Money Management

You don’t have to spend much money to get a Father’s Day gift that your dad will love. Here are some fantastic finds at Target that cost less than $20. 

June is quickly approaching, which means it’s time to start thinking about Father’s Day. This holiday is the perfect opportunity to spoil the fantastic father figures in your life. For those who have yet to find a gift, it’s not too late. Target is an excellent place to shop if you’re on a tight budget. We’ve outlined a few Father’s Day gifts you can buy at Target for under $20.

1. 12 oz. bottle of Mike’s Hot Honey

If your dad is a foodie, you may want to pick up a 12 oz. bottle of Mike’s Hot Honey for $9.99. This bottle of goodness offers the ultimate sweet-heat combo. It’s a unique topping made with 100% honey infused with chili peppers. Your dad will be ready for summer cookouts.

2. A Daily Dose of Dad Jokes paperback book

Telling dad jokes, whether funny or not, is a universal skill that comes with fatherhood. Why not give your father a new collection of jokes to add to his repertoire? Target sells paperback copies of A Daily Dose of Dad Jokes by Taylor Calmus and Peter L. Harmon for under $10. With 365 brand-new jokes, you and your dad will both appreciate this present.

3. Grilling tools

If your father is the grill master of the family, grilling tools and essentials could make for an excellent gift idea. Here are a few finds at Target that cost less than $20 each:

Room Essentials Silicone Grill Gloves: $15Weber 18″ Three-Sided Grill Brush: $18.99Outset Nonstick Skillet with Removal Handle: $19.19Sun Squad 3-piece Tool Set: $10Char-Griller Griddle Cleaning Kit: $14.99

4. Sudski Shower Beer Holder

If you’re looking for a silly gift to make your dad laugh, why not buy him a shower beer holder? You can get a 12 oz. Sudski Shower Beer Holder for $13.98 at Target. If you have some extra money left in your budget, you can add his favorite six-pack to complete the gift.

5. WeatherX WB/AM/FM Radio

There’s nothing worse than watching a lively baseball game only to have the electricity go out unexpectedly. This gift will prepare your father for those situations. You can buy the portable WeatherX WB/AM/FM Radio at Target for $19.99. It has a built-in speaker, can be powered by AC power or battery, and has an auxiliary input. Plus, it looks cool and won’t drain your checking account.

6. Ello Colby 32.oz Stainless Steel Water Bottle

When you have a high-quality water bottle that keeps your drink cold, it can be easier to stay on track with your daily water intake goals. If your dad needs a new water bottle, you may want to buy the Ello Colby 32 oz. Stainless Steel Water Bottle. You can get it for just under $20 at Target. All parts are BPA-free, and it features a leak-proof locking flip lid.

7. Hearth & Hand with Magnolia 4-piece Pickleball Set

If your dad likes staying active, lawn games are a great gift idea. You and your dad can have fun spending time outdoors. You can find the Hearth & Hand with Magnolia 4-piece Pickleball Set for $19.99 at Target. It comes with paddles, two pickleballs, and a carrying bag.

Don’t feel pressure to overspend

When a holiday approaches, it can be tempting to overspend. But you shouldn’t go into credit card debt to celebrate your dad. He wants to feel appreciated, which doesn’t require an expensive present. Remember to keep your personal finances top of mind as you shop.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2024

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 until 2024, 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.Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Target. The Motley Fool has a disclosure policy.

 Read More 

Your IRA might be a lifeline once you stop working. Read on for signs that your savings are at risk of falling short. 

There’s a reason people are told not to plan to retire on Social Security alone. Those benefits will only replace about 40% of your income if you earn an average wage. And most seniors need more income than that to cover their living expenses and actually have enough money left over to enjoy themselves.

That’s why it’s so important to steadily fund an IRA. But whether you open a traditional IRA or a Roth IRA, if these signs apply to you, it means you may be putting yourself at risk of not having a large enough balance for retirement.

1. You’ve written off the idea of maxing out your IRA

IRAs max out this year at $6,500 for savers under 50 and $7,500 for those 50 and over. By contrast, 401(k) plans max out at $22,500 for savers under 50 and $30,000 for those 50 and over.

