الجمعة، 6 يوليو 2018
How to Score Even Bigger Savings When You Shop Amazon Prime Day Sales
This year, along with discounts on its popular home electronics like Echo, expect Amazon to promote its house brands. AmazonBasics luggage is already on the sale’s lineup, as is furniture from Amazon’s Rivet line.
Much of Amazon’s food, vitamin, baby and beauty lines are already 30% off for Prime members in advance of the event.
Amazon will launch products that are new to Prime for a limited time, with some big names like Coleman, Britax and Tarte cosmetics coming to the site with exclusive offers.
Deals will start at noon on the West Coast and 3 p.m. on the East Coast on Monday, July 16, and extend through the end of the day (Pacific Standard Time) on July 17.
What to Expect From 2018 Amazon Prime Day Deals
This year, Amazon will offer the following to Prime members:
- Use your Amazon Prime Rewards Visa Signature card at Whole Foods and Whole Foods Market 365 stores on Prime Day to get 10% back on your purchases up to $400. This offer is valid from July 14 to July 17. That’s double what you can normally get back on Whole Foods purchases with the Amazon Prime credit card.
- Whole Foods shoppers will also find in-store deals on Prime Day.
- Install Amazon Assistant to get $5 off a Prime Day order of $25 or more. After installing the browser extension, shop by clicking through the browser icon. You can do this now to get your credit, but you must redeem it on physical products before July 23. Your discount will show at checkout.
- Search for items with camera features in the Amazon app to get deals on select items. This one is tricky: You have to try the AR view, camera search, bar code scanner or package X-ray features within the app during Prime Day to unlock deals — and those deals will change every six hours.
- First-time customers can get up to $20 off Prime Now delivery. Use code 20PRIMEDAY to get $10 off your first two orders of Amazon or Whole Foods products. The offer expires at the end of the day on July 17, and your discount expires on July 31. You must spend at least $10.01 to redeem your discount, and delivery fees (based on order size) still apply.
- New Amazon Music Unlimited users can get four months of on-demand music for 99 cents.
- New Kindle Unlimited subscribers can access three months of the service for 99 cents. Buy a Kindle book before Prime Day to get a $10 credit to use during the event on ebooks, print books or Audible titles.
How to Keep Calm While You Get Your Prime Day on
Not an Amazon Prime member? Sign up for a free 30-day trial membership now to get access to all the Amazon Prime Day deals. Just remember to mark your calendar to cancel your membership after the big event if you don’t want to pay $119 per year for the two-day shipping service.
It’s important to go into Prime Day without grand plans for spending (and saving). While Amazon is going to discount a ton of prices, it doesn’t mean you need those items right now. You should still do your research and comparison shopping before the big day.
Amazon is offering one perk to help you plan ahead: Starting a week prior to Prime Day, you can add items to your list in the Amazon app to get a sneak peek at their sale prices. Do this to plan purchases ahead of time and resist additional impulse buys on Prime Day.
Lisa Rowan is a senior writer at The Penny Hoarder covering the retail and grocery industries.
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.
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The #1 Account All Wealthy People Have (That You Probably Don’t)
Can you imagine your little old traditional or Roth IRA is worth millions of dollars?
It happens for some people.
According to the US Government Accountability Office (GAO), 791 individuals have IRA balances between $10 million and $25 million, while 314 are worth over $25 million.
That was in 2011. There are probably many more today.
Former presidential candidate Mitt Romney reportedly had an IRA worth in excess of $100 million.
What’s their secret?
Many wealthy people use true self-directed IRA (or 401k) accounts to accumulate multimillion-dollar retirement portfolios.
These are unlike the self-directed plans most people have.
Instead, the wealthy use self-directed retirement plans to invest in non-traditional investments.
They’re not available name brand brokers, banks, and robo-advisors.
Instead, they’re small, highly specialized trustees, concentrating on a small number of very high-profit asset classes.
What exactly is a self-directed IRA (or 401k)?
- To be self-directed, a retirement account must be completely within your control.
- You choose the trustee who will hold the account, as well as the specific investments to fill it.
- This is typically the case with traditional and Roth IRAs and can also be done with any type of IRA, such as a SIMPLE IRA or a SEP IRA.
- A solo 401(k) plan can also be used(that’s a 401(k) plan for someone who’s self-employed and has no employees except a spouse, who can also participate in the plan).
One of the disadvantages of traditional and Roth IRAs is the very low contribution limit of $5,500 per year (or $6,500 if you’re 50 or older).
But if you’re self-employed, you can set up either a SEP IRA or a solo 401(k) which allow annual contributions of up to $55,000 for 2018.
For self-directed retirement plans for the wealthy who are “in the know,” those plans are just the beginning.
It’s how they use them that makes all the difference.
The typical IRA investor limits his or her investments to stocks, bonds, funds, and sometimes options or real estate investment trusts (REITs).
Not the wealthy. A true self-directed retirement account is all about alternative investments, the kind the public rarely hears about, and almost never acts upon.
How do you set up an alternate self-directed retirement account?
True self-directed retirement accounts work best if you’re self-employed.
An employer-sponsored plan won’t give you the ability to invest in the kinds of alternative investments that produce multimillion-dollar accounts.
But if you’re self-employed, you have complete control over the account, including where it’s held and what kinds of investments you keep in it.
Multimillion-dollar retirement accounts are not built by oversized contributions.
Just like the rest of us, the wealthy can contribute no more than the law allows.
You must fund the account in the usual way, by contributing directly to the plan.
The plan then invests in the alternative investments of choice.
Any investment profits or gains must be retained in the retirement plan.
Distributions taken prior to turning 59 ½ will be subject to ordinary income tax, plus the 10% early withdrawal penalty, just like any other type of retirement plan.
If you’re interested in several different alternative investments, you may need to set up retirement accounts with more than one trustee.
Why?
Because many alternative trustees don’t offer the type of diversification available with major brokers.
For example, you may not be able to hold gold bullion with a trustee who specializes in real estate.
What can you invest in? What can’t you invest in?
