Your 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.
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.
The survival skills cockroaches have are amazing. They can continue living, for a short time, without their heads. They can hold their breath underwater for 40 minutes. They can run up to three miles in a single hour.
This is all great for roaches (and pretty interesting too) â until the ugly bugs infest your apartment. Once they’ve made their way into your home, all you want to do is get rid of them. But, before you make an appointment with an exterminator, consider an organic, DIY approach. Use one of the many natural remedies for roaches to keep them away.
How to get rid of cockroaches
Once you’ve established you’ve got unwanted visitors, whether you’ve seen roaches or just their nasty trails, it’s time to consider how you want to get rid of them. You can use chemicals to do the job, but if you have pets or young children or you’re sensitive to certain products, going natural might be a better option.
When it’s time to get rid of unwanted insect visitors, look to your pantry first, you might already have some of these natural remedies for roaches ready to go.
This is an example of using something sweet to lure cockroaches to their demise. You just have to add a little something extra. Mix one part powdered sugar with three parts boric acid. The sugar brings the bugs in â the boric acid takes them out.
Boric acid isn’t toxic to people or pets, but it can irritate skin. When putting this mixture down, avoid counters and stick to the hidden spots roaches can use for hiding places. Good spots are behind appliances, under the sink and in any cracks along the edges of cabinets.
If either ingredient isn’t readily available, this is a versatile recipe, so you can swap out ingredients to achieve the same effect. Instead of powdered sugar, you can use peanut butter or jelly. You can also replace the boric acid with food-grade diatomaceous earth.
2. Soapy water
If you spot a cockroach and want to kill it without having to get close enough to step on it, keep a spray bottle of soapy water handy. Use diluted dish soap so that whatever surface it gets on also gets clean (an added bonus).
Spraying this mixture directly onto a roach makes it impossible for the bug to breathe. It clogs up their skin, which is how they take in air. It may take an extra little bit to do the trick, and you still have to dispose of the roach but hey â it won’t head back to hang with its buddies.
3. Coffee grounds
This easy-to-find food staple helps make a perfect cockroach trap. They serve as bait to bring the roaches in and are non-toxic for every other member of your home. To make a trap, all you need is a glass jar, coffee grounds and water.
To build your trap:
Fill a large glass jar about halfway with water.
Add 1-2 tablespoons of moistened coffee grounds.
Place the jars as close to potential nesting spots as possible.
The roaches will come in to check out the coffee, climb into the jar and get stuck and eventually drown. Then, dump the entire contents of the trap into the toilet for a goodbye flush.
While lemon won’t work on its own to keep roaches away, using lemon-scented cleaners around your home can have a big impact on keeping the place cockroach-free.
A clean home is the best way to avoid an infestation, and the scent of a lemon actually works to keep a variety of insects from wanting to live in your place.
For an easy, all-purpose cleaner you can make at home, you only need two ingredients â citrus peels and vinegar. To make:
Fill a glass jar with clean, chopped-up lemon peels.
Pour white vinegar over the peels to submerge them and seal the jar.
Let the mixture sit for about four weeks, shaking it regularly.
Strain out the peels and put the liquid into a spray bottle.
This will keep countertops, appliances, floors and glass all clean and smelling great, while also helping you deal with the cockroaches.
Make sure to clean your place regularly, focusing on areas like the kitchen and dining room. Roaches love crumbs and can smell food if packages get left open in your pantry. It’s also a good idea to empty your trash regularly to keep food odors out of your home.
Another big attractor for roaches is moisture. One way to deal with excess moisture in your home is to check your pipes regularly for leaks, but sometimes it’s a matter of high humidity. To deal with this, consider buying a few house plants.
You’ll need a specific type, epiphytes like ferns, orchids and cacti. These are special plants that work as a natural dehumidifier, pulling water from the air to keep themselves hydrated. They’re easy to care for and will help reduce moisture levels in your home.
Place one in every bathroom, on a screened-in porch, or anywhere where the air feels heavy. They won’t repel cockroaches themselves but will help take away a serious temptation for the bugs to come into your home.
This is maybe the strangest of the natural remedies for roaches, but it uses ingredients you’re bound to have at home right now. All you need is an onion and baking soda. Again, the food attracts hungry insects, and the baking soda does the dirty work.
To set this up:
Dice up about half an onion.
Sprinkle baking soda over it.
Place on a small paper plate anywhere roaches may hide overnight.
Since roaches prefer the dark, you’ll most likely âfeed” more if you wait until evening to put out your trap. It’s also best to do it when there’s minimal risk of running into the nasty guys yourself.
When you need to cover up cracks to keep the roaches away, this remedy is a great choice. Not only will it fill the space to let fewer roaches through, but it will also kill any of them who eat it.
Mix equal parts of cornstarch and Plaster of Paris to make a powder you can sprinkle anywhere. Don’t activate the Plaster of Paris with water beforehand. The roaches do that after they eat the concoction when they drink water. It’s the mixing in their stomach that ultimately kills them.
