Money Management

Interest rate cuts are finally near. Read on to see what financial move it pays to make as soon as possible. [[{“value”:”

Toward the end of 2023, it became obvious that inflation was cooling and that interest rate hikes were no longer an appropriate move from the Federal Reserve. In fact, late last year, the Fed began signaling it would cut interest rates in 2024.

But we’ve reached the end of August, and so far, rate cuts haven’t happened. And that’s left a lot of consumers beyond frustrated. Since the Federal Reserve’s benchmark interest rate is sitting at a 23-year high, the cost of borrowing is elevated across the board. Consumers are eager to see interest rates fall because it should lead to less expensive mortgage, auto loan, and credit card costs.

Thankfully, consumers may not have to wait much longer for relief. Last week, Federal Reserve Chair Jerome Powell said, “The time has come for policy to adjust.” And it doesn’t take a whole lot of reading between the lines to ascertain that the Fed is most likely planning to cut interest rates during its upcoming Sept. 17-18 meeting.

That’s good news for people who have been waiting for rates to fall before borrowing money. But it’s not the best news for savers.

Savers should act quickly to benefit from higher rates

Although the Fed’s interest rate hikes have negatively affected consumers looking to borrow money, they’ve benefited people with money in the bank. Those with extra cash have been able to take advantage of record-high savings account and CD rates.

But with the Fed’s first planned rate cut being right around the corner, the days of 5% CD rates could soon be behind us. If you have a pile of cash sitting in a savings account, you may want to move some of it into a CD before rates start to fall.

To be clear, you shouldn’t take money out of savings that’s earmarked for emergency expenses. Your emergency fund should always sit in savings where it’s easily accessible, because tapping a CD before its maturity date typically results in a costly early withdrawal penalty.

But if you have money in savings beyond what you need for your emergency fund, then now’s a great time to open a CD. If you wait much longer, you may find that you’ll have to settle for a lower rate.

Of course, one thing you should know is that just as the Fed raised interest rates gradually throughout 2022 and 2023, so too are rate cuts likely to be gradual. CD rates shouldn’t plummet overnight, so there’s no need to panic if you need more time to open one.

The point, rather, is that if you have the cash on hand, you might as well lock in a CD APY at 5.00% now, as opposed to waiting a month or two and possibly only getting 4.50% or less.

A CD ladder might be your best bet

If you’re eager to open a CD before interest rates fall, you may be inclined to choose a 12-month term. In many cases, terms of 12-months and fewer are where you’ll find the best CD rates today. But an even better bet could be to set up a CD ladder.

With a CD ladder, instead of putting all of your money into a single CD, you split it into several CDs with different maturity dates. The goal is to free up some of your money at staggered intervals so you have better access to your cash. Plus, you can use a CD ladder to lock in today’s strong interest rates for a longer period of time.

Let’s say you have $5,000 to put into a CD. Instead of opening a single CD, you could split that sum into four $1,250 deposits and open CDs with these terms:

Six months12 months18 months24 months

This way, you get access to some of your cash every six months. And also, the 18- and 24-month CDs guarantee you a higher return on your money for a lengthier period of time.

You may also decide that you’d rather have shorter gaps between when your CDs mature. In that case, you could go with four CDs that mature in:

Three monthsSix monthsNine months12 month

There are different setups you can play around with, depending on your financial situation and comfort zone. Either way, if you have the money to put into a CD, then you should act right now. Waiting isn’t terrible if it’s a necessary thing to do. But if it’s not, then you might as well score the best CD rate you can before cuts start.

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You don’t need to spend a fortune at Costco to bring home quality products. Read on for one writer’s favorite cheap Costco picks. [[{“value”:”

When I go to Costco, I try my best to load up on wholesome foods like vegetables, fruits, and proteins. But I can admit that my snacky side tends to get the better of me.

The good news is that many of my favorite Costco treats are relatively inexpensive given the amount of product I’m getting. Here are a few favorites of mine that cost under $12.

