Money Management

Driving a hybrid car had its perks for me. Read on to learn more. [[{“value”:”

When my husband suggested that we get a Toyota Prius back in 2007, I wasn’t sure if it was the best idea. Hybrids weren’t as popular back then, and I was worried that a car with a more complex engine would result in more headaches and repairs.

For the most part, though, driving that Prius was a good experience. In fact, the car held on longer than I would’ve expected.

We drove it regularly for 17 years, and at the time we sold it, it still had some oomph left in it. In fact, we probably could’ve hung onto it for another year or so, but we needed a replacement car with more space.

If you’re on the fence about getting a hybrid, it may help you to know what my experience was like. Of course, yours might differ based on the vehicle you buy and your driving habits, but here are four takeaways you may find helpful.

1. It took some getting used to

If you’ve never driven a hybrid car before, the feeling that your vehicle is basically turning off on you at every red light can be a little disorienting at first. I got used to it pretty quickly, but it can be disconcerting to hear your car make no noise when it’s stopped. Rest assured, though, that mine always started right back up as soon as the light turned green and I hit the gas.

2. It was more expensive to maintain

From minor repairs to regular oil changes, maintaining my Prius cost a lot more than maintaining the Camry I had when we first got our hybrid. And the cost wasn’t that much cheaper than maintaining the minivan we upgraded to when we needed the space for extra car seats.

The good news is that these days, many auto shops are better equipped to service hybrid cars. That wasn’t the case when we first bought our hybrid, though, which may have led to higher maintenance costs initially.

3. Over time, my car’s fuel efficiency began to wane

When we first got our Prius, we enjoyed upward of 40 miles per gallon. But by my last year of driving my Prius, I was getting 37 miles to the gallon at best.

Of course, it wasn’t always easy to determine how fuel efficient that car was toward the end because our gas gauge broke, so according to those readings, we always had a full tank. That was another reason we sold it when we did — we didn’t want to sink money into repairs for a 17-year-old car.

4. Not having to visit gas stations all the time was almost as good as the savings

I can’t tell you how much money I saved at the pump during my 17 years of owning a Prius. But as nice as it was to spend less on gas, one huge perk of having that car was not having to constantly run to fuel stations to fill it up. While I normally refill my minivan’s giant tank at least once a week, with the Prius, I was doing a fill-up every other week at most.

Should you get a hybrid car?

You may appreciate having a hybrid vehicle for the gas savings and convenience of not having to constantly fill up. But before you get a hybrid, ask yourself:

Am I willing to pay a bit more for a car?Am I willing to pay more for maintenance?Can I swing the auto insurance costs if they’re higher? (Hybrids cost an average of $235 more per year to insure, according to Forbes.)

If you’re interested in a hybrid, try out a bunch of different models. And also, bring your negotiating skills to the dealership. Because hybrids are way more common today than when I got one, you may have more wiggle room to talk down the price.

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CDs can be a great place to put your money in retirement. But read on to avoid a mistake that could cost you big time. [[{“value”:”

Retirement can be a financially tricky period of life. You’re going from earning money at a job to having to live off of savings and Social Security. And it can be difficult to figure out exactly where to put the money you’re supposed to be living on.

As a general rule, you don’t want to go too heavy on stocks in retirement since the stock market can be volatile. If you have the bulk of your savings in stocks, you risk locking in serious losses if you have to cash out investments to pay your bills.

That’s why you probably don’t want much more than 50% of your assets in stocks as a retiree. The remainder should, ideally, go into safer assets like bonds and cash.

But for the cash portion, you don’t have to stick to a savings account. CDs can be a great choice for retirees because you’re getting guaranteed income on that portion of your savings. If you open a 12-month CD with a 5.00% APY, for example, and you’re putting in $20,000, you’re guaranteed to earn $1,000 in a year’s time.

However, if you’re going to put money into CDs as a retiree, there’s one big mistake you need to avoid.

Don’t go overboard on CDs

While putting money into CDs could make a lot of sense in retirement, be careful not to put too much of your cash into CDs. If you do, you might run into a problem if the stock market happens to decline.

Remember, when you open a CD during your working years, you may not need to access that money because you’re earning a paycheck. In retirement, you’re living off of your savings.

If you put 50% of your nest egg into stocks and the remaining 50% into CDs, you may be in trouble if the stock market crashes. At that point, you have two choices. You could either sell off stocks at a lower price and get less money for them, or you could cash out a CD early and take a penalty for doing so. Neither is ideal.

