Money Management

Hosting a big football party this month? Read on for some great Costco buys. [[{“value”:”

There’s a certain football event happening on Feb. 11 that many people are eagerly awaiting. And if you’re hosting a party that night, you may be gearing up to dip into your savings to cover your costs.

There are different steps you can take to lower your expenses in the course of hosting a gathering for the big game. You can cook your own food instead of catering, and you can make it a BYOB affair instead of paying for everyone’s drinks.

But another smart personal finance move you can make in the course of hosting is buying your snacks from Costco. Here are five items in particular that won’t break the bank and that could make a great addition to your table.

1. Kirkland Signature Peanut Butter Filled Pretzel Nuggets

These Kirkland pretzels aren’t ordinary pretzels — they’re stuffed with peanut butter that not only makes them extra flavorful, but extra filling. A 55-ounce tub of these treats costs $11.99 online. However, one thing you should know about Costco is that its products are almost always less expensive in stores. So if you have a warehouse club nearby, you may want to stop in.

2. Kirkland Signature Trail Mix

Trail mix isn’t only for hiking or long treks. Rooting for your favorite team (or rooting against your not-so-favorite team) takes energy. So a good snack item to put out at your party is Kirkland trail mix. For $15.99 online (and most likely less in stores), you’ll get a four-pound bag of peanuts, M&Ms, raisins, almonds, and cashews. It’s a great way to keep your guests nice and full until the pizza arrives or until you’re ready to serve whatever homemade concoction you’re putting out.

3. Utz Pub Crunchy Snack Mix

Why limit yourself to a single type of pretzel or cracker when you can enjoy a nice mix instead? This snack mix features honey wheat and traditional pretzels, plus an assortment of crackers. A $10.99 investment for a 44-ounce tub could keep your guests happy all the way through halftime.

4. Kirkland Signature Microwave Popcorn

It may be Game Night, not Movie Night, but who doesn’t love a nice handful of popcorn regardless? You could buy packaged popcorn that only requires you to open a bag and pour the contents into a bowl. But a less expensive bet may be to purchase a 44-count of Kirkland microwave popcorn for $16.99 online. From there, you can simply pop a few bags in the microwave right before your guests arrive. And you’ll then have plenty of popcorn left over.

5. Peanut M&Ms

Peanut M&Ms take regular M&Ms to a whole new level. And Costco sells a 62-ounce jar online for $18.99, so you’re paying only $0.31 per ounce. At a regular supermarket, you could easily be looking at roughly $0.20 more per ounce. And why pay more for a smaller amount and risk running out?

Whether your team wins or loses, or whether you win your pool or not, the right snack assortment could make your upcoming football gathering all the more fun. It pays to visit your local Costco in the coming days so you can load up on these and other items you and your guests are bound to enjoy.

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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. The Motley Fool has a disclosure policy.

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High rates mean CDs are back in the spotlight. Take a look at the math that shows why they deserve it. [[{“value”:”

It might be my quirky algorithm, but it feels like every other ad is another bank screaming about its 5% APY CDs (certificates of deposit). And though I’m not a fan of ads, I gotta say, it makes me kind of happy to see so many places offering such high CD rates.

That being said, I feel like these ads are kind of missing the point because they never tell me what that actually means in real money. I know that these are good rates right now, but how much money are we really talking about?

So I did the math.

The best CD rates are typically from short-term 6-month and 12-month CDs, so I focused on those. I also looked at a few different rates and deposit amounts for a broader estimate, and I assumed interest was compounded monthly.

If you deposit $1,000

A modest $1,000 deposit will get you past the minimums for many of the best CDs, though some stricter options may be out of reach.

6-month CD

12-month CD

In real numbers, the return you get from putting just $1,000 into a CD at any rate isn’t going to make any headlines, even when that rate is at a record high. It may get you dinner, depending on what you order.

However, this is money you made without effort, simply by letting your savings sit and grow on its own. It will also continue to grow — exponentially — if you let it.

The key is to take your $1,000, plus the $25 to $50 in interest, and roll them over into another high-yield CD. Then another. Each time you roll over, the principal grows larger and earns more interest, compounding your returns.

