Last week, the U.S. House of Representatives passed the “Middle Class Borrower Protection Act of 2023,” legislation sponsored by Rep. Warren Davidson (R-Ohio) that was designed to cancel controversial changes to loan-level pricing adjustments (LLPA). The LLPA changes were announced earlier this year by the Federal Housing Finance Agency (FHFA).
The measure — which recently earned the support of the National Association of Mortgage Brokers (NAMB) — passed on a vote of 230-189, with the House Republican conference voting unanimously in its favor. Fourteen Democrats crossed party lines to join Republicans, according to the office of the U.S. House’s clerk.
“The Biden administration wants to use mortgage fees to put their finger on the scale and decide who gets to pay more and who gets to pay less,” House Financial Services Committee Chairman Patrick McHenry (R-N.C.) said in a statement. “This will make housing less affordable, not more, and puts taxpayers at risk by threatening the safety and soundness of our housing finance system.”
Nearly 95% of Americans have credit scores above 680, and the group could face an extra $1.8 billion in new fees over the next two years under the LLPA plan, according to McHenry.
“House Republicans are taking action to protect middle-class borrowers with Rep. Davidson’s bill and I was proud to support it on the House floor,” McHenry said.
“The Biden administration’s mortgage rule is a socialist redistribution of wealth. I’m glad to see my colleagues recognize this issue and pass my legislation to reverse this rule,” Davidson added.
The proposed LLPA changes caused uproar when announced earlier this year. The main issue stemmed from the belief that the changes would punish borrowers with good credit, which FHFA Director Sandra Thompson later characterized as a misconception.
The changes were ultimately rescinded, but not before House Republican lawmakers took aim in a House Financial Services subcommittee hearing and an additional hearing with Thompson as a witness.
“I want to be very clear on one key point, and one that bears repeating: under the new pricing framework, borrowers with strong credit profiles are not being penalized to benefit borrowers with weaker credit profiles,” Thompson said during the hearing. “That is simply not true.”
According to the entry on the U.S. Congress website, the bill has yet to be introduced in the U.S. Senate. It’s unclear if the bill will make it to the floor of that chamber, where the legislative agenda is controlled by a Democratic majority.
CPAs, financial advisors, and financial coaches all share similar money-themed responsibilities, but their goals, education, and fees are vastly different.
Financial coaches do a lot more than show you how to build a budget or slap your wrist when you want to eat out five times a week; they teach you how to have a healthy relationship with money, so you and your family can work towards a brighter financial future.
Read on to learn what financial coaches do and whether or not you need one!
What’s Ahead:
What is a financial coach?
Financial coaches take you back to the basics of money management. Personal Finance 101.
Their goal is to evaluate your personal finance habits, identify patterns in your spending and saving, and suggest new boundaries and budget methods to help you reach your financial goals. They also act as accountability partners; so the next time you’re tempted to splurge on a new pair of shoes or the latest iPhone, your financial coach will help set you straight.
Their job is to educate you on ways to manage your money well, so you can recover from debts, save for major financial goals, and achieve a lifestyle where you control your finances — not the other way around.
What do financial coaches actually do?
Financial coaches provide instruction and advice to help people eliminate unhealthy habits and establish better budget practices; but before they get started, they take a little time to understand their client’s unique routines and aspirations.
Assess the client’s financial habits
Generally, financial coaches begin by tracking your current spending and saving patterns, debts, and budget for a short time, likely a few weeks.
As they come to a clearer understanding of your relationship with money, they help you understand which habits are detrimental to your financial wellbeing and how to implement new, healthy practices. They also learn what emotional ties you may have to money and how those connections influence your finances.
Discuss the client’s financial goals
Next, financial coaches will review their client’s short- and long-term goals.
Would you like to save for a down payment on a house? Address your current debts? When would you like to retire?
For many of us, this list can be quite long, and it may be challenging to know which goals to prioritize. A financial coach can help you get organized and teach you how to adjust your spending and saving patterns to tackle each goal.
Build a financial plan that will last
Finally, your financial coach will propose a plan, unique to your needs and desires, to get you back on track.
They’ll help you develop a new budget, eliminate debt, build an emergency fund, save for retirement, and more. They will likely meet with you every week or every other week, generally for a period of six months to a year, to check in and to keep you accountable.
At the end of that time, your financial coach will have taught you how to maintain a lifelong habit of managing your money well!
How do financial coaches differ from financial advisors?
If you need help planning for retirement, understanding your tax situation, or even saving money, both financial coaches and financial advisors can help. However, while these experts do have a lot in common, the reality is they’re quite different, and it’s important to understand why before you hire one.
Services
First of all, the clients that financial coaches and financial advisors take on typically start from different points.
If, for instance, you have minimal savings and perhaps even substantial debts, you need some tips and tricks to restore your finances to a healthy position. A financial coach can provide that level of service! On the other hand, if you’ve already saved a great deal, but don’t know what to do with the cash you’ve accrued, a financial advisor would be a better fit.
When it comes to investments, financial advisors also have the upper hand. One of the key responsibilities of a financial advisor is to manage a client’s investment portfolio, and most require an investment minimum of $100,000 or even $1 million. Financial coaches, however, aren’t licensed to provide investment advice for their clients, so any tips they recommend will likely be limited and non-specific.
While financial advisors can direct budding investors, financial coaches can address deep-seated issues their clients have with money. Whether you’re an avid budgeter or on the brink of bankruptcy, finances are stressful for nearly every American. Financial coaches can address any negative associations — be they emotional, mental, behavioral, or otherwise — and provide practical methods for correcting them.
Credentials
Another key difference between coaches and advisors is education.
Most financial advisors undergo extensive education and possess specific credentials and designations, such as Certified Financial Planner (CFP) or Chartered Financial Analyst (CFA); Additionally, financial advisors must be licensed and registered with the Financial Industry Regulatory Authority (FINRA).
Financial coaches, however, aren’t required to complete any particular training or certification(s) to provide their services. For this reason, it’s vital that anyone interested in hiring a financial coach be sure to research thoroughly and prioritize those who have achieved some level of education, training, or certification.
Time period
Coaches and advisors also differ in the amount of time they spend with a client.
Since financial coaches aim to help people establish a basic understanding of healthy budget practices, their business relationship is generally for a shorter period of time, such as a year or less. Advisors, however, work with clients for the long haul. They will likely meet once or twice a year to evaluate the client’s assets and manage their investment portfolio.
Cost/rate
One of the most significant differences between coaches and advisors is how much they charge for their expertise.
Since financial coaches aren’t required to have any formal training or licensing, they can be a much more affordable option, accessible to even those who are steeped in debt. However, their rates vary greatly for the same reason. Coaches may charge anywhere from $75-$600 per hour, while others prefer a flat fee per session or for a set number of sessions.
Financial advisors offer a few different types of payment plans, either fee-only, commission-based, or a combination of the two. For fee-only providers, the advisor will charge an hourly rate, such as $150-$300 per hour, or a rate based on the number of assets they manage, typically between 0.5% and 2%. Commission-based advisors receive payment from investment providers, by selling products to their clients.
Who should hire a financial coach?
If you feel stuck in a financial rut, unable to grow your savings, or reach major goals like buying a home, a financial coach may be your ticket forward.
Financial coaches can help their clients eliminate unhealthy money management habits and replace them with positive patterns and routines.
Your issue may be struggling to set aside money for retirement or maintaining a consistent budget. Maybe you’re a textbook shopaholic in need of strict boundaries. No matter your situation, a financial coach can provide some structure and guidance when you need it most.
Once you’ve discarded those negative habits and implemented new norms, they can step aside, leaving you on a new and healthier trajectory.
When do you need a financial coach?
Splurging on an unplanned dinner out or a spontaneous vacation isn’t always bad, but your financial habits can impact your future and even your health if you’re not careful.
When you just don’t know where to start
Let’s say your goal is to buy a house. You’ve opened a savings account and have saved some money over the years, but the progress has been slow and minimal.
Or, maybe you’re living paycheck to paycheck and can’t comprehend how to even begin saving on such a tight budget.
A financial coach can step in and evaluate your spending and saving habits with a fresh set of eyes. They can see opportunities that you can’t and can point out a path to achieving your financial goals.
When your finances are stressing you out
Another serious issue that may require the assistance of a financial coach is when your finances are impacting your health and happiness.
Money is a major stressor for the vast majority of Americans. It can impact everything from your eating habits to your sleep (or lack of). In some cases, the anxiety you feel as a result of finances can even damage your long-term heart health.
If the thought of budgeting, or the weight of financial goals unmet, gives you anxiety or seriously hurts your health and wellbeing, consider contacting a financial coach for help. Don’t assume these issues will sort themselves out. Take action today for the sake of your health and your future.
Why it’s important to find the right financial help
If your finances were a patch of dirt in your backyard, and you wanted to turn it into a beautiful garden that provided tomatoes and carrots for your family, you wouldn’t start with watering. You would pull weeds, plant seeds, and make sure your soil has the proper nutrients to keep plants alive.
A financial coach is like your friendly neighbor with the green thumb who teaches you how to prepare that dirt patch for plants. An advisor is like the nifty irrigation system that provides consistent water to grow your wealth.
If you’re thousands of dollars in debt, a financial coach can help you replace your poor money practices, literally, with healthy ones, or wealthy ones. Or, if you need help building a budget and sticking to it, a financial coach can provide the accountability you need to finally make progress.
But if you’ve got thousands of dollars saved and don’t know what to do with it, you’re probably better off contacting an experienced financial advisor who can help you build and manage a solid investment portfolio and continue to grow your assets.
Where can I find a financial coach or advisor?
If what you need is a financial coach, it’s important that you select a professional with experience in the industry and, ideally, credentials to prove they know what they’re talking about.
Start your search for a financial coach on the Association for Financial Counseling & Planning Education® (AFCPE) website. AFCPE provides two recognized certification programs, equipping coaches with the Accredited Financial Counselor® (AFC®) designation or the Financial Fitness Coach (FFC®) designation. By limiting your selection to professionals who hold AFCPE certifications, you’ll feel confident hiring an expert you can count on to help guide you towards a healthy financial future.
For those in need of wealth management expertise, the Paladin Registry is a great places to shop around.
Their impressive platform begins by collecting some information about your finances and goals and then presenting three qualified professionals from their database for you to consider.
