My work on housing moves around the 10-year yield and the economics that move that. The growth rate of inflation has fallen a lot on the year-over-year data, but mortgage rates haven’t gone down, which isn’t surprising to me as my mantra has been:“Labor over Inflation.”
For 2024, the 10-year yield running between 3.80%-4.25% looks perfectly normal to me as long as the economic data is firm and the Fed hasn’t pivoted. I can’t see the 10-year yield below 3.37% unless the labor market breaks — meaning jobless claims over 323,000 on the four-week moving average. That means I can’t see mortgage rates going below 6%, especially with the spreads being bad, until the labor market or the economy gets weaker.
However, now we are at the same spot as last year, near the critical 4.34% level and we have the Federal Reserve meeting coming up. This is a big week, as you can see in the chart below.
With mortgage rates above 7% again, we will have to see what the Fed says at this meeting because, in the past few meetings, they have made it clear that policy is restrained and that they don’t want it to get too restrictive. This is what happened last year when the 10-year yield headed to 5% and we had 8% mortgage rates. However, there is a risk of the Fed sounding too hawkish again which would send the 10-year yield higher.
Purchase application data
As mortgage rates have been falling recently, we saw back-to-back weeks of growth in the purchase application data, which aligns with what we saw last year. Remember, we are working from extremely depressed levels in this data line, so the bar is so low that it doesn’t take much to move the needle.
Since November 2023, we have had 10 positive and five negative purchase application prints after making holiday adjustments. Year to date, we have had four positive prints versus five negative prints. Clearly, if mortgage rates can head toward 6% and hold we will get rising demand, but I believe the Federal Reserve wouldn’t be able to sleep at night if more people were buying homes.
Weekly housing inventory data
The one positive story for me in housing this year is that inventory is growing year over year for both active inventory and new listing data. I know it’s not a lot, but growth is growth. The one benefit of higher rates is that inventory can grow in the post-2010 qualified mortgage world as long as higher rates create softness in demand. It hasn’t been a lot of growth historically, but growth is growth.
Last year, the seasonal inventory bottom happened on April 14, which was the the longest time to find a seasonal bottom ever. This means we will show more than normal inventory growth until we get past tax day 2024.
Here is a look at the inventory last week:
Weekly inventory change (March 8-15 ): Inventory rose from 500,579 to 507,160
The same week last year (March 9-16): Inventory rose from 413,199 to 414,967
The all-time inventory bottom was in 2022 at 240,194
The inventory peak for 2023 was 569,898
For some context, active listings for this week in 2015 were 982,639
New listings data
New listings are growing yearly, which is another plus for housing. Last year, II picked up on the trend that new listing data was creating a historical bottom as the data line wasn’t heading lower with higher rates. The growth is a tad lighter than what I was hoping for. But as someone who didn’t buy the mortgage rate lockdown premise that inventory can’t grow with higher rates, this year is a good test case.
Here’s the weekly new listing data for last week over several previous years:
2024: 59,542
2023: 41,415
2022: 54,542
For some historical context, new listing data this week in 2010 was 306,020.
Price-cut percentage
Every year, one-third of all homes take a price cut before selling — this is regular housing activity and this data line is very seasonal. The price-cut percentage can grow when mortgage rates move higher and demand gets hit. When rates fall, they go lower than an average year.
Inventory is higher than last year, and we might have found the bottom already, so as the year progresses, the number of homes taking a price cut should increase. The goal is to see how the mortgage rate variable plays into this data line. This is why this week’s Fed meeting is key, to see if the 10-year yield can break higher, which should increase the price-cut data.
Here’s the percentage of homes that took a price cut before selling last week and how that compares to the same week in previous years:
2024: 31%
2023: 30%
2022: 17%
Week ahead: The Fed and housing data
The Federal Reserve’s language and the dot plot are the two things to watch this week. The dot plot should still show many Fed members having two to three rate cuts in play for 2024, with some going the opposite way from that group. We also will have tons of housing data coming out this week, including the builders’ confidence, housing starts, existing home sales, and Zillow home price data. However, the key is the Fed, Fed and the Fed!
Amidst a backdrop of inflation, rising borrowing costs, and growing debt levels, employee financial wellness has been on the decline in recent years. According to PwC’s 2023 Employee Financial Wellness Survey, a full 60% of full-time employees are stressed about their finances. Indeed, employees are even more concerned about their finances today than during the height of the pandemic.
Given that money worries can take a toll on employee health and well-being, as well as productivity at work, it makes sense that a growing number of employers are enhancing support for financial wellness. Bank of America’s 2023 Workplace Benefits Report found that 97% of employers now feel responsible for employee financial wellness (up from 95% in 2021, and from 41% in 2013).
Regardless of how well-compensated your staff may be, this type of resource can help workers feel more financially confident and prepared for the future. Here’s a look at 10 reasons why adding this benefit is so important.
1. Decreases Distractions and Increases Productivity
According to PwC’s Survey (which included 3,638 full-time employed adults across a variety of industries), financially stressed employees tend to be more distracted and less engaged while at work. The study found that financial stress and money worries had a negative impact on the respondents’ sleep, mental health, self-esteem, physical health, and personal relationships. Nearly one-third of employees surveyed admitted that financial insecurity has negatively impacted their productivity at work.
When employees are able to easily get answers to their financial questions and access on-site support when dealing with money problems, there’s a good chance they’ll be less stressed about their finances and more able to focus on their jobs. That’s a win for both employees and employers.
2. Improves Employee Physical Health
Financial stressors have been found to correlate directly with not only mental health challenges but also with poor physical well-being. As the American Psychological Association points out in their Stress in America 2023 report, stress and anxiety put the body on high alert and ongoing stress can accumulate, causing inflammation, wearing on the immune system, and increasing the risk of a number of different ailments, including digestive issues, heart disease, weight gain, and stroke.
Providing your employees with the support they need now can go a long way toward staving off physical health challenges down the line.
3. Builds Loyalty
By offering financial wellness programs, employers demonstrate a commitment to their employees’ well-being, which can help foster employee loyalty and increase retention rates.
The PwC study found that just 54% of financially stressed employees felt there was a promising future for them at their employer, and they were twice as likely to be looking for a new job than employees who were less stressed about their personal finances. What’s more, 73% of financially stressed employees said they would be attracted to another employer that cares more about their financial well-being compared to just 54% of non-financially stressed employees.
Recommended: 3 Ways to Support Your Employees During Times of Uncertainty
4. Can Help Reduce the Burden of Student Debt
Employees struggling to pay down student debt often have difficulty contributing to 401(k) plans and achieving other financial goals, such as buying a house or car. By offering student loan repayment benefits and education, employers can reduce this burden and help employees plan for the future.
