Money Management

Some of these laptops are discounted by 20% or more. Read on to discover why Costco shoppers think these computers are the best. 

It can be overwhelming to sift through all the laptops out there to find the best one. Fortunately for you, we spent some time looking through the top-rated laptops on Costco’s website and — based on customer reviews — compiled a short list here.

Some of these laptops are better deals than others, but it’s worth mentioning that they all include Costco’s extended warranty, giving you two years of coverage.

If you’re in the market for a new laptop right now, it’s worth checking out these peer-reviewed computers.

1. Apple Macbook Pro (14-inch) — $1,799

Buyers looking for a premium laptop that’s still a good deal should look at Apple’s newest Macbook Pro. The computer has a 14-inch display, 512GB of storage, and the company’s latest M2 Pro processor.

While this laptop may not be for budget-conscious buyers, the 4.8-star rating from 84 reviews is a good indication that buyers are still getting a great value. The current discount makes the Macbook Pro $150 less than the usual Costco price — and $50 less than on Apple’s website.

One of the glowing reviews came from someone who’s been in the information technology industry for more than 30 years, and they noted the computer’s ease of use and its long battery life. Other reviews commented on the impressive battery life, high build quality, fast performance, and how quiet it is while it’s running.

2. HP Pavilion (15.6-inch) — $649

This well-reviewed laptop earned a 4.6-star rating on Costco’s website and is one of the best deals. The current discount takes $200 off the normal Costco price of $850, making the laptop 21% cheaper than on Walmart’s website.

The laptop boasts a 15.6-inch touchscreen, 16GB of memory, a full-size backlit keyboard, and a large 1TB hard drive. It also has rave reviews from Costco customers.

Reviews on the product page mention that the computer is fast and quiet, has good value for the money, and has a long battery life. Other reviewers were pleased with the size of the computer, and at least two reviewers were using it to run their businesses.

3. Microsoft Surface Pro 9 (13-inch) — $1,399

This laptop is a fan favorite among Costco customers, and it has 75 reviews and a 4.6-star rating. This touchscreen laptop has 256GB of storage and is part of a bundle with a keyboard and stylus pen for writing and drawing.

Costco’s current discounted price of $1,399 is good until July 23. This is a huge 34% discount ($300 off) compared to the same model listed on Walmart’s website, which doesn’t even include the stylus pen.

Reviewers liked that Costco’s version bundled the pen and the keyboard together and said that the processor is fast and that this laptop’s size makes it easy to use anywhere. One reviewer even noted that they get to use a lot of different laptops at their job and the Surface Pro 9 is one of the best.

4. Lenovo Flex 5 Chromebook (14-inch) — $349

If you’re in the market for an inexpensive laptop or prefer Google’s Chrome operating system, look no further than the Lenovo Flex 5i with a 13.3-inch touchscreen and 256GB of storage. The laptop has 22 reviews with an average of 4.5 stars.

The laptop is priced at $349 on the Costco website, and a similar version — running Windows instead of Chrome OS — is listed on Amazon for $449.

The device has the 12th generation Intel Core i3 processor, an integrated webcam, and a backlit keyboard. While it may not be a heavy-duty laptop for work tasks, many reviewers said it’s speedy while browsing websites, has a sturdy build quality, and is a good value for the money.

5. Lenovo IdeaPad Slim 3 (15.6-inch) — $649

Another great budget laptop listed on Costco’s website is the Lenovo IdeaPad Slim 3. This touchscreen laptop earned a 4.6-star rating from 20 reviewers, and its $649 price tag is 21% lower than the same model on Walmart’s website.

Some notable features of the IdeaPad Slim 3 are the 15.6-inch touchscreen, 16GB of memory, a 512GB hard drive, a backlit keyboard, and a fingerprint reader. The online reviews praised the IdeaPad’s battery life, sleek design, speed, and one reviewer even mentioned that their tech-savvy family member recommended this specific laptop.

Not all of these laptops are inexpensive, so if you’re in the market for a new one, consider saving the money beforehand so you don’t derail your personal finance goals.

