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This article originally appeared at I Will Teach You to Be Rich in a slightly different format.

Finding a job can be tough. Competition is fierce, and even if you’ve got the skills, it’s a challenge to make yourself known to the right people. According to Michael Hampton, Director of Career Development at Western Oregon University, informational interviews are a valuable networking technique that can give you an edge on your competition.

The informational interview is designed to help you choose or refine a career path. You can learn how to break in and find out if you have what it takes to succeed. Spending time with one of your network contacts in a highly focused conversation will provide you with key information you need to launch or boost your career.

An informational interview is not the same as a job interview. It’s an opportunity to find out more about a particular career or company. These sorts of interviews can be valuable for anyone, not just those looking for a new job. You might consider this approach if:

  • You’re a recent graduate exploring possible career opportunities.
  • You have an established career, but would like to discover what it might be like to work for another company.
  • You feel as if you’ve done as much as you can in your current job and are interested in changing fields.

By meeting with somebody experienced in the field you’re considering, you can find out more about what the work is really like, about how much it pays, and about the drawbacks.

The First Rule

Before you begin seeking informational interviews, it’s important to understand a couple of rules:

  1. The first rule of informational interviews is: do not ask for a job.
  2. The second rule of informational interviews is: do not ask for a job.

If you meet with somebody under the pretenses of gathering information and you attempt to turn the encounter into a job application, you’re just going to make her angry. If, after the interview is finished, she thinks you’re promising and she has a position available, she’ll contact you. Do not ask for a job.

Conducting the Informational Interview

Your first step is to find people with jobs that look intriguing. Once you’ve identified some likely candidates, prepare a simple phone script to make sure you get everything you need in your initial contact. It can be helpful to approach the informational interview as if you were a reporter. Pretend you’re gathering information for a news story. This can help calm your nerves. Make sure to adhere to the following guidelines:

  • Ask politely. If the person declines the interview, respect her boundaries. If she accepts, select a time and location that works for both of you. (Phone interviews are fine.) Confirm the time and location.
  • Be prepared. Dress appropriately. Be punctual. Do your homework — learn what you can about the company from trade magazines, press releases, and past (and present) employees. Research will allow you to skip questions that could have been easily answered via another source. You want to use this opportunity to ask more intelligent, relevant questions.
  • Listen. Be ready with a list of open-ended questions. Let the interviewee talk about herself. Good questions include:
    • “What is your typical day like?”
    • “What do you like most (and least) about your job?”
    • “How does your company differ from its competitors?”
    • “What is the future like for this industry?”
  • Take notes. Remember that you’re conducting this interview to gain insight into a possible career. Write down anything that might be important. Ask follow-up questions.
  • Be brief. Keep track of time. Don’t rush the interview, but don’t overstay your welcome, either. If you’ve done your homework, you know which questions to ask. Get the information you need in a timely fashion, and then let the person return to her workday. Pay attention to signals that it’s time to leave.

Don’t forget to send e-mail or a brief hand-written note to thank the person for taking time out of her day to meet with you.

Informational interviews aren’t just for job seekers. You can use them to locate mentors or to pick the brains of experts on a favorite subject. I’m preparing to write a book, for example, and have been fortunate to find half a dozen authors who have been willing to take time to describe their experience with the publishing process.

Further Reading

If you’d like more information on this subject, follow this inter-related web conversation:

Although the primary rule of the informational interview is to never ask for a job, there is an exception. Says Western Oregon University’s Michael Hampton:

If you discover a job that you want to apply for during the interview, wait. The next day, call the employer and tell your contact that the informational interview not only confirmed your interest in the field, but made you aware of a position that you would like to formally apply for.

The best part about the informational interview? Few people use them. Add this weapon to your arsenal, and you’ll have an advantage on everyone else who’s out there looking for a job.

Source: getrichslowly.org

Apache is functioning normally

Consumers expect mortgage rates to drop, so they’re feeling a lot more optimistic about the housing market, according to a Fannie Mae FNMA poll published Monday.

After the U.S. Federal Reserve’s rate increase last week, the Fed Chair signaled a potential pause in hikes. Rates dipped after the news, and economists are expecting mortgage rates to gradually decline over the course of this year, and into 2024.

Consumers…

Source: marketwatch.com

Apache is functioning normally

Posted on: June 14, 2018

The busy summer season is here. The housing market tends to pick up during the summer, but with how hot the housing market has been lately, it’s hard to imagine things moving quicker.

With how predictable the housing market has been during the summer during recent years, it would be easy to guess that 2018 won’t be any different. However, the current housing market is in a much different environment than it was just a few years ago.

There are plenty of home buyers and homeowners looking to either buy or sell this summer – and it could end up being an excellent decision for both.

Here are housing trends to know for this summer:

Click to check current VA rates.

A hot housing market

The housing market has been on fire lately with home prices rising across the country. While some markets have been slower than others, the overall sentiment is that this is an incredibly strong housing market.

Because the summer is generally the busiest time of the year, there should be no reason to expect anything different. Home buyers are more active in the summer for a variety of reasons, regardless of how strong the housing market is.

For home buyers in some of the hotter markets, don’t expect a huge pickup. The strongest markets don’t have much room for growth at the moment, so you should be prepared for more of the same.

Rising home prices – but not too high

Home prices have been rising steadily for years now, and they should continue to do so.

