A growing number of investors in real estate means you can expect to see increased competition for home flipping. You’re most likely going to be competing with other investors in your market, which makes it very difficult to find properties worth flipping, and also means you will need to stay on top of your game. … [Read more…]
I sold my home myself a short time ago. Because I did not have a real estate agent representing me during the sales process, I had to handle every aspect of the deal myself.
Once I received an offer from the buyers, I knew they would do their due diligence. Like most offers to buy a house, theirs was conditioned on a satisfactory home inspection. Following this inspection, however, they asked for money off of our agreed-upon price for silly reasons.
Here’s what I did.
After the home inspection, the buyers asked for money off of the property because they claimed there was an issue with some shingles on the roof. They also said they weren’t happy about some of the interior paint work. They wanted thousands of dollars to be discounted from the price of the property to fix these “issues.”
The problem with this is that my house was less than two years old and there was still a builder’s warranty on the roof. There was no actual problem with the roof based on my experience living in the house, and the paint in the home was just fine and no different from any of our neighbors’ interior paint.
I had to make sure I had the relevant information to respond appropriately, though. This meant I did my own due diligence. I obtained a copy of the builder’s warranty, I looked up similar homes that had sold and were for sale in my neighborhood, and I requested a detailed copy of their inspection report showing these so-called “problems.”
More: Check out our picks for the best mortgage lenders
I also performed an assessment of what similar homes in the area had sold for. When I spoke to the buyers’ agent, I explained that if I provided the credit the buyers had asked for, I would be selling my home for tens of thousands of dollars less than what comparable properties had recently sold for — for no real reason, since the problems they were claiming existed did not really exist at all.
While the real estate agent tried to push back on me even after I came to him with information, I had the confidence of knowing that I was in the right in terms of my home’s condition and I was also certain I had priced the home fairly.
I also knew from what the agent had said that these buyers really wanted to get a mortgage loan to buy in my particular neighborhood. And I checked other homes that were currently for sale and found they had limited options.
Since I didn’t have a mortgage to pay off as I’d paid cash for the home, I also wasn’t in a huge rush to sell so I wouldn’t have been devastated if their offer fell through. So, I essentially told the real estate agent that I would be putting the house back on the market immediately if they wanted to try to renegotiate the price — and I let him know they needed to release the inspection contingency by the deadline unless they wanted me to move forward with taking the home off pending status.
The agent called me back right away and said they would release the contingency.
In my case, everything worked out in the end and my home closed on schedule. But, this process shows how many issues can arise during the days leading up to closing even after you get an offer.
If you have the knowledge and ability to deal with problems like this, selling your house yourself can save you money since you won’t have to pay a commission to a seller’s agent (which is customarily about 3%).
But you have to deal with some hassle — and sometimes agents will try to take advantage of you if you’re selling a home yourself, which I think is what happened here. So, be prepared to protect your own financial interests and, if you aren’t confident enough to do that, hiring an agent may pay off for you in the end.
Source: fool.com
Dark pools, sometimes referred to as “dark pools of liquidity,” are a type of alternative trading system used by large institutional investors to which the investing public does not have access.
Living up to their “dark” name, these pools have no public transparency by design. Institutional investors, such as mutual fund managers, pension funds, and hedge funds, use dark pool trading to buy and sell large blocks of securities without moving the larger markets until the trade is executed.
Investment banks typically run dark pools, but some other institutions run them as well, including large broker-dealers, agency brokers, and even some public exchanges. Some trading platforms, where individual investors buy and sell stocks, also use dark pools to execute trades using a payment for order flow.
Recommended: What Is a Market Maker?
The role of dark pools in the market varies over time. Consider this: At the start of 2021, it comprised half of trades in a single day, but a few months later that share had fallen to 12.91% of U.S. equity volume.
Because trades in a dark pool aren’t reflected in the prices on a public exchange, participants in a dark pool trade based on the prices offered on a public exchange, using the midpoint of the National Best Bid and Offer (NBBO) to set prices.
Large, institutional investors such as hedge funds, may turn to dark pools to get a better price when buying or selling large blocks of a single stock. That’s because of the way that large trades impact the public markets.
If a mutual fund manager, for example, wants to sell a million shares of a given stock because it’s underperforming or no longer fits their strategy, they’d need to use a floor trader to unload the position on a public exchange. Selling all those shares could impact the price they get, driving down the VWAP (volume weighted average price) of the total sale.
To avoid driving down the price, the manager might spread out the trade over several days. But if other traders identify the institution or the fund that’s selling they could also sell, potentially driving down the price even further.
The same risk exists when buying large blocks of a given security on a public market, as the purchase itself can attract attention and drive up the price.
Recommended: How to Identify an Underperforming Stock
The risks of attracting attention from other traders have intensified with the rise of algorithmic trading and high-frequency trading (HFT). These strategies employ sophisticated computer programs to make big trades just ahead of other investors. HFT programs flood public exchanges with buy or sell orders to front-run giant block trades, and force the fund manager in the above example to get a worse price on their trade.
