Money Management

Everyone has to pick a travel rewards team when they start collecting. See how your pick ranks. [[{“value”:”

For U.S. cardholders, the credit card space has four main travel rewards programs:

Amex Membership RewardsCapital One Venture RewardsChase Ultimate RewardsCiti ThankYou Rewards

When you first start collecting travel rewards, you’re going to need to choose a program. Having used all four to varying degrees, I can say they each have their pros and cons, including varying quality of transfer partners.

Amex and Chase both have the most comprehensive programs, so they rose to the top of the list. But choosing an exact order for this list turned out to be a little harder than I expected. Here are the results.

1. Chase Ultimate Rewards

I’ll be honest, I went back and forth on who gets first and second place. I’m a bit of an Amex enthusiast, so my bias leans me that way. However, I had to objectively give the win to the Chase Ultimate Rewards program.

The main thing that makes this program stand out above the others is Chase’s travel portal. Specifically, the fact that a few Chase credit cards give you an increased rate on redemptions through that portal.

If you have the right Chase card, you can get $0.015 per point when you redeem through the portal. This is a great rate for folks who don’t want to jump through the regular hoops to transfer and redeem points at peak value.

2. Amex Membership Rewards

The American Express Membership Rewards program is a close second here. And I’d argue that it wins by a big margin if your only interest is transferring your points.

Amex has 17 airline transfer partners, 10 of which Chase doesn’t have and three that are exclusive to Amex. (FYI, Chase has only two partners that Amex doesn’t: United MileagePlus and TAP Air Portugal.)

All of Amex’s airline partners transfer at a one-to-one rate except JetBlue (this transfers at a 1:0.8 rate). This means that you’ll get one mile in the partner program for each Membership Rewards point you transfer — unless you get a bonus.

That’s right, Amex regularly has transfer bonus offers. These can give you up to 50% more points or miles when you transfer Membership Rewards points to the eligible partner program.

3. (Tied) Capital One Venture and Citi ThankYou

Neither Capital One Venture nor Citi ThankYou is as robust or lucrative as the Chase and Amex offerings. However, both programs do still have their merits.

Indeed, figuring out a winner here is actually pretty hard. Both programs offer roughly the same number of partners, including 10 overlapping partners. Most are 1:1 transfers, though Capital One Venture has worse rates on two airlines and Citi is worse for one hotel brand.

Both programs have their own travel portals where you can directly use points to book travel. And they both give you a value of $0.01 per point/mile when you redeem for travel through the portal.

In the end, choosing between the two programs will likely come down to one of two factors:

Do you like a particular card best? Citi has one travel rewards card that earns ThankYou points. Capital One has three personal card options (plus three business cards). You may want a specific card for its rewards, welcome bonus, or perks.Is there a specific airline you want to use? About half of the partners overlap, but that leaves a lot of partners that don’t. If you use one of these specific partners, go with that program.

Overall comparison

Sometimes one good chart is worth a thousand words. Take a look at all of the airline transfer partners side by side:

In the end, as long as you choose a program that you’ll use, you really can’t go wrong. Points that expire or are allowed to languish in your account aren’t worth anything at all.

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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.JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. American Express is an advertising partner of The Ascent, a Motley Fool company. Citigroup is an advertising partner of The Ascent, a Motley Fool company. Brittney Myers has positions in American Express. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool recommends Southwest Airlines. The Motley Fool has a disclosure policy.

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Why bust your budget on Mother’s Day? Read on for ways to pull off a fun and affordable celebration. [[{“value”:”

Moms have a tendency to give their kids, well, everything. And that extends into adulthood.

If you have kids of your own, how many times has your mom come over to babysit in a pinch? And how many times have you, in recent years, called your mother to seek advice, complain about work, or just plain shoot the breeze?

