Money Management

Know someone who’s a big fan of dogs? Read on for some great Amazon finds that make a pawsome gift. 

Owning a dog is a big commitment. Not only do you have to groom and walk him, but you also have to pay for his care. That could mean raiding your savings account when medical issues arise and cutting back on spending to buy special food and supplements your dog might need to stay healthy.

As such, people who adopt dogs tend to really like dogs. And if you have someone like that in your life, you may be shopping for a dog-themed gift this holiday season.

Thankfully, Amazon has a host of gifts that are great for dog lovers. Check out the following items, but be warned that you may be looking at a sizable credit card tab for some.

1. A dog DNA test

2. A private pup couch

3. A dog pendant necklace

Dog-related gifts are truly the greatest when there’s a dog-lover in your life. And hey, if you’re up for the challenge, you could even think about giving your own kids the absolute best gift of all this season — an actual dog to join your family.

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Our experts vetted the most popular offers to land on the select picks that are worthy of a spot in your wallet. These best-in-class cards pack in rich perks, such as big sign-up bonuses, long 0% intro APR offers, and robust rewards. Get started today with our recommended credit cards.

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.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Maurie Backman has positions in Amazon and Target. The Motley Fool has positions in and recommends Amazon and Target. The Motley Fool has a disclosure policy.

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As 2023 comes to an end, it’s time to check your personal finances for the last time. Consider these five money moves before 2024 arrives. 

As we wind down 2023, I’m reminded of last December when inflation was stubbornly high and many economists were predicting a recession. It’s safe to say that recession never came — thanks to strong job growth — and inflation now looks as if it’s losing momentum as we approach 2024. Who knows what the new year will bring, but with the Federal Reserve pulling off an unthinkable stunt (cooling off red-hot inflation without tanking the economy), the 2024 outlook is a little rosier than it was last year.

With that in mind, now is a great time to start tightening up some loose ends and assessing your personal finances for the new year. As you start preparing for 2024, here are some major money moves you might want to make.

1. Max out your retirement accounts

In 2023, you were allowed to contribute $22,500 to your 401(k) and $6,500 to your IRA ($7,500 for those 50 and older).

If you haven’t hit those contribution limits yet, better start cracking. For most 401(k) plans, you have until the end of 2023 to contribute up to the limit, while IRA investors have until tax day of 2024 (April 15) to hit theirs. Take a look at how much you’ve contributed and see what it will take to max out your accounts.

2. Harvest your losses

As you’re looking at your investment accounts, you might as well do some end-of-the-year cleaning. By this I mean selling off stocks and other investments that are clear losers. When you sell off losing investments, your losses can offset the gains from winning investments that you’ve also sold. This is called tax loss harvesting, and it could potentially reduce your tax liability and eliminate some lemons in your portfolio.

For instance, if you sold a stock for a gain of $3,000, you could sell an underperforming stock at a loss of $3,000 and essentially nullify any capital gains taxes you would have had to pay.

Of course, the losing investment has to be held in a taxable brokerage account — it doesn’t work for tax-advantaged accounts, like IRAs and 401(k)s. But the impact on your taxes could be substantial, especially if you’re a high income earner and pay taxes at a high tax rate.

3. Drain your FSA

Flexible spending account holders have until the end of the year to use funds they’ve contributed to their FSAs.

Unfortunately, FSAs function on a “use-it or lose-it” basis, meaning any unused funds could be forfeited to your employer. Sometimes, your employer will give you a grace period of two and half months. If your funds expire at the end of the year, however, now might be a good time to stock up on medications or visit the dentist.

4. Consolidate high interest debt

High-interest debt can fizzle out your excitement over the new year like flat champagne. If you’re struggling to pay off debt, you might want to consolidate your debt before the new year.

One way to do this is to get a balance transfer credit card with a low balance transfer fee. Many of these cards have intro 0% APR periods, during which you can pay down your balance without accumulating more interest. There are some pros and cons to consider — the APR period doesn’t last forever, and the fees can be high — but, all in all, it’s a strategy to consider if you’re struggling with debt.

5. Lock into a high-yield CD

The Federal Reserve announced recently that it will likely start dropping interest rates in 2024. If that holds true, then CD yields, which have been exceptionally high in 2023, might start to shrink in the new year as banks lower rates on consumer accounts. If you have savings you’re not going to use in 2024, now might be the best time to lock it into a great CD rate before the market starts to change.

As 2023 comes to a close, these five money moves could set you up for a good year. Consider them carefully and add them to the other financial tasks you hope to accomplish before the year ends.

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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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It’s not the best time to take cash out of your home, but in some cases, it may be worth it. Find out whether refinancing at a higher rate is a good idea. 

Mortgage rates have actually fallen in recent weeks compared to where they sat earlier on in the fall. In fact, as of this writing, the average rate on a 30-year mortgage is 6.95%, per Freddie Mac.

But while mortgage lenders have lowered their rates more recently, borrowing is still pretty expensive for home buyers. It’s also an expensive time to refinance a mortgage.

But there’s a special type of refinance called a cash-out refinance that could still make sense today, despite higher borrowing costs. And if certain circumstances apply to you, you may want to refinance your mortgage after all.

There needs to be a good reason

A cash-out refinance allows you to borrow more than your remaining mortgage balance in the course of swapping an old home loan for a new one. Let’s say you owe $150,000 on your mortgage, but have a home worth $300,000. If you need to borrow $50,000, you could do a $200,000 cash-out refinance where the first $150,000 pays off your original mortgage and the remaining $50,000 goes to you to use as you please.

It’s generally best to do a cash-out refinance at a time when mortgage rates are low. Today, that’s not the case. But it could still pay for you to take cash out of your home under the right circumstances.

Let’s say you’ve expanded your family since buying your home and are desperate for added living space. If you have a basement waiting to be finished and you need money to pull that off, that would be a good reason to do a cash-out refinance even if you’re not getting the best borrowing rate out of the deal. An upgrade like that could seriously improve your day-to-day quality of life.

You might also want to consider a cash-out refinance today if you have a lot of high-interest debt to pay off. Going back to our example, let’s say you owe $50,000 on your credit cards and are paying 20% interest on that debt. If you’re able to do a cash-out refinance at 7%, you’ll lower the interest rate on that debt tremendously.

Of course, you’ll need to consider the fact that you might be raising the interest rate on your remaining mortgage balance. But let’s say you’re paying 5% on your mortgage now. Raising your interest rate to 7% could make financial sense if it helps you consolidate your credit card debt.

And remember, you can always refinance a refinance. So if you do a cash-out refinance today and rates fall three years from now, you can potentially get back to your 5% rate. Only then, you’ll have spared yourself from accruing 20% interest on a really large credit card balance.

Make sure your credit score is in good shape

For many homeowners, a cash-out refinance won’t make sense today based on where rates stand. But if any of the above scenarios apply to you, then it could pay to take cash out of your home.

That said, to snag the best rate possible on a cash-out refinance, make sure you’re coming in with strong credit. And if your credit score could use some work, try your best to raise it before applying for a new mortgage. You can boost your credit score by paying all bills on time and correcting errors on your credit report.

Paying down credit card debt can also result in a credit score bump. But if you’re looking into a cash-out refinance for the express purpose of dealing with credit card debt, then that may not be much of an option.

Our picks for the best credit cards

Our experts vetted the most popular offers to land on the select picks that are worthy of a spot in your wallet. These best-in-class cards pack in rich perks, such as big sign-up bonuses, long 0% intro APR offers, and robust rewards. Get started today with our recommended credit cards.

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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