Money Management

Want to redecorate your home for spring? Costco has some great deals for you to shop. Find out how to save $300 or more on home decor buys at Costco. [[{“value”:”

Now that it’s May, it’s the ideal time to spruce up your home and outdoor space. If you plan to purchase spring essentials, consider shopping at Costco to honor your budget. This warehouse club has excellent deals that could help you keep more money in the bank. You’ll need to pay for a membership to shop there, but the savings could be worth the annual fee.

Here are some ways to save $300 or more at Costco by redecorating for spring.

Replace your old patio cushions

Savings: $58.42

Freshening up your old patio cushions can make a noticeable difference. Your patio will feel redecorated, and you can improve the comfort of your seating area. Costco sells a 2-pack of the Peak Season Outdoor Seat Pads for $43.99. Multiple colors are available, so you can choose new cushions that fit your preferred style and look.

The cushions are made with Sunbrella fabric to help protect against stains and fading, so you can feel confident that they will hold up well over time. Wayfair sells similar pads in a 2-pack for $102.41. If you pick these up at Costco instead, you’ll save $58.42.

Upgrade your patio umbrella

Savings: $150

While spending time outdoors in the spring can be enjoyable, sitting in direct sunlight for a long time may not be desirable. A quality patio umbrella can help you stay comfortable and make your home and patio look nicer, too.

Costco sells the ProShade 11-foot Solar LED Aluminum Umbrella with Tilt for $249.99. The fabric is made to resist stains, and the umbrella has solar-powered LED lights under it. That means you can enjoy hanging out in the daytime and at night.

According to the manufacturer’s website, the retail price for this umbrella is $399.99. You’d save $150 by getting this upgrade at Costco. That’s a win for your outdoor space and your checking account.

Invest in quality, attractive planters

Savings: $15

If you’re ready to add more flowers and greenery to your outdoor area, consider investing in quality planters to make your home more welcoming. Costco sells the 26-inch Taper Planter by Veradek in a 2-pack for $94.99. The same product is available on Amazon for $109.99. You’ll save $15 with your Costco membership when buying these.

Invest in an outdoor rug

Savings: $100.02

An easy way to redecorate your patio or indoor hang-out space for the spring and summer is to purchase a new rug. Costco sells a variety of outdoor and indoor rug options.

The Nautica Rectangle Geometric Machine Wash Woven Flatweave Indoor/Outdoor Rug in Brown/Beige is available for $199.97 at Costco. The same rug is sold at other retailers, including Wayfair. The retail price at Wayfair is $299.99, so you’d save around $100 by purchasing this beautiful combination of indoor and outdoor rug from Costco.

Warehouse club memberships can offer big savings

If you have a warehouse club membership, use the perks. If you’re not yet a member, consider joining so you can shop while staying on budget. Retailers like Sam’s Club and Costco sell various goods that can improve your life and help you save money.

In the spring redecoration examples above, you could save $323.44 by picking up essentials from Costco that can help you transform your home and patio space. Check out our Costco guide for helpful tips to get the most out of your money when shopping at Costco.

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.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Costco Wholesale. The Motley Fool recommends Flow. The Motley Fool has a disclosure policy.

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CD rates topping 5% may seem like a great deal for savers, but there are plenty of downsides to rates being so high. Here are two of them. [[{“value”:”

There are many CDs right now offering annual percentage yields (APYs) above 5.00%. Since investors used to get excited about rates at 2.00% or 3.00% just a few short years ago, these unprecedented high yields may seem like great news.

They aren’t, though. There are two reasons that just about everyone should be unhappy about CD rates being so high.

1. CD rates are only high because inflation has surged

The first and most important reason why higher CD rates should be upsetting is also the reason for the high yields.

