Money Management

A writer explains how an impulsive stock-buying decision cost her. Read on to learn more. 

It’s pretty fair to say that 2023 has not been a great year for the banking industry. The failures of Silicon Valley Bank and Signature Bank sent shockwaves through the sector earlier in the year, causing many investors to unload their bank stock positions in their brokerage accounts.

But I did something different. Back in mid-March, I decided to buy shares of First Republic Bank when the price started to fall due to the company’s increasing financial woes. The way I saw it, if I could scoop those shares up at a bargain, it was worth doing so, because what was the likelihood of yet another bank failing?

But lo and behold, First Republic has joined the list of shuttered banks in 2023. And now I’m sitting on a big loss in my brokerage account.

An impulsive move I now regret

Although I believe in researching stocks before buying them, purchasing shares of First Republic was something I did on a whim. I knew the bank was not in good shape when I bought those shares, and I knew the banking industry overall was iffy. But I figured I’d take a chance on First Republic given that its stock price had recently plunged so much, thinking things had to get better from there.

Well, that gamble didn’t work out well for me. I wound up buying shares of First Republic at about $30 apiece. Now that the bank has failed, those shares are pretty much worth $0.

See, what actually happened with First Republic is that the federal government seized its assets and sold them to JPMorgan Chase. JPMorgan will take in all of the assets, like savings accounts, that were being housed at First Republic.

And because First Republic was FDIC-insured and JPMorgan is covering its deposits, consumers with savings at First Republic should be made whole. But JPMorgan will not be taking on First Republic’s corporate debt or stock. So shareholders like myself are looking at losses.

Lesson learned

Thankfully, when I bought shares of First Republic on a whim, I didn’t go too heavy on them. So as of now, I’m only sitting on a $265 loss.

It’s a sum of money I’m hardly thrilled to say goodbye to. But it’s also not a catastrophic amount. Plus, I intend to try to make the best of it by using that loss to my advantage from a tax perspective.

I can use that loss to offset other capital gains I end up liable for in my brokerage account this year. And if I don’t have capital gains to offset, I can use that loss to offset $265 of regular income. So either way, there’s a silver lining.

Still, one thing I’m taking away from this experience is that when a stock’s price utterly plunges overnight, there’s a reason for it. And what might look like a buying opportunity is often anything but.

In this case, I took a chance and it didn’t work out, but the financial damage was minimal. I’ll be sure to remind myself of this incident, though, the next time I’m tempted to scoop up what looks like a bargain stock.

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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. Maurie Backman has positions in First Republic Bank. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool has a disclosure policy.

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Do you want to save money on entertainment? Google is adding live channels to its app and TVs and will offer 800+ live channels for free. Find out more. 

Some people have gotten rid of cable to save money on their monthly expenses. Many TV manufacturers, including Google, provide built-in digital channels to give their customers access to free content as a perk. Google recently added 800+ free channels to its Google TV app. Could this news give you the perfect excuse to ditch cable for good?

Consumers favor streaming content

Many consumers are getting rid of cable and subscribing to streaming services to watch the movies and television shows they enjoy. But as the cost of these services rise, it can feel like the savings are nonexistent. After subscribing to several paid streaming services, you may spend more than you did when you had cable. If you relate to this, it may be time to consider using free streaming services.

Google TV now offers 800+ free channels

On April 11, 2023, Google announced it would add more free channels to the Google TV app. The tech company wants to make it easier for TV watchers to find free live-streaming offerings quickly. In addition to existing free channels from Pluto TV, the brand will integrate access to free channels from Tubi, Plex, and Haystack.

These channels will be easily accessible in the Live tab. Google noted it would also launch its own free built-in channels that can be accessed without downloading or accessing an app. With the change, customers can access over 800 live channels, including NBC, ABC, CBS, and Fox.

These new capabilities will make it easier for consumers to access more content free of charge. According to Google, these offerings will be available in the coming weeks. All Google TV devices in the United States, including Chromecast with Google TV and TVs with Google TV built-in, would have access to these free channels.

Four ways to save money on paid streaming services

This is likely welcome news if you enjoy streaming content and have a Google TV or use the Google TV app. With more live TV channels included, you’ll have more entertainment variety. But you likely won’t want to give up all of your paid streaming services. Here are some ways you can save money on streaming expenses.

