Money Management

Amazon’s holiday deals could be out of this world. But will they be better than what’s released during the retail giant’s Prime Day events? Find out here. 

If there’s one thing Amazon tends to be really good at, it’s marketing. The online retail giant has a way of luring customers in and convincing them to rack up giant credit card tabs to avoid missing out on limited-time offers.

One of the ways Amazon manages to get consumers to shop is by hosting events like Prime Day during the year. This year, Amazon held two such events — one in July and one in October. If you shopped during either event, you may have saved your fair share of money.

But soon enough, major shopping events that aren’t exclusive to Amazon like Black Friday and Cyber Monday will be upon us. And it begs the question, will Amazon manage to outdo itself? Or have Amazon’s best deals of the year already happened?

There may still be some pretty great deals to come

Without a crystal ball, it’s impossible to know whether Amazon’s holiday deals will be better than its Prime Day deals. CNBC did some research and found that the best prices for electronics and toys can usually be found during Amazon’s summertime Prime Day event compared to other major shopping events. But those still aren’t necessarily the best prices of the year.

Meanwhile, CNBC says that Amazon usually has the best prices on health and beauty products on Black Friday. But again, that doesn’t guarantee that this will be the case this November.

That said, one thing to keep in mind about Black Friday and Cyber Monday is that any excess inventory Amazon didn’t manage to sell during its two Prime Day events might be marked down in late November to avoid an overstock. So it pays to spend some time looking at deals during those Thanksgiving weekend events.

It’s not necessarily about getting the lowest price

We can bank on Amazon offering plenty of discounts during events like Black Friday and Cyber Monday. But will they truly be the best deals of the year? Maybe, or maybe not.

Here’s the thing, though: Rather than focus on whether Amazon’s Black Friday and Cyber Monday prices are the best prices offered on the site all year, you’re better off focusing on whether those prices are lower than other retailers’ prices.

Let’s say you’re looking for a specific toy that normally retails for $59.99. Maybe Amazon had it on sale for $34.99 during Prime Day, and on Black Friday, it’s available for $39.99.

That would mean you’re not getting the best price of the year on Black Friday. But if you want that item, and you already missed the chance to buy it on Prime Day, then it almost doesn’t matter that the price was lower earlier in the year. It’s not like you can go back in time and purchase it for less.

So instead of fixating on that, what you’d want to do in this situation is see what other retailers are selling that same toy for during Black Friday. If Target has it for $36.99, that’s a better deal than Amazon. It’s pretty simple.

All told, it’s hard to say when Amazon will offer its best deals of the year. Maybe those happened already. Or maybe they’re happening right now, in the days leading up to Black Friday.

Rather than fixate on getting the best Amazon deal of the year, try to get the best deal available now. Compare Amazon’s prices to those of its competitors, and sign up for invite-only deals for events like Black Friday and Cyber Monday so you don’t get shut out. With any luck, you’ll end up saving money either way — even if it’s not the most you could’ve saved this year.

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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.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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Most potential home buyers are biding their time, waiting for rates to drop. Keep reading to learn when experts believe that might happen. 

If you’ve been planning a big move, but mortgage interest rates got ahead of you, you’re probably wondering how long both home prices and rates will remain high. Here, we’re going to focus on interest rates by looking at what the professionals have to say.

Is there any chance that 2024 will look better than 2023? Let’s take a look.

Historical perspective

It may provide cold comfort, but mortgage rates have been higher — sometimes, much higher. Here are some examples of what American home buyers have dealt with in the past:

1975: 9.05%1979: 11.20%1981: 16.04%1985: 12.43%1991: 9.25%

Depending on what’s going on with the economy as a whole, interest rates go up, and they come down again. What we’re trying to capture now is a sense of when we might expect them to drop.

Early 2024

The Federal Reserve has indicated that we should expect interest rates to come down in the near future. There’s still that pesky issue of inflation to deal with.

Interestingly, the red-hot job market providing Americans with more money in their checking accounts is the primary reason mortgage rates are high. And as long as Americans have jobs and incomes burning a hole in their pockets, inflation will continue to be an issue.

The annual inflation rate was 3.7% for the 12 months that ended in September. That doesn’t sound so bad when you consider that inflation hit 9.1% in June 2022. Still, the Fed is committed to bringing it down to 2%.

Bottom line: On the way to that 2% goal, mortgage rates are likely to remain roughly the same or even drift up a bit more.

The rest of 2024

Predictions must typically be taken with a grain of salt, but based on years of watching trends, the following real estate–related associations and funding sources may be on to something.