The good news is that these programs recently became more affordable. Under the Coronavirus Aid, Relief and Economic Security (CARES) Act, employers can now provide $5,250 tax-exempt annually for an employee’s student loan repayment through 2025. That means employees won’t pay income tax on contributions made by their employers toward educational assistance programs, yet the employer also gets a payroll tax exclusion on these funds.
A growing number of employers are offering some form of loan repayment support. In 2021, only 17% of companies offered any of these benefits. In October 2023, 34% of employers offered student loan benefits.
Recommended: How Student Loan Benefits Can Help Retain Employees
5. Employees Want It
According to the PwC study, the vast majority of employees want help with their finances. Not only that, the stigma around getting help with finances appears to be lifting. In 2023, employees overall were less likely to be embarrassed to ask for guidance or advice about their finances than they’ve been in the past: Just 33% said they find it embarrassing, compared to 42% in PwC’s 2019 survey.
In Bank of America’s Workplace Benefits Report (which surveyed more than 1,300 employees and nearly 800 employers), 76% of employees said they felt that employers are responsible for their financial wellness.
6. Can Help Parents Save for Future College Expenses
In a June 2023 survey of 1,000 parents of teenagers by Discover Student Loans, 70% of subjects said they were worried about financing their kids’ college expenses. In addition, 68% of parents were concerned about the amount of debt their kids will be saddled with even after the parents offer up their own financial assistance.
Providing employees with much-needed information about 529 college savings plans and giving them a convenient way to contribute directly from their pay, can go a long way in helping to relieve the stress associated with one of their top financial concerns.
While in the past, the options for using unspent 529 funds were limited (and often meant facing tax and penalty consequences), the SECURE 2.0 Act allows savers to roll unused 529 funds — to a lifetime limit of $35,000 — into the beneficiary’s Roth IRA, without incurring the usual 10% penalty for nonqualified withdrawals or generating any taxable income. The new rule went into effect January 1, 2024 and might come as a relief to any employees who worry about having excess funds stuck in a 529 should their child end up not needing the money.
Recommended: The Importance of Offering 529 Plan Contributions in an Employee Benefits Package
7. Helps to Clarify Confusing Financial Topics
Many young professionals want to buy their first home, but they don’t know how to save for a down payment or secure a mortgage. New to the workforce, they also struggle to understand financial topics they weren’t taught in school, such as income tax deductions (especially as they get married and have children), the necessity of life insurance, and wealth management and investing.
At the same time, older employees might feel overwhelmed by the financial options available to them. With educational resources and access to experts through a financial wellness program, employees can find the information they need from vetted and trusted sources. In PwC’s survey, 68% of employees said they use their employer’s financial wellness services such as coaching, workshops or online tools.
8. Protects Employees
Sometimes healthcare benefits just aren’t enough. In the event of a health emergency, employees need to be prepared for insurance deductibles and other unexpected costs. Solid financial preparations can prevent them from dipping into savings or making hardship withdrawals from 401(k) plans. Those withdrawals can not only damage their prospects for long-term financial stability, but also create administrative headaches for HR.
Providing an automated emergency savings program is fast becoming a way for employers to help provide a foundation for financial well-being for workers. These plans allow employees to make paycheck contributions to a dedicated account (possibly with a company match), and can help make your workforce more financially resilient in the face of life’s “What Ifs.”
Recommended: How Much Should Your Employees Have in Emergency Savings?
9. Enhances Your Organization’s DEI Efforts
These days, many employers of all sizes have a diversity, equity and inclusion (DEI) strategy or program in place to increase inclusion in the workplace. Offering financial wellness benefits to employees is yet another way to foster a more equitable company culture.
The reason is that financial wellness benefits can help level the playing field by helping to empower minorities and underrepresented groups, who may have more financial stress and encounter more barriers to economic opportunities. Giving all employee populations access to programs that can help them buy their first homes, pay down student debt, save for emergencies, and invest for the future allows them to build wealth for generations to come.
Recommended: How to Support Your Low-Wage Workforce
10. Helps Employees Plan for Retirement
Employer-sponsored retirement plans can help to ease the financial stress that stems from retirement planning. In addition to offering a retirement plan, you might also provide education programs on planning for retirement, understanding different types of accounts available, and best places to get started based on age and goals.
In addition, you might consider instituting a 401(k) match for their student loan payments. Thanks to a provision in Secure Act 2.0 (that went into effect at the start of 2024), companies can match employees’ qualified student loan payments with contributions to their retirement accounts, including 401(k)s, 403(b)s, SIMPLE IRAs, and government 457(b) plans. With this benefit, employees won’t need to make the decision regarding whether to contribute to their 401(k)s or make student loan payments.
Recommended: How Does an HR Team Implement a Student Loan Matching or Direct Repayment Benefit?
The Takeaway
Financial stress is a major concern for today’s employees, and something a growing number of workers want their employers to help with. Providing support for financial wellness can help boost employee engagement and retention, stave off mental and physical health concerns, help your company recruit top talent, and even lead to a more inclusive and equitable workplace.
SoFi at Work can help. We provide the benefit platforms and education resources that can enhance financial wellness throughout your workforce.
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Buying your first home is a thrilling milestone, marking a significant step towards independence and stability. However, it’s also a substantial financial commitment that can lead to buyer’s remorse if not carefully considered. To help you navigate this exciting yet daunting journey, here are some essential tips to ensure you make a confident and informed decision:
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Know Your Budget Inside Out
Before you even start browsing listings, take a thorough look at your finances. Understand what you can comfortably afford, factoring in not just the mortgage payments but also taxes, insurance, utilities, maintenance, and unexpected expenses. Being realistic about your budget sets a solid foundation for your home search and reduces the risk of overspending.
Do Your Research
Arm yourself with knowledge about the local real estate market. Research property values, recent sales, and trends in the areas you’re interested in. Understanding the market dynamics will empower you to make informed decisions and negotiate effectively when the time comes.
Get Professional Guidance
Enlist the help of experienced professionals, such as real estate agents, home inspectors, and mortgage brokers. A reputable agent can guide you through the buying process, offer valuable insights, and advocate for your best interests. Likewise, a thorough home inspection can uncover potential issues that might not be apparent to the untrained eye, saving you from costly surprises down the road.
Take Your Time:
While it’s natural to feel eager to find your dream home, resist the urge to rush the process. Take your time exploring different properties, attending open houses, and asking questions. Don’t feel pressured to make an offer unless you’re genuinely confident it’s the right choice for you.
Visualize Your Future
Imagine yourself living in the homes you’re considering. Picture your daily routines, envision family gatherings, and think about how the space will evolve with your needs over time. Connecting emotionally with a property can help you determine if it’s truly the right fit for you.
Sleep On It
Before making a final decision, give yourself some time to reflect. Sleep on it, discuss your thoughts and concerns with trusted friends or family members, and weigh the pros and cons objectively. A good night’s sleep can provide clarity and prevent impulsive decisions that you might later regret.
