Summerville, a picturesque town nestled in the heart of South Carolina, encapsulates a unique blend of southern charm, historic significance and modern convenience.
The overarching question — is Summerville, SC, a good place to live? — becomes easier to answer as one delves into the fabric of this quaint yet burgeoning locale. The aim of this article is to provide a well-rounded view of living in Summerville, the cost of living, employment opportunities and the social and cultural fabric that awaits newcomers and longtime residents alike.
Location, location, location
Summerville’s geographical positioning allows its residents to experience a plethora of sceneries and activities. Charleston Harbor is a mere 24 miles away, offering access to an expansive maritime vista, while a short drive to Folly Beach or Sullivan’s Island opens up a gateway to sun, sand and surf.
Demographic diversity in Summerville
The racial makeup of Summerville, SC, presents a mosaic of cultures, predominantly comprising white, Black, Latine and Asian communities, thus fostering a rich cultural blend. The inclusion of different ethnicities is a part of Summerville’s charm, allowing for a vibrant, multicultural community.
Historic significance
History aficionados would be drawn to Summerville’s rich history, with the town playing host to numerous historically significant sites. The Drayton Hall, Magnolia Plantation and the Aiken Rhett House Museum offer glimpses into the antebellum era and Civil War history.
Weather and natural disasters
While Summerville, SC, does experience hurricanes, the town has a solid infrastructure in place to manage and mitigate the effects of such natural disasters. Its inland location serves as a natural barrier, providing a level of protection against the harshest weather conditions.
Education and employment in Summerville, SC
Charleston Southern University, located a short drive away, is one of many educational institutions offering quality education to Summerville residents. The town also boasts a growing job market with varied employment opportunities, ensuring a stable economic outlook.
Recreational activities
The abundance of walking trails like the Oakbrook Nature Trail, and waterways such as Ashley River, provide ample recreational opportunities. The nearby Jessen Public Boat Landing is a favorite among boating enthusiasts.
Cost of living in Summerville
The cost of living in Summerville, SC, is generally lower than the national average, which is a significant draw for many. Housing, represented by a mix of historic homes, new construction, and Summerville homes in serene neighborhoods, is relatively affordable with the median home price being attractive to both young families and retirees.
Summerville’s real estate market
The real estate market in Summerville, SC is thriving, thanks to a boom in population growth and the subsequent demand for housing. Real estate agents are seeing an upward trend in property values, yet the cost of owning or renting a home remains affordable compared to many other regions in the South.
Culinary scene in Summerville, SC
The culinary palette in Summerville is as diverse as its populace. From smoked chicken to pork belly, ribeye steaks to fried green tomatoes, the food scene is a blend of traditional southern and modern cuisines. Restaurants and food trucks alike offer a wide range of food options, catering to different tastes.
Social aspects
Southern hospitality is alive and well in Summerville. The small town feel, coupled with the friendliness of Summerville residents, creates a welcoming environment. Community events like the Flowertown Festival are a testament to the town’s social cohesion, bringing together people from all walks of life.
Summerville’s growth trend
Summerville’s growth trend is a positive indicator of its viability as a place to live. The influx of more people, bolstered by opening doors of opportunity, is transforming the town while retaining its historic charm.
Conclusion
The blend of affordable living, a robust real estate market, promising job opportunities and a welcoming community makes Summerville, SC a great place to live. Its proximity to beaches, historic downtown Charleston and numerous tourist attractions, like the Folly Beach County Park, add to the allure.
Individuals and families considering moving to Summerville will find a balanced mix of historical essence, modern amenities, and a promising future. If you’re ready to make your move, take a look at our Summerville, SC, apartments for rent.
Inside: Do you want to make money online fast? If so, we’ll discuss the best digital products to sell on Etsy. By following these steps, you’ll be on your way to making money selling digital items quite easily.
Do you want to learn how to sell digital products on Etsy and make money through it?
Selling digital products offers an exciting avenue for generating passive income. With their low production and distribution costs, high profit margin, and potential for scalability, they stand as a lucrative business model for many entrepreneurs.
Moreover, once a digital product is created, it can continuously bring in revenue without the need for additional production costs, making it an appealing source of passive income.
The key to being a successful Etsy seller is to understand your chosen niche and what your audience wants.
We will dive into digital products you could sell on Etsy which range from arts & crafts to business materials.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
What are Digital Products?
Digital products are items that are accessed and delivered electronically, examples of which include software, ebooks, online courses, digital music, video, and audio files.
These intuitive products offer the versatile benefit of being easily reproduced and instantly accessible on various devices, without the requirement of physical storage or shipping. Plus the world is moving towards becoming digital anyway.
In creating digital products, businesses aim to capitalize on customer appeal and convenient delivery, which often complement their physical goods or services.
Why Sell Digital Products on Etsy?
Selling digital products on Etsy offers an incredible opportunity to showcase and monetize your unique creations. With Etsy’s vast online marketplace and its millions of potential customers, it has become a preferred platform for artists, designers, and content creators.
Furthermore, it provides the flexibility to set your prices in accordance with the value you offer and experiment with different pricing strategies.
This is a hassle-free way to monetize your creativity. Here’s why:
You craft it once, it sells eternally: Digital products offer the ultimate advantage of a “create once, sell forever” model. Imagine sipping a cup of tea while your creation secures sales one after another.
Resource-friendly: Bid adieu to the restrictions of shipping, storage, or material costs. Instead, welcome the comfort of financial freedom and resource efficiency.
Everlasting stock: Digital products on Etsy never run out! Say goodbye to inventory issues and overselling, which makes it a smart choice for long-term business.
So, start now by creating an account, picking your digital product, setting up shop, and starting selling on Etsy. With no heavy fees and no botheration of shipping.
Just pure creative power leads to sheer earning happiness.
What digital products sell the most on Etsy?
Well, our data shows that digital prints, planners, stickers, fonts, and children’s educational materials are some of the best-selling categories netting serious cash on this creative marketplace. This information came from Cody and Julie – the founders of the e-Printables course.
Typically, seasonal content always does well on any platform. Same with current trends like the “Barbie” craze.
These products are a creative enthusiast’s goldmine owing to their limitless customization capabilities, instant delivery, and cost-effectiveness.
Wherein, most busy professionals, students, parents, and small business owners find them irresistible due to their convenience and adaptability to suit specific needs and tastes.
To learn more about selling on Etsy, I highly recommend connecting with Cody and Julie in their free webinar.
What digital download sells best on Etsy?
Among the myriad of digital products available,digital prints notably rank as one of the best-selling downloads on Etsy, closely followed by other popular items such as:
digital planners
logo designs
travel guides
business card designs
Lightroom presets
printable invitations.
A beautiful synergy of convenience, utility, and aesthetics, that can be printed at home or in a local print shop, whenever you wish. Perfect for last-minute gifters, DIY décor enthusiasts, or anyone looking for hassle-free beautification!
So, staying in the game, consistently monitoring market trends, and adapting accordingly is the key to successfully selling your digital prints on Etsy.
Best Digital Products to Sell on Etsy
The best digital products to sell on Etsy depend upon various factors, such as your skills, customer interests, and specific market trends.
It is also important to keep an eye on high-sales products, check positive reviews, track favorites, and note recurring themes to understand what customers are looking for and to guide your digital product offerings. This is a quick way to make 300 dollars fast.
Here are the examples of some of the best digital products you might want to sell on Etsy:
1. Printable or Digital Planners
You’ve hit the jackpot if you’re contemplating selling printable or digital planners on Etsy. Some people might say digital or printable planners are seasonal but due to the high demand and flexibility, it could be the golden goose for your marketing on Etsy.
Buyers love and enjoy the tailored usability offered by printable planners, which they can customize to their requirements and physically pen in their plans.
You can supply this demand by offering a large variety and aesthetically pleasing designs.
Tip: Try bundling in different types of stickers for a snappier offer.
2. Craft Patterns
Craft patterns are a top-ranking digital product on Etsy, thanks to a revival of all things crafty!
From knitting and crocheting to sewing and embroidery, these digital masterpieces cater to the abundant trend-setters and hobbyists who frequent Etsy.
