What Is a Credit Report and Why Does it Matter? – MintLife Blog
Skip to main content
financial wellness. Your credit report includes your revolving accounts — such as credit cards and home equity lines of credit — as well as non-revolving accounts like school and car loans. Credit reports also note any missed payments, the length of your credit history, and your utilization rate on each account. On the whole, the report acts as a central location for measuring your current credit health in detail.
This vital collection of data gathered by a credit bureau helps calculate your credit score and inform potential lenders, landlords, and even employers about your financial wellness, habits, and routines. Your credit report is also a place to keep yourself on track. View your borrowing habits at a glance, make adjustments to possibly raise your credit score, or even catch fraudulent activity. Overall, understanding your credit report is a crucial step in gaining financial confidence.
What Information Is Included in a Credit Report?
You may still be wondering: what is a credit report exactly and how much data does it include? Credit bureaus collect a range of information, from basic, personal data to detailed borrowing history in order to paint a picture of your credit habits. Identification details clarify who you are, where you’ve lived, and a bit about your life. They will list your full name and any alternately used names, your birthday, current and former addresses, social security numbers, and your phone number.
The meat of the credit report includes your account history including the types of credit accounts, how long they’ve been open, and their credit limits. Each month, your balance will rise or fall on your report based on payments or charges. This in turn affects the utilization rate on each card as well. Each account will also note your payment history, noting any late payments for up to around seven years. Your credit report will also include the number of recent hard inquiries, which usually occur when you apply for a new credit card or loan.
Certain public records and legal details — such as lawsuits — may also be listed on your report. It also lists if you’ve filed for bankruptcy, received a tax lien or had a bill sent to a collection agency. Though specifics vary, the majority of these details are wiped from your report after seven years, so there are often ways to improve your credit standing over time.
How Does Information Get on Your Credit Report?
A credit bureau, also known as a credit reporting agency, gathers this information in one place so you don’t have to. Though there are hundreds throughout the world, the three main U.S. reporting agencies are TransUnion, Equifax, and Experian. They receive information via lending companies, courts, and local government to build your credit record. Every month, an assortment of data transfers from these locations to the credit bureau database.
If you open a new credit card, make a purchase on your store card, or pay down a balance, this data is sent to update your report. The agency organizes the data and displays information on your credit report in a clear layout for you or a potential lender to view. This constantly updating system means that your credit score may fluctuate at times. It also allows you to take immediate action on any troublesome accounts or in the case of identity theft.
Why Is It Important to Get a Credit Report?
Credit reports are an excellent tool for guiding large financial decisions. Say you’re looking to purchase a home in the next five years. Your report allows you to fully assess how to raise your score and which credit accounts most strongly affect your overall financial balance. Your report is also a glimpse into why your credit score has remained low or stagnant. It could be helpful to request a report before applying for a new credit card or transitioning to a new phase in life like graduate school.
Checking your credit report at least once a year, even if you are not planning any large financial changes, is often suggested for several reasons. Credit reports allow you to catch any discrepancies either in how your data was reported or if someone attempted to open an account under your name.
Where can you get a free credit report? Free credit report programs, like Turbo, can give you a glimpse into your score and history. If you’re looking to improve your credit score, these tools may be useful for frequent tracking and do not count against your credit as a hard inquiry.
How Does Your Credit Report Impact You?
Potential lenders and employers may check your credit report for the same reason you check in on yourself. Your credit report may signal that you can be trusted to make timely payments and prioritize your financial health. Employers have been known to check credit reports in order to confirm you’re able to stick to contracts and agreements.
Credit reports are most commonly used to determine approval for loans, credit limits, and interest rates. If you have some troubling details on your account, lenders may protect themselves by offering higher interest or lower credit limits until you’ve proven a strong history of payments. On a higher level, credit reports affect your mortgage interest rate or simply your likelihood of being approved for the mortgage in the first place.
In some cases, your credit report could also affect your insurance rates and other monthly bills. Some utility companies and cell phone companies determine offers and down payments based on your credit score. Overall, the healthier your credit report, the more chances you’ll have to practice good borrowing habits with a range of accounts.
A credit report is a detailed tracking tool of your borrowing and repayment history. The greater you understand your credit report, the more it can act as a tool for financial growth. Feeling confident about borrowing and managing debt comes over time, and your credit report is there to help track your progress along the way.
Previous Post
What Percent of Your Income Should Go Towards Rent?
Next Post
Can Gratitude Fix Your Relationship With Money?
Summer is full of simple pleasures: baseball games, barbecues, beach reads, and that great American classic, the road trip. Whether you are heading to a national park or a local lake, on a wine-tasting getaway, an antiquing jaunt, or just to hang with your college roommate, a road trip can be exciting, easily wrangled, and spontaneous.
But if you’re wondering how to save money on a road trip, a little bit of planning can go a long way to keep costs under control.
Learn how to minimize expenses when you head out on a summer road trip, from deciding which vehicle to use, where to get gas, how to eat on the road, and more. Here, 25 easy ideas for road tripping on the cheap.
1. Choose a Fuel-Efficient Car
If you have a choice of cars to take, you may want to go with one that is large enough to be comfortable but also gives you the best gas mileage. This is true whether you are using your own wheels or renting a car.
You can use FuelEconomy.gov’s Trip Calculator to determine which car will cost you the least in gas. This tool helps estimate fuel consumption and how much it will cost for a particular route using a specific car.
2. Drive at or Below the Speed Limit
This cautionary measure can help you save money in two ways. For one, you’ll be less likely to get pulled over and slapped with an expensive speeding ticket.
For another, observing the speed limit can actually reduce your gas consumption. In fact, according to the U.S. Department of Energy, you can save 18 cents a gallon on highways for every five miles per hour you slow down.
3. Pack Your Car Wisely
You can also cut your gas costs by placing items inside the car or trunk rather than piling them on your roof. By reducing drag, this tactic can increase your fuel economy by as much as 25% on highways according to one benchmark study.
If you’re out of room in the car, using a rear-mounted cargo box or tray instead of a roof rack can improve your fuel economy by up to 9%.
4. Set a Road Trip Budget
When you first start talking about the road trip, you may want to roughly map out where you want to go, how long it’ll take to get there, and if you’ll need hotels or motels. From there, you can calculate the approximate cost of gas (FuelEconomy.gov can help) and tolls (try Tollsmart ), as well as food and fun.
Once you’ve established an overall budget for the trip, you start creating a travel fund.
Ready for a Better Banking Experience?
Open a SoFi Checking and Savings Account and start earning 1% APY on your cash!
5. Bring Your Own Food and Supplies
Packing a cooler with water bottles, drinks, hand-held snacks, and sandwiches before leaving home is a proven frugal traveler trick. You can end up saving a sizable chunk of cash by not having to buy drinks and snacks at rest stops, vending machines, and drive-throughs.
You’ll also have a quick solution the next time someone in the car wants to pull over because they’re hungry.
6. Sign up for an Electronic Toll Account
Depending on which state(s) you are traveling through, you may be able to save a fair amount of money on tolls by getting the region-appropriate quick pass (or transponder) for your car. In New York, for example, drivers with EZ-Pass can save about 30% on tolls.
7. Avoid Tolls Altogether
When your road trip isn’t on any set schedule, you may want to take the scenic route and completely avoid tolls. You can do this by setting your GPS app to “avoid tolls.”
If you’re in a location with pricey bridges and highways, your savings could really add up. You may want to make sure, however, that avoiding tolls doesn’t take you so far out of your way that you’re spending a lot more on gas.
8. Look for Hotels that Offer Free Breakfasts
If you’re comparing lodging options in a similar price and quality range, one way to save on hotel costs and on road trip expenses in general is to choose the hotel with a free breakfast.
