Money Management

Have a Costco membership? Read on to learn more about some great products from its signature brand. 

Okay, I’ll admit it. When I first joined Costco, I was hesitant to bring Kirkland products home because I was convinced they’d somehow be inferior in quality to the brands I was used to. How else could you explain those ultra-low prices?

But I’m glad I’ve since changed my ways, because through the years, I’ve enjoyed lots of savings at Costco by loading up on Kirkland products. And these days, certain Kirkland products are staples on my weekly grocery list.

If you’re not familiar with Kirkland, it’s Costco’s signature brand. You’ll find the Kirkland name on everything from baby products to baked goods to household supplies. And here are a few Kirkland products I think every Costco member should try.

1. Organic quinoa

Quinoa has been hailed as a supergrain that can serve as a great base or side dish for meals. We eat a lot of quinoa in my household, and I like to add it to chili and stew for extra protein.

At my local supermarket, an 8.8-ounce bag of quinoa costs $3.49. So that’s $0.40 an ounce. Meanwhile, Kirkland makes a mega-bag of quinoa that costs just $10.99 online for a 4.5-pound haul. That’s only $0.15 an ounce.

And also, that’s the online price. Chances are, you’ll find Kirkland-brand quinoa at an even lower price at your local warehouse club store.

2. Kirkland almond butter

I’m a huge fan of peanut butter. But sometimes, I like to mix things up and put almond butter on toast or apple slices instead.

A 27-ounce jar of Kirkland almond butter costs $7.99 online, which is $0.30 an ounce. At my local supermarket, a 16-ounce jar is $8.49, or $0.53 an ounce.

3. Praline pecans

When I’m in the mood for something sweet, I try to offset it by adding a little protein to the mix. And Kirkland praline pecans fit the bill. They’re not overly sweet, and they can be eaten by the handful at night while watching TV or sprinkled onto a salad for a little crunch.

A 2.5-pound jar of these bad boys costs $16.99 at Costco, which amounts to about $0.42 per ounce. Trader Joe’s sells yummy candied pecans, too, but a five-ounce bag will cost you $4.49, or roughly $0.90 per ounce.

4. Cashew clusters

Kirkland makes a delicious cashew cluster that includes almonds, pumpkin seeds, and just the right amount of sugar. This is my go-to snack for a long hike because it’s packed with protein and tasty as heck. And for just $10.99 for a two-pound bag online, it’s a worthwhile investment.

Now, I can’t compare the cost of these clusters to another store because frankly, I’ve never seen a comparable product outside of this Kirkland offering, which you can only find at Costco — at least at a reasonable price. You can technically buy these cashew clusters on Amazon, but the cost there is almost $25 versus $10.99 at Costco.com. And again, you’ll generally pay even less at an actual warehouse club store.

5. Chocolate chips

I happen to do a lot of baking at home, especially during the holidays. And I like to load up on Kirkland chocolate chips because the price is always far more competitive than what’s available elsewhere. A 4.5-pound bag of Kirkland semi-sweet chocolate chips is only $13.99 online, or $0.20 per ounce.

I’ll be honest. There’s nothing spectacular about these chocolate chips. They taste like…chocolate chips, which are a hard thing to mess up. The reason to go for the Kirkland version here really boils down to price alone.

At my local supermarket, chocolate chips happen to be on sale right now. But even so, a 10-ounce bag is $3, which would have me paying $0.30 an ounce.

Some of the Kirkland products you’ll find at Costco are unique items you really can’t find elsewhere. Others are simply more affordable but equally good versions of the products you’ll see in many stores. But either way, it pays to give these Kirkland products a try, especially because Costco stands behind its signature brand (and every item it sells, for that matter). So if you take a chance on a Kirkland item and it doesn’t meet your expectations, you can generally bring it back for a refund without any sort of hassle.

Alert: highest cash back card we’ve seen now has 0% intro APR until nearly 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.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

 Read More 

Have a 401(k) or thinking of opening one? Read on to learn about some of the benefits you might reap. 

Believe it or not, 401(k) plans are more popular than IRAs in the context of retirement savings. The U.S. Census reports that almost 35% of Americans had a 401(k) or a similar workplace plan as of 2020, while only about 18% had an IRA.

IRAs and 401(k)s are similar, in that both offer tax breaks when saving for retirement and both allow you to invest your money to grow it into a larger sum. IRAs, however, come with much lower contribution limits than 401(k)s.

If you have a 401(k) plan, you may be aware of some of the perks that come with it. Your employer, for example, might match some of the contributions you make to your 401(k) so you end up with free money for your retirement. But here are a few lesser-known benefits you might end up taking advantage of with a 401(k) plan.

