Money Management

Headline-grabbing sums seem to be the new normal. 

If the recent trend of huge jackpots has caught your eye, you’re not alone. In fact, catching the eye of the public may be exactly why jackpots are getting larger. The last seven years have seen the 10 largest U.S. lotteries ever won, half of which have been won since 2021. But before you try your luck, it may be worth considering why these jackpots are stacked so high — and what it could mean for you.

Changing the game

The Multi-State Lottery Association is one of the biggest names in intra-state gambling, and exercises nearly complete control over the games it conducts. And when those games, including the Powerball and Mega Millions lotteries, rack up billions of dollars, even small changes can have a huge impact.

One reason for larger jackpots is that they are harder to win. Prior to 2017, your odds of winning the Mega Millions lottery were roughly one in 258.9 million. In October of that year, the MUSL made long odds even longer, dropping your chances of winning to about one in 302.6 million. And when it’s harder to win, the chances of the jackpot going unclaimed and continuing to grow are better.

What’s a dollar worth? If you’re the MUSL, the answer could be millions. Among the 2017 rule changes, ticket prices for the Mega Millions jackpot were raised from $1 to $2. A change which may not affect a consumer much could greatly increase the grand prize.

A wider footprint

The MUSL traces its roots back to an agreement between five small-population states and the District of Columbia in 1987. The Association has grown substantially since then, and now sells tickets in 45 states.

Much of that growth has occurred since 2009, with 14 new states being added since then. This explosive growth can be attributed to a deal brokered in October of that year allowing cross-selling of Mega Millions and Powerball tickets.

A wider player base means more tickets sold and more tickets sold means a bigger jackpot. So will this growing player base continue on its upward trajectory? Probably not. As of this writing, only five states don’t currently sell Mega Millions or Powerball tickets, leaving the MUSL with limited room to expand.

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Rising rates

Another contributor to the eye-popping jackpots in the headlines has nothing to do with how the game is played or by whom. Rising interest rates can artificially enlarge the grand prize, or at least the oft-quoted annuity option.

After the excitement of winning the lottery wears off, the winner faces a choice: to take the prize as a lump sum or to be paid out over an extended period of time; 29 years in the case of the Mega Millions and Powerball jackpots. But here’s the catch: those two options pay different amounts. That’s the concept of the time value of money.

The annuity option factors in an annual rate of interest, and when interest rates across the economy rise, so does interest paid to an annuity-choosing lottery winner. The annuity option counts these interest payments accruing over decades in its total value. While the most recent, and as of yet unidentified, Mega Millions winner won a headline-snatching $1.348 billion, they would only receive $723.5 million if they took the lump sum.

Jackpots of staggering sizes appear to be the norm now, but the math behind them might make you think twice. While some of the inflation is artificial thanks to rising interest rates, the game has gotten harder to win. Additionally, more players means a higher chance of having to split the prize should you win. However, it can be hard not to take your chances with a billion dollars on the line.

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Image source: Getty Images
What happenedEmail medical advice is costing patients anything from copays of $3 to charges of $100, according to recent reports. Not only has the volume of email consultations increased dramatically in recent years, but new billing rules allow healthcare providers to charge for so-called “e-visits.” As a result, some doctors now charge for the service.So whatAs a patient, the idea that you might have to pay for email communications on top of other healthcare costs can be very disturbing, especially if you’re not clear on what you might be charged. Some patient advocate groups believe it could stop people seeking medical advice and become a barrier to access.On the other side, healthcare providers say it’s a necessary step because responding to emails and online queries takes considerable amounts of time. A spokesperson for the Cleveland Clinic told the New York Times, “Billing a patient’s health insurance supports the necessary decision-making and time commitment of our physicians and other advanced professional providers.”Now whatDon’t allow a fear of being billed stop you from emailing your doctor to get the advice you need. Only a small percentage of emails to clinics carry fees and providers say patients should be told before they’re charged. If you’re worried, speak to your medical provider to find out whether you might be billed for emails and what you might have to pay.Technically, an e-visit is anything that takes more than five minutes of a clinician’s time across a single week. You might have to pay for emails that require medical expertise, such as a change in medication or an opinion on a rash. But there’s no charge for services like refilling a prescription or scheduling an appointment.
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More widely, if you’re concerned about running up big medical bills, there are a few steps you can take.Understand what your health plan covers: Knowing what is or is not included in your health insurance can make a big difference to your bank balance. For example, if you’re entitled to routine health screenings, don’t miss them as you may catch treatable illnesses early. Check what procedures require preauthorization and stay in-network where possible.Look for ways to reduce prescription charges: Opt for generic drugs rather than big name products and see if you can order regular prescriptions by mail in bulk.Investigate tax advantaged health accounts: If you have a high-deductible health insurance plan, you may be able to open a health savings account (HSA). It’s a type of savings account that lets you put money aside on a tax-deferred basis to cover health costs. Your company might also offer a Healthcare Flexible Savings Account (FSA).Another way to save money on healthcare is to stay healthy. Your diet, exercise habits, and lifestyle can all make a big difference to your medical needs. Sadly, a healthy lifestyle won’t always keep the doctor at bay, but it can help.Our best car insurance companies for 2022Ready 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. 

