Money Management

Costco offers great prices year-round. But read on for some extra-special savings you might enjoy this month. [[{“value”:”

If you’re a regular Costco shopper, you know that the warehouse club giant offers fantastic prices on the items it sells. But the only thing better than already-low prices are prices that are discounted even further. With that in mind, here are some great Costco deals for the month of March you may want to check out.

1. $250 off the Dell Inspiron 15.6″ Touchscreen Laptop

I’ve been pledging to get a new laptop since late last year. And the main reason I haven’t done so is a lack of time coupled with my inherent fear of change for anything technology-related.

However, at this point, I’m eyeing the Dell Inspiron 15.6″ Touchscreen Laptop because it’s $250 off at Costco. And also, it’s a fairly inexpensive laptop to begin with.

A few years ago, I invested in a business-class laptop thinking it would offer superior performance and more staying power than my previous cheap laptop. It hasn’t. So this time around, I’m not shelling out the big bucks. I need a basic machine with a decent processor and memory, and my tech-savvy husband insists this one could easily get the job done.

Plus, I like that Costco offers a free second-year warranty on laptops. Even though this model is inexpensive, I want it to last for at least two years. So this makes it a more financially sound purchase.

2. $50 off the Greenworks 2000PSI Electric Pressure Washer with 50′ Anti-Kink Hose & Accessories

Now that spring’s coming, you may be looking to spruce up your exterior. And there’s nothing like a good pressure washing session to get your siding, patio, deck, or driveway looking its best.

Right now, Costco is offering $50 off the Greenworks 2000PSI Electric Pressure Washer. It comes with a turbo nozzle for faster cleaning, a 50-foot kink-resistant hose, and other accessories that can help you get the job done.

Remember, outsourcing home maintenance tends to cost a lot more than doing it yourself. So if you invest in a pressure washer, you can set yourself up to do that job not only this season, but in future seasons to come.

However, be honest with yourself before buying this item. Years ago, my husband and I spent hundreds of dollars on a lawn mower thinking we’d do our own grass cutting. Want to know how long that lasted? Not even a season. So if you’re going to buy a pressure washer, make sure you’ll actually use it. Otherwise, you’ve just spent a few hundred dollars on an item that clogs up your garage.

3. $30 off the Winix True HEPA 4 Stage Air Purifier with Wi-Fi and Additional Filter

If you’re someone who tends to be miserable when spring allergens come out in full bloom, then it’s important to keep all of those particles out of your indoor air. Right now, Costco is offering $30 off of the Winix True HEPA 4 Stage Air Purifier. It comes with a built-in sensor that measures air quality and includes an extra filter so you won’t have to scramble when it’s time to swap yours out.

4. $6 off Kirkland Signature Coffee Organic Breakfast Blend K-Cup Pod, 120-count

Many of us need our morning caffeine fix to function. Right now, you can save $6 off a 120-pod supply of Kirkland coffee. If one of your New Year’s resolutions was to kick your Starbucks habit and bank the savings, spending less on coffee at home will only add to your success.

Plus, Costco is great when it comes to standing behind its products. If its signature brand coffee doesn’t meet your expectations, you can talk to customer service about a refund.

5. $7 off Nylabone Tough Dog Chew Variety Pack, 3-count

It’s a common complaint among dog owners — and one I can relate to. You go and spend money on dog toys and chews, only to have them destroyed within minutes.

Nylabone is known for its staying power, though. And right now, you can save $7 on a three-pack of dog chews. That won’t guarantee that your dog won’t go through them quickly. But if that happens, then hey, at least you didn’t spend as much.

These are only some of the great offers Costco is putting out this month. Check out your monthly mailer for more sale items. And if you tossed it in the trash like I did, rest assured that it’s available on Costco.com. But act quickly, because if you sit on these deals too long, they may disappear on you — says the person who was supposed to replace her laptop in January and is still researching options in March.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale and Starbucks. The Motley Fool has a disclosure policy.

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Curious to see how much money Americans have in their IRAs? Read on to find out. [[{“value”:”

It’s really important to do what you can to build up retirement savings. Seniors who retire on Social Security alone often struggle financially due to the limited replacement income those benefits provide.

Now, many people have access to a retirement plan through their employers in the form of a 401(k) or 403(b). If you don’t, there’s always the option to open an IRA with a brokerage firm. Anyone with earned income can open one of these accounts and save for retirement.

Recent data from Fidelity shows that as of Q4 2023, the average IRA balance was $116,600. If your balance is higher than that, you may be feeling pretty darn good right about now. But don’t worry if your balance is lower. If that’s the case and you’re not on the cusp of retirement, you’re definitely not doomed.

Why averages can be misleading

The fact the average IRA balance is $116,600 might satisfy a point of curiosity for you. But you don’t need to panic if your balance is lower.

One piece of data Fidelity doesn’t provide along with the average IRA balance is the average age of IRA savers. If that age is 45, and you’re 35, well, it means the typical IRA holder has had an extra decade to make contributions and accumulate a higher total than you. So don’t assume you’re in bad shape for retirement if your IRA balance is lower — even if it’s a lot lower.

As an example, let’s say you’re 35 with $58,300 in your IRA today — half of the average balance. Even if you don’t add another dollar to your IRA, but rather, leave your $58,300 to sit and grow, in 10 years, you may be sitting on about $151,000, assuming an average annual 10% return on your IRA’s investments. That 10% is in line with the stock market’s average return over the past 50 years.

Make sure you’re investing your IRA aggressively enough

While you don’t need to stress if your IRA balance isn’t quite as high as the average, one thing you do want to make sure of is that your IRA has enough stock exposure. The 10% return we just discussed may not be feasible if you play it too safe in your IRA with too much invested in bonds. So as long as you’re not on the verge of retirement, it often pays to have plenty of stock exposure.

