Money Management

If you’re taking a vacation to celebrate your marriage, you want it to be perfect. Read on to learn about one honeymooner’s experience with Costco Travel. 

A survey by Honeyfund (a wedding gift registry that helps couples collect contributions to their honeymoon fund), found that 84% of those surveyed who reported having excellent marital satisfaction also travel with their spouse regularly.

With this statistic in mind, you can get your marriage started off on the right foot by taking an amazing honeymoon together. And why not turn to Costco Travel to help you find the right honeymoon package? Yes, Costco offers travel packages with clear upfront pricing specifically for members. And if you’re an Executive member, you can even earn 2% cash back on your travel booking.

One of my colleagues here at The Ascent, Savannah Esworthy, took the honeymoon trip of a lifetime last fall. Let’s take a closer look at her Greek adventure, and see how you can take a similar trip.

Savannah’s trip to Athens and Santorini

In October 2022, Savannah and her new husband spent seven days in Greece (Athens and the island of Santorini) at a cost of about $4,500. The Greek island vacation packages offered through Costco Travel are apparently quite popular, as she noted, “Most other couples we met along the way were going to two or three islands total with Costco.” The happy honeymooners elected to book their flights with points, rather than through Costco — definitely an excellent use of travel credit card rewards.

Costco shines at helping vacationers book package travel, but Savannah and her husband built their own trip. They opted for five-star hotel stays to give their honeymoon a luxury feel. Costco Travel made this easy by providing a spot for vacationers to leave reviews and ratings of the hotel options. Savannah’s costs included the hotel stays, transportation to and from airports and ferries, complimentary drinks at hotel check-in, and breakfast every day.

Speaking of those hotels, they were “absolutely stunning,” and Savannah and her new husband enjoyed the red carpet treatment, as Costco Travel had apparently communicated with hotel staff that this was a honeymoon trip. The newlyweds got to enjoy first-class service, champagne, and various treats, along with top-notch breakfasts. Getting little freebies on a vacation can help you return home with a lower credit card tab.

Another standout of Costco Travel’s service was the seamless transportation between islands and airports. As Savannah said, “Our drivers were never late, they were always friendly, and they offered information to stay in touch with them during our stay in Santorini.” This happy couple wanted “a honeymoon that required very little planning,” and they got exactly that.

Want to take a Costco honeymoon?

If Savannah’s experience has you wanting to book a Costco honeymoon trip of your very own, there are a few excellent options available right now in a special Romance & Honeymoon section on the Costco Travel website.

A Mediterranean cruise

If Greece is calling your name and your honeymoon is fast approaching, you can get a great deal on a Holland America cruise that leaves from Athens on Aug. 26. You’ll get to cruise through the Greek islands and visit Istanbul before returning to port in Venice. Prices for this trip range from $1,549 to $2,749 per person, depending on what type of stateroom you book.

A romantic Fiji getaway

Costco Travel is offering seven nights for the price of six for select dates if you want to visit Fiji. For $4,119 per person (Dec. 1 to Dec. 8, 2023; Jan. 20 to March 31, 2024), your trip will include airfare from Los Angeles International Airport, three meals a day, wifi, and more. You’ll also get a few special treats, such as canapes at sunset every day and one 60-minute couples massage.

A trip to Costa Rica

If Central America is more your speed (and you have less to spend in both time and money), you might consider a Costco Travel stay at W Costa Rica — Reserva Conchal. This five-star resort offers a white sand beach, two restaurants, a spa, and golf course access. If you travel before Dec. 31, 2023, you can get a deal on two or more nights. For a three-night stay in October and flying out of New York City, you’ll be looking at a cost of $2,950.35 for two — ground transportation to and from the resort included.

Costco Travel can help you create the perfect honeymoon, whether you build it from scratch or rely on its expert-planned travel packages. If you’re a Costco member, this is one perk you don’t want to pass up.

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

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Some investors have turned to precious metals as a hedge against inflation, but they can carry risks. Find out how to avoid scams when you buy gold or silver. 

A Delaware court has ordered two companies and their owner to pay over $112 million in restitution and an additional $33 million in penalties. The decision follows charges of creating a fraudulent and deceptive scheme brought by the Commodity Futures Trading Commission (CFTC). For investors, it raises questions about how to avoid fraud when buying precious metals.

In a statement, the CFTC said Argent Asset Group and First State Depository Company and their owner, Robert Higgins, had defrauded investors out of tens of millions of dollars. Describing the case as “deeply troubling,” CFTC Commissioner Kristin N. Johnson said the defendants had stolen customers’ money “without even a veneer of legality.”