Let’s start with what you can’t invest in – it’s actually a shorter list.
According to the IRS, the only items you can’t include in an IRA are life insurance and collectibles (artwork, antiques, numismatic coins, gems, stamps, etc.).
But those few prohibitions leave the field wide open.
According to Kirk Chisholm of Innovative Advisory Group, a firm specializing in self-directed retirement accounts for the wealthy, you can also invest in the following:
- real estate
- farm land
- horses and livestock
- water rights
- physical gold, cryptocurrencies, tax liens, private mortgages, and more.
One of the more popular retirement plan investments by the wealthy is private company stock.
The stock is purchased within the plan when it has relatively little value.
Once the company goes public, the share price takes off, and the value of the stock explodes, supercharging the IRA.
These are not the kinds of investments you’ll find available in traditional IRA accounts, but that’s exactly why they’re so profitable, as Chisholm explains:
I have seen a lot of interesting strategies that investors have used to create enormous gains inside their IRA. In my experience, the most successful strategies involve the investor investing in an asset they know well. Whether it’s a horse, a house, or private company stock, if the investor is an expert in that asset, they have a sizable advantage over other investors in the market.
Where can you open a true self-directed retirement plan
Seeing how much money the wealthy are accumulating in alternative self-directed retirement accounts, I recently set one up myself.
But it’s not as easy as going online and finding a name brand investment brokerage firm or robo-advisor.
“You will need to find a self-directed IRA custodian that specializes in the asset you want to hold,” reports Chisholm.
He continues to say, “There are approximately 47 custodians and administrators that specialize in alternative investments and each one is different.”
In each case, the trustee specializes in a very specific set of investments, but not usually the type you can find through typical brokerages.
For example, Liberty Trust Company specializes in precious metals.
Firms like The Entrust Group and IRA Express offer a group of alternative investments including real estate, gold, options, hedge funds, limited partnerships, tax liens, private company stock, horses, and international real estate.
Finding a trustee who will work with the type of self-directed retirement account you want will require some deep investigating.
You might start by doing a web search for very specific terms, such as “gold IRA” or “real estate IRA.”
Dangers or pitfalls of alternative self-directed retirement plans
True self-directed retirement plans are more complicated than their more generalized cousins and come with some of the following complications:
Cost.
- Most retirement investors seek low fee providers, like discount brokers or robo-advisors with very low advisory fees.
- You might pay a $5 commission to buy $10,000 of stock that produces a 10% return in one year.
- But with an alternative self-directed account, you might pay a 5% fee on an investment generating 25% in one year. The fees are higher, but so are the returns.
Trustee integrity.
- Popular retirement plan trustees are usually household names which have strong public identity complete with good reputations.
- But there are dozens of true self-directed trustees who aren’t well-known, and may not be trustworthy.
- You should check out any firm with regulatory agencies they report to, and you can also check with popular sources, like the Better Business Bureau and even Yelp.
IRS filing requirements.
- Individual IRA accounts don’t require special forms filed with the IRS. SEP IRA’s are only slightly more complicated.
- Form 5305-SEP should be completed and retained (but not filed), and there may be set up costs since it’s an employer plan.
- A Solo 401(k) requires filing IRS Form 5500 once the plan balance reaches $250,000.
- It may also require administrative costs to set up the plan.
RMDs.
- All retirement plans (except Roth IRAs) are subject to required minimum distributions, or RMDs.
- Distributions must begin no later than age 70 ½, and calculated based on your remaining life expectancy.
- An RMD of 4% of your holdings will produce a $200,000 distribution from a $5 million IRA.
- When added to other retirement income, the tax liability may be substantial.
Prohibited Transactions
This is a pitfall all its own.
Since you’ll be venturing into alternative investments, there’s at least a slight risk of stepping into one.
A prohibited transaction is when you or a related party are directly involved with the management of the investment you’re holding in your IRA.
Here’s what you need to know:
- You cannot be involved in buying, managing, or selling real estate in an IRA.
- In the case of gold bullion, you cannot take physical possession of the metal.
- With a prohibited transaction, the IRS can void the IRA arrangement, making it immediately subject to income tax and penalties.
- Investments must be titled in the IRA and managed by the trustee.
- All funds for asset purchase must be paid out of the IRA, and not personal sources. For example, you can’t purchase real estate as an individual, then move it into an IRA.
Even with the dangers and pitfalls, a truly self-directed IRA is well worth having
With the right alternative IRA trustee and a generous dose of information, it’s possible to navigate the challenges of a true self-directed account.
Most important is to know the specific investment(s) you plan to hold within the account.
The success of an alternative IRA depends on it.
If you have it – or if you have access to it – a self-directed IRA could be your path to tax-sheltered millions.
If not, it’s best to stay with more traditional retirement investment plans.
The post The #1 Account All Wealthy People Have (That You Probably Don’t) appeared first on Good Financial Cents.
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How to Get a Free $5 to Invest in the Stock Market
We’ve got your answer. It’s called Acorns, and it’s an app that lets you start investing without risking big bucks.
And here’s a bonus for our Penny Hoarder friends: Get a free $5 in stocks when you make your first investment.
How to Get $5 From the Acorns Investing App
You can download Acorns for free.
With the app, you’ll start small and stack up change over time with the Acorns “round-up” feature. That means if you spend $18.18 on your connected debit or credit card, for example, 82 cents gets dropped into your Acorns account.
Then the app does the whole investing thing for you. It’s that cool. Now you can brag to your friends, too.
The idea is you won’t miss the digital pocket change — you know, out of sight, out of mind. And those automatic savings stack up faster than you’d think. For example, we reviewed how Penny Hoarder Dana Sitar was able to save at a rate of $420 a year without trying!
The app is free to download, and the service costs $1 a month for balances under $1 million — plus you’ll get that $5 bonus just for starting out.
The sooner you start investing, the sooner your money can start to grow toward your goals.
Tyler Omoth is a senior writer at The Penny Hoarder who loves soaking up the sun and finding creative ways to help others. Catch him on Twitter at @Tyomoth.
