Money Management

A crucial grant or loan could make all the difference for your small business. Explore these options and apply today. [[{“value”:”

In the vast ocean of funding opportunities, small businesses might find themselves adrift. However, some specific grants and loans cater to various niches and needs, often overlooked but potentially game-changing for the right business. Here, we explore three categories of such financial aids, providing examples and guidance on how to identify the best fit for your business.

1. Federal innovation grants for technology and research

For small businesses pioneering in technology, science, and research, federal grants are designed to support high-risk projects with high-impact potential. These grants support ventures that may be too nascent or speculative for traditional investment avenues. Here are a few examples:

Blueprint Medtech Small Business Translator Grant: This grant supports small businesses creating medical devices to treat nervous system disorders, covering activities from prototype development to FDA approval processes.National Institute of Health Grants: Tailored for small businesses involved in biomedical technology, especially those addressing challenges like COVID-19.Small Business Innovation Research Program (SBIR) & Small Business Technology Transfer Program (STTR): These programs encourage small businesses to engage in federal research/R&D with the potential for commercialization. STTR sets itself apart by requiring small businesses to collaborate with research institutions.

To find the right federal innovation grant, start at Grants.gov, which provides a comprehensive database of available funds. It’s crucial to match your project’s focus with the grant’s objectives and ensure your application details how the project aligns with the federal goals.

2. Microloans and grants for minority and underrepresented entrepreneurs

Microloans and grants tailored for minority and underrepresented entrepreneurs aim to level the playing field by providing necessary financial assistance and support to those who may face barriers entering the mainstream economic landscape. These funding opportunities are crucial for promoting diversity and inclusivity within the small business community. Here are some examples:

Amber Grant Foundation: Established by WomensNet in 1998, this foundation offers grants to women entrepreneurs. It includes monthly grants of $10,000, two annual grants of $25,000, quarterly startup grants of $10,000, and quarterly nonprofit grants of $10,000. Plus, there are 12 Business Category Grants of $10,000 each month, providing a wide range of opportunities for women in various industries.Accion Opportunity Fund: This fund provides loans and resources to underserved entrepreneurs, including minorities, women, and those from low-income communities. The fund focuses on microloans that can help purchase inventory, fund operational expenses, or expand the business.Kiva U.S.: Kiva offers crowdfunded microloans to entrepreneurs who lack access to traditional banking systems. Loans on Kiva have zero interest, which is a significant advantage for startups and small businesses trying to minimize costs.

Entrepreneurs seeking microloans should connect with local nonprofit lenders and community development financial institutions (CDFIs) that administer these programs. These organizations often provide additional business development services, helping borrowers grow and manage their businesses effectively.

3. Specialized local grants for targeted community needs

Local grants often address specific community needs and priorities, such as improving accessibility, supporting local economic development, or enhancing sustainability. These grants can be particularly accessible for small businesses committed to community involvement. Here are a few examples:

San Francisco Accessibility Grant: This grant offers financial assistance for businesses to improve facility accessibility and meet ADA compliance needs.Texas Enterprise Fund (TEF): Aims to attract new business projects to Texas, offering grants based on job creation and capital investment that benefit the state’s economic landscape.

Small business owners should start by checking with their local chamber of commerce, city or county government, and economic development corporations to explore localized grant opportunities. These entities often have information on grants tailored to specific local challenges or objectives.

When searching for the right grants or SBA loans, it’s essential to understand the specific requirements and objectives of each funding source. Tailor your application to highlight how your business aligns with these goals.

Keep an eye on the deadlines and prepare your applications well in advance. By carefully selecting and applying for these funding opportunities, small businesses can secure the crucial support needed to propel their growth and achieve their strategic objectives.

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Retiring on a cruise can provide a unique, cost-effective lifestyle. Here’s what you need to know about spending your golden years at sea. [[{“value”:”

As the cost of retirement and assisted living in the U.S. skyrockets, many people are searching for creative, cost-effective alternatives to traditional retirement plans. One such unconventional option gaining traction is retiring on a world cruise.