But with a dark trade, that institutional investor can sell a million shares of a stock without the public finding out because dark pool participants don’t disclose their trades to participants on the exchange. The details of trades within a dark pool only show up after a delay on the consolidated tape – the electronic system that collates price and volume data from major securities exchanges.
There are other advantages for an institutional trader. Because the buyers and sellers in a dark pool are other institutional traders, a fund manager looking to sell a million shares of a given stock is more likely to find buyers who are in the market for a million shares or more. On a public exchange, that million-share sale will likely need to be broken up into dozens, if not hundreds of trades.
Recommended: Institutional Investors vs. Retail Investors
As dark pools have grown in prominence, they’ve attracted criticism from many directions, and scrutiny from regulators. For instance, the lack of transparency in dark pools and the exclusivity of their clientele makes some investors uneasy. Some even believe that the pools give large investors an unfair advantage over smaller investors, who buy and sell almost exclusively on public exchanges.
As discussed, dark pools are sometimes referred to as “dark pools of liquidity,” and are a type of alternative trading system used by large institutional investors to which the investing public does not have access. They’re typically run and utilized by large investment banks.
Given the nature of dark pools, they attracted criticism from some due to the lack of transparency, and the exclusivity of their clientele. While the typical investor may not interact with a dark pool, knowing the ins and outs may be helpful background knowledge.
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Save more, spend smarter, and make your money go further
We don’t want to get all mushy or anything, but you’re one-of-a-kind! And that means you have unique wants and needs.
There are a lot of mobile apps out there focusing on personalization, and some do a better job than others.
We pulled together seven of our favorites – each one will help you customize a different facet of your daily life.
Here they are!
Sworkit can help you get fit, regardless of how much time you have or where you are.
After downloading the app, you can choose what type of training you’re after (strength, cardio, yoga), your workout (full body, core, lower body) and the amount of time you have (anywhere from 5 to 60 minutes).
That’s it! Sworkit will curate a set of exercises just for you.
Available in: iTunes, Google Play, Amazon Apps
The latest version of BrightNest takes home customization to a new level with the Interactive Home Quiz.
The app serves up a series of simple “yes or no” questions about your home and delivers a personalized tip based on each response.
BrightNest also allows you to create custom to-dos and set recurring reminders, so whether you want to reorganize your tool shed twice a year or clean your fish tank once a week, BrightNest will help you get it done.
Available in: iTunes
Mint helps you understand exactly where your money is going.
Once securely synced with your bank accounts, Mint creates a customized budget based on personal spending.
Then, the app gives you the freedom to choose your own budget limits.
Whether you need to adjust your spending to include a new hobby (hello, new pottery wheel) or simply track your meals out, Mint makes it easy.
Available in: iTunes, Google Play, Amazon Apps, Windows Store
The mySkin app demystifies skincare by creating a personalized routine based on your skin.
When you sign up for mySkin, you’re prompted to answer questions about your skin type (dry or oily), skin color, hair color and past skin problems (like acne, blackheads or scars).
The app then serves up a skincare routine that’s right for you and recommends products.
Available in: iTunes, Windows Store
When you sign up for Ness, they’ll prompt you to select the types of foods you like and the types you hate.
After that, Ness will serve up restaurant recommendations, and allow you to rate places you’ve already tried.
Every time you rate a place you’ve eaten (it’s kind of like Netflix for restaurants), their recommendations for you will improve.
Available in: iTunes
Do you have trouble remembering people’s names?
What about doing quick math in your head or switching between different tasks?
Lumosity can help you get better at each of these things (or all three!).
When you create an account, Lumosity prompts you to select the different aspects of your brain that you’d like to train.
Then, they send you a customized workout routine every day. You can set training reminders at a time that works for you.
Available in: iTunes
Love to shop but hate the mall?
Keep personalizes the shopping experience by bringing styles you’ll actually wear into one app.
To customize your experience, choose brands, stores and looks that fit your personal style.
Then, under the MyFeed tab, you’ll see curated shoes, bags, clothes and home items for sale.
When you scroll over an item you like, you can “Buy” or “Keep,” making sure you never miss a deal.
Available in: iTunes, Google Play
BrightNest is a free site that provides tools and tips to homeowners to help them save money, get organized and keep their homes in great shape. Sign up for a free BrightNest account today!
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Source: mint.intuit.com
While rising property values have continued to defy expectations, could it be the end for home price appreciation after nearly a decade of gains?
There’s been talk of frothy home prices for years now, with affordability stretched even as mortgage rates hit new all-time lows.
One new forecast says the good times in the red-hot real estate market might finally be over.
At least, that’s the call from data analytics firm CoreLogic, which is predicting a 1.3% drop in home prices from April 2020 to April 2021.
While home prices have still gone up both year-over-year and month-over-month lately, the gains are projected to decelerate and eventually turn negative.
Home prices rose 1.4% from March to April of this year, contributing to the 5.4% annual gain, but the CoreLogic HPI Forecast calls for just a 0.3% gain from April to May.
That could represent one of the few remaining (or last) of the monthly gains for a while since they expect home prices to decline 1.3% by April 2021.
