Money Management

Boosting travel through Costco isn’t always your best bet. Read on to see why. 

Many people associate Costco with being a place to go buy granola bars and toilet paper in bulk. But actually, there are a host of services you can enjoy through Costco, from getting prescriptions filled to maintaining your car.

One service that Costco is pretty well known for is its travel service. With Costco Travel, you could enjoy big savings on a host of destinations. And if you have an executive membership at Costco, you’re eligible for 2% back on your purchases — and that also extends to any travel you book through Costco Travel. Book a $5,000 vacation package, and you’re looking at $100 cash back.

Now, there are plenty of good reasons to book your travel through Costco, like getting access to exclusive deals and snagging the aforementioned cash back. Plus, Costco’s customer service is known to be excellent, so if you need help booking an itinerary, you’re probably going to find a very helpful Costco Travel representative at the other end of the line.

But there are certain pitfalls you might encounter when you use Costco Travel. Here are a few to be aware of.

1. Costco Travel doesn’t cover all destinations

You can use Costco Travel to book a trip to Europe, the Caribbean, or Hawaii — and these are just a few of the destinations you can get access to. But if you’re looking for a trip off the beaten path, then Costco Travel may not be your best bet.

Costco works with different airlines and resorts to come up with great packages for popular destinations. But it won’t necessarily be possible to put together a custom package if you want to visit a remote island many people haven’t heard of.

2. The best deals tend to come in package form

When you book travel through Costco, the big savings tend to come when you sign up for a package — something like a flight and resort stay. But if you only need a flight, or you only need lodging, then Costco may not have the best deal to offer.

3. The packages aren’t necessarily cheap

Costco offers a host of options when it comes to booking a vacation package. But those options aren’t necessarily inexpensive. And you may get frustrated in the course of booking your travel when you realize that many of Costco’s offerings are beyond your budget.

Plus, Costco may not necessarily offer the best price for a given destination. You’ll need to do your research to find out.

As an example, a five-day stay at the Hyatt Ziva Cap Cana (a Dominican Republic report) costs $6,522 for a family of four in December. Although that includes flights from the New York metro area, that’s hardly a cheap getaway.

If you were to book that property yourself directly, you’d be looking at $5,078 for the same dates, but you can lower that price by cashing in Hyatt points if you have them. Even if you don’t, you’re left with about $1,500 of leeway to book a flight. And it may be possible to score a lower price on a flight if you’re strategic about your booking and keep checking prices.

You may find that booking your next vacation through Costco Travel both makes sense and saves you money. But be aware of these potential pitfalls before assuming that Costco Travel is the best way to go.

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.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 

Today’s CDs are offering attractive interest rates. Read on to learn why a CD might not be the best place, however, for long-term growth. 

A certificate of deposit (CD) lets you park a lump sum in a savings account for a fairly competitive interest rate. You’ll earn income steadily, but there’s a catch. You’ll lock your money up the length of your CD term (between three months and five years), and you risk forfeiting interest if you try to withdraw funds.

CD rates have lately been drawing many new depositors, as the APYs are averaging 4.25% to 5%. And though today’s CD rates are the highest we’ve seen post-2007 recession, there’s one big reason I’m still not locking my cash in a certificate of deposit.

The stock market has greater potential

A CD is a low risk deposit that can guarantee a fixed interest rate for a certain amount of time. When you sign the CD agreement, you know more or less how much your money will grow — so long as you don’t violate the contract — and the FDIC insurance ensures you’ll get back at least your principal.

And while that can bring security to those who abhor risk, for investors who are willing to take on more risk, it can mean missing out on even greater returns on investments with greater potential, like stocks and ETFs.

If you have a long time horizon (like five to 30 years), the stock market might give you returns that no CD could even dream of offering. There’s risk — you can lose your investment — but the long-term returns typically average much higher than those on fixed-income securities.

Stocks… in this market?

I can already hear the objections — stocks? Right now? Isn’t the stock market getting clobbered?

Yes, it is absolutely getting clobbered. Which makes today an excellent entrypoint. Many companies with long-term growth potential have been valued lower than their fundamentals would otherwise lead one to believe. And the S&P 500 (an index of the top 500 companies in the U.S.) is roughly 86% lower today than its all-time high of $4,793 on Dec. 21, 2021.

Past performance does not guarantee future returns, but perhaps a comparison could shed light on the opportunity in front of us.

