Money Management

Want to change health insurance in 2024? It might not be too late — certain life changes let you get a special enrollment period on HealthCare.gov. [[{“value”:”

As of Jan. 16, 2024, open enrollment for 2024 health insurance has ended. But that doesn’t mean it’s impossible to get health insurance for the rest of the year. If you have certain changes in your job situation or personal life, you can still get health insurance for 2024.

Getting health insurance outside of open enrollment is called a “special enrollment period.” But not everyone is allowed to use this option to get health insurance coverage. There are certain rules and restrictions on who can get a special enrollment period.

Let’s look at how special enrollment periods work, and how you can use this alternative way to get health insurance in 2024.

Special enrollment period vs. open enrollment

If you get health insurance through your job, you’re probably familiar with open enrollment. This is a special time of year when people can sign up for employee benefits or make changes to their insurance plans. Depending on your employer, your open enrollment period might be a few weeks during the autumn — companies use this time to make sure employees are signed up, announce changes to benefits and insurance options for the new year ahead, and offer new options.

If you have your own small business or are self-employed, or otherwise do not have job-based health insurance for yourself or through your spouse, you can also use the open enrollment period on HealthCare.gov. This open enrollment typically goes from Nov. 1-Jan. 15, and it gives you time to sign up for health insurance for the first time if you don’t have coverage, re-enroll in your current coverage, or choose a new plan.

If everything in your life is staying the same for now, open enrollment is a pretty straightforward experience. You can keep your current plan, or make changes to your plan based on the options available at your job or on the HealthCare.gov marketplace.

But if you’re having big changes in your life that happen at some time of year other than open enrollment, you still deserve to get health insurance! This is where a special enrollment period can help you. A special enrollment period is a special opportunity to sign up for new health insurance or change your plan. You can change insurance any time of year, as long as you qualify for a special enrollment period.

Special enrollment periods: How to get one

To qualify for a special enrollment period, you need to have a qualifying life event (QLE). These events are usually related to changes in your income, your employment, or your family.

Here are a few common types of qualifying life events:

You lose your job-based health insurance (or the insurance you used to get through a family member’s job, such as a spouse’s job) — this could be a result of quitting your job or being laid offYour individual health insurance plan gets discontinued or canceledYour household income has decreased to the extent that you now qualify for savings on a HealthCare.gov marketplace planYou or your family has lost eligibility for Medicaid or a state Children’s Health Insurance Plan (CHIP)You get married, or get legally separated or divorced (and lose health insurance coverage as part of the divorce/separation)You have a new baby, adopt a child, or place a foster child — you can get insurance coverage starting from the first day of your new child’s life with your family, even if you enroll up to 60 days later

If you are leaving your job for a new company with job-based health insurance, and you do not have any interruption of health insurance coverage, you do not need a special enrollment period. For example, if your last day at your previous job was July 15, your former insurance continues through July 31, and your new company’s health insurance will cover you from your first day on the job on Aug. 1, you don’t need a special enrollment period.

But if you are leaving your job to start a small business, if you have been laid off and don’t want to pay for high-priced COBRA insurance premiums, or if you have other life changes and situations that have caused you or your family to lose your previous health insurance coverage, you might need a special enrollment period.

If you think you have experienced a qualifying life event, start by going to HealthCare.gov to see if you can get health insurance. There is a quick questionnaire you can fill out to see if your situation makes you eligible for a special enrollment period.

Bottom line: The end of open enrollment is not your only chance to get health insurance for 2024. If you have a qualifying life event like leaving a job, having a change of marital status, welcoming a new child to your family, or certain changes in household income, you can get a special enrollment period to sign up for health insurance at any time of year. Go to HealthCare.gov to see if you can get health insurance.

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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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Want to become a millionaire? Through hard work, savings, and savvy choices, it may be possible. Read on to learn more. [[{“value”:”

If you’ve ever dreamed of becoming a millionaire, you should know that doing so would put you in the top 2% of the U.S. adult population by wealth, according to recent research from The Ascent. You should also know that becoming a millionaire may be more attainable than you’d think — just ask the 5.3 million Americans who qualify as millionaires today.