To truly get your digital craft patterns thriving on Etsy, remember to follow the trail blazed by successful pattern sellers like these Etsy sellers. These crafts start from an average selling price of $10, making them a lucrative venture for creatives.
Lastly, don’t forget to unleash SEO magic – get your product seen by the right people especially when creating a sewing pattern or crochet pattern. This can be your missing element for transforming hard work into hard sales!
3. Children learning materials
Looking for a profitable side gig? Selling children’s learning materials on Etsy is wildly popular and well-needed especially for those homeschooling.
Parents and teachers are snapping up digital educational resources. By marketing printable lesson plans, colorful flashcards, and engaging worksheets, parent is hyped to supplement their children’s education.
This is a great summer job for teachers because your educational resources might just be the next best-seller on Etsy.
Crack open those lesson plans, as your Etsy store awaits.
4. Wallpapers
On Etsy, phone wallpapers are the new moneymaker. Provide colorful ways for customers to personalize their devices, these digital beauties are a hot ticket item.
To catch the widest net, cater to both phone and desktop users. You must keep up with trends. Also, creating wallpapers for Apple watches and other high-tech gadgets or themed designs for holidays is always a hit.
It’s a simple concept: stylish wallpapers have an average selling price of around $3-4.
5. Calendars
Venture to sell digital business calendars guarantees a steady demand, as planning isn’t just a phase – it’s woven into the fabric of daily life. To get started, unlock your artistic prowess with any digital art program like Adobe Photoshop or Canva.
Begin creating your unique touch on calendars, ensuring they’re editable pre-print- a clear selling point. Remember, quality trumps all – prioritize visually appealing designs with user-friendly formats.
Time to turn dates into dollars. Listing calendars in your Etsy shop certainly won’t go out of style or demand. Also, aim for the $5 – $10 price range to hit the sweet spot of affordability and profitability.
6. Invitations
Invitations are among the top-selling digital items on Etsy.
Customizable templates for various occasions like weddings, parties, baby showers, and more are particularly popular. It’s perfect for creative individuals skilled in design who are looking to turn a profit on their talents.
These digital products can provide a meaningful revenue stream. Some creators can charge up to $20 per customized item.
The bottom line is that selling digital invitation templates on Etsy doesn’t just allow for creativity, but it’s also a lucrative business opportunity.
7. Business cards
Catering to the surge of remote entrepreneurs and the timeless need for personal cards, this trend is something to tap into.
You can offer editable, customized, or even smart cards – with features like one-click phone calls or emails – which can give your shop an edge.
Through Canva or Wepik, you can design exotic templates, offering customers the control to personalize before printing. Turn on your creative juices, let your brand shine, and step up your entrepreneurial ladder with a business card template.
8. Wedding Invitations and Printables
To be honest, I actually created my best friend’s wedding invitations. Maybe, I should have stuck with the side gig to make 500 dollars fast?!?
Wedding printables are now the ‘go-to’ digital products. This isn’t just about a cute ‘Save the Date’; offers a hassle-free, all-in-one wedding stationery solution, ready to match every wedding theme under the twinkling lights.
Help the DIY couples by providing a bundle: wedding program, customized hashtag sign, table place cards, save-the-date cards, and even personalized portrait options with a delightful sign thrown in.
You can provide a seamless experience and watch the sales ring along with the wedding bells.
9. Journal Inserts
Are you a fan of journaling or love designing layouts? Well, it’s time you converted your passion into profit. Making journal inserts is one of the smartest digital products you can sell on Etsy.
Audiences vary from educators needing organized lesson and homework schedules or those seeking self-help and discovery questions.
For optimal selling, focus on providing a variety of designs and including white spaces for personal touches.
With an average selling price of $5, they appeal to smart shoppers who prefer to print inserts on cardstock paper.
10. Digital artwork
Digital artwork stands out in popularity due to the unique customization and selection variety it offers.
Customers are drawn to the ability to choose from diverse art forms, including watercolor illustrations, inspirational quotes, and Baltic or Bohemian prints, that perfectly align with their personal aesthetic or represent an emotion they resonate with.
Moreover, the availability of immediate prints post-purchase greatly increases the convenience and appeal of this artwork form.
11. Recipe cards
Do you love cooking and want to create delightful digital recipe cards for your customers? But, don’t stop there, look at creating a meal planner to bundle with!
A printable, editable canvas for food aficionados brimming with delicious details of recipe cards is a great product. These digital delights are perfect for amateur chefs, bakers, and recipe bloggers.
The takeaway is clear. Selling recipe cards on Etsy is as facile as slicing butter, once you’ve got the right ingredients and the perfect recipe. It’s time to turn the heat up on your Etsy store and dish out some delightful recipe cards.
12. Social media templates
Creating social media templates can provide significant value for businesses and influencers seeking to establish a professional and cohesive online presence.
These templates, which can include pre-designed Facebook banners, Instagram stories, Twitter headers, and more, can be customized to fit a variety of themes such as minimalism, boho, or pastel colors.
When well-crafted, such templates can save businesses valuable time and effort while also helping maintain consistent brand imaging across different platforms. This is similar to a business hiring a virtual assistant with no experience.
e-Printables Free ebook
Curious about selling printables on Etsy but don’t know where to start?
Get the secret list of best-selling products by month and learn you how to capitalize on seasonal trends to make sales.
Download Now
13. Printable Cake and Party Decorations
Selling printable party decorations as digital products on Etsy is like icing on the proverbial cake for smart entrepreneurs.
You can focus printable party decorations from charming cartoon-themed toppers for kids’ birthday cakes to exquisite, romantic pieces for weddings and anniversaries.
Whether you’re creatively inclined or have an entrepreneurial spirit spotting potential, these printables offer a loophole to financial growth. Bundle your decorations based on themes for enticing offers.
14. Zoom background
Thanks to the surge in remote working and virtual meetings selling incredible Zoom backgrounds on Etsy has emerged as a lucrative product in the digital landscape.
These tailored digital backdrops not only enhance the visual appeal of online interfaces but also cater to users’ needs to maintain privacy or conceal unorganized spaces.
However, you need to understand that creating Zoom backgrounds may not be beginner-friendly due to the required customization. However, do not let this intimidate you.
15. Productivity Trackers
People are constantly in search of practical, user-friendly tools to streamline their lives and make every hour count.
So, these productivity trackers are supremely versatile, covering daily routines, budgeting, goal setting, project management, and even grocery lists. Make your Etsy shop the one-stop shop for everyone’s needs.
As it becomes an increasingly popular choice to shift focus towards maximizing effectiveness in people’s daily lives. Whether it’s maintaining a workout routine, tracking investments, or staying on top of a student’s study schedule, these trackers cater to a wide assortment of needs.
16. Lightroom Presets
Lightroom Presets are essentially preset configurations that enhance a photo’s aesthetics, and folks from influencers to amateur photographers are keen to have them.
For starters, it caters well to the Instagram-obsessed demographic continually seeking to elevate their photo game. This venture is best suited for those who have a knack for photo editing and an understanding of aesthetics.
With an average selling price of $10, the numbers tip favorably in your Lightroom presets.
17. Etsy shop banners
Help out your new Etsy sellers by designing an impressive storefront with their shop banner.
Indulge your Etsy shop banners in various design themes suitable for a wide range of stores. Also, include a shop kit that makes store icons, a large and small banner, custom and reserved listing templates, and a profile picture graphic.
Promote your banner designing prowess to other sellers, so that you increase your brand awareness along Etsy.
When you have an awesome shop yourself, you are more likely to get sales!
18. Logos & branding kits
Move over, clip art! Logos and branding kits are in high demand as they fulfill the crucial need of every business that is striving for a unique identity.
Bundle your logos and branding kits or offer them individually to maximize your reach. Also, combining them with other digital products like media kit templates elevates your shop’s appeal.
This caters to diverse clients from Etsy sellers to businesses, influencers, and bloggers. Selling in this segment, you’ll never run short of market demand. Get ready to impress with your graphic skills, and ride the wave of this profitable venture on Etsy.
19. Thank you cards
This is a timeless product that is regularly used by businesses and individuals to express their gratitude.
