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Apache is functioning normally

May 16, 2023 by Brett Tams

I have a secret…

I have a little secret for you.

Your broker might not have your best interest in mind when they make recommendations to you.

In fact, brokers can legally put their interests ahead of yours.

Did you catch that?

Translated that means that your broker can get a speeding ticket for going 75 mph on the interstate, but won’t get punished for selling you a crap investment that makes them a bunch of money.

This is because most brokers operate under what’s called the suitability standard, which simply means the securities they recommend must be appropriate for you given your financial profile; however, many of the securities that can be considered suitable may be far from the best investment options available at a particular time.

How do you like them apples?

You may be surprised to learn that brokers working under the suitability standard are not legally obligated to find the best prices or the best investment options available at a particular time. As a result, your broker may offer you securities that provide lower returns and carry more significant risks than other alternatives as this may be more profitable for the broker. The suitability standard can apply to brokers that sell insurance, stocks, annuities, or other investment types.

1. Brokers Make Money Even if You Don’t.

This is because of the commissions-based compensation model presently used by many brokerage firms. Let’s say your broker convinces you to buy into XYZ stock at $50 per share. If the price subsequently increases to $60, than your broker may call you and advise you to buy more of the same security because of the 20% appreciation in price. This transaction would then generate a commission for your broker.

On the other hand, let’s say that the same investment in XYZ stock instead dropped to $40 per share. In this case the same broker might call you and still tell you to buy more of the same security because it is now less expensive than it once was and should therefore be considered a bargain. This transaction would also generate a commission for your broker.

Great for them. Not so much for you.

As you can see your broker’s success can have little relation to your own. This represents a misalignment of interests that may cause your broker to benefit at your expense.

2. High commissions are a good thing right?

Brokers may choose to offer you only those investments which pay the highest commissions. To illustrate this point let’s consider another example. Let’s say that investment 1 is the best investment for you, but it offers no commissions to your broker.

On the other hand investment 2 is a worse investment, which pays 5% commission. Under the suitability standard your broker is not obligated to offer you investment 1 and may instead sell you investment 2 in order to collect the commission on the transaction. This conflict of interest is currently permitted under the suitability standard, which is applicable to many brokerage firms.

Isn’t that special?

3. Looks good on paper.

Your broker may sell you an investments that is illiquid or highly risky. This is due to the fact that brokers are often associated with particular issuers of securities or certain investment companies.

As a result they may be limited to offering only the proprietary products sold by their affiliates even though other more attractive investment options may be available in the market. They may also be restricted to particular list of securities and may be compensated to offer one investment over another at any time.

One of the worst examples that I witnessed this was with a portfolio of a friends mom. Her broker had sold her what he called a “safe investment” which was a limited partnership. While some limited partnerships could be considered good investments, this particular one was Medical Capital Holdings.

What’s the big deal about that? Well, this particular limited partnership ended up being a fraud and most investors lost everything that they invested into it. What makes the story even worse, is that this particular broker thought it was “suitable” to put over 1/3 of her portfolio into it.

4. Their commissions can eat away your returns.

If you’re paying commissions on a per-trade basis, you may be spending more than you might expect.

For example, if you’re charged 2% per trade, then making just three trades per year could result in you paying 6% of your overall portfolio in commissions annually.

5. Alphabet jumbo soup.

Brokers may be using deceptive titles to give you the wrong impression about their compensation model and qualifications. Currently, the shear abundance of professional designations being used within the financial services industry is confusing even to the most experienced investors. However, understanding the differences between these titles could have a dramatic effect on your long-term investment results and overall satisfaction.

As an example, the term financial advisor is one of the most used terms in the industry; however, many of the individuals using this title are sales people looking to meet quotas by selling financial products. They may in some cases sell non-marketable securities, which include long-term commitments, excessive fees, and a high level of risk.

Titles with the word “senior” — Certified Senior Advisor (CSA) and Certified Senior Consultant (CSC), for instance — have come under a great deal of scrutiny. I get offers in the mail all the time to buy designations. Don’t let the alphabet soup impress you. The only one that should in the financial planning profession is the CFP® designation. Other notables are the CFA and CPA designation.

6. I have a sales quota.

I love when I get a statement from a competitor that is sponsored by a mutual fund or insurance company. The broker claims to them that they have their clients best interest at heart and can utilize all types of investment choices, except that they only investments I see are from that companies proprietary products.

Hmmm……now whose best interest is first? I assure you not the client.

7. My records clean….kind of

Your broker is not obligated to tell you if there’s anything on his or her record. And why they should they? It’s reported that 70% of prospective clients do not do a background check on the broker before hiring them.

Want to make sure that your broker doesn’t have a record like Bernie Madoff? Head over to FINRA BrokerCheck to see what’s on your brokers record.

8. It could be better somewhere else.

With a broker you’re dealing with a sales person who may or may not have your best interest in mind. On the other hand, registered investment advisors, also known as RIAs are firms which operate under the fiduciary standard, which means that they are legally obligated to put their client’s interests first at all times.

As an independent registered investment advisor, Alliance Wealth Management, LLC was founded as a welcome alternative to the traditional brokerage model so many investors have become accustom to. We are compensated only by management fees paid directly by our clients.

How do you pay you broker? If you don’t know, maybe it’s time to find out.

Source: goodfinancialcents.com

Apache is functioning normally

May 16, 2023 by Brett Tams

If your family was responsible for all of your bills, it could be a mountain of debt and would they have any way of paying off any of those expenses? This is how viewing life insurance as an investment makes it vital that you have some financial protection in case you were to pass away.

Life Insurance with Autism

Do you or a loved one suffer from autism or Asperger’s? Qualifying for life insurance is not impossible. We’ve helped several people get an effective policy before and we’re confident we can do it again.

The insurance company won’t just look at your condition and automatically shove it aside with a decline stamped on it. They know that normally you’re an insurable candidate, but once you apply you’ll have to give them more information about your diagnosis and any other issues that you might also have. The good thing is we’ve compiled some information below and we hope you find it helpful as you go through the process of securing your finances for the future.

Life Insurance Underwriting for Autism/Asperger’s

When you apply for life insurance with autism or Asperger’s, the insurance agent will need to ask several questions about the condition. Applicants need to answer:

Where do you fall on that autism spectrum?
Are there any intellectual or psychiatric limitations that you deal with?
Do you suffer from any muscular ailments?
How does the applicant get by doing daily activities?
Does the applicant have any other major health problems?
What medications is the applicant currently taking?

While there are no medications that apply directly for autism/Asperger’s, applicants may be taking medications for other mental conditions like antidepressants, anxiety medications, and antipsychotic drugs. These medications could be insurable depending on an applicant’s situation.

Insurance companies ask many questions about these conditions because they need lots of information to make a decision. Be sure to provide all this information as insurance companies are more likely to reject an application that looks incomplete.

Life Insurance Quotes with Autism/Asperger’s

Life insurance companies rate applicants with autism or Asperger’s on a few different factors. First, they consider whether an applicant just has autism/Asperger’s or if they have other more serious issues like Rett syndrome or other physical/mental impairments.

Beyond considering these factors, insurance companies will also review an applicant’s overall health to make a decision. I’ve put together a guideline on how an underwriter might end up rating you.