Not only will you probably get a large, filling meal, but you might even be able to take a piece of fruit or cereal box as a snack for later on in the trip.
9. Pack Reusable Water Bottles for Everyone
You’ll no doubt get thirsty while driving and sightseeing, especially in summer, and buying water or drinks can put a major dent in your road trip budget.
Making sure everyone in the car has a large reusable water bottle (or two) to fill up at rest stops and in restaurants can help you avoid spending money on drinks, and also create less plastic waste.
10. Buy a National Park Pass
If you’re going to be road-tripping across the U.S. and visiting a few national parks, you may want to consider getting an America the Beautiful pass.
The pass (which costs $80 per year and $20 for seniors) covers entrance, standard amenity, and day use fees for a driver and all passengers in a personal vehicle (up to 4 adults) at more than 2,000 federal recreation sites.
Just remember that summer is primetime for many parks, from Yosemite in California to Acadia in Maine. If you need lodging, book early.
11. Hit the Grocery Store
Once you’ve run out of your cooler meals and snacks, consider re-stocking at a local grocery store while en route so you don’t have to resort to fast food or a pricey local restaurant for the rest of your trip.
This is also a good strategy if you’re going to be staying at a hotel for a few nights. Making good use of a hotel kitchenette and fridge can help you avoid having to eat out for every single meal.
12. Pre-Book Your Hotels
Spontaneity is great, but if you’re looking to save money on accommodations, it can be wiser to book ahead of time and stick to your plan. You can often secure a better rate by booking in advance (and online), than by showing up without a reservation or booking last minute.
13. Look Beyond Hotels
Your first thought when looking for roadside accommodation may be cheap hotels or motels. But you sometimes find a better deal (or a nicer option for the same price) using a home rental site, such as Airbnb, VRBO, or FlipKey, especially if you’re staying for more than one night.
When booking lodging, it can be smart to use a travel credit card, since every swipe can help you earn points, miles, or cash back that you might apply to future trips.
14. Plan to Visit Free Attractions
Part of the fun of a road trip is to enjoy the journey and scenery while en route to your final destination.
As you travel (or before you go), you may want to research free attractions, such as a hike, walk on a beach, or a free museum, on your route for times when you need to stretch and take a driving break.
You can also look for festivals and local events by checking out the online events calendar for the towns you’ll be visiting that day. You might also check out Meetup.com and see what kinds of local groups are gathering for experiences and outings.
15. Plan Gas Stops in Advance
Getting stuck in a big city with the tank close to empty can be costly (and driving in circles looking for a gas station when you’re en route to the beach is no fun either). To avoid overpriced gas, you may want to use a gas app like Gas Guru or GasBuddy, which can help you compare prices and find affordable gas no matter where you are. This hack is an easy way to lower your gas costs.
16. Set a Daily Spending Limit
You can use your overall budget to get a rough idea of how much you can spend on the road trip each day. This can help you avoid blowing the money you’ve saved, wherever you may keep your travel fund, before the end of the trip.
A spending plan can also let you know when you can splurge a bit and when you’ll have to reign it in with a meal, activity, or lodging. You may also want to set aside some of your budget for the unexpected, such as the car getting a flat and needing to be towed, or discovering the cheap hotel you planned to stay in is actually a total dump. Also factor in some summer road-trip treats: You’re likely to be stopping for ice cream here and there and maybe even a lobster roll.
17. Entertain the Kids on the Cheap
Road trips can help you afford a family vacation since you sidestep pricey plane tickets. But remember that kids have a tendency to get bored, tired, and antsy on a road trip. To avoid giving in to impulse toy purchases, you may want to bring along their favorite toys and also pick up a variety of new ones at the dollar store before you leave.
Good choices include coloring books and games they can play in the car that won’t create a mess. You might also consider borrowing audio books or DVDs from the library to give yourself an hour or so of peace and quiet.
18. Search Online for Local Coupons and Passes
It can be worthwhile to research online coupons and discount codes for local attractions and restaurants at some of your scheduled stops.
Consider checking Groupon or LivingSocial for deals and steals. Sometimes booking online ahead of time saves you money, and it’ll give you a reason to try to reach a specific destination by a certain day.
19. Save on Alcohol
Sipping a cold beer or glass of wine at a local bar at the end of your long drive might sound like the perfect way to unwind.
But alcohol costs can quickly add up on a road trip vacation. Consider buying a few local beers or a small bottle of wine that’s native to that area to enjoy in your hotel room. You’ll save money on tipping too.
20. Volunteer at a Festival
Yes, you read that correctly. Some festivals and special events offer discounts or free admission to volunteers. You can look up events taking place in the town you’ll be visiting and reach out to the event organizer to see if they need help. Summer is full of events like these, from concerts to craft fairs to food festivals.
21. Sign up for a AAA Membership
An auto club like AAA can save you time, money, and hassle should you run into car trouble during your trip. What’s more, a membership (often starting at around $5 a month) gives you access to discounts at loads of hotels, restaurants, and many retailers nationwide.
22. Travel During the Off-Season
Yes, summer can be the most welcoming time of the year to hop behind the wheel. But visiting national parks when kids are back in school can often help save money on lodging and activities. Planning a road trip to a destination like Disney World or Disneyland? You’ll likely find better deals if it’s not during a spring break or other school vacation.
You can often also save money by visiting warm weather locations during “shoulder seasons.” This is the period in between a destination’s low and high seasons of tourism, when prices for hotels tend to be lower, and crowds tend to be smaller, at popular attractions.
23. Do Some Camping
Outdoorsy road trippers might enjoy setting up a tent at a free or low-cost public campsite. You can find out more on the Bureau of Land Management site.
This can end up saving you a lot of money on hotel costs, provided you don’t go out and buy a lot of expensive camping equipment.
If you don’t have any camping gear, you may want to consider renting equipment from an outdoor specialty store or asking a friend who regularly goes camping if you can borrow their equipment. As noted above, summer can be prime time for basking in some of America’s natural beauty, so book your campsite early.
24. Eat Out for Lunch Instead of Dinner
If there are special restaurants you want to try without breaking the bank, consider going there for lunch. You might get a slightly smaller portion than you would if you ordered it off the dinner menu, but the price will likely be more affordable.
25. Take Advantage of Loyalty Programs
Booking with the same hotel chain as often as possible and signing up for their member loyalty (or “points”) program may net you a free night after a few stays.
Travel booking services, such as Expedia, Travelocity, or Hotels.com, may also offer discounted rates and free nights for loyal customers.
Recommended: Getting the Most Out of Credit Card Rewards
The Takeaway
Planning a summer vacation? A car trip might sound much more affordable than traveling by plane. However, gas, food, and accommodations can add up.
One of the best ways to cut road trip expenses is to plan out your trip and research deals, coupons, and discounts ahead of time. Packing wisely and loading up on drinks, snacks, toys, and activities can also help cut costs once you’re out on the road.
Ready to start planning and saving for your next road trip? Consider signing up for a SoFi Checking and Savings® account.
SoFi Checking and Savings has a special “vaults” feature that allows you to separate your savings from your spending, while earning competitive annual percentage yield (APY) on all of your money and paying no account fees. You can even set up a separate vault for your travel fund.
SoFi Checking and Savings: The smart, simple way to save for your next trip.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
SoFi members with direct deposit can earn up to 4.20% annual percentage yield (APY) interest on Savings account balances (including Vaults) and up to 1.20% APY on Checking account balances. There is no minimum direct deposit amount required to qualify for these rates. Members without direct deposit will earn 1.20% APY on all account balances in Checking and Savings (including Vaults). Interest rates are variable and subject to change at any time. These rates are current as of 4/25/2023. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances. Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners. External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement. SOCC0323048
Save more, spend smarter, and make your money go further
Is your debt stressing you out? If so, we promise you’re not alone. Especially if you are financing a home. According to the Center for Microeconomic Data, mortgage balances—the largest component of household debt—rose by $60 billion during the second quarter of 2018.