If CoreLogic is right, it would mark the first yearly drop in more than nine years, when home prices bottomed around 2011/2012.
The good news is it’s only a small annual decline, and that’s if they’re right to begin with. The pundits have been predicting higher mortgage rates and lower home prices for years now.
And they’ve been wrong year in and year out, which again speaks to how difficult it is to call a bottom or a top.
Further throwing their forecast into question is the fact that the typical spring home buying season has been pushed back a few months, so we could see home prices rise in coming months.
CoreLogic chief economist Frank Nothaft said their forecast has home prices down a year from now in 41 states, despite record low mortgage rates and limited housing inventory.
He added, “If unemployment remains elevated in early 2021, then we can expect home prices to soften.”
As always, when looking at home prices you have to consider the local market, not just the nation as a whole.
CoreLogic expects some metros to be hit more than most, and others may actually buck the trend and see even more gains thanks to shifting demographics.
For example, already overvalued markets such as Las Vegas and Miami are expected to decline by 7.2% and 4.4%, respectively, by April 2021.
The same goes for Cape Coral-Fort Myers and North Port-Sarasota-Bradenton in Florida, and Prescott, Arizona.
In these tourist-rich destinations, the economy has taken a big hit thanks to COVID-19, which could lead to increased foreclosures and fewer eligible home buyers.
And perhaps less appetite for investment properties if not as many individuals are vacationing or moving to those cities.
CoreLogic expects a decline in property values in these metros as visitors decide instead to stay home, which could lead to the sale of vacation rentals at discounted prices.
Similarly, home prices are under pressure in Huntington, West Virginia and Houston, Texas, both of which have suffered from a collapse in the oil and gas industry.
On the other side of the coin, Philadelphia has seen a boom as New Yorkers relocate “in search of more space and privacy,” thanks to the distancing effects of the coronavirus.
The Philly metro exhibited the biggest year-over-year increase in single-family detached home prices, which surged 10.6%.
Nationwide, homes price gains are outpacing condo price gains, with single-family attached units (condos, duplexes) up 4.3% year-over-year in April 2020 compared to a 5.7% increase for single-family detached properties.
This plays to the new trend of wanting/needing more space, just like why the suburbs are apparently hot again after falling out of favor with home buyers.
Zillow seem to be on the same page regarding 2021 home prices, though they expect a drop this year followed by a recovery in 2021 resulting in no real material change.
It’s too early to tell what’s going to happen, though if you’re modeling home price gains and losses based on COVID-19, assume it’s flimsy since the pandemic still presents many more questions than answers.
I still think this housing market has legs, possibly for several more years, even if there are some expected (or unexpected) hiccups along the way.
The cyclical prediction is home prices peaking around 2024, which continues to makes sense.
While it may feel close to a top, it always takes longer to play out than anticipated. Just look at home prices on the way down, or the meteoric stock market rise over the past several years.
In the meantime, enjoy the ride up, hopefully.
Source: thetruthaboutmortgage.com
The holidays are about six months away. Why wait until the last minute to shop? Answer: You shouldn’t. And you won’t have to if you have a decently stocked gift closet. Some people I know keep their eyes open starting on Dec. 26 and are finished by mid-summer.
It’s more than just the December holidays, though. A small selection of “evergreen” gifts (non-perishable, non-trendy) means you’re prepared for any birthday, anniversary or new baby that comes along.
Building your gift closet doesn’t have to cost much. I always trot out the example of the puzzle depicting the Sistine Chapel ceiling, the perfect gift for a jigsaw-loving relative. Still shrink-wrapped when I found it on half-price day at a thrift shop, it set me back a whopping 35 cents.
If you wait until the last minute, you’re likely to spend more. On the afternoon of the baby shower, you might be tempted to stop at the first store you see and grab the item that’s closest to the door. Compare that with, say, the 89-cent newborn outfit that I bought at a post-holiday clearance sale.
(It wasn’t junk, either, but made by Carter’s. And it was cute as hell. I made the girl-noise when I saw it.)
Incidentally, it doesn’t really have to be a closet. I keep my stash in a cedar chest that I bought for $15 at a garage sale. Not only are my gifts cheap, they’re guaranteed moth-free! Here are some ways to build an evergreen gift stash without breaking the bank.
Clearance tables. Both post-holiday and everyday “last chance” sales can yield amazing finds. In late December the department stores want to get rid of unsold hat-and-scarf sets, gloves, slippers and “executive” gifts (e.g., day minders or business card holders) — and all of these can be held until next year’s Christmas or this year’s Father’s Day. Classic toys (stuffed animals, puzzles, books) can be had for a song if you’re patient enough to wait until Target or Walgreens really wants to get rid of them. (I’ve seen discounts as deep as 90%.) Remember that clearance sales happen in a lot of places: hardware stores, craft shops, drugstores, souvenir stands, supermarkets, office-supply stores.
Tip: If you see a gift set (foodies, spa items) wrapped in a Christmas-y way, break it down and repackage the elements for a January birthday or for Valentine’s Day.