Preferred Plus: With problems in the future likely to arise chances are slim for this category.
Preferred: Another situation where the risk is simply too high for the insurance company to rate you in this section.
Standard: If you are otherwise healthy, and functioning on the top level this is the best rating you can hope to receive.
Table Rating (substandard): Most applicants in the spectrum will be rated here. This isn’t a bad thing, but be aware when looking for quotes that give you a preferred or standard rating that you’re price will end up being higher.
Declines: Do you have Rett syndrome or childhood disintegrative disorder? Then that will be a decline for most if not all carriers. And if you also suffer from muscular or cognitive impairments then you will also most likely have difficulty getting an application approved.

Autism/Asperger’s Insurance Case Studies

Here are two examples of how to navigate the stress of filling out a life insurance application.

Case Study: 23 year old female was diagnosed at the age of 8, parents tried purchasing life insurance for her right away and she was denied, no other physical or mental problems

When this applicant was diagnosed with autism at eight, her parents thought it would be a good idea to buy her life insurance right away before anything else happened. When her application was denied, her parents believed she wouldn’t have a policy approved. After reading our site, they understood her chances right after diagnosis weren’t as good if they would’ve waited for her condition to stable. By trying again this time, the applicant received a Standard rating as her autism hadn’t developed into any other problems.

Case Study #2: Male, 25, had Asperger’s since 10, suffered from depression at 20, starting taking antidepressants at 22 and recovered.

This applicant had Asperger’s since he was 10 and was also diagnosed with depression at 20 partially due to his mental condition. After taking antidepressants for a year, this applicant recovered from his depression and was in better overall health. His rating though was substandard when he first applied. His past history of depression and were worried that this was too much on top of his Asperger’s. We recommended he see his therapist and get a note vouching that due to medication and therapy, this client had his depression under control. With this new information, the applicant applied and received a better rating than before.

If you are looking for life insurance for someone with autism or Asperger’s, it might be a good idea to get some professional help with your application. Agents have the knowledge to let you know when an application should be submitted and which carrier views your condition more favorably.

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Affordable Life Insurance with Autism or Aspergers

Click here for information and free insurance quotes, or complete the form to the right side of the page. Each carrier has different algorithms that help them with their risk classes and who gets put in each one. To find the plan that best fits your budget you’ll need to receive many quotes before picking the one that works best for you.

Unlike traditional life insurance agents, we are independent agents, and we can represent as many insurers as we want! With tons of life insurance companies in America, we can narrow down the ones that fit your goals best all while saving you valuable time and saving you hard-earned money.

Let us help you get approved for a plan that works with an applicant who has autism or Asperger’s. Even if you’ve been declined in the past, we can help you get affordable life insurance protection through a no medical exam life insurance plan.

These no medical exam plans mean you can have financial protection and you don’t have to answer medical questions or go through an exam. Everyone deserves to have the insurance protection that their family needs and your health shouldn’t stop you.

Source: goodfinancialcents.com

Apache is functioning normally

May 16, 2023 by Brett Tams

How to find the best mortgage rate in New Jersey for you

When shopping for a mortgage, compare at least three loan offers — research shows this exercise can save you thousands of dollars over the life of a loan.

Bankrate can help you find the best mortgage deal. Here are some basic steps to securing a loan with favorable terms:

Step 1: Strengthen your credit score

Long before you start looking for a mortgage lender or applying for a loan, give your finances a checkup, and improve your standing if needed. This means pulling your credit score and credit reports. You’re entitled to a free credit report from each of the three main reporting bureaus (Experian, Equifax and TransUnion), which you can get through AnnualCreditReport.com.

Step 2: Determine your budget

To find the right mortgage, you’ll need a good handle on how much house you can afford. That’s because a lender could qualify you for more mortgage than you need, or one that would max out your budget and leave no room for unexpected expenses.

Step 3: Know your mortgage options

There are a few different types of mortgages. Many lenders offer conventional loans that require as little as 3 percent down. FHA loans also have a low down payment threshold, while VA loans (for veterans) and USDA loans (for borrowers in rural areas) have no down payment requirement. If you’re in the market for a jumbo loan, check New Jersey’s county-by-county loan limits.

Step 4: Compare rates and terms from several lenders

Don’t settle on the first lender you talk to — rate-shop with at least three different banks or mortgage companies. You can look to your bank or other banks, credit unions, online lenders and local independents to ensure you’re getting the best deal on rates, fees and terms.

Step 5: Get preapproved for a mortgage

As you comparison-shop, keep in mind that getting a mortgage preapproval is the only way to get accurate loan pricing for your specific situation.

Source: thesimpledollar.com

Apache is functioning normally

May 15, 2023 by Brett Tams

More than 93% of Americans receive their paychecks via direct deposit, meaning the funds are seamlessly transferred straight into their bank account. But did you know that some states allow employers to require that their workers use this payment method? Given that it can be time-consuming and costly for a business to issue paper checks, it can definitely be an advantage to companies.

Here, you will learn about which states require direct deposit and why, as well as learn more about this convenient payment method in general.

Direct Deposits are Electronic Payments

First, let’s quickly define what a direct deposit is. A direct deposit occurs when money is moved from one bank account to another without the use of a physical check. For example, an employer might shift money from its bank account to an employee’s bank account on payday.

Banks use the Automated Clearing House (ACH) network to coordinate electronic payments and other automated money transfers between financial institutions.

When you receive a direct deposit, money goes directly into your bank account, without the need for any intermediary steps, such as accepting the transfer, as you would if you were to deposit a check.

The money is cleared automatically through the ACH and is available immediately. With paper checks, banks might put a temporary hold on the funds while they wait for the check to clear. It can sometimes take some time for a check to clear; several days even.

Because it does away with a lot of cumbersome paperwork, direct deposit has become more and more popular. Direct deposit is not only used to transfer paychecks from employer to employees, but also for things like tax refunds and payments from retirement accounts.

Some government agencies have done away with direct deposit entirely. The Social Security Administration, for example, no longer cuts paper checks, and requires people to accept their benefits via direct deposit or a reloadable debit card.

Which States Allow Required Direct Deposit?

Depending on state law, employers may be allowed to require that employees accept paychecks through direct deposit. State law is not always cut and dried, however.

The rules may depend on whether an employee works in the public sector or for a private company. And rules may not apply to all employers equally.

Here’s a look at the states that allow some form of mandatory direct deposit.

State	Mandatory Direct Deposit Allowed?	Which Employers Does This Rule Apply To?
Alabama	Yes for private sector, no for public sector	All employers
Arizona	Yes	All employers
Indiana	Yes	All employers
Iowa	Yes, for employees hired after July 1, 2005. Employers may not require direct deposit if the cost to employees of setting up and maintaining a bank account effectively reduces their wages to below minimum wage.	All employers
Kentucky	Yes	All employers	Louisiana	Yes	Public sector, state government	Maine	Yes	All employers	Massachusetts	Yes	All employers	Michigan	Yes	All employers	Minnesota	No for private sector employees, but the commissioner of labor and industry may require direct deposit for public sector employees.	All employers subject to state statutes	North Carolina	Yes	All employers	North Dakota	Yes	All employers	South Dakota	Yes	All employers	Tennessee	Yes	Private employers with at least five employees	Texas	Yes	Private employers, except those involved in agriculture or horticulture, household domestic service, or other employment in which there is a written agreement that provides different terms.
Utah	Yes	Private employers except for those involved in farm, dairy, agricultural, viticulturally, or horticultural pursuits; stock or poultry raising; household domestic service; or other employment in which a written agreement provides different terms.
Washington	Yes	All employers	West Virginia	Yes for state higher education institutions. No for employers subject to the state Wage Payment and Collection Act.		Wisconsin	Yes	All employers

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Advantages of Direct Deposit

Whether or not direct deposit is required, there can be some distinct upsides for employers and employees.