The price of homes is largely dictated by how much home buyers are willing to pay. Since the demand for housing is high, home buyers will be willing to spend more money than they were just one year ago.

That being said, home price growth might slow down in a lot of markets. According to the Case-Shiller Home Price Index, home prices across the nation rose by 6.53% year over year from March of 2018 to this year. That’s incredibly quick growth, especially considering it includes smaller markets.

That type of growth is not sustainable and it shouldn’t continue. While home prices will rise this summer, it will likely be by a smaller margin.

Check today’s VA rates.

Low housing inventory

This probably isn’t news to anyone who has been looking to buy a home for the past few years.

The national housing shortage is real, and home buyers – particularly those in dense urban areas – have been having a difficult time finding affordable housing.

Unfortunately for home buyers, this trend should continue to persist through the summer. The demand for housing typically jumps during the summer, but there’s no guarantee that housing supply will match the increase.

The good news is that housing inventory is likely becoming less of an issue. Toward the end of 2018 and going into 2019, don’t be surprised if homes stay on the market longer.

Higher mortgage rates

With economic growth occurring across the country, it would be nearly impossible to avoid higher mortgage rates.

Just last month, Freddie Mac reported that mortgage rates hit their highest average levels of the past three years. Rates are nearing even higher levels, and they should set record highs for 2018 multiple times throughout the summer.

The rise in rates is mostly fueled by an optimistic outlook on the market. The Federal Reserve has been raising rates, and this has affected every market – housing included.

Higher rates don’t always occur during the summer – in both 2016 and 2017, mortgage rates steadily declined from April through August, only to start to climb right after.

2018 is already breaking that trend. Since the beginning of April, mortgage rates are up roughly 20 basis points (0.20%). With the way the economy is moving, rates should continue to climb this summer.

VA loans continue to be the best mortgage program

While some home buyers might become worried about the cost of buying a house this summer, VA loans will continue to make it easier for veterans to purchase a home.

VA loans have consistently had the lowest rates available. According to mortgage software company Ellie Mae, the average VA loan in April had a rate of 4.63%, as compared to 4.84% for FHA and 4.80% for conventional.

Also, VA home buyers can avoid paying a downpayment entirely, something that should help them afford a home despite rising home costs.

This summer, there’s no reason to believe VA loans won’t continue to be the best mortgage program available. Anyone who is eligible and wants to buy a home this summer will likely want to use a VA loan.

Click to check current VA rates.

Source: militaryvaloan.com

Apache is functioning normally

The place you lay your head to rest every night should be valued as highly as the load it carries.

Not to overstate things, but what you choose to rest sleep on determine how well-rested you are, which has mega health consequences in your everyday day.

Without a good night’s sleep, there’s less energy during the day to spend on all the activities that bring joy to your life and keep you happy and healthy.

So now that we’ve established how important your sleep is, let’s go into setting up your bed for optimal comfort and rest.

And no, I’m not saying that you should start thinking about renovating your bedroom. Technically, it’s you bed that should feel like your happy place, the place you go back to at the end of every day.

Your entire body should be comfortable throughout the night. The mattress should encourage better sleep postures and boost breathability.

When choosing your bed and shopping for a mattress, your top factors should be comfort level, size, quality, longevity, to mention the first few.

If you are wondering which mattress would be a top choice to look at, consider the natural bamboo mattress. Here are a few of the main reasons why this might be the best decision you make:

Pro-environment

Going green is great for the entire world. If there is anything we can do to help sustain and protect nature from harmful human intervention, we’re all for it.

Bamboos are natural resources that grow quickly but are also eco-friendly. In comparison to other material like cotton or timber, bamboo releases a lot more oxygen into the environment.

Variety in sizes

Like you would expect of any other type of mattress, bamboo mattresses come in different sizes. This means that you can quickly order 3 of the best king size mattress options for back pain at mattressgenius.com without any fails.

You can also get the Queen Size, twin size, or even, California king size. Thanks to these varieties, the natural bamboo mattresses make the perfect beds for side sleepers, back, and also front sleepers.

More comfortable than cotton mattresses

In comparing natural bamboo mattresses and cotton mattresses, you will notice that bamboo is softer than cotton.

This means that it is also a lot more comfortable for users than cotton mattresses. Besides, the comfort of the natural mattresses is not dependent on the seasons or weather changes.

Most people who opt for natural bamboo mattresses attest that they are incredibly comfortable, and unmatched by none in the market.

Hypoallergenic

People who struggle with allergies have the hardest time finding the right mattress to suit their needs. With the natural bamboo mattress, you do not have to go through the hassle of purchasing a non-allergen cover to help with your allergic triggers.

In fact, bamboo mattresses are known to be hypoallergenic. These mattresses are made with antibacterial and anti-microbial properties, which help prevent the formation of harmful bacteria and fungi that can cause allergic triggers.

This type of mattress is also resistant to dust mites, one of the most commonly encountered issue with regular mattresses. Thanks to this, you can enjoy a good night’s sleep without dust mites triggering your allergies.

Temperature regulation

Most people do not appreciate the fact that bamboo is a very porous material when used in its fabric form.

But it’s precisely this feature that makes it highly breathable by allowing free flow of air in and out. Instead of sweating through the night and coping with the challenge of heat trapped between your body and the mattress, enjoy a bamboo mattress that will let your body be cool throughout the night.

Besides, the natural bamboo mattresses come with the ability to absorb moisture. This means that even if you sweat into the night, you will not experience any type of uncomfortable pooling of the sweat.

