Money Management

Don’t miss out on these Costco perks! 

With over 119 million members in the United States alone, it is no surprise that Costco is one of the most popular retail stores out there. But did you know that a membership at this warehouse retailer can provide you with more than just discounted bulk items? From travel discounts to exclusive deals, here are some perks of a Costco membership that you might not have been aware of.

1. Free tech support

If you are tech-savvy but still need some technical help every now and then, then a Costco membership may be for you. Members receive free technical support via phone or online chat for any electronics purchased through Costco. There is no need to sign up for Costco Concierge — it is just an added benefit of your Costco membership. WIth one simple call, you can speak with expert level technicians and get troubleshooting assistance. You can receive free technical support for these electronics:

TelevisionsProjectorsDesktopsComputer monitorsLaptopsAll-in-onesMajor appliancesTouch tabletsCamerasCamcordersHome theater systemsDVD playersPrintersSecurity camera system

2. Free extended warranty

Costco’s free warranty extension is another incredible perk for any member. Through Costco Concierge Services — applicable items are automatically enrolled in an extended warranty up to two years from the date of warehouse purchase or date of delivery if the item was purchased online. Costco extends the manufacturer’s warranty for a second year at no additional charge on the following devices:

TelevisionsProjectorsComputersMajor appliances

3. Travel services

Costco members have access to discounted travel packages. Not only does Costco offer flight deals, but it also has car rentals and vacation packages. Costco will even help out with hotels and cruises. Plus, if your plans change after booking a trip, they’re flexible and willing to work with members to make adjustments as needed.

4. Grocery delivery

Costco offers free same-day local delivery service available at almost all of its locations across the nation. With Costco’s Same-Day Delivery, members can have access to perishable groceries, including organic meats, produce, and seafood at the click of a button. Costco uses Instacart for the same-day delivery, a national delivery service. The minimum order for delivery is $35. For members that don’t need same-day delivery, Costco offers two-day delivery for household items such as cleaning supplies, organic non-perishables, coffee, bath tissue, laundry detergent, snacks, and more. There’s no separate delivery fee for orders of $75 or more.

5. Insurance

Costco doesn’t just offer bulk products. It offers a wide range of services as well. Costco offers auto, home and condo, renters, umbrella, specialty, and business insurance through CONNECT, which is backed by American Family Insurance. Costco Executive Members receive exclusive benefits such as:

Roadside assistance that covers up to $75 per occurrence for your car.Lifetime renewability for your auto insurance policy as long as you are a Costco Executive Member.Reimbursement for glass repair on your home up to $1,000 toward the cost of the replacement or repair to the window.Home lockout assistance where you receive 24/7 service if you get locked out of your home up to $100 per occurrence, limited to two claims every 12 months.

Costco also offers additional benefits such as identity theft protection, refrigerated property coverage, equipment breakdown, and more. Depending on where you live, you can choose your own licensed repair facility if your car needs to be fixed. Costco also offers business health insurance, term life insurance, and pet insurance.

6. Pharmacy

Costco offers a wide range of generic and brand-name drugs at discounted rates, making it an attractive option for those looking to save money on their prescriptions. Shoppers don’t need to be a Costco member to enjoy the perks of Costco’s pharmacy. Members can save even more by joining the Costco Member Prescription Program, a prescription drug discount card program. To take advantage of the larger discounts you have to be a Costco member.

7. Discounted gift cards

Costco gift cards are a great way to save money when shopping. Costco offers discounts on cards for a variety of restaurants, movie theaters, and more. Here are some of the deals that Costco offers.

$79.99 — Domino’s Four $25 e-gift Cards$79.99 — Panda Express Two $50 e-gift Cards$39.99 — Cinemark $50 e-gift Card

Costco is well known for its vast selection and everyday low prices but there are so many additional benefits to membership that go beyond what meets the eye — from travel services to free delivery and free tech support. Whether you’re already a loyal shopper or just considering joining this big-box retailer club, be sure to take advantage of all these extra perks available with your membership!

