Money Management

Companies are being forced to be more open about the salaries they’re willing to pay. Is that leading to lower offers? Read on to find out. 

Have you ever gone through the frustration of applying for a job and going through the interview process only to learn the salary being offered just isn’t what you’re looking for? Wouldn’t it be nice if companies could just list salaries as part of their job postings so you don’t have to jump through hoops only to realize the number in question doesn’t work for you?

Well, in some states, listing salaries on a job posting is actually required. And that’s a good thing.

Say you need a minimum salary of $60,000 to be able to pay your mortgage loan and other bills. If you were to find a job that seems interesting with a salary range of $40,000 to $50,000, you’d know right off the bat not to apply. If that same job were to post a range of $60,000 to $65,000, you’d no doubt be more interested.

But while it’s a positive thing that some states require employers to be transparent about pay upfront, that rule seems to be backfiring in some cases. Here’s why.

Employers are adjusting in an unfavorable way

The reason companies are often loath to list salaries on their job postings is that they don’t want to commit to a certain wage upfront. Often, employers will offer up a wage based on a given candidate’s qualifications and how badly they want that candidate.

New laws make it so that some employers have to list a salary range when they post a job. But what many have been doing in light of that is posting lower salaries to fulfill that requirement.

ZipRecruiter, for example, has found that 48% of companies have lowered pay bands for some roles in the past year in light of this new requirement. That doesn’t really benefit job-seekers.

Some employers aren’t complying at all

While some companies are offering up lower salaries to adjust to new pay transparency laws, a good 30% to 40% of those subject to these laws just aren’t complying at all, says Revelio Labs, a workforce analytics firm. That’s a problem, too.

On a positive note, a good 40% of companies have taken to posting salaries for jobs even in states that don’t impose that requirement, according to Revelio. And doing so really does work to everyone’s benefit.

Employers don’t have to waste their time vetting candidates who are only going to say no to a job whose salary isn’t sufficient. Applicants don’t have to waste their time in that scenario, either.

Should you apply for a job whose salary range doesn’t meet your needs?

You may come across a job listing that seems perfect for you, only to see that the salary range isn’t conducive to you paying your bills and meeting your goals for your savings account balance. If that’s the case, don’t write off that job right away.

If the salary range is reasonably close to where you want to be but not quite there, perhaps the company in question has a little leeway to bump that number up. But if the salary range is way off, then you may not want to bother applying.

So let’s say you need a $60,000 salary. If you see a job that interests you with a range of $45,000 to $55,000, then it could pay to apply, because $60,000 isn’t so far off from the top of that range. But if you’re seeing a range of $40,000 to $50,000, that’s a wider gap to bridge.

All told, these new pay transparency laws are good for job searchers, but only to a point. It’s frustrating that some companies are adjusting to these rules by offering lower salaries. But on a positive note, at least this way, job seekers can weed out positions that just don’t cut it from a wage perspective.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2025

If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR for 15 months, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.

Read our free review

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.

 Read More 

Is grocery delivery a rip off? Not necessarily. Read on to learn more. 

We all need to put food on the table. Whether you do your grocery shopping in person versus have it delivered, however, is up to you.

You’ll often hear that grocery delivery is apt to result in a higher credit card tab than shopping in person. Often, that’s true.

That said, a recent CNET study compared the cost of doing a grocery run at Stop & Shop, a typical U.S. supermarket chain, with FreshDirect and Amazon Fresh. It found that the cost of a Stop & Shop haul was just a couple of dollars cheaper than FreshDirect, even when accounting for the tip and delivery or membership fee that comes with the latter. The difference between Stop & Shop and Amazon Fresh was a bit more substantial — more like $12.

If you’ve been quick to write off the idea of grocery delivery due to the cost, you should know that it may be more affordable than you think. Here’s why.

1. You can save money on gas

You might pay a delivery fee and get upcharged to have your groceries delivered. But you know what you won’t spend money on? Gas.

If you’re not driving to stores, you’re not spending money on fuel. And that could amount to a lot of savings depending on the price of gas where you live and how far your go-to grocery stores are.

2. You may be less likely to fall victim to impulse buys

When you walk the aisles at a supermarket, it can be easy enough to spot items that weren’t on your shopping list and throw them into your cart because they look appealing. But you’re less likely to fall victim to impulse buys when you’re ordering your groceries online.