1. Kirkland Signature Peanut Butter Filled Pretzel Nuggets

I enjoy almost anything with peanut butter in it. And if you like the idea of pretzels stuffed with peanut butter, then you should try this Kirkland creation.

The online price for a 55-ounce jar is $11.99. But Costco almost always offers lower in-store prices because when you order online, the cost of shipping and handling is built in.

2. Kirkland Signature Cashew Clusters

I’m a fan of snacks that pack a little sweetness in with saltiness. And these cashew clusters fit that bill. They’re loaded with almonds and pumpkin seeds for added crunch, and I find that they give me a nice burst of energy when I need one.

A two-pound bag is $10.99 online, which means you’re looking at an even lower price in stores. But if you’re undergoing dental work, these clusters may not be ideal for you, because they really go heavy on the crunch factor.

3. Kirkland Signature Sweet Heat Snack Mix

I tend to buy nut-based snacks because I feel they’re a bit less junky than pure sugar and I like the addition of a little protein to my day. This sweet heat mix features barbecue-flavored coated almonds, seasoned cashews, honey roasted sesame sticks, corn nuggets, and honey glazed pecans.

I don’t find it very spicy, but if you’re sensitive, you may want to pass. A 24-ounce bag costs $10.99 online.

4. Kirkland Signature Creamy Almond Butter

In my world, almond butter is more of a snack than a central meal ingredient. I like to spread it on apple slices for a midday pick-me-up.

A 27-ounce jar of Kirkland almond butter costs just $7.49 online. And it’s made in a peanut-free facility. So if you can’t have peanuts, this may be safe for you to consume.

5. Kirkland bakery muffins

On Saturday mornings, we eat muffins in my house. It’s my way of rewarding everyone for getting through the work or school week.

A 12-pack of Kirkland muffins costs $9.99 at my local Costco. Because prices can vary by store, you might pay a bit more or less.

But if you’re thinking these are boring old muffins, well, they aren’t. They’re fluffy and moist, and you can choose from different varieties so you’re not stuck with 12 of the same type. My personal favorites are blueberry, coffee cake, and pumpkin streusel, but the latter two are only available at certain times of the year.

It pays to load up at Costco — but exercise caution

You don’t necessarily have to spend a fortune to buy delicious, quality items at Costco. And all of these products are a great deal, given the taste and quantity.

But remember, the danger of buying food in bulk is throwing some of it away. That’s the opposite of saving money. So if you usually don’t snack on nuts, you may not want to spring for the Sweet Heat mix. And if you can’t remember the last time you consumed almond butter, then buying a bulk haul of it probably isn’t necessary.

However, if you can see yourself enjoying and finishing any of the products above, then I highly recommend them. Oh, and the muffins freeze fabulously. So don’t assume you have to gobble up 12 giant ones in a single weekend.

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

If you’re shopping with a debit card, you could be missing out on hundreds or even thousands of dollars each year. These versatile credit cards offer huge rewards everywhere, including Costco, and are rated the best cards of 2024 by our experts because they offer hefty sign-up bonuses and outstanding cash rewards. Plus, you’ll save on credit card interest because all of these recommendations include a competitive 0% interest period.

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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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The Federal Reserve may drop interest rates soon. Find out why buying now might be a good idea for some investors. [[{“value”:”

In March 2022, the Federal Reserve raised interest rates for the first time since 2018 in an effort to control rising inflation, which was taking its toll on the economy. This also meant that mortgage interest rates went up, but so did the interest rates on certificates of deposit (CDs) and high-yield savings accounts.

But rates may finally be dropping soon. After the Federal Open Market Committee meeting in July of this year, many folks expected the Fed to lower interest rates. While that didn’t happen, Federal Reserve Chair Jerome Powell did say he thinks the time to lower interest rates is “approaching.”

Here’s why lower interest rates make now an excellent time to consider longer-term CDs – but not super long term.