Of course, in some of those cases, it’s more than possible that a lot of that wealth was inherited. And even when not, it’s likely that some of today’s millionaires had help getting to where they are — perhaps their parents paid for a high-end education and gave them financial support in early adulthood to set them on a solid path.

But there are also plenty of millionaires today who got to that point on their own. They didn’t inherit money or have CEO parents to set them up with high-paying jobs from the start. Rather, they made smart personal finance decisions independently that brought them to a good place.

If you’re eager to become a millionaire one day, you should understand what it takes to get there. Here are a few habits self-made millionaires tend to uphold.

1. They don’t upsize their lifestyles when their income increases

A big reason many reasonably well-off people don’t ever reach millionaire status is that they fall victim to lifestyle creep. As their income rises, so too do their expenses. They take on larger mortgage loans, buy fancier cars, and spend freely because they can.

If you want to become a millionaire, don’t keep taking on added expenses as your earnings grow. Instead, intentionally live below your means and bank the difference.

2. They’re mindful of their spending

Self-made millionaires don’t necessarily deny themselves every single one of life’s pleasures. There are plenty of people in that boat who take a yearly vacation and enjoy other indulgences.

However, one thing self-made millionaires tend to do is spend their money mindfully. They put thought into larger purchases and make a point to spend their money on things or experiences that truly add value to their lives. They don’t just buy things on a whim because they can.

3. They focus on long-term investments

Many people who become millionaires don’t reach that point until later in life. That’s because they spend many years saving and investing modest amounts that grow nicely over time.

Over the past 50 years, the stock market has rewarded investors with an average annual 10% return. If you were to build a portfolio of stocks generating that same return, a $500 monthly investment over 40 years would get you to over $2.6 million.

4. They believe in hard work

Because self-made millionaires get to that point without financial help, they tend to be people who hustle and aren’t afraid of hard work. And if you’re willing to make the effort to excel professionally, you, too, might eventually see your pay start to rise. That could, in turn, free up more money to save and invest.

You don’t even have to wait to be offered a promotion at work to grow your income. You could take on a second job through the gig economy and boost your income immediately. From there, you’ll have more options for investing.

You might assume that you need to be born into wealth to become a millionaire in your lifetime. But that’s far from the truth. Many people work their way up from nothing to lots of wealth. And if you’re willing to embrace and copy these habits, you may find that you’re one day able to call yourself a self-made millionaire.

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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.
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NFTs soared in 2021 and then came crashing down to earth. Find out why NFTs may have a new lease on life in 2024 and beyond. [[{“value”:”

NFTs (non-fungible tokens) were the talk of the town a few years ago. In fact, the Collins Dictionary team chose NFT as 2021’s word of the year. Since then, they’ve lost a lot of their shine. Seriously so. We’re talking diamond-to-coal levels of shine loss. One study by dappGambl showed that around 95% of NFT collections are now almost worthless.

You read that right. In 2021, some NFTs sold for millions of dollars. But almost 70,000 of the 73,000 or so NFT collections the researchers looked at are now worth 0 ETH. So does that mean NFTs are dead? Not quite. Read on to understand why NFTs may have a new lease on life in 2024.

It’s an NFT, Jim, but not as we know it

When you think of NFTs, you may well think of the memes, cartoons, and avatars that sold for huge amounts during the height of the NFT frenzy. Some CryptoPunk characters sold for over $1 million a pop. But these are only one type of NFT, and a highly speculative one at that.

The best way to understand NFTs is as a digital certificate of ownership. It is a token that’s stored on the blockchain that can’t be altered or deleted. The certificate can include rules about how the item can be used or what royalties need to be paid if it is sold. In theory, an NFT can demonstrate authenticity. In practice, that’s complicated because people can (and do) use plagiarized art to create NFTs.

To understand how NFTs may be used in the future, we need to think beyond animated characters and digital art. If you think of NFTs as digital certificates of ownership, there are all kinds of potential ways they can work. These include books, tickets, music, gaming, domain names, and even real estate. It is these, more concrete, use cases that may gain traction in 2024 and beyond.