If you deposit $5,000

At $5,000, you’ll have a lot of great CD options, and it should be easy to get a top rate.

6-month CD

12-month CD

You’ll see real returns at this deposit level, with even a 6-month CD earning more than $100 in interest as it matures. If you let it sit for 12 months, you’ll earn over $200 in interest income.

To show you the power of future compounding, consider this: If you have a 12-month CD at 5%, you’ll earn $255.81 in interest. If you roll the principal and interest over into another 12-month CD at 5%, the $5,255.81 would earn $268.91 in interest during those 12 months.

If you deposit $10,000

There are very few CDs you won’t qualify for if you have $10,000 to deposit, so you’ll have your pick of rates.

6-month CD

12-month CD

By the time we’re talking about five-figure deposits, the interest earnings are pretty significant. In just six months, that deposit could return $250 or more with a 5% rate (or higher). Choosing a 12-month CD in that rate range means over $500 in profit.

Now, this is absolutely a fantastic return for what is a very low-risk investment. But if you have $10,000 in savings to grow, you may also want to think about other investment avenues that may offer better yield.

For instance, if you’re already maxing out your retirement funds, consider an individual investment account. Stocks may be less expensive to cash out in a hurry — CDs have hefty early withdrawal penalties — while potentially offering better returns if you hold them for years or even decades at a time.

Investing in stocks is much riskier, however; there’s no guaranteed return, and you could, in fact, lose money. There’s no chance of that with a CD (except for the early withdrawal penalty). So you’ll need to decide according to your own risk tolerance.

Steady growth can pay off

Look, I get it. CDs aren’t exciting. (No one ever made a movie about somebody’s CD ladder.) They don’t need to be exciting to work, though. And with interest rates as high as they are right now, high-yield CDs absolutely work great for growing your savings with minimal risk. Just look at the math.

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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.Brittney Myers 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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An IRS audit strikes fear into the heart of many Americans — but what are the chances it will happen to you? Find out what you need to know. [[{“value”:”

IRS audit. Are you shaking with fear yet upon seeing those words? Most people would rather do just about anything else besides open up their finances to a close inspection from an IRS agent who has the power to order them to pay thousands of dollars in back taxes.

It’s not surprising so many people are afraid of being audited. Taxes can be really confusing, so even if you try to do the right thing and pay what you owe, you may not always get it right. The fear of a mistake combined with the intrusiveness of combing through your financial life with a government agent and the risk of having to pay lots of money, including penalties, all make the idea of an audit a very scary thing indeed.

But what exactly are your chances of it happening to you? The odds of an audit are actually lower than you probably think — except for one surprising group of taxpayers.

Here are the odds you are going to be audited

According to Transactional Records Access Clearinghouse data, a nonpartisan, nonprofit data research center affiliated with Syracuse University, the odds of an audit are really very low. In fact, you have about as much chance of this adult nightmare coming true as you did of there really being a monster under your bed when you were a child.

Specifically, the IRS audited just 626,204 out of the 164 million individual tax returns that were filed for the 2022 tax year. This was down from 659,003 during the prior year. And while this number may seem high, the vast majority of them weren’t really what you typically think of as an audit, but instead involved the IRS just sending a written request for more information.

When it comes to a real audit involving an actual investigation and talking with an agent, only 93,595 of those happened in 2022. That makes the audit rate about 3.8 out of every 1,000 returns, so taxpayers have about a 0.38% chance of being audited. This was down from a 0.41% chance in 2021.

So, while you might theoretically be audited, the odds are not very high.

One group faces a much bigger risk

While the overall chances of an audit are pretty low, there’s one group that actually faces a much more significant risk — and it’s not the people you might think. Surprisingly, instead of millionaires being at elevated risk of an audit, it’s the lowest-income wage earners who claim the Earned Income Tax Credit (EITC).

This group of taxpayers faces nearly three-and-a-half-times the chances of an audit compared with the average individual taxpayer, largely because it’s easier for the IRS to identify issues with EITC claims than it is to sort through the complex finances of millionaires. In 2022 alone, there were 12.7 audits per 1,000 returns filed by the lowest-income wage earners (making it a 1.27% chance of audit) compared with 3.8 per 1,000 returns filed by all other individual taxpayers.