As such, maxing out a 401(k) is a pretty difficult thing to do. But unless you’re a lower earner, maxing out an IRA may be more than feasible. So if you’re going to tell yourself from the start that maxing out isn’t doable, you might be setting yourself up to end up with a shortfall. Instead, take a look at your budget and see what spending changes you can potentially implement to make it possible to max out.

2. You’re not increasing your contribution rate

It’s one thing to contribute minimally to your IRA when you first kick off your career and don’t earn a very high wage. But as your earnings increase, your IRA contributions should follow suit. If you’re not increasing your contribution rate year after year, you’re limiting your options in retirement.

That’s why a good bet is to save your raise every year. Since it’s money you’re not used to living on anyway, you should have a pretty easy time parting with it.

3. You’re investing your savings too conservatively

The beauty of an IRA is that you can invest your money in a tax-advantaged manner so it grows even more. But if you stick to conservative investments, you might end up unhappy with your balance come retirement.

That’s why it’s so important to load up on stocks, especially when retirement is far off. If you play it too safe, you might end up with a shortfall on your hands.

Vanguard says the average annual return for a portfolio of only bonds is 5.33%, while the average stock market return (as measured by the S&P 500 index) is 10%. So let’s say you contribute $100 a month to an IRA over 35 years. At a 5.33% return, you’re looking at a final balance of $116,000. At a 10% return, you’re looking at $325,000.

Your IRA could be the account that helps you not only manage your costs in retirement, but enjoy that stage of life to the fullest. If these signs apply to you, it means it’s time to make changes to the way you fund and invest your IRA.

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 

If you sign a mortgage today, you might get stuck with a high interest rate. Read on to see why you may be stuck with it for a while. 

To say that today’s housing market is a tough one for first-time home buyers would be an understatement. Not only is housing inventory low, but mortgage rates are elevated at a time when home prices are still pretty high. That’s a very costly combination.

Now, the good news is that today’s first-time buyers aren’t necessarily letting current housing market conditions get them down. Many are still making plans to buy a home this year. But they’re also planning to refinance their mortgages once rates come down.

In fact, 27% of 2023 buyers are gearing up to refinance after purchasing their homes, according to TD Bank’s First-Time Homebuyer Pulse. But while that’s a good plan in theory, it may not come to pass for quite some time.

Mortgage rates may not fall anytime soon

It’s definitely a good idea to plan to refinance your mortgage loan once borrowing rates drop across the board. And you should especially make an effort to maintain a great credit score so you’re able to qualify for a competitive rate once refinancing your mortgage makes sense.

But if you’re going to buy a home today with the plan to refinance your mortgage as soon as you can, know this — you may be stuck with your current mortgage rate for quite some time.

Mortgage rates have been stuck in the 6% range for 30-year loans since the start of the year. And based on general market and economic conditions, it’s not unreasonable to assume that mortgage rates could easily stay where they are not just for the remainder of 2023, but also beyond.

That’s why if you’re going to buy a home today, you’ll need to really crunch the numbers and make sure you can swing your monthly costs based on the mortgage rate you’re locking in initially. If today’s rates make buying a home a stretch, then you may want to put your plans to purchase one on hold.

Will mortgage rates ever get down to 3% again?

Historically speaking, today’s mortgage rates actually aren’t so high. Rather, it’s that buyers got used to the record low rates that became available earlier in the pandemic.

In 2021, it was more than feasible to sign a 30-year mortgage at or around 3% if you had great credit. These days, you might be looking at more than double that rate, even if your credit is excellent.

There’s a good chance that mortgage rates will drop over time. But whether we’ll see 3% rates anytime soon is questionable. Those rates aren’t very profitable for lenders, so chances are, we’ll only see them on offer if the housing market takes a dive and lenders grow increasingly desperate to drum up business.

But that said, if you sign a mortgage today in the 6% range and rates drop to the low 5% range or upper 4% range a few years from now, refinancing could result in a world of savings. So while you shouldn’t bank on a refinance to be able to afford your home, you can always pursue a refinance once it makes sense to get a new mortgage.

Our picks for the best credit cards

Our experts vetted the most popular offers to land on the select picks that are worthy of a spot in your wallet. These best-in-class cards pack in rich perks, such as big sign-up bonuses, long 0% intro APR offers, and robust rewards. Get started today with our recommended credit cards.

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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

 Read More 

Ready to buy life insurance? Read on for some key points to keep in mind. 

