الاثنين، 20 مارس 2017
CLOSING BELL: US indexes end slightly lower
Source Business - poconorecord.com http://ift.tt/2nfEwlQ
Why You Definitely Need to Invest $5 in the Stock Market Right Now
So, I have a confession.
Although I write about personal finance, I know absolutely nothing about investing.
OK, correction — almost nothing. The only thing I DO know is I should definitely be doing it.
Investing is the very best way to save money.
You just add time and magically, your money multiplies. That’s why they call it “making your money work for you.” You can earn cash by just kicking up your feet and waiting.
But since time is the only fertilizer your money-seeds need to grow, it’s imperative you start investing early.
For instance, if you’re 21, you can retire comfortably at 65 if you invest just $25 per week. It’s as simple as knocking the money you spend on your morning latte into your Roth IRA instead.
But even 10 years later, it’s significantly more difficult to get ahead of the curve — your $25 per week is closer to $50.
And if you let it go too long, you may find yourself halfway through your career with absolutely nothing saved for retirement. It’s (unfortunately) far from unheard of: Almost half of American working-age households have zero retirement savings.
But luckily, it doesn’t have to be that way.
Here’s Why You Should Start With a $5 Investment
Even if you have your retirement plans situated, investing can help you meet your savings goal for another big, long-term project, like buying a home or taking a travel sabbatical from work.
But if you’re like me, you have no idea where to start, and it can be intimidating.
I mean, I couldn’t have told you the difference between a Roth IRA and a 401(k) two months ago, and I still only have a vague, eighth-grade knowledge of “the stock market.”
Luckily, I found an easy, automatic way to start investing before I lose any more time.
Stash is a mobile app available for both Android and Apple devices, and it makes it super simple to (finally) take the dive into investing, even if you don’t have a whole lot of cash to spare.
You can start investing with as little as $5.
And get this, they’ll match your $5 investment with a free $5. Winning!
You’re already up 100%
We also love that Stash spells everything out in terms you can understand, so you’ll be able to invest your money how you want, without re-enrolling in Economics 101.
In fact, thanks to Stash, I finally understand exactly what an ETF is.
Here’s a sample of its crystal clear explanation:
“Most people start Stash with small amounts of money. We like it that way, because it’s affordable, and less intimidating. But if you’ve only got $100, it’s risky to buy one share of a stock — that’s putting all your eggs in one basket. It’s better to spread investments around.
“Unfortunately, buying stock in 50 different companies at around $100 per share will run you $5,000. Yikes! Instead, you can invest in a fund that includes 50 companies. One of the most popular types of funds are Exchange Traded Funds, or ‘ETFs.’”
Most of Stash’s investments are ETFs.
But since about 1,800 ETFs are available to the consumer, Stash curates the best ones and categorizes them by your preferences and goals. It gives them understandable names that actually mean something to people like you and me.
For example, instead of “PIMCO Enhanced Short Maturity Active Exchange Traded Fund,” you’ll invest in what Stash has called “Park My Cash.”
You also won’t have to spend exorbitant management fees for the privilege of investing your money in a way you can understand.
Stash charges just $1 per month until your account reaches $5,000, at which point you’ll be charged 0.25% of your account balance per year.
And did I mention your first month is free?
How to Start Investing with the Stash App
You know you’ve got $5 you’re waiting to turn into junk — so why not turn it into more money instead?
You’ll start by linking your bank account and choosing how risky you want to be with your investment. You’ll have the chance to use a calculator to see how much money your investments might make, depending on your choices.
Once Stash can verify and connect with your bank account, you’ll see your initial deposit of $5 or more come out in two to three business days.
And when it does? Congratulations: You’re officially an investor!
But this is just the beginning. Now, you get to decide exactly where your money goes as it slowly multiplies.
Under the “Discover” tab, you can explore new funds to invest your Stash in based on your goals, desires and beliefs.
For instance, you might want to invest in green energy sources or cybersecurity, or tech companies that simplify your life by building the devices you love.
Stash makes it simple to identify which ETFs best support your personal ideals — and provide the best, risk-managed potential for returns.
You can also skip the themed accounts and simply let your stash accrue with the Moderate Mix — a recommended, conservative-risk ETF.
Or take a page out of a professional’s book and pick “Follow the Experts” or “Roll with Buffett.” What better way to feel good about where your funds are going?
No matter what, you’ll get just enough information to feel confident your investment funds are going where you want, and have the best chance to get you what you want — without the confusing detail.
Automate Your Investments and Profit in the Long Term
Once you’ve gotten started, stay on a roll: Even with the magic of compound interest, that $5 isn’t gonna do much by itself.
Good thing Stash actually gives you another $5 just for clicking this link and signing up. But keep it going.
Set up “Auto-Stash” to pull a set amount from your bank account at regular intervals, so you can help your investments grow over time.
You can add to your existing ETF choice or diversify your investments by buying new shares. You do it all from your cell phone, with the simple security of a 4-digit PIN.
Plus, you can make free money by helping your friends get on the right financial track? You’ll earn $5 apiece for each friend you refer, up to $100, to be deposited directly into your Stash.
I know I was thrilled to find a way to finally start investing, and then automate it so I didn’t have to think about it.
For now, I’m just investing $5 per week — I’m working on building a plush emergency fund before I worry too much about my long-term goals.
But I love that the Stash app helps me set it and forget it, and the ticking clock sounds less scary and more comforting.
Your Turn: Are you investing yet? What are your long-term money goals?
Disclosure: Here’s a toast to the affiliate links in this post. May we all be just a little richer today.
Jamie Cattanach (@jamiecattanach) is a freelance writer whose work has been featured at Ms. Magazine, BUST, Roads & Kingdoms, The Write Life, Nashville Review, Word Riot and elsewhere. She lives in St. Augustine, Florida.
The post Why You Definitely Need to Invest $5 in the Stock Market Right Now appeared first on The Penny Hoarder.
source The Penny Hoarder http://ift.tt/2m9jwsV
3 Teaching Gigs Hiring Now That Don’t Involve an Actual Classroom
Ask any disgruntled student — the classroom isn’t always the best place to be.
Even for teachers. And it doesn’t have to be.
When you think of teaching, you probably imagine the big desk with an apple and a whiteboard behind it (I still imagine chalkboards, but that’s so 1990s). However, if you have education credentials you can put your degree to use working in a variety of settings — including at home.
Yes, you can teach in your pajamas. It’s a thing.
Or, if you’re passionate about working in the classroom and interacting with your students face-to-face, you might consider a remote teaching job as a side gig to bring in some extra income. Summer break is right around the corner.
3 Companies Hiring for Online Teaching Jobs Right Now
For teachers — or former teachers — looking for a change of scenery, check out these three work-from-home jobs below:
1. Full-Time Online Tutors with ArborBridge
ArborBridge, an Los Angeles-based educational services firm, is looking for tutors to work with students around the globe on SAT and ACT prep and various academic subjects.
This is a full-time position that’ll work for early birds, night owls or anyone who’s very flexible with their days, as tutors will have to accommodate students in multiple international time zones (especially Asian and European time zones).
Tutors can set their own schedules but must be available five days a week, including one weekend day.
In addition to up to 30 hours a week of private online teaching sessions, tutors will be responsible for completing administrative tasks (like logging lesson notes and corresponding with families) and attending monthly online professional development workshops and trainings.
Candidates must have a bachelor’s degree and at least three years of experience as an SAT/ACT tutor. Preference will be given to applicants who can teach Advanced Placement math and/or science subjects. Access to reliable, high-speed internet is a must.
ArborBridge offers a base salary of $47,500 to $70,000 for this position, depending on experience. Tutors can also earn quarterly and annual bonuses, and they have the option to enroll in the company’s health insurance plan.
If you’re interested in this job, visit ArborBridge’s careers page to apply.
2. Evaluator with TestBest
TestBest, a Silicon Valley-based education technology company, is looking for certificated teachers to work as test prep evaluators.