Deal sites. Dealnews, Eversave, My Bargain Buddy and other money-saving sites can be dangerous if you’re a compulsive buyer. Pick your spots, though, and you might see a lovely package of fancy teas that would be perfect for your sister, or a swell set of socket wrenches that would be perfect for your other sister. You’ll spend relatively little to get them, especially if you get site credits for having referred other members.
Social commerce sites. Whether you’re buying a gift item or a discounted gift certificate you can use to buy a gift yourself, Groupon et al. can really stretch your buying dollars. Recently I saw a $20 Old Navy gift certificate for only $10, which could translate into shorts, tank tops or other items (especially if you wait for clearance sales). You could also give the certificate itself, if it has a decently distant expiration date — a massage or a spa day would be a great gift for a babysitter, housecleaner or teacher. And a middle-school-aged niece or nephew might love to get $20 worth of buying power at Old Navy.
Thrift shops. It’s amazing what you can find in the secondhand store — and as noted above, some of it has never been opened. Extra frugal points if your finds are “tag color of the day” specials or found during half-off sales.
Yard sales. We’re heading into the prime garage-sale season. I’ve found beautiful books, stationery and card sets, candles, book-and-toy combos, journals and other items — all new or seemingly unused — that became birthday or Christmas gifts. None of them cost more than $1.
Tip: Toward the end of the day, go back to the yard sale — they might be ready to haggle.
Rummage sales. The ones held indoors are even better than garage sales, because you’re not sweating in 95-degree heat while you shop.
Social media giveaways/contests. Companies will do anything to get noticed — including hand out free clothes, books, sporting equipment, jewelry, TVs, computers or big bundles of cash. (Believe it or not, I once saw a contest whose prize was a year’s worth of health insurance.) To find such contests, try using Twitter hash-tag searches (“#giveaway” or “#freebie”) or checking a Facebook app called “Wildfire.” Or do it the easy way: Find yourself a good freebie blogger and watch for the giveaways you really want.
Tip: Free software such as Roboform will fill in contact info automatically, making your entries more efficient. Also: Google “second-chance drawing” — contest junkies, aka “sweepers,” know that the odds are much better than in the initial drawing.
Take online surveys. You have to be choosy, since some companies ask for a lot and give back relatively little. But some people make a decent little side income answering questions. Depending on the site, you can redeem points for physical prizes, gift cards or even cash. I’ve had a lot of luck with Clear Voice Surveys and Valued Opinions, through which I’ve obtained dozens of Amazon gift cards in the past few years. (These days I don’t keep them, though; I give them away on my website.)
Rewards programs. Got a credit card that gives points? Cash some in for gift cards you can use to shop or that you can give outright. Or join a rewards program like Swagbucks or MyPoints, which let you earn gift cards, prepaid debit cards and other items. I’m particularly fond of Swagbucks, myself; right now I’m squirreling away Amazon gift cards until Black Friday. I’ve also given Christmas gifts obtained through My Coke Rewards: magazine subscriptions, a NASCAR hat, a set of barbecue tools, T-shirts, movie tickets.
Tip: Ask family or friends to save My Coke Reward points for you. Check the recycle bins at work, or outside your apartment house, too.
Gift swaps. Got a gift you don’t want? So do a lot of people. Invite family and friends to bring over items, then trade to your hearts’ content. Try not to be sad, though, if someone brings a package of teas or socket-wrench set that look awfully familiar.
Source: getrichslowly.org
Average mortgage rates jumped to 6.79% this past week as the U.S. debt ceiling deal cleared the House.
“Although there has been a steady flow of purchase demand around rates in the low- to mid-6% range, that demand is likely to weaken as rates approach 7%,” says Freddie Mac chief economist Sam Khater. Not everyone can afford to buy as rates rise.
Say you’re buying a $500,000 home. Assuming you have a 10% down payment of $50,000 and lock in a 30-year fixed-rate mortgage at 6.79%, your monthly payment will add up to about $3,700.
Considering that most lenders want you to keep your housing expenses at or under 30% of your gross income, you’d need to earn at least $148,000 a year to afford that $500,000 home.
The average 30-year fixed rate jumped to 6.79% this week, according to the latest data from Freddie Mac, compared to last week’s average of 6.57%. A year ago at this time, the rate averaged 5.09%.
“With rates closer to the 7% benchmark, nearly 5.5 million households continue to be priced out of the market compared to a year ago,” says Nadia Evangelou, senior economist at the National Association of Realtors.
“Although there are fewer buyers, more than one-third of properties are sold above their list price due to limited inventory, especially of homes that first-time buyers can afford to buy.”
The average rate on a 15-year home loan also climbed from 5.97% to 6.18% this week. This time a year ago, the 15-year fixed-rate averaged 4.32%.
The national median list price also grew to $441,000 in May, up from $430,000 in April, according to a report from Realtor.com.
“Higher mortgage rates and home prices compared to May of last year increased the monthly cost of financing 80% of the typical home by roughly $280.96 (+15.5%) compared to a year ago,” says the report.