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.
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The Top 10 Features of a Successful Mobile Commerce App
Launching a mobile app is a great way to increase sales for your business.
If you already have a live app available for download, you’re headed in the right direction. That’s because your customers are active on mobile devices.
It’s more convenient for them to shop from their phones and tablets because they use these devices on a regular basis.
Yes, you still need to have a web design optimized for mobile users. But that alone won’t be enough.
Having a mobile app will definitely help you maximize your potential revenue.
In the last six months, 62% of smartphone users have used their devices to make purchases. It’s clear people are willing to shop from their phones.
But just having an app doesn’t necessarily mean it’s going to be successful.
There are certain features that successful mobile commerce apps have in common. If you have an app, you need to implement these features if you want to share a similar success.
If you are building an app, make sure you include these features so your app is in great shape to perform well when it finally launches.
I’ve narrowed down the top 10 features of successful mobile commerce apps.
1. Personalization
All the best apps offer personalization to the user. That’s because personalization has many benefits.
Take this information into consideration. These are some of the top challenges faced by marketing professionals:
As you can see, coming up with tactics to reach customers in a meaningful way ranked first on the list of responses. But personalization can solve that problem. Here’s how.
When a new user downloads your app, they create a profile. Make this process as easy as possible for them by integrating it with their social media profiles.
Now they can set up the account with just a few clicks instead of creating a new username and password and filling in all other information. But once the account is created, regardless of how you do it, you’ll be able to get valuable information about the user.
You’ll discover things such as their gender, age, and location. Now you can modify their homepage and mobile experience to match this information.
For example, let’s say your mobile commerce app sells clothing. You don’t want winter coats to appear on the homepage of someone who lives in Southern California.
You’ll also track information when the customer shops. You can make additional suggestions based on their browsing history and previous purchases.
This will enhance the user experience and increase the chances of them buying from you in the future. It is also a great opportunity for you to upsell and cross-sell your products.
2. Eliminate bugs and errors
If your mobile app wasn’t developed properly, it’s going to have lots of glitches, crashes, and error reports.
This will frustrate a user. Don’t think that’s a big deal? Think again.
Just look at how significant app performance is to your customers—84% of customers agree it’s important:
But what happens when your app doesn’t perform well? Very bad things.
In fact, 48% of mobile users are less likely to use an app if it doesn’t perform well. An additional 34% of people say they’ll use a competitor’s app after a negative experience.
This is obviously bad news for your mobile commerce strategy.
You can’t afford to lose any customers, especially not to your competition. You’ve invested too much time and money into this venture. You’ve got to make sure you prioritize performance.
Don’t get me wrong, nobody’s app is perfect. But you should always be trying to make improvements.
Use beta testers before a launch to help you identify and work out any bugs. Get notifications when something crashes so you can get it fixed as soon as possible.
Come out with new updates on a regular basis. All of this will improve the user experience and make it easier for them to buy.
3. Retail integration
If you have a mobile app in addition to a physical store, have them compliment each other.
Your customers are already using their phones when they shop at your store. Here’s a look at what they’re doing with these devices:
Embrace it. Make this experience even better for your customers.
Start off by offering free Wi-Fi in your stores so that they can easily connect their devices and access the app when they walk in, without using their data plans.
When someone browses for items from within the app, they may be interested in buying a product. But for one reason or another, they may want to check out the item in person.
Have a feature that allows them to save the item to a “want” or “favorite” list. Then, they can check the inventory at local stores to see if it’s available.
When they get to the store, your app should tell them exactly which aisle the product is in to make it even easier for the customer. This will increase the chances that they’ll buy it.
You can have the reverse feature as well. If someone sees something in your store but wants to think about it before buying, they can scan the barcode through the app and add the product to their “want” list. Then, they can purchase it later.
Integrating your app with retail locations also gives more people a reason to download your app in the first place.
It will encourage downloads from customers when they enter your store. More downloads will usually translate to more money for your business.
4. Flash sales and discounts
You want to give people a reason to buy.
What do customers love more than anything? Getting a good deal.
Send them a discount from your mobile app. This could also be part of your strategy to get downloads in the first place.
Check out this example from the Jabong shopping app:
They are offering new users a 20% discount if they make a purchase from within the app.
Once the app is downloaded, you can offer additional exclusive deals not found online.
Have a section designated for items on sale. Run seasonal discounts and build hype for holiday promotions as well.
You can also run flash sales by sending push notifications to app users, but we’ll talk about that concept in greater detail later.
5. Detailed product descriptions
Just like with your ecommerce site, you need to have detailed descriptions of all the products on your mobile commerce app.
However, these descriptions will have a slight variation on your app.
That’s because when you’re viewing items on a mobile device, there is much less room on the screen. You’ll need to have detailed but concise product descriptions.
Cut out any unnecessary words and use bullet points. This makes your descriptions easy to read and scan.
Clearly explain what the product does, without adding unneeded information. Start with a basic description, and then have expandable text that provides more details.
These descriptions will work together with your product images, which we’ll discuss next.
6. Quality product images
As I just said, you’ll need to include images on your mobile commerce app.
Each product should have lots of images. Think about how people shop. If they are in a store, they’ll pick up the item, try it on, or test it out.
But you can’t get the in-person experience of looking, touching, feeling, or tasting a product on the phone. OK, so you probably won’t taste a product before you buy it in a store either, but you know what I mean.
The consumer relies on your product images to get a sense for what the product will look like.
Show it form every angle. Zoom in on the most important features. Give a demonstration.
If it’s a piece of clothing, don’t just show it lying flat on a table. Demonstrate its fit by showing what it looks like on a model.
The ability to see pictures is the most important feature for mobile shoppers.
Your images need to be high quality and professional.
If they are blurry, with a shadow, under poor lighting, or aren’t centered, etc., they’ll make the product look unappealing.
Sure, it’s going to take time to upload lots of pictures for each item. But it’s worth it in the long run because it’ll be easier for you to generate sales.
7. Customer service
No matter how well your app performs, people will still have questions and problems.
