Money Management

Once you hit $1 million in retirement savings, it’s time to reevaluate your goals. Read on to learn more about navigating this milestone. [[{“value”:”

Hitting $1 million in retirement savings is a milestone that most people spend decades pursuing. But once you get there, what’s next? First, it’s important to celebrate the fact that you made it to this milestone.

For context, the average 401(k) balance for people in their 60s is just under $600,000, according to data from Empower, a financial services company. So this is no small task, and it’s a direct result of years of hard work. After that, there are some important steps that you should take to ensure that you’re making the smartest money moves, given your sizable retirement savings.

Here are three key things to do once you get to $1 million.

1. Revisit your goals

Getting to $1 million may have been your driving goal for a long time, so now is a good time to look at what else you want from your retirement savings. That could mean getting to $2 million because you’ve decided that you want to travel during your retirement years. Or it may mean recalculating your desired income in retirement to accommodate supporting one of your children. Or you may have developed a chronic illness, so you may want to open a health savings account (HSA).

In other words, since it takes years to get to this milestone, you may have a new set of retirement-related goals to pursue. And the sooner you can start on those, the better.

Knowing what you want your ideal retirement to look like and the factors that could impact it will be vital to creating goals that will bring you closer to that reality. The viability of those goals will depend on your budget. But this is an excellent opportunity to at least understand where you stand and potentially make changes so that you can accomplish those new goals.

2. Consider adjusting your investing strategy

It’s probably taken you a considerable amount of time to get to $1 million in retirement savings. So with this milestone comes an excellent opportunity to reevaluate how your funds are being invested.

The classic advice here is that the closer you get to retirement, the more conservative your portfolio should be. That often means investing a higher proportion of your portfolio in stable options, such as bonds, and less in more volatile investments, like stocks. After all, the less time you have to grow your funds, the more vulnerable your investments will be.

Ultimately, the proportion of investments that you choose will depend on your timeline to retirement. So, depending on your age, you may not have to make any changes to your investing strategy. Still, it’s a good idea to use this time to check that you’re maximizing your earning potential while hedging against losses in your brokerage account.

3. Talk to a financial advisor

Reaching this financial milestone can make your finances more complex, so it’s a good idea to talk to a financial professional to ensure that you’re managing your money in the best possible way, given your circumstances.

Some of the topics you may want to discuss include:

What you want your retirement to look likeHow to reach your various financial goals alongside retirement savings goalsInvesting strategies that make sense for you and your family

Getting to $1 million in retirement savings is a big accomplishment, and you should take time to celebrate that. But it’s also important to take the time to review your financial goals, make necessary changes, and get professional advice if you want to take your finances to the next level.

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Costco has low prices and offers customer care solutions that few other stores have. Learn why you should consider Costco for your next electronics purchase. [[{“value”:”

Toilet paper. Rotisserie chicken. Trash bags and cleaning supplies and paper towels. We all have our list of Costco must-haves. But when it comes to saving the most money, Costco isn’t just a one-stop shop for groceries and household items. It can be the best place to buy your electronics too.

True, true, its electronics section isn’t vast, and you might not find the exact product you’re looking for. But if you’re in the market for new electronics (like a laptop or TV), here are five perks to buying them at Costco.

1. Sales, sales, and more sales

Costco loves to run sales on its electronics. And when I say “love,” I mean at least once a quarter (if not twice), Costco is selling new electronics at reduced prices.

Take, for example, the August Tech Days sale. In this sale, you can find deals on a swath of electronics, including printers, laptops, speakers, security cameras, desktop computers, televisions, and more. For example, a 13-inch MacBook Air is currently selling for $849.99 after a $200 discount. Meanwhile, Best Buy is selling the same laptop for $899.

Now, if you prefer to buy your electronics at Best Buy (whether because it’s closer to you or you’re a part of its Plus program), it will price match Costco. So long as the item is identical, Best Buy will usually match the lower price. This might not work for every Costco promotion — for example, Costco might offer a Shop Card with a purchase — but it could give you another option if you’re not in the mood to shop at Costco.

2. Extended warranties

Costco offers a free extended warranty on most of its electronics. The extended warranty can last up to two years from the purchase or delivery date. Extended warranties apply to most electronics, including televisions, projectors, computers (excluding touchscreen tablets), and major appliances. If your electronics come with defects, this essentially gives you more time to suss them out and get them fixed at no extra cost.