It’s important to note that Plaster of Paris is a toxic ingredient and dangerous for children and pets. Using this recipe specifically in cracks helps keep it away from everyone but the roaches.
Roaches hate the smell of peppermint. They’ll avoid it like the plague. It can also actually harm them if they come into contact with it. Spraying a mixture with peppermint oil directly onto roaches can mean lights out, but that’s only if you see the invaders around.
You’ll have more success using mint as a repellent, targeting areas near where you think roaches are hiding. To make a mint-infused spray:
Mix two parts water with one part white vinegar into a spray bottle.
Add about 10 drops of peppermint oil.
Shake up and spray.
Chemicals aren’t required to keep the roaches away
The question is never if you’ll see a roach in your apartment, but rather when. They’re out there, and there’s a lot of them, but knowing how to repel them and say good-bye for good means you don’t have to live with them. Us
ing natural remedies for roaches allows you to live insect-free without having to buy harsh chemicals or spend money on an exterminator. Just make sure you’re targeting the right areas. Roaches love to live in places like boiler rooms, basements, crawl spaces, steam tunnels, drains and sewers. Happy hunting!
The post Natural Remedies for Roaches: 8 Prevention Methods to Try appeared first on Apartment Living Tips – Apartment Tips from ApartmentGuide.com.
If youâve been keeping your eye on real estate home listings, you mightâve seen more foreclosed properties for sale at a reduced price.
With record levels of unemployment and underemployment, many homeowners are falling further behind on their mortgages. Currently, thereâs a federal moratorium on the most common mortgage programs through December 31, 2020. Unless further homeowner protections are in place, the foreclosure market will see an unfortunate rise.
In fact, according to mortgage and real estate analytics company Black Knight, 2.3 million homeowners are already seriously past-due on their mortgages.
As devastating as it is to have more homes undergoing foreclosure, it also means that prospective home buyers, who were otherwise priced out of buying a home, might have greater access to homeownership. Hereâs what you should know if youâre thinking about buying a foreclosed home.
Buying a foreclosed home can be a win-win situation. You get a good price, and (usually) you can easily fix the property up.
Buying a Foreclosed Home
There are many ways you can buy a foreclosed home, depending on what stage of the process the foreclosure is in:
Pre-foreclosure. Many homeowners are willing to sell before theyâve officially been foreclosed on. Depending on how much equity they have, they might need to do a short sale.
Short sale. Homeowners can seek approval from their lenders to sell you the home for less than they owe on the mortgage. The bank will get less than itâs owed, but it still often approves short sales since they usually cost less than a foreclosure.
Auction. Once a home is foreclosed itâll often be auctioned off by the bank. But youâll need cash on hand for this, and thatâs not an option for most folks who need mortgage financing.
Real-estate owned (REO) properties. Alternatively, banks can simply sell the foreclosed home through more traditional markets, just like a normal home.
Itâs usually easiest to buy the foreclosed home once the bank takes over and it becomes an REO property. Thatâs because you can take your time and go through the mortgage underwriting process. You can also work with a realtor, and â importantly â write contingency clauses in the contract that let you pull out of the deal if a home inspection reveals more repairs than you expected.
Related: How to Add Real Estate to Your Investment Portfolio
7 Caveats to Buying a Foreclosed Home
Buying a foreclosed home isnât exactly the same as buying one directly from the homeowner. Youâre potentially buying a home from a bank who took over after the previous homeowners were unable to afford the home anymore. This introduces a few twists into the home-buying process for you.
1. Youâll Need a Realtor Who Specializes in Foreclosed Homes
The world is full of realtors, even including your Uncle Bob and Cousin Carolyn. But not everyone is equipped to handle the nuances of buying a foreclosed home. There are a lot of issues that can crop up â unplanned property damage, squatters, homeowners who settle the bill and try to reclaim ownership, etc.
If youâre serious about buying a foreclosed home, seek out a realtor with extra experience in this area. There are even special designations that some realtors can get, such as Short Sales and Foreclosure Resource (SFR) or Certified Distressed Property Expert (CDPE).
2. Houses Are Sold âAs-Isâ
With a typical home sale, you have the change to get the property professionally inspected before signing on the dotted line. Itâs not uncommon for new issues to arise, and in a normal home buying transaction, you can often negotiate with the sellers to either fix the damage or discount the price.
Thatâs not the case when you buy a foreclosed home. If a home inspection reveals unexpected damage â like the need for a full roof or a septic system replacement â banks often arenât willing to negotiate. Itâs a take-it-or-leave-it sale.
3. Expect to Put In Some Work
The above point is especially important considering that most foreclosed homes do, in fact, need a lot of fixing up.
Think about it: the previous homeowners lost the house because they couldnât afford the mortgage. Thereâs a good chance they also werenât able to keep up with routine maintenance either. From their perspective, even if they did have the cash, whatâs the point of spending money on repairs, if they know theyâll lose the home in a few months?
You can save money by putting in some sweat equity (HGTV, anyone?), but even then youâll need the cash to pay for materials. This also means that the home might not be move-in ready. If you do move in, you might need to put up with construction debris for a little while. On the bright side, though, this does give you a chance to upgrade the home to your own aesthetics.
