Money Management

I was supposed to close on my house on Sept. 15. Instead, my closing has been impacted by unpaid liens on my new house. Read on for my cautionary tale. 

I signed a contract to buy a house in June of 2023. I was ready and eager to move in and was supposed to close in September as the sellers asked for a later closing date.

Despite the fact I had my mortgage loan all lined up and was ready to go, it is now mid-December and I still haven’t closed on the property. Here’s why I’ve had to sign multiple extensions and I’m still waiting to make the house my own.

This problem delayed my home sale — and it could delay yours

The reason I have not yet been able to actually become the owner of my new home is a simple one. There are two liens on the property. The sellers bought the property due to a homeowners association foreclosure. When they purchased it, there was a first mortgage and a second mortgage that were both very delinquent.

The mortgage holders had a legal interest in the property, which stayed with the house. The liens on the property meant the sellers had these outstanding claims to deal with — they didn’t own the home outright. They could not transfer the house and give me a clean title (which, basically, is a fancy way of saying full ownership of the property).

A mortgage lender won’t give you a loan for a house if the sellers can’t deliver a clean title and I wouldn’t have wanted to buy a house with the outstanding claims attached anyway — they would have become my responsibility. So I had to wait for the sellers to make a deal with these two mortgage lenders to pay off the unpaid balance so the liens would come off the home and the house could be transferred to me.

The sellers were not very clear on how long this would take and kept telling us that they were working on a deal with the bank and it would happen any day. This, of course, has turned out not to be true — which is why I’m still waiting months later to finish the home purchase.

Be careful about buying a property with outstanding claims

In our particular situation, we were willing to wait for this house because it is a very special house. We could do that because we had another place to live and because we found a truly wonderful mortgage lender — the best one I ever worked with — who has helped us to keep our file open and active so we wouldn’t lose our loan as we waited and waited for closing to happen.

This is not the case for most home buyers. If you can’t wait months for issues to get resolved, you should be very careful about buying a home that has any liens attached to it (other than a mortgage that the current sellers took out and will pay back upon closing). If there are creditor claims on a property, it could take a while to resolve those and sellers may not always be able to do it on the timeline you expect.

It’s also important to know that you’ll likely need to buy title insurance when you purchase a home. Title insurance is issued after a title company does a search for any outstanding claims. If all comes up clear, they’ll provide insurance so if some surprises show up down the line, you won’t lose money dealing with the unexpected claims on your property. Your lender will require title insurance, and you should insist upon it even for a cash sale to protect you against surprise claims.

Since you’ll have to get title insurance anyway, you may want to have a title search done early in the process — or check court records in the county where the property is located — before you commit to buy any home. This could save you from coping with the aggravation and stress I’ve dealt with and help you make sure you’ve made an offer on a home that will close on time.

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Before anyone buys a new car, it’s important to consider the cost of insuring the vehicle. Read on to learn why this is crucial. 

The holiday season can be a great time to buy a new vehicle — and that’s not just what car companies would have people believe with their Christmas ads. Most dealers have year-end sales events with special bargains and often slash prices in an effort to clear out old inventory and make room for the new.

Those who are buying a new vehicle, though, should make sure to do one unexpected task first before writing a check out of their checking account or securing a car loan and signing on the dotted line to become a car’s new owner.

Do this before purchasing a new car for Christmas

Anyone who is thinking about purchasing a new car for the holidays — or really at any time during the year — needs to get a quote from an auto insurance company for any vehicle model they’re interested in buying.

It may seem as if getting a car insurance quote on a vehicle that someone doesn’t yet own is a strange thing to do. But there’s a simple reason why it really matters: There’s a huge difference in how much it can cost to insure different vehicles.

In fact, while a 40-year-old married female homeowner in Florida would pay $1,404.28 for a six-month policy to insure a 2024 BMW X-5 (a midsize SUV) with a major carrier, a different midsize SUV (a Nissan Rogue) would have a six-month premium of $1,282.31 for the same coverage. That’s a difference of $121.97 over six months or almost $250 per year.

Now, some drivers may decide they would rather buy the vehicle they’ve been dreaming of even if it means paying thousands of dollars more in insurance costs over a decade. But it’s important to realize that there can be a dramatic difference in insurance costs over time and to go in with both eyes open.