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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.Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. Chris Neiger has positions in Apple. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Costco Wholesale, Microsoft, and Walmart. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.

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Some “unexpected” expenses aren’t really surprises at all. Here are a few things you should be saving for separately rather than tapping your emergency fund. 

If you want to avoid credit card debt, you need to have a plan for covering surprise expenses. Typically, that means keeping money in an emergency fund that you can rely on if something unexpected occurs.

But, while an emergency fund in a high-yield savings account can be important to pay for things you truly do not expect to need, there are some things people often pay for with their emergency fund that really should come from other sources. While these expenses may be unpredictable, they aren’t really surprises.

Here are four examples of things you should be saving money for elsewhere, so you don’t have to turn to your savings account to cover the costs.

1. Home repairs

The Bureau of Labor Statistics reports that mean spending on home maintenance, repairs, insurance, and other expenses was $2,335 per consumer unit in 2021. The reality is that home maintenance and repairs are not optional expenses for homeowners — and they aren’t cheap.

It’s inevitable you’re going to have some costs as a homeowner each year. These repair and maintenance expenses should not come as a surprise. You may not know exactly when your fridge will go or a new roof will be needed or your air conditioner will go on the fritz, but you know things like this will happen. To be ready, you should regularly save about 1% of your home’s value in an account earmarked just for routine home repairs.

2. Auto repairs

Your car also isn’t going to stay perfect forever. You’re going to need to repair it and maintain it. Again, you won’t know when new tires will be needed or when the brakes will have to be replaced or when your transmission will go. But no one who has ever owned a car for any length of time can claim to be surprised by the fact there will be some costs associated with keeping an automobile running.

To be sure you’re ready, have a dedicated auto repair fund you put money into for when things go wrong with your vehicle. About $600 to $700 per year is a good amount to aim to put into this account for routine maintenance and so you’re ready for major repairs.

3. Holiday and birthday costs

Holidays and birthdays are not emergencies. They are predictable events you need to be ready for. You don’t want to disappoint your kids or other loved ones by not being able to celebrate these big occasions. So, budget for them throughout the year and put money into a dedicated savings account to cover them.

The typical spending on Christmas alone comes in at close to $900 for most American households, so figure out what you usually spend for special occasions and start saving for the costs each month. That way, when the event rolls around, it won’t feel like an emergency you’ll have to tap your account for.

4. Doctor visits

Finally, you should expect that at some point during the year, you or someone you love is likely to need to see a doctor — which can lead to a copay, coinsurance costs, and missed work time. You may not know when, but you should be prepared for this eventuality with the money needed to cover out-of-pocket costs.

By being ready for these “surprise” but not unexpected expenses, you can have a lot more peace of mind — and you can keep your emergency fund for true emergencies that you genuinely have no way to plan for.

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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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Your brokerage account could get you a low-interest line of credit. Learn how this works and what happens when you borrow against your investments. 

If you need to borrow money, you probably have a good idea of the most common options. There are personal loans that you can use for almost anything. If you’re a homeowner, you could qualify for a home equity line of credit (HELOC). Credit cards are another popular choice, although they typically have high interest rates.

An option that doesn’t get talked about as much is borrowing money against your investments. It’s called a portfolio line of credit, also known as a margin loan. Many of the top stock brokers offer this, provided you meet their portfolio value requirements.

There are a few big benefits with this type of line of credit, so it’s worth considering if you have enough in your brokerage account. Here’s what you can expect when you get one.

Your investments serve as collateral

A portfolio line of credit is backed by the investments in your account. That makes it a secured line of credit, similar to a HELOC, which is backed by your home.

The amount that you can borrow depends on the market value of your investments. It’s generally anywhere from 30% to 70% of the value of your investments, depending on your stock broker.

You can get a low interest rate with no credit check

Your broker isn’t taking much risk with a portfolio line of credit. If you don’t pay, it has your investments as collateral. Because they’re low risk, portfolio lines of credit tend to have low interest rates.

The interest rate will depend on your broker and the current market rate. You can usually expect a portfolio line of credit to cost less than a personal loan, and rates are often similar to HELOC rates. Keep in mind that this will be a variable rate, so it can go up or down.