4. You Might Need Creative Financing
This brings up another issue: how do you pay for those renovations? Generally, you canât just ask for a bigger mortgage to cover the necessary repairs. Most lenders will only lend you as much as the current home appraisal is worth, minus your down payment.
You have a few options, though. You can hold some money back from your savings to pay for it in cash, but this means youâll have a smaller down payment. An alternative is getting a loan from a different lender, like a personal loan, a 0% APR credit card, or even a home equity loan or line of credit if youâre lucky enough to start from a position with equity.
Finally, there are some special ârenovation mortgagesâ available through Fannie Mae and other lenders. These mortgages actually do allow you to take out a bigger mortgage so you can pay for renovations. You might need to provide a higher down payment or have a higher credit score to qualify, however.
5. Watch for Liens on Foreclosed Homes at Auctions
If you have a big pot of cash and can pay for a home on the same day, an auction might be your best bet. But then you have to worry about a new factor: liens.
If the property had any liens attached to it (such as from the previous homeowners not paying their taxes, or a judgement from unpaid debt), youâll inherit that bill, too.
This is usually only the case for auctioned homes. If you buy a foreclosed home as an REO sale, the bank generally pays off any liens attached to the property. Still, it may be worth double-checking if you have interest in a specific property.
6. Be Prepared to Act Fast
Youâre not the only one with the bright idea to get a low-priced, foreclosed home. Chances are good that there are a few other buyers interested in the property, which increases competition. Even though the home is listed at a big discount, this competition can still drive prices up. You might need to be ready to act fast, just the same as in any hot real estate market.
7. Be Prepared to Wait
On the flip side, thereâs a lot of extra bureaucracy involved in buying a foreclosed home once the seller accepts your offer. Thereâs often extra paperwork to fill out or other complications.
For example, the home appraisal might come back lower than expected, which might make it harder to get enough financing for the agreed-on purchase price. If itâs a short sale, it might also take longer for the bank to approve the lower sale price for the home, based on what the homeownerâs mortgage is currently worth.
Pros and Cons of Foreclosed Homes
Buying a foreclosed home isnât necessarily a good or bad idea on its own. It all depends on your own goals â for example, are you willing to figure out financing for repairs to get a deal on the home purchase price? Also consider how important it is for you to have a âmove-in readyâ home with no hassle.
Weigh these pros and cons carefully, and whatâs most important to you when buying a home.
Can get a deal thatâs lower than market price
Property is sold âas-isâ and might not be move-in ready
Can customize the home to your specifications with repairs and upgrades
Likely needs a lot of repairs and upgrades
Requires creative financing for repairs and upgrades
Foreclosure process is long and might fall through
The Bottom Line
Buying a foreclosed home can be a win-win situation. You get a home at a good price, and (usually) you can bring the property back to good, working order by fixing it up. As long as you go into the deal knowing that itâs not the same experience as a typical home purchase, buying a foreclosed home is a great way to launch into homeownership or real estate investing.
Keep Reading: How to Buy a Second Home that Pays for Itself
The post What to Know Before Buying a Foreclosed Home appeared first on Good Financial CentsÂ®.
Everyone knows that the real estate market fluctuates throughout the year, and some years are more extreme than others. The biggest question on the minds of everyone in 2020 and for the upcoming year is all about knowing when the time is right.
Should I buy or sell a home in Denver right now?
Our expert local agents have your back when it comes to market trends, but hereâs a quick guide on understanding how and why the market changes.
Supply & Demand
The real estate market is often used as the number one example of a supply and demand industry. However, itâs important to understand what makes the demand or supply change. Youâve probably heard of a buyerâs or sellerâs market before; what are they and how do they come about?
Sellerâs market: People use this term when there are eager buyers but few sellers. This means that the homeowners who put their humble abodes up for sale are more likely to get multiple offers. This typically results in higher prices for homes.
Buyerâs market: This term is used when there is a high number of homes on the market and fewer buyers. Sellers often will wait longer for their home to sell and the sale price may be a bit lower than the listing price because buyers have more leverage to work with; when homes arenât flying off the market, sellers are more willing to negotiate to get their sale underway.
The swing from buyerâs to sellerâs market is influenced by several factors. Here are just a few.
Interest rates play a big role in the ability for many buyers to afford a home. Locking into an interest rate is a long-term decision that spans the life of your mortgage in most cases. Therefore, many buyers are hyper-aware of rates and what that means for their payments over time. When interest rates are low, it gives more buyers the opportunity to make homeownership a reality.
If youâre looking to take advantage of low rates as a buyer, we recommend finding a mortgage lender or broker who can find you the best rates in your area and for your circumstances. Not all lenders are created equal, and a loan officer can help you make the best decision. Homie Loans guarantees that they will beat any competitorâs locked loan estimate, or theyâll pay you $500.*
As a seller, itâs still important to be aware of the rates. If youâre selling during a time when rates are high, thereâs a good chance there will be fewer buyers.