Offering these thank you cards in digital, customizable formats can attract more buyers due to ease of customization and competitive pricing relative to store-bought alternatives.
You can also sell the same design on physical cards if you want for another revenue stream.
20. Fonts
In the world of businesses, creators, and crafters galore are on a relentless hunt for the perfect font that suits their needs. Where versatility is a font’s middle name – they can jazz up a brand’s website or add pizzazz to a party invitation.
Cricut fonts, in particular, are best-sellers. It is specially crafted for Cricut machines – a hit in the Etsy community of designers and makers.
Remember, the devil is in the (font) detail. Jump into the journey of digital font selling on Etsy and watch your typography turn into a treasure in no time.
21. Resume templates
Resume templates are handy, well-designed digital products are reportedly perfect for professionals keen on making their job applications stand out. It is mostly designed to suit particular sectors such as real estate or marketing.
After all, a well-structured resume could be the golden ticket to someone’s dream job – like one of these low stress jobs that pay well without a degree.
However, in my personal experience, the most successful templates are clean, professional, and neutral in color.
22. Invoice templates
You might think that cashing in invoice templates may seem odd, but these digital products offer ample sales potential on Etsy!
Their charm lies in their simplicity and frequently used nature by a wide range of businesses. Small business owners, short on time and design skills, frequently scout Etsy for professionally designed, eye-catching invoices – duly making it your prime market.
Transform invoice templates into a goldmine, with less likelihood of running into steep competition. With an average selling price of $10, you can surely earn money online quickly.
23. Website templates & themes
Are your web design skills a cut above the rest?
Leveraging your skills to create and sell website templates and themes on Etsy, and turn your talent into a tidy profit. This digital product must be customization-friendly with a range of applications, and cater to a broad audience—from small businesses to in-demand bloggers, giving them a sleek, professional online presence minus the design headache.
Begin by focusing on creating templates on popular website-building platforms like WordPress with a Kadence WP Theme. Make sure they serve a specific market, like photography websites or eCommerce stores, and ensure your products have unique, eye-catching designs that set them apart from the sea of competitors.
Remember, if your themes and templates are more unique and tailored. You can command, sometimes get a range of your product to $50.
24. Stickers
Stickers, both physical and digital stickers, are hot commodities on Etsy, cozily nestled among the platform’s top-selling items.
It also appeals to a large market spectrum, from social media users who love accentuating their chats with digital stickers, to fans of physical stickers decorating their belongings.
Remember, one major selling point is the editability of digital stickers, enabling customers to customize after purchase. Dial your creativity, pick a distinct theme, and roll out your sticker sets on Etsy – there’s a world waiting to stick onto your designs!
25. Bookmarks
Feeling bookish? Get your create-on and cash in on the thriving trend of selling digital bookmarks on Etsy.
Digital bookmarks, at a modest cost of $2 – $3 a pop, are gaining popularity as one of the easiest and fastest-selling digital products, thanks to their charm, practicality, and customized appeal.
Create an aesthetic touch on your reading escapades by hitting the serious tribe of bookworms. To amp up your sales and earn money quickly, don’t forget to add “personalization” options to your bookmarks.
26. Editable flyers
As demands surge, these feature-rich editable flyers become ideal for crafty entrepreneurs aiming to make a profit.
Most of your clients will be large markets comprising event organizers, business owners, and individuals who find convenience in ready-made editable materials.
Success in selling editable flyers on Etsy lies in understanding your target clientele’s needs, creating versatile and appealing designs, and offering top-notch quality. Kickstart your venture by preparing a wide range of attractive editable flyers.
27. Menu templates
Fresh out of the oven, menu templates are popular with restaurant owners to party planners who crave these editable, print-ready goodies.
These menu templates are flexible and can be tailored for cafes, restaurants, weddings, and even small business events. Therefore, begin by creating captivating designs–uniqueness sells and is editable for everyone who wants to customize it.
So preheat your digital oven – it’s time to serve up some mouth-watering menu templates on Etsy.
28. Gift tags
Digital gift tags on Etsy could light up your entrepreneurial path. With an average selling price of $5, these little printables have a big demand, particularly for special occasions like weddings and birthdays.
Ideal for individuals and businesses, this product can fit a myriad of needs from Christmas presents to children’s party favors. If you want to maximize your profits, focus on offering a wide range of designs that target different occasions and tastes.
Don’t forget to consider making a customization service that gives your customers a chance to tweak and add their personal touches.
29. Ebook Templates
Ebook templates have emerged as one of the most popular digital products on Etsy.
Beyond individual ebooks, sellers also offer a variety of creatively designed ebook templates, ebook covers, and materials for children’s books. With a target audience interested in arts and crafts, informative ebooks offer exceptional sales potential, especially those that provide professional knowledge in specific niches like graphic design or online money-making tips.
e-Printables Free ebook
Curious about selling printables on Etsy but don’t know where to start?
Get the secret list of best-selling products by month and learn you how to capitalize on seasonal trends to make sales.
Download Now
30. Fitness Trackers
Fitness trackers‘ popularity is booming as they cater to a wide array of tracking necessities beyond just gym visits or step counting.
This product helps monitor weight loss programs, home workout plans, and 30-day challenges, effectively, becoming a one-stop-shop for holistic wellness.
They are ideal for those aiming to enhance their fitness, sleep quality, and overall productivity. With an average selling price of $5, they offer an affordable solution to digital tracking needs.
31. Debt Payoff Trackers
Debt payoff trackers are fundamental tools for efficient financial management and debt reduction. They provide a concrete visual of one’s financial obligations and illustrate the progress made toward extinguishing each debt.
This encourages a consistent habit of payment and propels individuals towards financial freedom. However, cost should not be a barrier to good financial habits, which is why our website offers a wide range of high-quality debt payoff trackers completely free of charge.
While these are still popular on Etsy, you have to realize many people want free or extremely cheap.
32. SVG Files for Cutting Machines
Scalable Vector Graphic (SVG) files for cutting machines like Circut or Silhouette, are a crafter’s dream, making them a top-tier product to sell.
You can elevate your service by including a PDF tutorial or short video guide demonstrating the use of your product.
Ensure the functionality of your products by carrying out tests prior to listing.
33. Personalized Recipe Books
Being a foodie’s ultimate treasure, these recipe collections are perfect to tickle the taste buds of amateur cooks or pro food bloggers. Plus you can create recipe book templates to be used in Goodnotes or Notability.
Cultivate your online presence to spice up the sales of your digital recipe books.
From personal experience, I bought a digital recipe book because I didn’t want to create one myself.
34. Budget Planners
Budget planners are soaring in popularity, with these nifty tools averaging quite a tidy sum of $5-20 each. Its powerful design is both lucrative for sellers and beneficial for buyers.
In an increasingly digital world, these planners provide a seamless way to stay and stick on top of your finances. From the ordinary individual aspiring to save a penny or two to the business owner meticulously monitoring their profits and expenses. Some budget planner pros, like FRGLMAMA, have made over 60,000 sales!
Here’s a pro tip: Increase your profits by bundling your budget binder with envelopes and to-do lists. Users love the convenience and it saves them a search.
35. Wall Art
Calling all artists and designers with flair! Wall Art reigns supreme on Etsy – proving it’s not just a ‘dabbling’ industry, but a potential goldmine.
Remember, the ‘Home Sweet Home’ and ‘Be Kind’ style arts still hold their charm! Maximizing profits can entail providing add-on services such as printing and shipping.
Wall art downloads make great posters, especially for those who prefer to change up their decor often.
36. Gratitude Journal
Gratitude journals, with their guided prompts and questions, make hot picks for those striving for self-improvement or simply savoring the good in life. This little gem, flourishing in popularity, provides a thoughtful juncture for folks to reflect on the positive aspects of their lives.
This digital product is tailored for therapists, life coaches, stressed corporate followers, or anyone looking to light up their lives with gratitude.
Make sure to use keywords related to gratitude and journaling in your product description to maximize visibility.
37. Self Improvement Printables
People love these printables for their blend of practicality and inspiration by giving actionable tips, uplifting affirmations, useful trackers, and more.
