Money Management

Costco’s return policy is famously lax, but even Costco has its limits. See what items fall under these exceptions. [[{“value”:”

We all love Costco for its great prices and quality Kirkland items. But deals and discounts aren’t the only way Costco is good for your budget. The generous return policy is also a fantastic resource for ensuring you’re not paying for things that don’t satisfy you.

Indeed, Costco’s return policy is famous for its breadth, allowing most Costco purchases to be returned more or less indefinitely. (Social media is awash in stories about the absurd returns people have witnessed.)

Even Costco’s famous return policy isn’t completely without limits, however. It turns out there are things even Costco won’t take back. Here are a few notables.

1. Gold and silver

If you ever needed proof that Costco really does sell everything, it’s probably the fact that you can buy literal gold bars. Customers can also find gold and silver coins, though these tend to sell out quickly.

You need to be certain you really want your shinies. Costco won’t let you return gold or silver bullion, bars, or coins.

Oh, and before you ask, they’re not eligible for price adjustments, either. (Which makes sense, since the prices of silver and gold fluctuate constantly.)

2. Sports and event tickets

You can find a whole range of tickets to various sporting events and concerts, often with a bit of a discount. For instance, right now I can find tickets to Cirque du Soleil, as well as tickets for a New York Mets game.

Keep a close eye on the listings, though. Your tickets are likely nonrefundable.

This means you can’t get a refund even if you don’t attend the event. Indeed, even if the event is cancelled, you may need to deal with the venue and/or team directly to get your money back.

3. Custom and special order items

If you’ve ever spent hours agonizing over the perfect specs on your custom special order, just to see it realized and it doesn’t match the image in your head…well, I get how disappointing that can be. But if you ordered that item from Costco, you may be out of luck.

Most custom and special order items are completely nonrefundable. The only exception? If Costco didn’t meet the original specs (color, size, etc.) correctly.

If everything is as you requested, but you still don’t love it? You’re stuck with it anyway, friend.

4. Gift cards and Costco Shop Cards

You can get some truly awesome deals on gift cards at Costco — like, up to 25% off the face value. But you need to be sure you can use those gift cards up before you buy them, because there is no going back: Costco doesn’t allow gift card returns.

It doesn’t matter if you buy them online or in-store, if they’re digital or physical. You bought ’em, you’re stuck with ’em. (Unless you can figure out some other way to make use of it.)

This non-return-policy also extends to Costco Shop Cards, Costco’s own gift card. Once you’ve purchased it, you’ll need to use it up or give it to someone else, because you won’t be getting your money back via a refund.

5. Tobacco and alcohol (laws vary by state)

Costco has a great selection of decent booze, making it easy to save on stocking the liquor cabinet. But one thing to watch out for is the return policy; it will depend entirely on where you live.

For example, in some states, alcohol sales are final, period. Other states will allow the return of unopened items, while some will allow unopened corked items to be returned. Some may allow a return but only for store credit, no cash. And so on.

The best way to get an answer on this one may be to contact your local Costco to ask about the policy in your area.

Other items with limits or restrictions

In addition to these products that Costco simply won’t refund, there are quite a few items that otherwise have restrictions or limits on when or how they can be returned.

For example, major electronics and appliances, such as TVs and refrigerators, are usually limited to a 90-day return window. Diamonds (1.00ct or larger) can only be returned within 48 hours. And certain products, like tires and batteries, will have specific return policies based on the item and location.

Folks who are caught abusing the return policy will likely face restrictions on what they can — or, more specifically, can’t — return. Excessive abuse of the policy can even get your membership revoked.

Although it isn’t a blank check to return anything and everything, Costco still has one of the best return policies around. So, read up on what’s allowed and use a bit of common sense, and you should be fine.

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.

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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.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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Regularly flying with basic economy tickets could offer big savings. Read on for a major drawback to consider. [[{“value”:”

Most airlines offer basic economy fare, which can save you money on travel costs. If you have a limited vacation budget or prefer the best deal when booking travel reservations, you may like booking basic economy airfare. But make sure you’re aware of the downsides of this ticket type. Here is one major hidden downside of always flying basic economy.

You may miss out on airline miles

One significant drawback is the potential loss of airline miles when flying on a basic economy ticket. You could earn significantly fewer miles through your airline’s frequent flyer program, which is a major bummer if you’re a fan of travel rewards.