If you’re committed to getting out of debt, we’ve got you covered on how to set up a debt repayment plan to make sure you stay on track and reach debt freedom as soon as you can.
Here are five simple steps on how to jump-start your debt repayment journey:
#1 Assess The Amount of Debt You Owe
Of course, that’s what Mint is here to help you do — easily and automatically track where every last penny goes. Tracking your expenses will help you see where you can cut down, thus helping you reduce outstanding debt, as well as your debt/income ratio (outstanding debt divided by annual net income). Having a clear view of the numbers will empower you to make a plan that actually works based on where you are now.
#2 Sleuthing For Savings
Don’t think you have any extra money to create a debt destroyer? Once you start tracking your expenses, you might be surprised. For example, can you can cut your cable bill (average of $75 a month) and switching to a streaming service (about $10.99 a month)? Or is there a subscription you’re paying for that you don’t actually use? The smallest things here and there can really add up, so make sure you understand what you don’t actually need to be paying for in order to find some extra cash to put toward your debt goals.
#3 Pick A Debt To Tackle First
Some people choose the smallest debt first because getting a few wins on the board helps motivate them to keep working toward bigger goals. Others choose to go after debt with the highest interest rate first because it’s costing the most money right now. Once you choose which debt to work on first, pay the minimums on all other outstanding debts, and put every leftover dime toward the debt you’re targeting.
#4 Start Snowballing
After you pay off the first debt, move on immediately to the next one on your list, instead of taking a break and using that extra money elsewhere. As your number of debts decrease, the amount of money you have to attack the ones that remain increases. This means you can snowball your payments until all of your debt is pummeled
#5 Enjoy Life After Debt
Once you’ve started paying down debt, now you’re ready to establish a commitment to saving. First, determine what you are you saving for! The first goal you should set is an emergency fund. This will help protect you in case of sudden unemployment, a medical emergency or other unexpected expenses. If you want to be consistent with your savings contributions, try automated savings. Start small and then increase the deposit amount when you feel confident that you can set aside more.
The earlier you get started with a strategic debt repayment plan, the better. Remember, take things step by step and first get organized to figure out what you owe. We know debt can feel overwhelming at times, but it’s important to remember it doesn’t have to last forever if you’re committed to creating a better financial future!
Save more, spend smarter, and make your money go further
Previous Post
Spending Confession: Craziest Money Spent for Football Games
Next Post
9 Ways to Make LGBTQ Retirement Easier
Mint is passionate about helping you to achieve financial goals through education and with powerful tools, personalized insights, and much more. More from Mint
Idaho has become a hot spot for those looking to relocate. Whether you’ve moved to Boise, Idaho Falls, or one of Idaho’s many small towns, you’ll need a place to park your money. The best banks in Idaho offer low fees and plenty of services. Here are some top contenders to consider if you’re in the market for a new bank.
13 Best Banks in Idaho
1. D. L. Evans Bank
Southern Idahoans looking for a local option should consider D.L. Evans Bank. Founded more than a century ago, this bank offers online and mobile options, as well as access to both D.L. Evans ATMs and 40,000 MoneyPass network ATMs.
Although D.L. Evans has multiple checking accounts, Free Community Checking is a great all-around option, featuring no monthly maintenance fees or balance requirements. You’ll also get online and mobile banking, along with savings, CDs, and loan options.
Fees:
No monthly service fee
Balance requirements:
$100 opening deposit
No minimum daily balance required
ATMs:
Fee-free at D.L. Evans ATMs
Fee-free at 40,000 MoneyPass ATMs nationwide
Interest on balance:
Tiered APY on checking with $500 balance
0.05% APY on savings
Additional perks:
Video chat with customer service representatives
Competitive loan rates
2. Chime
To pull new customers away from big banks, online-only banks like Chime have competitive offerings. You’ll get a fee-free checking account with a mobile app to meet all your banking needs.
Chime also offers a higher interest rate than other banks, at 2.00% APY. And autosave features will help you boost your balance.
Fees:
No monthly fees
No overdraft fees
Balance requirements:
No minimum daily balance
No opening deposit required
ATMs:
Fee-free at more than 60,000 ATMs nationwide
Interest on balance:
2.00% APY on savings
Additional perks:
Automatic savings feature available
Access to paycheck up to two days early
3. Chase
Another national bank with a robust ATM network is Chase Bank, which has a heavy presence in Southern Idaho. You’ll find banking options both at branches and in select Fred Meyer grocery stores.
You can get fee-free checking with Chase as long as you either maintain a $1,500 balance or receive at least $500 in direct deposits each month. Chase also has a variety of other financial products, including savings accounts, CDs, and wealth management services through JPMorgan.
Fees:
$12 monthly fee (waived with balance or direct deposit qualifications)
$34 overdraft fee
Balance requirements:
$1,500 minimum or $500 in direct deposits to waive service fee
No opening deposit required
ATMs:
Fee-free at 16,000 ATM locations nationwide
Interest on balance:
Up to 0.01% APY on savings
Additional perks:
$200 bonus on new checking with qualifications
Special accounts available for ages 6-17
4. Washington Federal Bank
Now known as WaFd, Washington Federal Bank is a great regional bank that serves Arizona, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, and Washington. Your account includes access to 37,000 ATMs in the MoneyPass network, which operates nationwide.
WaFd account holders choose from multiple checking options, but if lower fees are what you want, the Free Checking tier is worth checking out. One of the best things about WaFd is its online banking app, which includes standard features like bill pay and Zelle payments, along with tools that help you track your spending habits.
Fees:
No monthly fees
$30 overdraft fee per presentment
Balance requirements:
No balance minimums
$25 opening deposit
ATMs:
Fee-free at 37,000 ATM locations nationwide
Interest on balance:
Up to 0.25% APY on high-balance checking
Up to 0.10% APY on savings ($100 minimum balance)
Additional perks:
Financial management tools in app
Competitive credit card and loan options
5. Zions Bank
As far as regional banks go, Zions Bank is a great choice. With a 150-year history in the area, Zions Bank is a trustworthy financial institution that offers a variety of banking products, including auto loans, CDs, and military checking accounts.
It’s important to note that Zions is limited in its reach. You can deposit checks, pay bills, and manage your money through mobile banking, but if you regularly need cash, check the ATM locator. There are only 200 ATMs, located in Utah, Idaho, and Wyoming, and Zions charges a $2.50 out-of-network transaction fee in addition to fees charged by the other ATM operators.
Fees:
No monthly fees
$29 overdraft fee per transaction
Balance requirements:
No minimum balance
$50 opening deposit
ATMs:
Fee-free at 200 ATM locations regionally
$2.50 fee per out-of-network transaction
Interest on balance:
Up to 0.19% APY on savings
Additional perks:
Competitive rates on loans
Easy-to-use mobile app
6. Washington Trust Bank
Washington Trust Bank has a long, fascinating history. Not only is it the oldest community bank in the nation, but it was also the first bank to print bills with George Washington on them. Washington Trust has branches in Idaho, Washington, and Oregon.
If you’re looking for an online bank with no monthly service charges or balance minimums, Washington Trust could be a great choice. However, if you regularly travel, it may not be the best bank for you.