3. A 90-day return window

Costco has one of the most generous return policies of any electronics seller. You get 90 days to return electronics for a full refund. For perspective, Best Buy gives you 14 to 15 days without a Plus membership (14 to 60 days with one) and Amazon gives you 30 days after delivery.

4. Executive members can earn cash back

If you have an Executive membership ($130 a year starting Sept. 1, 2024), you’ll earn 2% cash back on most purchases in Costco stores or online. Yes, that includes electronics. So, if you purchase a $800 laptop, $1,000 television, and $200 printer in the same year, you would earn $40 collectively.

But depending on your credit card, you could earn even more than this. The best credit cards for Costco earn 2% to 3% back. If you get 3% back on your credit card alongside that 2% back, you would effectively earn 5% total on your purchases. For the above example, 4% to 5% back would net you $80 to $100 in cash back.

5. Free tech support

Finally, if you, like me, are not tech savvy, Costco’s got you covered. Costco members get unlimited free tech support over the phone and in-person at your local warehouse. And if you don’t want to talk to someone, you can always read its user-friendly guides online to see if they answer your questions.

All these perks combine to make Costco one of the best places to shop for electronics. It might not have the largest selection of electronics, but for the products that it sells, few places can beat Costco’s combination of price, customer care, and cash back potential.

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.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool has positions in and recommends Amazon, Best Buy, and Costco Wholesale. The Motley Fool has a disclosure policy.

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Many people believe CDs are risk-free and that you can’t lose money — when in reality that’s not the case. Learn the truth about this and other CD myths. [[{“value”:”

There are many misconceptions surrounding certificates of deposit (CDs). Unfortunately, if you fall for common CD myths, you could make the wrong choice with your money and end up regretting it.

You don’t want your hard-earned cash to go to the wrong place because you jump into an investment without knowing the truth about it. That’s why you should forget about these three common CD myths and learn the actual facts.

1. “CDs are risk-free”

Many people think CDs are risk-free because they’re FDIC-insured. But FDIC insurance just protects you if the bank goes under. It doesn’t mean there are no financial risks to putting your money into a certificate of deposit.

The reality is that there are some risks associated with this asset. The biggest risk you take is an interest rate risk. When you buy a CD, you agree to lock your money up for the duration of the CD term. You’ll likely pay a penalty if you take your money out early.

When you lock up your money, you take a risk that you’ll be stuck in a CD during a time when interest rates go up. If rates increase by big margins while you own the CD, you could find yourself earning a much lower return than you could be earning. In fact, if your return is below the current rate of inflation, your money could effectively lose buying power.

You must consider this risk when deciding whether locking money up in a CD makes sense.

2. “You’ll always get hit with penalties if you take money out of a CD early”

There’s also a misconception that every CD charges a penalty for withdrawing funds. There are actually some that don’t. True, there are a smaller number of penalty-free CDs, but there are still good options, including Ally Bank’s no-penalty CD.

If you’re hesitating about buying a certificate of deposit solely because you’re afraid to make a commitment to stay invested, look into no-penalty CDs on offer to find one paying a competitive rate.

3. “You can’t lose money on a CD”

Finally, the last big myth that you need to forget is the idea that you cannot lose money on a CD.

If you withdraw funds early from a CD with a penalty, you could end up with less money than you put into it. Many people don’t realize this because they assume they’ll only lose the interest they earned, not their principal balance.

The reality is that if you take out money shortly after buying the CD, you may not have earned enough interest yet to cover the penalties, and they’ll come out of your principal. This is why it’s so important to make sure you can stay committed to your investment before diving in — or to find a CD that doesn’t charge this penalty.

Once you forget about these myths and learn the truth, you can decide if CD investing is really right for you or if your money belongs elsewhere instead, like in a high-yield savings account. You can earn a similar annual percentage yield (APY) in one (although, it won’t be fixed like a CD’s rate) and have more flexibility with your money. You’ll also have the insight you need to find the right certificate of deposit to add to your portfolio so you can start earning competitive yields to grow your wealth.

