Tag: Main

Terrazzo flooring has stood the test of time, enduring for centuries as a durable and versatile surface.

To arrive in Venice for the first time is to be transported into a completely unique world—a city of gothic buildings floating on water, where grand palaces and churches stand above the ubiquitous canals, and an array of building materials is on permanent display. From the dusty-rose clay bricks that can be found on the exteriors of houses, palaces and churches, to the dazzling white Istrian stone that typifies many of the grander Venetian establishments, and the marble mosaics that adorn surfaces throughout the city, Venice is a city of contrasting textures and styles—and this is something that is reflected in one of its most famous exports: terrazzo flooring.

You might know it as that speckly concrete from government buildings of the 1970s and ’80s, but this hybrid flooring material was actually created in the 15th century. Venetian mosaic workers would gather up offcuts of marble and repurpose them, combining them with clay and other materials to use for flooring in their own residences. The workers would grind the stone down for an even walking surface, but without being coated, the color of the aggregate flecks would not emerge; terrazzo was merely a convenient and utilitarian choice for flooring.

The flooring style gained popularity when workers refined the process of installation by creating a grinding stone called a galeto to even out the surface, and discovering that a coating of goat milk would bring out the color and sheen of the stone. Since then, technology has advanced (and coatings other than goat milk have been developed), and terrazzo has established itself as a durable and attractive flooring material, first in Italy, and then across the globe.

In palaces and buildings throughout Venice, terrazzo is omnipresent, having been chosen for its aesthetic appeal and durability. In the centuries since its invention, the surface has made its way around the world, and recently, it has enjoyed a resurgence as a style statement in modern architecture and design.

David Filippi, Vice President of American Terrazzo Co., has a long family history with terrazzo, beginning with his great-grandfather Antonio’s emigration from Italy to the United States. Antonio Filippi set out for the United States from a small town called Casasola, not far from Venice, in the early 1900s. After an arduous journey and years of hardship as a foreigner in a strange land, Antonio established what is now American Terrazzo Co.

“Like so many Italian immigrants, my great grandfather left behind a wife and young child to board a ship and set sail for the country of his dreams,” Filippi says. “Some seven years after arriving in America, he called for his young family to join him and eventually secured a piece of property where he built his shop and home next door. Relatives and friends from the ‘old country’ joined my great-grandfather, and together they earned a reputation for performing the finest in terrazzo and masonry work.”

Terrazzo flooring has stood the test of time, enduring for centuries as a durable and versatile surface. image 1

Filippi’s family is dedicated to the continuation of the business, which is a testament to Italian ingenuity and Filippi’s great-grandfather’s hard work. “Over the years, terrazzo has had its ups and downs,” Filippi says. “Today, it is very popular.

Historically, you would have seen terrazzo mostly in airports and hospitals, and in the lobbies of large commercial buildings. Now, it has expanded to retail stores, universities and high-end homes.” As with many design and architectural trends, terrazzo has come in and out of style, but one of the enduring benefits of the material—and what makes architects and designers come back to it again and again—is that it is durable and versatile.

“Generally, of all building types, airports have the most foot traffic,” Filippi says. “One of the main reasons that terrazzo is so widely used in airports is that it is extremely durable.” It’s because of this that, even though the initial financial outlay for terrazzo might be greater than a simpler form of flooring, terrazzo is considered to be the most cost-effective flooring that there is—because it will never wear out. Fifty years from installation, a terrazzo floor will look as fresh as if it were installed yesterday.

Another major benefit of terrazzo flooring is its uniqueness, and the ability to customize its look to suit any setting. “It has many options,” Filippi says. “There is a wide spectrum of available colors, as well as many aggregate sizes and colors.” In recent years, terrazzo has been embraced as a wildly versatile material that can be used as a refined surface in professional buildings; for a fun and colorful addition to a retail space; and as a personality-laden feature in a beautiful home.

Because terrazzo is poured during installation, a fluid, unbroken surface can be achieved, providing continuity and connection between spaces in your home, which most other flooring and wall surfaces are unable to achieve. And designers are now experimenting with precast terrazzo, opening up a whole new channel for design experimentation—it’s no longer limited to just flooring and walls.

“Over the years, we have fabricated terrazzo sinks, bathtubs, tables, chairs and even sculptures,” Filippi says. “Terrazzo can be placed anywhere and everywhere. It has no limitations.” This expansion from building surfaces to accessories and decor is indicative of the strength of terrazzo in today’s design palette. Modern design outlets jumped on board, with Anthropologie selling a range of terrazzo-inspired bath accessories, West Elm doing a collection of melamine terrazzo-style dishes, and multitudes of furniture and fabric designers incorporating the material’s aesthetic into their products.

If you’re considering terrazzo for your home, there are a few important things to keep in mind. Consider your time line, because terrazzo is still laid by hand, and is considered artistic and artisanal work. If you’re going with traditional cementitious terrazzo, be prepared for it to take more than a month to install. Epoxy, on the other hand, can usually be completed within one to two weeks.

Cost varies, starting from $30 per square foot for installation. If you’re looking for intricate designs or installations in challenging areas, the cost will increase. But remember, the long-term maintenance costs of terrazzo are virtually nonexistent compared with other types of flooring.

Lastly, when you’re choosing the color and aggregates for your terrazzo features, make sure that you’re making a choice based on personal preference rather than trend, because this surface, with its virtual indestructibility, will be with you permanently.

The post Terrazzo flooring has stood the test of time, enduring for centuries as a durable and versatile surface. first appeared on Century 21®.

Source: century21.com

Turkey, Money, COVID, and More

I’m thankful for you, reading this article. But I’m also thankful for turkey and potatoes and pecan pie. And in the spirit of Thanksgiving dinner, I’d like to serve you with a smorgasbord today. The appetizer comes from the engineering world. The main course brings in investing. And for dessert, I added a quick calculator to consider the risk of COVID at your Thanksgiving dinner.

Low and Slow

I’m a mechanical engineer. In the engineering sub-field of heat transfer, there’s an important quantity called the Biot number. The Biot (bee-yo) number compares the way heat enters a body at its surface against the way that heat travels through the body.

That might not make sense to you. That’s why the Biot number needs to be explained using food!

Why do we cook pizzas at 900ºF for 3 minutes? Great question, especially when compared against cooking turkeys at 350ºF for multiple hours.

Pizza has a small Biot number. It has a large surface area compared to its volume—it’s very thin. Any energy added to the pizza at its surface will quickly propagate to the center of the pie.

But turkey has a large Biot number. It’s roughly spherical, so its ratio of volume to surface area is vastly larger than a pizza’s. It takes time for energy added at the surface of the turkey to propagate to the center of the turkey.

Food pizza cooking GIF on GIFER - by Aragami

And then there’s the matter of mass. This is separate from the Biot number, but equally important. Cooking a 20-pound turkey will take longer than cooking a 1-pound pizza. That’s easily understood. Heavy stuff takes longer to warm up.

Potatoes and Pumpkin Bread

Why do I have to bake pumpkin bread at 325ºF for an hour? Why can’t I bake it for 450ºF for 40 minutes? Or in a pizza oven, at 900ºF for a few minutes?

I don’t recommend it, but it’s an experiment you could conduct yourself. You’d find that you’d overload the exterior of the loaf with heat before giving that heat enough time to propagate to the center of the loaf. The outside burns. The inside remains raw. And everyone’s sad at the lack of pumpkin bread.

Pumpkin bread GIFs - Get the best gif on GIFER

The more cubic or round or dense a food is, the more low-and-slow the cooking or baking will be. This applies to loaves of bread, cakes and pies, or dense cuts of meat. A meat smoker might run at 225ºF all day.

If a food is flat or thin or narrow, it can probably be cooked high and fast. Pizzas, bacon, stir fries all apply. Lots of surface area and lightweight.

But what about mashed potatoes? We only boil potatoes at 212ºF degrees for 15 minutes. That’s way colder and shorter than a turkey or pie. And potatoes are reasonably dense. What gives?

The answer is that water transfers heat more effectively than air. That’s why 60ºF air feels temperate to your skin, but 60ºF degree water is frigid. That’s why you can stick you bare hand in a 400ºF oven (for a few seconds), but sticking your hand in boiling water (212ºF) will scald you. Water moves heat better than air.

Snoop Dogg Adds Mayonnaise To His Mashed Potatoes And I'm Actually OK With It

And moving or flowing fluid transfers heat better than stagnant fluid. This is why cold winter air has a “wind chill” factor—the blowing cold air removes more heat from your skin that stagnant cold air. And those Thanksgiving potatoes are surrounded by boiling and roiling water. They cook quickly.

Invest Like a Turkey

Enough engineering. Let’s bring it back to money.

You can approach investing like baking a pizza. Or you can invest like you would cook a turkey. I recommend the turkey version.

Turkey Cooking GIFs | Tenor

You can (try to) pick stocks that will double overnight. Or you could explore exotic asset classes with promises of “going to the moon.” You can even borrow money—or leverage—to further extend your investments. This is investing like a pizzamaker. It’ll be hot and fast and potentially over in five minutes.

But sadly, historical context provides ample data suggesting that pizza investing is not effective. Hand-picking stocks has more risk than reward. Short-term flips are closer to gambling than to investing.

