About

Apache is functioning normally

St. Louis is known as the “Gateway to the West” to tourists, but locals are more than happy to simply call it the “Lou.” No matter what you like to call this Midwestern hub, one thing’s for certain: There are a lot of excellent St. Louis neighborhoods to call home.

St. Louis really does have it all: great architecture, a sense of community pride (especially when it comes to great beer making), a thriving sports scene, and lot of friendly locals ready to welcome in new residents. The best part? There are 79 distinct and wonderful St. Louis neighborhoods located in the city proper.

Like any big city, neighborhoods in St. Louis are diverse, eclectic, and have their own distinct history and personality. Here are a few of the most popular St. Louis neighborhoods to start apartment hunting in if you’re a new resident:

Central West End

Bordered by St. Louis University and Forest Park, the Central West End is a beautiful neighborhood known for its diverse crowd. Here you’ll find a mix of young singles as well as families. There are many great bars, shops, galleries, and fun sidewalk cafes that line the area.

However, perhaps the most famous building in the Central West End is the Roman Catholic Cathedral Basilica, which boasts one of the largest mosaic art structures on earth. Another major landmark in this neighborhood is the Chase Park Plaza Hotel, one of the city’s most historic hotels.

Due to the neighborhood’s age, there are lots of apartment styles to choose from, from townhomes to high-rises, all with some of St. Louis’s finest architectural highlights. The area hosts a lot of the city festivals too, so be prepared to be out and about– especially during the warm-weather months.

Maplewood

Known as a young, up-and-coming neighborhood, Maplewood could be the perfect area for a resident looking to plant roots and save some green during their first few years in St. Louis. Many locals think Maplewood is the city’s hipster area, and they might not be too far off in their assumptions. For instance, offbeat shops are everywhere in Maplewood, as are laid-back coffeehouses buzzing with creatives and college students.

One of St. Louis’s relics also calls Maplewood home: Saratoga Lanes. This vintage bowling alley is the oldest west of the Mississippi River, according to Explore St. Louis. Beer lovers will also be more than happy to be living in Maplewood, as Schlafly Bottleworks (St. Louis’s most respected craft brewery) offers tours there.

Clayton

Clayton is the famous home of the St. Louis Art Fair, one of the most celebrated events in the city, where 150,000 people flock annually. However, the community events don’t stop there in Clayton. There is also the Gallery Nights receptions and Parties in the Park cocktails (perfect for a roomie weekend outing).

It’s a busy and fast-paced place to call home, but Clayton always presents renters with something to do, whether you’re headed to one of the best bars and restaurants in St. Louis or finding your cultural bearings at one of Clayton’s many art galleries. Clayton is also the home of the St. Louis city government and the Center of Clayton, which is a 136,000-square-foot sports and recreational complex.

Cherokee Street

This is the one neighborhood that everyone in St. Louis is buzzing about. Cherokee Street is full of beautiful vintage and antique shops, artsy and progressive locals, and plenty of Mexican restaurants. If you love all things retro and tacos– this is definitely the place for you.

However, the appeal of Cherokee Street goes well beyond great food and shopping. A lot of renters are flocking here due to the welcoming atmosphere for young startups and business owners.

Many of the businesses here are locally owned and source from excellent vendors. Most have a certain beatnik vibe, making Cherokee Street the perfect place for first-time apartment dwellers or young renters.

If you’re renting with multiple roommates or love to decorate with an industrial, business vibe, then this is the place for you.

Be sure to do some exploring while in St. Louis during your apartment hunt. With literally dozens of neighborhoods, there’s bound to be one with your name on it.

Apache is functioning normally

If you have someone counting on you financially – or even if there is someone in your life who may be required to pay off your debts and your final expenses in case of the unexpected – then you likely need to have life insurance.

You can use life insurance proceeds for any number of circumstances, such as paying off a home mortgage and credit card debt, as well as replacing lost income. Replacing lost income ensures loved ones can continue to pay their everyday living costs, in turn, keeping those you care about from financial hardship.

When you are shopping for life insurance, you want to make sure that you choose the right type and amount of coverage for your specific needs. You should also ensure that the life insurance carrier you obtain the policy from is reliable and stable financially so that your loved ones can be more assured that they will get the funds that are owed to them. One insurer that fits these criteria is the Baltimore Life Insurance Company.

The History of The Baltimore Life Insurance Company

The Baltimore Life Insurance Company was initially founded back in 1882, as The Baltimore Mutual Aid Society of Baltimore City. Five men began the company with a starting sum of $260.93 in company asset. At that time in U.S. history, many people purchased life insurance coverage so that they or a loved one would not have to buried in a potter’s field, as versus replacing lost income of a breadwinner.

While it took several years for the company to start growing, by the year 1900, it was starting to pick up steam. At that time, the company’s name was also changed to The Baltimore Life Insurance Company of Baltimore City.

Over the years, the Baltimore Life Insurance Company has held steady through several recessions, and even depressions, in the United States. But it has persevered. Today, Baltimore Life Insurance Company insures more than 300,000 policy holders – both families and businesses – in communities across the country.

With its home office now located in Owings Mills, Maryland, the Baltimore Life Insurance Company operates in 49 of the U.S. states, and in the District of Columbia. The products and services of the Baltimore Life Insurance Company are marketed through 13 different career agency sales groups that operate in Maryland, Pennsylvania, Ohio, South Carolina, and West Virginia, as well as through an independent sales division.

The company’s independent marketing organizations’ ability to develop strong relationships with clients is the key to the success of clients as well as the insurer. To achieve this, the Baltimore Life Insurance Company offers extensive support, such as:

  • A competitive product portfolio
  • An electronic application and underwriting process (known as INSpeed)
  • Stellar customer service

The key market segment that the company targets is those who are in middle-class America.

The Baltimore Life Insurance Company Review

As of year-end 2016, the Baltimore Life Insurance Company had invested assets of nearly $1.2 billion – which equates to approximately 4 percent more than year-end 2015, and total assets of $1.241 billion. The company’s surplus stood at more than $81 million, which is a significant increase over the year prior.

The company also increased its new business sales in 2016, by 8 percent over its 2015 figures. Given its normalized sales and its death claims, the Baltimore Life Insurance Company continues to demonstrate positive operating income.