Many world and national occurrences, like major storms and weather events, election years, and employment rates, impact the health of the real estate market. Be aware of whatâs happening in your local market and keep an eye on the news.
Time of Year
If youâre looking to sell or buy during winter, be aware of how weather will impact you. Snow makes for undesirable moving conditions. This can mean fewer buyers in the market, which sellers may find extends their timeline for selling but buyers may see less competition.
While spring and summer may seem like the best time of year to sell a home, so will everyone else. Be aware of how the warmer months impact competition.
The Role of Real Estate Experts
Real estate agents are key players when buying or selling a home. Agents, like the pros at Homie, live and breathe the market. Whether itâs a buyerâs or sellerâs market, your agent can help you make the right decision to sell your home fast and for top dollar or help you find and win your dream home within your budget.
You wonât want to enter the competitive real estate market in Denver without one!
Let Homie Help You Make Your Next Move
If youâre ready to take advantage of the hot market to come in 2021, click here to start your listing.
If your dream home is in your 2021 plans, let one of our buyerâs agents help you find and tour the perfect home, and then build a compelling offer. Click here to get in touch.
Want to learn more about buying or selling? Sign up to get more info directly to your inbox!
The post Real Estate Market 2020 Recap & 2021 Forecast Denver, CO appeared first on Homie Blog.
If you’re one of those investors with very little time to research and invest in individual stocks, it might be a good idea to look into investing in mutual funds.
Whether your goal is to save money for retirement, or for a down payment to buy a house, mutual funds are low-cost and effective way to invest your money.
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What is a mutual fund?
A mutual fund is an investment vehicle in which investors, like you ad me, pool their money together. They use the money to invest in securities such as stocks and bonds. A professional manages the funds.
In addition, mutual funds are cost efficient. They offer diversification to your portfolio. They have low minimum investment requirements.
These factors make mutual funds among the best investment vehicles to use. If you’re a beginner investor, you should consider investing in mutual funds or index funds.
Investing in the stock market in general, can be intimidating. If you are just starting out and don’t feel confident in your investing knowledge, you may value the advice of a financial advisor.
Types of mutual funds
There are different types of mutual funds. They are stock funds, bond funds, and money market funds.
Which funds you choose depends on your risk tolerance. While mutual funds in general are less risky than investing in individual stocks, some funds are riskier than others.
However, you can choose a combination of these three types of funds to diversify your portfolio.
Stock funds: a stock fund is a fund that invests heavily in stocks. However, that does not mean stock funds do not have other securities, i.e., bonds. It’s just that the majority of the money invested is in stocks.
Bond funds: if you don’t want your portfolio to fluctuate in value as stocks do, then you should consider bond funds.
Money market funds: money market funds are funds that you invest in if you tend to tap into your investment in the short term.
Sector funds. As the name suggests, sector funds are funds that invests in one particular sector or industry. For example, a fund that invests only in the health care industry is a sector fund. These mutual funds lack diversification. Therefore, you should avoid them or use them in conjunction to another mutual fund.
Index funds. Index funds seek to track the performance of a particular index, such as the Standard & Poorâs 500 index of 500 large U.S. company stocks or the CRSP US Small Cap Index. When you invest in the Vanguard S&P 500 Index fund, youâre essentially buying a piece of the 500 largest publicly traded US companies. Index funds donât jump around. They stay invested in the market.
Income funds: These funds focus invest primarily in corporate bonds. They also invest in some high-dividend stocks.
Balance funds: The portfolio of these funds have a mixed of stocks and bonds. Those funds enjoy capital growth and income dividend.
Related Article: 3 Ways to Protect Your Portfolio from the Volatile Stock Market
The advantages of mutual funds
Diversification. You’ve probably heard the popular saying “don’t put all of your eggs in one basket.” Well, it applies to mutual funds. Mutual funds invest in stocks or bonds from dozens of companies in several industries.
Thus, your risk is spread. If a stock of a company is not doing well, a stock from another company can balance it out. While most funds are diversified, some are not.
For example, sector funds which invest in a specific industry such as real estate can be risky if that industry is not doing well.
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Mutual funds are professionally managed. These fund managers are well educated and experienced. Their job is to analyze data, research companies and find the best investments for the fund.
Thus, investing in mutual funds can be a huge time saver for those who have very little time and those who lack expertise in the matter.
Cost Efficiency. The operating expenses and the cost that you pay to sell or buy a fund are cheaper than trading in individual securities on your own. For example, the best Vanguard mutual funds have operating expenses as low as 0.04%. So by keeping expenses low, these funds can help boost your returns.
Low or Reasonable Minimum Investment. The majority of mutual funds, Vanguard mutual funds, for example, have a reasonable minimum requirement. Some funds even have a minimum of $1,000 and provide a monthly investment plan where you can start with as little as $50 a month.
Related Article: 7 Secrets Smart Professionals Use to Choose Financial Advisors
The disadvantage of mutual funds.
While there are several benefits to investing in mutual funds, there are some disadvantages as well.
