Money Management

Costco can be a great place for eyeglasses. Read on to see how the experience recently improved. 

There are plenty of benefits to having a Costco membership, like getting to reap big savings on groceries and other household essentials. And if you wear eyeglasses, you may want to purchase them at Costco for the savings involved.

In addition to competitive pricing, Costco members can receive $30 off of a second pair of glasses (because we all need a spare pair in case our primary pair falls to the floor and shatters, or gets knocked off your face by an excited child or dog). And you don’t even have to visit a warehouse club store to get your glasses, either. You can order them online through Costco’s optical center.

Meanwhile, the process of buying glasses online through Costco just got a lot easier thanks to a new feature. You may want to check it out if you’re ready to update your glasses or purchase a back-up pair.

The convenience of a store without having to leave the house

In recent years, many consumers have turned to retailers like Warby Parker for eyeglasses for the savings and convenience involved. The great thing about Warby Parker is that you can order sample glasses for an at-home try-on to see if they look good on you.

Costco hasn’t quite gotten to that level. But one thing you can now do on Costco.com is try on glasses virtually.

Here’s how it works. You begin by recording a selfie video that has you rotating your head left and right. You don’t need to upload a file from your phone, either. As long as you have a webcam on your computer or laptop, you simply follow the prompts on screen.

Next, you follow directions to measure the distance between your eyes. This helps ensure your glasses are a good fit.

From there, you’ll be able to virtually try on different frames. You’ll see exactly how the options you choose look on your face. And if you find something you like, you can then simply order your new glasses as long as you have a valid prescription.

(If you don’t, you can schedule an eye exam at Costco. But that’s something you’ll have to do in person, which sort of defeats the convenience of a virtual try-on. So in reality, this new option is really best maximized by people who already know what prescription they need.)

An easy way to see

Finding the right eyeglasses can be a hassle — but it doesn’t have to be. If you don’t want to have to go to the store to buy glasses, and you’d rather not use a service like Warby Parker where you’re waiting for your try-on samples to arrive in the mail, then Costco could be a good bet.

You should also know that if your glasses arrive and don’t fit as well as you’d like them to, Costco will adjust your frames for free. And here’s something cool — it will do the same for non-Costco frames if you’re a member. You will, clearly, need to visit the store for this to happen. But it’s a nice perk nonetheless.

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 

Receiving notice of a non-renewal or cancellation of your homeowners insurance policy can be terrifying. Find out what options are open to you. 

“I can’t impress upon you the stress the board was under,” said a member of a small homeowners association (HOA) in Boca Raton, Florida. By law, their HOA has to have insurance, but they couldn’t find another policy after receiving a non-renewal notice. Eventually, Citizens — the insurer of last resort in Florida — said the community had to add new roofs and meet various other conditions before they’d approve the policy.

“They kept giving us deadlines, and we were always under the gun to meet their deadlines so that maybe they’d insure us,” said the long-time resident, who asked to remain anonymous. Citizens did write the policy with only hours to spare. But it was a close call and the community is still worried the policy could be canceled in the future.

Sadly, this is just one of many similar homeowners insurance stories you’ll hear right now. A recent report from the First Street Foundation said that 6.8 million American homeowners have already been hit with home insurance rate hikes, or worse, non-renewals. Here’s what to do if it happens to you.

What to do if your insurer cancels your home insurance policy

You may well be feeling a mix of frustration, stress, and worry at the thought of losing your homeowners insurance coverage. But try not to panic. Most of all, resist the temptation to ignore the problem. Depending on where you live, your insurer should give you between one and three months’ notice if it won’t renew your policy. That isn’t a lot of time, especially if you need to get building work done, so it’s important to start looking for a new policy as soon as possible.

1. Find out why your insurer won’t continue your policy

Your home insurer may have explained its reasons for non-renewal or cancellation in writing, but it is still worth picking up the phone and talking to a representative. Not only can you ask for more information on why, but you can also ask if the company might reconsider the decision. Find out if there are steps you might take — specifically repairs or renovations that might make your insurer reinstate your coverage. If you don’t agree with the decision, you can challenge it by contacting your state’s insurance department.

Common reasons for cancellations or non-renewals are:

Multiple claims on the property or long-term vacancy.The insurer deems the whole neighborhood too risky and is pulling out completely.A home inspection revealed issues. This could be problems with your HVAC system, general maintenance, or roof. If your roof is older than 20 years, it can also trigger a non-renewal.

2. Shop for a new policy and take steps to improve your insurability

Unfortunately, if your insurer dropped you because of a condition issue with the property, you’ll almost certainly have to address the problems before another company will take you on. That said, shopping for a new insurer goes hand-in-hand with making any repairs. It’s good to start shopping around and find out what a new company might want before you spend a lot of money on renovations.