Today, just as it was when the company began in 1882, the Baltimore Life Insurance Company serves the mutual interests of its policyholders, its agents, its employees, and the communities around it. Commitment to excellence guides the company’s actions to the following:

  • Financial discipline
  • Making a positive difference
  • Integrity and respect
  • Openness and honesty

The Baltimore Life Insurance Company serves in some ways, including through sponsorships and employee volunteerism. Just some of the charities the company supports include the United Way and the Community Grants Program, as well as regular blood drives via the Red Cross.

Insurer Ratings and Better Business Bureau (BBB) Grade

Based on the company’s financial stability, and its ability to pay out its policyholder claims, the Baltimore Life Insurance Company has a rating of B++ (Good) from A.M. Best Company. This rating is fifth out of a possible 16 ratings.

Also, even though the Baltimore Life Insurance Company is not a Better Business Bureau (BBB) accredited company, the BBB has given this insurer a grade of A+. This is on an overall grading scale of A+ to F. Over the past three years, the Baltimore Life Insurance Company has only had to close out three customer complaints through the Better Business Bureau (and only one of these was in the past 12 months). All three of the complaints centered on problems with the company’s products and services.

Life Insurance Coverage Offered Through The Baltimore Life Insurance Company

The Baltimore Life Insurance Company offers a long list of personal life insurance options to choose. These can help to address both individual and family needs. These policy offerings include the following:

  • Secure Solutions Protector – Level Term Life Insurance – The Secure Solutions Protector level term life insurance coverage offers initial level premium periods of 10, 15, 20, or 30 years. After that, the policy may be renewed on an annual basis. All of the death benefits and the premiums are fully guaranteed to the insured’s age 100.
  • Home Secure – Simplified Issue Level Term Life Insurance Coverage – This plan provides both a death benefit that can be used by beneficiaries, as well as the option for living benefits, which can be applied if the insured becomes disabled or is diagnosed with a terminal illness. These living benefits may also be used if the insured is confined to a skilled nursing home facility. Also, this plan has a return of premium option.
  • Secure Solutions Advantage – Whole Life Insurance – This whole life insurance policy offers guaranteed cash values, along with a level death benefit. The policyholder may also receive dividends from the company to take as cash, or to put towards the purchase of additional life insurance coverage.
  • Silver Guard I, II, and III – For those who are between the ages of 50 and 80, final expense life insurance protection may be necessary. The Silver Guard plan can provide those funds. And, once qualified, as long as the premium remains paid, the plan will stay in force.
  • Lifetime Navigator – Universal Life Insurance – The Lifetime Navigator universal life insurance plan combines the affordability of permanent life insurance, flexible premiums, and a built-in lifetime insurance protection guarantee feature. For those who are seeking long-term protection with a competitive premium cost, this could be a viable option.
  • Generation Legacy – The Generation Legacy allows the transfer of funds from non-qualified annuities and other qualified plans, and offers an easy, tax-efficient way of passing a much later gift from these proceeds to the insured’s loved ones.
  • Secure Solutions – Single Premium Whole Life Insurance – The Secure Solutions Single Premium Whole Life insurance plan allows the transfer of cash funds such as money market and CD accounts. Plus, if the insured is diagnosed with a terminal illness, he or she may access the policy’s living benefits for paying their medical costs, or any other financial need that they see fit.
  • Critical Illness Insurance – The critical illness coverage from the Baltimore Life Insurance Company provides for medical expenses that are associated with the major critical illnesses, such as cancer, heart attack, kidney failure, major organ transplant, and stroke. This plan provides a cash benefit that can be used for costs that are not typically covered by regular health insurance policies such as home health care, experimental medical treatments, copayments and deductibles, and the lost income of a spouse or other caregiver.

Other Products and Services Offered

In addition to the life insurance coverage products that are offered via the Baltimore Life Insurance Company, there are also other products and services that can be obtained through this insurer. These include the following:

  • Retirement Annuities – The annuities that are offered by the Baltimore Life Insurance Company include options such as flexible premium retirement annuities (FPRAs), single premium deferred annuities (SPDAs), and single premium immediate annuities (SPIAs). All of these financial vehicles can help to ensure that a retiree will have an income for a set amount of time in the future.
  • Workplace Solutions – Baltimore Life Insurance Company works with business owners to help provide voluntary supplemental benefits for better meeting the needs of employees and their loved ones. These solutions include a permanent whole life insurance product, critical illness insurance coverage, disability income protection, dental insurance, long-term care insurance, personal major medical coverage, and more.
  • Financial Needs Analysis – The Financial Needs Analysis, or FNA, can help clients to set financial goals, prioritize them, and initiate a plan of action. The FNA should ideally be reviewed on a regular basis.
  • Prescription Savings Program – The Baltimore Life Insurance Company offers the ScriptSave Value Program that can help individuals and families to save money on necessary prescription medications. Both name brand and generics are eligible for this savings program.
  • Personal Planning Guide – Although nobody wants to dwell on it, there can be unexpected expenses thrust upon loved ones when an individual passes away. But, by going through the personal planning guide, individuals and families can plan for such costs in advance, and can often avoid having to dip into savings or other assets to pay these expenses.
  • Grants Program – For over fifteen years, the Baltimore Life’s Community Grants Program has helped many organizations in the communities where the company’s employees live and work.
  • Identification Program – As a community service, Baltimore Life Insurance Company offers several ID card programs to local groups and organizations. These programs can enhance the safety of the communities where the company serves. These cards include Child ID and Youth SportSmart cards, as well as medical emergency cards.

How to Find the Best Life Insurance Premium Quotes with Baltimore Life Insurance Company

If you have been looking for the best life insurance premium quotes on coverage from the Baltimore Life Insurance Company – or from any insurance provider – it is typically recommended that you work in conjunction with an independent life insurance agency or brokerage that has access to many different insurance carriers. In doing so, you will be better able to compare, side-by-side, the plans and the premium prices of different options, and from there you can decide which one will be the best for you and your specific needs.

When you are ready to move forward with comparing available life insurance options, we can help. We are an independent insurance broker, and we work with many of the top life insurance carriers in the industry. We can provide you with all of the important information that you will need for making a well-informed decision – and we can do so right from your computer. If you are ready to begin the process, then all you have to do is just simply fill out our quote form.

We understand how overwhelming it can seem when you are in the process of shopping for life insurance. There are many different policies and companies to choose from – and you want to be sure that you are moving in the right direction. Our life insurance experts can get you through this process easily, though. So, contact us today – we’re here to help.