That’s why you should invest like a turkey. Low and slow and long-term. Check on your progress occasionally. Adjust your timeline if needed. A half-cooked turkey does not resemble your final product, just like a half-funded portfolio can’t support your retirement. But mostly, stay on plan and trust the process. Plan for the long-term and let time take care of the rest.

Use last week’s retirement calculator to plan for the long-term…starting with your savings goal for 2021.

A Plate Full of Stuffing

And speaking of Thanksgiving, ensure that your investing portfolio resembles a Thanksgiving plate: diverse and well-balanced.

Could you imagine eating 1500 calories worth of gravy? Well, maybe. But it would be accompanied by plenty of turkey, stuffing, cranberry sauce and potatoes, too. You can even fit in a slice of something exotic, like pecan pie.

Thanksgiving Dinner GIFs | Tenor

Similarly, a well-balanced investment portfolio reduces your risk from being over-exposed to any single asset type. I described my personal choices in my “How I Invest” article. But there are many ways to skin a turkey, and many ways to diversify a portfolio.

Will Your Turkey Get COVID?

Everyone seems to be all huffy about gathering for Thanksgiving. So-called “experts” are saying the holiday will act as a super-spreading event for COVID. First, Starbucks cancelled Christmas. And now China is cancelling Thanksgiving? What’s up with that?!

Don’t be an ignoramus. For most of the United States, a gathering of 10 or more people has a higher than 50% chance to contain at least person who is positive for COVID. Re-read that sentence.

If you’re going to gather for Thanksgiving, it’s helpful to understand the risk involved. For some, the risk is small and reasonable. For others, the probability of COVID being at your gathering will easily surpass a coin flip.

The following calculator is a simple, first-order estimate. It provides an example of how probabilities work. There’s more explanation after the calculator.

#fbuilder input[type=text],
#fbuilder textarea,
#fbuilder select
border: 2px solid #3b7d04;
.specialclass select border: 2px solid #00f !important;

form_structure_1=[["form_identifier":"","name":"fieldname2","shortlabel":"","index":0,"ftype":"fnumber","userhelp":"How many people will be at your Thanksgiving? ...Or at any gathering you're interested in looking in to","userhelpTooltip":false,"tooltipIcon":false,"csslayout":"","title":"People at Thanksgiving","predefined":"10","predefinedClick":false,"required":true,"exclude":false,"readonly":false,"size":"small","thousandSeparator":"","decimalSymbol":".","min":"0","max":"150","formatDynamically":false,"dformat":"digits","formats":["digits","number","percent"],"fBuild":,"parent":"","form_identifier":"","name":"fieldname3","shortlabel":"","index":1,"ftype":"fnumber","userhelp":"What is your state's, region's, or community's positive infection rate? You can look it up here: https://covidactnow.org/?s=1360346","userhelpTooltip":false,"tooltipIcon":false,"csslayout":"","title":"Your Local Positive Infection Rate (Percentage)","predefined":"4.4","predefinedClick":false,"required":true,"exclude":false,"readonly":false,"size":"small","thousandSeparator":"","decimalSymbol":".","min":"0","max":"100","formatDynamically":false,"dformat":"number","formats":["digits","number","percent"],"fBuild":,"parent":"","dependencies":["rule":"","complex":false,"fields":[""]],"form_identifier":"","name":"fieldname11","shortlabel":"","index":2,"ftype":"fCalculated","userhelp":"Based on your inputs, this is the probability that at least one person with COVID-19 will be at your gathering","userhelpTooltip":false,"tooltipIcon":false,"csslayout":"","title":"Probability That COVID Will Be at Your Thanksgiving","predefined":"","required":false,"exclude":false,"size":"medium","eq":"ROUND(100-100*POW((1-fieldname3/100),fieldname2),0.1)","suffix":"%","prefix":"","decimalsymbol":".","groupingsymbol":"","readonly":true,"noEvalIfManual":true,"formatDynamically":false,"hidefield":false,"fBuild":,"parent":""],"0":"title":"Turkey and COVID: Probability of COVID at your gathering","description":"A quick calculator to help you understand the risk of coronavirus at your Thanksgiving dinner","formlayout":"top_aligned","formtemplate":"","evalequations":1,"evalequationsevent":"2","autocomplete":1,"persistence":0,"customstyles":"#fbuilder input[type=text],n#fbuilder textarea,n#fbuilder select nborder: 2px solid #3b7d04;nnn.specialclass select border: 2px solid #00f !important;","formid":"cp_calculatedfieldsf_pform_1"];

I’m not an epidemiologist or virologist. Please take this math at face value. If an area has a positive infection rate P, then then odds of a person being negative is 1-P. The odds that all N people at your gathering are negative is (1-P)^N. Therefore, the odds of at least one positive case at your Thanksgiving gathering is 1-(1-P)^N.

I recommend looking up your area’s positive case rate here—COVID ActNow. Now, a large positive test rate is just as indicative of insufficient testing as it is of high infection rates. If you only have enough test supplies to test the sickest people, then you’re likely to have a higher rate of positive infections. More reading here from a guy named Johns Hopkins.

So feel free to play around with the infection rate. The true infection rate of an area is likely lower than what’s reported on COVID ActNow.

Keep Grandma healthy!

Thanks Again

Thanks a ton for reading the Best Interest. I try to stuff this blog full of fun and helpful information, and having wonderful readers is the gravy on top.

I wish you a happy and healthy Thanksgiving. And don’t burn the pumpkin bread!

If you enjoyed this article and want to read more, I’d suggest checking out my Archive or Subscribing to get future articles emailed to your inbox.

This article—just like every other—is supported by readers like you.

Source: bestinterest.blog

The 10 Best Vanguard Index Funds to Buy

If you don’t have the time, the money or the expertise to buy individual stocks or bonds to build your investment portfolio, then consider the best Vanguard index funds.

Index funds are a good way to start saving and investing for retirement.

One reason is because the chance of making more money investing in index funds is far higher than it is investing in individual stocks, especially if you are a beginner investor.

*TOP CIT BANK PROMOTIONS*
PROMOTIONAL LINK OFFER REVIEW
CIT Bank Money Market 1.00% APY Review
CIT Bank Savings Builder 0.95% APY Review
CIT Bank CDs 0.75% APY 1 Year CD Term Review
CIT Bank No Penalty CD 0.75% APY Review

As the master of value investing, Warren Buffett, once said “a low-cost index fund is the most sensible equity investment for the great majority of investors.” “By periodically investing in an index fund, the know-nothing investor can actually out-perform most investment professionals.”

But how do you find and choose among the best Vanguard index funds? Don’t worry, GrowthRapidly can help make your choice easier.

On this page:

Index funds vs mutual funds

Index funds are one of the easiest and cheapest ways to invest in the stock market. As opposed to a mutual fund, which is actively managed by a fund manager, index funds are passive.

This means that index funds attempt to track the performance of a particular index, such as the Standard & Poor’s 500 index of 500 large U.S. company stocks or the CRSP US Small Cap Index.

So, when you invest in the Vanguard S&P 500 Index fund (which we’ll discuss in more detail below), you’re essentially buying a piece of the 500 largest publicly traded US companies.

Index funds don’t jump around; they stayed invested in the market. Again, they simply track the performance of the stock index.

Related: What is a mutual fund?

Whereas with a mutual fund, fund managers might make mistake by not being invested when the market goes up or by being too aggressive when the market goes down.

That doesn’t mean mutual funds are not good investments. In fact, they are great investment vehicles. But when it comes to long term investments, index funds are the best. However, these 8 mutual funds are great for long term investing.

Like a mutual fund, you can buy an index fund through a fund company like Vanguard.

The main advantage of a Vanguard index fund is its low-cost, which is usually less than 1% annually. Another benefit of Vanguard index funds is that they are diversified. Like mutual funds, they invest to multiple companies, thus spreading out the risk.

One of the downside with index funds, however, is that they won’t outperform the market they track.

Get Matched With 3 Fiduciary Financial Advisors
Investing in the stock market can be intimidating and overwhelming. We recommend speaking with a financial advisor. The SmartAsset’s free matching tool will pair you with up to 3 financial advisors in your area.

Here’s how it works:

1. Answer these few easy questions about your current financial situation

2. In just under one minute, the tool will match you with up to three financial advisors based on your need.

3. Review the financial advisors profiles, interview them either by phone or in person, and choose the one that suits your’ needs.

Get Started Now>>>

Why choosing the best Vanguard index funds to invest your money?

There are thousands of fund companies (such as Fidelity, Schwab, JP Morgan) where you can buy index funds. Different companies have different experiences and expertise with different type of funds. So, it can be difficult to know which one is the best. 

Here are four main factors to consider when looking to buy the best index funds for long term investments: 

  • The company: Is it a reputable and well-known company with a great track record?
  • Fees: Another major factor to consider in picking a fund company is its cost. Excessive fees have a negative effect on your investment return. These fees are deducted from your index fund’s balance every year. Other fees can apply as well. So always find a company with a low fee. 
  • Reasonable minimum investment: Will you be able to invest with as little as $1000?
  • Performance: Although past performance does not guarantee future performance, look for a fund company with a strong record of performing well against its competitors over the short and long term as well.

If you are an intelligent investor who has done his or her research, you will conclude that among the various fund companies out there, Vanguard comes out on top.