According to Architectural Digest, a new roof could cost anywhere from $5,700 to $12,500, depending on factors like size and materials. At an individual homeowner level, you may not be able to do a lot about wider climate risks. But there might be steps you can take to make your property more resilient. For example, Cal Fire suggests installing dual-pane windows with tempered glass or walls made from materials such as stucco or fiber cement that will be more flame resistant.

If you don’t have cash in the bank or your emergency fund, there are several ways you might finance home renovations. If you’re worried about taking on debt, it is understandable and there are no easy answers. Try to weigh the cost of the debt against the potential impact of losing your home insurance.

3. Consider a FAIR plan

Unfortunately, as the Boca Raton HOA discovered, you might not be able to get a policy with any of the insurers you try. Before you give up, ask your state’s insurance department for a list of insurers that might cover you. It’s also worth checking with your neighbors to find out what company they are with.

If this doesn’t work, some states have what’s known as an insurer of last resort. Also known as FAIR plans, which stands for Fair Access to Insurance Requirements, these policies were designed to help people who couldn’t get regular insurance. The Insurance Information Institute keeps a list of FAIR plan numbers for each state.

FAIR plans are not a “get out of jail free” card. The programs don’t have to accept every homeowner and the plans often cost more and give you less in terms of coverage. You may still have to make costly renovations to your property to qualify. However, it may be the least-worst option. If you can’t get a FAIR policy, you may have to resort to something called surplus lines insurance, which can be even more expensive.

One issue for many homeowners is that mortgage companies require home insurance. If you can’t find an insurer that will cover your property, the Consumer Financial Protection Bureau warns that your mortgage lender may take out a forced-place insurance policy. It warns that this can cost as much as double your previous policy and will usually protect the lender, not you.

Bottom line

Many Americans are grappling with soaring premiums or non-renewals in what is a growing home-insurance crisis. If you get dropped by your insurer, the sooner you start to look for a new policy the better. Be prepared to take on what could be costly renovations to make your property more insurable.

Our picks for best homeowners insurance companies

There are many homeowners insurance companies to choose from. We’ve researched dozens of options and short-listed our favorites here. Looking for a green build discount or easy bundle policies? Want an easy-to-use interface? Read our free expert review and get a quote today.

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 

Your net worth can be an important number to know. Read on to learn how to calculate it. 

You may have heard the term “net worth” used to describe someone’s financial situation, but what exactly does it mean? In a nutshell, net worth takes account of not only the savings and other assets an individual, family, or business has, but also how much money it owes.

Think of it this way. Who is richer? Someone with $1 million in savings and real estate assets or someone with $250,000? You may be inclined to say the millionaire, but there’s a lot more to the story. And that’s where net worth comes in.

In this article, we’ll discuss how to calculate your net worth, as well as why it can be important for evaluating your personal finances.

What is net worth?

Net worth is the difference between assets and liabilities. It can be calculated for an individual, an entire family, or for a business. For our purposes, we’ll focus on individual net worth, but the general calculation process is the same in all situations.

Before we can get into the calculation process, it’s important to know what to include as assets and liabilities.

For net worth purposes, your assets include the balances of your checking and savings accounts, investment accounts, retirement accounts, and the value of any major assets you own, such as your home and car (if you own them). Ideally, you can use a professional appraisal for your home and Kelley Blue Book value for your car, but if you don’t have these things, it’s fine to estimate if you just want a quick estimate of your net worth.

Anything of significant value such as jewelry, fine art, and collectibles can be included, but it isn’t necessary to add up the value of every little thing you own. It’s common to include “home furnishings” as one line item, with an estimated resale value of all of the furniture and decorative items in your home.

Liabilities include money you owe. Consider your mortgage loans, auto loans, personal loans, credit card debt, and other situations where you have agreed to pay someone back. You don’t have to count small, recurring bills — for example, your current electric bill doesn’t necessarily need to be counted if you want to determine your net worth.

Of course, there are some gray areas in this process, and if you were to ask a few financial professionals to calculate your net worth, you’ll likely get a few slightly different results.

Calculating your net worth

Let’s consider a simplified example. We’ll say that you own the following assets, and these are their values:

Checking and savings accounts: $20,000Brokerage account: $50,000Retirement accounts: $250,000Value of your primary home: $500,000Value of your car: $30,000Home furnishings: $50,000Jewelry and collectibles: $20,000

Adding these together, we see that the total value of your assets is $920,000. We’ll also say that you have the following debts:

Mortgage: $300,000Auto loan: $10,000Credit card balances: $5,000Home improvement (personal) loan: $30,000

This totals $345,000 in liabilities. To calculate your net worth, you would subtract this number from the total value of your assets, which would give you $575,000.