It’s inevitable.
When this occurs, you’ll need to be able to handle the situation appropriately. How do they contact your customer service team?
If they are in the app, they should be able to do this directly from the mobile platform. Don’t force them to go to Google or visit your website to find a phone number or email address.
Offer this type of communication from your app.
Live chat. Phone support. Email.
As a result, you’ll be able to boost revenue by optimizing the customer experience.
8. Fast and secure checkout
Your mobile app needs to be smooth. Just like with your website, you’ll want to avoid common navigation mistakes.
It should be easy for app users to find what they are looking for through your search and menu options. Once someone decides they want to buy something, you don’t want them to have to jump through hoops to get it.
That’s where a mobile app stands apart from a mobile website:
With a mobile site and ecommerce site, the shopper has to input all their information each time they make a transaction.
This is tough to do from a mobile device. It’s too easy to make a mistake with the smaller buttons and screen. Plus, people can’t type as fast without a full keyboard.
But with an app, they have to do this only once, and then their purchases in the future can be made with just one click. You’ll have all the necessary info saved to their personal accounts.
Now checkouts will be fast and convenient. This also helps with personalization.
Less friction in the checkout process will lead to lower cart abandonment rates and higher sales.
Here’s something else you need to keep in mind. When you’re storing important information like this, your app needs to be completely secure.
This will protect not only your customers but also your brand. If your app gets hacked or has a credit card breach, it could destroy your reputation.
When you store a credit card on file, don’t display the entire card number. Just show the last few digits, card type, and expiration date. This will prevent someone from accessing the credit card if the user’s phone is lost or stolen.
App users will know you’re protecting their information and be less hesitant to make purchases.
9. Alternative payment options
Your mobile commerce app needs to accept all major credit cards. I don’t care if certain ones charge you a higher processing fee, you still need to give your customers as many options as possible.
In addition to accepting all credit and debit cards, you need to offer more options as well.
I’m talking about alternative payment methods such as:
- PayPal
- Apple Pay
- Venmo
For security reasons, people may be hesitant to enter their credit card information into an app. But they know these other methods help protect their funds, and you don’t want to miss out on those sales.
Plus, you don’t know someone’s personal financial situation. They might have credit cards that are maxed out, or they may have funds on a Venmo or PayPal account they want to use instead.
Further, if one of these payment processing apps is already on their phone, it’s one less step for the user. This is perfect when they’re shopping on the go.
They can buy something with just one click, without having to enter any additional information. This is much easier for them to do than having to take out their credit cards while walking, taking transit, or grabbing a coffee.
10. Push notifications
So you’re running a promotional deal. How will you tell your app users?
Just send them a push notification, like in this example from Charlotte Russe:
This method is better than an email because the message gets sent straight to your customers’ phones, like a text message.
Just be careful with this approach. Sending too many push notifications can be annoying. You don’t want users to turn off your push notifications.
Once that happens, you won’t be able to communicate with them as effectively.
Use them sparingly, but definitely use them. In addition to flash sales, you can send personalized notifications based on customer preferences and location.
Conclusion
You can’t build an app and forget about it. There is always room for improvement.
As a business owner with a mobile commerce app, you need to do whatever you can to increase sales.
There are certain features you can implement that will increase your chances of having success.
Review the list of features above, and figure out which ones need to be added to your app.
Don’t be discouraged or intimidated if your app currently doesn’t have these features. Once you add the ones I’ve described above, I’m sure you’ll see an improvement in your app performance, user experience, and profits.
What are the most profitable features of your company’s mobile commerce app?
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How to Earn a Free $10 on Your Next Trip to the Grocery Store
When you sign up and redeem your first cash-back offer, it’ll slide $10 into your account. Once you hit $20, you can cash out.
There are two simple ways to use Ibotta and snag your free $10.
1. Leave the House and Buy a Candy Bar (or TP)
Download the free Ibotta app. Make sure your preferred grocery store is on the list, then head out.
You don’t need to buy much. Maybe you just want to stock up on toilet paper. Or treat yourself with a candy bar. That’s fine! Check the app to make sure it’s an available cash-back offer on Ibotta, then checkout.
Once you leave the store, snap a photo of your receipt.
You’ll receive the $10 welcome bonus in your Ibotta account within 72 hours.
2. Stay Home and Restock Online
If you don’t want to leave the house — but still need toilet paper — you can still earn the welcome bonus.
Download the free Ibotta app, and search for offers on Amazon. Right now, for example, you can earn 3% cash back on Amazon grocery purchases through the app.
Once the offer processes, you’ll earn 3% back and that $10 bonus.
Once you’re feelin’ good about your free cash, read more about how you can earn cash back with Ibotta — and how one woman earned more than $300 using the app.
Carson Kohler (carson@thepennyhoarder.com) is a staff writer at The Penny Hoarder. She’s used Ibotta for a little over a year and has earned $140 in cash back on travel, groceries and online purchases. Most recently, she snagged $15 when she signed up for Hulu.
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.
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Education versus Job Training and Preparing Your Children
As my two oldest children have started to enter their teen years, we’ve begun giving them more and more responsibilities and more and more freedoms. We’ve also been having lots of conversations about what the future might hold for them. Will they go to college? What might they study? What are they interested in? What do they think they’re good at?
One big issue that’s come up is what exactly the purpose of education after high school is. I don’t want college to be merely something they “do” after high school, but instead it should be something attacked with purpose, and if they don’t have a clear purpose for it, why go?
This led into a conversation of what the purpose of going to college is. My answer? It’s either to get an education or to get job training, depending on what you study. To me, those are distinct things that are both fulfilled by colleges today.
So, what’s the difference between education and job training? I see them in two distinct lights, with neither one being bad.
With education, the goal is to enrich yourself as a person, improve your thinking skills and communication skills, and acquiring a body of knowledge on a subject. This does not inherently give you a strong likelihood of a high paying job and it is not directly training you for any specific job. You may end up in academia or education or another field entirely or find yourself working at entry level positions not utilizing your education at all. While education is fulfilling, it doesn’t lead directly to a great job.
