Buying a Home? Here’s Why It’s Important to Have a Large Savings Account Balance

By: Steven Porrello |
Updated
Oct. 17, 2023 – First published on Oct. 17, 2023

Certificates of deposit (CDs) can be a smart way to capture high interest rates. With some CD rates currently north of 5.50%, the headliner perk on today’s top-paying CDs is undoubtedly APY, APY, and APY. But don’t let high interest obscure some of the lesser-known benefits of buying CDs. Growing your money is important, but these three lesser-known perks could sweeten a CD contract.Ready to open a CD and earn extra cash? Western Alliance Bank is a top pick from our experts and features an incredible rate: 1 Year: 5.51% APY (Min. Deposit $1).1. Some CDs allow a “bump-up” rateStandard CDs offer a fixed rate for a specific period. For example, if you lock into a 5.50% APY, you’ll get 5.50% for the length of your term, whether that’s three months or five years.Locking in at a high rate can be glorious if CD rates fall. But if you lock your CD rate too early, the opposite could happen: You could watch CD rates soar, while yours is still paying out at a lower APY.This is where a “bump-up” CD can come in handy.Bump-up CDs let you increase your rate at least one time during your term (some allow several bump-ups). This allows you to capture a higher APY after your term has started. Typically, bump-up CDs have lower initial rates than standard CDs. But they can prove useful in a fluctuating rate environment, especially if you think the CD provider will raise its rates.2. You can access interest as you earn itWhile many CDs lock up your initial deposit for the length of your term, some will let you access the interest you’re earning. Yes, even without penalty. Often, these CDs will even transfer the interest into a separate account, like a checking or savings account. Depending on your CDs terms, the interest could be deposited monthly, quarterly, semiannually, or annually.3. Brokered CDs can be sold on secondary marketsBrokered CDs are a little-known CD type. These CDs are available only through brokerage accounts, such as:FidelityCharles SchwabVanguardEdward JonesThe broker isn’t the CD issuer but rather buys CDs in bulk from providers, like banks, then sells them to its customers. Often, these CDs have ridiculously high APYs.Because the broker isn’t the CD issuer, it usually doesn’t let you withdraw from your CD — not even with an early withdrawal penalty. Instead, you have to sell your CD on a secondary market if you want out early. This involves finding a buyer who will take the CD off your hands.Selling a CD on the secondary market could result in a loss, especially if rates have increased since you purchased yours. But for savvy investors focused on the long term, today’s top-paying CDs could eventually result in a gain. CD rates won’t stay high forever. If you load up on long-term CDs, you could turn a profit when rates start to fall, not to mention earn high interest as you wait.Of course, like investing in stocks and other assets, trading CDs has risks. But it’s a strategy that many fixed-income investors simply don’t know about.All in all, CDs can offer investors more than just a high APY. Don’t get me wrong: Earning high interest on your savings is a major benefit. But dig a little deeper into your contract; you might find some perks that surprise you.

