Money Management

You may want to put these on your list. 

Though it might seem like only yesterday that we were welcoming in 2023 and gearing up to start tackling different New Year’s resolutions, before we know it, Valentine’s Day will be upon us. And whether you think it’s cheesy or not, the reality is that if you’re part of a couple, you may feel compelled to shower that special someone in your life with a gift they’ll enjoy.

The problem, though, is that Valentine’s Day gifts can be expensive. Even a modest box of chocolates from a local specialty store could add to your credit card bill for the month in an uncomfortable way.

The good news, though, is that Costco’s shelves are loaded right now with seasonal items that are ideal for Valentine’s Day. Here are a few sweet gifts you can purchase that won’t break the bank.

1. Godiva Masterpieces dark chocolate hearts

Nothing says “I love you” like chocolate. But let’s face it — you probably can’t get away with handing your partner a king-sized Hershey’s bar and calling it a day. For Valentine’s Day, you may want to step it up a notch and go with Godiva. You can purchase an almost one-pound bag of dark chocolate hearts at Costco right now.

2. Lindt Truffles

Maybe your special someone is a fan of variety when it comes to sweets. Enter this Lindt variety pack of truffles. You’ll enjoy over a pound of quality chocolate at a reasonable price point.

3. Tru Fru dark chocolate strawberries

There’s nothing like chocolate-covered strawberries to wow your partner on Valentine’s Day. Costco is selling a 16-ounce bag that will spare you the trouble of having to make these yourself.

4. Tipiak heart-shaped French macarons

If your partner is a fan of fancy cookies (and who isn’t?), then this collection of heart-shaped macarons should make a great gift. It’s a nice departure from straight-up chocolate, and it’s a great way to show you’re creative and economical at the same time. These macarons are available in a 10.6-ounce box right now, with 20 cookies in total.

5. Junior’s red velvet cheesecake

Okay, so this is probably more like a gift for two — one your partner will hopefully share with you in the span of multiple days. But if you like red velvet cake, and you like cheesecake, then scooping up this masterpiece by Junior’s is pretty much a no-brainer. You’ll get a three-pound cheesecake at what could be around one-quarter of the price you’ll pay by ordering this item through Junior’s directly.

Don’t wait to stock up for Valentine’s Day

Chances are, you’re not the only person who’s panicking over what to get a loved one for Valentine’s Day. So if you’re willing to give the gift of something sweet, head on over to your local Costco now and scoop up one of these items, or a similar one, before they fly off the shelves.

And even if you don’t believe in celebrating Valentine’s Day, there’s nothing wrong with treating yourself to something sweet. And if you can do it at a lower price point, hey, more power to you.

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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 Costco Wholesale. The Motley Fool has a disclosure policy.

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You could end up paying a lot of money over time. 

When you sign a mortgage loan, you have to do more than just come up with a down payment on your home. You also have to figure out how you’ll pay your closing costs.

Closing costs are the various fees borrowers have to pay to finalize a mortgage. These can vary quite a bit by lender, but usually, you’re looking at an amount equal to anywhere from 2% to 5% of the sum you’re borrowing. So if you’re taking out a $300,000 mortgage, you should expect your closing costs to total $6,000 on the lower end and $15,000 on the high end.

Sometimes, lenders will offer the option to not pay closing costs at all. But in that case, you’ll typically pay in the form of a higher interest rate on your mortgage.

Because closing costs can be so expensive, lenders typically allow borrowers to roll those fees into their mortgages and pay them off over time. So let’s say you’re looking at $6,000 in closing costs. You may not want to shell out that much money when you finalize your mortgage — not if you’re also making a $60,000 down payment on a home and are spending another $10,000 on moving costs and initial repairs.

In that case, you might choose to roll your $6,000 in closing costs into your mortgage. That would allow you to pay off that total over time, the same way you’re paying off your home over time.

At first, that might seem like a good idea. And often, it is. But here’s why you may not want to roll closing costs into a mortgage today.

Higher borrowing rates can make your closing costs more expensive

If you’re signing a mortgage today, you’re probably aware that borrowing rates are a lot higher than they were a year ago. In fact, if you’re getting a mortgage this January, you could end up paying twice the mortgage rate you would’ve paid in January of 2022.

The higher interest rate you’re paying on your mortgage will apply to your closing costs if you choose to roll those fees into your home loan. So if you have the money on hand to pay your closing costs upfront, it could make sense to do so. That way, your $6,000 in closing costs won’t cost you more than $6,000.

Now if paying your closing costs upfront is a stretch — one that will leave you with very little money left over for emergency expenses — then rolling them into your mortgage could be a better bet. But otherwise, due to the high cost of borrowing today, paying those fees upfront might make more sense.

