Benefits
How Do CDs Work?
A certificate of deposit, more commonly known as a CD, is a special type of savings account. You deposit your money into the account and agree not to make any withdrawals for a certain period of time. At the end of that time, you get your money plus whatever was earned in interest back. Want… Read More
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What Is the SBA 8(a) Business Development Program?
The 8(a) Business Development program is a Small Business Administration initiative designed to level the federal government contracting playing field for small business owners who are socially and economically disadvantaged. Qualifying businesses can compete for contracts that are set aside … Continue reading →
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How to Add Your Business to Yelp and Optimize Your Listing
Yelp is one of the most popular local business information websites in the U.S. As a small-business owner, should you invest the time and effort into maintaining a Yelp listing? Learn the pros and cons of Yelp, how to optimize your listing, and how to use the site to reach more customers.
How to Add Your Business to Yelp and Optimize Your Listing is a post from Money Crashers.
Deferment and Forbearance of Student Loans
Deferment and forbearance are options that people struggling to keep up with their student loans can use to make sure they don’t get into serious trouble. Falling behind on your payments can hurt your credit or lead your lenders to … Continue reading →
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5 Key Property Features When House Hunting
When shopping for a home, many of us know our basic focal points, such as identifying the right neighborhood or finding a house with the ideal number of bedrooms and bathrooms. These factors are important, but there are other home features (some very large and some very small) that can greatly contribute to the enjoyment of your new home. Let’s make sure you don’t miss any of them. Here are five opportunities to maximize the benefits of your purchase that go beyond just the house and why each one deserves your consideration. Home Buying Consideration #1: The Garage Garages are a very important feature for many homebuyers, and can even end up being a dealbreaker for some buyers. More than a parking spot, garages provide valuable storage and project space, as well as a way to protect your vehicles from all types of damage. When you are first shopping for a home, you may know that you want a garage, but you may not have considered all of the variables that go into the garage design, and which choice is right for you. Garage Design: Why it Matters When evaluating garage design, it’s important to start by considering what you may want to use the space for, and what external factors (such as weather) might impact your use. Here are several major garage design aspects to keep in mind as you house hunt. Rental space: Depending on the size and layout of your garage, is there space that could be rented out full time, or used as a short-term rental to generate additional income? That extra income could be directed towards your mortgage payment. Storage opportunities: Does the garage have room to store what you need to reduce in-home clutter? Is there space for shelves, or even room in the rafters? Potential property value increase: According to the sales comparison approach (SCA), one of the most recognizable forms of valuing residential real estate, a “finished” garage that feels like an extension of the home’s indoor living space is one of several features that can increase overall home value. You may also want to consider the possibilities of eventually remodeling a bland garage in an otherwise perfect home. Attached vs. Detached Garages: Pros vs. Cons One of the biggest distinctions in garage design is whether a garage is attached or detached. Often influenced by lot shape (narrow lots on an alley often have detached garages, wider lots with a driveway often have attached garages) or the age of a home, having a detached or attached garage has both advantages and disadvantages. Attached Garages: Pros Convenient access to your cars, storage, and other items, particularly if you live in an area with an extreme climate Attached garages are often less expensive to build, and can be climate controlled by accessing the electrical and HVAC systems that are part of the home As attached garages are the most popular type of garage, having one typically increases the value of your home Attached Garages: Cons If you’re thinking of adding one, it may not be possible to fit on a narrow, urban lot Since they offer direct access to the home, they can be a security and fire risk They can be hard to add onto or expand, and any additions or changes might require more expensive permits and extensive inspections Adding an attached garage, particularly to a vintage home, may look strange or otherwise detract from the exterior look of the home Noisy garage activities may be heard more inside the home Detached Garages: Pros More flexibility in