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Apache is functioning normally

May 28, 2023 by Brett Tams

When I was considering leaving my full-time job, I had some concerns. My main concern? Health insurance. And it wasn’t just me. Since my husband didn’t have health insurance coverage through his job, he had been covered under my policy for years. Plus, we were going to be adding kids to our family, so we needed to think about them too.

First, we took care of my husband’s needs. About a year ago, he started looking for a private health insurance plan — and since he is a healthy guy, he found an inexpensive one rather easily. And once we adopted the kids, they could also go on his plan with no problems.

So that left me. If I quit my job, I had a few options: 1. Find my own private health insurance plan 2. Go without insurance 3. COBRA 4. Find a non-insurance alternative.

A history of cancer, although it was a very minor case, eliminated finding my own private health insurance plan…at least for 2013. The Affordable Care Act would have eliminated that, of course, but not until 2014. Going without insurance seemed like a crazy choice, especially since medical bills are the number one cause of bankruptcy. For approximately $1,000 per month, I also could have gone on COBRA. I strongly considered using COBRA as a “bridge” to help me make it to the day when my preexisting condition would be covered. However, the last option, finding a non-insurance alternative, was the one I chose. Here is why, how it works, and what I think of it so far.

Although I do not have health insurance, what I do have is an eligible option under the Affordable Care Act. It’s a medical cost-sharing plan that is available to Christians who follow certain guidelines including moderate use of alcohol, and no tobacco or illegal drug use. Although I was unable to find similar options available to people who weren’t Christians, I think creating something like this would be amazing. Like, the vegetarian medical-cost-sharing plan, or the Paleo cost-sharing plan, or basically any overall healthy group. But I digress.

How It Works

When I signed up, I had to choose a level which determined the amount of money that I pay each month. The highest level requires the member to pay $500 per incident. An incident could include surgery, a broken bone, or pregnancy. For instance, if I needed to have my appendix removed, I would be responsible for the first $500 of all doctor/hospital/lab bills, but that’s it. On the other hand, if I have an annual physical that costs $400 with associated labs and testing, I would pay for all of it because I didn’t exceed $500 per incident. Ditto for the next incident. The other levels are less expensive, but require more member financial responsibility.

So each month, I send in my voluntary gift amount (not called a premium since this is not health insurance). This money gets sent to an escrow account, which is then distributed to other members, according to their eligible medical expenses. Certain medical expenses are not eligible, including more recent preexisting conditions. Each month, I get a newsletter that lists members who have ineligible expenses. If I want to, I can send extra money to be used for their expenses.

I’ll be honest: After over a decade of having regular health insurance, this felt like a scary option. But I have seen it work. As I have mentioned several times, my father had terminal cancer years ago. He had multiple surgeries, chemotherapy, radiation therapy, visits to the Mayo Clinic, and many other tests. And he had the same medical-cost-sharing plan as well. His bills were paid, so I knew the plan worked for him. I just hoped that it would work for me.

What I Think so Far

Wouldn’t you know, I had an incident about 10 weeks after signing up. I have paid almost $1,000 in bills so far with more to come, but I have submitted all my itemized bills to the organization, and I am waiting to be reimbursed for all my expenses, minus the first $500. (Just FYI, they do not recommend personally paying bills that are over $1,000. Instead, they recommend that these bills are submitted directly to the organization.) Additionally, I was not required to pay more than $500, but it can take 60 to 90 days for bills to be paid. Since we had the money in savings, I preferred to pay the bills and wait for reimbursements. But that’s just me.)

Another marked difference is my role in my health care now. I didn’t bother to shop around for my medical care before, because no matter which hospital or doctor I chose, I incurred the same costs. But now, I shop around. For instance, when I needed some lab testing, I could have chosen to go to my usual hospital lab or I could have gone to an independent lab, which was half the cost. I chose the independent lab.

Since I am officially a self-pay patient, I have also asked all my providers for discounts. Every time (except once), I did get a discount off my bill, all the way up to 20 percent off. I thought it would be awkward, since I hate negotiating, but it hasn’t been a big deal at all. I just simply say, “Do you offer discounts for self-pay patients?” If they do, super. If not, I deal with it. I also don’t feel bad about it, because insurance companies don’t pay the full price either. In fact, my doctor’s office is small and doesn’t have a standard discount for self-pay patients, so they bill me at the Blue Cross/Blue Shield contract rates.

We were notified that my husband’s and children’s insurance costs are going to double effective January 1, 2014, so I am also considering signing them up too. Our monthly costs, should all of us be on this plan, would be about half of what it would be otherwise. Other than financial benefits, I feel like I am more involved in my health care, and it hasn’t felt more complicated…yet. And this probably sounds really idiotic (like, why wouldn’t I have done this anyway?), but since I am on the hook for more of my costs, I am trying to be more healthful in general so my costs stay down over time.

If interested, here are some medical-cost-sharing websites for further research:

www.samaritanministries.org

www.chministries.org

www.mychristiancare.org

Source: getrichslowly.org

Apache is functioning normally

May 28, 2023 by Brett Tams

Now that tapping home equity is back in fashion, I figured it’d be helpful to see who the top HELOC lenders are.

Last year, banks and mortgage lenders doled out nearly one million home equity lines of credit (HELOCs), per HMDA data.

A total of 962,000 HELOCs were opened in 2021, up 10.7% from the 869,000 originated in 2020, the first annual increase in three years.