However, while this figure still exceeds recent rent growth and inflation, it’s under last month’s growth rate of 19%.
Read more: Warren Buffett gets gloomy: America’s ‘incredible period’ is coming to an end. Here’s what nervous investors can do right now
Spooked by elevated interest rates and decreasing rent and housing values, real estate investors purchased 48.6% fewer homes in the first quarter of 2023 than they did last year — marking the biggest annual drop on record — according to a report by Redfin.
Although the report notes many investors buy homes with cash, they’re often hit by high interest rates when they take out loans to cover renovations and other expenses.
That said, investors are “still scooping up a bigger share of homes than they were before the pandemic, which can create challenges for individual buyers at a time when there are so few homes for sale,” says Redfin senior economist Sheharyar Bokhari.
“Investors have gravitated toward more affordable properties due to still-high housing costs and rising mortgage rates, which has left first-time homebuyers with fewer starter homes to choose from.”
Demand for mortgages fell 3.7% from last week, according to the Mortgage Bankers Association (MBA).
“Inflation is still running too high, and recent economic data is beginning to convince investors that the Federal Reserve will not be cutting rates anytime soon,” says Mike Fratantoni, senior vice president and chief economist at the MBA.
He notes some lenders were quoting mortgage rates above 7% on 30-year loans last week.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Source: finance.yahoo.com
A hedge fund is an investment vehicle that invests in securities and other assets with money pooled from investors. They’re similar to mutual funds or exchange-traded funds, but they are riskier and more expensive. Because of this, they’re subject to different government regulations and only sophisticated investors.
While most investors may not engage with a hedge fund, especially younger ones, it can be useful to know what they are and how they work.
Hedge funds are set up by a registered investment advisor or money manager, often as a limited liability company (LLC) or a limited partnership (LP). They differ from mutual funds in that they have more investment freedom, so they’re able to make riskier investments.
By using aggressive investing tactics, such as short-selling, debt-based investing, and leveraging hedge funds can potentially deliver higher-than-market returns, but they also have higher risks than other types of investments. In addition to traditional asset classes, hedge funds can a diverse array of alternative assets, including art, real estate, and currencies.
Hedge funds tend to seek out short-term investments rather than long-term investments. Of course assets that have significant short-term growth potential can also have greater short term losses.
Historically, hedge funds have not performed as well as safer investments, such as stock market indices. However, the goal of hedge funds isn’t necessarily to outperform the stock market. Investors also use hedge funds to provide growth during all phases of market growth and decline, providing diversification to a portfolio that also contains stocks, cash, and other investments.
Generally speaking, only qualified investors and institutional investors are able to invest in hedge funds, due to their risks and the high fees that get paid to fund managers.
Each hedge fund has a different investing philosophy and invests in different types of assets. Some different hedge fund strategies include:
• Real estate investing
• Junk bond investing
• Specialized asset class investing such as art, music, or patents
• Long-only equity investing (no short selling)
• Private equity investing, in which the fund only invests in privately-held businesses. In some cases the hedge fund gets involved in the business operations and helps to take the company public.
Hedge funds are run by investment managers who make investment decisions and manage the risk level of the fund. If a hedge fund is profitable, the hedge fund manager can make a significant amount of money, often up to 20% of the profits.
Before selecting and investing in a hedge fund, it’s important to look into the fund manager’s history as well as their investing strategy and fees. This information can be found on the manager’s Form ADV, which you can find on the fund’s website as well as through the Security and Exchange Commission’s (SEC) website.
Hedge funds are not open to the general public, and there are several requirements to be able to invest in them. In order for an individual to invest, they must be an accredited investor. This means that they either:
• Have an individual annual income of $200,000 or more. If the married investors must have a combined income of $300,000 per year or more. They must have had this level of income for at least two consecutive years and expect to continue to earn this level of income.
• Or, the investor must have an individual or combined net worth of $1 million or more, excluding their primary residence.
If the investor is an entity rather than an individual, they must:
• Be a trust with a net worth of at least $5 million. The trust can’t have been formed solely for the purpose of investing, and must be run by a “sophisticated” investor, defined by the SEC as someone with sufficient knowledge and experience with investing and the potential risks involved.
• Or, the entity can be a group of accredited investors.
Investing in hedge funds is risky and involves a deep understanding of financial markets. Before investing, there are several things to consider:
Start by researching the hedge fund manager and their history in the industry. Look at the types of assets the fund invests in, read the fund’s prospectus and other materials to understand the opportunity cost and risk. Generally speaking, the higher the risk, the higher potential returns.
In addition, you need to understand how the fund evaluates potential investments. If the fund invests in alternative assets, these may be difficult to value and may also have lower liquidity.
Investment requirements can range between $100,000 to $2 million or more. Hedge funds have less liquidity than stocks or bonds, and some require that money stays invested in the fund for a specific amount of time before it can be withdrawn. It’s also common for there to be lock-up periods for funds and for there to only be certain times of year when funds can be withdrawn.