Negotiate Wisely
Don’t hesitate to negotiate terms that are favourable to you, whether it’s the price, closing costs, repairs, or contingencies. Be assertive yet respectful in your negotiations, and be prepared to walk away if the deal doesn’t align with your expectations.
Checklist Items
If you work from home, ensure that your workspaces are big enough. A small workspace, especially if you have to use it every day can get crammed and can lead to being unproductive. Also, if you’re planning to keep the existing appliances, take the time to test them out and make sure they are working properly. Don’t settle on anything that will make the home less functional for your needs.
Trust Your Instincts
Ultimately, trust your instincts. If something doesn’t feel right or if you have lingering doubts, it’s okay to step back and reassess. Buying a home is a significant decision, and it’s essential to feel confident and at peace with your choice.
Are you looking to buy your first home with confidence? Give us a call today! Our experienced real estate agents will ensure you buy without regrets!
We haven’t talked enough about ISM Manufacturing this week because Thursday’s PCE data was the first report in more than 2 weeks that mattered. Thus, the focus was on what came first as opposed to what has a track record of moving markets. It didn’t help that ISM Manufacturing was separated from its usual top tier companions (all scheduled for next week). Nonetheless, we now have a fresh reminder not to sleep on ISM Manufacturing! The 47.8 vs 49.5 result has been enough for a decent rally to the best levels in more than 2 weeks.
Why the question mark? This is only one day spent beyond the walls of our recent holding area. It’s not over either. The range breakout not only needs technical confirmation, but also fundamental confirmation from weaker econ data next week. If ISM services were to tell a different story, markets would likely pay much more attention to that.
On that note, how correlated are ISM services and manufacturing? The question came up on MBS Live this morning and it led to the following charts. In the bigger picture, the two are well correlated because both speak to general economic momentum.
In the shorter term, the two are surprisingly divergent, however, thus suggesting that next week’s ISM Services data is anyone’s guess.
After I wrote a simple primer on Roth conversions a couple weeks ago, several readers reached out asking for more details. A few specific snippets of those questions include:
I see many articles like this about lowering your tax bracket when doing Roth conversions. But, what about the amount of money that can be made by not doing Roth conversions and letting the taxable [sic: qualified, or not taxable] money grow in an account like an IRA or 401K? Is that math too hard to explain?
Sure your RMDs will be higher and you will be taxed more, but how much more money will you make by letting that tax deferred money grow? You could assume a rate of return at 6% for the illustration.
Kelly M., Question 1
A wise man once said “never pay a tax before you have to.” Back around 2015 I had the owner of an income tax service try to convince me to convert all my traditional IRA money to Roth. He said tax rates were going to go up and he was converting all of his own personal traditional IRAs. Fast forward to 2017 and Congress actually ended up lowering tax rates. I wonder what he thought about his conversions after that.
Anonymous, Question 2
Even with my spouse still working, I don’t think we’ll hit the IRMAA limits while I do Roth conversions before I take Medicare. But, could Roth conversions now help me avoid the IRMAA thresholds when I’m taking RMDs in the future? Or, is it worth doing Roth conversions to avoid the IRMAA thresholds? I’d be interested in an article like that.
Anonymous, Question 3
To summarize those three questions:
Does the math of Roth conversions really work?
But since we don’t know future tax rates, how can we confidently convert assets today?
What about IRMAA (the income-related monthly adjustment amount), which is an additional Medicare surcharge on high-earners?
Let’s address these questions one at a time.
Does the Math of Roth Conversions Really Work?
Roth conversions involve many moving pieces, as you’ll see in this simple Roth conversion spreadsheet.
Reminder: you can make a copy of the spreadsheet via File >> Make a Copy
There are terrific financial planning software packages that take care of this math. I wanted to present 95% of the good stuff in a free format that you all can look at. Hence, Google Sheets.
Nuanced Tax Interactions
Especially important is the interaction between normal income (via Traditional account withdrawals), capital gains, and Social Security. These taxes interplay in nuanced ways. A simple example:
Let’s say a Single retiree’s annual income is:
$5000 in interest income
$5000 in long-term capital gains
$30,000 in Social Security benefits.
If you plug that into a 1040 tax return, you’ll find that:
None of that Social Security income is taxable.
All of the interest and capital gains are enveloped by the Standard deduction
Resulting in zero taxable income and a $0.00 Federal tax bill.
But if we copied Scenario A and added in $30,000 in Traditional IRA distributions, what happens? I think we all expect that the $30,000 distribution itself must have a taxable component, but you might not know that:
The IRA distribution affects Social Security taxability. Now, $22,350 of the Social Security income becomes taxable. That’s right. Simply by distributing IRA assets, you’ve now increased how much Social Security you pay taxes on.
The Standard deduction still helps, but there’s now a remainder of $48,500 in Federal taxable income.
Resulting in a $5584 Federal tax bill.
It’s not the end of the world. Taxes happen. They pay for our public shared interests.
But part of tax planning is understanding ahead of time what your future tax bills will look like. It’s important to understand how taxes interact. And this is just a simple example!
Measuring Roth Conversion Benefits
Going back to this spreadsheet, you’ll three tabs full of retirement withdrawal math. The Assumptions tab contains important information on our hypothetical retiree’s starting point (e.g. $2.9M in investable assets), their annual spending ($100K), their future assumed growth (5% per year, after adjusting for inflation), and other important numbers.
Note – this math takes place in “the convenient world” where inflation is removed from the math.
Then three tabs are presented with different Roth conversion scenarios, described below:
“Baseline Calculations“
This tab shows a retiree not focused on any conversions
They want to leave to their children both Roth assets (if possible) and taxable assets (on a stepped-up cost basis).
Therefore, they attempt to fund as much of their retirement using Traditional assets as possible
“No Trad Withdrawals”
This tab shows a “worst case” scenario, to help bookend the analysis. This retiree is not pulling any funds from their Traditional accounts (unless necessary). Thus, we’d expect them to have large RMDs and large RMD-related tax bills.
“Reasonable Conversions”
This tab shows a “reasonable” Roth conversion timeline, electing to convert $1.7 million throughout their retirement, while funding their lifestyle using a mix of Traditional, Roth, and taxable assets along the way.
By no means is this “optimized.” But it’s reasonable, and better than the first two scenarios, as we’ll see below.
Pros, Cons, and Results
The three scenarios end up similar in multiple ways.
Our retiree never has an issue funding their annual lifestyle. This is of utmost importance.
Our retiree reaches age 90 (“death”) with roughly $5M in each scenario.
But there are important differences (as we’d suspect).
The Baseline scenario ends with $5.00M. Of that, 27% is Traditional, 35% is Roth, and 34% is Taxable. They’ve paid an effective Federal tax rate of 20.7% throughout retirement.
The No Traditional Withdrawal scenario ends with $5.20M. Of that, 63% is Tradtional, 0% is Roth, 37% is Taxable. They’ve paid an effective Federal tax rate of 18.8% throughout retirement.