I expect HELOC originations to rise again in 2022 now that mortgage rates on existing first mortgages are so low relative to what’s available today.

Read on to see who the top HELOC originators were last year.

Top HELOC Lenders

Ranking	Company Name	2021 Loan Count
1.	Citizens Bank	48,992
2.	PNC Bank	40,566
3.	Truist	40,088
4.	U.S. Bank	34,470
5.	Bank of America	31,375
6.	Huntington Bank	27,783
7.	Third Federal	16,449
8.	Figure Lending	14,726
9.	Regions Bank	13,266
10.	Boeing Employees CU	13,202
11.	Mountain America CU	12,241
12.	Zions Bank	11,127
13.	State Employees CU	11,053
14.	PenFed	10,362
15.	KeyBank	10,238
16.	Fifth Third	10,194
17.	TD Bank	9,536
18.	First Citizens	9,518
19.	M&T Bank	9,287
20.	America First CU	9,065
21.	BMO Bank	8,870
22.	Bank of the West	8,395
23.	Alliant CU	7,992
24.	Idaho Central CU	7,413
25.	Ent CU	7,399

Last year, Citizens Bank led all HELOC lenders with nearly 50,000 lines of credit originated (48,992), representing a solid 5.1% market share, per HMDA data from the CFPB.

They were followed by PNC Bank with 40,566 HELOCs originated for a 4.2% share.

A similar total was generated by Truist Bank (40,088) for a market share of 4.2%.

U.S. Bank took third with 34,470 HELOCs opened and a 3.6% market share, followed by Bank of America with 31,375 lines of credit opened for a 3.3% market share.

In 2020, Bank of America had been the #1 HELOC lender with a 5.6% market share before falling to fifth in 2021.

Huntington Bank took sixth with a 2.9% market share, Third Federal came in seventh with a 1.7% share of the market, and newcomer Figure Lending took eighth with a 1.5% market share.

Regions Bank and Boeing Employees Credit Union rounded out the top 10 with 1.4% of the market, each.

You can see the top 25 HELOC lenders in the above table for more details. These 25 institutions alone accounted for 44% of the overall HELOC market.

Looking for a HELOC? Try a Depository Institution

If you’re in need of a HELOC, know that they’re mostly offered by depository institutions, also known as DIs.

In 2021, 809 DIs, including 271 banks and 538 credit unions, originated 934,000 HELOCs, per the HMDA data.

That represented 97.1% of all HELOC originations reported. In other words, practically every HELOC was opened by a bank or a credit union.

This differs from first mortgages, which have been dominated by nonbank lenders over the past several years.

These nonbank lenders, or non-DIs, accounted for just 2.9% of the HELOC market.

For the record, just one of the top 25 HELOC lenders was an independent mortgage company, Figure Lending.

It’s unclear if that will change in 2022 and beyond, though these companies are looking to get in on the action by offering HELOCs and home equity loans.

For example, Rocket Mortgage launched a closed-end home equity loan (HEL) in early August.

Meanwhile, wholesale lender United Wholesale Mortgage (UWM) released two HELOCs, including a standalone and a piggyback.

Regardless, there’s a good chance a local credit union (or the bank you already do business with) will offer HELOCs.

Who Are the Best HELOC Lenders?

So we know it’s mostly banks and credit unions that offer HELOCs. The question is which one is the best of the bunch?

That’s hard to quantify because banks and credit unions offer lots of different products, not just HELOCs.

As such, reading their reviews probably won’t give us a lot to chew on. Sure, we can see how they are rated on the whole.

But that might mean nothing with regard to their home equity lending.

You still want them to have favorable ratings, but that aside, I would look at the interest rate and loan term offered.

HELOC rates can range quite a bit from bank to bank, so put in the time to see who is offering what.

And pay attention to the margin (which is added to the prime rate), the loan term (how many years to draw and pay it off), and the starting interest rate.

Also take note of any perks such as the ability to lock in your rate so it’s no longer adjustable.

Though the way things are going, HELOC rates might peak in 2023 before beginning to flatten or fall as the Fed stops raising rates (and maybe even lowers them).

Either way, be sure to exhaust all your options in your HELOC search to ensure you don’t miss out on a better deal.

Source: thetruthaboutmortgage.com

Apache is functioning normally

May 28, 2023 by Brett Tams

Back in July, the NCAA granted college athletes the opportunity to make money by using their “name, image and likeness” (NIL).

This means getting paid to sign autographs, make appearances, or promote products and services, among other things.

Importantly, it keeps college sports from turning into pay-for-play schemes, while also providing clarity to student-athletes and their families.

These NIL opportunities are beginning to materialize, and we now have what appears to be the first mortgage-related deal.

The nation’s second largest mortgage lender, United Wholesale Mortgage, is offering $500 per month to Michigan State University (MSU) athletes.

Because UWM is a wholesale mortgage lender, these athletes will essentially be promoting the mortgage broker model.

MSU Athletes Can Earn $500 Per Month for the 2021-2022 Season

This new partnership involves MSU men’s basketball and football players, of which there are 133 in total.

Each one will have the opportunity to earn $500 per month for the 2021-2022 season, which will amount to $6,000 per player.

In terms of how they’ll market UWM, it’ll apparently be via social media channels as opposed to a clothing partnership.

Per Crain’s Detroit Business, the MSU players won’t “be required to wear UWM logos on their jerseys.”