This doesn’t mean that you shouldn’t claim this credit, as it’s a valuable one for lower earners. But it does mean it’s important to have the right documentation and confirm you qualify to have the money deposited into your bank account. If you use the right tax preparation software, the software will take care of most of this for you.

So, the bottom line is, the risk of an audit isn’t high — but it does exist, especially for lower earners who claim the EITC. So be sure to get the help you need to file your taxes properly — either from a good quality tax software or from an accountant — so you won’t have anything to worry about if the IRS comes calling.

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You’re never too young to begin building a retirement nest egg. Read on to find out why you should start in your 20s. [[{“value”:”

Many people don’t start funding an IRA or 401(k) for retirement savings purposes until they’re well into their careers. And that makes sense to some degree.

It’s hard to focus on retirement savings in your 20s — especially in your early 20s — when that milestone is so far away. And also, when you’re new to your career, your salary may not be that high. So you might need your entire paycheck to cover things like your rent, car payments, and credit card bills.

But while saving for retirement as an early 20-something may not be the easiest thing, it’s a thing worth doing. Here’s why.

1. You might enjoy more growth in your portfolio

The money in your IRA or 401(k) shouldn’t just sit in cash. You should invest it so it grows into a larger amount over time. And the more time you give your money to grow, the higher a balance you might enter retirement with.

Over the past 50 years, the stock market’s average annual return has been 10%. If you contribute $5,000 to an IRA or 401(k) at age 22 and are able to enjoy that same return, by age 62, that $5,000 will have grown to about $226,000. Make that same contribution at age 32, and by 62, you’re looking at more like $87,000. That’s still a really nice gain, but it’s nowhere close to as high as $226,000.

2. You might have an easier time finding the money to contribute

You might earn a lower wage in your early 20s than in your 30s, 40s, and beyond. But one thing you may have going for you at that stage of life is that you’re not yet a homeowner or parent.

Of course, this isn’t a given. There are people in their early 20s who own property and have kids. But if those are milestones you haven’t reached, you may have an easier time finding the money to contribute to an IRA or 401(k) in the absence of having a mortgage or needing to pay for child care.

3. It may lead to an early retirement

A lot of people dream of retiring early. But it’s fair to say that someone retiring in their early 50s needs a larger nest egg than someone retiring in their mid-60s, since their money needs to last longer. If you start saving for retirement during your early 20s, you might grow enough wealth to make early retirement possible.

Let’s say you’re able to save $500 a month for retirement between the ages of 22 and 52, all the while enjoying a 10% average annual return on your money. That leaves you with a nest egg worth about $987,000. And you might feel comfortable wrapping up your career in your early 50s knowing you’re sitting on close to $1 million.

But if you don’t start contributing that $500 a month until age 32, you’ll end up with around $344,000 by age 52, assuming the same return as above. That may not be enough savings to pull off an early retirement.

There are plenty of benefits to saving for retirement during your early 20s. And remember, saving for retirement doesn’t have to mean maxing out your IRA or 401(k). If that’s not doable at that point, don’t sweat it. Instead, save to the best of your ability. You can always increase your contributions as your wages rise. But this way, you’re getting off to a solid start.

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Costco’s bulk deals and discounts can make that game-day party more affordable. Take a look at these examples. [[{“value”:”

If you’re a dedicated football fan — and even if you’re not — celebrating the big game can be a big deal. That doesn’t mean it has to be a big expense, however. And that’s especially true if you’re a Costco member.

Costco always has great deals on everyday essentials, which is what makes it such a great personal finance choice any time of year. But you can also find most of your game-day essentials at your local Costco, too — and for a great price. Here are some of my top picks.

1. Ninja Woodfire Electric Outdoor Grill, Smoker & Griddle

It’s a grill. No, it’s a smoker! No, it’s — an air fryer?!