Some airlines, like Delta, don’t allow flyers to earn miles when flying on a basic economy ticket. So, while you can save some money by purchasing cheaper fares, you may be unable to earn rewards from your trip. This is something to consider if you’re a frequent traveler. You’ll want to decide whether the savings outweigh the benefits of earning miles when you fly.

Here’s a quick overview of how some major airlines handle earnings for basic economy flyers:

If you fly basic economy regularly, you could lose out on earning many miles. The next time you research flight prices, consider whether it’s best to spring for regular economy fare. As always, keep your budget in mind before you buy. It’s never a good idea to overspend beyond your means. You could accumulate costly credit card debt or more financial stress.

You can earn rewards another way

I have some good news. Even if you’re earning fewer (or no) miles through your go-to airline’s frequent flyer program, there are other ways to earn rewards when you travel. You can use one of the best travel credit cards to earn valuable rewards and access travel perks.

Many people who travel regularly rely on credit cards. You can redeem your rewards for nearly-free travel to make a further vacation less expensive.

If you’re loyal to one airline, consider applying for an airline credit card. You can earn rewards on eligible spending and access airline-exclusive benefits that improve your travels.

Restrictions to beware of when flying basic economy

In addition to the potential for earning fewer miles, you should consider the restrictions that may come with your basic economy tickets. Your ticket may be affordable, but you’ll have less flexibility and benefits included with your airfare. Most airlines don’t allow basic economy flyers to change their reservations, which is a noticeable restriction to be aware of before your next trip.

Most carriers also don’t allow passengers with basic economy tickets to pre-select their seats for free when booking their flights. Instead, you’ll need to pay extra for a seat or wait until after check-in for the airline to assign you a seat (you could be assigned to a middle seat!).

Some airlines don’t even include a carry-on bag with basic economy tickets. If passage for your carry-on bag isn’t included with your fare, you’ll need to pay extra fees to bring a bag or need to consider paying a fee to check a bag. These extra expenses can impact your checking account.

Knowing about any potential restrictions can help you decide on the best fare for your needs and preferences when buying airfare for an upcoming trip. To avoid surprises, review the terms and conditions before you check out, no matter which airline you fly with or the ticket type you purchase.

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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 recommends Delta Air Lines. The Motley Fool has a disclosure policy.

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Want to save money on gas and get a better deal on buying a car? See how much you can save with a hybrid car — and how to get EV tax credits. [[{“value”:”

The costs of car ownership have been getting more expensive in the past few years, with skyrocketing prices for auto insurance and rising interest rates for auto loans. There has been some good news recently for car buyers: used car prices decreased by about 7% during 2023, as the global economy has (hopefully) worked its way through the worst supply chain problems from the pandemic.

But no matter what your budget situation might be, buying a car is never a cheap or simple endeavor. If you want to save money on gas and on the total cost of car ownership, you might be tempted to buy an electric vehicle (EV) in 2024. But EVs can be expensive. According to Kelley Blue Book, as of January 2024, the average price of a new EV was $55,353, compared to $47,401 for an average new car. It might take you several years to save enough money on gas to recoup that $7,952 upfront cost difference.

If you’re not ready for an EV yet, buying a hybrid vehicle can give you savings on gas, but without the range anxiety. Let’s look at a few examples of how much money you can save with a hybrid vehicle compared to a conventional gas-powered car.

Why buy a hybrid car instead of an EV

Even if you’re concerned about climate change and intrigued by EV tax credits, not everyone is ready to buy a fully electric vehicle. If you don’t have a garage or an easy way to charge an EV battery at home, it’s understandable to have range anxiety about EVs — especially since free, reliable public EV charging stations are not always easy to find.

Hybrid vehicles don’t cause range anxiety. That’s because they run on 100% gasoline, just like a standard car. But hybrid cars can be good for the environment (and for your bank account) in other ways: they get much better gas mileage than a typical car. And this can make a hybrid car worth buying, even if the cost is slightly higher than a standard gas-fueled car.

How much you can save on gas with these five hybrid vehicles

The best way to understand your hybrid car cost savings is by comparing the gas mileage to a standard gas-powered car. The U.S. Department of Energy has a free calculator on FuelEconomy.gov that can show you how much you can save with a hybrid vehicle, based on comparing MSRP (selling prices), gas mileage, and more.

