Money Management

A baby shower is a wonderful celebration, and these Costco gifts can help make the day even more special. Check out options any new parent will appreciate. 

Having a baby is a joyous occasion. It’s also a great excuse to go to Costco, as the warehouse club sells tons of awesome baby products that are bank-account friendly.

If you have been invited to a baby shower to celebrate someone’s new addition to their family, you can take advantage of Costco’s affordable infant items. In fact, you may want to check out these three great items for sale that could make amazing shower gifts — and that won’t cause you to run up a big credit card bill.

1. A two-pack of adorable sleepers

There’s nothing cuter than a baby all cozy in a sleeper — except perhaps a baby in a Disney-themed sleeper purchased at an amazing price from Costco.

You can buy the parents-to-be a two-pack of Disney Baby sleepers featuring beloved characters like Simba, Minnie Mouse, Mickey Mouse, or the 101 Dalmatians. The price for both sleepers is just $16.99 from Costco online, while similar items sell for around $20 or more from many competitors. Costs are even lower in store, although availability can vary.

The two-pack comes in sizes ranging from 3 months to 24 months. Although you may be tempted to purchase the 3-month size for a baby shower, keep in mind that new parents get a lot of clothes for small babies. Think about purchasing a set in the 9-month size. It will take the baby a bit of time to be able to wear them, but parents will appreciate having these items once their child has grown a bit and gifts have dried up (and before the first birthday gifts start coming).

2. A diaper starter kit

Diapers may not be the cutest shower gift but they are a practical one, and parents will love receiving them since it will give them a little break from shelling out their own cash for this essential.

Costco has great prices on diapers, including a Huggies+ Newborn Starter kit. This comes with 104 newborn-sized diapers and 22 size-one diapers so parents will be all set for quite a while even as their little bundle of joy begins to grow.

Costco’s price for this kit is just $33.49 online, while buying the same one at Walmart would set you back $43.45.

3. A LeapFrog Baby Monitor

If you don’t mind splurging a bit, you can give the new mom or dad a little bit of freedom with a LeapFrog Baby Monitor.

The monitor offers 1,000 feet of range so parents can step away from the crib while still keeping an eye on their little darling. There’s also a temperature and humidity sensor; a long-lasting battery on the parent unit, and a 110 degree viewing angle. Best of all, there’s even a local and remote two-way talk-back feature so parents can communicate using the monitor as well as see their infant.

This monitor is $149.99, but that’s a far more appealing price for your personal finances than the $179.99 you would pay with some competitors.

Each of these items is sure to put a smile on the face of the parents-to-be at their shower. And, even better, they can help make taking care of a baby simpler during the wonderful, rewarding, and exhausting early months of parenthood.

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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.Christy Bieber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale and Walmart. The Motley Fool has a disclosure policy.

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I make all big purchases with a credit card for two key reasons. Learn more about how to take advantage of these major perks. 

Whenever I make big purchases, I put them on a credit card. Paying cash, using a debit card, or writing a check is not an option I am willing to consider. And there are two big reasons why I insist on using a card, rather than having the money come directly out of my checking account.

1. I want protection in case something goes wrong

The biggest reason why I make big purchases with a credit card is because I want the purchase protections that only cards can offer. Specifically, if the merchant doesn’t deliver the item or if it sends me something defective, I want to be able to turn to my credit card company to help me if I can’t easily get my money back from the seller.

This process is called a chargeback, and I have had to use it several times when I bought items that either did not come or were not as described. In every case where I told my credit card company about a problem, it immediately took the charge off my card pending an investigation so I didn’t have to pay for the item. Then I provided supporting documentation, and I was able to get back the money spent once it was clear the merchant had been a problem.

It can be hard, and sometimes impossible, to get your funds back after you’ve bought something from an unscrupulous seller. I don’t want to lose my hard-earned cash because of someone else’s dishonesty and using credit cards ensures I don’t have to do that.

The good news is, you don’t have to sign up for any particular kind of credit card to be eligible for this (unlike with other kinds of purchase protections that some card issuers offer, like extended manufacturer warranties). Nearly every card will allow you to dispute a charge for a bad or undelivered product and you can often submit this directly through your online account or by calling your card issuer.

You’ll need to be prepared to document the problem if you want to take advantage of this protection, so keep your receipts and correspondence. If you do that, and you used a credit card when making a big purchase, you should limit your risk of unnecessary financial loss.

2. I want to earn rewards for my purchases

Finally, it’s also a nice bonus to earn rewards when I buy something that costs a lot of money. If I spent $1,000 and I received 2% cash back, then I actually didn’t spend $1,000 — I only spent $980. The extra money can really add up over time, especially when you buy things that are very expensive or when you make expensive purchases often.