This differs from UWM’s earlier deal with the Detroit Pistons, in which their logo will feature on the left front strap of official team jerseys for the 2021-22 NBA season.

So expect all your favorite MSU student-athletes to pitch mortgage brokers and specifically UWM on Instagram and other social media platforms.

Rocket Mortgage Is the Official Mortgage Provider of MSU Athletics

What makes this story a little more interesting is the fact that UWM isn’t even the “official mortgage provider” of MSU.

That title goes to crosstown rival Rocket Mortgage, which recently inked a new five-year deal to be the presenting sponsor of the men’s basketball team.

If you visit the Breslin Center for a hoops game, you’ll see signage that reads “MSU Spartans Presented by Rocket Mortgage.”

There will also be “considerable branding” throughout the Breslin Center and Spartan Stadium for Rocket Mortgage.

Notably, the Rocket Mortgage logo will be “prominently displayed” on MSU football coach Mel Tucker’s headset, along with the MSU men’s and women’s basketball team benches and clipboards.

So while the players may be pitching UWM, they’ll have to compete with the massive Rocket brand campaign at the same time.

Rocket Mortgage and UWM Founders Are Both Michigan State Alum

As to why MSU appears to be the crown jewel to both the #1 and #2 mortgage company in the United States, it has a little to do with history.

It just so happens to be the alma mater of Rocket Mortgage founder Dan Gilbert, along with current UWM president and CEO Mat Ishbia.

Ishbia is actually the founder’s son, and joined UWM as its 12th team member after briefly coaching the MSU basketball team alongside Tom Izzo.

Before that, Ishbia also won a national championship with the Spartans basketball team back in 2000.

Both Rocket Mortgage and UWM have also been very active in metro Detroit and nearby, contributing to revitalization efforts in the state.

So it appears this is a sort of battle between the companies, which constantly exchange jabs in somewhat subtle, yet not so subtle ways.

This latest exchange makes MSU the venue for a proxy war between retail mortgage lending and wholesale lending, the latter fueled by mortgage brokers.

For the record, Rocket Mortgage also announced that through new and expanded multi-year deals, it now has partnerships with 25 of the “most influential and prestigious athletic programs” in the nation.

That list includes four Historically Black Colleges and Universities (HBCUs): Grambling State, Howard, Jackson State, and Southern University.

Perhaps the Rocket/UWM rivalry is better than college sports…

Source: thetruthaboutmortgage.com

Apache is functioning normally

May 28, 2023 by Brett Tams

If you’re a senior, you might be wondering who the top reverse mortgage lenders in the nation are.

Unlike the traditional home loan market, the reverse mortgage industry is dominated by a small handful of companies.

Typically, these lenders specialize in reverse mortgage lending, as opposed to simply offering the loans alongside other options.

As a quick refresher, a reverse mortgage loan allows homeowners 62 and older (55 in some cases) to access cash in their property without monthly payments.

In 2021, reverse lenders originated 59,000 loans, a 36% increase from the 43,000 the year prior. Read on to see who made the top-10 list last year.

Top Reverse Mortgage Lenders

Ranking	Company Name	2021 Loan Count
1.	AAG	18,407 (31.3% share)
2.	FOA Reverse	10,575 (18% share)
3.	Reverse Mortgage Funding	6,177 (10.5% share)
4.	PHH Mortgage	4,319 (7.3% share)
5.	Mutual of Omaha	4,101 (7% share)
6.	Longbridge Financial	3,636 (6.2% share)
7.	Cornerstone First	3,296 (5.6% share)
8.	Open Mortgage	2,444 (4.2% share)
9.	HighTechLending	1,144 (1.9% share)
10.	Nationwide Equities	705 (1.2% share)

Last year, the top reverse mortgage lender in the country was American Advisors Group, or AAG for short.

The company originated more than 18,000 reverse mortgages in 2021, per HMDA data from the Consumer Financial Protection Bureau (CFPB).

While that might not sound like a lot of loans, it represented a staggering 31.3% market share.

So one company grabbed nearly a third of the entire reverse mortgage market. And yes, actor Tom Selleck of Magnum P.I. fame has been their spokesperson for a while now.

For perspective, the nation’s #1 mortgage lender (for forward mortgages), Rocket Mortgage, held an 8.8% market share in 2021.

AAG was also number one in 2020 with a slightly higher 35% market share.

In second place was Finance of America Reverse, the reverse mortgage division of FOA.

The company funded more than 10,500 reverse mortgages during the year, giving them an also impressive 18% market share. They ranked second in 2020 also with a 20.2% share.

Coming in third was Reverse Mortgage Funding LLC, which originated more than 6,000 loans for a 10.5% market share. They were third a year earlier as well with a very similar share.

In fourth was PHH Mortgage, which also offers forward mortgages to customers. The company managed to originate more than 4,300 reverse loans for a 7.3% market share.

Rounding out the top five was Mutual of Omaha Mortgage with about 4,100 loans funded for a 7% share of the market.

Collectively, the top five reverse mortgage lenders held about 75% of the overall market.

In sixth was Longbridge Financial with 3,600 loans funded and a 6.2% market share.

Seventh place went to Cornerstone First Financial with nearly 3,300 reverse loans funded for a 5.6% market share.

Behind them was Open Mortgage with nearly 2,500 reverse mortgages originated for a 4.2% share of the market.

HighTechLending Inc. (dba American Senior) took ninth with about 1,150 loans funded and a 1.9% market share, followed by Nationwide Equities Corp. with 705 loans and a 1.2% share.