The company tapped Kaplan Test Prep to develop an app to provide students studying for the TOEFL, or Test of English as a Foreign Language, with feedback on their practice test performance.
For this remote job, evaluators will assess written and spoken responses to TOEFL practice exams and submit feedback of the students’ performance on a strict deadline.
Candidates must have a 4-year degree and either teaching certifications or a master’s degree in an applicable area. Access to a reliable computer and stable internet connection is also a requirement.
TestBest is especially looking for candidates who have experience teaching or tutoring for the TOEFL or other standardized tests and who have experience with international students (Chinese students a plus). It also looks good if you work well with mobile applications and online education platforms.
Evaluators will be paid per completed evaluation and can earn up to $25 for each one. The amount of compensation is dependent upon the amount of work done.
TestBest advises this position requires a part-time commitment. Those contracted for the job can set their own schedules.
3. Various Positions with Study.com
Study.com has over a dozen remote contractor positions open for teachers interested in creating lesson plans, tutoring or simply writing about education. Contractors creating K-12 lesson plans need to have a master’s degree and teaching experience. While a degree is a plus for online tutors, one is not required.
Candidates who want to create education- and career-related articles as freelance writers must have a bachelor’s degree or equivalent work history as well as experience in online content writing or editing.
The site is also hiring numerous work-from-home jobs for professionals who can create lesson plans to help people studying for professional certifications in accounting, architecture and interior design, criminal justice, engineering, finance, health and nursing, or real estate. These contractors need to hold professional certifications themselves and have experience in their field.
All remote positions allow contractors to choose their own schedule. Compensation is project-based, and pay is distributed twice monthly.
Your Turn: Would you ditch the classroom to teach from home?
Nicole Dow is a staff writer at The Penny Hoarder. She tutored back in the day but, sadly, it was all unpaid, volunteer work.
The post 3 Teaching Gigs Hiring Now That Don’t Involve an Actual Classroom appeared first on The Penny Hoarder.
source The Penny Hoarder http://ift.tt/2nt6f38
Tired of Your Commute? Apply for These 5 Work-From-Home Jobs Right Now
Working from home is the dream: no commute, no mystery leftover lunch and you can spend 9-5 in your underwear (we won’t judge).
So today we found five work-from-home jobs that will give you the freedom you crave to take a nap during your lunch break.
1. Merchant Success Guru at EasyStore
EasyStore helps users create and manage their own online selling platform.
In this work-from-home position, you’ll serve as the point of contact for the merchants selling through EasyStore. You’ll answer questions via phone, email or chat to help solve user issues.
Your duties will include facilitating the growth of a loyal customer base, identifying growth opportunities for merchants’ businesses and some miscellaneous administrative duties in the marketing and sales department.
The company stresses that if your background is close enough to the job description, you’re probably a good fit — as long as you’re resourceful, creative and a problem-solver.
Basically, you’ll do the extra leg-work that some customers are just too lazy busy to do. EasyStore even admits that “Google is your best friend.”
If you’re interested in becoming a guru, you can apply here.
2. Customer Support Agent at Scribd
With more than 80 million active readers, Scribd is a digital media platform offering access to “the world’s largest collection of e-books, articles, sheet music and other written works.”
The company is looking to hire an “enthusiastic, knowledgeable, tech-minded” remote customer advocate. You should be a problem-solver and have strong written and verbal communication skills as you’ll be chatting with customers all day. And, as anyone who has ever worked in customer service will tell you, you should be a patient soul.
The full-time position might include weekend or evening hours as the company works to extend their hours of support to keep up with their quickly-growing user base, but the hours are flexible.
You should have a high school diploma or the equivalent and some prior work experience in a customer support role.
The benefits are sweet: Along with the already pretty generous medical, dental, vision and 401K, Scribd will pay for you to take a course on the side to broaden your interests or further your education.
You can apply here to join the Scribd team!
3. Brand Agent at Skybridge Americas
Skybridge Americas does something I tried to break down into simpler terms but couldn’t. The company “supports client investments in their brands by proactively managing customer touch points to ensure a consistent, positive experience.”
As a customer service brand agent, you’ll answer calls and emails, respond to customer questions and complaints, and handle and document program inquiries.
A minimum of a high school diploma or equivalent is required, and there are some pretty specific technical and home office requirements — but if you’ve worked from home before you probably already have some of the equipment.
Pay is $10 an hour plus commission, with an increase after 6 months, and training is virtual and fully paid.
After the initial training, you’ll work 20-28 hours per week, including every other Saturday and Sunday.
You can apply here to become Skybridge Americas’ next customer service brand agent.
4. Customer Care Specialist at HostPapa
HostPapa is a web hosting platform for small- to medium-sized businesses.
As a remote customer care specialist, you’ll communicate with customers via chat, email and phone, field questions and offer solutions. You’ll also be responsible for installing, maintaining and troubleshooting content management systems.
You should have web-hosting experience and be pretty tech-savvy, and, above all, should simply enjoy helping people.
Perks of working for HostPapa include flexible scheduling, paid education and flexible vacation time.
If you’re a tech-savvy, problem-solving people-person, you can apply here.
5. Travel Planner at Remote Year
Remote Year sounds like a pretty neat platform: The company coordinates year-long work-travel experiences for people with an insatiable need for adventure (and income).
In this position you’ll work remotely — so it’s okay if “from your couch” is more your speed.
As a travel planner, you’ll work with a team to plan and execute optimal travel routes — by land, air or sea. You’ll search, plan, calculate and book optimal travel routes, assist in pre-travel arrangements and manage travel change requests.
A background in the travel industry, hospitality, customer service or material travel experience is required. You should be organized, an effective communicator, confident dealing with numerical data and have a firm grasp on Excel. Bonus points if you’re proficient with written Spanish!
If this sounds like a company you’d love to be a part of, you can apply here.
Your Turn: Are you looking to make the switch to a work-from-home job?
Grace Schweizer is a junior writer at The Penny Hoarder.
The post Tired of Your Commute? Apply for These 5 Work-From-Home Jobs Right Now appeared first on The Penny Hoarder.
source The Penny Hoarder http://ift.tt/2n7mDp5
Apple is Hiring Reps to Work From Home — and the Perks Include Discounts!
If you love iPhones, iPadss and and all things Apple, you won’t want to miss this work-from-home job opportunity.
It comes with a bunch of great benefits, including a generous employee discount.
Apple is hiring AppleCare At Home Advisors to work remotely, helping customers fix technical issues with their Apple products.
You can apply from anywhere in the United States as long as you meet a few requirements:
- A minimum of two years of technical troubleshooting experience
- Customer service and support experience
- Availability to work between the hours of 7 a.m. CST and 10:30 p.m. CST, including weekends and holidays
- Available for 5-6 weeks of training on a fixed schedule, possibly including weekends
- Minimum typing speed of of 40 WPM while talking to customers
- A quiet workspace
- High-speed internet
Job benefits include “competitive” pay, time off, and participation in the employee stock plan.
AppleCare At Home Advisors are also eligible for an employee discount on a variety of Apple products — including iPads, iPhones, iPods and Apple Watches.
If this work-from-home job sounds too good to pass up, have a look at what Apple at Home Advisors do all day, then head over here to apply.
Your turn: Does working for Apple sound like a cool job…or your dream job?
Lisa McGreevy is a staff writer at The Penny Hoarder. She’s always on the lookout for work-from-home jobs to share with readers so look her up on Twitter @lisah if you’ve got a hot job tip.
The post Apple is Hiring Reps to Work From Home — and the Perks Include Discounts! appeared first on The Penny Hoarder.
source The Penny Hoarder http://ift.tt/2mINlAP
These Work-From-Home Jobs are Perfect for People Who Love Being Outdoors
If you’re into Tough Mudders, Warrior Dashes or organized school events, you’ve probably run across Active Network at some point.
The company sells event and activity management software that helps athletic organizations plan their events.
Active Network is growing its team of work-from-home agents. Two different types of jobs are available right now, both with multiple openings across the country.