While images of endless ocean horizons and exotic ports are enticing, the real appeal lies in the surprisingly manageable costs. But is this seafaring lifestyle the right choice for you? Here are some crucial aspects to consider.

Comparing costs

Retirement homes in the U.S. can be prohibitively expensive. The average monthly cost for assisted living is $4,500 per person. In stark contrast, Angelyn and Richard Burk found they could live on a cruise ship for as little as $43 per day — cheaper than maintaining their previous home in Seattle.

This discovery led them to retire early and sell their home to fund their new lifestyle on the high seas. Like many others, they have found that with smart planning — like taking advantage of loyalty points and seasonal sales — living aboard a ship can be less of a burden on your personal finances than traditional retirement options.

Lifestyle at sea

Living on a cruise ship means embracing a lifestyle centered around experiences and mobility. It’s a dramatic shift from a land-based existence, where possessions and a fixed address create a sense of stability.

For retirees like the Burks and the Houchens (who are from Virginia), life on a cruise ship has replaced the typical retiree’s schedule with an ever-changing itinerary of global destinations. This lifestyle isn’t just about seeing the world — it’s about immersing oneself in diverse cultures and communities without the burdens of household maintenance or the monotony of daily routines.

Health and accessibility

While living on a cruise ship may sound like a permanent vacation, there are practical considerations to take into account, particularly related to health and accessibility. Cruise ships are equipped to handle routine medical issues, but access to specialized care can vary significantly depending on the ship and the itinerary.

What’s more, as one ages, the need for regular medical services might increase, requiring more than a ship’s infirmary can offer. Prospective cruise retirees must carefully evaluate their health needs against the medical services available at sea.

Social considerations

Another important factor is the social environment. Ships provide a built-in community, offering retirees an instant network of peers and activities. However, the transient nature of passengers could pose a challenge for those seeking deep, long-lasting friendships. The continuous flow of new faces might be invigorating for some but could lead to feelings of isolation for others. Plus, being away from family and traditional support systems can be a significant drawback for many retirees.

Legalities and logistics

Retiring on a cruise ship also involves complex logistical and legal considerations. These include managing taxes, voting, and maintaining a legal address. Moreover, continuous travel involves intricate planning, especially when it comes to visas and residency regulations in visited countries. Retirees must be prepared to handle these complexities or seek professional assistance to ensure compliance and smooth sailing.

Planning to retire on a cruise ship offers an alluring blend of adventure and practicality, potentially more affordable than traditional retirement options while providing a dynamic and enriching lifestyle. However, it is not without its challenges. It requires adaptability, good health, and a love for continuous change.

Retiring at sea could be a perfect fit for those who dream of spending their golden years traversing the globe. But it’s crucial to consider all angles and possibly dip your toes in with extended cruises before taking the full plunge into this unique retirement lifestyle.

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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. The Motley Fool has positions in and recommends Visa. The Motley Fool recommends Discover Financial Services and Flow. The Motley Fool has a disclosure policy.

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Is it worth the extra money to fly business class? Not always. Here are some situations where a business-class upgrade may be worth the additional cost. [[{“value”:”

Since business-class flights can be costly, it’s not financially possible for most travelers to fly business class every vacation. However, occasionally splurging on business-class tickets may be an option to consider.

Spending extra money for a more enjoyable or comfortable fight experience could be worth it.

Should you upgrade your ticket for an upcoming flight? Here are some situations where paying a higher ticket price may make sense — as long as the price tag fits your budget.

Improved comfort on long-haul trips

If you have a two-hour flight taking you a few states away, you’ll likely want to save your money and avoid upgrading your ticket. Why? Premium seats on aircraft used for short-haul routes don’t differ much from those in the economy-class cabin. You may get a more comfortable seat and slightly more legroom, but the cost to upgrade likely isn’t worth the perks provided.

But if you’re taking a long-haul overnight flight to another country, consider upgrading your ticket. Many planes used for these routes have more comfortable business-class seats than those in economy class. The premium seats are more spread out, which can give you more privacy, and you may get a lie-flat seat, so you can rest during your journey.

Springing for a business-class ticket may be worth it for travelers who value increased comfort and want to sleep during a long or overnight flight.