Here are a few makes and models of hybrid vehicles that we pulled from the U.S. Department of Energy calculator. For each, let’s assume that you drive the national average of 13,476 miles per year, at the current (as of May 4, 2024) average national gas price of $3.659 per gallon.

Here’s how much you can save on gas with these five hybrid vehicles — compared to a regular “non-hybrid” version of the same car:

Exact cost savings vary based on the type of vehicle and how you drive. If you drive more miles, and/or if gas prices go up, the cost savings of your higher gas mileage hybrid will go up, too. But according to these estimates, these five popular models of hybrid vehicles would give you an average savings of $611 per year on gas.

Want EV tax credits? Choose this special type of hybrid vehicle

One drawback of hybrid vehicles is that they do not qualify for EV tax credits. But there’s one special variety of hybrid that does: plug-in hybrid electric vehicles, or PHEVs. I drive a plug-in hybrid Toyota Prius Prime, and it’s my all-time favorite car.

You can get new EV tax credits of $3,750 or $7,500 for some new plug-in hybrid electric vehicles like the Ford Escape Plug-in Hybrid or the Chrysler Pacifica Plug-in Hybrid. But only some vehicles qualify for the new EV tax credits — it depends on where your car was assembled, and where your car’s battery components were sourced.

Or if you want to choose from a wider range of carmakers, you can get used EV tax credits of up to $4,000 for pre-owned plug-in hybrids. This can be a good strategy to save money on a used car in 2024.

Keep in mind that to get EV tax credits (new or used), your income must be below a qualifying limit. Get more details at FuelEconomy.gov.

Bottom line

Before you decide to buy a hybrid car, plug-in hybrid, or other vehicle, shop around for cheap car insurance quotes. Hybrid car insurance can sometimes cost 7%-11% more than a standard vehicle, according to insurer Lemonade. You might want to increase your deductible or try other cost-savings strategies to reduce your car insurance costs.

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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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Many investors are interested in CDs right now. Read on to find out why other options might be better. [[{“value”:”

Certificates of deposit (CDs) are getting lots of attention right now, mainly because many have annual percentage yields (APYs) above 5.00%. That’s an impressive rate, but I still don’t think they’re a great place for my money.

Here’s why I won’t be opening a CD anytime soon, plus a couple of alternatives I think are a much better option for my money.

1. CDs are too restrictive

My biggest annoyance with CDs is the restrictions involved. When you put your money into a CD, you must leave it there for the entire term to earn the full interest. If you take it out early, you pay a penalty fee.

The fee is usually three months of simple interest for CDs with term lengths of two years or less. The fee jumps to six months of simple interest for CDs with longer terms.

I’ve had to pay for too many unexpected car and house repairs to have my money locked up. I want easy access to my cash to cover expenses when they inevitably pop up.

2. A savings account is a better option

Many people might argue that high CD yields offset the downside of having your money tied up for months or years. But you can often get the same impressive interest rates in a high-yield savings account.

Many savings accounts are paying 5.00% APYs or higher right now, and they don’t have the same term length restrictions as CDs. You could earn a high yield with a savings account and not worry about paying a fee if you have to withdraw money to cover an emergency expense.

It’s important to note that savings account yields are variable and can change at any time, while CD rates are guaranteed as long as you leave your money in the account for the entire term. But I’m comfortable with that tradeoff to avoid tying up my money for too long.

3. I can make more money investing in stocks

I’m still plenty of years away from retirement, so I want any extra money I have to earn the largest returns possible. Even with many CD rates at 5.00%, they don’t compare to investing in stocks.

For example, many low-cost index funds that track the S&P 500 experienced gains of nearly 30% over the past two years, including dividends. That puts CD rates of 5.00% to shame.

I know there are no guaranteed returns when investing in stocks, and you can certainly lose money. But I’ve got a long investment time horizon right now, so I’ll ride out any significant dips in the market and wait for it to rebound.

The stock market’s historic annual rate of return is 10.2%, so there’s a good chance that remaining patient with stock investments will result in a return that far outpaces a CD’s returns.

I’m not a fan of CDs personally, but I understand why they might appeal to some people. If you’re retired or near retirement, putting cash into a CD to earn interest that outpaces the inflation rate makes sense. But if you aren’t nearing retirement or just want easy access to your money, there are better options than a CD.