If you like camping, hunting or fishing, one of these jobs may be right up your alley.
1. Work at Home Reservation Agent
This seasonal position wraps up in early September 2017, so it’s perfect for people going back to school or pursuing other commitments next fall.
It’s a part-time position, requiring a minimum of 25-29 hours of availability, including weekends.
As an Active Networks reservation agent, you’ll help inbound callers make camping reservations at campgrounds and state parks across the country.
Scripted material, policies, guidelines, and procedures will help you work with callers to troubleshoot issues and answer questions.
2. Work at Home Hunt & Fish Licensing Sales Representative
This seasonal position runs runs a little longer than the Reservation Agent position and ends in early October 2017.
It’s also a part-time position that requires a minimum of 25-29 hours of availability, including weekends
You’ll be assisting callers from across the country with questions hunting and fishing licenses, and troubleshooting customer issues.
Both Jobs Require:
- A quiet work environment
- A land-based phone line
- High-speed internet connection
- Desktop computer monitor
- Excellent communication skills
- Minimum typing speed of 20 – 30 wpm
- Basic computer skills including email, instant messaging and basic internet searching
I’ve reached out to Active Networks to find out what the starting pay is for these jobs. I’ll update this post when I hear back from them.
If you’re hired for this job, you’ll be eligible to participate in the company’s corporate wellness program, ACTIVEx, and its ACTIVE Advantage program, which offers discounts on activities, products and travel.
Apply now to be a Work at Home Reservation Agent or Work at Home Hunt & Fish Licensing Sales Rep.
More work-from-home job listings can be found at the Active Network careers page – just search for “work from home” in the keywords.
And if you want to see more cool jobs, just follow TPH Jobs on Facebook to get the latest jobs-related posts!
Your turn: Which Active Network Work-From-Home jobs sounds good to you?
Lisa McGreevy is a staff writer at The Penny Hoarder. She’s always on the lookout for work-from-home jobs to share with readers so look her up on Twitter @lisah if you’ve got a hot job tip.
The post These Work-From-Home Jobs are Perfect for People Who Love Being Outdoors appeared first on The Penny Hoarder.
source The Penny Hoarder http://ift.tt/2neYVYn
JCPenney Coupons are Back: Here’s How I Just saved 70% in 5 Minutes
You know that thing you really need but are never willing to buy?
It almost feels like a dirty secret.
Perhaps it’s new bath towels that don’t smell like mildew, more clothes hangers so you can get rid of the textile pile on your floor, a toothbrush that isn’t frayed, socks without holes…
Me? My dirty little secret is a feather pillow.
I got it back in elementary school for Easter. Yeah, I had a random Easter Bunny. Also, yeah, gross; go ahead and shame me.
But I love it. And I don’t feel like adding a $50 pillow to my Target bill. I also forget to add “pillow” to my weekly shopping list.
It’s time, though. Not only are the feathers wafting out each time I make my bed, the mites I imagine roaming around in that thing are starting to creep into my dreams… (I’ve washed it, though, I swear.)
Also, even more important to this Penny Hoarder? Right now, I could save more than $25 on one of those fancy memory foam pillows if I buy it from JCPenney.
How I Can Save Nearly 70% Off My Next JCPenney Purchase
You don’t have to buy a pillow. That’s just what I’m buying. You can buy anything you want — in store or online — and save big.
All you have to do is some casual deal-stacking — or combining a handful of deals to get the lowest possible price.
Follow me through this process.
For a pillow, I’d ideally opt to nab one at the store so I can test the squishiness factor, but I’ve missed that boat one too many times, so online it is.
I found a memory foam one (“The Dream”) for $40 on JCPenney’s site. It has 215 reviews and an overall 4.5 rating. Sold.
It’s already 50% off, driving the total price down to $28.94, including shipping.
Time to start deal-stacking.
Follow these easy steps:
- Check the online hub for JCPenney coupons. There’s an online-only extra 10% off (15% for JCPenney credit cardholders) valid until April 1. Use the code FUNDEAL at checkout.
New price: $25.94
- That’s perfect because Swagbucks has another awesome deal you can add (available until March 31). When you spend at least $25 shopping JCPenney through Swagbucks’ shopping portal, you can take an extra $10 off and earn 12% cash back.
(Click the JCPenney icon on this page then continue your normal business.)
New price: $15.94
Cash back: $1.91
Now, if you don’t want to pay for shipping, you can opt to pick the item up in the store and save another $5, driving your total down to about $10.
Yup. That’s a $10 memory foam pillow that I’ve put off buying for the last decade of my life…
My total savings? About $33. Plus, I earned $1.91.
If you want to snag this awesome deal before the end of the month, check out Swagbucks then find the item you’ve most dreaded shopping for…
Your Turn: Have you tried deal stacking? Tell us how much you’ve managed to save at once!
Disclosure: This post contains affiliate links. By checking out this featured content, you help us bring you more ways to save!
Carson Kohler (@CarsonKohler) is a junior writer at The Penny Hoarder. Her coworkers shamed her for having an old pillow, so she’s getting her new one delivered to the office. Nap time, anyone?
The post JCPenney Coupons are Back: Here’s How I Just saved 70% in 5 Minutes appeared first on The Penny Hoarder.
source The Penny Hoarder http://ift.tt/2n14Myc
Hertz is Hiring Work-From-Home Sales Agents — and You’ll Get a $150 Bonus
Sales jobs suck sometimes, but you might feel more in control of how much money you make.
Plus, sometimes you find companies that offer a wealth of bonuses — like Hertz.
Right now, Hertz is hiring work-from-home sales specialists. Per the job listing, Hertz promises a $150 sign-on bonus, plus a $500 guaranteed bonus in your first month of bonus eligibility.
You can also get paid up to $1,100 in bonuses your first year.
Another “bonus”? You’re working from home!
Hertz is Filling Work-From-Home Sales Jobs
As an Express Rent sales specialist you’ll work 40 hours a week.
Hours of operation are 11 a.m. to 9:30 p.m. all week, so that’ll be the window you need to make yourself available. Overtime is possible, too.
You’ll receive a “competitive” base hourly pay, as well as all those bonuses. (I reached out about base pay and will update this article as soon as I hear back.)
As noted, you’ll be working with the Express Rent sector of Hertz. This allows customers to walk up to a kiosk at any number of locations — airport or otherwise — and select a rental car through a live video chat with a representative.
And surprise! That’s your face on the video.
Hertz is looking for someone driven by sales, as you’ll hustle to sell additional products like extended coverages, upgrades and fuel options.
You’re Qualified to Work in Sales at Hertz if…
Hertz is looking for someone who has at least a year in sales and customer service. You should be able to operate a computer and type at a decent speed.
Because you’ll be on video, you should also be able to “project a professional appearance,” as well as engage with a variety of customers.
You should understand maps and driving directions, too.
Training is approximately five weeks long and all virtual.
If you’re interested in this work-from-home opportunity, here’s the complete job listing. You can apply right online, too
If you’re not into video chat or sales, our Facebook jobs page shares a ton of other opportunities.
Your Turn: Will you apply for one of these work-from-home sales jobs?
Carson Kohler (@CarsonKohler) is a junior writer at The Penny Hoarder.
The post Hertz is Hiring Work-From-Home Sales Agents — and You’ll Get a $150 Bonus appeared first on The Penny Hoarder.
source The Penny Hoarder http://ift.tt/2mlE7zq
This Startup Makes Cute Photo Books — and It’s Hiring Work-From-Home Reps
In the world of posting photos on social media for likes, printing photos might seem like a lost art.
News flash: It’s not — it’s just evolving. Chatbooks is one of many companies approaching technology head on, letting you print memories from your new iPhone.
More important news flash: The company is hiring work-from-home, part-time customer support troops in Texas, Utah and Washington.
What You’ll Do as Customer Support for Chatbooks
This job is part time and lets you work from home (yes!). You’ll work 20-25 hours a week, and pay starts at $10 an hour.
