Wednesday, October 24, 2018

5 Areas AI & Behavioral Tools Can Transform Your Advisory Business

5 Areas AI & Behavioral Tools Can Transform Your Advisory Business

Overview

[On-Demand Only]

**If you have previously registered for this event, please click here, and log-in using the email you registered with to access the on-demand console**

 

Sponsored by:

Pershing

 

 

Artificial intelligence (AI) is a largely untapped resource in the investment industry. Though this new technology can be confusing and overwhelming at times, smart advisors are embracing this powerful tool to address their greatest needs. AI can improve outcomes in at least five different areas, including overall practice management, client engagement/communication, investments/stock predictions, fraud/risk management, and regulatory/compliance oversight.

Join this complimentary webcast to get a deeper and clearer appreciation of AI and how this rapidly evolving technology can help transform your practice. You’ll discover:

  • The best ways to harness and mine client data to improve communication and business outcomes
  • How to use the latest AI-related tools to improve results, including investment/portfolio and risk analytics
  • Ways that AI can boost firm productivity, strengthen client relationships and reshape the future of your practice

Speakers

Doug Fritz

Doug Fritz, CEO & Founder, F2 Strategy, Inc.

Doug Fritz is CEO and Founder of F2 Strategy, Inc, a leading technology and marketing consulting firm to the wealth management industry. Prior to founding F2 Strategy, Doug was Chief Technology Officer for First Republic Private Wealth Management where he led the execution of the Wealth Tech Roadmap and introduced transformative technology to an amazing, client-focused firm. The new and upgraded tools he rolled out for their portfolio managers will enable FRB to continue its stellar client experience reputation well into the 21st century. Prior to joining First Republic, Doug was senior vice president at Wells Fargo Wealth Management where he ran strategy, implementation and support for the Portfolio Management Desktop including portfolio analytics, advisor dashboard, compliance and proposal generation. Doug was poised for success for these roles after years as a management consultant for KPMG Consulting on Wall Street where he managed large global industry initiatives. Doug is frequently quoted in the media on a wide range of transformative and innovative industry topics. He earned a bachelor’s degree in Russian and International Business from Southern Illinois University and started his career in Russian Equities at Credit Suisse in Moscow.          

Tommy Marshall

Tommy Marshall, Fintech Advisor, Accenture

Tommy Marshall has over 20 years of experience in bringing results-driven, resourceful, management consulting services to top financial institutions, including two years as Accenture’s fintech lead for North America. He also has experience in payments, wealth management banking and capital markets, which allows him to help clients address digital financial services end-to-end.              

Gavin Spitzner          

Gavin Spitzner, President, Wealth Consulting Partners, LLC

Gavin has over 25 years of experience helping banks, RIAs and broker dealers overcome complex obstacles standing in the way of accelerated, profitable growth. Operating at the intersection of business strategy, the fintech landscape and execution, Gavin has helped dozens of organizations launch or enhance wealth management platform solutions leveraging innovative technologies and processes designed to improve business performance and enhance client experiences. Gavin’s consulting firm Wealth Consulting Partners, LLC helps wealth management organizations break through corporate inertia with applied strategy support and guidance.

Register Now!

Friday, October 12, 2018

How to Make the Most of Your Priority Pass This Winter

At NerdWallet, we strive to help you make financial decisions with confidence. To do this, many or all of the products featured here are from our partners. However, this doesn’t influence our evaluations. Our opinions are our own.

Traveling over the holidays doesn’t have to be an ordeal. In this series, we’re sharing expert advice to help you use your credit cards to travel smarter and focus on having fun.

Among the benefits of premium credit cards is an additional piece of plastic that unlocks thousands of airport lounges worldwide. By simply showing this black-and-gold card, travelers can find an area of rest and respite away from other tourists.

But are you truly getting the most out of your Priority Pass membership? With this winter forecast to be one of the busiest travel seasons, taking a break from the crowds and escaping to a semiprivate area is even more important.

Which cards come with Priority Pass Select membership?

Priority Pass Select is a common benefit among most premium credit cards. Two of the cards that include membership for the primary cardholder are:

The Platinum Card® from American Express

The Platinum Card® from American Express

Apply Now on American Express's secure site
  • Recommended Credit Score
  • 690

    850

    Good - Excellent

    See if you may qualify
  • Card Details
  • Pros

    • Luxury travel perks (Uber credit, airline fee credit, lounge access, etc.)
    • High rewards rate in certain categories
    • No foreign transaction fees

    Cons

    • High annual fee
    • Airline fee credit is limited
    • Low rewards rate on most spending
    View Rates and Fees

    Annual Fees

    $550

    APR

    • Purchase: N/A

    Bonus Offers

    Earn 60,000 Membership Rewards® points after you use your new Card to make $5,000 in purchases in your first 3 months. Terms Apply.

    Intro APR

    • N/A

    $550Earn 60,000 Membership Rewards® points after you use your new Card to make $5,000 in purchases in your first 3 months. Terms Apply.

  • Additional Information
    • Earn 60,000 Membership Rewards® points after you use your new Card to make $5,000 in purchases in your first 3 months.
    • Enjoy Uber VIP status and free rides in the U.S. up to $15 each month, plus a bonus $20 in December. That can be up to $200 in annual Uber savings.
    • 5X Membership Rewards® points on flights booked directly with airlines or with American Express Travel.
    • 5X Membership Rewards points on prepaid hotels booked on amextravel.com.
    • Enjoy access to the Global Lounge Collection, the only credit card airport lounge access program that includes proprietary lounge locations around the world.
    • Receive complimentary benefits with an average total value of $550 with Fine Hotels & Resorts. Learn More.
    • $200 Airline Fee Credit, up to $200 per calendar year in baggage fees and more at one qualifying airline.
    • Get up to $100 in statement credits annually for purchases at Saks Fifth Avenue on your Platinum Card®. Enrollment required.
    • $550 annual fee.
    • Terms Apply.
    View Rates and Fees

Chase Sapphire Reserve®

Chase Sapphire Reserve®

Apply Now on Chase's secure site
  • Recommended Credit Score
  • 720

    850

    Excellent

    See if you may qualify
  • Card Details
  • Pros

    • A large bonus
    • High rewards rate
    • High value benefits
    • Cool factor - metal card
    • No foreign transaction fee

    Cons

    • High annual fee
    • Needs excellent credit

    Annual Fees

    $450

    APR

    • APR: 19.24% - 26.24% Variable APR
    • Cash Advance APR: 27.24%, Variable

    Bonus Offers

    Earn 50K bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 toward travel when you redeem through Chase Ultimate Rewards®

    Intro APR

    • N/A

    $450Earn 50K bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 toward travel when you redeem through Chase Ultimate Rewards®

  • Additional Information
    • Earn 50,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 toward travel when you redeem through Chase Ultimate Rewards®
    • Named "Best Premium Travel Credit Card" for 2018 by MONEY® Magazine
    • $300 Annual Travel Credit as reimbursement for travel purchases charged to your card each account anniversary year
    • 3X points on travel immediately after earning your $300 travel credit. 3X points on dining at restaurants & 1 point per $1 spent on all other purchases. $0 foreign transaction fees.
    • Get 50% more value when you redeem your points for travel through Chase Ultimate Rewards. For example, 50,000 points are worth $750 toward travel
    • 1:1 point transfer to leading airline and hotel loyalty programs
    • Access to 1,000+ airport lounges worldwide after an easy, one-time enrollment in Priority Pass™ Select
    • Up to $100 application fee credit for Global Entry or TSA Pre✓®

The Starwood Preferred Guest American Express Luxury card and the Hilton Honors American Express Aspire card also have this benefit.

Keep in mind that these credit cards often come with a high annual fee of $450 to $550, and can feature other benefits like rewards points and travel insurance.

Once you’ve confirmed your Priority Pass membership and have received your card or downloaded it through the app, there are two easy ways to use it to escape the madness of holiday travel: to access airport lounges or for other perks like restaurant discounts.

Finding Priority Pass lounges at airports

Priority Pass Select membership allows cardholders entry into over 1,200 airport lounges around the world, including hundreds in North and South America. In most cases, cardholders just have to show their membership card and an airline boarding pass for entry.

» Learn more: How to maximize your Priority Pass membership

Unlike traditional airline lounge programs, members aren’t locked into visiting the locations of the airline they are flying on. Instead, Priority Pass Select membership is accepted at any participating lounge — even independent facilities — in the network. This allows members to find the right space for their needs, especially during peak travel times.

Finding a lounge is a surprisingly easy process, even when traveling. Go to the Priority Pass website or use the Priority Pass app (available for both iOS and Android phones) to find the nearest location. At large airports, it’s not uncommon to find multiple lounges within a short walk that accept Priority Pass.

Using Priority Pass elsewhere

While lounge access may be the most well-known benefit of Priority Pass, cardholders also can find perks on the website or app for other places, such as credits at participating restaurants and retailers, by using their pass when they arrive.