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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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If you’re a typical Gen Xer, see how much you need to save today to retire in 15 years. (It might be less than you think.) [[{“value”:”

Americans are worried about not having enough money for retirement. A recent survey from Northwestern Mutual found that Americans believe that they will need an average of $1.46 million to live comfortably in retirement. That dream “nest egg” number has increased by 15% since last year, due to high inflation.

The most important factor that affects your retirement savings is time. If you have many years ahead of you to work, save, invest, and let your money grow, you are more likely to be able to build up a substantial nest egg for retirement. Don’t feel bad if you’re not saving enough; many Americans who are still approaching their prime career years can still make big progress.

Let’s look at the retirement savings options for Gen X and see what it takes to save $1.5 million for retirement.

Gen X retirement savings: $108K saved, 15 years left

According to Northwestern Mutual’s 2024 Planning and Progress Study, Gen Xers have saved an average of $108,600 for retirement. But this generation is the most pessimistic about their retirement prospects. Only 48% of Gen X believe they’ll be financially prepared for retirement, compared to 49% of baby boomers, 56% of millennials, and 64% of Gen Z.

Is Gen X right to be so pessimistic? Let’s crunch the numbers, with a few assumptions.

Gen Xers are generally identified as being born between 1965 and 1980. So let’s say a “typical” Gen Xer was born right in the middle, in 1972, and is 52 years old today.And let’s say this 52 year old has the Gen X average amount of retirement savings from the Northwestern Mutual survey: $108,600.This Gen Xer’s full Social Security retirement age is 67, so they have 15 more years to save and invest for retirement.

Let’s see how Gen Xers can make the next 15 years count.

How to invest for retirement: 15 years away

15 years is not a long time horizon. Even if you have $108,600 saved, you’re going to need to save and invest aggressively to be able to retire at age 67.

Let’s look at a few examples based on how much you save per month.

If you save $500 per month

Let’s say that you’re starting with $108,600 saved for retirement, and you can add a total of $500 per month ($6,000 per year) — that includes your 401(k), if you have one, and any other long-term retirement accounts like a Roth or traditional IRA.

Let’s say you invest that money aggressively in a diversified portfolio of mostly stocks and ETFs for an average annual return of 8%. And let’s say that you bump up your retirement savings contributions by 2% per year as you get pay raises at work.

After 15 years, you’d have $541,738 saved for retirement. At 4% withdrawals per year (the common recommendation), that’s enough to generate $21,670 of retirement income per year. This is much better than nothing, but far short of the $1.5 million goal that most Americans have as their ideal retirement nest egg. Let’s try again with bigger numbers.

If you save $1,000 per month

Let’s say you can save $1,000 per month ($12,000 per year). Assuming the same 2% per year increase in retirement savings and the same average annual return of 8%, after 15 years, you’d have $738,979 saved for retirement. That nest egg would generate about $29,559 per year of retirement income (assuming 4% withdrawals per year).

Again, not bad! Getting better. Most people could actually live off of that income in retirement, especially if you get the average Social Security retirement check of $1,907 per month. But what if you want to live more comfortably in retirement? You still have time to save for it.

If you save $1,500 per month

Again, assuming that you start with $108,600 saved (at age 52), bump up your savings by 2% per year, and earn 8% average returns for 15 years, here’s what happens if you save $1,500 per month ($18,000 per year): At age 67, you’d have $936,219 in your retirement nest egg. That’s enough to give you about $37,449 of retirement income per year.

We’re getting closer and closer to that “magic number” of $1.5 million. Want to see what it takes?

If you save $3,000 per month

If you can afford to save even more aggressively for retirement, it could still be possible for a 52-year-old to reach that $1.5 million retirement goal. Let’s assume you already have $108,600, you increase your savings contributions by 2% per year, and you save and invest for the next 15 years with 8% average annual returns.

If you save $3,000 per month ($36,000 per year), by age 67 you would have $1,527,940 saved for retirement. That nest egg would generate about $61,118 per year of retirement income.

Bottom line

Gen Xers don’t have to feel gloomy about retirement. If you have the average amount of retirement savings for your age cohort ($108,600), you still have time to save up a significant nest egg to support you in your golden years.