Interest rates are currently high, but may drop soon

Let’s look at what CDs currently earn and consider whether now might be a good time to invest.

A 5-year CD from Discover® Bank currently earns you 3.60% in interest. At LendingClub, a 5-year CD earns 4.00% interest, while Ally is offering 3.90% interest rates. This is not super high, but let’s look at 18-month rates: Ally offers 4.25% interest for an 18-month CD, while Discover® Bank offers 4.25%, and LendingClub offers 5.00% interest. That’s decent compared to the 0.75% average for a 1-year CD in 2019.

The Fed has already indicated it is likely to lower interest rates soon, which means CD rates will likely follow.

Note: 5-year CD rates are lower than shorter-term rates, likely because many people expect interest rates to fall in the next few years. This is known as a “yield curve inversion,’ which happens when longer-term rates are lower than short-term, and it often occurs before shifts in economic conditions.

Is now the time to buy longer-term CDs?

Now is a good time to consider longer-term CDs. But the inverted yield curve means buying 5-year CDs isn’t the smartest move. Instead, look at 12- and 18-month CDs and consider locking in that higher interest rate before the Fed lowers interest rates.

Whether it lowers rates at its next meeting in September or later in the year is yet to be seen. There’s also no way to predict how much the rate may go down, so make sure to consider all your options and your financial goals.

CDs: The good, the bad, and the ugly

CDs can be a hot-button topic. Some people love them; some people hate them. That’s because there are quite a few pros and cons. For starters, CDs are low risk — you lend the bank your money, and it promises to give it back with interest in however many months you agree to.

For example, if you deposit $10,000 in a 12-month CD at 4% interest, you’ll make around $400 in one year. Depending on compounding frequency, the return might be slightly higher. However, if you need to pull that money out before the 12 months are up, you’ll be penalized.

CDs also earn a lower rate than investing in the stock market. Let’s say instead of putting that $10,000 in a CD, you invested it. The average stock market return between 2012 and 2021 was 14.8%, which means that $10,000 could grow to $11,480.

Keep in mind that the stock market can be volatile, and past returns don’t indicate future performance. Instead of picking one or the other, it’s a good practice to balance your investments with high-risk and low-risk investments — meaning both CDs and stocks.

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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.Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. Ally is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.

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Discover high-paying remote roles across various industries. Here’s how you can use your skills to upgrade your career. [[{“value”:”

If your current job has you fantasizing about better pay without the need to ever change out of your pajamas, then you’ve clicked on the right article. The era of remote work is not just a phase — it’s a fully fledged revolution with big implications for your checking account.

And with salaries soaring above $80,000, it’s time to polish up that resume and consider a position like these five that let you earn a pretty penny from the comfort of your own home.

1. Human Resources Business Partner

Median salary: $90,492

As an HR business partner, you’ll be diving deep into strategies that foster a vibrant work culture and propel the company forward. If you’re passionate about making a tangible impact on people’s lives and have a knack for aligning business goals with human resources initiatives, this role is tailor-made for you.

From driving employee engagement to designing impactful HR initiatives, you’ll be at the heart of ensuring the company grows and thrives.

2. Data Analyst

Median salary: $84,333

You’ve got a knack for spreadsheets. You use them to help plan your most tedious and important life decisions. Why not put those skills to practice? Data analysts provide companies with valuable insights gained from analyzing a treasure trove of important information. It’s a creative and logical process of helping companies make better decisions.

You’ll rub virtual elbows with multiple teams playing an important role in the company’s overall trajectory. Turn your home office into a command center for innovation. Plus, the field is in demand and has ample room for growth.

3. IT Project Manager

Median salary: $82,186

Do you thrive on checklists and are passionate about turning chaos into order? IT companies everywhere need project managers to ensure new clients feel like old friends and projects stay on time and on budget. You’ll be the welcoming committee, the guide, and the go-to problem solver who keeps everything running smoothly and ensures everyone’s grinning with satisfaction.