They do the backend research and suggest advisors best suited to your needs, so you can feel comfortable interviewing and eventually selecting one of the experts recommended. Best of all, the Paladin Registry walks you through the entire hiring process for free.
Summary
Financial coaches can provide an invaluable service to folks in need of money management basics, but they’re not right for everyone.
If you’ve accrued substantial savings and aren’t sure how best to maximize your wealth, consider a financial advisor who can manage your investment portfolio and provide a long-term relationship to grow your wealth. However, if what you need is a foundation to build on, a financial coach can teach you how to maintain a budget, eliminate debt, build your savings, and more. They also keep you accountable, to help you adopt a new trajectory towards a healthy financial future.
No matter which type of help you need, be sure to research thoroughly for financial experts who are experienced in the industry and have the education and credentials to prove it.
Inside: Are you confused about how gross pay and net pay are calculated? This guide will clear everything up. Learn about the different deductions that are taken from your paycheck, as well as the tax rates that apply to your gross pay.
This is one of the most confusing questions for many people.
So, if you are wondering what the difference between gross pay and net pay, you are in the right place.
In order to become financially stable, you need to have a tiny amount of financial literacy.
If you’re like most people, you probably think of your “gross pay” as the amount of money you make before taxes are taken out. But in reality, gross pay is your total compensation from your employer before any deductions are made.
So what is “net pay,” then? Net pay is the amount of money that actually goes into your bank account or paycheck after all of those deductions are made.
Now you want to which one is more important between gross pay and net pay.
The answer is: it depends! If you’re trying to save money or make a budget, then net pay is probably more important to you. But if you’re trying to figure out how much taxes you’ll owe at the
We will dive into all of the details, you will not ever be confused again.
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What is gross pay?
Gross pay is the total amount of money earned by an employee before any taxes or deductions are taken out. It’s important to know your gross pay as it determines your overall income and can impact your taxes and benefits.
This is the total amount paid by your employer.
Knowing your gross pay is crucial for financial planning and paying taxes.
How can I calculate my gross pay?
To calculate gross pay, you need to know your hourly wage or salary, any overtime pay, bonuses, and additional reimbursements for work-related expenses.
For hourly workers, multiply the hourly wage by the number of regular hours worked within a pay period and include the overtime pay rate for any extra hours.
For salaried workers, multiply the gross monthly income by 12 to find the annual gross salary.
To calculate a paycheck, start with the annual salary amount and divide it by the number of pay periods in the year.
Find out 5000 a month is how much a year.
What deductions are taken out of gross pay?
Gross pay refers to the total amount of money an employee earns before any deductions are taken out.
As such, there are no deductions.
Learn what is annual income.
How are taxes calculated on gross pay?
Gross pay is the amount an employee earns before taxes and deductions are taken out by their employer.
Understanding taxes on gross pay is essential, as it affects an employee’s take-home pay and tax liability.
Taxes that are deducted from gross pay include FICA payroll taxes, federal and state income tax withholding, along with any state-mandated programs like this Colorado Paid Sick Leave.
To calculate taxes on gross pay, an employer uses a formula that subtracts all taxes and deductions from the gross pay amount. Learn how much you should withhold on your taxes.
Common issues that may arise during tax calculation include incorrect tax withholding and not considering voluntary pre-tax deductions. Understand why do I owe taxes this year.
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Tax breaks are not only for the rich. It is for everybody! You just have to take time and learn it.
What is net pay?
Net pay refers to the amount of money an employee takes home after all deductions and taxes have been taken out of their gross pay.
This is the money left over that you can spend, save, and invest.
Thus, you will be able to budget by paycheck like a pro!
How to calculate net pay?
Calculating net pay is crucial for accurate and compliant payroll management.
Here is a step-by-step guide on how to calculate net pay:
Determine the gross pay based on hours worked or salary divided by the number of pay periods in the year.
Subtract mandatory deductions, including health insurance premiums, federal, state, and local income taxes, payroll taxes, and court-ordered wage attachments.
Subtract voluntary deductions, such as employee contributions to a 401(k) or other retirement plan as well as any flexible spending account.
The resulting amount is the employee’s net pay.
Learn about annual net income.
What deductions are taken out of net pay?
Net pay refers to the amount of money an individual receives after taxes and other necessary deductions have been subtracted from their gross pay.
It is a crucial factor in determining an individual’s income, as it represents the actual amount of money they take home.
There are various deductions that are commonly taken out of net pay, including mandatory and voluntary deductions.
Mandatory deductions are made in accordance with the law, while voluntary deductions are ones that employees have the freedom to opt out of.
The mandatory deductions include:
Federal, state, and local income taxes
Social security taxes
Medicare taxes
Local state or municipal taxes
Other common voluntary deductions from gross pay include:
Health insurance premiums (if signed up on a company plan)
Retirement contributions
Health savings account contributions
Flexible spending account contributions
Dependent Care FSA
Is gross before or after taxes?
Gross pay is BEFORE taxes.
Gross pay is the amount earned before taxes and other deductions are taken out. Taxes are then calculated based on the gross pay amount and deducted to arrive at the net pay. This means that gross pay is always before taxes.
Understanding the difference between gross pay and net pay is important to effectively manage finances.
Gross pay may seem like a large amount, but it is important to consider the impact of taxes and other deductions on the final amount received.
What is the difference between gross pay and net pay?
Gross pay and net pay are two important terms that employers and employees should understand.
Gross pay refers to an employee’s total earnings before any deductions are taken out, while net pay is the amount an employee takes home after deductions such as taxes, benefits, and garnishments have been subtracted.
Here are some key differences between gross pay and net pay:
Gross pay includes all earnings, such as wages, salary, reimbursements, commissions, and bonuses, while net pay is the actual amount of the paycheck after deductions.
Employers are responsible for deducting necessary expenses from an employee’s paycheck and making payments to the appropriate accounts before issuing the check or depositing the net pay into the employee’s bank account.
Gross income determines an individual’s federal income tax bracket and borrowing capacity, while net pay presents disposable income.
When budgeting for the year, starting with gross wages requires subtracting the total of taxes and other deductions to compute the actual amount left to spend from each paycheck.
Understanding the difference between gross pay and net pay is crucial for effective budgeting and financial planning.
Employers must ensure proper employee taxes are collected and paid to the government, while employees need to know their take-home pay to manage their expenses.
How do gross pay and net pay work?
Gross pay and net pay are two important terms in the payroll world that employees should understand to manage their finances effectively.
Gross pay is the total amount of pay while net pay is the amount of money you have to spend each month.
Understanding the difference between gross and net pay can help employees and employers avoid confusion and manage their finances better.
What is better gross pay or net pay?
One term is not “better” than the other as they each have different meanings.
When you increase your gross pay, your net pay will rise as well.
Here is how to use gross pay to your advantage:
Provides a clear understanding of the employee’s total compensation
Helps employees plan for future expenses
Can be used as a basis for negotiating salary increases
Figure out the amount of taxes you are required to pay.
Here is how to use net pay to your advantage:
Reflects the employee’s actual take-home pay
Helps employees budget for their expenses
Provides a clear understanding of the impact of deductions on their pay
Can be difficult to compare with other job offers that list gross pay
Overall, net pay is better for employees as it reflects their actual take-home pay and helps them budget for their expenses.
However, it’s important for employees to understand both gross pay and net pay to make informed decisions about their compensation.
Why do you receive more gross pay than net pay in your paycheck?
Employees receive more gross pay than net pay in their paychecks because gross pay is the total amount of money an employee earns before any deductions are taken out.
This includes an employee’s salary, wages, commissions, and bonuses.
On the other hand, net pay is the actual amount of money an employee takes home after taxes, benefits, and other mandatory deductions have been subtracted from their gross pay. These deductions can include federal and state taxes, Social Security contributions, health insurance premiums, and retirement plan contributions.
Therefore, employees receive more gross pay than net pay.
Learn is social security disability income taxable.
FAQs
Overtime wages are included in gross pay when an employee works more than their regular hours and earns additional compensation for the extra hours worked.
This is the case for nonexempt employees who are entitled to overtime pay under federal or state law.
Net income is the take-home pay or the money that you earn on payday, which is why it may be best to focus on that number when creating a budget.
This number helps you determine how much you have to spend, save, or invest.
By tracking your expenses and using budgeting techniques like budgeting with percentages or the 50/30/20 rule, you can manage your finances effectively and make the most out of your net income.
Remember, creating a budget is about being realistic and disciplined with your spending habits, so make sure to adjust your budget accordingly as your income or expenses change.
The tax rates for gross pay depend on the specific taxes being withheld, such as federal income tax, Social Security tax, and Medicare tax.
Federal income tax rates vary depending on the employee’s income level and filing status, with higher earners generally paying a higher percentage of their gross pay in taxes. Click here for the latest federal income tax brackets.
Social Security tax is a flat rate of 6.2% for the employee on the first $$160,200 of gross pay earned. Your employer must match the same contribution. (source)
Medicare tax is a flat rate of 1.45% on all gross pay with the employer matching the same percentage, with an additional 0.9% tax for high earners. (source)
Employees need to understand their tax liability based on their gross pay to accurately calculate their net pay and avoid any surprises come tax time.
Now, you Know the Difference between Gross and Net Pay
Understanding deductions and their impact on net pay is crucial for employees to accurately budget and plan their finances.
Since you know the difference between gross and net pay, you can make sure that you are getting the right amount of money in your paycheck.
Be sure to check your pay stubs carefully to make sure that all of the deductions are correct. If you have any questions, be sure to ask your human resources department.
Know someone else that needs this, too? Then, please share!!
The other day, a dear friend of mine in her mid-20s told me she was saving up to buy a house in her 30s.
Her plan for amassing a down payment was to simply make a big withdrawal from her 401(k) when the time was right.
When I reminded her that the combined taxes and penalties could be as much as 30% (meaning she’d lose $15,000 out of a $50,000 withdrawal), she frowned.
“Well, I can’t just put the money in a savings account. Interest rates suck these days – the highest I’ve seen is 1%, and that doesn’t even cover inflation!”
She had a point. So why not invest the money, I asked?
“Well, I don’t know much about stocks, I don’t have the patience for real estate, and crypto scares me.”
That’s when I told her she was the perfect candidate for a lazy portfolio.
“A what? Look, buster…”
Once I backpedaled and explained the concept, she understood that I wasn’t calling her a bum, but rather, keying her into a lesser-known but highly effective investment strategy.