1. You can withdraw your money at 55 in some cases without penalty

Normally, when you have money in an IRA or 401(k), you can’t take withdrawals prior to age 59 1/2 unless you’re willing to face a 10% penalty on the sum you remove. But there’s an exception known as the rule of 55.

If you turn 55 the year you leave your employer (voluntarily or otherwise), you can start taking distributions from that employer’s 401(k) without getting slapped with an early withdrawal penalty. There’s no such provision that allows you to do the same with an IRA.

2. Your money is protected from creditors

If you become delinquent on an outstanding debt, a creditor may be able to sue you in court. If a judgment is entered against you, that creditor might be able to come after certain assets of yours to get repaid.

But the Employee Retirement Income Security Act (ERISA) of 1974 protects funds in your 401(k) in that situation. A creditor generally cannot come after your 401(k) even if you clearly owe money. The same can’t be said for an IRA, since those accounts don’t fall under that same ERISA protection.

3. You can borrow against your balance when you need a loan

There may come a point when you need to borrow money, whether to fix up your car, repair your home, or get through a brief period of unemployment. If you have your savings in an IRA, you won’t be able to borrow against your balance. But you might be able to borrow against your 401(k) if your plan rules allow for it.

This can be beneficial because instead of paying interest to a lender, you’re simply repaying yourself. And if you don’t have such great credit, qualifying for an outside loan may not be easy. But if you have enough of a 401(k) balance to borrow the sum you need, you may be able to do so with relative ease.

That said, borrowing against a 401(k) can be dangerous, because if you don’t repay that loan in time, it will be treated as a full withdrawal. If you’re not yet 59 1/2 at the time of that withdrawal, a 10% penalty will generally apply. So if you’re going to take out a 401(k) loan, proceed with caution.

Your 401(k) is the sort of thing you may not think about too often. But it pays to read up on 401(k)s so you know what benefits your plan might open the door to.

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 

You might not realize how much Costco actually sells. Read on to learn what bizarre items you can find at your warehouse. 

Not too long ago, the most bizarre store I’d ever come across was a secondhand store in Alabama that sold unclaimed airport luggage. And while that store is still unrivaled in its weirdness, Costco is starting to catch up. In fact, the more time I spend with it, the more I realize Costco sells just about everything. Don’t believe me? Here are three unusual Costco products that had me scratching my head.

1. A 4-person barrel sauna

Ever wondered what it’s like to sauna in a barrel? Costco has you covered. This four-person sauna is made of red cedar, comes with a Finnish stainless steel heater, and can be delivered right to your door.

The price? About $4,000.

That’s actually not bad. When you compare this price with other retailers for the same barrel (six feet in all directions and made of red cedar), you realize you could save between $1,000 to $2,000. Home Depot, for instance, is selling the same model for about $5,700. Buying it from Costco means you would save enough money ($1,700) to cover your Gold Star membership for the next 28 years.

2. Tom Brady’s autograph

For a limited time, Costco is selling a Michigan Wolverines uniform with Tom Brady’s signature for about $2,400. To be fair, the University of Michigan is selling the same uniforms for the same price. But whereas the University of Michigan is just selling uniforms, Costco is including the uniform in a frame.

This isn’t actually the most unusual autographed sports memorabilia I’ve seen Costco sell. Not too long ago, Costco was selling autographed Babe Ruth index cards. While it appears it has sold out of the Bambino’s signature, you can check out its “Sports Memorabilia & Collectibles” page online to see what other autographed stuff it’s selling.

3. 72 pounds of Parmigiano Reggiano

This one is kinda hilarious. For about $950, Costco will sell you a parmesan cheese wheel that weighs about the same as a nine-year old boy. The cheese is imported from Italy and has been aged for 24 months. As far as the price goes, you’re paying roughly $13.19 per pound. Compare that with Amazon ($27 per pound) and Gourmet Food Store ($22.81 per pound), and you can see you’re getting a good deal, if you can store a huge wheel of cheese.

Costco sells more than you think

All in all, Costco has a variety of unusual products. Even if you’re not in the market for saunas, sports memorabilia, or even caskets, these products could teach us a lesson: More often than not, the thing you’re looking for can be found at Costco. And it can often be found at a lower price than other retailers.

If you have a Costco membership, treat the warehouse like you would, say, Amazon. Make it your trigger reaction when you’re shopping for a product. Compare it with other retailers to see if you’re getting the lowest price, but don’t assume Costco only sells giant Nutella buckets and bags of avocados. You might be pleasantly surprised at how much you can help your finances by making one-off purchases at the warehouse.