That’s why if you’re going to open CDs in retirement, make sure to leave yourself enough cash in a regular savings account to cover 12 to 24 months of bills. This way, you have cash available in the event of an extended stock market downturn.

A CD ladder is ideal for retirement

Another thing you should do if you’re interested in putting money into CDs as a retiree? Set up a CD ladder instead of opening one large CD.

With a CD ladder, you have various CDs maturing at different times. This means that a portion of your money frees up regularly, which is important when you may need that money to cover expenses.

Now, you have different options for setting up a CD ladder. But if you’re going to keep a nice chunk of cash in a regular savings account, one approach you may want to take is opening a 6-month CD, 12-month CD, 18-month CD, and 24-month CD.

This way, a portion of your money matures every six months. And you can tap your savings in between as needed if the stock portion of your nest egg is unavailable due to a market downturn.

Of course, if you do end up in a situation where you’re forced to either cash out a CD early or take a loss in your stock portfolio, crunch the numbers carefully to see which constitutes less of a loss. If you have a 12-month, $10,000 CD with a 5.00% APY and an early withdrawal penalty of three months of interest, that’s a $125 hit. You might lose a lot more than $125 by selling a stock when its price has declined. So take the time to calculate the least financially painful option.

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Love Costco? Read on for a few Kirkland snacks that could make your taste buds very happy. [[{“value”:”

I’ve always been a bit of a nibbler. And to be a successful nibbler, you need a solid array of snacks at your disposal.

Enter Costco. Though it’s my go-to source for essentials like milk, eggs, and produce, I’ve been known to buy my fair share of snacks from Costco in bulk. And some of my favorite snack products are made by Kirkland Signature, Costco’s house brand. Here are five products I’m totally in love with that you may want to give a try.

1. Kirkland Signature Cashew Clusters

Some people prefer sweet snacks. Others prefer them to be salty. Kirkland cashew clusters are a fabulous combination of both. This mix of cashews, almonds, and pumpkin seeds is coated in a mildly sweet glaze that’s not overbearing. And with five grams of protein per serving, these clusters are a great snack to bring on a hike.

Now one thing I will warn you about is that these clusters are pretty rock hard — so hard, in fact, that I sometimes worry about chipping a tooth (to be fair, my teeth aren’t the strongest). If you have dentures or vulnerable teeth, they may not be the best buy. Otherwise, crunch away, my friends.

2. Kirkland Signature Sweet Heat Snack Mix

Sometimes I like a little tang in my life. Enter Kirkland’s Sweet Heat Snack Mix. It’s got barbecue-flavored almonds, seasoned cashews, honey roasted sesame sticks, corn nuggets, and glazed pecans. The heat is there, but it’s not overwhelming.

That’s important to me, because I sometimes like to snack on this mix while I’m working late at night for energy. But if I’m constantly guzzling water due to the spice factor, it means more trips to the restroom and less productivity.

3. Kirkland Signature Peanut Butter Filled Pretzel Nuggets

I love all things peanut butter. I love to dip apples in it, spread it on toast, and smother it with chocolate.

For this reason, these pretzel nuggets are totally my jam. They’re packed with peanut butter filling for an amazing bite, so much so that I’ve been known to gobble 30 or so at a time. (For context, Costco calls a serving size eight pretzels. If you’re able to eat just eight, I applaud your self control.)

4. Kirkland Signature Praline Pecans

I’ll admit that I can’t consume praline pecans at the same speed as peanut butter-filled pretzels. That’s because they’re pretty sweet, so six or seven of them at a time is usually enough for me. (That’s a good thing, I guess, if I want to fall within Costco’s serving size recommendations.)

Now if you’ve ever shopped at Trader Joe’s and tried their praline pecans, you should know that these are similar. I find the Trader Joe’s version to be a tad crunchier, which I happen to prefer. But ultimately, I consider both a very tasty snack.

5. Kirkland Signature Milk Chocolate Almonds

I’m well aware that snacking on plain old nuts is probably much healthier than consuming chocolate-covered ones in mass quantities. But these milk chocolate almonds are just irresistible. The chocolate is silky and creamy, and there’s a generous amount on a per-nut basis.

However, as the only person in my household who enjoys these, one issue I sometimes run into is that these nuts can get a little stale if the container stays open for too long. So I try to make a point to buy them before I’m hosting friends. That way, I can put some out, enjoy the rest myself, and avoid waste.

Will you be adding any of these snacks to your shopping list?