Source: goodfinancialcents.com


Browse by Topic

Source: mint.intuit.com

Apache is functioning normally

Save more, spend smarter, and make your money go further

Being a homeowner comes with a steep learning curve, and many first-time homebuyers struggle financially in their first year of owning a home. After years of saving for a down payment, they are blindsided by the extra expenses that come with buying and owning a house. It’s frighteningly easy to exhaust your cash reserves before you even move in.


Misunderstandings about the costs of owning a home can push people even further into financial distress. You can avoid a lot of this trouble by doing your research and determining how much house you can actually afford. Develop a sample budget to help you prepare for the cost of homeownership and the expenses that come along with it.


Hidden Costs of Homeownership

Here are some expenses prospective homeowners often forget to consider while they are shopping for a new place to live. Keep these figures in mind as you set your budget for a home.

Utilities

If you’re used to paying for utilities and other costs of living as a renter, it can be tempting to think that homeownership won’t alter your budget significantly — especially if your estimated mortgage payment will be less than what you’ve been paying for rent. However, your new home may use substantially more electricity and gas than an apartment, townhouse, or smaller rental house. Plus, your monthly rent may have included utilities like water or internet. 

Mortgage Payment

Each month, most of your mortgage payment will go toward your principal and interest. However, you’ll also pay additional expenses such as property taxes, homeowners insurance and mortgage insurance. Insurance companies assess these expenses annually, but your lender will collect the fees each month with your mortgage payment and hold the funds in escrow. If you choose a home in a neighborhood with a Homeowners Association (HOA), you’ll also have HOA dues to include in your budget.

Furniture and Decor

New rooms could mean new needs. When you buy a house, the furniture you used in your rental may not be a perfect fit for your new home. Paint, curtains, furniture, and other decorative items can personalize your new home but can be a strain on your budget. If the thought of all new furniture and decor is overwhelming, choose one room to finish at a time.

Lawn Care

As a first-time homeowner, you may find yourself with a whole new set of outdoor responsibilities — mowing grass, trimming hedges, and keeping weeds at bay. If you buy a home in a neighborhood with an HOA, you may face strict lawn care standards.
Whether you choose to do it yourself or hire a service to take care of it for you, lawn care can get expensive. If you go the DIY route, you’ll need to purchase equipment and supplies to get the job done, such as:

  • Lawnmower
  • Weed-eater
  • Hedge trimmer
  • Weed killer
  • Fertilizer
  • Grass seed
  • Pest control products

If you hire a company to take care of your lawn, expect to pay between $100 and $200 per month for basic care.

Renovations

Once the excitement of buying a new house starts to subside, your focus may shift to how your new home meets your needs. Unless you built a home with custom options, you may eventually want to update or renovate.

Renovations are becoming increasingly common among first-time buyers. According to a 2017 study by Houzz, first-time homebuyers spent an average of $33,800 on home renovations in 2016 — up 22% from 2015. Among all homeowners surveyed, the greatest motivating factor for renovating was a desire to customize their home.

Maintenance and Repairs

Maintenance and repairs can be a major budget killer for new homeowners. Many first-time homebuyers overlook the age of the roof, exterior paint, AC unit, and furnace when they buy a home. Even if you buy brand-new construction, you should begin saving for necessary maintenance updates and unforeseen repairs.

Don’t exhaust your savings to purchase your home; keep some money aside for necessary or unexpected repairs.  Some financial experts suggest saving 1-4% of the home’s purchase price each year, depending on the age of your home.

Your homeowner’s insurance should cover damage due to fire or weather, but you’ll still need cash to cover the deductible, which could be anywhere from $200 to $2,000, or more. If you’re concerned about having enough cash on hand in the event of an emergency, look into plans with a higher monthly premium and a lower deductible.


A Sample Budget for Your First Year of Home Expenses

The price for a starter home will vary widely depending on where you live. Looking at average starter home prices around the country and landing somewhere in the middle, here’s a sample budget.

The following sample budget is an example of what your monthly home-related expenses would look like if you purchased a $200,000 home with a 5% down payment. For this sample, we used an online mortgage calculator and the average 30-year fixed mortgage interest rate of 5.10%.

Mortgage Payment

Monthly mortgage payment: $1599


Utilities and Lawn Care (based on national averages)

Gas $82
Electricity $183
Water $40
Sewer / Garbage $20
Internet / Cable $147
Lawn Care $150

Monthly utilities expense:$622


Recommended Maintenance/Repair Fund

Repairs/ Maintenance   $4,000 (based on 2% of purchase price)

Monthly repair/maintenance savings: $333

For this sample budget, your expenses would work out to $2,554 per month. That’s nearly $1,000 more than your monthly mortgage payment.


The Takeaway

Don’t make the mistake of asking how much house you can buy — instead, examine your income and projected expenses to figure out how much you can afford. If you’re buying a home with a spouse or significant other, be sure you’re on the same page.

An experienced real estate agent is an excellent resource. Ask lots of questions: inquire about the home’s roof and exterior, as well as appliances and heating or cooling systems. Your agent can also request information about HOA fees and utility usage from the seller.

For more information on home buying and selling visit Owners.com.

Save more, spend smarter, and make your money go further

  • Previous Post
    Money Moves to Make During Cold Spells

  • Next Post
    Home Equity Loans: The Pros and Cons

Browse Related Articles

Source: mint.intuit.com

Apache is functioning normally

President Bush has signed the economic stimulus package into law. This plan provides tax breaks to businesses that invest in capital equipment, temporarily allows larger mortgages through the Federal Housing Administration (and related entities), and provides a personal income tax cut for 2008. Instead of passing this on when we file taxes next year, the IRS will mail a tax rebate check to most Americans this summer. This is an advance on the reduced taxes for 2008.

How much will you get back? Flexo at Consumerism Commentary recently shared a handy little tax rebate calculator, which I’ve reproduced below:

The tax rebate will have no effect on your 2007 tax return, which you’re probably working on right now. These changes are for the current year. According to the IRS web site:

  • The vast majority of Americans who qualify for the payment will not have to do anything other than file their 2007 individual income tax return to receive their payment this year.
  • The IRS will use information on the tax return to determine eligibility and calculate the amount of the stimulus payments.
  • Taxpayers should be aware that there are identity theft scams involving the proposed advance payment checks (known informally as rebates to many Americans).

Checks will be sent out beginning in May. For more information, read facts about the 2008 stimulus payments from the IRS. Finally, Kathleen Pender at the San Francisco Chronicle was the best source I found on how tax rebates work in the economic stimulus package.

