How where you live determines your fate

WHETHER you live in the inner city, the suburbs or the outback, there are pros and cons. This is what your choice of hometown says about you.

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Australia’s rich listers are obsessed with this

FORGET mining. Australia’s richest tycoons are betting big on farming, buying up cattle stations and dairy farms. What are they up to?

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10 Essentials For Creating Retirement Income You Won’t Outlive

When it comes to retirement planning, most of the emphasis is placed on accumulating the largest retirement portfolio possible.

That is certainly important – in fact it’s probably the foundation of all good retirement planning.

However there’s a lot more involved in retirement planning.

I’ve put together a master retirement plan, that includes ten individual sub-plans, all of which will have a major impact on your life in retirement.

The idea is to look beyond simply building a big enough retirement portfolio, and focusing on the many other factors that will affect your life – and your finances – once you retire.

By knowing what these factors are, you can develop plans for each of them. And when retirement does come, you’ll be ready no matter what happens.

1. Plan for Decades – Not Years!

When planning for retirement it’s important to look beyond the first few years. People are now living for decades after retiring, and you’ll need to be prepared to cover that extended time span.

For example, if you plan to retire at age 65, you should plan to be able to support yourself for at least another 20 years – people living to be 85 is no longer uncommon. In since women generally live longer than men, you might want to consider planning out through age 95. That’s 30 years!

Even if you don’t think you will live that long, maybe because people in your family historically haven’t, you must still be financially prepared for the possibility.

From an investment standpoint, that means  you will need to continue to have some emphasis on growth in your portfolio. That will enable you to make sure the assets you have in your 60’s will last well into your 80’s.

2. Your Social Security Benefits

When it comes to Social Security, many people cling to the dated notion that you simply wait until you turn 65, file for benefits, then start collecting them for the rest of your life. While that is still possible, there is actually an entire strategy which exists around getting your Social Security benefits.

This is mostly about when to collect those benefits, and that will have a major impact on how much your benefits are.

For starters, 65 is no longer the standard retirement age. The Social Security Administration has been gradually increasing what it refers to as the full retirement age, or simply FRA. That’s the age at which you will receive full Social Security benefits.

For people born between 1943 and January 1, 1955, the FRA is 66. If you were born between January 2, 1955 and December 31, 1959, it will be 66 plus an additional two months for each year  you are born after 1954. If you were born after December 31, 1959, it’s 67.

If you retire at any time before your FRA your benefits will be reduced proportionately. For example, while you can still begin collecting benefits at age 62, the amount you’ll receive will be limited to no more than 70% of the benefit you would receive if you waited until you reached your FRA.

Conversely, if you delay collecting benefits until after your FRA, your monthly benefit will increase by 2/3 of 1% per month, or 8% per year. If you delay collecting benefits until you reach age 70, you can increase your monthly benefit by 24% (IMPORTANT: there is no additional benefit for delaying past age 70).

This is why the timing of collecting your Social Security benefits is so important. If you’re able to continue working past age 62, or even past your FRA, you will receive a larger income as a result of the delay.

Spousal benefits. Social Security benefits for a spouse carry two options. The lower earning spouse can either collect benefits based on their own work history, or he or she can collect 50% of the benefit paid to the higher earning spouse. The advantage here is the lower earning spouse will automatically collect the higher of the two calculations, as long as the higher earning spouse has already begun collecting benefits.

As a general rule, Social Security benefits are roughly equal to 40% of the pre-retirement income of a middle income worker. Since monthly benefits are capped, that percentage will be lower for higher income people.

The point to consider here is if Social Security will provide 40% of your income, then you will need to be prepared to have other sources providing the remaining 60%.

3. Shifting Your Portfolio Away From Mainly Growth

Once you reach retirement age, you will need to begin implementing a gradual shift in your overall investment strategy.

Since you’ll be at the point where you’ll begin to withdraw income from your retirement portfolio, you will no longer have the benefit of many years to ride out a major decline in the stock market. This means you will begin shifting your asset allocation from pure growth oriented investments, to assets that emphasize income and capital preservation.

This is the process you need to already have underway by the time you retire, but it doesn’t stop there. As you get older, the percentage of your portfolio that is in income-based assets will need to increase. This is not only because you will need more predictable income, but also because as each year passes your investment time horizon will grow even shorter. That will give you even less time to recover from market falls.

Where exactly you should invest your money for income and capital preservation is a topic all its own…

4. Specific Income Generating Investments

Fortunately, there are a lot of options in this area. Consider the one, or the combination of several, that may work best for you.

Bank Investments. These can include certificates of deposit (CDs) and money market funds. Neither pays much in the way of interest, given today’s low interest rate environment, but both offer absolute safety of principal. Since interest rates are so low right now I am recommending people stick to online savings accounts that pay a little higher interest.  Your total deposits at any one bank institution are insured up to $250,000 by the FDIC.

US Treasury Securities. You can directly invest in US Treasury securities through Treasury Direct, the US Treasury‘s investment portal. There you will find a variety of interesting fixed income investment opportunities, including bonds, notes, bills, and E/EE Bonds. They can be purchased in denominations for as little as $25, and carry virtually no risk of principal if held to maturity. Treasury inflation protected securities (TIPS), and I Bonds not only pay interest, but also make annual adjustments to principal based on the Consumer Price Index (CPI). That’s interest income, plus inflation protection.

Annuities. These are investment contracts purchased through an insurance company. They come in a variety of forms, and can be established to provide an income for either a specific period of time, or even for your entire lifetime. Annuities can be the perfect addition to your overall retirement plan if you are not covered by a traditional pension plan for your employer. An annuity can provide an income arrangement very similar to that of a pension.

You can even convert funds from an IRA or 401(k) to an annuity, that will provide you with a guaranteed income. And since your contributions and investment earnings were tax-deferred, income distributions will be taxed at ordinary income tax rates upon distribution.

There are various types of annuities:

• Fixed Annuities. These annuities are a lot like bank CDs, in that they are very liquid, and they allow you to withdraw interest income without paying penalties. There are no fees on fixed rate annuities, although they typically do contain a surrender charge in the event that you withdraw more than the amount specified in the contract, or if you terminate the agreement early. They can provide you with a guaranteed income for any time period you choose, or even for the rest of your life.
• Fixed Indexed Annuities (or FIA). This are like fixed rate annuities, but with an investment provision. You set up a certain term, as well as a minimum interest rate. But an FIA also allows you to link your investment to the stock market, which allows you to earn an even higher rate of return. And not only can you participate in stock market index gains (typically the S&P 500 index), but you’ll also be protected from any losses to your principal investment. This is a way to participate in both income and growth with your investment.
• Annuity with a guaranteed lifetime withdrawal benefit (GLWB). This is a rider that you can attach to any type of annuity. It will provide you with an income that will last for the rest of your life, and allow minimum withdrawals without having to annuitize is the contract. Note:  this could be a FIA (mentioned above) or a variable annuity (which I’m not a big fan as I wrote in Forbes here).

You might also consider adding an investment type life insurance policy to your investment mix. Such policies allow you to accumulate cash value in the policy on a tax-deferred basis, much like defined contribution plans. They can be an excellent addition to your retirement portfolio mix if you routinely max out your retirement plan contributions.

5. Creating a Housing Plan

Since housing is typically the largest single expense in most households, it should be considered carefully in light of your overall retirement plan. At a minimum, you should plan to pay off your mortgage and own your home free and clear by the time you retire.

That will keep the cost of your current home to an absolute minimum. It will also provide you with an unencumbered major asset that you may want to liquidate in favor of cash at some point after you retire.

But you should also at least loosely consider the possibility of changing your housing situation entirely.

There are several reasons why this may be either necessary or desirable:

• Downsizing to a smaller, less expensive home to reduce basic living expenses.
• Moving to an area that has a more favorable climate or preferred recreational amenities.
• Moving to an area where the general cost of living is lower.
• Living in a location which is close to all your shopping to reduce the need to drive.
• Moving to a state that has a more advantageous income tax regime for retirees.
• Moving to be closer to your adult children and grandchildren.
• Moving into a home that will require less repair and maintenance on your part.
• You may want to free up some of the equity in your home to put into income producing investments.
• You may decide that the home you raised your family in is simply too large for a retired person or couple.
• You may even consider renting for a time, while you decide exactly where and how you want to live.