Alert: highest cash back card we’ve seen now has 0% intro APR until nearly 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. The Motley Fool has positions in and recommends Amazon.com and Costco Wholesale. The Motley Fool has a disclosure policy.

 Read More 

Some car insurance add-ons can be worth their weight in gold. Learn why you should consider adding roadside assistance to your policy. 

Auto insurance policies have a lot of moving pieces, and there are many types of coverage available. It’s a good idea to sit down and review your coverage at least once a year to make sure you have enough to cover a catastrophe and all related costs.

Most companies offer optional insurance add-ons you can opt in for at an extra cost. I recently had a car mishap that made me extremely happy that I pay for one in particular: roadside assistance and vehicle towing.

Adventures with roadside assistance

I’ve had roadside assistance on my auto insurance policy for the entire time I’ve been a driver, and it’s come to the rescue on several occasions, but they’ve been mostly few and far between. In my grad school days, I ran over some debris on the highway and punctured my car’s oil pan. More recently, my partner drove my car into a deep puddle during a rainstorm and rendered it inoperable (I was in the passenger seat). In both cases, I was able to have the cars towed to a repair shop at no cost to me. But my most recent experience with this service takes the cake.

Based on how my car was behaving on a warm day a few weeks ago after a shopping trip, I either needed a new battery or a new alternator. I had the car towed from my home to my regular mechanic for a new battery. Then, right after I picked the car up just an hour later, it acted up again — and my regular mechanic doesn’t do alternators. So I had to call roadside assistance again and have the car towed to a different shop across town.

Both times, it was the same tow truck driver who showed up at my home to take the car — at least he already knew how to get it on the tow truck the second time. Ultimately, I had to spend $1,200 on my elderly car for the battery and alternator — but $0 for the towing.

What’s the cost of a tow versus insurance roadside assistance?

To get a rough idea of how much money I saved, I decided to check the average cost of towing a vehicle. According to J.D. Power, it’s $109 — so I would’ve paid $218 if this was the charge for my recent experience. The charge might have been higher if I’d needed the car towed to a repair shop farther away than just across my small city. Meanwhile, I pay just $3.10 per six-month insurance policy term for this coverage. That comes out to about $0.52 a month — what a deal!

If you don’t currently have roadside assistance on your auto insurance policy, I highly recommend adding it (and if you don’t know, review your policy details or call your auto insurer). A few dollars a year can give you a lot of peace of mind out on the road.

Another potential option that comes with more perks

There is a non-insurance option for roadside assistance and towing I should mention: You can sign up for AAA. AAA’s roadside assistance program might be more flexible than your auto insurer’s — for example, if you sign up for a higher membership tier, AAA can tow your vehicle farther for free than your insurer might.

AAA memberships do cost more than roadside assistance tacked onto your auto insurance policy — I was quoted a price of $29.50 per year for the basic membership. But AAA also comes with all kinds of great perks, so give those a look and decide based on whether you’ll use them and can justify the extra cost.

Having some kind of roadside assistance and towing coverage, whether it’s through your insurer or AAA, is a great personal finance move. If you’re lacking this, do some research and see how much it’ll cost you — it’s worth it.

Our best car insurance companies for 2022

Ready to shop for car insurance? Whether you’re focused on price, claims handling, or customer service, we’ve researched insurers nationwide to provide our best-in-class picks for car insurance coverage. Read our free expert review today to get started.

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 

Americans pay an average of 22% interest on their credit cards. Here’s how to start paying your credit card debt down. 

Americans are having a tough time with credit cards right now. The latest Federal Reserve data shows that credit card interest rates have hit a record-high average of 22%.

To put that percentage in perspective, Americans were paying just 12.7% in credit card interest a decade ago and 15.5% five years ago. And the recent spike is causing some severe financial hardship for some people.

The collective credit card debt for all Americans is a record $1 trillion.

Here’s why you’re paying so much interest each month and a few suggestions for eliminating your credit card debt.

Why are credit card interest rates so high?

The answer to this question probably won’t surprise you. Credit card interest rates are so high because the Federal Reserve has hiked the federal funds rate rapidly and aggressively over the past two years.

The federal funds rate is the rate at which banks lend money to each other, and when that rate goes up, banks then raise the rates on the services they offer. This is why, in addition to soaring credit card interest, mortgage and personal loan interest rates have skyrocketed as well.