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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.Ally is an advertising partner of The Ascent, a Motley Fool company. 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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The fact that my credit score is above 800 isn’t an accident. Read on to see why my score is as high as it is. [[{“value”:”

The average credit score in the U.S. was 715 in 2023, according to Experian, one of three credit reporting bureaus. But a score of 800 or above is considered “exceptional.” And at the risk of sounding obnoxious, I’m proud of the fact that I’ve managed to get my credit score above 800.

When your credit score is above 800, it generally means that it’s easier for you to qualify for a new loan or credit card when you apply. This isn’t to say that you’re guaranteed to get approved. With a mortgage, for example, you may be denied on the basis of not having a high enough income. But in that case, it’s not your credit score that’s holding you back.

A higher credit score also tends to mean snagging a borrowing rate that’s competitive based on what’s out there. For example, the average mortgage rate as of this writing is 6.49%. But you might qualify for a rate of 6.29% with great credit, which could result in lower monthly home loan payments.

But the fact that I’m sitting on a credit score above 800 isn’t an accident. I worked hard to get my credit score to that point. And with the right strategy, you can do the same.

How I got my credit score above 800

If you were to ask me my exact credit score today, I probably couldn’t tell you unless I went and looked it up. That’s because credit scores can fluctuate from one month to the next. But the last time I checked, my credit score was around an 820.

Earlier in the year, it was more like an 810. And frankly, I don’t really care exactly what my credit score amounts to as long as that number is an 800 or above. Once you get to that point, you’re in great shape — period. So how did I get my credit score so high?

I stay current on bills

For one thing, I’ve stayed current on all of my bills and debts through the years. I budget carefully to make sure I can swing my monthly payments, and I either have calendar reminders for when they’re due or I have them set to autopay (this is the case with my mortgage and car payments).

I keep my balances low

I also make a point to keep my credit card balances low. Your credit utilization, which is the amount of available credit you’re using at once, counts a lot toward your credit score. Keeping your credit card usage to 30% of your total spending limit or below can help your score. And the lower, the better. Since I pay my credit cards off in full every month, I’m able to keep my score in solid shape.

I review my credit report often

Finally, I make a point to review my credit report every month. You’re entitled to a free copy from each of the three credit bureaus — Experian, Equifax, and TransUnion — every week. But what I do is select one report from one bureau each month and then rotate. So for example, in January I might check my Experian report, in February I’ll check my Equifax report, in March I’ll check my TransUnion report, and repeat.

The reason for this is twofold. First, if you see a loan or credit card account you don’t recognize on your credit report, it’s a sign that you’ve fallen victim to fraud. And that’s something to address immediately.

But also, it’s not unheard of for credit reports to contain mistakes, some of which could be damaging to a credit score. If you have a late payment listed on your credit report that isn’t accurate, that could be driving your credit score down. So it’s important to check and make sure there’s no false information working against you.

You have the power to boost your credit score

If you’re eager to get your credit score to 800 or higher, I suggest you take the steps I do — pay bills on time, keep credit card balances low, and check your credit report on a regular basis. But there are a few additional ways you can give your score a lift.

If you haven’t had credit accounts in your name for that long, you can ask a parent or sibling to add you as an authorized user to one of their credit cards. That way, their positive payment history will reflect well on you. And also, this might help you increase the average length of your open accounts, which is another factor that could help your score improve.

You can also ask your credit card issuers for a higher spending limit to lower your credit utilization. But this strategy only works if you don’t increase your credit card spending, so be careful here.

All told, a credit score over 800 could do you a lot of good. It pays to take steps to raise your score, but don’t get discouraged if a boost doesn’t happen right away. Improving your credit can take time. But if you’re patient, you might soon enough get to a place where you have more options for borrowing money affordably.

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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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Want or need a new TV? Read on to see why you may want to get your next one at Costco. [[{“value”:”

A TV isn’t exactly the sort of thing you buy every week. So if you’re gearing up to purchase one, it’s important to go in with confidence that you’re getting a good deal.

To that end, it pays to look to Costco for your next TV. Not only is Costco known for its low prices, but you’ll enjoy these perks when you buy a TV there.

1. Cash back on an Executive membership

Costco’s Executive membership costs twice as much as a basic one (starting Sept. 1, $130 and $65, respectively). But the upside is that the Executive membership gives you 2% cash back on your Costco purchases. And TV purchases count. In fact, it pays to factor in your Executive membership cash back when comparing Costco’s TV prices to those of its competitors.