Complicating your considerations is the fact you may also want to have a second home in a specific location. That may also motivate you to think about downsizing your primary residence in order to make room in your budget for the second home.

Fortunately, if you do plan to sell your home, and you have a considerable amount of equity, the IRS allows you to exclude up to $250,000 on the gain on the sale of your primary residence from taxation. For married couples filing joint, the exclusion is $500,000.

6. Never Ignore Inflation!

It’s important to understand inflation doesn’t stop when you retire. And since you can fully expect to live for 20 or 30 years after you retire, you will have to adjust your financial situation for rising prices.

As a general rule, you should assume inflation will continue at about 3% per year. That’s approximately what inflation has averaged over the past 30 years. What that means is general price levels will roughly double in about 25 years after you retire. You’ll have to prepare your retirement portfolio and your income for that outcome.

Fortunately, Social Security benefits are indexed to inflation, so you will automatically keep up with that income source. And some of your fixed asset allocation should be invested in TIPS securities as discussed above, that way you will not only earn interest income, but your asset principal will be adjusted to reflect higher price levels.

However, inflation means  your retirement portfolio will have to account for inflation, and that will require you will have at least some reliance on growth oriented assets, like stocks and real estate.

One way to do this is through Fixed Indexed Annuities as discussed in #4 above. But you can also invest in high dividend yielding stocks, growth and income mutual funds, and real estate investment trusts. All have above average income yields, but also have the ability to participate in gains in the equity markets.

The growth these investments generate will help your portfolio to keep up with inflation, while you are living on the income they produce.

7. Income Taxes – Why They May Not Be As Low As You Think

When planning for retirement, you should consider the very real possibility that you could be in a higher income tax bracket than you are right now. This can come about for one of two reasons:

1. Your income is higher in retirement, due to your having multiple income sources, and/or
2. Income tax rates increase by the time you retire.

This will require some type of income tax diversification planning on your part. Two ways to do this through your retirement portfolio include:

• Keep some of your investments outside of a tax-sheltered retirement plan. Withdrawals from non-tax-sheltered plans will not be taxable, since neither the contributions nor the investment earnings were tax-sheltered in any way.
• Invest in a Roth IRA. If you are at least 59 ½ and have had the plan for a minimum of five years, both the contributions and investment income can be withdrawn free from income taxes.

Taking those two steps won’t shield all of your investment income from taxes in retirement, but they will cut down on exactly how much is subject to tax.

Fortunately, you will have a built-in tax break with your Social Security benefits. Many taxpayers won’t have to pay any tax at all on the benefits. But if you are single, and have taxable income of at least $25,000, or married filing joint with a taxable income of $32,000 or more, up to 85% of your Social Security benefits will be taxable.

8. Making Your Distributions Last a Lifetime

After spending your working life accumulating a large retirement portfolio, the job will shift in retirement to creating a distribution plan that will provide you with an income for the rest of your life.

There are different ways to do this. Perhaps the most common method discussed is the safe withdrawal rate. If you withdraw no more than 4% of your retirement portfolio in any given year, your portfolio will never deplete. In theory, this works well. But it does require a minimum annual investment return of at least 7% (4% to cover your withdrawals, and 3% to account for inflation).

That may not work as well as you think. The problem is that it does not recognize the impact of investment market declines. It also disregards years in which you have negative investment returns, or even returns that failed to cover your withdrawals. In a worst-case scenario, you could be withdrawing 4% each year of a declining investment base.

So while you can consider the safe withdrawal rate as a general guideline, you may need to make adjustments in the strategy on an annual basis. For example, in years when the market is in decline, you might not want to make withdrawals at all. In such years, you might want to have non-retirement assets that you can draw from the make up the difference.

Still another strategy is to make smaller withdrawals in the early years of your retirement. For example, you could decide to withdraw no more than 2% per year until you reach age 70.

9. Health Care – The Retirement X Factor

Statistically at least, healthcare costs become even more significant as we age. Even with Medicare, senior citizens are never completely insulated from the high and rising cost of healthcare. And since they tend to be more frequent users of the healthcare system, they are more exposed to these costs. It’s also a situation which unfortunately tends to become more pronounced as you get older.

So how do you prepare for healthcare costs in your overall retirement plan?

• Make good health a priority in your life – start now, even if you are not close to retirement age. As the saying goes, an ounce of prevention is worth a pound of cure. Start those prevention efforts now.
• Sign up for Medicare as soon as you turn 65.
• Add a private source Medicare supplement plan to your basic Medicare plan. Medicare doesn’t cover everything, and the supplement will generally pay for what Medicare doesn’t.
• Add a Medicare prescription drug plan to greatly reduce the costs of most prescriptions.
• Make sure you have a very large emergency fund – apart from your retirement portfolio – available for those years in which uncovered medical expenses are particularly high.
• Plan to maintain a life insurance policy on each spouse for the rest of your lives. The death of one spouse, following a long medical event, often devastates the finances of the surviving spouse. Life insurance proceeds can replenish those funds.

It’s impossible to know ahead of time exactly what your medical costs will be in retirement. But that’s exactly why you should at least have a loose game plan – with multiple options – in place for when the time arrives.

10. Planning For Long-term Care

The downside of people living so much longer today is that the likelihood of needing either assisted living or full on long-term care increases substantially with age. Assisted living alone typically costs in the range of $40,000 per year, but a nursing home stay can easily cost $80,000 per year, and even more in high cost locations.

Unfortunately, Medicare does not cover long-term residency in either an assisted living facility or nursing home. And while Medicaid will cover these costs, they will only do so after you have exhausted all of your financial resources. If one spouse is in a facility, and the other isn’t, this can leave the non-institutionalized spouse is an extremely difficult financial position.

Long-term care insurance is becoming increasingly necessary as people live longer. A long-term care policy is much less expensive if you buy it well before you retire, and while you’re still healthy. The later that you buy a policy, the more expensive that it will be.

There are different long-term care policies, with different provisions. For example, while it may be possible to buy a policy that will cover very long-term institutionalization, it will be a very expensive policy. Plans that limit coverage to two or three years will be much more affordable. Most plans also have a per day expense cap, that may or may not be sufficient to cover the actual cost of care.

But even if a long-term care policy doesn’t cover 100% of the cost of a long-term stay at the facility, it will be a major advantage if it covers at least most of it.

If you’re building up your retirement portfolio, that’s the obvious first, best step in your retirement plan. But while you’re doing that, spend some time considering all of the other retirement issues, and what you can do right now to be prepared for the when the time comes.

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The next step in hypersonic aviation

DUBBED the ‘Concorde 2’, this futuristic craft could transport passengers close to 6000 kilometres in just over an hour - but don’t expect a ticket to come cheap.

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Oh, Thank Heaven: Get Free Coffee This Week at Participating 7-Elevens

Did you miss out on National Coffee Day? Or are you just feeling a little lethargic?

Either way, boost your coffee buzz without shelling out any cash: 7-Eleven is giving away free coffee for a whole week.

From October 12 through October 18, stop by any participating 7-Eleven store and get a free hot coffee.

How to Get Free Coffee

All you have to do to take advantage of this awesome promotion is download the 7-Eleven app. Register with your name and email address, and you’re all set.

The official website notes this offer is only good at participating 7-Elevens, but it doesn’t list specific locations. You’ll likely have to call ahead or ask in person.

Once you’ve found a nearby participating shop, head on over and fill up a cup with your favorite hot coffee (unfortunately, iced coffee isn’t eligible for this promotion).

Select the app’s “Scan and Save” option and you’ll see a coupon pop up for a free hot beverage. Show this coupon to a 7-Eleven employee and they can scan the code to make sure your cup of coffee is free.

Each day this week, you’ll find a new code for another day’s worth of free coffee. Don’t plan on guzzling complimentary java all day, though: The company has a “one free coffee per day, per member” policy.

Your Turn: Will you download the app and take advantage of 7-Eleven’s free coffee promotion?