These self-improvement printables are timely digital products that strike a chord with a growing audience keen on personal growth, self-care, and organization.
This product is perfect for those seeking self-help workbooks, motivational quotes, fitness planners, and even kid-friendly educational materials.
Is selling digital products on Etsy still profitable?
According to legions of online entrepreneurs, the answer is a resounding YES!
As the market for digital products keeps on growing, so does the profit potential for digital sellers on Etsy.
The startup costs are delightfully low – most of what you’re paying is merely for your product’s licensing and Etsy fees. After that, it’s all pure profit!
This method could be your ticket to financial freedom. So if you’re a creative at heart with a knack for producing digital gems, it’s high time you join the Etsy bandwagon to sell your valuable creations.
Etsy passive income isn’t just a haven for handcrafted goods – it’s also a hub for downloadable products from design templates to educational materials.
e-Printables Free ebook
Curious about selling printables on Etsy but don’t know where to start?
Get the secret list of best-selling products by month and learn you how to capitalize on seasonal trends to make sales.
Download Now
Now, What Digital Downloads to Sell on Etsy?
By now, you’ve embarked on an enlightening journey around the process of selecting digital products to sell. You have digested tips, explored examples, and refined your knowledge regarding your market, skills, and customer desires to ensure profitability.
So, let’s cut to the chase, find your product that fits the mold, craft an appealing product description, price it competitively yet profitable, and start making waves with your expertise in the digital market.
By coupling this post with the free training offered, you could be the next seller with digital products that are the next hotcake on Etsy! Will you be the next Etsy seller to learn how to make 10k a month?
Take your first step towards this entrepreneurial journey, and soon enough you could be reaping the sweet profits of your digital endeavor.
Now, start your listings and remember to believe what you have to offer is worth buying.
E-Printables Course
Are you ready to start selling on Etsy? Great!
Now, learn from the experts, so you are successful from the start. Learn everything else that goes into actually making money with this side hustle.
Spend time making products that have the best chance of selling.
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Inside: Are you considering opening multiple Roth IRA accounts? You need to know if you can have multiple Roth IRAs. Here is what you need to know before making the decision.
While managing multiple Roth IRAs can create confusion, especially with tracking contributions across different custodians and potentially violating the five-year rule, I have found a method to use them to my benefit.
By having multiple Roth IRAs, I am able to diversify my investments as each Roth IRA account has a specific purpose.
However, you must know the rules about having multiple IRAs.
For the average investor, having multiple Roth IRAs may seem like a potential strategy to diversify your investments and attain financial independence, but it often leads to more confusion than benefit. Therefore, simplifying your finances by having a single Roth IRA might be a more feasible approach to reaching financial independence.
However, readers at Money Bliss know there is always a reason if I am strategic about why I do something.
So, let’s go through everything you need to know about having multiple Roth IRAs and if it is worth it for you.
What is a Roth IRA?
A Roth IRA stands as a type of retirement account with distinct tax benefits. The Internal Revenue Service (IRS) manages specific rules on who can open a Roth IRA, along with the contribution limits and withdrawal policies. 1
When your contributions in this retirement account and their interest earnings grow, they do so tax-free. 2
“Roth IRAs give you the flexibility to increase retirement savings tax-free. Thus, helping you to reach financial independence quicker.”
Kristy @ Money Bliss
Can You Have Multiple Roth IRAs?
Absolutely! You can certainly have more than one Roth IRA.
Different from some other types of retirement accounts, no restrictions apply to how many Roth IRAs you can manage.
From the IRS perspective, regardless of how many different IRA custodians you choose to utilize, your contributions are treated as one Roth IRA. You must still follow the guidelines on contribution amounts on your Roth IRA and traditional IRA. 3
This could potentially lead to tracking or contribution errors, or even unintentional violations of the Roth IRA’s 5-year rule, which can result in penalties. Furthermore, managing multiple accounts can also lead to an accidental overweighting of one investment strategy due to faulty fund allocation.
Why would a person want more than one Roth IRAs?
Several reasons could motivate an individual to manage multiple Roth IRAs:
Saving for various objectives. Investors might manage different IRAs for distinct purposes—one for retirement income, another as a cushion for emergencies.
Diversification of investment portfolio. Multiple Roth IRAs facilitate varied levels of risk adoption across different types of investments.
Raising insurance protection. With multiple Roth IRAs spread across separate institutions, each account can avail of $250,000 FDIC insurance protection. 4
Simplifying inheritance. Dealing with inheritance matters gets easier upon having distinct Roth IRAs, as assets can be split and handed down according to wishes.
Personally, I choose to have multiple Roth IRAs because I actively trade options contracts in one while the other is for long-term holdings.
Is it smart to have multiple Roth IRAs?
This is a highly personal decision as it depends on individuals and their unique circumstances.
Multiple Roth IRAs can offer remarkable benefits. However, keep in mind that more accounts may mean more fees and added complexity when managing your retirement savings.
You must consider your financial goals, risk tolerance, and time horizon is crucial before opting for multiple IRAs.
Many people end up with multiple IRAs when they decide to rollover a 401k from a previous employer.
Benefits of Opening Multiple Roth IRAs
You will have to decide if these benefits of multiple Roth IRAs are worth it for you:
Diversified investments. By having multiple accounts, it allows you to vary your investment strategy by account.
Conversion Flexibility. Managing the tax implications of converting traditional IRAs or employer-linked retirement accounts to Roth IRAs gets easier.
Varying Savings Objectives. Different Roth IRAs can be maintained for different purposes such as retirement income, house maintenance or rainy day funds.
Elevated Insurance Protection. If one Roth IRA is reaching the FDIC insurance limit, a second account with a different institution ensures additional protection.4
Drawbacks of multiple Roth IRA accounts
While having multiple Roth IRAs has broader benefits, it comes with some shortcomings:
Complex Management. Managing several Roth IRAs requires frequent monitoring and coordination.
Increased fees. Many IRA accounts come with fees. Even low fees across multiple accounts can add up.
Unequal Investment Allocation. Spreading investments across multiple IRAs makes monitoring performance difficult.
More Paperwork. More accounts mean more paperwork, which could be time-consuming.
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Unfolding the Complexities of Multiple Roth IRAs
With multiple Roth IRAs, complexities unfold around the management and tracking of these accounts. The investments need to be monitored on a regular basis to maintain strategic alignment with retirement goals.
It’s necessary to regularly check for fees and investment performance.
Balancing the portfolio of multiple IRAs plays a vital role, as the percentage of each investment differs between accounts. This could make it challenging to form a streamlined portfolio until you have sufficient experience.
Nevertheless, this is an easier question to answer than is now a good time to buy stocks.
Understanding the rules with multiple Roth IRAs
Understanding the regulations with multiple Roth Individual Retirement Accounts (IRAs) is essential when planning for a stable retirement.
With a comprehensive overview of the laws governing multiple Roth IRAs, one can strategically leverage these tax-advantaged accounts for optimal retirement savings.
No more confusion or lack of knowledge on how many Roth IRAs they can legally own, this section provides clarifications on these essential rules.
Does having multiple Roth IRAs mean you can contribute more total money each year?
The short answer is no.
Regardless of how many Roth IRAs you have, your total annual contributions combining all accounts can’t surpass the IRS-placed limits.
For 2023, the limit stands at $6,500 if you’re under 50 or $7,500 if you’re 50 or older. 3
In 2024, the limit stands at $7000 if you’re under 50 or $8000 if you’re 50 or older. 3
Can I contribute to a Roth IRA and a Traditional IRA?
Yes, you can contribute to both a Roth IRA and a Traditional IRA.
However, the total contribution to all your IRAs cannot exceed the annual limits set by the IRS. 3
For instance, in 2023, the total contribution limit is $6,500 for individuals under 50, and $7,500 for those who are 50 or older.
You don’t want to be taxed on excess IRA contributions.
Tips for managing multiple IRAs
Managing multiple IRAs comes with its own set of challenges. But, with the right approach, you can reap substantial benefits:
Organize Your Investments. Keep your IRAs clearly labeled for distinct goals—a critical step.
List Your Beneficiaries Properly: You must list your beneficiaries on each Roth IRA account.
