Money Management

You don’t want to miss out on the chance to get your money back. 

If you did a lot of shopping during the holiday season this year, you’re not alone. Whether you were buying gifts for your kids and family members or treating yourself to purchases you’d been saving up for, chances are, you racked up a pretty sizable credit card tab along the way.

But what if some of the items you purchased during the holiday season didn’t work out? Maybe you decided to treat yourself to new boots, only when they arrived at your door, they didn’t fit. Or maybe your kids aren’t loving their new electronics and want to swap them for something else.

The good news is that most retailers offer an extended window for holiday returns. But that window may be closing sooner than you’d think. If you have holiday purchases to return, the time to get moving is now.

Don’t lose out

Chances are, you worked hard to save up for your holiday purchases, or you stretched your budget or gave up other things to afford them. The last thing you want is to get stuck with items that aren’t of good use to you because you missed the return window.

Now, the amount of time you have to return holiday gifts and purchases varies by retailer. Your best bet is to sort through your returns, see which stores or sites they came from, and then look at each retailer’s return policy so you know what you’re dealing with.

In some cases, you may be able to return items at a local store and get refunded on the spot. In other cases, you might have to ship them back and wait for a refund to follow. Either way, there’s an end date beyond which retailers won’t accept holiday returns, so make a list with those deadlines so you don’t miss them.

Meanwhile, here are some holiday return policies from popular retailers you may have shopped at:

Target will accept returns for most electronics and entertainment items purchased between Oct. 6 and Dec. 25 through Jan. 24.Walmart will accept returns for most purchases between Oct. 1 and Dec. 31 through Jan. 31.Amazon will accept returns for most items purchased between Oct. 11 and Dec. 25 through Jan. 31.

Read the fine print

Many retailers will let you return holiday purchases at no cost whatsoever. But some retailers do charge a return shipping or restocking fee. It’s important to see if you’ll be subject to one, as that might prompt you to keep an item you’re on the fence about.

Let’s say you bought a $20 sweater for your daughter that she likes but doesn’t love. Your first inclination may be to return it and get your money back. But if you’ll be charged a $10 restocking fee to return that sweater, you may decide to just keep it, since at that point, it’s effectively a $10 purchase.

You might also avoid shipping charges in some cases by returning items to a store instead of through a courier. That’s why it pays to read the fine print and see what options you have.

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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.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Maurie Backman has positions in Amazon.com and Target. The Motley Fool has positions in and recommends Amazon.com, Target, and Walmart. The Motley Fool has a disclosure policy.

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Could dealing with an HOA sometimes be worth the hassle? 

Living in a neighborhood with a homeowners association (HOA) has always seemed like a huge hassle to me. Several times, my husband and I have walked away from buying a home we love in an HOA neighborhood because of the ridiculous rules and restrictions applied to homeowners or because of the high fees the neighborhoods charged.

We didn’t want to commit to huge monthly costs on top of a mortgage payment, or have our association tell us what kind of flowers to plant. And we’ve also lived in HOA neighborhoods where the association was disorganized and caused nothing but trouble.

After having bad experiences, we had vowed never to buy a house in an HOA neighborhood again. Now, however, we have changed our minds and are actually looking for a property in a neighborhood that has a very active association. Here’s why.

Sometimes, HOA amenities are worth the price

Our family has decided to bite the bullet and purchase our next home in a neighborhood with an association for one big reason: We really fell in love with the neighborhood.

The neighborhood is relatively close to where our current vacation home is located. Every time we were in town for vacation, we found ourselves driving over to this neighborhood for some reason. There were tons of cute stores there, a few amazing restaurants we absolutely loved, bakeries with amazing treats for both humans and dogs, and fun special events. And there are miles of dog walking trails that wind by beautiful lakes and streams.

The neighborhood also has a really ideal location, allowing access to major theme parks and downtown restaurants without having to travel on high-traffic roads.

After finding ourselves driving over to this neighborhood multiple times over the course of a week and lamenting the fact that we had to sit in traffic to get there, we decided that it would really make more sense just to live there so we could step out our door to enjoy all those amenities and get to our preferred destinations much faster.

The neighborhood, unfortunately, does have an HOA. But we realized the association is the reason for all these special events and for the beautifully maintained walking trails — and we decided after having spent enough time there enjoying all that it had to offer that the HOA fees were worth the price and the hassle involved in complying with the HOA rules.

Think carefully about whether an HOA is right for you

For many years, we thought we weren’t HOA people — until we decided we could be, for the right place.

The reality is, there are all different kinds of neighborhood associations with varying rules, requirements, cost structures, and amenities. You need to go into buying in an HOA neighborhood with both eyes open if you’re considering it — but you don’t necessarily want to discount them offhand without taking a look at the trade-offs and really thinking about what’s right for you.

For us, as soon as we sell the land we had originally planned to build on, we’ll be getting serious about finding a home in this HOA neighborhood. In the meantime, we’ll be enjoying our dog walks and dining adventures there.

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These Costco items may surprise you. 