Say there’s a Costco TV you’re looking to buy for $1,000, but a competitor has it available for $995. A $1,000 purchase with your Executive membership will put $20 back in your pocket. So in this case, Costco’s offer is better, even though it may not seem like it on paper.

2. Free tech support

The last thing you want is to shell out a decent chunk of money for a new TV only to have trouble setting it up. The nice thing about buying TVs and other electronics from Costco is that you’re eligible for free tech support. That could spare you a world of aggravation, not to mention prevent you from making a mistake that might damage your new purchase.

3. A free second-year warranty

When you spend a lot on a TV, you want to make sure you’re getting your money’s worth. And that means you don’t want your TV to stop functioning after 13 months, right when it’s out of warranty. At Costco, all electronics purchases come with a free second-year warranty. That extra protection could give you more peace of mind for such an expensive purchase.

4. A 90-day return window

Most of the items you buy at Costco can be returned at any time. Costco does limit electronics returns to 90 days. Still, that’s a more generous policy than what many other retailers offer. If you buy a TV on Amazon, for example, you only get 30 days to return it if it doesn’t work out.

Should you buy your next TV at Costco?

Costco is known for its competitive prices, but it doesn’t always have the lowest price on the specific items you’re looking for. For this reason, it’s important to shop around when you’re making a big purchase like a TV.

If you find a much better deal at another store, then it probably makes sense to jump on it. Even with free tech support, Executive member cash back, and an extra warranty, if Costco is selling a TV for $1,000 and a competitor has it for $800, that’s too good a discount to pass up. But if the price is pretty similar, then consider the benefits of buying a TV from Costco.

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.

Click here to read our expert recommendations for free!

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. The Motley Fool has positions in and recommends Amazon and Costco Wholesale. The Motley Fool has a disclosure policy.

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CD investors have benefitted from high rates, but this isn’t actually good news. Here are two truths to reckon with if you want to invest in CDs. [[{“value”:”

In the post-pandemic era, CD investors may be feeling as if they’ve had it pretty good. Rates have been upward of 5.00% for the first time in a long time. It’s even possible to get short-term CDs paying great rates so you don’t have to commit to locking up your money for years to earn high yields.

But, while this picture may seem like a rosy one, there are actually two harsh realities that those investing in CDs should face.

1. CD rates are only high because of surging inflation

There’s a very unpleasant reason why CD rates are so high and have been for a while.

Since the COVID-19 pandemic, inflation has surged and hit multi-decade highs. In 2022 alone, the inflation rate was a whopping 8.00%, which is all but unheard of in the modern era. In fact, until 2021, when inflation hit 4.7%, the highest inflation rate since 2000 was just 3.8%. That happened the year of the 2008 financial crisis.

Inflation means the price of everything goes up and the buying power of your savings goes down. It doesn’t do you much good to earn a 5% return on a CD if everything you buy is 8% more expensive than it was before. Sure, you have more money on paper — but it buys you less.

Inflation is especially bad news for savers because it’s unlikely that all of your savings is going to earn a return on investment that keeps pace with it. Investors in CDs would be far better off if rates were a lot lower but inflation was, too.

2. You’re giving up liquidity for very little benefit

Sadly, those who are investing in CDs are giving up a lot of liquidity and taking on a lot of interest rate risk for very little gain.

When you put your money into CDs, you have to keep it locked up for the duration of the CD’s term. You can’t access it. If interest rates go up while you’re locked in, you can’t take advantage of the new better rates. You’re tying your money up and, in recent years, you’ve gotten very little benefit for doing so.

That’s because, right now, high-yield savings accounts are offering comparable rates to CDs or, in some cases, better rates than CDs. Normally, CDs provide higher returns to convince you to commit your money, but that’s not happening right now.

Since you can get the same great returns on a savings account without giving up your ability to use your money when you want to, there’s really very little benefit at all to investing in CDs.

The only upside is that you get to lock in the high rates for the duration of the CD term. But that’s not such a great benefit right now because it’s mostly short-term CDs offering ultra-competitive returns anyway.

CD investors need to face these two harsh truths. For most people, it would be better for CD rates to fall and inflation to return to more normal levels — and it would likely be a smarter financial choice to stick with high-yield savings accounts in the meantime.

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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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