By: Steven Porrello |
Updated
Oct. 20, 2023 – First published on Oct. 8, 2023

Buying generic brands can save you money, but rarely can they surpass (or even replicate) the taste of the original. The exception is Costco’s Kirkland Signature products. Many of these products have amassed a cult following simply for being better in taste and lower in price than many nationally recognized brands.It’s tough to pick which Kirkland products are the best, but if I had to narrow it down, here are five Kirkland products I’m buying regularly at Costco.1. Shelled pistachiosPrice: $14.99 to $16.99I’ve always loved pistachios but could never betray my personal finances to pay exorbitant prices for such small bags. Costco, however, changed that. The Kirkland Signature Pistachios come in 24 ounce bags (1.5 pounds) and cost only $15 to $17. That’s cheaper than Kroger ($5.49 for six ounces), Safeway ($7.99 for six ounces), and Walmart ($9.98 for 12 ounces).2. Lounge pantsPrice: $16.99Fall has just arrived in my home city, Portland, and we’re already breaking out the winter clothes. This year, I bought a pair of Kirkland Signature lounge pants and they’re super comfortable. Plus, you can’t beat that price. Costco is even running a promotion online that will save you $25 if you buy five to nine qualifying clothing items and $60 if you buy 10.3. Kitchen bagsPrice: $20.49The Kirkland Signature Kitchen Bags are a staple in our household. They’re big, sturdy, and have flexible tops to wrap around trash and avoid punctures. These bags are strong enough to hold our garbage, plus cat litter when we clean the boxes.4. Adult multivitamin gummiesPrice: $16.99 for twoNot the most exciting Costco purchase you’ll ever make, but nevertheless a good value, this two-pack of multivitamins comes with 320 gummies for about $17. That’s cheaper than buying Vitafusion gummies off Amazon ($12.19 for 150 gummies) and even rivals the price on Walmart’s brand of adult gummies ($8.88 for 150).5. Variety snack packPrice: $32.99This is one of the best buys I’ve seen in awhile. For about $33, this snack pack gives you 51 single-serving pouches with snacks you’ll actually like, like granola bars, trail mix, almonds, cashews, peanuts, and blueberries. Perfect for kids’ lunches or your own snacks during the day.How to find good Kirkland productsPrepare yourself for some trial and error. Fortunately, even the worst Kirkland Signature products are still decent enough to consume (case in point: the notoriously ugly “Costco sweater” you can’t help but buy). Even better: Most are covered by Costco’s 100% satisfaction guarantee. If you don’t like it, you can bring it back for a full refund.There is one little-known way to find popular Kirkland products. You’ll need to the download the Costco shopping app, then follow these steps:Open the Costco shopping app.Click “Shop” from the bottom menu.Scroll to the bottom and click “View more categories.”Click “Explore Our Brands” from the list of categories (in my app, the categories are in alphabetical order, so just look for the “E’s”).Find Kirkland Signature from the list.Click “Shop All Kirkland Signature.”Organize the products by “Most Viewed.”This will bring up product pages that have received a large volume of traffic. When I did it recently, I saw the variety snack pack was number one, followed by toilet paper, batteries, and a stone island 12-burner gas grill (shrug). Take a look for yourself the next time you browse the Costco app and see what other Costco members are buying.