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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 positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

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It’s good news, but only to a point. 

If you or someone you know has struggled to buy a home over the past year or so, you’re definitely not alone. Home prices have been elevated for quite some time on a national scale, and that alone has been putting a strain on buyers.

Meanwhile, over the past year, mortgage rates have risen sharply. And the combination of higher borrowing costs and expensive home prices has forced many buyers to sit out the market until conditions improve.

Now, the good news is that home price gains have been slowing in recent months. In January, home price gains came to 3.8% on an annual basis, as per the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index. Compared to December’s 5.6% gain, that’s an improvement — for buyers, at least.

But a cooldown in home price gains isn’t necessarily something for buyers to celebrate. That’s because many buyers will still inevitably experience affordability challenges in today’s housing market.

Slower gains doesn’t mean homes have gotten cheap

It may be that sellers are no longer able to command the same premiums for their homes they could’ve fetched a year ago. But it’s important to understand that a 3.8% home price gain is still a gain nonetheless. And while 3.8% is not a staggering number in its own right, given where mortgage rates are at today, it’s easy to see why a lot of people are apt to continue to struggle to afford a home purchase.

On the bright side, higher mortgage rates have cooled buyer demand and led to fewer bidding wars, which have the potential to drive home prices way up. Sellers may still be getting multiple offers on their homes, but to a lesser degree than they were in 2021 or early 2022. And sellers may be more open to making concessions these days than a year ago, such as making repairs or offering discounts in lieu of requested repairs.

But still, today’s housing market is by no means buyer-friendly, especially in areas of the country where inventory is notably sluggish. And until real estate inventory picks up on a national scale, we’re likely to see a lot of would-be buyers stuck in a holding pattern.

Can you afford to buy a home today?

As a general rule, your monthly housing costs, including your mortgage payments, property taxes, homeowners insurance premiums, and HOA dues, if applicable, should not exceed 30% of your take-home pay. If you can find a home that allows you to stick to that limit, then you may be in a good position to purchase a home this year. If not, waiting longer may be inevitable — and it might spare you a world of financial regret.

READ MORE: 10 Expenses of Home Ownership You Need to Know

The good news is that home prices will likely continue to cool this year. If mortgage rates drop modestly as that happens, more buyers may have a chance at becoming homeowners. But we don’t know which direction mortgage rates will go. And that, ultimately, is one of the biggest wild cards buyers will have to grapple with in 2023.

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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.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Fetch. The Motley Fool has a disclosure policy.

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It’s possible to prioritize fitness goals without going broke. 

Regular exercise can improve mood, reduce stress, and strengthen your body. While there are many costly fitness and health programs available, you don’t have to spend a lot of money if you want to prioritize your fitness goals. Many low-cost and free resources are available to help you succeed as you navigate your personal fitness journey.

1. Book free and low-cost classes

If you’re on a limited budget and want to stay active, look for free or low-cost classes in your community. Some fitness instructors offer “pay what you can” classes to encourage more community members to work out regardless of their financial situation. Don’t miss out on opportunities like this.

2. Buy used fitness equipment

Some people like to work out at home so they don’t have to commit to an expensive monthly gym membership. Fitness equipment doesn’t have to cost a fortune. If you want to create a gym space at home, consider buying second-hand fitness equipment. Facebook Marketplace, Craigslist, and local community groups are great places to find used fitness gear for sale.

3. Step outside for a free workout

When the weather cooperates, take your fitness routine outdoors. You can walk, jog, run, or hike outdoors for free. While this may not be an option during the colder winter months or on rainy days, it could help you save money when the weather is nice.

4. Review your health insurance and employee benefits

Your health insurance could unlock fitness discounts. If you have health insurance, be sure to review your benefits before investing in fitness expenses. Some insurers offer discounted gym memberships or discounts on fitness equipment and fitness trackers. You may also want to review your employee benefits occasionally to avoid missing out on valuable perks. Some companies provide health and wellness perks that could help you waste less money.