Over 500,000 silver coins stolen

According to the CFTC, the fraudulent scheme was active between 2014 and 2022. Customers were falsely told their precious metals were both securely stored and insured. In reality, the defendants made off with over 500,000 American Silver Eagle coins and over 9,000 gold coins.

“The receiver found that Defendants brazenly left ‘IOU’ slips in empty boxes marked to indicate a customer’s account, yet containing no assets,” said Commissioner Johnson. The companies had said they were storing customer metals in a private depository, but the majority of the assets are missing. Quartz also reported that investigators found 36 ounces of gold hidden in the ceiling of Higgins’ basement.

Unfortunately, the court ruling is unlikely to help many victims get their cash back. The commission warned that it “may not result in the recovery of any money lost because wrongdoers may not have sufficient funds or assets.”

How to buy gold and silver without getting scammed

Gold and silver have gained traction with investors recently. Several factors have contributed to the popularity of precious metals. These include economic uncertainty, inflation, and the collapse of several high profile banks earlier this year. Gold, in particular, has a reputation as being a hedge against inflation, which adds to its appeal.

Every investment carries risk, and precious metals are no different. The price can go down as well as up, and it’s important to buy from a reputable source. There are different ways to buy gold and silver. For example, you can buy gold bars or bullion directly from a store or vendor. You’ll find both online and physical options, but either way, take time to ensure you’re buying from someone trustworthy.

According to the CFTC, here are some red flags to watch out for:

A promise of guaranteed returns: With any investment, the promise of guaranteed returns (especially high ones) is a warning sign. Nobody can know for sure whether the price of gold or silver will go up or downNot registered with the CFTC: You can call the CFTC at 866-366-2382 or look up the company at the National Futures Association website. Check to see if the business you plan to buy gold or silver from is registered, and whether there are any disciplinary actions against it.Unclear where your metals will be stored: If you’re not keeping your precious metals at home, which brings its own security risks, ask a lot of questions about how your asset will be kept safe.

Bear in mind that you don’t always have to buy the physical metal. Another way to invest in gold and silver is to buy gold ETFs from a top stock broker. ETFs — or exchange-traded funds — let you buy into a basket of securities, such as equities or commodities. A precious metal ETF works in the same way as one that contains stocks.

Going the ETF route has several advantages. Not only can you invest in them from your brokerage account and manage various investments in one place, but it also means you don’t need to worry about some of the challenges that come with owning precious metals. If you own physical gold, you may need to insure and store it.

Some brokerages also allow you to buy gold futures, which are a type of derivative. If you’re considering this route, make sure you understand the pros and cons of derivatives trading. Finally, you might opt to buy stocks in companies connected to the precious metal industry, such as gold-mining stocks. If you want to buy gold or silver, weigh the different options to see which one might suit your investment style.

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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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Costco’s travel service is a wonderful program. Read on to see why. 

Many people rely on Costco as a source of savings on everyday items, from groceries to cleaning supplies. But there’s a whole other side of Costco many members know little about — its travel services. Here are some things you should know about booking a vacation through Costco Travel.

1. Bookings qualify for cash back with an Executive membership

A Costco Executive membership costs $120 a year, while a basic one only costs $60. In exchange for the higher annual fee, an Executive membership gives you 2% cash back on all Costco purchases. And while you might think trips booked through Costco Travel won’t qualify for that 2% back, you’d be wrong.

Not only can you snag cash back on Costco Travel purchases, but some packages come with a Costco Shop Card as an added perk. A Shop Card is Costco’s version of a store gift card.

Right now, for example, if you book a vacation through Costco Travel to AULANI, a Disney resort in Hawaii, you’ll qualify for a free Costco Shop Card. Think of it as having a reward waiting for you after your trip — or a way to cover your groceries after having spent a fair amount of money on a vacation.

2. Costco has exclusive vacation packages

You’ll see a range of vacation packages available through Costco Travel, from resort stays to cruises. But you should know that these deals are created specifically for Costco members.

You might find a similar package if you search outside of Costco Travel on your own or use an outside travel agent. But as you might imagine, Costco is able to negotiate deals with various travel partners so it can offer its members cost-effective vacation options. As such, you’re unlikely to find the exact same package elsewhere.

3. You can work with a Costco Travel specialist to book your trip

You might assume that if you’re going to book a vacation package with Costco Travel, you can only do so online. But actually, the Costco Travel team consists of specialists who will be happy to speak to you by phone and help you land on the right vacation package based on factors such as your family size, the ages of the people in your family, your desired activities, and, of course, your budget.