You can benefit from priority privileges and increased baggage allowance

Most airlines extend priority privileges and other benefits like a higher checked baggage allowance to travelers flying on business-class tickets. Priority check-in and security could make your airport experience less stressful. Priority boarding allows additional time to get situated before the plane takes off. These perks can be a stress reducer for some travelers.

Many business-class tickets allow flyers to bring additional checked bags for free. If you’re going on a trip that requires you to pack more, this may be a benefit worth the ticket upgrade. Many airlines keep increasing their checked bag fees, and these extra costs apply to each one-way flight, so if you’re not part of team carry-on only, this is a valuable perk.

Before upgrading to a business-class ticket, consider the total cost and whether benefits like this are valuable. Every traveler has different needs and expectations, so some perks may be worth the extra money to some — but a waste of money to others.

Make a trip extra special

Another situation that may make upgrading to business class worth it is when you’re planning a special trip. Whether you’re celebrating an occasion, just underwent a significant life change, or are treating someone you love to an adventure of a lifetime, you may be looking for a way to make the trip more memorable.

In this case, spending more on business-class tickets may be a good idea. You and anyone accompanying you will be shown extra attention, and the additional perks included with your ticket will make the entire travel experience more enjoyable.

Just make sure you review your finances before spending more on premium tickets. It’s never a good idea to go into credit card debt by paying for travel purchases you can’t afford. You can save up for business-class tickets well before your trip starts. Keeping your vacation fund in a high-yield savings account will allow you to earn interest.

Consider your travel style and budget

Only you can decide if the additional cost of premium airfare is worth it. Before you rush to spend more on a business-class ticket, consider your travel style and financial situation.

If you can afford a more expensive ticket and will benefit from the experience, go for it. But there are times when the upgrade cost is likely not worth it.

When booking your tickets, consider using a travel rewards credit card. You can earn rewards when you swipe your card. Many travelers use these credit cards to earn rewards and redeem them for flights and hotels to make future trips more affordable. Want to add a travel credit card to your wallet? Check out our list of the best travel credit cards to learn more.

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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.Natasha Gabrielle 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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For some, it makes sense to convert retirement savings to a Roth IRA. Check out a few factors to consider if you want to do it after retirement. [[{“value”:”

If you’re anything like me, you’ve run across several articles discussing how smart it is to convert retirement savings to a Roth IRA after retirement. As if planning for retirement is not intimidating enough, now we’re being given another piece of advice that may or may not be right.

Here, we’ll look into why anyone would want to convert their retirement savings to a Roth IRA and how to know if it’s a good move for you.

Roth IRAs are attractive

I get where the experts are coming from. Roth IRAs are pretty fantastic retirement vehicles, for a few reasons. When we fund a traditional IRA, 401(k), or other retirement account, it’s typically funded with pre-tax dollars. In other words, we don’t have to pay taxes on the money we contribute to these retirement accounts until we retire and withdraw the funds.

Let’s say you earn $50,000 a year and contribute $10,000 to a pre-tax retirement fund. That means you only have to pay taxes on $40,000. It’s a great money-saving strategy for the here and now. However, Uncle Sam will want his cut based on our tax bracket when we retire and begin withdrawing the money.

It’s different with a Roth IRA because it’s funded with after-tax dollars. We paid taxes on the money when it was originally earned, so we don’t have to pay taxes on it again when we retire and make withdrawals.

Avoiding RMDs

In addition, Roth IRAs are exempt from required minimum distributions (RMDs). Due to RMDs, those aged 73 and older must withdraw a specific amount from their retirement account each year. There’s no “letting it ride” to leave the money to beneficiaries or ignoring the account while it continues to grow. The amount a retiree must withdraw is based on a formula that divides their retirement fund balance by a life expectancy factor.

For anyone who counts on these brokerage account withdrawals each year to cover retirement expenses, it’s not a big deal, especially if it doesn’t push them into a higher tax bracket. However, RMDs can be a burden to retirees with plenty of money to spend and no need for more. In a nutshell, they must make a withdrawal, pay taxes on it, and then decide what to do with the funds.