Consolidate Accounts. If you find managing many accounts overwhelming, think about consolidating them at one institution.
Regular Review. Evaluate your portfolio time and again to see if adjustments are needed.
Monitor Fees. Fee accumulation can hollow out your retirement savings. Keep a close watch on them.
Use Software to Help You. My personal favorite is Quicken Classic
For many people, they learn how to invest 10k the first time using their Roth accounts.
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FAQs About Having Multiple Roth IRAs
For 2023, the total combined contribution limit for all of your Roth IRAs stands at $6,500, or if you are 50 or older, it is $7,500 thanks to an extra ‘catch-up’ contribution.
This limit applies to the total contribution made across all of your Roth IRAs and traditional IRAs.3
The IRS does not impose a limit on the number of IRAs an individual can own. You are free to open as many IRAs—Roth or traditional—as you want to suit your retirement savings strategy.
Remember, however, that total annual contributions across all your IRAs must stay within the defined limit. [Quote from IRS documentation stating there’s no limit on the number of IRAs]
No, unfortunately, you can’t.
The yearly limit of $7,000 (or $8,000, if you’re 50 or older) applies to the total amount you contribute across all of your Roth and traditional IRAs, not each individual account for 2024. 3
Yes, you can. The IRS doesn’t set a cap on the number of Roth IRA conversions you can execute.
So, you can certainly convert multiple traditional IRAs into just one Roth IRA.
Take note that you’re likely to owe income tax on the entire amount converted in the conversion year.
Learn more about converting a traditional IRA to a Roth IRA because this decision will affect your taxes.
From my experience, there are times when it is wise to convert and I did. Then, there were others that converting the account did not make financial sense. So, make sure you figure out the best-case scenario for you.
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Now, How Many Roth IRAs Can I Open?
In conclusion, it is not only possible but also potentially advantageous to hold multiple Roth IRA accounts.
By diversifying your retirement savings across various Roth IRAs, you can expose your money to different asset classes and investment opportunities not all available in one account.
Learn how to invest in stocks for beginners.
Nevertheless, the decision to open multiple Roth IRAs must be driven by your personal financial circumstances, retirement objectives, risk tolerance, and expected time horizon. If the decision aligns with your financial blueprint and retirement strategy, opening multiple Roth IRAs today could be a smart move.
Given the unique tax advantages Roth IRAs offer – tax-free withdrawals during retirement – this could ensure a financially secure and tax-efficient retirement.
Honestly, I think choosing the right brokerage is harder for most people.
As always, consider seeking guidance from a trusted financial advisor to help navigate these decisions and ensure your retirement planning is optimally structured for your financial needs and goals.
Remember, the key to successful retirement planning lies in understanding all associated rules, benefits, and potential drawbacks.
Sources
Internal Revenue Service. “Types of Retirement Plans.” https://www.irs.gov/retirement-plans/plan-sponsor/types-of-retirement-plans. Accessed October 10, 2023.
Internal Revenue Service. “Roth IRAs.” https://www.irs.gov/retirement-plans/roth-iras. Accessed October 10, 2023.
Internal Revenue Service. “Retirement Topics – IRA Contribution Limits.” https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-limits. Accessed October 10, 2023.
FDIC. “Your Insured Deposits.” https://www.fdic.gov/resources/deposit-insurance/brochures/insured-deposits/. Accessed October 10, 2023.
Internal Revenue Service. “Retirement Topics – IRA Contribution Limits.” https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-limits. Accessed October 10, 2023.
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Nestled in the prestigious Spanish enclave of Son Vida in Palma de Mallorca — dubbed the Beverly Hills of Mallorca — a 21st-century avant-garde residence resembles something straight out of a Hollywood film.
Villa Chameleon is a one-of-a-kind futuristic villa with its own spa and fitness center, but that merely scratches the surface of its long list of unique features.
With an architecturally distinct three-building compound with a massive 35,294 square feet of living space, an illuminated fine crystal facade, and a multi-purpose swimming pool that can convert into a helipad or a state-of-the-art dance floor — the Spanish villa is an experience not to be missed by any 007 die-hard fans.
Especially since it’s the perfect modern-day James Bond villain lair, and we could easily see Ernst Stavro Blofeld, Auric Goldfinger, Raoul Silva or the likes take up residence in this striking abode.
Built in 2012 by a Swiss-German consortium, the property first landed on the market in 2014 for a whopping €39.5 million, approximately US$52.2 million based on the exchange rate at the time.
Struggling to find a buyer willing to take over the property in a previously volatile Spanish real estate market, Villa Chameleon was relisted, nine years after its completion.
Now, the futuristic mansion is back on the market. Sporting a new asking price of €33 million (which amounts to a little over US$35 million) and new representation — Alby Euesden of The Agency Mallorca holds the listing — the modern Spanish villa is taking another stab at landing a new owner.
But more on that later. Let’s now take a moment to appreciate this James Bond-worthy residence.
LED lights grace 50% of its facade – one of the many hallmarks of Villa Chameleon
With more than half of the building’s facade consisting of beautifully illuminated fine crystals, programmable LED lights, and custom-etched glass balconies, Villa Chameleon is bathed in an assortment of eye-catching colors.
If you haven’t already guessed, the villa takes its name from the mesmerizing lighting effects that transform its ambiance at the touch of a button.
And just when you thought it couldn’t get any better, this lavish estate boasts a multi-purpose 1,830 square-foot retractable pool floor that can transform into a helipad or a state-of-the-art dance floor among its boundless amenities.
From entertaining guests alfresco to having a dance night out, the Burmese teak movable pool deck is designed for James Bond-style living — and is perhaps best accompanied with a glass of the obligatory Vodka Martini (shaken, not stirred) — symbolic of how James Bond takes his Martinis.
Even seasoned real estate pros who are somewhat immune to glam amenities and have seen hundreds of million-dollar listings throughout their careers are in awe of this property.
The Agency cofounder and CEO Mauricio Umanky — also familiar to audiences outside of the real estate world as Kyle Richards’ husband on The Real Housewives of Beverly Hills, as one of this season’s most hyped contestants on Dancing with the Stars, and a cast leader on Netflix’s newest docu-series, Buying Beverly Hills — had to travel to Mallorca, Spain to see it for himself.
And he did a little more than that.
Mauricio filmed himself touring the property, and you can see from the footage that even he is taken aback by the villa and its roster of amenities.
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That said, a James Bond-style mansion wouldn’t be complete without its very own five-star amenities, offering modern-day conveniences in all aspects of daily living for those who can afford it.
And this brings us to the inside of the property.
Stepping inside Villa Chameleon – a true Mediterranean oasis
With panoramic views stretching from the stunning Mediterranean Sea to the cityscape and port of Palma de Mallorca, Villa Chameleon is a bona fide oasis.
The sprawling estate, perched atop the Son Vida hills in the prestigious Palma de Mallorca — and set just a 10-minute drive from Palma Old Town — has a total of 10 bedrooms and 9 full baths.
Much like the house’s exteriors, the interiors also change colors come nighttime, creating a mesmerizing effect.
It also has 3 swimming pools, an underground five-car garage, a private cinema, an impressive wine cellar, a curated library, a fully-equipped health and wellness retreat, staff quarters and to top it all off, a 2,200 square foot self-contained guest house spread across the 1.61-acre lot.
The main building is a three-story residence containing the main living space and master suites. This section of the living space includes a professional-grade kitchen, glass elevator, spacious terrace, and floor-to-ceiling glass walls with direct access to two rooftop pools.
Related: Skyfall, James Bond’s Childhood Home in the Scottish Highlands
The second building, connected by an underground tunnel, is perhaps the key secret to achieving a James Bond-like physique. This health and wellness facility includes a fully equipped gym, sauna, spa and indoor lap pool.
The guest house is nothing short of stellar — a self-contained, 2,200 square feet living space that comes with a wraparound Mediterranean garden and a private driveway, offering privacy and comfort.
First listed in 2014 for €39.5 million, the James Bond-worthy villa is now on the market for €33 million
The showstopping Mallorca home was initially listed for sale in 2014 for a whopping €39.5 million.