In this piece, I’m going to clue you in, too!
What’s Ahead:
What is a “lazy portfolio”?
A lazy portfolio is a bundle of stock market investments that requires little to no active maintenance by you. They’re most commonly made up of between one and five index funds, which are like big bundles of stocks, bonds, and other investments that you can buy just like shares of a regular stock (more on those later).
Aside from the occasional deposit or gentle asset reallocation, lazy portfolios don’t require any work.
You can buy $5,000 or $10,000 worth of index funds today and literally do nothing but watch them for 10 years. Doing this means you’ll have a successful lazy portfolio that will, hopefully, generate good rates of return.
But wait – don’t you have to be constantly buying and selling stocks to make money in the stock market?
Not at all – in fact, it’s better if you don’t. Unlike with day trading, you don’t mess with your lazy portfolio – through thick and thin, you let it sit and generate compound interest for years.
You can think of a lazy portfolio like a baby 401(k) that you design yourself and withdraw from much earlier.
Here’s why being “lazy” is a good thing
I love the movie The Wolf of Wall Street and the investing madhouse r/WallStreetBets, but both entities continue to perpetuate a common myth about the stock market: that you need to day trade to make money.
Nothing could be further from the truth.
In truth, multiple academic studies have found that the overwhelming majority of retail investors end up losing money.
“Don’t be misled with false claims of easy profits from day trading,” Burton Malkiel, Princeton professor and Chief Investment Officer of Wealthfront, told CNBC.
The harsh reality of investing in the stock market is that unless you’re a highly trained wealth manager with decades of experience and a team of analysts, you’re probably going to lose money day trading (and even they tend to struggle to pick winning stocks).
That’s why it’s better not to day trade, and be lazy instead. Rather than researching, buying, and selling stocks every day for the next 10 years, you’ll be better off buying index funds in the next 30 minutes and going about your day (or decade).
What are lazy portfolios made up of?
Lazy portfolios are most commonly made up of a small mix of index funds. Here’s a breakdown of what those are and why they’re so effective for passive investing.
Index funds: the building block of lazy portfolios
Index funds are a form of ETF, or exchange-traded fund, which are like big bundles of stock and other investable assets. When you buy shares of an ETF, you’re effectively buying up shares of dozens or hundreds of companies at once.
Each ETF must be individually approved by the SEC and have an appealing “theme” to it. For example, there are blockchain ETFs; ETFs that track the oil industry; and even quirky, unique ETFs that contain shares of companies trying to appeal to Millennials.
So, while stocks let you invest in a company, ETFs let you invest in an entire industry, concept, or strategy.
Now, what makes index funds as unique as ETFs is that they’re designed to reflect the performance of an entire market index, such as the S&P 500 or the U.S. bond market. To illustrate, here are two of the most popular index funds for building lazy portfolios:
The Vanguard Total Bond Market Index Fund (BND), which reflects the performance of the total U.S. bond market.
The Vanguard Total Stock Market ETF (VTI), which, big surprise, reflects the performance of the overall stock market.
So by buying shares of VTI and BND, you’re essentially investing in “the stock market” and “the bond market.” I know – the idea of investing in the whole stock market all at once sounds meta and maybe a little ridiculous, but bear with me.
Index funds are extremely popular for one simple reason
If you’re new to the stock market, you should know that pretty much every investor dabbles in index funds. Everyone from Warren Buffet to your grandparents has a stake in them – in fact, here’s how Mr. Buffet himself feels about index funds:
“In my view, for most people, the best thing to do is owning the S&P 500 index fund,” he told CNBC.
Index funds are popular among amateurs and pros alike for one simple reason: they reliably produce around 3% to 10% APY year after year. Index funds that track the S&P 500 are particularly high-performing, which is why many actively-managed mutual funds will say they “beat the S&P 500” as a benchmark for success.
Between 3% and 10% APY may not sound like a ton of interest but lemme tell ya, it’s plenty. Compound interest is a powerful ally, after all. Take a look at MU30’s Compound Interest calculator below to get a sense for yourself:
So to illustrate, let’s take a look at what happens if you opened a “one-fund lazy portfolio” today by buying $10,000 shares of the Vanguard S&P 500 ETF (VOO).
How much money would your lazy portfolio be worth in 10 years?
The answer is about $40,000. As I said, it literally pays to be lazy!
Now, most investors choose to put multiple index funds in their lazy portfolios for added diversity, but even one-fund lazy portfolios like 100% VOO are common and highly effective (clearly).
Why index funds are better than mutual funds or robo-advisors for building lazy portfolios
To start, mutual funds and robo-advisors are both excellent tools for smart investing. I’m not knocking them, but there’s a reason many investors don’t use them for lazy portfolios.
For the uninitiated, mutual funds are like ETFs, but they’re actively managed – there’s a team of professionals constantly mixing up the assets in the fund in an attempt to maximize returns for investors.
Similarly, robo-advisors are AI programs that take your money and build a portfolio for you, which, depending on your risk parameters, may contain a mix of ETFs, mutual funds, stocks, bonds, and more.
But lazy portfolio builders tend not to use either resource for one simple reason: fees.
Both mutual funds and robo-advisors will charge you a fee of between 0.25% and 2% to cover their costs of managing the fund – and since lazy portfolios are fire-and-forget, many passive investors would rather pick the index funds themselves and just avoid the fees.
To be clear, index funds and ETFs in general charge fees as well, but they’re typically less than a fifth of what a mutual fund charges (usually under 0.40%).
How to Build The Right Portfoilio – 3 popular lazy portfolios to consider
There’s a saying in the personal fitness community that there are 100,000 personal trainers with 100,000 “perfect” workout regimens.
The same applies to lazy portfolios in the investing world – there are (at least) 100,000 institutional investors with 100,000+ ideas on how to build the right lazy portfolio. After all, there’s a lot of flexibility in designing lazy portfolios – they may only contain a few index funds at most, but there are over 1,700 index funds to choose from!
Before you get overwhelmed, here are three solid examples to consider:
1. The basics: Rick Ferri’s Lazy Three Fund Portfolio
Author and CFA Rick Ferri literally wrote the book on index funds and publishes simple, yet effective, lazy portfolios for amateur investors to use. Here’s his bread-and-butter, the Lazy Three Fund Portfolio:
40% Vanguard Total Bond Market Index Fund (BND).
40% Vanguard Total Stock Market Index Fund (VTI).
20% Vanguard Total International Stock Index Fund (VXUS).
2. For a little more diversity: David Weliver’s Fidelity Portfolio
For a little added diversity, MU30’s very own David Weliver designed an everything-but-the-kitchen-sink portfolio touching four different markets:
20% iShares Core S&P Total US Stock Market (ITOT).
20% iShares S&P Small Cap 600 Value (IJS).
40% iShares Core MSCI Total International Stock (IXUS).
20% iShares Core US Aggregate Bond (AGG).
3. If it ain’t broke: Warren Buffet’s 90/10 Portfolio
For maximum gains and minimum effort (you know, the very essence of a lazy portfolio) you really can’t go wrong copying the best. Warren Buffet’s 90/10 portfolio is one of the highest-performing, yet simplest, lazy portfolios in existence.
But perhaps the best part of the 90/10 portfolio is that Buffet specifically designed it to stick it to fund managers who charge high management fees.
According to author and investor Rob Berger, Buffet claimed this fund…
“will be superior to those attained by most investors – whether pension funds, institutions, or individuals – who employ high-fee managers.”
And the portfolio has outperformed those actively managed funds, year after year. If you need any final endorsements, Buffet advised his trustees to place his and his wife’s money into this portfolio after his death.
90% Vanguard S&P 500 ETF (VOO).
10% Vanguard Short-Term Treasury Index Fund ETF (VGSH).
What platform should I use to build a lazy portfolio?
You can build and monitor a lazy portfolio on pretty much any trading platform that lets you buy ETFs, but some are better suited for hosting lazy portfolios than others.
Here are just two options:
M1
Unlike most popular trading apps, M1 is tailor-made for passive investing. It’s easy to buy a few ETFs, build a lazy portfolio, and monitor it over time without the temptation of selling or day trading. If you choose to lean on robo-advisor support, it’s also available.
But the best part about M1 is the community. There are thousands of passive investors on the M1 subreddit ready to lend their strategies and support.
Webull
Many investors like to keep their active and passive investing portfolios on separate apps so they don’t accidentally or impulsively sell their index fund holdings – but if you’re confident you can juggle both on one platform, check out Webull.
Unlike its rivals, Webull offers an advanced trading dashboard and detailed analytics for free. Plus, you’ll get complimentary shares just for joining, making it a great landing pad for short- and long-term investors.
Summary
Lazy portfolios are made up of a handful of index funds that you buy once and let sit and mature for at least 10 years. The healthy and consistent annual performance of index funds like Vanguard S&P 500 ETF (VOO) makes lazy portfolios a 100% viable investing strategy, one used by amateur and institutional investors alike.
If you’re looking for a way to invest money so you can buy a house or pay off your student loans in 10 years, don’t overthink it: get lazy.
Wells Fargo is stepping back from the multitrillion-dollar market for U.S. mortgages amid regulatory pressure and the impact of higher interest rates.
Instead of its previous goal of reaching as many Americans as possible, the company will now focus on home loans for existing bank and wealth management customers and borrowers in minority communities, CNBC has learned.
Dual factors of a lending market that has collapsed since the Federal Reserve began raising rates last year and questions about the long-term profitability of the business led to the decision, said consumer lending chief Kleber Santos. Regulators have heightened oversight of mortgage lending in the past decade, and Wells Fargo garnered further scrutiny after its 2016 fake accounts scandal.
“We are acutely aware of Wells Fargo’s history since 2016 and the work we need to do to restore public confidence,” Santos said in a phone interview. “As part of that review, we determined that our home-lending business was too large, both in terms of overall size and its scope.”
It’s the latest, and perhaps most significant, strategic shift that CEO Charlie Scharf has undertaken since joining Wells Fargo in late 2019. Mortgages are by far the biggest category of debt held by Americans, making up 71% of the $16.5 trillion in total household balances. Under Scharf’s predecessors, Wells Fargo took pride in its vast share in home loans — it was the country’s top lender as recently as 2019 when it had $201.8 billion in volume, according to industry newsletter Inside Mortgage Finance.