You should have these key personality traits: be personable, motivated, empathetic, computer literate and a natural wordsmith.
You don’t need prior customer service experience, but it’s considered a plus. You should be able to handle any customer. Think: From the kid down the street who is probably a computer hacker to the grandmother who just wants to make a book for her grandkids.
You also need to be familiar with technology.
Nope, you don’t need to be a computer scientist, but you should be fluent in the languages of “iPhonese” and “Androidese,” which include words like gif, app, screenshot and hyperlinks.
You’ll need to have one of those devices, too — one that’s not cracked and hanging on by a wire (aka no more than 2 years old).
You should also have a reliable computer that doesn’t require a lot of Geek Squad CPR (Computer Program Resuscitation — OK, I totally made that up.).
Also, know your way around a keyboard.
“Being a lighting-fast typist is a must; although we will also accept race-car fast, or even just mass-transit fast — if you can do it with a smile,” the posting states.
In addition, you should be able to pass an eighth-grade math test. (IDK, I’m kind of intimidated.)
How To Apply for This Work-From-Home Job
First, you might want to invest in an $8 Chatbook. The company wants someone who loves Chatbooks and is familiar with the app.
You also need to be a U.S. citizen, fluent in English and be at least 16 years old.
You also need to completely fill out the application. “We will not review any applications that are not 100% complete,” is the second line in the posting.
You can find the application here. You’ll fill out your contact information and list your availability to work.
You’ll be guided through five sections of questions that cover your previous work experience, schooling and “fun” (think: your favorite hobby). You’ll also need to take a basic math test and upload your resume.
We estimate the application will take less than an hour to complete, so get started and good luck!
To check out more work-from-home jobs, follow our Facebook jobs page!
Your Turn: Are you applying to this job?
Carson Kohler (@CarsonKohler) is a junior writer at The Penny Hoarder.
The post This Startup Makes Cute Photo Books — and It’s Hiring Work-From-Home Reps appeared first on The Penny Hoarder.
source The Penny Hoarder http://ift.tt/2mIo5ee
Not Updating Your Smartphone’s Software? Congrats, Hackers Love You!
I’m not trying to be dramatic (OK, only a little), but machines are running our lives. And because machines are running our lives, crooks have wised up to this new reality and are taking advantage.
Through technology, hackers can now uncover more information about you than you probably know about yourself — which is pretty scary.
Sure, we take measures to safeguard ourselves. We install computer protection software, memorize a dozen different passwords and answer questions about our mother’s childhood best friend’s first pet’s country of origin every time we want to check our bank statements.
Unfortunately, regardless of these precautions, our information is never truly safe.
Seriously, even something as innocent as a craving for a beef-and-cheddar sandwich can put you at risk.
So, in a world where we’re so incredibly concerned about cybersecurity and identity theft, one thing remains a mystery: Why, oh why, do we not take better measures to secure our smartphones?!
Smartphone Users are Putting Themselves at Risk
Smartphones come with a number of built-in security measures, from lock-screen access codes and fingerprint scans to regular software updates that combat the ever-evolving security breaches.
However, according to a recent report from Pew Research Center, only 22% of smartphone owners surveyed said that they use a lock feature and update their software and apps whenever the option is available.
The rest is a mixed bag. About 75% of users say they use a screen-lock feature but only install software updates when it’s convenient. (Ugh, that’s me.) Around 10% of smartphone users forgo the software and app updates altogether.
Only 3% of smartphone users say they don’t update their software or use a lock feature to secure their phone. But with an incredible 251 million smartphone users in the U.S., even a small percentage is still a pretty high number.
Smartphone users 65 and older are more than twice as likely to not take advantage of any of these safety features.
Does This Mean I’m in Trouble?
Not necessarily, but it can’t hurt to be more diligent about your own cybersecurity.
If you engage in risky smartphone behavior — like online banking or shopping, especially over a public Wi-Fi network — you should take steps to ensure the safety of your personal information.
Steve Weisman, professor at Bentley University and author of the fraud and identity theft blog Scamicide, recently offered some tips to help smartphone users secure their devices and accounts.
First, he says, set up a strong password to lock your phone. What does strong mean? Well, if you use a four-digit passcode, it probably shouldn’t be 1-1-1-1. Opt instead for a random series of numbers or better yet, the thumbprint scan. Find more tips for creating secure passwords here.
Only download apps from secure web stores, such as the App Store or Google Play, and be aware of what permissions you are granting these apps.
“Too often,” Weisman notes, people “may unwittingly give permission for the app to make costly phone calls, access your contact list or know your location.” If that info gets into the hands of the wrong person, it could lead to some scary consequences.
Weisman also warns that you should install software and app updates whenever they’re available, noting that cybercriminals often use malware to take advantage of people who haven’t done so.
Another great tip? Weisman recommends setting up a “remote access feature” on your phone. That way, if it gets lost or stolen, you can lock the phone and delete all your sensitive data before anyone gains access.
And whatever you do, never, ever hand your information over to a Nigerian prince, no matter how charming or desperate to send you a million dollars he may be.
Your Turn: Do you use the lock feature on your smartphone?
Grace Schweizer is a junior writer at The Penny Hoarder.
The post Not Updating Your Smartphone’s Software? Congrats, Hackers Love You! appeared first on The Penny Hoarder.
source The Penny Hoarder http://ift.tt/2neCouC
Insurance hike rule change starts today
Motorists will see their premiums rise by as much as £100 a year after changes to compensation payout rules take force today.
Source Moneywise http://ift.tt/2n6FyjV
Questions About Retirement, Cookbooks, REI, and More!
What’s inside? Here are the questions answered in today’s reader mailbag, boiled down to summaries of five or fewer words. Click on the number to jump straight down to the question.
1. Upside down on older vehicle
2. Buy house now or later?
3. REI annual dividend question
4. Common knowledge versus perspective
5. Parents without any retirement planning
6. A very hard choice
7. Retiring with less than $3M
8. Eating in airports
9. Side gig brainstorming
10. Unwanted storage locker contents
11. Value of cookbooks
12. Whiteboard uses
Yesterday, I spent several hours doing a “spring cleaning” of the garage. It’s still not in tip-top shape, but at least now you can access everything in there.
Our garage isn’t heated, and during the winter months, it often becomes a clearinghouse of “things to deal with later,” which means that there eventually comes a day in the early spring where those things to be dealt with later have to be dealt with.
Thankfully, that means that such things get done on a nice spring day where it’s a pleasure to be outside. It just looks overwhelming when you open up that garage door and realize the number of things to be done.
Q1: Upside down on older vehicle
My boyfriend is a sales rep and spends the day seeing clients. According to company policy, his vehicle must be above a certain price point (currently $26k) and because of the equipment he must have on hand, it needs to be an SUV type vehicle. He averages 35,000 miles each year. He does receive a monthly travel stipend to cover expenses (car payment, mileage, insurance) however, it’s not quite enough to cover the entire amount.
He currently has a 2012 Honda Pilot with 162,000 miles. He is considering trading it in because of the high mileage but he is upside down in the vehicle.
Because of company requirements, I don’t ever foresee a time when he would not be upside down on a vehicle but we’re not sure what the solution is.
– Lisa
With those kinds of requirements, you’re basically forced into a pretty rapid replacement cycle on an expensive vehicle. There’s nothing you can do about that.
The thing is, if you buy such cars used, you’re going to be at the trade-in point within just a few years. Even buying such a car new will put you at the trade-in point in five or six years. That’s just due to the requirements of that job.
So, what can you do about it? For your immediate problem, you have to throw every dime you can to get out from under this upside down loan. At the very least, when you get rid of this car, the remaining loan has to go away, and the only way you’re going to get there is with some belt-tightening on your spending.
For the next car, get one with a very short term loan – as short as possible. That means high payments, of course, but that’s the only path you really have to avoid being in a constant underwater situation with the job requirements involved. Once you pay off that car, start socking away an amount equal to that car payment into savings and try to hold out on a replacement. Ideally, you’ll be able to pay for most of – if not all of – that replacement in cash.