And while it didn’t land a buyer in its first turn on the market, the ultra-luxurious Palma de Mallorca villa is taking another stab at finding its new owner.
With a new listing price (that shaved off a few million $$$ from its former asking price), and new representation — the property is listed with Alby Euesden of The Agency Mallorca — Villa Chameleon is on the market for €33 million.
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There have been some more abrupt rate spikes in the recent past–days where the average mortgage rate has risen by more than an eighth of a percent (the standard increment separating one mortgage rate from the next). Today was not one of those days.
But while rates were only modestly higher versus yesterday, they achieved the unfortunate distinction that’s been handed out in the past month more than in the past several decades combined. Specifically, today’s rates represent a new multi-decade high (23 years to be precise).
That achievement no longer has the shock value it once did. It’s just a thing that gives us another sentence to write. So let’s move on.
Today’s rate spike happened in spite of Fed Chair Powell confirming that the Fed is likely done hiking the Fed Funds Rate. To be fair, the Fed’s rate doesn’t dictate mortgage rates, nor does it even correlate very well much of the time. This is especially true right now when short term rates are higher than long term rates (i.e. inverted yield curve).
As the curve un-inverts (which we’d expect to see based on the Fed’s stance), it can happen in two ways: long term rates can rise more quickly than short term rates, or short term rates can fall more quickly than long term rates. Actually the 3rd and least common example are the days where short term rates fall and long term rates rise. That’s what we had today.
Mortgages tend to be caught in the middle when it comes to the benchmarks for “short and long” in the bond market (2yr and 10yr Treasuries, specifically). We didn’t lose as much ground as 10s, but we didn’t make any gains as seen in 2s.
The average lender is just a bit higher into the 8% range now for a top tier conventional 30yr fixed scenario.
An initial public offering, or IPO, represents the first time a company makes its shares available for public trading. A pre-IPO placement involves the sale of unregistered shares in a company before they’re listed on a stock exchange for the first time.
A pre-IPO placement usually occurs immediately before a company goes public.
Companies typically sell pre-IPO shares to hedge funds, private equity firms and other institutional investors that can purchase them in large quantities. It’s possible, however, to get involved in pre-IPO investing as an individual retail investor.
Investing in IPOs or pre-IPO stock could be profitable, if the company’s public offering lives up to or exceeds market expectations. But it’s also risky, since you never know how a stock will perform in the future.
How Does Pre-IPO Placement Work?
An IPO, or initial public offering, is an opportunity for private companies to introduce their stock to the market for the first time. A typical IPO requires a lengthy process, as there are numerous regulatory guidelines that companies must meet.
Once those hurdles are cleared, however, the company will have a date on which it goes public. Investors can then purchase shares of the company through the stock exchange where it lists.
Pre-IPO investing works a little differently. The end goal is still to have the company go public. But before that, the company sells blocks of shares privately, based on its IPO valuation. A successful pre-IPO gives the company attention, as well as capital from investors ahead of the actual IPO date.
For the most part, pre-IPO shares are restricted to high-net-worth investors, or accredited investors, i.e. those who can afford to invest large amounts of capital, and can afford to take on a certain amount of risk. A pre-IPO placement of shares could be made without a prospectus or even a guarantee that the IPO will occur.
Individual investors typically don’t have the funds required, or the stomach for that level of risk.
In return for that measure of uncertainty Pre-IPO investors get in on the ground floor and purchase shares before they’re available to the market at large. There may also be an added incentive. Because they’re buying such large blocks of shares, pre-IPO investors may get access to them for less than the projected IPO price. 💡 Quick Tip: IPO stocks can get a lot of media hype. But savvy investors know that where there’s buzz there can also be higher-than-warranted valuations. IPO shares might spike or plunge (or both), so investing in IPOs may not be suitable for investors with short time horizons.
An Example of Pre-IPO Placement
Pre-IPO placements have gained popularity over the last decade, with more companies opting to offer them ahead of going public. Some of the companies that have offered pre-IPO stock include Uber and Alibaba, both of which have ties to e-commerce.
Alibaba’s pre-IPO offering was notable due to the fact that a single investor and portfolio manager purchased a large block of shares. The investor, Ozi Amanat, purchased $35 million worth of pre-IPO stock at a price that was below $60 per share.
He then distributed those shares among a select group of families. By the end of the first public trading day, Alibaba’s shares had risen to $90 each. Alibaba’s IPO delivered a 48% return to those pre-IPO shareholders due to higher-than-expected demand for the company’s stock.
In Uber’s case, PayPal agreed to purchase $500 million worth of the company’s common stock ahead of its IPO. PayPal then lost a large portion of its investment when the Uber stock price fell by about 30% following its IPO.
Pros and Cons of Pre-IPO Placement
There are benefits to pre-IPOs placements, but there are also some important drawbacks that investors should understand.
Pros of Pre-IPO Placement
From the perspective of the company, pre-IPO offerings can be advantageous if they help the company to raise much-needed capital ahead of the IPO. Offering private placements of shares before going public can help attract interest to the IPO itself, which could help make it more successful.
For investors, the benefits include:
• Access to shares of a company before the public.
• The potential ability to purchase shares of pre-IPO stock at a discount. So if a company’s IPO price is expected to be $30 a share, pre-IPO investors may be able to purchase it for $25 instead. This already gives them an edge over investors who may be purchasing shares the day the IPO launches.
• Purchasing shares at a discount can potentially translate to higher returns overall if the IPO meets or exceeds initial expectations. The higher the company’s stock price rises following the IPO, the more profits you could pocket by selling those shares later.
Recommended: How to Find Upcoming IPO Stocks Before Listing Day
Cons of Pre-IPO Placement
While pre-IPO investing could be lucrative, there are some potential backs to consider. Specifically, there are certain risks involved that could make it a less attractive option for investors.
• The company’s IPO may not meet the expectations that have been set for it. That doesn’t mean a company won’t be successful later. Facebook, for example, is noteworthy for having an IPO described as a “belly flop”. A disappointing showing on the day a company goes public for the first time could shake investor confidence in the stock and bode ill for its future performance. That in turn could affect the returns realized from an investment in pre-IPO stock.
• The company may never follow through on its IPO and fails to go public. In that case, investors may be left wondering what to do with the shares they hold through a pre-IPO private placement. WeWork is an example of this in action. In 2019, the workspace-sharing company announced that it had scrapped its plans for an IPO, thanks to limited interest from investors and concerns over the sustainability of its business model. In 2021, the company did go public — but not through an Initial Public Offering. Instead, WeWork went public through a merger with a special acquisition company or SPAC.
• Pre-IPOs are less regulated than regular IPOs.
💡 Quick Tip: Before opening any investment account, consider what level of risk you are comfortable with. If you’re not sure, start with more conservative investments, and then adjust your portfolio as you learn more.
Summary of Pros and Cons of Pre-IPO Placement
Here’s a quick look at the benefits and drawbacks of pre-IPO placements:
Pre-IPO Private Placement Pros and Cons
Pros
Cons
• Investors have an opportunity to get into an investment ahead of the crowd
• Pre-IPO investors may be able to purchase shares at a price that’s below the IPO price
• Purchasing pre-IPO stock could yield higher returns if the IPO is successful
• Pre-IPO placements can be risky, as they’re less regulated than regular IPOs
• There are no guarantees that an IPO will deliver the type of returns investors expect
• Does not guarantee you’ll get the loan
How to Buy Pre-IPO Stock
Typically, only accredited investors can purchase pre-IPO placements. As of 2021, the Securities and Exchange Commission defines an accredited investor as anyone who:
• Earned income over $200,000 (or $300,000 if married) in each of the prior two years and reasonably expects to earn that same amount in the current year, OR
• Has a net worth over $1 million, either by themselves or with a spouse, excluding the value of their primary residence, OR
• Holds a Series 7, 65 or 82 license in good standing
If you meet these conditions for accredited investor status, then you may be able to purchase shares of pre-IPO stock through your brokerage account. Your brokerage will have to offer this service and not all of them do.
Other options for buying pre-IPO stock include purchasing it from the company directly. To do that, you may need to have a larger amount of capital at the ready. So if you’re not already an angel investor or venture capitalist, this option might be off the table.