Mortgage Bankers Association

The industry group for mortgage lending does not expect mortgage rates to drop below 6% until spring 2024. Even more hopeful, the Mortgage Bankers Association believes rates will fall to 5.4% in the fourth quarter of 2024 (October to December).

Wells Fargo

Wells Fargo’s forecasting group also predicts that rates will fall below 6%, however, it doesn’t expect it to happen as early as springtime. Wells Fargo is saying that rates will be under 6% in the third quarter of 2024 (July to September).

National Association of Realtors

According to the National Association of Realtors, rates will decline to 6% in 2024, giving potential home buyers who currently feel priced out of the market a little more breathing room.

Fannie Mae

The Federal National Mortgage Association, known as Fannie Mae, believes mortgage rates will average 6.5% in 2024, failing to dip below 6% until 2025.

Miscellaneous tips

If waiting on the sidelines until interest rates drop is driving you around the bend, there are a few things to keep in mind.

Remember that waiting isn’t the best move for everyone: As interest rates drop, home-buying interest will increase, making the market more competitive.Comfort yourself with the fact that waiting allows you time to save for a larger down payment: The higher your down payment, the less you have to borrow.If you’re not in a hurry, house hunt in the fall: Once children have gone back to school, households with kids aren’t as interested in moving. That may lead to less competition during the fall and winter months.Take a look at the new home construction market: Home builders remain anxious to close deals. Home builders may also be able to offer concessions like price reductions or a temporary mortgage rate buydown.

There’s no doubt that these are interesting times in the real estate market — possibly one for the books. In order to open the housing market back up, something is going to have to break up the combination of high prices and high mortgage rates. What that “something” will be is anyone’s guess, though.

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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.Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. Dana George 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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Black Friday is just around the corner. Don’t fall for these five common misconceptions about Black Friday prices. 

Black Friday is synonymous with chaotic shopping experiences, but that didn’t stop 130 million Americans from turning out last year, and this year could be even bigger. Between the busy aisles and rapidly dwindling inventory, it’s easy to just toss something in your cart and head for the checkout. But that might not be the best move for your budget.

Black Friday price tags aren’t always what they seem. Here are five assumptions you shouldn’t make while you’re out shopping.

1. The price tag is accurate

Stores do their best, but it’s possible a retailer might incorrectly list an item’s sale price on the shelf or fail to update its records to include the new sale price. So what you see on the sign and what you pay at the checkout could be totally different.

You can avoid this by making a note of the listed price and verifying how much you’re charged for it at the register. If there’s a difference, bring it to the attention of the cashier so you don’t overpay for the item.

2. The price is a great deal

I once remember purchasing a dress online for $50. A few days later, I wound up on the same site again while it was running a sale and saw the dress I’d previously purchased listed for $40. But what was interesting was that the company now listed the “original” price for the dress as $60.

Companies sometimes do this to make it seem like you’re getting a better deal than you actually are. But you can avoid falling for this marketing trick by doing a little scouting in advance of Black Friday. Make a note of what the actual prices are for the items you’re interested in so that when the sale prices are announced, you know exactly what kind of savings you’re getting.

3. The price is the lowest the retailer will offer for the rest of the year

Black Friday is known for its great deals, but many retailers continue to offer specials throughout the holiday season because they know people are shopping for gifts. You might find coupons or other exclusive savings later that could make the item more affordable than just paying the Black Friday sale price.

If you’re on the fence about buying a certain item, consider holding off and monitoring the price to see if it drops further. Or check out other retailers to see if you can find it at a more affordable price elsewhere.

4. The sale price will last all day

Doorbuster deals are products priced much lower than average to draw in customers. But often, these deals are only available for a few hours or while supplies last. If you don’t get there in time, you may not get the deal.

If you’re worried about this happening to you, it’s best to wake up early and plan your shopping strategically. Go for the highest-value items first before moving on to less important items on your list.

5. The price tag is worth it

Even if something is a great deal, that doesn’t mean it’s always worth buying. Think about whether you really need the item first. And consider whether there are more affordable alternatives that could give you the same benefit.

Doing this will help you get the items you need without draining your checking account. And if Black Friday doesn’t turn up the deals you were hoping for, there’s always Small Business Saturday and Cyber Monday.

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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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Black Friday shopping can become overwhelming and lead to impulse spending. Read on to learn why one writer is opting out altogether. 

Most people shop on Black Friday. In fact, a recent study showed around 86.4% of consumers plan to purchase sale items this year. However, I won’t be one of them.

There are a few big reasons why I’m skipping the shopping extravaganza instead of giving my credit cards a workout.

It’s become overwhelming rather than fun

One of the biggest reasons I’m opting out of Black Friday shopping is because the entire process has become too overwhelming. Many stores don’t offer special deals solely on the day after Thanksgiving any more. They have weeks of early Black Friday sales.