Make sure that the fund you’re interested in is an open fund, meaning that it accepts new investors. Financial professionals can help with this research process. Each hedge fund will evaluate an individual’s accreditation status using their own methods. They may require personal information about income, debt, and assets.
Usually hedge funds charge an asset management fee of 1-2% of invested assets, as well as a performance fee of 20% of the hedge fund’s profits.
Hedge funds offer investors — usually, wealthier investors — the chance to invest in funds that are usually high-risk, but offer high potential returns. There are many rules surrounding hedge funds, and many investors may not even consider them as a part of an investing strategy.
For accredited investors, investing in a hedge fund may be one part of a diversified portfolio, although it depends on the investor’s risk tolerance, time horizon, and investing goals. If you’re not an accredited investor, or you’re worried about the risks associated with hedge funds, it may make more sense for you to consider other types of investments or to stick with ETFs, mutual funds, or funds of funds that emulate hedge fund strategies.
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In spite of bank failures over the past three decades, most banks and credit unions in the U.S. remain secure places to store your money. One of the benefits credit unions and banks offer is easy access to your money.
Account holders can withdraw money quickly from a checking account at a bank branch or with a debit card, often with no fees. They can also find easy access and higher interest rates with a savings or money market account.
Keeping your money in a bank or credit union is considered safe because your money is insured up by the FDIC or NCUA, respectively.
In the event of a bank failure, which occurred more than 100 times during the financial crisis that spanned 2008 to 2012, some of your money is still protected by the federal government. Money in all U.S. banks, including the nation’s five biggest banks, is FDIC insured up to $250,000, per person, per account.
Fortunately, bank failures are less common today. The FDIC reported that the last time an FDIC insured bank failure occurred was October 2020. The FDIC paid out an estimated $18.3 million to account holders.
Credit unions carry similar protection in the form of insurance through the National Credit Union Administration.
You already know that if a bank fails, the federal government will protect a large portion of your funds through FDIC insurance. You can spread your money between multiple checking and savings accounts so that no account holds more than the maximum $250,000 that is FDIC insured.
When you’re looking for the safest bank to open a new bank account, you want to compare other factors, including the bank’s total assets, security measures, fraud liability policies, history, and more.
You can see from this list of safest banks in the U.S. that bank security doesn’t always depend on the bank’s size. You’ll find financial institutions ranging from smaller banks to the largest banks on this list.
Bank safety means that the bank uses state-of-the-art security measures to protect your money, including:
We’ll look at these and other safety measures. Then, we’ll explore what makes some of the biggest banks in the U.S. some of the most secure banks and which other banks are keeping pace. Read on to find out: What is the safest bank in the U.S.?
Banks use a combination of training and state-of-the-art technology to keep account holder’s money secure. This includes training bank employees in security best practices and how to respond promptly to fraud alerts. It also includes bank policies, such as $0 fraud liability.
Finally, technology that includes SSL encryption and two-factor authentication can also help to keep your bank account safe during online banking.
The Global Finance “World’s Safest Banks” list highlighted 50 safe banks. Of those, only a handful were based in the U.S. Here are 12 of the safest banks for U.S. customers, based on the Global Finance list.
With a market capitalization of $413.7 billion and a balance sheet total of $3.31 trillion, JPMorgan Chase is the largest bank in the U.S. based on assets, according to InsiderIntelligence.com.
During the financial crisis of 2008, Chase was one of the banks deemed “too big to fail.” Certainly, an account holder can feel secure that their most is protected even if the bank faces financial hardship.
But is Chase also ahead of the curve when it comes to security? Chase uses multiple authentication checks when you try to sign in to your online account.
The bank monitors for unusual activity and may send a text message or email for you to authorize a transaction outside your home state or for an exceptionally high amount.
The bank’s website uses 128-bit data encryption to secure your personal information. Finally, bank employees are trained in fraud prevention, fraud detection, and ethics.
Everyday security features
With assets totaling nearly $675 billion, U.S. Bancorp, parent company of U.S. Bank, is the fifth-largest bank in the U.S. The bank website and mobile app offer SSL encryption, one-time card numbers for online purchases, and enhanced security features for commercial banking customers.
The Bank Smartly checking account for consumers allow you to set up account alerts and reminders through the mobile app. You can make contactless payments through the app, which gives you added protection against point-of-sale fraud and debit card skimmers, which can steal your account information if you pay using the magnetic stripe on your card.
U.S. Bank also offers a “Safe Debit Card,” designed for consumers ages 14+ who want the convenience of a checking account and debit card without the ability to write checks. The Safe Debit Card provides free access to the user’s VantageScore 3.0 credit score through TransUnion, a credit score simulator, online bill pay, mobile banking, and no overdraft fees.
Everyday security features
TD Bank, or Toronto-Dominion, is not just one of the largest banks in the U.S. with a worldwide presence, it is also one of the safest. Its branches are known for personalized customer service. But the bank is also known for its online presence. TD Bank recently partnered with Amount, a fintech provider, to enhance security with a suite of state-of-the-art fraud detection and account verification services.