After the financial crisis of 2007, the S&P 500 took a plunge and finally bottomed out at about $676 on March 9, 2009. If you had invested $10,000 in the S&P 500 on that day, you would have bought roughly 14.79 shares. That same holding would be worth around $61,230 at today’s price and $70,888 at its all-time high of $4,793 — a return of 612% and 708%, respectively.

Now, it’s unlikely you’ll time the market right and buy shares of the S&P 500 at this bear market’s all-time low. But even if you had waited a year later until March 9, 2010, your $10,000 would still have grown 362% to $36,201. That’s over a 13-year period, which is about seven more years than the longest term on a CD (five years), but significantly higher than today’s top CD rates.

Should you get a CD?

If fixed income is your jam, then, yes, you should consider getting a CD at today’s rates. Some signs, in fact, indicate that long-term CD rates could be trending downward, which might make now the last time to lock in high rates before they start declining.

But if you’re looking for greater potential, now could also be a good time to invest in the S&P 500. And hey — if you want the best of both worlds, no one’s stopping you from splitting your cash and depositing half in a CD and half in a brokerage account. You could benefit off fixed income, plus the potential for greater returns in stocks.

These savings accounts are FDIC insured and could earn you 12x your bank

Many people are missing out on guaranteed returns as their money languishes in a big bank savings account earning next to no interest. Our picks of the best online savings accounts can earn you 12x the national average savings account rate. Click here to uncover the best-in-class picks that landed a spot on our shortlist of the best savings accounts for 2023.

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 

Having a stranger steal your financial data is scary. Keep reading to see what to watch out for if it happens to you — and steps to mitigate your risk. 

Any way you slice it, losing control of your personal information is worrying. And unfortunately, advances in technology have made it easier for thieves and scammers to get hold of your financial data. Let’s take a look at the risks you’re running if your banking information is leaked or stolen.

What’s at risk?

It probably won’t come as a surprise to you that if hackers get, say, your checking account information, the money you have in the bank can be stolen. While having just an account number likely isn’t enough for thieves to drain that account, the combination of account number and routing number can lead to some less-than-desirable outcomes, such as fraudulent payments, the creation of checks for your account, and possibly online shopping with retailers that only require bank account information. Your bank account could even be used to launder money earned through criminal operations. Your identity itself could also be at risk if you lose track of your banking information.

Identity theft is when someone uses your personal or financial information to perform actions as you, such as opening new credit card accounts, claiming your tax refund, and even pretending to be you if they get arrested. Your bank has a lot of information about you, and if scammers get access to your account data, you could be in for a host of unpleasant developments like these. And these crimes are on the rise; in 2021, the Federal Trade Commission received more than 1.43 million identity theft reports, up 3.3% from 2020.

How can you protect yourself?

Lots of vigilant people have had their banking information or other identity data compromised, through no fault of their own. But it’s a good idea to take the following steps to give yourself a fighting chance of protecting your money and data.

Choose more secure payment methods

Checks and debit cards are solid payment methods, but they leave you more vulnerable to scammers than using a credit card. Checks you’re mailing to pay bills can be taken from your mailbox and washed, then repurposed. And debit cards offer less robust protections than credit cards. For these reasons, it’s a lot safer to opt for online bill payment through your utility company, mortgage lender, and other creditors. And if you’re shopping online or in person, credit cards are the more secure bet.

Enable alerts through banking apps

You’re using your bank’s mobile app, right? Not only does it offer convenience and access to your account information anytime and anywhere, but it likely also offers you the chance to opt in for alerts. If fraudulent activity is detected in your account, you’ll be notified and can verify transactions or sound the alarm to the bank if you’re not the one spending your money. Just be sure to keep that banking app updated and enable multi-factor authentication for your security.

Don’t click links in emails or texts

If you receive something that looks like a legitimate alert from your bank via text or email, don’t click on the link that may be included. Reach out to your bank independently and see if there’s something you need to worry about. Links in texts or emails may be phishing attempts that can steal your login information.

Go paperless

Bank statements are a treasure trove for scammers, so don’t give them the chance to steal statements out of your mailbox. Opt in for paperless statements instead, and you’ll get an email from your bank every month telling you that your account statement can be viewed. It’s as simple as that.

Check on your accounts regularly

Speaking of simple, one of the easiest ways to stay on top of your bank account and its potential for fraud is to be vigilant about logging in and checking out your recent transactions. See something that looks unfamiliar? Perhaps a charge at a merchant not in your town, and for a purchase you didn’t make? Contact your bank ASAP. It’s a good idea to stay on top of your cash flow and bank balance situation by checking your account regularly anyway.