Altogether, the top 10 reverse mortgage lenders held about a 93% share of the overall market.

Who Are the Top Rated Reverse Mortgage Companies?

We know who the biggest reverse mortgage lenders in the country are, but what about best?

That’s a different story, and one that can be difficult to quantify due to the many ratings websites out there.

However, I did some digging to find a good sample size of reviews for each company listed to see what customers think of them. We’ll also check out their Better Business Bureau (BBB) rating.

Starting with AAG, they have an “excellent” 4.5/5 score on Trustpilot from nearly 5,000 customer reviews. Their BBB rating is currently a ‘B+.’

Finance of America Reverse has a “great” 4/5 score on Trustpilot from about 500 reviews and an ‘A+’ BBB rating.

Reverse Mortgage Funding LLC has an excellent 4.6/5 score on Trustpilot from nearly 600 reviews and an ‘A+’ BBB rating.

PHH Mortgage has a 3.9/5 on Consumer Affairs from about 600 reviews and a ‘B+’ BBB rating. Other review sites didn’t have a large enough sample size.

Mutual of Omaha Reverse has a 3.9/5 score on Trustpilot from over 100 reviews and an ‘A+’ BBB rating.

Longbridge Financial has a 4.8/5 score on Trustpilot from nearly 800 reviews and an ‘A+’ BBB rating.

Cornerstone First Financial has a 4.9 rating from about 250 Google reviews and an ‘A+’ BBB rating.

Open Mortgage has a 4.91/5 on Zillow from about 25 reviews (most I could find) and an ‘A+’ BBB rating.

HighTechLending Inc. (dba American Senior) has a 4.95/5 on Zillow from about 110 reviews and an ‘A+’ BBB rating.

Lastly, Nationwide Equities Corp. has a 4.98/5 on Zillow from roughly 110 reviews and an ‘A’ BBB rating.

Remember to look beyond just the top names and also consider mortgage brokers, local credit unions, and more for in your search for a reverse mortgage.

Source: thetruthaboutmortgage.com

Apache is functioning normally

May 28, 2023 by Brett Tams

Secret phone plans? No contracts? Unadvertised payment plans with no interest? These are all available. But you’ll never know until you ask.

I recently decided to switch carriers to T-Mobile, so I jumped on their website to start doing the math of the different plans that they offered.

Just when I felt I couldn’t possibly calculate the details of one more plan, I came across a section on the website that featured plans without contracts. This section was buried; in fact, I had to be logged on a friend’s account who was already a customer to be able to see the plans at all.

I was confused by what I found. The plans without the contracts had a lower monthly cost than the plans with contracts. I figured there would be a premium fee to not be locked in to a two-year contract, but I was seeing just the opposite.

I went into a T-Mobile store and asked about the plans. They didn’t show me any plans without a long contract. So I asked about a no-contract plan but the sales person was dismissive, saying “but you’re going to have to pay full pay price for the phone.”

I insisted that I wanted to see the plan anyway, and he went to the back of the store to dig up the brochure for me.

The exact same plan without a contract was $110 a month instead of $140 a month, for a savings of $360 a year. I looked for the catch, but the only catch was the no-contract plan didn’t offer the usual discount on a new phone.

The phone I wanted to buy retailed at $500, but cost just $200 with a contract. (That’s a savings of $300, in case your math muscles aren’t working.) I quickly did the math: I could save $360 per year without a contract, but would have to pay $300 more for the phone. That still left me with $60 in my pocket for not having a contract, meaning no insane fees if I wanted to leave the contract or switch carriers. Plus, everything after the first year was pure “profit”.

I soon learned from the sales associate that apparently no one had ever bought a phone outright and taken them up on the no-contract plan. It’s not advertised and therefore usually not asked about. They just assume that no one will want to pay more now in order to save later.

The sales associate couldn’t believe that I was “baller” enough (his exact words) to pay $500 for a phone — even though I was actually saving money within a year. He even asked me what I did for a living to be able to afford such an extravagance!

It gets better. When he went to ring up the phone, he asked me if I wanted a payment plan. I asked for the details and he told me that they offer no-interest payment plans so that people don’t have to shell out the full cost outright. Meaning that if you didn’t have the $500 for the phone, you could still save money by going with a no-contract plan!

Again, this isn’t advertised. You just have to ask.

It made me wonder what other companies aren’t telling me about ways that I can save because they assume that no one wants to pay more up front.

Call your cell phone company, cable company, or insurance company today and ask if they have any other options. They might have something without a contract, a AAA discount, or other ways to save. Many companies have plans they don’t publish publicly. Check out these past Get Rich Slowly articles for more ways to save:

Remember: Don’t be afraid to ask!

Source: getrichslowly.org

Apache is functioning normally

May 28, 2023 by Brett Tams

This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.

How many times have you thought about how much FI would it take to retire?

It’s a question that can be frustrating, especially since the answer is different for everyone.

What if there was an easy way to calculate your personal FI number and find out what kind of portfolio you need based on your spending habits? That’s where this handy calculator comes in!

Calculating your FI number is not as difficult as it sounds.

This is an important personal finance number to know.

If you desire to do something else or are just looking forward to retirement, you need to know how much money you need!

What is FI number?

FI number is the amount of money needed to retire.

It can be calculated using your salary, interest rate, and the time period in which you need to save for retirement.