Fees:
No monthly fees
No overdraft fees
Balance requirements:
No minimum balance
$25 minimum deposit to open
ATMs:
Fee-free at Washington Trust ATMs
$2.00 fee per out-of-network transaction
Interest on balance:
0.01% APY on checking if you keep a $5,000 daily balance
Up to 0.05% APY on savings
Additional perks:
$200 bonus for Freedom Checking with qualifying deposits
No overdraft fees with Simply Free checking account
7. KeyBank
Another regional bank option is KeyBank, which has locations in 15 states. Unlike other regional banks, it’s fairly large, though. In fact, it’s one of the largest banks in the U.S.
One of the best features of KeyBank is its automatic savings program. Debit cards can be set up to automatically move money into your savings account to help you start saving.
Fees:
No monthly fees
$29 overdraft fee on each item
Balance requirements:
No minimum balance
$10 minimum deposit to open
ATMs:
Fee-free at KeyBank ATMs
Fee-free at AllPoint network ATMs
Interest on balance:
Up to 0.01% APY on savings
Additional perks:
Automatic savings available with every debit card purchase with EasyUp
Competitive rates on loans
8. First Federal Savings Bank of Twin Falls
If you don’t mind an Idaho-only bank, check out First Federal Bank of Twin Falls. Branches are primarily in the Twin Falls area, but bank accounts come with a 30,000-plus ATM network across the U.S.
Currently, this bank offers a checking account that issues an impressive 4.07% APY on checking. The savings account rates aren’t quite as competitive, but it’s worth checking out if you keep a decent checking balance.
Fees:
No monthly fees
$30 overdraft fee on each item
Balance requirements:
No minimum balance
$100 minimum deposit to open
ATMs:
Fee-free at more than 30,000 MoneyPass ATMs nationwide
Refund of $25 in fees per statement cycle
Interest on balance:
Up to 4.07% APY on checking
0.10% APY on savings
Additional perks:
Robust business banking options available
Competitive rates on loans
9. Idaho Central Credit Union
Residents of Idaho, Washington, or eastern Oregon, may qualify to join Idaho Central Credit Union. There are plenty of benefits to being a member, including competitive rates on savings accounts and loans.
Although ICCU does have fee-free checking accounts, you can find higher interest rates on savings with other options. But ICCU gives you nationwide ATM and mobile banking options, so it may be worth it if you prefer a smaller lender.
Fees:
No monthly fees
$24.94 overdraft fee on each item
Balance requirements:
No minimum daily balance
$5 membership fee
$100 minimum opening deposit
ATMs:
Fee-free at more than 30,000 ATMs nationwide
Interest on balance:
Up to 0.10% APY on savings
Additional perks:
Security features built into debit card
Free credit score and monitoring
10. Wells Fargo
Wells Fargo has branches in both Northern and Southern Idaho, particularly the Coeur d’Alene, Idaho Falls, and Boise Falls areas. Currently, Wells Fargo is offering a $300 bonus to new checking customers who make $1,000 or more in qualifying direct deposits in the first 90 days.
Northern and Southern Idaho residents who prefer traditional banks will like the availability of ATMs across the nation, as well as the convenience of branch locations. The most affordable checking account is Everyday Checking, which comes with a $10 monthly service charge that can be waived by keeping a $500 balance or having $500 in at least one qualifying deposit each month.
Fees:
$10 monthly fee (waived with balance or direct deposit qualifications)
$35 overdraft fee
Balance requirements:
$500 minimum or $500 in direct deposits to waive service fee
$25 to open
ATMs:
Fee-free at 12,000 ATM locations nationwide
Interest on balance:
Up to 0.10% APY on Prime Checking
Up to 2.51% APY on high-balance savings
Additional perks:
$300 bonus on new checking with qualifications
$525 bonus on new savings with qualifications
11. Farmers Bank
Another option for those who like local banks is Farmers Bank. You can get a fee-free checking account and features like bill pay and alerts in the app.
One downside to Farmers is that there are only a few branches in Idaho. But if you regularly travel outside Idaho, you’ll enjoy ATM access at MoneyPass ATMs nationwide.
Fees:
No service fees with e-statements
$30 overdraft fee per transaction
Balance requirements:
No minimum daily balance
$100 opening deposit required
ATMs:
Fee-free at Farmers ATMs and MoneyPass ATMs nationwide
Interest on balance:
Up to 0.30% APY on savings
Additional perks:
Competitive rates on loans
Drive-up banking on Saturdays
12. Bank of Idaho
If you’re looking for an Idaho bank with a community focus, Bank of Idaho can help. Like many banks with a local angle, Bank of Idaho goes beyond money to focus on connecting with its customers.
But Bank of Idaho does have only a few locations. You’ll rely on mobile apps to do most of your banking with a community-centered bank, making it more like online banks.
Fees:
No service fees with e-statements
Balance requirements:
No minimum daily balance
$100 opening deposit required
ATMs:
Fee-free at MoneyPass ATMs nationwide
Interest on balance:
Rates not publicly disclosed
Additional perks:
Community focus, including local events
Financial tools on the website
13. Citizens Community Bank
Fee-free checking accounts and competitive loan rates make Citizens Community Bank a great option for Idahoans. You’ll get a fee-free checking account with an online app to make things easy.
Although Citizens is local, you can withdraw money at ATMs at MoneyPass locations across the country. You’ll get all the amenities of online banks with the benefits of a small, local lender.
Fees:
No service fees
$30 overdraft fee per item
Balance requirements:
No minimum daily balance
No opening deposit required
ATMs:
Fee-free at MoneyPass ATMs nationwide and Glacier Bank local ATMs
Interest on balance:
Up to 0.20% APY on savings
Additional perks:
Competitive rates on loans
Free thank you gift for new members
Bottom Line
Whether you’re looking for an interest-bearing account for your money or a fee-free checking account, Idaho has plenty of options. If you prefer a small or regional bank, make sure you’re getting the amenities a larger bank offers with your account.
Tap on the profile icon to edit your financial details.
The earlier you begin investing, the better off you’re likely to be in the long term. Here’s how you can get started if you’re still in your 20s. It’s never too early to start investing—as long as you do so wisely. It’s important to make a proper plan so that your investments actually help you reach your goals. Here are six tips you can implement if you want to start investing in your 20s. A financial advisor can help you manage your investment portfolio.
1. Focus on Retirement
Your first investment move should be to use tax-advantaged accounts to save for retirement. Many employers offer 401(k) plans with matching. If you can afford to, max out the match to capture the greatest retirement savings. So if your employer will match 50% of your 401(k) contributions up to 6% of your paycheck, contribute at least 6% to get the full employer match.
If you don’t have retirement savings options through your employer, there are some tax-advantaged options outside of a job. If you’re self-employed, you can set up a solo 401(k) plan. You can also set up a traditional or Roth IRA on your own and contribute up to $6,500 in 2023.
While retirement savings aren’t the sexiest investment option and you won’t normally be able to access the money without a hefty penalty until the age of 59 ½, they are still the best place to start. You can set yourself up for a secure retirement by starting to build your nest egg now. Being able to take advantage of employer matches and saving on your taxes is the icing on the cake.
2. Build Liquid Savings
While investing for the future is important, it’s still wise to have some liquid savings that you can access quickly if needed. Say you lose your job unexpectedly. If your savings are locked up in a CD for another year, you’ll have to pull them out and lose some or all of the interest you had earned.
While this isn’t the end of the world, it does set you back on your investing goals. The same is true if your money is tied up in stocks—you may have to cash out at an inopportune time from an investment perspective, losing earnings.
So after you’ve set up your retirement accounts, start building an emergency fund. A good goal is to save up enough money to cover your expenses for six months. So if you need $3,000 each month for rent, utilities, transportation, food and other necessities, aim to keep $18,000 in liquid savings.
This money should sit in an account where it’s earning interest. Take a look at high-yield savings accounts, money market accounts and money market funds where your funds can generate interest while still remaining instantly accessible.