Forget about boring boardrooms; your meetings will have all the comforts of home because, well, you’ll probably be at home. If you’re the type who gets a thrill from setting up systems and ticking off tasks, this could be the dream job where you actually look forward to Mondays.

4. Marketing Manager

Median salary: $120,724

A stellar marketing manager is a natural trendsetter, mixing superb communication skills with a flair for creativity and strategic thinking. You’ll juggle campaigns and deadlines with ease while staying ahead of the curve and adaptable to the latest trends and market shifts.

With a talent for turning insights into action and a keen eye for detail, you’ll craft messages that shine and make sure every narrative hits the mark. Essentially, you’re the marketing maestro who keeps the buzz going and ensures everyone’s excited about the brand.

You’ll lead digital campaigns, webinars, and the occasional virtual event, all aimed at driving revenue faster than you can drive through Starbucks. If you can handle a spreadsheet and your social media feeds, this could be the work-from-home gig that pays the bills and pads your savings account.

5. Social Media Manager

Median salary: $116,400

Ready to tweet, post, and share your way to success? Companies everywhere are on the hunt for social media managers to captain their online presence. You’ll be the voice of an organization, the builder of communities, and the identity of online brands helping to turn impactful stories into Instagram gold.

This role isn’t just about keeping up with the hashtags; it’s about building a community that bridges tech giants with tomorrow’s tech leaders. If you’re a wizard at crafting engaging content and your idea of a great day involves analyzing tweet performance metrics, welcome to your dream job.

These are not just remote jobs; they’re golden tickets to career satisfaction and wiggle room for budgeting with a side of life balance. So, update your resume, practice your Zoom smile, and get ready to transform how you work in ways you probably never imagined while stuck in office cubicle land. Who says you can’t have your cake and eat it in your pajamas, too?

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

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I decided to lock in a high rate on a 5-year CD instead of leaving all my cash in savings. Find out how much more I stand to earn in interest by doing so. [[{“value”:”

We’ve reached a pivotal time for making decisions when it comes to our savings. With the Federal Reserve expected to begin dropping the federal funds rate next month and predictions that it will fall approximately 2 full percentage points through next year, it could be now or never for folks looking to lock in high APYs.

The best high-yield savings accounts are offering APYs upward of 5.00% right now. Sounds pretty great, right? The problem is that those rates are variable and can change at any time. They tend to move in tandem with changes to the federal funds rate, so once that rate begins to drop, so too will your savings APY.

That’s why I recently made the decision to lock $15,000 of my savings into a 5-year CD. By taking advantage of one of the best certificate of deposit (CD) rates available now, I’m guaranteed my APY until the end of my CD term, regardless of how rates fluctuate during that time.

Let’s take a look at how my finances stand to benefit from my decision.

High-yield savings over the next five years

Without a crystal ball, we have no idea what savings account rates will look like in five years’ time. But we do have the Fed prediction of a 2-point drop by 2026.

So starting with my current savings rate of 5.15%, using that prediction, and assuming a continued gradual drop thereafter, we might see interest earnings similar to the following:

Don’t get me wrong, this isn’t a bad number to see your savings balance grow by over the course of five years without lifting a finger. But again, these are just estimates, and if rates fall further or faster, you can expect to earn significantly less.

5-year CD earnings

As it stands, I was able to lock in a 5-year CD APY of 4.30%. Let’s take a look at my guaranteed interest earnings with this account:

After five years untouched in my CD, my $15,000 deposit will balloon to $18,514.53. That’s a difference of $686.36 compared to our savings scenario above.

And that’s guaranteed money. I don’t have to keep a close eye on rates over those five years or worry about moving my savings to a higher-paying account every time my current savings account rate takes a dive. No muss, no fuss!

Some stipulations

Despite the guaranteed rates, investing in CDs isn’t for everyone. Consider keeping your money in high-yield savings or even in a brokerage account if either of the following apply to you.