What happened

Email medical advice is costing patients anything from copays of $3 to charges of $100, according to recent reports. Not only has the volume of email consultations increased dramatically in recent years, but new billing rules allow healthcare providers to charge for so-called “e-visits.” As a result, some doctors now charge for the service.

So what

As a patient, the idea that you might have to pay for email communications on top of other healthcare costs can be very disturbing, especially if you’re not clear on what you might be charged. Some patient advocate groups believe it could stop people seeking medical advice and become a barrier to access.

On the other side, healthcare providers say it’s a necessary step because responding to emails and online queries takes considerable amounts of time. A spokesperson for the Cleveland Clinic told the New York Times, “Billing a patient’s health insurance supports the necessary decision-making and time commitment of our physicians and other advanced professional providers.”

Now what

Don’t allow a fear of being billed stop you from emailing your doctor to get the advice you need. Only a small percentage of emails to clinics carry fees and providers say patients should be told before they’re charged. If you’re worried, speak to your medical provider to find out whether you might be billed for emails and what you might have to pay.

Technically, an e-visit is anything that takes more than five minutes of a clinician’s time across a single week. You might have to pay for emails that require medical expertise, such as a change in medication or an opinion on a rash. But there’s no charge for services like refilling a prescription or scheduling an appointment.

More widely, if you’re concerned about running up big medical bills, there are a few steps you can take.

Understand what your health plan covers: Knowing what is or is not included in your health insurance can make a big difference to your bank balance. For example, if you’re entitled to routine health screenings, don’t miss them as you may catch treatable illnesses early. Check what procedures require preauthorization and stay in-network where possible.Look for ways to reduce prescription charges: Opt for generic drugs rather than big name products and see if you can order regular prescriptions by mail in bulk.Investigate tax advantaged health accounts: If you have a high-deductible health insurance plan, you may be able to open a health savings account (HSA). It’s a type of savings account that lets you put money aside on a tax-deferred basis to cover health costs. Your company might also offer a Healthcare Flexible Savings Account (FSA).

Another way to save money on healthcare is to stay healthy. Your diet, exercise habits, and lifestyle can all make a big difference to your medical needs. Sadly, a healthy lifestyle won’t always keep the doctor at bay, but it can help.

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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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The first hurdle is actually the easy one. 

Many of the reasons folks get business credit cards are the same as why one might get a personal credit card:

They can build creditThey can earn rewardsThey’re convenientThey’re safer than debit cardsThey can be paid off over time

Additionally, small business credit cards are a great way to streamline your finances, as they help you keep business expenses separate from personal ones. And since they’re tailored to business-focused cardholders, you can find perks and rewards that aren’t available with regular consumer cards.

That doesn’t mean you need to be a besuited business mogul to appreciate — or apply for — a business credit card, though. In fact, they’re available to basically anyone with a business.

If you own a business, you can apply

The main qualification that separates a business credit card from a personal one is that applicants need to own a business. That’s it. In general, you won’t need to meet any employee or revenue minimums for a small business credit card.

For example, if you’re a freelancer or otherwise self-employed, you operate a business. Since you operate a business, you can apply for a business credit card.

Business credit cards don’t require you to have an EIN (employer identification number); you can apply with your own Social Security number. Similarly, your business doesn’t need a separate name — though you should provide the DBA name if you’re using one; if not, simply give your own name. (This can actually be amusing; you’ll likely end up with a card that has your name on it twice!)

No minimum revenue, but credit checks required

Another common misconception is that only businesses with lots of revenue can qualify for a business credit card. This isn’t accurate.