The 4% figure is a reasonable place to start. The 4% rule is a conservative estimate, with the expectation that Social Security will play a larger role in retirement income.

Why Choose Financial independence?

Financial Independence, or “FI”, is a term used to describe the state of not needing to work for a living because your passive income from investments or savings can cover your living expenses.

It doesn’t mean you have to stop working altogether, it just means you’re no longer tied down by the need to earn a certain amount of money each month.

FI is an attractive proposition for many people because it allows them the freedom and flexibility to pursue their passions or hobbies without having to worry about financial constraints. And if you have money saved up, you can live comfortably off your savings or investments!

How to calculate your FI number?

There are a few different ways to calculate your FI number. The easiest way is to use an online calculator. This will give you a ballpark estimate of what you need to save in order to achieve financial independence.

Option #1 – Using Yearly Spending

One way to calculate your FI number is by multiplying your annual spending by 25. This will give you the amount you need in savings to have 25 times your annual spending available each year without having to touch the principal.

FI Number = yearly spending * 25

For example, if you spend $50000 a year, your FI number would be $1,250,000.

Option #2 – Using a Safe Withdrawal Rate of 4%

Another way to calculate your FI number is by using the safe withdrawal rate of 4%. In fact, many studies believe that 4% is the too old way of thinking and 3.3% is a better safe withdrawal rate (SWR).

You can calculate either way. If you prefer to pull more money out at retirement, then stick with 4%.

FI Number = yearly spending / Safe Withdrawal Rate

For example, if you spend $50000 a year and choose a 4% Safe withdrawal rate, your FI number would be $1,250,000.

Using a 3% safe withdrawal rate, your FI number would be $1,666,666.

The Financial Independence Formula

Do you know your FI number?

It’s a question people are often too embarrassed to ask, but if you don’t have an idea of what it is or where it comes from, you might be spending too much of your money.

Let’s start with the basics and work our way up to where we are today in terms of financial independence!

Calculate Your Spending

In order to calculate your spending, you need to know how much money you spend in a year. To do this, simply multiply your monthly spending by 12. This will give you an estimate of how much money you spend on an annual basis.

It’s important to have a detailed zero based budget before calculating your Financial Independence Formula. This way, you can be sure that you are including all of your regular expenses (and irregular expenses) in your calculations.

The FI Formula is based on conservative retirement calculations, so it’s important to include all of your regular expenses in the formula. The more accurate your figures are, the better idea you’ll have of how much money you’ll need for retirement.

Find Your FI Number

In order to achieve financial independence, you need to find your FI number.

This is determined by two factors: spending and withdrawal rate. The safe withdrawal rate (SWR) determines how much money you are able to withdraw each year without running out of savings in your lifetime. You divide your current spending by SWR to find out how much wealth you need in order to reach a certain financial target.

FI Number = yearly spending / Safe Withdrawal Rate

Everyone will have different FI numbs.

Determine Years to Financial Independence

The Financial Independence Formula may help estimate how much time it will take to reach financial independence. The formula is only a rough estimate, and you must adjust it as needed for more accurate calculations for your own savings plan.

The Financial Independence Formula factors in how much you need to save each year to become financially independent.

The goal of the Financial Independence Formula is to achieve financial independence before the typical retirement age of 45.

Years to FI = (FI Number – Amount Already Saved) / Yearly Saving

Using the example above, we calculated your FI number to be $1.25 million. You have already saved $450,000 and currently saving $25000 a year.

32 Years to FI = (1250000 – 450000) / 25000

However, if you increase your savings rate to $80000, then

10 Years to FI = (1250000 – 450000) / 80000

As you can tell, the more you are able to save and invest, the quicker you will reach FI.

For the amount already saved, you need to use the amount saved in retirement plans as well as any taxable accounts that will fund your lifestyle.

A commonly asked question is… should I include my house value? Honestly, the answer is no – unless part of your FI plan includes selling your house and moving to a lower cost of living area. Then, you would use the difference of your appreciated house value minus the cost of a cheaper home.

How to FI – Create a Plan

One of the most important aspects of actually achieving financial independence is to create an action plan.

Without action, you will be spinning on the same cycle over and over.

So, take an hour and start making your plan.

Step #1 – Figure out Numbers

The first step is figuring out your FI number and how many years away you can be.

There are many ways to make variations on finding your FI number. So, make sure you take into account how many years it will take for you to reach financial independence at your current savings rate.

This is the most important step!

Step #2 – Pick a Realistic Date

This is when most people get motivated when they pick a realistic date to retire early.

Every single decision you make will take you one step closer to your goal.

You are working backward from your “selected” date.

Step #3 – Take Action to Enjoy Life

The hardest step for actually making the decision to FI is to take action.

There are so many factors going into what you need to do once your know your FI number.

You can’t just sit back and do nothing once you know your FI number. You have to follow the steps below on saving and investing to reach financial independence.

For many people, this is choosing to live a frugal green lifestyle while saving money.

How to FI – Saving to Achieve Financial Independence

The FI Number Calculator is a simple tool that helps you calculate how much it will take to reach financial independence when investing in the stock market and using your savings rate as well.

But there are certain steps you must take to be able to save more money to jumpstart your path to financial independence. While many of our money saving challenges will help you, you need to find ways to save more money.

Step #1: Pay Off Debt

When you’re working to achieve Financial Independence, it’s important to address your debt. Paying off debt will help you achieve financial independence faster.