The nature of the bamboo mattress ensures that the bedding does not stick to your body even after sweating. The pores of the bamboo mattress allow the sweat to evaporate quickly so you can enjoy a peaceful night.

Adequate spinal support

It is super important to have your back and neck laid out properly during sleep, for the sake of your spinal column.

Usually, the spinal column of your body has a natural curve that should be embraced for better spinal health.

A bamboo mattress will allow the proper inclination of your spine throughout the night, so make sure you pay special attention to this aspect when choosing your mattress.

More helpful tips for your home

10 Beautiful Tiffany-Style Floor Lamps to Light Up Your Home
Here’s Why a Womb Chair is the Perfect Addition to Your Interiors
The Benefits of Massage Chair Recliners and Why You Should Get One for Your Home
How to Successfully Integrate Smart Home Tech into Your Own Home

Source: fancypantshomes.com

Apache is functioning normally

If you’ve been looking into cruises, chances are you’ve come across some deals that sound almost too good to be true. Maybe you’ve even been lucky enough to score a cruise offered for as little as $100 by leveraging hotel elite status matches.

But once you put down your deposit and start looking into all the extras, you’ll find that what you actually end up paying for your cruise vacation can easily be many multiples of the advertised rate that initially lured you — especially once you factor in flights and hotels.

Cruise companies, like airlines, make a lot of their money off ancillary fees. But there are ways for you to avoid some of these pesky surprises. Here’s how to save money on a cruise.

1. Cruise excursions

Potential added cost: $600-$1,200 (3 full-day excursions for 2 people at $100-$200 each, per person).

Frugal alternative: DIY at a level you’re comfortable with.

From the moment you book your cruise to the days you’re sailing, you’ll hear and see a lot of pitches for cruise excursions, which can be a tempting way to fill your hours in port while leaving every small detail to the cruise line.

But you’ll pay a huge premium for that convenience.

Assuming you’re open to some (extra) adventure, many excursions can easily be replicated for a fraction of the cost.

For example, on a recent Mexican cruise, a friend and I walked about 20 minutes from the cruise port along a well-maintained sidewalk to undertake a mountain hike for free that had been offered as an excursion for $60 per person. We figured we were already hiking anyway, so why not tack on an extra mile or so? A local bus would have done the trick, too.

Not quite so adventurous? Look into taking taxis, which are generally easy to find at any cruise port. Even that would have cut the price from $60 per person to roughly $5-$10 per person.

Here are a few other overinflated offenders you can easily replicate on your own or by booking ahead of time with well-rated local vendors:

  • Bike or walking tours.

  • Open-air bus tours.

  • Transport and entry to a beach club.

  • Boat excursions.

  • Cooking classes.

Pretty much anything offered in port can be put together independently. And local vendors are very much aware of ship times, so don’t worry about getting left behind. Their reputations depend on getting you back safely.

🤓Nerdy Tip

Sometimes, cruise excursions are worth the cost — for instance, accessible tours for those in wheelchairs, or things impossible to replicate yourself, such as behind-the-scenes ship tours that take you to the bridge and the engine room.

2. Wi-Fi packages

Potential added cost: $300-$600+ ($15-$30 or more per day, per person, on a 10-day cruise for 2 people).

Frugal alternative: Free Wi-Fi in port.

For those of us who are always online, some of the most difficult — and mystifying — charges to swallow are cruise Wi-Fi fees. Making matters worse is that cruise lines often require you to purchase a package for the whole cruise, so you can’t do, say, one day on and one day off.

The most obvious workaround, especially if your cruise has many more port days than sea days, is to simply spend an hour or so in port catching up on your internet needs.

A local library is your best bet, but often the port facilities themselves will offer free Wi-Fi. Bars and cafes generally offer Wi-Fi too, which allows you to take in some local flavor while you’re scrolling your Instagram feed.

🤓Nerdy Tip

Even if you’re not buying an internet package, log on to your ship’s Wi-Fi connection anyway and just see what happens. On two recent cruises, I was immediately able to use iMessage, and in one case I even had full internet access at certain times (but not at others). If it works for you, consider it a pleasant surprise.

A more complicated route would be to purchase a SIM card for your phone that works for each destination, but it’s unlikely to work while at sea.

3. Alcohol packages

Potential added cost: $1,000-$2,000 ($50-$100 per day, per person, on a 10-day cruise for 2 people).

Frugal alternative: Bring your own booze.

Many cruise lines allow you to bring a limited amount of alcohol on board. Here were the allowances for a few of the more popular cruise lines at last check:

  • Carnival: One 750-milliliter bottle of sealed/unopened wine or champagne per person age 21 or older in your carry-on luggage upon departure. No alcohol otherwise.

  • Celebrity: Two 750-milliliter bottles of wine per person of legal drinking age at departure. No alcohol otherwise.

  • Norwegian: Any amount of wine or champagne, as long as it isn’t boxed wine. No alcohol otherwise.

  • Princess: One 750-milliliter bottle of wine or champagne per adult. Extra bottles are allowed for a nominal fee per bottle. No alcohol otherwise.

  • Royal Caribbean: One sealed 750-milliliter bottle of wine or champagne, but no boxed wine or other alcohol. 

You might have to pay a small corkage fee if you consume your own alcohol in an onboard restaurant, so be on the lookout for that.

