Money Management

Put these on your shopping list and scoop them up before they’re gone. 

There’s a reason Trader Joe’s is such a foodie favorite. The grocery chain is constantly evolving its lineup of products to keep things interesting.

Of course, that’s a good thing and a bad thing. On a positive note, shopping at Trader Joe’s is like an adventure, because you never know what new products you’ll come across. On the other hand, you run the risk of falling in love with a product only to see it disappear off the shelves after just a handful of weeks.

With that in mind, here are a few amazing items Trader Joe’s is offering right now. If any of them appeal to you, carve out some time to run over to your nearest Trader Joe’s — before they’re gone.

1. Thai Wheat Noodles

When you need to whip up a meal in a pinch, noodles make a great base. Trader Joe’s is selling a 21-ounce box of Thai Wheat Noodles for $2.99. You can put them into a soup or stir fry some vegetables for a quick and easy entree.

2. Hot Cocoa Inspired Cream Cheese Spread

Wintertime is the prime hot cocoa season. But now, you can eat your hot cocoa as well as drink it thanks to this Trader Joe’s creation. Think of it as a cream cheese spread that tastes more like chocolate cheesecake. You can put it on toast to get your picky eater kids to finish their breakfast, or hoard it for yourself and indulge once they’ve left for school in the morning — no judgment. An 8-ounce tub will cost you just $2.79.

3. Unexpected Cheddar Cheese Spread

While we’re on the topic of unique Trader Joe’s spreads, you may want to add this cheddar spread to your shopping list. Put it on toast, sliced apples, or crackers for a tasty snack. Or heck, eat it right out of the tub — we won’t tell. You can snag a 9-ounce container for just $4.99.

4. Dark Chocolate Caramel Hearts

Looking for an inexpensive treat to give your kids or friends on Valentine’s Day? Then grab a few packets of these delicious caramels smothered in delectable dark chocolate. At just $1.99 per 2.5-ounce bag, you’re apt to rack up a much lower credit card tab than you would at the fancy chocolate shop in town.

5. Cinnamon Bun Inspired Joe-Joe’s Sandwich Creme Cookies

If you’ve never had a Joe-Joe’s cookie, it’s basically an Oreo with the Trader Joe’s label on it. But that’s not a bad thing. And just as Oreo tends to introduce new, seasonal flavors, so too does Trader Joe’s tend to mix things up for its iconic cookie. This month, it’s featuring a cinnamon bun cookie that smells and tastes like the real thing, only without the mess. You can grab a 10.5-ounce box for $3.49.

6. Cheddar Jalapeño Pull Apart Bread

Whether you’re hosting a party for the Big Game or you’re simply looking to add an interesting bite to your usual repertoire, you may want to pick up a bag — or five — of this amazing pull apart bread. Imagine a fluffy, airy dough with cheddar cheese and jalapeño baked in for an added kick. You can eat these beauties right out of the bag, or pop them into your toaster oven to enjoy them warm. Trader Joe’s is selling this mind-blowing concoction for just $4.99 per 12-ounce package.

There really is something for everyone at Trader Joe’s, so if you haven’t shopped there in quite some time, it’s worth popping in during February. And also, assume that you’re going to go off-list with at least a few of your purchases, and account for that in your budget. After all, when you’re looking at delicious products like these that may not be around too long, it’s hard to say no — especially when the prices at hand won’t break the bank.

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 expert loves 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 expert even uses 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 

Yes, you can save money on your auto loan. 

For many Americans, car payments are a fact of life. The average cost of a new car is close to $50,000, a record high. Combined with higher interest rates, monthly car loan payments for U.S. drivers are now more than $1,000 per month. With loan payments also reaching all-time highs, it can be easy to get in over your head and be stuck in an endless cycle of debt. Here’s how to stay ahead of your car loan payment and save money on it every month.

Understand your financing options before you buy

Before you sign on the dotted line, it pays to shop around for the best car financing options available for your car purchase. Take a few moments to understand the different types of loans and their associated terms before deciding which is best for you. Consider factors such as interest rate, loan term, and other fees that could add up over time.

Before you step on a car lot, make sure you get pre-qualified. Loans from banks or credit unions are typically cheaper than loans from a dealer. Knowing what type of loan works best for you can help you save hundreds or even thousands of dollars over the life of your loan. If you are buying an electric car, do your research to find EV tax credits and other possible benefits.