Chances are, when you’re ordering online, you’re making a list and inputting the items from it into an app, as opposed to scrolling through the thousands of grocery items your app shows as available. So you might save some money there, too.

3. You can shop at stores that may not be accessible to you otherwise

Shopping at certain stores for groceries could result in savings — provided you’re able to get to those stores before they close. Perhaps there’s a more affordable grocery store in your area, only you can’t get to it during regular hours due to your jam-packed schedule. In that case, ordering delivery could give you access to lower-priced goods, even if you’re spending extra on tips and delivery fees.

Costco, for example, is a great source of low-cost groceries, but your local warehouse club might have limited hours, or it may be too far away to get over there easily. If you order same-day grocery delivery from Costco, you will pay more than what you’ll pay at your local warehouse club store. But you might still spend less than what you’d pay at a different store.

Grocery delivery can be more expensive than shopping in person. But it may not be so much more expensive, depending on where you shop and the items you buy. If you feel that grocery delivery could make your life much easier, then it may be worth it to spend a bit extra for the convenience.

Let’s say grocery delivery costs you an extra $10 per week. That’s something, and if you’re already barely covering your bills, it may be too much extra to spend. But if you’re doing okay financially, you may just decide that $10 a week is worth the convenience of not having to stress about finding time to shop in person.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2025

If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR for 15 months, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.

Read our free review

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. The Motley Fool has positions in and recommends Amazon and Costco Wholesale. The Motley Fool has a disclosure policy.

 Read More 

Some investors panic and sell their stocks when the market crashes. Learn about the consequences of doing this and why it’s often a bad decision. 

When you invest in stocks, there will be ups and downs for your portfolio. There’s also a strong chance you’ll experience a stock market crash at some point. While there’s no official definition for a market crash, the term is normally used when major stock indexes drop by over 10% in a short amount of time.

Stock market crashes are stressful, and many people aren’t sure how to handle them. Some get so worried that they sell stocks to cut their losses. After all, when there’s no telling how far the market will fall, selling may seem like the safest solution. At least if you sell, you avoid losing any more money.

That’s a decision you could end up regretting later, because it’s one of the biggest investing mistakes. To understand why, it’s important to know exactly what will happen if you sell stocks during a market crash.

You lock in your losses

When your stocks decrease in value, you might think that you’ve lost money. That’s not entirely accurate. These are known as paper losses. If your $100 investment drops to $80, you have paper losses of $20. But it could be worth $85 next week, and $110 in a few months. Paper losses are impermanent, because stock prices fluctuate. You haven’t actually lost money yet.

However, once you sell your stocks at a loss, you’ve locked in your losses. If you sell your $100 investment at $80, then you’ve officially taken a $20 loss.

The benefit is that by locking in your losses, you guarantee they won’t get any worse. The problem is that a market crash is usually the worst time to sell stocks. You’ll most likely be selling at a heavy loss, at a time when prices are at or near a low point.

You’ll miss out when the stock market recovers

Every time the U.S. stock market has crashed, it has eventually recovered. It often takes a few years. For example, the S&P 500 (an index of 500 of the largest publicly traded companies on U.S. exchanges) took about two years to recover from the 2008 financial crisis. But this isn’t always the case. When the stock market crashed in 2020 due to the COVID-19 pandemic, it recovered in just six months.

This doesn’t mean the market is guaranteed to recover, but it’s what has happened so far, and it’s the most likely outcome. Here’s how that impacts investors, depending on what they do with their stocks during the crash:

Investors who held their stocks will see their portfolios recover.Investors who held their stocks and continued investing will do even better. They bought stocks while prices were down, which means they’ll get larger returns.Investors who sold their stocks already locked in their losses, so their portfolios can’t bounce back.

That’s why investors who sell their stocks often regret it. It’s disappointing enough to sell at a loss, and it’s even worse when you see those stocks bounce back later.

Remember that just because your investments are down doesn’t mean they’re bad investments. In a stock market crash, most stocks lose value. If you believe a stock is a good long-term investment, then you should hang on to it and continue investing in it. A market crash is an opportunity to get a better deal on the stocks you like.