With job training, the goal is to train yourself in the skills necessary to perform a particular job well, ideally one that will earn a good income. This does inherently give you a strong likelihood of a high paying job, as you are being specifically trained for such a job. This won’t necessarily build you into a well-rounded person with problem solving skills like a proper liberal arts education will, but it will prepare you for a job that can earn a solid income.
I tend to think of these two things as overlapping circles, where the overlap includes very basic skills such as basic reading and writing ability and mastery of arithmetic. Those are things that apply well to both a broad education as well as to highly specific job skills.
In general, trade schools as well as university majors that are highly tied to a specific career, like electrical engineering, would qualify as job training. At a trade school and within many university majors that are oriented toward producing people for a specific job type, the focus is on acquiring the skills needed to fulfill the requirements of a particular in-demand job that will likely pay well. While the college/university majors tied to a specific career might sometimes include some general education credits, the focus is pretty clearly oriented toward training for a specific job and career type.
On the other hand, most other university majors would qualify as education. They tend to focus on thinking skills, analysis, and communication skills that can be applied not just to a specific area, but to a broad swath of topics. While education often does provide quite a bit of information in a specific field, it usually provides a lot of tools for being able to absorb and evaluate information and perform solid analysis in many fields. However, that does not come with the specific training that comes with a particular field.
There are some high skill and strongly intellectually demanding jobs that require both extensive job training and a well rounded education. Typically, jobs that involve leadership or demonstrating extensive skills across multiple disciplines or solving multifaceted problems tend to value education quite highly, sometimes even higher than job training. This is why you’ll sometimes see mathematicians and philosophy majors pop up in unexpected fields; they tend to be well educated and able to solve complex problems quite well and thus can sometimes fit quite well into certain jobs, particularly if they have obtained some degree of expertise in a secondary field or some type of job training.
How do you decide which path is right for you or for your child, then? Should your child receive a well rounded education, or should they strive for job training that will put them on a solid career path? It depends on one’s goals in life, really.
So, how is that translating into college planning for my children? Here’s what our planning is coming down to.
During their high school years, we’re going to investigate a lot of careers. I want them to spend their high school years figuring out what things they’re good at (revealed by their schoolwork) and what things they’re excited about doing (revealed by their free time) and then figure out what career options combine the two. This is a process we’re actually starting already, with conversations about what different careers are like.
If they have a career path that they’re drawn to, we’ll follow the educational path to that career, regardless of whether it’s trade school or community college or a four year university. Sarah and I are already saving in a college 529 plan for our children’s education. While we don’t intend to pay for everything, we do intend to help.
It’s worth noting that this doesn’t directly mean that they will go to college. If one of our children decides to become an electrician or a carpenter or something similar, then we will help them on that career path as well. College is not the only answer to the question of what to do after high school.
What about other options, like the military? I include the military in the other options listed above – it’s one of many coming out of high school, and the one chosen should be connected to what he or she wishes to do with their career and life after high school. I would not choose the military as a “default” option, but if that’s a career that my children are interested in, then it’s definitely an option. The military isn’t for everyone and I would not foist it upon anyone without that person having a significant interest.
What if they don’t have a career path in mind when they’re at the time to be applying to colleges? If that’s the case, I will probably encourage them to take a “gap year” and do two things. One, take care of a couple of general education classes at a local community college. Two, spend some time working at a real job. Three, spend some time really evaluating what they want to do with their time.
I will still encourage them to apply to colleges during their final year or two of high school, but simply request that their admission be deferred for a year. They can always choose after that year whether or not they wish to go to college once they’ve had some time to taste the real world and give things some real consideration.
What’s the take home message here? Don’t send your child to college without a plan in mind, and there are other plans besides college when your child graduates from high school. For many plans for the future, college does in fact make a lot of sense, but for many other plans, it doesn’t quite fit. Don’t invest the enormous amount of money required to go to college unless there’s a strong plan associated with that investment.
If you or your child does not have a clear plan near the end of high school, don’t open up your wallet and spend five figures to give them a year or two to figure it out. They can figure it out for free by working in the real world and getting some inexpensive credits out of the way at a community college, then when they figure things out, they can go on to college or trade school or the military or entrepreneurship or something else entirely.
Remember, education is an important and valuable thing, but it doesn’t lead directly to a career. Don’t expect that by going to college and earning a four year degree in whatever interests you that you’ll magically be able to translate your degree into a great job. If you want a more certain path to a great job, then look at college as one of several options for job training and choose the one that matches your skill set and, hopefully, your interest.
This is the advice I’m giving my children about their careers and educational opportunities going forward. Regardless of what they choose, the skills they learn over the next several years – arithmetic, writing, how to solve simple problems, and how to learn things on their own – are valuable lessons that will always serve them well, because such things are the overlap between a liberal arts education and job training. Eventually, those paths start to diverge a little, and the right choice isn’t the same for everyone. Just be sure you’re not spending tens of thousands of dollars on a path that isn’t the right one for you, and if you’re not sure, take it slow.
Good luck.
The post Education versus Job Training and Preparing Your Children appeared first on The Simple Dollar.
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Mind the life insurance gap
Parents are being urged to consider life insurance after shocking new figures reveal that most families are unprotected should the worst happen
Less than a third of people in the UK (30%) have life insurance, which equates to 8.1 million households – significantly less than the country’s 11.1 million mortgaged properties.
Life insurance, which pays out a lump sum on death, can mean that if a family tragedy occurs the finances are taken care of.
Yet this lack of cover, revealed in a study by comparison website Comparethemarket.com, means a bereaved parent could be forced to sell the family home if they cannot afford the mortgage repayments.
Given that mortgage debt and unsecured debt, such as credit cards, currently averages £57,830 per person, many families would be in great financial difficulty should either parent die.
Surviving parents have also lost out on a government benefit paid to help raise children, following a cruel change in the rules made last year. Some are entitled to as much as £100,000 less in benefits to help raise their children as a single parent (see box below).
