Tag: Vs.

How to Save for Retirement in Your 20s, 30s, 40s, 50s and 60s
You donât want to work the rest of your life. Hereâs how to save in your 20s, 30s, 40s and 50s, even if retirement seems light years away.
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.
Tagged 401(k), All, budget, Budgeting, Career
Mortgage Impounds vs. Paying Taxes and Insurance Yourself
If youâve been researching mortgages, or are in the process of taking out a home loan, youâve probably come across the term âimpoundsâ or âescrows.â When you hear these seemingly scary words, the loan officer or mortgage broker is referring to an impound account, also known as an escrow account. You may even be told [&hellip
The post Mortgage Impounds vs. Paying Taxes and Insurance Yourself first appeared on The Truth About Mortgage.
Tagged Financial Wize, FinancialWize, Home, Insurance, Mortgage
Money Market Account or Checking Account: Which Is Best For You?
Depending on how you plan to spend and save, a money market or checking accountââor bothââcould suit your needs.
The post Money Market Account or Checking Account: Which Is Best For You? appeared first on Discover Bank – Banking Topics Blog.
Tagged ATM, Automatic Transfer, Banking, Banking 101, Cash Back
Does Renters Insurance Cover Storm Damage?
Renters insurance is a must-have and covers your belongings in a lot in disasters. But you may have to buy extra coverage depending on where you live.
The post Does Renters Insurance Cover Storm Damage? appeared first on Apartment Living Tips – Apartment Tips from ApartmentGuide.com.
Tagged All, building, Buy, Buying, Financial WizeYour apartment comes with precautions like smoke and carbon dioxide detectors and alarm systems. But what about extreme weather events and natural disasters?
Your landlord’s insurance may only cover the building structure. But you’ve done your due diligence and signed up for renters insurance, insurance coverage that protects you and your belongings inside your rental.
But depending on the natural disaster, your policy could not be exhaustive enough and provide you with enough coverage. Sure, a tornado may be included, but not a big flood or landslide.
According to esurance, the average renter owns about $20,000 in personal property. That’s a lot of valuables, many of which are unable to be replaced.
Learn more about what kind of storm damage renters insurance covers â and what it doesn’t â and how to make sure you’re covered. If you’re not sure about your coverage, don’t hesitate to reach out to your insurance agent.
You’re covered for these
Most renters insurance policies cover damage from hail, lighting, windstorms, wildfires and the weight (think ceiling/roof) of ice, snow and sleet.
These perils, as they’re called by the insurance company, are often covered and you may receive a reimbursement to replace your damaged items.
If the wind breaks a window and your living room furniture gets ruined from the hurricane-force winds, you may be covered under your policy.
When speaking to your agent, depending on how bad the storm damage is, make sure that your policy covers alternative housing while repairs are ongoing. Your renters insurance may pay for you to stay at a hotel in the meantime.
You’re not covered for flood damage
Nearly 41 million Americans currently live in flood zones. But renters insurance does not cover flood damage, just water damage caused by appliances.
If there’s a high risk of floods in your area, consider an umbrella flood policy to protect yourself and your belongings. First, use the FEMA Flood Map to identify your area and its risk of flood.
If you need protection, the National Flood Insurance Program, a community program insurance policy, offers access to participating flood insurance providers. Before signing, ask how soon until the policy goes into effect â 30 days is the standard.
The flood policy will help you return your property to pre-flood conditions, according to FEMA.
Or earth movement
Half of U.S. residents are at risk for damage from an earthquake, according to the United States Geological Survey’s (USGS). Most people think of California and the Pacific Northwest. But there are many spots around the country that exhibit earthquakes with enough magnitude to cause damage. Just last December, scientists recorded a 4.4 earthquake in Tennessee.
Earth movement doesn’t only include earthquakes, but also landslides and volcanic eruption. None of these events are included in your renters insurance coverage.
Depending on your home’s location, you may consider buying an additional policy for earthquake, landslide or earth movement protection. According to USAA, there are grants available in California to discount the price of earthquake insurance.
For landslides, an additional policy is required. It’s based on the property’s slope, house value, closeness to nearby mountains and hills and frequency of landslides. It’s expensive so be sure that your home needs it before pulling the trigger.
Choosing reimbursement
The main issue will be replacing your valuables after the storm damage. When looking for the best policy for you, talk to your agent about the benefit of replacement cost coverage vs. actual cash value coverage.
Depending on your items, one may be better than the other. Replacement reimbursement gives you the value amount for the item as if it was purchased today. The actual cash value is the depreciated value of it before the damage occurred.
How can your property manager help?
After the incident, follow up with your landlord or property manager to confirm the timeline of repairs. If the storm damaged the outside of the structure and deemed your home less than optimal for living, inquire about reimbursement for alternative living costs.
Inventory all damaged belongings once it’s safe to do so after the storm. Let your landlord know that you’re coordinating as well with your renter’s insurance. You’ll be glad that you have an up-to-date policy to help you get back on your feet during this scary time.