You can deduct your losses on your taxes

The advantage of selling stocks at a loss is that you can deduct these capital losses on your taxes. You’re allowed to do this when your capital losses (the amount you lost that year on investments you sold) exceeds your capital gains (the amount you made that year on investments you sold). So, if you have a stock that you no longer believe is a sound investment, selling at a loss could be the best move.

You’re allowed to deduct a maximum of $3,000 in capital losses from your total income for the year. If you lost more than $3,000, you can carry forward those additional losses and deduct them in future tax years. For example, if you have $9,000 in capital losses, you could deduct $3,000 per year for the next three years.

Tax benefits aren’t worth selling a quality investment, though. Imagine if you were an early investor in Apple or Amazon, and you sold your shares at a loss just to save money on your taxes. It’s also worth mentioning that you can’t sell a stock at a loss, buy it back immediately, and then deduct the loss on your taxes. If you repurchase the same stock within 30 days of selling it, that’s considered a “wash sale,” and it can’t be deducted from your income taxes.

LEARN MORE: A Complete Guide to Investing and Taxes

It’s normal to want to avoid losing money, but this desire can backfire if you let it influence your investing decisions. The best approach is to figure out your investing strategy from the beginning, including what you’re going to invest in, how much you’ll invest, and how often. This way, you don’t need to make impulsive decisions during a market crash. You can stick to the plan, continue investing, and wait for your portfolio to recover.

Our best stock brokers

We pored over the data and user reviews to find the select rare picks that landed a spot on our list of the best stock brokers. Some of these best-in-class picks pack in valuable perks, including $0 stock and ETF commissions. Get started and review our best stock brokers.

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. Lyle Daly has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Apple. The Motley Fool has a disclosure policy.

 Read More 

The proposal would expand fiduciary requirements to insurers — and could mark a change in annuity fees. Read on to learn more. 

Congress may be stalled out, but President Joe Biden is busy trying to make good on his campaign promise of combatting junk fees for the average American. His most recent initiative? Putting an end to a popular retirement strategy — the fixed index annuity. Read on to learn more about this type of annuity and what Biden’s latest move might mean for you.

What is a fixed index annuity?

Traditionally, retirement savers have had to choose between capturing growth in financial markets in an investment account and having predictable income streams after leaving the workforce. Fixed index annuities offer an alternative, allowing investors to maximize earnings on pre-retirement dollars and have reliable cash flows in retirement — but the costs can be steep.

The basics of a fixed index annuity are straightforward. While a traditional annuity offers a low, steady growth rate on invested dollars, an indexed annuity ties that rate to the return of a certain index, such as the S&P 500. These products often guarantee a rate floor, meaning that even if the market goes down, savers are protected from losing money. For some savers, the appeal of predictable retirement income without forgoing the returns of the stock market can be very attractive.

But, as with many financial products, the devil is in the details. Many indexed annuities put limits on earnings and charge high commissions. And provisions of certain products can be more detrimental to buyers, such as requiring lock-up periods which could tie up a saver’s money for years.

Biden’s Retirement Security rule

A major priority of the Biden administration has been reducing so-called junk fees that Americans face, and this proposal is the latest effort to follow through on that goal. At a high level, the Retirement Security rule promises to expand current securities regulations to include insurance products such as indexed annuities.

Offering high growth potential and a guaranteed floor to savers is very risky for annuity issuers, which are typically recouped in a few different ways. Most commonly, issuers will not offer savers the full rate that an index returns, either by offering a participation rate or an outright cap on the rate they’ll offer in a given year. Additionally, the commission rates on many of these products can exceed 7%, much higher than alternative market capturing investments such as indexed ETFs.

Annuities make up a large chunk of Americans’ retirement savings, with nearly $50 billion of fixed-income products being sold in the first half of 2023 alone. This means that high commission rates and participation discounts can add up to a significant drag on American savers. Biden’s plan is more ambitious than just curbing indexed annuities, and includes expanding securities laws to non-investment products and expanding fiduciary duties to insurers.

How could it affect you?

If the rule comes into effect, Americans could see substantial changes to the products they’re using to save for retirement. While specific details are yet to be ironed out, the expansion of fiduciary rules to insurers could provide savers with greater transparency and lower costs when it comes to annuity products. The Department of Labor will open the proposal to public comment for 60 days, including hosting a public hearing.