3. Start Investing With a Brokerage Account
Once you have retirement funds and an emergency savings account, you can start investing in the market. It’s time for you to set up your own brokerage account so you can buy and sell stocks, bonds, exchange-traded funds (ETFs) and mutual funds.
Many brokerage accounts can be set up and managed completely online. Shop around and see which one is right for you. Some important things to consider are whether they require a minimum initial investment, what their fees and commissions may be and whether they offer helpful tools for analyzing investments.
You might start by investing in mutual funds and ETFs, which bundle different kinds of stocks and bonds. Make sure the operating expense ratio of a fund is not excessive, such as more than 1%. You can also buy stocks and bonds directly—but first research the companies you’re considering to see if they’re a solid investment. For example, government bonds are generally a safe investment, but some corporate bonds can be quite risky. And it’s possible for a company’s stock to crash, taking your money with it.
4. Understand the Risk/Reward Trade-Off
For any investor, diversification is the name of the game. Even if you think you’ve found the most profitable stock of all time, you shouldn’t put all your eggs in the same basket. By diversifying the things you invest in, you can set yourself up for lower risk overall.
A strong understanding of risk can help you avoid meme stocks and other unwise investment maneuvers. The younger you are the higher the portion of your portfolio should be in equities, which are riskier than fixed-income securities like bonds. For example, if you’re in your 20s an 80/20 (equities/bonds) allocation might be a reasonable option for you. Use an asset allocation calculator to help you create a diversified portfolio that matches your risk tolerance.
5. Work With an Expert
If tax planning and the other complications of investing leave you with a lot of questions, you might consider working with a financial advisor to get expert advice. While there are plenty of resources out there for a beginning investor, sometimes talking to someone with deep financial knowledge can quickly pay for itself.
6. Let Your Investment Plan Grow and Evolve with You
As you age, your financial needs will change too. Generally speaking, younger investors are advised to take more aggressive and riskier financial positions because they have time to ride out the highs and lows before they’ll need to cash out. On the other hand, older investors are nearing retirement and have less time for their investments to recover if there’s a market downturn.
As you get older, you might have different financial goals than you had at 20. You might be thinking about buying a home, starting a family or starting your own business—any of which would likely change your investment strategy. Take a look at your investment portfolio at least once a year to make sure your strategy is still working for you.
The Bottom Line
Young investors can start by building retirement savings, creating an emergency fund and opening a brokerage account. Savvy investors will understand the risk/reward relationship, revise their investment strategies as their financial needs and goals change and work with a financial advisor when they need expert advice.
Tips on Investing
As you build a portfolio, you might benefit from working with a financial advisor, who can offer both investment insights and tax advice. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Success in investing is partly about your portfolio’s asset allocation. SmartAsset has an asset allocation calculator that will assist you in picking the right asset allocation for you.
Save more, spend smarter, and make your money go further
A reader on the Mint.com Facebook page writes:
What are the best retirement savings tools for Americans living abroad? I can’t invest in an IRA or 401(k) with foreign-earned income. But I’m young, I have disposable income, and I’d like to get started now.
Good for you.
The reader didn’t specify his job or which country he’s working in, so I’m going to imagine he teaches English to Tokyo hipsters by day and tends bar in the Caribbean at night.
The Foreign Earned Income Exclusion (FEIE)
If you work abroad all year long, you’re eligible for the Foreign Earned Income Exclusion (FEIE). Basically, the IRS figures that if you live and work outside the US, you shouldn’t have to pay taxes on the first $92,900 of your income, plus an additional allowance for housing.
The rationale for this juicy deal is:
You’ll probably be paying income taxes in the country where you work.
You won’t be able to take advantage of most of the services paid for by US taxes, anyway.
The only downside to the FEIE is that if you exclude all of your income from U.S. taxes (as your average English teacher/bartender will), you can’t contribute to a traditional or Roth IRA or 401(k), all of which require non-excluded earned income.
Furthermore, U.S. citizens who participate in a retirement plan in another country are likely to end up with ongoing tax headaches.
So we’re back to the original question: what should our international playboy do?
Save like an international man (or woman) of mystery
The best move for a U.S. citizen working abroad who intends to return to the U.S. is to open a taxable brokerage account with a U.S.-based brokerage or mutual fund company. “Taxable account” just means “not an IRA.” You can still use the money for retirement, of course, even though it’s not in an officially designated retirement account.
This, unfortunately, is easier said than done. If you’re a foreign resident and aren’t rolling in cash, most US brokerages will consider you high-maintenance — at best. Vanguard doesn’t want your money at all. Schwab makes a special effort to reach non-U.S. residents, but they have a minimum opening balance of $25,000.
TD Ameritrade is open to residents of most, but not all, countries and they don’t require any special procedures or minimum balances. Roughly 30 to 40 countries are on a blacklist, however, and TD doesn’t publish it; you just have to ask. And we’re not necessarily talking about Axis of Evil-type countries; I was able to determine that Japan is on the blacklist.
Now, I am not explicitly suggesting anyone do this, but I suspect the way most foreign residents get around these restrictions is to link their brokerage account to a U.S. bank account (which they established before leaving the US), provide a U.S. mailing address to the brokerage, and sign up for online statements.
However you manage to establish an account, whatever investments you would have made in your IRA, you can make in your taxable account, with no maximum contribution. Those investments might include mutual funds, ETFs, or individual stocks and bonds.
The interest, dividends, and capital gains from those investments are not considered earned income and will be taxable, but because you’ll be in a low tax bracket, the taxes will be minimal, at least until you have a very large investment account.
This leaves the question of how to get the money to the U.S. and into U.S. dollars without spending a fortune on wire transfer and currency conversion fees.
If you work with a brokerage used to dealing with international residents, they can probably help by providing an international bank account where you wire the money and it automatically ends up in your U.S. brokerage account within a couple of days. (Schwab offers this service; TD Ameritrade doesn’t.) Or, if you need to get money into your US checking account as an intermediate step, you can use a low-cost international wire service like XE.net or OANDA.
Trouble in paradise
I’ve glossed over a variety of other issues you may run into. Border straddling of any kind makes governments nervous, especially when money is involved. It’s hard not to get the feeling that everyone assumes you’re a smuggler or a wealthy elite trying to pay zero taxes.
The IRS is not the only taxman in the world. The country you live and work in may want to know why you’re keeping all this money “offshore,” and might want a cut. This is more likely to come into play when you’ve amassed enough money to be worth going after—but I’m not promising anything. The details vary from country to country.
Speaking of the IRS: they are generally intolerant of U.S. citizens investing in foreign mutual funds and similar investments. Unless you want to learn a whole lot about “passive foreign investment companies” and all the red tape involved, avoid investing in funds local to your host country, even if they’re denominated in U.S. dollars.
The U.S. Treasury (not the IRS this time!) wants to know about your foreign accounts (bank, brokerage, or otherwise). If the total balance exceeds $10,000, then you have to file an annual form with Uncle Sam.
The best advice I can give is: talk to members of your expat community. Admittedly, if we’re talking about 24-year-olds teaching English in Japan, they’re probably not sending any money home or putting anything away for retirement. Fine. Seek out ”the suits” in your expat community and hire a pro to do your taxes the first year or two, or until you understand how all the moving parts work.
None of these hurdles are legitimate excuses for failing to save for retirement—and I know the reader knows that, or he wouldn’t have asked.
Oh, and if you think this sounds like a reeking can of worms, it could be worse: you could be a non-citizen working in the U.S., trying to abide by our rules. More on that in a few weeks.
Matthew Amster-Burton is a personal finance columnist at Mint.com. Find him on Twitter @Mint_Mamster.