Active Fund Management. Mutual funds are actively managed. That means fund mangers are always on the look out for the best securities to purchase. That also means they can easily make mistakes.
Cost/expenses. While cost and expenses of investing in individual stocks are significantly higher than mutual funds, cost of a mutual fund can nonetheless be significant.
High cost can have a negative effect on your investment return. These fees are deducted from your mutual fundâs balance every year. Other fees can apply as well. So always find a company with a low cost.
How you make money with mutual funds.
You make money with mutual funds the same way you would with individual stocks: dividend, capital gain and appreciation.
Dividend: Dividends are cash distributions from a company to its shareholders. Some companies offer dividends; others do not. And those who do pay out dividends are not obligated to do so. And the amount of dividends can vary from year to year.
As a mutual fund investor, you may receive dividend income on a regular basis.
Mutual funds offer dividend reinvestment plans. This means that instead of receiving a cash payment, you can reinvest your dividend income into buying more shares in the fund.
Capital gain distribution: in addition to receiving dividend income from the fund, you make money with mutual funds when you make a profit by selling a stock. This is called “capital gain.”
Capital gain occurs when the fund manager sells stocks for more he bought them for. The resulting profits can be paid out to the fund’s shareholders. Just as dividend income, you have the choice to reinvest your gains in the fund.
Appreciation: If stocks in your fund have appreciated in value, the price per share of the fund will increase as well. So whether you hold your shares for a short term or long term, you stand to make a profit when the shares rise.
Best mutual funds.
Now that you know mutual funds make excellent investments, finding the best mutual funds can be overwhelming.
Vanguard mutual funds.
Vanguard mutual funds are the best out there, because they are relatively cheaper; they are of high quality; a professional manage them; and their operating expenses are relative low.
Here is a list of the best Vanguard mutual funds that you should invest in:
Vanguard Total Stock Market Index Funds
Vanguard 500 Index (VFIAX)
Total International Stock index Fund
Vanguard Health Care Investor
Vanguard Total Stock Market Fund
If you’re looking for a diversified mutual fund, this Vanguard mutual fund is for you. The Vanguard’s VTSAX provides exposure to the entire U.S. stock market which includes stocks from large, medium and small U.S companies.
The top companies include Microsoft, Apple, Amazon. In addition, the expenses are relatively (0.04%). It has a minimum initial investment of $3,000, making it one of the best vanguard stock funds out there.
Vanguard S&P 500 (VFIAX)
The Vanguard 500 Index fund may be appropriate for you if you prefer a mutual fund that focuses on U.S. equities. This fund tracks the performance of the S&P 500, which means it holds about 500 of the largest U.S. stocks.
The largest U.S. companies included in this fund are Facebook, Alphabet/Google, Apple, and Amazon. This index fund has an expense ration of 0.04% and a reasonable minimum initial investment of $3,000.
Vanguard Total International Stock Market
You should consider the Vanguard International Stock Market fund of you prefer a mutual fund that invests in foreign stocks.
This international stock fund exposes its shareholders to over 6,000 non-U.S. stocks from several countries in both developed markets and emerging markets. The minimum investment is also $3,000 with an expense ratio of 0.11%.
Vanguard Health Care Investor
Sector funds are not usually a good idea, because the lack diversification. Sector funds are funds that invest in a specific industry like real estate or health care. However, if you want afund to complement your portfolio, the Vanguard Health Care Investor is a good choice.
This Vanguard mutual fund offers investors exposure to U.S. and foreign equities focusing in the health care industry. The expense ration is a little bit higher, 0.34%. However, the minimum initial investment is $3,000, making it one of the cheapest Vanguard mutual funds.
Mutual funds are great options for beginner investors or investors who have little time to research and invest in individual stocks. When you buy into these low cost investments, you’re essentially buying shares from companies.
Your money are pooled together with those of other investors. If you intend to invest in low cost investment funds, you must know which ones are the best. When it comes to saving money on fees and getting a good return on your investment, Vanguard mutual funds are among the best funds out there.
They provide professional management, diversity, low cost, income and price appreciation.
What’s Next: 5 Mistakes People Make When Hiring A Financial Advisor
Speak with the Right Financial Advisor
If you have questions beyond knowing which of the best Vanguard mutual 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 SmartAssetâs 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.
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One of the lessons Iâve learned as I continue to work my way out of debt is that you need to treat yourself and celebrate your little successes along the way so you can avoid debt fatigue down the road. Celebrating small milestones, like getting another $1,000 knocked off your debt total, starting to put money aside for retirement or paying off a credit card balance, is important for both your sanity and your familyâs sanity.
Find out now: How much money do I need to save for retirement?
I donât have kids, but several of my personal finance blogger friends do, and they have talked about how kids donât always understand how they can contribute to the family financial goals since they donât earn any money. Plus, sometimes kids donât understand why there is a sudden need to cut back on expenses they have come to know as normal- things like going out to eat or having a night out at the movies with friends. Allowing yourself and your family to celebrate your financial wins as you work your way out of debt will help them understand that while your family is now living on a different budget, itâs still okay to enjoy the present.