You could also pursue pre-IPO placements indirectly by investing in companies that routinely purchase pre-IPO shares. For example, you might invest in a mutual fund or exchange-traded fund that specializes in private equity or late-stage companies preparing to go public. You won’t get the direct benefits of owning pre-IPO stock but you can still get exposure to them in your portfolio this way.
The Takeaway
For some high-net-worth or institutional investors, buying pre-IPO shares — a private sale of shares before a company’s initial public offering — might be possible. But it’s highly risky. For the most part, individual investors won’t have access to these kinds of private deals. But eligible investors may be able to trade ordinary IPO shares through their brokerage.
Whether you’re curious about exploring IPOs, or interested in traditional stocks and exchange-traded funds (ETFs), you can get started by opening an account on the SoFi Invest® brokerage platform. On SoFi Invest, eligible SoFi members have the opportunity to trade IPO shares, and there are no account minimums for those with an Active Investing account. As with any investment, it’s wise to consider your overall portfolio goals in order to assess whether IPO investing is right for you, given the risks of volatility and loss.
Invest with as little as $5 with a SoFi Active Investing account.
Photo credit: iStock/filadendron
SoFi Invest® The information provided is not meant to provide investment or financial advice. Also, past performance is no guarantee of future results. Investment decisions should be based on an individual’s specific financial needs, goals, and risk profile. SoFi can’t guarantee future financial performance. Advisory services offered through SoFi Wealth, LLC. SoFi Securities, LLC, member FINRA / SIPC . SoFi Invest refers to the three investment and trading platforms operated by Social Finance, Inc. and its affiliates (described below). Individual customer accounts may be subject to the terms applicable to one or more of the platforms below. 1) Automated Investing—The Automated Investing platform is owned by SoFi Wealth LLC, an SEC registered investment advisor (“Sofi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC, an affiliated SEC registered broker dealer and member FINRA/SIPC, (“Sofi Securities).
2) Active Investing—The Active Investing platform is owned by SoFi Securities LLC. Clearing and custody of all securities are provided by APEX Clearing Corporation.
3) Cryptocurrency is offered by SoFi Digital Assets, LLC, a FinCEN registered Money Service Business.
For additional disclosures related to the SoFi Invest platforms described above, including state licensure of Sofi Digital Assets, LLC, please visit www.sofi.com/legal.
Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform. Information related to lending products contained herein should not be construed as an offer or prequalification for any loan product offered by SoFi Bank, N.A.
Investing in an Initial Public Offering (IPO) involves substantial risk, including the risk of loss. Further, there are a variety of risk factors to consider when investing in an IPO, including but not limited to, unproven management, significant debt, and lack of operating history. For a comprehensive discussion of these risks please refer to SoFi Securities’ IPO Risk Disclosure Statement. IPOs offered through SoFi Securities are not a recommendation and investors should carefully read the offering prospectus to determine whether an offering is consistent with their investment objectives, risk tolerance, and financial situation.
New offerings generally have high demand and there are a limited number of shares available for distribution to participants. Many customers may not be allocated shares and share allocations may be significantly smaller than the shares requested in the customer’s initial offer (Indication of Interest). For SoFi’s allocation procedures please refer to IPO Allocation Procedures. 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.
Owning a home is a lifetime goal for many of us, and a home loan helps a great deal to achieve this target. Accordingly, it’s not a surprise to see several companies offering home loans for people from different walks of life.
A report by the Reserve Bank of India (RBI), released in March, indicated that there was a significant decadal growth in home loan advances of almost 6 per cent to 14.2 per cent in March 2023 from 8.6% in March 2012. The report was a testimony to Indians’ increasing reliance on home loans.
Home loans are most likely to be high in amount and for the longer term. A borrower spends her/his hard-earned money to repay these loans, which come with a heavy interest. The prevailing home loan interest rates range from 8.50 percent to 14.75 percent. The longer the duration of the loan, the more interest you end up paying.
So, how do you save up enough to finish the loan? How do you ensure you have sufficient money left in your wallet for the rest of the month once the home loan EMI has been deducted? One of the best ways is to repay the loan earlier than its actual duration. It requires commitment, discipline, and strategic financial planning to pay it earlier.
But, if paying off a little extra comes at a great financial strain for you, here are a few other ways that you could explore to repay your loan quicker.
Refinancing
In the refinancing method, you should choose a bank that offers you a home loan at a lower interest rate and close your running loan with the money sanctioned by the new bank.
Since home loan interest rates of different banks vary, a little research should help you find a bank with a lower interest rate to get your home loan refinanced.
For those who can afford to pay a higher EMI, you should try and opt to refinance your loan with a shorter repaying term. This readjustment to your finances — although may sting you for a bit in the short term — will be a blessing for you in the future.
Switching to fixed rate
If you have a home loan with a floating interest rate, consult a financial advisor and switch it to a fixed rate through another bank.
In a floating interest rate home loan, you pay extra money when the lender increases loan interest rates, as and when the RBI hikes repo rates. Switching to a fixed rate will keep you immune from rising interest rates.
Avoid accumulating new debts
Any new loan or a defaulted payment, such as a credit card, can derail your financial planning, forcing you to miss your home loan payment. It’s better not to take a new loan if you are already paying a high monthly instalment on your existing loan.
Set up automatic payments
This is an effective way to inculcate good money habits. You can set up automatic home loan payments for the date you receive your salary. It will ensure your payment is on time, and you won’t incur any penalty from the lender.
Make additional payments
If you have the resources to make extra payments on the home loan, do not hesitate. You can opt for weekly or fortnightly payments instead of monthly for early repayment. Additional payments will reduce your overall loan repayment amount and help you save money.
Allocate windfalls and bonuses to loan payments
To make early payments on your home loan, you can allocate windfalls, tax refunds, work bonuses, or any unexpected financial gains to repayment. Not just that, you can also channel your inheritance or gifts towards paying off the home loan.
Closing a home loan and living debt-free, comfortably in that cosy home should not take you a lifetime. The better you manage your finances, the higher your savings will be. Now, hurry up and get to your excel sheets before the next EMI.
Atul Monga, CEO and Co-Founder, Basic Home loan
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Rates on the 30-year fixed-rate mortgage eclipsed 8% this week as the Treasury yield surpassed 4.9% for the first time since 2007, according to one index.
Per Mortgage News Daily, mortgage rates touched 8.03% on Wednesday, up from 7.69% the previous week. HousingWire’s Mortgage Rates Center showed Optimal Blue’s average 30-year fixed rate for conventional loans at 7.78% on Wednesday, compared to 7.52% the previous week.
Both indexes showed higher rates than the Freddie Mac‘s Primary Mortgage Market Survey, which focuses on conventional and conforming loans with a 20% down payment, and recorded the 30-year, fixed-rate mortgage at 7.63% as of Oct. 19, up 6 basis points from the prior week. By contrast, the 30-year, fixed-rate mortgage was at 6.94% a year ago at this time.
Mortgage rates in the 8% range are further impacting already strained levels of affordability, Sam Khater, Freddie Mac’s chief economist, said in a statement.
“In this environment, it’s important that borrowers shop around with multiple lenders for the best mortgage rate,” Khater said. “With research showing down payment is the single largest barrier to first-time homebuyers attaining homeownership, borrowers should also ask their lender about down payment assistance.”
While high rates are stifling homebuyers, homebuilders are feeling the brunt as well, Khater noted.
“Incoming data shows that the construction of new homes rebounded in September but as rates keep rising, home builders appear to be losing confidence. As a result, we expect construction to trend down in the short-term,” he said.
On Tuesday, the builder confidence fell to 40, its lowest point since January 2023, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI).
Bob Broeksmit, the president and CEO of the Mortgage Bankers Association, said the organization expects rates to level off and fall over the next quarter.
“Mortgage application activity is now at its lowest level in 29 years as high mortgage rates, limited housing inventory, and affordability challenges continue to constrain borrowers,” he said in a statement. “While 2023 has been a tough time for the housing market, MBA expects that mortgage rates will moderate heading into 2024, which should bring some relief to those looking to buy a home.”