The post Does Renters Insurance Cover Storm Damage? appeared first on Apartment Living Tips – Apartment Tips from ApartmentGuide.com.
Source: apartmentguide.com

Parking Options When Your Community Doesn’t Have a Parking Lot
If you’re unit doesn’t come with parking, there are options.
The post Parking Options When Your Community Doesn’t Have a Parking Lot appeared first on Apartment Living Tips – Apartment Tips from ApartmentGuide.com.
Tagged building, Cities, Family, Financial Wize, FinancialWizeParking is an amenity that some people don’t even think about when looking to rent an apartment. But if you want the convenience of a covered garage or a guaranteed spot for your vehicle, it has to be part of your must-haves.
When a space is not included, then it becomes a much bigger deal. Do you live in an apartment complex that doesn’t have a parking lot? No worries, we’ve got a few options for you to consider.
1. Street parking
Depending on where you live, street parking may be an available option at no cost to you. While it may be free, it’s often on a first-come, first-serve basis. This means you’ll have to try your luck and find an open parking spot.
Know ahead of time that some street parking will cost you. Think metered spaces or a permit for a block or specific neighborhood. More often than not, time restrictions on parking will be part of the deal.
Keep an eye out for signs posted with instructions. Pay attention to avoid getting a ticket, having your car booted or towed.
2. Garage or lot parking
If your complex or apartment building doesn’t have its own garage, then paid parking in a nearby garage is an option. Or, a parking lot within walking distance of your home. Parking lots are most common near shops, bars and restaurants, according to the Parking Network.
There are parking lots that are open throughout the year, but some are also improvised. Think of when you’ve gone to an event. Where do people park for a music festival that only happens once a year? There might be an open nearby meadow for parking, for example.
Paid parking lots and garages sometimes include a parking attendant. Gated entries require a ticket to enter and leave, or a machine to pay the parking fee. For this type of parking, you’re usually charged for the amount of time that you park. If your car is there for more than a few hours, you may incur a flat fee for daily parking.
When parking in an area that requires you to take a ticket, be sure to hold onto the ticket to leave. If you lose the ticket, you may pay a flat fee, which could be more than the cost of the time you actually parked in the space.
It’s a good idea to shop around for the best rate since costs vary from garage to lot. While comparing rates, look at whether it is cheaper to pay for daily vs. hourly parking.
3. Parking apps
Source: Parknay
Parking apps are one answer, especially in a lot of urban locales. Searching for and paying for parking has become easier because of parking apps. Some apps even let you make a reservation and will provide instructions on how to redeem parking at the garage.
Parknav is an app that offers real-time predictive street parking in more than 200 cities. Search the app for an address. Parknav displays a map with nearby streets. These streets are color-coded according to the likelihood of finding parking there.
That’s only one app out of many that help you find parking. Some apps are city-specific and there are even a few that help you save money. A quick search on your phone’s app store will give you a list of useful parking apps.
4. Ditch the car for public transportation
Although it may not be ideal for everyone, public transportation is an option. Do you live in a transit-rich city? If you live in an area that’s easily accessible by mass transit or has everything you need within a short distance, you can always sell your car and use the bus, subway, train, bike or walk.
This option may save you money and will remove the stress of having to find parking. There’s a huge variation among different cities in the price of parking.
Park wisely
Parking is a problem when you live in an apartment without dedicated spaces. It’s also an issue when you’re a two-car family and you’ve only got one reserved space. Street parking could be lacking where you live. Especially in urban areas.
Some cities want to require the unbundling of parking space rentals from housing lease agreements, reports the Seattle Transit blog, which could lead to lower rents! Whatever the case, try to avoid parking in areas that are not well lit at night, block driveways or are in prohibited areas.
If you find that parking is important to you, keep this in mind for future apartment searches. But even if your apartment complex doesn’t have a parking lot, don’t stress. Just look around and know that you have options.
The post Parking Options When Your Community Doesn’t Have a Parking Lot appeared first on Apartment Living Tips – Apartment Tips from ApartmentGuide.com.

The 2021 Monkey Dartboard Investing Invitational
Let’s put dartboard investing to the test, using real money in this year-long investing experiment. Will the darts beat the experts?
Tagged All, building, Financial Wize, FinancialWize, InvestingWe’re going to run a stock-picking competition in 2021. You can follow along. I’ve asked my patrons to make their stock picks. And I’m putting my real money on the line. Welcome to the 2021 Monkey Dartboard Investing Invitational.
P.S. If you’re looking for a 2021 New Year’s resolution, I’d suggest you try out the 2021 Savings Goal Calculator. It’ll help you calculate how much money you should aim to save in the coming year.
Monkeys and a Dartboard
This story starts in Burton Malkiel’s seminal work A Random Walk Down Wall Street. In that book, Malkiel writes:
A blindfolded monkey throwing darts at a newspaper’s financial pages could select a portfolio that would do just as well as one carefully selected by experts.