The bank has 24/7 fraud monitoring and text alerts for activity. Plus, if you lose your debit card, you can replace it immediately at a nearby branch. TD Bank also offers features that enhance your security, including Bill Pay and Mobile Deposit, which reduces the handling of paper checks that create a risk of theft and fraud.
Everyday security
Citigroup, which owns Citibank and other Citi properties, is the third-largest bank in the U.S. right now behind Chase and Bank of America. Like Chase, Citi is considered one of the financial institutions deemed “too big to fail.” The bank’s market cap is $97.06 billion.
Citi is considered one of the safest banks due to its enhanced security features for its bank accounts and credit cards.
Citi was one of the first banks to offer a virtual credit card number. This one-time use card number allows cardholders to shop safely online without having to give out your bank account information or card number.
You can sign on to the Citi mobile using a QR code and Face ID®, Touch ID®, Biometrics or 6-Digit PIN, which is more secure than using a username and password. As with Chase, you will receive text alerts for suspicious or unusual activity.
Do not confuse Citi with CIT Bank. In spite of the similarity in their names, CIT is a division of First Citizens Bank and not affiliated in any way with Citigroup.
Everyday security features
Charles Schwab Bank is known primarily for its investment divisions. But the bank achieved the highest ratings for customer satisfaction with checking accounts by J.D. Power. Most of the world’s safe banks offer a high level of customer service, which can put a customer’s mind at ease.
Schwab Bank has many of the features high earners look for in a bank, including the ability to easily transfer money from your Schwab One brokerage account to your fee-free checking account.
Schwab’s Mobile app and banking systems use the highest levels of data encryption, as you might expect. Set notifications regarding transactions and fraud alerts through the mobile app. Lock and unlock your debit card at will. You can also set travel notices so that you don’t get a fraud alert in error if you’re making large purchases off your usual beaten path. The bank’s personalized service stands out, with 24/7 service via phone or chat, and branches nationwide.
With assets totaling more than $200 billion, M&T Bank may not be as large as Citi or Chase, but its high level of customer service and security puts it on the list of safest banks. M&T Bank has earned multiple awards for small business excellence, along with the highest ratings issued by the Federal Reserve Bank of NY for Community Reinvestment Act performance.
M&T’s mobile app allows you to receive instant alerts about purchases via email, text, or in the app. This way, you can keep track of fraud along with your own spending habits. The app offers fingerprint or facial recognition on supported devices for enhanced security. You can easily report a lost or stolen card in the app or lock your card if you’ve misplaced it.
M&T delivers the same security larger banks offer, with the personalized service of a community bank. With 700 branches across 15 states nationwide plus a network of 1,800 ATMs, M&T Bank might be a convenient and safe choice for your money.
Everyday security features
With $1.71 trillion in assets, Wells Fargo is currently the fourth-largest bank in the U.S. It offers savings and checking accounts, credit cards, loans, and more to personal and business customers.
The bank has more than 4,700 locations plus 12,000 ATMs in its network, making it convenient for customers across the U.S. The Wells Fargo mobile app makes online banking easy and secure, with access to your FICO score, fraud alerts, and multifactor authentication.
The website and app operate with SSL encryption. You can log in via face or fingerprint ID if you prefer. You can set alerts any time someone signs onto your account or whenever a purchase is made.
Furthermore, you can also connect a digital wallet to your account, which may be safer than using debit cards. If you think you lost your card, you can turn it off and turn it on again through the app if you find it.
Wells Fargo makes it easy to report fraud, unauthorized activity, or suspicious activity quickly and easily through the bank’s helpline, even if you are traveling outside the U.S.
Everyday security features
PNC Financial Services, owner of PNC Bank, has assets of $557 billion as of December 2022, making it one of the largest banks in the U.S. Like the other big banks, PNC is on the cutting edge of security and fraud protection for its customers.
The bank offers a Virtual Wallet that provides three accounts for checking and savings, along with direct deposit capabilities, overdraft protection, and a “Low Cash Mode,” that alerts you when your balance drops below a specific amount.
PNC also offers traditional banking solutions at its 2,629 branches worldwide. Through the bank’s growing number of Solution Centers, as well as mobile branches in underserved communities, PNC combines the security and convenience of an online bank with a traditional bank.
Everyday Security
Capital One sits in the country’s list of top 10 banks and, thanks to enhanced security measures, is considered one of the safest banks in the U.S., too. Capital One holds assets worth $391.81 billion.
Capital One’s credit cards are consistently ranked on top list for rewards credit cards for travelers, and their security measures and easy to use app works for both credit and bank account customers.
You can set alerts by text or email each time you use your card. The app uses multifactor authentication and Capital One has $0 fraud liability for its accounts. You will not be held responsible for unauthorized activity. The bank issues EMV chip cards for added security at point-of-sale transactions.
Everyday Security
AgriBank made the Global Finance list of world’s safest banks, coming in at number 34. Part of the Farm Credit System, the bank has a net income of $576.1 million and $142.1 billion in total assets.
AgriBank has delivered reliable and consistent service to the agricultural industry for more than 100 years. As an agricultural credit bank, AgriBank is a wholesale only lender to farmers, ranchers, and rural businesses and homeowners. It pays dividends to its members.