Q2: Buy house now or later?
My wife and I currently own a 2 bedroom house and have a one year old daughter with our second baby due in July. We want to upgrade to a home more suitable for a larger family but have a pretty large amount of debt. Our original plan was to pay off debt completely (with the exception of our mortgage and auto loan) and then sell our house and use the money we make from the house as a small down payment on the next house.
With that said, we are also concerned with all the “experts” expecting interest rates to go higher. My question is, would it be smarter financially to continue paying down our debt and miss out on lower interest rates or would it be a better idea to sell the house now and purchase our next house before rates go higher but still have our debt?
Our debt is as follows…
Mortgage: $218,000 (could sell for $260,000)
Auto Loan: $26,000
Student Loan: $8,000 @ 5%
Personal Loan: $5,000 @ 10%
Credit Card 1: $7,400 @ 0%
Credit Card 2: $2,000 @ 0%
– Mike
Never, ever make a financial move you’re not equipped to make right now out of some fear of “higher interest rates” predicted by “experts.” Don’t buy that house until your financial situation is ready for it.
But what about “higher interest rates”? Here’s the thing – if mortgage rates go up, then it’s going to have a large cooling effect on house prices. People can only afford so much for monthly payments and if interest rates go up, that doesn’t mean monthly payments on new mortgages are going to rise to match. What it means is that housing prices are going to drop somewhat to make up the difference.
Housing prices are so high right now because they’ve adjusted to handle 4% mortgages. Current prices can’t and won’t hold if mortgages are at 6%, because people won’t be able to make the payments. Prices on almost all houses will drop at that point.
Q3: REI annual dividend question
I got about $24 for my annual REI dividend. I used to shop at REI regularly for hiking stuff but now I have pretty much everything I need. What’s a smart way to use it?
– Tony
For those unfamiliar, the outdoor supply store chain REI offers a “dividend” program to its customers if they become members of their coop. Lifetime membership in the coop is $20, but REI often offers special programs where you get a $20 coupon if you buy a membership, so it’s essentially free.
The big perk of this membership is that they give you an annual “dividend,” which usually amounts to store credit equal to 10% of the amount you spent there in the last year. This would mean, of course, that Tony is sitting on $24 in store credit at REI without anything he really needs or wants and is unsure how to spend it.
The first thing I’d point out is that REI’s dividends don’t expire until just after the new year two calendar years after you receive it. So, if you have a 2017 dividend, it doesn’t expire until January 3, 2019. You have plenty of time to decide what to do with it.
If I were you, honestly, I’d just let it ride for a while. Do your usual outdoor stuff this year and watch for something that you might need, particularly an item that you use up or break. Use that credit to replace or replenish that damaged or used-up item.
Q4: Common knowledge versus perspective
I first started reading The Simple Dollar back in 2008 and 2009. A friend sent me a long list of money saving tips from the site and I really got some use out of them. Back then, I hated your articles that weren’t specifically practical. If it didn’t include things to do to save money I skipped them and thought they were a waste of time.
I just realized that now I am the complete opposite. I hate the specifically practical articles and skip them and I like the ones that are about psychology and philosophy and setting goals.
I think it has to do with maturity. At first all I cared about was things I could do right now to make my situation better and I really didn’t think beyond the bills at the end of the month. If I could pay them everything was good. Now I want to build a life where I don’t think about bills ever again and you just have to think differently.
Thank you for writing both kinds of articles and stuff in between to guide me through that journey. You have a reader for life!
– Tim
I don’t think it’s a matter of maturity so much as it is a matter of time that you spend thinking about personal finance. The more time you spend thinking about it, the more that the basic money saving tips seem almost obvious. They jump out at you. You also begin to realize that when you do those things, you end up with more money left behind and you begin to think about what to do with that money.
That’s not a maturity thing, really. That’s just about consistent focus. That same exact thing happens when you focus on anything for a while. One of my closest friends is a pastor and has studied the bible for many, many years. When I ask her what stands out to her when she reads some scripture, she’s thinking about things in a completely different way that I do, but when she starts talking about it, I realize that she’s completely just assuming an understanding of things I’m just now discovering for the first time.
For most people, the first time they focus on money is in a moment of need and they’re focused on tactics that get them out of that moment of need. For some, that’s enough, and that’s okay. For others, there’s a desire to replicate that success and see where it leads, and I think it eventually leads to a more philosophical approach for everyone.
I try to write articles that hit every step in that journey, from practical tactics to save money on your food bill and how to escape from near-bankruptcy due to your debts to philosophical approaches to building the life you want and altering your mindset, and everything in between. I don’t always succeed in that regard, but it’s something I think about every day when I write and every time I brainstorm article ideas. I wish I could magically help every single person in the world achieve whatever their financial goal is, whether it’s just being able to pay the bills this month or achieving financial independence, whether it’s being able to buy their kid the thing they want most for their birthday or having a secure retirement, whether it’s being able to figure out why they never have any money left over or figuring out what career would bring them more personal peace and security.
We’re all on a journey. The journey isn’t the same for everyone, and we’re all at different stages, too. Hopefully, everyone can find something that helps them take that next step.
Q5: Parents without any retirement planning
I’m hoping you can help me give my mom some financial advice. She and her husband have always been awful with money. She’s 66 and collecting social security after barely working enough in her life to even qualify. My step dad is 56 and I doubt that he has a penny saved toward retirement. He works a very physically demanding job that he won’t be able to continue doing as he gets older. My mom inherited about $150k from her aunt who passed away recently, and she’s asking me what to do with it. I’m pretty savvy when it comes to my family’s financial planning, but I don’t know what to tell someone who is in/close to retirement and doesn’t know whether they’re investing for the long or short term. I’ve toyed with the idea of encouraging her to put it towards paying off her mortgage, bringing the total they owe down to about $90k, but I don’t know if that would be her best bet. Any thoughts?
– Kevin
First of all, both paying off the house and putting it away for retirement are good moves. Neither one is a misstep. What you’re essentially asking is what the “better” of the two moves is, and that’s very difficult to tell without a crystal ball showing us the future. Since we don’t have that, we have to guess.
Given their situation right now, my feeling is that the best thing that could be done with the money is to put aside enough for a few months of living expenses in a savings account somewhere, to be used only when your step dad loses his job and has to either fully retire or find other work, and then use the rest to pay down that house.
The best thing that could be done for them before your stepdad retires is to eliminate as much of their debt as possible so that their monthly bills are as low as they can possibly be when retirement comes around for them. Saving for retirement won’t increase their monthly income enough to cover a house payment.
Q6: A very hard choice
I am struggling with the pros and cons of a disruptive expense and I hope that you’ll shine some light on this.
My older sister and I have talked about going to France together for many years, since we were little girls in fact. We wanted to spend a week in Paris and then a week touring wineries together.
As dreams like that go, it didn’t happen. She got married, then I did. We sometimes go on vacations together but nothing outside of places we can both drive to.
My husband and I are on a very strong financial path. We have no debts, about $180K each in retirement savings, and about $100K in additional savings. We spend far less than we earn and intend to retire somewhat early. We are both in our early 40s.
A few weeks ago, my sister told us that she has stage IV breast cancer. She’s 48 years old and her husband is 47. She estimates that she has about nine months to live, of which six will be pretty healthy.
My husband immediately said that we are going to go on the trip to France as soon as humanly possible and that we’re paying for the whole trip. I was okay with that until I began to see how much it would cost. To do things in the way we’ve always talked about and paying for all four of us would eat up a significant portion of our additional savings and almost definitely postpone my future plans.
I feel like my practical and sentimental sides are at war here. I don’t want to lose my sister. Aside from my husband she is the best friend I have ever had. I also don’t want to lose the future I have planned with my husband that we have been working on for so long.
What should we do?
– Mary
You go on that trip, no question. That’s the entire point of saving for the future. If you don’t do this trip, you will regret it for the rest of your life. This is one of those key life moment things.