-Burton Malkiel
Surely Malkiel is bananas…right? Dartboard investing sounds…well it sounds dumb!
Actually, Malkiel’s bold statement was based on academic market research. Malkiel found that picking winning stocks is extremely difficult, even for experts. The question of “luck vs. skill” in the stock market has been answered. Consistent positive results—the result of skill—rarely occur. It’s mostly luck. And that means random monkeys can compete with seasoned “experts.”
If a few monkey throw a few darts, they’ll create a semi-diverse portfolio. That’s what we’ll be doing today.
But we could go a step further and take the monkey business infinite. With enough monkeys throwing enough darts, your portfolio would begin to look like a balanced distribution of the entire stock market. Ah-ha! We have a name for that concept. It’s an index fund. And that’s exclusively what I utilize in my personal investments.
That’s right. I don’t pick my own stocks. I don’t let another person pick my stocks. I let a million monkeys pick my stocks via dartboard investing. Why? Because the math predicts it’ll work, and history has proven those predictions true.
Sounds crazy, I know. Here’s how it worked out in 2020.
But if everyone invested in index funds, surely that’d lead to problems?!
Some investors argue that index funds are causing an asset bubble. Let’s dig into some quick details.
An efficient market, they claim, needs intelligent investors making informed decisions. Index funds, however, are “stupid.â An index fund does not make decisions for itself, but rather purchases stocks based on what everyone else in the market is doing. It’s just monkeys following the crowd. Dartboard investing misses obvious opportunities and therefore is inefficient. This is a reasonable argument.
Another index fund bubble argument points out that the stock market is like a “big theater with a small door.” Small trouble can lead to big panic. When baby boomers begin sell their stocks to fund their retirements, it could cause a mad dash for the exit door. “Sell stocks now, or else they’ll tank even further in price.” The prices will drop and drop and drop. Thus, they claim, the bubble will pop.
My two cents: the index fund bubble arguments are hogwash.
Asking My Patrons to Throw Darts
Letâs get back to todayâs monkey business.
I reached out to the wonderful Best Interest patrons to help me with this year-long experiment. I asked them to give me a number 1 through 1000. Little did they know, their numbers would dictate which stocks I bought in this experiment.
The Russell 3000 is a stock market index, similar to the S&P 500 or Dow Jones. The Russell 3000 contains 3000 American stocks. It attempts to benchmark, or track, the entire U.S. stock market. Each patron’s chosen “dart” would hit three of these Russell 3000 stocks to add to my portfolio.
So let’s take a look at patron Craig, who picked 501. Great choice, Craig. Because of that pick, I’m going to include stock #501, #1501, and #2501 from the Russell 3000 in my portfolio. As of this writing, those stocks are:
- 501: RPM International, an American multinational company with subsidiaries that manufacture and market high-performance specialty coatings, sealants and building materials
- 1501: Zentalis Pharmaceuticals, a clinical-stage biopharmaceutical company focused on developing clinically differentiated, novel small molecule therapeutics that target fundamental biological pathways in cancer.
- 2501: Preferred Apartment Communities, is a Maryland-based REIT corporation that acquires and operates multifamily properties in select targeted markets throughout the United States.
And then I’ll do the same for all the other patrons. We’ll have 33 total darts thrown onto our dartboard investing portfolio. This Google Sheet breaks down the portfolio and will be used to track the portfolio’s performance over the next year.
Link: The 2021 Monkey Dartboard Investing Invitational Google Sheet Tracker
How Will We Rate the Portfolio’s Performance?
There are a few ways we can consider evaluating this portfolio’s 2021 performance.
The first way is to compare it against the market in general—will our random picks outperform the market as a whole? Will they perform better than the S&P500? Better than the totality of the Russell 3000?
The second comparison is against some “expert” hand-picked mutual funds. For example, here are the first five “alpha mutual funds” I found via a Google search. (“Alpha” in this context refers to fund performance that is uncorrelated to general market performance. These mutual funds are trying to beat the market, not just mimic the market the way an index fund would.)
Below are the mutual fund ticker symbols, their net asset values, and their expense ratios. We’ll track these over time in the Google Sheet for comparison.
- NEXTX, NAV = $44.53, Exp = 1.34%
- ATRFX, NAV = $8.98, Exp = 3.02%
- ALFAX, NAV = $26.32, Exp = 1.53%
- IQDAX, NAV = $12.45, Exp = 2.46%
- TTDAX, NAV = $13.04, Exp = 1.31%
The goal of these funds is to outperform the rest of the market. At the very least, they ought to beat the Best Interest monkeys patrons, right? Time will tell.
Small Cap vs. Large Cap
Of the 33 stocks in our portfolio, 6 of them are considering “large-cap,” having a total market capitalization (e.g. total value of all their stock shares) of $10 billion or higher. Another 13 are “mid-cap,” with a market cap between $2 billion and $10 billion. The remaining 14 are “small-cap,” with market caps less than $2 billion.