What about nonalcoholic drink packages? They’re cheaper, as you’d expect, but again, you can generally bring some on board instead. (Coffee and tea are often available for free throughout the ship.)

Here’s the rundown of how many nonalcoholic beverages you can bring on board some popular cruise lines:

  • Carnival: Up to 12 sealed, unopened cans/cartons of 12 ounces each or less, per person, in your carry-on.

  • Celebrity: Their terms don’t explicitly mention non-alcoholic beverages. On a recent cruise, I took that to mean there was no limit; I brought two 2-liter bottles on board with no problem.

  • Norwegian: Not allowed, with limited exceptions.

  • Princess: Up to 12 sealed, unopened cans/cartons of 12 ounces each or less per person. 

  • Royal Caribbean: Up to 12 standard cans, bottles or cartons per stateroom.

One underappreciated thing about bringing your own drinks: It’s a lot more convenient to serve yourself than it is to wait to be served at a bar.

🤓Nerdy Tip

If you’re tempted to try splitting a drink package with multiple people, don’t bother. Cruises generally only serve you one drink at a time, and they have their ways of knowing the purchaser is the one getting served (for instance, via wristband or scanning your onboard card that shows your ID).

4. Spa services

Potential added cost: $100-$200 or more per treatment at sea.

Frugal alternative: Skip the treatments or get them in port.

Lots of things are typically included on cruises — most food, entertainment, pools — but spa treatments are generally extra. (Probably a good thing: If everyone on the ship got bottomless massages, that’s about the only thing many of us would want to do the whole week.)

Although there might be no such thing as a free spa day, cruise lines will occasionally offer short “sample” treatments meant to entice you into paying for more. If you can resist a sales pitch, give it a shot, though these free offerings tend to fill up very fast.

Here’s another case where getting your fix in port can save you a bundle. While cruising in the Caribbean recently, I paid the equivalent of $30 for what turned out to be a world-class massage. It might have been just as great on board, but it would’ve cost about five times as much.

🤓Nerdy Tip

On two recent sailings I was able to access the onboard spa’s common areas for free throughout the week. So, if you want “spa-adjacent” goodies — like a sauna, heated loungers or extra-comfy chairs — just wander a bit and see what you find.

5. Paid room service

Potential added cost: $100 ($5-$10 per item, or a set delivery fee).

Frugal alternative: Pack your baggies.

More and more, cruise lines are charging for room service that used to be free. (For instance, on Carnival and Celebrity, only continental breakfast is included for most guests now.)

Room service items generally aren’t expensive, but a few cases of the midnight munchies can add up quickly. One alternative is to bring a few clear plastic bags so you can “pack” easy-to-carry items from elsewhere on the ship.

At dinner, order that extra cheese plate, bag it up and stick it in your room fridge. Or if you have a sweet tooth, grab some cookies from the buffet.

Made-to-order sandwiches can travel well, too — so well that you could bring a couple with you on your port days, as we did on a recent cruise. But don’t get too carried away. After all, you might not want to miss the local cuisine.

🤓Nerdy Tip

Generally speaking, the room service menu isn’t going to be that memorable anyway, so you’re probably not missing much by not partaking. And besides, free food is never more than a few minutes away on most cruise ships.

6. Tips and taxes

Potential added cost: Roughly $100-$300 on average for taxes; roughly $10-$25 per person per day for tips (so figure $200-$500 total for a 10-day cruise for 2).

Frugal alternative: Score an onboard credit to help lighten the blow of these mandatory extras.

As cruise ship fees go, there are only two sure things: tips and taxes. Even the least expensive cruise offers will tack on both, and generally you won’t see either fee mentioned upfront when you’re first starting to book.

  • Port taxes vary based on the length of your cruise and where you’re stopping, but on average you can expect to pay $100 to $300 on top of the cost of your room.

  • Tips are a baked-in way of saying thanks for the service you’ve received on the cruise from front-line workers such as your room steward, wait staff and guest services. Charges vary wildly but range from $10 to $25 a day in many cases.

Port taxes generally must be paid no matter what, but tips (or any other costs mentioned above) can generally be covered in full using onboard credits. Cruises often offer such credits to entice you to book. In one case, I received $100 in onboard credit on a line I hadn’t cruised before simply by calling and requesting it, citing the fact that I was a new customer. (Motto: It really never hurts to ask.)

7. Flights to the cruise port

Potential added cost: Easily hundreds of dollars, plus hotel costs as needed.

Frugal alternative: Use points and miles.

In the heat of booking that dream cruise, one of the easiest expenses to overlook — but one of the costliest — is the travel to and from the cruise port.

If you aren’t lucky enough to live within easy transit or driving range of your departure port, you’ll need to factor in costs for flights. And unless you like living dangerously, you’ll want to fly in a day in advance, which means budgeting for at least one hotel night.

Any number of travel rewards credit cards come with sign-up bonuses that, alone, could more than cover the cost of your transit in the form of hotel points or airline miles. For the best value, focus on cards that earn reward currencies in the American Express, Capital One, Chase or Citi ecosystems. These points can be transferred to a wide variety of airline or hotel programs.

🤓Nerdy Tip

For a different kind of flexibility, consider cards that offer the ability to redeem points toward “erasing” any travel purchase you make with the card, such as the Aeroplan® Credit Card from Chase or the Capital One Venture Rewards Credit Card. You could even use such cards to pay for, then erase, those pesky port fees referenced above.