Do you have an investing question for Matthew Amster-Burton? Head over to the Mint.com Facebook page and ask away!
Save more, spend smarter, and make your money go further
Previous Post
MintLife Reader Q&A: 401(k)s, 457(b)s, and IRAs — Oh, My!
Did you know that the average American has a nearly 70% chance of needing some form of long-term care upon reaching age 65? But did you also know that you may be able to prepare for the event by purchasing long-term care insurance? That’s why we’ve prepared this guide of the 7 best long-term care insurance of 2023.
Before getting into our reviews of the seven best long-term care insurance providers of 2023, scan the table below to see which company you think will work best for you:
Ads by Money. We may be compensated if you click this ad.Ad
Our Picks for Best Long-Term Care Insurance
Dozens of insurance companies offer long-term care insurance, but below is our list of the top seven, and what each is best for:
Ads by Money. We may be compensated if you click this ad.Ad
Best Long-Term Care Insurance – Company Reviews
Ads by Money. We may be compensated if you click this ad.Ad
Maximum Benefits: Varies by provider
Benefit Period: Varies by provider
Waiting/Elimination Period: Varies by provider
GoldenCare, also known as National Independent Brokers, Inc, is a privately held long-term care insurance brokerage firm, and one of the leading such firms in the industry. They provide policies from the top-rated insurance companies in the industry. The company is based in Plymouth, Minnesota, and has been in business since 1976. Their plans are available in all 50 states.
The list of companies they work with includes the following:
GoldenCare also offers critical illness insurance, Medicare supplements and Medicare Advantage plans, prescription drug plans, life insurance, annuities and final expense policies.
Ads by Money. We may be compensated if you click this ad.Ad
Maximum Benefits: Varies by provider
Benefit Period: Varies by provider
Waiting/Elimination Period: Varies by provider
Like GoldenCare, LTC Resource Centers is also an insurance brokerage specializing in long-term care insurance. Based in Cape Coral, Florida, the company has been in business for more than 40 years. They provide long-term care insurance, short-term care, linked or combination products, Medicare supplements, life insurance, critical illness, and annuities.
A specialization they offer is what is known as asset-based long-term care. It’s a strategy that uses a whole life insurance policy or annuity to provide long-term care coverage, which eliminates the need for an expensive, dedicated LTC policy. A pricing comparison is presented in the screenshot below:
As a broker, they work with multiple long-term care insurance providers. That means to get detailed information you’ll need to set an appointment with a long-term care insurance specialist and make the request. The company’s licensed to operate in all 50 states.
Maximum Benefits: Up to $400 per day or $10,000 per month
Benefit Period: Up to 5 years, or unlimited lifetime benefit
Waiting/Elimination Period: 0, 30, 60, 90, 180 or 365 days
Mutual of Omaha is one of the top individual providers of long-term care insurance. They offer some of the best plans in the industry, including lifetime benefits coverage, multiple elimination periods, and inflation protection. They are a full-service insurance company providing coverage in all 50 states, providing virtually all types of insurance policies.
Mutual of Omaha also offers premium discounts. For example, you can save 15% when you purchase a policy for both you and your partner. You can also save 15% if you’re in good health. There’s even a 5% discount if you are married but your spouse does not purchase a policy.
Maximum Benefits: Up to $7,000 per day, up to a $250,000 lifetime maximum
Benefit Period: Up to maximum daily or lifetime limit
Waiting/Elimination Period: One-time deductible of $4,500 up to $21,000
Like Mutual of Omaha, New York Life is a large, well-established and diversified insurance company. In addition to long-term care policies, they also offer virtually every other type of insurance policy available. Also like Mutual of Omaha, New York Life is a mutual insurance company, which means it’s owned by its policyholders, not shareholders. The company partnered with the American Association of Retired Persons as a preferred provider of long-term care insurance policies.
New York Life provides their NYL My Care long-term care policy. The basic parameters are as follows:
Like other direct insurance providers on this list, New York Life also offers annuities and whole-life insurance policies with long-term care riders.
Maximum Benefits: Up to $750,000 maximum lifetime benefit
Benefit Period: Up to 7 years
Waiting/Elimination Period: 90 days
Nationwide is one of the leading providers of long-term care insurance in America. With a maximum lifetime benefit of up to $750,000, they provide the highest lifetime maximum benefit on our list. They also offer a single, simple, 90 calendar-day elimination period. You can choose between two years and seven years for a maximum benefit period.
The policy will also cover home healthcare, hospice, adult day care, household services, home safety improvements, and even family care. And in a unique twist, nationwide also provides international benefits. If you live out of the country during the benefit period, the policy will pay 50% of the maximum monthly benefit.
Maximum Benefits: Up to $250,000 maximum lifetime benefit
Benefit Period: Up to maximum lifetime benefit limit
Waiting/Elimination Period: 90 days
Brighthouse Financial is an insurance provider that offers two types of products, annuities and life insurance. Either is available with a long-term care rider. The company has $254 billion in assets, serving about 2 million customers.
Brighthouse Financial provides long-term care insurance through its SmartCare plan. It’s a combination plan that adds a long-term care provision to a whole life insurance policy. You’ll get the benefit of long-term care if it’s needed, but you’ll also have a life insurance benefit to pay to your beneficiaries if it’s not, or if there are any funds left over after your long-term-care stay.
The policy will cover adult day care, hospice, and home healthcare, in addition to nursing homes and assisted living facilities, and skilled nursing care.
Ads by Money. We may be compensated if you click this ad.Ad
Maximum Benefits: Varies by provider
Benefit Period: Varies by provider
Waiting/Elimination Period: Varies by provider
CLTC Insurance Services, or California Long Term Care Insurance Services, is a long-term care insurance aggregator, based in San Francisco. Aggregator is a fancy word for an online insurance marketplace. As an aggregator, CLTC will give you access to a large number of long-term care insurance companies. You can then choose the one offering the plan that will work best for you. The main limitation of this provider is that they offer policies only in the state of California.
In addition to long-term care insurance, they also offer annuities and life insurance policies, both with long-term care riders. These types of policies eliminate the need for a dedicated LTC policy, since the cost of long-term care is paid out of the proceeds of the annuity or life insurance. CLTC also offers critical illness insurance.
Long-Term Care Insurance Guide
What is Long-Term Care?
When an individual reaches a point where they can no longer care for themselves, long-term care becomes necessary. That care can be provided by anyone from family members to nursing homes.
The need for long-term care generally applies when the individual can no longer perform one or more of the six activities of daily living (ADL). This can include inability to dress, groom, go to the bathroom, bathe, eat, or even to move about freely.
In most cases, long-term care becomes necessary after a major health event, like a heart attack or stroke. But it can also be the result of an ongoing, degenerative health condition or simply advancing age.
In most cases, long-term care is provided by a family member. But institutional care may be necessary if the individual is unable to perform several ADLs, which may overwhelm the ability of family members to provide ongoing care.
Ads by Money. We may be compensated if you click this ad.Ad
How to Purchase Long-Term Care Coverage?
We recommend contacting any of the seven best long-term care insurance providers in this guide. Otherwise, do a search and identify insurance companies that offer long-term care coverage. But be aware that not all insurance companies offer it, precisely because of the many variables. It involves.
When purchasing a policy, be aware of the following:
Like life insurance, it’s best to purchase LTC insurance when you’re young and healthy. That’s when the premiums are lowest.
Consider purchasing a long-term care insurance alternative, like a life insurance policy or an annuity with a long-term care rider (see below). It’s generally much less expensive.
Pay close attention to the maximum benefit paid, whether daily, monthly, annually, or lifetime. It should approximate nursing home costs in your area. (Be aware that these costs vary greatly from one state to another.)