There’s also no credit check required to get a portfolio line of credit. Your credit score isn’t a factor in getting approved or your interest rate.

The payment schedule is up to you

Another benefit of a portfolio line of credit is that there’s no preset payment schedule. You’re not required to pay a minimum amount, and there won’t be any late fees if you don’t make a payment by a certain date.

Your broker will charge interest on the outstanding balance, so you shouldn’t carry a balance or stop making payments just because you can. But you’ll have the flexibility to make payments based on what works with your current financial situation.

If the value of your investments drop, it could lead to a margin call or liquidation

The biggest risk of borrowing money this way is that the value of your investments could drop. If the value of your portfolio falls below the threshold for what you borrowed, two things can happen:

Your broker can issue a margin call. You’re then required to add cash to your account until you’re back above the thresholdYour broker can liquidate some of your investments. Brokers will typically issue a margin call first, but keep in mind that the terms normally say that they’re not required to do this.

Let’s say you have a $100,000 portfolio and can get a portfolio line of credit for up to 70% of that. You borrow $70,000. If the market declines and your portfolio drops to $90,000 in value, you’ll be overleveraged. Your broker will issue a margin call, and you’ll need to deposit $10,000. Otherwise, your broker could start selling your investments.

To be on the safe side, it’s better not to borrow up to your limit. The more of a cushion you leave yourself, the less likely it is that you’ll experience a margin call or a selloff.

A portfolio line of credit can be a good way to borrow money if you have a large investment portfolio. Make sure you fully understand how it works and the risks involved before you borrow, to avoid putting your brokerage account at risk.

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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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Mortgage rates are higher, but refinancing still makes sense for some borrowers. Read on to see if you fall into that category. 

Today’s mortgage rates are by no means the highest in history. But they’re considerably higher than the record-low rates we saw in 2020 and 2021.

The average rate on a 30-year mortgage is 6.71% as of this writing, according to data from Freddie Mac. Considering that three years ago, you could sign the same mortgage at or under 3%, 6.71% seems unappealing. As such, it’s generally not considered a great time to refinance a mortgage.

But there are some exceptions to this general rule. And if these things apply to you, you may actually want to refinance as soon as possible.

1. You want to maximize home equity during a cash-out refinance

Many people who refinance a mortgage borrow the exact amount of money they owe on their current loans. But that’s not your only option.

Say you owe $150,000 on your mortgage but your house is worth $300,000, and you need $40,000 for a home improvement project. You could, in that case, tap your $150,000 worth of equity via a cash-out refinance.

A cash-out refinance lets you borrow more than your remaining mortgage balance. You can use the excess funds however you want.

So in this example, you’d refinance a $150,000 mortgage into a new $190,000 loan. The first $150,000 would pay off your old home loan, and the $40,000 would be yours to spend as you wish.

If you have reason to believe your home’s value is elevated now and might drop in the future (perhaps once the real estate market cools off further), then it could pay to move on a cash-out refinance. The higher the value of your home, the more equity you get to tap.

2. You have a high interest rate on your mortgage and can actually save based on today’s rates

If you signed your initial mortgage in 2020 or 2021, then chances are, you snagged a competitive interest rate on it. But let’s say you signed your mortgage years earlier, and that your credit score wasn’t all that great at the time. It may be that you’re paying a higher interest rate than what you’d qualify for today, even with current rates being up.

Now, one thing you should know is that when you refinance a mortgage, you pay closing costs, the same way those expenses apply to finalize a regular mortgage. As such, you’ll generally want to make sure you can shave about 1% or more off of your current loan’s rate for a refinance to make sense.

But let’s say you’re paying 7.85% on a mortgage and qualify for a refinance at 6.8%. In that scenario, refinancing could pay off. On the other hand, it probably doesn’t make sense to refinance if your current interest rate is 7% and you’re looking at 6.8% instead.

All told, it doesn’t make sense for the typical homeowner today to refinance. But under these specific circumstances, a new home loan might be smart for you.

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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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