Jack Bogle, who recently died and who founded the firm Vanguard Group, invented the index fund in 1976.

Today, Vanguard is one of the World’s biggest and the best investment funds with approximately $5.6 trillion in assets.

Moreover, Vanguard has the best index funds because of their ability to keep their operating fees so low. Vanguard has all types of stock and bond index funds and their fees are the lowest.

SAVINGS ACCOUNTCIT Savings Builder – Earn 0.85% APY. Here’s how it works: Make at least a $100 minimum deposit every month. Or Maintain a minimum balance of $25k. Member FDIC. Click Here to Learn More.

The advantages and disadvantages of Vanguard Index funds. 

Pros of the best vanguard index funds

By now, you know that an index fund is well diversified. But you might know these two other pros that make Vanguard index funds the best:

  • Good return: Vanguard index funds generally delivers a good return because their expenses are relatively low. The average Vanguard Index fund has an expense ratio of 0.2% per year (compare that to the average index fund operating expenses of 1.4% per year.) A 1.2% difference can be a significant difference on your return. Operating expenses are also lower because ongoing research is not needed to identify companies to invest in.
  • Tax-friendly: not only Vanguard index funds have lower operating expenses, which help increase your returns, they are also tax-friendlier when you invest outside of retirement accounts. Because a mutual fund is actively managed, they tend to jump around by selling and buying stocks more frequently. By doing that, it increases a fund’s taxable capital gains distribution. Whereas an index fund stays invested and not trying to jump around.

Cons of the best Vanguard index funds

Despite their low costs and tax-friendliness, their minimum investment while seem reasonable, might not be for the beginner investor with little money to invest.

Most Vanguard index funds requires a $3,000 minimum initial investment. Retirement account investors who plan on starting with less might be at a disadvantage.

Moreover, Vanguard has an overwhelming number of index funds to choose from. That can make it tedious for an investor to decide which ones are the best. But that’s why we have compiled the top Vanguard index funds for you.

The 10 Best Vanguard Index Funds to Buy in August 2020: 

Now that you know what an index fund is and why investing Vanguard index funds makes good sense, in no particular order, below are 10 of the best Vanguard index funds to add to your investment portfolio.

Vanguard S&P 500 Index Admiral (VFIAX)

Of all the Vanguard index funds in this list, the Vanguard S&P index fund, which tracks the Standard & Poor’s 500, is perhaps the best Vanguard index fund. One reason is that the fund invest in 500 of largest U.S. companies with a few a midsize stocks.

Some of the big name stocks in this index fund includes Apple (AAPL), Microsoft (MSFT), and Google/Alphabet (GOOGL). Another reason to select this fund is that the cost is pretty low, (0.04%) if not the lowest of all the index funds.

Index fund cost is an important factor in choosing an index fund to invest in, because fees are deducted from your balance and thus reduced your rate of returns. The last reason to invest in the VFIAX is because the initial minimum investment is also low ($3,000).

So if you’re looking for an index fund that maintains low operating expenses while enjoying a good rate of return, the Vanguard S&P 500 Index Admiral is for you.

Vanguard Developed Market Stock Index Admiral

For diversification, you should consider in your investment portfolio some index funds that invests in foreign countries. International funds are diversified because they invest in countries around the world. If so, the Vanguard Developed Market Stock Index Admiral fund (VTMGX) is a fine choice.

This Vanguard index fund tracks the performance of the FTSE Developed All Cap ex US Index. It invests in large cap stocks in 24 developed countries. Some of its several blue-chip multinational companies include the Toyota Motor Corp (7203), Royal Dutch Shell (RDS.A.), Nestle SA (NESN), making it one of the best Vanguard index funds.

This index fund has a minimum investment of $3,000 and an expense ratio of 0.07%.

Vanguard Emerging Markets Stock Index Admiral 

While Vanguard index funds invested in U.S. stocks tend to perform better than Vanguard index funds invested in emerging markets, emerging markets in Latin America, Asia, and Eastern Europe should not be overlooked.

If you don’t mind investing in emerging economies, consider checking out the Vanguard Emerging Markets Stock Index Admiral (VEMAX), which is currently one of the best Vanguard index funds to buy now.

In fact, some of the big name foreign companies included in this index fund are Alibaba Group Holding Ltd ADR (BABA), Tencent Holdings Ltd (TCEHY), Taiwan Semiconductor Manufacturing Co Ltd (2330.TW), and China Construction Bank Corp Class H (00939).

This investment attempts to track the performance of the FTSE Emerging Markets All Cap China Inclusion Index.

One of the downside of this index fund is that it has an expense ratio of 0.14%, but it still has a low minimum initial investment of $3,000.

Vanguard Total Stock Market Index (VTSAX)

The Vanguard Total Stock Market Index (VTSAX) is one of the best Vanguard index funds. It captures the total market.

That means it gives investors broad exposure to the entire U.S. equity market including large cap, mid cap and small cap growth and value stocks.

Some of the big name companies included in this Vanguard fund are: Facebook, Alphabet, JPMorgan Chase, Apple, and Microsoft.

This Vanguard index fund has an expense ratio of 0.04% and a minimum initial investment of $3,000.

So, if you’re looking for a well diversified Vanguard fund and don’t mind a little volatility, this index fund is for you.

Note that you can purchase this index fund as an ETF as well. It start at the price of one share.

Vanguard Mid-Cap Index Admiral

The Vanguard Mid-Cap Index Admiral fund (VIMAX), which tracks the CRSP U.S. Midcap Index, may be appropriate for you if you have a long term perspective.

That is because the index fund, which consists of midsize and smaller stocks, performs better in the long term rather than the short term, making it one of the best Vanguard index funds to include in your investment portfolio.

The fund targets midsize companies. The minimum investment is $3,000 with an operating expense of 0.05%.

So if you’re looking for a Vanguard index fund to use for retirement investing and you don’t expect to tap into your investment money for 10 years or more, the Vanguard Mid-Cap Index Admiral fund is for you.

Vanguard Small-Cap Index Admiral

The Vanguard Small-Cap Index Admiral (VSMAX), as the name suggests invests in stocks of smaller companies.

This index fund tracks the CRSP U.S. Small Cap Index. Some of its holdings include DocuSign, Inc (DOCU), Leidos Holdings Inc (LDOS), Tyler Technologies, Inc (TDY), Equity Lifestyle Properties, Inc (ELS), etc…

This index fund, just like the Vanguard Mid-Cap Index Admiral fund, tends to perform better in the long term. Therefore, invest in this Vanguard fund if you don’t plan to use your money within the next five years.

So if you’re looking for a broadly diversified index of stocks of small U.S. companies, the Vanguard Small-Cap Index Admiral is a good choice. This index fund has a minimum initial investment of $3,000 and an expense ratio of 0.05%. 

Vanguard Short-Term Corporate Index Admiral

If you want to invest in short term bonds to use your money in the next five years to buy a house, or if you plan to withdraw the money from your retirement account, then the Vanguard Short-Term Corporate Index Admiral fund (VSCSX) is for you.

This bond index fund tracks the performance of the Bloomberg Barclays U.S. 1-5 Year Corporate Bond Index.

While you shouldn’t expect a return of no more than 2 to 3% annually on this bond index fund, corporate bonds in general are safe, and this fund is pretty stable.

Because of this stability, this short-term bond index fund makes it an appropriate investment. The Vanguard Short-Term Corporate Index Admiral has an expense ratio of 0.07% expense and a minimum initial investment of $3000, making it one of the best Vanguard index funds around.

Vanguard High Dividend Yield ETF

The Vanguard High Dividend Yield ETF (VYM), as the name suggests, is a “dividend” fund. It attempts to track the performance of the FTSE High Dividend Yield Index.

This index ETF allows investors to earn dividend through growth companies. Some of the big companies with a strong record of paying dividends are AT&T, Intel, and Exxon Mobil.

As of 2/27/2020, this ETF has an expense ratio of 0.06%, making it one of the best Vanguard index funds for income. It starts at the price of one share.

So, if you’re looking for an index fund with the best long term investments growth potential, and you don’t mind the stock market volatility, this income-focused fund is appropriate for you.

Note that the Vanguard High Dividend Yield is also available as an Admiral share with a minimum investment of $3,000.

Vanguard Information Technology

Vanguard Information Technology Index Fund Admiral Shares (VITAX) is a sector fund. This investment attempts to track the performance of the MSCI US Investable Market/Information Technology 25/50.

Sector funds invest in stocks and/or bonds in specific industries. And the Vanguard Information Technology Index Fund, as the name suggests, focuses only on technology.

Generally, you should avoid sector funds mainly because they lack diversification. However, there is an exception with this Vanguard index fund. It focuses on technology, which makes it one of the best Vanguard funds.

In addition, this index is made up of stocks of large, mid-size, and small U.S. companies within the technology sector.

Nowadays, technology has shaped our daily lives. From computers, TVs, tablets, etc, everything is connected to the internet. Therefore, this means that there is and there will be continued growth in the years ahead.

The top companies included in this Vanguard fund are Apple, Microsoft, Visa, Adobe, PayPal, etc.

This index fund has an expense ratio of 0.10 %, but a minimum investment of $100,000. This can be high for the beginner investor.

However, this Vanguard index fund is available as an ETF, starting at the price of one share. 

