Your Deductible
One quick and easy way to lower your health insurance premium is to raise your deductible. One study showed that by raising the deductible from $2500 to $5000, the premium decreased by 25% ( 35-40% in some areas in the country). You don’t necessarily have to double your deductible to see a significant change.
Even lower increases can make a significant difference. If you raise to $1150 or $2300 for a family policy, you can open a Health Savings Account (HSA) which lets you contribute tax-deductible money and you can use tax-free money for medical expenses in any year. This can help you stretch your money that much further.
Let’s look at an example of increasing your deductible. For a family of 3 living in a major metropolitan area:
Deductible
Premium
Annual Cost
$500
$484/mo
$5,808
$5000
$247/mo
$2,964
Obviously, you can see the instant savings. By opting for a higher deductible, that’s an annual savings of $2,844 per year. But what happens if you have to go to the hospital, does the high deductible plans really work? If you look at the overall picture and you and your family are generally in good health, the HDHP plan could make sense. Keep in mind that many of these policies will allow you to have 1 to 2 preventative visits a year. Be sure to check with your health plan provider to make sure.
Using my own family as an example, we currently pay $244 per month for a high deductible plan that covers the three of us and we each have a $1500 deductible. Compare that to a $300 deductible and our monthly premium would jump 56% to $382 per month. Wow! Annually, we save about $1,656 by using this method which we contribute to a HSA.
2. Shop Health Insurance Coverage Rates
When looking for cheaper health insurance options, be sure to check several providers to make sure you’re getting the best deal that fits your family’s needs. Ehealthinsurance.com is one of the top leaders of online health insurance issuers. They were one of the first company’s to sell health insurance policies online.
EHealthInsurance has developed partnerships with more than 180 health insurance companies, including the big boys of Aetna, Blue Cross and Humana, Blue Shield, AARP, Coventry Health, and Kaiser Permanente. Here’s some info from their website:
eHealth, Inc. is the parent company of eHealthInsurance Services Inc., the one of the best online source of health insurance for individuals, families and small businesses. eHealthInsurance presents complex health insurance information in an objective, user-friendly format, enabling the research, analysis, comparison and purchase of health insurance products that best meet consumers’ needs.
Licensed to market and sell health insurance in all 50 states and the District of Columbia, eHealthInsurance has developed partnerships with more than 180 health insurance companies, offering more than 10,000 health insurance products online.
The company’s technology platform is able to communicate electronically with insurance carrier partners, which enables a simpler, more streamlined health insurance application process. This technical connection with the back-office processes of health insurance companies can facilitate rapid approval of applications and real-time communication between carrier and consumer throughout the process.
3. Have Separate Coverage For the Family
During open enrollment this fall you may notice a few changes in your health care coverage as it pertains to the rest of your family. One trend that is expected is to see a decrease in the subsidy that is allowed to pay for the family’s coverage in employer health plans. With the sudden spike in cost, it could make sense to keep only yourself on your policy and your employer and put your spouse and kids on their own policy.
I have many married friends that are both employed and have adopted this strategy. I wish I had some more specific numbers to share on their money saving tips, but it obviously made sense because they are doing it.
When you open enrollment period rolls around, don’t take it for granted. This may be an easy opportunity to save your family thousands of dollars in insurance premiums for the year.
About the Author
Jeff Rose, CFP® is a Certified Financial Planner™, founder of Good Financial Cents, and author of the personal finance book Soldier of Finance. He was a financial planner for 16+ years having founded, Alliance Wealth Management, a SEC Registered Investment Advisory firm, before selling it to focus on his passion – educating the masses on the importance of financial freedom through this blog, his podcast, and YouTube channel.
Jeff holds a Bachelors in Science in Finance and minor in Accounting from Southern Illinois University – Carbondale. In addition to his CFP® designation, he also earned the marks of AAMS® – Accredited Asset Management Specialist – and CRPC® – Chartered Retirement Planning Counselor.
While a practicing financial advisor, Jeff was named to Investopedia’s distinguished list of Top 100 advisors (as high as #6) multiple times and CNBC’s Digital Advisory Council.
Jeff is an Iraqi combat veteran and served 9 years in the Army National Guard. His work is regularly featured in Forbes, Business Insider, Inc.com and Entrepreneur.
Welcome to the vibrant and thriving city of Nashville, where luxury living reaches new heights amidst the enchanting landscapes and soul-stirring music. If you’re contemplating living in Nashville or already on the hunt for a home in the city, you’ll find yourself surrounded by an array of exquisite features and amenities that epitomize opulence and comfort. mike
From elegant architecture and expansive living spaces to state-of-the-art technology and breathtaking views, Nashville’s top luxury home features are a testament to the city’s dynamic allure and unparalleled lifestyle. Join us on a journey to explore the finest residences that encapsulate the essence of luxury in Music City, USA.
Top neighborhoods with luxury home features in Nashville
Nashville’s luxury neighborhoods, Green Hills, Belle Meade, and Brentwood, boast exquisite home features, each offering a distinct blend of opulence and charm where homebuyers are willing to pay premium prices. In fact, the median sale price of homes in these three neighborhoods is a minimum $543K more than the median sale price for the city.