The bottom line

That cruise you’re seeing marketed for just a few hundred dollars (or less) can easily balloon to many multiples of that amount if you’re not careful.

But with the right travel rewards credit card, a healthy sense of adventure and some good old-fashioned resourcefulness, you can fully enjoy the vacation you’ve earned while resting assured that you haven’t broken the bank.

(Top photo by Brad Walters)

How to maximize your rewards

You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2023, including those best for:

Source: nerdwallet.com

Apache is functioning normally

Last weekend I explored Portland’s beautiful Eastmoreland neighborhood during its annual 140-family garage sale. In the past, I’ve come away with major bargains, but this year I had to be content with enjoying the first day of summer with a couple of friends. We admired the homes, gardens, and assorted cast-offs of the well-to-do.

Many of the adult garage-salers were raising funds for charities. Sidewalks and curbs were also strewn with young entrepreneurs selling their wares: homemade cookies (still warm from the oven), beaded jewelry, rice-krispie treats, iced bottled water, and grilled hotdogs.

Over the past two years, J.D. and I have had fun meeting one pair of entrepreneurial sisters who rise above the run-of-the-mill baked goods and soda. I was pleased to see them once again. In 2006 they were selling jokes:

Last year they were selling stock tips:

My friends and I each bought a cup of lemonade, which we downed while questioning these young businesswomen about this year’s products. The elder girl was selling bottle-cap magnets — each individually created and carefully crafted — at two price points. She told to us some of her inspirations, and compared the relative strengths of the magnets. (The one dollar bottle caps had stronger magnets than the seventy-five cent magnets.) She was proud of her creations, but, like any good salesperson, she didn’t oversell. I selected one with a cancelled 26-pence Queen Elizabeth stamp and moved on to see what her younger sister was selling.

The younger girl had created two issues of a neighborhood newspaper: The Lofty Times. Typed on an actual typewriter (without correction tape!), the publications bear phonetic misspellings and creative punctuation, but are brimming with enthusiasm and real journalistic gusto. We purchased a copy of each issue, did some negotiating to arrange limited re-print rights for Get Rich Slowly, and exchanged email addresses. Here’s a sample story from The Lofty Times, reprinted by permission of 8-year-old author Grace:

the Eastmorland goroge sail

Thouthins of peaple look forwerd to this moment in Eastmorland it is the garage sale! A man named Jared Seger is selling different parts of a house, such as windows, doors, and other things.

In th past years my family has allways gone big on the garagesale. one year DAD beleave it or not bot a hool stack of inapropryite gossap maggaseens, it was hollywood gossap and lemenaid, every year it was a tradishon to have lemenaid.

Other years were forchentelling, jocks, stack priceed, and so many more things that even if I tried, I probly could not name them all! this year is going in a todaly different path. AT ages of 8 and 10, my sister and I have lerned so many things, I, as you can see am making my newspaper. Madeline is making bottlecap prodex.

I have many, many good thouts about the garagesale, I hope you do to.

The girls and their mother gave us a crash course in their annual entrepreneurial endeavors. Their parents loan them seed money for the projects, which the girls must pay back from their profits. Any profit is theirs to spend. With parental support and guidance, these sisters are well on their way to understanding the value of money and the joy of making and selling their own goods — as well as knowing how to stand out in a crowd!

I’m sure that it would be easier for these parents to just give their daughters spending money, but they know that the lessons learned here are priceless and the extra efforts worthwhile.

My friend Rhonda and I later discussed the merits of each girl’s choice:

  • The magnets clearly had higher start-up costs, but broader customer appeal.
  • Yet the newspapers were well-worth the cover price for entertainment value.
  • Both projects showcase the imagination of the creators.

I wish I could eavesdrop on these girls as they consider, reject, and perfect ideas for each year’s merchandise. And I hope that by the end of the weekend, Grace and Madeline were both sold-out! May they return next year with their contagious entrepreneurial spirit, and Bravo, parents!

Source: getrichslowly.org

Apache is functioning normally

By Peter Anderson 10 Comments – 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 24, 2011.

We’ve been talking about Lending Club on this site for just over two years now. In that time I’ve been converted from a skeptic of the whole P2P lending genre to becoming a big proponent of it. I now think that it can be a great thing for both lenders and borrowers under the right circumstances.

Lending Club recently announced that they have now originated over $325 million in total loans and paid out over 22 million in interest to investors. They now have over 50,000 individual investors and 32,000 borrowers on the platform.

They’ve gone from the new kid on the financial block to becoming the next big thing for people looking to get a more stable investment with good returns, or to find a lower rate on a consumer loan.   They are now, dare I say it, mainstream.

Check out my original Lending Club review

My Lending Club Investments Continue To Perform Well

My Lending Club investments have been showing good returns, with my net annualized return currently checking in at a nice 10.76%.  That number has been slowly going up as I continually add new loans, mixing in some higher risk loans with my low risk loans.