That means about 80% of our portfolio is associated with small-cap and mid-cap stocks. Historical precedent suggests that these small businesses tend to be higher risk/higher reward investments when compared against large-cap stocks. But in this short 1-year context, I’m not sure that’ll matter. In one given year, the large-cap vs. small-cap preference is a 50-50 coin flip.

The Proudest Monkey
At the end of 2021, I bet that one of the Best Interest patrons will see that their three stocks performed significantly better than average, while another patron will drastically underperform the field.
It will be tempting to ask, “Is one of those patrons more skilled than the others?”
Of course, the answer is no. We already know that. These were random choices that the patrons weren’t even aware they were making.
While the real stock market isn’t quite as random, it is still closer to pure randomness than it is to pure skill. It’s better to be lazy than to hope that you’re skilled, and an MIT study backs up that idea.
Learn Through Practice
Nothing teaches a lesson like having skin in the game. If choosing stocks makes you nervous, my hope is that this fun year-long exercise will help you learn that (despite not having skin in the game yourself). I have $1650 in this game, and it’ll be fun to see what happens to that money!
If you enjoyed this article and want to read more, Iâd suggest checking out my Archive or Subscribing to get future articles emailed to your inbox. Thatâs how you can get future updates throughout this year
This articleâjust like every otherâis supported by readers like you.
Source: bestinterest.blog

DoorDash vs. UberEats: Which App Is Right For Your Next Side Gig?
For better or worse, apps like DoorDash and Uber Eats have disrupted the food-delivery industry. Since their launch in 2013 and 2014 respectively, restaurants across the country have outsourced delivery services to independent drivers who use the apps to make extra cash. During the pandemic, these services have seen demand like never before. For customers, [â¦]
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.
Tagged All, Auto, Cities, Coronavirus, CreditFor better or worse, apps like DoorDash and Uber Eats have disrupted the food-delivery industry. Since their launch in 2013 and 2014 respectively, restaurants across the country have outsourced delivery services to independent drivers who use the apps to make extra cash.
During the pandemic, these services have seen demand like never before. For customers, the apps make ordering food from just about any restaurant as easy as opening their smartphones. For drivers, itâs almost as easy to land a delivery job hawking food from local eateries.
But before you download your next job, take some time to review the key differences between DoorDash and Uber Eats so that you can make the most of your delivery gig.
DoorDash vs Uber Eats: The Top Food Delivery Apps Duke It Out
The general premise of the two apps is almost identical: Customers place food orders at local restaurants. The apps alert drivers in the area with the order details. The first driver to accept the order picks up the food and drops it off to the customer. Simple enough, right?
Several differences are worth noting, though. Some minor and some major. We took a deep dive into those differences, looking at pay, vehicle and job requirements, available locations, driver reviews and more to help you make an informed decision before you start delivering.
And if itâs too close to call, you can always sign up for both to see which one suits you better.
Round 1: App Reviews

Because the apps are so popular, theyâve amassed more than 4.1 million driver reviews. Both companies require their drivers to use different apps than customers, a huge perk when trying to get a sense of driversâ perspective. Worker reviews from Glassdoor are also included.
DoorDash Driver (Dasher) Reviews
Feedback from Dashers is overall mixed, but thereâs a clear preference for the iOS version of the app. Trends in negative reviews across all platforms show that many drivers have trouble with glitches and crashes, especially Android users, and that the nature of the work takes a toll on their vehicles. Many negative reviews mention that DoorDashâs strict performance metrics are a hassle.
Workers reviewed DoorDash more than 760,000 times.
App Store (iOS) review: 4.7 out of 5.
Google Play (Android) review: 3.3 out of 5.
Glassdoor review: 3.7 out of 5.
Uber Driver Reviews
More than 3 million drivers reviewed Uber. A caveat worth noting is that Uber has one driver app. That means itâs hard to get the opinions of only Uber Eats drivers because general Uber app reviews are mixed in. Overall, reviews are positive.
Trends in negative delivery reviews on Glassdoor indicate GPS issues and trouble contacting customer service. Several drivers mentioned problems with promotion and surge pay (bonus pay during in-demand times). Negative reviews regarding vehicle wear-and-tear are common.
App Store (iOS) review: 4.6 out of 5.
Google Play (Android) review: 3.8 out of 5.
Glassdoor review: 3.9 out of 5.
Round 2: Job and Vehicle Requirements

To become a Dasher or Uber Eats driver, you have to meet a baseline of requirements. Some are vehicle related and some are age and experience related.
DoorDash
To qualify as a Dasher you must be at least 18. Dashers need to have a valid driverâs license. There are no car requirements, but auto insurance is required. In some markets you can make deliveries on scooters, bicycles and motorcycles.
Uber Eats
To make automobile deliveries, the minimum age requirement is based on your local jurisdiction, plus at least one year of driving experience. Vehicles must be no more than 20 years old. Drivers must be properly insured and can use bikes and scooters in certain markets. The age requirements are higher for those who prefer two wheels â 18 for bicycles and 19 for scooters.