Fixed index annuities can offer retirement savers steady income in retirement while allowing participation in financial markets, but those benefits come at a cost. Common costs associated with the products are limited upside potential and high commissions. Biden’s Retirement Security rule is not a foregone conclusion, and savers should keep an eye on the progress of the Department of Labor before making any changes to their retirement plans.

Our best stock brokers

We pored over the data and user reviews to find the select rare picks that landed a spot on our list of the best stock brokers. Some of these best-in-class picks pack in valuable perks, including $0 stock and ETF commissions. Get started and review our best stock brokers.

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.

 Read More 

It’s never a good idea to stop paying your monthly bills. See the consequences of being late on these common bills. 

Few of us make perfect financial decisions all the time. At some point, you might miss a due date on your monthly bills. (I know I have.)

So, what happens then? The consequences when you don’t pay a bill will depend on how behind you are and the specific type of bill. Here are some general considerations.

If you pay a day or two late

In an ideal world, we’d all have everything on autopay and never have to worry. But stuff happens. Should that “stuff” mean you miss a bill’s due date by a day or two, don’t stress too much. The worst consequence will usually be a late fee.

Even better, you may not even need to pay a late fee. As long as you don’t make a habit of it, many companies will waive an occasional late fee if you pay within 24 or 48 hours. (At the very least, it doesn’t hurt to ask!)

Special considerations: One extra call-out here is your credit card. Paying your credit card even a couple of days late can have two costly consequences:

If you don’t pay your card balance in full by your due date, you lose your grace period. This means your overdue balance will accrue interest. Pay in full as soon as you can to stop that interest from growing.If you currently have an intro 0% APR offer active on your card, paying late may void your offer. In this case, your balances will revert to the go-to APR.

If you pay a few weeks late

Here’s when you’re almost definitely getting a late fee. Beyond that, there isn’t a huge difference between paying two days late or two weeks late for most monthly bills.

Special considerations: The main exception here is rent. While laws vary by state, some states allow landlords to start eviction proceedings when tenants are just 14 days late on their rent. If you rent, it’s a good idea to research the laws in your area so you know your rights.

If you’re more than 30 days past due

When you’re more than 30 days past your due date, the real trouble starts.

For one thing, this is when lenders typically report your account as delinquent to the credit bureaus. Even one late payment on your credit report can tank your credit score. And those late payments will stay on your reports for up to seven years.

How much more trouble you’re in will depend a lot on the specific type of bill.

1. Utilities

What happens when you stop paying your utility bill will vary by state. In general, if you fall too far behind on your utilities, the company can simply shut them off.

However, many states have laws regulating when a utility company can shut off your services. For instance, some states won’t allow utility companies to shut off your gas or electricity if temperatures are below freezing.

The good news is that there are a lot of different programs out there to help you keep the power on. Contact your utility company as soon as you think you may fall behind to work out a payment plan or for more information on assistance programs.

2. Rent

As mentioned above, some states allow landlords to start eviction proceedings well before you’re 30 days past due on rent. That said, you may still be able to get federal or local rental assistance to help with back rent and avoid an eviction.

If the landlord has already filed an eviction lawsuit, you should prepare for your court date. Consulting a lawyer is recommended if you have the ability, though you can also file a written response to the court yourself without a lawyer. Explain what you’re doing to catch up, including any assistance for which you’ve applied. Then it’s up to the judge.

3. Cellphone

Although cellphones have become a virtual necessity for everyday life, the bills don’t have any of the protections you might find with utilities. If you’re more than 30 days late paying your cellphone bill, expect your service to be cut off. Continue to not pay, and say goodbye to your phone number.

4. Credit card

For the first few months after you stop making credit card payments, the bank will try to collect its money. You’ll get calls and letters. But after about 90 days (perhaps up to 120 if the issuer is particularly persistent), the issuer will give up and sell the debt. You’re now in collections.

The collection company is your new bestie, and they’re going to call you a lot. Like, all the time. Thankfully, there are some protections. The law says collection companies can’t harass you, which includes calling more than seven times in a seven-day period. You can also tell them not to call you at work. If a collection company is harassing you, you can file a complaint with the CFPB (Consumer Financial Protection Bureau).

5. Car payment

Repossession laws can vary by state, but in most cases, a lender can repossess your car as soon as you’re delinquent on your loan. The circumstances that qualify as “delinquent” will depend on the terms of your specific loan.