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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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Are you shopping for a new car in 2024? See how to decide between EVs vs. hybrid cars — and learn why hybrids can be a better deal for your budget. [[{“value”:”

Electric vehicles (EVs) are in the news a lot these days, and are widely described as the future of transportation. The federal government is investing billions of dollars to build EV charging stations nationwide, and is also offering thousands of dollars of EV tax credits for qualifying buyers of new (and used) EVs.

But if you’re looking to buy a car in 2024, are EVs really the best deal for you? Fully electric vehicles (those that run on 100% battery power) are not your only option to save money on gas and reduce carbon emissions to fight climate change. Another slightly “older” type of eco-friendly car, hybrid vehicles, can often be more affordable than EVs.

Let’s look at the big picture of what makes hybrids more affordable than EVs, and which type of car could be the best choice for your driving style.

Hybrids have a lower MSRP sale price than EVs

The first number to think about when shopping for a hybrid vs. EV is the actual sale price of the car at the dealership. According to Kelley Blue Book research, as of December 2023, the average EV costs $50,798. A popular hybrid, the 2024 Toyota Prius, started at $28,745. That’s a price difference of over $22,000!

Of course, not all hybrids cost $28,745. If you buy a hybrid SUV, truck, or minivan, the cost could be closer to that average EV selling price. And new EVs can qualify for up to $7,500 of federal EV tax credits, while hybrid cars do not — but even with that full $7,500 discount, hybrids are likely to be cheaper to drive off the dealership lot.

Advantage: Hybrids

Hybrid car insurance can be cheaper than EVs

The cost of auto insurance has skyrocketed in the past few years, to the point that some Americans have had to cut back on groceries to afford car insurance. Unfortunately, EVs are not cheap to insure.

Because of their higher average sale price, expensive lithium-ion batteries, and costly specialized repairs, EVs tend to have higher car insurance costs than gas-powered cars. But how does EV car insurance compare to the cost of hybrid car insurance?

Exact figures for the cost of auto insurance are based on where you live, the odometer mileage and value of your vehicle, your age and driving record, and more. But according to a study from Kelley Blue Book on the five-year cost of ownership of a 2023 Kia Niro EV vs. a Kia Niro Hybrid, EV car insurance is projected to cost $292 more over five years (about $58.40 more per year).

The cost of EV car insurance is probably not a dealbreaker for most car buyers — after all, even the cost of standard car insurance seems to be higher than ever. But if you want cheaper auto insurance, choosing a hybrid instead of an EV could help. Lemonade, a digital insurance company, offers discounts on EV and hybrid car insurance.

Advantage: Hybrids

Charging EVs is not “free” (even at home)

The best financial reason to buy an EV over a hybrid is to save money on gas. Hybrid vehicles are still fueled entirely by gas (although they get better mileage than standard gas-powered cars). With a fully-electric vehicle, you never have to buy gas or pay for oil changes again.

But here’s the catch: unless you have solar panels at home and can charge your EV exclusively at home with free energy from the sun, fueling your EV is not “free.” You have to pay for the cost of electricity to charge your EV at home, or pay to use public charging stations. Some public EV charging stations are free, but you can’t count on getting a spot there every time you need to charge — check plugshare.com to find free EV charging near you.

Still, EVs can save money compared to gas-powered cars. The average driver might save about $1,074 per year on gas (and another $600 per year on maintenance) by driving an EV. This figure is based on an estimate of EV “fuel” costing half as much as the average American spends on gas per year — $2,148.) But the challenge is knowing how long it takes to pay off the higher cost of an EV. It might take a few years of spending zero money on gas to recoup the higher cost of purchasing an EV, compared to a lower-priced, gas-burning hybrid car.

If the cost of EVs gets cheaper, or the cost of gasoline increases, EVs might soon become a better deal than hybrid cars — the money you save on gas might quickly make up for the higher costs of EV car insurance. But in the meantime, budget-conscious car shoppers might want to choose a hybrid car instead of an EV.

Advantage: Hybrids (for now)

Bottom line

Buying an electric vehicle (EV) can be a great way to fight climate change while saving money on gas and maintenance. No more oil changes! But as of May 2024, you can probably save more money by buying a hybrid vehicle that burns (less) gas. Check out the U.S. Department of Energy’s Vehicle Cost Calculator to see which vehicles fit your driving style — and estimate your cost of car ownership.

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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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