size, layout and location, lot size and shape permitting It’s easier to add room for cars, storage, and projects, and to add onto if needed Less fire and security risk to your home Less of an impact to the look or curb appeal of your home Can increase the resale value of your home Detached Garages: Cons Particularly in bad weather, less convenient in terms of access Will require separate utilities, HVAC, and more May not be allowed by your HOA or city permitting office Now that we’ve examined the garage, let’s take a look at another key feature — what’s going on with the front and backyard? Home Buying Consideration #2: The Yard No longer limited to just a lawn, yards have now become an extension of the home. A convenient, well-designed outdoor living space is something that many homeowners desire. Yards can be great spaces for entertaining and are often much less expensive to create than comparable indoor entertaining spaces. Here are some important yard elements to consider. Trees and landscaping: Important for both aesthetic and practical reasons, trees and landscaping can increase your yard’s appeal. A mature, well-designed landscape is valuable, as it represents an investment of both time and money. Outdoor kitchen: Whether you are grilling for two or entertaining 200, an outdoor kitchen makes cooking fun and convenient. Fireplace or fire pit: This stylish focal point makes it easy to keep enjoying your yard, even after dark or in cooler weather. Automatic sprinklers, drip system, and misting system: Automatic sprinklers and drip systems can keep your yard looking lush for a low cost, and are particularly valuable in dry climates. Misting systems can also keep you cool on hot days. Deck or Patio: A stylish outdoor surface makes it easy to enjoy your yard, and many new construction materials require little to no maintenance. Shed: Well-designed sheds can go beyond storage, offering everything from a private workspace to extra space for guests to sleep. So, you’re considering the finer points of a yard. But what about adding a body of water to that yard for cooling off on hot days? Here’s the pros and cons of investing in a water element for your next home. Just starting your home search? Here’s the best time to begin. Home Buying Consideration #3: The Pool Pools and hot tubs are perhaps the most controversial of all outdoor home features. Some homebuyers totally avoid them, and some won’t look at a house without them. Which side are you on? Here are some factors to consider. Backyard Pool and Hot Tub: Pros Pools and hot tubs can be aesthetically pleasing Both are also useful for entertaining In warmer climates, pools can provide a way to enjoy the outdoors comfortably If you like to swim, engage in other aquatic exercises regularly for fitness, or use a hot tub for muscle and joint pain, having your own can be convenient In hot climates where pools are common (i.e., Arizona, California, Florida), having a pool can significantly increase the resale value of your home Backyard Pool and Hot Tub: Cons Both pools and hot tubs require regular maintenance that includes chemicals, cleaning, and repair Many families with small children do not want a pool at home due to safety concerns Your insurance cost may be higher, and your utility bills may go up as well, particularly for heating a pool When it is time to sell your home, there are many buyers who will not want a house with a pool A pool is a big decision that comes with both maintenance and benefits alike. You can always opt for a different kind of water feature, like a backyard stream. But if you’re looking to streamline your life, investing in home tech devices is almost a no-brainer. Home Buying Consideration #4: The Appliances and Tech Gadgets As technology improves and designs continually evolve, having up-to-date appliances and other devices in your home has become increasingly important. For example, while attractive kitchens are near the top of many house-hunters’ wish lists, there are items within those kitchens that can help — and items that can hurt — when it comes to increasing a home’s value. Appliances That Can Help Property Value Commercial-grade appliances: Particularly in high-end properties, many buyers expect to see appliances from luxury or professional brands. Smart devices: Thermostats, fire detectors, carbon monoxide detectors, security cameras, door locks, and doorbells are just a few of the relatively new smart home devices that homebuyers are now beginning to appreciate and even expect. Appliances That Can Hurt Property Value Old and energy inefficient: These power-sucking products will cost you in both your utility bill, and the resale value of your home. Homes totally lacking certain appliances: Is your property missing a dishwasher, indoor laundry, or other key features? This can be a major turn-off for buyers who don’t want to have to complete a complicated remodeling and installation project. Mismatched appliances: Appliances from different eras or in different colors can make your kitchen look unfinished and low-quality, even if