5. Join a community center gym for a low-cost membership

Many towns and cities provide affordable fitness solutions to the community. If you want to join a gym or participate in group fitness classes without draining your checking account, check to see if any community centers in your area offer cheap fitness memberships. Often, community-focused fitness programs are cheaper than other health and fitness businesses.

6. Test out workout classes before joining

A monthly fitness class program or gym membership can be pricey. But the good news is that many businesses offer discounts to new customers so they can test out classes and equipment before committing to an expensive plan. As a new customer, you may be able to take advantage of a free trial or low-cost pass or may be able to accompany another member for free. Trials can help you decide if a membership is worth the cost before investing.

7. Find free online fitness resources

No matter your specific goals, many free resources are available online. Whether you’re looking for a fitness plan, a nutrition guide, or a workout video — you can probably find resources online for free. Free resources like this can help you spend less money.

Don’t give up on your goals

Even if money is tight, it’s possible to prioritize your fitness and personal finance goals at the same time. Look for ways to save and take advantage of freebies, so you don’t overspend. You may be surprised at how many affordable health and wellness resources are available.

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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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It might seem like a good idea, but you might end up selling yourself short. 

In 2022, many investors saw their brokerage account balances take a massive dive as stock values tumbled. But the good news is that the stock market has a tendency to rally following a decline. Those rallies are known as bull markets, and they’re typically defined as periods when stock values rise 20% or more from a recent low.

Since 1928, there have been 27 bull markets, according to Hartford Funds. And some financial experts think we’re due for a bull market in 2023.

The question is: Should you sell your stocks once the market picks up? Or should you hang onto them and be patient?

Waiting to sell could pay off

It’s easy to see why you may be tempted to sell stocks once their value starts to increase. After all, who wouldn’t want to score a nice profit and walk away with it?

But one thing you should realize is that if you sell your stocks the moment the market rallies, you might limit your gains. If you hold onto your stocks for many years, you might make a lot more money.

Let’s assume you bought $1,000 worth of stocks in 2021, and now, those shares are only worth $900. If the market rallies later this year, those same stocks might end up being worth $1,200. At that point, if you were to sell, you’d end up with a $200 profit. And that seems like a really good deal.

But what you may not realize is that if you were to hold onto those stocks for another 10 years, they might end up being worth $3,000. So in that case, you’d be looking at a $2,000 profit, which is 10 times the $200 profit you’d get by selling immediately.

That’s why a stock market rally shouldn’t necessarily prompt you to sell. Often, holding your stocks for a very long period of time is the true ticket to making a lot of money in the market.

There are tax implications to consider, too

Another reason not to rush to sell your stocks the moment their value picks up? You might end up owing the IRS a lot of money in taxes.

When you sell stocks (or pretty much any investment) at a profit, you’re liable for capital gains taxes. But the length of time you hold your stocks will dictate what your tax burden looks like.

Short-term gains are taxed the same way as ordinary income, whereas long-term gains are taxed at a lower, more favorable rate. You’ll be liable for short-term gains if you sell stocks before holding them for at least a year and a day. So, if you bought stocks last May and the stock market rallies in April, selling at that point could mean subjecting yourself to higher taxes — and losing a chunk of your profit to the IRS.

It’s natural to be tempted to sell your stocks when the market is on an upswing. But generally speaking, you’re better off being patient and holding your stocks for the long haul.

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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.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.

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Get ready to get motivated to save more for your future. 

When you’re deep in the throes of life and bills and your career, retirement might be the last thing on your mind. And that’s understandable. It’s also easy to see how retirement savings might fall by the wayside when you’re busy juggling expenses like your mortgage loan, car payments, and basics like food, the cost of which has gone up exponentially over the past year. But it’s actually really important that you save for retirement steadily and consistently through the years.

If you’ve gotten off course in that regard, here’s a wake-up call that might motivate you to refocus on building a retirement nest egg.

You don’t want to face a financial shortfall

Seniors commonly need 70% to 80% of their former income to live comfortably in retirement. These percentages might seem high, but when you think about it, a lot of the expenses you face during your working years are going to be present during retirement.