Round 3: Sign-Up Process
Becoming a delivery driver for DoorDash and Uber Eats is simpler than landing a part-time job. You can complete the entire process from your smartphone or computer.
DoorDash
You can sign up to become a Dasher on the driver app. Youâll have to consent to a background and motor vehicle check (and pass both). They could take as little as a few days, but err on the side of a week or two.
After passing the checks, youâll need to select what type of âorientationâ you want. The pandemic paused in-person orientations. Depending on your market you may need to request an âactivation kitâ instead. Receiving your activation kit may take an extra couple of weeks, according to driver reviews.
The activation kit includes a Dasher manual, a hot bag and a credit card, which is used to pay for orders. Once you receive and set up the card through the app, you can start accepting orders.
Uber Eats
For drivers new to Uber, you can sign up on the website or through the driver app. Because of the stricter vehicle requirements, the application requires more detailed information on your ride. A background check is also required, which may take three to five business days to process.
After the background check clears and your application is approved, youâre free to start taking orders. No orientation or additional equipment is needed.
If youâre a current rideshare driver for Uber, itâs easy to start delivering with Uber Eats. You simply opt in to Uber Eats orders through the driver app and start delivering without any additional screening.
Round 4: Pay and Tipping
The two apps handle pay a little differently, both in how you get paid and how you pay for customersâ orders when you pick them up. Neither company offers guaranteed wages (unless you live in California).
DoorDash
As of Fall 2019, the company switched to a payment model where Dashers earn a higher base pay per order in addition to keeping 100% of their tips. Previously, a customerâs tip would subsidize the Dasherâs base pay.
Check out how this food delivery driver may $8,000 in one month.
Dashers report earning between $11 and $15 an hour depending on location, but those earnings arenât guaranteed. Pay is based on how many orders you accept per hour and how much customers tip you. DoorDash pays weekly through direct deposit, or you can access your earnings early through Fast Pay, for $1.99.
When picking up orders, you may be required to pay for the order using the company red card from your activation kit.
Uber Eats
Depending on your location, you can expect to earn $11 to $14 an hour on average. Again, those wages arenât guaranteed because your earnings are based on orders and tips. With Uber Eats, you pocket 100% of your customersâ tips. You get paid weekly via direct deposit, or you can pay a fee to access your earnings early through Instant Pay for 50 cents.
You wonât be involved in the payment process for food orders. Partner restaurants are reimbursed directly by Uber.
Round 5: Available Locations

This oneâs easy. Both services are available in most big cities in all 50 states.
Previously, DoorDash and Uber Eats ran driver support centers in major metro areas of most states. In 2020, many of these centers closed due to the coronavirus. Some still exist, but neither company offers a comprehensive, public list of remaining locations.
Final Round: Additional Perks
Promotional offers are popular with both DoorDash and Uber, but theyâre temporary and vary by location. Aside from sign-up bonuses and referral codes, here are a couple perks that are here to stay.
DoorDash
A few perks unique to DoorDash include grocery delivery options, automatic insurance coverage and health care services.
After youâre screened and accepted as a Dasher, you can choose to deliver food in any city where DoorDash operates, meaning there are no hard location requirements. The company also launched grocery delivery services in some Midwest and West Coast areas.
Dashers also get supplemental auto insurance and occupational accident insurance for accidents or injuries that fall outside your current auto insurance. The insurance plan covers up to $1 million in medical costs, a weekly payment of $500 for disabilities and $150,000 to dependents for fatal accidents. Coverage is automatic. There are no deductibles or premiums.
While DoorDash doesnât offer health insurance, the company does partner with Stride Health, which provides free health care advising and assistance to Dashers who need help finding affordable insurance plans.
10/17/19 @ 9:00 PM

12/31/20 @ 1:55 PM

12/29/18 @ 8:07 PM
Uber Eats
Uber Eats drivers get a variety of discounts and may be eligible for Uber Pro perks.
All Uber drivers receive discounts for vehicle maintenance and phone service plans. Uber also partners with Stride Health to provide health plans and tax advice. Drivers automatically receive supplemental auto insurance, which covers up to $1 million in damages. Thereâs a $1,000 deductible before benefits pay out.
Uber Pro perks have recently expanded to all of Uberâs markets across the U.S. Only top-rated drivers receive Pro perks like tuition and gas reimbursement, and the program is designed for Uber drivers primarily, not Uber Eats drivers.
If you drive for both Uber and Uber Eats, your food deliveries may apply to Uber Pro, but Uber-Eats-only drivers arenât eligible.
Final Decision in DoorDash vs Uber Eats
Ding! Ding! It was an even match-up. Uber Eats and DoorDash were neck and neck throughout. No knockout punches. A good few jabs by DoorDashâs insurance coverage and grocery options and a couple of hooks by Uberâs overall ratings and ability to switch to ridesharing.
The decision goes to our judges. (Thatâs you.)