With that in mind, here are five frugal ways you can celebrate your financial successes, so you donât erase all your progress!
1. Go out for Dessert
As a kid, whenever weâd go out for dessert after a home-cooked meal, it felt like a real fancy treat. Now I know that this was mom and dadâs way of having a celebration without spending a lot of money on paying for a whole meal.
2. Rent a Movie
This may not seem like a treat if you rent movies all the time, but if you are living on a very strict budget and donât often rent movies, this could be a treat for you and your family. Make it the full experience â popcorn, candy, etc. Renting a movie and making popcorn at home is a fun way to celebrate, and itâs still a lot cheaper than going to the theater.
12 Affordable Ways to Have Fun on a Tight Budget
3. Hit a Matinee
Wait, didnât I just say to avoid the theater to save money? Yes, but sometimes movie theaters offer cheaper matinee movies earlier in the day. Often showings before noon can be as little as half price. This is a more budget-friendly way to enjoy a new movie.
4. Buy a Book or Magazine
One of the first things that got cut from my budget when I started focusing on financial goals was my magazine subscription. Most of the time I donât miss it as I have plenty of things to keep me busy, but sometimes itâs nice to somewhat mindlessly flip through a magazine in the evenings. Buying yourself a new book â maybe one of these investing books â or magazine is a fairly cheap way to entertain yourself and if itâs a rare occasion, it can serve as a reward too.
Frugal Summer Fun for Adults
5. Go on a Day Trip
If you arenât traveling too far, the most expensive part of the trip is usually the overnight accommodations. By taking a day trip instead to the beach or somewhere else, you can get out of town and away from the norm without having to shell out for an expensive hotel room.
What other frugal ways can you think of to celebrate your debt successes?
If youâre looking to repair your credit, you may have come across websites that advertise a credit privacy number, credit protection number or CPN. These numbers are nine digits like a Social Security number (SSN), and sellers claim that you can use them instead of your SSN. However, these CPNs are often actual SSNs lifted from real people, reportedly children, prison inmates and the deceased â and you can never legally buy a new SSN. In other words, a CPN is no solution to your credit rating problem. Under no circumstances should you try to buy a CPN.
Why a CPN is No Credit Fix
Websites have sprung up all over the internet, offering CPNs to people with bad credit or low credit scores. They advertise that this number can serve as a âget out of jail freeâ card for your bad credit. In theory, you can use a CPN instead of your SSN on credit applications to hide the poor credit associated with your personal SSN. If you have bad credit but still need a credit card or loan, this can seem like the solution, assuming you can pay anywhere from hundreds to thousands of dollars.
That price might seem worth it for a chance to wipe the slate clean. However, these offers are essentially a big scam. The CPNs you can buy online are not legally assigned credit protection numbers. Instead, they are usually stolen Social Security numbers, taken from children, the deceased or inmates.
Also, using a purchased CPN puts you in some hot water, too. Credit agencies can easily spot discrepancies if you try to use a CPN on an application instead of your SSN. Not only will this fail to help your credit, but itâs also committing fraud which is punishable by jail time.
How to Avoid CPN Scams
If youâre dealing with some bad credit, donât turn to a CPN. Only scammers sell CPNs, and they in turn may cheat you out of your personal information as well as hundreds or thousands of dollars. Using a purchased CPN can also put you in jail, even if you didnât know the number was fraudulent. This is why itâs important to be aware of this popular scam.
If you really need a CPN or new SSN, it will be free. The process will go through the Social Security Administration Office, since a new number would be tied to your old SSN. That said, it is very hard to qualify to receive a new number. Having bad credit is never a qualifying reason.
How to Get a Legal CPN
With so many fraudulent websites and companies trying to sell you a way to reset your credit, itâs hard to know how to get a legal CPN. Unfortunately, thereâs a lot of misinformation out there. Some experts say that you can speak with an attorney to obtain a legal CPN. The attorney can then contact the Social Security Administration Office on your behalf. However, others maintain that all CPNs are illegal.
Generally, it seems that you cannot get a legal CPN unless you actually need one. These situations include celebrities, government officials and people under witness protection. You can also apply in other specific instances, like if youâre a victim of abuse, stalking or identity theft. A real CPN would be attached to your SSN, so itâs still not an escape from the credit tied to your SSN.
You may also stumble upon offers to obtain an EIN, or Employer Identification Number. The IRS does issue EINs, but only businesses can use them for business costs. This means that you cannot legally obtain an EIN as an individual looking to improve your credit. You also cannot make up a home business, apply for an EIN and use that new number for a credit reset. It is a federal crime to obtain an EIN under false pretenses. In any case, the credit profile for your EIN is still tied to your SSN.
You shouldnât ever, under any circumstances, try to purchase a CPN. These offers are fraudulent and donât provide any credit repair or relief. At the very least, buying a CPN wastes money you should put towards repaying your loans in the first place. At worst, you could go to jail for fraud. There are better, more constructive ways to repair your credit. If youâre truly in a situation that calls for a CPN, contact your lawyer for assistance.