Vanguard Real Estate

The Vanguard Real Estate Index Fund Admiral Shares (VGSLX) is another sector fund. It focuses on real estate investment trusts (REITs), which are companies that buy office buildings, hotels and other real estate properties.

This Vanguard fund seeks to track the performance of the MSCI US Investable Market Real Estate 25/50 index.

Just as any other sector funds, this Vanguard real estate index fund may lack diversification. So, it makes sense to have this index fund in conjunction with another a more broadly diversified Vanguard fund.

Despite the lack of diversification, however, this fund distributes higher dividend income than other funds, allowing it to be among the best Vanguard index funds for income.

This Vanguard fund has an expense ratio of 0.12%. It has a minimum initial investment of $3,000.

Note that this Vanguard fund is also available as an ETF, starting at the price of one share.

Final tips for buying the best Vanguard index funds

In general, index funds are a good investment vehicle to use. So whether you’re looking to invest money for retirement, or you’re looking to add diversification to your investment portfolio, these Vanguard index funds are a great choice for you. They are great quality funds. They produce superior returns comparing to other similar funds.

Indeed, the best Vanguard Index funds will not only save you money in fees throughout the years. But also, these low-cost index mutual funds and exchange-traded funds (ETFs) will give you a wide exposure to different asset classes.

Speak with the Right Financial Advisor

  • If you have questions beyond knowing which of the best Vanguard index funds to invest, you can talk to a financial advisor who can review your finances and help you reach your goals (whether it is making more money, paying off debt, investing, buying a house, planning for retirement, saving, etc).
  • Find one who meets your needs with SmartAsset’s free financial advisor matching service. You answer a few questions and they match you with up to three financial advisors in your area. So, if you want help developing a plan to reach your financial goals, get started now.
*TOP CIT BANK PROMOTIONS*
PROMOTIONAL LINK OFFER REVIEW
CIT Bank Money Market 1.00% APY Review
CIT Bank Savings Builder 0.95% APY Review
CIT Bank CDs 0.75% APY 1 Year CD Term Review
CIT Bank No Penalty CD 0.75% APY Review

The post The 10 Best Vanguard Index Funds to Buy appeared first on GrowthRapidly.

Source: growthrapidly.com

How to Start Investing in the Stock Market

Although investing in the stock market can feel intimidating at first, it could be the key to achieving your financial goals. Short of hitting the lottery or building a thriving business that you can sell, buying securities that increase in value over time is usually the easiest path to wealth. 

After all, the average savings account pays out a paltry 0.05% APY according to the Federal Reserve Bank of St. Louis, yet the average stock market return is around 10% per year before accounting for inflation. 

Unless you want your money to languish in a savings account where it’s worth less with each passing year, learning to invest should be at the top of your to-do list.

6 Steps to Start Investing in the Stock Market

But, how do you start down a path that is notoriously complicated and has the potential to leave you with less money than you started? Here are a few top steps you should take to get started.

1. List Your Goals

Ask yourself what you hope to accomplish by investing in the stock market. A few examples of investment goals might include: 

  • Making a quick profit by investing in the short-term, and reselling stocks at a higher price,
  • Creating a source of passive income you can use later on,
  • Growing investment earnings so it can cover your retirement, or
  • Saving money for a specific goal.

As you list out your goals, make sure you have the extra money to invest on a regular basis, while also having cash set aside for emergencies. If you have a lot of credit card debt or other high-interest debt, you might even consider paying it off before you begin investing. After all, the average credit card interest rate is currently over 16% —  and you might not get an investment return anywhere close to that.

2. Start With Retirement Savings Accounts

There are advantages that come with investing in a retirement account. Accounts, like a workplace 401(k), a SEP IRA, or a Solo 401(k) are tax-advantaged, giving you the chance to reduce your taxable income (and thus, pay less in taxes) when you contribute. 

With a 401(k) plan from your job, for example, you can contribute up to $19,500 in 2020 and again in 2021. If you’re age 50 or older, you can also contribute another $6,500 each year which is called, a “catch-up contribution”. The amount you contribute is taken off of your taxable income, so your tax liability is lower.

You might also qualify for an “employer match” on contributions to your employer-sponsored retirement account. Check with your company’s human resource department to learn if your employer offers this benefit. 

Other retirement accounts to consider include a traditional or Roth IRA. You can deduct your full traditional IRA contribution from your taxable income, if you don’t have a retirement plan at work. Another option is funding a Roth IRA which lets you contribute using after-tax dollars instead. This means you won’t get a tax deduction for contributing, but Roth IRA funds grow tax-free and you can take distributions at retirement age without paying any taxes. 

In 2021, contribution limits for IRAs stay the same as 2020. You can contribute up to $6,000 to an IRA, or $7,000 if you’re age 50 and older. 

3. Open a Brokerage Account

In addition to investing for retirement, you can also open a taxable brokerage account. You won’t get any upfront tax advantages for opening a brokerage account, but you get the chance to buy and sell stocks and other securities, or buy and hold them for the long-term.

There are excellent brokerage account options for beginners or experienced investors, many of which let you invest in some capacity without any fees. Some of the top firms to consider include: 

  • Betterment: Best for Beginners
  • Robinhood: Best for No Minimum Balance Requirement
  • M1 Finance: Best for Free Trades

4. Compare Costs and Fees

You might not have a lot of options if you’re investing in your workplace retirement plan at first. If you have the option to select a brokerage firm, you’ll need to compare the fees and costs involved in investing. Fees and costs to watch out for include:

  • Investment management fees. These fees can be nonexistent or as high as 1% of your account balance (or more).
  • Expense ratios. Specific funds, like index funds or mutual funds, might carry this fee.
  • Transaction fees. You might pay transaction fees when buying or selling a stock or another security.
  • Front-end loads. This fee can be charged on some investments upfront.
  • Annual account fees. A charge that’s tacked on just for using your brokerage account.

These are just some of the main fees to watch out for, but there are plenty of others. If you want to figure out how much you’re paying in fees on your investment accounts, the free retirement fee analyzer tool from Personal Capital is a good place to start.

5. Start Off With Simple Investments

You’ve probably heard plenty about the “hot stocks” of the last few years, and how investors who got in early have gotten rich by being in the right place, at the right time. Unfortunately, most “regular” investors don’t hear about hot stocks until it’s too late.

As a beginning investor, it’s usually best to keep your stock market strategy simple by investing in what you understand. Some beginning investments to consider include exchange-traded funds (ETFs), which are made up of various investments that track an index or focus on a specific industry sector. You could even stick to index funds, which are another type of investment that tracks an index and are mostly “hands-off” for the investor.

Target-date funds are another type of simple investment to consider. These funds include a selection of stocks and bonds that adjust for less risk over time. If you purchase a target-date fund that’s meant to last until 2050, for example, your risk would be high at first but slowly taper down as you approached 2050 or whatever “target date” you choose for retirement.

6. Research Before Jumping on Complex Strategies

If you’re curious about more complex investing options, you’ll need to learn more about how and when to invest. Some resources to turn to include investing books, like:

  • The Little Book of Common Sense Investing by John C. Bogle
  • Investing All-In-One for Dummies by Eric Tyson

You could also check out top investing forums like Seeking Alpha or the Bogleheads forum, taking the time to read through questions and answers from investors at the top of their game.

Blog posts that can help you get started with some investing basics include: 

  • How to Invest Essentials for Beginners & Intermediates
  • How the Stock Market Works
  • How to Buy Stock Online

The Bottom Line

Investing in the stock market can be nerve-racking, but starting with common-sense investments in place (e.g. employer-sponsored retirement account) and uncomplicated investments (like index funds), lets you ease into the process slowly.

Over time and with more experience, you’ll have a better sense of when — and when not to — shy away from the risks of the stock market.  

The post How to Start Investing in the Stock Market appeared first on Good Financial Cents®.

Source: goodfinancialcents.com

How Much Money Do You Need to Buy a House?

Understanding how much money you need to buy a house can give you an idea of how much you should expect to save.

You’re probably excited about the thought of buying your first home? If so, you have every right to be.

But how much money do you need to buy a house? A calculator can help you determine that. But the average cost of buying a $300,000 is typically around $17,000.

In this article, we’ll go over the main costs of buying a house including the down payment, inspection cost, appraisal cost, closing cost, etc.

Check Current Mortgage Rate

How much money do you need to buy a house?

Out of Pocket Cost of buying a house

The five main out of pocket costs of buying a house are 1) the down payment; 2) inspection cost; 3) the appraisal cost; 4) earnest money and 5) closing costs. These out of pocket costs or upfront costs are money yo need to pay before you become the owner of the property.

In addition, some lenders also require you have some cash reserves to cover 2 to 3 months of the mortgage repayments.

Determining how much cash needed to buy a house depends on the type of loan you’re using.

Let’s suppose you’re buying a $300,000 house with an FHA loan.

An FHA loan requires a 3.5% of the home purchase price as a down payment as long as you have a 580 credit score. So, for the down payment alone, you will need $10,500.

Here’s a quick breakdown for how much cash needed to buy a $300,000 house:

  • Down payment: $10,500
  • Inspection cost: $300
  • Appraisal cost: $300
  • Closing cost: $6000

So, $ 17,100 is how much money you need to buy a house.