There may be ways to lower your closing costs

Some of the fees your lender wants to charge in closing costs may not be negotiable, such as recording fees and prepaid property taxes. But you may be able to ask the lender to lower some of those fees. Lenders commonly charge application fees, for example. If a given lender wants your business, you can try negotiating that fee downward.

It’s also a good idea to compare the closing costs different lenders charge, just as you should always shop around for mortgage rates. Doing some research might leave you with lower fees to pay.

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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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How much would a reasonable diet cost a family of four? 

Groceries are a necessity of life and something everyone has to buy. But, just how much would individuals and families spend on their credit cards or out of their bank accounts to eat a balanced diet? The answer may surprise you.

Here’s what a balanced diet would cost the typical American family

The U.S. Department of Agriculture has created a plan called the Thrifty Food Plan, which “represents a nutritious, practical, cost-effective diet.” The USDA explains that this typical plan follows dietary guidelines for Americans and assumes that all meals and snacks are cooked at home rather than out at restaurants.

To help families get an idea of their grocery budget, the USDA has provided a cost estimate for the Thrifty Food Plan. According to this estimate, a reference family of four (consisting of a heterosexual couple between the ages of 20 and 50 with two children between 6 and 8 and between 9 and 11) would spend around $223.30 per week and $967.70 per month in order to eat a balanced diet.

The USDA also provided some other cost estimates as well. For example, a typical female who is 71 or older and who follows the Thrifty Food Plan would incur monthly grocery costs of $245.70, while food for the typical 1-year-old child on this diet would come in at $108.40 per month.

How does your spending compare?

The USDA’s price estimates are based on its definition of a balanced diet, as well as estimations of prices throughout the United States.

Your own spending may differ dramatically from these estimates. Depending on your situation, including whether you tend to opt for more expensive organic items or whether you are a budget-conscious shopper who buys on sale, your own grocery spending may be much higher or lower than this amount.

If your spending is coming in at a much higher rate, though, it may be worth looking into cost-cutting measures — especially since the USDA has indicated you can eat healthy for around this price. You may want to think about:

Steering clear of prepared or packaged food items as the more prep-work that is done for you, the higher the cost.Shopping the sales flyers so you can buy items that are on sale each week and take advantage of grocery store bargains.Making a meal plan and shopping from a list to avoid impulse buys or wasted food that you don’t end up eating because you buy more than you need.Switching where you do your grocery shopping, perhaps by changing to a less-expensive grocery store chain or shopping at a big-box store such as Costco or Sam’s Club to score bulk bargains on groceries.Using coupons which can help you save on the cost of food and other grocery-store items such as aluminum foil or paper towels.

You never want to compromise health or safety when it comes to buying food items, but aiming to try to stick within the USDA’s guidelines for what a healthy balanced diet should cost can be a good goal if you want to keep your grocery spending in check.

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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.Christy Bieber 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.

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You could have tens of thousands of dollars or more sitting in a lost account. 

Leaving a job can be a stressful experience, whether it happens because of a layoff or a deliberate switch to a new role. In addition to the strain involved in job loss or starting a new position, there are a lot of things to keep track of. These include your health insurance, other work benefits, and retirement account.

We’re all human and it’s easy for things to slip between the cracks. Which goes some way to explain the $1.35 trillion sitting in forgotten 401(k)s — workplace retirement plans — as of May last year. According to research by Capitalize, there are over 24 million forgotten accounts, with 2.8 million more left behind every year. That’s a lot of money.

How 401(k)s get left behind

If your company has a 401(k), you can automatically contribute a portion of your paycheck, which is often matched by a contribution from your employer. That can make them an excellent way to save for your old age and, ultimately, build wealth. But there’s one big drawback: People change jobs.

When you move to a new job you have a few 401(k) options, depending on how much cash we’re talking about. You can leave the money where it is, roll it into your own individual retirement account (IRA), or move it to your new employer’s 401(k). You can also cash it out, but that can be a costly move. A lot of people opt to leave the money in their current employer’s plan, and sometimes then forget about it altogether.

In addition to getting lost, leaving your retirement savings with an old employer can get complicated over time. For example, the company may close or switch fund providers, and you wouldn’t know about it. If you’re not actively managing your retirement savings, the cash could wind up in an account that isn’t generating competitive returns, and/or one that charges high fees.

While there are no guarantees when investing in the stock market, a well-managed fund can generate returns that more than cover its fees. Plus, the combination of compound interest and time can make a significant difference. Let’s say you leave $5,000 in a retirement account and it averages annual returns of 8%, which is below the average from the S&P 500. In 20 years, that $5,000 could be worth over $20,000.