Convenience

Direct deposit takes a lot of the legwork out of receiving a paycheck. The funds are deposited automatically and regularly, requiring no trips to the bank or mobile deposits. You don’t need to be home to receive the check. So if you’re on vacation or working far from your regular stomping grounds, your check will go through without lifting a finger.

You may also be able to send some of your paycheck to a savings account, which is a way to automate your savings.

Organization

Keeping track of paper checks can be a pain for employers and employees, who may end up having to file away hard copies of records, such as pay stubs, for future reference. Electronic transfers provide a paperless transaction history that both parties have access to. The transaction history doesn’t need to be stored in a physical place, so it can be referenced from anywhere at any time.

Resource Saving

Sending money via the ACH is often cheaper for employers than printing and mailing paper checks. Generally, it is free for employees to receive payment through the ACH. It’s also greener, allowing businesses to cut back on the amount of paper, ink, and energy that they consume.

Security

It is possible for paper checks to be lost or stolen, and even for someone to fraudulently cash them. Issuers may charge a fee to replace lost checks, and the process of stopping payment on stolen checks may be slow and expensive.

Generally speaking, direct deposit provides a safer alternative for transferring cash since there is no physical item to be lost or stolen.

There are some potential security issues when setting up direct deposit, as banking information must be exchanged between employees and employers. Making sure that the information is passed through secure channels to a person you can trust can help ensure that direct deposit is set up securely.

Speed

How long does a direct deposit take? The swiftness of direct deposit transactions is one of the key benefits. Money often hits your account nearly immediately after a transaction is made. And transactions usually occur at midnight the night before payday, meaning direct deposits may arrive in an employee’s account long before a paper check would arrive in the mail.

Disadvantages of Direct Deposit

Despite the benefits of direct deposit, there are some reasons that the process can be disadvantageous.

Costs and Fees

In some cases the cost of opening and maintaining a bank account can be burdensome for employees, reducing the amount of their take-home pay. Iowa protects against this possibility by disallowing mandatory direct deposit if it becomes a financial burden.

Lack of Attention

Because direct deposit is automatic, you may forget to check deposits in your bank account regularly. That means that if any problems occur, they may go on for a long time before you catch them.

You can avoid this issue by setting up alerts with your bank every time you receive a deposit to quickly see if everything is correct, and if not, nip any problems in the bud.

Cyber Threats

Though direct deposit provides a relatively secure way to transfer money, that doesn’t mean it’s immune to cyber criminals looking to steal sensitive financial information and bank fraud. Protections against cyber threats include using complicated passwords and password protection and avoiding phishing scams that might give fraudsters access to emails and data.

Setting Up Direct Deposit

To set up direct deposit, you must first have a checking or savings account. To receive electronic payments, you must provide your bank account information to your employer.

There may be a specific form that you are asked to fill out, you may be asked to provide a voided check, or you may simply be asked to provide your account information in an email.

Once again, always be sure you are sending your information to someone you trust and through a secure channel. You may want to avoid sending sensitive information, like account numbers, through email, instead handing information directly to a person or providing it over the phone.

Typically you’ll need to let your employer know whether your deposits will be going into a savings or checking account.

Your employer may ask you for other information, such as the name of the account holders on your checking or savings account, your mailing address, and your Social Security number.

Employees can list multiple accounts for direct deposit, which can help them accomplish their financial goals. For example, a worker could direct a portion of the paycheck to a checking account and another to a savings account. That way savings are automated while ensuring that enough is in checking to cover bills.

The Takeaway

Speaking of divvying up earnings to meet specific needs, SoFi Checking and Savings is a good candidate for that — plus much more. It’s a bank account online that offers Vaults for particular goals as well as Roundups to help grow your money. What’s more, you will earn a competitive annual percentage yield (APY) and pay no account fees.

SoFi Checking and Savings: The smart, simple way to manage your money.

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2023 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.

The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

SoFi members with direct deposit can earn up to 4.20% annual percentage yield (APY) interest on Savings account balances (including Vaults) and up to 1.20% APY on Checking account balances. There is no minimum direct deposit amount required to qualify for these rates. Members without direct deposit will earn 1.20% APY on all account balances in Checking and Savings (including Vaults). Interest rates are variable and subject to change at any time. These rates are current as of 4/25/2023. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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Source: sofi.com

Apache is functioning normally

May 15, 2023 by Brett Tams

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Technology is changing many aspects of our world — including change. When I was young, I remember the thrill of cash and the spare change it generated when I spent it. I would scour my change looking for rare coins and deposit the ordinary ones into my trusty piggy bank.

Today that thrill is gone, along with the simplicity a piggy bank or coin jar brought to saving money. Whether you were working on building an emergency fund or simply wanted to save money for a rainy day, change was always there to give you a head start. Today we swipe a piece of plastic or pay for everything online with no paper bills or coins changing hands.

Thankfully, a new type of technology is filling the void electronic transactions have created. Savings apps that automatically round your purchases to the nearest dollar are bringing back the simplicity that spare change brought to saving.

The Best Round-Up Savings Apps

The apps on our best money-saving apps list all do one or two things very well, if not more. For example, some use psychological triggers to help you save wisely while others focus on helping you teach your children how to set and manage long-term financial goals. And while most aren’t officially banks, most have FDIC-insured checking accounts built in, protecting your money from the unknown.

Acorns

Our Rating

Acorns is a comprehensive personal finance app with a built-in checking account, automated budgeting and savings tools, and multiple investment accounts for all stages of life.

Monthly Fee

Deposit Insurance

Up to $250,000

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Acorns is built around the idea that you can build your finances to be as sturdy as an oak tree with a start as small as an acorn.

Though Acorns is much more than a round-up app, its simple round-up feature is key to its value. Just connect your credit cards and debit cards to your account and it will automatically round your purchases up to the nearest dollar and deposit the change for you. Once you have at least $5 in round-ups ready to process, Acorns transfers the money from your checking account to your investment account.

Acorns offers four different types of financial accounts: a general (taxable) investment account, a custodial account for children, a retirement investment account (IRA), and a checking account. It has two paid plans, with monthly membership fees starting at $3.

Acorns offers mobile apps for Android and iOS devices. They have all the features and capabilities of the desktop version.

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Chime

Our Rating

Chime is a personal finance app that helps you manage your money, save for the future, and build credit. It has one of the best savings yields of any FDIC-insured round-up app.

Monthly Fee

Deposit Insurance

Up to $250,000

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Chime is a mobile-first personal finance and online banking app. You don’t have to use it as a round-up savings app, but it’s easy enough to do so — just opt in to have your Chime Visa debit card purchases rounded up to the nearest dollar and transferred to your Chime savings account.

And that savings account is among the best on this list. Your cash earns 2.00% APY¹, far higher than what most other round-up apps can manage.

¹The Annual Percentage Yield (“APY”) for the Chime Savings Account is variable and may change at any time. The disclosed APY is accurate as of May 12, 2023. No minimum balance required. Must have $0.01 in savings to earn interest.

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Qapital is a goal-based savings app that makes it easy and fun to save automatically. Its biggest downside: an unavoidable monthly fee of at least $3.

Round-up savings is actually just one way Qapital does this — it’s one of several custom rules (in this case, the “Round-Up Rule”) you can set to put your extra cash to work. Other rules include the Set & Forget Rule (which puts aside a set amount every week or month) and the Freelancer Rule (which saves a set amount from each deposit to cover estimated taxes).

Qapital also has an FDIC-insured checking account and debit card for everyday spending. Balances earn interest at a low rate, but it’s better than nothing.