CD rates have skyrocketed because the U.S. central bank, called the Federal Reserve, raised interest rates in:

March 2022May 2022June 2022July 2022September 2022November 2022December 2022January 2023March 2023May 2023July 2023

Now, the Federal Reserve doesn’t set interest rates on CDs. But it establishes the benchmark rate or the overnight rate (the rate banks pay to borrow money from each other overnight). This influences what banks pay to CD investors. So, as these rates have gone up, CD yields have skyrocketed.

Unfortunately, the Federal Reserve is raising interest rates because of record high inflation. So, the only reason why CDs are paying so much is because everything you’re spending money on is so expensive. Prices rose an average of 4.7% year over year in 2021, 8% in 2022, and 4.1% in 2023. And in 2024, inflation has been trending above 3% for the first three months of the year. So, while CD rates are high, so are the costs of everything else.

The Federal Reserve has signaled an intent to lower rates as soon as inflation cools, but that may not be happening anytime soon. Rates will most likely stay this high only if inflation is still a big enough concern to prevent a rate cut. Savers (and everyone else) will likely be worse off if that happens, since inflation eats away at your buying power.

2. Your real returns after inflation aren’t that impressive

There’s another big reason why you shouldn’t be happy about CD rates above 5.00%. It also has to do with inflation.

See, it’s true that you can earn yields above 5.00% right now by investing in a CD. But you need to calculate your real returns after accounting for inflation’s impact since it’s the increase in buying power that matters most to most people — not just having more money on paper.

If you are earning 5.00% but prices on goods and services are up 3.50% as they were in March, then the first 3.50% of your gains are just allowing you to keep pace with the cost increases. So, your real returns are just 1.50%. That’s a much less impressive number.

Unfortunately, after inflation causes big price increases, it’s rare for costs to come down later. When inflation cools, that just means costs don’t go up as quickly. The higher prices remain. So, the 5.00% you’re getting on your CD isn’t going to buy you 5% more in the future.

When you take these factors into account, CD rates above 5.00% don’t sound so great.

Now, it’s still better to have your money in CDs or other accounts paying high rates than it would be to have your money somewhere where it isn’t earning enough to beat inflation. So it’s still worth checking out CDs with high yields or high-yield savings accounts (which are also offering competitive rates right now). In fact, if you aren’t doing that, this high inflation is going to hit you even harder and leave you with less money to spend. So start looking into these options today to help you prosper in this difficult financial climate.

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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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It’s a good time to sell a home in general. But read on for the best specific weeks of the year to move forward with a listing. [[{“value”:”

Although 2024 is shaping up to be a difficult year to buy a home, selling one is a different story. Many homeowners are hesitant to sell today because they don’t want to give up the affordable mortgages they’re currently paying off. As such, there’s a notable lack of inventory on the real estate market. And when there’s little competition, it gives sellers the upper hand.

But while selling your home in 2024 in general is a move that might work out well for you financially, getting your timing right could put even more money in your pocket. In fact, you may want to gear up to list your home soon if your goal is to snag the highest sale price.

Plan to list your home at the start of June

Spring is typically a popular time to list and buy a home. But data from Zillow reveals that sellers who list their homes during the first half of June tend to benefit financially.

In fact, based on 2023 data, Zillow finds that homes listed during the first two weeks of June sell for 2.3% more than homes listed at other points during the year. For the typical U.S. home, that amounts to a purchase price that’s $7,700 higher.

If you’ve been thinking seriously about listing your home, the time to get moving is now. But there may be a few key steps you need to take before you’re ready to list your home.

Set yourself up for success

Since there’s not a lot of housing inventory to go around, you might think that you can handle the process of selling your home yourself. But that’s a decision that might sorely backfire on you.

When you sell a home yourself, you have to market it yourself, coordinate showings with potential buyers, and negotiate on your own behalf. The latter is a tough thing to do without the right skills and experience. It’s also something you might struggle to do without getting emotional.

That’s why hiring a real estate agent could be a smart idea. Yes, you’ll lose some of your sale proceeds to a commission — that’s a given. But a real estate agent might make the process of selling your home much less stressful. And they might also manage to get you a high-enough sale price that it makes up for their fee and then some.