Keep your car longer to avoid buying right now

One of the biggest reasons car prices have skyrocketed the past few years is due to supply chain issues, a shortage of microchips, and pent-up demand. In addition, in the wake of the Federal Reserve’s rate hikes (which indirectly impact consumer borrowing rates), the average auto loan rate increased by 2.8 percentage points to 10.6%. This increase means car buyers are paying 8% more on a new car’s payments due to the interest hike alone. Based on your personal finances and your needs, it may be best to wait to purchase a vehicle until next year. Interest rates should eventually go back down and supply chain issues should stabilize, lowering the price of cars.

Refinance your loan

Interest rates are much higher than they were a year ago. If you are currently stuck with a high interest rate loan, shop around to see if you can refinance and get a loan with lower interest. It may take some time before rates come down, so it is important to constantly research. In addition, if your high interest rate is due to a low credit score, take steps to improve it as well as your overall financial situation.

Refinancing can help lower your interest rate, potentially saving you money on interest charges in the long run. Just make sure you do all the necessary research — including understanding any additional costs that may be associated with refinancing — before making any decisions about refinancing your loan.

Make lump-sum payments when possible

Making lump-sum payments whenever you can is one way to pay off your car loan faster and save money in interest charges over time. If there’s ever extra cash available in your budget (such as from a tax return or bonus at work), it can be helpful to make a lump-sum payment toward the principal balance instead of simply adding it onto regular monthly payments (which would mostly go toward interest). This allows you to pay down principal faster and get out of debt sooner than anticipated.

Trade in your car

Consider selling or trading in your car for a lower-priced car. One silver lining is that you may be able to get a higher price if you sell or trade in your used vehicle now. This can help offset the cost of a new car. You will typically get a higher price when you sell it to a private buyer, but it may be easier to trade in your car to a dealer. Do your research to find the best price for your car.

Expand your search parameters

Look at expanding your search parameters. You may have to compromise on your wishlist until the car you want becomes more affordable. You can expand the geographic area you’re searching in, look for a smaller and older car, or target a car with fewer features. You may be able to find a car that meets your needs at a lower price.

Do you really need a car?

Ask yourself if you really need a car. If your family has two cars, can you downgrade to one? Can you take public transportation, carpool, or bike to work? Look at alternative transportation options so you can avoid a car payment altogether. Selling your car can save you money on gas, insurance, maintenance, and other costs, such as annual registration fees.

Keeping up with high car payments every month can be difficult, especially when combined with other expenses like rent and utilities. But by understanding your financing options before buying a vehicle and taking advantage of opportunities like refinancing or making lump-sum payments when possible, you can take control of your debt and save money every month on your car payment.

And remember, this is just the cost of the loan. There are other costs associated with owning a car, like auto insurance, gas, and maintenance. When you’re considering whether to buy a car, be sure to take all these costs into account so you can make an informed decision. With some smart planning and careful budgeting, staying ahead of car payments doesn’t have to feel overwhelming or impossible.

Our picks for the best personal loans

Our team of independent experts pored over the fine print to find the select personal loans that offer competitive rates and low fees. Get started by reviewing our picks for the best personal loans.

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 

Maximizing early contributions is vital when saving for retirement. 

With over 90 new provisions, the SECURE Act 2.0, passed in December 2022, has something for nearly everyone. For those just beginning to save, new federal policies may help boost retirement accounts and loosen eligibility requirements for younger workers.

The Saver’s Match

Introduced in 2002, the Saver’s Credit offers a retirement saving incentive that’s hard to pass up. Taxpayers who contribute to a 401(k) or IRA could net up to a $2,000 tax credit. But here’s the catch: joint filers have to earn below $43,500 to get the full credit in 2023. Many workers earn above that amount, and are therefore ineligible for the full credit. However, a young employee at the bottom of the payscale or an employee who only worked part of the year may be primed to take advantage of this program.

The SECURE Act 2.0 made a major change to the program by replacing the tax credit benefit with a matching contribution to your retirement plan from the federal government. This is a key change, as it will allow qualified workers to boost their retirement accounts as a reward for diligent saving, starting in 2027. Properly invested, a $2,000 bonus today could grow to tens of thousands of dollars by retirement.

Top heavy testing

Behind your 401(k) are a lot of rules to protect you, the employee. One rule dictates that certain 401(k) plans cannot disproportionately benefit owners and highly-paid employees. If over 60% of the plan’s assets are owned by these employees, the plan is considered to be top heavy. And having a top heavy plan can be expensive, as your employer may have to make additional contributions to all employee accounts.