Adam Hardy is a staff writer at The Penny Hoarder. He covers the gig economy, remote work and other unique ways to make money. Read his âlatest articles here, or say hi on Twitter @hardyjournalism.
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.
Source: thepennyhoarder.com

10 Home Updates That Are Worth the Money
Homeownership is one of the most time-tested ways to build wealth in the U.S. It can help you build wealth thanks to home appreciation â but this isnât always guaranteed (just ask anyone who bought a home right before 2008). Another way to build wealth through homeownership is by upgrading your home, thereby increasing its value. […]
The post 10 Home Updates That Are Worth the Money appeared first on Good Financial Cents®.
Tagged All, Financial Wize, FinancialWize, Home, houseHomeownership is one of the most time-tested ways to build wealth in the U.S. It can help you build wealth thanks to home appreciation â but this isnât always guaranteed (just ask anyone who bought a home right before 2008).
Another way to build wealth through homeownership is by upgrading your home, thereby increasing its value. The idea is that when you eventually sell your home (or pass it on to your heirs) itâll be worth even more than simply keeping up with basic home maintenance alone.
And since you spend around 90% of your time indoors, you might as well enjoy your home a bit more while growing its value.
10 Impactful Ways to Raise Your Homeâs Value
The opportunities for upgrading your home are endless. But if youâre aiming to boost your homeâs value, some upgrades are better than others. Youâll also need to consider whether you feel comfortable with certain DIY projects, or if you prefer to hire a professional.
You could rig-up a picket fence made of the leg lamps from A Christmas Story if you really wanted to, after all, but chances are itâd decrease your property value (if it didnât burn down your house in the process, that is).
Instead, try one of these investment-friendly upgrades, according to the 2020 Cost vs. Value Report from Remodeling Magazine:
- Stone Veneer
- Garage Door Replacement
- Minor Kitchen Remodel
- Replace Siding
- Replace Windows
- Deck Addition
- Replace Entry Door
- Replace Roof
- Remodel Bathroom
- Major Kitchen Remodel
If youâre aiming to boost your homeâs value, some upgrades are better than others.
1. Stone Veneer
Estimated cost: $9,357
Itâs no secret that finding ways to add curb appeal is one of the quickest remodeling wins to increase your homeâs value. Right now, one of the hottest trends is adding manufactured stone veneers to the exterior of your home, generally around the base or as accent walls.
You can DIY this, but it might be better to hire a professional because the materials are expensive. Plus, if you do it wrong, you could waste a lot of money and end up with a wonky result.
2. Garage Door Replacement
Estimated cost: $3,695
If youâre not keen on spending tens of thousands of dollars, a relatively quick win you can go for is simply replacing your garage door with a better model that includes a lifetime warranty. Again, this is one thatâs better left to the pros because itâs an especially dangerous job for newbie DIYers. Besides, installing it yourself is likely to void the warranty anyway.
3. Minor Kitchen Remodel
Estimated cost: $23,452
If you donât mind sitting around in some construction dust for a little while, doing your own minor kitchen remodel is definitely within the scope of DIYers. Itâs also a common home remodel on HGTV and other media.
To reach the value-add touted by the survey, youâll need to replace your oven or cooktop, refrigerator, cabinet doors, countertops, drawer fronts, flooring, and add new paint and trim. It requires a lot of changes, but if you have time to watch a few YouTube tutorials, you can do it yourself fairly easily.
4. Replace Siding
Estimated cost: $14,359 to $17,008
Another big curb-appeal booster is simply replacing your homeâs siding. But not all siding is created equal. Fiber-cement siding costs slightly more and recoups slightly more of the cost. The difference, however, isnât huge and might vary for your individual case.
Vinyl siding is easier to maintain and install, but isnât as fire-resistant as fiber-cement â an increasingly important consideration if you live in the arid West. No matter which type you choose, you might need to rent specialized equipment, like scaffolding, unless youâre an NBA athlete working on a single-story house.
5. Replace Windows
Estimated cost: $17,641 to $21,495
Old, leaky, rackety windows arenât great for curb appeal or energy-efficiency. Thatâs why replacing them can also be a good idea. If youâre nervous about smashing them (and we wouldnât blame you), you can hire a professional. Otherwise, itâs a job thatâs possible for most DIYers.
If you have standard-sized windows, you can get ready-made windows from a home supply store. But youâll likely need to custom-order them to fit your own home.
6. Deck Addition
Estimated cost: $14,360 to $19,856
Decks are one of the easiest home additions to DIY, as long as you have basic carpentry and tool safety skills. You can take your time with decks since theyâre outside of your home and not directly in your everyday living space. Composite decks are slightly more expensive than wooden decks but have the advantage of longevity and less maintenance necessary over the years.
7. Replace Entry Door
Estimated cost: $1,881
Another easy and low-cost project, replacing the front door gives you an instant boost to your curb appeal. Just about anyone can do it with the help of YouTube video tutorials and a good, strong arm.
