Money Management

Bitcoin’s erased all the losses of recent years, and there’s optimism it will make a new high. Find out why that price action hasn’t silenced the top crypto’s critics. [[{“value”:”

This time last year, the long crypto winter was coming to an end. Investor confidence was starting to return, and there was optimism the SEC would approve a spot Bitcoin ETF (exchange-traded fund). That optimism was well-founded — the SEC green-lit the funds in January 2024.

Indeed, that approval is a big part of the reason Bitcoin surged 125% in the past year. But how does the price surge impact long-term investors? And does strong price action mean now is a good time to buy Bitcoin? Let’s look at some of the pros and cons of Bitcoin investing today.

Bitcoin’s recovery is reassuring

A year ago, Bitcoin was trading around $30,000. Now, at around $67,000, it’s more than double that. Some analysts think it might set a new all-time high in the coming weeks. It might — but it’s also important to keep those extraordinary gains in perspective. Not only do they reflect crypto’s volatile nature, but that huge rise would not have been possible without the dramatic losses and upheaval of 2022.

It’s certainly reassuring to see Bitcoin trend upward and great that it’s erased the losses of recent years. Still, if you’re thinking about buying Bitcoin today, don’t do it because the top crypto has gained 125% in a year. Only buy if you believe it could perform well in the future. Research its long-term potential and think about what utility it might have in 10 or 20 years.

If you decide to buy Bitcoin, ensure you use a crypto exchange or brokerage you trust and only spend what you can afford to lose. Some crypto platforms, like Robinhood, have extra crime insurance to protect your assets against theft. They also keep the majority of funds offline in cold storage. Click here to learn more about how Robinhood keeps your crypto safe and open an account.

Has Bitcoin silenced its critics?

Whenever crypto prices jump, so does market sentiment. The bulls say it proved the critics wrong and cryptocurrency is on its way to the moon. Potential investors get nervous they’ve missed the boat. They dive in, which helps propel prices even higher.

But the reason skeptics aren’t into Bitcoin has nothing to do with its price. Their main concern is that it has no intrinsic value. They argue that not only is it a speculative investment, but it’s one that consumes huge amounts of energy and funds illegal activities. Those critics haven’t gone away just because the price has recovered.

To silence the critics, Bitcoin needs to show that it’s here to stay. It needs to establish itself as a form of digital gold. It needs to show its worth as a global digital currency — particularly when it comes to the international money transfer market. It needs to make inroads into adoption and technical development. Progress is being made, but only time will tell.

One of the things that divides speculation from investment is whether people are looking for short-term profit or long-term value. Another has to do with productivity — Bitcoin doesn’t generate dividends in the way some stocks do. So, the longer Bitcoin is around and the more progress it makes in establishing value, the less speculative it becomes.

Should you buy Bitcoin today?

The decision to buy cryptocurrency has as much to do with your financial situation as it does crypto itself. Outside of the price rollercoaster, Bitcoin is making progress on several fronts. Spot Bitcoin and Ethereum ETFs have opened the door to a lot more institutional investors. That helps build confidence and goes some way to establishing crypto as a more mainstream investment.

But it’s still a risky investment, and it’s impossible to know how it will unfold. For example, we don’t know how regulatory changes will impact retail investors. There’s not a lot of investor protection right now. The technology is still new and under development. All of this is to say that your investments could soar, but they could also fall to nothing.

If you want to invest in Bitcoin, you need to be comfortable with the risk and volatility. That means having solid financial foundations such as an emergency fund and a solid retirement account.

Bitcoin and crypto should never make up a large proportion of your asset allocation. That way, if crypto collapses, it won’t derail your wealth-building or plans for your old age.

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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 positions in Bitcoin and Ethereum. The Motley Fool has positions in and recommends Bitcoin and Ethereum. The Motley Fool has a disclosure policy.

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A one-credit-card wallet isn’t always the best option. Learn about the valuable benefits of carrying multiple credit cards. [[{“value”:”

Everyone’s a little different when it comes to credit cards. Some people, myself included, like to use multiple high-quality credit cards for the benefits they offer. Others prefer keeping it simple with a one-card wallet.