It’s important to note that AgriBank services only agricultural customers in 15 states in the southern and Midwest U.S., from Arkansas to Minnesota. AgriBank is not FDIC insured. But, it is backed by the Farm Credit System Insurance Corporation to protect its members.
Everyday security features
CoBank is the second FCS member on our list of safest banks. Like AgriBank, it is protected by the FCSIC and offers wholesale loans to rural customers in the agricultural, power, water, and telecommunications industries.
Serving customers in all 50 states, it is one of the largest private providers of credit to the U.S. rural economy, according to its website. Dedicated to preventing fraud, the financial institution has a podcast, Fraud Wise, that provides tips to help its rural customer prevent and detect fraud.
Customers can report fraud easily through phone or email. Because of its size and personalized service, CoBank is rated by Global Finance as one of the safe banks in the U.S.
Everyday security features
AgFirst Farm Credit Bank is another member of the Farm Credit System that runs as a cooperative, where an account holder is considered a partner. AgFirst takes steps to maintain the safety and security of its members financial data and money. The organization operates in alignment with national cybersecurity standards and applies industry best practices to keep its systems and customers secure.
AgFirst offers loan servicing, loan origination, and many other services to the agricultural community. Headquartered in Columbia, SC, AgFirst has locations across the south and Midwest U.S.
Everyday security features
In your search for the best bank, you might also consider a credit union. They often offer lower fees, higher interest rates, and more personalized service. The ability to build relationships with employees at your local branch might make them feel like a safer choice.
See also: Best Credit Unions Anyone Can Join
The money in a credit union is insured by the National Credit Union Administration. Just as with FDIC insured bank accounts, funds in credit unions are insured for up to $250,000 per person, per account if the credit union fails.
Credit unions often offer local, more personalized service than a national bank, which makes them a desirable financial institution for some people. You may find zero fee checking accounts more frequently at credit unions, higher interest rates, and better loan terms.
The same technology and customer service used in the safest banks also keeps your money safe in a credit union. Look for SSL encryption and two-factor authentication, easy ways to report fraud, and a guarantee against unauthorized access to your account.
A variety of security measures, along with FDIC insurance, keeps the money in your bank secure against fraud and bank failures. Some of the factors that can enhance a bank’s security include its online banking security, the availability of EMV chip cards, $0 fraud liability,
Bank failures happened with alarming frequency during the recession of 2008. Experian reports that there were 561 bank failures between 2001 and 2022, when the U.S. faced more than one financial crisis.
Fortunately, these banks were FDIC insured. When a bank fails, the FDIC sells the remainder of the bank’s assets to a more stable bank. Sometimes, the FDIC will cover the bank deposits itself.
Online banks today use the same security measures as a brick-and-mortar financial institution. Often, an online bank offers a fee-free checking account and higher interest rates for an online savings account. If you choose an online bank, make sure it is FDIC insured.
What appears to be an online bank may not be a national FDIC insured bank, but another type of financial institution. If that’s the case, make sure it is backed by an FDIC insured national bank.
Learn more about online bank safety.
Source: crediful.com
Are you curious about who has lived in your apartment before you? Many apartments have a long and varied resident history that can be fun to figure out. Want to find out more about your apartment history?
You don’t even need to leave your apartment to start your search for clues about the history of your apartment. Look in drawers, peek in the dark recesses of cabinets and admire the scars and scratches of years past. These are all indicators of who may have lived in your apartment before you. For example, you might find a growth chart penciled in a door frame that tracked the height of the children who played there. You may find water rings on the patio from planters that an avid gardener used. Or you could find trinkets or long-forgotten items that give you insight into the personality of previous renters. Take some time to walk around your space and seek out the little signs of the past.
After you give your apartment a visual once-over for historical clues, you can dig into research to find out more. An easy way to get info is to ask your neighbors. Try a casual approach and inquire about the property when you see them by the mailbox. Start a conversation with “I really love living in this building. Do you know much about the history of the community and the people who lived here?” If they have a story to share, listen and then ask more questions about specific residents and your particular apartment.
Speaking of the mailbox, you’ll get plenty of unintentional clues there. While opening someone else’s mail is a crime, their names are on the outside of the envelopes. The previous resident will likely still have some mail coming in, so you know a name to look for. There will probably even be some addressed to further back residents. Go to Google or Facebook and start looking for people with that name who used to live in your city.
If you live in a historic building, you can find great answers at the local historical society, public library or city hall. There’s often interesting research about your apartment’s history in deeds of sale, photographs, census records, and city archives. It will take some digging and a bit of time, but uncovering the truth about your home can be rewarding. You can also venture out into the neighborhood and ask local business owners what they know about your apartment building. They may have old photos of the neighborhood. Think of it as a scavenger hunt, relishing every clue that will take you to the next piece of information.
If you ever wondered who has lived in your apartment before you, quit guessing: get out there or get online and ask questions! Follow the clues to peel away layers of history and put your own place in that apartment space in context.