8. Replace Roof
Estimated cost: $24,700 to $40,318
Your roof is literally the cap to your home. Replacing the roof is a big job, and although hammering in shingles seems easy (and it is), itâs generally best left to the professionals. A professionally-installed roof comes with a warranty, and takes a day or two to complete.
If you DIY this home improvement project, youâll lose the warranty, and it could take you longer to complete the job. And the longer your roofing project lingers, the longer your home is vulnerable to damage.
Another point to remember â metal roofs are far more expensive than asphalt shingle roofs, but they also tend to last longer and require less maintenance.
9. Remodel Bathroom
Estimated cost: $21,377 to $34,643
As long as youâre not making major changes to the plumbing and electrical systems underlying the fixtures, a bathroom remodel is possible on your own. This is an especially common remodel for many DIYers, because along with the kitchen and the bedroom, itâs a daily-use room.
10. Major Kitchen Remodel
Estimated cost: $68,490 to $135,547
If youâre looking to bring a 1950s-style kitchen into the 21st century, itâll take a bit more than some extra spit and glue. Youâll need to make big changes, like adding in a vented range hood for those blackened-fish tacos, new recessed and under-cabinet lighting, new cabinets, and even adding in an island for better cooking options. For that reason, itâs usually better to hire a professional team who can make sure everythingâs wired up right.
Your Mileage May Vary
Here’s something to consider: on average, you’ll only recoup a portion of your cost if you complete the upgrade and then sell your home in the same year. That might seem a bit disappointing â shouldnât you be able to recoup all of the cost, and then some?
Remember, your specific case might be very different depending on a lot of factors, like what area of your home could use work. For example, if your exterior looks tired and the siding is falling off, upgrading that rather than adding a new deck might give you a better payoff.Â
Another factor affecting your return on investment is how long you let your homeâs value appreciate, before selling it. Adding a stone veneer can help you recoup 96% of your cost in the first year. However, in the second year, consider whether you can boost the value of your home by more than you paid for the upgrade.
If you plan on selling your home in the future, asking a local realtor or real estate investor which upgrades are best for your particular home can be worthwhile. After all, market conditions vary dramatically cross the country and no two homes are exactly the same.Â
The post 10 Home Updates That Are Worth the Money appeared first on Good Financial Cents®.
Source: goodfinancialcents.com

How to Get Approved for Credit in a Financial Downturn
In a recession itâs common for many people to rely on credit cards and loans to balance their finances. Itâs the ultimate catch-22 since, during a recession, these financial products can be even harder to qualify for. This holds true, according to historical data from the Federal Reserve Bank of St. Louis. It found that […]
The post How to Get Approved for Credit in a Financial Downturn appeared first on Good Financial Cents®.
Tagged All, Auto, budget, Credit, credit repairIn a recession itâs common for many people to rely on credit cards and loans to balance their finances. Itâs the ultimate catch-22 since, during a recession, these financial products can be even harder to qualify for.
This holds true, according to historical data from the Federal Reserve Bank of St. Louis. It found that during the 2007 recession, loan growth at traditional banks decreased and remained deflated over the next four years.Â
Credit can be a powerful tool to help you make ends meet and keep moving forward financially. Hereâs what you can do if youâre struggling to access credit during a weak economy.
Lending becomes riskier in a weak economy. Does this mean youâre completely out of luck if you have bad credit? Not necessarily, but you might need to take the time to understand all of your alternatives.
How Does a Financial Downturn Affect Lending?
Giving someone a loan or approving them for a credit card carries a certain amount of risk for a lender. After all, thereâs a chance you could stop making payments and the lender could lose all the funds you borrowed, especially with unsecured loans.
For lenders, this concept is called, âdelinquencyâ. Theyâre constantly trying to get their delinquency rate lower; in a booming economy, the delinquency rate at commercial banks is usually under 2%.
Lending becomes riskier in a weak economy. There are all sorts of reasons a person might stop paying their loan or credit card bills. You might lose your job, or unexpected medical bills might demand more of your budget. Because lenders know the chances of anyone becoming delinquent are much higher in a weak economy, they tend to restrict their lending criteria so theyâre only serving the lowest-risk borrowers. That can leave people with poor credit in a tough financial position.
Before approving you for a loan, lenders typically look at criteria such as:
- Income stability
- Debt-to-income ratio
- Credit score
- Co-signers, if applicable
- Down payment size (for loans, like a mortgage)
Does this mean youâre completely out of luck if you have bad credit? Not necessarily, but you might need to take the time to understand all of your alternatives.
5 Ways to Help Get Your Credit Application Approved
Although every lender has different approval criteria, these strategies speak to typical commonalities across most lenders.
1. Pay Off Debt
Paying off some of your debt might feel bold, but it can be helpful when it comes to an application for credit. Repaying your debt reduces your debt-to-income ratio, typically an important metric lenders look at for loans such as a mortgage. Also, paying off debt could help improve your credit utilization ratio, which is a measure of how much available credit youâre currently using right now. If youâre using most of the credit thatâs available to you, that could indicate you donât have enough cash on hand.