Even if you don’t want too many credit cards, there are advantages to having more than one. Here’s why it’s a good idea to carry multiple credit cards.

1. You could earn more cash back or travel points

If you have a high credit score, ideally you’re already using a cash back card or a travel card. These are an easy way to save money, just by paying with your credit card. On every purchase, you’ll earn either cash back or travel points you can use to save on your next trip. Many of these cards also offer sign-up bonuses worth $200 or more for new cardholders.

While you could save money with one of these cards, you could save even more with multiple rewards cards. By opening multiple cards, you can earn multiple sign-up bonuses.

You could also earn bonus cash back or points in more areas. For example, some rewards cards earn a flat rate of 2% everywhere. Others have a standard rate of 1%, but earn 3% or more in bonus categories, such as gas and groceries.

Carrying multiple credit cards is great if you love to travel, because there are lots of fantastic travel cards available. With the right combination of cards, you could get all kinds of travel perks, even including access to luxurious airport lounges. Explore our list of the best travel cards to learn more and open a card today.

2. Some retailers don’t accept every type of credit card

Every credit card has a payment network. In the United States, there are four:

VisaMastercardAmerican ExpressDiscover

While it’s uncommon, there are businesses that don’t accept cards from each payment network. Costco is the most famous example. It has an exclusive partnership with Visa, so you can’t use any other type of credit card there.

Acceptance of American Express and Discover can also be hit or miss abroad and among small businesses. If you have one of those cards, it’s a good idea to also get a Visa or a Mastercard just in case.

3. You’ll have a backup if your card is declined

Credit cards can get declined for all kinds of reasons. Here are a few examples of why this can happen:

You’re trying to make a large purchase.You’re using your credit card abroad.You’ve reached your credit limit.Your card issuer locked your card for identity or address verification.

Sometimes you can resolve these issues quickly and easily. If a large purchase or a transaction abroad trips up your card issuer’s fraud detection, you’ll likely get an email or text asking you to confirm the purchase. Once you do that, your card will work.

But there are also situations where it can take longer to get your card up and running again. You might need to spend time talking to customer service or even send in documents to verify your identity. By carrying multiple credit cards, you don’t need to worry if one of them gets declined.

You don’t need a wallet full of credit cards — although there’s nothing wrong with that, either. It doesn’t hurt to have at least two cards, though. You’ll be able to maximize rewards, you can carry cards from multiple payment networks, and you’ll have a backup payment method when necessary.

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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.American Express is an advertising partner of The Ascent, a Motley Fool company. Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. Lyle Daly has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale, Mastercard, and Visa. The Motley Fool recommends Discover Financial Services and recommends the following options: long January 2025 $370 calls on Mastercard and short January 2025 $380 calls on Mastercard. The Motley Fool has a disclosure policy.

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Costco may be popular, but Sam’s Club has just as much to offer. Consider these reasons to switch teams. [[{“value”:”

If you’re a bargain shopper, one of the biggest questions you’ll need to answer for yourself is whether you’re going to get a Costco membership or a Sam’s Club membership.

Costco has a very passionate — and opinionated — fanbase, but that doesn’t mean it’s the right pick for everyone. Here are a few reasons you might choose to be Team Sam’s Club instead.

1. You prefer to do your shopping online

Having shopped at both Costco.com and SamsClub.com, I can tell you that Sam’s Club hands-down has the better online experience. To start, the website is nicer to use and easier to navigate.

More importantly, though, you can shop Sam’s Club’s full inventory (minus the occasional store exclusive), including groceries and frozen items. You can even get most of the Sam’s Club items shipped (minus cold items).

Plus, while Costco’s website jacks up prices on the few items you can get shipped, Sam’s Club generally has the same prices online as in store. Even better, shipping on orders of $50 or more is free for Plus members.

2. You like to pay with non-Visa credit cards

This may be a niche annoyance for us rewards-minded folks, but one thing I really love about Sam’s Club over Costco is that I can use any credit cards I want. Costco limits you to paying with Visa credit cards in the warehouses.

To be fair, we’ve found a number of great cards for maximizing rewards at Costco. But some of us (me, it’s me) really want the freedom to use whatever card best fits our card strategy at the time.