  1. Net Annualized Return of 10.76%: Up from 10.53% in June, and 10.13% before that. That puts me in the 55th percentile. My returns are higher than 55% and lower than 45% of all investors. So that means I’ve already reached my goal of doing better than 1/2 of other investors. Now to make it better than 75% of other investors!
  2. Number of defaults remains at zero: Despite all odds I’m still showing zero defaults on my account, despite having given out over 100 loans so far. I’m actually surprised I haven’t had at least one or two. I do currently have one loan that is late, however. The funny thing is that once again the late loan is one of the Grade B loans, not one of the lower grade ones. Go figure.
  3. Fifteen loans have been paid off early: Eight were A grade loans, and the other three were C grade loans, three were grade B and one grade E. Looks like grade A loans, while they’re more likely to be paid back, may also be more likely to pay off early – reducing returns.
  4. My account balance still going up: I currently have $2,585.47 in my account, with $730+ of that ready to invest. I’ll be the first to admit that the last couple of months I haven’t added many loans as I’ve been distracted by other things. I’ll probably be trying to invest that money sitting in the account soon as I find loans that I like.
  5. I’m still diversified by investing across a large number of loans: I’ve got 111 loans, with no more than $25 in each loan. That way if I do have defaults, while my return may go down, my risk will be minimized. Lending Club noted earlier this month, that 100% of their investors who have invested 800 notes or more had positive returns. Not too shabby, not everyone in the stock market can say that!

Stock Market Fluctuations: Could It Lead To More People Trying P-2-P Lending?

The stock market has been doing some wild gyrations over the past month or two, and because of that a lot of people are questioning whether they should still be in the markets.  Even if they want to stay the course (as we are), they’re still looking for some alternative investments now that will be a little less volatile but still show a good return.

I think that Lending Club, Prosper and other P2P lending institutions may benefit from the stock market being so up and down.  Lending Club and Prosper have both had a bunch of good press lately, and seeing as how investing in Lending Club has been proven to be a relatively stable performer for those who have a diversified portfolio, I think a lot of people will be drawn to the relative security of a Lending Club portfolio.

Does that mean investing in Lending Club is a sure thing? Of course not.  But at least in my own situation I’ve seen that a properly diversified portfolio with handpicked loans will show good returns.  I’ve yet to see a down month, or a single default!  What stock market investor wouldn’t give his or her right leg to see that kind of stability!

Lending Club Gets $25 Million In New Funding

Lending Club continues to have good news after good news.  After reaching their 4th anniversary earlier this year they have now announced that they’ve secured another round of funding, and that their post funding valuation is now at $275 million, up from 80 million last year.  From WSJ.com

Lending Club, the peer-to-peer online loans marketplace, said it has raised a new $25 million round of funding that pegs the start-up at a $275 million post-money valuation, up from $80 million last year.

The financing comes as Lending Club has gathered momentum. The start-up, which matches lenders and borrowers online, has seen the loans it has originated grow 125% on a compound annualized rate while revenue has risen 180% year over year and is expected to reach $15 million to $20 million this year, according to Laplanche. Lending Club now has 50,000 individual investors and 32,000 borrowers on its platform, he said. Overall, Lending Club has surpassed $325 million in loan originations and its average loan size is $10,000, he added.

I think investors in Lending Club see the company’s potential, and are jumping in on the ground floor with this company as it continues to grow.

Lending Club T-Shirt Giveaway!

A few weeks ago Lending Club was nice enough to send me a swag pack after I won a contest on Twitter.  Included in the pack was a nice messenger bag (which I use every day now), some pens and a nice Lending Club T-shirt similar to the one you see to the right.

Problem is, the t-shirt doesn’t fit me as it’s a size large, and as a tall guy at 6’4″, I wear a slightly larger size.  My loss is your gain as this week I’m giving away my Lending Club T-shirt!

For your chance to win all you have to do is:

  • Leave a comment on this post telling me whether you think Lending Club is now mainstream, and whether more people will be using them now that the stock market has started showing such volatility.  Feel free to also tell us how it’s performing for you if you’re already signed up!
  • For a second chance at winning, sign up for Lending Club through this post, and then leave a comment telling me that you’ve done so!

I’ll be choosing a winner of the contest on Friday, August 19th at 12pm via Random.org. That’s it!

UPDATE: Imad is the winner!  Congrats!

Do you think that Lending Club has arrived as a legitimate investment option?  Do you think it will see an influx of dollars as people look for more stable investment options?  Tell us your thoughts in the comments!

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Source: biblemoneymatters.com

Apache is functioning normally

The Roth IRA Movement may be almost two weeks old, but that’s not going to stop from keep promoting it to potential new investors.

If you haven’t started a Roth IRA yet…then do!   Here’s some good places to open a Roth IRA super fast.

The following email was sent to me by a loyal reader who was so excited about the Roth IRA movement that he had share his own success story.

This story is unique though in that it didn’t involve just him;  it involved his two daughters.

This is a great read for any parent that wants to show their kids the power of tax-free money.

Here’s the story….

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Jeff: A number of years ago I took a unique approach to a Roth IRA using it as an inducement to have my children get summer jobs while in high school. When they were 15 they began to learn about the benefits of a Roth IRA and certainly knew what one was.

Pretty good right?

I offered to match their (relatively small part time summer job) earnings dollar for dollar. They kept their earnings and I matched their earnings in a Roth IRA.

They opened an Roth IRA with my contribution (equal to their earnings, so as to be in compliance with the law we rounded down to the lower $100) and initially invested the contributions in a mutual fund where the contributions in their first years were under $1,000,

Note:  Here’s my post that talks about the rules of opening a Roth IRA for your child.

I continued to provide a match each year through high school (where they never were earning enough to max out the contributions) they were watching what was going on and becoming on the look out for businesses they thought might be good investments.

Living in the real world, they became aware of companies that I was not familiar with and while adverse to risk they found a few winners that would have been great investments, but were missed due to the aversion to risk…but those were good lessons too.