Hackers, scammers, and thieves are out there, ready to capitalize when consumers lose track of their banking information. Take the above steps to avoid becoming a victim of money loss and identity theft.

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 

Delicious homemade meals don’t require a fortune in fancy equipment or ingredients. Check out these tips that can improve your cooking on any budget. 

We all know that cooking at home instead of eating out (or takeout) is one of the best ways you can improve your personal finances. But the chefs on TV and social media can make it seem as if you’ll never match their quality cooking with your own paltry home kitchen.

Think again. You don’t need to spend a fortune on fancy appliances — or even fancy ingredients. You can make your home cooking not only taste better, but taste like it just came from a restaurant. You can improve the quality of your cooking with just a few cheap (or even free) changes. Let’s take a look.

1. Balance with acid

Have you ever tasted something that was somehow both salty and bland? It probably needed acid. Is your dish a little too rich, or too sweet? Again, the answer may be acid. Different types of vinegar and citrus fruits are the most common ways to add a touch of acid to your dish, but you could also use things like yogurt, buttermilk, or even tomatoes.

Even better, acids won’t add too much to your overall cooking costs. A decent bottle of vinegar can last months, and fresh lemons or limes (and yes, you should always use fresh citrus!) are typically less than a dollar.

Acids can also bring their own flavors to the party. A hint of lemon, a touch of balsamic, a bit of sour cream — which acid you choose should be dictated by the other flavors in your dish. A drizzle here, a fresh squeeze of juice there, and you can enhance and balance your dish in remarkable ways.

2. Season more (and at the right time)

One of the main differences between typical home cooking and restaurant cooking is the amount — and the timing — of the seasoning (typically salt and pepper, though you can also season with marinades, rubs, and brines).

Ever wonder why your home-grilled steak isn’t quite as flavorful as the one at the steakhouse? Chances are you’re not adding enough seasoning. You’re probably also not seasoning early enough.

Meat should be seasoned thoroughly, on both sides, well before it hits the pan. If you can season a day or two ahead of cooking, you’ll give it time to work its magic on the meat. This not only adds extra flavor, but can help maintain juiciness as well.

And don’t forget to season, well, everything else. Making pasta? Salt your water like the sea. Sauteing vegetables? Season those when they hit the pan. Even some sweet dishes can benefit from a touch of salt.

3. Caramelize your veggies

Exposing carbohydrates — the sugars found in fruits and vegetables — to heat sets off a chemical reaction that causes them to brown. It also produces a host of new flavors, often adding a natural sweetness to typically savory produce.

Caramelized onions are perhaps the most well known, as they’re often used as a condiment on all manner of dishes (I like to add them to soup bases, as a topping for a burger, and schmear them on bagels with cream cheese).

But it’s not just onions that can be caramelized. You can use this quirky chemical reaction to enhance the flavor of a ton of different vegetables, from carrots to Brussels sprouts and more.

4. Sprinkle in some MSG

This magical flavor enhancer is used in most restaurants — not just at the Chinese takeout joint — as well as in canned soups, deli meats, and anything else that needs a boost of umami. If you’ve perfected your restaurant-quality dish but it still seems like something is missing, it’s probably a dash of MSG.

While there was some social upset about monosodium glutamate a while back, it’s actually quite safe for the vast majority of people. And you can pick up half a year’s supply for just a few bucks at most grocery stores. So go ahead, give it a try.

5. Cook it lower and slower

Most of us have a million things to do each day, and that means we’re often trying to get dinner on the table as quickly as possible. But some dishes simply need time to taste good. A good stew should simmer for a few hours to meld the flavors. Tough cuts of meat braised since breakfast will be fork-tender on the dinner plate.

You can get the job done in a slow cooker, a Dutch oven, or even in a lidded pot on the stove. A little time invested in the morning can mean an easy, delicious meal by dinner.

6. Taste. Every. Thing.

If you take nothing else away from this list, let it be this: Taste every single part of your meal, as you’re cooking, from start to finish. The only way you’ll know if your seasoning is right, if your acid is balanced, if your dish is cohesive — it all comes down to tasting.

There’s a reason every cooking show involves about a hundred tasting spoons. Good cooks taste everything, all the time. The single thing you can do to improve the quality of your home cooking to ensure you’re tasting at every step of the way. And best of all, it’s absolutely free!

You don’t need to renovate your kitchen or go to culinary school to produce delicious meals at home. Adopting a few of the habits of professional chefs, from seasoning right to choosing the right cooking method, can transform your homemade meals into restaurant-quality indulgences.

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.Brittney Myers 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