Mike Preston, the business development director at comparison website Compare Cover, says: “Losing a partner is life-changing and devastating. You have not only lost part of your family, but, thinking practically, you have also lost a member of your family team and someone who may have contributed financially to your household. That’s one of the reasons why it is increasingly important for people to consider protecting their family’s future finances by taking out life insurance.”
The facts
There are several variations on the kind of life cover you can buy. Level term insurance is the most widely known, where you simply select the amount of cover needed and the length of time the policy will run for, usually until the children have grown up and the mortgage is repaid. The policy will then pay out the sum insured if you die before the end of the term.
Alternatively, there is decreasing term insurance. Here, the sum insured reduces over the term of the policy – which means the premiums can be less than for a level term policy. This suits someone looking to clear a specific debt, such as a mortgage, that reduces over time.
Whole of life insurance cover, meanwhile, continues until the policyholder dies. Many people use this to cover smaller amounts such as funeral costs.
The average claim for a term life insurance policy in 2017 was £78,323, with 98% of claims being paid, according to the latest figures from trade body the Association of British Insurers.
The average payout on whole of life insurance was £4,511, with almost all (99.99%) of claims paid.
Finding cover
It is important to establish the level of cover you need. The basic rule is to have enough to pay off your outstanding debts, as well as setting aside a certain amount for dependants too.
It’s important to cover both parents – even if only one works.
Lisa Lloyd, wealth planner at investment manager Sanlam UK, says: “It’s easy to think the person staying at home looking after the kids doesn’t need life cover – after all, they’re not earning a salary.
“What most people forget is that their role has a currency, and if they were to die, then it would cost money to pay someone else to carry out those duties. For childcare, that can amount to a lot – around £25,000 a year for each child. In comparison, the cost is invaluable to insure and protect you and your family.”
Experts recommend that couples buy two single policies to make sure they are both covered, rather than a joint life policy.
Kevin Carr of financial services consultancy Carr Consulting and Communications says: “If anything happened to both lives, both policies would pay out, whereas a joint policy only pays out once. It also means the other life is still insured after a claim, whereas, because a joint policy would have paid out, it would leave the surviving partner uninsured.
“You can also be much more flexible with single life policies and have different amounts of cover and different terms. It’s not always the case that both lives should automatically have the same cover.”
What it costs
Premiums are calculated according to several factors, health being a key element.
A 40-year-old non-smoker in good health can lock into a premium of £8.78 a month for 25 years with insurer AIG, with a payout of £100,000 should they die. For a smoker, the premium on the same policy with AIG would double to £17.56.
Emma Thomson, head of customer care at broker LifeSearch, says: “Health issues aren’t quite black and white. But as a general guide, something like diabetes could increase the cost by 50% to 100% depending on the circumstances. In particular, the type of diabetes, height and weight, age, medication, amount of cover and overall health are all relevant, and often with conditions such as diabetes there can be other concerns, like a high body mass index.”
It’s also crucial to shop around, as there can be huge price differences between insurers.
For example, our 40-year-old non-smoker can get a £100,000 policy for 25 years, costing £8.78 a month with AIG. But at Old Mutual this same policy would cost almost 70% more, at £14.82 a month.
Getting covered
There are several ways to get cover. You can enlist the help of a professional, such as an insurance broker or financial adviser, or go it alone and find your own policy using a comparison website.
A Comparethemarket.com study shows that a quarter of people (25%) bought cover through a broker, and a similar figure (24%) through a mortgage provider, bank or building society. Only one in five (21%) said they chose their life insurance from a comparison site.
If you do choose to find cover yourself, remember to read the terms and conditions of the policy – and be completely honest about your medical history on your application form.
If you’ve never had any major medical issues and you aren’t a smoker, then the risk of you claiming on your life insurance policy will be much lower than someone with existing health problems. As a result, you may well be offered cover without having to take a medical.
If, however, you have disclosed any pre-existing conditions or a family history of hereditary diseases on your application form, you’ve been refused cover in the past or you’re looking to insure your life for a large amount, you may be referred for a medical.
Medicals for life insurance were previously conducted by a GP. But insurers are increasingly using nurses, who can offer quicker and more convenient appointments and come to your home.
Review life cover to make savings
If you already have life cover, you might be able to save money by switching to a newer policy. Over the last few decades the cost of life cover has typically fallen as life expectancy has increased.
You might also find a policy with improved terms by searching online or using a comparison website.
Comparethemarket.com’s life insurance study showed that of those people who have life cover in place already, 79% have never switched provider, meaning they could be paying over the odds without realising it.
Dan Hutson, head of life insurance at Comparethemarket.com, says: “It’s worth making sure you regularly review your policy. Although life insurance tends to get more expensive as you get older, making positive life changes, such as quitting smoking or losing weight, could potentially bring your premium down.”
Women more likely to be financially vulnerable
While three-quarters of women with children are in full or part-time work, their income is typically lower than that of their husband, particularly where they have reduced their hours to spend more time with their children or taken a pause in their career while their children are very young.
This means that should they suddenly lose their husband – and with that, a crucial income – there is a huge financial gap to plug.
The widowed parent’s allowance, a government benefit paid to bereaved mothers or fathers, previously went some way to plugging that gap.
Those bereaved before 6 April 2017 receive up to £113.70 a week (around £493 a month) until they are no longer entitled to child benefit, when the child is 16, or up to 20 if they are in education or training. There was also a one-off tax-free bereavement payment of £2,000.
But under rules introduced in April 2017, a surviving parent is now only entitled to a bereavement support payment – a lump sum of £3,500 followed by 18 monthly payments of £350, a total of just £9,800.
So for two people claiming maximum support in identical situations (the only difference being the date their spouse died), one of them could receive £100,000 less than the other over the course of their children’s upbringing.
Ben Brooks-Dutton, chair of Life Matters, a pressure group that was set up to raise awareness of the needs of grieving families, lost his wife in a car accident in 2012, when their son was just two.