If there are people in your life who depend on your income, or who stand to get hurt financially in the event of your passing, then life insurance is a really important thing to buy. And if you’re contemplating a life insurance purchase this year, you’re in good company.

An estimated 39% of U.S. adults say they intend to buy life insurance coverage within the next year, according to data from LIMRA. And the intent to buy life insurance is even higher among younger generations, with 44% of Generation Z adults and 50% of millennials planning to get coverage this year.

If you’re new to life insurance, it’s important to have a few basic points covered as you seek out a policy. Here are some tips to help you get started.

1. Know how much coverage you need

The higher the benefit associated with your life insurance policy, the more it’s apt to cost you. As such, you don’t want to overbuy life insurance. But you don’t want to underbuy coverage, either.

A good rule of thumb when purchasing life insurance is to secure a benefit that will replace at least 10 times your salary. You may want to aim for 12 times your income for added protection.

On top of salary replacement, it’s a good idea to consider your debts when determining how much life insurance you need. If you own a house with a $300,000 mortgage jointly with a spouse, you may want to add $300,000 to whatever 10 to 12 times your salary is. Otherwise, your spouse might struggle to keep your family in your home without your income.

2. Understand the role your health plays in your premium costs

The more health issues you have at the time you apply for life insurance, the more risky a candidate you come across as. And more risk on the part of a life insurance company means higher premium costs.

As such, if there are aspects of your health you can improve before applying for life insurance, it pays to make that effort. Shedding a few pounds, for instance, could result in a nice amount of savings.

3. Don’t be lured by whole life insurance

When you’re first buying life insurance, whole life insurance might sound appealing because it not only covers you on a permanent basis, but it also accumulates a cash value over time. Term life insurance, by contrast, only covers you for a preset period of time, and it does not accrue any sort of cash value.

But one thing you should know is that whole life insurance can be extraordinarily expensive. And if you sign up for it, you might risk falling behind on your premiums due to the cost, thereby losing your coverage altogether. You may be much better off with a term life policy that lasts 20 or 30 years. And if you like the idea of forced savings, you can always take the money you’re not spending on costlier whole life premiums and stick it into the bank.

Buying life insurance is an important thing to do for your family. Keep these tips in mind as you attempt to secure the coverage your loved ones need.

Our picks for best life insurance companies

Life insurance is essential if you have people depending on you. We’ve combed through the options and developed a best-in-class list for life insurance coverage. This guide will help you find the best life insurance companies and the right type of policy for your needs. Read our free review 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 

A fixer-upper might cost less than a home in better shape. But read on to see why buying a fixer-upper might come back to haunt you. 

Buying a home is an expensive prospect these days. Not only are homes still expensive, but mortgage rates remain elevated, at least compared to the bargain rates buyers saw in 2021. As such, you may be inclined to purchase a fixer-upper if you’re intent on buying a home this year.

A fixer-upper might end up being less expensive than a home in better shape from a purchase price perspective. And buying one could mean signing a much more affordable mortgage.

A good 59% of prospective buyers say they’re looking to buy a starter home or fixer-upper this year, according to TD Bank’s First-Time Homebuyer Pulse. But here’s why buying a fixer-upper may not work out so well for you.

1. Your repairs might cost more than you bargained for

You can do your best to estimate the cost of restoring a fixer-upper by talking to contractors before you make an offer. But even then, you may find that the actual cost of getting your home in shape is higher than the numbers you were presented with initially. That could deal a huge blow to your savings account or force you to take on additional debt to get your home repaired.

2. Your repairs might be disruptive

Living in a construction zone is hardly a pleasant experience. Depending on the nature of the repairs your home needs, you could end up spending your days listening to the sound of hammers and assorted tools when you’re trying to work or settle in. And if you’re having your kitchen gutted, you may not be able to do anything more than stick a frozen dinner into the microwave for weeks at a time.

Keep in mind, too, that home repairs have a tendency to take longer than expected. Your contractor might tell you that your kitchen won’t be functional for about a month while it’s being redone. But if there are delays with things like permits, inspections, and appliance orders, you could end up inconvenienced a lot longer.

3. You may not have an accurate read on your property taxes until your home is fixed up

Property taxes are partially based on the market value of your home. If you buy a home that clearly needs work, you might start out with a property tax bill based on its current condition. But if you spend time and money fixing it up, you may find that your home is slapped with a much higher assessed value the next time assessments take place in your area. And a higher assessment will generally lead to a higher property tax bill.