For example, last year, TicketMaster launched token-gated sales. Essentially, it means holders of certain NFTs can unlock special benefits such as access to pre-sales, prime seats, or exclusive experiences. A German publisher called Bookwire launched an NFT book platform called Creatokia.

What it means for NFT investors

People think investing in NFTs means buying or selling the digital artworks we talked about earlier. However, if we accept that the NFT landscape is moving toward NFTs that offer value and utility, NFT investors may need to change focus as well.

For sure, it is easier than ever to open an account on an NFT marketplace and buy an NFT. Make sure you research the piece you’re buying, the artist involved, and be prepared to pay gas fees. You’ll also need a digital wallet to store your NFT.

Unfortunately, buying an NFT for the sake of buying an NFT is a bit like going to a book fair and picking up an old book for $1 in the hope that it might one day be worth a lot more. What matters is what the digital certificate of ownership is tied to, not the certificate itself.

So, how can you invest in an NFT world that’s moving away from speculative purchases of cartoons and memes? If you are into gaming, that might involve NFT assets in games — such as an avatar, a piece of land in a virtual world, or an in-game asset.

Another way might be to invest in the infrastructure behind NFTs. That could be by buying a cryptocurrency like Ethereum (ETH), where many NFTs are stored. Or perhaps buying an exchange-traded fund (ETF) that gives you access to NFT-related companies. NFT ETFs don’t hold actual NFTs. Instead, they give you exposure to stocks in businesses that are involved in the industry.

NFT investing is still extremely risky

NFTs may be entering a new phase, but NFTs and cryptocurrencies are still high-risk investments. The market is in its infancy, and the technology and legal environments are still evolving. Bear in mind that many NFT investors have already lost money. Some NFTs might go to the moon, but many others could collapse completely.

Making consistent lower-risk investments that generate a safer rate of return can be a better way to build wealth over time. For example, looking back over the past 30 years, the S&P 500 has delivered a compound average annual growth rate of about 10%. The S&P 500 tracks the top 500 companies in the U.S. and is a common benchmark for stock market investments.

Let’s say you invested $1,000 in an S&P 500 index fund today and left it generating returns of 10%. There are no guarantees, and there will be years when the stock market loses value. All the same, if that $1,000 grew at 10% per year, it could reach around $17,500 in 30 years. If you’d put that same $1,000 into NFTs in 2021, you may well have lost it all.

Key takeaway

Make sure risky assets like NFTs only make up a small portion of your portfolio. For the rest, consider opening a brokerage account and investing in a mix of other assets, including the stock market.

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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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The 2023 tax filing deadline is coming soon — are you ready? Learn some basic rules and language of the IRS to avoid problems with your tax return. [[{“value”:”

Tax season causes a lot of Americans to get familiar with complex vocabulary and concepts that they might only use once per year. As a result, there are a lot of misunderstandings about filing taxes. People often use the wrong terminology.

It’s no surprise that people get confused about taxes. After all, the IRS tax code is complicated. But as a taxpayer, it’s important to understand the basic rules and vocabulary of tax season. Knowing the language of the IRS will help you file your taxes on time and avoid tax problems or penalties.

Let’s look at a few of the biggest misconceptions about filing taxes and how to avoid them.

1. Tax refund vs. tax return

I often hear people confuse these two terms: tax return and tax refund. Your tax return is the official document that you file with the IRS at tax time. The money you get back from the IRS is called a “refund,” not a “return.”

It’s understandable that your “refund” might feel like a “return” — after all, the IRS is “returning” money to you. But your tax refund (if you get one) is a different thing. Almost everyone has to file a tax return, but not everyone will get a refund. And sometimes, getting a tax refund is not the best move for your personal finances, since it means you paid extra money to the IRS during the last year.

2. You can get an extension on filing your taxes

April 15 is not always the final deadline to file your taxes. If you need extra time to finish your tax return, you can get an extension until Oct.15. But you have to pay any tax due by April 15 or else you will owe interest and penalties.