By: Maurie Backman |
Updated
Oct. 20, 2023 – First published on Oct. 12, 2023

Okay, I’ll admit it. When I first joined Costco, I was hesitant to bring Kirkland products home because I was convinced they’d somehow be inferior in quality to the brands I was used to. How else could you explain those ultra-low prices?But I’m glad I’ve since changed my ways, because through the years, I’ve enjoyed lots of savings at Costco by loading up on Kirkland products. And these days, certain Kirkland products are staples on my weekly grocery list.If you’re not familiar with Kirkland, it’s Costco’s signature brand. You’ll find the Kirkland name on everything from baby products to baked goods to household supplies. And here are a few Kirkland products I think every Costco member should try.1. Organic quinoaQuinoa has been hailed as a supergrain that can serve as a great base or side dish for meals. We eat a lot of quinoa in my household, and I like to add it to chili and stew for extra protein.At my local supermarket, an 8.8-ounce bag of quinoa costs $3.49. So that’s $0.40 an ounce. Meanwhile, Kirkland makes a mega-bag of quinoa that costs just $10.99 online for a 4.5-pound haul. That’s only $0.15 an ounce.And also, that’s the online price. Chances are, you’ll find Kirkland-brand quinoa at an even lower price at your local warehouse club store.2. Kirkland almond butterI’m a huge fan of peanut butter. But sometimes, I like to mix things up and put almond butter on toast or apple slices instead.A 27-ounce jar of Kirkland almond butter costs $7.99 online, which is $0.30 an ounce. At my local supermarket, a 16-ounce jar is $8.49, or $0.53 an ounce.3. Praline pecansWhen I’m in the mood for something sweet, I try to offset it by adding a little protein to the mix. And Kirkland praline pecans fit the bill. They’re not overly sweet, and they can be eaten by the handful at night while watching TV or sprinkled onto a salad for a little crunch.A 2.5-pound jar of these bad boys costs $16.99 at Costco, which amounts to about $0.42 per ounce. Trader Joe’s sells yummy candied pecans, too, but a five-ounce bag will cost you $4.49, or roughly $0.90 per ounce.4. Cashew clustersKirkland makes a delicious cashew cluster that includes almonds, pumpkin seeds, and just the right amount of sugar. This is my go-to snack for a long hike because it’s packed with protein and tasty as heck. And for just $10.99 for a two-pound bag online, it’s a worthwhile investment.Now, I can’t compare the cost of these clusters to another store because frankly, I’ve never seen a comparable product outside of this Kirkland offering, which you can only find at Costco — at least at a reasonable price. You can technically buy these cashew clusters on Amazon, but the cost there is almost $25 versus $10.99 at Costco.com. And again, you’ll generally pay even less at an actual warehouse club store.5. Chocolate chipsI happen to do a lot of baking at home, especially during the holidays. And I like to load up on Kirkland chocolate chips because the price is always far more competitive than what’s available elsewhere. A 4.5-pound bag of Kirkland semi-sweet chocolate chips is only $13.99 online, or $0.20 per ounce.I’ll be honest. There’s nothing spectacular about these chocolate chips. They taste like…chocolate chips, which are a hard thing to mess up. The reason to go for the Kirkland version here really boils down to price alone.At my local supermarket, chocolate chips happen to be on sale right now. But even so, a 10-ounce bag is $3, which would have me paying $0.30 an ounce.Some of the Kirkland products you’ll find at Costco are unique items you really can’t find elsewhere. Others are simply more affordable but equally good versions of the products you’ll see in many stores. But either way, it pays to give these Kirkland products a try, especially because Costco stands behind its signature brand (and every item it sells, for that matter). So if you take a chance on a Kirkland item and it doesn’t meet your expectations, you can generally bring it back for a refund without any sort of hassle.

By: Dana George |
Updated
Oct. 14, 2023 – First published on Oct. 14, 2023

You know something the wealthy are very good at? Making their money work for them. When they lie down to go to sleep at night, they want to know that their money is hard at work. The rest of us may not earn millions of dollars as we dream of building another yacht in the Netherlands, but we can steadily increase our net worth by making good decisions about where our money is going to hang out.Earning passive income is not just for the wealthy. Here’s how we can all get started, with as little as $1,000.1. Purchase dividend stocksLet’s say you purchase stock in the Dang, That Stings Rubber Band Company. You are now a part-owner. Sure, you may own a teeny, tiny slice of the company, but darn it all, you’re still an owner.While not all publicly traded companies do, Dang, That Stings Rubber Band Company pays dividends. A dividend is an amount of money that a company regularly pays its stockholders out of its profits (sometimes referred to as “reserves”). Typically, companies pay out quarterly.Purchasing $1,000 in stock in a company that pays dividends is one way to produce passive income. You can cash out those dividends and tuck them into your savings account, or you can reinvest them, slowly growing the amount of stock you own in the company.Note: If you want to invest in dividend-paying stocks, make sure the companies you’re interested in pay them.2. Make like Mr. MonopolyI can’t swear to it, but I’ve always suspected that Mr. Monopoly is heavily into lending money to Uncle Sam. Here’s how I believe he does it:First, he goes to TreasuryDirect.gov. That’s where he can directly invest in the U.S. government.Mr. Monopoly then determines whether he’s in the mood for short-term debt like Treasury bills, mid-term debt like Treasury notes, long-term debt like Treasury bonds, or inflation-protected debt like I bonds.Mr. Monopoly may be flashy, but he’s also concerned with protecting his money. Each of these investments is backed by the full faith and credit of the U.S. government.3. Build an emergency fundOne of the least sexy, but most important, investments you can make is in your personal financial security. Let’s say you wake up one morning and rain is coming through the ceiling in your kitchen. Even without being quite awake yet, you realize that it’s not supposed to rain into your kitchen. A contractor swings by and you learn that it’s going to cost $7,500 to make repairs to your roof, attic space, and kitchen ceiling.Fortunately, your homeowners insurance will pay the majority of the cost. However, you have a deductible of $2,000 and there’s no money in your savings account to cover the cost. You end up putting the expense on a charge card with an interest rate of 17%.You mean to pay the $2,000 expense off by the end of the first billing cycle, but one thing after another comes up and you can only pay the minimum monthly payment of $50. Before you know it, you’ve been carrying that same $2,000 debit for 12 months. Unless you can come up with the money to pay the credit card off, you’ll carry that debt for another four years and end up paying a total of $972 in interest.If you don’t have an emergency savings account with enough money in it to cover a leaky roof (bald tires, broken water heater, unexpected medical expense, or other unwelcome surprise), you may find yourself paying interest rather than earning it.Before you look for ways to make your money grow, make sure you have a sufficient amount of money put away for emergencies.You may only have $1,000 to invest right now, but we all start somewhere. The great thing about having any money to invest is that warm feeling you get when someone pays you interest — rather than the other way around.