When you think of items to buy at Costco, you probably think of the typical warehouse club purchases like paper towels and dishwasher detergent and bulk grocery items. And, indeed, you can easily end up putting all of these items on a credit card when you visit your local Costco store.

But, beyond these staples, there are also some really unexpected products you could purchase at the members-only warehouse club. In fact, here are six surprising items you could pick up on your next Costco trip or at the store’s online site.

1. A very expensive engagement ring

Costco offers a wide selection of engagement rings to fit every budget — including very high budgets. In fact, the warehouse club offers seven engagement rings online priced at more than $100,000 — including one with a price tag close to $350,000.

So, if you’re in the market for a piece of jewelry that costs as much as many people’s houses, you can pick it up at Costco.com. Bet that wouldn’t have been the first place you looked for it.

2. Chandeliers

If you’re in the market for some lighting, you may not have to go to Lowes or another home improvement store to find the fixture of your dreams.

Costco offers a large selection of stylish chandeliers that the decorator in you will love. And they range from chandelier/fan combos with a $700 price tag to bargain-basement options that cost just $129.99 after a $50 discount.

3. Luxury wine cellars

While you might expect to be able to pick up a bottle of your favorite white or red at Costco, you probably wouldn’t think of going there to get a wine cellar that costs more than $5,500. In fact, Costco offers multiple luxury wine cellars (as well as some cheaper alternatives).

So if you are training to be a sommelier or you simply want to make sure you have the perfect bottle on hand at all times, you can find your ideal wine storage solution at your local Costco store.

4. Musical instruments

If you’re interested in making beautiful music, Costco has you covered. From digital piano bundles to acoustic guitars to full drum sets, you can find your instrument of choice at Costco.com.

In fact, there’s a full drum setup with a price of just over $2,000 that you could buy if you’re looking to start a band or if you just really dislike your neighbors and want to drive them crazy with some drumming.

5. Swimming pools

Costco offers several options for above-ground pools if you’re interested in finding a great way to keep cool during the summer months. These affordable options can allow you to add a pool to your home for as little as $800 — just be sure that your HOA will be okay with the new addition.

6. Funeral essentials

Rounding up this list with the least fun item of all, you can find both caskets and urns at Costco. While these items aren’t things you want to find on your must-purchase list, Costco offers very affordable prices on them compared with funeral homes, so they could save you money during a difficult time of life.

These are just some of many surprising finds at Costco, so be sure to keep your eyes open online or in store for unexpected items that you may want to add to your cart.

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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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When you’re investing for retirement, be sure to think about this downside. 

If you are investing money for retirement, chances are good that you’re putting it into a traditional 401(k) or into a traditional IRA.

These accounts have some big advantages. Both offer upfront tax breaks so you get to deduct the amount you contribute to them in the year that you make the contribution. If you are investing in a 401(k), there’s also a good chance your employer will match your contribution, while if you’re investing in an IRA, you get your choice of brokerage firms and have access to a wide selection of investments.

While these benefits make traditional retirement plans attractive, finance expert Dave Ramsey has pointed out that there’s also an important downside to these types of investment accounts that you should consider.

Traditional IRAs and 401(k)s come with a catch

According to Dave Ramsey, the big downside of traditional retirement plans comes when you are actually a senior and you begin relying on the money from these accounts.

“You’ll have to pay taxes on the money you take out of your traditional IRA in retirement,” Ramsey explained.

See, while you enjoy an upfront tax break in the year you contribute and tax-free growth, withdrawals are not tax free. You’re taxed on the money you take out at your ordinary income tax rate in your later years. This means that you have to give the IRS a cut of your fixed income.

Instead of committing your future self to paying these taxes, Ramsey recommends an alternative retirement investing account.

“We recommend investing with a Roth IRA instead,” the Ramsey Solutions blog reads. “Roth IRAs are funded with taxed income. You won’t be able to deduct Roth contributions off your taxes now, but who cares? You’ll be too busy enjoying tax-free growth and withdrawals in retirement later. Future you will thank you!”

Should you listen to Ramsey?

Ramsey is right to point out that the taxes you’ll have to pay in retirement are a big downside when you invest in a 401(k) or IRA.

Not only will the distributions you take be subject to taxation, but the money you withdraw is also going to be counted when determining if your income is high enough that you’re taxed on Social Security benefits. Distributions from a Roth don’t count in this calculation, though, so you’re more likely to be able to enjoy tax-free Social Security checks if you opt for a Roth.

However, the tradeoff is that you do get that upfront tax deduction. And since you can claim the deduction when you invest, it makes it easier to find the money to contribute because each dollar you put into your 401(k) or IRA doesn’t reduce your take-home income by as much as an investment in a Roth would.

Ultimately, you’ll want to think carefully about when it makes sense for you to claim your tax break. If you are struggling to contribute to retirement accounts now, you may not want to make it harder on yourself by deferring your tax savings until later. Likewise, if you think your tax bracket will be lower in retirement than it is now, it doesn’t make sense to wait to claim your savings.

But, if you have plenty of money now and aren’t sure you will as a senior — or if you think your tax rate will be higher later on — then getting a Roth IRA might be best. You do, however, always want to invest enough in your 401(k) to earn your employer match before moving on to contributing the rest to your Roth, if that’s the right account for you.