Issuers understand that new businesses — and very small businesses — simply don’t have huge amounts of revenues That’s why they look at many other factors.

One of those factors? Your personal credit history.

Just as with a personal card, you’ll need to agree to a hard credit check when you apply for a business credit card. And it’s not just your business’s credit they’ll check. Your personal credit history will be a big factor in their decision.

This comes down to the personal guarantee. Most small business credit cards require you to personal guarantee your credit line. So, if your business folds, you’re still personally on the hook for any balance on the card. The only real way around this is to get a corporate card.

Business vs. corporate credit cards

One point of confusion for some folks is the distinction between business credit cards and corporate credit cards. While occasionally the terms are used interchangeably, they’re actually very different products.

When we talk about “business credit cards,” we almost always mean small business credit cards. Corporate credit cards are a distinct type of credit product designed for actual corporations. That means businesses with a legal classification of “corporation,” such as a C corp or S corp.

This legal distinction is an important factor. Corporations are distinct legal and financial entities. As such, the legal and financial responsibility for corporate cards belongs to the business itself, so they don’t require personal credit checks or personal guarantees.

Corporate credit cards typically have high minimum revenue requirements — some cards start in the $3 million range — and may require a high monthly or annual spend. They’re also usually designed for companies with a large number of employees, so they focus more on managerial tools and accounting than things like rewards and cardholder perks.

Although it may seem like a lot of hoops to jump through, there’s a reason — corporate cards are overkill for most small businesses. That’s what small business credit cards are for; they are available to most business owners and offer a reliable line of credit that can be valuable for any size of business.

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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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The quick answer? It really depends. 

Chances are, this has happened to you at least once. You were on vacation when someone offered you the chance to score free tickets to a show or a free restaurant voucher in exchange for sitting through a presentation about timeshares. Whether you accepted that offer at the time or not, the idea of buying a timeshare might hit your radar at some point. But is buying a timeshare a good idea?

What’s a timeshare?

Timeshares come in different varieties. But in a nutshell, when you buy a timeshare, you’re gaining access to a vacation property you can use for a limited number of days during the year.

For example, you might buy into a timeshare for a condo in Florida. Your ownership of that timeshare might entitle you to two weeks in that condo every calendar year.

The cost of a timeshare can hinge on a number of factors. These include its location and the amenities it comes with. A vacation condo in Florida that’s part of a complex with three heated pools, an onsite restaurant, and a state-of-the-art gym might cost more than a timeshare in a community that doesn’t include these perks.

Is there value to buying a timeshare?

Absolutely. When you have a timeshare, you’re pretty much guaranteed access to lodging when you go on vacation. But unlike a vacation home you own yourself, you’re generally not responsible for maintenance on that property.

And speaking of vacation homes, those can be very expensive to purchase. And you may not want the expense of another mortgage loan. Timeshares can be far more affordable, because you’re not buying a unit you own yourself. Rather, you’re buying the option to use a unit you share with other owners.

Is a timeshare worth the money?

Sometimes — but not always. In many cases, you can spend less on a hotel room at your destination and use the money you’re saving for other purposes, whether it’s paying off your credit cards or improving your home.

Plus, financing a timeshare can be expensive. That’s because you don’t buy a timeshare with a traditional mortgage (since, as mentioned, you’re not actually buying a home you own yourself).

Now there are different options you can explore for financing a timeshare. These include home equity and personal loans. But often, these loans will cost more than what you’d pay for a traditional mortgage in terms of interest.

Also, you may be inclined to look at a timeshare as an investment. But it’s not an asset that can make you wealthier over time the same way stocks can, for example. And it certainly can’t help you gain wealth the same way a regular home purchase can.

Let’s say you buy a home for $300,000, and in 10 years, its value increases to $450,000. At that point, you could gain a lot.

But remember, you don’t own property when you buy a timeshare. So you can’t expect financial upside. Even if you end up reselling your timeshare, you’re most likely not going to make money on that sale.

And finally, you may not use your timeshare as often as expected. What if you get tired of visiting Florida year after year? Sure, you could try to swap with someone who owns a different timeshare, but that’s not guaranteed to work out. So all told, you might end up paying for something that doesn’t benefit you as much as you think it will.

Ultimately, a timeshare could be worth the money, but often, it’s not. If your favorite vacation spot has gotten extremely difficult to book, and you’re absolutely certain you plan to return at least once a year, then a timeshare could make sense. But before you throw money into one, think about the different things you might do with that cash instead.

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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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