There are two types of debt that are especially important to pay off:

Credit card debt
Student loan debt

Credit card companies have high interest rates, so it’s important to consolidate your credit card debt by using Tally or an equivalent service. This can help you find a lower monthly payment and reduce the amount of time it takes to pay off your debt.

Before seeking to consolidate your credit card debt, make a plan for how you’ll avoid future use of this type of loan!

Debt is a cash flow drain while pursuing Financial Independence.

Step #2: Reduce Expenses

There are many ways to reduce expenses and achieve financial independence faster.

One potential area for savings is housing, which can be achieved through refinancing, house hacking, or downsizing.

Other options include trading in your new car for a beater car, scaling back on eating out or cutting back on your streaming services.

Typically those who budget consistently have an easier time reducing their expenses. Using a budget binder will help you find ways to reduce your expenses.

Step #3: Boost your income

This is probably the most important step to be able to increase your saving percentage significantly!

There are many ways to boost your income and save more money.

For example:

Find ways to increase your income from your 9-5 job.
Develop skills or get promoted to earn a better job with higher pay.
Side hustling can help you earn a decent income every month.
Find passive income streams as ways to start earning more money without any effort on your part.
Sell your old stuff on websites like eBay or Amazon for some quick cash infusion into your savings account.

Finding ways to make money fast is important during your FI journey.

You must search for additional sources of income, as they can help you save more and invest more in the future.

Step #4: Invest Money

It’s important to invest money in order to grow your wealth. You can do this automatically by investing through most online brokers.

This way, you’ll avoid making any rash decisions based on fear or greed. Investing consistently is a great way to get an average of 8-12% returns on your investments.

The idea is to save as much as possible and invest in assets that provide a high return on investment. This could include buying stocks, real estate, or other investments that offer long-term stability and growth potential.

Learn how to invest $100 to make $1000 a day.

How to FI – Investing to Reach Financial Independence

Now is a good time to start investing for financial independence.

When you’re ready to invest, it’s important to make sure the investment risk matches what you can handle. A portfolio must match your risk tolerance and long-term goals if you want to achieve financial independence.

We will cover various options on how to use investing to help you reach FI sooner.

Step#1: Make Investments Automatic

When you invest your money automatically, you don’t have to think about it and you can take advantage of dollar-cost averaging.

This means that over time, you’ll get a better price for your investments since you’re buying them in small batches instead of all at once.

In layman’s terms, that means investing a certain amount of money each month.

Step #2: Choose an Index Portfolio

Creating a lazy index portfolio is one of the best ways to invest your money.

This type of portfolio is made up of low-cost index funds or ETFs, which means that you don’t have to worry about timing the market or trying to pick stocks that will outperform the rest.

All you need to do is hold on for the long term and let the market do its thing – in good times and bad.

Step #3: Track Your Progress

As you save and invest your money, it’s important to track your progress so that you can see how well you’re doing and whether or not you’re on track to reach Financial Independence.

This can be done easily by creating a budget and tracking your net worth, both of which will give you great insight into where you are with your finances.

Also, track your liquid net worth separately.

Seeing this progress in black and white is often motivating enough to encourage people to keep saving and investing!

Empower is a comprehensive suite of financial tools that offers a FREE way to track your investment and cash accounts. You can connect all of your accounts so you can see an overview of all of your finances in one place, and the best part is that it’s free! Check out my Empower Review.

Empower Personal Wealth, LLC (“EPW”) compensates Money Bliss for new leads. Money Bliss is not an investment client of Personal Capital Advisors Corporation or Empower Advisory Group, LLC.

FI Number Calculator

The Financial Independence Number Calculator uses a range of variables to calculate the length of time it would take to save for FI. This information can be helpful in developing a savings plan that is tailored specifically to your individual needs.

Here is a simple FI number calculator.

As you can imagine, there are many different scenarios for finding your FI number.

For starters, get a ballpark range and amount you need to save each year to reach your goal. As you get closer to actually, hitting that switch and becoming fully financially independent, then you can refine your FI number.

Remember, while this formula provides a ballpark estimate, more precise results are possible by using a financial independence calculator such as Networthify’s model.

Saving for Retirement or More Savings to Quit work?

If you have some money saved already, the time to reach FI will be shorter than if you are starting from zero. Saving at a high rate is important to reach FI in the shortest time possible; saving at a lower rate or not saving anything makes reaching FI impossible.

Financial Independence is reached by saving a certain amount each year.

This number can vary depending on your unique circumstances, such as income and expenses.

There are a variety of reasons people are pursuing FI – more than likely it is because I hate my job or you want to spend your time doing something else.

The FI Number formula is just a starting point: remember that there are many other variables that could impact your individual savings plans, such as debt load, income, and monthly spending habits.

While using this formula can provide helpful insight into when you might achieve financial independence, it’s important to remember that there is no one-size-fits-all answer.

Every person’s situation is different, so it’s important to tailor your savings plan to your own needs and goals.

Source: moneybliss.org

Apache is functioning normally

May 28, 2023 by Brett Tams

A short while ago I wrote reviews of two services that recently launched, both of which intrigued me. One is a free online savings account called Digit, and the other is a free automated investing adviser called Axos Invest.

Both companies are different from anything else out there.