» Learn more: So you’ve got airport lounge access? You sure?

While the actual discount will vary based on the restaurant and location, members can expect to save at least $28 per visit when they present their Priority Pass membership card in person or through the app.

Another Priority Pass benefit is access at select U.S. airports to Minute Suites, mini-hotel rooms where travelers can rest between flights. Priority Pass holders can get access for one hour free (and a discount on extra time) when a room is available at select lounges.

Will my Priority Pass be denied?

Although Priority Pass is a great benefit to escape the chaos of holiday travel, it also comes with limitations. In some situations, your Priority Pass may not gain you lounge entry. Here’s when it could happen:

Nonparticipating airport lounges

Not every lounge is a member of the Priority Pass program. American Express Centurion Lounges, for example, are only open to holders of The Platinum Card® from American Express.

Airport lounges at capacity

Lounges can refuse entry to Priority Pass holders if the location is already at capacity with their own members. Priority Pass members can visit a different lounge, so be sure to check the website for a backup plan.

Not carrying your Priority Pass card

Even if you have an active Priority Pass membership, your credit card may not be enough to get you into the lounge. Be sure to carry your physical Priority Pass card with you and download a virtual card to your smartphone app.

How to maximize your rewards

You want a travel credit card that prioritizes what’s important to you. Here are our picks for

You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2019 , including those best for:

Planning a trip? Check out these articles for more inspiration and advice:
8 pro tips for smart and cheap family travel
What every airline reservationist knows that you should, too
Plan my trip: Top websites for travel deals

Oh No, #travelfail? Your Credit Card’s Insurance Could Bail You Out

At NerdWallet, we strive to help you make financial decisions with confidence. To do this, many or all of the products featured here are from our partners. However, this doesn’t influence our evaluations. Our opinions are our own.

Traveling over the holidays doesn’t have to be an ordeal. In this series, we’re sharing expert advice to help you use your credit cards to travel smarter and focus on having fun.

The holiday season can derail even the best-laid travel plans very quickly. All it takes is one massive snowstorm, even one way across the country, for travelers to go from actually traveling to being stuck at an airport.

Depending on what’s in your wallet, though, you may have some aid you don’t even know about. If you paid for your trip with a travel credit card, you may already have travel insurance benefits available to you.

Which credit cards offer travel insurance benefits?

A little-known perk of travel credit cards, travel insurance benefits often require no activation and are granted with little more than a purchase. More credit cards offer travel insurance than you may realize, including:

In addition, business credit cards may also come with select travel insurance benefits. These perks extend to any travels purchased with the card, not just business travel. Business cards that offer travel insurance benefits include:

How can these insurance benefits help me when I travel?

Data from the U.S. Department of Transportation suggests travelers’ odds of having their flights delayed while flying in the United States are 1 in 5, while the chances of an airline losing your bags are 2.46 in 1,000. Those numbers can increase when thousands of holiday passengers are displaced due to weather, air traffic holds, irregular operations and other problems.

This holiday season might be the time to consider how travel insurance could help you in the most common situations. If you paid for your flight or hotel using a points-earning or travel credit card, the good news is that you may qualify for assistance. Some of the most common benefits you may already have include:

Trip cancellation insurance

Getting sick on the day you intend to travel home for the holidays or getting into a fender bender on the way to the airport can ruin an entire trip. With trip cancellation insurance, travelers may get some of their unrecoverable costs reimbursed, like flight-change or frequent-flyer-mile redeposit fees.

Trip delay insurance

Under the trip delay and interruption benefit, travelers who are delayed by between six and 12 hours due to no fault of their own may get reimbursed for unforeseen expenses. This may include meals and a hotel room for a night, but is limited to a set amount per instance.

Baggage loss insurance

When you’re the last one standing at the luggage carousel, it could mean that your luggage is at a different airport — or even gone for good. If this comes to pass during your travels, you could be entitled to more than just a report and reassurance that it will be delivered at some point. If luggage is lost for a period of time, travelers could get reimbursement for emergency replacement items, like cell phone chargers and new clothes, up to a per-day maximum (usually around $250).

How do I activate my travel insurance benefits?

Unlike a traditional travel insurance policy, credit card benefits don’t require a separate purchase, nor do they require any sort of activation. Your insurance is in force from the moment you purchase a flight until the moment you get home.

However, your insurance benefits can vary based on how you purchase your travel. Some credit card programs grant benefits if travelers pay for trips with their credit card or points earned directly from spending. But you may not get the same benefits if you transfer points from the credit card program to another program and book a trip through the loyalty program instead.

» Learn more: How airline and hotel loyalty programs reward you during the holidays

Before you book your next trip, be sure to read about travel coverage in your card’s benefits guide and terms and conditions. That will help you understand when you would be covered, and situations where your trip wouldn’t qualify.

How do I get reimbursed?

Unfortunately, while these travel inconveniences affect you immediately, getting payment for your claims won’t be as quick. All of these benefits are meant as reimbursements for unexpected purchases. That means while you won’t get money upfront for emergency purchases, you will get your money back once your claim is approved.

Be sure to document all of your interactions with travel providers as they happen, as well as any proof required for a claim. This includes lost luggage reports and all receipts for any purchase you make as a result of your qualifying situation.

How to maximize your rewards

You want a travel credit card that prioritizes what’s important to you. Here are our picks for

You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2019 , including those best for:

Planning a trip? Check out these articles for more inspiration and advice:
8 pro tips for smart and cheap family travel
How to set a trip budget when traveling with friends
How I flew for free: Round trip NYC to India using Chase Ultimate Rewards

Tuesday, September 25, 2018

Misbehavioral Finance: How Emotions Ruin Investing Outcomes

This is Episode 6, the last episode in our Investing Strategy series, and it’s called, Misbehavioral Finance: How Emotions Ruin Investing Outcomes.  We talk with Dr. Ted Klontz, of Klontz Consulting Group, an associate professor at Creighton University and professional consultant for major entertainment management groups. Klontz has authored or co-authored six books, including, “Mind Over Money: Overcoming the Money Disorders that Threaten Our Financial Health”.  He has been a financial savior for athletes and entertainers, like Wynnona Judd, showing them the keys to successfully managing their money.

Episode 5: Investing After Retirement: Hit the Gas or Hit the Brakes?

Episode 4: Investing View From the Advisory Frontlines: A Talk With Advisors, Part II

Episode 4: Investing View From the Advisory Frontlines: A Talk With Advisors, Part I

Episode 3: Is the New Normal Now the Old Normal? Retooling Fixed Income Portfolios

Episode 2: What Keeps Advisors Up at Night in Global Mid-Cap Investing?

Episode 1: Are Mid-Caps the Goldilocks of Investing?

Check out ThinkLeader podcasts on iTunes.

Monday, September 3, 2018

How to Become a More Efficient Advisor & Open Up Client Communication

How to Become a More Efficient Advisor & Open Up Client Communication

Overview

[On-Demand Only]

**If you have previously registered for this event, please click here, and log-in using the email you registered with to access the on-demand console**

 

Sponsored by:

 

 

 

 

Being on the leading edge of technology is important, but only if you use the right tech at the right time – more technology is not always better. The key thing to keep in mind is ensuring your clients have a streamlined, user-friendly experience. Removing barriers to information and easing access to the advisor is critical to retaining clients, particularly millennial clients, who have little tolerance for a cluttered tech experience. Informed clients also allow you to spend less time explaining the basics and more time with other clients.

Join this complimentary webcast to discover what features the best client-facing technology should include to help make your relationships as efficient as possible. Afterward, you’ll understand:

  • Key considerations to make regarding your future tech decisions,
  • How to implement the right tech for your advisor team to ensure success, and
  • Actionable methods to integrate new tech efficiently and cheaply.

REGISTER NOW!

Featured Speakers:

Joel P. Bruckenstein, CFP

CFP®

Joel P. Bruckenstein, CFP® is an internationally recognized expert on applied technology for financial professionals and Publisher of the T3TechnologyHub. He is also the producer of the annual Technology Tools for Today (T3) Conference, the only FinTech conference serving the needs of independent financial advisors and those who support them.

Thursday, August 16, 2018

Keys to Growing Your Financial Advisory Business

Keys to Growing Your Financial Advisory Business

Overview

[On-Demand Only]

**If you have previously registered for this event, please click here, and log-in using the email you registered with to access the on-demand console**

Sponsored by:

 

Your front- and back-office technology critically affects client satisfaction with your advisory practice. Having the right tools can help you turn promising opportunities to new business, foster a strong internal foundation and build a cohesive team. But it’s not easy to make the right technology improvements and turn these changes into both dynamic internal synergy and first-rate client relationships.

Join this complimentary webcast to learn how to strategically and profitably grow your advisory business by:

➣ Leveraging new technology tools that set your firm apart;

➣ Boosting how efficiently your team members work together and with clients; and

➣ Identifying the best strategies to optimize front- and back-office operations.

Register Now!