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Worthy Bonds

Our Rating

Worthy Bonds is a crowdfunding platform, not a banking app. But it does allow round-up investments from a linked bank account, starting at just $10. With all bonds paying 5.65% APY, it’s the highest-yielding option on this list.

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Worthy Bonds is not a traditional round-up savings app, if there even is such a thing. It’s a crowdfunding platform that sells shares (also called Worthy Bonds) in loans made to small businesses and development projects across America.

All Worthy Bonds yield 5.65% APY. If you want, you can link an external bank account to your Worthy Bonds account and round up each purchase to the nearest dollar. Once your balance hits $10 — the value of a Worthy Bond — Worthy Bonds buys you a new bond.

Worthy Bonds is a fun and rewarding way to support everyday entrepreneurs, but there’s a catch: no FDIC insurance. So don’t invest more than you can afford to lose.

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Greenlight

Our Rating

Greenlight is a family finance app that helps kids (and parents) manage and grow their money. With high-yield savings, an investment platform, and even a credit card for parents, it’s the most comprehensive app on this list.

Monthly Fee

$4.99 and up

Up to 5.00% APY

Deposit Insurance

Up to $250,000

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Greenlight is an online custodial bank account that’s designed to help parents teach their children about money. A Greenlight account comes with a customized debit card and advanced ways to save and earn, including round-ups. Every time your children swipe their customized debit cards, the total value of the purchase is rounded to the nearest dollar and the spare change is transferred to their savings account.

That spare change has the potential to earn much more change. Depending on the type of account you open, your children can earn between 1% and 5.00% APY interest on their savings.

Apply NowRead the Review

Methodology: How We Select the Best Round-Up Apps

We used six metrics when comparing the micro-saving and micro-investing apps that offer round-up saving functionality. These metrics relate to the cost of the service, allocation of money saved through round-ups, the types of accounts they offer, and other functionality. Here’s what we paid the most attention to in our analysis.

Cost

Round-up apps are all about saving money, so it’s pointless to use them if the fees eat all your savings. To be fair, most apps with this functionality charge reasonable fees, but we did come across a few with fees that were a huge turnoff.

All apps on our list cost under $10 per month, even for the most premium memberships. Two options — Chime and Worthy Bonds — are 100% free to use with no monthly or hidden fees.

How Round-Ups Are Used

It’s important that the money you save grows over time. After all, inflation is a very real force in finance — if your money isn’t growing, it’s shrinking. All the options on our list offer ways to grow the money you set aside, whether through investing in the stock market or earning a meaningful interest rate on your savings balance.

Custodial Accounts

Financial education is valuable at any age, and the sooner you start teaching your kids concepts like savings, the better off they’ll be.

That’s why options like Greenlight are on our list. Custodial accounts and giving kids access to financial information are a great way to teach your children about money management.

Risk Management

Many of the best round-up apps focus on micro-investing — investing small amounts of money over time — to begin building a meaningful portfolio. But investing can be risky. We paid close attention to the risk management features each investing-focused round-up app offers. Every investment-focused app on this list offers highly diversified stock and bond ETFs to help keep risks at bay.

Savings Triggers

Round-ups are a great way to start your savings, but if you’re only saving your spare change, it will take forever to generate a meaningful safety net. All options on this list offer round-ups as well as at least one other savings trigger, like the ability to automatically transfer money to savings on a weekly, biweekly, or monthly basis.

Some apps offer other, more elaborate savings triggers.

For example, Qapital offers several triggers. You can set a spending budget, and when you spend less, the difference automatically goes into your savings.

Additional Banking Features

According to the FDIC, about 5.4% of Americans — more than 7 million people — don’t have bank accounts. That’s why we love to see companies like Chime make quality banking services available to everyone. Many of the companies that made our list offer accessible online banking services.

Round-Up App FAQs (Frequently Asked Questions)

If you’ve never used a round-up app, chances are you have a few questions you need answers to before you get started. Answers to some of the most common are below.

Do Round-Up Savings Work?

Round-up savings apps are a great way to kick start your savings, but their effectiveness largely depends on you. If you don’t spend frequently, round-up savings won’t generate meaningful balances. It’s best to use this feature as a small part of your work toward your overall goal of saving money.

If you want to aggressively save money, consider using round-ups in conjunction with other features, like scheduled savings contributions.

Which Is Better: Acorns or Stash?

That depends on how you’d like to invest your savings. If you’re interested in building and managing your own investment portfolio of individual stocks and ETFs, Stash is the way to go. If you’d rather let the pros handle the investment decisions and rebalancing efforts, Acorns is your best bet.

What Is the Best Round-Up App for Kids?

The hands-down best round-up app for kids is Greenlight. The platform was designed to give children some financial independence while giving parents a fun way to teach financial literacy. However, if you want a family experience on a platform where your and your children’s accounts can be viewed in the same place, you may want to consider Acorns.

Final Word

The options listed above are our favorite automatic savings apps, but by now you know they’re not all the same. Each app has its own features, costs, pros, and cons. Here are a few features you should compare before you decide which one to sign up for:

Cost. Some round-up apps are free and others have monthly fees. Consider the cost and how it might impact your savings before you sign up.
Banking Features. Are you one of the millions of Americans who are underserved by traditional banks? If so, consider signing up for an option like Chime that offers complete online bank accounts.
Investing or Saving. Do you want to grow your money in the stock market or a savings account? Have you considered investing in high-yield savings products like those offered at Worthy Bonds? Make sure you consider where your money’s going when you round up before you sign up with a provider.
Do You Have Children? If you have children, consider signing up for an app that offers custodial accounts, or signing up for Greenlight for your children and using a different app for yourself.

STASH DISCLOSURES

Paid non-client endorsement. See Apple App Store and Google Play reviews. View important disclosures.

Nothing in this material should be construed as an offer, recommendation, or solicitation to buy or sell any security. All investments are subject to risk and may lose value.

¹ Stash Banking services provided by Stride Bank, N.A., Member FDIC. The Stash Stock-Back® Debit Mastercard® is issued by Stride Bank pursuant to license from Mastercard International. Mastercard and the circles design are registered trademarks of Mastercard International Incorporated. Any earned stock rewards will be held in your Stash Invest account. Investment products and services provided by Stash Investments LLC and are Not FDIC Insured, Not Bank Guaranteed, and May Lose Value.

² All rewards earned through use of the Stash Stock-Back® Debit Mastercard® will be fulfilled by Stash Investments LLC and are subject to Terms and Conditions. You will bear the standard fees and expenses reflected in the pricing of the investments that you earn, plus fees for various ancillary services charged by Stash. In order to earn stock in the program, the Stash Stock-Back® Debit Mastercard must be used to make a qualifying purchase. Stock rewards that are paid to participating customers via the Stash Stock Back program, are Not FDIC Insured, Not Bank Guaranteed, and May Lose Value.

3 Group life insurance coverage provided through Avibra, Inc. Stash is a paid partner of Avibra. Only individuals who opened Stash accounts after 11/6/20, aged 18-54 and who are residents of one of the 50 U.S. states or DC are eligible for group life insurance coverage, subject to availability. Individuals with certain pre-existing medical conditions may not be eligible for the full coverage above, but may instead receive less coverage. All insurance products are subject to state availability, issue limitations and contractual terms and conditions, any of which may change at any time and without notice. Please see Terms and Conditions for full details. Stash may receive compensation from business partners in connection with certain promotions in which Stash refers clients to such partners for the purchase of non-investment consumer products or services. Clients are, however, not required to purchase the products and services Stash promotes.