The SECURE Act 2.0 changed testing requirements in order to incentivize employers to open their 401(k) plans to otherwise excludable employees, such as those under age 21 or with less than one year of full-time service. The intention of this new law is to encourage plan sponsors to open their plans to younger employees and get employees saving early.

Many of the provisions in the SECURE Act 2.0 targeted those in or near retirement, but there are some points that young savers should pay attention to. First, the Saver’s Match offers free money to qualified workers in the form of an additional retirement account contribution. Second, a change to the rules around 401(k)s may encourage your employer to let you into the plan early. The keys to building wealth are to save early and save often, and this new legislation will help with the former.

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 

Don’t stick with the status quo on car insurance. 

Drivers who haven’t compared car insurance costs yet this year should do so now. The start of a new year is a good time to take a look at current bills and try to find ways to bring costs down.

Shopping around for car insurance is a great way to do that for a few key reasons. Here are three big reasons why shopping for car insurance coverage at the start of a new year is a good idea for every motorist.

1. New car insurance options may be available

The car insurance market is not stagnant. New insurers come on the market, and existing insurers may start to offer different products.

Shopping around is important to see what’s out there because there may be a new company or type of coverage that is a better fit. Unless drivers shop around and find out what car insurance options are available to them, they may never know that they are lacking an important type of coverage or that another insurer would be a better fit for their needs.

2. Circumstance changes may mean a different insurer is cheaper

Drivers who have shopped around before buying coverage initially may feel confident they have the cheapest insurer for their situation. But situations change. Marriage, divorce, kids getting older, a job change, or simple aging can change a policyholder’s risk profile.

As these life changes happen, it becomes possible that a different auto insurance company may offer more affordable coverage to a particular driver. This is true even if that motorist has had the same insurance for many years.

Since drivers price risk differently and take into account lots of lifestyle factors, it’s worth checking out different price quotes each year. That way, each driver can make sure the coverage they currently have is the best price for the best coverage based on their current situation.

3. Auto insurers tend to penalize people who don’t shop around

Many drivers assume their insurer will reward loyalty. But that’s not necessarily the case. In fact, the opposite could actually be true. Some insurers use a strategy called price optimization. This strategy takes factors other than accident risk into account. And one of those factors is whether the insurer believes the policyholder is likely to shop around for other coverage options.

That’s right — if an insurer doesn’t think a policyholder will compare options, it will actually charge them a higher premium. This is reason enough to take a few minutes and check out what other kinds of coverage are out there.

The bottom line is, it’s really simple and easy to compare car insurance prices online and to make a switch if a different insurer is cheaper. The beginning of a new year is a perfect time to do that, because then drivers can remember to go through this process every year.

So, any driver who hasn’t yet shopped for coverage in 2023 should do that now and then make it a habit to check out options at the start of every year.

Our best car insurance companies for 2022

Ready to shop for car insurance? Whether you’re focused on price, claims handling, or customer service, we’ve researched insurers nationwide to provide our best-in-class picks for car insurance coverage. Read our free expert review today to get started.

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 

When it rains, it pours. 

The market rises, and the market falls. Most experienced investors have learned that there’s a rhythm to the stock market. Falling apart every time stocks take a tumble is not constructive.

Still, the most recent drop feels different, bigger somehow. Although the evidence tells another story entirely, it’s easy to buy into the notion that what we’re currently experiencing is the most dramatic loss in portfolio value ever.

There may be a few reasons so many people have declared that the sky is falling.

Primed to take more bad news hard

There’s been nothing typical about the past three years. It was three years ago that we learned of COVID-19, the first pandemic in most of our lives. And then a recession hit. While that recession did not last long, it did more than its fair share of damage.

There was a global supply chain crisis and surge in inflation. During that time, Russia invaded Ukraine and the stock market shuddered, then began to decline. By the time 2023 rolled around, the S&P 500 Index and Nasdaq Composite had both dropped dramatically.

Those who could, sheltered in place, worked from home, and took on the task of educating their children. Soon, cracks in our emotional armor began to emerge.

According to Time, the number of Americans who sought treatment for mental health disorders rose from 19.2% in 2019 to 21.6% in 2021. The National Library of Medicine reports an increase in the number of people who began taking antidepressants during this time. And the World Health Organization (WHO) says that COVID-19 “sparked or amplified much more serious mental health problems.”

In short, we experienced a global trauma together. Perhaps it’s natural that the straw that broke the camel’s back was learning that the average 401(k) balance had plunged by 23%.