I normally offer the sanest, most down-to-earth financial advice around, but the entire point of following such practical financial advice is so that when life puts you in situations like this, you can simply do what your heart is telling you to do. And I can tell from this note that your heart needs this trip. Go. Have the time of your life. Laugh with your sister and go to fifteen wonderful little Parisian cafes and drink too much wine in Burgundy and see the most beautiful things you’ve ever wanted to see together. Do it while she can still do it with as much health as possible.
You can make up that savings later on. Yes, you might have to work another year. Guess what? That year is well worth it in comparison to the feeling of leaving something like that undone in your life. This is one of the big things that you can’t skip.
Go. Call your sister now and tell her that you’re doing this, no arguments. Start getting the time off from work now for all of you. Get on a plane, go, and forget the rest of your life for two weeks. This is something your sister needs and something you need, too, and something you will be glad you did every single day for the rest of your life.
I changed a few details of the above letter to obscure some privacy aspects, but left enough intact for the core of the story to be clear and for my answer to perfectly match the original question.
Q7: Retiring with less than $3M
I am 29 years old and make $45,000 per year. I have been playing around with retirement calculators and I am trying to figure out my target number that I would need to retire. My math is that it is somewhere around $3 million. However I talked to my older brother about this and he says I am insane and anyone should be able to retire on $1 million. Thoughts?
– Jim
I think you’re both right and that you’re merely talking about different timelines. Your brother isn’t factoring in the 36 years of inflation that will happen between then and now.
Right now, a person should be able to retire on $1 million with a modest lifestyle. I would happily do this. However, 36 years from now – when you are 65 – $1 million won’t cut it. We will have gone through 36 years of inflation and the purchasing power of a dollar will have declined.
If we assume 3% inflation, $1 million today is worth the same as $2.9 million in 36 years in terms of purchasing power. The lifestyle that a person could have today with $1 million in retirement is about the same as the lifestyle that a person in 36 years would have with $2.9 million in retirement.
It’s pretty obvious here that the “$2.9 million” matches up to the $3 million you’re talking about, while your brother is spot on with the $1 million today.
Q8: Eating in airports
How do you keep food costs low for a family of five in an airport? About once a year we fly across the country to visit family and the food costs add up so fast! We flew back in December for a week and wound up spending more than $200 on food!
– Jeremy
I have flown with my children just a couple of times, but each time Sarah and I planned ahead for food. We simply packed a whole lot of inexpensive snack foods and water bottles in our carry-on bags.
Before we left each time, we packed five empty water bottles, a few small flavor additives for the water, several simple sandwiches (I think they were peanut butter and banana), a bunch of granola bars, some applesauce packs, and some cheese sticks and cured meats. We basically filled up one pocket of my backpack with these items. We filled the water bottles at a water fountain after getting through security.
Then, whenever a child indicated that they were hungry, we gave them one of the items in there. Whenever someone was thirsty, they grabbed their water bottle and had a drink.
We probably had $20 in food items in the backpack when we left and the items got us through two flights (with a layover in the middle) without buying any more food (the flights we’ve done were from Des Moines to Seattle).
Just pack a lot of little snacks that people will like and that can be stored at room temperature, and don’t forget plenty of empty water bottles.
Q9: Side gig brainstorming
Really inspired by your article on side gig business planning! Great stuff and has inspired me to think about my own ideas! How do you pare down a big list of side gig ideas before writing full plans for each? I have a list of 25 or so ideas and not sure how to cut them down!
– Susan
My first pass would be to eliminate anything I didn’t feel very passionate about. Often, it’s passion for some aspect of the side gig that will get you off the couch and working on the project.
My second pass would involve initial clarity about what you’re going to make and how you’re going to sell it. If the path isn’t quickly clear to you, eliminate that idea.
My third pass would be to trim any ideas that rely much at all on the performance and choices of others. If it relies a lot on some kind of gatekeeper – like someone at a publishing house deciding that your book is awesome or someone at a record company signing your act – then I’d skip that one. Stick with ones where as much of the project is under your control as possible.
Q10: Unwanted storage locker contents
When my grandfather died, we put all of his possessions into a storage unit with the intent of going through them later in the summer once the house was sold. Well, as things happen, the stuff has been sitting there for two and a half years. I just got another bill for the storage unit and I talked to my relatives about it and none of them wanted to do anything with the stuff. They all said it was mine. I don’t really want any of it either. What’s the best way to just get rid of the stuff?
– Sara
If you just want to get rid of the stuff, just post on Craigslist that you’re giving away the contents of a storage locker from 9 to 10 AM this Saturday and give the address and locker number. Show up there about 8:30, unlock it at 9, and get out of the way. After an hour, there won’t be much left. People will take practically anything if it’s free.
You might want to do a “first pass” through it first to see if there’s anything you’d really want to keep or anything that might have significant value that you’d want to handle selling on your own.
If you’re wanting to make maximum money off of this… you’re going to be investing a lot of time, and unless there’s a bunch of treasure in there, it’s not worth the time. You’re probably better off just doing a first pass, then unlocking the door and letting people have at it.
Q11: Value of cookbooks
What are your thoughts on the value of cookbooks in an era where there are millions of recipes online? Are they still worthwhile?
– Andrew
I think that a well-curated and well-written cookbook, especially one with technique and other ideas beyond mere recipes, is incredibly worthwhile, at least as compared to the value of a random recipe from a site like AllRecipe. Many of the recipes on those types of recipe clearinghouses are of questionable quality.
That doesn’t mean that every cookbook is great. It just means that great cookbooks still have a role.
I often find myself buying cookbooks at yard sales and the like. If it doesn’t click with me, I’ll pass it on, but I’ll be the first to admit that I have a pretty healthy cookbook collection.
In general, I view cookbooks as reference books and I don’t mind having reference books around. There still isn’t a digital version of a good reference book that matches the convenience of having a cookbook with a bunch of bookmarks in it spread out on a table as I make dinner.
Q12: Whiteboard uses
You have mentioned before that you have a whiteboard in your kitchen. What do you use it for? Meal lists?
– Stephen
We have a large whiteboard on a wall right next to our kitchen. On that whiteboard is a meal plan and rough calendar for the week.
On Saturday or Sunday, Sarah or I will plan out the coming week on the whiteboard. We’ll basically just make a weeklong calendar and in each day slot, we’ll mention what we’re having for dinner that night along with everything that’s on our family calendar for that day/evening, along with any special meal prep notes or other important things that need to be remembered on that day.
We basically live by this whiteboard during the week. Sure, this could be done electronically, but this format enables everyone in the family to see it easily and use it without worrying about apps or calendar syncing. It just works well for us.
Got any questions? The best way to ask is to follow me on Facebook and ask questions directly there. I’ll attempt to answer them in a future mailbag (which, by way of full disclosure, may also get re-posted on other websites that pick up my blog). However, I do receive many, many questions per week, so I may not necessarily be able to answer yours.
The post Questions About Retirement, Cookbooks, REI, and More! appeared first on The Simple Dollar.
Source The Simple Dollar http://ift.tt/2mMjbh8
Woodford's new fund opens today
The latest fund from Neil Woodford, probably one of the best-known British fund managers today, is now open for investors. Called CF Woodford Income Focus, it will aim to deliver high returns.
Source Moneywise http://ift.tt/2mMuIwA
Four in five women shun investments due to lack of understanding
An insight into the nation’s savings habits reveals men and women have different attitudes to investing versus holding money in cash.
The study of 2,000 adults conducted by Selftrade from Equiniti reveals that just one in five (19%) women hold investments, compared to a third (34%) of men.
Source Moneywise http://ift.tt/2n6v3wQ
OPENING BELL: Banks, energy companies take stocks lower
Source Business - poconorecord.com http://ift.tt/2ml9wBN
W-What? Here Are the Differences Between a W-2 and a W-4
The IRS really loves numbers.