Whether you’re buying a house with a 20% down payment or 3.5% down payment, you can certainly find a loan with both the price and features to suit your needs as a first time home buyer. You can compare First Time Home Buyer home loans on the LendingTree website.

The down payment

The biggest cost of buying a house is obviously your down payment. But that depends on the type of loan you are looking for.

For example, a conventional loan requires a 20% down payment. You can pay less than that, but you will have to pay for a private mortgage insurance – which covers the lender in case you default on your loan.

A 20% down payment however can also mean that you’ll get a better interest rate, which also means you’ll save money on interest.

For an FHA loan, you only need 3.5% down payment as long as your credit score is 580.

FHA loans are very popular these days. Not only it’s easier to get qualified (low down payment and low credit score), but also your down payment can come from a friend, a relative or your employer.

Using our example above, you only need $10,500 for a down payment for a $300,000 house.

If you’re using a VA loan then you pay $0 down payment.

Check to see if you’re eligible for an FHA loan or VA loan

How much money do you need to buy a house also depends on other factors, such as whether you are a first time home buyer or not. Your state may have a range of programs that may contribute toward your down payment.

So visit your local government office to find out if you are eligible for any down payment assistance for first time home buyers.

Inspection cost

Another upfront cost of buying a home is the inspection cost.

It is highly recommended to perform inspection for your home for any defects so there are no surprises later on.

Inspections typically cost between $300 to $500, but it depends on the property and your local rates.

Compare home loans for first time home buyers with LendingTree

Appraisal cost

Before a lender can give you a loan to finance a house, they will want to know how much the house is worth. So appraisal means an estimate of the home’s value. A home’s appraisal usually costs between $300 to $500. A home appraisal will also determine what your property tax will likely be.

If you’re pay the home appraisal, it will be deducted from the closing cost. (see below).

Earnest money

Earnest money is a deposit you will have to pay upfront as soon as an offer is accepted, while you working on other aspects such as getting the home inspected, etc…

This deposit is part of the down payment, and it is usually between 1% to 3% of the final sale price. It is held by an escrow firm or attorney until the closing process is completed.

So if the sale is successful, that money is applied to your down payment. If it’s not, you get 100% of your money back.

Closing costs

The closing costs are fees by the lenders. They typically cost 2% to 5% of the final price. The costs include fees for homeowner’s insurance, title insurance, title insurance, property tax, HOA dues, private mortgage insurance.

It’s possible to lower these costs by comparing mortgage options.

Other costs of buying a home:

In addition to upfront costs, there are other recurring costs associated with buying a home. They include moving fees, repair costs, furniture, remodeling, etc. So consider these costs when making your budget to buy a house.

So how much money do you need to buy a house? The answer is it depends on the type of loans you’ re using. But if you’re buying a $300,000 house with an FHA loan, which requires a 3.5% down payment, $ 17,100 is how much money you need.

For more information about upfront costs of buying a house, check out this guide.

Read more cost of buying a house:

  • How Much House Can I Afford?
  • How Long Does It Take to Buy a House?
  • Buying a House for the First Time? Avoid these Mistakes
  • 5 Signs You’re Not Ready to Buy a House

Work with the Right Financial Advisor

You can talk to a financial advisor who can review your finances and help you reach your goals (whether it is making more money, paying off debt, investing, buying a house, planning for retirement, saving, etc). So, find one who meets your needs with SmartAsset’s free financial advisor matching service. You answer a few questions and they match you with up to three financial advisors in your area. So, if you want help developing a plan to reach your financial goals, get started now.

The post How Much Money Do You Need to Buy a House? appeared first on GrowthRapidly.

Source: growthrapidly.com

How Much House Should I Afford?

The internet is a treasure trove when it comes to finding information that can help you buy your first home. Unfortunately, searching for “How much house can I afford?” will mostly lead you to online calculators that use an algorithm to come up with a generic estimate.

To come up with a figure, these calculators ask you for details like your zip code, your gross annual income, your down payment amount, your monthly liabilities, and your credit score. From there, they come up with an estimate of your debt-to-income ratio (DTI), or the amount of bills and liabilities you have in relation to your monthly income. 

The truth is, most lenders prefer your debt-to-income ratio to be at 43 percent or lower, although some lenders may offer you a loan with a DTI slightly above that.

Either way, the figures these calculators throw at you are a simple reflection of what a bank is willing to lend you — not an estimate of what you really can or should spend. 

Let’s dig in a bit more to what factors to consider.

Factors that Should Impact Your Home Purchase Price

One of the main factors to consider when deciding how much to spend on a home is how much you want to pay for your mortgage each month. What kind of payment can you commit to without sacrificing other goals?

A mortgage payment calculator is a good tool to use in this case. With a mortgage calculator, you can see how much your monthly payment might be depending on the amount you borrow, the interest rate you qualify for, and the term of the loan. 

While you decide on a monthly payment you can live with, there are additional details you should consider. The main ones include:

  • Down Payment: If you’re able to put down 20% of your home purchase price, you can avoid private mortgage insurance, or PMI. PMI adds an additional cost to your mortgage each month (usually around 1% of your loan amount), although you can have this charge removed from your loan once you have at least 20% equity.
  • Property Taxes: Find out the annual property taxes for any home you’re considering, then divide that amount by 12 to figure out approximately how much you’ll need to pay toward taxes in your mortgage payment each month. Also remember that your property taxes will likely go up slowly over time, which will increase your monthly housing payment along the way.
  • Homeowners Insurance: Your homeowners insurance premiums will also vary depending on the property and other factors. Make sure to get a homeowners insurance quote so you know approximately how much you’ll pay for coverage each year.
  • Home Warranty: Do you want a home warranty that will repair or replace major components of your property that break down? If so, you’ll want to price out home warranties that can provide coverage for your HVAC system, plumbing, appliances, and more. 
  • Other Monthly Bills: Take other liabilities you have into account, and especially the big ones. Daycare expenses, college tuition, utility bills, car payments, and all other bills you have should be considered and planned for.
  • Financial Goals: Are you trying to save more than usual so you can retire early? Or, are you saving in a 529 plan for future college expenses? If your financial goals are a priority (as they should be), then you’ll want to make sure your new house payment won’t make saving for other goals a challenge.
  • Upgrades and Repairs: Finally, don’t forget to come up with an estimate of how much you might want to spend on repairs or changes to your new home. A property that is new or move-in ready may not require much of anything, but money you plan to spend on a major renovation should be taken into consideration along with the purchase price of your home.

Hidden Expenses to Plan For

The factors you should consider when figuring out how much home to buy are pretty obvious, but what about all the expenses of homeownership you can’t always plan for? The reality is, you will need to do some work on your home at some point, and many of the most popular repairs can cost tens of thousands of dollars on their own. 

These repair and renovation cost estimates from Remodeling Magazine’s 2020 Cost vs. Value study are just a few examples: 

  • Garage door replacement: $3,695
  • Vinyl siding replacement: $14,459
  • Wooden window replacement: $21,495
  • Asphalt roof replacement: $24,700

In addition to major repairs like these, you’ll also have repair bills for your HVAC system, mulch to buy for your flower beds, and ongoing costs for maintenance and upkeep to pay for. You may also decide to remodel your older kitchen one day, or to add an extra bedroom as your family grows. 

As you figure out how much you should spend on a home, remember that you won’t know exactly how much you’ll need for home repairs or upgrades. Most people set aside some money for home maintenance in their emergency fund, but you can also set aside money for home repairs in a separate high-yield savings account. 

How to Calculate How Much House You Should Afford

All of the costs we’ve outlined above probably seem overwhelming, but keep in mind that most major home repairs will be spread out over the years and even decades you own your home. Not only that, but you will hopefully start earning more over the course of your career. As your paycheck grows, you’ll be able to set aside more money for emergencies and potentially even pay your mortgage off faster.

So, how do you calculate how much house you can afford? That’s really up to you, but I would start by tallying up every bill you have to pay each month including car payments, insurance, utilities, student loans, and any other debts you have. From there, add in some savings so you have money to set aside for your investing and savings goals. Also factor in money you set aside for retirement in a workplace account.

At this point, you could consider other factors that might impact how much you want to pay for a home. For example:

  • Do you need to build an emergency fund?
  • Are children on the agenda, and should you play for daycare expenses?
  • Do you like being able to save more money for a rainy day? 
  • Do you want to have one spouse stay at home in the future?
  • How long do you want to pay off your home loan?

Once you’ve considered all other factors, you may decide that you should set aside money for some other goals, like future daycare bills or college savings. Maybe you decide you want to pay double on your student loans so you can pay them off early, or that you want a 15-year-home loan with a larger monthly payment instead of a traditional 30-year loan. 

Either way, experts tend to agree that your mortgage payment should be no more than 25% of your income. For a $7,000 monthly income, that means your payment shouldn’t exceed $1,750. If your income is $5,000 per month, your monthly payment should be no more than $1,250 per month. These are ballpark estimates, and your property taxes and homeowners insurance premiums (or estimates) should also be figured into this amount. 

What to Do If You Already Spent Too Much?

If you already overspent on your home, you’re probably wondering which steps to take next. Maybe your monthly mortgage payment is making it impossible to keep up with other bills, or perhaps the home you bought required a lot more work than you realized. 