Kristen Pope is a freelance writer and editor in Jackson Hole, Wyoming.

The post Oh, Thank Heaven: Get Free Coffee This Week at Participating 7-Elevens appeared first on The Penny Hoarder.

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4 Dynamic Large-Cap Manufacturing Stocks to Buy

As the economy continues to improve, manufacturing stocks should begin to see improved performance.


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Need Cash ASAP? 101 Creative Ways to Make Money This Week

You need money fast, as in the next few days. What can you do?

To ease your worry, we’ve compiled a list of 101 ways to raise cash this week. But let’s make a few things clear…

• First, ways to earn more money will be well-represented, but that’s not all you’ll find. When you need money quickly, you may have to sell stuff, borrow and find money you forgot you had.

• Second, none of the ways listed here require much, if any, investment other than time.

• Third, your results may vary. Having cash in hand in seven days or less is the criterion for inclusion, so if some readers can make it work in a week, it made the list. Your circumstances may not be the same, so it could take you longer to get ahold of that money using some of these strategies, and some might not work for you at all.

With that disclaimer out of the way, here’s a look at ways to make money fast.

Using Jobs

Employment isn’t always the fastest way to make money, but you can sometimes squeeze a little more from the job you have, or find a second job where you can make cash this week. Here are some options.

1. Boost Your Tip Income

If you work in a position where you get tips, quickly raise cash by working more hours, better hours and putting on your best smile. And there are at least a dozen other ways to get more tips.

2. Get a Paycheck Advance

Most employers won’t give you an advance on your paycheck these days.

But if you work for a small business, you can always ask. If your boss doesn’t want to mess with payroll issues, she might give you a personal loan you can repay when you get your next check.

3. Get Overtime at Work

You can make extra money with overtime, but collecting it within a week may be a problem depending on your paycheck schedule. Of course, if you happen to get cash tips on the job, this works right away.

4. Become a Day Laborer

As explained in my post on temporary jobs, there are two types of temp companies: job placement and “day labor” outfits.

The latter often pay at the end the end of each work day, which makes them a good choice for fast cash.

5. Try Simply Hired

Search “get paid today” on Simply Hired and you may find cash jobs in your area (there are 86 postings at the moment when searching without a zip code).

6. Be a Vegas Night Dealer

Search “vegas night” plus the name of cities near you to locate one of the many Vegas Night events put on by nonprofit groups.

Blackjack or money-wheel dealers sometimes earn cash nightly, and you don’t need experience to run a money wheel. If the organization uses a day labor company to staff the event (also common), find out which one.

7. Be a Sign Holder

The next time you see someone holding an advertising sign, stop and ask who hired him. Some companies specialize in this area, and day labor outfits hire for these positions as well.

My experience as a sign holder was pretty awful, but I did get paid at the end of the day.

8. Deliver Pizza

If you get a side job delivering pizza tomorrow, you still might not see a paycheck for more than a week. But the cash tips will start with your first shift.

Borrowing Money

Borrowing may not be the ideal way to raise cash, since taking on more debt may lead to the next “I need money fast” situation.

Then again, sometimes the important thing is to just to get cash now. If this is the case, try one of the strategies.

9. Borrow From Family

This may be the easiest and least expensive loan you’ll get, but put it all in writing.

And pay a little interest — at least the Applicable Federal rate. That’s the minimum interest charge the IRS will assume is collected.

10. Pawn Something

You can bring things you don’t need on a daily basis to a pawn shop to borrow against them, but you won’t get more than a fraction of the item’s value. You also may be fingerprinted, and typical pawn shop interest rates can be from 5 to 25% per month. It’s fast cash, but it’s also a troublesome and expensive way to get it.

11. Use Your Overdraft Account

If you have overdraft protection on your checking account, you can tap into it to raise money. Expect to pay a high interest rate.

12. Get a Credit Card Cash Advance

Typically you’ll pay 3 to 5% up front, and the average cash advance interest rate is almost 24% — making this an expensive way to borrow. You may want to try other options first.

13. Cash a Credit Card Convenience Check

A credit card convenience check is essentially a cash advance, but it can be better because these checks often come with lower promotional interest rates.

14. Use Your Credit Card to Buy Things for Friends

The average interest rate on credit card purchases is about 15%, a lot less than the cash advance rate. So if you collect cash from a friend and pay for his or her purchases with your credit card, you’ll effectively get a cash advance at a much lower rate.

15. Get a Payday Loan

The typical interest rate on a payday loan between 391% and 521% (yes, you read that correctly), so avoid this option if you can.

16. Borrow from Your 401(k)

Almost every guide to borrowing from your 401(k) retirement plan includes a warning about sabotaging your retirement. It probably is a bad idea, but you might get the money within a week, so I had to include it on this list.

17. Get a Car Loan

If you own your car free-and-clear, you may be able to get a loan on it, especially if you try local credit unions.

I did this once to pay off a medical bill (I got a steep discount on the bill for paying right away, making it worth paying interest on the loan).

18. Put It on a Credit Card

If you need money for something you can pay for with a credit card, just get a new card and use it.

While you’re at it, get a credit card signup bonus, so you’ll also get an extra $100 or $200 in a couple months.

Selling Your Stuff

You almost certainly own some things you don’t really need. Selling unnecessary possessions is often one of the quickest ways to raise money. Consider the following examples.

19. Sell Your Gold and Silver

If you have jewelry or other items made of precious metals, you can easily sell them today. See my post on getting cash for gold for tips on getting the best price and avoiding scams.

20. Cash in Your Gift Cards

You can sell your unused gift cards for 60 to 90% of their remaining balance. Online buyers (there are many) may take a week or more to pay you.

Or, use one of the many Coinstar machines that pay cash for gift cards as a faster alternative. You can enter your zip code on the website to find the closest one.

21. Have a Yard Sale

If it’s a weekend and there are other yard sales in your neighborhood, you might not even need to advertise. Just put out your stuff and make a sign.

22. Sell Old Phones

If you have unused cell phones, sell them through Gazelle, NextWorth or even eBay. Here’s a good guide to selling your phone for the most money.

You’ll often be paid through PayPal as soon as the buyer receives the phone.

23. Sell Things on Craigslist

Surely there are a few things you don’t need around your house or apartment. Take photos and list them for sale on Craigslist at no cost. Here’s how to make the most money from your items.

24. Sell DVDs and CDs

You can sell your DVDs and CDs at most pawn shops, but they only buy select ones, and typically give you a dollar or less for each. Still, if you have many popular titles, it could add up.

25. Sell Clothes

Sell your clothes for cash at places like Plato’s Closet or Buffalo Exchange. Bring your ID and preferably name-brand clothes to get a cash offer.

You can also try other second-hand clothing stores, and maybe get a better price. Consignment websites are great options, but might not be quick enough for most people.

26. Sell Furniture

I’ve written about how to make your furniture into a profitable investment, but that strategy may take too much time.

To sell that extra couch or table within a week, try a free ad on Craigslist or call consignment furniture stores to see if they’ll pay cash.

27. Sell Books

Half Price Books and Hastings pay cash for books. You get less if you opt for cash instead of store credit, but you get it right now.

28. Put a Sign on It

Around our neighborhood, people sell bicycles and other things in their front yards. Put a “for sale” sign on things in front of your home (lock them to a tree or take them in at night if they’re valuable) and see how many bites you get.

29. Scalp Your Tickets

As I reported in my post on how to make money scalping online, you can legally sell your concert or sporting event tickets as a way to raise money.

If you have a few tickets to upcoming events, you could turn them into fast cash.

30. Sell Your Car

If you can go without a car for a while, or buy a cheaper one, consider selling it.

Use online price guides like Kelley Blue Book to see what the value is in your area. For a fast sale (but probably at a lower price), go to a dealer.

Selling Other Stuff

Don’t stop with selling your own things. While you’re at it, sell items for friends, stuff you find and things you can buy cheap or get for free.

31. Sell Scrap Metal

If you have beer cans, aluminum junk, copper wire or tubing, or just about anything made of metal, you can sell it all and get cash today.

To do more than just cash in on the stuff in your garage, read up on how to find and sell scrap metal.