3. You can still save money on last year’s taxes

Right up until your tax filing deadline (April 15), you can still put money into tax-deductible accounts that will reduce your taxable income for last year’s taxes. This is called making prior-year contributions. You can use extra cash to make this strategic tax planning move with traditional IRAs, health savings accounts (HSAs), and college savings 529 plans.

4. The difference between HSA and HRA

People with job-based health insurance might have a type of healthcare account called a health reimbursement account (HRA). An HRA is owned by your employer and allows your employer to put money into it for you to use for healthcare costs — but the HRA money does not appear on your tax return. You can’t get a tax break for your HRA.

An HSA is available to people who have a high deductible health plan (HDHP). The health savings account is a tax-deductible account that lets you save for healthcare tax-free, kind of like a tax-deductible traditional IRA. If you qualify for an HSA, for 2023, you can put up to $3,850 (for self-coverage) or $7,300 for family coverage into your HSA for the 2023 tax year.

5. You (probably) won’t get tax write-offs for your charitable donations

Unless you’re a high earner with many thousands of dollars of gifts to charity, you probably can’t get a tax deduction for your charitable contributions. To get a tax break for charitable gifts, you must take itemized deductions — and most taxpayers don’t qualify to do this. In fact, about 87% of taxpayers use the standard deduction.

6. Your marginal tax bracket is not your amount of income tax

If you’re in the 22% tax bracket, that doesn’t mean the federal government takes 22% of all your income. You only owe 22% on the amount above a certain level.

For example, for 2023 taxes, according to the IRS tax brackets, a single filer with $60,000 of taxable income is in the 22% tax bracket. Here’s how much tax this person would owe:

22% of income from $41,775 to $60,000 = $4,009.50, plus…12% of income from $10,275 to $41,175 = $3,708, plus…10% of income from $0 to $10,275 = $1,027.50

So this person’s total federal income tax would be: $8,745. That’s about 14.6% of this person’s taxable income, not 22%.

7. Tax credits vs. tax deductions

Tax credits and tax deductions are not the same thing. Tax deductions reduce your taxable income, but tax credits actually reduce the amount of tax that you owe. A common tax credit is the Child Tax Credit, which pays $2,000 per year per child under the age of 17. For example, if you owe $10,000 of federal income tax based on your income, but you have two children, your tax bill gets reduced by $4,000.

Tax deductions are different, but can also be valuable. If you put money into tax-deductible accounts like a traditional IRA or HSA, this reduces your taxable income and lowers your taxes based on your tax bracket. For example, if you’re in the 22% tax bracket, and you put $6,500 into a tax-deductible traditional IRA for 2023, this IRA contribution will give you a tax savings of about $1,430.

Bottom line: You don’t have to be an accountant to learn some basic lingo about filing taxes. Avoiding these misunderstandings can help you avoid unpleasant surprises on your tax return. Knowing which deductions you can expect to get and how much money you might owe (or get back in a tax refund) can help you have a happier tax season.

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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.
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It’s gotten a bit less expensive to borrow for a home. But read on to see how you can save even more on a mortgage. [[{“value”:”

If you’re someone who’s been looking to buy a home, you’re no doubt aware that mortgage loans have been pretty expensive to sign for quite some time. But right now, as a buyer, you may be in for a bit of relief.

The average 30-year mortgage rate just fell to 6.6% for the week ending Jan. 18, says Freddie Mac. That’s the lowest level seen since May 2023.

To give you some context, let’s say you were looking at signing a fixed 30-year, $200,000 mortgage at 7% a few weeks ago. That would’ve given you a monthly payment of $1,330 for principal and interest. At 6.6%, that same loan translates to a monthly payment of $1,277 for principal and interest. That’s a monthly savings of $53 and an annual savings of $636.

But while it’s a good thing that mortgage lenders have been charging less to borrow, the reality is that there are steps you can take as a buyer to save even more on your mortgage. Here are some to consider.

1. Boost your credit score

The higher your credit score, the more competitive a mortgage rate you’re likely to snag. That’s because borrowers with higher scores read as less of a credit risk to lenders.