If your mom is a big part of your life, you may be inclined to try to make Mother’s Day as special as possible this year. Data from the National Retail Federation finds that Americans expect to spend $254 on average on Mother’s Day 2024 between gifts and celebrations. But if your financial situation isn’t so great, that’s a lot of money to be spending on a single day.

If you don’t have enough money in savings, for example, to cover three months of essential living expenses, then you probably shouldn’t be spending $254 on Mother’s Day alone. Similarly, if you owe money on credit cards, your mom would probably prefer that you focus on paying down your balance and minimizing your interest rather than showering her with gifts.

The good news is that it doesn’t necessarily take a lot of money to pull off a great Mother’s Day celebration. Here are a few options that shouldn’t bust your budget.

1. Take a hike or nature stroll

If your mom is the outdoorsy type, it may be a rare thing for her to get to spend an afternoon with you exploring local trails or marveling at different plant species. The simple act of planning out a route for a hike or walk and carving out the time may mean more to your mom than you could know. So instead of springing for theater tickets or a fancy dinner, get outdoors together.

2. Take a walk down memory lane

If your mother isn’t the type to want to spend a few hours in the woods or on a trail, take a walk down memory lane instead. Put together a slideshow of family photos and celebrations, set it to music, and voila — you’ve got the makings of a great Mother’s Day gift and entertainment. Chances are, your mom will want to watch it over and over again.

3. Have a potluck brunch

Mother’s Day brunch at a restaurant might go something like this: You show up for your reservation and get stuck waiting 40 minutes in a cramped corner for your table to be ready. You then wrangle your family around a too-small table where servers bump into you constantly because the place is packed, eat your meal in a hurry to escape that situation, and pay $250 for the privilege of having someone else cook your eggs and brew your coffee.

If that sounds like a less-than-fun idea, host a potluck brunch instead and have all participants (other than your mom, of course) bring their favorite dish. If your kids are old enough to cook with supervision, let them take charge of the French toast casserole or crumb cake. Not only might you save a bundle, but you might end up with a tastier meal in a more relaxed setting.

It’s natural to want to go all out on Mother’s Day. But if money is tight, these options could be the perfect way to show your mom just how important she is to you.

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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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As a retiree, it’s a good idea to spread your money across different assets. Here are some options to explore. [[{“value”:”

The average baby boomer in 2024 has $120,300 in retirement savings, according to Northwestern Mutual. Ideally, though, you’ll be entering your senior years with more savings than that.

It’s important to find the right home for your retirement savings so you have access to cash when you need it, but also have a way to continue growing your wealth as a senior. With that in mind, here are three options for your retirement savings to strongly consider in conjunction with one another.

1. Savings accounts

Workers are advised to maintain an emergency fund at all times for unplanned expenses, like home or car repairs, as well as for periods of unemployment. As a retiree, you clearly don’t have to worry about the latter since you’re past the days of reporting to a job. But you might still encounter your fair share of unexpected bills. For this reason, it’s important to keep some of your nest egg in a regular savings account.

These days, that’s not such a raw deal, because savings accounts are paying pretty generously. In time, that could change, and interest rates may drop substantially so you’re not earning very much on the money you keep in the bank. But even so, it’s important to have easy access to cash at all times, and a savings account gives you exactly that.

2. CDs

During retirement, it’s important to do what you can to grow your savings further while minimizing your risk. People in their 20s and 30s can often afford to put the bulk of their savings into the stock market because they have decades to ride out downturns. As a retiree needing to live off of your savings, you no longer have that luxury.

That’s why it’s a good idea to keep some of your retirement savings in cash. This way, if the stock market tanks during your retirement, you’ll be able to sit tight and avoid liquidating investments at a time when their value has dropped.

But when it comes to maintaining cash savings, you have options beyond a regular savings account. You could also open a CD and keep some of your money there.

CD rates tend to be higher than savings account rates. And more so than that, CDs can serve as a predictable source of income for you in retirement because the rate you lock in when you open one is the rate you’re guaranteed until the account term expires.