Either way, there are some steps to get back on track financially if you bit off more than you can chew. Consider these options:

  • Refinance your mortgage. Today’s incredibly low rates have made it so almost anyone can refinance an existing mortgage and save money these days. If you’re able to qualify for a new mortgage with a lower interest rate, you could lower your monthly payment and save money on interest each month. Compare mortgage refinancing rates here. 
  • Cut your expenses. Look for ways to cut your spending on a daily basis — at least until you figure out what to do in the long run. Figure out areas of your budget where you might be spending more than you realized, such as dining out, getting takeout, or going out on the weekends. If you can cut your monthly spending somewhat, you can find more money to use toward your mortgage payment each month. 
  • Get a roommate. Consider renting out your guest room in order to get some help with your mortgage. If you live in a tourist area, you can also rent out a space using platforms like Airbnb.com or VRBO.com. 
  • Sell your home and move. Finally, consider selling your home and moving if you have enough equity to do so without taking a financial loss. Sometimes the best thing you can do in a financial crisis is cut your losses and move on.

The Bottom Line

How much house you can afford isn’t always the same as how much you should afford. Only you know what your monthly bills and liabilities look like each month, and only you know the goals and dreams you really should be saving for.

When it comes to buying a home, you’re almost always better off if you err on the side of caution and borrow less a bank will lend. Buying a modest home can leave you with a lot more choices in life, but buying a home you can’t really afford can leave you struggling for years to come.

The post How Much House Should I Afford? appeared first on Good Financial Cents®.

Source: goodfinancialcents.com

The ABCs of Financial Empowerment

A quick Google search of ‘financial literacy’ will yield thousands of results, listing an infinite amount of do’s and don’ts that should (and shouldn’t) be followed to guide you along on your financial journey.

However, when you think of financial empowerment – what comes to mind? As defined by Merriam-Webster, empowerment is “the act or action of empowering someone or something: the granting of the power, right, or authority to perform various acts or duties.” No matter what your current sentiments are related to your finances, we will explore three key areas to not only embrace; but to help you prepare for a strong financial future.

Awareness

Now more than ever, we all have a laser-sharp focus on our money and where it’s being spent. The pandemic has generated a hypersensitivity to how we treat our finances while also determining what essential expenses look like and where they fit into our budget.

Before life as we knew it to be shifted, many of us don’t have to look too far back to remember a time where we didn’t check our accounts as often, our savings plan would fluctuate month-over-month or our emergency fund was used to bail us out of some impulsive spending.

To make sure those days are forever of the past, make it a habit to take inventory and audit all of your accounts. Take at least 15 – 30 minutes to review over any transactions and deposits across all active accounts. Not only does this help improve your self-accountability, but you are also able to make any disputes if anything appears incorrect and resolve quickly.

Another small but impactful tip is to acknowledge your financial health. What top three areas will be your main point of focus? If this is something you don’t know offhand, review your transactions from the last three months and categorize them. How much of your money went to impulsive buys or things that could have been purchased at a later date? Are you seeing an influx in overhead expenses or credit card payments? Are there any spending patterns you can explicitly see? Allow this exercise to serve as an eye-opening experience.

In order to determine where you want to be, you must first truthfully acknowledge where you are. This sets the blueprint and overall expectations with your personal finance journey. Knowing where you are may not feel pleasant but avoidance will lead to bigger consequences.

Betterment

Even though we don’t like to admit it, there’s always room for improvement and our finances are no exception. The first thing that guarantees mastery is actually following the budget that’s created. This serves as a guardrail – it’s used to keep us on track so we can greet our financial destination with open and inviting arms.

Once that’s in motion, explore ways to enhance your financial experience. Begin by automating recurring expenses, such as cellphone service or utility bills. That’s why it’s so important to be as honest and accurate as possible when setting a budget. Nothing should come to you as a surprise outside of any emergencies. When you trust yourself and the financial work you’ve put in, your finances have no choice but to follow suit.

If you haven’t already (or need to get back on track), work to beef up your emergency fund and savings account. Emergency expenses have a tendency to appear out of nowhere, so you want to dedicate a set dollar amount or a percentage every pay period. Setting up an automatic transfer to these accounts establish a routine while putting your mind at ease in the process.

Is there a hobby or skill you’d like to put to use and monetize? No matter how grandiose or small, this can definitely expedite achieving your financial goals. The money earned from a passion project can go toward savings, paying off debt or simply getting back to a place of comfort financially. Vacation funds or prepping for large purchases such as a car or home can also fall within this category. If you want to seek the assistance of a professional, search for financial advisors or coaches that could help you with reaching your goals. Preparation is key and your future depends on it!

Confidence

The foundation has been laid and you’ve been committed to crushing your financial goals. The budget and savings goals are in motion; so what’s next? It’s time to celebrate! Walk into your financial future with your best foot forward. When times seem bleak, remind yourself of your goals early and often.

Reinforcement such as daily reminders on your phone, having goals posted somewhere in your home you can see daily or reciting positive financial affirmations will serve as a second wind when you want to throw in the towel. Be sure to celebrate wins along the way such as debt payoff, reduction or hitting a new savings goal. Never been able to invest before and now you have the additional income to get in the game? Celebrate that!

The best way to generate excitement is to rally your family and get them involved. Create family challenges to get your children excited about saving funds and reallocating money. Come up with creative ways you all can commemorate knocking out a goal by ordering from your favorite restaurant or saving for a family staycation.

In order to walk in confidence, you have to build up the courage to begin no matter where you are or how many times you’ve had to start over. Each step counts – each successful budget, savings goal and consistent reduction of overall expenses. Be sure to keep in mind, financial freedom looks different for everyone and has the ability to pivot over time. While some may want to vacation throughout the year, save for their children’s college fund or wipe debt out completely, all are significant and take sacrifice. What is the key to achieving such a pinnacle level of confidence? Time.

 

Be kind to yourself and understand mistakes should never be equated to failures. Your commitment to this financial journey will always be rewarded.

The post The ABCs of Financial Empowerment appeared first on MintLife Blog.

Source: mint.intuit.com

How to Create Your Own Retirement Plan

One of the good things of working for a company is that they create a retirement plan for you. As an employee, you don’t have to do anything else but to participate in the plan. However, when you’re self-employed or a small business owner, you’re responsible of setting up your own retirement plan.

When it comes to operating your own business, time is of the essence. However, even if you’re crazy busy, saving for retirement should be a priority. Indeed, a retirement account allows you to contribute pre-tax money, which lowers your taxable income.

Luckily, a financial advisor can help you save time and help you choose the right plan that is best for you. Below are four retirement saving options you can create as a self-employer individual.

1. Solo 401k

A solo 401k is for small businesses or sole proprietors who don’t have any employees other than a spouse working for the business. The solo 401k mirrors a typical 401k plan that most companies offer. The main difference is that you can contribute as an employee and employer.

In other words, because you’re both the boss and the worker, you get to contribute in each capacity. That in turn allows you to contribute a higher amount each year. However, your total yearly contributions cannot exceed $58,000 or $64,000 for individuals age 50 or older as of 2021. To set up a solo 401k, you have to get in touch with a financial institution.

2. SEP IRA

If you’re an independent contractor, self-employed, or has a small business with 25 employees or less you can set up a SEP (Simplified Employee Pension). It’s very easy to establish and don’t even require you to incorporate your business to qualify.

In a SEP IRA, the employer alone contributes to the fund, not the employees. You can contribute up to 25% of your annual salary or $58,000 in 2021, whichever is less.

3. Keogh Plan

Keogh plans are available to self-employed people, including sole proprietors who file Schedule C or a partnership whose members file Schedule E. This type of plan is preferable among those who have a high and stable income.

But the main advantage the Keogh has is the high maximum contribution you can make. In 2021, you can contribute up to $58,000. To set up, you will need to work with a financial institution such as Charles Schwab. 

4. Simple IRA

The Simple IRA was created by the Small Business Protection Act to help those who work at small companies to save for retirement. The small business can offer the plan if it has 100 or fewer employees.

Both the employer and the employee can contribute up to $13,000 in 2021, plus an additional catch-up amount of $3,000 if you’re 50 or older. If a company offers a Simple IRA, it must match an employee’s contribution dollar for dollar, up to 3% of each participant’s annual salary or make a nonelective 2% contribution to all employees.

Where to Invest Your Keogh, SEP IRA, Solo 401k, Simple IRA

As a small business owner, there is always an investment program that suits your needs for your IRA, SEP, Keogh and solo 401k. Places such as banks, brokerage firms and mutual funds institutions such as Vanguard, Fidelity, Charles Schwab are great options. But before opening account, make sure you consider how much money you have, your appetite for risks, the annual fee, etc.

The Bottom Line

If you’re a small business owner or self employed, you should take advantage of the tax benefits offered by these plans mentioned above. Creating a retirement plan is important, because not only will you be able to grow your retirement savings faster but also no one is going to do it for you. 

Related:

  • 4 Simple Ways to Accelerate Your Retirement Savings
  • How to Retire at 50:10 Easy Steps to Consider

Tips on Retirement Planning

Retirement planning can be a major challenge, but you don’t have to go in it alone. Speak with a financial advisor who can help you come up with a unique plan based on your circumstances and situations. Use SmartAsset advisor matching tool to get matched with fiduciary financial advisors in just 5 minutes.