32. Sell Something on Fiverr

You keep $4 of each sale on Fiverr but, if you sell a service or product that takes little time to provide, those profits can add up quickly. You should be able to get your money within a week if you already have a PayPal account.

Read our guide to Fiverr and start selling something.

33. Try Dumpster Diving

Here’s one you might not like. That is, until you read about the guy who makes $2,500 per night dumpster diving.

Look for things you can turn into cash at pawn shops or recycling centers, or even get creative and look for makeup. I’ve posted about my experience selling the neighbors’ junk.

34. Sell Things at a Flea Market

Some flea markets charge by the month, but many let you set up a table for one day for less than $20. It’s a great way to sell your stuff and also other items.

As I explained in my post on selling at flea markets, my wife and I used to regularly buy rummage sale and thrift store items to sell for a profit.

35. Collect and Sell Flowers

Vendors who sell flowers on the street or in bars tell me (yes, I ask) they collect the day-old blooms from dumpsters behinds flower shops. An alternative is to harvest wildflowers to sell.

36. Make Things to Sell

My post about making and selling walking sticks covers my own experience (I’ve sold hundreds of them). You can head into the woods and make a dozen walking sticks today for under $10 total, and then sell them for up to $40 or more each.

37. Become a Street Vendor

If you have $20 to invest, you can sell something on the street. Read about Neville Medhora’s bottled water experiment for inspiration.

38. Sell Things on eBay

While selling your own things on eBay, why not sell things for your friends for a percentage?

Another strategy is to look up eBay prices for items you see at garage sales, so you can make an offer that leaves room for a profit. Keep your auctions short if you want to get the money within a week.

39. Sell Stuff Locally for Friends and Family

If you’re heading out to pawn something or sell your clothes or furniture, round up the stuff your friends and family members don’t need. Sell it for a percentage or ask what their minimum price is and keep anything over that.

40. Sell Coupons

Some coupons sell for hundreds of dollars on eBay around Black Friday, when 10% off at Target can mean a lot to a serious Christmas shopper.

At other times, you can get $10 or $15 for bank coupons offering big bonuses for opening an account.

Selling Your Services

If you’re willing to provide a service to others, you can always make some extra income. For this list, of course, it has to be something where you get paid quickly.

41. TaskRabbit

If you have an account on TaskRabbit, you can pick up a few jobs and get paid within five days. One “tasker” reports he made $1,500 his first week.

Read up on the best ways to make money on TaskRabbit. If you don’t have an account, approval can take a while, but at least you’ll be ready the next time you need fast cash.

42. Do Tasks for Friends and Family

Cleaning garages or raking leaves for family and friends will get you cash faster than TaskRabbit. Charge a reasonable hourly rate, and if they don’t need anything done right now, see the next suggestion…

43. Pre-Sell Your Labor

Print out papers saying, “This certificate is good for (blank) hours of my time.” Specify the types of work you’ll do and include your phone number. Sell these to anyone you know who needs future babysitting, yard work, etc.

44. Become a Mover

If you have a strong back, help people move. Watch for anyone moving as you drive around town and stop to offer your services for an hourly rate.

45. Bartend at a Party

If you have bartending skills, look for events where you can offer your services. Put the word out on Facebook. You’ll probably be paid at the end of the gig, and you’ll make cash tips as well.

46. Bartend at a Bar

True story: My friend ran out of money at the bar and made $30 in tips quickly (less than an hour) by taking orders and running drinks out to tables (there was no wait staff that night).

If you aren’t as good as she is at talking your way out of trouble, you might want to ask the bartender or manager if you can try this.

47. Become a Tutor

You don’t always need credentials to start a tutoring business. As long as you know more about a subject than your client, you have something to offer.

Online platforms may make for slower payment, so, if you need money really fast, talk to friends and advertise on Craigslist to find cash-paying clients this week.

48. Babysit Kids

My post on babysitting for up to $18 per hour explains how to use online platforms. But you might find work quicker by simply calling everyone you know to see if they need your help.

49. Be a Pet Sitter

I’ve paid up to $60 per night for cat sitters to stay with our cats. When I researched my post on pet sitting, I discovered the rate goes as high as $100 per night in some areas. A common charge for a quick stop to feed and check on pets: $20.

50. Walk Dogs

Wear a sign, print cards with your phone number and walk your dog at a local dog park to find clients. While you’re at it, call your friends to see if they need your services.

51. Paint Houses

My post on how to get started as a part-time house painter explains how I learned on the job and on YouTube. As a newbie I made only $13 per hour, but it was cash at the end of each day.

52. Paint House Numbers on Curbs

This is another service you can provide with a small initial investment (about $40), as detailed in my post on curb painting. You’re typically paid cash, so if you’re willing to knock on a few doors you could make $150 by the end of today.

53. Mow Lawns

Don’t let a lack of a lawn mower stop you. William Feller borrowed a lawn mower to start — and eventually took in $15,000 per month from — his lawn care business.

In any case, you might make a couple hundred dollars this week if you knock on doors and offer your services.

54. Do Customer Deliveries

If Postmates is active in your area, you can deliver anything from food and other goods for up to $25 per hour. You’ll need a bicycle, scooter or car, and the company will deposit your earnings weekly.

It takes time to get started, since Postmates does a background check, so you probably won’t see money the first week unless you’re already a member.

55. Deliver Phone Books

You can find phone book delivery jobs all over the country. I made decent money and was paid every day. DeliverYellow has a nice map where you can click to see any openings near you.

56. Wash Cars

This is another low-investment instant business. If you live in a busy area, put out a sign and start washing your own car to attract customers.

57. Sell Rides

I used to charge co-workers for rides to work. You could try that, or call your car-less friends to see if they need transportation. TPH regularly reports on opportunities like Uber and other ways to get paid to drive your car.

58. Shovel Snow

Invest $12 in a snow shovel and you should get it back on the first job. And check out Kristen Pope’s post on 18 ways to make money during a snowstorm.

59. Repair Computers

Can you fix computers? Call friends and family to ask if they need help. Or do what entrepreneurs do in our neighborhood: Put out handmade signs offering your services.

60. Clean Houses

If you clean your own home, you have what you need to start cleaning other people’s homes. Cleaning vacation rentals can be especially lucrative. For fast cash, call friends and family and ask for referrals.

61. Do Handyman Work

If you have the tools and know-how to fix a sink, paint a shed or install a counter, put a sign on your car and call friends and family to look for work.

62. Join Agent Anything

AgentAnything is a paid-task platform for college students. Once you complete a “mission” for a client, you’re paid via PayPal.

63. Clean Gutters

Most homeowners pay between $100 and $189 to have their gutters and downspouts cleaned, according to HomeAdvisor. You can buy a gutter-cleaning kit for less than $50, so you’ll be ahead after one client.

64. Wash Windows

This is yet another low-cost business in which you can recover your investment on the first job.

To limit what you have to spend on tools, go after clients with single-story homes and buildings.

65. Haul Junk

If you have a pickup truck, you might find cash jobs this week hauling away junk for people. First, see what it will cost to unload at the local dump, so you know how to price your services.

And don’t forget to separate those metal objects to sell for scrap value!

66. Work at Events

Check online for festivals, carnivals and events in your area. Stop by before they start to see if they need setup help, or on the last day to see if they need teardown help.

You’ll typically be paid cash each day (common for carnival ride teardown, for example).

Gathering Together Money You Already Have

You may already have more money than you realize. Even if it’s in various forms and places, you may be able to pull it together this week. Here’s where to look.

67. Check PayPal

Have any forgotten money in your PayPal account? Transfer anything to your bank account; it takes a few days at most.

68. Cash in Bottles and Cans

In my post on how I made $1,500 collecting soda cans, I explain that 10 states have deposit laws for beverage containers. If you live in one of them, round up all your 5- or 10-cent treasures and bring them to the store to cash in.

Ask friends for donations too. I once made $35 cleaning the cans out of a friend’s garage (350 of them).

69. Tap Your Emergency Funds

If you have an emergency savings fund, this may be the time to use it. If you don’t have one, remember to start one when the tough times are over.