Speakers

 

Deborah Fox, CEO and Founder, Fox Financial Planning Network (FFPN)

 

Deborah Fox is CEO and Founder of Fox Financial Planning Network (FFPN), a company nationally known for its comprehensive set of resources that enable advisors and the institutions that serve them to increase profitability, ensure compliance and scale their businesses to grow. Fox has been a practicing financial advisor since 1984 and is known nationally for her unique approach to holistic financial planning and wealth management services as well as her specialty planning company, Fox College Funding LLC. Fox was one of the earliest adopters of moving her business into the cloud and incorporating detailed systems and web-based technology to work more efficiently, profitably and to be able to offer a higher level of service to her clients without working harder.

Fox has also been providing consulting services to financial advisors for over 20 years. She has a reputation for being able to innately assess a situation and quickly come up with effective solutions that can lead to rapid break-throughs. She possesses strong skill sets in many areas such as marketing, practice management, technology implementation and financial planning technical skills. Fox developed the FFPN system to create the ability for a firm to unite all components of their practice – systems, technology, human capital and practice management.

While creating FFPN, Fox sought out to solve the industry problem concerning the lack of advisor adoption and implementation of available information, tools and technology. FFPN’s offerings have successfully produced a high rate of implementation for its Network members. Under Fox’s leadership, FFPN has become a standout in the industry due to the FFPN team’s ability to develop unique content, methodologies and techniques that can be quickly adopted by firms for immediate results.

Fox has been recognized by the industry by being placed on the cover of Financial Planningmagazine and is regularly interviewed and quoted by many publications such as the Wall Street Journal, Fortune, BusinessWeek, Newsweek, Forbes, Money, Fox News, Kiplinger’s, Financial AdvisorInvestment News and other industry publications. Fox is regularly asked to present at FPA, AICPA and other industry conferences. Fox Financial Planning Network is based in San Diego, CA.

 

Dan Skiles, President, Shareholders Service Group

 

Dan Skiles currently serves on the board of directors for the Financial Planning Association (FPA), the largest membership organization for the CFP professionals in the country, and includes many others who support the financial planning process.

As President of Shareholders Service Group, Skiles is involved in all aspects of managing the firm, with specific areas of focus include technology, finance, business operations and strategy. He began his career at the Jack White & Company in 1994.

Skiles is a leading industry expert who is often quoted in adviser trade publications and he also writes monthly article for Investment Advisor Magazine. He earned a bachelor’s degree and a master’s in business from San Diego State University.

Monday, June 25, 2018

How to Streamline Your Practice and Put More Focus on Clients

Alex holds a B.S. from Cornell University in Operations Research and Industrial Engineering, a Certificate in Financial Planning from Fordham University, and is a Certified Financial Planner(TM).

Alex Benke, CFP® is Head of Advice and Investing at Betterment, where he leads the Financial Planning, Quantitative Investing and Behavioral Finance research teams. In his 6 years at the firm, he’s led multiple initiatives at the cutting edge of user experience and tax management innovation, including RetireGuide and Tax Loss Harvesting+. Prior to Betterment, Alex worked for a decade as a technical lead at JPMorgan, in various businesses including equity exotics trading, credit derivatives trading, credit hybrids trading, and global counterparty credit risk. He also has been a financial planner at an independent wealth management firm.

 

Tim Welsh

President, CEO and founder

Nexus Strategy

Timothy D. Welsh, CFP® is President, CEO and founder of Nexus Strategy, LLC, a leading consulting firm to the wealth management industry.

Prior to founding Nexus Strategy, Tim was Director of Business Consulting Services for Schwab Advisor Services where he led the development and marketing of practice management resources for independent advisors. While at Schwab, Tim also held senior roles in Strategy, Marketing, Advertising, PR and Industry Content development.

Prior to joining Schwab, Tim was vice president at Merrill Lynch where he was responsible for marketing, product development and financial advisor training for the financial planning group. Tim is frequently quoted in the wealth management media on a wide range of business management and industry topics. He is the author of a number of industry white papers, a guest columnist for RIABiz, Investment News and wealthmanagement.com, and is a frequent speaker at industry conferences and events. Tim earned a bachelor’s degree in Economics from the University of California, Berkeley and an MBA in Finance from the University of Colorado.

Thursday, May 17, 2018

How (and Why) I Persuaded My Husband to Switch to a Credit Card

At NerdWallet, we strive to help you make financial decisions with confidence. To do this, many or all of the products featured here are from our partners. However, this doesn’t influence our evaluations. Our opinions are our own.

When my husband and I first started dating, we were both frugal by necessity: Our graduate student budgets and accumulating student loans didn’t leave much room for splurging. While we agreed, for the most part, on how much to spend, we differed greatly on how to make those purchases.

For me, using a credit card for almost everything seemed like a no-brainer: Not only could I earn cash back, but I also didn’t have to worry about anyone stealing money out of my bank account if my card was lost or stolen. I was also careful to pay off my balance every month to avoid interest and fees. My husband, on the other hand, didn’t want the hassle of having to pay another monthly bill, so he used a debit card for almost all of his purchases, which deducted automatically from his bank account.

While we were dating, the credit versus debit difference didn’t really matter: Money-wise, we could each do our own thing. But as soon as we got married, I knew I had to convince him that my approach was the better choice. After all, if his debit card got stolen, the thief could potentially drain our joint bank account, so my money was at stake, too.

Here’s how I persuaded him to make the switch.

» MORE: 3 reasons to choose a credit card over debit — and when not to

Valuable rewards

Unlike debit cards, credit cards often earn rewards, in the form of cash back, points or miles. At the time, I was using a basic 1% cash-back card. Once we both put the bulk of our spending on that account, we started earning $100 worth of credits every now and then.

Sometimes, we put the money toward a fancy restaurant meal. Occasionally, we shopped on our card issuer’s online portal — we still use the expensive stainless steel toaster that was beyond our normal budget but affordable with our rewards credits.

These days, we’ve optimized our credit card choices so we earn better rewards, including a higher rate for groceries and Amazon household purchases, two of our biggest expenses. We also keep things simple and transfer our accumulated cash-back rewards into our account as a credit, to help reduce our monthly expenses.

Better fraud protection

If someone steals your debit card number, your bank account can be emptied in a matter of minutes. If you quickly report the fraud, there’s a good chance your bank will help you recover the missing funds — but in the meantime, you’re missing your money and could default on bills.

If someone steals your credit card number, on the other hand, under federal law the most you could be out is $50. Additionally, many credit cards offer full protection from fraud, meaning you aren’t responsible for any of the fraudulent charges. (After a theft, you’ll need to update payment details for bills that are automatically paid with your credit card.)

We’ve been grateful for the fraud protection that comes with credit cards on many occasions when our card numbers have been stolen over the years.

Every time it happens, I’m so glad it wasn’t my bank account that was compromised.

» MORE: Credit card vs. debit card: Which is safer online?

Easier budgeting

As we combined our finances, it got harder to track the money going in and out than it had been when I just had to worry about myself. When I reviewed our monthly joint bank account statement, I didn’t always know what all of the deductions were for since there were so many — my husband was using his debit card for everything from buying gas to paying for lunch.

After he switched over to using a credit card instead, budgeting became easier. My husband could easily review his own daily charges each month, and I didn’t have to worry about tracking all of the deductions from our joint account. We each had our own credit card with predictable monthly due dates. That meant we could make one-time credit card bill payments after our paychecks arrived, instead of making multiple individual bill payments throughout the month with a debit card. Of course, we also had to be careful not to go over our budget, since credit cards let you spend up to their credit limit.

To ease my husband’s concern that he would forget to pay and face a late fee, we set up automatic bill pay.

My husband now agrees that trading his debit card for a credit card made financial sense. Twelve years and two kids later, he’s still using his credit card for all of his daily purchases, and the rewards that we earn help pad our family’s budget.

Tuesday, May 8, 2018

After being laid off, this 35-year-old founded NerdWallet with $800 — now it’s worth $500 million

Today, Tim Chen is CEO and co-founder of personal finance website NerdWallet, which sees 10 million monthly visitors and is valued at more than $500 million.

But in 2008, like so many others during the financial crisis, Chen found himself unemployed.

After spending four years working at hedge funds like Perry Capital and JAT Capital Management, he found out "basically on Christmas Day," that he was being laid off, Chen tells CNBC Make It.

"It was super devastating, because I'd just been very achievement-oriented my whole life and I was very concerned with external status and all that stuff," says Chen, who graduated from Stanford.

Now though, Chen sees it as one of the best things to ever happen to him. It turned him into a successful entrepreneur.

"I always dreamed of doing something entrepreneurial. I just never felt like I had the permission to," he says.

Stumbling onto an idea

Chen, 35, says he got the idea for NerdWallet "sitting around twiddling my thumbs," while out of work.

He had received an email from his sister, who was living in Australia, with a question about finding a credit card with lower foreign transaction fees.