If you’re going to keep some of your retirement savings in a CD, though, set up a ladder so you have cash freeing up at various intervals. In fact, if you know there’s a good chance that you’ll need to live off of that cash, you may want to set up a CD ladder that has a CD maturing every month, or every other month.

3. Roth IRAs or Roth 401(k)s

While it’s a good idea to not go too heavy on stock investments in retirement, you should still maintain a stock portfolio so your nest egg continues to grow. A Roth IRA or Roth 401(k) may be your best place to house those investments.

Both Roth IRAs and Roth 401(k)s give you the benefit of tax-free withdrawals. At a time when your income may be lower than what it was during your career due to not working, that’s an important thing.

Plus, the money you keep invested in a Roth IRA or Roth 401(k) can continue to grow tax-free during your retirement. And while you may need that money to live on, if you don’t, you can let it sit and continue growing indefinitely. Unlike traditional IRAs or 401(k)s, Roth accounts do not impose required minimum distributions.

Ultimately, it’s a smart idea to have your retirement savings in different assets. With cash, you don’t run the risk of a market event impacting the value of your money. With stocks, you take on risk, but you might enjoy larger gains that ultimately give you more spending power. If you divide your retirement savings up between a savings account, CDs, and a Roth IRA or Roth 401(k), you can set yourself up with the best of all worlds.

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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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Was your business tax return more complicated than expected in 2024? You might need an accountant. See why small business owners should hire a CPA. [[{“value”:”

The end of tax season is a good time to reflect on the value of professional tax help, especially for small business owners. While the IRS is trying to make it easier for many individual taxpayers to file their own taxes faster, cheaper, and even for free, small business owners often need an accountant.

If you’re starting a business or ramping up your side hustle into a full-time income, you might want to start thinking about hiring an accountant. As a longtime freelancer and small business owner, I’ve been working with the same accountant for over 10 years, and it’s always been money well spent. I don’t know why any small business owner would want to go through the hassle and stress of doing your own taxes. Get an accountant, and spend your time more profitably.

Let’s look at a few reasons why your small business should hire a CPA or other professional tax advisor.

1. File your business (and personal) tax returns

It’s true that not everyone needs to hire an accountant, and perhaps not even every small business owner. If your business is simple and you don’t have a legal business entity with an employer ID number (EIN) that is required to file its own tax return, you might be able to file your own taxes with one of the best tax software programs.

But for all other business owners, hiring an accountant makes everything so much simpler. When you work with an accountant for your small business taxes and personal tax returns, the accountant can take care of all the paperwork at once, all in one place. The tax returns get filed on time and the tax refunds (if any) arrive promptly; I’m no longer stressed about tax season, because my accountant has made the process into a well-oiled machine.

2. Find opportunities for tax savings

Working with an accountant can help you get professional tips on the latest changes in the IRS tax code, and personalized advice on how you could handle your small business tax situation differently. For example, a small business tax accountant can help you set up your limited liability company (LLC) to file taxes as an S Corporation. This can give you extra financial flexibility for payroll taxes and the tax treatment of your business income.

A good accountant doesn’t just know how to file tax returns; they can also answer questions and give big picture advice throughout the year. Your accountant can help you make better moves in your overall personal finances as a small business owner, and maximize your tax advantages.

Whether it’s understanding the qualified business income deduction, or recommending how to set up a SEP IRA or other small business retirement plan to invest for retirement, accountants can help you manage your money in a tax-efficient way.

3. Offer an extra set of eyes to get details right

I write about taxes for a living and I’m exceptionally detail-oriented (and sometimes even passionate) about filing my taxes and estimating how much tax I owe throughout the year. But even for a tax-savvy business owner, it’s a huge relief to know that you have another set of (professional) eyes on your tax returns.