How to get insurance quotes before buying a car

Fortunately, it is really easy to get insurance quotes before buying a new car for the holiday season. Most insurers provide quotes online and don’t require proof of ownership in order to find out the premium price for insuring different vehicles.

To get an idea of what it might cost to insure different vehicles, pick a big-name insurer or two and visit their websites to request a quote. It will be necessary to provide some basic details to get an accurate one, including:

The names and addresses of all drivers in the householdThe vehicle year, make, and model of the cars that could potentially be purchasedThe driving record of individuals in the householdThe age when each person in the household who will be driving the vehicle obtained their driver’s licenseWhether the drivers of the car own or rent their homeThe marital status of the new car’s owner

Be sure to do this with each vehicle under consideration for purchase to make sure insurance costs are clear upfront before going forward with the sale.

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Forecasts indicate that 31.5 million people will take a cruise by year’s end. Here’s one type of cruise that could save them up to 50%. 

If you’ve been tucking money into a savings account for a cruise, you may be able to book your voyage sooner than you expect. That is if you’re interested in a repositioning cruise (sometimes called a “repo cruise”).

A repositioning cruise is not your everyday, typical cruise, though. Here, we’ll tell you what a repositioning cruise is, how much it could impact your personal finances, and what you can expect if you go aboard.

How repositioning cruises work

Each year, cruise ships around the world relocate from one region to another. For example, a ship may spend summer months cruising waters around Europe, then spend winter cruising the Caribbean. For shipping companies, it’s all about maximizing the number of months it can operate and take on new passengers.

It’s when those cruise ships move from one part of the globe to another that repositioning cruises take place. Shipping companies allow passengers to book passage on these repositioning cruises, a move that saves those passengers an average of 50% compared to a typical round-trip cruise from the same port.

Here’s the catch: Let’s say you sail out of Amsterdam. Since the ship is moving for the season, there will be no return trip to Amsterdam. Instead, you might end up in Jamaica or Panama, meaning you’ll end up paying for an additional flight to get back home. This is when it pays to compare prices to find the lowest-cost flight.

How a repositioning cruise is similar to a traditional cruise

Any amenities available on a cruise ship remain available to passengers on repositioning cruises. For example, if the ship you choose offers rock climbing, ice skating, or zip-lining, you can expect to have access to those features. You’ll enjoy the same casino, game nights, shows, gourmet cuisine, swimming, and other activities enjoyed by typical cruisers — you’ll just do it with fewer passengers onboard.

How a repositioning cruise is different than a traditional cruise

Repositioning cruises typically carry fewer passengers than traditional cruises, so if you’re someone who prefers to avoid crowds, this may be the right cruise for you. Voyages are normally longer, sometimes weeks longer. You’re far more likely to cross from one sea to another on a repositioning cruise.There are fewer ports of call. If your jam is stopping at a new port of call every day or two, you’ll find that repositioning cruises don’t do that. However, the ports they do stop at tend to be a bit more exotic and off the beaten path. Repositioning ships normally offer more onboard activities than a typical cruise, mostly because passengers will be spending more days at sea.Repositioning cruises make it easier for people to see the world without emptying their bank accounts or maxing out their credit cards.

What’s interesting about being aboard with fewer passengers is that staff size does not change during repositioning. So, if you’re someone who likes to feel pampered, this may be the cruise for you.

For some, there are a few downsides

Repositioning cruises are not for everyone. For example:

Some cruises last for weeks, making them off-limits to people who can’t get enough time off work.If you sail on a smaller ship, you may sometimes experience rough waters as the ship moves from one point on the globe to another. Repositioning cruises take place primarily in the spring and fall, making it difficult for families with kids in school to get away.

By the way: If you prefer a vacation with few or no children around, a repositioning cruise may become your favorite mode of travel.

How to find a repositioning cruise

If you’re interested in finding a repositioning cruise that fits your preferred itinerary and timeframe, the best place to begin looking is online. Check out online forums to pick up tips from previous repositioning cruisers. If you find a cruise you’re particularly interested in, you can call the cruise line directly or work with a travel agent.

There are all kinds of ways to save money on travel. However, if you decide that a repositioning cruise is the way to go, you’re in for an experience unlike any other.

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Want to earn interest on your money? Read on to see if a six-month CD is a good choice for you. 