Trying to navigate all of that, figuring out which deals are good and bad, and who has the best price over multiple weeks of sales is just stressful and too time consuming. I’d rather use my time to do other things with my money that make a bigger financial impact than saving a few dollars on consumer goods.

The deals may not be that great

There’s another important reason why I’m opting out: The deals often aren’t even that great.

In fact, research has shown that more than 90% of Black Friday “deals” were actually sold either at the same price or lower just six months prior. While this research was conducted in the U.K., it included major international retailers such as Amazon and there’s every reason to believe the same about so-called deals in the U.S. — especially as some older data confirmed many of the bargains are exaggerated.

Some stores also sell derivative products, which are scaled-down versions of an item that don’t have all of the features.

With such a high likelihood of actually getting a bad deal, I’m simply not interested — especially since taking time to research which ones are legit would be a huge time suck with potentially little payout for my personal finances.

It’s still cheaper to buy used

Finally, I’m opting out of Black Friday because even if there’s a good deal on a new product, it’s still cheaper to buy used items.

Most of the stuff I need to purchase for the holidays are toys for my children. And since kids outgrow toys pretty quickly, there’s a huge used market for them. There are several big consignment sales in my area, and of course garage sales are full of baby and toddler toys. I shop throughout the year to get these items at rock-bottom prices that are way lower than new items would cost on Black Friday.

Even items like electronic and video game systems are treated as disposable by many people in today’s world as prices have come down. There are tons of gently used items only a year or two old that are for sale on sites like Craigslist and Facebook marketplace since people update their tech so frequently.

These items are just a model or two behind the current one, and often have most of the features and benefits at a fraction of the price, and they’re fine for me.

Now, if you need certain big-ticket items, want to spend the time researching deals, or do love to get the latest gear, shopping on Black Friday may be something you should do. Just be careful to make sure that the “deals” you’re getting are legitimate by taking the time to research the model number, read reviews, and check recent prices so you don’t waste the hard-earned money in your checking account.

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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.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Christy Bieber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy.

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Have a 401(k)? Read on for a list of key moves to tackle before 2023 ends. 

It’s hard to believe there are only a handful of weeks left in 2023. But at this point, a lot of people are finalizing their Thanksgiving menus and running up large credit card tabs to tackle their Christmas shopping lists. So it’s fair to say that 2023 is almost over.

What this means is that now’s the time to do a deep dive into your 401(k) plan. Here are some essential moves to make before the end of the year.

1. Contribute enough to snag your full employer match

Many companies that offer 401(k)s to employees also match worker contributions to some degree. If you haven’t yet contributed enough to your workplace plan to snag your full match, do what you can to sneak more money into your 401(k) before the end of the year.

The free money your employer is willing to give you for your retirement is money you shouldn’t be quick to give up. After all, how many opportunities do you get for free money?

If your company will match up to $3,000 a year in worker contributions and you’ve only put $2,000 into your 401(k) to date, try your best to make that additional $1,000 contribution. Maybe you can use your year-end bonus or leftover money from the tax refund you got earlier in the year.

That said, 401(k)s have a strict funding deadline. You can’t contribute for 2023 purposes past Dec. 31, whereas with an IRA, you have until next year’s tax-filing deadline to finish contributing to your account.

So if you want to increase your contribution for 2023, contact your payroll administrator now and see what needs to be done. It’s probably a simple matter of filling out a form, but do it sooner rather than later so there’s time to process that change.

2. Check to see how your money is invested

Ideally, you have your 401(k) invested in different funds instead of your money just sitting in cash. But it’s important to make sure your investments are appropriate for your age and goals.

If you’re in your 20s or 30s, you don’t want your 401(k) sitting completely in bond funds. Those may not generate the same strong returns over time as funds that focus on the stock market. And you need those strong returns to grow your balance in the long run.

If you’re not sure whether your 401(k) is invested the way it should be, find a financial advisor to work with. They can review your investments and let you know if you’re on the right track or not.

3. See how much money you’ve been losing to fees

The way your 401(k) is invested will dictate how much you’ll pay in fees. Actively managed mutual funds, for example, will generally come with higher fees than passively managed index funds.

In some cases, it can be worth it to pay investment fees for the benefit of strong performance. But do a review to make sure those fees don’t seem excessive. And if you’re not sure, again, this is where a financial advisor comes in handy. They can most likely help you minimize your fees given your plan’s choices.

You may be counting down to the holidays and getting ready to ring in the new year. But take some time to focus on your 401(k). The moves you make in the coming weeks could have a big impact.

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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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