Of course, these are just five of many excellent Kirkland snacks you’ll find online or at your local Costco store. If they appeal to you, I recommend checking them out — perhaps one at a time, though, instead of all at once, to cut down on potential waste or staleness.

Also remember that if for any reason you’re not satisfied with your Kirkland purchases, you can always bring them back to Costco for a full refund. For example, you may not enjoy the feeling that you’re about to break a tooth, so if you purchase the cashew clusters and find them to be way too hard for your liking, you can get a refund as long as you’re returning the bulk of the bag. Similarly, if you find the pecans too sweet, you can do the same.

Costco makes a point to stand behind every product it sells. But that especially applies to Kirkland products, as Costco’s house brand. So don’t hesitate to get your credit card refunded if one of these buys doesn’t work out. Chances are, though, you’ll end up loving your purchases and incorporating them into your regular snacking routine like I have.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.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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Like the idea of earning extra interest? You may be thinking of putting some of your emergency fund into a CD. Read on to see why that idea could backfire. [[{“value”:”

You never know when you might need money in a pinch, whether to pay for an unexpected car repair or cover your expenses during a period when you’re out of a job. That’s why it’s so important to maintain an emergency fund — ideally, one that has enough money to cover three months of essential bills or more.

Many people put their emergency funds into a savings account and call it a day. But you may be interested in keeping a portion of your emergency fund in a CD. And it’s easy to see why.

CD rates tend to be higher than savings account rates, so you have an opportunity to earn a bit more on your money. Plus, with a CD, your interest rate is guaranteed for the duration of your CD’s term. With a savings account, your interest rate could change for the worse without warning.

But while you may be tempted to split your emergency fund between a savings account and a CD, that’s a decision that could backfire on you.

Why risk a penalty?

If you have a larger emergency fund, you may be able to get away with putting some of it into a CD.

Let’s say you’ve saved enough money to cover six months of living costs. You could keep three months’ worth of expenses in a regular savings account and put the rest of your money into a 3-month CD. This way, if you were to lose your job and be unemployed for half a year, you’d have access to your 3-month CD by the time you’ve blown through the savings account portion.

But you’re generally not going to find a CD with a term of less than three months. (Even 3-month CDs can be somewhat hard to find). And so if you only have a three-month emergency fund, you’re going to want to keep all of it in a savings account.

Most banks charge a penalty for cashing out a CD before it matures. The exact penalty depends on your bank. An example from one of the big banks is three months’ worth of interest for an early withdrawal of a CD with a term of 12 months or less. But if your goal in keeping some of your emergency fund in a CD is to earn more interest, you could end up losing way more than what you’d gain by virtue of an early withdrawal penalty.

Say your emergency fund comes to $6,000, and you put $3,000 of that into a 3-month CD to earn 5.00% APY on your money instead of the 4.00% APY your savings account is paying. Over those three months, that’s an extra $7.50 in interest. But if you’re forced to cash out that CD early, you stand to lose $37.50 if you’re looking at a penalty of three months of interest. That’s just not worth the risk.

It may be best to play things safe

The whole purpose of having an emergency fund is to give yourself peace of mind. Why mess with that by putting some of your cash into a CD and running the risk of having to take a withdrawal prematurely?

It’s great to save money on top of your emergency fund so you can take advantage of higher CD rates. But you should probably keep your entire emergency fund in a savings account to avoid potential stress and the risk of penalties.

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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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Costco’s deals on electronics are tempting. But this return policy could make the wholesaler a less popular pick for these purchases. [[{“value”:”

There are a lot of good reasons to buy your electronics at Costco. For one thing, it’s good for your budget — Costco’s prices are often competitive. Indeed, you can often save money shopping at Costco for your big-ticket electronics.

Often, another good reason to shop at Costco is the return policy. Costco’s policy is very generous, giving you more or less forever to return a great many purchases.

When it comes to electronics, however, the return policy may not actually be a good reason to choose Costco. That’s because many electronics fall under a much more restrictive policy.

Most electronics have 90-day return window

Costco’s return policy is generous, but it isn’t unconditional. Many types of expensive electronics have a much more limited return window of just 90 days.

The list of items that fall under this restriction include:

TelevisionsProjectorsComputersTouchscreen tabletsSmart watchesCamerasAerial cameras (drones)CamcordersMP3 playersCellular phones (return details vary by carrier service contract)

The 90-day return window also applies to major appliances, such as:

Refrigerators above 10 cubic feetFreezersRangesCooktopsOver-the-range/under-counter microwavesRange hoodsDishwashersWater heatersWashers and dryers

The good news is that a lot of electronics and small appliances aren’t on these lists. For example, vacuums, headphones, and mixers are all missing from the lists. That means they likely fall under the full return policy without the 90-day limitation.