You should also know that you can call Costco Travel and get help from a specialist should a problem with your travel plans arise. During the pandemic, for example, when cruise lines were forced to shutter, Costco Travel worked to make sure that members who booked cruises were eligible for refunds. And if you need to change your itinerary, a member of Costco Travel will no doubt try to work with you to make that process as seamless as possible.

All told, there are many benefits to using Costco Travel, so it’s worth exploring your options if you’re looking to book a trip. To be clear, booking through Costco Travel doesn’t automatically mean you’re getting the best deal, and you might find a comparable package at a lower price elsewhere. But it does pay to see what offers Costco has, especially since you might find a great one.

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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.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.

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Home affordability has hit all-time lows. Here are practical steps you can take to reduce housing costs. 

For many Americans, buying a home is a major financial goal. However, with the rising cost of housing, it’s becoming increasingly difficult for families to make this dream a reality. According to recent statistics, housing costs now make up almost 40% of the average household income. This is a sharp increase from previous years, and it means that many people are struggling to afford even a modest home.

Why are housing costs so high?

There are several factors that have contributed to the rising cost of housing. One of the main reasons is low housing inventory. Over the past few years, there has been a shortage of homes for sale, which has driven up prices.

Additionally, low interest rates during the pandemic made it easier for people to afford higher home prices. However, this increased demand has also led to those higher prices. Plus, many people were forced to work from home, leading to an increased demand for homes.

To combat high inflation, the Fed has drastically increased interest rates. The monthly mortgage payment for a $500,000 home is over $1,000 more now than it was before the Fed began raising interest rates in March of last year.

Homeownership affordability near all-time lows

The Home Ownership Affordability Monitor (HOAM) index calculates the affordability of homes. It measures the percentage of median household income required to purchase a median-priced home in that area.

If the index number is less than 100, it indicates that the median household income is insufficient to cover the annual costs of owning a median-priced home and housing cost exceeds 30% of household income. If the index is 100 or greater, it signifies that the median household income is sufficient for a median-priced home, and the housing cost is below 30% of income.

The HOAM was above the affordability threshold from February 2019 to May 2021. Since then, it has dropped drastically to 68.6, the lowest since the Federal Reserve began monitoring homeownership affordability in January 2006.

The impact of the pandemic on the housing market has been significant. In July 2020, during the height of the pandemic, the cost of a median priced home accounted for 27.5% of a household’s income. However, by October 2022, the median home price had skyrocketed to an alarming 43.7% of the median household income, almost half of what people were earning.

Although there has been a slight improvement in the most recent data (from April 2023), with the total payment share of median income at 40.9%, it is still significantly above the recommended 30% for a household’s income allocation.

This disparity between home prices and income levels highlights the challenges many individuals and families face in trying to afford a home in these unprecedented times.

How to afford a home in the current market

If you’re looking to buy a home in the current market, there are a few things you can do to improve your chances of finding an affordable option. The first step towards achieving this is to determine how much home you can afford.

Analyze your income, expenses, and debt-to-income ratio to decide on a realistic budget. Researching various loan options and interest rates is also essential to finding a mortgage that aligns with your budget.

Additionally, it is important to save for a down payment and to minimize unnecessary expenses along the way. Owning a home may be a significant investment, but with proper planning and determination, it can be a feasible option for many. Consider applying for an FHA loan or another type of mortgage with lower upfront costs.

Finally, work with a knowledgeable real estate agent who can provide guidance and help you navigate the market with expertise. With careful planning and some savvy moves, owning a home can be within reach despite current market conditions.

How to save money on your mortgage

Another way to make homeownership more affordable is to save money on your mortgage. This can be done by comparing rates from different lenders and finding the one that offers the lowest interest rate.

Additionally, you may want to consider putting down a larger down payment or paying points. This can help you get a better interest rate and reduce the amount of interest you pay over the life of the loan.

Finally, it’s important to shop around for your homeowners insurance as well. By comparing rates from different companies, you can save hundreds of dollars per year on your insurance premiums.

The rising cost of housing is a challenge for many Americans. However, by understanding the factors that are driving up prices and taking steps to prepare yourself for the market, you can still find an affordable home. Whether you’re looking for a fixer-upper or are focused on saving money on your mortgage, there are solutions out there that can help you achieve your goal of homeownership. With the right mindset and a little bit of preparation, you can find a home that fits your budget and your lifestyle.

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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 video with dangerous credit card advice has made the rounds on TikTok. See why you need to be careful about taking financial advice from social media. 

Credit card advice from TikTok can be hit or miss. Credit card advice from a TikToker who films from his mom’s pool and brags about his “$100,000 watch” is pretty much always a miss. In a video that went viral recently, a TikToker claimed that he was able to get free money by using business credit cards. It’s a terrible idea, and the perfect example of how financial advice on social media can be dangerous.