Ben says: “These benefit cuts are callous and unnecessary. The idea that grief is finished after 18 months [– after which the payments cease –] is ludicrous. I had no idea about these benefits until this happened, but they really helped give me more time with my son when he needed me most.”
Ben highlights that women are likely to be more vulnerable to financial crisis should they lose their husband. “Women are more likely to have already reduced their working hours to raise their family, which means a reduced income,” he says. “Some will have stopped work altogether or at least paused their career and have no income at all.”
Charities, support groups and real people coping with the loss of a partner are involved with Life Matters, which has lobbied the government to reverse the cuts and improve the system.
Ben highlights that the bereavement support payment is not paid to the unmarried partners of those who have died. “Unmarried mothers will get nothing. This is something we are pushing for the government to change, as cohabiting households are the fastest growing family type in the UK at the moment.”
Ben concludes: “It’s crucial for all families to protect themselves with life insurance if they can afford it, whatever the future holds for the benefits system.”
Mike Preston of Compare Cover adds: “There is an insurance policy available for most budgets, which gives peace of mind that your family will be financially supported.”
HOLLY THOMAS is a financial journalist who was money editor at the Daily Express and deputy personal finance editor at the Sunday Times
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Your last-minute holiday hacks
Whether you’re jet-setting all year round or about to embark on a summer family break, we’ve rounded up the money-saving tips you need to know to keep costs down
Escaping reality by jetting off on holiday is the perfect way to relax, but these trips can often end up being costly affairs.
To help you cut costs, Moneywise lets you in on its holiday saving hacks. From the cheapest ways to spend abroad to how to avoid airline extras – we’ve got your trip covered.
Avoid airline extras
British Airways and Virgin Atlantic have cut their fares by no longer offering a free checked luggage allowance for their cheapest flights, and on budget airlines you can usually save on your ticket by just carrying hand luggage on board.
Each airline has different rules about bag sizes and weights, so you should find out what these are well before you need to pack – it can be cheaper to buy a new smaller suitcase, or pay in advance to check your bag in, rather than get hit with fees for exceeding the limits at the airport.
Don’t forget, too, that airports in the UK won’t allow any cosmetics or liquids over 100ml in your hand luggage. So either decant your sun cream into a smaller bottle, pack it in any checked bags, or buy it once you’ve gone through security.
And if you’re heading to the airport, the sooner you book your parking or train ticket, the cheaper it will be.
Get insured
Once you’ve booked your trip, get holiday cover straight away. If you need to cancel before your departure date or the airline you’ve booked with goes bust, you won’t be able to make a claim if you’ve got no insurance.
Use an online price comparison website to find the best deal for your needs, but look beyond the cost. Generally, you should only consider policies that include £2 million for medical expenses, £1 million for personal liability, £3,000 for cancellation, £1,500 for baggage and £250 for cash – and watch out for exclusions.
If you think you’ll be going away more than once in 12 months, it’s often cheaper to get an annual insurance policy rather than one for each trip.
Don’t forget, also, to get a free EHIC (European Health Insurance Card) via NHS.uk as well as travel insurance if you’re going to Europe. Without one, your insurer might reject any medical claims you make if you’re ill or injured. You shouldn’t pay for these cards, so avoid any service that tries to charge you. Go to Ehic.org.uk, which takes you to the relevant NHS page.
"A specialist debit or credit card could be the best way to spend"
Have you got your visas sorted?
Many countries require you to buy an entrance visa in advance, and these can take some time to come through. So find out what you need as soon as you can, otherwise you could be turned away at the airport and waste all the cash you’ve spent on flights and more. And ensure you buy these via official channels, as copycat sites will rip you off.
While you’re at it, check your passport is still valid. There’s a premium to pay if you need to renew one in under six weeks.
Use a specialist credit or debit card
A third of holidaymakers withdraw cash when they get to their destination, according to currency card WeSwap – and that could cost them as much as 5%, if not more.
This is down to extra charges added by most banks. You could be hit with a load fee, which is an extra cost to the exchange rate in the bank’s favour, and some providers also levy a flat charge each time you use your card abroad. See the table below for the full list of offenders.
What the big banks charge for using their standard-account debit cards abroad
| Bank | Load fee (added to exchange rate) | Penalty charge (added each time you spend) | ATM fee (added if you withdraw cash) | Cost to spend £50 | Cost to withdraw £50 |
|---|---|---|---|---|---|
| Barclays | 2.75% | N/A | £1.50 | £1.38 | £2.88 |
| Halifax | 2.99% | 50p | £1.50 | £2 | £3 |
| Lloyds | 2.99% | 50p | £1.50 | £2 | £3 |
| Nationwide | 2% | N/A | £1 | £1 | £2 |
| NatWest | 2.75% (min £1) | N/A | 2% (min £2, max £5) | £1.38 | £3.38 |
| Santander | 2.25% | £1.25 | 1.5% (min £1.99) | £2.38 | £3.12 |
| TSB | 2.99% | £1 | 1.5% (min £2, max £4.50) | £2.50 | £3.50 |
Source: Moneywise, 14 May 2018
But using cards isn’t a bad thing. In fact, if you get a specialist debit or credit card to use on your holiday it could be the best way to spend, saving you money by giving you near-perfect exchange rates.
Barclaycard, Halifax, and Santander all offer travel-friendly credit cards with zero fees, though you do need to pay the balance off in full each month to avoid interest charges. With the Halifax Clarity and Santander Zero credit cards you also get charged daily interest on cash withdrawals, so the sooner you clear the card the better.
If you’d rather open a new current account, challenger banks Monzo and Starling also allow to you to spend abroad for free. Both are app-only banks, so you’ll need a smartphone to open an account. See the table (below) for more information.