If you’ll need access to your cash in the next few years

Savings rates won’t bottom out overnight. If you’re going to need easy access to your money for emergencies or even planned expenses in the short term, then a CD is not the ideal place for your funds. Early withdrawal penalties will quickly eat up your interest earnings if you must break your CD term early.

You have a longer investing time horizon than five years

If your finances are in a solid place and you know without a doubt you won’t need your extra saved cash because you have a separate emergency fund and sufficient sources of income otherwise, then consider putting your money in the stock market instead.

Sure, 4.30% APY sounds pretty good for the next five years with the forecasted rate decreases on deck. But historically speaking, the S&P 500 has seen gains of around 10% over the long term, far outpacing even the best long-term CD rates.

Why be content with an ending balance of $18,500 in a CD when you could have over $24,000 after five years in a brokerage account, nearly $39,000 in 10 years, and over $100,000 in 20 years with 10% average returns?

No clear-cut solution for every saver

Consider your personal circumstances, do some quick, back-of-napkin math (or use a handy online calculator to aid you), and determine which type of account is best for your savings.

Short-term savers will likely be best served by savings accounts, while long-term savers should err toward investing in stocks. But for those looking for a solid mid-term investment, ding ding! — CDs could be the winner.

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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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Ideally, you’ll start saving at a much younger age for retirement — but it’s better to start late than never to get started at all. Learn more here. [[{“value”:”

If you are 50 and haven’t saved anything for retirement yet, you’re undoubtedly in a frightening place. You’re only a decade and change away from giving up work and seeing an end to your paychecks and you don’t have a financial cushion to fall back on.

The big question you’re probably asking right now is whether all hope is lost and whether 50 is really too old to start saving for your later years. The good news is that, in most cases, it’s not — especially if you’re willing to buckle down and get serious about funneling funds to your brokerage account or 401(k) plan.

Starting to save earlier is always better

First things first. It’s always better to start saving for retirement sooner rather than later. The sooner you start, the more time you have to make contributions and the more time those contributions have to grow. Starting a decade earlier gives you the chance to put compound interest to work for you in powerful ways.

To understand how important early saving is, look at the table below. It shows how much you’d have to invest monthly to end up with $500,000 saved by age 67 — but based on different ages when you got started, assuming a 10% average annual return.

There’s a huge jump up here once you get to age 50 because you have so little time left for your investments to earn returns that are reinvested and work for you to grow your money. Without help from your growing investments, you have to put much more money into your retirement plan.

It’s never too late to start saving

Now, if you’re looking at that table, you can see that it would have been better to start earlier. But you can’t invent a time machine (and if you could, you probably wouldn’t have to worry about retirement savings anymore).

While you’ll have to work harder now, it’s never too late to get serious about becoming more financially secure as a senior. The best time to get started was decades ago, but the second best time is right now, today, so you don’t lose any more time.

With just a few short years to retirement, you’ll need to do a few things to try to get back on track. Here are your best moves.

Make a plan to work for as long as possible

The longer you stay at work, the longer you can delay claiming Social Security. Waiting until 70 raises the monthly income you get to the maximum amount possible. Your standard benefit could be as much as 24% higher at 70. You can also keep contributing to your 401(k) as you work into retirement, so your retirement savings balance will continue to grow.

Make a plan to save as aggressively as possible

Since you have some catching up to do, you’re going to have to save a lot each month. Aim to do that by increasing your income when possible. Work overtime or take a side job solely to find extra funds to save for retirement.

Scale down expectations

You may not be able to live in the most expensive city in the U.S. if you’ve saved very little or nothing for retirement by age 50. But you can still have a comfortable life in a lower cost-of-living area — especially if you’re able to downsize your home to buy a cheaper one and doing so gives you some extra cash to invest.

Don’t wait another day if you’re 50 and starting to worry about retirement savings. Take action today to start contributing to your account and avoid going broke in your golden years.

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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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