 

The post How to Create Your Own Retirement Plan appeared first on GrowthRapidly.

Source: growthrapidly.com

What Are the Best Car Loans When You Have Bad Credit?

If you have bad credit and need a car loan, there are some challenges when compared to obtaining a standard car loan. However, pick your head up because there are a handful of great lenders that specifically tailor their programs to people with bad credit. We researched the landscape of lenders that can help you get a car loan even if you have a below-average credit score.

Based on our study, OneMain Financial and LightStream are two of the top lenders offering bad credit card loans. This is due to factors including loan options, requirements to qualify, and interest rates offered. Of course, we offer in-depth reviews of all the top lenders who offer bad credit car loans further down in this piece.

Apply now with our top pick: OneMain Financial

In this guide we also help you understand the factors that go into selecting the right auto lender, and how to get the best rate you can.

Most Important Factors for Bad Credit Car Loans

If you’re in the market for a bad credit car loan, there are a plethora of factors to consider and compare. Here are the main loan details we looked at in our study, and the ones you should prioritize as you select the best car loan for your needs.

  • Check your credit score. And understand what is in your credit report.
  • FICO scores under 579 is considered ‘poor’. But you may need a bad credit loan with a score as high as 669.
  • Interest rates and fees matter. These can make a huge difference in how much you pay for an auto loan each month.
  • Compare loan terms. Consider your repayment timeline and compare lenders with this in mind.
  • Getting prequalified online can help. Some lenders, including ones that made our ranking, let you get prequalified for a loan online without a hard inquiry on your credit report.
  • Watch out for loan restrictions. Some lenders impose restrictions on what car you can purchase. Keep this in mind to avoid unpleasant surprises later.

The Best Bad Credit Car Loans of 2021

The best bad credit car loans make it easy for consumers to qualify for the financing they need. The following lenders made our list due to their superior loan offerings, excellent customer service, and reputation in this industry.

Car Loan Company Best For… Get Started
onemain financial bad credit car loan Best for Flexibility Apply Now
bad credit car loan upgrade Best Personal Loan Option Apply Now
autocreditexpress logo Best Loan for Bad Credit and No Credit Apply Now
myautoloan bad credit car loan logo Best Loan Comparison Site Apply Now
capitalone logo Best Big Bank Loan for Bad Credit Apply Now
lightstream logo Best for Fast Funding Apply Now

Why Some Lenders Didn’t Make the Cut

While the lenders we are profiling are the best of the best, there are plenty of bad credit car loans that didn’t quite make the cut. We didn’t include any lenders that only offer auto loan refinancing, for example, since we know many people need a car loan in order to purchase a new or used car or truck. We also stayed away from bad credit car loans that charge outrageous fees for consumers with the lowest credit scores.

Bad Credit Auto Loan Reviews

We listed the top companies we selected in our study above, but we also aim to provide readers with more insights and details on each. The reviews below highlight the highlights of each lender that made our list, plus our take on who they might be best for.

OneMain Financial: Best for Flexibility

OneMain Financial offers personal loans and auto loans with interest rates that range from 18.00% to 35.99%. You can repay your auto loan in 24, 36, 48, or 60 months, and you can use this lender to borrow up to $20,000 for a new or used car. You can apply for your auto loan online and from the comfort of your own home, and it’s possible to get approved within a matter of minutes.

While OneMain Financial doesn’t list a minimum credit score requirement, it’s believed they will approve consumers with scores as low as 600. You should also note that auto loans from OneMain Financial come with an origination fee of up to 5% of your loan amount.

Sign Up With OneMain Financial Today

Why This Lender Made Our List: OneMain Financial offers a lot of flexibility in terms of your loan terms, including the option to repay your auto loan over five years. OneMain Financial also has pretty decent reviews from users for a bad credit lender, and they have an A+ rating with the Better Business Bureau.

Potential Downsides to Be Aware Of: OneMain Financial charges some pretty high rates for its bad credit loans, and don’t forget that you may need to pay an origination fee that is up to 5% of your loan amount. Their loans are also capped at $20,000, which means this lender won’t work for everyone.

Who It’s Best For: This lender is best for consumers with really poor credit who need auto financing but can’t get approved for a better loan.

Upgrade: Best Personal Loan Option

Upgrade is an online lender that offers personal loans with fixed interest rates, fixed monthly payments, and a fixed repayment timeline. You can borrow up to $50,000 in an unsecured loan, which means you won’t actually use the car you purchase as collateral for the loan.

You can repay the money you borrow over 36 to 60 months, which makes it possible for you to tweak your loan offer to secure a monthly payment you can afford. Upgrade has a minimum credit score requirement of 620 to qualify, although they’ll consider additional factors such as your income and employment history.

Sign Up With Upgrade Today

Why This Lender Made Our List: Upgrade lets you “check your rate” online without a hard inquiry on your credit report. This makes it easy to shop around and compare this loan offer to others without having to fill out a full loan application. Also note that Upgrade has an A+ rating with the BBB.

Potential Downsides to Be Aware Of: Upgrade charges APRs as high as 35.89% for consumers with the worst credit, and an origination fee of up to 6% of your loan amount might also apply.

Who It’s Best For: Upgrade is best for consumers with decent credit who need to borrow a larger loan amount. This loan is also best for anyone who wants an auto loan that isn’t secured by their vehicle.

AutoCreditExpress.com: Best Loan for Bad Credit and No Credit

AutoCreditExpress.com is an online platform that lets consumers with bad credit and even no credit get the financing they need. Once you fill out some basic loan information, you’ll be connected with a lender who can offer you financing as well as a dealership in your area. From there, you’ll head to the local dealership and pull the pieces of your auto loan together, including the purchase price of the car you want.

Sign Up With Autocreditexpress.com Today

Why This Lender Made Our List: AutoCreditExpress.com has an A+ rating with the Better Business Bureau. This platform also makes it possible for consumers with no credit at all to finance a car, which is a welcome relief for people who are building credit for the first time.

Potential Downsides to Be Aware Of: This website is a loan platform but they don’t offer loans directly to consumers. This means you won’t have any idea on rates and terms until you fill out an application and get connected with a lender.

Who It’s Best For: This loan is best for consumers with no credit or minimal credit history who cannot get approved for a loan elsewhere.

MyAutoLoan.com: Best Loan Comparison Site

MyAutoLoan.com is a loan comparison site that makes it easy to compare up to four auto loan offers in a matter of minutes. You can use this website to apply for a new auto loan, but you can also utilize it to consider refinancing offers for an auto loan you already have. You can also use funds from this platform to purchase a car from a dealer or from a private seller.

Sign Up With MyAutoLoan.com Today

Why This Lender Made Our List: Comparing auto loans in terms of their terms, rates, and fees is the best way to save money and wind up with the best deal. Since MyAutoLoan.com is a loan comparison site, they make it easy to shop around and compare competing offers.

Potential Downsides to Be Aware Of: Loan comparison sites connect you with other lenders who have their own loan terms and minimum requirements for approval. Make sure you know and understand all the details of loans you’re considering before you sign on the dotted line.

Who It’s Best For: MyAutoLoan.com is best for consumers who want to do all their auto loan shopping with a single website.

Capital One: Best Big Bank Loan for Bad Credit

Capital One offers online auto loan financing in conjunction with a program called Auto Navigator®. This program lets you get prequalified for an auto loan online, then work with a participating dealer to coordinate a loan for the car you want. Capital One also lets you search available vehicles at participating dealerships before you apply for financing, making it easy to figure out how much you might need to borrow ahead of time.

Sign Up With Capital One Today

Why This Lender Made Our List: Capital One offers the huge benefit of letting you get prequalified online without a hard inquiry to your credit report. Capital One is also a reputable bank with a long history, which should give borrowers some comfort. They have an A+ rating with the BBB and plenty of decent reviews from consumers.

Potential Downsides to Be Aware Of: You should be aware that Capital One auto loans only work at participating dealers, so you may be limited in terms of available cars to choose from.

Who It’s Best For: Capital One auto loans are best for consumers who find a car they want to buy at one of the participating lenders that works with this program.

LightStream: Best for Fast Funding

LightStream offers online loans for a variety of purposes, including auto financing. Their auto loans for consumers with excellent credit start at just 3.99% with autopay, and even their loans for consumers with lower credit scores only run as high as 16.79% with autopay.

You can apply for your LightStream loan online and get approved in a matter of minutes. This lender can also send your funds as soon as the same business day you apply.

A minimum credit score of 660 is required for loan approval, although other factors like your work history and income are considered.

Sign Up With LightStream Today

Why This Lender Made Our List: LightStream offers auto loans with exceptional terms, and that’s even true for consumers with less than perfect credit. You can also get your loan funded as soon as the same business day you apply, which is crucial if you need auto financing so you can get back on the road.

Potential Downsides to Be Aware Of: With a minimum credit score requirement of 660, these loans won’t work for consumers with the lowest credit scores.

Who It’s Best For: LightStream is best for people with decent credit who need to get auto loan financing as quickly as possible.

What You Need To Know When Applying For A Car Loan With Bad Credit

Interest rates and fees matter.