Many lenders will wait until you’re 60 days past due to flag your account as delinquent. (You may even get up to 90 days, but don’t expect any longer than that.) At this point, the lender will hire a repossession company to take your vehicle. It will then be sold by the lender to recover as much money as possible to cover the delinquent balance.

Always reach out

Always, always, always reach out to the company if you think you’re going to be late on a bill. It’s in their best interest to help you pay them, so many companies are happy to work things out.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2025

If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR for 15 months, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.

Read our free review

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.

 Read More 

Over 200 million users shop on resale platforms eBay and Poshmark. Read on to find out which platform you should use. 

My housemate has spent the last 17 years growing her used reselling business on online seller platforms. Her biggest successes, Poshmark and eBay, have earned her thousands of dollars apiece. But they’re not the same — not even close. They cater to different types of sellers.

And they’re huge. eBay boasts 132 million active users as of 2022, and Poshmark caters to 80 million. My housemate and I have experimented with a handful of platforms, and these have been far and away the most profitable.

Poshmark vs. eBay: Which is the better place to sell? Here’s what a professional reseller (@Contempo Closet on eBay) says about how two of the biggest online reseller platforms compare. We’ll compare fees, ease of use, and what items sell best on each platform.

Fees

See the table below for an overview of Poshmark vs. eBay fees.

Poshmark charges almost double the average selling fee of eBay. However, it charges fewer fees overall, and fees are flat. My housemate claims Poshmark is more expensive overall. However, she likes how Poshmark is transparent about fees. She knows what she’ll pay ahead of time.

eBay is comparatively cheap. But there are so many variable fees that it’s impossible to calculate precisely how much you’ll earn after factoring in fees. That makes it difficult to predict how much money eBay will send to your linked checking account.

Bottom line: eBay charges cheaper fees overall, especially to small sellers who open basic accounts and list 50 or fewer items. However, Poshmark’s fees are more transparent.

Ease of use

My housemate used to spend hours refreshing (or automatically relisting) her Poshmark closet. She’d scroll through listings manually, pressing the refresh button. Ugh. It was exhausting as it was boring. Since then, I’ve realized that ease of use is a massive part of what makes a platform great.

Poshmark has since made it easier for sellers to refresh their closets with a “Bulk Refresh” option, making it easy to share your closet. It’s also faster to list clothes on Poshmark than on eBay. (There are fewer fields to fill in.) Everything can be done quickly from the Poshmark app.

eBay doesn’t require sellers to refresh their closets to juice sales. Once you post your goods, you’re done. You can kick back, answer buyer questions, and wait for a sale. However, it takes longer to list items. There are many more fields to fill in, some of them mandatory.

Bottom line: Poshmark offers a more streamlined experience for sellers. It’s easier for sellers to use, especially the app. However, Poshmark offers fewer customization options than eBay.

What sells best

My housemate sells primarily clothes, but she also sells vintage items, accessories, and shoes. She cross-sells most of her items to both platforms, listing items on Poshmark and eBay. After trial and error, we’ve confirmed what sells best on which platform.

Poshmark sells fashion well. Think clothes, accessories, and shoes. eBay also sells fashion and everything else you can think of: electronics, collectibles, furniture, you name it. eBay sells it all, and buyers flock to the platform.

Bottom line: eBay is great for reselling various products, including clothes. You can sell many things on Poshmark, but only fashion products sell consistently.

Which platform is better for sellers?

Poshmark is a better resale platform for sellers who want an easy-to-use experience and are OK with paying up for it. Fees are straightforward, so you’ll know exactly what you’re paying. (My housemate likes using an Excel spreadsheet to track sales and profit data.)

eBay is a better resale platform for sellers who want to focus on reselling anything that’s not fashion (though it’s good for that, too). It’s also the cheapest overall. It offers sellers many customization options, so you can get very specific with your listing details.

My housemate uses both. She makes about 50% of her sales on each platform yearly, though her sales vary month to month. She is a big reseller of fashion products, and both platforms offer a large base of buyers for clothes, accessories, and shoes.

Bottom line: Poshmark and eBay offer different perks. Choose the e-commerce platform that suits you best. If both Poshmark and eBay fit your needs, consider using both.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2025

If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR for 15 months, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.

Read our free review

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.

 Read More