“Dad’s Match”

Since graduating from high school and all through their college years we continued the process of “Dad’s match” and they happily watched their conservative investments grow.

They have learned that “time” is a friend when investing and the benefit of investing early (hard to teach a child about retirement before they have graduated from high school) but I accepted that challenge and it was a profitable lesson for them…that “risk” is something that needs to be carefully evaluated.

My two daughters are now out of college and since graduation I have continued to offer this “match” which is now obviously maxing out their contributions each year. At 28 and 30 my daughters are now selecting individual stocks and making good investing decisions. They moved some of their Roth IRA funds to cash in 2008 and moved some of them back into the market in 2009 and 2010 learning that a $.02 interest rate is only good for so long and that got those funds back into the market.

Lessons Learned

They have learned a lot about investing over the last 15 and 13 years respectively and have Roth IRA balances in excess of $50,000 +.

Editor’s note:  How freakin’ cool is that?   What a great start to their investing life!

They are appreciative of my “match” that is more than a father’s love, it is a lesson in investing that “pays dividends”.

I have told a lot of people what I have been doing and have found no one else that has done this.

It is the absolute best way to help your children financially and to teach them about investing and to help them learn about risk tolerance. As they grew older they became more willing to accept risk and reward and have learned what their risk tolerance is…which is now one that now has a long range focus and they have a great “head start”.

I have enjoyed receiving your emails over the years and while you are not local to me, I feel like I know you from your emails.

You should share these SUCCESS STORIES with your clients and readers.

Editor’s note:  I just did.  🙂

By the way, I have a Roth 401K that I have been funding to the max for several years since it became an investment option at my work approximately 4 years ago. This investment tool is another great addition to saving in a Roth IRA that you should include in the BEST INVESTMENT TOOLS available.

I will pass this along to my daughters so they too can sign up for your email news letters. KEEP UP THE GOOD WORK!

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Do you have a Roth IRA success story?  If so, please share in the comments below.

Source: goodfinancialcents.com

Apache is functioning normally

Life insurance is one of the most important investments that you can ever make for your loved ones. If something tragic were to happen to you, and you didn’t have life insurance coverage, then your family would be responsible for a mountain of debt and other expenses.

It’s important that you find the best plan for you. That means that you’re going to need to compare the different types of plans and you will need to find the best insurance company for you. Every insurance company is different, all of them have different products and will give you different rates based on their medical underwriting and rating system.

When you are considering the purchase of a life insurance policy, it is vital to ensure that you have the right type and amount of protection for your specific needs. You should also ideally research the life insurance company you are considering buying the policy through. Here, the company should be reliable and stable financially, and it should also have a good name for paying out its policy holder claims. One insurer that meets these parameters is EquiTrust Life Insurance Company.

The History of EquiTrust Life Insurance Company

EquiTrust Life Insurance Company is one of the smaller life insurance and annuity providers in the overall insurance market place. While EquiTrust is not typically thoughts of as being a household name, the company is known for offering an excellent selection of quality financial vehicles that can help consumers with growing and protecting their wealth. These consist primarily of single premium life insurance policies and indexed retirement annuities.

Through its products, the company focuses on offering new financial ideas that can substantially help its customers to meet their specific needs. It also prides itself on its stellar customer service. EquiTrust has a broad range of niche products, so the company’s policy holders can be more assured that they will be able to change, add, and alter their products or product mix, as their personal and family financial needs change over time.

In many ways, EquiTrust can be considered as more of a niche insurance company, as they tend to specialize in indexed products – namely indexed life insurance and indexed annuities. Because of this, consumers who are in the market for this type of financial product will find a lot to choose from in EquiTrust Insurance Company’s product mix. This applies particularly to those who are seeking the opportunity to grow funds on a tax deferred basis, while at the same time keeping their principal safe.

EquiTrust Life Insurance Company Review

Many of the insurance products that are offered by EquiTrust Life Insurance Company include underlying equity and index related financial vehicles – which can help policy holders with increasing their opportunity for a higher return.

The company works in conjunction with Guggenheim Partners – a global investment and advisory company – which provides portfolio management for many of EquiTrust Life Insurance Company’s products.

Equitrust has more than $14 billion in invested assets – of which a majority are considered to be investment grade. However, a certain percentage of these assets are not deemed to be investment grade (in the investment class of A or better), which in turn, can make the insurer ratings agencies a bit more leery about the company’s overall financial strength in the event of a downward moving market. Equitrust Life Insurance Company is headquartered in West Des Moines, Iowa.

Insurer Ratings and Better Business Bureau Grade

EquiTrust Life Insurance Company is considered to be stable financially, and because of that, the company has earned the following ratings from the insurer rating agencies:

  • B++ from A.M. Best Company
  • BBB+ from Standard and Poor’s

The company also has earned a Comdex rating of 43.

Also, even though EquiTrust Life Insurance Company is not currently an accredited business of the Better Business Bureau (BBB), the BBB has given the company a grade of A+, based on a range of A+-F.

In the last three years, EquiTrust Life Insurance Company has settled four customer complaints (of which one complaint has been closed within the past 12 months). Of the four total customer complaints, three were regarding complications with the company’s product and service, and the other was regarding advertising and sales issues.

Life Insurance Coverage Offered by EquiTrust Life Insurance Company

EquiTrust offers many options for life insurance coverage. Because of this, policy holders can choose the option that best fits their needs – and, they may also be able to change or alter their coverage as their needs evolve.