70. Round up Your Loose Change and Bills

The change in your couch and car cup holder may not add up to much, but it’s a start. Also search dressers and any place you may have stashed a few bills.

71. Get Your Utility Deposits Refunded

If you had to pay a deposit to get electricity or gas turned on, you may be able to get it back. Many utility companies refund deposits once you’ve paid enough bills on time (often a year).

Some don’t do it automatically, so check to see if you have a deposit you can get back.

72. Cash in Your IRA

If you have a retirement account with a local bank, you can quickly cash in part of it to raise cash.

At tax time you’ll pay a penalty and taxes on the early distribution, so carefully calculate if it’s worth the cost, or look over the IRS penalty exceptions to see if you might qualify.

73. Return Your Purchases

Consider getting a refund on something you bought recently. Return policies vary, but can be generous. For example, Walmart gives you 90 days on most items, and 15 days to return electronics.

74. Cancel Subscriptions to Get a Refund

Many magazines, and even some services, will give you a prorated refund if you cancel. Call and ask.

75. Get That Tax Refund

If it’s near tax time, prepare your return to see if you’re owed a refund. CBS News reports the fastest way to get a tax refund is to file electronically and elect to get a direct deposit into your bank account, but it can still take two weeks.

Getting a refund anticipation loan is expensive, but you get the money the day you file.

76. Collect Your Unclaimed Money

Read my post on lost money that belongs to you or go straight to Unclaimed.org to search for lost bank accounts, insurance refunds and other unclaimed money that might belong to you or a relative who passed away.

In most states you won’t get it within a week, but if the money is coming soon, you could borrow until the check arrives.

Other Ways to Raise Cash Fast

Many of the ways you can raise cash this week don’t fit well in one of the categories above, or they fit into more than one. So, here are the rest of the strategies for putting cash in your hands as quickly as possible.

77. Beg for Money

Don’t like the idea of begging for cash? You might change your mind if you read about beggars making £200 per night ($310) to supplement their day job income. Anyhow, I don’t want to leave anything out of this list.

78. Flip Free Craigslist Stuff

I explained my process in my post on flipping Craigslist freebies. Look in the free section on Craigslist and find things you can sell for cash.

Here’s a tip: Cash in large metal objects at a recycling center for scrap metal value.

79. Sell Your Plasma

Check online for a BioLife Plasma Service center near you, and call to see how much they offer. They pay using a pre-paid Visa card.

You can search online for other plasma centers that pay by check or cash.

80. Sell Your Trees

If you own property with lots of trees, cut down and sell some of them. Local lumber mills may make an offer, or you can check with websites like SellYourTrees.com. My friend made thousands of dollars selling the trees around his house.

81. Rent Out Your Stuff

I’ve reported on websites where you rent out your stuff, but Craigslist may be the best bet.

I just clicked “for sale” and searched “for rent” on the Tampa Craigslist site (a routine that gets you beyond housing rentals). I saw a horse trailer, jet ski, shed and tablecloths among the items advertised, so who knows what you can rent out.

82. Sell Your Garden Produce

Sell your garden fruits and vegetables on a table in front of your home, or call friends to see if they want to buy them. At one job, my co-worker brought eggs and vegetables to work and always sold out.

83. Download the Field Agent App

“Jobs typically pay between $3 and $12 each,” per the Field Agent website. Examples of assignments (accessed through your smartphone) include local mystery shopping and doing surveys online.

You can ask for a PayPal cash-out when you like, and then transfer the money to your bank account or spend it using your PayPal debit card.

84. Sell Ads on Your Website

When I sell ads on my websites, I usually get paid within two days by PayPal (it takes two more days to transfer the money to my bank account).

With a dozen emails to previous clients, I can usually sell at least one $100 ad. If you’ve never sold ads, look at similar sites and contact the advertisers you see there.

85. Gamble

I’m not suggesting going to a casino, but if you read my post on bar bets you can’t lose, you’ll see you don’t have to take any big risks to raise some cash.

86. Collect Debts

Pick up your phone and start collecting any debts you are owed. If your debtors hesitate, offer to discount what they owe if they pay in full today.

87. Make Money as a Street Musician

If you have talent, hit the street. Nobody throws a credit card number in the hat, so it’s all cash right now.

88. Be a Street Character

Don’t have enough talent to be a street performer? Try costume busking. You might have to borrow or rent a costume, but again, you’ll make cash tips.

89. Sell Your Hair

Good, long hair can sell for $500 or more. You can find a list of buyers on websites like BuyandSellHair.com. Here’s a great guide from a writer who sold her long hair.

90. Find Money

You have to be desperate to check couches in public places for change — a suggestion I recently heard.

But people in casinos regularly go around checking slot machine trays for forgotten quarters or tokens (which they can cash in), and I’ve been known to scavenge a quarter or two from a vending machine change return.

91. Sell Your Bone Marrow

Julia Sheng told The Billfold she sold her bone marrow for $300. It can’t be that bad; she went back to sell marrow two more times.

92. Have a Party

If you know a lot of people, have a party with a $5 cover charge and provide all the snacks.

I’ve had friends who paid half the rent doing this. They had as many as 40 or 50 people show up, leaving them a profit of at least $120 after buying all the snacks.

93. Find a Renter

I paid off my mortgage by renting out rooms in my house, and I always collected rent in cash. It can be a good source of income long term, but you can also collect the first month of rent money this week.

94. Use Airbnb

If you don’t want long-term tenants in your house, you can still raise some quick cash by using Airbnb to rent out a room (or even a couch) for a weekend.

95. Go Scavenging

In several towns, I’ve watched scavengers prowling the streets as people put out their junk for a spring cleanup event. It’s amazing how many valuable items people throw out.

You could sell some items at pawn shops, others at your rummage sale and junk metal at a recycling center.

96. Check Classified Ads

Cash jobs and opportunities sometimes show up in newspaper classified ads. That’s how I made $150 for a day as a fake juror.

Consumer research companies also occasionally use classified ads to find paid focus group participants.

97. Cash in Your Reward Points

If you have reward points on credit cards you may be able to cash them in for statement credits you can spend.

And if you can use them to get a gift card for a store you normally shop at, that’s like cash, too (but you’ll typically wait a week to get it).

98. Write for a Blog

Most blogs don’t pay right away, but a few websites pay you instantly for your articles (usually by PayPal).

99. Try Social Funding

Last week my friend used Facebook and a GoFundMe campaign to successfully raise money for a car. It takes five to seven business days to transfer the money to your bank account, but you can withdraw money at any point.

So if your campaign starts well, you can have some money within a week, and maybe have much more in two weeks. GoFundMe takes a total of 7.9% of what you collect.

100. Sell Your Friendship

Learn how to use Rent a Friend and you might get paid to be anything from a chess partner to a tour guide.

101. Spend Less

This isn’t a way to raise cash directly, but any time you spend less on your normal purchases you free up money, right?

Maybe it’s time to eat up what’s in the cupboards, stay in the house for a week and do anything else to slow your spending.

Your Turn: Do you know of any other strategies for quickly raising cash? Let us hear about them!

Disclosure: We have a serious Taco Bell addiction around here. The affiliate links in this post help us order off the dollar menu. Thanks for your support!

Steve Gillman is the author of “101 Weird Ways to Make Money” and creator of EveryWayToMakeMoney.com. He’s been a repo-man, walking stick carver, search engine evaluator, house flipper, tram driver, process server, mock juror and roulette croupier, but of more than 100 ways he has made money, writing is his favorite (so far).

The post Need Cash ASAP? 101 Creative Ways to Make Money This Week appeared first on The Penny Hoarder.

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Here’s What Living on Half Your Income Really Looks Like

Photo: The Frugalwoods

If you ask anyone who plans to retire early what their secret is, they’ll all say the same thing — it’s a high savings rate. To grow their nest eggs quickly enough — and big enough — to say goodbye to the working years ahead of schedule, they have to save as much as they can while they can.

For many would-be early retirees, the plan to get there involves saving 30%, 40%, or even 50% of their pretax income and living on the rest. While that sounds daunting, many individuals and couples are successfully pulling it off while living fairly normal or even luxurious lives. But how?

