Money Management

When I visit a house I’m interested in, I consider the location, the age of major systems, the floor plan, and the storage space. Here’s why. 

I’m in the market for a new home, so I’ll be visiting multiple properties before I move forward with buying a house.

I’m taking my time and going to see many different places because I don’t want to take out a mortgage loan and make an offer on a home until I’m sure it meets certain criteria.

Specifically, there are a few key things I always look for when I visit a house I may be interested in purchasing.

The home’s location

A home’s location is the single most important factor for me. Specifically, I want to make sure:

I have a reasonable commute to all of the places I want to go.The neighborhood is safe, clean, and offers activities and amenities my kids will enjoy.I have a reasonable view and I’m not too close to any of my neighbors.

These are all things I absolutely cannot change. You can’t pick up and move a house or get rid of bad traffic on your way to the store. If a home doesn’t have a good location, I know beyond any doubt that I will not be happy living there. So, if it doesn’t meet my criteria, it immediately gets removed from my list no matter how nice it is inside or how affordable it is.

The age of the roof and other major home systems

The next thing I consider is how old the roof and other major systems are, like the air conditioners. Roofs have an average lifespan of about 20 to 30 years depending on the material. And fixing one can be expensive. Air conditioners also don’t last forever and can cost thousands of dollars to replace.

If the roof, HVAC system, or major appliances are getting older, I won’t necessarily cross a house off my list. But, I will think about how much it will cost me to replace these items in the coming years and take that into account when I decide how much I’m willing to pay for the home in the form of a mortgage loan and other expenses.

The home’s floor plan

Issues with the floor plan are another deal breaker for me. It’s really difficult and expensive to take down walls or move around rooms, so I want to make sure the home’s layout makes sense for me.

This means I need a separate hangout area for my kids as they get older, as well as a first-floor master bedroom because I want to be able to have my aging dogs come into my bedroom easily.

I also don’t really like open kitchens, both because I don’t want to look at the mess and I know that I tend to snack more if my refrigerator is right there in front of me when I’m relaxing in my living room.

The storage space the home has available

Finally, I look at the storage space, including the garage and basement or attic as well as closet space. I don’t like to have a ton of clutter around and I don’t want to struggle with where to keep out-of-season clothing or holiday decorations. If a home doesn’t have enough storage, it gets removed from my list as this will be a constant source of frustration for years to come.

By taking these four factors into account, I can maximize the chances I end up in a home I’m happy with over the long haul. They matter far more to me than aesthetics, as paint and cabinets and carpets can be changed but these things can’t.

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JPMorgan Chase has acquired the failing First Republic bank in a move that protects customer deposits. Find out if you need to worry about further bank failures. 

What happened

JPMorgan Chase took over the failed First Republic Bank today in a deal brokered by the FDIC. First Republic branches will reopen under the JPMorgan Chase name, and customer accounts will switch across to the banking giant. “All depositors of First Republic Bank will become depositors of JPMorgan Chase Bank, National Association, and will have full access to all of their deposits,” said a FDIC press release.

So what

Today’s move comes after a weekend of intense negotiations after the FDIC sought bids from several banks. First Republic has been struggling to stay afloat following the collapse of Silicon Valley Bank, which sent shockwaves through the financial system. According to First Republic’s Q1 earnings report, released in April, customers withdrew over $100 billion in deposits in the first quarter of this year. This, combined with higher interest rates, destabilized the bank to the point of collapse.

Not only is First Republic the third major bank to fail this year, the total assets managed by failed banks is already significantly higher than in any year since 2000. For many Americans, this raises questions about whether other banks are still at risk, and how safe their money actually is.

Now what

If you have a bank account with First Republic, you may be wondering what will happen to your funds. It’s important to know your money is safe. Your account will be transferred to JPMorgan Chase, which will reach out to you with more information.

If you’re worried about a knock-on effect on funds held with another bank, it’s worth pointing out that so far no banking customers have actually lost money. When a bank fails, there are several measures in place to safeguard customer money. So far, they have worked. These include FDIC insurance, which covers each depositor for at least $250,000 per bank. The role the FDIC has played in the JPMorgan Chase acquisition is another example of these protections in action.

There’s been a mixed reaction from the banking community to today’s news. Some analysts argue that further small to mid-sized banks could fail, particularly those with similar vulnerabilities. Critics have also raised concerns that the deal strengthens banks and creates an unfair competitive environment. On the other side, President Biden says the deal will ensure the banking system is “safe and sound.” Other analysts believe further contagion is now unlikely.

If this does not reassure you, one key step you can make is to check that your account is FDIC insured. If you hold more than $250,000 in a bank account, make sure you understand the FDIC limits. For example, the coverage is per person so a joint account could be protected for up to $500,000. You might consider moving some money to a new bank account if you have uninsured funds.