It would be easier if the agency’s taxpayer forms had names that described what they’re for, but those are rare in IRS-land.
Instead, the IRS seems to randomly name all its forms in ways that make sense to its agents (I hope!) but mean little to the rest of us.
W-4s and W-2s are two forms that commonly confuse taxpayers.
They are related but serve two entirely different purposes. Let’s take a look at what they do and why they’re important.
What’s a W-4 Tax Form?
Whenever you start a new job, you’ll find a W-4 lurking somewhere in the hiring packet.
You complete this form to let your employer know how much of your wages you want withheld from your paycheck to pay your federal taxes.
Just how much you’ll want to withhold depends on a number of factors, including whether you’re married, have children and file your taxes as head of household.
The IRS knows figuring out withholding is a bit confusing, so every W-4 has this worksheet attached to it.
The worksheet explains the withholding options — also called allowances — taxpayers are entitled to.
For instance, a single person with no kids might only claim one allowance, while a married person with five kids who files as head of household may choose to claim seven.
Count the number of allowances that apply to you, and fill in that number on your W-4.
Neither the agency nor your employer expect you to do a bunch of math to calculate how much money you need to withhold from your paycheck. Your employer takes care of all that.
Note: You are not required to claim allowances on your W-4. It’s perfectly legal to claim zero.
Why Would I Claim Zero Allowances If I’m Eligible For More?
Tax law is weird, and W-4s are no exception.
If you claim zero allowances, your employer will withhold the maximum amount of taxes from every paycheck.
- Pro: Because you’ll likely overpay your federal taxes, you’ll probably get a hefty tax refund the following year.
- Con: You’re giving the government an interest-free loan — that’s extra money you could invest or put in an interest-bearing account.
If you claim one or more allowances, your employer won’t withhold as much money from each paycheck for federal taxes.
- Pro: Bigger paychecks!
- Con: If you miscalculate, you may owe taxes at the end of the year.
It’s tough to walk the line between having just enough money taken out of your paycheck to avoid a tax bill and having so much taken out that you’re not making the most of every dollar you earn.
It’s always a good idea to get professional tax advice when filling out your W-4 so you can make the best decisions for your circumstances.
What’s a W-2 Tax Form?
A W-2 is the W-4’s kissing cousin.
Your employer should mail you your W-2 no later than Jan. 31 each year.
It contains detailed information about how much you made the previous year, how much your employer withheld in taxes, and an assortment of other information you’ll need to complete your federal tax return.
You’ll receive a W-2 from each employer you worked for during the previous year.
Be sure to check each W-2 carefully to make sure your name and Social Security number are correct. Errors in this information can be costly and difficult to correct after you’ve filed your taxes.
W-4s and W-2s may sound alike, but they serve very different but important functions around tax time, so it’s important to know the difference.
Your Turn: Do you like to have the minimum taken out of your taxes each paycheck, or do you prefer getting a big tax refund?
Lisa McGreevy is a staff writer at The Penny Hoarder. She likes bringing you this information, but she is not a tax preparer, and this is not legal tax advice.
The post W-What? Here Are the Differences Between a W-2 and a W-4 appeared first on The Penny Hoarder.
source The Penny Hoarder http://ift.tt/2nJHbSJ
401(k) Vesting: What It Is and Why It Matters
You’ve almost certainly heard that if you’re saving for retirement, taking full advantage of your 401(k) employer match should be your first step. That match represents an immediate 50% to 100% return on investment, which is better than anything you’ll find anywhere else.
It’s the standard advice because it’s good advice. Making sure you’re getting the full employer match should almost always be the first step in your retirement savings plan, no matter what other options you have available to you.
But there’s a catch to this advice that’s often overlooked and it’s called vesting.
If your 401(k) has a vesting policy, those employer contributions may not be yours right away. And while that doesn’t often mean you should skip your employer match, it can make that match less valuable than you think.
What Is 401(k) Vesting?
If your 401(k) has a vesting schedule, that simply means that you have to work for the company for a certain amount of time before any employer contributions to your 401(k) are 100% yours.
For example, your company might have a policy in which 20% of your employer contributions vest each year. That means that if you leave your company before you’ve been there at least one year, you won’t get to take any of those employer contributions with you. After one year, you’d get to take 20% of the value of those contributions with you. After two years, it would be 40%, and after five years you’d have 100% ownership of all the money your employer has contributed to your 401(k).
It’s important to note that we’re only talking about employer contributions here. Contributions YOU make to your 401(k) are always 100% yours, though of course the value of those contributions will rise and fall with the market.
It’s also worth noting that there’s a single vesting clock for all employer contributions. Once you’re 100% vested, ALL employer contributions are 100% vested no matter when they were made, including all future contributions. There isn’t a separate clock for each individual contribution.
But the point here is that it might be a year before any portion of those employer contributions are yours, and it may be up to five years before they’re completely yours.
Which means that your employer match may not be quite as attractive as it initially seems.
How to Find Your 401(k) Vesting Schedule
The best way to find out if your 401(k) has a vesting schedule is to ask your human resources representative for a copy of your 401(k) plan’s summary plan description and to search through it for the section on vesting. Your company’s policy will be spelled out there. You might even find that you’re 100% vested in all employer contributions right away.
If you have any questions about it, you can ask your HR representative for clarification. You can also ask them for your official employment start date so that you know how long you’ve been with the company, and therefore how far along the vesting schedule you are.
Another good source of information is your most recent 401(k) statement, which should show you how much of your 401(k) balance is attributable to employer contributions. You can then multiply that amount by your current vested percentage to figure out how much of that money would be yours if you left the company today.
For example, let’s say that your total 401(k) balance is $40,000 and that $10,000 of that is attributable to employer contributions. If you’re currently 40% vested, that means that:
- The $30,000 attributable to your own contributions is 100% yours.
- $4,000 of the $10,000 attributable to employer contributions is yours.
- If you left the company today, your 401(k) would be worth a total of $34,000.
How Vesting Should Factor into Your Retirement Savings Plan
So the big question is this: When should your vesting schedule prevent you from prioritizing your employer match over contributing to other retirement accounts?
The short answer is rarely. Because let’s say that your employer has a relatively stingy matching policy where they only match 50% of your contribution, and those contributions vest 20% every year.
Even in that situation, staying with the company for one year means that you get a 10% return on your investment just from your employer contribution (20% of 50% is 10%). Given that long-term returns from the stock market are expected to be in the 7% to 8% range and always come with some uncertainty, a guaranteed 10% is a very good deal.
And let’s say that it doesn’t work out with that company, and you don’t end up staying there for even a full year. You wouldn’t end up getting any match, but you’d still get all the other tax benefits of a 401(k). It wouldn’t be ideal, but even the worst-case scenario is good.
Still, there are some scenarios where you may want to save money elsewhere first.
For example, the IRS allows companies to wait three years before any of their contributions vest, at which point their contributions immediately vest 100% (see “cliff vesting” here). If that’s your company’s vesting policy, and if you don’t plan on staying with the company for three years, and if your 401(k) has low-quality, high-cost investment options, then it might be worth prioritizing an IRA or health savings account ahead of your 401(k).
Your vesting schedule might also be worth considering if you want to change employers. It certainly shouldn’t be the driving factor, but if you’re just a couple of months away from a significant increase in your vested percentage, it may be worth sticking it out a little longer.
- Related: Five Signs You Need a Career Change
Are You Vested?
In most cases, your 401(k) employer match is a good deal even with a vesting schedule in place. You are almost always entitled to something after one year with your company, and in that case the risk is low and the reward is high.
Still, it’s worth understanding your vesting schedule just so you know exactly how valuable that employer match is. Better to find out now than to be surprised later on when you get less than you thought.
Related Articles:
- What to Do If Your 401(k) Stinks
- 401(k) Contribution Limits for 2017
- A Complete Beginner’s Guide to 401(k) Plans
- What to Do With Your 401(k) When You Change Jobs
Matt Becker, CFP® is a fee-only financial planner and the founder of Mom and Dad Money, where he helps new parents take control of their money so they can take care of their families. His free book, The New Family Financial Road Map, guides parents through the all most important financial decisions that come with starting a family.