Pay close attention to the benefit period. While the typical number of years an individual needs long-term care coverage is three years, there’s no way to tell what you may need. If you can afford the higher premium, it may be best to go with the longer benefit period, say, five years or longer.
Be aware of the elimination period. The standard is 90 days, but it can be as long as one year. This is not a minor factor, since nursing home care at $8,000 per month could cost you $24,000 with a 90-day waiting period before benefits kick in. The waiting period you choose should match the amount of liquid assets you expect to have available to cover it.
When you take a policy, be prepared to pay the premium for the rest of your life. If you take a policy at 60, stop making the payments at 80, then you need long-term care at 85, you’ll get no benefits from the lapsed policy.
According to the website Consumer Affairs, long-term care insurance premiums look something like this:
Now, the screenshot above reflects only sample averages for very specific policies at ages 55 and 65. The actual premium you will pay will be based on a combination of factors, including your age at the time of purchase, any health conditions you have, as well as the dollar amount and term of the benefits your policy will include.
Finally, given how complicated long-term care insurance is, it wouldn’t be overkill to have the policy reviewed by an attorney before accepting it. If so, an attorney who specializes in elder care will be your best choice.
Who Needs Long-Term Care Coverage?
The short answer to this question is everyone. The unfortunate reality is that people turning 65 have an almost 70% chance of needing some type of long-term care services during their lifetimes. Approximately 37% will require institutional care. And statistically, women and single individuals are more likely to require long-term care than men and married individuals.
If you’re unsure if you need long-term care, check out Jeff’s post, Long term care insurance: do you really need it?.
Though it isn’t well-known outside the industry, there are two basic types of long-term care coverage available. The first is a standalone long-term-care insurance policy.
Like a life insurance policy, medical underwriting will be performed. The insurance company will consider your age, your health condition, your family health history, your occupation, requested benefit levels, and other factors in approving your application and setting the premium level. This is the more costly of the two options.
The other is a hybrid policy. Most commonly, this is life insurance with long-term care benefits. You’ll purchase a basic life insurance policy, then add a long-term care rider to the policy. This will increase the premium on the life insurance policy, but it will be much less expensive than a standalone long-term-care policy.
Meanwhile, you’ll also have a death benefit from the life insurance policy, in addition to long-term-care coverage. But the policy may also include using some or all the death benefits to pay the long-term-care benefits. Your beneficiaries will receive only the amount of the unused death benefit upon your death.
Most of the best life insurance companies offer life insurance policies with this rider.
Another variant of this option is to use an annuity with long-term care rider. Annuities are designed to provide an income stream, very similar to a pension. But similar to a life insurance policy with a long-term care insurance rider, you can also add the rider to an annuity.
Again, it will be less expensive than purchasing a standalone long-term-care policy. And the long-term-care benefits may reduce any death benefit in your annuity. But the provision will be much less expensive than purchasing a standalone long-term-care policy.
Ads by Money. We may be compensated if you click this ad.Ad
Finding the Right Policy
Long-term care insurance is one of the more complicated insurance types. It also includes more potential variables than other policies. For example, not only will you not know if you will need the coverage at all, but you won’t know when, to what degree, what level of care will be required, or how long it will be needed.
Because of all these variables, the cost of a long-term care insurance policy can be all over the place. But it may be better to pay a little bit more for a more comprehensive policy than to price-shop for the least expensive plan.
Before deciding to purchase a long-term-care insurance policy, first review Jeff’s Podcast episode: Long Term Care Insurance – How much do you need? Given how complicated long-term-care insurance is, it’s best to go in with as much knowledge as possible.
How We Found the Best Long-Term Care Insurance Companies
We used the following criteria to determine the best long-term care insurance companies of 2023:
Maximum Benefits: Given that the cost of long-term care can easily run into hundreds of thousands of dollars, we favored companies with the most generous lifetime benefits.
Benefit Period: One of the most basic problems with long-term care is the uncertainty. There’s no way to know in advance what level of care you might need, or how long it might be necessary. For that reason, we favor the companies that provide the most flexibility in this area.
Waiting/Elimination Period: Just as most insurance policies have deductibles, long-term care insurance uses the waiting period in much the same way. The standard delay on benefits is 90 days. But we prefer companies that offer longer waiting periods, since this will represent an opportunity to lower the cost.
Speaking of cost, as much as we would like to provide a list of average costs per provider, this information simply is not available. That’s because long-term care insurance is highly customized. There’s nothing approximating a “one-size-fits-all” policy, as each policy premium is determined by a multitude of factors.
These include your age at the time you purchase the policy, your general health condition, your family health history, the length and amount of coverage you need, and many other factors. The only way to get a reliable premium figure will be to contact one of the companies above and get a quote.
Best Long Term Care Insurance FAQs
What is long-term care insurance?
chevron-down
chevron-up
Long-term care insurance is a type of coverage that will provide benefits to pay for your personal care when you’re no longer able to do so for yourself. While the typical long-term-care scenario involves a nursing home, it also applies in lesser situations. That can include assisted living arrangements, home nursing care, and even family care. The policy will begin paying benefits when you qualify for care based on inability to perform several of the ADLs.
What does long-term care insurance cover?
chevron-down
chevron-up
As mentioned earlier, long-term care insurance benefits begin to apply when you are unable to perform activities of basic living. Depending on the type of policy you have, you’ll receive benefits for a stay in a nursing home, an assisted living facility, skilled nursing care, an adult day care, hospice, and even home care provided by your family.
Some policies will even provide for the cost of modifying your home to better accommodate your capabilities, or the purchase of certain helpful equipment.
How long does long-term care insurance work?
chevron-down
chevron-up
A typical long-term-care insurance policy will pay benefits between two and five years, though some will go as long as seven, and a few providers offer lifetime benefits. You should be aware that you will need to qualify for whatever coverage term you prefer, and the longer the term, the higher the premium will be.
Is long-term care insurance worth it?
chevron-down
chevron-up
It really depends on your perceived need for the coverage, and your ability to pay the premiums. Need can be determined by your family history. If you have multiple family members who require long-term care, having the coverage for yourself will be highly desirable. But if you’re in excellent health, and there’s little history of a need for care in your family, you may want to pass on the coverage.
And of course, given the high cost of the premiums, your ability to afford coverage can never be ignored. But if you have very limited financial means, Medicaid may provide benefits for long-term care. However, to qualify your total assets must generally be below $2,000.
Summary of the Best Long-Term Care Insurance Companies
Let’s wrap up this guide by giving you one more look at our list of the seven best long-term care insurance companies of 2023:
Long-term care insurance isn’t inexpensive. But given the unusually high likelihood that will be needed at some point in your life, it’s a policy worth having if you can afford it. And if you can’t, consider taking an annuity or a whole life insurance policy with a long-term care provision.
What Medicare Assignment Is and How It Impacts You
Close thin
Facebook
Twitter
Google plus
Linked in
Reddit
Email
arrow-right-sm
arrow-right
Tap on the profile icon to edit your financial details.
If a doctor or other healthcare provider accepts a Medicare assignment for a particular service, a patient covered by Medicare will likely have to pay less out of pocket for that service. Accepting Medicare assignment means the healthcare provider has agreed to charge no more than the amount Medicare approved for that service. It also means the doctor agreed to bill Medicare rather than charging you directly. Providers who don’t accept assignments can charge 15% more and require immediate payment from the patient. A financial advisor can help you develop a financial strategy to pay for your healthcare.
Medicare Assignment Basics
Medicare is the government-sponsored national healthcare plan for about 63 million Americans over age 65. Original Medicare is the fee-for-service plan that includes Medicare Part A, which covers hospital costs. And it also includes Medicare Part B, which pays for other healthcare services, including doctor’s office visits.