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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.JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Emma Newbery has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool has a disclosure policy.

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Savings accounts and CDs have long been good ways to earn interest on your money, but it’s essential to find the best rates. Learn how to avoid missing out on the best promotions. 

Have you ever missed out on a great bank promotion? It can be frustrating to learn about a deal after it has passed, especially when it’s a high-yield certificate of deposit (CD) with an attractive interest rate. This past April, Priority One Federal Credit Union offered a 7% CD, one of highest in 30 years. While this deal is no longer available, there may be other great CD rates that financial institutions have on offer. Here are five ways you can avoid missing out on the next best bank promotions.

1. Check online-only banks and credit unions

The fintech industry has transformed the financial world by providing more options outside just traditional banks. Online banks and credit unions are becoming more popular, including for offering high interest rates. While some online banks can’t match the convenience of traditional banks, they make up for it with more competitive rates, making them ideal for savers.

Online-only banks don’t have the overhead costs brick-and-mortar banks have, so they typically are able to offer their customers much better rates. Credit unions are not-for-profit organizations and customers are considered members, so they typically offer better rates as well.

2. Sign up for notifications

Once you have narrowed down your list of financial institutions, sign up for their newsletters and get on their mailing lists. Many will advertise their new CD rates, savings accounts, and other banking products. This will help you find the best short-term and long-term rates before it’s too late!

3. Check sites that track them for you

Use sites like The Ascent’s best CD rates page that do the research for you! We compare and aggregate the best CD rates out there, helping you earn more on your savings. Our page is updated frequently, so make sure to check back often so you don’t miss out on the best rates.

4. Take advantage of promotional offers

Banks often offer attractive limited-time promotions to get people to open accounts with them. Make sure to research any promotional offers you see for hidden fees or conditions that may be attached. Be sure to read the fine print to understand the conditions before making the commitment to open a new account.

5. Research before opening an account

Also before opening an account, be sure to conduct thorough research. Consider how much money you want to save and which options can provide the highest interest rates. Remember, CD rates are based on timeframes, typically the longer the CD term, the higher the rate. However, there are early withdrawal penalties for removing your money before the selected timeframe is up. It’s essential to compare banks based on their interest rates, account fees, and minimum deposit to find the right bank for your deposit.

The bottom line is to shop around and compare banks to find the best promotional offers that align with your goals. High-yield savings accounts and CDs can provide stability and decent returns, but keep in mind that promotions don’t last forever. Knowing what you’re signing up for is always essential. Remember to be proactive in researching different options and comparing them regularly to catch the best deals before they expire.

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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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Supporting your adult kids? Read on to see if you’re risking your retirement. 

The U.S. Department of Agriculture says middle-income families should expect to spend $233,610 to raise a child through age 17. That data hasn’t been updated since 2017, so if we were to adjust that $233,610 for inflation, it would easily be higher.

But it’s not like parents suddenly cut off financial support once their kids reach their 18th birthdays. In fact, data from Savings.com reveals that 45% of parents pay for their children’s expenses in adulthood, too. That, however, is a move that could end up putting your retirement at risk.

Your nest egg should take priority

It’s easy to see why many parents end up in a position where they’re asked to support their adult children, or feel compelled to. First, there’s the whole wanting to look out for your kids factor. But also, let’s say you’re further along in your career and are earning a decent salary. You may want to help out your 20-something child who’s only bringing home an entry-level salary and can barely afford their rent or mortgage payment.

That’s understandable. And if you’re in a good place financially — one where you’re maxing out your IRA or 401(k) and then some — then by all means, help your grown kids. But one thing you don’t want to do is short your retirement savings in order to help your adult children financially. If you do that, you might end up low on retirement funds by the time your career wraps up.

Savings.com found that parents who plan to retire in the next decade contribute an average of $643 per month to their retirement accounts. But they also spend more than $2,100 to support their grown children. That’s a huge difference.

Now, imagine that your IRA or 401(k) could use some work, only instead of contributing around $2,700 a month to your savings to play catch up, you’re instead writing your grown kids a $2,100 monthly check. That could easily lead to a scenario where you retire and have to make serious cutbacks due to a lack of savings. And in a worst-case scenario, you might even have to, at that point, ask your grown kids to help you out financially, which is probably not what you want.

Put your own needs first

As a parent, you may be wired to give your kids everything. But you know how you’re supposed to put on your own oxygen mask first when you’re flying and there’s a drop in cabin pressure? Well, that concept applies here, too. And it does not, by any means, make you a bad parent. If anything, it makes you a sensible parent who recognizes the importance of ensuring that your long-term financial needs are covered.

In fact, prioritizing your nest egg actually sets a good example for your kids. So while it’s definitely a nice thing to help your grown children as much as you can, make sure you’re not doing so to the detriment of your own retirement.

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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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