I find Costco’s limitations particularly irritating when I’m working on a welcome bonus, since my wholesale club purchases could really help out on those high spending requirements. The best welcome bonuses are worth more than $750. It’s well worth switching my purchasing from Costco to Sam’s Club if it helps me earn those bonuses.

3. You hate waiting in the checkout line

It might be the introvert in me, but Sam’s Club’s Scan & Go is easily the second-coolest app feature I’ve ever used (No. 1 is the Merlin Bird ID app that identifies birds based on audio recordings of their songs!).

With Scan & Go, you simply scan items as you walk around the store and shop. Then, you can check out and pay right in the app. Smugly glide past the endless lines at the checkout lanes to show your digital receipt at the door and you’re done.

As someone who absolutely hates standing in lines (seriously, it’s the worst), Scan & Go alone is enough reason for me to shop at Sam’s Club over Costco.

4. You prefer Member’s Mark to Kirkland Signature

Despite what the devoted Kirkland Signature fans may think, Sam’s Club’s Member’s Mark brand is easily comparable in quality — and, sometimes, better. It also has an equally huge selection of everyday and household essentials.

Our house has tried staples from both brands, and we’ve preferred the Member’s Mark items at least as often as the Kirkland Signature. For example, the Member’s Mark 3-ply tissues are a house favorite anytime we get the sniffles (the Kirkland Signature 3-ply facial tissues tear too easily).

5. You live closer to a Sam’s Club than a Costco

Never underestimate the importance of convenience when deciding between wholesale clubs. The best deals in the world aren’t worth bupkis if you have to drive two hours to get them.

Both Costco and Sam’s Club have around 600 locations throughout the U.S., so you have a decent chance of being close to at least one of the wholesale clubs. Given that products and pricing are fairly similar, deciding based on which has a closer location is as good a reason as any.

Either way, your budget will probably thank you

Ultimately, joining either Costco or Sam’s Club could be a solid pick for your household. Switching to bulk buying can help you save on all kinds of household goods, which is an excellent way to find more room in your budget.

Top credit card to use at Costco (and everywhere else!)

We love versatile credit cards that offer huge rewards everywhere, including Costco! This card is a standout among America’s favorite credit cards because it offers perhaps the easiest $200 cash bonus you could ever earn and an unlimited 2% cash rewards on purchases, even when you shop at Costco.

Add on the competitive 0% interest period and it’s no wonder we awarded this card Best No Annual Fee Credit Card.

Click here to read our full review for free and apply before the $200 welcome bonus offer ends!

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.Brittney Myers 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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There’s an old retirement rule that’s a good starting point to determine how long your money will last. Learn why you might need to adapt it to fit your needs. [[{“value”:”

Having $1 million or more in your retirement account is an accomplishment that just over 3% of Americans have currently reached, according to the Employee Benefit Research Institute. But even if you accomplish that goal, the rising cost of living has weighed down on many retirees’ budgets, causing some to wonder, “How long will that money last?”

If your goal is to save $1 million for retirement, or you’re there already, here’s how long it might last based on one popular retirement planning strategy.

How long $1 million will last using the 4% rule

The 4% rule has been around for a while, and it’s a baseline recommendation for how much you should take out of your retirement. In short, the 4% rule says you should:

Withdraw 4% of your savings balance in your first year of retirementAdjust withdrawals in the following years to account for inflation

For example, if you have $1 million in your account, you will withdraw $40,000 in the first year. Then, if inflation increases by 2% in the next year, you would increase the amount you pay yourself by 2%, giving you $40,800. You continue making those inflation adjustments each year throughout retirement.

In theory, if you follow the 4% rule, your $1 million in retirement savings could last 30 years or until about age 90 if you begin retirement at 60.

Need to jumpstart your retirement? It starts with the right brokerage account. Click here to see our top brokerage picks.

The 4% rule isn’t perfect

The problem with giving a general calculation of how long your specific retirement funds will last is that no rule will do this perfectly, including the 4% rule. Some drawbacks to the 4% rule include:

It assumes that inflation is the only factor affecting your annual spendingIt’s based on even distribution of 50% stocks and 50% bonds in your portfolioIt assumes historical market returns, which aren’t guaranteedIt doesn’t include taxes or investment fees

With all of its flaws, financial services company Charles Schwab says it’s best to think of the 4% rule as a good starting point rather than a rigid formula.