As mentioned, this is a simplified example. Your assets and liabilities aren’t likely to be such round numbers, and there are likely more line items you’ll include. But this is the general framework of how you can calculate your own net worth.

Does your net worth matter?

Net worth is perhaps the best numerical representation of how wealthy someone is. Two people with $1 million in the bank can have very different financial situations, and net worth is a way to level the playing field.

To be sure, net worth isn’t the only important metric to assess how financially comfortable you are. For example, if you have a $1 million net worth but spend $200,000 per year to maintain your lifestyle, you may not feel as wealthy as someone with a $1 million net worth and who spends just $50,000 on annual expenses.

The bottom line is that net worth can be a smarter way to analyze your financial situation, as opposed to simply considering how much money you have in retirement accounts, how much your home is worth, and the value of other things you own.

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 

It’s important to find the right home for your cash. Read on to see which options are worth exploring this month. 

Many Americans live paycheck to paycheck with no spare money to do anything with. If your personal finances are in the opposite boat, it’s important to find the right home for the money you don’t need for bills and expenses. This month, it pays to explore these options.

1. A savings account

Wouldn’t it be great to earn a solid return on your money without taking on any risk? If you put your spare cash in a savings account, you can do just that.

Savings account rates are up right now, following a string of Federal Reserve interest rate hikes. You might snag an APY of 4% to almost 5% without having to restrict your money in any way. All you need to do is choose a bank that’s FDIC-insured so your deposits are protected for up to $250,000. And if you’re not sure whether your bank falls into that category, check the FDIC’s BankFind Suite tool.

2. A CD

CD rates are up right now for the same reason as savings accounts. Only with a CD, you’re guaranteed the same interest rate throughout a specific period of time, whereas your interest rate on a savings account can fluctuate as time goes on.

You should know that with a CD, you’ll need to commit to keeping your money in the bank for a preset period of time — whatever term CD you sign up for. If you cash out a CD early, you can expect to face a penalty, so you’ll want to make sure you won’t need to use your money for the time period you’re looking at. For example, if you’re interested in a 12-month CD, make certain the money you’re putting in isn’t cash you expect to use or need for the next year.

3. An IRA

Savings accounts and CDs are great places to keep your money this month. But if you want to focus on a longer-term goal like retirement, then an individual retirement account (IRA) is a better bet. With an IRA, you can invest your money and, ideally, grow it into a larger sum.

Plus, traditional IRAs give you an upfront tax break on your contributions, which is something you won’t get with a savings account or CD. In fact, the interest you earn on one of those accounts will count as taxable income, whereas gains in an IRA are tax-deferred so you’re not being taxed right away.

This year, you can contribute up to $6,500 to an IRA if you’re under the age of 50, or up to $7,500 if you’re 50 or older. But remember, any amount of money you put into a traditional IRA will shield some income from taxes.

4. A 401(k)

Not everyone has access to a 401(k) plan for retirement savings purposes. But if you do, it could pay to put your money into one of these accounts over an IRA for one big reason: a potential employer match.

Many companies that sponsor 401(k)s also match worker contributions to a certain degree. That’s free money for your retirement. And like a traditional IRA, traditional 401(k) contributions will make it so that the IRS can’t tax you on a portion of your money.

An IRA is something you can open at pretty much any brokerage firm. But to sign up for a 401(k) through your job, you’ll need to speak to your benefits coordinator or payroll department to find out what to do. You should also know that the clock is ticking down to contribute to a 401(k) for 2023, so if that’s something you’re interested in, it’s best to act quickly.

This month, you have a prime opportunity to put your money to work. Consider one of these accounts, or a combination of them. You could, for example, put a little money into a CD for the higher interest rate, stash some cash in a regular savings account, and make a modest IRA contribution so you’re able to snag a tax break, too.

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 

An early workforce exit can have serious consequences. Read on to learn more. 

The U.S. doesn’t have an official retirement age. Medicare begins at age 65, and people born in 1960 or later are entitled to their complete Social Security benefits once they turn 67.

As such, retiring at some point in your mid-to-late 60s is generally considered to mean that you’ve retired “on time.” Retiring before that point is generally considered “early.”

Now, some people actively take steps to set themselves up for an early retirement. But recent data from Edward Jones reveals that according to financial advisors across the industry, 40% of their clients were forced into early retirement. That, however, is highly problematic from a financial standpoint.

Why early retirement can be a bad thing when you don’t get a say in it

There are different reasons why people tend to be pushed into early retirement. For some, it’s a matter of workplace shake-ups that force them out of a job. And let’s face it — it’s hard to start over at a new job or in a new career when you’re in your late 50s or early 60s.

Meanwhile, for other people, health issues can lead to an early retirement that wasn’t planned. If your work is manual in nature, you may reach a point where you can’t physically do it. And you may develop issues that make it impossible to sit at a desk all day and type on a computer.