How to tell which items qualify for longer returns

If you’re not certain whether a specific item has a limited return policy or not, you can simply look up its listing on costco.com. Each item page will have a section for Shipping & Returns that will spell out the specific terms for that item.

Typically, if the page doesn’t list a specific return window, the item probably falls under the general 100% satisfaction guarantee.

For example, if I look up the iPad Air, I can scroll to the Shipping & Returns section to see: “Costco will accept returns within 90 days (from the date the member receives the merchandise) for this product.”

In contrast, if I go to the page for the KitchenAid 6 Quart Bowl-Lift Stand Mixer, there is no language that limits the length of the return window. As such, it’s likely eligible for the full satisfaction guarantee.

If you’re still concerned about an item’s specific policy, you can always contact Costco to ask about that specific item.

What to do if you’re past the return window

It’s not uncommon for electronics to go wonky seemingly the day after the return window ends. At this point, you could try to get Costco to take it back — but that’s unlikely, since it’s against store policy.

Instead, you’ll need to rely on the product’s warranty. On the plus side, most electronics tend to have warranties of at least a year, and sometimes up to three. (Be sure to read up on the warranty before you buy!)

Your credit card may also help you in some cases. A few premium rewards cards offer extended warranty coverage that adds an extra year onto the manufacturer’s warranty when you use your eligible card to pay for a purchase.

Top credit card 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.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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The best way to maximize CD earnings isn’t to lock all your money up in a single CD. Keep reading to learn why a CD ladder is your best bet. [[{“value”:”

Are you interested in investing in certificates of deposit (CDs)? Buying CDs could be a good idea right now because rates on CDs are higher than they’ve been in decades. There are a ton of CDs to choose from, though. So deciding on an investment strategy can be confusing.

But there’s one simple approach that’s worked for countless CD investors that you can try, too. And given today’s market conditions, it may be the single best strategy to set yourself up for success.

Try this CD investing strategy

The strategy you should try is called CD laddering. Instead of buying one CD, you build a “ladder” with multiple CDs making up different rungs. Each CD has a different maturity date. Here’s what a CD ladder could look like:

You could buy a 1-year, 2-year, 3-year, 4-year, and 5-year CDYou could buy a 3-month, 6-month, 1-year, 18-month, and 2-year CD

These are just two sample combinations. You could set the rungs on your ladder as far apart as you want by picking different combinations of term lengths. The key is to have CDs maturing on a predictable schedule so you always have some money coming back to you that you can reinvest.

Why is CD laddering a great strategy?

CD laddering is a great strategy for a few reasons.

You aren’t locking up money for as long. You always have some CDs maturing pretty soon, in case you need the money. You could spend it, move it to a checking or savings account, or reinvest it in a new CD.You’ll get the benefits of both short-term and long-term CDs. Short-term CDs give you more liquidity. You also take on less interest rate risk. If rates happen to go up, it’s only a few months until you can get your money back and buy a new CD at a higher rate. Long-term CDs, on the other hand, lock in at today’s yields so you’re protected against interest rates falling. Long-term CDs also usually offer higher rates than short-term options. With a CD ladder, you get the benefits of both of these types of investments.You limit risk. If rates go up, you’ll have CDs maturing in a short time. When they mature, you can use the money from them to invest in the higher-yield CDs that should be available. If rates go down, you have some of your money locked in at the higher rates, thanks to your long-term CDs.

CD laddering makes sense in almost all economic conditions. It’s an even better deal right now than usual, though, because short-term CDs are offering higher rates than long-term ones. You normally have to accept lower rates when you include those in your ladder, but the point of doing so is to get more liquidity and access to your money.

Right now, short-term CDs are paying better than long-term CDs because most banks expect the Federal Reserve to lower interest rates soon. So there’s no trade-off; you get the liquidity of short-term CDs, but don’t have to accept a lower yield in exchange for the ability to access your money. Long-term CDs are also offering generous yields (although not quite as high) so you can lock those in, too. Every rung on your ladder will provide great returns.

Building a CD ladder makes more sense than ever in 2024. Check out the best CD rates at different terms so you can find the right certificates of deposit to buy and build your ladder today.

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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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