The post 401(k) Vesting: What It Is and Why It Matters appeared first on The Simple Dollar.
Source The Simple Dollar http://ift.tt/2nJtAuX
The Real Grown-up’s Guide to Filing Taxes (No Help From Mom Required!)
I have an embarrassing secret: Until a few years ago, my mom did my taxes.
That’s right. An adult woman with a real job and several side gigs relied on her mother to do her taxes every year.
One spring, I knew it was time for me to cut the cord and learn just how complicated this income tax stuff really was. I’ve been doing my own taxes ever since.
Figuring out which tax preparer is right for you can be complicated. Do you stay at home and file your taxes with the help of software or venture out to visit a real-life accountant? And what about all those storefront tax-preparation services?
We’re here to break down all your tax-preparation options so you can make the right choice this tax season. After reading this, maybe you too can stop asking your mom to file your taxes for you.
1. Software
Examples: TurboTax, TaxAct, TaxSlayer, QuickBooks, H&R Block at Home
You’re probably familiar with the idea of completing your taxes online or with software. The biggest perk of using a website or software is they don’t cost much. In fact, many allow you to file your federal tax return for free.
And if you make less than $64,000 a year, you can file your federal return for free online using the IRS’s free file software. (There are some free state filing options available through the IRS program, as well.)
These tax-preparation websites and programs make taxes easy because they walk you through each step of the process, asking you questions to determine which credits you might qualify for or what deductions you should include. All you have to do is plug in some numbers, and voila! Your taxes are done.
“TurboTax starts by asking you simple questions about yourself,” according to the company’s website. “Then, based on your answers, we’ll help you find deductions and credits unique to your situation. Our team of CPAs keeps our products up-to-date with the latest tax laws, so we know exactly what to ask.”
Of course, you’ll have to pay more if you want bells and whistles, such as audit protection or extra guidance on rental properties. TurboTax, for example, ranges from $0 to $114.99 depending on the level of service you want. Those prices are for federal returns only — you’ll have to pay more to file your state returns.
If you’re an introvert, a website or software program means you won’t have to leave the house or share your personal financial information with another live human. (PS: Want to boost your income? Check out these 15 solitary ways for introverts to make money.)
“These online options combine the benefit of doing your taxes from the comfort of home with the step-by-step guidance you might get from a traditional accountant,” said Aaron Lesher of Hurdlr.
Of course, you won’t necessarily be working with an expert tax preparer if you go this route, which means you’ll miss out on their years of experience and tax knowledge. Some services do offer expert help via web chat or a phone help line, if you’re willing to pay for an upgraded version.
If your financial situation is super-complicated, you may be able to navigate your taxes using a website or software. But if you’re concerned about accuracy, visiting with a tax expert in person might give you more peace of mind.
2. Services
Examples: H&R Block, Jackson Hewitt, Liberty Tax Service
Storefront tax-preparation services have popped up all over the country — you can even get your taxes prepared on your next trip to Walmart. Consider storefront tax preparers the next level up from using a software or a website — you’ll pay more, but you’ll also work with a live human.
The folks doing your taxes at these storefronts have varying levels of experience and credentials. Some are enrolled agents, meaning they’re recognized as tax experts by the IRS and the U.S. Department of the Treasury. Others undergo company training.
H&R Block, for example, requires its employees to take a 60-hour income tax training course. For people who already have experience doing taxes, the company requires them to take and pass an exam. The company keeps its tax preparers up to date on the most current tax rules with over 250 continuing-education courses.
“A typical client is served by an H&R Block tax professional with more than a decade of experience and hundreds of hours of training,” according to the company’s website.
Fees will vary with the complexity of your financial situation, but the average fee H&R Block charged last year was around $220, according to spokesman Gene King.
Jackson Hewitt’s fees start at $48, but the average cost is about $230, according to chief tax officer Mark Steber.
Don’t forget — the IRS lets you deduct tax preparation fees, and many of these companies offer promotions to get you in the door. Jackson Hewitt, for example, will give you $100 when you ditch your old tax preparer and work with its tax experts instead.
These storefront tax preparers typically offer convenient evening and weekend hours, so it’s easy for you to drop by. Though you might only think of these national chains at tax season, many are open year-round for offer tax advice, just like an accountant or a private tax expert.
Plus, many storefront locations offer tax-preparation guarantees, meaning if they weren’t 100% accurate, they’ll pay your penalties and interest.
“We also guarantee that you’ll get the maximum refund you deserve, or we’ll refund your tax preparation fees,” said Steber.
3. Accountants
Examples: certified public accountants, private enrolled agents, tax attorneys
Not all accountants prepare taxes. And not all private tax preparers are accountants — some are attorneys and enrolled agents. But for the purposes of this post, we’ve lumped those folks together in one category.
They’re also likely the most expensive option available (though not always). As with storefront providers, the fees these accountants and private enrolled agents charge depend on the complexity of your tax situation. More tax forms means work for them, which translates to higher fees.
You could be paying anywhere from $176 to $457, according to national averages calculated by the National Society of Accountants. Those numbers also fluctuate by location. Keep in mind that some accountants and tax preparers won’t charge you a dime for an initial consultation — you’ll only pay if you decide to use their services.
You also could get charged extra for disorganized or incomplete files ($117 on average!), so make sure you keep good records and bring all of the relevant documents with you to your appointment.
“Tax returns are getting more complicated every year, and with so many hidden tax deductions and constantly changing tax laws, using a professional to prepare your taxes can pay off,” says John Ams, the group’s executive vice president. “They can ask questions to identify potential tax savings that automatic software programs can miss and reduce mistakes.”
Plus, they can explain exactly what’s going on with your tax situation and why — you won’t just mindlessly enter numbers in boxes when you visit a private tax preparer, says Abby Eisenkraft, an IRS enrolled agent, accredited tax advisor and tax preparer, retirement planning counselor and the author of “101 Ways to Stay Off the IRS Radar.”
You may also want to seek out a private tax preparer if you have a specific financial situation or work in an industry they specialize in. I know an enrolled agent, for example, who used to be a police officer and now specializes in tax questions related to law enforcement. Other firms specialize in tax questions from freelancers or artists.
Ryan Frailich, a financial coach and planner for Deliberate Finances LLC, suggests visiting an accountant if you have moved beyond the easy-to-understand tax stuff, are a small business owner or are planning to have a child soon.
“Birth or adoption of a child comes with a lot of expenses, but also a lot of changes in taxation that people need to speak with a professional to understand,” Frailich said. “How to change withholdings, what tax credits are available, the implications of college savings vehicles and more are all things to consider at that point, and the answers aren’t necessarily the same for everyone.”
Questions to Ask Yourself
Since everyone’s tax situation is different, it’s hard to provide one-size-fits-all advice on how to get your taxes done. Generally speaking, the trickier your taxes are, the more help you’ll want doing them, but even that’s not true for everyone.
You’ll want to weigh a number of factors against one another when determining whether to file online, use a software program, visit a national chain or work with a private preparer.
What is your time worth? Sure, you can save a buck by doing your own taxes, but could you use that time for more profitable endeavors? Will you miss loopholes and tax credits that someone else might know about? Are you an introvert who hates leaving the house and cringes at the thought of sharing financial information with someone else?
Either way, keep in mind that the folks selling all of these options are trying to earn your business. Treat offers that sound too good to be true with a healthy dose of skepticism, and make sure you look out for your own tax needs first and foremost.
Your Turn: What’s your tax plan for the coming year?
Sarah Kuta is a writer with a penchant for weekend thrifting, furniture refurbishment and good deals. Find her on Twitter: @sarahkuta.
The post The Real Grown-up’s Guide to Filing Taxes (No Help From Mom Required!) appeared first on The Penny Hoarder.
source The Penny Hoarder http://ift.tt/2nVfu93