If you think your interest rate and loan fees won’t make a big difference in your monthly payment, think again. The reality is that rates and fees can make a huge difference in how much you pay for an auto loan each month. Consider this: A $10,000 loan with an APR of 35.89% will require you to pay $361 per month for five years. The same loan amount at 21.99% APR will only set you back $276 per month. At 9.99%, you would pay only $212 per month for five years. The bottom line: Make sure to compare auto loans for bad credit so you wind up with the lowest possible APR you can qualify for.

Take steps to improve your credit score before you apply.

It’s not always possible to wait to apply for a car loan, but you may be able to secure a lower interest rate and better loan terms if you can improve your credit score before you borrow money. The most important steps you can take to improve your score include paying all your bills early or on time, as well as paying down debt in order to decrease your credit utilization. You should also refrain from opening or closing too many credit card accounts in order to avoid new inquiries on your credit report and maintain the longest average length of your credit history possible.

Compare loan terms.

Some lenders let you borrow money for up to 84 months, while others let you repay your loan over 36 or 60 months at most. If you need to repay your loan over a longer timeline in order to secure an affordable monthly payment, make sure to compare lenders based on this factor. If you’re having trouble figuring out how much can you can afford, gauging affordability based on the monthly payments you can handle can also help in that effort.

Getting prequalified online can help.

Some lenders, including ones that made our ranking, let you get prequalified for a loan online without a hard inquiry on your credit report. This makes it considerably easier to compare rates and shop around without formally applying for an auto loan. Getting prequalified with more than one lender can also help you determine which one might offer the lowest rate without having to fill out a full loan application.

Watch out for loan restrictions.

As you compare the lenders on this list, keep in mind that not all lenders extend loans for any car you want. Some only let you finance cars with participating lenders in their network, which can drastically limit your options and make it impossible to purchase a car from a private seller. If you hope to purchase a car from someone you know or a website like craigslist.org, you may want to consider reaching out to your personal bank or a credit union you have a relationship with.

Bad credit car loans don’t have to be forever.

Finally, you should know that a car loan for bad credit doesn’t have to last forever. You may need to borrow money for a car right now regardless of the interest rate and terms you can qualify for, but it may be possible to refinance your loan into a better loan product later on. This is especially true if you focus on improving your credit score right away, and if you use your auto loan as an opportunity to prove your creditworthiness.

How to Get the Best Rate

1. Check your credit score.

Your credit score is one of the most important defining factors that dictate loan costs. Before you apply for an auto loan, it can help you check your credit score to see where you stand. Your score may not be as bad as you realize, but it could also be worse than you ever imagined. Either way, it helps to know this important information before you start shopping for an auto loan.

2. Improve your credit over time.

If your credit score needs work, you’ll want to take steps to start improving it right away. The most important steps you can take to boost your credit score include paying all your bills early or on time and paying down debt to decrease your credit utilization. Also, make sure you’re not opening or closing too many credit accounts within a short amount of time.

3. Check your credit reports.

Use the website AnnualCreditReport.com to get a free copy of your credit reports from all three credit bureaus. Once you have this information, check over your credit reports for errors. If you find false information that might be hurting your score, take the steps to have the incorrect information removed.

4. Compare loan offers from at least three lenders.

A crucial step to get the best rate involves shopping around and comparing loan offers from at least three different lenders. This is important since lenders with different criteria might offer a lower APR or better terms than others.

5. Be flexible with repayment terms.

Also consider a few different loan terms provided you can afford the monthly payment with each. Some auto lenders offer better rates for shorter terms, which can help you save money if you can afford to repay your loan over 24 or 36 months instead of 60+.

How We Chose the Best Auto Loans

The lenders on our list weren’t plucked out of thin air. In fact, the team behind this guide spent hours comparing auto lenders based on a wide range of criteria. Here’s everything we considered when comparing the best bad credit car loans of 2021:

Interest Rates and Loan Terms: Our team looked for loans that offer reasonable rates and terms for consumers with poor credit. While higher APRs are typically charged to consumers with a low credit score, we only considered lenders that offer sensible rates that don’t seem out of line for the auto loan market.

Ratings and Reviews: We gave preference to lenders who have decent reviews online, either through Consumer Affairs, Trustpilot, or another third party website. We also gave higher marks to lenders who have a positive rating with the Better Business Bureau (BBB).

Online Availability: Lenders who offer full loan details online were definitely given top priority in our ranking, and lenders who let you get prequalified online without a hard inquiry on your credit report were given the most points in this category. But since not everyone wants to apply for a loan online, we also included some lenders that let you apply over the phone.

Approval Requirements: Finally, we looked for lenders that extend credit to consumers with low credit scores in the first place. Not all lenders offer specific information on approval requirements, but we did our best to sort out lenders that only accept borrowers with good or excellent credit.

Summary: Best Bad Credit Card Loans of 2021

  • Best for Flexibility: OneMain Financial
  • Best Personal Loan Option: Upgrade
  • Best Loan for Bad Credit and No credit: AutoCreditExpress.com
  • Best Loan Comparison Site: MyAutoLoan.com
  • Best Big Bank Loan for Bad Credit: CapitalOne
  • Best for Fast Funding: LightStream

The post What Are the Best Car Loans When You Have Bad Credit? appeared first on Good Financial Cents®.

Source: goodfinancialcents.com

The No-Cash Envelope System That Works

The post The No-Cash Envelope System That Works appeared first on Penny Pinchin' Mom.

I am a strong believer in the cash envelope system. It works great for our family. But I also know that is not the case for everyone.  You may not want to use cash but love the envelope system concept.  Fortunately, there is a program you can use that marries your desire to use plastic with the discipline of a cash envelope budget.

When it comes to managing your money, spending and trying to get out of debt, there are many programs and apps out there. But, not all of them can do everything.  That means one app for your budget, another for trying to get out of debt and then yet another for managing your spending.

ProActive does it all.  You can manage your money, spending, budgeting, and debt payoff – all from one simple to manage app! But, before you jump in and download it, make sure you read this honest review.  That way, you’ll know what to expect!

What is ProActive?

ProActive combines the beauty of shopping with plastic and the discipline of cash envelopes.  The system ensures that you never overspend – ever!  Just like with cash, when the envelope is empty, you are done shopping!

 

What is the cash envelope budget?

A cash envelope budget is what it sounds like. Rather than using plastic to shop you get cash and place the budgeted amounts into envelopes.  For example, if your budget for food is $200 a paycheck, then you get cash and place $200 in an envelope earmarked for groceries.

When you grocery shop, you use only the cash in the envelope. That is all you have available to spend. It is impossible to overspend.  If there is only $20 left then that means you can’t spend $22.  There is not enough money there.

It is a system that works very well for people who want to better manage and control spending.

 

How does it work?

Once you sign up and create your account, you will get a ProActive branded debit card.  When you are ready to spend, you use the ProActive card.  But, before you can swipe, you have to let the app know which envelope the money needs to come from.  That way, you always stay on budget and don’t spend more than you should.

 

Add funds to your account

When you get paid, review your budget.  Pay the bills that are due.  What you have left over is what you have left to spend on everything else on your budget.  It will include items such as clothing, household items, personal care and beauty, groceries, entertainment, dues, etc.

You will go into the app and click the “+” icon.  That starts the transfer from your bank account to your ProActive debit card.

 

Allocate the money to your virtual envelopes

Once the funds are deposited, you have to assign an amount to each category (a.k.a. envelope).  Review the budget to see what you have available to spend.

 

Shop as usual (but pay with the ProActive card)

You can’t swipe your card until you have told the card which category (or envelope) the money should come from.  Simply open the app and click the spend category.  Then you can swipe.

If there is not enough money left in the category to cover your purchase, it will be declined.  That makes it impossible to overspend.

 

The smart way to use ProActive

As parents, we teach our kids.  They need to know how to take care of themselves, cook, clean and do other things around the house.  But, it seems that financial responsibility is one that gets overlooked.

One thing that ProActive allows is for you to add your kids and teach them how to manage their own money.  You can put funds on their account and they too can set up categories.  And, just like mom and dad, they have to select the category before they spend so they are not spending more than they should either.

ProActive not only teaches your kids how to use a debit card, but also the financial responsibilities that go along with it.  And, it is in an environment that both mom and dad can see (and control).

 

Who is ProActive a fit for?

Just like with every other app or budget system there is never a one-size-fits-all system. That means this may not work for you.  If you love your credit card for the rewards then this will not work for you.  You can’t attach a credit card and use this program.

But, if you struggle to try to manage your money and spending then you really need to get this app. It makes it impossible to overspend and helps you learn how to think about every purchase you make.  You may not need to use it forever as you will become disciplined.

 

What does it cost?

When you sign up, ProActive will give you a 15-day trial.  They want to make sure it is a fit for you before they make you pay.  Then, if you love it, you continue at $5.75 a month (paid annually, so $69).  You can add a second user for $29 a year and even add your kids for just $24 each.

 

What happens if I forget my phone?

It happens.  We leave our phones behind. In that case, it is important that you always have an alternative payment method handy, such as your bank debit card, credit card or cash.

If your goal is to get out of debt, you have to first start with your budget and spending. If you don’t do that, you will never achieve your goals.  ProActive is one tool that helps you every step of the way.

The post The No-Cash Envelope System That Works appeared first on Penny Pinchin' Mom.

Source: pennypinchinmom.com