The first key to a high savings rate is an obvious one: To save a lot, you have to keep your spending levels in check. For most with a high savings rate, that means cooking most meals at home, steering clear of new and expensive housewares and gadgets, and driving old cars until they die — or even biking to work.

The rest of the equation involves a dose of financial aggression; not spending most of your money takes a certain amount of self-control, but actually saving and investing those extra dollars also requires some work. Simply put, families with a high savings rate need a thoughtful investment plan that helps them optimize both their tax situations and the money they have left to spend.

What Does Living On Half Your Income Really Look Like?

While living on half your income (or less) sounds like a good idea, putting it into practice can be tricky. To illustrate what this kind of lifestyle really looks like, we profiled three families who are saving 50% of their incomes or more. Here are their stories:

The Frugalwoods

In a quest to retire fully and move to a homestead in rural Vermont, one anonymous Boston-area couple known as “The Frugalwoods” built a life that is sustainable on around 30% of their annual income. Yes, you read that right. The Frugalwoods are saving a little over 70% of their incomes from their full-time jobs, and counting down until the moment when they can kiss their work offices goodbye — once and for all.

How do they do it? According to Mrs. Frugalwoods, the key has been creating a life where they spend on the things that really matter to them and do their best to optimize the rest. At the same time, they don’t feel like they’re sacrificing – quite the contrary.

“For us, frugality is about what we’re going to gain — not about what we’re giving up,” says Mrs. Frugalwoods. “We feel that we live a life of frugal luxury because we have everything we need and we enjoy our lives.”

Further, Mrs. Frugalwoods says most of their decisions aren’t really based on money. Instead, they aim to create lives they love living; money is just a tool that will get them there.

“It’s all about working toward a life of freedom and financial independence,” she says. “By saving our money, we’re enabling a joyful existence that’s less stressful and not caught up in the rat race of consumerism and lifestyle inflation.”

But what does saving 70% of your income really look like? Although the Frugalwoods don’t openly share their income statements, a quick look at one of their monthly budgets (and some basic math) shows they enjoy a high income. Still, it also shows their spending is devoid of the typical consumer trappings that plague so many people who earn a lot — but can’t manage to save anything meaningful.

The Frugalwoods, despite their high incomes, aren’t trying to keep up with the Joneses. Here’s what one of their typical monthly budgets looks like (this one’s from August 2015). Keep in mind, all extra money not listed in their monthly spending gets invested or saved for their rural retirement homestead.

Monthly Expense	Amount
Mortgage (Including Taxes and Insurance)	$2,407.80
Groceries	$200.33
6 Month's Car Insurance	$199.55
One Chest Freezer	$159.36
Electric Bill	$99.53
Internet	$56.95
CO2 Tank	$35.00
Gasoline	$31.51
Restaurant Dining	$26.73
Gas Utility	$22.20
Dollar Store	$8.03
20 Pack of Hangers	$4.23
Pre-tax Retirement Savings	$3,000

Bare Budget Guy

Despite the fact that Mark from Bare Budget Guy has a wife and kids, his family could still feasibly save 50% of their income — that is, if they didn’t tithe quite so much. But that’s a choice his family has made — and is happy with.

While Mark is the primary provider with a full-time day job, his wife is the primary caregiver. Keeping expenses low and avoiding the costs of day care help the Bare Budget family save so much while also giving back.

But how does this family with small children save so much? According to Mark, they bought a house they could afford that was close to work, they avoid buying new stuff for their children or themselves when they can, and they budget every dollar they earn. That last part is key, says Mark.

“Writing down what you spend and what you think you’re going to spend does wonders for your financial awareness. And when you are financially aware, you are more inclined to spend carefully and increase your income.”

• Related: Why You Should Track Your Spending

And while they’ve made certain sacrifices to save so much, Mark and his family know deep down it will all be worth it. As of right now, they’re saving heavily for retirement and for their children’s college education, while maintaining a certain level of comfort and room for fun, like the occasional dinner out. And according to Mark, it’s only when he looks around at how others live that he realizes their situation — and savings rate — isn’t actually normal.

Here’s what one of their normal monthly budgets looks like based on a monthly after-tax income of $7,489:

Monthly Expense	Total
401(k) Contributions	$1,173
College 529 Savings	$500
Mortgage	$1,275
Giving	$942
Groceries	$700
Gas & Fuel	$175
Doctor	$150
Auto Insurance	$150
Electricity	$150
Education	$100
Home Improvement	$60
Water Bill	$57
Misc. Expenses	$50
Clothes	$50
Restaurants	$50
Kids Activities	$50
Internet	$50
Gas Bill	$40
Lawn & Garden	$40
Shopping	$30
Home Supplies	$30
Work Lunch	$30
Personal Care	$30
Fast Food	$30
Amusement	$25
Home Services	$20
Auto Services & Parts	$20
Movies & DVDs	$20
Pharmacy	$20
Mobile Phone	$12
Sporting Goods	$10
Savings	$1,401

The Single Dollar

Notably single, Catherine from The Single Dollar saves approximately 50% of her income throughout the course of a year. Some months come with bigger spending, she says, but the lean months help her achieve the high savings rate she craves.

Earning some money on the side also helps her stash extra money away, she says. For the most part, her side jobs this year have included efforts with e-bates, online survey sites, swagbucks, and an occasional one-off freelance gig.

“It’s not usually more than $100 a month, sometimes less, sometimes a bit more,” says Catherine, but it all adds up and helps her achieve optimal savings.

If you want to know why she reaches for a high savings rate when many of her peers don’t even bother, you have to look back at her past. As a graduate student living in expensive New York City during her 20s and early 30s, she couldn’t save a dime — and even worse, she left school with around $20,000 in debt.

According to Catherine, she is trying feverishly to make up for those years where she wasn’t able to save. Meanwhile, she enjoys the safety that comes with having a fully funded emergency fund.

“My employment has been precarious for a while now and it was really scary to think I had no savings account and would be stuck borrowing in case of emergency, so I want to avoid that again in case of job loss or other life events,” says Catherine. “My goal isn’t extreme early retirement; it’s a safety net.”

Here’s what Catherine’s monthly budget looks like with an average monthly net (after-tax) income of $3,572.

Monthly Expense	Total
Rent and Utilities (Shared Apartment)	$400
Phone (On Shared Plan with Family)	$25
Insurance (Auto & Renters)	$47.18
Groceries and Incidentals	$197.87
Gas	$21.51
Travel	$145.07
Miscellaneous	$130.70
Repairs (Car & Computer)	$384.73
Clothing	$195.71
Gifts	$71.09
Cash Savings	$875
Retirement Contribution	$1,075

According to Catherine, her high savings rate wouldn’t be possible if she still lived in New York City. “My $400 rent and utilities is the No. 1 reason I can do this without eating ramen every night,” she says. “State and county taxes are also much lower here than they were for me in New York.”

By living in a low-cost area, she is able to take on a roommate and save a considerable percentage of her income, all while living a life she enjoys.

Could You Live On 50% or Less?

While all three of the parties I interviewed are living on less than half of their take-home pay, they all admit that the lifestyle isn’t for everyone. As Catherine of The Single Dollar says, her extraordinary ability to save is tied to her individual life circumstances, some of which can’t apply to everyone. For example, she is keenly ware that living in a cheap area, having no dependents, and being in good health help her save.

“Given the fact that real wages have declined in the U.S. over the last 30 or 40 years, and that the cost of living has risen substantially in many places, I’d be very reluctant to say that ‘most people’ could do this,” she says.

Obviously, a high income helps, too. After all, saving 50% of the median household income — which is around $52,000 — is a whole lot harder than stashing away half of a six-figure salary.

Still, most of us could save more than we are saving now — and it doesn’t have to be with the goal of early retirement or extreme frugality. Even if your goal isn’t retiring early or reaching financial independence right away, saving a lot of money gives you more options in the end.

“Having money in the bank means you have the freedom to take risks and pursue the life you want to live,” says Mrs. Frugalwoods. “When you’re spending paycheck to paycheck, you’re entirely reliant upon your employer. But when you’re saving a great deal of your income, you’re creating independence for yourself.”