Month after month we had endured a difficult situation, and by the time it became clear how much less our portfolios were worth, some people who regularly invest in the market took the news harder than is warranted.

We can’t get away

There was a time when we could escape whatever was going on outside the four walls of home. Today, we are battered with news, rumors, opinion, and conspiracy. It’s all over social media, on television, radio, podcasts, and real life. The constant drumming of doom and gloom makes it difficult to get away and to see things from a different vantage point.

Reality gets buried

There’s a difference between being a Pollyanna and being someone who gathers enough information to make a rational decision. And here’s the reality, according to comprehensive research conducted by Hartford Funds:

To be called a “bear market,” the S&P 500 Index must drop by 20% or more. By the end of 2022, the S&P 500 Index had dropped by 19.4%.If a person spends 50 years of their lives investing, they can expect to live through 14 bear markets.Between 1929 and 2021, there were 26 bear markets and 27 bull markets.On average, stocks lose 36% of their value during a bear market. But on average, stocks gain 114% during a bull market.The average bear market lasts 289 days, while the average bull market lasts 991 days.

Emotion skews our perception

A report in Swiss Medical Weekly says that emotion determines how we perceive the world and how we make important decisions. Given the constant bombardment of bad news over the past few years, it comes as no surprise that emotions are frayed, or that it’s become more difficult to look past scary financial news to find a silver lining.

Throughout the history of the stock market, three things have always been true:

Every bear market has been temporary.Staying invested while stock values are low is a smart investment strategy for buy-and-hold investors.Every bear market is followed by a bull market.

Even if shrinking portfolio values feel worse today than they have in the past, it may just be a matter of perception.

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.Dana George 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 

Don’t make a mistake in setting your financial priorities. 

If you owe money on your credit cards or have an outstanding balance on your mortgage or on a personal loan, you may be focused on paying down your debt. This could seem like a more important financial goal than funneling money into your brokerage account in order to invest.

There are, indeed, some kinds of loans you should prioritize paying off. If you have payday loan debt, for example, the exorbitant interest rate you’re likely being charged means you should focus absolutely on paying those loans off right away.

But, in many situations, it doesn’t make sense to put off investing until your loans are paid off for good — especially if you’re dealing with something like a mortgage or personal loan. Here are three reasons why.

1. You could miss out on free money if you don’t invest

In some circumstances, you can actually get free money to invest. For example, if your employer offers a 401(k) and you qualify for employer matching funds, you could earn up to a 100% return on your investment if your employer offers dollar-for-dollar matching.

You could also be eligible for government tax credits or deductions, such as the Saver’s Credit or a deduction for IRA or 401(k) contributions. These government subsidies also enable you to invest without reducing your take-home income by the full amount you’re setting aside.

If you don’t take advantage of your employer match or the tax credits or deductions each year, you pass up that chance forever. It could take you years to pay down your loan, leaving you without this free money during all those years. This is a huge mistake.

2. You will miss out on compound growth if you don’t invest

As soon as you start investing, you can start earning returns that can be reinvested. Your money starts making money for you when this happens. This compound growth can allow you to build your wealth much more easily and with less out-of-pocket spending — if you give it time to work.

If you put off investing as you try to pay down loans, you miss out on years of compound growth. You end up having to invest a whole lot more later on because of lost time. If you want to end up with an $800,000 nest egg and you earn 10% average returns, you’d need to save about $406 per month if you had 30 years to save. But if you had only 20 years, you’d need to save $1,163.97 per month.

It is not worth putting off investing if you end up having to invest so much more just to end up in the same place.

3. You could earn a higher ROI by investing than by early loan payoff

In many situations, the ROI you can earn with a reasonably safe investment is higher with investing than early debt payoff.

For example, if you have a personal loan at 6% interest and you can make an average 10% annual return by investing in an S&P 500 fund, you’re better off investing extra cash rather than using it to pay down your personal loan. Making an average of 10% a year is better than saving 6% per year on interest costs.

For each of these three reasons, you should seriously consider starting to invest ASAP rather than devoting all your money to paying off loan debt — unless you are paying a truly exorbitant interest rate. If this is the case, focus on getting that debt paid off quickly so you can start making your invested funds work for you sooner rather than later.

Our picks for the best personal loans

Our team of independent experts pored over the fine print to find the select personal loans that offer competitive rates and low fees. Get started by reviewing our picks for the best personal loans.

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.Christy Bieber 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