"My first inclination was, 'Let me Google that for you and I'll get back to you in three minutes,' Chen says. "And, I was shocked I couldn't find anything on Google that wasn't basically marketing [or] promotional material."

Chen says he drew on his own finance experience and still it took him, a professional, a week of extensive research to compile what several major banks and credit card companies had to offer. He sent his sister an Excel spreadsheet breaking down her options.

Soon, that spreadsheet was being forwarded around widely outside of his own group of family and friends.

It made Chen realize there was "real shopability problem in financial services," where consumers often had to sift through banks' dense materials for information. Without a professional financial advisor, it's hard to compare products. Meanwhile, "Your checking account provider might give you a mortgage, a credit card, an auto loan, eventually insurance or wealth management services, and they'll make something like $50,000 off of you over the course of your life," Chen says.

"That's how the whole system works."

Chen wanted to offer more transparency with online financial services advice. So working out of his Manhattan apartment, he used $800 of his own money to cover start-up costs like web hosting and domain fees and software and started NerdWallet.

The plan was to provide pros and cons of various financial services and to answer questions, provide advice and aid people making financial decisions via articles written by professional personal finance journalists.

Tuesday, April 24, 2018

6 Ways to Get Free Money From the Government

At NerdWallet, we strive to help you make financial decisions with confidence. To do this, many or all of the products featured here are from our partners. However, this doesn’t influence our evaluations. Our opinions are our own.

Whoever said “nothing in life comes free” didn’t take into account government programs that help people pay for things like college, day care and a new home. Most of these programs are funded by taxes, so technically you pay something, but they’re as close as you’ll get to getting free money from the government.

In this article

Get help with utility bills

Find money for child care

Recover unclaimed money

Get down payment assistance

Find tax credits for health insurance

Apply for college grants

Watch out for scams

1. Get help with utility bills

Need help paying your heating or phone bill? These programs may be able to help:

  • The Low Income Home Energy Assistance Program helps low-income households cover heating and cooling costs. Grants are issued via states, which receive funding from the Department of Health and Human Services. Each state sets its own eligibility requirements, including income levels.
  • The Lifeline program offers discounted landline or cell phone service. Lifeline is an income-based program, so you must meet certain eligibility requirements.

[Back to top]

Get cash on top of the rewards you already earn.

You’ll still get the rewards your current card offers, plus an added 2-10% cash back at participating stores.

See how to earn that cash

2. Find money for child care

Day care is a major expense for many families. Annual costs for infant care range from just shy of $5,000 in Mississippi to more than $22,600 in Washington, D.C., according to the Economic Policy Institute, a nonprofit organization focused on low- and middle-income workers.

The Child Care and Development Fund can help ease the burden for low-income families. Administered by the U.S. Department of Health and Human Services, the fund gives states, territories and tribes money to distribute to families to help pay for child care. Grants are income-based and typically cover care for children under 13. Find the Child Care and Development Fund contact for your state.

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3. Recover unclaimed money

This isn’t so much free money as it is money owed to you. It could be a long-forgotten deposit paid to a utility company, a lost savings bond, unclaimed life insurance benefits or an uncashed paycheck.

West Virginia doled out more than $12 million in unclaimed funds during fiscal year 2017.

These unclaimed funds are turned over to the state when the owner can’t be located, often due to a clerical error or companies having an old address on file. Visit unclaimed.org, a site affiliated with the National Association of State Treasurers, to find out if you have money waiting to be claimed.

During the 2017 fiscal year, West Virginia doled out more than $12 million in unclaimed funds. Maine returned more than $18 million and Florida returned more than $313 million — a record for both states.

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4. Get down payment assistance

You want to buy a home but can’t afford a down payment. Enter state-based down payment assistance. These grants and loans help you cover the upfront costs of purchasing a home.

Grants and loans help you cover the upfront costs of purchasing a home.

In Nevada, for example, prospective homeowners can qualify for a grant of up to 5% of their mortgage to put toward a down payment and closing costs. District of Columbia residents can qualify for a down payment assistance loan of up to 3.5% of their mortgage. The loan needs to be repaid only if you sell, refinance or vacate the property within the first five years.

Help isn’t reserved for low-income borrowers. Nevada’s grant program is available to those with an annual income below $98,500. The D.C. program caps income eligibility at just over $132,000.

Visit FHA.com to find down payment assistance programs in your state.

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5. Find tax credits for health insurance

The future of the Affordable Care Act is murky at best. But for now, the premium tax credits issued via the program are alive and well. Here’s how they work:

Individuals and families who buy coverage through the government’s health insurance marketplace (Healthcare.gov) can qualify for a credit toward their insurance premiums. The credit can be paid directly to your insurance provider, lowering your monthly payments, or paid out as a tax credit when you file your return.

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You work hard for your money

So make the most of it. Earn cash back at thousands of shops and restaurants.

See how

6. Apply for college grants

College grants, like the federal Pell Grant, can make it easier to pay for college. Students who are eligible for the Pell Grant could get up to $6,095 for the 2018-19 award year. The exact amount awarded is based on factors that include financial need, the cost of attendance and enrollment status. Students can apply for the Pell Grant by completing the Free Application for Federal Student Aid, or FAFSA. The application is also used to qualify for many state and institutional grants and scholarships.

Other federal grants for college include:

  • The Federal Supplemental Educational Opportunity Grant
  • The Teacher Education Assistance for College and Higher Education Grant
  • The Iraq and Afghanistan Service Grant

You can also look for scholarships using the U.S. Department of Labor’s scholarship search tool.

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Watch out for scams

While there are ways to get free money from the government, there are also grant scams that claim to give you free money from the government in hopes of stealing from you. Don’t be fooled. The government rarely reaches out to people with offers of free money, and when it does, it’s never via social media.

Wednesday, March 28, 2018

How Much Does a Wedding Cost?

At NerdWallet, we strive to help you make financial decisions with confidence. To do this, many or all of the products featured here are from our partners. However, this doesn’t influence our evaluations. Our opinions are our own.

Having a wedding isn’t as simple as saying “I do” — and it’s a lot more expensive.

The national average cost of a wedding is $33,931, according to The Knot’s 2018 Real Weddings Study.

Here’s what you should know about wedding costs and how to realistically estimate what you’ll spend to take the plunge.

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Know the average costs

These are the average price tags for common wedding expenses, minus the engagement ring, according to the 2018 Knot study:

2018-Wedding-Costs_Infographic

At the very least, you’ll need a marriage license. Application fees vary by state, county, city or other conditions. The standard license fee is $27.50 in New Orleans, $50 in Boston and $100 in Santa Barbara, California.

Don’t let the numbers fool you

The $33,931 average is steep — and that figure excludes the honeymoon. But remember that averages don’t tell the whole story. Experts point out that they can easily be skewed.

“One $1 million wedding can bring up the average of thousands of $10,000 weddings,” says Jessica Bishop, wedding expert and founder of the Budget Savvy Bride.

One $1 million wedding can bring up the average of thousands of $10,000 weddings.

Jessica Bishop,

wedding expert and founder of the Budget Savvy Bride

So treat this data as a benchmark, not an expectation. And you don’t have to spring for all the items on the list. For example, you might decide to skip favors and hook your smartphone up to a speaker system instead of hiring a band or DJ.

Pay attention to details

Even if you plan a wedding with all the bells and whistles, you can still lower costs by being flexible about certain factors:

  • Hired help. Asking a friend to bartend and making decorations yourself are cheaper than paying for professional services and premium packages.
  • Location. Where you get married matters, and not just for the venue. If you plan to tie the knot in a major metropolitan area, expect higher prices and increased competition for venues and other services.
  • Guest list size. Some venues have minimum and maximum guest requirements and are priced accordingly, and vendors might charge per head for food and drink. Head count affects expenses across the board, says Deborah Moody, executive director of the Association of Certified Professional Wedding Consultants. With 10 fewer guests on your list, Moody points out, you’d cut out at least one table: That’s 10 chairs, 10 place settings, 10 favors and one centerpiece right there that you’re not paying for. “By cutting your guest list by 10 or 20 people, you may actually save yourself $1,000,” Moody says.
  • Season. That sunny summer wedding probably comes with a trade-off: price. Ceremony sites, reception halls and photographers are known to offer lower rates during off-peak months, such as January or February.
  • Day of the week. Saturday is the most popular day for weddings, and high demand often comes with a higher price tag. You might be able to save by scheduling your big day on a Sunday or weekday — unless it coincides with a popular holiday.

Compare prices and services

Once you’ve picked the services you want, the best way to identify fair prices and approximate the total bill is to ask around. Talk to friends and family who’ve recently gone through the process, or consult a wedding planner. Get quotes from multiple vendors. Then choose the options you think are the best value.

Get quotes from multiple vendors and pay attention to what’s included in the fees.

As you shop around, pay attention to what’s included in the fees. Some venues provide tables, chairs, linens and audio equipment at no additional cost. Others charge extra or require you to rent these items from outside sources. Compare apples to apples as you evaluate costs.