Digit’s claim to fame is that they will automatically save money for you after analyzing your spending and account balance trends. Once Digit figures out how much it can save without you noticing, or overdrawing your account, it just does it. It saves small amounts to your Digit savings account throughout the month. At the end of the month, you’ve got a nice lump sum saved in your account. (Digit review here)

Axos Invest is gaining traction because of its unique business model as well. They’re a robo-adviser, an automated investment advisory along the lines of Betterment or Wealthfront, but they’re different in that they don’t charge any management fees as most other companies do. They invest your money in ETF index funds with no trading fees and no management fees whatsoever. They plan to make their money off of premium add-on products like tax-loss harvesting in the future. (Axos Invest review here)

I liked the ideas behind these services and signed up for both of them to give them a trial run. While I was at it I decided to turn this into a bit of an experiment. I plan to see just how much money I can automatically save and then invest with them through the end of the year. I thought it would be interesting to show just how much you can automatically save and invest (at no cost), without even thinking about it. Saving and investing doesn’t have to be hard, or expensive!

Digit Savings Account

According to Ethan Bloch, the founder of Digit, the company was started to help people, “maximize their money, while at the same time driving the amount of time and effort it takes to do so as close to 0 minutes per year as possible”

So how does Digit work? You sign up for an account, and link your checking account. Digit will then analyze your income and expenses, find patterns and then find small amounts that it can set aside for you – without any pain for you.

So once you sign up and turn on auto-savings, every 2 or 3 days Digit will transfer some money from your checking to your savings, usually somewhere between $5-$50. Digit won’t overdraft your account, and they have a “no overdraft guarantee that states they’ll pay any overdraft fees if they accidentally overdraft your account.

Open Your Digit Savings Account

Axos Invest Investing Account

Axos Invest launched with the goal of being the world’s first completely free financial advisor. Their founders had a mission “to ensure everyone can achieve their financial goals, which starts with investing as early as possible. This is why there is no minimum to start and we do not charge fees.”

Axos Invest’s founders understood that one of the drags on the typical person’s portfolios is the fees that they’re paying to invest, as well as the friction point of having to invest thousands of dollars to start. They changed that with no minimums to invest, and no fees charged for investing. Axos Invest will be releasing some premium add-on products for their users, which they will charge for, but a basic investing account will not cost anything beyond the mutual fund expense ratios associated with your investments.

What do you invest in with Axos Invest? Axos Invest will invest your funds based on Modern Portfolio Theory (MPT). Your investments will be diversified, low cost, and recognize the value of long term passive investing by investing in ETF index funds.

Open Your Axos Invest Investing Account

The Digit + Axos Invest Experiment (D+AI Experiment)

For the experiment I plan on using the two accounts I have just opened with Digit and Axos Invest in order to show just how easy it is to invest.

From now until the end of the year I plan on allowing Digit to automatically save money from my checking account and put it into my Digit savings.

When the amount in the account gets to around $75 or more, I’ll transfer it back to the checking and transfer the same amount over to my Axos Invest Roth IRA to invest in their automated investing service. I figure by doing it this way, I’ll engage in a bit of dollar-cost averaging, instead of waiting until the balance is higher and investing once or twice. Since Axos Invest has no minimums and you can buy fractional shares, why not?

When the end of the year rolls around I’ll do a review and look at how much money I’ve been able to save and invest using these two sites.

The Experiment In Progress

Once I had setup my Digit and Axos Invest accounts I started putting the experiment into action in early February. I turned on the automated saving feature of the Digit savings account, and waited for the small savings amounts to start showing up. After about 3-4 days, my first few deposits into Digit appeared. There were deposits for $5, $6.50, $8.45, $2.35 all within the first 7 days. I have also referred friends to Digit, and $5 referral bonuses started showing up as well.

Day after day the referrals and savings deposits started piling up and before I knew it, I had $186 in the account. At this point I decided to withdraw and make my first investment over at Axos Invest.

Amounts Withdrawn And Invested So Far

I’m only about a month into my little experiment, and so far I’ve withdrawn my Digit savings balance and invested it in my Axos Invest Roth IRA twice. The amounts were:

$186.00
$74.72

Here’s a screenshot from my Digit account showing my latest withdrawal for the purpose of investing.

After withdrawing the money I then transfer it from my checking account over to Axos Invest. Here’s a screenshot of my latest deposit with Axos Invest.

Once this deposit goes through I’ll have a little less than $260.72 invested at Axos Invest since the market has gone down slightly since I started. You can see the $184.84 total invested for my first $186 deposit below.

Here’s the portfolio’s asset allocation in my Axos Invest account currently. Probably a tad more aggressive than in my other retirement accounts, but that’s OK.

The funds that Axos Invest uses and their expenses are shown below (and are subject to change)

Vanguard Total Stock Market ETF (VTI): 0.05%
Vanguard FTSE Developed Markets ETF (VEA): 0.09%
Vanguard FTSE Emerging Markets ETF (VWO): 0.15%
Vanguard Intmdte Tm Govt Bd ETF (VGIT): 0.12%
Vanguard Short-Term Government Bond Index ETF (VGSH): 0.12%
iShares Investment Grade Corporate Bond ETF (LQD): 0.15%
State Street Global Advisors Barclays Short Term High Yield Bond Index ETF (SJNK): 0.40%
iShares Barclays TIPS Bond Fund (ETF) (TIP): 0.20%
Vanguard REIT Index Fund (VNQ): 0.10%

Depending on how the market does, we’ll see what kind of returns my account sees. No matter how it goes, I’m already ahead of the game as I don’t have to pay any account management or trading fees. Can’t beat that.