More like rivals
Now, as a result of this and other changes that Scharf is making, including pushing for more revenue from investment banking and credit cards, Wells Fargo will more closely resemble megabank rivals Bank of America and JPMorgan Chase. Both companies ceded mortgage share after the 2008 financial crisis.
The slimming down of those once-huge operations has implications for the U.S. mortgage market.
As banks stepped back from home loans after the disaster that was the early 2000s housing bubble, nonbank players including Rocket Mortgage quickly filled the void. But these newer players aren’t as closely regulated as the banks are, and industry critics say that could expose consumers to pitfalls. Today, Wells Fargo is the third-biggest mortgage lender after Rocket and United Wholesale Mortgage.
Third-party loans, servicing
As part of its retrenchment, Wells Fargo is also shuttering its correspondent business that buys loans made by third-party lenders and “significantly” shrinking its mortgage-servicing portfolio through asset sales, Santos said.
The correspondence channel is a significant pipeline of business for San Francisco-based Wells Fargo, one that became larger as overall loan activity shrank last year. In October, the bank said 42% of the $21.5 billion in loans it originated in the third quarter were correspondent loans.
The sale of mortgage-servicing rights to other industry players will take at least several quarters to complete, depending on market conditions, Santos said. Wells Fargo is the biggest U.S. mortgage servicer, which involves collecting payments from borrowers, with nearly $1 trillion in loans, or 7.3% of the market, as of the third quarter, according to data from Inside Mortgage Finance.
More layoffs
Altogether, the shift will result in a fresh round of layoffs for the bank’s mortgage operations, executives acknowledged, but they declined to quantify exactly how many jobs will be lost. Thousands of mortgage workers were terminated or voluntarily left the company last year as business declined.
The news shouldn’t be a complete surprise to investors or employees. Wells Fargo staff have speculated for months about changes coming after Scharf telegraphed his intentions several times in the past year. Bloomberg reported in August that the bank was considering paring back or halting correspondent lending.
“It’s very different today running a mortgage business inside a bank than it was 15 years ago,” Scharf told analysts in June. “We won’t be as large as we were historically” in the industry, he added.
Last changes?
Wells Fargo said it was investing $100 million toward its goal of minority homeownership and placing more mortgage consultants in branches located in minority communities.
“Our priority is to de-risk the place, to focus on serving our own customers and play the role that society expects us to play as it relates to the racial homeownership gap,” Santos said.
The mortgage shift marks what is potentially the last major business overhaul Scharf will undertake after splitting the bank’s operations into five divisions, bringing in 12 new operating committee members and creating a diversity segment.
In a phone interview, Scharf said that he didn’t anticipate making other major changes, with the caveat that the bank will need to adapt to evolving conditions.
“Given the quality of the five major businesses across the franchise, we think we’re positioned to compete against the very best out there and win, whether it’s banks, nonbanks or fintechs,” he said.
Inheriting a house with a mortgage requires making some decisions about what to do with the property. One option is to sell the home and pay off the loan with the sale proceeds. If you keep the home, you can assume the existing mortgage or refinance the loan. If you keep the home, you can live in it or rent it out. Your choices may be limited by the laws where you live. If the ownership of the house is split between one or more other heirs, you’ll have to consider their wishes. A financial advisor can help develop a plan to reach your personal financial goals.
Home Inheritance Basics
After someone passes away, a will can be used to bequeath property such as a private residence to a loved one. In the absence of a will, state laws may dictate where the property goes.
Often property or other assets inherited in this way goes through probate. When that happens, any debts owed by the estate must be paid off before assets are distributed to heirs. This means the mortgage has to be dealt with in some manner before the estate can be settled. State inheritance laws vary, so local requirements may limit your options.
Mortgage Inheritance Options
When you inherit a home with a mortgage, you’ll have two basic choices: sell it or keep it. Here are the pros and cons of each.
If you sell the home, you can use the proceeds to pay off the loan. If there is any money left after satisfying the lender, you can keep the cash as part of your inheritance.
Selling and paying off the loan relieves of you any responsibility to make future mortgage payments and keep up the property. And selling may be the only option if you share ownership of it with another beneficiary who wants cash. Taxes represent a potential complication. You may owe capital gains taxes on the money you receive after paying off the mortgage.
If you keep the home, you can assume the mortgage and start making payments. A federal law called the Garn-St. Germain Act generally requires lenders to let someone who has inherited a house assume an existing mortgage without getting credit approval or paying closing costs on a new loan. This can let you move into a place more desirable than you could buy on your own, in addition to possibly having pleasant memories associated with it.
Keeping the home gives you more options. You can live in the home if its location and other features meet your needs. Alternatively, you can rent it to tenants and, if the rent is more than the mortgage, collect passive income plus potential gains from price appreciation.
A major downside of keeping the property is that you have to make the mortgage payments, in addition to covering the taxes, insurance and other expenses. If you want to and can get approved for a new loan, however, you may be able to refinance the loan. Refinancing can let you take advantage of lower interest rates and possibly reduce the payments or, if you prefer, take cash out of the equity.
Potential Pitfalls
A lot of things can go right if you inherit a house with a mortgage. Some potential pitfalls to be aware of include these:
Negative Equity: If the house is underwater, meaning the outstanding balance of the mortgage is more than the property’s value, you won’t be able to sell it for enough to pay off the loan. Unless you can get the lender to agree to a short sale, you’ll still be responsible for the remaining balance.
Tax liability: Selling an inherited property and realizing a gain on it after settling the mortgage could create a tax obligation. The gain could even push you into a higher tax bracket so you’ll owe more on the other income you generate from work or investments.
Ownership costs: Repairs, maintenance, property taxes and homeowner association fees are some of the costs that can go with owning a home you inherit. Account for these costs before you decide what to do with the property.
Selling costs: Even if you sell the property, you’ll still have to pay a number of costs. These often include real estate agent commissions, closing costs and possibly repairs, among others. These costs will reduce the amount left after the transaction and can make the sale less appealing and worthwhile.
Picking the Right Approach
Deciding what to do when you’ve inherited a house with a mortgage involves balancing several considerations, including:
Your finances: Ask yourself whether you have the resources to keep making mortgage payments and maintaining the property.
Living situation: If you need a place to live and the inherited property suits your needs, it might make sense to assume the mortgage and move in.
Market factors: The real estate market in your area may suggest that it’s better to sell or rent than to keep the property and live in it.
Nostalgia: A family home could have pleasant memories or, for a variety of reasons, be someplace you’d prefer not to live.
Legal issues: If multiple heirs are involved, they might disagree about what to do with the property.
The Bottom Line
Inheriting a house with a mortgage presents options that need careful consideration. Selling the home and paying off the loan can relieve you of mortgage responsibilities. Alternatively, you can keep the home, assume the mortgage and either live in it or rent it out for passive income. State laws and the wishes of other heirs may limit your choices. Your finances, living situation, market conditions, emotions and legal issues will be part of the final decision.
Tips for Investing
Consider talking to a financial advisor before making any decisions about what to do with a home you have inherited. Finding a financial advisor doesn’t need to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have free introductory calls with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
If you decide to sell an inherited home and pocket the cash, you may wonder what would happen if you invested the funds. SmartAsset’s Investment Return & Growth Calculator can give you an answer. Input the amount you’ll invest, how much and how often you’ll make additional contributions to your initial capital, the anticipated rate of return and your investment time horizon in years. The calculator will tell you what your portfolio will likely be worth at the end of that period.
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.
This week, the Joint Center For Housing Studies at Harvard University released this year’s “State of the Nation’s Housing.” The report is damning for those who are trying to expand opportunities for homeownership and presents an incredible challenge for policymakers, stating, “As the cost of homeownership rises, the prospect dims for eliminating racial homeownership gaps.”
The report highlights how the lack of affordable housing supply combined with high interest rates are pricing out those on the margin, especially focusing on minorities.
The impact as highlighted in the report is stark, stating that in the past year, “millions of renters were priced out of homeownership.”
Consider this: When looking at new units being built for housing, from single-family detached, condo, 2-4, 5-20, 20+, and manufactured housing, the new supply of housing being created today is a shadow of years past. In fact, the current state of new units being created has never been this low looking all the way back to the early 1930s.
This is truly disgraceful for a nation that recognizes the value of homeownership. So far we are learning that talk is cheap, but the real work is much harder.
Vice President Kamala Harris gave a speech in Maryland in February about the importance of homeownership in which she shared her own story about growing up. “For most of my childhood, our family rented. And then there was this one afternoon where my mother — our mother — called my sister Maya and me in. We were in high school at the time. And she called us into the kitchen, and she showed us this photograph. And it was a picture of a one-story, dark grey house with a shingled roof and a beautiful lawn. And mommy, which is what we called her, was telling us that after her years of saving, she was ready to become a homeowner,” said the vice president.
The opportunity to live in their own home was a life-changing event.
The time for speech-making and haphazard pricing policies from the government lending sources needs to stop. This problem is so severe, and getting worse, that it demands presidential focus, policy leadership, and agency coordination if we are ever really going to change this retreat from opportunity that we are seeing today.
There is a desperate need to provide executive leadership and focus on housing in America today and time is running out. But we have a model for this. In 2009, when I was in the Obama administration, the “Housing Team” was formed. It consisted of “principals” and “deputies.”
The principals were all cabinet-level direct reports to the president. They included people like Larry Summers (NEC Director), Shaun Donovan (HUD Secretary), Tim Geithner (Treasury Secretary), and Austan Goolsbee (CEA), and so many others. And meetings would often be complemented with the addition of the OMB director, the chief of staff to the president, and a variety of senior staff members.
The deputies reported to the Principals and included the assistant secretaries of the respective agencies that were relevant at the time and other senior staff. I was part of this group, but it included many key government leaders today, including Michael Barr, now vice chair of the Federal Reserve for supervision, Raphael Bostic, president of the Federal Reserve Bank of Atlanta, Jim Parrott of the Urban Institute, and so many others.
The deputies met several times per week, especially a core group of us, to discuss efforts to resolve the housing crisis that threatened the nation at that time. I remember times when a few of us would get a call from Secretary Geithner’s office that he wanted to meet. We would drop whatever we were doing and head to Treasury to discuss the current concern or issue.
Preparation of policy to determine what and how to present recommendations to the president took a great deal of time and focus. And all of this was about housing and mortgage policy. And we executed — we implemented.
My point? In the Obama administration, housing issues were a top executive priority all the way up to the president of the United States. Issues were not decided upon randomly or independently. We worked hard to decide on the best way to address housing and mortgage challenges in a macro, multi-agency environment.