No matter how you want to prepare your game-day feast, this machine can probably handle it. The Ninja Woodfire Electric Outdoor Grill, Smoker & Griddle bundle from Costco comes with a host of accessories, including a handy cover.

The regular Costco price on this machine is better than I could find anywhere else, which makes the $239.99 sale price a serious deal. (Price valid through Feb. 11, 2024.)

2. Samsung 75″ CLass – Q70C Series QLED

If you find yourself squinting to find the ball, perhaps a larger screen is the solution. And this screen is plenty large, offering 75″ of ultra high definition QLED with 4K upscaling. (QLED has better color accuracy than regular LED, and it excels in well-lit rooms, such as during a daytime sporting event.)

Now, full disclosure, I did find this same model at the same $999.99 price on Best Buy’s website, where you don’t need a Costco membership. However, if you do buy from Costco, you get the included Allstate 3-Year Protection Plan, which extends your warranty to a total of five years. Best Buy’s 2-Year Geek Squad plan will run you $129.99 and only get you to the four-year mark.

3. Aidell’s All Natural Chicken Meatballs

I love a good buffalo wing as much as the next person, but I will choose the meatball-on-a-toothpick over a chicken wing any day of the week. (They’re also easier to make!) You can get these tasty Teriyaki & Pineapple meatballs for $3.70 off through Feb. 25, 2024.

More into meatball sliders slathered in marinara and mozz? The Kirkland Signature Italian Style Beef Meatballs can make a killer game-day sandwich.

4. Cheese!

It’s a well-known fact that every party is better with cheese. (I’d go so far as to opine that pretty much everything is better with cheese.) And if you need cheese for your game-day spread, Costco is a good place to find it affordably.

There are a lot of Kirkland Signature cheeses, from basic cheddar to blocks of Parmesan (ideal for adding to those meatball subs). You can also find pre-made cheese boards and variety packs perfect for a grazing table.

(Now, I will say that if you want some particularly fancy cheeses, you may need to venture to a grocery store with a dedicated cheese counter. But at least then you’ll be able to use your grocery rewards card, so it’s not a total bummer.)

5. Hummus and dips

Much like cheese, dips are an integral part of any great party food experience. But who wants to pay $4 for a tiny cup of hummus at the grocery store? No, when it comes to game-day dips, you need to buy in bulk — which is the perfect job for Costco.

You can get a great variety of hummus and dips from Costco (though specific options will vary by store). My local Costco has feta dips, multiple hummus options, and even organic guacamole.

A big game-day party may also be one of the few times it pays to get wholesale club produce. While it would normally be hard to get through something like bulk avocados, it could be a money saver when whipping up a vat of guac for the game.

6. Kirkland Signature booze

Costco’s house-brand liquor selection is both remarkably diverse and surprisingly decent. You can find everything from Kirkland Signature Spiced Rum to Kirkland Signature Cabernet Sauvignon.

While certain products are better than others — Kirkland Signature vodka is reported to be especially good — the prices are downright fantastic.

Is this the place to get a luxury bottle of single malt? Absolutely not. Is it a great place to pick up vodka and rum for that game-day punch? Absolutely yes. You can treat the whole party without dipping into your savings.

7. Shark Matrix Plus Robot Vacuum

Every great game must come to an end, and soon the season will be over. Thankfully you’ll still have all that party mess to remind you!

If you’d rather not have to deal with it, why not set your trusty robot vacuum to handle the cleanup? (Well, at least part of it — nothing Costco sells you will load the dishwasher. You’re on your own for that one.)

Through Feb. 25, 2024, you can pick up the Shark Matrix Plus Robot Vacuum with Self-Empty HEPA Base for just $299.99, which is $100 off the regular Costco price. Not only does it vacuum for you, it also empties itself into its base, giving you up to 30 days of maintenance-free vacuuming.

Big game, big savings

Whether you need winter must-haves or game-day essentials, Costco has you covered. And chances are pretty good you’ll save money compared to other retailers.

The chances are good, but not 100%. As with anything else, make sure you’re comparison shopping before you decide Costco has the best price, especially on big-ticket items like TVs. That way, even if your team doesn’t win, your wallet does.