Indeed, your portfolio performance, retirement length, budget, health, and general expenses will differ from that of other retirees, so using an inflexible formula isn’t a perfect solution.

Talk to a financial advisor

So, if the 4% rule isn’t airtight, what should you do to ensure your $1 million will last as long as possible? One of the best things you can do is to sit down with a financial advisor to map out your specific retirement goals.

Related: Before you begin investing, it’s important to have an emergency fund. Click here for the best high-yield savings accounts.

You can find fee-only (non-commission) fiduciary financial planners on the National Association of Personal Financial Advisors (NAPFA) website. Their fiduciary status means they’ve committed to legal and ethical standards to work in your best interests, rather than their own.

A financial planner can help you decide how much to spend each year in retirement and help you make adjustments based on your taxes, investment income, Social Security payments, and inflation.

This means you’ll probably need to be flexible with your retirement spending. That might mean withdrawing more money in certain years but scaling back in other years, depending on the inflation rate and how your investments are performing.

No matter how much money you have saved up before you retire, spending some time with a financial advisor will help you determine an appropriate range of spending in your retirement years, whether that ends up being three decades or even longer.

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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.Charles Schwab is an advertising partner of The Ascent, a Motley Fool company. Chris Neiger has no position in any of the stocks mentioned. The Motley Fool recommends Charles Schwab and recommends the following options: short December 2024 $67.50 calls on Charles Schwab. The Motley Fool has a disclosure policy.

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This writer is saying no to CDs. Here’s why you might want to do the same. [[{“value”:”

Ever since the Federal Reserve lowered its benchmark interest rate in September, CD rates have been falling.

CDs have paid so well these past couple of years because the Fed spent much of 2022 and 2023 raising its benchmark interest rate to fight inflation. Now that inflation has cooled, the Fed is ready to reverse those rate hikes. Unfortunately, that will hurt people with money in the bank.

A few months ago, it was pretty easy to find a CD that would pay you 5% or more on a 12-month term. These days, that’s harder to find.

That said, if you look around, you may find some CDs paying 5.25% today. Click here for a roundup of some of the best CD rates available now.

But at this point, a 12-month, 5.25% CD doesn’t excite me. Here’s why.

Why I’m not interested in a 12-month CD anymore

I’ll admit that earlier in the year, I opened a few CDs to take advantage of higher rates. But opening those CDs made sense for my financial situation.

The money I put into those CDs is money I might use in about five years, since it’s earmarked for college savings. I opened a 5-year CD to lock in a competitive rate to help me meet a specific goal that’s not so far off.

But I don’t plan to use the rest of my money for college savings. I’ve saved a specific amount for my kids’ education, and I want to use the remainder of my savings for retirement and other goals that are farther in the future. For this reason, I’m skipping CDs altogether and investing my money instead.

Stocks offer the possibility of much greater returns

While it’s still possible to find CDs paying above 5% if you shop around and meet the requirements (you may be subject to a minimum deposit, or you may need to become a member of a specific credit union to get the best rates), to me, that sort of return is only decent. But over the past 50 years, the S&P 500’s average annual return has been 10%.

If I put $10,000 into a 12-month CD paying 5.25%, I’m guaranteed to earn $525. But what happens after that year is up? CD rates are likely to fall, so my chances of being able to renew a 12-month CD at a rate that’s close to 5.25% are pretty slim.

On the other hand, if I put $10,000 into an S&P 500 index fund today and leave it alone for 15 years, it’ll be worth close to $42,000 if my portfolio gives me a 10% yearly return. And if I put my money into a 12-month CD at 5.25%, grow it to $10,525, and then invest it in stocks at a 10% return for 14 years instead of 15, I’m looking at about $40,000 instead of almost $42,000. In reality, I don’t have much to gain by choosing a CD for the next year over going all-in on stocks right away.

It could pay to invest your money, too

If you have money earmarked for a goal that’s only a few years away, then a CD is a safer bet than stocks. You generally want to make sure you won’t need your money for a good seven years or longer before putting it into stocks, because you need to build in time to ride out a potential market downturn.