The Reasonable Conversions scenario ends with $5.17M. 18% is Traditional, 68% is Roth, and 14% is Taxable. They’ve paid an effective Federal tax rate of 13.9% throughout retirement.
The Same, But Different
These three scenarios share many similarities. All three result in successful retirements. But there are important differences.
Our Roth converter paid far fewer taxes and, ultimately, left a majority of their tax dollars to their heirs via Roth vehicles, and thus tax-free.
The No Trad Withdrawal retiree paid 28% effective tax rates in their final years (only going further up in the future) and left 63% of their assets in Traditional accounts with a large asterisk on them.***
***TAXES DUE IN THE FUTURE*** …unless you’re leaving the Traditional IRA assets to, for example, a non-profit charity. But if you’re leaving the Traditional IRA to your kids, they’ll owe taxes when they withdraw the funds.
Long story short: Roth conversions work to your benefit when executed intelligently.
Should You Worry About Leaving Behind Traditional Assets?!
I don’t want to freak you out. Your heirs will appreciate you leaving behind a 401(k) or Traditional IRA for them.
But it’s worth understanding that they’ll owe taxes on that money (usually). Let’s dive into an example with simple math: a $1 million Traditional IRA left to one person (e.g. your child).
That person will most likely set up an Inherited Traditional IRAand (via new-ish rules in the SECURE Act) will have to empty that account by the end of the 10th year after your death. The withdrawals can be raised and lowered during those 10 years. Much like with Roth conversions, it makes sense to take larger withdrawals during otherwise low-income years and vice versa.
But if the beneficiary is in the middle of their career, a series of 10 equal withdrawals makes sense. Some rough math suggests ~$135,000 per year is a reasonable withdrawal amount (based on account growth over the 10 years).
That withdrawal is taxed as income for the beneficiary. If they’re already earning $100,000 per year of normal income, then taxes will consume ~$41,000 of their annual $135,000 withdrawal. State taxes might take another bite.
Again – I don’t want anyone to cry over the prospect of inheriting $94,000 annually for 10 years. Where can I sign up?! But it’s also worth understanding that 30% of this inheritance is going to Federal taxes.
“Never Pay a Tax Before You Have To”
What about Question #2 from the beginning of the article? A reader wrote in and suggested one should “never pay a tax before you have to.”
While pithy, it’s false.
If you can reasonably front-load low tax rates to prevent later high tax rates, the math supports you. What we’ve covered so far today is clear evidence of that.
Now, in the reader’s defense: I’d rather delay taxes if thedollar amounts are exactly the same. That’s one argument behind the tax-loss harvesting craze: I’d rather pay $100 in taxes in the future than $100 in taxes today.
But Roth conversions work differently. Done well, Roth conversions allow you to pay a 22% tax on $50,000 today to prevent a 37% tax on $100,000 in the future. It’s apples-and-oranges compared to the tax-loss example.
And perhaps the bigger lesson: there are few universal rules in personal finance. The pithy rule that works in one scenario (“never pay a tax before you have to”) might fail miserably in another scenario. Let the math guide you.
What About IRMAA?
Irma used to only be a name you’d give to the great-grandmother character in your 11th-grade B-minus fiction story.
No longer! Today, IRMAA has been given new life (which, I bet, was covered by Medicare!)
IRMAA (Income-Related Monthly Adjustment Amount) is a Medicare premium surcharge imposed on higher-income beneficiaries in addition to their standard Medicare Part B and Part D premiums. The amount of IRMAA is determined based on an individual’s modified adjusted gross income (MAGI) and can result in higher healthcare costs for those with higher incomes.
In plain English: high-earners pay more for Medicare.
Question #3 today asked if Roth conversions can be used to avoid IRMAA premiums. The answer is: yes.
But first, how painful are these IRMAA surcharges in the first place?!
Important note: you’ll see below that the 2023 IRMAA brackets are based on 2021 modified adjusted gross income (MAGI). That same 2-year delay holds for future years. Your 2024 Roth conversions (or lack thereof) will be important in determining IRMAA in 2026
If a married couple’s MAGI in 2021 was $225,000, they’d end up paying $231 per month (or, more accurately, $462 per month for the couple) as opposed to $330 for the couple if they earned less than $194,000. That’s a difference of $132 per month or $1584 for the year.
I’m of two minds here. Because:
Yes, I believe in frugality. A penny saved is a penny earned. Why pay $1584 extra if you don’t have to?
But if you’re earning $200,000in retirement, do you also need to stress over a $1500 annual line item?
Personally, I’ll be stoked if my retirement MAGI is $200,000. It’ll be a sign that my financial life turned out unbelievably well. I won’t mind the IRMAA.
The people most likely to suffer IRMAA are also best positioned to deal with it.
Will IRMAA Get You?
The 2-year delay in IRMAA math means you might get IRMAA’d early on in retirement.
Imagine retiring at the end of 2023. The peak of your career! You and your spouse earned a combined $300,000 and now you’re settling down to mind your knitting. Like all U.S. citizens, you sign up for Medicare just before you turn 65.
Come 2025, Uncle Sam and Aunt IRMAA are going to look back at your 2023 income and surcharge you.
But the good news, most likely, is that your 2024 income is quite low in comparison and IRMAA will drop off in 2026.
Can Roth Conversions Help?
Remember: RMDs are forced and count as income, and that has the potential of “forcing” IRMAA on retirees as they age.
So to answer our terrific reader question: yes, Roth conversions can help here. You can use Roth conversions to shift the realization of income from high years to low years, preventing or mitigating IRMAA in the process.
But once more, make sure the juice is worth the squeeze.
If a 75-year-old has a $200,000 RMD that kills them on IRMAA, ask yourself: where does a $200,000 RMD come from? Answer: it’s coming from an IRA of over $5 million. Should someone with $5 million be losing sleep over IRMAA? I don’t think so.
That’s A Lot of Numbers…
A long and math-heavy article. I hope this helped you out! We covered:
Roth conversions can be objectively helpful, decreasing taxes in retirement and shifting large portions of portfolios from Traditional accounts (with potential taxes for heirs) into Roth accounts (no taxes for heirs)
Taxes in retirement are nuanced and interconnected. In today’s example, realizing extra income (via IRA distributions) also triggered extra Social Security taxes.
It’s not bad to leave behind Traditional assets to heirs. They’re getting a wonderful gift from you. But there will be taxes, which should be planned for.
There are many scenarios where it makes sense to pay taxes before you “have” to.
IRMAA is a negative reality for many retirees, but the people most likely to suffer IRMAA are also best positioned to deal with it.
Roth conversions can be used to mitigate IRMAA over the long run.
As always, thanks for reading!