4. Be in your corner in case of an IRS audit or tax bill

Hiring an accountant can give you an ally and supportive assistant in case you have to deal with the IRS. You as a business owner and as a taxpayer are ultimately responsible for the information on your tax return, of course. And your accountant will expect you to provide them with accurate, up-to-date information about your business income and expenses.

But sometimes mistakes do happen, and taxes can be underpaid or underestimated. Having an accountant in your corner can help you navigate possible questions from the IRS, or understand your options in case of an IRS tax audit.

5. Recommend future tax planning strategies

One other big advantage of hiring an accountant is how they can help you think ahead. A good small business accountant should not just be focused on this year’s tax return — they should help you plan for the future and adapt your tax strategies as your business grows.

If your business is making more money than ever or suffering through an industry-wide downturn, an accountant can help. If you’ve experienced a big financial windfall in your business, like a big new contract or a new client, or selling shares of ownership of your business to new investors or partners, an accountant can help. If you’re going through big changes in your personal life and personal finances, like the arrival of a new child, a divorce, or receiving an inheritance, your accountant can help you navigate the tax implications.

Bottom line

Some tax-savvy entrepreneurs might struggle with the idea of paying money for an accountant if you can do the work yourself (or use tax software). But small business taxes are often more complicated than personal tax returns, even for relatively simple businesses.

Hiring an accountant helps you get your taxes done right, and it helps you save time (and ultimately money) by freeing you up to do more of what you do best as an entrepreneur. Working with an accountant can unlock significant value for your life as a business owner, not just during tax season, but all year round.

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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 sick of wasting food and overspending on groceries? Meal planning can save you time and money and reduce food waste. Try these tips to save even more. [[{“value”:”

After a long day at work, you may be tempted to order takeout, even if your fridge is filled with food. But a $15 meal can quickly turn into an expense of $25 or more after you pay delivery and service fees and leave a tip.

Meal planning can help you eat better and provide economic benefits. Spending half a day prepping meals for the week can save you money. Here are a few tips to help you keep more money in your checking account as you meal plan:

1. Use mobile apps to plan your meals and shopping list

If you want to save money on food, it’s best to have a plan. Having a solid list of ingredients for your recipes for the week can be helpful so you know what to pick up at the grocery store. Here are some apps that can help you plan your meals more effectively.

Cooklist: The Cooklist app can help you reduce your food waste. It lets you document what’s in your fridge and remembers expiration dates. Cooklist also displays recipes based on what’s in your fridge, freezer, and pantry to save you time.Flipp: This app finds and helps you organize your digital coupons while comparing the prices of various products at different stores within the app. The app also shows you sales fliers for nearby stores. When you’re ready to shop, this tool can help you find the best deals faster.Cash back apps: Using cash back apps is a great way to save money when you shop for groceries. One example is Ibotta, which rewards you with cash back when you buy eligible items at participating retailers.

2. Use everyday ingredients that you can mix and match

To avoid wasted food and get more use from the food you buy, focus on buying ingredients that are easy to mix and match. For example, potatoes can be used in many recipes, and rice is an excellent side dish. Another great way to do this is to add leftovers to your meal, whether the protein from dinner the night before or extra ingredients you didn’t use in the original recipe.

3. Shop generic brands

We all have our favorite brands. Generic Oreos don’t taste the same as the original, and buying the original is OK if you prefer one brand over another. However, mixing generic brand ingredients into your dish is a great way to save a few dollars when meal planning. Canned goods and pasta are good staples to buy — they’re cheap and have a long shelf life.

4. Buy in bulk

Consider buying in bulk for a better price if you have the storage space. Rice, pasta, and canned goods are great choices. When you buy in bulk, you shop less often, meaning you waste less time and have fewer chances of impulse buying. But ensure you can afford the annual membership fee before joining a warehouse club like Costco.

5. Pay with a cash back card to earn rewards

Why not get rewarded when spending money on meal prep essentials? Many shoppers like to use cash back credit cards to earn rewards when buying groceries and other household goods. While you won’t get a direct discount on your grocery bill, you can get value from the rewards you earn.