your other finishes are fantastic. Looking to stock up on home amenities? We’ve targeted the seasonal best deals for doing so. Now that you’ve considered the key interior and exterior components of your dream home, there’s one last important element to contemplate: the driveway. Home Buying Consideration #5: The Driveway Walkways and driveways connect your home to the outside world and play a crucial role in the curb appeal of your residence. Although often overlooked, they are important home features that can be messy and expensive to replace or update. If you are evaluating the driveway at a potential home, or considering an update at your current home, the first choice you will need to make is whether you want asphalt or concrete. Both have benefits and drawbacks that may vary depending on your climate, landscape, and usage needs. Today, many homeowners and buyers are also looking for something beyond the basics, with driveway design trends including elaborate paving materials, irregular shapes, and additional features like extra parking for guests. Know the Tricks, Now Land the House Although these five features may not be your first considerations in the house-hunting process, they are important elements that you will use or interact with nearly every day. Add them to your consideration list, and you will be sure to end up in a customized home that you enjoy and treasure. If you’ve found your ideal home with all the right features, reach out to a PennyMac Loan Officer today or apply online to get pre-approved for the loan that’s right for you.
Live Right, Save Money, Be Happy
Here are some of the tried-and-true methods, along with benefits unique to each approach.
See dentists and doctors regularly
No one likes medical surprises in the form of emergency dental or medical attention. Working adults who neglect doctor and dentist visits are taking serious risks.
Living right and staying healthy means getting the medical attention you need, and getting it routinely. Especially after the age of 50, it's smart to have a full medical exam once per year. There's a reason medical coverage typically reimburses in full for annual check-ups and twice-yearly dental exams. Carriers would much rather pay for a relatively inexpensive wellness exam or check-up than fork over a sizable sum of money for long-term treatment regimens that could have been avoided with preventive care.
Buy life insurance
Purchasing life insurance does two very important things. First, it allows you to provide for your family's financial needs after you're gone. Second, if you get permanent coverage, like a standard whole life policy, you can sell it if you ever need money in an emergency, or for any reason at all.
There's genuine peace of mind that comes with knowing your loved ones are protected from financial stress after you pass away. And if you face unexpected bills and need a ready source of funds, you can simply go online and get several estimates on the sale price of your whole life policy.
The process is fast and simple. Plus, when you sell your life insurance policy, the only amount of the proceeds that are taxable are those that exceed the tax basis (the total amount of premiums you've paid to date). Selling can be a very wise move, too—often, when one spouse passes away, when there's a dire need to pay unexpected medical or other kinds of bills, or the premiums become too high.
Learn how to relax
Stress has the potential to cause medical problems, but it also can make you miserable. The good news is that there are effective ways to beat stress and minimize its effects. Learning to meditate or taking part in guided relaxation sessions are two popular strategies. Regular exercise, stretching, and yoga are other choices that many people find satisfying for keeping stress at bay.
Get enough sleep
When you get between seven and nine hours of sleep per night, it's much easier to wake up refreshed and feeling good every morning. Having the inner calm and physical relaxation that comes with regular, restful sleep means being able to take on the day with a positive outlook and a body that's ready to withstand 16 hours of activity. When you realize that sleep is part of your lifestyle, it's easier to make a commitment to get the amount you need.
Know what PMA stands for and learn to have one
There's an entire industry based on the concept of PMA, or positive mental attitude. Classic books about winning friends, influencing people, and simply thinking in order to grow rich point to the immense power of the human mind.
Of course, maintaining a positive attitude is easier said than done. It takes effort, patience, and persistence. But once you decide to cultivate a PMA, you're already finished with the first step of the journey. The upside is that there are hundreds, perhaps thousands, of books and no-cost online videos about how to create a positive outlook and attitude. The rewards are measurable and real and include things like being able to sleep more soundly, handle life's challenges more adeptly, and find solutions in the face of adversity.