In addition to finding a real estate agent, you’ll want to address obvious flaws with your home prior to listing it. This doesn’t mean you need to dip into your savings to do a last-minute bathroom renovation. But if you have a leaky faucet or tiles that have seen better days, it’s a good idea to replace that faucet and do some regrouting.

Similarly, you’ll want to make sure your home gives a good first impression. If your lawn hasn’t been well-maintained, make sure to trim the grass, reshape your shrubs, clean out debris, and address other glaring issues, like missing fence panels.

Finally, make sure to declutter your home so it shows nicely when prospective buyers come to see it. Aim to depersonalize your home so potential buyers can picture themselves living in it. You don’t have to go through your house room by room and paint all of the walls beige. But do remove family photos or artwork that may be very specific to your taste.

Act quickly for a big payday

You may end up doing quite well for yourself if you sell your home in 2024 regardless of when you put up your listing. But if you’re able to list your home during the first half of June, you might walk away with a larger sale price than expected. It pays to act quickly if getting your home listed in early June is doable.

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Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Zillow Group. The Motley Fool has a disclosure policy.

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CDs are getting a lot of buzz these days, and if retirement is looming, you might wonder if they’re worth checking out. Find out here. [[{“value”:”

Ahhh, retirement. Gone are the days where you got up early to sit in traffic and work from a cubicle with fluorescent lighting and bad coffee. But once you exit the workforce, you’ll have new problems — namely, managing your cash flow and ensuring your needs and wants are met without relying on a regular paycheck. To that end, you’ve certainly got options. Let’s take a closer look at why certificates of deposit (CDs) are worth considering if retirement is coming up.

CDs are safe and predictable

If you’re looking at a comfortable retirement, odds are you’ve spent many years saving and investing in a retirement account, like an employer-sponsored 401(k) or an individual retirement account (IRA) you opened yourself (or perhaps both).

Stock market investing is an incredibly effective way to grow your money — over a long period. Over the last 50 years, the S&P 500 has returned an average of 10% annually. But individual years have seen wild swings in value, making short-term investing a risky game. But short-term gains are where CDs shine, so it’s worth considering them when you don’t have a long timeline to grow your money.

When you open a CD, you know exactly how much money you’ll make on it, provided you can leave your money in place for the duration of the term. And you can’t lose money in a CD the way you might lose cash in the stock market — open a CD with an FDIC-insured bank, and up to $250,000 of your cash ($500,000 for joint accounts) is protected in the event of bank failure.

Now that you’re retired, you can’t afford to take big financial risks because you’re not earning income from a job anymore and you might not have time to wait out market swings. CDs can help you keep earning money on your money, without big risks.

CDs are easy to open

Today’s best CDs are overwhelmingly offered by online-only banks, making them easy to open and fund. In fact, you can open one in just a few minutes, without even leaving your home. If you have an existing relationship with an online bank, check its CD offerings first, since it’ll be even faster to fund a CD with a bank you already work with.

But even if you opt to open CDs with a different bank, it still won’t take long to link an outside account and transfer money to your new CD. You also have the option to open brokered CDs (the rules for these are a little different, so do your research on brokered vs. bank CDs).

Beware of taxes and penalties

There are a few potential issues with making CDs a cornerstone of your retirement portfolio. If the money you’re intending to put into CDs could be needed at any time (say, for emergency expenses), you could end up owing penalties if you have to break your CD term early. CD early withdrawal penalties could range from a few months’ worth of earned interest to a year or more — depending on the CD term.

This may not be a huge deal if you manage to almost complete the term and have already earned most of the promised interest. But if you have to break a longer-term CD (say, a 5-year CD) after just a year, you could lose some of your principal balance because you haven’t yet earned enough interest to cover the penalty.