Unfortunately, early retirement can be a very bad thing when it’s not something you want. When you’re forced to retire early, you risk a host of financial struggles.

Imagine you’re hoping to retire at age 67 and continue funding your IRA until your very last day of work. If you’re forced to retire early at age 60, that’s seven fewer years to make those IRA contributions.

Similarly, if you’re forced to retire early, you may not be able to wait until full retirement age for Social Security benefits. You can claim benefits starting at age 62, but if you’re not entitled to your full monthly benefit until age 67, filing five years early will mean slashing that income stream for life.

Finally, there’s healthcare to worry about. For many people, their health coverage is tied to a job. If you’re forced to retire at age 63 and you’re not eligible for Medicare until age 65, you might have to raid your savings to pay for health insurance until you’re old enough to enroll.

It’s important to start saving early on

You never know when you might end up being one of those people who’s forced to retire ahead of schedule. And the best way to protect yourself from unfavorable financial consequences in that scenario is to start saving for retirement at a young age.

Let’s say you wait until age 40 to begin saving for retirement. If you’re forced to retire at 60, you might fall short of your goals. But if you begin saving for retirement at age 25, by age 60, you’ll have been funding your IRA for 35 years. At that point, you might have enough of a nest egg to cover your expenses without a paycheck from work.

Also remember that the sooner you start saving for retirement, the sooner you can invest your money for additional growth. The stock market has averaged a 10% return over the past 50 years. If you invest $300 a month in an IRA beginning at age 25, by age 60, you’ll have about $976,000, assuming that same 10% average annual return in your portfolio.

But if you don’t start saving and investing that $300 a month until age 40, by age 60, you’ll only have around $206,000 (once again assuming a 10% average annual return). That’s a sum you may not feel as comfortable retiring on.

Involuntary early retirement can, unfortunately, happen to anyone. But if you begin saving at a young age, it’s a situation that may not work out so poorly for you.

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 possible to travel during the holidays without throwing your budget out of whack. Here are a few ways to save money on holiday travel costs. 

Traveling during or around the holidays can be exciting. For many people, it’s easier to sneak away from work during the holiday season, and it can make for a great way to visit faraway friends and family. If you’re thinking about traveling during the upcoming holiday season, now is the time to make a plan.

It’s possible to save money on holiday travel, even if you still have not booked your reservations. But you must act soon if you want to avoid overspending. Do you still need to book your holiday travel plans? Here, I’ll share a few ways you can save money on holiday travel.

1. Book your travel plans as soon as possible

It’s not too late to plan an incredible holiday vacation, but don’t delay any longer. You’ll likely pay much more if you continue to wait to book hotels, flights, and other travel reservations. By making your travel plans soon, you can get a better deal. Now is the perfect time to finalize your holiday travel plans before prices go up.

2. Pack light

If you’re flying this holiday season, packing light could save you money. Depending on the destination that you’re visiting and the airline ticket you book, it could cost you more money to check a bag. Instead of paying extra for checked bag fees, bringing only a carry-on could help you keep more money in your checking account. Plus, you’ll have less stuff to lug around.

3. Put your credit card rewards to use

Even if you book in advance, traveling during the busy season, like the holidays, can be costly. If you have unused credit card points, miles, or cash back, you can redeem them to make your trip less expensive. Some travel rewards credit cards have flexible redemption programs that give you more control over how you cash out your travel rewards.

You may be able to redeem your rewards for free flights or hotel stays — which can be a significant win for your wallet. Check out our list of the best rewards credit cards to learn more about how rewards credit cards can save you money.

4. Be flexible

If you have some flexibility with your travel dates, it could result in significant savings. It may not always be possible to take extra time off of work around the holidays. But if there are creative ways to save money on holiday travel costs if you have some flexibility.

For example, if you work a remote job, you may consider arriving a day or two earlier and working remotely from your destination before your vacation starts to save on airfare costs. This strategy could work out nicely if you visit family and can stay at their home for free during the holiday season.

Being flexible can help you waste less cash, and it can also help you avoid traveling on the most busy and stressful days when everyone else is traveling for the holidays.

5. Explore all discount opportunities

Before booking travel reservations, explore all discount opportunities. When booking a hotel, for example, you could get a better rate by signing up for the hotel’s free loyalty program. Most hotel loyalty programs offer loyalty members a slight discount on the nightly rate.

Another option is to see if the hotel offers AAA or AARP travel discounts. Even a small discount can make a big difference. Don’t be afraid to ask about discounts like this before booking, because it could help make your entire trip less costly.

If you have yet to book your holiday travel arrangements, it’s not too late to make a plan. Consider some of the above suggestions so you can take a break and spend time with loved ones without forgetting your personal finance goals.

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