Not sure what debt-to-income ratio to aim for? The Consumer Financial Protection Bureau suggests keeping yours no higher than 43%.
2. Find a Cosigner
For those with poor credit, a trusted cosigner can make the difference between getting approved for credit or starting back at square one.
When someone cosigns for your loan theyâll need to provide information on their income, employment and credit score â as if they were applying for the loan on their own. Ideally, their credit score and income should be higher than yours. This gives your lender enough confidence to write the loan knowing that, if you canât make your payments, your cosigner is liable for the bill.
Since your cosigner is legally responsible for your debt, their credit is negatively impacted if you stop making payments. For this reason, many people are wary of cosigning.
In a recession, it might be difficult to find someone with enough financial stability to cosign for you. If you go this route, have a candid conversation with your prospective cosigner in advance about expectations in the worst-case scenario.
3. Raise Your Credit Score
If your credit score just isnât high enough to qualify for conventional credit you could take some time to focus on improving it. Raising your credit score might sound daunting, but itâs definitely possible.Â
Here are some strategies you can pursue:
- Report your rent payments. Rent payments arenât typically included as part of the equation when calculating your credit score, but they can be. Some companies, like Rental Kharma, will report your timely rent payments to credit reporting agencies. Showing a history of positive payment can help improve your credit score.Â
- Make sure your credit report is updated. Itâs not uncommon for your credit report to have mistakes in it that can artificially deflate your credit score. Request a free copy of your credit report every year, which you can do online through Experian Free Credit Report. If you find inaccuracies, disputing them could help improve your credit score.Â
- Bring all of your payments current. If youâve fallen behind on any payments, bringing everything current is an important part of improving your credit score. If your lender or credit card company is reporting late payments a long history of this can damage your credit score. When possible speak to your creditor to work out a solution, before you anticipate being late on a payment.
- Use a credit repair agency. If tackling your credit score is overwhelming you could opt to work with a reputable credit repair agency to help you get back on track. Be sure to compare credit repair agencies before moving forward with one. Companies that offer a free consultation and have a strong track record are ideal to work with.
Raising your credit isnât an immediate solution â itâs not going to help you get a loan or qualify for a credit card tomorrow. However, making these changes now can start to add up over time.
4. Find an Online Lender or Credit Union
Although traditional banks can be strict with their lending policies, some smaller lenders or credit unions offer some flexibility. For example, credit unions are authorized to provide Payday Loan Alternatives (PALs). These are small-dollar, short-term loans available to borrowers whoâve been a member of qualifying credit unions for at least a month.
Some online lenders might also have more relaxed criteria for writing loans in a weak economy. However, you should remember that if you have bad credit youâre likely considered a riskier applicant, which means a higher interest rate. Before signing for a line of credit, compare several lenders on the basis of your quoted APR â which includes any fees like an origination fee, your loanâs term, and any additional fees, such as late fees.
5. Increase Your Down Payment
If youâre trying to apply for a mortgage or auto loan, increasing your down payment could help if youâre having a tough time getting approved.
When you increase your down payment, you essentially decrease the size of your loan, and lower the lenderâs risk. If you donât have enough cash on hand to increase your down payment, this might mean opting for a less expensive car or home so that the lump sum down payment that you have covers a greater proportion of the purchase cost.
Loans vs. Credit Cards: Differences in Credit Approval
Not all types of credit are created equal. Personal loans are considered installment credit and are repaid in fixed payments over a set period of time. Credit cards are considered revolving credit, you can keep borrowing to your approved limit as long as you make your minimum payments.
When it comes to credit approvals, one benefit loans have over credit cards is that you might be able to get a secured loan. A secured loan means the lender has some piece of collateral they can recover from you should you stop making payments.
The collateral could be your home, car or other valuable asset, like jewelry or equipment. Having that security might give the lender more flexibility in some situations because they know that, in the worst case scenario, they could sell the collateral item to recover their loss.
The Bottom Line
Borrowing during a financial downturn can be difficult and it might not always be the answer to your situation. Adding to your debt load in a weak economy is a risk. For example, you could unexpectedly lose your job and not be able to pay your bills. Having an added monthly debt payment in your budget can add another challenge to your financial situation.
However, if you can afford to borrow funds during an economic recession, reduced interest rates in these situations can lessen the overall cost of borrowing.
These tips can help tidy your finances so youâre a more attractive borrower to lenders. Thereâs no guarantee your application will be accepted, but improving your finances now gives you a greater borrowing advantage in the future.
The post How to Get Approved for Credit in a Financial Downturn appeared first on Good Financial Cents®.
Source: goodfinancialcents.com
Inheriting property or other assets typically involves filing the appropriate tax forms with the IRS. Schedule K-1 (Form 1041) is used to report a beneficiaryâs share of an estate or trust, including income as well as credits, deductions and profits. … Continue reading →
The post A Guide to Schedule K-1 (Form 1041) appeared first on SmartAsset Blog.