Eliminate the negative
As the classic tune from the 1940s suggests, it helps to eliminate the negative and accentuate the positive. Those timeless words of wisdom contain some potent advice. One way to make your life better is to say goodbye to destructive, negative forces, habits, and ways of thinking.
What does that mean for everyday people who seek self-improvement? It means they have plenty to gain from banishing harmful behaviors like smoking, drinking too much alcohol, taking part in dangerous sports like cliff diving, base jumping, and amateur race driving.
That's not to say there's anything wrong or with those activities when you do them in moderation and with appropriate safety measures in place. But they carry enough risk to make insurance carriers raise rates or flat out deny coverage to participants. So, if you have the desire to purchase an insurance policy that pays a death benefit to someone when you pass away, steer clear of extreme sports and risky hobbies.
Take the time to plan
Planning, both long- and short-range, gives you options and advance warning about financial and other types of problems. Consider making written, detailed plans about buying a first home, your career path, educational goals, relationship goals, whether you want to have a family or not, long-term care insurance, etc. Planning makes things real and attainable. A lifestyle that incorporates planning is a sustainable, rewarding one.
80+ Best Side Job Ideas To Make Extra Money in 2021
Do you want to know, “What can I do as a side job?” Today, I have a list of over 80 possible side hustle ideas for 2021. With these side jobs, you can make extra money in 2021. So, what is a side job? I say side job meaning something that you do on the […]
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Understanding How Solar Tax Credits Work
The U.S has been grappling with the idea of making renewable energy the primary source of power for homes and industries. Solar energy is by far one of the most popular in the market today. As an incentive to ensure that as many homeowners as possible adopt the use of solar energy, the federal government… Read More
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6 Tips to Find Affordable Health Insurance When You Become Self-Employed
If you're dreaming about leaving a corporate job to work for yourself, getting affordable health insurance is probably one of your top concerns. Fortunately, there are more protections now than ever for those who leave the safety of a group health plan.
This post will cover six tips to find affordable health insurance when you become self-employed or leave a job for any reason, so you and your family get the coverage you need.
Major benefits of the Affordable Care Act (ACA)
The Affordable Care Act (ACA), known as Obamacare, became law in 2010, with significant provisions taking effect in 2014. One critical ACA benefit is that you can't be denied coverage or charged sky-high premiums when you have a preexisting medical condition. However, insurers can charge different rates based on where you live, your age, tobacco use, and family size.
One critical ACA benefit is that you can't be denied coverage or charged sky-high premiums when you have a preexisting medical condition.
The ACA also removes annual and lifetime caps on your health coverage. And no matter how much care you receive, the law caps how much you have to pay for it.
Out-of-pocket annual maximums vary depending on your health plan, but if you get in-network care, you'll never have to pay more than $8,150 as an individual, or $16,300 as a family, for the 2020 plan year. For 2021, these amounts increase to $8,550 and $17,100. Note that these limits don't include your monthly premiums.
What is the Affordable Care Act (ACA) Subsidy?
The ACA also offers many low- and middle-income Americans a health subsidy, which cuts the cost of premiums depending on your income and family size. It's a tax credit paid to your health insurance provider every month, which allows you to pay a lower premium.
For 2020, an individual earning approximately less than $51,000 or a family of four making under $104,000 per year may qualify for an insurance subsidy.
The ACA subsidy applies when your household income is between 100% and 400% of your state's federal poverty level. For 2020, an individual earning approximately less than $51,000 or a family of four making under $104,000 per year may qualify for an insurance subsidy.
One challenge to using a subsidy is that it's based on your estimated earnings in the year when you'll get coverage, not on your last year's income. Since self-employment incomes can vary dramatically from month to month, the chances of knowing exactly how much you'll earn in the current or future year may be difficult.