How much the best debit and credit cards charge for making purchases and withdrawing cash abroad
| Bank | Load fee (added to exchange rate) | Penalty charge (added each time you spend) | ATM fee (added if you withdraw cash) | Cost to spend £50 | Cost to withdraw £50 |
|---|---|---|---|---|---|
| Halifax Clarity credit card | 0% | 0% | 0%, but 18.9%* added in interest until paid off | £0 | 79p** |
| Barclaycard Platinum Travel credit card | 0%*** | 0%*** | 0%*** | £0 | £0 |
| Santander Zero credit card | 0% | 0% | 0%, but 18.9% added in interest until paid off | £0 | £0 |
| Starling Bank debit card | 0% | 0% | 0% | £0 | £0 |
| Monzo debit card | 0% | 0% | 0% for first £200 a month, then 3% | £0 | £0 |
* At least 51% of applicants will get this rate. ** If interest is charged for 30 days.
*** Until 31 August 2022, then it changes to 2.99%. Source: Moneywise, 14 May 2018.
If you are paying by card when abroad, you might be asked if you want to pay in pounds. Always say no and pay in the local currency. This way you’ll pay the rate set in the UK, not the one in the country you’re visiting, which will probably be higher.
With confusing exchange rates it’s sometimes a pain to work out how much you are spending. The app XE can instantly convert the local prices to pounds, so you’ve a reasonable idea if you’re keeping to budget. Don’t forget that you might have to add sales tax to the prices you see.
Don’t forget a little holiday cash
Of course, even with one of the top overseas spending cards, it’s always a good idea to take a little cash with you. But leave this currency conversion until you reach the airport and you’ll pay well over the odds.
And don’t assume that just because the bureau de change or bank declares “0% commission” that you’re getting a bargain. There will still be charges added via the exchange rate, which can be at whatever rate they choose to set it. Instead, use a comparison site, such as Travelmoneymax.com, to find the best rate near you for collection or delivery of your dinars, dollars or dong.
Beat phone bill shocks
New rules introduced last summer mean you can finally roam for free with your mobile minutes, texts and data in the EU as well as in Iceland, Liechtenstein and Norway.
But if you’re travelling elsewhere in the world you can still be hit with a nasty bill if you use your phone as normal. And don’t think that just by avoiding using your phone you’ll be OK. Even if you don’t open up an app, it’s possible for data to be eaten up in the background as apps search for updates or push through notifications.
You’ve a couple of options to avoid this happening. You can turn off background app refresh (iOS) or restrict background data (Android) for a selected app or all apps. Easier still, if you can stick to free wi-fi in your hotel, then turn off the phone’s mobile data before you get on the plane or ferry.
"You can finally roam for free with your mobile in the EU"
Or if you do think you’ll need more access, check what add-on data bundles your network provides. These aren’t necessarily cheap, but they will cost a lot less than paying the roaming rates.
Also check if your mobile provider allows free roaming outside the EU – all the major networks offer it in some form, although the countries vary by provider. Three has the most comprehensive coverage, followed by Vodafone, but it is only available on Three’s Advanced plans and Vodafone’s non-basic plans.
Check too that you won’t be charged every time a call goes to voicemail. The easiest solution is to ask your network to turn off this function while you are away.
Not booked your flight or hotel yet?
Even though the majority of summer holidays are booked in January, you can still bag a late bargain break with these tricks.
1. Open the incognito (or private) mode on your web browser. This can stop companies increasing prices based on your browsing history or even the type of computer you are using. Then fire up a comparison site such as SkyScanner to find the cheapest flights, and Kayak for hotels.
2. Calculate whether buying your flights and hotels separately works out cheaper than a package holiday.
3. Try to be flexible with the dates you are away. You’ll get cheaper flights if you avoid Fridays and Sundays, while hotel rooms located in business districts can cost less at weekends.
4. You’ll often be able to pay less for flights that aren’t direct, especially long haul. If you can stop over for a few days on the way, you’ll also get to see a different place – such as a break in Reykyavik on the way to New York.
5. Check if you can book hotels and flights via cashback sites such as Quidco and TopCashback for up to 10% extra savings.
ANDY WEBB contributes to BBC 1’s Rip Off Britain and Right On The Money and blogs on his own website, Be Clever With Your Cash
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My Mom’s Stingy Boyfriend Has a Sneaky Way of Avoiding Pricy Drink Tabs
The only thing more awkward than parents dating is when they’re dating someone you’re not totally rooting for.
I’m sure it’s disappointing when your generosity is met by this guy’s intense sense of frugality. But, as you know, it’s not like you can just bow out of every family gathering for the rest of your life. Don’s going to be around, in whatever capacity, unless your mom decides otherwise.
Speaking of your mother: Have you tried discussing your concerns with her? She may be so enamored with this guy that she doesn’t realize he’s being cheap to the point of upsetting you.
The worst-case scenario of that conversation would be that she doesn’t see her boyfriend as being stingy at all, and then you’ll feel bad. But only for a little while. Because you know deep down that he’s stingy.
In the best-case scenario, she’ll pick up on Don’s habits and start to rib him about it. A playful “Don, don’t be so cheap!” coming from your mom would sound a lot nicer than if you did it. Probably because your mom would smile as she said it, while you would be arms-crossed scowling at him over the top of that pitcher of High Life.
Another alternative: Use your interactions with Don as an exercise in your own frugality.
Suggest the group go out for whatever cheap drink Applebee’s is serving up this month. Take a spin through Groupon before making plans. Check Ibotta for cash-back deals at bars and restaurants that can make up for Don’s Long Island habit.
It’ll be your own private quest: Can you outfrugal a frugaler?
You may not be able to change how Don spends his money (or chooses not to spend his money). But you can keep these maddening interactions entertaining by attempting to best him at his own game.
The inbox is open. Submit a question or send your worries to dearpenny@thepennyhoarder.com, and I’ll see what I can do to help.
Disclaimer: Chosen questions and featured answers will appear in The Penny Hoarder's “Dear Penny” column. I won't be able to answer every single letter (I can only type so fast!). We reserve the right to edit and publish your questions. Don’t worry — your identity will remain anonymous. I don’t have a psychology, accounting, finance or legal degree, so my advice is for general informational purposes only. I do, however, promise to give you honest advice based on my own insights and real-life experiences.
Lisa Rowan is a senior writer at The Penny Hoarder.
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.
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