Negotiate if necessary

If you find it necessary to negotiate, do it carefully and respectfully. “You don’t want to nickel-and-dime a professional person who has set their rates the way that they’ve set them for a reason,” Bishop says. She adds that vendors just starting out in the business usually charge less than those with more experience.

If you have a wedding planner, he or she should know what’s reasonable and where to find wiggle room, Moody says. “If you can find a place where they can do the wedding as well as the reception, then they should be willing to give you a break on the price,” she says.

You can also lower rates on your own. Consider asking vendors to cut back on what’s included in their packages. For example, ask the photographer to work a few hours instead of the whole day, or find out if the caterer can limit guests to one or two drinks instead of offering an open bar.

Anticipate extra costs

Even with careful planning, surprises are bound to pop up. Bishop suggests allowing for a 10% buffer to cover hidden fees, overages and add-ons, such as cake cutting and delivery fees, taxes and gratuities.

Add it all up

Don’t bow to pressure from relatives, friends, social media or spending reports. Your wedding spending should align with your income, regular expenses and other financial goals.

Once you’ve established a budget, decided the kind of wedding you want and begun to compare costs, plug in the numbers. Use our calculator to help you figure out what you’ll spend overall.


Monday, March 19, 2018

New Client Insights and Opportunities with Social Security

New Client Insights and Opportunities with Social Security

Overview

[On-Demand Only]

**If you have previously registered for this event, please click here, and log-in using the email you registered with to access the on-demand console**

Sponsored by:

For many older Americans, filing for Social Security can be daunting and confusing. In fact, a Nationwide® study revealed that 72% of them would likely switch to an advisor who could help them maximize their benefits in the future**. For savvy financial advisors, this represents an opportunity to strengthen relationships with their clients by opening the channels of communication about Social Security.

Join this complimentary webcast to discover:

  • Insights from a 2018 consumer survey on Social Security and get a pulse on your clients’ attitudes and needs
  • Beneficial Social Security considerations and filing strategies
  • Tools and resources to help you optimize your clients’ Social Security income

Register Now!

**Social Security consumer survey conducted by Harris Poll on behalf of the Nationwide Retirement Institute, 2018.

Featured Speakers: 

Troy Simmons Vice President Nationwide Retirement Institute®

 

Troy Simmons has more than 20 years of financial industry experience. As a Vice President of the Nationwide Retirement Institute, Troy is dedicated to educating advisors, clients, plan sponsors and plan participants about the latest in retirement income planning trends. He stimulates the thinking and actions of professionals as they navigate the changing world of retirement. Troy annually addresses thousands of financial professionals, clients, and plan participants, and his sessions are customized to meet the needs of each group.

Troy is a graduate of Western Michigan University, where he majored in Business Administration. He also completed the Harvard Graduate School of Business’ Summer Venture in Management Program. Troy holds FINRA series 7, 63 and 26 licenses as well as a CLTC designation. He presents on a wide range of topics including Social Security, Medicare, health care and long-term care, the Affordable Care Act, the DOL Fiduciary Rule and retirement income planning.

Over his years in the financial services industry, Troy has been consistently recognized as a top performer. Since joining Nationwide, he was named Team Player of the Year by the Nationwide Retirement Institute and has qualified for Presidents Council multiple times. He was a Chairman’s Club recipient numerous times in previous sales leadership roles at Allstate, received several Outstanding Sales Achievement Awards and two Peer Recognition Awards. In 2016, he was part of two finalist teams that won over $1 Billion in new Retirement Plan assets for Nationwide.

Troy resides in Las Vegas, NV where you may find him enjoying a round of golf. He was a Co-Chair for Nationwide’s 2015 United Way Campaign and is an advocate for the Crusade for Cures Foundation.

Marc Kiner Co-Founder & President, Premier Social Security Consulting

 

Marc is currently part owner and President of Premier Social Security Consulting.  Marc is also a certified instructor for the National Social Security Advisors program.  Marc created and developed the National Social Security Advisor certification program with his partner, Jim.  

Marc has more than 30 years’ experience in public accounting. Marc recently sold his CPA practice to concentrate on Social Security.  His primary areas of service were to privately held businesses and individuals. Marc also consulted with clients on a variety of complex tax and business issues.  

Marc obtained his Bachelor of Science Degree in Accounting and Finance and a Master’s Degree from the University of Cincinnati. He is licensed to practice as a CPA in the State of Ohio.  Marc is the President of Premier Social Security Consulting LLC and the President and on the board of National Social Security Association, LLC. Marc is a supporter of Crayons to Computers, a free store for teachers.  Marc lives in Cincinnati with his two sons, Jeremy, 27 and Aaron, 21.

Nationwide and ThinkAdvisor are separate and non-affiliated companies.

Nationwide does not control any third party presenting information and is not responsible for their comments. Sponsorship of a third party does not imply endorsement of the information presented. Views and opinions are those of the speaker and do not necessarily represent the opinions of Nationwide.

Nationwide Investment Services Corporation, member FINRA, Columbus, OH. Nationwide Retirement Institute is a division of Nationwide Investment Services Corporation.

Nationwide and the Nationwide N and Eagle are service marks of Nationwide Mutual Insurance Company. ©2018 Nationwide.

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Monday, March 12, 2018

4 Ways to Consolidate Credit Card Debt

At NerdWallet, we strive to help you make financial decisions with confidence. To do this, many or all of the products featured here are from our partners. However, this doesn’t influence our evaluations. Our opinions are our own.

Debt consolidation is a strategy to roll multiple old debts into a single new one. Ideally, that new debt has a lower interest rate than your existing debt, making payments more manageable or the payoff period shorter.

The option that best suits you depends on your overall debt load, credit score and history, available cash and other aspects of your financial situation, as well as your self-discipline. Consolidation works best when your ultimate goal is to pay off debt.

The four most effective ways to consolidate credit card debt are:

1. 0% balance transfer card

This type of credit card charges no interest for a promotional period, often 12 to 18 months, and allows you to transfer all your other credit card balances over to it. You’ll need a good to excellent credit score — above 690 — to qualify for most cards.

Make a budget to pay off your debt by the end of the introductory period, because any remaining balance after that time will be subject to a regular credit card interest rate.

Most issuers charge a balance transfer fee of around 3%, and some also charge an annual fee. Before you choose a card, calculate whether the interest you save over time will wipe out the cost of the fee.

» MORE: NerdWallet’s best balance transfer credit cards

Pros:

  • 0% introductory interest rate

Cons:

  • Requires good to excellent credit
  • Usually carries a balance transfer fee
  • Interest kicks in typically after 12 to 18 months

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2. Personal loan

You can use an unsecured personal loan from your local bank or credit union or an online lender to consolidate credit card or other types of debt. The loan should give you a lower interest rate on your debt or help you pay it off faster.

NerdWallet recommends visiting your local credit union first. Most credit unions offer their members flexible loan terms and lower interest rates than online lenders, especially if you have a low credit score. The maximum annual percentage rate at a federal credit union is 18%.

Online lenders typically let you pre-qualify for a debt consolidation loan without affecting your credit score. Most will give you an estimated rate without a “hard inquiry” on your credit, unlike many banks and credit unions.

For online lenders, the lowest rates go to those with the best credit; rates top out at 36%. Lenders don’t charge fees for paying off your loan early, but they may charge upfront origination fees that range from 1% to 5% of your loan. Some also send money directly to your creditors, increasing the odds of successful debt consolidation.

» MORE: Pre-qualify on NerdWallet and get a personalized rate

Pros:

  • Fixed interest rate and monthly payment
  • Fixed payment period

Cons:

  • Lowest rates go to those with excellent credit
  • May carry an origination fee

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3. Home equity loan or line of credit

If you’re a homeowner, you can take out a loan or line of credit on the equity in your home. A home equity loan is a lump sum loan with a fixed interest rate, while a line of credit works like a credit card with a variable interest rate. You can use that money to pay off your credit cards or other debts.

A HELOC typically requires interest-only payments during what’s known as the draw period, which can range from five to 20 years but is typically 10 years. That means you’ll need to pay more than the minimum payment due to reduce the principal and make a dent in your overall debt.

Since both types of loans are secured by your house, you could lose it if you don’t keep up with payments.

» MORE: The good and bad of home equity loans

Pros:

  • Lower interest rate than an unsecured loan
  • Does not require good credit

Cons:

  • Failure to pay could result in losing your house
  • Repayment terms can be 10 years or longer

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4. 401(k) loan

If you have an employer-sponsored retirement account, it’s not advisable to take a loan from it, since doing so can significantly impact your retirement. However, if you’ve ruled out balance transfer cards and other types of loans, this may be an option for you.

One benefit is that this loan won’t show up on your credit report. But the drawbacks are significant: If you can’t repay, you’ll owe a hefty penalty plus taxes on the unpaid balance, and you may be left struggling with more debt.

401(k) loans typically are due in five years, unless you lose your job or quit, in which case they’re due in 60 days.