Stash has full authority to manage a “Smart Portfolio,” a discretionary managed account. Diversification and asset allocation do not guarantee a profit, nor do they eliminate the risk of loss of principal. Stash does not guarantee any level of performance or that any client will avoid losses in their account.

Joshua Rodriguez has worked in the finance and investing industry for more than a decade. In 2012, he decided he was ready to break free from the 9 to 5 rat race. By 2013, he became his own boss and hasn’t looked back since. Today, Joshua enjoys sharing his experience and expertise with up and comers to help enrich the financial lives of the masses rather than fuel the ongoing economic divide. When he’s not writing, helping up and comers in the freelance industry, and making his own investments and wise financial decisions, Joshua enjoys spending time with his wife, son, daughter, and eight large breed dogs. See what Joshua is up to by following his Twitter or contact him through his website, CNA Finance.

Source: moneycrashers.com

Apache is functioning normally

May 15, 2023 by Brett Tams

Flagstar Bank, a top-25 U.S. mortgage lender, recently participated in two M&A deals.

In December 2022, the bank concluded the merger with New York Community Bancorp after waiting for regulatory approvals for over a year. In March 2023, Flagstar surprised the market amid the banking crisis by acquiring some assets, liabilities and deposits of Signature Bank from the Federal Deposit Insurance Corporation (FDIC).

So what do these transactions add to Flagstar?

Lee Smith, senior executive vice president and president of mortgage, said the Flagstar-NYCB transaction created a “bigger bank with scale, very little business overlap, and a more diversified business model.”

Meanwhile, Signature brought in high-net-worth customers and took the loan-to-deposit ratio to less than 90%, strengthening the bank’s balance sheet.

Smith, who thinks the banking crisis is much calmer now, said Flagstar’s current priority is integrating NYCB and Signature and looking for synergies when bringing systems together, including through real estate consolidation.

“There’ll be cost synergies, but you wouldn’t just think about them in terms of layoffs,” Smith said.

Regarding the mortgage business, Smith anticipates that the market will recover in 2023, with rates at the 5% level. But, according to the executive, Flagstar has built a diversified mortgage business to win in the market whether rates increase or decrease. This includes, among other businesses, origination, servicing, subservicing and warehouse lending.

“We are what we call a one-stop shop mortgage model,” he said.

In light of the recent M&A deals, Smith spoke to HousingWire from his office in Troy, Michigan, to explain the company’s business model.

This interview has been condensed and lightly edited for clarity.

Flávia Furlan Nunes: What was the rationale behind the merger with New York Community Bank?

Lee Smith: That is a transaction we announced in April of 2021, and we closed it on December 1, 2022. That’s something that had been in the works for 20. months. If you look at any bank M&A deal, that’s a typical time.

The beauty of bringing those two organizations together is it created a $90.1 billion bank at the year-end 2022. At Flagstar, we have a heavy mortgage business, a community bank, bank branches, commercial lending, including warehouse lending, and homebuilder finance.

NYCB was very concentrated in multifamily lending, particularly in the New York area. By bringing those two organizations together, you created a bigger bank with scale, very little business overlap, and you had a more diversified business model.

Together, NYCB and Flagstar have 435 bank branches. We’ve got a very diversified branch footprint. NYCB and Flagstar have known each other for a long time. It was a natural conversation. It was an opportunity to grow.

Nunes: Why did Flagstar acquire some Signature assets, liabilities and deposits when you were still integrating with NYBC?

Smith: More recently, we saw the banking crisis hit in March. Three banks – and a fourth with First Republic – were affected by that, Silvergate, Silicon Valley Bank, and Signature Bank. We knew Signature Bank well because they’re a New York bank. We are operating in the same market, same customers, sometimes competing against each other as just friendly competitors, sometimes working together.

Unfortunately, they were seized by the FDIC on the Sunday after Silicon Valley. When it seizes a bank, the FDIC runs a process to sell the assets and liabilities as quickly as possible. So, they hired bankers.

We were able to, given our knowledge of the bank, get involved in the process and submit a bid. We ended up buying $38 billion of assets, which included $25 billion of cash and $13 billion of loans. And we assumed $34 billion of deposits.

Nunes: What are the economics behind the transaction, considering Signature’s loans and assets acquired by Flagstar?

Smith: The signature business – again – has not much overlap. We didn’t take their multifamily loans because we already have a multifamily business at NYCB. We obviously didn’t take the crypto business loans and we didn’t take the venture loans.

But we took pretty much most of the other businesses. These businesses complement what we have because they’re dealing with high-net-worth customers. There are different industries that they’re focused on. They had a wealth business that we don’t have; they had a broker-dealer.

The economics are different when it’s a sale out of receivership. Of course, it’s happening quickly versus a normal process, which takes months. And the transaction transformed our funding mix and the liability side of the balance sheet. It took our loan-to-deposit ratio to less than 90%. And we were over 100% prior to the transaction. So, it really transformed our balance sheet.

Nunes: Why is Flagstar acquiring Signature and not NYCB?

Smith: It’s all going to be brand Flagstar. NYCB operated under a number of names because they’ve been acquisitive historically. And Tom [Thomas Cangemi, NYCB president and CEO] realized we’ve got to come together and have one name. Flagstar is already known nationally, just given our mortgage servicing businesses and certain other lending businesses. And it just made sense to make everything Flagstar.

So, we’re now a $124 billion bank. And we’ve got certain businesses that can be successful in a rising rate environment and businesses that will be successful in a declining rate environment. So, we’re balanced.

Nunes: How has been the integration of all these businesses? Will you have layoffs resulting from these integrations?

Smith: We’re working through that. We’ve talked publicly that the systems integration for Flagstar and NYCB will be completed in Q1 2024. Remember, with Signature, we’ve acquired loans and deposits. It’s a little different than the merger of NYCB because it isn’t like a full integration. It’s more about lifting loans and deposits and putting them into our systems. It’s easier, in theory.

The focus right now is on completing the integration. The cost synergies can come in a number of ways, including real estate consolidation as we bring systems together and move to one system. There’ll be cost synergies, but you wouldn’t just think about them in terms of layoffs. There are lots of ways you can realize cost benefits from bringing organizations together.

Nunes: What do you expect of the banking crisis? Would Flagstar acquire another bank?

Smith: Things are much calmer. The reason for that – and, again, this is my opinion – is, if you look at the banks that were seized, so Silicon Valley, Signature, and First Republic, it was more idiosyncratic; they had concentrations in certain areas. With the transaction done with First Republic and JPMorgan, I think we should be in much calmer waters now. We certainly want to digest what we’ve got. That’s our immediate goal right now.

Nunes: How is the landscape for mortgages? What do you expect for 2023 and 2024?

Smith: If you go back to 2020 and 2021, the mortgage market was in excess of $4 trillion in size. It was $2.4 trillion last year. If you look at the latest forecast – MBA, Fannie Mae and Freddie Mac – it’s on average $1.7 trillion this year. The Fed has raised rates quickly. When the market was $4 trillion, you could get a 30-year mortgage for 3%. Now you’re looking at 6.5%.

That’s a big change in a short time. It undoubtedly put a lot of pressure on the mortgage market. That’s why you’ve seen this big reduction in the market size. You’ve reported on it, and it’s public, we’ve certainly had headcount reductions. We’ve reduced the size of our mortgage origination business because we’re focused on profitability. We’re not about having a big market share if you’re not profitable.