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-Jesse
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Editor in Chief Sarah Wheeler sat down with Dan Stewart, founder and CEO of Happy Grasshopper, to talk about the company’s tech strategy in creating content that resonates with consumers. Storytelling is key to the company’s success and Stewart’s own story explains how he stays cool in any market cycle. Turns out being stranded at sea in shark-infested waters puts everything else in perspective.
Sarah Wheeler: What differentiates your technology?
Dan Stewart: When you think of the technical landscape today, specifically for CRM, at the very core, everything does almost exactly the same thing: It segments contacts and it sends messaging. That’s not a significant technical challenge. The challenge is creating and delivering messaging that produces the desired result for the person sending the message. And that’s what we focus on.
Today we’re nurturing about 37 million contacts on behalf of our members. And we’ve built a reporting engine we affectionately call queen bee reporting. We leverage AI to crunch the numbers, because the datasets get so large so quickly. We leverage AI to make sure that our members are sending content that’s most likely to be well-received by the target audience and to produce the conversations that they need to have.
SW: How do you know what the “right” content is?
DS: Looking in the data, it really highlights some key things:
The No. 1 thing that determines the effectiveness of a message is the relationship between the sender and the recipient.
We all have people in our lives, it doesn’t matter what the subject line is, we’re going to pay attention to their message because it’s from them. Right? On the other hand, if your phone rings and it says potential spam, there’s almost no chance you’re going to answer it. So relevancy of that relationship is very important.
The second most important thing is the relevancy to the time that the message is sent. So the cycle of what’s happening in the world becomes extremely important for creating effective messaging. The way to start that conversation is to leverage what I call the formula for engagement — basically we have to raise their curiosity and leave it unresolved.
SW: What are some use cases of the formula for engagement?
DS: So first, as a brand, we create content for agents that’s designed to go to people they know, typically past clients and sphere. And this content is not typically about real estate. It’s about something interesting that’s happening today, that we can use as conversation starter.
The second type of content we send is lead conversion and nurturing content. The timing, the duration, the frequency — all of that gets influenced by the source of the lead and the time of day that the lead is captured.
The third category is the attraction and recruitment of more people to a brand. Whether it’s branch managers to a mortgage firm, LOs to the branch manager, real estate referral partners to the LOs — there needs to be a very clear understanding that the content strategy must be very appropriate to the goal.
SW: What really differentiates your tech?
DS: Happy Grasshopper is a true managed service so our tech is very important, and yet our core belief is that tech alone isn’t enough. Agents have a lot of technology today. But that doesn’t mean they’re using it as well as they could be.
I have three core beliefs that really underpin everything I do at Happy Grasshopper. The first is that whatever we want to achieve in business, it’s most easily achieved through relationship. The second is that relationships only really live in one place and that’s conversation. And the third is that conversations lead to closings. I’ve yet to meet an agent or an LO who will not earn more commission if they have more conversations.
SW:What past experience influences the way you think about tech today?
DS: Prior to Happy Grasshopper, I built and exited a CRM company. We built white label software for franchisors — we gave the brand exactly what they wanted. And then of course, they’d roll it out to their franchisees who would log in once and then almost never come back. Which was what kept me up at night at the time.
Post-exit, I had this realization that we did it in the wrong order: we really should have built from the bottom up. So very intentionally when I started Happy Grasshopper, we focused only on serving the end user. And then we added teams, and then we added brokerages. And now we’re at the true enterprise brand level. And we get lots of usage and engagement in our application, because we’ve built it in such a way that the end user actually gets value from it every time they use it.
SW: How is AI helping you with the actual content you create? Or is that created by humans?
DS: We do not use generative AI to create content for our members. We have a staff of real human writers, college-educated, with 401(k), medical, dental benefits — real, actual people who take the time to interview our members. And we ask our members to review the content that we wrote for them and confirm whether or not it sounds like them.
And then we leverage the AI to really scrub the data — we’re sending messaging to 37 million contacts, we really need help understanding what the results of all that data means. It’s not like we have just one reporting page where you could see what your open rate was on a particular email and make a good decision. We’ve used the API to parse the messaging for tone, for length. And we use that data in conjunction with the data reporting, to help our human writers understand why particular messages are more successful than other messages. And I’m really proud of the results we’ve been able to create for our members.
We have taken the time to really build this, and we’re at the precipice of massive scale. We’re about to grow tremendously. Because it’s, it’s time for the brands to really understand how we can help all of their agents find more transactions. And in a market that’s having fewer deals closed than in years past, relationships are what’s going to lead people through this.
What do we do in our lives in times of crisis? We turn to people we trust. Whatever’s happening in the market, it can always be used to start a valuable conversation and help the right-minded real estate professionals show up as people who provide massive value rather than just attempt to garner commissions.
SW: What’s the profile of your members?
DS: We have members today in about 40 different verticals. Over 90% of our membership is in real estate and mortgage and we create content for buyers agents, listing agents, team leaders, broker owners, regional management, national management. We’ve also written content for brands.
SW: How do you think about cybersecurity?
DS: At Happy Grasshopper we don’t retain mortgage information, financial information — no one uploads that into our system, because it’s not necessary for us to have that information on file. So just from a business case perspective, if we were ever breached, the sorts of things that would be taken, we would just be limited the contact information. And course, that would be a horrible thing. But I know that being diligent and then having a business use case where we’re not really hanging on to any sort of super-sensitive information is an advantage for us.
SW: What keeps you up at night?
DS: Almost nothing. I sleep incredibly well. I’ve lived a very weird life. I moved a lot. As a kid, I had 14 schools before I graduated. One of my formative experiences was when my father’s boss inherited a sailboat. And my dad volunteered to sail it from the Florida Keys up to Sarasota. And the boat sank — we spent the better part of two days thinking that the sharks were going to come in and eat us. I can tell you: there’s nothing that I’ve ever faced in business that scared me as much as that.
SW: What? I think we need more details!
DS: My dad was a West Point grad, a civil engineer. He was an experienced power boater — he was not an experienced sailor. And that didn’t bother him. He thought, ‘You know what, this would be a great family vacation, let’s go.’ And so we left Islamorada, sailing due east. And he sailed us right into the largest barrier reef in North America. It knocked a hole in the side of the boat and the boat went down really quickly. It leaned over on its side and we had this little hump of fiberglass just above the water that we clung to the rest of the day, waving our arms. And then the sun went down and the tide came up — that night was terrifying. [The family was in the water another day] As the sun came up on the second day, there was a Coast Guard cutter, and they came and got us off the reef.
So, how privileged are we to be alive at this particular moment? The poorest of us have access to things the richest people up to 100 years ago couldn’t even imagine. It’s an amazing time to be alive. And I feel really privileged to be part of that fuel that’s connecting people in the digital age.
Inside: Embrace financial growth with these top money mantras. Cultivate a wealth mindset, affirm success, and transform your finances for ultimate freedom.