The caveat, of course, is that I don’t pay interest because doing so would cost me more than the rewards. So, if you are planning on also buying expensive items with your card, be sure you have the money in the bank to pay them off first.

Given these two important benefits of using a credit card for expensive purchases, this is the best way to pay as long as you can avoid going into credit card debt. If you don’t already have a great rewards card and you’re thinking of making a costly purchase, look into your options before you buy so you can get the benefits of protection from fraud and cash back or points for buying something you need anyway. You’ll be glad you did.

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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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When buying a new ride, it’s important to address key auto insurance issues, such as comparing rates on different vehicle models. Find out more. 

Most states require auto insurance coverage to be in place on any vehicle a person registers and owns. When buying a new car, drivers will need to make sure they’re complying with state minimum requirements and, most likely, getting additional coverage to fully protect their assets.

While the process of car shopping can be overwhelming, there are four key auto insurance moves to make during this time to ensure the right coverage is put in place on the new vehicle at the right price for a driver’s bank account.

1. Check rates on different automobile models

The make and model of a vehicle, and the safety features it has, can make a huge difference in how much a car costs to insure. Drivers who don’t want to get stuck insuring a costlier car may want to compare quotes on different models under consideration before buying.

So, for example, a motorist who is deciding between two or three different SUVs may want to get a quote for covering each model so they can take insurance costs into account when picking which car to buy.

2. Comparison shop to find the right coverage

Drivers should make sure they get the most affordable insurance for their new car.

While many people may default to adding their new car to their current insurance policy, this is not always the best move. A different insurer may provide better or cheaper coverage for the new car, so it is worth shopping around to see what different options are available.

It’s pretty easy to shop online and check out what different companies would charge to insure the new vehicle. Doing so could make it possible to get a much less expensive policy that offers the same or even better coverage.

Shopping around is also important in case coverage needs to be changed. For example, a policyholder who had no loan on their current vehicle may need gap insurance if they have a loan on their new one. So, it would be important to find an insurer offering affordable gap insurance coverage.

3. Put insurance in place before going to the dealer to pick up the car

Car dealers typically will not allow a driver to leave with a new vehicle that does not have proof of insurance. As a result, it is important to complete the process of shopping around for coverage and to get insurance in place before going to pick up the car. Otherwise, drivers could end up calling an insurance agent from the dealership to add the car to their policy.

A dealer should be able to help with providing the information necessary to get the right insurance coverage in place when the car is being picked up. This is especially important when a car is on order and is coming in at a specific time but may not be at the dealership and ready to pick up right away.

4. Cancel existing coverage on a car being sold

Finally, drivers should cancel their current insurance on the car they are selling so they don’t get stuck paying premiums for a car they no longer own. Don’t cancel until the car’s plates are transferred or turned in though, as a car still has to be insured as long as it’s registered and driveable.

Taking care of all these steps can help motorists ensure they are ready to pick up their new car and that they have the best, most affordable insurance in place for it.

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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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We’re all looking for ways to bring in more money with less effort. Check out how your old clothes could be your ticket to doing just that. 

Shopping has never been a big hobby of mine, and I don’t tend to buy into trends as they pass through. Even so, I regularly find items relegated to the back of my closet that I’m ready to let go of. If the clothes are in good enough shape, I’ve always donated them one place or another rather than taking them to a consignment shop because I couldn’t be bothered to go through the hassle of driving to a store, watching a salesperson sort through my things, and tell me how much — or little — they’d pay me for just some of the pieces.

Then a few years ago, I had some extra time on my hands (you remember Lockdown 2020, don’t you?) and decided to try listing my old clothes on the resale app Poshmark instead. I won’t be retiring to Italy off of my earnings anytime soon, but I’m pleasantly surprised at how much I’ve been able to make with so little effort required.

A fairly passive income boost

If you haven’t heard of Poshmark before, it’s a secondhand marketplace where people can buy and sell clothing, accessories, and even electronics and home goods. It has a website and an app, and it’s free to list items. All you have to do is take some photos of what you’re selling, write a quick description, and post. When you make a sale, Poshmark takes a flat fee of $2.95 for sales under $15, or a 20% fee for sales over $15.

There’s occasionally some haggling involved with potential buyers, and you have to pack each item and drop it off at the post office, but for the most part, I can just let my Poshmark account do the work of enticing buyers.

I’m sure there are plenty of success stories of people creating mini resale empires this way, but I use Poshmark just to clear out the stuff languishing in my closet. Whether it was a miniskirt from college that I was hanging onto out of nostalgia or a sweater that didn’t fit right but was gifted to me with no return receipt, I started filling up my virtual closet on Poshmark with items that needed new homes.