In contrast, a poorly allocated fund may stagnate, particularly if the fees are high. If that $5,000 were left in a fund generating returns of 3%, it would be worth around $9,000 in 20 years. It would be less if you take fees into account. When it comes to your retirement funds, it’s worth spending a little time to make sure your nest egg is in the right place.

How to track down your forgotten 401(k)

If you think you might have cash in a forgotten retirement account, there are steps you can take to find it. Your first stop might be to look through old emails and paperwork to find out if you’ve got any record of the contributions you made. If this doesn’t work, maybe reach out to your old employer and ask them to check if you participated in their 401(k) scheme and get details of the account.

It can be a valuable exercise. To give you an example, I participated in an employer retirement scheme in my 20s. I only held the job for a few years and have freelanced for much of the rest of my career. When I changed jobs, I switched the money, which was less than $5,000, to an IRA and left it there. The magic of compound interest means it’s worth over $30,000 today.

However, it isn’t always easy to track down your lost 401(k) money. If you’ve held several jobs, you may not remember which ones (if any) had 401(k) schemes, never mind the details. There are several different databases, including unclaimedretirementbenefits.com, missingmoney.com, and unclaimed.org. You may have to trawl through several before you find your money.

The good news is that more help is on the way. There’s been a lot of talk about the new Secure 2.0 legislation, which makes sweeping changes to several aspects of our retirement savings. One lesser-known provision is the commitment to set up a database of lost 401(k)s. Also known as the “Retirement Savings Lost and Found”, it’s slated to be finished at the end of next year. It will make it easy for anyone to track down their lost retirement money.

Bottom line

If you think you have money in a forgotten 401(k) account, don’t wait until the Lost and Found database is up and running to track down your lost funds. The sooner you find out where it is, the sooner you can make it a part of your broader retirement plan — and put it in an account where it has the best chance of performing well.

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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.Emma Newbery 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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It’s all about putting your home’s best foot forward. 

Home sellers enjoyed high demand and soaring prices for homes listed in 2020 and 2021, but now the tide has turned. Buyer demand has dropped off in the face of those too-high prices, and to make matters worse, rising mortgage rates over the course of 2022 mean that if someone wanted to buy your home today, they’d be looking at an average mortgage rate of about double what they would have paid a year ago.

Despite this hurdle, life waits for none of us, and it might be time for you to sell your home. If you want to lure in that perfect buyer who will fall in love with your home and offer you a good price for it, remember to stage it using the following tips.

1. It’s all about that curb appeal

While you will likely get a lot of potential buyers via the multiple listing service (MLS) page that your real estate agent creates for you, it pays to also target potential buyers who are driving or walking around your neighborhood, looking for those “For Sale” signs. To that end, you want to pay special attention to the outside of your home.

Spend some time cleaning up your yard. If you’re listing a home during the warmer months, you’ll have more opportunity to get your lawn and landscaping looking great. If your landscaping is a bit sparse, spend some money and time sourcing new plants and flowers. And consider using a power washer on the outside of your home as well as outside fixtures like plastic lawn furniture.

2. Welcome buyers with your front entrance

Your front entrance also contributes to your home’s curb appeal. Consider repainting your front door if it’s looking a bit dingy, and maybe add a decorative wreath. Potted plants and flowers can make your porch or front steps prettier, too.

3. Clean and clean some more

Now is the time to do a serious deep clean of your home. Pay attention to the small details that you might otherwise not bother with if you’re only cleaning for you. This means taking a look at your baseboards, the corners of your ceilings, and everything in between. Take extra care in your kitchen and bathrooms, as it’s a real turn-off for buyers when these spaces are dirty.

4. Bring in the light

Is your home well lit? This could be due to light fixture choices and placements or due to plenty of windows (ideally at least some of them facing south, to collect the most natural light possible in the Northern Hemisphere). If you’re staging to sell, it’s a great idea to emphasize these features. Clean your chandelier, wash those windows, and when setting up for an open house (or real estate photos), make sure you’re lighting the home well.

5. Think engaging — but impersonal

Finally, take this opportunity to get a jump start on your packing. Focus especially on those personal effects, like family photos on the walls, kids’ toys, and anything that stamps the home heavily with your personality and lifestyle. You don’t want to leave the home bare and empty, but you do want prospective buyers to be able to picture their holiday photos on the mantel and their kids’ playhouse in the backyard. Consider renting a storage unit to keep some of your belongings safe until it’s time to move out (and as a bonus, it’ll be a lot easier to load a moving truck directly from a storage unit).

Don’t feel discouraged just because homes in your neighborhood are no longer being snapped up on the day they’re listed (and for way more than asking). Take the above steps to help your home compete in this challenging market.

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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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