It’s also important to note that CD interest is taxed like regular income, so the amount you’ll pay in taxes is informed by your tax bracket. For this reason, it’s a good idea to put some of your earned interest aside (perhaps in a high-yield savings account, where it will earn more interest — you’ll owe some taxes on that too, but will likely still come out ahead) for tax time.

Ultimately, CDs can be a solid way to diversify your retirement cash and stay ahead of inflation. And since rates are up right now, it’s a great time to explore your options and lock in a solid rate.

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Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool recommends Flow. The Motley Fool has a disclosure policy.

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Want to get the best airline travel deals and experiences? Here’s why you might want a premium airline credit card. [[{“value”:”

The airline industry is always trying to find ways to stay profitable while flying millions of people safely around the world, and airline credit cards and travel rewards have become a big part of that picture. Travel rewards credit cards are big business — not just for banks, but for airlines that sell frequent flyer miles and other travel perks to banks and their credit card customers.

Just in the past few months, there have been a few big developments in the world of airline credit cards. American Airlines and Delta Air Lines and their bank partners have made some eye-opening announcements about their future plans and intentions to make more money with airline credit cards. The future of air travel — from booking flights to extra fees and in-flight extra experiences — could be changing fast.

Let’s look at a few predictions for what could be coming next to the world of airline frequent flyer rewards and airline credit cards.

1. More rewards and incentives for airline cardholders

In March 2024, American Airlines announced that it is renegotiating its airline credit card deals with its partner banks, and said that it wants to increase its revenue from credit cards to 10% of the airline’s total revenue (up from 7% today).

We don’t know exactly what American Airlines is going to do next as far as new rewards and incentives for its airline credit cards. But this announcement is a sign that airlines want to make more money from credit cards, and they’re going to rely on their bank partners to get more creative and sweeten the deal.

This could be good news for airline credit card customers. You might start to see more rewards and better reasons to reach for your airline credit card when booking your next flight. But it could be bad news for anyone who doesn’t have an airline credit card, and who isn’t in a frequent flyer program.

2. Fewer good deals for “non-preferred” travel agencies

As part of its March 2024 announcement, American Airlines also said that, starting May 1, 2024, AAdvantage® miles and elite status Loyalty Points can only be earned by booking flights directly with American Airlines (or partner airlines or preferred travel agencies).

As of April 27, 2024, American Airlines has not announced specific details on what its “preferred” travel agencies are. But this is a warning sign that in the near future, not every cheap flight search engine or online travel agency might get you the best deals on flights. Airlines will want you to book your flights directly with them. They want to know more about their customers, they want to know your preferences, and they want to control when and how you get the best price on airfares — rather than giving away that power to outside travel agencies.

3. Basic economy gets more “basic”

If you’re (like me) still buying basic economy airline tickets, your life as an airline passenger might be about to get more complicated and expensive. My usual strategy over the years has been to just try to buy the cheapest ticket on whatever airline I can find — I haven’t been particularly loyal to any airline.

But airlines don’t want to give away cheap deals on basic economy fares. Airlines are going to use “carrots and sticks” to try to get more customers to spend more money on higher-class airfares, not just basic economy. And if you’re a basic economy customer, be prepared to take some financial risks and accept some inconvenience for that lower-priced ticket.

Just as airlines have eliminated little perks for basic economy like free seat selection and sometimes even free carry-on bags, the basic economy experience might soon feel more like a low-budget airline where you get nickel and dimed for every last thing. Is this a good business move for airlines? That’s debatable, but the message seems to be clear: if you want a better airline passenger experience, be a more loyal, lucrative customer for the airlines — and don’t buy basic economy tickets.

4. A growing gap between premium airline credit cards and the rest

In its March 2024 announcement, American Airlines told investors that it is now earning approximately 80% of its revenue from AAdvantage® members and from airline tickets that cost more than basic economy. American Express also recently announced that it is making a bigger share of profits from premium credit cards, and not seeing any slowdown in customer demand.