It might not be the second half of 2023, but I think in 2024, you’re going to start to see rates come down, and you’ll start to see the 30-year fixed rate, instead of being 6.5%, we’re going to see in the 5%, and then that’s going to generate more activity.

Nunes: How is Flagstar getting ready for when the market turns?

Smith: From an origination point of view, we’ve diversified. We originate in six channels. Four are TPO channels—delegated correspondent, non-delegated correspondent, broker and bulk. Two are retail channels—distributed retail and direct to consumer. Because we’re a bank, we have a balance sheet and can issue our own RMBS [residential mortgage-backed securities].

As we originate loans, we’re creating mortgage servicing rights, and we like that asset. If you look at our balance sheet at the end of Q1, we have just over a billion dollars of MSRs. The MSR asset is a hedge against the origination business.

But then, here’s where it gets interesting for us. We’re also a big subservicer, with 1.5 million loans and almost half a trillion dollars of mortgages. That generates income. In a rising rate environment, there are fewer payoffs, so the loan count increases. And the other thing that that business does is creates escrow deposits that fund our balance sheet because we’re a bank.

And then that brings me to the next part of the flywheel: We’re the second largest warehouse lender in the country. And then we pick up as part of the Signature deal this treasury and cash management team that’s very focused on mortgage companies in terms of bringing in deposits and offering treasury and cash management services.

I tell you all that because, from a mortgage point of view, we’re hedged. We are what we call a one-stop shop mortgage model.

Source: housingwire.com

Apache is functioning normally

May 15, 2023 by Brett Tams

Earlier today I provided a statistical snapshot of minimum wage earners. The numbers indicate that in the United States:

Most minimum wage earners are young.
Most minimum wage earners work in food service.
Most minimum wage earners have never attended college.

Statistics are one thing, but real-life is another. There are still millions of older college-educated Americans who earn minimum wage in jobs outside the food service industry. Many of these people want to escape their situation, but don’t know how.

More than pinching pennies
Over the weekend, Trent at The Simple Dollar shared ten steps to financial success for a minimum wage earner. His advice is excellent, but emphasizes frugality and cutting costs. I want to look at another approach to escaping minimum wage — earning more money.

Here’s what one minimum wage earner once wrote at Get Rich Slowly:

There are definitely [minimum wage earners] who casually spend beyond their means without regard to or serious consideration of consequences. There are also those who are living frugally yet are squeezed financially, perhaps by high rents and utilities (the homeownership rate of the working poor is close to zero), falling real wages, or health and medical expenses…I make minimum wage and have student loan debt. I can’t think of any spending I can cut out without feeling deprived.

The fundamental law of money still applies to those who make minimum wage: to gain wealth, you must spend less than you earn. But it’s more difficult for a person making minimum wage to spend less than she earns. Even after cutting luxuries — cable television, eating out, etc. — there are certain minimum costs associated with living in our culture. If you’re in a situation where you’ve reduced expenses as far as they will go, it’s time to focus on the other component of the wealth equation: increasing your income.

Breaking free from minimum wage
A minimum wage job can seem like a prison — you can’t imagine you’ll ever break free. You can’t imagine you’ll ever earn more money. However, opportunities do exist. Here are several approaches to escaping the shackles of a low-wage job:

Work two jobs. If debt or living expenses are keeping you down, take a second job. This may not help you escape from minimum wage in the short-term, but it will alleviate some of the financial pressure you’re facing, which will eventually allow you to focus on long-terms solutions.
Seek a promotion. Find a way to advance in your current job. What would it take for you to move into some sort of management position? What about moving to another department where the pay is better? Be the sort of employee that managers can’t live without: show up on time, be efficient, do quality work. Watch for advancement opportunities with your current employer.
Change companies. If there’s no path to higher income at your current job, what about a similar job with another company? Not all employers have the same pay structure. Scout the competition, and see if they can offer a better opportunity.
Change professions. You may need to leave your current field altogether. If you’re working at the counter in a convenience store, you’re better off taking another line of work. What sorts of jobs are you qualified for? “None,” you might say, but many employers need unskilled laborers. An unskilled laborer who shows up for work on time, is agreeable, and makes an effort will usually be earning more than minimum wage in just a few months.
Steer clear of corporate giants. As a small business owner, I’m biased against big corporations. Publicly held companies have huge motivations to keep worker wages and benefits low. It’s true that your top-end advancement may be limited with a small business, but they’re generally more flexible than corporate giants. Many small business owners go out of their way to look out for their best employees.
Educate yourself. Finally — and most importantly — do what you can to increase your education and marketability. Make yourself appealing to employers. Develop skills that they can use.

In fact, education is so vital to escaping minimum wage that it deserves a closer look.

The importance of education
Education makes a huge difference in your earning potential. The median income for a U.S. male who dropped out of high school is $18,990. The median income for a high school graduate is $28,763. The median income for a man with even some college is $35,073. Education opens doors. And it’s not just about the piece of paper — if you take practical classes, you can learn skills that will have a direct effect on how much you can earn.

I am a huge fan of community colleges. They’re an excellent place to pick up additional training. What can you learn at a community college? Here are a handful of the programs that my local community college offers:

Alcohol and drug counseling
Automotive service and repair
Business administration
Computer programming
Construction
Dental hygiene
Electrical trades
Graphic design
Landscaping
Real estate
And much, much more

Make no mistake: these classes will not get you a top-paying job in the field. They will, however, help you land entry-level positions, positions that will pay more than the minimum wage, positions that will help you find a career path with advancement opportunities. It might take you a couple years to reach this point, but you can reach it. How do I know? Because I did it myself.

In 1998, I was fed up with working for the box factory. I decided to become a computer programmer. While still working full-time, I began to take classes at the local community college. Most of the time I could only afford one class per term, but sometimes I squeezed in two. Within eighteen months I had developed the skills to be hired as an entry-level computer programmer. My pay was $25 an hour, which was at the low end of the spectrum for that kind of job (but appropriate for the skill-set I had acquired).

If you decide to use education to break free from minimum wage, be sure to choose practical classes in order to increase your earning potential. A philosophy class might sound cool, but it’s not going to get you a job. Nor will creative writing.

Don’t forget that school is an excellent place to make contacts with people who might serve as references for future job applications. Most community college instructors have connections in their fields. Make a good impression, and follow through with class requirements. Meet deadlines. Take pride in your work. People will notice.

Ask yourself the hard questions
If you’re in a minimum wage job and would like to escape, it’s important to ask yourself why you’re in a minimum wage job. Are the reasons obvious? Is it because you’re young? If you’re just out of school, minimum wage is a rite of passage. It’s something most people experience. Keep moving in the right direction and you will leave it behind.

Are you in a minimum wage job because you lack education? Make education a priority. Pick a career that interests you and is in demand. Obtain the skills necessary to enter the field.

But if you don’t know why you’re in a minimum wage job, or if your answer is that your boss, co-workers, or life won’t give you a break, then you may need to look inward. I had a friend who was trapped in a low-paying job that he hated. He had a long list of external forces that kept him stuck there (and in the crummy jobs he’d had before). He couldn’t understand why he wasn’t able to break free. To everyone around him, the reasons were obvious, but he didn’t want to hear them. He’s still trapped in a low-paying job.

Final thoughts
Perhaps I’m naive, but I believe most minimum wage earners can find a path out of their plight. In most instances, hard work, patience, and education can counter the forces of history and bad luck.

I’d love to hear how former minimum wage earners managed to graduate to higher incomes. (Or how they didn’t, if that’s the case.) If I collect enough stories, I’ll post them in a separate entry. If you’d like to share your story, please drop me a line, or post it in this forum thread.