Green Hills, with its tree-lined streets and proximity to high-end shopping and dining, offers an exquisite blend of convenience and elegance. The median sale price for homes in Green Hills was $990K in June 2023.
Belle Meade evokes timeless elegance, characterized by grand estates and a historic charm. Belle Meade tops the list for most expensive neighborhood in June 2023, with a median sale price of $2.1 million.
Brentwood’s allure lies in its stately residences, expansive lots, and nearby amenities, creating an ideal suburban retreat with a touch of sophistication. The median sale price sits at $1.3 million for homes in Brentwood in June 2023.
Leiper’s Fork, a charming village near Nashville, exudes rustic elegance with sprawling properties set against picturesque landscapes. This retreat is perfect for those in the market for a refined countryside lifestyle, with homes also set at premium prices.
1. Outdoor living spaces
Outdoor living spaces are a highly sought after feature in the luxury home market in Nashville. The “glass wall,” or collapsible sliding doors, allow the indoor living space to flow seamlessly to the outdoor living space. These spaces often have high-end kitchens, fireplaces, TV’s, and all of the comforts of the indoor space. This design provides the perfect solution for a mix of indoor/outdoor entertaining. They are also great for offering the homeowner their own private respite after a long hard day. Plus, if the outdoor living space is private, that tends to add more value. This is typically achieved with privacy fences, screens, plantings, and pergolas, creating intimate and secluded retreats.
One of my recent listings perfectly encapsulated the fusion of luxury and aesthetics. This exquisite home spanned four stories with an impressive five balconies, each offering breathtaking panoramas of downtown Nashville. The top floor featured a captivating wrap-around balcony, providing an unparalleled vantage point to soak in the city’s skyline and dynamic energy.
2. Wine room
With the growing interest in wine comes the growing demand for wine rooms, a popular luxury home feature in Nashville. The wine room has quietly replaced the wine cellar as homeowners have shifted towards displaying their collection instead of hiding it away in a cellar. These spaces, often accommodating 300 to 500 bottles, provide a cozier and more-intimate way to entertain and enjoy a bottle of wine. Beyond the functionality, wine rooms serve as a way to highlight a wine collection years in the making.
3. Luxury pools
Luxury pools are a must-have for luxury homes in Nashville, yet uniquely challenging due to the city’s rocky terrain. Because of this, building a pool can be expensive because of the need for blasting or chipping out of rock.
In Nashville’s housing market, private pools are more than just amenities – they are extensions of the luxurious lifestyle. Crafted with meticulous attention to detail, these pools seamlessly integrate with the architecture, blurring the boundaries between indoor and outdoor living. You’ll often find creative pool designs, such as a pool within a barn, each providing a reflection of the homeowner’s taste and personality.
4. Breathtaking views
Breathtaking views are a highly desirable feature in Nashville homes, and luxury properties are often strategically positioned to maximize the beauty of the natural landscape. For estates nestled on expansive acreage, the view might be of gently rolling hills with green pastures, magnificent trees, and ponds or other water features. Or, if the home is in the heart of Nashville, it might be perched on a hilltop, providing incredible views of downtown.
These residences feature expansive windows and meticulously crafted floor plans to enhance the seamless blend between indoor and outdoor realms. This design philosophy ensures that the mesmerizing landscape remains a constant presence, forging an unbroken connection between the interior and the natural world beyond.
5. Guest houses and DADUs
Guest houses, or separate living spaces that are attached or detached from the house, are a highly desirable feature for luxury homes in the Nashville market. A growing trend that has been embraced throughout luxury homes is multi-generational living, where different generations within a family have separate spaces on the same property. This allows adult children to live with their parents (or vice versa) yet each still has their own space and privacy.
A guest house provides a dedicated space for visitors and overnight guests, ensuring their comfort and privacy while maintaining a sense of separation from the main residence. From an investment perspective, guest houses add versatility and potential for rental income. Homeowners can lease these separate living spaces for additional financial gain, making their luxury property not only a residence but also a potential source of revenue.
DADU‘s (Detached Accessory Dwelling Unit) is a specific type of guest house that is fully detached from the main residence. A DADU must be placed behind and smaller than the primary residence, typically 700-1,000 sq. ft. These dwellings have become popular in recent years – especially for those homes located in a historic overlay district that might prohibit changes to the principal home.
6. Land and privacy
In Nashville’s luxury market, larger land and privacy translate directly to higher home prices. Homes with ample acreage offer room for innovative designs and serene surroundings, and the scarcity of open space makes seclusion a premium.
Homeowners can use their land to create expansive gardens, add amenities like pools or tennis courts, and build peaceful retreats. Privacy also grants an escape from city life, providing room for various leisure activities.
If you’re buying a luxury home in Nashville, your Redfin Premier Agent is equipped to offer valuable insights into the local market, including insight into the neighborhoods, highly sought-after amenities, pricing trends, and available luxury properties.