Money mantras have been a game-changer for me, a morning ritual as integral to my day as a cup of steaming tea.
Rather than idly scrolling through my phone or mentally compiling to-do lists, I begin each day by affirming my financial goals and inviting prosperity into my life. This practice isn’t just some esoteric tradition—it’s a targeted strategy that’s led to a tangible increase in my bank balance.
Like the steady rise of the sun, these money mantras illuminate my path toward financial well-being. Each repetition is a step towards cementing a mindset of abundance.
Remember, wealth isn’t just about cash and coins; it’s equally about cultivating the right mindset. Let me tell you, it’s not just my bank account that’s noticed the uptick—the evidence is in the confidence with which I now manage my finances.
Plus with a growth mindset, you will improve your happiness.
Now, it is time to find money mantras that resonate with you!
Top 50 Money Mantras for Your Daily Routine
1. With the power of attraction, I will bring wealth and money into my life.
2. My income is constantly increasing.
3. I gratefully accept all the wealth and abundance the world has to offer me.
4. Money allows me to live the life I want and achieve my goals easily.
5. I am grateful for what I have been blessed with.
6. Money is just a form of energy that flows to me effortlessly and abundantly.
7. Money is a tool that lets me construct my life how I see fit.
8. Large sums of money come to me easily.
9. Every action I take takes me closer to financial success.
10. I am capable of achieving all of my financial goals.
11. Money flows to me effortlessly and abundantly.
12. I am a magnet for financial success and prosperity.
13. My income exceeds my expenses every month.
14. I am worthy of a prosperous life.
15. Financial abundance is my natural state.
16. Wealth constantly flows into my life from multiple sources.
17. Every dollar I spend circulates and returns to me multiplied.
18. I handle my finances with clarity and confidence.
19. My positive energy attracts lucrative opportunities.
20. I am grateful for the wealth and abundance in my life.
21. I make wise and profitable investments.
22. My bank account grows larger every day.
23. The universe is generous with prosperity and so am I.
24. I am financially free and independent.
25. I am aligning with the energy of wealth and abundance.
26. Money comes to me now and always.
27. Making money is easy and enjoyable for me.
28. My wealth is a positive force for good in the world.
29. Financial well-being is mine to claim and enjoy.
30. I am open to receiving all the riches life offers.
31. I am constantly expanding my streams of income.
32. My actions create constant wealth, prosperity, and abundance.
33. Every financial action I take increases my net worth.
34. I am deserving of financial success and security.
35. Money is a tool that enhances my freedom and choices.
36. My financial goals are achievable and realistic.
37. I am in control of my financial destiny.
38. Prosperity flows to and through me.
39. I release all resistance to attracting money.
40. I trust my ability to generate wealth.
41. I attract financial mentors who guide me to abundance.
42. I use money to improve my life and the lives of others.
43. I am empowered to create the prosperity I desire.
44. I am the architect of my financial future.
45. I am worthy of financial abundance and security.
46. Gratitude and generosity are at the heart of my financial affairs.
47. I am surrounded by abundance.
48. My prosperity is unlimited, and my potential is endless.
49. Every action brings me closer to financial freedom.
50. I am an excellent steward of my finances.
How to Integrate Your Money Mantra Chant Into Your Routine
Okay, now you must solidify your money mantra in your life.
Choosing to internalize and act upon these mantras requires discipline, but it is essential for their success.
Each small step taken is progress—whether it’s saving a small portion of your earnings, investing wisely, or learning new skills to increase your earning potential.
Here are some actionable ideas to integrate your money statements into your day-to-day:
Write down your chosen money mantras daily in a journal to solidify their presence in your thoughts.
Customize your phone’s wallpaper.
Use post-it notes on your mirror to keep your money mantras in constant sight.
Place your money mantras on the wall when you roll out of bed.
Keep your money mantra written on a slip of paper inside your wallet.
Put your money mantras all over as your vision board quotes.
Create real-life scenarios where you can live out your money mantras, like calmly budgeting over coffee or tackling financial to-do’s with confidence.
Post your money statement on your social media accounts including X (formerly known as Twitter).
Regularly reflect on your current beliefs, decide what needs to change, and persistently work to align your actions with your new mantra.
Recite your mantras aloud every day, be it during your morning routine or as part of your wellness practices, to constantly reaffirm your financial goals.
You want to be a money magnet as you are manifesting your goals.
The act of doing reinforces belief, and belief paired with action is an unbeatable combination. So select your mantras, make them visible, speak them aloud, and, most importantly, take consistent action toward your financial goals.
How Mantras Can Shift Your Money Mindset
Money mantras have the potential to significantly transform your financial mindset by embedding positivity and empowering beliefs about your interactions with money.
By consistently repeating these money affirmations, you reprogram your subconscious to prioritize healthy financial behaviors and decision-making.
With a mantra such as “I handle money easily and well,” you start creating instances to demonstrate this new belief in action, which serve as evidence to support the mantra.
Whether it’s as simple as calmly reviewing your budget or taking steps to reduce expenses, these actions reinforce the powerful narrative of financial competence.
As you confront and override old, limiting money beliefs, your new mantra gradually becomes second nature, profoundly influencing your approach to money management and fostering a culture of financial literacy within your family.
Integrating Mantras Into Your Financial Strategy
By repeating affirmations such as “I am financially savvy” during routine activities, you rewire your brain to adopt a more positive money mindset and proactive stance toward money management. Instead of focusing on “I am broke.”
For example, when reviewing your bank statements or setting up a savings account, declaring “I am a wealth builder” can transform the experience from mundane to motivational.
Furthermore, concrete actions back up these mantras; intentionally selecting cost-effective options at the grocery store becomes a manifestation of the mantra “I make smart money choices.”
Over time, these repeated positive affirmations, paired with deliberate financial actions, will reinforce a healthier money mindset and can lead to more informed and empowering financial decisions.
What is the best mantra for money?
The absolute best money mantra is one that resonates deeply with your personal financial aspirations and current challenges.
It should be a concise, yet powerful declaration that addresses your core limiting beliefs and transforms them into positive affirmations.
For example, if you’ve historically felt powerless over financial matters, a mantra like “I am in control of my finances and make wise decisions with ease” can be both empowering and personally significant. This is a small step to becoming financially sound.
FAQ About Money Mantras
In my experience, money mantras have proven to be an effective tool in shifting financial mindsets and attracting prosperity. Particularly to increase my liquid net worth.
By declaring intentions like “My income is constantly increasing,” I’ve witnessed the law of attraction work in my favor, with unexpected income sources materializing following my persistent use of these mantras. This practice has not only improved my financial outlook but also reinforced my belief in the power of positive affirmation to create real-world results.
For effective results, financial affirmations should be integrated into your daily routine, ideally twice a day.
Repeat your positive financial statements in the morning can set a constructive tone for your day
An evening repetition aids in reinforcing your goals before sleep.