Tips on Rebuilding Your Credit
Of course, the best way to legally clean up your credit is to pay back your debts and improve your credit practices. A good place to start is to pay off your credit card debt with the highest interest.
Sometimes youâll just have to wait for your bad history to fall off your record. Generally, negative info stays on your credit report for seven years. If you canât get a debt collection removed from your credit report, for example, itâll stay there for seven years. However, as time goes on, the toll it takes on your report lessens.
Donât go it alone. If you have a good income, but youâre just bad at managing your money, a financial advisor can help. With guidance, you can make smarter choices â and even start growing your wealth. To find an advisor, use our free, no-obligation matching tool. It will connect you with up to three advisors in your area.
On Jan. 20, Chase announced a new card design option for the Amazon Prime Rewards Visa Signature card featuring Whole Foods Market art and added a limited-time sign-up bonus offer for those who prefer to shop at Whole Foods in-store.
Amazon has become a leader in grocery shopping during the pandemic, with consumers avoiding grocery stores due to health safety concerns â not to mention the convenience of shopping from a web browser. Amazon Prime members can enjoy speedy free delivery, as well as get access to online shopping at Whole Foods Market and special member deals when shopping in-store.
They can also count on extra savings if they carry the Amazon Prime Rewards card from Chase â or if theyâre looking to apply in the next few weeks.
Hereâs what you need to know.
Amazon Prime Rewards Visa Signature card
Our rating: 3.8Â out of 5 Score required: Good to excellent Type of card: Cash back Spending categories: Amazon, Whole Foods, restaurants, gas stations, drug stores
5% back on Amazon.com and Whole Foods purchases
2% back on restaurant, gas station and drug store purchases
1% back on other purchases
$70 Amazon.com gift card upon approval or $100 statement credit after spending $100 at Whole Foods in first 2 months
No annual fee
Our take: While the Amazon Prime Rewards card offers excellent cash back on Amazon and Whole Foods purchases, it might not be the best choice for customers who don’t currently have a Prime membership and aren’t looking to subscribe.
A new Whole Foods card design and limited-time offer
Chase introduced a new card design option for new Amazon Prime Rewards cardholders, featuring Whole Foods Market art. New cardmembers with an eligible Prime membership can choose the new design when they apply for the card. If youâre an existing cardholder and would like to switch to the new design option, you can call in to request a new card after Jan. 22.
If you frequently shop at Whole Foods in-store, the new limited-time introductory offer can also be exciting news for you. Through March 3, new Amazon Prime Rewards Visa cardholders can earn a $100 statement credit after spending $100 in Whole Foods Market stores in the first two months from account opening. Alternatively, they can still choose the standard $70 Amazon gift card offer as a sign-up bonus.
Considering the standard bonus is lower, the new temporary offer might be a better deal. On the other hand, if you avoid shopping in-store or normally use Amazon Fresh for buying groceries, the gift card might make more sense for you.
Should I start shopping at Whole Foods if I have an Amazon credit card?
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If you already shop at Whole Foods, the 5% back with the Amazon Prime Rewards Signature Visa and 10% off specially marked items is a good deal. The discounts, though, donât make Whole Foods cheaper than other grocery stores.
In fact, according to a study from 2019, Whole Foods remains the most expensive grocery store with its prices at 34% above Walmart, which was reported to have the lowest prices overall. If your goal is to save on groceries, Whole Foods is evidently not the best option â even if you carry the Amazon Prime card.
Other cards to consider
The Amazon Prime Card isnât the only option you should consider if you often shop on Amazon or at Whole Foods.
See related: Which is the best card to use on Amazon.com purchases?
For instance, with the Chase Amazon.com Rewards Visa card, you can get a $50 Amazon gift card upon approval and earn 3% on Amazon and Whole Foods purchases, 2% percent at restaurants, gas stations and drugstores and 1% on all else. If you donât have a Prime membership and arenât looking to subscribe, this is a good option, since the card doesnât require a cardholder to be a member.
If you do have a membership and shop on Amazon a lot, the Amazon Prime card is a better deal. With 5% for purchases made at Whole Foods and on Amazon, 2% at restaurants, gas stations and drugstores and 1% on all else, this card is hard to beat for Amazon and Whole Foods lovers.
If youâre looking for a card to buy groceries, consider the Blue Cash PreferredÂ® Card from American Express, which could save you more than the Amazon Prime Visa at Whole Foods. Why? Blue Cash Preferred cardholders earn 6% cash back at U.S. supermarkets (up to $6,000 in purchases per year, then 1%).
See related: Best credit cards for grocery shopping
You can now stack your rewards at Whole Foods, earning cash back and the limited-time bonus with the Amazon Prime Card, and you can get extra savings from the loyalty program. Whether it makes sense to shop at Whole Foods, even with rewards cards and the loyalty program, is up to you.