» MORE: Weigh the benefits of a 401(k) loan

Pros:

  • Lower interest rate than an unsecured loan
  • You borrow money from yourself
  • Loan isn’t counted on your credit report

Cons:

  • Reduces your retirement fund
  • Heavy penalty and fees if you can’t repay
  • If you lose or leave your job, the loan is due in 60 days

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Thursday, March 1, 2018

9 Easy Ways to Earn Travel Rewards You’ll Actually Use

At NerdWallet, we strive to help you make financial decisions with confidence. To do this, many or all of the products featured here are from our partners. However, this doesn’t influence our evaluations. Our opinions are our own.

You can book that next vacation for free — or almost free — with points and miles. The crucial first step: raking in rewards.

It might sound tedious, but it doesn’t have to be. It’s completely possible to reach your points-and-miles goals without taking unnecessary flights or stocking up on gift cards.

» MORE: Make the most of your next trip

Here’s how you can earn more rewards with minimal effort.

1. Create an account with your favorite travel provider

Have a favorite airline or hotel chain? Go online and set up a rewards program account with that company for free. This gets you a membership ID that can be used to earn rewards for future flights or stays.

2. Earn a credit card sign-up bonus

Next, look for a solid travel credit card — preferably, one that offers a big sign-up bonus and waives the annual fee for the first year. You can choose one that offers points or miles for a certain airline or hotel program, or a general travel card with more flexible rewards.

“If you’re getting a new credit card, and they’re offering 50,000 bonus points if you spend $3,000 within a couple of months, that is a very quick way to get points,” says Charles McCool, founder of the blog McCool Travel, based in Reston, Virginia. Such a bonus could be worth $500 or more, if you meet the spending requirements. In a post, McCool notes how lucrative these bonuses can be.

3. Add an authorized user

Adding a trusted partner or family member as an authorized user on your new card might be the easiest way to score some quick points. Many travel cards offer bonuses for this, often worth about $50. Just keep in mind that, as the primary cardholder, you’ll still be liable for footing the bill.

4. Pay for business travel and get reimbursed

To earn more rewards, “one thing we do is to get as many points and miles from business travel as possible and leverage them for personal use,” says Laura Longwell, co-founder of the blog Travel Addicts, based in Philadelphia. She and her husband and blog co-founder, Lance, have traveled extensively on business. On their blog, they’ve also written about how to earn more rewards.

If your company travel policy allows it, follow the Longwells’ example: Pay for travel expenses with your personal rewards card and get reimbursed later.

5. Pick up the dinner tab and ask for cash

Footing the bill for a night out can fetch plenty of rewards, as long as your friends pay you back

If your card offers bonus dining rewards , you’ll walk away with even more.

“If you go to dinner with five friends, you pay for the dinner on your credit card and you get the points and the miles, and your five … friends all pay you cash. You’re getting the benefit and you’re getting cash to pay it off,” Lance Longwell says.

6. Always pay with a credit card

If you can pay by credit card without overspending or incurring interest charges or convenience fees, whip out that plastic more often. It’s a simple way to boost your rewards — especially when purchases fall within your card’s bonus categories, potentially more than doubling your earnings.

7. Shop through bonus malls

Bonus malls are online marketplaces offered by issuers, airlines and hotel chains that allow you to earn rewards for free by shopping with certain retailers

For example, an airline bonus mall might offer 2 points per dollar spent at Target. By following that link and completing the purchase on Target’s website, you’ll earn those points.

“We almost exclusively do all of our shopping through portals,” says Jalyn Roberson, of Dallas, who maximizes travel rewards with her husband. Roberson, founder of the travel firm Jaunts and Gems, notes in a blog post that you don’t need a credit card to take advantage of certain bonus malls.

8. Participate in dining programs

Most major airlines also offer dining programs you can join for free

Sign up, and you’ll earn bonus rewards through local eateries when paying with the debit or credit card linked to the account.

9. Watch for limited-time offers

For Roberson, limited-time offers from her favorite bonus malls proved especially useful.

“Exclusively through holiday shopping and maximizing for some of the bonuses that were offered between Christmas holidays and Black Friday and the back-to-school sales … we were able to get enough for a round-trip flight to Jamaica from Dallas,” Roberson says.

Check your email and snail mail regularly so you don’t miss out on rewards.

This article was written by NerdWallet and was originally published by Forbes.

Friday, February 16, 2018

How to Buy a Home When Mortgage Rates Are Rising

At NerdWallet, we strive to help you make financial decisions with confidence. To do this, many or all of the products featured here are from our partners. However, this doesn’t influence our evaluations. Our opinions are our own.

Mortgage rates have risen about half a percentage point since September. What does that mean for you if you’re buying a home now or plan to buy one soon?

For starters, don’t panic.

When you’re buying a home, the mortgage rate matters, but it shouldn’t monopolize your attention, says Robert Frick, corporate economist for Navy Federal Credit Union. “You shouldn’t focus on the rate and let that scare you into making a hasty decision about buying a house,” he says.

How rising rates affect your monthly payment

The average rate on the 30-year fixed-rate mortgage rose to 4.54% on Feb. 16, 2018, according to NerdWallet’s daily rate survey. It averaged 3.99% on Sept. 26, 2017 — meaning it has gone up more than half a percentage point in less than five months.

While a half-point increase doesn’t have a major impact on the monthly payment, the added cost does add up over time. On a 30-year loan for $200,000, the monthly payment would be nearly $59 more at a 4.5% interest rate than at a 4% interest rate. That adds up to more than $21,000 over 30 years.

» MORE: Calculate your monthly mortgage payment

What to do when rates rise

Mortgage rate fluctuations have been catching home buyers off guard for generations. Your forebears have developed tried-and-true strategies to cope with rising rates. Here are some things you can do when mortgage rates trend higher:

No. 1: Lock your mortgage rate. With a mortgage rate lock, the lender promises a defined combo of interest rate and points. If you close the home loan by the specified date, the rate can’t go up. You can use this tactic after the lender has approved you for a mortgage for a specific house. Some lenders offer a one-time “float down” option allowing you to secure a lower interest rate if rates go down; this option is more common for construction loans and long-term rate locks.

No. 2: Buy “points” to reduce the interest rate. If you have the cash, you can pay for discount points — in effect, prepaying some of the interest in exchange for a lower mortgage rate. One point equals 1% of the loan amount. The discount you get for one point varies as mortgage rates fluctuate. But as a rule of thumb, paying one point often gives a rate cut of one-quarter of a percentage point.

No. 3: Revise your price range. A higher mortgage rate brings higher monthly payments. When you begin your home search, determine a range of interest rates that will still allow you to afford the type of home you want without stretching your budget past the point of reason. Or, rising rates might force you to adjust your home-price range downward. Start with NerdWallet’s home affordability calculator and enter in different mortgage rates to see how the numbers change.

» MORE: How much home can you afford?

Why rates are rising now

This recent rise in mortgage rates arrived in two stages:

  • The first happened in the weeks after the passage of tax reform in late December
  • The second happened Feb. 2, 2018, when the January employment report indicated that hourly wages had risen 2.9% compared with 12 months before

The tax cuts and the wage report were both regarded as inflationary, because when people have more money in their pockets, they tend to spend it, driving up prices. (Classic supply and demand.) And higher inflation tends to bring higher interest rates for everything, including mortgages.

On top of that, futures traders expect the Federal Reserve to raise short-term interest rates at least two, if not three, times this year, which could exert upward pressure on long-term mortgage rates.

Frick says businesses and governments around the world are ramping up their borrowing. As they compete with one another to borrow money, they bid up interest rates. This upward pressure trickles down to consumers, who end up paying higher interest rates for everything from credit cards to mortgages.

Are higher rates the ‘new normal’?

Talk to any housing economist about mortgage rates, and you’ll hear that rates have been abnormally low in the decade since the housing crash.

“I remember in the mid-’90s, getting a 7% rate, being happy with that,” says Dean Baker, senior economist and co-founder of the Center for Economic and Policy Research. “The rates we’re looking at today are still, by any measure, pretty low. So it’s basically the economy getting back closer to normal.”

Frick says: “People have gotten kind of lulled into these low rates, and a lot of people think this is normal, but this is not normal. We’re returning to normal, and that’s still going to be a painful process because we’ve gotten used to low rates.”

Wednesday, February 14, 2018

Auto Loans for Good, Fair and Bad Credit

At NerdWallet, we strive to help you make financial decisions with confidence. To do this, many or all of the products featured here are from our partners. However, this doesn’t influence our evaluations. Our opinions are our own.

Shopping for the lowest interest rate on your auto loan before you buy your next car puts you in a stronger negotiating position and saves you money over the life of your loan. If you already have a loan, you may be able to lower your monthly payment and save money by refinancing your car loan.

Find your best interest rate by comparing multiple auto loan offers. Learn more about what you need to know before you apply below.