Granted, your home might be paid off, and you may not have a job to commute to. But otherwise, most of the bills you find yourself paying as a worker are apt to stick around once your career wraps up.

You’ll still have to keep the lights on, put food on the table, and have some means of transportation. And even if you own your home outright in retirement, you’ll have to continue covering the cost of property taxes, homeowners insurance, maintenance, and repairs (the cost of which might increase as your home ages).

As such, that 70% to 80% estimate may be more accurate than you may have initially thought it to be. And if you think Social Security will get you the point of being able to replace 70% to 80% of your former income, think again.

Many workers are shocked to learn that the average Social Security beneficiary today collects just $1,827 a month. That’s roughly $22,000 a year, which is probably not 70% to 80% of your annual salary.

If you want to be able to get anywhere close to the 70% to 80% mark, you’ll need to build independent savings. And knowing how little Social Security pays might motivate you to get back on track and start focusing more on contributions to your IRA account or 401(k) plan.

Make long-term savings a priority

When you’re managing a host of bills, it’s easy to grow lax with regard to funding your IRA or 401(k). But if you don’t save steadily in one of these plans or a similar one, you might end up seriously short on retirement income.

That’s why it’s a good idea to put the process of saving for retirement on autopilot. The good news is that 401(k) plans effectively force you to do this, since contributions are deducted from your earnings off the bat. But you can create a similar setup by finding an IRA with an automatic savings feature and then arranging for contributions to happen seamlessly so you don’t have to think about them or actively move money over yourself.

When you’re years away from retirement, saving for it may not be a priority — but it should be. And if you want to set yourself up with enough income to enjoy your senior years to the fullest, then it’s imperative that you find a way to continuously pump money into a long-term savings plan.

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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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It’s a tough call to make. 

As an investor, there are different ways you can make money by buying and holding stocks. One option is to hang onto your stocks until their share price appreciates in value, and then sell your shares at a price that’s higher than what you initially paid. Another option is to sit back and collect dividends from the stocks you own.

When a company pays dividends to investors, it’s basically sharing a piece of its profits. Not every stock pays dividends, as some companies prefer to reinvest that money into their respective businesses. But if you own dividend stocks, you have options when it comes to those dividend payments. You could either reinvest them, or you can cash them out.

Reinvesting your dividends gives you a prime opportunity to grow your brokerage account balance nicely. But if money has gotten tight, cashing out your dividends might be the better move — or at least a necessary one.

A better alternative to credit card debt

In February, inflation was up 6% on a national level. And higher living costs have been putting a big strain on a lot of people.

If you’re having a difficult time paying your bills due to inflation or another factor (such as having your working hours cut), then it could make sense to withdraw your dividend payments and use that money to cover expenses. While you’ll lose out on the chance to reinvest that money, you might save yourself even more money if you’re able to avoid racking up and carrying balances on your credit cards.

But if you don’t need the money, then reinvesting your dividends is a smart move, because it’s extra money you can put to work. Plus, many brokerage accounts let you set up dividend reinvestments automatically so you don’t even have to think about it. Often, the way these work is that your dividends will be used to buy more shares (or fractional shares) of the companies that are paying them.

Will you be taxed on your dividends if you cash them out?

Dividend income is subject to taxes regardless of what you do with it. If you decide to reinvest your dividends, you’ll be liable for taxes just as you will be if you cash them out.

To put it another way, you don’t have to worry that cashing out your dividends will create a separate or additional tax liability. Rather, once those dividends land in your brokerage account, they’re considered taxable income no matter what.

You can think about it the same way you would for your regular paycheck. You’re going to be taxed on that money no matter how you spend it. Contributing some of your income to a traditional IRA or 401(k) will exempt a portion of your income from taxes, but otherwise, the IRS wants its share, regardless of whether you spend your paycheck on rent, food, or shares of stock in a brokerage account.

Dividends work the same way. And knowing that might help you feel better about withdrawing that money to pay bills, if that’s the route you decide to take.

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