As always, the information in this post is correct to the best of my knowledge. If you spot an error, please let me know so that I can correct this article.

Source: getrichslowly.org

Apache is functioning normally

Zillow has been doubling, tripling, and quadrupling down on its mortgage business – which continues to lose money.

Why it matters: Zillow Homes Loans is a key part of the company’s growth strategy, and an analysis of its current traction highlights the opportunities and challenges on a likely path forward.

Zillow’s mortgage business posted a $167 million loss in 2022, for a cumulative loss of $283 million since 2017.

  • Interestingly, while other mortgage businesses have enacted layoffs and race to cut costs, Zillow is keeping its mortgage operating expenses (OpEx) steady.
     

  • While revenue dropped in 2022, OpEx investment remained high – illustrating that Zillow is continuing to invest in mortgage without pressure to turn a profit.

To succeed, Zillow Home Loans must attach loans to the leads delivered through Zillow’s premier agent and flex programs.

  • Zillow reported that in Raleigh, one of its test markets, customer adoption of Zillow Home Loans increased from 15 to 20 percent.
     

  • This mirrors the progress of Redfin, which reported 21 percent mortgage attach in February compared to 17 percent in Q4.

Yes, but: Attaching mortgage is nothing new for traditional brokerages.

  • HomeServices of America and Prosperity Home Mortgage have achieved 25 percent attach rates at a national scale of over 45,000 funded loans annually – 10x the size of Zillow Home Loans.
     

  • Zillow and Redfin are both below the industry average, and may likely top out at 25 percent, something of a universal constant in the world of attaching mortgage.

Zillow’s next act, announced in early 2022 after Zillow Offers was shuttered, included plans for significant revenue growth through mortgages (adjacent services).

  • A key component of this strategy is integrating Zillow Home Loans into Zillow Flex.

Behind the numbers: Zillow generated about 75,000 Flex transactions in 2022 – if the company scales Zillow Home Loans to 50 percent of its markets with a reasonable 25 percent attach rate, it would close around 9,300 loans and generate around $84 million in additional revenue.

  • A possible end goal could include doubling Flex transactions and launching in 80 percent of Zillow’s markets, with a stretch 30 percent attach rate – leading to 36,000 loans and $324 million in revenue.
     

  • These are large numbers with equally large assumptions; scaling a national mortgage operation is hard (and expensive and people-intensive). 

The bottom line: Zillow is experiencing some early wins in its journey to integrate Zillow Home Loans with its Flex program – but the path forward is uncertain, long, and expensive. 

  • Even after years of investment, Zillow Home Loans (and Redfin) is still playing catch up to the tried-and-true mortgage attach methods of the nation’s largest real estate brokerages.
     

  • A multitude of factors need to go right for Zillow to hit its goals: doubling its Flex program, convincing thousands of Flex agents to promote Zillow Home Loans, and standing up a national mortgage operation to handle 10x the volume. 

Source: mikedp.com

Apache is functioning normally

Our rating

  • Monthly Price: $5.99 per family
  • Discounted Price: Up to 58% off when you pay 24 months in advance
  • Parental Controls: Yes, card lock/unlock and money request approvals
  • Parental Monitoring: Yes, real-time transaction alerts
  • Chores: Yes, management system with built-in payments
  • Rewards: None
  • Interest: Parent-paid only (comes out of parent account)
  • Direct Deposit: Yes, for teens and adults

.kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-table-of-content-wrappadding:23px 23px 23px 23px;background-color:#f9fafa;border-color:#cacaca;border-width:1px 1px 1px 1px;.kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-table-of-contents-titlefont-size:14px;line-height:18px;letter-spacing:0.06px;font-family:-apple-system,BlinkMacSystemFont,”Segoe UI”,Roboto,Oxygen-Sans,Ubuntu,Cantarell,”Helvetica Neue”,sans-serif, “Apple Color Emoji”, “Segoe UI Emoji”, “Segoe UI Symbol”;font-weight:700;text-transform:uppercase;.kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-table-of-content-wrap .kb-table-of-content-listcolor:#001c29;font-size:14px;line-height:21px;letter-spacing:0.01px;font-family:-apple-system,BlinkMacSystemFont,”Segoe UI”,Roboto,Oxygen-Sans,Ubuntu,Cantarell,”Helvetica Neue”,sans-serif, “Apple Color Emoji”, “Segoe UI Emoji”, “Segoe UI Symbol”;font-weight:inherit;.kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-table-of-content-wrap .kb-table-of-content-list .kb-table-of-contents__entry:hovercolor:#16928d;.kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-table-of-content-list limargin-bottom:7px;.kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-table-of-content-list li .kb-table-of-contents-list-submargin-top:7px;.kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-toggle-icon-style-basiccircle .kb-table-of-contents-icon-trigger:after, .kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-toggle-icon-style-basiccircle .kb-table-of-contents-icon-trigger:before, .kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-toggle-icon-style-arrowcircle .kb-table-of-contents-icon-trigger:after, .kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-toggle-icon-style-arrowcircle .kb-table-of-contents-icon-trigger:before, .kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-toggle-icon-style-xclosecircle .kb-table-of-contents-icon-trigger:after, .kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-toggle-icon-style-xclosecircle .kb-table-of-contents-icon-trigger:beforebackground-color:#f9fafa;

Your kid’s first bank account doesn’t have to be a traditional bank account. Several legitimate financial technology companies offer family finance apps with kid-friendly debit cards, customizable parental controls, chore management systems, and even parent-paid interest.

FamZoo is one of those companies. For my money, it’s one of the best. And with no minimum age for kids to join or no limit on the number of kids you can have on the account at one time, it’s never too early or too late to start using it.

Of course, you want to know what you’re getting into before downloading any finance app. Take a few minutes to understand FamZoo’s features, capabilities, upsides, and downsides.

What Is FamZoo?

FamZoo is a personal finance app for families. Major features include debit cards for kids, family and personal budgeting tools, chore assignments and payments, and basic banking capabilities like direct deposit and electronic funds transfers. Each account corresponds to a family unit, with a single recurring fee that covers all debit cards on the account and all advertised features.

FamZoo allows an adult account holder — generally a parent or guardian — to monitor kids’ usage and set parental controls that limit what they can do with their funds. Unlike most family finance apps, it doesn’t require a smartphone.

Funds held in FamZoo accounts have deposit insurance up to the current FDIC limit of $250,000.