Be careful when buying a fixer-upper

The good thing about buying a fixer-upper, aside from paying less for your home, is that it gives you an opportunity to put your own stamp on it. But before you make the decision to purchase a home in dire need of repairs, think about the drawbacks involved. And make sure you’re willing to take on the risk of added costs, higher property taxes, and weeks of upheaval to your home life.

Our picks for the best credit cards

Our experts vetted the most popular offers to land on the select picks that are worthy of a spot in your wallet. These best-in-class cards pack in rich perks, such as big sign-up bonuses, long 0% intro APR offers, and robust rewards. Get started today with our recommended credit cards.

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 

Knowing where to put your money is good for your finances and your quality of life. Check out the best ways to invest your money when you’re in your 30s. 

Your 30s are an exciting and pivotal decade. You’ve had some time to establish yourself as an adult and start building your career. In an ideal world, you’ll also be saving and investing money regularly. But if you haven’t done that yet, it’s still early enough that you can get on track without too much trouble.

Where you put your money right now is crucial, because this can either set you up for success or make life more difficult as you get older. To help with that, you’ll find the best investments for people in their 30s below.

Note that this will be a broad look at ways to make the most of your money. It won’t cover specific companies or assets to buy, but rather how you can use your money in a way that improves your finances and your life as a whole.

1. Paying off high-interest debt

Even if it’s not the first thing that comes to mind when you think of investing, paying off costly debt is one of the best investments you can make. There’s no textbook definition of high-interest debt, but anything with an annual interest rate of 10% or higher fits the bill.

For many, the main culprit here is credit card debt. Americans as a whole have nearly $1 trillion in credit card balances, and the average interest rate is above 20% per year.

Look at it like this — if you get rid of credit card debt with a 20% interest rate, that’s like getting a 20% return on your money. You’re not going to find any other investment that can reliably get you those kinds of returns.

2. Career development

Your income is one of the most important factors in your financial success. The more money you earn, the easier it is to afford your bills and have funds left over to put toward your goals.

The average income goes up until middle age, and it increases quite a bit for Americans while they’re in their 30s. With the right decisions, you could significantly raise your income during this decade of your life. To give yourself the best chance, it’s worth looking for ways to invest in your career. Here are a few options:

Further your education through a degree or certificate program. Adults with higher levels of education earn more on average.Take a course related to your career or learn skills that could benefit you professionally. For example, if being bilingual would help, invest in tools to help you learn another language.Work with a coach or career counselor. You could also spend time with mentors to learn from them.

3. A retirement fund

Waiting to save for retirement is an all-too-common money mistake. To show just how costly waiting can be, let’s say that two people save $1,000 per month toward retirement. They get an 8% annual return, as they invest in stocks and that’s in line with the stock market average. The only difference is that one starts investing at 35 and the other starts investing at 50.

By 65, the investor who started at 35 will have $1,490,359. The investor who started at 50 will have $346,038. Those 15 years cost over $1.1 million.

You’re still young, so take advantage by investing at least 10% of your income toward retirement. Here are the most popular types of tax-advantaged retirement accounts that help you save on taxes while building your nest egg:

401(k) plansRoth 401(k) plansIndividual retirement accounts (IRAs)Roth IRAs

4. Insurance

It’s important to have insurance to protect you from major expenses. There are many types of insurance, and at a minimum, every adult should have:

Health insuranceHomeowners or renters insuranceAuto insurance (if you drive)

Depending on your situation, there may be other types that you need, as well. For example, if you have a pet, then pet insurance is good to have. If there’s anyone relying on your income, such as children or a spouse, then life insurance is a must.

On the subject of life insurance, it’s worth mentioning that insurance salespeople often market whole life policies as an investment. For most people, whole life insurance isn’t worth it. Term life, which lasts for a set time period, is a better fit because premiums are much cheaper.

As you get older, it becomes even more important to use your money wisely. Now that you’re in your 30s, make it a point to aggressively pay off high-interest debt. Don’t be afraid to spend your money on things that will benefit your career, and also make sure to save for retirement every month. Last but not least, consider what insurance coverages you need so that you’re protected if any sort of disaster strikes.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2024

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 until 2024, 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