Consistency is key, and it is often recommended to maintain this practice for at least 21 consecutive days to notice a significant impact on your financial mindset. This habitual action can help to create a powerful shift towards a more positive and proactive approach to your financial goals.
What are your money mantras?
In conclusion, adopting a set of money mantras is an empowering way to reshape your financial narrative and manifest a more prosperous future if you prefer to be financially independent.
These affirmations serve not only as daily reminders of your financial aspirations but also act as a mental reset to overcome deep-seated negative beliefs about money. It is important to take intentional action to reinforce these mantras, thereby transforming them from words on a page to lived truths.
Remember, your mantras are not quick fixes but foundational statements that require commitment and effort to bring about real change.
By steadfastly walking the path of positive financial practices, you will eventually embody the essence of your affirmations—a money-savvy individual who knows that abundance is within reach.
Your financial future is not solely determined by external circumstances; it is shaped by the mindset you cultivate and the actions you take every single day.
Now, make sure you have solid financial goals to go with your mantras.
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First date etiquette: How much should you spend? Who should pay? And can you talk about money?
By Emily Mee, Money team
Money isn’t the sexiest topic on a first date.
No one would say the best part was when their date leaned over, looked into their eyes and said: “Shall we split the bill?”
So if you want to save awkward vibe killer conversations, it might be worth thinking about money before you even set out for your date.
Can you talk about money?
TV presenter and dating coach Anna Williamson told the Money blog: “Typically as Brits we’re brought up to not talk about money – but I think there is a real sweet spot around being open and transparent in a respectful way around finances.”
If money is tight, she suggests the best way to make sure you’re not caught out is to take hold of arrangements, casually suggesting something low cost such as coffee, a museum, or a walk.
Just don’t get into this situation
Sexual health and relationships educator Lalala Letmeexplain agrees, and says low-cost first-dates avoid situations like this…
“I went for a first date with someone I’d never seen or met before and we booked in for a three-course meal. Right from the starter I knew that I didn’t fancy him and it was such an awful situation to be in because I was like, ‘Shit, we’ve got to get through the main and dessert’.”
Who should pay – the do’s and don’ts
As much as society has moved on, the old-fashioned view that, on heterosexual dates, the man should pay lingers on. A 2019 survey conducted by online dating site Elite Singles found 63% of men believed they should be the ones to pay on the first date – and 46% of women surveyed agreed.
If you’re not expecting a second date, Lalala says it’s often considered fair to split the bill – but if you’ve “got a bit of a vibe going on” and want a second date, you might want to suggest paying.
She adds that although there is no “hard and fast rule”, she would take a man’s offer to pay as a hint he is interested.
“If he’d paid for me the first date, I’d be more than happy to pay the next time,” she adds.
But while it can be flattering for someone to splash out on you, those who pay shouldn’t create a situation where “the other person feels that they are indebted or that they owe them something”.
“If someone spent £200 on the first date and you didn’t ask them to and it’s completely their choice, are you then put a position where you feel like you have to sleep with this guy or see him again because he’s gone all out?” she says.
“Be honest – don’t let somebody splash out on you if you know you don’t want to see them again.”
There is no objective answer here
Lalala says the question of how much you should spend on a first date depends on who you’re talking to.
“I think you have some people who feel like, ‘if you’re going to take me out on a date, I want to see you’re invested in that – that you’re buying me dinner or whatever’ – and then there are other people who are like, ‘You really don’t need to spend a penny and I’m absolutely happy to just go for a walk’.”
According to a Sky News poll for the Money blog, the majority of people (40%) believe it’s reasonable to spend roughly £20-50 between two people on a first date.
Another 39% say it’s reasonable for people to spend £50 to £100 (the total cost for both parties)…
When you buy through links in this article, we may earn an affiliate commission.
Most cats are perfect companions for apartment living. They sleep an average of 15 hours a day and can easily be left alone with food, water and a litter box. However, your indoor kitty does need some form of activity each day to keep them entertained. If left alone for too many hours, your cat may misbehave by scratching furniture, chewing on plants or engaging in some other unwanted behavior.
It’s a good idea to buy some cat toys to keep your feline friend entertained and well adjusted. You don’t have to spend a lot of money to set up a pet-friendly apartment.
Cat behavior experts suggest that a playful cat is confident, affectionate and alert. Besides providing an outlet for physical energy, playing with your cat for just 20 minutes a day can reduce stress and help you bond with one another. In general, movement stimulates cats and they like to chase things. Here’s a selection of some of the best cat toys for your apartment.
Cat tree with toy
Source: Chewy
Every cat needs a scratching post to stretch and scratch on daily. This sturdy cat tree gives your cat a cozy spot to call its own. It comes fully assembled and has quality materials like solid wood posts, thick household-grade carpet and sisal rope. It includes a hanging ball to play with. Place it next to a window, and your cat will love to nap here while soaking up the sun.
Catnip cat toys
Source: Chewy
Catnip is a perennial herb that stimulates special receptors in cats giving them a sense of euphoria or overwhelming happiness. Inexpensive catnip cat toys provide hours of playtime. These lightweight stuffed toys are chemical and pesticide-free and the perfect unobtrusive cat toy for your apartment. Take these catnip toys out anytime your pet needs a boost of energy, and you’ll quickly find her chewing, batting and running around.
Tower tracks cat toy
Source: Chewy
This interactive toy encourages your kitty to play with spinning balls on a track. It’s self-contained so she’ll never lose the balls. It’s great for single or multiple-cats. You’ll love watching your cat bat at the balls as they spin round and round. The tower tracks cat toy has non-skid pads so it won’t move as your kitty plays.
Laser exerciser cat toy
Source: Chewy
This is an inexpensive and fun toy for both you and your cat. Light and movement intrigue cats. Turn the lights out and point the laser at the floor or wall, and your cat is sure to chase the image and attempt to capture it. The LED light is safe for use indoors or outdoors. Playing together also helps strengthen the bond between you and your cat.
Ambush interactive electronic cat toy
Source: Chewy
This compact interactive electronic toy brings out the hunting instinct in your cat and offers the perfect way to stimulate her in a small space. A colorful feather randomly pops out from one of the six holes, using LED color lighting and motion. Your cat will pounce and paw at the feather in try to catch it. The anti-skid feet keeps the toy from moving throughout the game. When your cat wins the battle, the feather is easy to remove and replace.
Bird teaser with feathers
Source: Chewy
Wave the feather teaser around and the colorful feathers and sudden movement will entice your bored kitty to jump and play. By stimulating her natural curiosity, it’s the perfect way to give your cat the daily exercise she needs. This colorful bird teaser has catnip to make playtime even more enticing, stimulating your cat’s natural hunting instincts.
Play mouse cat toy
Source: Chewy
This 10-pack of fuzzy play mice provides hours of feline fun. Drive your cat wild with the sights, sounds and feels they love. Toss them to get your kitty to chase them around your apartment.