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You need to read this if you’re going to be listing your house on the market soon. 

Most home buyers head out in the spring or summer to try to find their perfect property. Those seasons offer several advantages, including better weather and the ability to move homes between the end of one school year and the start of another.

Sellers know that these are prime home-buying seasons and tend to list their properties during this time frame when possible. But there are times when a winter sale is necessary based on life circumstances. If you’re going to sell your house this winter, these tips from finance expert Dave Ramsey could help make the transaction a success so you can hopefully get a good enough price to pay off your mortgage and then some.

1. Avoid over-decorating for holidays

While you may love to deck out your home for the holidays, you should think about skipping that this year if you’re trying to sell — or at least scaling down on the decor.

“If you’re selling around a holiday and have decorations up, make sure they accent — not overpower — a room,” Ramsey advises. Too many decorations could make it hard for potential buyers to see and appreciate your home’s best features. They could also make your home look smaller and more cluttered.

Ramsey is absolutely right about this issue. And it’s not just the inside where decor could harm you either. “Nothing says ‘my home won’t sell’ like a house with reindeer inflatables on the lawn in February,” Ramsey warns. You need to make sure you have good curb appeal, so don’t leave items up beyond the holiday and avoid decorations that could be a turn off to some buyers.

2. Have pictures of your home during good weather

Chances are good your home looks its best when flowers are in bloom and the lawn is a nice bright green. You’ll want to give potential buyers a chance to see what that’s like, if possible — even if they’re buying in the winter months. That’s why it’s helpful to follow Ramsey’s advice and paint a picture for them — or at least let them see some pictures.

“Buyers want to see details of the house, not a blanket of snow,” Ramsey says. “Make sure you have clear-weather photos of your home.”

3. Make your house as cozy as you can

Finally, if you can dial up the coziness a few notches and make your house seem like an inviting escape, that could be just enough to capture the buyers’ emotions and convince them that your property is the place they want to come home to.

“Light a fire in the hearth, play soft holiday music in the background, and prepare fresh-baked goods or mulled cider for guests,” Ramsey advises.

While you don’t want to go overboard with this Ramsey suggestion, the key to selling a home is to make buyers want to live in it, and make them picture their ideal life there. You want them to think that your home is the one they’ve been looking for.

While that can be a little bit harder this time of year since warm weather — not freezing winter — is most people’s ideal atmosphere to buy a home, following these helpful tips can go a long way toward maximizing the chance your house sells quickly and for a fair price.

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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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Have you changed any of your spending habits? 

Inflation is the rising price of goods and services. Costs always go up slightly over time, but they have gone up dramatically over the course of 2022. In fact, even though inflation has started to cool slightly, the Consumer Price Index for October revealed prices are up 7.7% compared with the prior year. That’s a big price increase for people to bear the brunt of.

Since Americans are paying more for just about everything, it’s not a surprise that this has prompted some changes to financial behavior. In fact, research from Ramsey Solutions, The State Of Personal Finance In America 2022, shows that people have been spending differently as a result of surging inflation. Here are some of the biggest changes people have made.

Inflation is changing consumer behavior

According to Ramsey Solutions, inflation has caused Americans to cut back on many areas of discretionary spending. For example:

70% of survey respondents indicated they’d scaled down or canceled their travel plans, spending less on vacations during the second quarter of 2022. This is a trend that continued from the start of the year.41% of survey respondents said they’d skipped buying something that they had originally planned to purchase during the second quarter of the year33% said they had reduced the amount they were putting into their savings accounts25% said they had cut back on how much they were sending to creditors to repay their debts22% indicated they had reduced the contributions they were making to their retirement investment accounts25% said they had charged purchases on a credit card they would normally have just paid for outright with cash15% went deeper into debt to pay their bills

These financial decisions can impact your life both now and in the future if you’re making them. While not taking an expensive vacation will make your life less enjoyable in the present, cutting back on retirement savings or slowing down your debt payoff plans could have a more serious long-term effect on your financial stability.

Some Americans are also taking different tactics instead of reducing spending, with 20% of survey respondents indicating they’d taken on a second job or side hustle and 27% saying they were selling items from around their home. Either of these options could potentially be better than pausing debt payoff or taking on more debt for paying bills.

How can you cope with the effects of inflation?

In an ideal world, the absence of stimulus money in 2022 combined with the U.S. Federal Reserve raising interest rates to tighten the money supply would end up reducing inflation so you can live more easily on your budget without resorting to big sacrifices or borrowing.

But, it’s not clear exactly when things will get more affordable for consumers. Unless and until prices fall or your income catches up to the surge in inflation, you’ll need to be strategic in trying to cope with inflation’s impact. You can do this by substituting cheaper products (such as eating more plant-based and fewer meat-based meals), cutting coupons, and looking for similar opportunities to spend less and earn more.

It may be hard to cope during these troubled economic times, but the more you can do to ensure inflation doesn’t hurt your finances in the long term, the better off you’ll be.

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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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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