• Related: The Golden Handcuffs

The Bottom Line

And in the end, maybe that’s what this movement is all about. Maybe it’s not really about dollars and cents, but more about the freedom money can buy you.

No, not everyone can save 50% or more of their income, but it’s fairly safe to say most of us could be doing better than we are now. And in the pursuit of stashing away as much money as we can, it makes sense to analyze our monthly and annual spending to see if the reality of our spending aligns with our long-term goals.

Despite their already high savings rate, the Frugalwoods report they’re still finding new and interesting ways to save each month. “It’s all about bringing awareness and mindfulness to our spending,” she says.

If you want to apply their financial philosophy to your own finances, Mrs. Frugalwoods suggests reviewing every single dollar you spent last month, looking for areas you spent money on but that didn’t bring you joy. And if you find areas where your spending isn’t offering the value you expect in return, take a moment to seriously evaluate why you spent that money in the first place.

“When you start spending only in service of your goals, it’s amazing how much money you can save,” she says.

Related Articles

• A Look at the Average American’s Budget – and How He or She Could Save More
• The Spark of Financial Independence and Frugality
• The Secrets to Successful Budgeting

The post Here’s What Living on Half Your Income Really Looks Like appeared first on The Simple Dollar.

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Savings update: best fixed-rate deals offered by new banks

Sylvia Morris

Piggy banks standing on a podium.jpg

New banks continue to offer savers the best fixed-rate deals as they compete with each other for your money.

New banks continue to offer savers the best fixed-rate deals as they compete with each other for your money.

The top one-year deal comes from Charter Savings Bank at 2.07 per cent before tax (1.66 per cent after tax).

Savings update: best fixed-rate deals offered by new banks

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New banks continue to offer savers the best fixed-rate deals as they compete with each other for your money. The top one-year deal comes from Charter Savings Bank at 2.07 per cent before tax (1.66 per cent after tax). French-owned RCI Bank, part of the Renault group, and FirstSave both pay 2.06 per cent (1.65 per cent), while Harrods Bank now offers 2.03 per cent (1.62 per cent) and Paragon Bank 2.01 per cent (1.6 per cent). In contrast the best deals from traditional banks and building societies are 1.75 per cent (1.4 per cent) from Leeds Building Society or 1.65 per cent (1.32 per cent) from Nationwide. Last week Halifax cut its one-year rate to just 1.15 per cent (0.92 per cent). EASY-ACCESS AND CASH ISAS For two years top deals include Paragon Bank at 2.4 per cent (1.92 per cent) along with RCI and Hampshire Trust banks at 2.35 per cent (1.88 per cent). The best rates on easy-access accounts include RCI Bank Freedom Account at 1.65 per cent before tax (1.32 per cent after tax). Post Office Online Saver pays 1.61 per cent (1.29 per cent) including a bonus for the first year you are in the account. After this the rate drops to 0.65 per cent (0.52 per cent). BM Savings' Online Extra Issue 19 pays 1.6 per cent (1.28 per cent), but once again the rate is boosted by a short-term bonus. It drops to 0.25 per cent (0.2 per cent) after 12 months. On tax-free accounts, Post Office Online Cash Isa pays 1.51 per cent including a 0.86 percentage point bonus for the first 12 months. Virgin Money Defined Access Isa is a slightly better rate at 1.56 per cent, but it limits you to making three withdrawals a year - although there is no bonus on this account. The best deal with no bonus and no withdrawal facilities comes from Nationwide's Instant Isa Saver Issue 3 at 1.4 per cent. On fixed rate cash Isas, Virgin Money pays a top 1.81 per cent for one year, followed by the new AA Savings deal (where the deposit taker is Bank of Ireland), at 1.75 per cent. Virgin Money pays 2.06 per cent for two years.

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How to buy yourself a better state pension

Tom Wilson

pensioners topping up their flowerbeds.jpg

Pensioners will be able to increase their state pension by up to £25 a week from 12 October 2015, thanks to a new government top-up scheme.

Pensioners will be able to increase their state pension by up to £25 a week from 12 October 2015, thanks to a new government top-up scheme.

In exchange for a one-off payment, known as ‘Class 3A national insurance contributions’, participants can buy an increased state pension that rises in line with inflation.

How to buy yourself a better state pension from 9 October

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Pensioners will be able to increase their state pension by up to £25 a week from 12 October 2015, thanks to a new government top-up scheme. In exchange for a one-off payment, known as ‘Class 3A national insurance contributions’, participants can buy an increased state pension that rises in line with inflation. The cost depends on the age of the individual. A 65-year-old buying the maximum £25 a week would pay a lump sum of £22,250. That may sound a lot, but it’s much better value than you can currently get from an annuity. You’d have to pay £35,215 to get the same amount with inflation protection from a private pension. Tom McPhail, head of retirement policy at Hargreaves Lansdown, says: “No private pension company can offer such an attractive deal; so if you are eligible and you want to buy yourself some inflation-linked guaranteed income for life, with death benefits for your spouse thrown in too, then this is the scheme for you.” Who qualifies? The deal is only available for 18 months to people retiring before 6 April 2016. It’s on offer to appease those who won’t feel the benefit of the new state pension, which arrives in April 2016 and is generally seen as more generous. Is it worth it? A 65-year-old buying the full £25 a week allowance would receive all their £22,250 back after 17.3 years, in real terms. A 65-year-old man can typically expect to live for another 183 years, and a 65-year-old women will on average live for another 20.9 years, based on the latest figures from the ONS. So the average person should be better-off by around £1,300 for men and £4,680 for women. Moreover, £25 a week is certainly better than that available in the annuity market, but pensioners who don’t receive the full state pension because of their work history are eligible for an even better deal. You’ll get the maximum state pension if you’ve made 30 years worth of National Insurance contributions, but if you’ve got less than this you can buy additional years to fill the gaps. You’ll pay £733.20 for each year you buy, which gets you £3.86 or £200 a year. That’s equivalent to an annuity rate of 27%, and it is inflation protected. McPhail adds: “Anyone looking at buying some additional state pension should make sure they have filled in any gaps in their standard record using the Class 3 scheme before looking at the Class 3A additional pension top-up scheme.”

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The Automatic 3% Raise: How to Squeeze More Money from Your Salary

Most people struggle with the challenge of asking for a raise.

Countless websites and books exist to coach and help you get the raise you want. But what if you could get a raise without actually asking for it?

What if I told you there was a 3% raise you could get easily — without even speaking to your boss?

Here’s the secret: It’s the corporate match on your 401(k) plan.

Remind me: What’s a 401(k)?

There are two types of 401(k) plans: traditional and Roth. They each have their advantages.

The traditional 401(k) allows you to invest pre-tax money. This means your investments are taken out before your payroll taxes are calculated, thereby lowering your tax basis. You pay less in taxes while earning the same salary.

For example, if your salary is $1,000 a week and you invest $100 — or 10% of your salary — into your 401(k), you will lower your basis for withholding taxes from $1,000 to $900.

And there’s an added benefit: The money you invest grows without you having to pay any taxes on the gains until you start taking money out, hopefully many years later when you retire.

The Roth 401(k) plan is different. Your investments aren’t taken pre-tax; you make them with after-tax dollars, so you would pay withholding taxes on the entire $1,000 mentioned in the example above. But the $100 you invested would grow, and you would never pay any taxes on that money again.

If you’re investing in your 20s or 30s, that $100 will have decades to grow. If you invest $100 each week in a Roth 401(k), you could have hundreds of thousands of dollars when you retire and not pay any taxes when you withdraw the money.

Does Your Employer Offer a 401(K) Plan?

If you’re a full-time employee in America, you likely have access to a plan, according to a U.S. Bureau of Labor Statistics report released in March. Overall, 66% of private sector employees have access to a retirement plan at work.

The likelihood of you having a plan tends to decline with your salary level; the less money you earn, the lower the chance your employer offers a 401(k) plan. Only about 31% of the lowest earners have access to a retirement plan, while 98% of the highest earners have access to such a plan at work.

Check with your HR department to find out whether your employer offers a plan. Regardless of how much you earn, if you’re eligible, I strongly suggest you take advantage of  your company’s 401(k).