Source: getrichslowly.org

Apache is functioning normally

May 15, 2023 by Brett Tams

Inside: Did you know that you can get cash back when paying with Apple Pay? If not, there are plenty of rewards and perks to be had.

Apple Pay is the newest way to make payments. It’s the easiest, most secure way for you to pay with your iPhone or iPad anywhere credit and debit cards are accepted.

But how does it work? And what can you get back if you use Apple Pay?

Here is everything that we know about using Apple Pay:

Apple Pay is a digital wallet that allows you to pay with your phone for purchases.

It’s an easy way to spend less, save more, and shop responsibly.

In fact, new trends show that 82% of Americans use digital payment methods; a significant increase over previous years (source).

But what if I told you there was a hidden perk of Apple Pay? You can get cash back on every purchase!

What is Apple Pay?

Apple Pay is a digital payment system that was introduced by Apple in 2014. With the mobile wallet, Apple Pay allows users to make payments with their iPhones.

You can pay for products and services in person or online using your iOS device. With Apple Pay, you no longer need physical cards as transactions can be made by scanning your fingerprint, iris scan, or Face ID on your device.

Transactions are more secure than traditional methods. In addition, cashback and credit card rewards programs are available for those who use Apple Pay.

Can you get Cash Back with Apple Pay?

Yes, you can get cash back with Apple Pay!

All you need to do is make sure the store takes Apple Pay and have a card linked with your account. Then, make your purchase as usual and earn cash back just like before.

It’s that easy!

Way #1 – Link Your Cash Back Credit Card to Apple Pay

There are a few ways to add your credit or debit card to Apple Pay. One way is to use the Wallet app on your iPhone and follow the steps below:

Tap the plus sign in the upper-right corner of the app.
Enter your card information manually or scan it with your camera.
Verify your details and tap Next.
Choose how you want to use Apple Pay: With Face ID, Touch ID, or a passcode.
Tap Done and wait for a confirmation message that your card has been added.

You earn cash back according to your credit card used with Apple Pay. Also, some credit cards offer additional cash back when using Apple Pay.

Almost all credit card issuers work with Apple Pay.

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.

Way #2 – Apply for the Apple Card

The card is a new electronic cash back card that gives you 3% back on all purchases from Apple and when using Apple Card with Apple Pay at selected merchants. Plus 2% back on all purchases everywhere else.

Given Apple Pay is accepted by over 85% of U.S. merchants it is easy to maximize your Daily Cash.

You can apply for the Apple Card on the Apple website or in the Wallet app.

Way #3 – Get Debit Card Cash Back with Apple Pay

There are a few different requirements to get cash back when using your debit card with Apple Pay.

First, you must link a debit card to your Apple Pay account. The store accepts Apple Pay and the store must offer cash back on the purchases.

For many people, this is easier than going to ATM.

How does Apple Pay work?

Apple Pay was designed to move consumers away from physical wallets into a world where their card is on their iPhone or Apple Watch.

This is done through contactless payment technology which allows users to make payments by holding their device near a contactless reader. The reader will communicate with the device and complete the payment.

Apple Pay is very simple to use.

What are the benefits of using Apple Pay?

When you use Apple Pay, there are a number of benefits that come along with it.

#1 – More Secure

Using Apple Pay is more secure than using a traditional credit card.

#2 – Cash Back

You can earn “cash back” rewards on your purchases. Just like you normally would.

#3 – Promotions and Deals

Apple Pay also offers a number of promotions and deals that can help you get the most out of your purchases. For example, right now Apple is offering bonus points for those who use their service to pay for their holiday gifts. This allows you to earn rewards like statement credits and real cash back on your routine purchases.

These promos are emailed to their Apple pay users.

#4 – Convenience

Plus, as more companies begin to accept Apple Pay as a form of payment, it’s becoming easier and more convenient to use this mobile wallet instead of carrying around a bunch of cards in your wallet or purse.

So if you’re looking for an easy way to make payments and rack up some rewards at the same time, then Apple Pay is definitely the way to go!

Is Apple Pay secure?

Apple Pay is a digital payment service that allows users to make payments using their iPhone, Apple Watch, Mac, and iPad. One of the main benefits of using Apple Pay is that it is much more secure than using a physical card.

Your card details are not stored on your device or on Apple’s servers, instead, they are encrypted and stored in the Secure Element on your device. In order to make a purchase with Apple Pay, you need to use your Face ID, Touch ID, or passcode.

When you make a purchase, a one-time payment number and code are created so that the merchant can’t access your credit card information. This makes Apple Pay more secure than traditional methods of paying with a credit card.

How do I know if a store accepts Apple Pay?

Apple Pay is a mobile payment system that allows users to make payments with their iPhone, iPad, or Apple Watch. It’s accepted at many stores and restaurants and can be linked with any other card you have.

To know if a store accepts Apple Pay, look for one of these symbols at the payment counter:

where can i get cash back with apple pay

When using Apply Pay, select merchants offer 3% Daily Cash back.

You need to check with app to see what each store offers.

Also, many stores offer BONUS daily cash!

What happens if I lose my iPhone with Apple Pay?

If you lose your iPhone with Apple Pay, you can use the Find My iPhone app to suspend or remove your card from Apple Pay.

You can also call Apple Support at 1-800-MY-APPLE (1-800-692-7753) if you need help suspending or removing your card from Apple Pay.

Cash Back with Apple Pay

There are a variety of reasons you may want cash back with Apple Pay. Some just want to earn more money when shopping; others want to skip going to ATM for cash back.

Apple Pay is the company’s contactless payment system that allows customers to make purchases by holding their iPhone near a point-of-sale terminal. Apple has been promoting its cash back program for quite a while now, but many customers have been asking how it works because it is a newer cashless digital payment method.

Yes, you can get cash back with Apple Pay.

You need to learn which payment type is best if you are trying to stick to a budget.

Source: moneybliss.org

Apache is functioning normally

May 15, 2023 by Brett Tams

By Peter Anderson 6 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 November 8, 2012.

Lending Club launched a couple of years back and along with a few other companies helped to create a whole new banking paradigm, one where people lend their money to other people and get better returns on their money than if they had saved with a traditional bank. In turn, the people who are borrowing end up getting a lower rate than they may have at a traditional bank, and are able to save some money in the process.

While the road hasn’t been without it’s speed bumps, Lending Club has weathered the storm, and in my opinion has become the premier peer to peer lending site around. While others are starting to catch up to them in some respects, like the folks at Prosper, I still think they’re the gold standard when it comes to P2P lending sites.

I’ve been pretty happy with the returns that I’ve seen with my Lending Club account. When I first started using it I was expecting that I would put a small amount of money into it, and that I would probably see some defaults here and there. I wasn’t ever expecting to put anything more than a bit of fun money in there, and I didn’t think the returns would be as good as they’ve been. I thought they might be a bit better (after defaults) than what I’m seeing at my high yield savings account. The reality has been much brighter. I’m currently making over 10.5% on my invested money after just over 2 years, and I’ve yet to see a single default. At the same time I get to have the good feeling of helping others to get loans at lower rates than they would get at a traditional bank or via a credit card. It’s a great way to consolidate higher interest debt. So how are my returns right now, and what strategy am I using?

Check out my original Lending Club review

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Lending Club Returns Above 10.5%

So here’s a quick look at the returns I’ve been seeing lately after including more high risk loans over the past 8 months or so.