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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.Brittney Myers has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Best Buy and Costco Wholesale. The Motley Fool has a disclosure policy.

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Just because your home has a lot of equity thanks to rising tides doesn’t mean you can actually afford to sell it. Find out what to consider. [[{“value”:”

Spring is just around the corner, and you know what that means — real estate season is about to start. But given the fact that homes purchased just two years ago were bought with mortgage interest rates below 4%, not everybody can afford to sell their home, even if they really want to.

What does it cost to sell a home?

It’s not exactly free to sell a home, which is a bit of an issue for people who haven’t had their homes for very long or who may have refinanced recently looking for a better mortgage rate and some cash for projects. There are a lot of expenses involved, even if you use a fairly no-frills approach and hire a real estate agent to do your heavy lifting.

Real estate commissions

In a lot of markets, it costs at least 6% of the sales price to get full-service agents involved in your transaction. This will depend on what kind of house you have for sale and how difficult it will be to sell, though.

Home repairs

Your buyer has the right to ask for repairs to your home, especially for problems that could be potentially serious. This can cost major money, and if you want to sell the house for top dollar, it absolutely must be done. That means correcting electrical problems, addressing structural problems, remediating mold and radon, and so on. This is why it’s good to get a pre-sale home inspection, which also costs a few hundred dollars.

Closing costs

You will have to pay some amount of closing costs to close your sale, as well. Sometimes sellers pay closing costs on behalf of the buyer, but just the costs that you will pay yourself can be several thousand dollars, depending on where you live and what closing services are required.

These costs together are estimated to be upward of 10% of your home’s sales price, but will be based on what kind of repairs and other services you may need to get the job done.

How much equity do you have?

You may have substantial equity in your home, even if you’ve just owned it a few years. From December 2020 to December 2023, the median sales price of a home in the United States went from $334,074 to $403,164, just over a 20% increase for doing absolutely nothing except keeping your house from catching on fire or falling down.

But you also have whatever equity came from paying down your mortgage in that time period. With a sub-4% mortgage rate, you could have paid down a good bit of equity, too, along with the credit you got immediately for your down payment. The National Association of Realtors says the average for a first-time home buyer is about 6%.

You might easily have 26% equity in your home right now if you’ve owned it for three years. That’s a fantastic bank for future home repairs and shedding costs like your mortgage insurance.

Can you afford to sell your home?

So, can you afford to sell your home? If you spend 10% of your home’s price tag on selling it, and you’ve got 26% equity, you’ve still got 16% to bring to closing, right? That’s not too shabby.

Let’s say you paid the median price for your home in December 2020, $334,074, and brought 6% down like the average first-time buyer. That month, interest rates on 30-year fixed rate mortgages were around or under 3%. So your payment, without taxes or insurance, is about $1,323.

A house like yours now brings $403,164 — and interest rates are closer to 7%. So even with all that equity and a 10% down payment, your principal and interest payment for the same house is suddenly $2,421 each month, or about $1,100 more.

You didn’t do anything, you sold your old house, bought a new house, and bam. Suddenly the bills are bigger for no discernible reason.

What happened to your home equity?!

Well, everybody got the same equity bump. This is also why a lot of people really can’t afford to sell their homes right now. If interest rates had stayed the same, for example, even with only 10% down, you’d still be facing just a $200 increase in your principal and interest payment, not a $1,100 one!

Should you sell anyway?

Now that you know what it costs to sell, you may be alarmed at this information. For some people, it still makes sense to move to a new home. Maybe you’re having a baby or you need to move to another town — these are all good reasons to sell, even if it’s going to cost you more than you thought.

Another slick way to deal with the current market is to sell your home and move somewhere cheaper. Not to a smaller house, necessarily, but to a lower-cost market. That might be further out in the suburbs, or to a less desirable part of your metro area, or even to another state if your job allows remote work. It’s likely that equity appreciation has kind of peaked and will be very slow for a while, so this would be a way to capture that value for good.

Selling your home is a personal decision, but it’s important to understand what it actually costs to do this, as well as how much you could gain (or not) by doing so with a more expensive mortgage.

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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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