According to Bloomberg, American Express customers’ spending on air travel increased by 9% in Q1 2024, and much of that came from “front-of-cabin” tickets like first class and business class. Delta Air Lines and American Express also announced in February 2024 that they are expanding perks (and raising fees) for their premium Delta Air Lines cards.

These announcements could be a sign of a larger industry trend: higher fees for premium travel credit cards, and better perks for bigger spenders. This doesn’t mean that lower-fee cards will get “worse,” but the better deals on airline tickets are likely going to keep flowing toward premium cards that charge higher annual fees.

Bottom line

Airlines want to own more of your business — from the site you use for booking to the credit card you use to pay. They want you to book your flight on the airline website or app, they want you to be an airline credit cardholder, and they want you to join their frequent flyer program.

The upside for customers: if you go deeper into your relationship with the airline, they will offer better deals and perks. The downside: it might get harder for non-frequent-flyer program members to find good deals.

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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.American Express is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool recommends Delta Air Lines. The Motley Fool has a disclosure policy.

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If you have a cash back credit card, you can contribute more to retirement than you think. Learn how to turn your cash back into a nest egg. [[{“value”:”

Experts recommend saving at least 15% of your gross income for retirement. That means, for every $10,000 you earn annually, the recommended contribution would be $1,500. And while some Americans may breeze past 15% to higher percentages, plenty of others are struggling to contribute even half the recommended amount.

For those who use cash back credit cards, however, there might be another way to contribute to your golden years. You can use your cash back to invest for your retirement. While investing your cash back in this way may not seem substantial, it can grow to a surprisingly large amount over time, as I’ll show below.

How to turn your cash back into an investment for retirement

Most credit cards let you transfer your cash back into a checking account for a 1:1 conversion. In other words, if you have $100 in cash back, you can transfer it to a linked bank account without any devaluations. This isn’t always true for rewards credit cards, especially travel cards that give higher valuations when you redeem miles for travel, but many cash back cards give this option without much hassle.

If your credit card lets you deposit cash back or rewards into your bank account, you can then transfer the amount to a brokerage account. Depending on your risk tolerance, you could then invest it in different securities, like stocks and ETFs. For example, you could invest it in an index that tracks the S&P 500. Considering that the S&P 500 has had an average annual return of 10% for the last 50 years, you could grow these small contributions into a sizable sum before retirement.

For example, let’s say your monthly expenses (excluding rent and mortgage payments) equal $2,000. Let’s also assume that you have a credit card that earns 2% back on all expenses. Earning 2% back on $2,000 in monthly expenses would leave you with $40 each month. If you invested $40 monthly into an index that averaged an annual return of 10%, you would have $212,444 after 40 years of investing, according to the compound interest calculator on investor.gov. That breaks down to $19,200 in contributions and $193,244 in interest.

Is $212,444 enough for retirement?

With inflation, probably not.

That said, if you could contribute $60 of your own income — for a total contribution of $100 — you would have $531,111 under the same conditions outlined above. That’s still not as much as most Americans expect they’ll need for retirement ($1.46 million, according to the Northwestern Mutual’s 2024 Planning & Progress Study). But you wouldn’t be far from the current median.

In fact, in 2022, the median retirement balance for those in or near the age of retirement (65 to 74) was $200,000, according to retirement research by The Motley Fool. If we assume an average annual inflation rate of 2.5%, then 40 years from now $531,111 would be worth about $197,802 in today’s dollars.

That said, let’s not stray too far from the point, which is that investing your cash back for retirement can help you grow your nest egg. While you probably don’t want to rely solely on credit card rewards to save for retirement, using cash back for this purpose can bolster your current contributions. Of course, you’ll want to pay your cards in full and on time to avoid paying credit card interest. If that’s your current practice, consider investing your rewards for the future. Who knows — by the time retirement rolls around, you might have grown your rewards tenfold.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2025

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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