If you have money you’re earmarking for emergency expenses, then putting it into a savings account is your smartest bet. With a savings account, you can access your money whenever you choose.

CDs work differently. With a CD, you’re committing to tying up your money for a preset period. And there can be penalties for cashing out a CD before it comes due.

Those penalties tend to depend on the bank. But at Capital One, for example, you’ll lose out on three months’ worth of interest for cashing out a CD with a term of 12 months or less before it matures. So if you’re going to open a CD, make sure that’s the right choice, and that you can afford to part with your money for its duration.

CDs come in a variety of terms, and many banks offer six-month CDs. You may be interested in going this route in 2024, but know that there are pros and cons to consider.

The upside of opening a six-month CD

CD rates tend to be higher than savings account rates because you’re making a commitment to keeping your money in the bank. Also, CD rates are guaranteed for the duration of your CD. If you open a savings account, you may find that after two or three months, you’re no longer earning as high an interest rate.

One reason it could pay to stick to a six-month CD in 2024 is that you’re not making too long a commitment. Let’s say you’re trying to save money to buy a car by the end of the year. You might put your cash into a six-month CD to avoid the temptation to spend it on something else. But at the same time, you’re not locking that money away for too long, so if you want to access it later in the year for that vehicle purchase, it should be available to you.

The downside of opening a six-month CD

If you stick with a six-month CD, you may not earn as high an APY on your money as with a longer-term CD. For example, as of this writing, Capital One is offering a 4.35% APY on a six-month CD. But if you open a 12-month CD, you can get an APY of 5.25%.

Also, you might specifically want to lock in a longer-term CD in 2024 due to the potential for rate cuts from the Federal Reserve. Inflation has been cooling nicely, so much so that the Fed was able to pause its interest rate hikes during its last three meetings. If inflation continues to calm down, the Fed may move forward with rate cuts in 2024.

That could be a good thing for consumers, as it could lead to more affordable borrowing opportunities. Lower rates could also provide relief for consumers with variable interest debt, such as credit card balances. But it could also lead to lower CD rates across the board.

If you open a 12-month CD at the start of 2024, you’ll be guaranteed a certain interest rate for the duration of the year. With a six-month CD, you might have to renew your CD mid-year, at which point interest rates could be lower.

Either way, if you decide to move forward with a six-month CD, take a look at what different banks are offering. Even though six months isn’t a super long period, you should still do what you can to lock in the most generous rate possible.

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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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Costco is selling limited gold bars. Find out how to purchase them at Costco.com while they’re still in stock. 

Regular Americans are no longer limited to buying gold through ETFs or bullion companies — you can buy the precious metal through Costco, your friendly local wholesaler. All you need is a Costco membership and access to the internet.

Why? Well, the economy is being weird, so gold is a nice hedge. Nothing says stability like a chunk of gold. At the very least, you can use it to bonk the head of would-be pursuers when the apocalypse commences. Jokes aside, Costco is a popular doomsday prepper destination.

Welcome to (almost) 2024, folks.

Less interesting (but potentially more immediately useful), gold can be part of one’s investment portfolio. Typically, people don’t buy it in person, but you certainly can. And, judging by how often these gold bars sell out, the demand is there.

Interested in buying high-quality gold from a trustworthy source? Read on to learn how to buy gold bars at Costco.

How to buy gold bars at Costco

Follow these steps in order to make your gold bar purchase from Costco:

Purchase a $60 yearly Costco Gold Star membership (the basic membership) if you don’t have one already.Check if gold bars are available on Costco.com. They may be sold out.Log into Costco.com and purchase up to two bars, the limit set by Costco.Provide your signature upon delivery. Make sure you’re at home on delivery day.

Costco sells more than one brand of gold bars. Examples:

1 oz Gold Bar PAMP Suisse Lady Fortuna Veriscan (New In Assay) (buy it here)1 oz Gold Bar Rand Refinery (New in Assay) (buy it here)

In September, Costco CFO Richard Galanti said they sell out fast. If they’re sold out now, you can check back later; Costco may have restocked.

Costco gold bars cost around $2,000

Members who log into Costco can confirm that Costco gold bars sell for about $2,000 each, near the current market price of gold.

Delivery is three to five days, and Costco doesn’t offer refunds. On the bright side, reviews are positive, and Costco has a reputation for delivering quality products.