Don’t ignore free trials: Before paying for a new streaming service, check to see if a free trial is available. A free trial period is an excellent way to test a service before you spend money and commit to the continued expense.Rotate streaming services: It can be impossible to watch every show and movie available when you pay for multiple streaming services simultaneously. Rotating streaming apps can help you save money and maximize the value you get from each service while each subscription is active.Bundle services to get a deal: Several streaming companies offer bundles allowing subscribers to access multiple streaming services for a discounted price. A bundled streaming plan can give you more variety without breaking your budget.Put your credit card perks to use: Some rewards credit cards include monthly streaming service credits as a benefit. These credits can help you keep more money in your checking account and make your cards more valuable.

Don’t ignore freebies

If you want to save money on monthly entertainment expenses, don’t ignore free live TV channels. When paired with a streaming service or two, these channels could provide all the entertainment you need and give you the perfect excuse to ditch cable. Check out our personal finance resources if you’re looking for more ways to save money.

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

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It’s common for a mortgage to be transferred to another loan servicer. Read on to learn more. 

Many people use the terms “mortgage lender” and “mortgage loan service” interchangeably, but they’re actually different. Your mortgage lender is the financial institution that loaned you money to finance a home purchase. Your mortgage loan servicer, on the other hand, is the company that oversees your mortgage once it’s in place and manages your ongoing payments and transactions.

When you get a mortgage statement every month showing how much money you owe, that statement is generally coming from your mortgage loan servicer. Similarly, if you have questions about your mortgage payments once your loan is in place, it’s your loan servicer you’ll reach out to for more information.

The loan servicer you start out with, however, could change over time. This is actually a pretty common thing. But it’s important to know what to do when another loan servicer takes over your mortgage.

Pay attention to details

When a new loan servicer takes over your mortgage, your debt does not go away. All it means is that you’ll have to start sending your payments somewhere else, and if questions arise about your mortgage, you’ll need to direct them to your new loan servicer once it takes over.

Now, one thing that your current and new loan servicer must do is inform you of this change. If it doesn’t, you won’t know where to send your payments. The Consumer Financial Protection Bureau says that your old loan servicer generally needs to give you at least 15 days notice before your loan is transferred over to a new loan servicer. And often, you’ll get more of a heads-up than that.

Your new loan servicer, meanwhile, should generally send you a notice within 15 days after getting the rights to your loan telling you where to send your payments going forward. You may not get a separate notice, however, if your initial notice from your old loan servicer contained that information.

Why should you care about your loan servicer?

It may not make much of a difference who your loan servicer is in theory. But it is important to make sure you’re sending your mortgage payments to the right place. If you continue to send your mortgage payments to your old loan servicer, your account may not get credited accordingly.

That could lead to issues where you’re flagged as being delinquent on your mortgage payments when you actually sent them in on time, albeit to the wrong place. And the last thing you want is to cause damage to your credit score when you actually have the money on hand to make your payments.

Also, many people have their mortgage payments set up to pay automatically out of their checking accounts every month. You’ll need to pay attention to when your new loan servicer takes over and change your automatic payments so they go to the right place. But other than that, there’s really not much you need to do when your mortgage is taken over by a new loan servicer.

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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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Love Chipotle? Read on to see if you’re eligible for a free meal. 

What happened

Chipotle is giving 2,000 healthcare professionals a chance to score free meals in celebration of National Nurses Week, which runs from May 6 through May 12. All told, the chain plans to give away more than $1 million in free food.

So what

In 2022, registered nurses earned an average annual wage of $89,010, according to the Bureau of Labor Statistics. That might seem like a decent salary, but when you factor in the work involved, it’s easy to make the argument that nurses and other healthcare professionals are underpaid.

Plus, there are many nurses and healthcare workers that earn a much lower salary than $89,010. Chipotle is looking to thank these professionals for their dedication.

“Given the demands placed on the health care community every day, we know finding time to bond, celebrate, or even eat as a team can be challenging,” Chris Brandt, chief marketing officer at Chipotle, said in a statement. “The Burrito Care Packages offer a convenient opportunity for healthcare units to come together and share a delicious meal on us.”

Now what

Fast food is a treat that many people, healthcare workers included, can’t easily fit into their budgets these days due to inflation. Healthcare professionals can apply for a Burrito Care Package and treat not just themselves, but their colleagues, to a free meal. That’s one less meal that will need to go on their credit card tabs.

If you’re hoping to get your hands on some free Chipotle, you should know that this current promotion is only available to workers in the healthcare industry. However, you can still sign up for Chipotle rewards and earn free food that way.

The rewards program gives you 10 points for every $1 spent at Chipotle, plus a free side when you sign up and access to special offers, including a treat on your birthday. You can redeem your points for free menu items, though you should know that those points expire after six months of no purchase or redemption activity.

Finally, you should know that Chipotle is a firm believer in supporting local communities. You can apply here to request a donation for your school, community group, or other nonprofit organization.

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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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