They’re great for a single kitty or multi-cat households, too. They’re inexpensive and the perfect cat toy to have on hand whenever your cat seems to be bored.
Jingle bells cat holiday collar with bells
Source: Chewy
Get in the holiday spirit with this festive holiday collar. Your kitty will be adorable thanks to the jingly bells and classic holiday colors. The collar can be worn on top of your everyday collar for short durations and is perfect for holiday pictures.
Walking Santa cat costume
Source: Chewy
Have some holiday fun with your kitty and dress her up in a Santa suit. The two-piece design is super cute and includes a body piece and separate headpiece with elastic ear and chinstraps, along with a hook-and-loop fastener at the neck. Adjust it for a comfortable fit and let your furry friend spread cheer during the holiday season.
Enjoy play time with your cat
No matter what type of activities you decide to do with your kitty, they’ll get bored with the same toys after a while. Try to provide your fur baby with the best cat toys and rotate them every few days. Old toys can become new again if you put them away for a little while!
Playing with your cat is fun and will help you transform your home into the purr-fect home.
Rachel Cooper is a freelance writer and author with more than a decade of online journalism and content creation experience. She has written for About.com, Washingtonian, Federal City Council, Montgomery Parks, Destination Maryland, Conde Nast Traveler, Payscale, Valpak, Grandparents.com, Washington Parent and more. Her books include Quiet Water: Mid-Atlantic, AMC’s Canoe and Kayak Guide to the Best Ponds, Lakes and Easy Rivers; 60 Hikes Within 60 Miles: Washington, D.C. and Images of Rail: Union Station in Washington, D.C.
Cats are simple creatures. They only require that you love them unconditionally (when they are ready for love), always give in to their (sometimes frivolous) demands and have a full bowl of kibble ready at any hour of the day.
In exchange, you’ll get a feline friend who is mostly indifferent to everything around them, has energy bursts and sleeps a lot. The last point is important, as cats can snooze for up to 16 hours daily. And naturally, the king of your urban jungle needs a comfortable bed, and the more elegant it is, the better.
In this article: Furhaven Mid-Century Modern Elevated Pet Bed, Gavenia Fluffy Self-Warming Cat Bed and Pickle & Polly A-Frame Tent for Cats.
Only the best for your fluffy friends
Pet owners naturally want to provide their furry friends with some comfortable furniture, but too often cat scratchers and loungers look ghastly. Most of the designs don’t seem to take into consideration that only a few people’s aesthetic is cardboard chic or sisal serene.
But cats don’t need to scratch and sleep in the same location. Having a scratcher is fine when it’s in a busy, high-traffic area, but for other quieter areas, felines feel most at home in a comfortable bed.
However, not just any bed will do. Apart from getting cat furniture that fits in with your decor, there are a few things to consider. If your cat prefers a space off the ground, consider an elevated bed that gives them a vantage point.
Also, take your cat’s weight into consideration. The thickness of a mattress might seem sufficient, but heavier cats will naturally need a bit more support and the frame should be able to handle it. Related to the mattress, consider the material that it’s made from, as some are better suited for colder months while others are more lightweight for summer.
Best cat beds that might as well be home decor
Furhaven Mid-Century Modern Elevated Pet Bed
There is no better cat bed than this piece inspired by mid-century modern design. It looks good in any room, and at first glance, it doesn’t even seem like a bed for pets. It is 32 inches long and 22 inches wide and stands 9.8 inches tall. The wooden bed frame comes with pre-drilled partitions to make assembly easier, and it fits 20-inch by 30-inch mattresses.
Sold by Amazon
Gavenia Fluffy Self-Warming Cat Bed
This ultra-fluffy doughnut-shaped cat bed fits in with any clean decor or carpeted room. It has a water- and dirt-resistant base that won’t slide around on the floor. There are three sizes, and the smallest bed measures 20 inches in diameter and is 7.5 inches thick. The filling is polypropylene cotton, which is warm and cozy.
Sold by Amazon
Pickle & Polly A-Frame Tent for Cats
This adorable cat bed is perfect for a home with a rustic decor scheme or a vintage aesthetic. The simple frame is made from sturdy wood and held together at the top with a dowl rod. The fabric tent neatly attaches to the frame through elegant bows and provides a comfortable space for any cat to catch some shut-eye.
Sold by Amazon
PawHut Weaved Banana Leaf Elevated Cat Bed
This cat bed can easily be mistaken for a plant holder or an elaborate storage space. The weaved banana leaf cat bed gives off a tropical or rustic vibe, yet also looks elegant. The entrance into the ball-shaped area where cats sleep is 15 inches in diameter, and it stands on a 6.7 inch base. The fluffy cushion is 1 inch thick and 19.7 inches in diameter.
Sold by Amazon
The Refined Feline Faux Rattan Elevated Ball Cat Bed
Similar to the banana leaf bed, this elevated ball cat bed stand 28 inches tall on a 17 inch base and the ball is 11 inches off the ground. The opening on the ball is 17 inches in diameter, which is large enough for most cats. It is made from faux rattan, which is durable and elegant.
Sold by Amazon
Petmate Aspen Pet Sofa Bed with Pillow
This adorable cat couch is perfect for making your feline feel right at home while fitting in with the room’s decor. It is 20 inches long and 9 inches wide, with a plush ridge around the back edge. The sleeping area is covered in a synthetic lambswool and it even comes with a little pillow for comfort.
Sold by Amazon
Wall-Mounted Hammock for Cats
If your cat prefers to gaze upon the world from above, then this wall-mounted hammock is the perfect option. The cream and brown color scheme complements any decor choice and provides a functional sleeping spot. The sturdy backing has a scratch pad and the hammock can easily support cats up to 22 pounds.
Sold by Amazon
Free-Standing Cat Hammock
This free-standing hammock resembles an ottoman, which is great if you want it to seem like it’s part of the furniture. The simplistic metal frame is 19 inches wide and the hammock is 9.5 inches off the ground. The sleeping area is made from durable fabric is detaches from the frame for machine washing.
Sold by Amazon
Lazy Lush Orthopedic Pet Bed
If humans can have a comfortable couch, then why can’t cats? This bed isn’t elevated off the floor, but it has a 3-inch mattress for comfort. Measuring 30 inches by 20 inches, there is a 3.5-inch shredded foam wall around three sides, which doubles up as a pillow. The mattress comprises a waterproof lining, orthopedic foam and soft fur on top.
Sold by Amazon
Asrug Soft Faux Fur Pet Bed
If a fur rug is part of your decor choices, then this cat bed will be hardly noticeable. Approximately 26 inches by 37 inches, it has a 2.5 inch thick fake fur pile that provides a luxurious space for daytime napping. It has a soft, ivory-colored suede backing to prevent slipping and is machine-washable.
Sold by Amazon
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