+ See average auto loan interest rates for new and used cars by credit score Credit scoreAverage APR, new carAverage APR, used car Source: Experian Information Solutions Superprime: 781-8503.68%4.34% Prime: 661-7804.56%5.97% Nonprime: 601-6607.52%10.34% Subprime: 501-60011.89%16.14% Deep subprime: 300-50014.41%19.98%

Online car dealer with financing

LenderMinimum requirementsKey facts Carvana
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Carvana reviewCredit score: None

Income: $10,000/yr
  • APRs based on car, credit and financing terms

  • Apply personalized financing terms to 10,000+ cars on Carvana's website

  • Carvana has delivered cars in 48 states to date. Free delivery available in some cities.
Note: APR is used to evaluate the true cost of borrowing money and includes the interest rate.

Before you apply, use this auto loan calculator to estimate your monthly payment. It’s recommended that your car expenses not exceed 20% of your take-home pay. Once you apply, you can use the calculator to compare loan offers.

Use the auto loan refinance calculator to see how much you can save by refinancing.


What to know before you apply for an auto loan

Interest rates: The interest rate you’ll get depends on your credit score and income, the length of the loan you choose and the vehicle. If you have a loan and make consistent, on-time payments and your credit score improves, you may be able to refinance your car loan to get a better rate and lower your monthly payment.

Loan terms: Some lenders offer loans for up to 84 months. However, it’s best to pay off a car loan quickly since cars depreciate rapidly. Owing more on the loan than the car is worth is called being “underwater” or “upside down,” which is a risky financial situation. Also, the best interest rates are available for shorter loan terms. NerdWallet recommends 60 months for new cars and 36 months for used cars.

“Soft” vs. “hard” credit pull: Some lenders do a “soft pull” of your credit to pre-qualify you for a loan. This doesn’t damage your credit score, but it also doesn’t guarantee you’ll be approved for a loan or get the exact rate you’re quoted. Other providers run a full credit check, which temporarily lowers your credit score by a few points. But again, your final rate could differ slightly from your preapproval quote. A hard pull will be required in all cases before a loan is finalized.

Rate shopping: Applying to several lenders helps you find the most competitive interest rate. However, it can lead to your being contacted by multiple lenders, or even dealers when you apply for a purchase loan, especially if you use a service that compares offers for you (such as myAutoloan).

+ Tips for shopping auto loan rates
  • Make all applications within a short rate-shopping window. Credit reporting agencies count multiple hard inquiries made within a certain period — usually 14, 30 or 45 days — as only one inquiry. However it’s also smart to check your credit score afterward to be sure this is the case.

  • If you’re worried about getting overwhelmed by calls and emails, create a new email account and get a free Google Voice phone number that you can check separately.

  • Also check the loan terms that your bank or credit union offers. Their rates can be competitive with those of online lenders.


Restrictions

: Some lenders only work with a network of dealerships. Others won’t lend money to buy cars from private sellers. Lenders may also exclude some makes of cars, certain models and types of vehicles, such as electric cars.

Funding: Once the loan is finalized, the lender will offer you a loan with a maximum amount at a stated interest rate. For purchase loans, lenders provide the money in a variety of ways: a no-obligation check, direct deposit to your bank account or a certificate to be used at a car dealership. For auto refinance loans, the lender typically pays off your old lender and you begin making payments to the new lender.

Why preapproval is important

Preapproval streamlines the negotiation process because you can sidestep the car salesman’s favorite tactic: the monthly payment game. If you negotiate based on a monthly payment, it’s easy to lose sight of the real price of the car. But when you’re preapproved, you become a “cash buyer.” That means you can concentrate on negotiating only the price when shopping for a new car , rather than mentally juggling several figures.

Negotiate the best deal for the car, and leave enough money to cover taxes and fees. For example, if you’re approved for up to $20,000, look for a car in the $15,000 range because the final price will be about $16,500 or higher.

At a dealership the finance manager may try to beat the interest rate of your preapproved loan. If the interest rate is lower, and all other terms are the same, take the loan. But look at the contract carefully before signing, because there is a risk the finance manager could juggle the numbers in the dealership’s favor.

How auto loan refinancing works

When you refinance your auto loan, you replace your current loan with a new one from another lender. If you get a lower interest rate, and keep the length of loan the same as (or shorter than) remaining term on your current loan, you’ll save money on interest over the life of your loan. If you extend your loan, you may be able to lower your monthly payment — even if you don’t qualify for a lower rate — but you might actually pay more in interest overall.

Generally the new loan amount will be the balance left on your current loan. However, some lenders do allow you to take cash out when you refinance. Since there often isn’t much equity in a car loan, taking cash out could increase your risk of becoming upside-down on your loan — owing more than your car is worth. So, it’s really best not to take cash out unless you made a large down payment and suddenly need money for an emergency.

Learn more about how to refinance your auto loan.

When to refinance your auto loan

Here are a number of situations when it makes sense to refinance your auto loan:

Your credit has improved. When you bought your car, maybe your credit history wasn’t great. But now, if you’ve been making consistent, on-time payments, your credit has probably improved and you may qualify for a lower interest rate. This will reduce your monthly payment and save you money in interest over the life of the loan.

You can check your credit score for free here.

A dealer marked up your interest rate. When you got your existing loan, the car dealer might have charged you a higher interest rate than you could have qualified for elsewhere. This often happens to shoppers who didn’t check their credit score or what rate they might qualify for before buying a car. There’s a good chance you can undo the damage by refinancing and getting a new loan with a lower interest rate.

You can’t keep up with payments. You may have bought too much car, or overestimated your ability to pay off your current auto loan. Or maybe you’re suddenly facing unexpected financial challenges. By refinancing, you can extend the length of the loan, which will lower your payments. But don’t take this step lightly. If you extend the term of the loan, you’ll pay more in interest. However, it’s better than damaging your credit by missing payments or facing repossession.

Interest rates drop. Interest rates fall for a variety of reasons: a changing economic climate, increased competition in the marketplace and regulatory changes. If rates are lower now than when you first got a car loan, refinancing could help you pay off your loan sooner or save you money on interest.

Learn more about whether auto loan refinancing is right for you.

 

Source for credit range information in calculator: State of the Automotive Finance Market, Experian Information Solutions, Inc.

Wednesday, January 17, 2018

Why You Should Travel Solo at Least Once

At NerdWallet, we strive to help you make financial decisions with confidence. To do this, many or all of the products featured here are from our partners. However, this doesn’t influence our evaluations. Our opinions are our own.

Booking a plane ticket for one might not seem like an obvious way to prepare for your next vacation — especially if you usually travel with a partner, family members or friends. But here’s what many solo traveling enthusiasts will tell you: It’s a first step toward an incredible, life-changing journey.

Traveling solo gives you the freedom to explore new places at your own pace and chase crazy-ambitious travel goals. Plus, you’ll get to know yourself — and unfamiliar parts of the world — on a whole new level. Here’s why you should try it at least once, from four prolific solo travelers.

You’ll be free to explore on short notice

When you’re in a group, planning a day out requires intense coordination and, often, a little persuasion. When you’re on your own, it’s a different story.

“When I travel by myself, I tend to have some key, big items I definitely want to do, and I keep everything else flexible, so if something comes up, I always have time to do it,” says Pauline Lim, a data analyst at Airbnb, based in San Francisco. So far, she’s visited 40 countries; after her next solo trip on the Trans-Siberian Railway, she’ll have visited 46.

In 2016, Lim once decided to take a European road trip on a whim during a nine-day solo visit to Paris after exploring the city. “By day four I was like, ‘Man, I’ve been to all the museums, I’ve stayed out every night, I’ve gone to all the bars I wanted to go to, what the hell should I do next?’” After getting some travel recommendations from her cousin, who happened to be in Paris at the same time, she planned a spur-of-the-moment expedition.

(Pauline Lim, left, visits a friend while on a European road trip.)

“At 4 a.m. that morning, I booked a car for the next four days,” Lim says. She ended up driving to Brussels and Amsterdam, then back to Paris, visiting two friends along the way.

» MORE: Beat your travel budget: Find cheap activities in any city

It’s the ultimate confidence booster

Baron visiting Arusha, Tanzania in 2017.


Derek Earl Baron says he was “a very shy person, pretty introverted” when he started traveling full time about 18 years ago. On the travel blog he founded, Wandering Earl, he wrote about 

Derek Earl Baron says he was “a very shy person, pretty introverted” when he started traveling full time about 18 years ago. On the travel blog he founded, Wandering Earl, he wrote about traveling solo

“I quickly realized that traveling on my own forced me into situations I wasn’t comfortable with, but I had no choice but to start talking to people and solve whatever issues I had on my own,” he says.

Soon after starting out, he went to India for the first time, to a remote area.

“I was starting to get pretty nervous, like, ‘Ah, this isn’t so fun, I’m on my own.’ I wasn’t talking to many people because it was very different and a little bit of a culture shock,” Baron says.

Then, he saw another tourist on a train and started a conversation. After getting to know each other, the two ended up traveling together for five months, exploring much of the country, including areas few travelers went. The experience made Baron realize just how easy it was to meet new people while traveling solo.