Rather than what appears to be a somewhat arbitrary and likely less effective set of policy moves as we are seeing today this administration should provide the level of focus in a similar way that the housing team operated during the Obama administration.
This year’s study from Harvard is an almost indictment to the state of housing policy and its effectiveness. And yet the problems facing this nation are clear and include:
1. Setting the priority for this nation with urgency that housing is a bedrock for family security and inter-generational wealth-building in this nation that has been eroding with the wealth gap only widening and with the low housing supply and lack of implementable policy ideas to move the dial.
2. The need to rebuild neighborhoods to support new homeownership opportunities, particularly in urban centers such as those that exist in the “Rust Belt” inner cities.
3. Meaningful solutions to improve affordability with creative financing vehicles to include concepts such as equity sharing, scalable down payment assistance, and interest rate subsidies (buy-downs) to make payments affordable.
4. Making affordable housing supply a priority and transitioning from talking points in speeches to executable plans that actually build units at a record pace.
5. A national focus on financial literacy training for young people, especially those living in underserved communities to prepare them for a future of homeownership.
This lack of effectiveness of policy today is not intentional. But I strongly recommend that this administration embrace some key business leaders to join them in this effort. While we have some great policy leaders who have hovered inside the beltway of Washington D.C. for decades recommending housing policy to political leadership, it was always clear to me during my time working in D.C. that having an administration that also recruited those who understood the industry and how it operated versus only having those who had thoughtful ideas about creating change for consumers was critically important.
Between skill sets and executive focus from the top, this administration is ignoring an ever-widening dearth of opportunity for those that do not have access to homeownership today. Focus, priority, skill sets: the administration needs to show that it is serious about housing – the challenges today are as large and looming as this nation has seen in decades. This is a real crisis and the JCHS at Harvard just made this crystal clear.
David Stevens has held various positions in real estate finance, including serving as senior vice president of single family at Freddie Mac, executive vice president at Wells Fargo Home Mortgage, assistant secretary of Housing and FHA Commissioner, and CEO of the Mortgage Bankers Association.
This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners.
To contact the author of this story: Dave Stevens at [email protected]
To contact the editor responsible for this story: Sarah Wheeler at [email protected]
In a city whose name is shorthand for exclusivity and wealth, the future of a planned ultra-opulent hotel will soon be decided by the most democratic of means: an election.
Beverly Hills voters will decide Tuesday whether to rescind the City Council’s approval of a hotel project helmed by French multibillionaire Bernard Arnault and LVMH Moet Hennessy Louis Vuitton, his luxury conglomerate.
To some, the battle over the Beverly Hills Cheval Blanc hotel is a David and Goliath story, pitting a small group of residents concerned about overdevelopment and a union advocating for affordable housing against the world’s richest person.
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Others see it as a tale of an outside group — in this case Unite Here Local 11 — mucking around in the city’s business and potentially depriving Beverly Hills of hundreds of millions of dollars in tax revenue over the next three decades. The politically powerful union, which represents hospitality workers across the region, collected the local signatures necessary to force the issue to a vote.
Regardless, all parties seem to agree that the result will have lasting implications for a 5.7-square-mile city where roughly 31,000 residents bed down at night and many more people staff homes, offices, stores, restaurants and hotels during the day.
Beverly Hills already has 16 hotels, seven of which are considered luxury, according to the city. But the Cheval Blanc would aim to be the brightest star in a galaxy of sparkle, promising an exceptionally high-end experience for its wealthy clientele.
It would be the first North American property for LVMH’s relatively new chain, which currently has five hotels, including a ski-in and ski-out chalet in the French Alps and a St. Barts hotel where the entire property is lightly scented with a custom Guerlain fragrance.
“I think it’s fair to say that this is the only city in the world that could have made this deal,” Henry Finkelstein, the outside lawyer who represented Beverly Hills in the development negotiations, said during a November City Council meeting. “If you look at virtually any other place, including in the metro Los Angeles area in particular, they would be paying subsidies. And here we are exacting premiums.”
The Beverly Hills Cheval Blanc, which was approved by the City Council and the City Planning Commission last year after a lengthy public process, would also reshape the edge of one of the most famous retail strips in the world.
When most people think of Rodeo Drive, they tend to focus on a specific portion of the roughly two-mile street: a three-block business district that doubles as an international symbol of luxury retail, where the streets are lined with palm trees and vast sums of capital.
The hotel — replete with a members-only club, restaurants, retail and a spa — would rise at the northernmost of those three blocks, abutting Little Santa Monica Boulevard.
After raising numerous objections during the planning process, Unite Here Local 11 began gathering signatures to challenge the project shortly after the development agreement and zoning amendment were approved in November.
Triggering a referendum election in Beverly Hills requires the signatures of 10% of registered voters, meaning that just 2,193 signatures were necessary at the time.
Representatives of the union argue that cities like Beverly Hills often change development rules to make it easier to build commercial luxury projects, but don’t always do this for housing. They also vociferously object to the fact that the development agreement does not specifically earmark any money for affordable housing.
Unite Here Local 11 carries tremendous political heft nine miles east, at Los Angeles City Hall, where it has pushed legislation and where one of its own, former organizer Hugo Soto-Martínez, now sits on the City Council. The union local also has been instrumental in recent policies in West Hollywood, but its influence is relatively nascent at Beverly Hills City Hall.
The city’s development agreement with LVMH dictates that the company contribute $26 million to the city’s general fund, in addition to $2 million for art and cultural programs. The city would also receive an additional 5% surcharge over its regular 14% transient occupancy tax.
The proposed hotel complex, designed by star architect Peter Marino, would replace a number of buildings, including the Richard Meier-designed site formerly occupied by the Paley Center for Media on North Beverly Drive around the corner from Rodeo. The hotel would vary from four stories to a partial ninth-story penthouse, taller than current zoning rules allow, according to the final environmental impact report.
According to the city’s analysis, the hotel is expected to funnel about $725 million into city coffers over the next 30 years, with the bulk of that coming from the combined 19% bed tax.
It’s money that Councilmember Lili Bosse, who served as mayor when the project came before the council last year, and other proponents see as key to securing the long-term future of Beverly Hills as a place synonymous with the good life.
“I think what people need to understand is the quality of life of Beverly Hills, in terms of our three-minute response time of our Police Department … the best public schools, the best quality of life, being a safe city, a beautiful city — that revenue mostly comes from the business community,” Bosse said.
But Councilmember John Mirisch, an iconoclastic former film executive and fourth-generation Beverly Hills resident who cast the lone “no” vote against the project, hardly sees the Cheval Blanc as a good deal for the city.
“We’re effectively doubling the value of their land,” Mirisch said, referring to the zoning amendment approved by the council, which will allow the developer to more than double the square footage that it would otherwise be able to build on the site. “And the city negotiated, from my perspective, a measly $28 million.”
Mirisch said he voted against the project because of his critiques of the deal, along with concerns that the hotel was too large for the area.
Since then, Mirisch said, he has been appalled by the amount of money LVMH has spent on the special election campaign.
The LVMH-funded pro-hotel campaign had spent nearly $2.8 million by early May, according to campaign statements filed with the city clerk.
Among the opponents, Local 11’s political action committee spent nearly $86,000 during the same period, and Residents Against Overdevelopment — a grassroots group led by former City Council candidate Darian Bojeaux — spent a little more than $16,000.
LVMH will reimburse Beverly Hills for the cost of the special election, estimated to be about $870,000, according to the city.
Boosters see the relationship between Cheval Blanc and the street that will house it as symbiotic, with hotel guests drawn by the location doubling as an ideal client base for the neighboring luxury stores. Money will beget money, with a small fraction of every transaction going directly into city coffers.
Proponents also say that the sumptuous spectacle of Cheval Blanc would anchor the northern end of the retail corridor, guarding against the tired fate that’s befallen several other once-hot shopping districts. (LVMH’s investments on Rodeo go far beyond just the Cheval Blanc site: The conglomerate has 15 stores on the street or broader Business Triangle and owns several of those properties, according to a spokesperson.)
But Bojeaux, a semiretired attorney, said she fears that the size of the hotel could dramatically change her “village” for the worse.
Still, the 36-year Beverly Hills resident said she had all but given up on organizing against the Cheval Blanc when Unite Here began collecting signatures for the referendum, saying, “We probably wouldn’t have been able to do it on our own.”
“Whatever their interests were, it was really wonderful for a lot of us, because they organized the referendum petition,” Bojeaux said, characterizing the referendum election as “like something out of my dreams.”
Housing — particularly the ability to find affordable housing near workplaces — is the No. 1 issue for the union and its members, said Unite Here Local 11 Co-President Kurt Petersen.
“Beverly Hills is like the worst of the worst because there’s no affordable housing nearby,” Petersen said, adding that Local 11 has more than a thousand members who work in Beverly Hills, but very few are able to live in the city.
There are 157 deed-restricted affordable units in the city, but all but seven of those units are part of a dedicated senior housing facility, according to Deputy City Manager Keith Sterling, who said an additional 50 units are in the pipeline.
Beverly Hills voters will be asked two ballot questions: whether they approve of the zoning amendment that would allow the hotel to be constructed, and whether they approve of the development agreement.
Should either measure fail to pass, the project would be unable to move forward.
Anish Melwani, chairman and chief executive of LVMH’s North American subsidiary, said that if the voters reverse the project’s approvals, the company has no plans to bring it back before the council after already going through a rigorous, years-long process.
“We have no interest in building a hotel in a community that doesn’t want us to be there. Vox populi, vox dei, right?” Melwani said, invoking a Latin phrase that means the voice of the people is the voice of God, and saying the company would revert the properties to retail.
Inside: Are you looking for ways to make money quickly and easily? This guide has a variety of tips and tricks to help you make 1000 a day.
Making money is something that everyone is interested in. And why wouldn’t we be? Money gives us the ability to buy the things we want, travel, and live a lifestyle that most people can only dream of.
But what if I told you that it was possible to make $1000 a day? Would you believe me?
Well, in this blog post, I’m going to show you some of the best ways to make money really fast.
So if you’re looking to make some quick cash or consistent income, then this is the post for you!
In this post, I will share with your some of the best ways that I know of to make money $1k a day on a regular basis.
So if you’re ready to learn how to make 1000 a day, then let’s get started!