Still, inventory remains a huge problem for the housing market. Though inventory has ticked up of late, existing home sales are still down double-digits from last year and many homeowners are reluctant to give up sub 4% rates when borrowing costs are so high.
“With mortgage rates remaining near their 20-year high in recent weeks, homeowners are hesitant to list their properties,” Jiayi Xu, economist at Realtor.com said.
If you thought 8% mortgage rates were bad, what about 9% mortgage rates?
What was once unthinkable is now not so hard to believe, with 30-year fixed mortgage rates climbing ever higher.
At last glance, the 30-year was priced at 7.63%, per Freddie Mac’s lagging weekly survey.
But other estimates have been higher, including MND’s daily index that put the 30-year at a ripe 8.03%.
And today I even saw someone calling for 12% mortgage rates by Q2 2024. Yikes!
Are 9% Mortgage Rates Next?
I’ve already written about 7% mortgage rates and 8% mortgage rates for that matter, at the time wondering if and when they’d arrive.
Now here I am writing about 9% mortgage rates, which is worrisome given those past fears coming to fruition.
However, that doesn’t necessarily mean we keep going higher from here, nor do we climb another 1% higher.
If you look at mortgage rates over the past year, they’ve gone up, but not by an enormous amount.
Take Freddie Mac’s weekly survey data, which pegged the 30-year fixed at 6.48% to begin 2023.
Today, they said the 30-year fixed averaged 7.63%, which represents an increase of 1.15%.
Yes, it’s higher. And yes, it’s further eroding home buyer affordability and hurting housing demand. But an increase of just over 1% over more than 10 months isn’t massive movement.
Consider the year 2022, when the 30-year kicked off January at 3.22% and ended with a bang at 6.42% in December.
Mortgage rates literally almost doubled during 2022 (short two basis points), while they’ve only risen 17% so far in 2023.
So the rate of ascent has slowed tremendously, if there is but one silver lining here (the other actually being that more high-rate loans being originated will present opportunity later).
Anyway, because mortgage rates are now a lot higher, the percentage gains pale in comparison. And there’s the question of rates nearing their peak.
I’m not convinced we go to 9%, at least by Freddie Mac’s measure, or even MND’s.
Sure, some loan scenarios with layered risk (low FICO score, high LTV, investment property, etc.) may already be at 9%. Or close.
But for the average home loan scenario, I don’t know if we go that high. If anything, 8% rates could signal a turning point.
The 21st Century High for Mortgage Rates Is 8.64% Per Freddie Mac
While we’re on the subject, I’d like the point out that the 21st century high for the 30-year fixed is 8.64%, per Freddie Mac data.
And it took place during the week of May 19th, 2000. So we are not far off from hitting a new high for this century, assuming rates continue their upward trajectory.
But until then, I’d be wary of anyone saying rates haven’t been this high since the 1990s, or something to that effect.
Also, recall that rates only increased 1.15% so far in 2023. They’d still need to rise another one percent by Freddie’s measure to get there.
Maybe that happens, maybe it doesn’t. Either way, there’s still a ways to go to reach that point.
Do We Need Higher Rates, or Just More Time to Let Them Sink In?
Everyone seems to be obsessed with higher and higher interest rates. As if pushing them ever higher will fix inflation.
But do they actually need to keep climbing into the stratosphere, or are we simply being impatient?
Perhaps they just need time to do their thing, which is basically what Fed chair Jerome Powell echoed today.
It coincides with the higher for longer mantra, that interest rates will need to stay at elevated levels longer than expected.
That could be enough to slow demand, consumer spending, home price appreciation, new hiring, etc.
They don’t necessarily need to keep going up from here. And that’s perhaps why the Fed is taking a wait and see approach with their own policy rate.
Of course, the Fed doesn’t control mortgage rates, but their own fed funds rate can act as a signal for the direction of the economy, and long-term rates such as 30-year fixed mortgage rates.
The fact that they’ve essentially stopped hiking should be a somewhat bullish sign that rates are sufficiently restrictive.
Powell also noted that the bond market might be turning its attention to the federal deficit and increased government spending, for which a couple wars might be to blame.
So there might be less importance to look at what the Fed is up to as there was earlier in the year.
The 10-Year Bond Yield Is About to Hit 5%
Meanwhile, the 10-year bond yield, which has been a fairly reliable indicator of 30-year mortgage rates, nearly hit 5% today.
At last glance, it was literally 4.99%, with apparent resistance at slightly higher levels. Some believe it could be a tipping point where bond buyers see opportunity.
If that’s true and yields calm down, chances are mortgage rates can too. At the same time, the mortgage rate spread between the 10-year yield is double its normal.
Usually around 170 basis points, it has widened to over 300 bps, meaning 5% yield plus that spread puts the 30-year fixed at roughly 8%.
During normal times, the math puts the 30-year fixed at about 6.75%. That alone would go a long way in fixing mortgage rates.
But until mortgage-backed securities (MBS) investors get more certainty, those spreads will remain wide.
Especially when you consider the prepayment risk if rates go down a lot and everyone refinances their 7-8% mortgages.
The takeaway for me at this juncture is that mortgage rates probably will continue rising from here, but maybe only gradually and by much smaller amounts.
That’s the good news. The bad news is they might have to linger at these high levels for longer than anticipated.
Ultimately, I really don’t want to write an article about 10% mortgage rates anytime soon.
The Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac, has released details of a new program to expedite short sales.
The program consolidates Fannie and Freddie’s current short sale programs, including the original Home Affordable Foreclosure Alternative (HAFA) programs and other proprietary ones.
The new streamlined approach will be known as the “Standard Short Sale/HAFA II,” and is designed to make short sales easier for those most in need.
Short Sales for Those Still Making Payments
First and foremost, the new guidelines will allow homeowners with Fannie or Freddie mortgages to pursue a short sale, even if they are current on their mortgage payments, assuming they have an eligible hardship.
At the moment, it’s difficult (but not impossible) to get a short sale going unless you fall behind on your payments, which kind of defeats the purpose of attempting to avoid full-blown foreclosure.
With HAFA II, loan servicers will be able to quickly qualify such borrowers without any additional approval from Fannie or Freddie.
Common hardships listed by the FHFA include unemployment, divorce, long-term disability, increased housing expenses, disaster (natural or man-made), business failure, and death of a borrower or household wage earner.
The streamlined process will also work for those who are transferred to a job or accept a new career opportunity more than 50 miles away.
This should help more borrowers conduct short sales without the massive credit score hits associated with multiple missed mortgage payments.
[Short sale vs. foreclosure with regard to credit]
Fannie and Freddie have also agreed not to pursue a deficiency judgment in exchange for a small financial contribution (assuming the borrower has sufficient income/assets).
It’s unclear how small it may be, but I would venture to say that most homeowners won’t want to pay it.
Service members who are relocated will also be automatically approved for short sales, even if current on their mortgages (and they won’t be subject to paying the contribution).
Quicker Short Sales for Those Already Behind
HAFA II also addresses those who are already behind on their mortgage payments and sailing full steam toward foreclosure.
These borrowers will enjoy an expedited approach to better deal with the time sensitive nature of the foreclosure process.
This means the documentation needed to demonstrate hardship may be reduced or even eliminated in some cases.
To further speed things up, or at least not unnecessarily slow things down, Fannie and Freddie will offer up to $6,000 to second mortgage holders to accelerate the short sales.
At the moment, a secondary lien holder can slow down a short sale by negotiating for a larger chunk of the outstanding balance, effectively stalling the entire process.
So hopefully the $6,000 will be enticing enough to speed along the process in most cases.
The new guidelines will also provide clarity on processing a short sale if a foreclosure sale is pending so borrowers can get last minute offers in and avoid losing their home.
Currently, loan servicers are required to review and respond to short sale offers within 30 days of receiving them.
They must also provide weekly status updates if the short sale is still under review after 30 days, and must finalize decisions within 60 days of the receipt of the offer.
Note: Borrowers who take part in the program will not be eligible for another mortgage backed by Fannie or Freddie for at least two years after the short sale occurs.
The HAFA II program will be effective come November 1, 2012.