Net Annualized Return of 10.53%: Up from 10.17% in April, and 9.67% before that. That puts me in the 53rd percentile, in other words my return is higher than 53% and lower than 47% of all investors. My goal is to be doing better than 1/2 of Lending Club users, and it looks like I’ve now reached that goal. Of course I’ll still be trying to improve that number!
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.
Ten loans have been paid off early: Eight were A grade loans, and the other two were C grade loans. Looks like grade A loans, while they’re more likely to be paid back, may also be more likely to pay of early – reducing returns.
My account balance still going up: I currently have $2,554.74 in my account, with another $600+ ready to invest. I’m starting to become more comfortable with using Lending Club, and as such adding more most months.
I’m still diversified by investing across a large number of loans: I’ve got over 100, 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!

So it looks like my strategy I laid out a few months ago of adding more risky C, D and F grade loans is paying off so far.

Riskier Loans Aren’t Always Bad Bets

As I’ve mentioned in the past about 8 months ago I modified my investing strategy a bit based off of the plan laid out by Matt at steadfastfinances.com. He started a Lending Club investing club where he would hand pick loans every week or two, based off of his own investing criteria. Part of his strategy was investing in lower grade loans to borrowers who he thought would be good risks. Most of the loans he was looking at and choosing were higher risk C or D grade loans, for people with lower credit scores, but who had a good high paying professions, solid job histories and job security, and good payment histories. Using his strategy he was seeing in excess of 14% returns at one point.

Using his strategy I’ve been able to get my returns from somewhere in the 8-9% range to up over 10.5% in about 8 months. I’d like to see if I can get my net annualized return up even closer to 11-12% by continuing this strategy.

Here’s where my NAR stands now, slightly above average. I hope to move up a couple of columns there:

My Strategy For Investing With Lending Club

My strategy I used in the past for Lending Club, and the strategy I’ll still be using to some degree:

Less than $10,000: I believe I’ll still be sticking with mostly loans below $10,000. Lower amounts mean higher likelihood of payback of the loan.
Zero delinquencies: Again, I may fudge slightly on this one, but I still want it to be very few or zero delinquencies.
Debt to income ratio below 20-25%: I like to invest in loans where the borrowers have a lower DTI ratio, and preferably have higher incomes. I’ll try to keep this as is.
Borrower answers to investor questions: I like to ask questions from potential borrowers. You can tell a lot about someone, and about how they’ll do repaying the loan, by how they answer the questions. Unfortunately Lending Club stopped allowing investors to ask questions in part I believe because of privacy and liability concerns. You can now only ask from a pre-set list of questions. More than one investor – including Matt who I mentioned above, have quit Lending Club because of this change.

So that’s what I’m doing with my Lending Club portfolio right now, and how I’m investing.

Not ready to invest, but looking to consolidate debt or pay off a high interest credit card? You might want to consider borrowing from Lending Club. Check out my post on borrowing from Lending Club.

Are you currently investing in Lending Club? How are your returns looking? Tell us in the comments!

Source: biblemoneymatters.com

Apache is functioning normally

May 15, 2023 by Brett Tams

What Is Return on Invested Capital?

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Return on invested capital (ROIC) is a financial metric that shows how well a company converts capital into profits. It measures the company’s efficiency and effectiveness at allocating its available capital to projects, products and investments that produce profits. Investors use ROIC to assess a company’s profitability and ability to create value. ROIC can be boosted by increasing profits, selling unproductive assets, speeding up inventory turnover and improving their capital structure.

A financial advisor can explain how metrics such as ROIC can guide your investment choices.

What Is ROIC?

Return on invested capital (ROIC) measures the amount of profit a company earns from the capital it receives from investors who own its stock and buy its bonds. It is an important financial metric, expressed as a percentage, that indicates how effective and efficient a company is at generating profits by selecting the best places to invest its available capital.

ROIC is one of a number of metrics investors use, each of which provides a distinct insight into a company’s financial health. Return on investment (ROI), for instance, compares an investment’s earnings to the cost of the investment. The difference between these two is that ROIC measures how well a company is doing in allocating its capital in ways that produce profits, while ROI looks at the gain on an investment compared to its cost to the investor.

Why ROIC Matters

ROIC measures a company’s ability to generate free cash flow, which is an important metric for investors to determine company value. The average ROIC is about 9.13%, according to a New York University analysis. A high ROIC can indicate that company is more valuable than a similar firm with a lower ROIC. A higher ROIC can lead to higher stock prices.

ROIC is also used to benchmark companies. By comparing ROICs among competitors, an analyst can get an idea of how well-run a company is versus its peers.

How to Calculate ROIC

Calculating ROIC involves dividing net operating profit after tax (NOPAT) by the amount of capital invested. NOPAT is the amount of operating profit the company has when adjusted for taxes. Capital invested is the total amount of money investors have given the company in exchange for its shares and debt instruments, such as bonds.

The formula looks like this:

ROIC = NOPAT / Invested Capital

For example, a company that produced a $1 million annual NOPAT while investing $5 million during that year would have an ROIC of 20%. An average of the profits and capital invested over several years can also be used to generate an ROIC reflective of longer-term trends.

Interpreting ROIC

Generally speaking, a company with a higher ROIC has the potential to generate more profit and cash flow and be worth more than a comparable company with a lower ROIC. A company with a lower ROIC will have to invest a larger percentage of its earnings in order to maintain a similar growth rate.

Investors generally look for companies with higher ROICs than their peers. They also look for companies whose ROIC is higher than its cost of capital.

ROICs can vary by industry, however, so comparing companies across industries will not necessarily yield useful information. For example, a pharmaceutical firm will generally have a higher ROIC than an electric utility.

Improving ROIC

Improving profits generally boosts ROIC. This can involve increasing sales, reducing costs or a combination of both. Firms can increase sales by various means, including selecting products, projects or investments that will be in higher demand from customers. They can reduce costs by, among other techniques, negotiating lower-cost contracts from suppliers, achieving operational efficiencies or using less expensive components.

ROIC can also be increased by reducing the use of capital. This can be accomplished by selling under-performing assets, speeding inventory turnover or modifying the firm’s capital structure to employ a more optimal mix of debt and equity.

Bottom Line

Return on invested capital (ROIC) can be used to identify investment opportunities in companies that are highly efficient at turning capital received from shareholders and bondholders into profits. It’s calculated by dividing net operating profit after tax (NOPAT) by the amount of invested capital. ROIC varies widely by company and across industries.

Tips on Investing

There are many financial metrics that you can use to help with financial decisions. A financial advisor can show which ones are relevant to any particular decision and how to apply them. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Companies use metrics like ROIC to measure their performance. The performance of your investment portfolio can be projected with SmartAsset’s Investment Return and Growth Calculator. By entering the amount in dollars you are starting with, the amount and time schedule for any additional contributions and the anticipated rate of return, you can see how your investment will grow over time much your portfolio will be worth at a given point in the future.

Mark Henricks
Mark Henricks has reported on personal finance, investing, retirement, entrepreneurship and other topics for more than 30 years. His freelance byline has appeared on CNBC.com and in The Wall Street Journal, The New York Times, The Washington Post, Kiplinger’s Personal Finance and other leading publications. Mark has written books including, “Not Just A Living: The Complete Guide to Creating a Business That Gives You A Life.” His favorite reporting is the kind that helps ordinary people increase their personal wealth and life satisfaction. A graduate of the University of Texas journalism program, he lives in Austin, Texas. In his spare time he enjoys reading, volunteering, performing in an acoustic music duo, whitewater kayaking, wilderness backpacking and competing in triathlons.

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