The Federal Reserve is trying to tamp down inflation and uses interest rate increases as one of its key tools for doing that. And considering that the economy has been remarkably resilient so far, it’s unlikely the Fed will lower rates soon.

What to do if your credit card debt is getting out of control

There are 70 million more credit card accounts open in the U.S. right now than there were back in 2019, according to the Federal Reserve. This means more Americans than ever are likely looking for ways to help manage their credit card debt.

Here are a few tips for both managing your monthly payments and how to start getting out of debt:

Stop using your credit card: I won’t get creativity points for this suggestion, but it’s one of the best ways to get your finances back on track. I’ve cut down on my credit card usage lately, and the more debt you have, the more important it is to stop using your card.Pay off your balance every month: To avoid paying interest on your credit card, you need to pay off the balance every month. If you can’t do that, try to figure out how much you can pay above the minimum payment amount.Create a budget: I’ve never encountered anyone who likes budgeting, so you’re in good company if you don’t want to do this. However, using a budgeting app makes this process easier. Your goal is to find potential areas where you can cut back on spending or at least learn where your money is going every month so you can manage it better. You may be able to carve out more money to send to your credit card debt this way.Consider a balance transfer card: This may not be the right move for everyone, but transferring your balance to a new card with a 0% interest rate could be a good option for some people. Just make sure to start paying down your balance immediately to take advantage of the low introductory rate.

If you find yourself too far in credit card debt and need to come up with a totally different approach, then you may want to consider a debt consolidation loan. These loans can combine your debt together into one payment, typically with a lower interest rate than your credit card, and make it easier to make monthly payments.

As with taking out any type of loan, you should consider the loan terms, how long you’ll have to repay it, what the interest rate will be, and if you can afford the monthly payment.

And if you need some extra help in getting started, here’s a guide for how to get out of credit card debt.

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

Inflation remains stubbornly elevated. Read on to see what that might mean in terms of interest rate hikes. 

The Federal Reserve has been on a mission to tame inflation since early 2022. In fact, the central bank has raised interest rates 11 times since March of last year in an effort to bring relief to consumers.

At its last two meetings, the Fed opted not to raise interest rates, citing the progress that’s been made in cooling inflation. But with two more meetings still to go in 2023, the possibility of another rate hike continues to exist.

Meanwhile, in September, inflation rose 3.7% on an annual basis, as per the Consumer Price Index (CPI), which measures changes in the cost of common goods and services. Inflation also rose 0.4% on a monthly basis.

This is a vast improvement from the inflation levels we saw in 2022. In June of 2022, the CPI peaked at 9.1% on an annual basis. So by comparison, 3.7% seems manageable.

But 3.7% also isn’t where the Fed wants inflation to be. So there’s a chance the central bank could move forward with one more interest rate hike this year to get to its optimal target.

The Fed is focused on 2% inflation

The Fed has long held that it considers 2% annual inflation to be ideal, as that lends nicely to long-term economic stability. Since annual inflation isn’t quite at that level, the Fed may opt to implement one more interest rate hike this year as a final push.

How do interest rate hikes help cool inflation? It’s simple. The Fed’s interest rate hikes influence the cost of short-term borrowing among banks and financial institutions. When that cost increases, it’s passed along to consumers in the form of higher interest rates on everything from credit cards to personal loans.

Consumers tend to balk at higher borrowing costs and slow down their spending as a result. That helps bridge the gap between supply and demand that drives inflation upward in the first place.

Meanwhile, another rate hike could hurt consumers who are already struggling given the cost of borrowing today. It’s true that consumers who don’t want to pay an exorbitant amount of interest can wait to sign a home equity or personal loan — in some cases. But for someone who needs a car to get to work, waiting to get an auto loan may not be possible.

So all told, consumers don’t want to see interest rate hikes continue. But that’s a possibility everyone should accept.

How to prepare for another interest rate hike

It’s too soon to know whether the Fed will raise interest rates again this year. But if you’re tempted to sign a loan to borrow money for an expense that can wait, holding off on 2024 could work to your benefit.

The general consensus is that the Fed is likely to start cutting rates in the new year as inflation (hopefully) continues to cool. So borrowing may become more affordable at that point.

But if you know you can’t wait to borrow, consider signing a loan now, before another rate hike comes down the pike. And also, check your credit report. If there are errors there, getting them corrected could result in a boost to your credit score. The higher your credit score is, the more likely you are to qualify for a competitive interest rate on a loan.

Of course, “competitive” is a relative term these days. But if you come in as a borrower with strong credit, you’re likely to save on a loan compared to someone whose credit is in a lot worse shape.

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