What Sets FamZoo Apart?

FamZoo stands out from other kid-friendly debit cards and finance apps for several reasons:

  • Sophisticated chore management capabilities. FamZoo has everything you need to assign, track, and compensate for your kids’ household chores. It’s a big improvement on your family’s chore whiteboard or whatever other nondigital system you use.
  • Parent-paid interest. FamZoo balances don’t earn interest by default, but you can encourage your kids to save by paying them interest out of your own account. You’re free to set the interest rate and the balances it applies to, making it easy to incentivize specific financial behaviors (like saving regularly).
  • No external bank account needed. FamZoo is easier to use if you have an external bank account, but unlike most family finance apps, it doesn’t require one. You can fund your account with cash at thousands of load points around the United States, or with direct deposit from a qualifying employer or government benefits provider.
  • No smartphone needed. You don’t need a mobile app to access FamZoo. You can log into your account from any device with an internet connection. FamZoo even has a text messaging interface that utilizes simple text commands for common functions like funds transfers and payments.

Key Features of FamZoo

FamZoo has straightforward pricing, kid-friendly debit cards, a range of access options, and tons of financial features for the whole family.

Pricing Options

FamZoo requires a paid membership. There’s only one membership level that includes all features, but you can save a considerable amount of money if you prepay in advance. The longer you pay in advance, the more you save:

  • Pay by the month: $5.99 per month
  • Prepay six months: $25.99 ($4.33 per month)
  • Prepay 12 months: $39.99 ($3.33 per month)
  • Prepay 24 months: $59.99 ($2.50 per month)

If you’re paying by the month, you can switch to a prepaid membership at any time.

Account Access (Mobile & Web Apps)

You can access your FamZoo account through the FamZoo mobile app (iOS or Android) or through its website. If you don’t have a smartphone or haven’t downloaded the app, you can perform many FamZoo functions through a text message commands system, but this is probably too clunky to use as your primary FamZoo interface.

Kid & Adult Debit Cards

Every person in your family can get a debit card if they (or you) want, including young kids. 

Your account needs at least one adult card owned by someone 18 or older (generally a parent or guardian). This is the master card for the account. You can add additional adult cards for your spouse or co-parent and any offspring 18 or older. 

Cards for kids under 18 have built-in parental controls. Teens 13 and older jointly own the card with you, while you’re the legal card owner for kids 12 and under.

Direct Deposit for Teens & Adults

Teen and adult cards can accept direct deposits from employers, government agencies, and other qualified payers. 

You can split the direct deposit between multiple FamZoo cards, or between one FamZoo card and an external bank account. This feature is useful if FamZoo isn’t your primary bank account and/or you’d like to share part of your paycheck with your kids (or they with you).

Reload Options

You can reload FamZoo debit cards via direct deposit, transfers from external bank accounts or digital wallets, and cash deposits at tens of thousands of retail load points nationwide. You can find retail load points at many Walmart, CVS, Kmart, Rite Aid, 7-Eleven, and Walgreens outlets. Retailers generally charge a fee for cash loads — often $4.95 per load, but it can vary.

Parental Monitoring & Controls

FamZoo has some basic parental monitoring and control features:

  • Card lock and unlock, which allows you to put a kid in financial time-out if they’re overspending (or in trouble for nonfinancial reasons)
  • Activity alerts, which ping you in real time when a kid uses their card
  • Money requests, which allow you to approve or decline kids’ attempts to transfer money into their account
  • Decline info, which provides detailed information about every declined transaction

Allowance Payments (Instant Card-to-Card Transfers)

FamZoo allows instant card-to-card transfers, which are ideal not only for one-off grants to kids but for weekly or monthly allowance payments. You can automate these transfers if you wish so you don’t have to initiate every single one. 

Chore Management & Payment Tools

FamZoo has a sophisticated chore management and compensation system. It’s built around a “chore chart” that you can use to assign chores, specify a dollar value for successful completion of each, and mark each as completed (thus releasing payment) when they’re done. You can assign chores directly to specific kids, create a “first dibs” chore chart that allows kids to assign chores to themselves, or both.

If you trust your kids, you can allow them to mark chores complete. Or you can use the chore review feature to hold payment for completed chores until you confirm they’re done.

If you prefer, you can reverse the payment-for-chores arrangement and set negative values for negative chores. In other words, instead of a $5 payment for “making the bed,” you can assign a $5 chore penalty for “not making the bed.” 

Customizable Subaccounts

With FamZoo, each user can create as many customizable subaccounts as they wish, earmarking each for a specific purpose (or no purpose). This is a useful feature if you’re teaching your kids the basics of envelope budgeting, encouraging them to separate emergency savings from discretionary savings, or helping them save for specific goals. 

Parent-Paid Interest

FamZoo pays no interest on balances, but it does have a parent-paid interest feature that lets you reward kids for saving. You can pay interest on a specific subaccount or on a kid’s entire balance, and you’re free to set whatever rate you wish. 

Automated Family Billing

You can use your FamZoo account to cover shared expenses like utility bills and automate payments on them, just as you would with a regular bank account. This is a big help if you don’t have another bank account.

Advantages

FamZoo is an affordable family finance app with above-average chore management features and useful tools for savers of all ages.

  • Sophisticated chore management and payment features. Unless your current bank or money management app has a digital chore management platform that rivals FamZoo’s, FamZoo’s is an improvement on whatever system you’re using. 
  • One fee for the whole family. FamZoo is reasonably priced. Unlike some family finance apps, it charges one monthly fee for the entire family, rather than by the card or child account.
  • Significant savings when you pay in advance. You can save more than 50% off the monthly fee when you pay 24 months in advance. That sounds like a long time, but if you’re happy with FamZoo, you can use it for much longer — until your kids are out of the house, or even beyond.
  • Subaccounts help kids budget and save. FamZoo’s subaccounts feature makes it easy for kids (and parents) to save for specific goals, separate emergency cash from everything else, or create and fund category-based buckets for everyday spending.
  • Direct deposit for teen and adult users. Teen and adult cards can accept direct deposit from employers and benefits providers. Even if you’re the primary breadwinner in the home, you can allocate a portion of your paycheck to FamZoo and the rest to your main bank account.
  • Doesn’t require a smartphone or linked bank account. FamZoo has user-friendly mobile apps for iOS and Android, but you don’t have to use them if you don’t want. Its web app is just as capable, and it even has a text messaging interface that you can use for everyday money management. 
  • Open to all ages. FamZoo has no minimum age. This is a notable advantage over family finance apps and kid-friendly debit cards that cut off eligibility at age 12 or 13.