Join In The Digit & Axos Invest Experiment

If you’re intrigued by Digit and Axos Invest like I was, and want to join in the “D+WB Experiment”, I invite you to join in.

Open an account with both services (both accounts are free), set Digit to start automatically saving and get started. Let’s see how much we can save and invest this year – without lifting a finger!

Source: biblemoneymatters.com

Apache is functioning normally

May 28, 2023 by Brett Tams

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

If you haven’t taken a cruise lately, you might be surprised by the variety of offerings now available. No longer are cruises the sole province of greasy buffets, cheesy dance contests and screaming kids – some of the newer ships are downright luxurious, offering five star dining created by celebrity chefs and onboard activities to rival the fanciest resort. But don’t take my word for it. Here are some down and dirty tips on how to score a cruise vacation so cheap, you’ll almost feel like you took advantage of the cruise company.

Don’t Book in Advance

No, that’s not a typo. I said don’t book in advance. Unlike the airlines, the best cruise deals are usually available at the very last minute. That’s because also unlike the airlines, most people don’t take last minute cruises. (Last minute business trips or hurried flights to see a sick relative mean airlines can afford to jack up prices for people who need to travel immediately.)

But cruises are vacations. People don’t need to scurry last minute, and in fact, they usually have to plan time off work pretty far in advance. That means cruise ships with unsold capacity a few days prior to sailing need to dump it pronto, because they’re unlikely to get a last-minute rush of passengers.

So when is the ideal time to buy? As close to departure as you can. Cruise lines will usually start lowering prices 4-8 weeks prior to sailing, but it’s during the last week or two that you’ll really see prices plummet by over 50%. The cruise companies offer unsold inventory to their employees a week before the cruise. That means anything that does not sell after that goes on an absolute fire sale. The craziest deals are available 2-7 days before departure. We recently scored a 5-night Western Caribbean cruise for $149 by purchasing 4 days out. The original price was $329.

Long Cruises – and Trans-Atlantics

The best deals are often on longer cruises, because most people can’t afford to take off a week or more at a time. In fact, you’ll sometimes find 7+ night cruises selling for the same (or just a bit more) than shorter ones.

But the most screaming deals are on Trans-Atlantic trips. True, these sailings mean a lot of time at sea, but they can sometimes sell for less than 3-night cruises. We recently booked a 13-night trip from Fort Lauderdale to Barcelona for just $369. An 11 night from Miami to Southampton, England was on sale a few weeks ago for about $400.

Heck, you’d probably spend that much money on food, alone. You’re basically getting the transportation, lodging, and entertainment for free. And how many people get to say they crossed the Atlantic by sea, stopping in unusual ports like the Azores or Tenerife?

Senior, State Resident, Military and Police Discounts

Most cruises will offer hefty discounts for senior citizens, members of the military, police officers and state residents of the port of departure. But the best news is that depending on how and where you book, these discounts often apply to everyone traveling in the same room –even if only one person qualifies for the discount. Since some accommodations can fit up to four travelers, that means big savings for your party.

Choose the Big Ships

When people book cruise vacations, they usually look at the dates and itineraries first. But checking out the ship’s capacity can yield even bigger benefits. First, the ship is likelier to be newer or offer more restaurants and amenities. More importantly, the extra capacity means more rooms to sell – and the potential for cheaper prices. When comparison shopping, start with the bigger ships first. They’re the likeliest to offer lower-priced fares when compared to smaller ships on similar itineraries.

Mileage & Point Conversions

Got any unused airline miles or hotel, credit card or Amtrak points? Most of these can be readily converted into cruise credits. Depending upon the program, you can either convert into a cash-equivalent or a voucher specifically for cruise purchases. On many major airline programs, 10,000 miles are usually the equivalent of a $100 cruise credit.

Share your tips of how you saved on your last vacation or cruise below. Bon voyage!

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

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Source: mint.intuit.com

Here’s how to get rich– for anyone and at any age.

Don’t wait until tomorrow to learn how to get rich.

Be better than average if you want to learn how to get rich.

Give yourself great goals.

Create a realistic budget.

Realize that a good life can be affordable.

Pay off your debt if you want to learn how to get rich.

Start investing as one of the ways to get rich.

Start making more money.

Diversify your income streams to learn how to be rich.

Even the rich find ways to save money.

Stop trying to impress others.

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What is FI number?

Why Choose Financial independence?

How to calculate your FI number?

Option #1 – Using Yearly Spending

Option #2 – Using a Safe Withdrawal Rate of 4%

The Financial Independence Formula

Calculate Your Spending

Find Your FI Number

Determine Years to Financial Independence

How to FI – Create a Plan

Step #1 – Figure out Numbers

Step #2 – Pick a Realistic Date

Step #3 – Take Action to Enjoy Life

How to FI – Saving to Achieve Financial Independence

Step #1: Pay Off Debt

Step #2: Reduce Expenses

Step #3: Boost your income

Step #4: Invest Money

How to FI – Investing to Reach Financial Independence

Step#1: Make Investments Automatic

Step #2: Choose an Index Portfolio

Step #3: Track Your Progress

FI Number Calculator

Saving for Retirement or More Savings to Quit work?

Digit Savings Account

Axos Invest Investing Account

The Digit + Axos Invest Experiment (D+AI Experiment)

The Experiment In Progress

Join In The Digit & Axos Invest Experiment

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