The “free money” hack, as explained on TikTok

While the original TikTok video seems to have been deleted, it was shared in a tweet by TTI (@TikTokInvestors), an account that shares cringey financial content.

The TikToker in the video claims that while you’re responsible for debt on personal credit cards, you’re not responsible for debt on business credit cards. He then explains that his method is to:

Open a business that he doesn’t care about.Open a business credit card for that business.Max out the credit card.Declare bankruptcy with that business.

According to this self-declared “entrepreneur,” he was able to get a high enough credit limit to buy a $100,000 watch (yeah, right). He also said he’s going to sell the watch to a jeweler for $80,000.

Voila, free money! If it sounds suspiciously easy, it’s because there are some massive holes in this scheme.

There’s no “get out of debt free” card

Contrary to what this TikToker said, you are responsible for debt on business credit cards. If you want to confirm, check the terms. These will say that you agree to be personally responsible for paying all balances incurred on the card.

This is also fraud, and to make it even worse, it’s blatantly obvious fraud. Credit card companies and bankruptcy courts know what they’re doing. They aren’t going to be fooled by such a basic scheme.

Here’s what would actually happen to someone who tried skipping out on a debt this way:

The card issuer would come after you (not just your business) for the credit card debt.Your own credit score would take a huge hit from defaulting on the card’s payments.The debt would go to collections if you didn’t pay, and you could get sued.

Be careful who you trust about money

After getting called out for fraud, the TikToker who shared this idea posted a follow up claiming it was all a joke. That may be true — he wouldn’t be the first to try getting attention this way.

Either way, content like this demonstrates why you should be very careful about getting financial advice on social media. Many of the people sharing advice don’t have your best interests at heart. They’re in it for the views and to sell you something, like a forex trading course or an overpriced life insurance policy. Sometimes it’s obvious, but not always.

Consider sticking to more trustworthy sources of advice, such as reputable financial websites. If you like social media and want to use it to learn about personal finance, check out the background of the content creator to see if they’re legit. Anyone can go on social media and say they’re a millionaire. Don’t take their claims at face value until you’ve done a little more digging.

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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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Costco memberships are affordable, but you should still try to get as much out of yours as possible. Read on to learn more. 

Shopping at Costco on a regular basis can be a huge source of savings — even when you factor in the cost of an annual membership. But if these signs apply to you, it means you may not be getting as much value out of your membership as you could be.

1. You’re not scoring cash back on your purchases

Costco offers two types of membership — a basic one for $60 and an Executive membership for $120. While the latter is twice the cost of the former, it comes with a major perk — 2% cash back on all Costco purchases. So if you shop at Costco fairly often, it might pay to upgrade your membership so you can snag cash back on the items you buy.

If you do the math, you’ll see that it takes $3,001 in annual spending to come out ahead financially with an Executive membership. With $3,000 in spending, you break even, because 2% of $3,000 is $60 — the cost of your upgrade.

It pays to look through recent credit card statements to see how much you’re spending at Costco on a weekly or monthly basis, depending on how frequently you visit the store. You may find that an Executive membership is more than worth it.

And remember, that 2% cash back applies to online Costco purchases, too. It also applies to vacations you book through Costco’s travel service.

2. You’re not filling up your car before or after you shop

Costco is said to have some of the cheapest gas prices in town. So it pays to time your visits to the store to when your tank is running low. If you hardly ever get gas at Costco, you could be missing out on a world of savings, especially if your vehicle has a larger tank.

3. You’re not buying gift cards to places you frequently visit

Costco gift cards make a great gift — for others as well as yourself. See, the benefit of buying gift cards at Costco is getting a discount on their face value. So if there’s a store or restaurant you visit often, it pays to see if Costco sells gift cards you can buy.

As an example, Costco is selling a four-pack of $25 Domino’s gift cards for $79.99. If your family orders from Domino’s once a week throughout the year, then that’s an easy balance to use up. But instead of paying $100 for $100 worth of Domino’s pizza, you’ll only pay about $80.

4. You’re not willing to try Kirkland products

Some consumers are very loyal to the brands they know and love. But if you’re not willing to give Kirkland products a chance at Costco, you’re missing out on an opportunity to save. That’s because Costco’s signature Kirkland products are often less expensive than their name-brand alternatives.

Plus, some Kirkland products are actually made by well-known companies. They’re just produced specifically for Costco. So before you write off Kirkland products, check the labels.

Costco memberships offer a lot of value. But it’s important to do what you can to make the most of yours. That means snagging cash back on your purchases, buying gas on the cheap, loading up on discounted gift cards, and bringing home your share of Kirkland products.

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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.

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.

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