Almost all doctors accept patients covered by Medicare. And almost all doctors who take Medicare patients accept Medicare assignments. Doctors who accept Medicare assignments are also known as assignment providers, participating providers and Medicare-enrolled providers.
A Medicare assignment provider agrees to charge no more than the Medicare-approved price for a specific service. The doctor or other provider also agrees to bill Medicare directly, rather than charging the patient on the day of service. This means that if you go to a Medicare-participating provider, you won’t usually have to pay anything at the time of service. And you will likely pay less out-of-pocket when all is said and done.
While Medicare assignment is relevant to people covered by Original Medicare, it doesn’t affect people covered by Medicare Advantage plans. These plans have their own rules.
How Medicare Assignment Affects Your Cost
Doctors and other providers who don’t accept Medicare may charge as much as 15% more than the Medicare-approved amount. The exact percentage varies by state. If you go to a non-accepting provider, you may have to pay the extra over the Medicare-approved amount, plus the 20% share of the cost Medicare passes on to all Medicare-insured patients.
For example, consider a visit to an occupational therapist who charges $120 for a treatment session. The Medicare-approved cost of the service is $100.
If the therapist accepts the Medicare assignment, they will charge you $100 and bill Medicare. After Medicare pays $100, you’ll owe 20%, or $20 for coinsurance. That’s if you have already met your Part B deductible. If not, Medicare may not pay anything, up to the amount of the deductible, and you may be responsible for the entire bill.
If the therapist does not accept Medicare assignment, they may charge 15% more than the Medicare-approved amount, or $115. Plus they may ask you to pay the entire amount. If that happens, you have to file with Medicare to get reimbursement.
Whether you or the provider sends the invoice to Medicare, Medicare will pay only 80% of the approved amount, or $80. Your out-of-pocket costs in this case will be $120 minus $80, or $35 instead of $20.
Finding Medicare Assignment Providers
Nearly all healthcare providers accept Medicare assignments. One way to check is to use Medicare’s online tool. You can filter these searches for, among other things, whether the provider accepts Medicare assignments.
You can also ask the provider whether they accept Medicare when you visit. In addition, you may also request information in advance detailing how much they’ll bill Medicare for the service and how much you’ll be expected to pay at the time of the visit.
Bottom Line
Medicare assignment means a doctor or other healthcare provider will charge no more than the Medicare-approved amount for a particular service. This usually means lower out-of-pocket costs for patients who are covered by Medicare. It also means the provider will bill Medicare rather than expecting the patient to pay the full amount at the time of service. Nearly all doctors accept Medicare assignments. But to be sure, you can check Medicare’s provider search tool for more information or ask before your next doctor’s visit.
Healthcare Tips
Consider discussing how you plan to pay for your healthcare with a financial advisor. Finding such an expert doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area. And you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Healthcare costs can be a significant issue for retirees. How big an issue? Median out-of-pocket retiree healthcare costs for 2018 came to $4,311, according to one study. That means after Medicare or other insurance paid everything it would pay, the retiree had to come up with that much in cash to pay for healthcare in that one year alone. That’s why having a plan to pay for healthcare is an important part of retirement planning.
Mark Henricks
Mark Henricks has reported on personal finance, investing, retirement, entrepreneurship and other topics for more than 30 years. His freelance byline has appeared on CNBC.com and in The Wall Street Journal, The New York Times, The Washington Post, Kiplinger’s Personal Finance and other leading publications. Mark has written books including, “Not Just A Living: The Complete Guide to Creating a Business That Gives You A Life.” His favorite reporting is the kind that helps ordinary people increase their personal wealth and life satisfaction. A graduate of the University of Texas journalism program, he lives in Austin, Texas. In his spare time he enjoys reading, volunteering, performing in an acoustic music duo, whitewater kayaking, wilderness backpacking and competing in triathlons.
Get your pickax ready: Alaska’s most expensive listing definitely has the potential to strike gold.
In fact, the 1,418-acre offering is a gold mine.
“It’s a pretty unique opportunity in an amazing area,” says listing agent Yvan Corbin, with Real Broker Alaska.
The property is going for $23.5 million.
Aerial view
(Realtor.com)
The listing within a national preserve includes 15 claims that are patented and 37 unpatented.
Corbin explains a patented claim means the owner owns the land. But the buyer doesn’t own the land in the unpatented claims (1,188 acres), but has the rights to extract.
Extracting could mean gold.
“It was mined, but hasn’t been mined in a very long time,” he says. There has been a “study on it and figured there is at least $60 million, give or take, of gold in there.”
Aerial view
(Realtor.com)
Along with the high price tag, there are other challenges for gold seekers. For one, the area is hard to access. It is, after all, located in a place called “Remote.”
“It’s in the Yukon-Charley Rivers National Preserve off the Yukon River,” he says. It’s about a 75-minute flight from the Fairbanks area, the closest city. “Logistically, it’s not an easy place.”
The property includes a 2,500-foot-long gravel airstrip for the adventurous. But once you get there, where do you lodge?
Corbin says he plans to go see the locale in June, but doesn’t think there are any viable structures on the property.
“When the owner did mine it, there were a few cabins there, but I have no idea what the condition of those are,” he says. “But I’m sure they’re not great because no one has been there in years.”
Sunset
(Realtor.com)
Corbin says there are many possibilities for the property.
“Gold is such a unique mineral and gold fever is real, and I think someone that wants to buy this could hit the jackpot and find more than what is thought to be there,” he adds. The search for gold itself has the makings of a “ready-made TV show.”
Corbin can imagine the drama unfolding with cameras rolling.
“The logistics to set this up and use barges and helicopters to bring machines and everything in, it would be pretty amazing,” he says.
The Housing Market Has Cooled, But It’s Not Frozen
April 26, 2023
Credit…Illustration by Sam Whitney/The New York Times; images by CSA Images/Getty Images
Send any friend a story
As a subscriber, you have 10 gift articles to give each month. Anyone can read what you share.
42
Let’s say you would like to move but you’re handcuffed to your house by a low mortgage rate. If you move now, you’ll have to pay a much higher interest rate on your next home loan.
Sound familiar? It’s a situation that millions of Americans find themselves in. This chart, which I made using data supplied by Nancy Vanden Houten, the lead U.S. economist at Oxford Economics, shows the opening of a huge gap since the end of 2021 between rates on new 30-year mortgages and old loans — the stock of outstanding mortgage debt.
reported on Tuesday. “The share of new homes in total home sales has risen to 13 percent from about 10 percent over the summer, and likely will rise a bit further in the months ahead,” Kieran Clancy, the senior U.S. economist at Pantheon Macroeconomics, wrote in a note to clients.
People who were lucky enough to take out a 30-year fixed-rate mortgage in December 2020 got an average rate under 2.7 percent, according to Freddie Mac, the mortgage securitizer. The national average is now around 6.4 percent. Given those changes, “unless you’re a person who needs to make a move, there’s little incentive” to move now, Vanden Houten told me.
Of course, some people still are putting their homes on the market, and Vanden Houten herself was recently one of them. She sold a house in Teaneck, N.J., to move to Tucson, Ariz. She had an adjustable-rate loan on her New Jersey home, so the rate shock from moving wasn’t as big as it might have been. In any case, she said, “I’ve always loved the desert. I didn’t move for purely financial reasons.”
Vanden Houten has company. Jessica Lautz, the deputy chief economist at the National Association of Realtors, told me that the inventory of existing homes for sale, while historically low, is nonetheless up about 5 percent from a year ago.
“A lot of people have earned a substantial amount of housing equity,” Lautz said. “Even if they have low interest rates on their current loans, they may be willing to make a trade because they’re paying all cash for the next property.”