Finding easy ways to improve my finances

Once I started making some sales on Poshmark, I started intentionally going through my things and seeing what else I could list. I still build up a donation pile, but I also set aside some of the clothes with a little more potential to list on Poshmark. It’s become a nice habit to cut down on the clutter in my wardrobe and keep only the items I really care about.

And because it’s such a low-maintenance way to sell my things, I never really added up how much I’d made until recently. Without even realizing it, I’ve now made $700 through Poshmark sales. That’s an extra $700 I can use to bolster the emergency fund I keep in my savings account. Or an extra $700 I can invest in a brokerage account and hopefully grow into more money down the line. And, of course, I can use a slice of it to treat myself to something nice, since those funds weren’t already earmarked to pay for any bills in my budget.

READ MORE: What Is an Emergency Fund and Why Do You Need One?

I have no intention of turning this into a true side hustle, because I enjoy how hands-off the whole setup is. But I have no complaints about doing this minimal amount of work, keeping my closet clean and organized, and giving my personal finances a nice boost.

All this was a good reminder for me that there can be easy ways to bring in some extra money that you may not have thought of before. Maybe it’s streamlining your wardrobe, like I’m doing. Or maybe it’s adding dog-walking services to your daily spin around the park. Or maybe it’s putting your green thumb to work by offering to spruce up people’s gardens around town.

The same thing won’t work for everyone, but if you do a little brainstorming, you may be able to find a way to make a little extra cash without feeling like you’re putting in much work at all.

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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.

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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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A balanced portfolio is important to avoid running out of money in retirement. Learn about a common mistake many retirees make with their investments. 

When you retire, what you need from your investment portfolio changes. During your career, you most likely focused on investing to build wealth. Once you’re not working anymore, preserving wealth becomes more important so you don’t run out of money.

Not all Americans adjust their investments to account for this change. In fact, a sizable number of older adults are making a mistake that could jeopardize their retirement.

Here’s the mistake retirees are making with their investment portfolios

Retirees are keeping too much money in stocks and neglecting lower-risk options, such as bonds. One-fifth of investors 85 or older with taxable brokerage accounts at Vanguard have nearly all their money in stocks, according to a report by the Wall Street Journal. That’s also the case for almost a quarter of investors from 75 to 84.

Not all older investors are putting nearly everything in stocks. But there has been a shift in how retirees invest their money. In 2011, 38% of Vanguard 401(k) investors over age 55 had at least 70% of their portfolios in stocks. Now, nearly half do.

Why a stock-heavy portfolio is risky for older investors

Stocks are an excellent investment. Historically, the stock market’s average return has been about 10% per year, making investing in it one of the best ways to build wealth. But stocks can be a very volatile, boom-or-bust type of investment, as well.

While the stock market has more good years than bad, it has dropped quite a bit in many of those bad years. Just last year, the S&P 500 (an index tracking 500 of the largest publicly traded U.S. companies) dropped 19.44%. In 2008, it dropped 38.49%.

If you have 90% to 100% of your portfolio in stocks, it will take a huge hit during years like these. Younger investors can weather the storm, as long as they don’t need the money anytime soon. Retirees, on the other hand, may be forced to sell investments at a large loss.

Imagine you have an investment portfolio of $1 million. If that’s all in stocks, and they lose 25% of their value, you’ll be down to $750,000. The market has always bounced back so far, but it sometimes takes several years. That puts you in a tough position when you’re retired and withdrawing from your portfolio regularly.

Balance out your portfolio with low-risk securities and cash equivalents

You should continue investing in stocks when you’re retired, but you should also put some of your money in low-risk assets. These will increase stability in your investment portfolio and protect you when the market is volatile. Here are a few options:

BondsCertificates of deposit (CDs)High-yield savings accounts

With each of those, there’s little risk of losing money. Most CDs and high-yield savings accounts have FDIC insurance, so even in the unlikely event of a bank failure, your deposit would be covered for up to $250,000. Bond security varies depending on the bond issuer. If you choose bonds backed by the U.S. government, such as Treasury bonds, you can keep risk to a minimum.

You’ll also need to decide on your asset allocation — how much of your portfolio you have in stocks compared to bonds and banking products. If you’re retired, or retiring soon, having 40% to 50% of your portfolio in low-risk assets is a popular way to go. You’ll still see your portfolio grow during bull markets, since 50% to 60% would be in stocks. And your portfolio will be more resistant to market downturns.

The right asset allocation depends on your age and your risk tolerance. You may want to set up your portfolio a bit differently based on where you’re at in life, the size of your portfolio, and the amount of risk you’re willing to take on. But if you’re retired, ensure your portfolio isn’t too stock-heavy.

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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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