“When we stopped traveling together, that’s when I realized, ‘Wow, I have the confidence to do anything, even if it’s on my own.’”

Baron has now visited 102 countries; he’s now staying in Canggu, on the Indonesian island of Bali. He makes a living through his travel blog.

You’ll have more chances to meet new people

Like Baron, Brittany Kulick quickly discovered that traveling solo gave her plenty of opportunities to get to know the folks around her.

“There’s something to be said for just really going after what you want, and doing something that’s exactly tailored to what you’re wanting to do at that moment,” says Kulick, founder of the travel and food blog The Sweet Wanderlust. “The greatest thing about solo travel is the people you meet, who are looking exactly for that same thing at that same time.”

Kulick has visited 54 countries and makes a living by doing freelance marketing, social media management and copywriting, as well as picking up temporary work. In 2015, she left Dallas to travel solo full-time.

(Brittany Kulick eats a red velvet-crusted chicken shake in Perth, Australia.)

Early on in her travels, Kulick recounts going on a free walking tour in Seville, Spain. “I met this girl from Melbourne, and we ended up doing the walking tour then going off to this fun medieval festival,” says Kulick, who wrote about the trip on her blog. “And she goes, ‘If you ever make it to Melbourne, you’re welcome to stay with me and my partner.'” About a year later, Kulick took her up on that offer. She’s currently house-sitting for her fellow traveler, now one of her best friends in Melbourne, as she travels in Australia.

If you’re traveling alone, Kulick says going to free walking tours — often led by guides who work for tips — are a great way to meet like-minded solo travelers in new cities. For those who aren’t sure where to travel, she also recommends making Pinterest boards to gather ideas. 

It could change the course of your life

When Jeremy Scott Foster first traveled solo from Boston to Sydney, Australia, in 2010, he initially planned to stay for a few months. At the time, he had recently graduated from college and completed a brief stint working in IT. He ended up staying for three and a half years instead, traveling in Australia and Asia throughout his time abroad.

(Jeremy Scott Foster stands in front of the Golden Gate Bridge in San Francisco.)

“Traveling on my own meant that I could just stay — and I did,” says Foster, founder of the blog TravelFreak, who at the time worked as a bartender to pay for his trips. He wrote about his experience traveling solo on his blog. “The choice to travel solo brought me around the world and gave me the platform to start my own business.” Now, he’s based in Washington, D.C., and works full time as a travel blogger and photographer. He goes on multiple trips each month.

While exploring an unfamiliar city alone might not spur you to travel nomadically, like Foster, it might inspire you to learn a new language, take up a new hobby or even change careers.

“The number one thing when you travel solo is, you learn who you are when no one else is watching,” Foster says. “Solo travel is nothing if not a lesson in getting to know yourself.”

Stay safe with these tips

Navigating a new city alone for the first time can be a little scary, no matter how tourist-friendly and safe your destination actually is. Here are some tips from solo travelers Lim, Baron, Kulick and Foster for staying safe and maintaining peace of mind while traveling solo:

  • Make sure you have a way to contact people. “I’ve learned that whenever I’m traveling, I must always have cell service,” Lim says. She also makes sure she has data coverage, so she has a way to contact people if she needs to.
  • Back up your important documents. Lim says she backs up her important documents on Dropbox so she always has access to them. She also carries extra cards and cash while traveling.
  • Keep your valuables secure. “When I stay in hostels, I make sure there are lockers. I always travel with a lock on my backpack,” Kulick says. She also notes that she reads several reviews for hostels and Airbnbs before actually booking her stays.
  • Tell people where you’re going. “If you’re traveling alone, when you’re going out, especially at night or something, let people know,” Baron says, noting that you can talk to the person at the front desk of a hostel or a fellow traveler. “You can always just say, I’m going to check in with you at this point.”
  • Pay attention to your surroundings. Foster stresses that solo travel isn’t as dangerous as the media makes it out to be. Still, he says, it’s important to use common sense. “If something feels unsafe, trust your gut,” he says.

Tuesday, January 2, 2018

OneMain Financial Personal Loans: 2019 Review

At NerdWallet, we strive to help you make financial decisions with confidence. To do this, many or all of the products featured here are from our partners. However, this doesn’t influence our evaluations. Our opinions are our own.

4.0

NerdWallet rating

Good for: Bad credit, secured loan

OneMain Financial provides personal loans to people with bad credit who may have trouble qualifying for a traditional bank loan.

OneMain may be a good fit if:

  • You have bad or below-average credit. OneMain has no minimum credit score requirement, but its borrowers’ average scores are between 600 and 650.
  • You prefer a traditional bank experience. OneMain usually requires a visit to one of its more than 1,600 branches.
  • You need money quickly. Loans typically fund the same day.

OneMain Financial loan rates and terms

Loan amounts$1,500 - $20,000 Typical APR18.00% - 35.99% FeesOrigination fee: Varies by state

Prepayment fee: None Time to fundingSame day Repayments2 to 5 years Soft credit check?Yes How to qualify
  • Minimum credit score: None; average is 600 to 650.
  • Minimum credit history: Not provided.
  • Minimum annual income: None.
  • Debt-to-income ratio: Not provided.
Best forBorrowers with bad credit, fast cash Click "Check rates" to get started with OneMain.

Check rates at OneMain

» MORE: Compare bad credit loans

OneMain Financial personal loan review

To review OneMain Financial, NerdWallet collected more than 30 data points from the lender, interviewed company executives and compared the lender with others that seek the same customer or offer a similar personal loan product. Loan terms and fees may vary by state.

OneMain’s personal loans are commonly used for debt consolidation, wedding and medical expenses, home improvement projects and auto financing. The lender considers traditional factors such as credit history and debt-to-income ratio when evaluating borrowers.

Best of 2019: NerdWallet recognized OneMain Financial among our list of Best Personal Loans of 2019 in the category of bad credit.

High rates: OneMain’s starting annual percentage rate of 18% is higher than what is charged by some online lenders that cater to people with poor credit, such as Peerform and Avant. OneMain’s rates top out at 35.99%.

Loan example: For a borrower with bad credit, a $10,000 unsecured personal loan with a repayment term of two years at 27.2% APR would carry monthly payments of $545, according to NerdWallet’s personal loan calculator.

Fast cash: OneMain provides fast loans; you can complete an application and receive a decision in less than 10 minutes. Once you’ve been approved, you can receive funds as soon as the same day by check, or one to two business days via bank payment.

Funding time also varies based on what time you submit the application, the number of documents required and how long it takes you to submit the documents to get your application approved, according to OneMain.

Secured loan option: You can also apply for a loan that is secured with a car title or other collateral, which may help you qualify for a lower APR, larger loan amount or longer loan term compared with an unsecured loan.

As with any secured loan, if you can’t make your loan payments, you could end up losing your vehicle or other collateral.

OneMain and other lenders typically offer optional credit insurance with secured loans. This insurance adds to your costs and may not be needed, so learn about the pros and cons before you buy it.

Free credit score: Approved OneMain borrowers have free access to their credit scores, a feature that few other online lenders offer.

How OneMain compares





avant_box_logo-384x129

APR

18.00% - 35.99%




Min credit score

None




Best for

Bad credit, secured loans



APR

7.99% - 18.0%




Min credit score

None




Best for

Debt consolidation



APR

9.95% - 35.99%




Min credit score

580




Best for

Bad credit



Click “Check Rate” to pre-qualify and receive a personalized rate from multiple lenders on NerdWallet.

CHECK RATE

For borrowers with bad credit, credit unions may provide personal loans at more favorable rates and terms. Federal credit unions such as Navy Federal cap APRs at 18% and consider more than just your credit score in applications.

Avant is an online lender offering a lower starting APR and similar time to funding compared to OneMain. It requires a minimum credit score of 580 and annual income of at least $20,000 to qualify.

» MORE: Compare OneMain and Mariner for personal loans

How to apply for a OneMain Financial loan

You can apply by submitting your personal, employment and financial information at OneMain’s website. You’ll get an email with a decision on your application, and a representative will contact you to schedule an appointment at a branch office to discuss your options and verify your information. If there is no branch nearby, you may be able do this step remotely.

NerdWallet recommends comparing loans to find the best rate for you. Click the button below to pre-qualify and receive a personalized rate from multiple lenders on NerdWallet.

 

Before you shop for a personal loan:

NerdWallet’s ratings for personal loans award points to lenders that offer consumer-friendly features, including: soft credit checks, no fees, transparency of loan rates and terms, flexible payment options, accessible customer service, reporting of payments to credit bureaus, and financial education. We also consider the number of complaints filed with agencies like the Consumer Financial Protection Bureau. This methodology applies only to lenders that cap interest rates at 36%, the maximum rate financial experts and consumer advocates agree is the acceptable limit for a loan to be affordable. NerdWallet does not receive compensation of any sort for our reviews. Read our editorial guidelines.