Is it possible to make $1000 a day?
Yes, it is possible to make $1000 a day.
In fact, this is something I regularly do (see picture to prove it).
However, achieving this goal requires commitment, hard work, and a solid plan. Factors that contribute to achieving this goal include finding a method that works for you, sticking with it, and putting in the necessary effort.
Additionally, having a unique skill set and interest in a particular method can increase the chances of success.
How to make $1000 a day?
Making $1000 a day is an appealing goal for many people, whether it’s a one-time need or a consistent source of income. Fortunately, there are several ways to achieve this goal.
Here are the top ways to make $1000 a day:
Start a high-paying job: Some jobs pay over $300k a year, and while they may require advanced degrees and education, there are also a few that don’t require a college degree.
Offer high-value services: You can offer services such as pet-sitting, tutoring, design work, or writing to make money.
Start a business: You can start a business that generates $1000 a day, such as a digital marketing agency, freelancing, or a service-based business.
Sell items you no longer need: You can sell items on eBay, Craigslist, or other online marketplaces to make quick cash.
Let your money work for you: You can invest in stocks and shares, real estate, or property to earn upwards of $1000 a day.
While each method has its own advantages and disadvantages, with the right strategy and dedication, making $1000 a day is achievable.
So, get started today and see how much money you can make.
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Best ways to make 1000 a day
We’ve compiled a list of our favorite ways to make money really fast – specifically $1k a day!
Many times, you will have to invest 100 to make 1000 a day.
If you’re looking for ways to make some extra cash, or even earn a full-time income, this post is for you.
1. Freelance Writing
Freelance writing is a great way to make extra money or even replace your full-time job. There are various types of content that freelance writers can specialize in, such as long-form content or shorter direct-response copywriting.
With freelance writing, you can earn over $.50 or even $1 per word, which means that a 1,000-word article could net you $1,000 quickly.
To start, you need to establish a portfolio of your work to pitch to new clients. This portfolio should include links to any relevant articles or copy you’ve written that’s related to the client you’re pitching. If you don’t have a portfolio yet, you might need to do some work at lower rates to get your foot in the door.
Even if you don’t consider yourself a writer, don’t strike it off the list just yet. With the right approach and mindset, anyone can become a successful freelance writer.
2. Crafting
Crafting offers many benefits beyond just making extra cash. It allows for flexibility in your schedule, creativity in your work, and the ability to turn a hobby into a lucrative business.
If you are creative and have a talent for creating handmade items, then starting a crafting business is the perfect way to monetize that skill by doing something you enjoy. There are plenty of crafts to choose from and you may even become an instructor!
The most difficult side is you are trading your time for money and it may be difficult to scale.
3. Day Trading Stocks
Day trading stocks is a high-risk, high-reward investment strategy that involves buying and selling stocks within a single trading day. It requires a great deal of knowledge, discipline, and risk management to be successful.
However, there is a large group of us who have made the $1000 in a day club.
Successful day traders use a combination of technical analysis, risk management, and discipline to make profitable trades.
This choice requires discipline, a proper trading education, knowledge, and risk management.
Trade and Travel with Teri Ijeoma is a popular course that investors can take to learn about trading stocks and options and begin their journey to making $1,000 a day.
4. Trading Options
Trading options can be a lucrative way for seasoned investors to make money.
With options, investors can speculate on different stocks with only a fraction of the investment capital needed to buy the stocks outright.
Investors who are familiar with investing in individual stocks can take the next step in the process by trading options. While options may seem exotic on the surface, they are a common tool used by seasoned investors and are especially valuable during volatile activity in the stock market.
To trade options successfully, investors need research skills, investing knowledge, discipline, and patience.
Trading options can be a high-risk option, especially for those who lack expertise in the area. However, it can be extremely lucrative for those who have experience and knowledge in the stock market.
Investors should consider taking courses to learn more about trading options.
5. Youtube
YouTube can be a great source of income for those who are willing to put in the effort to create quality content. It offers multiple ways to generate revenue, including sponsorships, affiliate marketing, and Google Adsense.
With the right approach, it’s possible to make $1000 or more per day on YouTube.
Remember, success on YouTube takes time and hard work, but the potential rewards are significant.
6. Selling on Amazon
Selling products on Amazon can be a highly profitable business opportunity.
Amazon FBA, or Fulfilled by Amazon, is a business model where you send your inventory to Amazon warehouses and they handle the rest, including storage, shipping, customer service, and returns.
This makes it a great option for digital nomads and those looking to scale their business quickly.
With an average profit margin of $20 per sale, it’s possible to make $1,000 per day by selling just 5 units per day of 10 different products.
7. Sell Printables Online
Selling printables online has become a popular way to make passive income.
With the rise of digital products, creators can sell anything from coloring pages to budget spreadsheets on platforms like Etsy. Thousands of creators make a living selling digital products, and it’s easy to see why.
Learn how these sellers got started.
The key is to pick a topic you’re knowledgeable in and passionate about, so you can create high-quality products that people will want to buy.
8. Dropshipping
Dropshipping is one of the best ways to make $1000 a day, especially for those looking to start a business with minimal initial investment.
This business model allows entrepreneurs to sell products to customers without ever holding a single piece of stock.
Dropshipping is a viable and profitable business model that can generate high profits without the hassle of managing inventory. With the right niche, platform, supplier, and marketing strategy, entrepreneurs can make $1000 a day or more with dropshipping.
9. Consulting
Consulting is one of the best ways to make $1000 a day!
It’s a lucrative career option that allows you to provide expert advice to clients and help them solve problems.
The first step to becoming a consultant is to determine your area of expertise. This could be anything from personal finance to marketing to human resources. Your expertise should be something that you have significant knowledge and experience in.
One of the most important aspects of becoming a consultant is building your network. This includes reaching out to potential clients, attending networking events, and connecting with other professionals in your field.
10. Become a Virtual Assistant
Being a virtual assistant can be a great way to make money while setting your own hours.
As a virtual assistant with no experience, you can work from home and typically on your own schedule. You can choose to work part-time or full-time based on your availability and the workload of your clients.
The tasks that you are asked to perform as a virtual assistant can vary widely, but commonly needed skills include administration, accounting and bookkeeping, marketing, communications, customer service, and many other capacities.
You don’t need special skills or training for this job, as most clients will bring you up to speed on what they need to do. However, having organizational, communication, and time-management skills can be helpful.
Check out the checklist to get started as a virtual assistant.
11. Side Hustles
Side hustles are a great way to earn extra income and supplement your regular income. With a little effort and some creativity, you can make up to $1000 a day with certain side hustles.
Here are some of the best side hustles that can help you achieve this goal:
Deliver food: You can make good money by delivering food with these apps. You can choose your own hours and work as much or as little as you want. DoorDash is a great option.
Drive with ridesharing apps like Uber and Lyft: If you have a car and some free time, you can earn money by driving people around. You can make up to $1000 a day, depending on how much you work.
Pet sit or walk dogs: If you love animals, you can make money by pet sitting or dog walking through Rover.com. You can earn up to $50 per day, depending on the services you offer.
Babysit or tutor: If you have experience with children or are good at a particular subject, you can offer your services as a babysitter or tutor through Care.com. You can make up to $50 per hour, depending on your qualifications.
Side hustles are a great way to make extra money and reach your financial goals.
12. Start a Business
Starting a business is one of the most effective ways to make 1000 dollars a day on a regular basis. However, it requires careful planning and execution to succeed.
The first step is to research the market and identify a profitable business idea and build it to profitability.
Challenges may arise, such as competition, financial setbacks, and marketing difficulties, but with persistence and determination, you can overcome them and achieve financial success.
The potential for significant financial gain from starting a successful business is immense, making it a worthwhile endeavor for anyone willing to put in the effort.
13. Yard Work
Yard work is an excellent way to make $1000 a day, especially if you have some extra time and don’t mind getting dirty.
If you want to get up and running quickly, there is nothing better than a local side hustle to earn extra money such as mowing lawns in your neighborhood.
Mowing lawns is not only a great side hustle for adults but also for teens. For an average size lot, you could expect to make at least $35. If you could line up a few lawns each weekend, you could easily make an extra $1000 each month.
Landscaping, leave pickup, and bush trimming are all simple tasks that you can complete quickly if you have the right equipment. You can choose to set an hourly rate or get paid for the entire job, depending on the task.
You may have to start hiring crews in order to hit $1k a day.
14. AirBnb or VRBO Rentals
Airbnb or VRBO are popular platforms for renting out your property to travelers.
Many successful hosts have earned $1000 or more per day because they have accumulated more than one property.
One tip for success is to garner excellent reviews that people want to come back time and time again.
15. Affiliate Marketing
Affiliate marketing is a lucrative way to make money online and has the potential to earn you $1000 a day.
This works well for influencers who have a reach of thousands of people. Another way is creating a niche website that focuses on a specific product or market segment.
It’s essential to promote products effectively to generate revenue. Successful affiliate marketers have earned six figures or more per year.
16. Flip Products or Retail Arbitrage
Retail arbitrage is a popular business model that can help you make $1,000 per day or more. The premise is simple – buy or find things cheap and resell them for a higher price.
This is a great example of how to flip money.
To be successful, you’ll need to have an eye for the right product and do product research to choose products that will sell.
Here is a list of the most popular items to flip.
17. Pickup Services
Pickup services refer to businesses that provide transportation and delivery services for goods, furniture, or other items. These services are in high demand, especially in urban areas where people are always on the move and need help with moving heavy or bulky items.
Starting a pickup service business requires some equipment, such as a truck or van, and marketing strategies to attract customers.
So, if you are looking for a new side hustle or business opportunity, consider pickup services as a viable option.
18. Casino Gambling
While casino gambling is not a recommended way to make $1000 a day, it is still worth mentioning as a potential option.
However, it is important to note that gambling should always be done responsibly and within one’s means.
If you are considering casino gambling as a way to make quick money, it is essential to understand the most profitable games and their strategies. Here is an ordered list of the best casino games to play to make money:
Blackjack: This game has one of the lowest house edges, making it a popular choice for professional gamblers. The objective of the game is to beat the dealer’s hand without going over 21. The key to winning at blackjack is to use basic strategy, which involves making the mathematically correct decisions based on the dealer’s upcard and your own hand.
Craps: This game has a low house edge and offers a variety of betting options. The objective of the game is to predict the outcome of a roll or series of rolls of the dice. To win at craps, it is essential to understand the different bets and their odds and to follow a betting strategy that suits your playing style.