Disadvantages

FamZoo’s few downsides include a distinct lack of educational features and no built-in interest or rewards — parents have to pony up if they want.

  • Limited educational features. You can teach your kids a lot about managing money simply by using FamZoo, but maybe that’s not enough. Unlike competing apps like Greenlight and GoHenry, FamZoo has no education vertical to speak of — no articles, videos, games, or tutorials.
  • No FamZoo-paid interest or rewards. FamZoo pays no interest on balances in any accounts, nor does it have a debit card rewards program. If you want to encourage your kids to save more or spend wisely, you have to do so out of your own pocket.

How FamZoo Stacks Up

FamZoo shares the spotlight with several other popular family finance apps built around kid-friendly debit cards. One of the most popular is Greenlight, which has a wider range of features at correspondingly higher cost.

FamZoo Greenlight
Whole-Family Pricing $5.99 per month or less $4.99 per month and up
Chores Yes Yes
Interest Parent-paid only Parent-paid or Greenlight-paid
Debit Card Rewards No Yes, with higher-priced plans
Investing No Yes
Minimum Age None None

Final Word

FamZoo is an affordable, all-ages family finance app for families big and small. It really shines on chore management and payment — it’s almost certainly better than your current system — and is ideal for parents who want to encourage kids to save more. In a mobile-saturated world, it’s also nice that FamZoo doesn’t require a smartphone.

FamZoo does fall short in some important ways though. Chief among these are its nonexistent rewards program and lack of FamZoo-paid interest. If you want to reward your kids for saving, you need to pay them out of your own pocket. It would be nice if FamZoo had more educational resources too.

Ultimately, it’s your call as to whether FamZoo is right for your family or whether a different family finance app makes more sense.

The Verdict

Our rating

  • Monthly Price: $5.99 per family
  • Discounted Price: Up to 58% off when you pay 24 months in advance
  • Parental Controls: Yes, card lock/unlock and money request approvals
  • Parental Monitoring: Yes, real-time transaction alerts
  • Chores: Yes, management system with built-in payments
  • Rewards: None
  • Interest: Parent-paid only (comes out of parent account)
  • Direct Deposit: Yes, for teens and adults
Editorial Note:
The editorial content on this page is not provided by any bank, credit card issuer, airline, or hotel chain, and has not been reviewed, approved, or otherwise endorsed by any of these entities. Opinions expressed here are the author’s alone, not those of the bank, credit card issuer, airline, or hotel chain, and have not been reviewed, approved, or otherwise endorsed by any of these entities.

Brian Martucci writes about credit cards, banking, insurance, travel, and more. When he’s not investigating time- and money-saving strategies for Money Crashers readers, you can find him exploring his favorite trails or sampling a new cuisine. Reach him on Twitter @Brian_Martucci.

Source: moneycrashers.com

Apache is functioning normally

Last Updated on March 29, 2023 by Mark Ferguson

A cash-out refinance is one of the best tools an investor can use to take money out of their rental properties. A refinance is when you replace the current loan on your home with a new loan, and when you complete a cash-out refinance, you get cash back after getting the loan. One of the biggest roadblocks an investor runs into is finding the cash for down payments on new rental properties. A cash-out refinance is a great way to get cash to buy more properties. When I purchased my first long-term rental, I was able to buy the property from proceeds that came from a cash-out refinance on my personal residence. I was able to take out $40,000 in equity from my personal house, only one year after I bought the home. I have also refinanced multiple rental properties, which has allowed to buy more rentals and I now have 16 rental properties total.

How can you take a cash-out refinance?

Most people get loans on their homes when they buy them. At some point, you may want to consider refinancing that loan for a number of reasons:

Interest rates

If interest rates are much lower now than when you got the loan it may make sense to refinance your current loan into a mortgage with a lower interest rate.

Cash-out

There are many cases where you can get cashback after refinancing. A house could go up in value, you could get a different type of loan, you could make repairs, or make an improvement to a house to increase its value.

The video below goes over a refinance I did on one of my rentals.

[embedded content]

How much does a refinance cost?

The downside to refinancing your home is it costs money. You are getting a brand new loan that will cost about as much as the first loan you got on the home. That can be from 2% to 3% of the loan amount. You have to pay for an appraisal, origination fee, processing fees, flood certificate, and some other fees as well. The good news is that you will most likely skip a mortgage payment after the refinance, but don’t think you are getting an amazing deal because of that as the interest is still charged to you, just upfront in those loan costs.

How can houses increase in value?

Values are going up across the country, and that has created an opportunity for homeowners to do a cash-out refinance. Most banks are using stricter guidelines for qualifications and lower loan to value ratios than before the crash. However, if you bought your home at a great price or have owned it for a while, you still may be able to get cash out.

I do not like to depend on prices to go up. I buy all my properties below market value. I try to buy all my properties at least 20% below what they are currently worth. If they need work, I buy them for much less than 20% below market value. The BRRRR method is a great way to refinance properties and get cash back out by getting great deals and repairing them.

How much money can you take out?

Many banks will require an 80% or lower loan to value ratio when refinancing a rental property and they will use an appraisal to determine that value. It is imperative that you have a lot of equity in your property if you want to complete a cash-out refinance with an investment property. If you are refinancing an owner-occupied home, you may be able to refinance up to 95 percent or more of the value of the home. You must live in the house for a year after refinancing in most cases to get an owner-occupied loan.

What are the risks?

A cash-out refinance will increase the amount of the loan you have on your rental property. For some people who are averse to risk, paying off their home is a great option and they may not want more debt. However, I am not averse to risk and I want to maximize my returns. Debt can be a very bad thing if it is used for the wrong things, but if you use debt to buy cash producing investments it can be a great thing!

In my market, I can get a cash on cash return of 15 percent or higher on rental properties, while interest rates are below 5 percent. It makes more sense to me to refinance for 5 percent and use that money to buy properties that will give me over a 15 percent cash on cash return! That 15 percent return does not even include possible appreciation, tax benefits or mortgage pay down.

Yes, it is possible that values could go down and a cash-out refinance would reduce the equity in your home. If you don’t need to sell your home, then it will not matter how much equity you have in your home. However, if you are pushing how much you can afford with a monthly payment it may not be wise to refinance if it increases your payment. If you have a lot of cash flow and are comfortable with a higher payment, use that money to make more money.