Keep your finances top of mind

As you plan your meals, don’t ignore your personal finances. Look for ways to keep your spending in check when shopping for food for the week. Use what’s already in your fridge to prevent waste, and buy generic brands and bulk items when possible. If you struggle to stay on budget when you shop, using one of the best budgeting apps can be helpful.

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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.Natasha Gabrielle 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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Looking for ways to spend less on medication? Sometimes, all you have to do is ask. Keep reading to learn more. [[{“value”:”

If prescription drug prices are straining your personal finances, your insurance coverage might be to blame. Each year, Americans pay hundreds of billions of dollars on medication, with the average American estimated to spend three times as much on prescription drugs compared with patients in other countries.

While the White House and Congress alike have shown an appetite for reducing drug prices consumers face, many Americans continue to struggle with the high cost of prescriptions. If you’re one of them, read on to find out how you and your family can save money on your next trip to the pharmacy.

Name brand vs. generic

The distinction between name-brand drugs and their generic alternatives is well known to many consumers, but bears repeating. In many cases, generic medications are nearly identical to their name-brand counterparts. Typically, they include the same ingredients and treat the same symptoms, but at a fraction of the price.

As a patient, it can be easy to assume that your doctor is considering the cost of medication when prescribing drugs, but that isn’t always the case. Oftentimes, healthcare providers don’t know the exact costs their patients will face when picking up the medications they prescribe. If you’re concerned about the cost of a drug, ask your doctor whether there are generic options or lower cost alternatives to your medication.

In some cases, a name-brand medication may be necessary, either due to a lack of availability or effectiveness of lower-cost or generic drugs. Many drugmakers offer financial assistance to consumers who need help affording name-brand medications. These Patient Assistance Programs (PAPs) can reduce or eliminate the cost of prescriptions for qualified patients, and can usually be found on a drug maker’s website.

Understanding pharmacy options

Not all pharmacies are created equal. Your health insurer likely provides different coverage rates for different pharmacies. This can mean that simply going across the street to pick up your medications could save you money.

Health insurance providers typically categorize pharmacies into three categories: out of network, in network, and preferred. Patients going to an out-of-network pharmacy could be on the hook for more of the cost of their drugs than those going to an in-network provider, and it is often cheapest to go to a preferred pharmacy, if available. A pharmacy’s status can change over time, so be sure that your pharmacy is still in-network or preferred before your next refill.

It also pays to check online options, which can be both cheaper and more convenient. Amazon Pharmacy and CostPlusDrugs.com are just two of the many online pharmacies that could offer more cost-effective options for medication. Additionally, prescription services such as GoodRx may offer digital coupons without using your medical insurance.

Explore your coverage options

In some cases, it may make sense to switch insurance coverage altogether if you or your family need certain high-cost medications. Those on a Medicare Part D prescription drug plan can change their coverage each year during Medicare open enrollment from Oct. 15 through Dec. 7. Other options include receiving coverage from a spouse’s medical insurance plan, or researching Affordable Care Act plans in your state.

When considering changing coverage, be sure to know the provisions of a new plan, and how they will affect your medication coverage. Consult an insurer’s formulary, usually located on their website, for a detailed explanation of which drugs it covers and in what amounts.

As mentioned above, it is important to understand which local or online pharmacies are covered by an insurer before making the switch. Be aware that changing medical providers can have broad effects on your health insurance coverage beyond prescription drug costs, so take care when considering this option.

When looking to save on prescription drugs, first talk to your doctor, who may offer lower cost alternatives or generic versions of your medication. Confirm whether your pharmacy is a preferred provider, and consider online options. In some situations, it may make sense to change your medical coverage plan altogether, but this should be done with great caution. By understanding your coverage and alternatives, you could see big savings when you go to the pharmacy.

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

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