Baccarat: This game is easy to learn and has a low house edge. The objective of the game is to bet on the hand that will have a total of 9 or closer to 9. The key to winning at baccarat is to understand the different bets and their odds and to follow a betting strategy that suits your playing style.
When playing these games, it is important to practice good bankroll management by setting a budget for yourself and sticking to it. It is also crucial to know when to quit to avoid losing money.
A winning streak can lead to making $1000 a day, but it is important to be cautious and not get carried away.
19. Freelance Graphic Design
Graphic designers create visual concepts using computer software or by hand to communicate ideas that inspire, inform, and captivate consumers. They work on various projects such as branding, marketing materials, website design, and more.
Freelance graphic design is a lucrative option because there is always a demand for graphic design services, and businesses are willing to pay top dollar for high-quality designs.
By building a strong portfolio, staying up-to-date with the latest design trends, and providing excellent service to your clients, you can earn a substantial income as a freelance graphic designer.
20. Make Money Flipping Items
Flea market flipping is a great way to make some extra cash on the side or even turn it into a full-time business. It involves buying items for a low price and reselling them for a profit.
One couple, Rob and Melissa Stephenson, have become full-time flea market flippers and even host their own website, Flea Market Flipper, to help others find success in the venture. They offer several courses to help individuals turn this into a serious side hustle or even a full-time business earning six figures.
Learning from successful flea market flippers like Stephenson’s can be a great way to get started. They have the skills and knowledge to help individuals find valuable items, network, and use social media and photography to their advantage.
21. Photography
Photography is a lucrative career option that has the potential to generate high income or as a side hustle.
There are different types of photography that one can explore to make money, including wedding photography, family photography, real estate photography, and stock photography.
By building a strong portfolio, networking, finding clients, investing in high-quality equipment, and constantly improving your skills, you can become a successful photographer and make a great income. Don’t underestimate your potential in this field.
22. Rental Income
Passive income through rental properties is a great way to generate consistent long-term income. Here are the steps to follow in order to make $1000 a day through rent income:
Find a suitable property: Look for properties that are priced reasonably, require minimal renovations, and are located in areas with high rental demand. You are likely to start making $1000 a month.
However, the earning potential is dependent on the ability to scale multiple properties, keep them occupied, and increase monthly income streams.
Investing in rental properties can be a lucrative and rewarding experience for those willing to put in the effort.
23. Amazon Merch
Amazon Merch is a platform that allows you to create and sell your own merchandise on Amazon. It’s an excellent way to make money because Amazon handles all of the heavy lifting, such as printing, shipping, and customer service.
Using Amazon Merch, you can sell a variety of products from t-shirts to phone cases, and best of all, you don’t need to invest in inventory or equipment.
All you need to do is create the designs.
Successful Amazon Merch sellers include graphic designers, artists, and entrepreneurs who have created unique and appealing designs that resonate with their target audience.
24. Creative Skills like Video Editing
Creative skills can be a valuable asset when it comes to generating income. Video editing is another skill that can be monetized.
With the rise of video content, businesses, and individuals are always in need of skilled video editors. One can offer video editing services for YouTube creators, and businesses, or even edit personal videos for clients.
Freelance platforms like Upwork and Fiverr are great places to find video editing jobs.
25. Fashion Design
Fashion design is one of the most lucrative ways to make money, and it’s an industry that’s always in demand.
Whether you’re interested in starting your own fashion label, working for a fashion house, or becoming a freelance designer, there are plenty of opportunities to make a living in this field.
Marketing yourself is also key to success in fashion design. Use social media platforms like Instagram and Pinterest to showcase your work and build a following.
Networking is also an important part of building a successful career in fashion design. You must stay up-to-date on industry trends, make valuable connections, and potentially land new clients or job opportunities.
Create a website or blog where you can share your designs, offer fashion tips, and connect with potential clients.
Pay attention to industry trends, stay creative and original, and focus on developing your skills and building your brand. Then, there are plenty of opportunities to make a living in this exciting and dynamic industry.
26. Start a Blog
Many people say blogging is dead. But, it’s not.
Starting a blog can be a great way to share your interests, skills, and experiences with others while also creating a new income stream for yourself. The flexibility of blogging allows you to turn your current job or passion into a successful blog.
However, starting a blog can be challenging, and it requires technical knowledge, writing ability, social media skills, and topical expertise.
Once you have started your blog, it’s essential to treat it like a business and monetize your content.
27. Self-Storage Business
Self-storage business is a lucrative venture that involves renting out storage units to customers who need extra space for their belongings. These businesses are in high demand, especially in urban areas where living spaces are often small and cramped.
In fact, the self-storage business is expected to bloom to $64.17 billion by 2026.
Starting a self-storage business can be a profitable venture if done correctly.
28. Invest in Cryptocurrencies
Cryptocurrencies have gained popularity as a potential source of significant income. Bitcoin, Ethereum, and Litecoin are some of the best cryptocurrencies to invest in.
To invest in cryptocurrencies, one must first set up a digital wallet and choose a reputable exchange such as Coinbase or Bitstamp.
It is important to research the market and understand the volatility of cryptocurrency before investing. While the potential for high returns exists, it is important to approach cryptocurrency investing with caution.
29. Invest in Real Estate
Investing in real estate can be a lucrative way of making money.
To make $1000 a day through real estate investing, there are several steps you can take.
First, set aside a few hundred dollars each month to invest in real estate over time.
Second, consider the different types of real estate investments available, such as rental properties, commercial properties, and fix-and-flip properties. Each investment type has its own advantages and disadvantages, so it’s important to research and choose the one that fits your financial goals.
Third, consider investing in real estate investment trusts (REITs) or crowdfunding platforms like Fundrise, which allow you to invest in real estate without purchasing a property.
Remember that investing in real estate carries a degree of risk, so it’s important to do your research and seek advice from successful real estate investors.
30. Make Money on the Internet
Making money online has become a popular option for those looking to earn a substantial income. The internet provides a wealth of opportunities for anyone with an internet connection and a bit of creativity.
You need to learn how to make money online for beginners.
There are so many options today and you never have to leave your house!
When it comes to making $1000 a day online, it’s important to acknowledge that it’s not a quick or easy process. It takes time and effort to build a successful online business or generate significant income through freelance work or other online opportunities.
However, with dedication and hard work, it is possible to achieve your financial goals.
How to make $1,000 really fast?
If you’re in a financial bind and need to make $1,000 quickly, there are several options available to you.
Here are the top ways to make $1,000 a day quickly:
Sell items on eBay or Craigslist: If you have items that you no longer need, consider selling them online. This could include clothes, furniture, or electronics. This is a quick and easy way to make money fast.
Offer freelance services: You can offer services such as tutoring, design work, or writing. If you have a specific skill or talent, you can find customers online who are willing to pay for your services.
Do odd jobs for people in your community: You can offer to mow lawns, rake leaves, or shovel snow for a fee. This is a great way to make money quickly, especially if you live in an area with a lot of homeowners.
Participate in paid focus groups or surveys: This is a great way to make money quickly without leaving your home. Companies are always looking for feedback on their products and services, and they are willing to pay for it.
Rent out a room in your home on Airbnb: If you have a spare room in your home, you can rent it out on Airbnb and make money quickly. This is a great option if you live in a popular tourist destination.
Manage social media accounts: Many businesses need help managing their social media accounts, and they are willing to pay for them. If you have experience with social media, this could be a great way to make money quickly.
Start a blog: If you have a passion for writing or a specific topic, you can start a blog and sell advertising space or products/services to your readers. This takes some time to build up, but it can be a lucrative way to make money in the long run.
Sell handmade crafts or goods online: If you’re crafty, you can make items and sell them online, such as on Etsy. This is a great way to turn your hobby into a money-making opportunity.
Borrow money from friends or family: This is not an ideal option, but if you’re in a bind and need money quickly, consider asking for a loan from someone you trust.
Pawn items for cash: This is a last resort option, but if you have items of value, you can pawn them for cash quickly.
Don’t be afraid to try different methods and see what works best for you.
This is the perfect side hustle if you don’t have much time, experience, or money.
Many earn over $10,000 in a year selling printables on Etsy. Learn how to get started by watching this free workshop.
If you’ve ever wanted to make a full-time income while working from home, you’re in the right place!
This intensive training combines thousands of hours of research, years of experience in growing a virtual assistant business, and the power of a coach who has helped thousands of students launch and grow their own business from scratch.
FAQ
Passive income is a form of earnings that is generated without active involvement.
It is a way to make money while you sleep and can provide financial stability and independence.
This is one of three types of income and the one you want to strive towards building.
Ultimately, the best side hustle for making $1000 a day is one that meets your needs and interests while providing a good return on investment.
Here are several factors to consider before choosing the best option.
Think about your skills, interests, and availability. If you have a full-time job, you may want to consider a side hustle that allows you to work flexible hours.
Next, consider the earning potential of the side hustle you are considering. Some side hustles pay more than others, and you want to choose one that will give you the highest return on investment.
Additionally, consider the start-up costs associated with the side hustle. Some require significant investment, such as buying a car for ride-sharing apps or purchasing an online course.
Most importantly, choose a side hustle that aligns with your passion and expertise. This will make the work more enjoyable and increase your chances of success.
There are many ways to make money from your expertise.
You can start a consulting business, offer services such as coaching or speaking, create and sell information products, or build a following and sell advertising or sponsorships. The possibilities are endless.
What’s important is that you start somewhere and then take action to turn your expertise into cash.
Ready to Make 1000 in a Day?
There are many ways to make money quickly and easily.
The best way to make money fast is to find a way that best suits your skills and interests.
Whether it’s graphic design, content creation, photography, or trading stocks, there are plenty of opportunities to turn your passions into profit. So, start honing your skills and explore the endless possibilities of the gig economy.
Learning how to make quick money in one day is possible. You just need to be determined and disciplined.
So, which method do you choose on how to make $1k a day?
Know someone else that needs this, too? Then, please share!!
New Mexico’s rich, fascinating history makes it popular with both visitors and new residents. Whether you work for the federal government or one of the state’s many small businesses, banking services are an essential part of life. That’s why we’ve pulled together a list of the best banks in New Mexico to help you find the right bank to fit your needs.