If you increase your debt with a refinance, then you may be decreasing the amount you can qualify for on future homes. If you max out the amount of money a lender will loan to you with a refinance, then you won’t be able to get a loan on a new rental property. Before you refinance, make sure you know how much you will be able to qualify for.

How does a refi work on a rental property?

I recently did a cash-out refinance on one of my rental properties and I was able to pull out about $26,000 with my payment only increasing $136 a month. The terms are usually more restrictive and it can be difficult to refinance if you have more than four mortgaged properties. I was able to do a cash-out refinance with more than four mortgages because I used a portfolio lender. They are a local bank and are much more flexible than big banks.

When I did a cash out refinance on my investment property, the max they would lend was 75 percent of the value of the home. I also could only do a 5 or 7 year ARM or a 15 year fixed loan. I chose the 7 year ARM because I plan to pay off my homes quicker than the 7 year fixed term and the rates and payments are lower than the 15-year loan.

On the property, I paid $92,000 and put about $18,000 into it for repairs. I was able to turn it into a 5 bed, 2 bath and rented it for $1,100 (low because it is rented to my brother-in-law). I had to wait a year to do a cash-out refinance and the current value was determined by an appraisal. The appraisal came in at $140,000 which I thought was low, but I had to go with it. After all the lender fees, interest and miscellaneous costs of the cash out refinance, I was able to cash out over $26,000. My payment went up, but I am still able to cash flow every month and I took out more than enough money for a down payment on another rental property.

What about seasoning periods?

One restriction to completing a cash-out refinance is the seasoning period. Most banks, will not complete a cash-out refi right after you buy the home. They will complete a refinance but loan the lower of the appraised value or what you paid for the home in the last year or 6 months. If you bought the home for $100,000 three months ago, and it appraised for $150,000 last week, the bank will still only lend on the $100,000 purchase price if they have a seasoning period longer than three months.

If they will lend 75% of the value, that means they will only lend $75,00 on the home. Some banks have 6 month seasoning periods, some a year, and some will have none. Make sure you know what your bank will do before you make plans.

Is a HELOC better?

A HELOC (home equity line of credit) is much different from a refinance, because you may not have to pay off your current loan. If you have a $100,000 loan on your house, but your home is worth $200,000 you may be able to get an $80,000 line of credit and keep the $100,000 loan in place. When you take out a line of credit you do not have to use the money right away or ever. You can use as much of the money as you want and pay it back when you like. You can borrow the money again after you pay back the line. A refinance is a mortgage where once you pay off the loan or pay extra money into it, you cannot borrow it again.

A HELOC will have closing costs like a cash-out refinance, but many times they will be less. Depending on if you are getting a line on an investment property or a personal residence the terms and fees will differ. The term of the HELOC could be two years, five years or longer, but not 30 years like a refinance could be. The rates on a HELOC are also usually higher and can go up or down as interest rates go up or down.

It may be tough to get a line of credit on a rental as most banks only want to give lines of credit on primary residences.

Do you pay taxes?

One of the best things about a refinance is you do not pay taxes on it. You can buy a house for $100,000, and refinance it for $150,000 a few months later and the money you take out is almost always tax-free. You are not making any money, you are borrowing it so there is no income tax.

Conclusion

The more properties you can buy, the more cash flow builds up and the more wealth you can create. A cash-out refinance can help you purchase more properties and increase your wealth. Make sure the houses you purchase are bought below market value, and it will make a future cash-out refinance much easier. Make sure your payments are not so much that you are no longer seeing positive cash flow every month.

Build a Rental Property Empire

Categories Money

Source: investfourmore.com

Apache is functioning normally

Mike and Georgia had looked for six months before they found their perfect townhome. Like many buyers, they were more worried about the sellers accepting their offer than they were about investigating the Homeowners Association (HOA). Turns out, the HOA almost ruined the deal. Because the HOA had let their FHA approval lapse, Mike and Georgia were not able to go with an FHA loan. When they switched to a conventional loan, they had to drain their savings in order to qualify for the higher debt-to-income ratios. At this point, they took a more careful look at the HOA’s meeting notes and were alarmed to read that roads would soon need major investments and that HOA fees had been rising higher and faster than local rents for the past five years. The entire scenario was a nightmare, costing Mike extra time and money—and he now gets to pay the association a pretty penny every month for the hassle.

HOAs aren’t usually top of mind when you’re looking to buy a home. In fact, HOAs can be completely overlooked until you learn that your dream house comes with one.

If you’ve carefully figured out just what you can afford to spend every month on a mortgage and then get hit with the added expense of an HOA, you may find your perfect home suddenly out of reach. But all the HOA news isn’t bad. Sometimes the benefits of an association can make homeownership more manageable—especially if you’re used to apartment or condo living.

Whether an HOA is part of your home shopping wish list or not, here’s everything you need to know to make a smart decision when it comes to joining an HOA.

What is an HOA and why do they exist?

One Salt Lake buyer, Kip. A., shared this insight, “HOAs are meant to ensure that a community maintains a good standard of upkeep and generally do a good job at that. Some HOAs might include lawn care, snow removal, and community amenities such as a clubhouse or pool.”

Homeowner associations are legal entities that exist to govern a planned community like a subdivision or apartment complex. HOAs ensure that certain rules and regulations (like what color you can paint your front door) are followed, and usually take responsibility for maintaining common areas like parking and sidewalks. An HOA will typically take care of at least some of the landscaping and exterior home maintenance.

As Kip noted, they can also provide community amenities like a pool, fitness center, and park areas. In some instances, HOAs provide road and waste management to areas that are outside city service areas. HOAs are funded by membership fees that are required to live on the property. Fees can range from $75 to more than $400 per month, depending on the neighborhood and the services provided.

Things to watch out for when it comes to an HOA

If you fall in love with a home that has an HOA, this is your must-do list before putting in an offer.