How to Get a 3% Raise

So here’s how easy it is to get a 3% raise: Many employers offer a corporate match on your 401(k) contributions.

The most common match is 50 cents on the dollar up to the first 6% you contribute. A 3% match of a 6% contribution in your 401(k) plan is not a hard-and-fast rule across all companies, but it is the most common match.

Let’s say you earn $52,000 a year (or $1,000 a week) and you invest 6% of your salary (or $60 a week). Your employer will match 50% of your contribution, or $30 every week.

This means your employer contributes $1,560 annually to your retirement plan, or 3% of your $52,000 annual salary.

How do you get this corporate match? All you have to do is sign up with your company’s HR department to contribute to the company’s 401(k) plan.

As you make contributions, the company will automatically match your contributions based on how the plan is set up. You want to secure the entire corporate match, if you can.

Free Money (Really!)

It’s actually more than that; if you’ll recall, contributions to a traditional 401(k) plan lower your tax basis, thereby keeping more money in your pocket. It’s really a no-brainer.

And if you can, invest more than the level of your employer’s match. For 2015, the maximum allowable contribution is $18,000 (folks over 50 can contribute $24,000). Ideally, aim for 10% to 15% of your salary.

Your investment and corporate match happen on autopilot. Once you set up your investment, the money will be automatically invested and matched by your employer without any further involvement on your part.

And when you get a raise, a portion of it will go toward your investments as well — this increases the corporate match, effectively increasing your raise!

Start investing in your 401(k) as early in life as you can. The longer your investments have to grow and compound, the more money you will have when you retire.

So start now, and get your free 3% raise. What are you waiting for?

Your Turn: Does your company offer a 401(k) plan? Do you contribute to it?

David L. Wright is a retired CFO. He is author of the Amazon bestselling investing book Investing for the Rest of Us and maintains a personal finance website: DollarBits.com.

The post The Automatic 3% Raise: How to Squeeze More Money from Your Salary appeared first on The Penny Hoarder.

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The $100,000 Challenge: September Update

I just wrapped up the sixth month of the $100,000 challenge. Traffic on NutritionSecrets.com has sharply gone up to 66,473—that’s a 62% increase from the previous month.

Most of the increase came from Facebook. In particular, it came from the post “What Happens to Your Body When You Quit Sugar,” which went viral. In addition to the Facebook traffic, search traffic has risen to 19,595—that’s a 45% increase over the previous month.

And although revenue is still at zero, there was a lot of progress made on that front. Let’s look at everything in detail…

Overall search traffic

The search traffic hasn’t gone up as much as I wanted, but it’s my fault. Mike hasn’t been focusing enough attention on building links because I’ve been trying to teach him how to write attractive headlines.

For the majority of the month, search traffic was pretty flat even though we published 30 articles in September.

To fix this, Mike will be focusing less on content creation and more on link building as the blog already has over 100 pieces of content, which is more than my personal blog has. And my personal blog is in a much narrower niche, receiving close to 60,000 search engine visitors a month.

Using Ahrefs, Mike will first find out who links to similar posts, and then he’ll use templates from this article to ask for links.

Social media traffic

One tactic that we started leveraging to increase our social media traffic is use Buzzsumo more heavily.

First, we type in keywords and phrases related to the articles we are writing:

Next, we click on the “View Sharers” button to see who is sharing the viral content on the social web:

Finally, we look up each of the users to see which website they own (some of them link to their websites in their Twitter profiles), and we send out each user an email that looks something like this:

Subject: have you seen this yet?

Hey [insert their name],

I noticed you shared [insert previous article they shared on Twitter], and I have to say, it’s an amazing article. I loved it so much that I decided to dig in, do a bit more research, and expand on the topic.

I’ve actually just published my findings here [insert link to your article].

If you find it useful, feel free to share it on your favorite social network.

Cheers,

[insert your name]

P.S. Thanks for sharing the original piece—it was eye-opening.

If you use the email template above, you’ll start noticing more social shares. You just have to be patient as it is hit-or-miss. It’s worked so well for NutrutionSecrets.com that in September the blog received 30,848 visitors a month from social media sites such as Twitter and Facebook.

Supplements

In October, we will be launching our fish oil supplement. Mike found a company willing to white-label their product, charging us only when we sell a bottle. That way we are not tying up our cash.

As you can see, they didn’t do the best job designing the bottle, but I can’t complain—after all, it was free.

All we have to do now is get the product on Amazon. The big holdup is getting a new account approved by Amazon. I am not leveraging my connections, so going through the standard channels can take weeks.

Once the product becomes available for sale on Amazon, I’ll share with you how I’m going to leverage the NutritionSecrets.com brand to grow the sales.

Conclusion

Overall, September was a fairly good month. Mike’s doing an excellent job producing content, but he needs to do more when it comes to building links.

He also needs to expand his social outreach efforts, which should help bring traction to the blog.

I hope that October picks up. I think search traffic will be up, but social media traffic may be down as we will be shifting our focus toward revenue generation.

In September, our only expense was for Aweber, which is $29 a month. It should, however, go up because an exit pop-up has been activated on the site, and more emails are being collected. This should help with long-term traffic as well.

What do you think—how are we doing so far?

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Cars We Remember: The 1955 and 1956 Mercury is a solid collector’s choice

Q: Greg I’m looking to purchase a 1955 or 1956 Mercury, hopefully a Montclair two-tone hardtop model. What can you can tell me about current pricing and what to look for in the Mercury models as they were completely changed in 1955 from the 1953 to 1954 designs. Thank you for your help. Joseph O., New Jersey. A: No problem Joseph as your choice of a car to enter the car collecting hobby is a good one. Personally, I’ve always loved the 1955 and 1956 Mercurys, [...]

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The Simple Dollar and Soda Are Hiring

When Trent Hamm penned his first words on The Simple Dollar, he gave the world a unique window into one man’s struggle between his future self and his current reality.

He built an audience by becoming the authentic voice missing from many of our pursuits of an independent life. He gave meaning to control, purpose and choice. Consequently, Trent’s extraordinary journey became an inspiration for hundreds of thousands of us to get a hold on our finances, re-prioritize our values, and take back control so that we could live more meaningful and more fulfilled lives.

The Simple Dollar and Soda

For the last few years, The Simple Dollar has been owned by Soda, a young company focused on building human-centric media brands on the Internet. The Simple Dollar is joined by Reviews.com and Freshome which will give you a sense of the diversity of our passions. Soda is focused on building web experiences that help readers become the best version of themselves by connecting readers to best-in-class ideas, tools and products that will enhance readers’ lives.

I am excited to be part of The Simple Dollar’s journey, and honored to continue broadcasting the message and mission Trent started.

Our Vision for The Simple Dollar

Today, The Simple Dollar has a unique opportunity to stand as a larger symbol for the cultural movement toward a more independent lifestyle, and to support that movement through relating how our finances and lifestyles interact. By fostering a deeper connection between our choices in both areas, we will transform the discussion around what true wealth and success mean.

Imagine the impact of helping millions of people align their deepest values with their everyday choices. How will we do this? As a brand, we will:

• explore the complexity between logic and emotion in our life choices
• create new abilities to travel the path to independence, both personal and financial, together
• enable a self-aware and integrative relationship with money
• support people in times of risk and uncertainty
• cultivate abundance by giving definition to “enough”

In the next 60 days, we will be launching an exciting new website and user experience on The Simple Dollar. We are investing in new content types, tools and community engagement concepts to support our readers. We are investing in people, and we need your help to build this vision.

Joining Our Team

If this vision resonates with you. If you are passionate about finances, lifestyle engineering, and making sense of an uncertain world. If you have a high velocity of learning, adaptability, craftsmanship and obsession; then we want you on our team.

We have a number of positions open at The Simple Dollar, and across Soda as a whole. Feel free to apply directly to any of the positions that look like a good fit for you.

In addition, there are a number of positions on our radar that may not be posted yet. Please email me directly (mgardon @ thesimpledollar . com) if you’re excited by this opportunity and think that you would be a good fit. A link to your LinkedIn profile, your resume, and a cover letter would be helpful. Also let me know why you’re interested and what you want to bring to our team.

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