Because Roth IRAs are exempt from RMDs, the retiree gets to decide whether to withdraw. If they want, they can leave every penny of the investment in place, allowing it to continue growing.

A Roth IRA is an attractive investment for anyone who’s concerned about paying more taxes than is absolutely necessary in retirement and for those who want to decide if and when to make a withdrawal.

When conversion doesn’t make sense

While converting retirement funds into a Roth IRA makes sense for some people, it would be the wrong move for others. Here’s how to know where you stand:

You earn too much to contribute: For the tax year 2024, the most you can contribute to a Roth IRA under the age of 50 is $7,000. If you’re 50 or older, you can contribute a total of $8,000. However, there are limits on how much you can earn to make the full contribution. For 2024, single filers must earn less than $146,000, and joint filers must earn less than $230,000. If you earn more, the amount you may contribute decreases, eventually phasing out. Still, you have the option of investing in a traditional IRA instead.You expect to earn more in retirement: If you’ve planned so well that you expect to earn more in retirement, you’re better off paying the taxes due now while you’re still working and in a lower tax bracket.If you’re going to need every penny available in retirement: If you’re concerned about paying bills after you retire, you may want to consider whether it makes sense to pull money from a traditional retirement account, pay taxes on it, and reinvest it in a Roth IRA.

Here, we’ve focused on the wisdom of converting after retirement. The situation may be totally different if you choose to make the conversion in the years leading up to retirement. Your best bet is to decide whether you come out ahead paying taxes now or later in life. As with every major financial decision, it pays to speak with a financial advisor who can help you weigh your options.

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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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Having poor credit could make it difficult to rent a home. But you may have more options than you’d think in that scenario — read on to learn more. [[{“value”:”

When you apply for a credit card or loan, the issuer or lender checks your credit to make sure it’s not taking on too much risk in the course of giving its approval. Similarly, when you apply to rent an apartment, the landlord may perform a credit check to make sure you’re a tenant who’s likely to keep up with their monthly payments.

If your credit score is a 500, you may have a hard time getting approved for a rental. Experian, one of the three major credit bureaus, says that a score of 500 is considered poor. And TurboTenant says that most landlords want to rent to people with a score of at least 600.

But you’re not necessarily doomed if you only have a 500 credit score. There are other options you can pursue that might get your name on an apartment lease anyway.

How to rent an apartment with poor credit

If you’re applying for a rental with poor credit, you may need to go out of your way to convince a landlord you can be trusted to pay your rent on time. To that end, here are some steps you can take.

1. Get a cosigner

If you have a parent or sibling with great credit who’s willing to cosign your lease, a landlord might agree to rent to you. But in that situation, your cosigner is on the hook for any payments you don’t make.

You don’t want to put someone who’s doing you that huge favor in that sort of position. So before you sign a lease, make absolutely sure you can afford the rent on your own.

2. Offer up a larger deposit

It’s common for landlords to take a security deposit when a prospective tenant signs a new lease. One way to overcome a poor credit score is to offer up a larger security deposit.

Your landlord’s standard practice may be to collect a security deposit equal to a month of rent upfront. If you have the cash in your savings account to cover a two-month security deposit, handing that sum over might get a landlord to agree to move forward with a lease.

3. Prove that you can pay your rent despite your poor credit

Maybe your credit score dropped because you fell behind on a few bills. Or maybe you maxed out your credit cards due to a financial emergency and are in the process of paying them off.

If you explain all of this to your landlord and are able to offer proof that you’re in a more stable place now, they may agree to rent to you. For example, if you can show that you have some money in the bank and that your salary is more than enough to cover the rent, they may be willing to take a chance on you despite a lower credit score.

How to boost your credit score

A 500 credit score could be an impediment to renting a home. So if that’s what your score looks like, it’s in your best interest to try to bring it up. You can do so by:

Paying bills on timeWhittling down existing credit card debtReviewing your credit report and correcting errors it might containBecoming an authorized user on a family member’s credit card account in good standing

Ultimately, a 500 credit score won’t automatically wreck your chances of being able to rent an apartment. But it’s best to do what you can to raise your score so you have more financial options in general.

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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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