When buying a home, whatâs love got to do with it? As it turns out, more than we thought! Just in time for Valentineâs Day, we surveyed almost 800 people to find out how love shapes different attitudes and experiences of homebuying. (Donât worry, we included singles, too!) Hereâs what our survey found out.
Think two seasoned certified financial planners would have an easy time buying a house? Tony and Barbara Matheson would beg to differ.
In fall 2019, these empty nesters found themselves itching to downsize from their large rental in the uaexpensive San Francisco Bay Area. Hoping to buy a reasonably priced house within walking distance of restaurants and other amenities, they set their sights on Sacramento, CA. Armed with a healthy income, solid credit history, and a deep knowledge of personal financesâplus they’d owned property beforeâthey figured they would sail through the home-buying process.
Six months and three lost bidding wars later, they realized that Sacramento’s real estate market was far more cutthroat than they’d imagined.
In March, the Mathesons finally purchased a three-bedroom, one-bathroom 1926 Tudor on a tree-lined street. With the closing papers signed, they figured they were home-freeâbut COVID-19 was about to throw another curveball into the picture.
Here Tony shares their story,Â and his hard-won lessons for aspiring first-time home buyers and others who want to learn what buying real estate is really like today.
Location: Sacramento, CA House specs: 1,225 square feet, 3 bedrooms, 3 bathrooms List price: $550,000 Price paid: $580,000
Why did you decide to move?
Weâd been living in the Bay Area and were looking to downsize since both of our kids had moved out. We wanted to be near downtown Sacramento, close to restaurants, bars, museums, and coffee shops.
I’d think home buying would be a breeze for two finance pros. How did it go?
I was really surprised by how tough the market was. After five months touring homes, we made an offer on our first house. This house went into a bidding war; we had to raise our bid five times before tapping out.
Next, we fell in love with a second home. This time, we offered the sellers $30,000 over the asking price. The sellers had so many other bids, they never even bothered to counter our offer.
We found a third home, and once again bid over the asking price. But after five tries, we lost out again. It was heartbreaking.
How awful! Why do you think these homes sold to other buyers?
We came prepared with what most consider strong financials for making an offer on a single-family home: great credit scores, a significant down payment, pre-approval for a mortgage. We offered good earnest money and 15-day escrow, didn’t include an appraisal contingency, and probably had a few other bonuses to the seller that I’ve forgotten. So we were doing everything “right.”
What we were finding is that we were up against some other buyers who were making all-cash offers, sometimes $50,000 above the asking price. How does anyone compete with that?
So how did you finally get an offer accepted?
We were extremely fortunate that we had a great real estate agent who was able to find a home that hadn’t been listed yet. We could negotiate one on one with the seller without having to compete against multiple offers.
The sellers had planned to invest $30,000 to $40,000 on home improvements before putting it on the market. We offered to buy the house as is, without the improvements. After going back and forth a few times, the sellers took our offer. Â
What did you like about this house?
We knew within 5 seconds of walking into the house that this was the one. It was the perfect neighborhood. We were close to everything, within walking distance to plenty of bars and restaurants. The outdoor area is gorgeous. Beautiful trees surround our house, and the house is the perfect size for us.
So once your offer was accepted, what happened next?
The sellers werenât prepared to move immediately. They needed time to prepare. So we rented the house back to the sellers for a month after closing. We closed on Valentine’s Day, but we didnât move in until mid-March.
Little did we know what was about to happen.
March is when the coronavirus really hit. What was it like moving during that time?
It was difficult and terrifying in the beginning. We moved in ourselves without hiring movers. Then, after we moved in, it was quite an adjustment. Simple things like calling an electrician or completing other minor home projects were enormously difficult.
Did you make any renovations to your home?
We put $10,000 to $12,000 into the house so far. The major issue after moving in was electricityâit needed to be completely reconfigured. For example, the second bedroom, which became my office, only had two plugs. Between my monitors for work, computers, Peloton, cellphones, and other devices, I needed 12 plugs. We also wanted to put in a tankless water heater for more space, and install a security system. Â
How did quarantine affect these repairs?
It was horrible. We couldnât get anyone to come out to do any work for at least three months. For the first month, no one was booking. Then, when we could finally get through, the businesses were overwhelmed with requests.
What was it like when you finally settled in?
It was exhilarating, exciting, and weird. Exhilarating because we got the house we wanted. Exciting because we were beginning a new phase in our lives. And weird because we moved in at the beginning of the pandemic. We wanted to have a housewarming party, but of course, we couldn’t.
What is your advice for aspiring home buyers?
Even if your finances are completely buttoned up, be prepared that buying a house may be a difficult and even painful process.
Emotionally it does get hard. As much as you try not to get attached to a house during the negotiation process, you can’t help it. And there is a competitive drive that kicks in when you are in a bidding war with others. It’s draining.
Still, in the end,Â knowing that you’ve overcome challenges along the way just makes you more appreciative of the reward at the end. We have a place to call home amidst all this craziness. It’s all worth it.
The post Why 2 Finance Experts Still Struggled To Buy This House appeared first on Real Estate News & Insights | realtor.comÂ®.