If there are none available on Costco’s website, check back later. Chances are, Costco will restock, giving interested buyers the opportunity to buy more gold.

Pros and cons of buying Costco gold bars

Buying gold bars from Costco comes with some upsides, as well as a few downsides.

The pros

Costco is trustworthy, the bars are affordably priced relative to other gold bars, and it’s a convenient way to store value without relying on a broker. Once you have it, it’s yours to keep, and nothing short of a break-in is going to rob you of your investment.

Gold has historically become more valuable over time, albeit slower than the stock market. Its value is one of five good reasons to invest in gold.

The cons

You must be a Costco member, and there are simpler ways to diversify your portfolio. You can instantly purchase shares of a gold ETF through an online stock brokerage. You can also buy Bitcoin quickly as a hedge against widespread economic instability. Costco’s gold bars are not returnable either, so if you change your mind, you’re out of luck.

Who should buy gold from Costco?

Costco members who want to purchase gold bars from a trustworthy source should consider buying gold from Costco. It’ll probably be quality, and it’s an easy way to dip one’s toes into precious metals. If you’ve bought from Costco.com before, it’ll be a familiar experience.

But members may want to keep an eye on other online sellers of gold. Sites like JM Bullion may offer better prices, especially when factoring in the $60 annual Costco membership fee. Do a quick side-by-side comparison to ensure you’re getting the best rate.

I won’t be buying gold from Costco — I’d rather invest my money in Bitcoin and the stock market — but neither will I be warning away interested friends and family members. Buying Costco gold is one of many legitimate (if limited) ways to invest in gold.

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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.Cole Tretheway has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin and Costco Wholesale. The Motley Fool has a disclosure policy.

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Earning a lot of money doesn’t guarantee you a millionaire retirement. Read on to see why. 

The average 60-something nearing retirement has $112,500 saved, reports Northwestern Mutual. But your goal may be to retire with a lot more money than that. You may even have the aim to retire with 10 times that much, or $1 million or more.

If you earn a salary of $100,000 a year, you should know that you may have an easier time meeting a goal like that than someone earning, say, $60,000 a year. But earning a high salary alone does not guarantee that your savings goal will be met. For that to happen, you’ll need to spend your money wisely and make long-term savings a priority.

It’s all about what you do with your money

Over the past 50 years, the stock market has rewarded investors with an average annual return of 10%, as per the performance of the S&P 500 index. This means that if you save $200 a month in an IRA or 401(k) over 40 years, and your portfolio delivers that same 10% return during that time, you stand to retire with over $1 million.

Meanwhile, it’s fair to say that saving $2,400 a year is pretty doable when you have a $100,000 salary. That’s only 2.4% of your income. And, with a traditional IRA or 401(k), you get a tax break on the money that goes into your account (whereas with a regular brokerage account, you don’t). So that makes it even easier to save.

But just because you have the potential to save for retirement doesn’t mean you’re actually going to do it. What sometimes happens to higher earners is that they end up falling victim to lifestyle creep.

As your salary grows, you may be inclined to take on expenses that allow you to enjoy the fruits of your labor. That could mean buying a more expensive home and driving a more expensive car. It could also mean dining out more frequently and taking a luxury vacation every year instead of alternating with more modest ones. All of these habits, however, could end up monopolizing your income to the point where there’s no money left over to fund your retirement savings.

To be clear, if you earn $100,000 annually, you’re probably getting paid that salary as a result of hard work. And you absolutely deserve to enjoy your success by treating yourself to nice things. But you may need to set a limit to help ensure that your nest egg isn’t neglected.

Another option to consider? Automate the process. If you have a 401(k), contributions are made automatically through payroll deductions. With an IRA, you’ll have to set up an automatic transfer. But if you commit to that transfer, you’ll be sending money into your retirement account before you get a chance to spend it all, thereby making it more likely that you’ll be able to meet your savings goal.

Don’t assume you’ll be all set

Having a high salary might give you confidence that you’re going to be able to achieve your various financial goals, including being able to retire comfortably. But that’s not guaranteed. To get to that point, you’ll need to make sure you’re limiting your spending to some degree, all the while saving and investing in the right accounts that make it possible to grow wealth.

Retiring a millionaire on a $100,000 salary is something that absolutely can be done. Just make sure to set yourself up to make that happen.

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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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