If your credit score needs work, some steps you can take to boost it include:

Paying bills on timeLowering existing credit card balancesCorrecting credit report errors

Some of these steps might take longer than others to produce results, such as paying bills promptly. But they’re still worth taking.

2. Make a higher down payment

The more money you put down on your home, the less you have to borrow. And the less you borrow, the less mortgage interest you’re apt to accumulate.

Plus, you might snag a lower interest rate from a lender when borrowing less. That’s because a smaller loan amount translates into less risk on your lender’s part.

However, one thing you don’t want to do is empty out your savings account to make a higher down payment. Make sure to keep enough money on hand to cover costs such as:

MovingClosing costs on your mortgage (unless you roll them into the loan and pay them over time)Initial home repairsFurniture

3. Pay off your mortgage in less time

Last week, the average 30-year mortgage rate fell to 6.6%. But the average 15-year mortgage rate was 5.76%. So clearly, paying off your mortgage in a shorter amount of time could result in a lower borrowing rate.

However, we saw earlier that a 30-year, $200,000 mortgage at 6.6% results in a monthly payment of $1,277. A 15-year, $200,000 loan at 5.76% results in a monthly payment of $1,662. That’s an extra $385 a month, or $4,620 a year that you’re paying.

A higher mortgage payment like that may be too much of a strain on your budget. But if it’s not, know that with a 15-year loan, you’ll pay a total of $99,141 in interest. With a 30-year loan at 6.6%, you’ll pay a total of $259,832. That’s a difference of over $160,000 in your lifetime, which is huge.

Hopefully, as a buyer, you’re encouraged to see that mortgage rates have started to come down a bit. But know that certain moves on your part could leave you paying even less in the course of borrowing for a home.

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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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If you usually visit airport lounges when traveling, check to see if you still have access. Find out what you can do to navigate new changes in 2024. [[{“value”:”

For those who frequently travel, airport lounges can provide some calm on busy travel days. These lounges are private from the chaotic public areas of the airport and are only accessible to select travelers. If you’re a traveler who spends time at these lounges, you should be aware of recent lounge changes so you’re not surprised the next time you fly.

Some credit card issuers and airlines are changing who qualifies for entry to reduce capacity now that airport lounges are more popular. If you’re unaware of recent eligibility requirements, you may be in shock when trying to enter a lounge. Here are some tips to help you navigate such changes in 2024.

1. Review lounge entry requirements before you travel

Just because you had free access to airport lounges in 2023 doesn’t mean that’s still the case in 2024. Some airline loyalty programs and credit card issuers have made changes to who qualifies for complimentary access to their lounges.

You can avoid disappointment at the start of a trip by researching lounge eligibility before you arrive at the airport. If it’s been a while since you’ve received what credit card or elite status benefits you’re entitled to, now is an excellent time to double-check.

2. Consider getting a different credit card

If you no longer have airport lounge perks as an elite-status flier or with the credit cards you own, it may be time to explore other credit card options. Applying for a premium credit card could unlock travel perks like airport lounge access.

Be sure to consider the benefits offered and the annual fee cost before applying for a new credit card. You want to ensure you’ll use the perks provided and that paying the yearly fee doesn’t negatively impact your personal finances. Check out our list of the best travel rewards credit cards to review some options.

3. Have a backup plan

Some airport lounges have capacity limits. So even if you qualify for airport lounge access, you may be denied entry to a lounge on an upcoming trip. It’s wise to have a backup plan for what you will do if you no longer qualify for access or are denied entry.

Here are a few ideas to explore:

Research whether alternate airport lounges are available at the airport and their eligibility requirements.Check to see if you can buy a day pass for a fee.Consider whether a premium airline ticket upgrade (if available) is worth exploring to get free lounge access.If you’re traveling with a companion, ask if they qualify for free lounge perks.

Alternatively, you can research menu prices of restaurants and bars ahead of time to determine if your vacation budget allows for extra costs like this. If you plan to hang near your gate, you can bring a book or download entertainment to your mobile phone or tablet to keep busy. You don’t have to be in an airport lounge to have fun while you wait to board your flight.

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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.Natasha Gabrielle 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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