10 Best Banks in New Mexico
From online and mobile banking to traditional banks with branches across the country, there’s a bit of everything in New Mexico. It’s important to take a look at the closest bank branch to your house, but you should also pay attention to which banks charge monthly maintenance fees to make sure you’re getting the best deal. The below list can help you kick off your search for the best bank.
1. U.S. Bank
With its vast array of branches and ATMs, U.S. Bank is a major player in the banking sector of the state.
Of particular interest to residents of New Mexico is the Bank Smartly® Checking account. This account provides the opportunity to gain up to $300, provided certain criteria are met. Specifically, within a span of 90 days from creating your new Bank Smartly® Checking account online, you are required to:
Successfully process two or more direct deposits that cumulatively total $6,000 or more
Sign up for either online banking or the U.S. Bank Mobile App
This promotional offer, valid until July 11, 2023, comes with particular terms and conditions. U.S. Bank is an FDIC member.
In addition to these enticing offers, U.S. Bank provides a broad spectrum of financial services, which include checking and savings accounts, loans, investments, and more. These services can be easily accessed through their user-friendly online and mobile banking platforms.
Fees:
$6.95 monthly service fee (waived with direct deposits or balance minimums)
No-fee overdraft protection transfers from a linked deposit account
Balance requirements:
$25 opening deposit
$1,500 minimum daily balance or $1,000 in direct deposits to waive service fee
ATMs:
Fee-free at U.S. Bank, MoneyPass, and Cardtronics locations nationwide
$2.50 charge per transaction at out-of-network ATMs
Interest on balance:
Up to 4.50% APY on money market accounts
Up to 4.75% APY on CDs
Additional perks:
Extensive mobile banking features
Money management tools available
2. New Mexico Bank & Trust
New Mexico Bank & Trust is a traditional bank with locations across New Mexico. This free checking account has no minimum balance, but if you frequently access cash, you’ll want to consider upgrading to a New Mexico Bank & Trust higher-tier account.
With direct deposit, both the Platinum and Signature Series checking accounts refund up to $20 in non-New Mexico Bank & Trust ATM fees each month. Currently, you can earn a $300 bonus on a new free checking account as long as you receive at least two monthly $300 direct deposits.
Fees:
No monthly service fees
$35 overdraft fee
Balance requirements:
$25 minimum deposit to open
No minimum daily balance requirements
ATMs:
Fee-free at New Mexico Bank & Trust ATMs
No out-of-network ATM fees
Interest on balance:
Up to 1.25% APY on savings account
Up to 4.75% APY on CDs
0.10% APY on money market savings account
Additional perks:
Up to $600 bonus with new checking account
New Mexico Bank & Trust cash-back rewards credit card comes with no annual fee
3. Chime
If online banking is how you get banking services, Chime is worth considering. The basic checking account is fee-free and includes all the features you need. Although Chime doesn’t feature the in-person service you get with brick-and-mortar banks, you can withdraw cash for free at more than 60,000 ATMs nationwide.
Fees:
No monthly maintenance fees
$15 overdraft fee
Balance requirements:
No minimum deposit to open
No minimum daily balance required
ATMs:
Fee-free at 60,000 ATMs nationwide
$2.50 for each out-of-network ATM transaction
Interest on balance:
2.00% APY on savings accounts
Additional perks:
Secured credit card helps you build credit with no credit check required
SpotMe covers up to $200 in overdrafts
4. Bank of Albuquerque
If you live in Albuquerque, the Bank of Albuquerque has bank branches throughout the area. You’ll find a fee-free checking account with nationwide access to cash at more than 32,000 locations in the MoneyPass ATM network.
One standout feature of this traditional bank is its youth account. Designed for those under the age of 18, this account features a Visa debit card, online and mobile banking tools (for ages 13+ only), and a savings account that pays 0.25% APY.
Fees:
No monthly maintenance fees
$34.50 overdraft fee
Balance requirements:
$50 minimum deposit to open
No minimum balance requirements
ATMs:
Fee-free at Bank of Albuquerque ATMs
Fee-free at 32,000+ MoneyPass locations nationwide
$2 fee for each out-of-network ATM transaction
Interest on balance:
Up to 0.20% APY on savings account
Up to 4.85% APY on CDs
Up to 1.50% APY on money market accounts
Additional perks:
Same-day credit for deposits at any Bank of Albuquerque ATM
Wealth management services available
5. GO2bank
Another online bank available to New Mexico residents is GO2bank. For those who regularly deal with cash, GO2bank is a great option. You can not only withdraw money at any Allpoint ATM, but you can deposit cash at more than 90,000 retailers nationwide. GO2bank will waive monthly fees on your checking account as long as you set up a qualifying direct deposit.
Fees:
$5 monthly fee (waived with requirements)
$15 overdraft fee
Balance requirements:
No minimum deposit to open
No minimum balance required
ATMs:
Fee-free at Allpoint ATMs nationwide
$3 fee for each out-of-network ATM withdrawal
Interest on balance:
4.50% APY on savings accounts
Additional perks:
Deposit cash at 90,000+ partner retailers nationwide
Up to 7% cash back on gift card purchases
6. WaFd
If you’re looking for the expanded services of a national bank with the personal touch of a local bank, Washington Federal Bank is worth considering. With bank branches across New Mexico, WaFd Bank makes an effort to connect with each community it serves. But if you’re in the market for a new CD, WaFd is currently offering up to 5.00% APY on 3-month CDs and up to 4.45% APY on 7-month CDs.
Fees:
No monthly service charges
$30 overdraft fee
Balance requirements:
$25 minimum opening deposit
No minimum balance required
ATMs:
Fee-free at WaFd Bank ATMs
Fee-free at 40,000+ MoneyPass ATMs nationwide
Interest on balance:
0.10% APY on savings accounts
Up to 5.00% APY on CDs
Up to 2.00% APY on money market accounts
Additional perks:
Three debit card style options available
Budgeting tools available in mobile banking app
7. Wells Fargo
With bank branches in 33 states and the District of Columbia, Wells Fargo is a national bank with plenty to offer. Currently, you can open a free checking account as long as you maintain a $500 daily balance, receive at least $500 in direct deposits each month, are 17-24 years old, or have a Wells Fargo campus ATM card linked to your checking account.
New checking customers can earn $300 by receiving at least $1,000 in qualifying deposits in the first 90 days.
Fees:
$10 monthly fee (waived with requirements)
$35 overdraft fee
Balance requirements:
$25 minimum opening deposit
No minimum balance required
ATMs:
Fee-free at Wells Fargo ATMs nationwide
$2.50 out-of-network ATM fee
Interest on balance:
Up to 2.51% APY on savings accounts
Up to 4.51% APY on CDs
Additional perks:
$300 bonus on new checking accounts
Robust mobile banking services
8. Century Bank
If you prefer banks in New Mexico with a long history in the state, consider Century Bank. The bank has served New Mexico since 1887. Century Bank has a wealth of financial products, including personal loans, business accounts, and retirement savings options. Currently, Century Bank is offering higher-than average rates on CDs, including 7-month CDs that earn interest at a rate of 5.00% APY.
Fees:
No monthly fees
Balance requirements:
$25 opening deposit
No minimum balance required
ATMs:
Fee-free at Century Bank ATMs
Fee-free at MoneyPass ATMs nationwide
$2 fee for each out-of-network ATM withdrawal
Interest on balance:
Up to 0.03% APY on savings accounts
Up to 5.00% APY on CDs
Up to 3.50% APY on money market accounts
Additional perks:
Multiple account options for small businesses
Great rates on personal and auto loans
9. Bank of America
One of the best traditional banks is Bank of America, which has branches throughout New Mexico. What sets Bank of America apart from other banks is its top-rated mobile banking options. You’ll get features like budgeting tools, debit card lock/unlock, and custom alerts. Frequent travelers appreciate Bank of America’s nationwide network of branches and ATMs.
Fees:
$12 monthly service fee (waived with requirements)
$10 overdraft fee
Balance requirements:
$100 minimum opening deposit
No minimum balance required
ATMs:
Fee-free at 15,000+ Bank of America ATMs nationwide
$5 out-of-network ATM fee
Interest on balance:
Up to 0.04% APY on savings accounts
Up to 4.75% APY on CDs
Additional perks:
Generous credit card bonuses and rewards
Wealth management services available
10. Nusenda Credit Union
Credit unions offer benefits like low interest rates on loans and high interest rates on savings accounts. With Nusenda Credit Union, you can not only get service at a bank branch bearing the credit union’s name, but at credit unions across the country that are part of the Co-Op Network. This network also includes more than 30,000 ATMs nationwide.
Fees:
$5 monthly service fee (waived with requirements)
$29 overdraft fee
ATMs:
Fee-free at Nusenda Credit Union ATMs
Fee-free at 30,000+ Co-Op ATMs nationwide
Interest on balance:
Up to 4.50% APY on CDs
Additional perks:
More flexible membership requirements than other credit unions
Competitive rates on loans
How We Picked: Methodology
It can be tough to choose the best bank in New Mexico since needs vary from one person to the next. That’s why we made every attempt to choose a variety of banks, from online banking providers to local banks and credit unions.
We also looked at the banking products each bank offers to make sure you’re getting the best variety. Here are a few criteria we considered when putting together this list of banks.
Interest Rates
A bank keeps your money safe, but it’s also a way to build on what you already have. If you’re going to save money, why not earn a little interest on that balance?
In building the above list, we looked at which savings account paid the most, finding that often the best bank for that was an online-only bank. We also looked at which bank offers the best rates on CD accounts and found many local banks had the best deal on those.
We also paid attention to the interest rates that banks charge on loans and credit cards. Smaller financial institutions like credit unions often compete with large banks by offering reduced rates on these products as an account holder perk.
Large Branch Network
You might never need in-person help with your account, but when you do, it’s important to be able to find a branch. You don’t need a large bank to get a national network of branches, though. Many online banks and credit unions are part of a partner agreement that offers branches across the country, both in major cities and more rural areas.
Large ATM Network
While you’re looking into coverage areas, withdrawing money should also be a priority. Make sure your bank has an ATM network that will cover you even when you’re away from home. Online or mobile banking can take care of services like online bill pay and mobile check deposit, but mobile services can’t handle banking transactions like cash deposits and withdrawals.
New Mexico residents have no shortage of banking options, from big banks to small community banks. Whether your priority is to earn interest on your balance or enjoy low fees on your checking account, you can easily find a bank that fits your needs.