All the life insurance plans that are offered through EquiTrust are permanent, meaning there is death benefit protection and a cash value/savings component. The funds that are inside of the policy’s cash value can grow and compound over time on a tax deferred basis. There is no tax due on the increase of these funds until the money is withdrawn by the policy holder.

Even if an individual has certain medical conditions, it can still be possible to qualify for a life insurance policy through EquiTrust. This is because there are no medical tests or exams required to obtain coverage.

The life insurance policies that are offered by EquiTrust include the following:

Wealth Max Bonus Life

With the Wealth Max Bonus Life plan, the policy holder will be able to get stock market and multi-asset index-linked earnings in the cash value. This policy is a single premium index life insurance plan, so there is just one single lump sum premium required, and then the policy will be considered paid up. Also, there is a 12 percent bonus that is added to all premiums.

Wealth Horizon Life

The Wealth Horizon Life plan is also a single premium life insurance policy that offers both stock market and multi-asset index-linked earnings. This plan has highly competitive rates so that the cash value could grow quite a bit over time. The policyholder can borrow against the cash value at any time to do any number of things: debt pay off, vacation, or even supplement retirement income.

Wealth Sure Life

The Wealth Sure life insurance policy also requires just one single premium to purchase the plan. Here, the policy holder will get a declared rate of return that is set by EquiTrust.

Wealth Pay Life

The Wealth Pay life insurance option from EquiTrust is a fixed premium life insurance policy, meaning that the premiums will be due annually or monthly by the policy holder. The premiums could alternatively be paid via the money in a single premium annuity. In this plan, the return of the cash value is also linked to stock market performance and the performance of a multi-asset underling market index.

EquiTrust Burial Insurance

When the time comes to plan for the future, it is important to consider any and all of your current and future financial obligations. These can include any mortgage and other personal debts that you’ve incurred, as well as the ongoing living expenses of those in your life who count on your income for their everyday living expenses. One item that is sometimes overlooked, though, is that of funeral and other final costs. But doing so could end up putting your loved ones and survivors in an awkward financial position, as they may need to dip into savings or other assets to get the costs paid.

Today, the average cost of a funeral in the United States runs between $8,500 and $10,000.This is especially true when you consider the price of a memorial service, flowers, and related transportation, as well as other items like a burial plot and a headstone.

Many families just simply do not have this amount of money that is readily available, so they may end up having to take it out of savings – or worse yet, put these expenses on a credit card (in turn, leaving them in financial hardship for months, or even years, to come). In any case, having life insurance can mean the difference between your loved ones being able to move on, or having to drastically change their lives – during an already difficult time for them.

Other Products and Services Offered

EquiTrust Life Insurance Company also offers retirement annuities. These products can allow you to save money on a tax deferred basis, and then to obtain a guaranteed lifetime income stream in the future. This revenue can continue coming for the remainder of your life – regardless of how long that may be.

EquiTrust offers four types of annuities. These include the following:

  • Index – With an index annuity, the return on the funds is based on the performance of an underlying market index, such as the A&P 500. When the index performs well, an excellent return can be gained. If, however, the underlying index performs poorly for a given period, the account is solely credited with a 0%. This can allow for ongoing protection of principal, regardless of what occurs in the market. EquiTrust offers several different options regarding index annuities. These include the Market Twelve Bonus Index, the Market Power Bonus Index, the Market Booster Index, the Market Ten Bonus Index, the Market Value Index, the Builder Bonus Index, and the DynaMARC Index.

  • Multi-Year – The multi-year annuity – Certainty Select – allows you to lock in a competitive rate of interest for a duration of 3, 5, 6, 8, or 10 years.
  • Traditional Fixed Rate – With EquiTrust’s Choice Four options, you can choose from a variety of different durations, with annual reset interest.
  • Immediate – With an immediate annuity, the income payout can begin either now or later – and, it can be for a set number of years, or for the remainder of your life. EquiTrust’s immediate annuity product is the Confidence Income plan.

Although many of the products that are offered by EquiTrust Life Insurance Company may be suitable only to a small segment of the population, for those who do fit into this niche, the product offerings can be quite attractive.

How to Get the Best Premium Rate on Life Insurance Coverage from EquiTrust Life

If you have been seeking the best premium rates on life insurance coverage from EquiTrust Life Insurance Company – or for that matter, from any life insurance carrier – then it is recommended that you work with an independent life insurance agency that can offer you suggestions from multiple insurance companies. That way, you will be able to shop and compare the policies, coverage, and premium prices of many different options. Once you’ve looked at your options, you can choose the one that will work best for your needs, and for your budget.

When you are ready to move forward in this life insurance policy comparison, we can help. We are an independent life insurance broker, and we work with many of the leading insurance carriers in the industry today. We can support you with gathering all the appropriate details that you need to make a smart purchase – quickly and stress-free.

We can provide you with many different life insurance policy quotes, all from your computer. If you are prepared to make a purchase, then all you need to do is just simply here and fill out our short quote form.

We know that the process of shopping for life insurance coverage can be somewhat overwhelming. There are a lot of different variables that you need to think about – and you want to make sure that you are going in the right direction regarding coverage, benefits, and premium price.

But the good news is that all of this can be accomplished when you are working together with an experienced life insurance ally on your side. So, contact us today – we’re here to help.

Source: goodfinancialcents.com