If you underestimate your income for a health subsidy, you may have to return a portion of the tax credit already spent on your insurance during the previous year. In other words, you may owe additional taxes that you weren't expecting.
When you enroll in an ACA plan, you'll have access to a marketplace account. That's where you can update changes to your expected income or family size that affect your tax credit so you can correct it as quickly as possible.
What is the Affordable Care Act (ACA) Mandate?
The ACA mandated that individuals be covered by a qualified health plan or pay a tax penalty if you're uninsured for more than two consecutive months. The mandate applies no matter if you're employed, self-employed, unemployed, a child, an adult, or where you live.
Technically, it's still illegal to be uninsured, but the federal government won't penalize you for it.
However, starting in 2019, due to the Tax Cuts and Jobs Act, the mandate penalty for not having health insurance no longer applies. Technically, it's still illegal to be uninsured, but the federal government won't penalize you for it.
But several states have their own insurance mandates, requiring you to have a qualifying health plan. You may have to pay the penalty for being uninsured if you live in:
- California
- District of Columbia
- Massachusetts
- New Jersey
- Rhode Island
- Vermont
For example, California residents without ACA coverage in 2020 face a penalty up to 2.5% of household income, or $696 per adult, and $375.50 per child, whichever is greater. So, even if the federal government won't penalize you for being uninsured, you could have to pay a hefty state penalty, depending on where you live. More states will likely adopt penalties to keep the cost of coverage for residents as low as possible.
The ACA established health insurance exchanges, primarily as online marketplaces, administered by either federal or state governments. That's where individuals, the self-employed, and small businesses can shop and purchase qualified insurance plans and find other options, depending on your income.
How to get affordable health insurance
When you go out on your own, the cost of a health plan can be shocking—especially if you just left a company that paid a big chunk of the insurance bill on your behalf.
Remember that the high cost of health insurance pales when compared to the alternative. Having a medical emergency or being diagnosed with a severe illness that you can't afford to treat could be devastating.
Remember that the high cost of health insurance pales when compared to the alternative.
Here are six tips for finding affordable health insurance when you become self-employed or no longer have job-based coverage for any reason:
1. Join a spouse or partner's plan
If your spouse or partner has employer-sponsored health insurance, joining their plan could be your most affordable option. Group insurance generally costs much less than individual coverage. Plus, some employers subsidize a portion of your premium as a benefit.
However, some employer plans may not offer domestic partner benefits to unmarried couples. So, find out from the benefits administrator what's allowed.
If you're under age 26, another option is to join or remain on a parent's health plan if they're willing to have you. Even if you're married, not living with your parents, and not financially dependent on them, the ACA allows you to get health insurance using a parent's plan. However, once you're over age 26, you'll have to use another option covered here.
2. Enroll in a federal or state marketplace plan
As I mentioned, the ACA established federal and state marketplaces for consumers who don't have access to employer-sponsored health insurance. The following states have health insurance exchanges:
- California
- Colorado
- Connecticut
- District of Columbia
- Idaho
- Maryland
- Massachusetts
- Minnesota
- Nevada
- New York
- Rhode Island
- Vermont
- Washington
No matter where you live, you can begin shopping for an ACA-qualified health plan at healthcare.gov. However, you can only apply for a policy during the annual open enrollment period—November 1 to December 15, for coverage that will begin on January 1 of the following year. Some states with healthcare exchanges have an extended enrollment period.
In general, if you miss the enrollment window, you can't get an ACA health plan until the following year unless you qualify for a special enrollment. That allows you to purchase or change coverage any time of the year if you have a major qualifying life event, such as losing insurance at work, getting married or divorced, having a child, or relocating. However, you typically only have 60 days after the event occurs to enroll.
If your income is too high to qualify for a healthcare subsidy, you can still buy health insurance through the federal or your state's exchange. You can also get an ACA-qualified health plan directly from an insurance company, a health insurance agent or broker, or an online insurance aggregator.