The nice thing about IRAs is that these accounts allow you to invest in stocks individually. With a 401(k), by contrast, you’re generally limited to different funds, like index and mutual funds, where you can’t hand-pick your stocks yourself.

If you’re not comfortable selecting individual stocks for your IRA, you can always fall back on broad market ETFs, or exchange-traded funds. That way, you get instant diversification without having to do a ton of stock-related research.

The average $116,600 IRA balance today is most likely a result of contributions plus investment gains. And it’s in your best interest to set yourself up with plenty of the latter.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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Could a boosted Child Tax Credit return? President Biden wants it to. Read on to learn more. [[{“value”:”

In 2021, the U.S. was deep in the throes of an economic crisis. Unemployment was high, and businesses were struggling. Consumers needed loads of financial relief.

As such, lawmakers, under President Biden’s leadership, passed a massive stimulus bill that included a boost to the Child Tax Credit. And while that boost has since gone away, President Biden has made it clear that he hasn’t forgotten about it.

A financial lifeline for parents

The Child Tax Credit underwent a number of key changes in 2021. First, its maximum value was raised from $2,000 to $3,000 for children aged 6 to 17 and $3,600 for children under age 6. The credit also became fully refundable, so parents could receive its full value even if they owed no tax to the IRS. Finally, the credit was paid in installments so eligible recipients did not have to wait until they filed their taxes to get their money.

Unfortunately, those enhanced features only applied to 2021. In 2022, the Child Tax Credit reverted back to its former state. But President Biden has made it clear that he’s looking to see that boost restored.

During his recent State of the Union address, Biden said, “The Child Tax Credit I passed during the pandemic cut taxes for millions of working families and cut child poverty in half. Restore that Child Tax Credit. No child should go hungry in this country.”

The tax credit is still available

Some lawmakers have been pushing for a boosted Child Tax Credit since 2022. And while that hasn’t happened yet, you should know that the credit still exists, and you may be eligible for it on your 2023 tax return.

To qualify for the Child Tax Credit for 2023, you need to have one or more children in your house under the age of 17. From there, the credit is worth up to $2,000 per child, but that sum begins to phase out if you’re single earning $200,000 or more, or if you’re married earning $400,000 or more jointly with your spouse.

For each $1,000 of income above the threshold that applies to you, your credit is reduced by $50. So if you’re single earning $201,000, you’d get a $1,950 credit.

You should also know that the Child Tax Credit is not fully refundable for 2023. However, it’s partially refundable for up to $1,600.

There’s also legislation in the works that could increase refundability for the Child Tax Credit for 2023, but so far, it hasn’t passed. At this point, it’s questionable as to whether lawmakers will come to a decision ahead of the April 15 tax-filing deadline.

It’s a good thing to see that President Biden has a boosted Child Tax Credit on his radar. But remember, even if the credit doesn’t get enhanced, it still offers a lot of value in its current state. So it definitely pays to see if you qualify for it for the 2023 tax year.

Plus, as a parent, you may be entitled to other tax credits that offer you some financial relief. These could include the Earned Income Tax Credit and the Child and Dependent Care Credit, which lets you claim a portion of your child care costs.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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I want to open a new CD in March, but I know off the bat that I don’t care about getting the highest rate. Find out why. [[{“value”:”

The Federal Reserve spent much of 2022 and 2023 raising interest rates in an attempt to cool inflation. And thankfully, it worked. Inflation is less of a nuisance now than it was a couple of years back, which means consumers today aren’t looking at quite the same costs at the supermarket or gas pump.

However, the Fed’s interest rate hikes unfortunately drove the cost of borrowing way up. So for the past year or so, many consumers with debt have been burdened with higher costs. But the Fed’s rate hikes have benefitted people with money in the bank. These days, savings accounts are paying generously.

Certificates of deposit (CDs) are also paying out well. Since the Fed is expected to cut interest rates at some point in 2024, now’s a good time to lock in a CD. Once rate cuts come down the pike, CD rates may not be as attractive.

I personally want to open a CD in March. But I won’t be chasing the highest rate possible for one big reason.

I’m thinking long term

Because banks are well aware that interest rate cuts are likely this year, they’re being more conservative with their long-term CD rates. As such, you’re likely to get a higher interest rate on, say, a 6- or 12-month CD in March than on a 48- or 60-month CD.

Capital One, for example, has a 4.35% APY on a 6-month CD and a 5.00% APY for a 12-month CD. For a 48-month CD, you’re looking at 4.05%. For a 60-month CD, the APY is 4.00%. So if I were to open a 60-month CD this month at Capital One, I wouldn’t end up with the highest APY available there. But that’s also okay.

See, I specifically want to open a longer-term CD because I’m saving for a milestone — college — that isn’t so far away. I also have money in the stock market for college purposes, but because those tuition bills aren’t so far off, I want to keep some of my college savings in a safer asset, like cash, for about the next five years or so.

If I open a 12-month CD this month, I might score a higher APY. But then what happens in a year from now, when rates are likely to be lower across the board? At that point, I may not be able to renew that CD to another 12-month term for anywhere close to 5%, or even 4%. That’s why I specifically want to lock in a longer-term CD in the coming weeks. And I don’t care if I don’t end up with the best interest rate because of that.

It’s a matter of your own needs and goals

If you’re sitting on some extra cash, you may be inclined to put it into a CD while rates are still pretty attractive. But before you make a point to try to lock in the highest rate possible, think about your personal needs and goals. Like me, you may find that it makes sense to forgo a bit more interest in the near term to earn more interest on your money in the long term.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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