If you’re saving for something you may be ready to jump on in a year or two, like a new house or car, then by all means, shop around for the best CD rate you can find. Otherwise, open a top-rated brokerage account and start investing your money as soon as you can. The more time you give stock investments to grow, the more likely you are to come away with more money than you started out with.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

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Click here to read our full review for free and apply in just 2 minutes.

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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Costco doesn’t have the most impressive digital experience. Here’s why the recently improved mobile app is a big step in the right direction. [[{“value”:”

If you’ve ever spent time on Costco’s website and thought, “Wow, this is not awesome or modern in any way!” then I have good news: The Costco mobile app is so much better.

I’m not the only one who thinks so, either. It has 4.8 and 4.7 stars in the Apple and Android stores, respectively, which is about as good as most apps can hope for from the masses.

Not sold? Here are a few reasons why I think every Costco shopper should use the Costco mobile app.

1. Access to your digital membership card

If you use the Costco app for nothing else, this could be enough to make it worth the download: a digital membership card. No more digging through your wallet, realizing you somehow forgot your card, and having to visit the Member desk.

Instead, you can open your phone and access your digital membership card with two taps:

Open Costco appClick Account tab

Your digital membership card is displayed right at the top of the Account tab. A quick scan of the QR code unlocks registers and gas pumps that require a membership card to use.

2. Manage and pay with your Costco credit card

You can already use a variety of digital wallets at Costco, including Apple Pay (and Google Pay and Samsung Pay in-store only). But if you have a cobranded Costco credit card, you can also use your Costco mobile app to pay.

All you need to do is add your Costco cobranded credit card to the app, which links it to your digital membership card. Now, you can pay right from the app at checkout, both in store and at the pump.

Pro tip: Even if you don’t have a Costco credit card, make sure you’re still using a competitive rewards credit card for your Costco shopping. Maximize your Costco purchases with one of our top Costco rewards cards.

3. See warehouse inventory and gas prices

If I had to narrow down my gripes with the Costco website to one thing, it would probably be the lack of store inventory info online. Nowhere on the regular Costco.com site can you see what’s actually available at your local store.

The mobile app fills this annoying gap. You can choose a store, then see a (relatively*) current list of what’s in stock, including groceries and other warehouse-only items. If the location has a gas station, you’ll also see the current prices for fuel.

*The stock numbers are never going to be 100% accurate. No retail store in the history of forever has ever had an entirely accurate stock list (not even right after inventory…). This app could be using up-to-the-minute data directly from the Costco system and there will still be discrepancies.

4. Keep up with the latest sales and deals

I regularly visit several different shops to make the most of my budget, and comparing sales to find the best deals is a key part of my savings strategy. Being able to easily scroll through Costco’s sales flyers on my phone makes this so simple.

You can see both warehouse and online sales, as well as new price reductions for items on their way out. Add deals to your shopping list, wishlist, or Costco.com shopping cart.

And you can do it from anywhere, whenever you have some spare time to browse sales. (Really, anywhere — yes, even there. We won’t judge.)

5. Maintain a shopping list for a streamlined visit

You can find a lot of great strategies for saving money at Costco. But arguably one of the most effective is to make a list.

Alright, you also have to stick to the list, which is the harder part — especially because making a Costco shopping list is really easy with the mobile app.

You can make wishlists, as well as several types of shopping lists, including separate lists for your online purchases as well as warehouse needs. And since you’re probably not leaving your phone behind when you go to the store, you won’t need to worry about forgetting your shopping list, either.

The app is available on Apple and Android phones

You can get the mobile app for either Apple or Android smartphones. Make sure you log into your Costco account in the app to access all the features and functions.

Top credit card to use at Costco (and everywhere else!)

We love versatile credit cards that offer huge rewards everywhere, including Costco! This card is a standout among America’s favorite credit cards because it offers perhaps the easiest $200 cash bonus you could ever earn and an unlimited 2% cash rewards on purchases, even when you shop at Costco.

Add on the competitive 0% interest period and it’s no wonder we awarded this card Best No Annual Fee Credit Card.

Click here to read our full review for free and apply before the $200 welcome bonus offer ends!

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.Brittney Myers 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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