3. Consider a high-deductible health plan (HDHP)
One way to reduce the cost of health insurance premiums is to choose a high-deductible health plan (HDHP). You enjoy lower monthly premiums but have higher out-of-pocket costs. If you're in relatively good health, an HDHP can make sense; however, if you get sick, it can end up costing you more.
Paying for a broad range of HSA-eligible medical, dental, mental, and vision costs on a tax-free basis can add up to massive savings!
Another benefit of having an HDHP is that you qualify for a health savings account (HSA). Contributions to an HSA are tax-deductible and can be withdrawn at any time to pay for qualified medical expenses, such as doctor co-pays, prescription drugs, dental care, chiropractic, prescription eyeglasses, and mental health care.
Paying for a broad range of HSA-eligible medical, dental, mental, and vision costs on a tax-free basis can add up to massive savings!
4. Get a short-term plan
If you miss the deadline to enroll in an ACA health plan and don't qualify for special enrollment, are you simply out of luck? Fortunately, no. You can purchase a short-term health plan until the next enrollment period comes around.
The problem is, short-term plans don't have to meet ACA standards and only offer temporary coverage, such as for a few months or up to a year. You may be eligible to renew a plan for up to three years in some states, depending on the insurer.
You won't find short-term plans on the federal or state exchange, and therefore can't get a subsidy when you purchase one. However, they can be less expensive than an ACA-qualified plan.
Short-term plans can charge more if you have preexisting conditions, put caps on benefits, or not cover essential services like prescriptions and preventive care. Because they fall short of ACA requirements, you can have one and still be subject to a state-mandated health penalty.
You won't find short-term plans on the federal or state exchange, and therefore can't get a subsidy when you purchase one. However, they can be less expensive than an ACA-qualified plan.
Having short-term coverage is certainly better than being uninsured, but I recommend replacing it with qualified health coverage as soon as possible. That's the best way to have the protection you need against the enormous financial risk of medical costs.
5. Enroll in Medicaid and CHIP (Children's Health Insurance Program)
If you can't afford health insurance, you may be eligible for free or low-cost coverage through Medicaid or CHIP at any time of year, depending on your income, family size, and the state where you live. In general, if you earn less than the poverty level, which is currently $12,760 for an individual or $26,200 for a family of four, you may qualify for these programs. They may have different names depending on where you live.
Unlike ACA health plans, state-run health programs don't have set open enrollment periods, so if you qualify, coverage can begin any time of year.
When you complete an application at the federal or state health insurance exchange, you can also determine if you qualify for coverage through Medicaid and CHIP programs. You can learn more about both programs at medicaid.gov.
6. Get COBRA coverage
If you leave a job with group health insurance, you can enroll in COBRA (Consolidated Omnibus Budget Reconciliation Act) coverage. It isn't an insurance company or a health plan, but a regulation that gives you the option to continue your employer-sponsored health insurance after you're no longer employed.
Instead of having your plan canceled the month you leave a job, you can use COBRA to continue getting the same benefits and choices you had before you left the company. In most cases, you can get COBRA benefits for up to 18 months.
The problem with COBRA coverage is that it's temporary and can be expensive. Unlike other federal benefits, such as the Family and Medical Leave Act (FMLA), employers don't have to pay for COBRA. You typically have to pay the full cost of premiums, plus a 2 percent administrative charge, to the insurer.
If you're not eligible for regular, federal COBRA, many states offer similar programs, called Mini COBRA. To learn more, check with your state's department of insurance.
Health insurance shopping tips
After you become self-employed and purchase health insurance, it's crucial to shop for plans every open enrollment period. Your or your family's medical needs or income may change.
Additionally, new health insurers come in and go out of the health insurance marketplace. Carriers that offered plans in your ZIP code last year may not be the same set of players this year. In other words, a competitor could offer a similar or better plan than yours, for a lower price. So, if you don't shop annually, you could leave money on the table.