  • Dig into the fees: Find out what the current fees are, what they cover, and how often you can expect increases. Most HOAs in Utah have some limits on how much fees can be increased without homeowner approval. However, the board can usually approve a minimal increase without asking for input or taking a homeowner vote.
  • Verify what your fee covers: Be very specific when you look into what your HOA fee covers and what it doesn’t. If landscaping is included, find out the specifics—how often is the lawn mowed and edged? Is tree and hedge trimming included? What if you have a broken sprinkler? Verify policies for snow removal, waste and recycling, and which portions of your home are covered for repair under the HOA’s homeowners insurance policy.
  • Ask about big projects: HOAs need to maintain things like roofs, fences, and community amenities like swimming pools. Find out if any big projects are on the horizon and what the costs look like. Sometimes HOAs will impose a special assessment on top of your monthly fees in order to pay for something big like re-tiling the pool.
  • Read the minutes: HOA meeting minutes are public and available to all homeowners. Ask to review recent minutes, which should include the latest financials. Look for any complaints that seem consistent and note outstanding HOA fees from owners who are in arrears. The minutes should also include how much money is currently in the reserve account for emergencies and big projects. This can give you a clue into the health of the community and the potential for extra fees and increases.
  • Study the CC&Rs: The HOA governs the CC&Rs (Covenants, Conditions, & Restrictions) of the community. These are the rules that let homeowners know what modifications are allowed (painting, shutters, etc.) and what is not allowed. Some communities have liberal policies and others are highly restrictive, not even allowing wreaths on front doors or more than one small pet. Owners are fined if they violate the CC&Rs, so it’s highly important to understand what they are and whether or not you can live with them.

Life with an HOA… advice from Homie buyers and sellers

Many Homie buyers and sellers have lived with HOAs—and some have passed on a house because of the HOA—and wanted to share their experiences to help other home buyers.

Rob T. warns homeowners of the costs of an HOA over time, “Make sure that you understand the long-term costs of an HOA and consider if they are providing value equal to that cost. Since you are paying them monthly, make sure they doing their job. HOA‘s can be hit or miss. Some provide great value while others create huge hassles. Where possible, check with current residents in the area to see what they say about their HOA before you buy.”

Justin P. shared why he likes his HOA, “I like having an HOA to protect my property value from gross negligence or outrageous and inconsiderate decisions by neighbors.” However, he added this advice, “Read the CC&Rs to know what restrictions you may have as a homeowner, but judge the HOA’s ability to protect your property value by browsing the existing neighborhood to see how well kept it is.”

Clinton M. cautions potential buyers about possible fines and liens, “When purchasing a home in an HOA neighborhood, be well aware of the fact that your neighbors will be on the lookout for any infractions and are willing to turn you in (subjecting you to fines) for any violations. Be advised that your failure to pay your dues will result in a lien against your property and you can be foreclosed upon by your community. Not surprisingly, the community interest is at stake – if the HOA bankrupts, it goes on your credit too! The best advice I could give to any family or friend would be to think twice about purchasing in an HOA community.”

Homeownership is exciting, and it’s important to feel confident and comfortable about the community in which you buy. If an HOA is part of the package, be sure to do your research first. It’s nearly impossible to get out of HOA requirements and restrictions, and if you’re not happy with how yours is run, you could be in for a world of headaches, extra fees, and disappointment.  

Source: homie.com

Apache is functioning normally

By Peter Anderson 1 Comment – The content of this website often contains affiliate links and I may be compensated if you buy through those links (at no cost to you!). Learn more about how we make money. Last edited August 9, 2011.

Over the last couple of weeks I’ve been writing quite a bit about the Roth 401(k), the Roth IRA as well as Traditional IRA and 401(k) accounts.  We’ve been doing a lot of research for our own family as far as what we want to do with our retirement accounts, and how much we want to save.  We’ve finally decided on a plan of action, but over the course of these past couple of weeks I’ve come to realize something.

You can debate all you want about whether to do pretax or post tax retirement accounts, whether to max out a 401(k) first or to contribute to a Roth IRA, or what kind of funds to put your money in.  When it really comes down to it however, the best retirement plan is one you actually begin and start contributing to… as soon as possible.

Too Many Aren’t Contributing Enough To Retirement

We live in a credit crazy culture, where people are told to live well and high on the hog while they are young and can enjoy it.  Unfortunately far too many people think this is a good idea, and do just that.

The problem is that the life expectancy of people in this country is higher than ever before, and with the longer lifespans more money is needed to allow people to continue living the same lifestyle for longer in retirement.

Most won’t have enough to live the same lifestyle, however. According to one study, a good number of people are going to have to downsize in retirement due to their lack of retirement funds:

The Center for Retirement Research (CRR) estimates that 36 percent of high-income households – those with a median income of $117,000 – won’t be able to live as well in retirement as they do today. Among middle-income households, 40 percent are at risk of having to downsize, while 53 percent of low-income households are likely to fall short.

That hasn’t always been the case.

“We’re at the tail end of the golden era of retirement,” said CRR Director Alicia H. Munnell.

In a report released Tuesday, CRR notes that only 20 percent of those who were between ages 51 and 61 in 1992 were at risk of falling short of money in retirement. Today, 32 percent are.

Why the increase? Munnell points to the shift from traditional pension plans to 401(k)s. Plus, she notes, people are living longer, and Medicare and taxes will take a bigger slice out of Social Security checks.

So while it isn’t completely surprising that low income households  don’t have enough saved for retirement or may fall short of being able to maintain their lifestyle, the fact that 36% of high income households are in danger of having to downsize is a bit more surprising.  40% of middle income households are in danger as well.

Start Contributing Early And Often

All of this says to me that we need to start saving earlier, and start saving more – especially if we want to maintain the same lifestyle as we have now.    There are things most people don’t consider the costs of when thinking about retirement including the possibility of long term  care, health issues requiring medical care, the long term solvency of social security and more.

So how young should you start contributing?  As young as you can!  It’s a simple answer, but I really do think that as soon as you’re able to get out of debt and save up an emergency fund you should be stashing as much cash as you can, while still living your life and being able to give generously.

Here’s an example.  If you start saving $500/month at age 25, by the time you retire at 65 and assuming an 8% return – you’ll have around $1,554,339 in your retirement account. If you waited til you were 35, you would have $679,699.  That’s quite a difference that those 10 years make.  The wonders of compound interest!

Don’t Worry Too Much About What Type Of Retirement Account, Just Start

My advice is to not get too carried away with worrying about what type of retirement account you should use, and what type of tax treatment is the best for your situation.  Think about it certainly, and get some sound advice on which is best for you.  But to me the most important thing is just to get started contributing, and contributing as much as you can to your retirement.  Time is not on your side!

Do you think you’ll have enough saved for retirement?  Did you start saving early enough or are you now trying to catch up by making larger contributions? Tell us about your thoughts on this in the comments!

Related Posts

Source: biblemoneymatters.com