By: Maurie Backman |
Updated
Oct. 15, 2023 – First published on Oct. 15, 2023

The highest credit score you can get is an 850. But the reality is that most people don’t have perfect credit, and there’s a reason for it.Any time you apply for a new loan or credit card, a hard inquiry is done on your credit report, which can result in a very small hit to your score. So even if you’ve paid every single bill of yours on time in the past five years and maintain a $0 credit card balance, if you applied for a loan two months ago, chances are, you won’t have perfect credit.However, Experian, one of the three credit bureaus, reports that a credit score of 740 to 799 is considered very good, while a score of 800 to 850 is considered exceptional. So once your score reaches 800, there’s a good chance you’ll not only have a relatively easy time qualifying for a loan or credit card when you want one, but also, snagging a competitive interest rate in the process.But that’s not the only benefit to having a high credit score. Here are three perks you might also enjoy.1. You may have an easier time renting a homeIt’s common for landlords to perform a credit check on prospective tenants before letting them sign a lease. If you’re looking for an apartment in a city with few rentals, your high credit score might give you an edge. A landlord might prefer to rent to you than someone whose credit isn’t as great.You can also use a higher credit score as a negotiating tool for lower rent. Let’s say you’ve been in your rental for a couple of years and your landlord wants to impose an increase. You could point to your stellar credit as a reason they’d want to keep you around as a tenant — and potentially avoid having to pay more.2. You might save money on your car insuranceThere are different factors that determine what premium rates you’re quoted when you shop around for auto insurance. These include your driving history, location, and vehicle type and age.But another factor that auto insurers tend to take into account is credit. You’d think that wouldn’t be part of the mix, since your tendency to pay bills on time doesn’t necessarily correlate with the way you handle a vehicle on the road. But still, it’s often a factor unless you live in a state that bans the practice.3. You might have an easier time getting a jobSome employers conduct a credit check as part of the process of vetting employees. This is especially likely to happen if you’re applying for a job that requires you to handle or manage money.One thing you should know is that in the course of this type of credit check, a prospective employer generally will not get to see your actual credit score. However, they’ll see components of your credit report that include your payment history. And a strong payment history is indicative of a high credit score.It pays to boost your credit scoreA strong credit score could do a lot of good things for you. If you feel that your credit score needs work, you can boost it by:Paying bills on timeKeeping your credit card balances to a minimumNot applying for new loans or credit card accounts for a period of timeKeeping long-standing credit card accounts openChecking your credit report for errorsIt may take some time for these moves to have an impact on your credit. But once they do, you can put yourself in a position to benefit in more ways than one.