Tamila McDonald

5 Common Fears of Investing

September 18, 2020 By Tamila McDonald Leave a Comment

When it comes to investing, the hardest part is often starting the journey. In the beginning, fear holds a lot of would-be investors back. They worry they may lose money or that they’ll choose the wrong investments. They may assume that, since they aren’t stock market experts, they simply couldn’t make smart choices. However, most investors discover that these initial fears were unfounded once they begin. If you fear is holding you back, here’s a look at five common fears of investing and how to overcome them.

1. Losing Money – One of The Biggest Fears of Investing

Likely the biggest fear that any prospective investors may have is that they’ll lose all of their money. Usually, they assume they won’t make the right investment choices, causing their cash to evaporate because of bad moves.

While it is true that investing comes with risk, that doesn’t mean you can’t lessen it. For example, a diversified portfolio can better withstand market fluctuations, offering you a degree of protection against the unexpected. Starting with index funds can also reduce risk, as they have a level of innate diversification.

However, if losing money is your biggest fear, consider starting small. Educate yourself on the various options, particularly approaches that support faster diversification. Focus on a strategy that comes with an amount of risk you can stomach.

In time, you can always invest more. The slow and steady approach allows you to get your feet wet without having to put in a ton of money right away, which may allow you to grow more comfortable with time.

2. Choosing a Bad Investment

In a similar vein, some would-be investors worry that they’ll choose the wrong investments. This is especially true for anyone looking at individual stocks, as the degree of risk there is automatically higher than using a more diversified approach.

Ultimately, when it comes to choosing investments, research is your ally. If you review information from trusted, reputable sources, you can better gauge the quality of a potential investment move.

Additionally, it’s important to note that, even if you choose a bad investment, that isn’t necessarily the end of the world. You can always adjust your strategy, using the experience as a lesson that helps you make wiser choices moving forward.

3. Market Volatility

There have been many events in recent history that show how volatile the market can be. COVID-19 is a solid example, as well as the crash during the Great Recession. Some may even remember the collapse of the Dot Com bubble. All of those events can be scary for investors, leading to significant losses seemingly overnight.

However, recovery typically flows a crash. The markets overcame the Dot Com collapse and the Great Recession. There’s positive headway after the initial COVID-19 loses as well, and some investments have even experienced gains throughout.

If you have long-term financial goals that involve investing, volatility isn’t something to fear. Usually, the market ebbs and flows, and a diverse portfolio can often weather the storms.

For those who have shorter-term goals, then market volatility isn’t necessarily a dealbreaker either. You may simply want to use a more conservative strategy. While less risk often means smaller gains, that could be a fair exchange in your eyes.

4. Whose Advice to Trust

Research is a critical part of the investment journey. However, figuring out which resources actually have your best interests in mind isn’t always easy. There are plenty of untrustworthy voices and even outright scams. For a would-be investor who hasn’t taken the leap yet, it can be anxiety-inducing.

If you have a lot of doubts, you can always start with a certified fee-only financial advisor. They don’t make money on commissions, so they aren’t being encouraged to recommend anything that’s not right for you.

It’s always wise to doublecheck any news or recommendations you spot. If you hear something from a resource you aren’t sure about, looking for additional information on the topic through reputable sources is a smart move. You can see if the details align, or if there’s another side of the story you need to consider. That way, your odds of being fully-informed go up, making it easier to make sound choices.

5. Not Having Enough Money to Get Started

Many people want to invest, but they worry they don’t have enough money available to get started. This is especially true for anyone who has researched opening accounts, only to find brokerages that expect large starting deposits.

While it’s true that some brokerages require you to start with a substantial sum, many don’t. In fact, some have no minimum starting balances, no minimum monthly contributions, and low fees.

Many robo advisors have very low barriers to entry. Explore those options to see if any support the kinds of accounts you want or the investments you’d like to make. It can let you get started even if you don’t have a ton of cash available. Then, if you decide to open up an account elsewhere once you’ve generated the money, you can always do that.

Did you have to overcome any fears of investing before you started? Share your thoughts in the comments below.

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How to Retire Well in Iowa

September 17, 2020 By Tamila McDonald Leave a Comment

Choosing a place to retire can be an exciting time, but it’s also a serious undertaking. How far your money will go is impacted by a variety of factors, influencing how much it takes to retire well in a given area. Many soon-to-be retirees want to find an affordable location that offers the kinds of amenities they require. While they may spend time exploring traditional retirement states, many overlook amazing options like Iowa. The Hawkeye State has a ton to offer. Plus, your money can go further there, allowing you to retire well for less. If you want to see why Iowa should be on your list, then read on to learn how to retire well in Iowa.

Cost of Living

Each state has a cost of living score, comparing its affordability to the national average, which is set at an even 100. When a state has a score below 100, that means it’s cheaper to live there than the national average. Often, this means a retiree’s savings can go further or last longer there, something that may be critical if you have a tight budget.

Iowa’s overall cost of living score comes in at 91.4, which is significantly below the national average. However, Iowa really shines in when it comes to housing costs. For that segment, Iowa’s score is 76.0, marking it as one of the most affordable states for homebuyers.

In Iowa, the average home value is $154,727. In comparison, the national average sits at $248,857. That’s more than a $94,000 difference.

While some fear that the lower home value represents an issue with a property’s quality, that isn’t necessarily the case. At times, it simply means that the going rate for homes is lower overall, allowing you to secure a nice property for less than what a comparable house would cost in a different state that had a higher cost of living.

Iowa also does well in other sectors. It has a score of 96.3 for groceries and a 97.6 for transportation. For utilities, Iowa comes in as average, which a score of 100.0. The only area where Iowa is more expensive than average is healthcare, which landed at a 102.4. However, since it is more affordable in essentially every other sector, the slightly higher costs in the healthcare area have little impact on overall affordability.

Tax Considerations

Whether you’re working with a limited amount of retirement savings or have a significant sum set aside, tax rates matter. If you choose a state that has higher taxes, you’ll have to dedicate more of your retirement funds to cover those expenses. That means you’ll have less money available to support your preferred post-retirement lifestyle, and that isn’t always ideal, particularly if you have a tight budget.

In Iowa, there is a state income tax. However, you don’t have to pay taxes on your Social Security benefits. Military retirement is also tax-exempt.

Other types of retirement income are potentially taxed. Depending on your situation and filing status, you may be able to exclude up to $6,000 as an individual, or $12,000 if you’re married, of retirement income that comes from IRAs, annuity, pensions, or other plans. Generally, those who are at least 55 years old are eligible for some level of exclusion.

Beyond the exclusion, you do pay income taxes on your retirement income. Iowa has a bracket system. Income tax rates come in at 0.33 percent to 8.53 percent, so how much you pay varies depending on your income level.

Iowa also has a sales tax. The lowest rate, as set by the state, is 6 percent. However, each jurisdiction can charge an additional 1 percent, if they so choose. Overall, this rate is comparable to the rates set by most other states.

Individuals who are 65 or older are also eligible for a property tax credit. Usually, the Iowa Homestead Credit reduces the assessed value of the home (for tax purposes only) by about $4,850. This can result in a savings of $100 to $200 on your property tax bill, depending on your jurisdiction’s rate.

Part-Time Job Opportunities

Generally, retirees can find part-time jobs in Iowa with a reasonable amount of ease. Even in the wake of the pandemic, Iowa’s unemployment rate (as of July 2020) came in at 6.6 percent. That’s below the national average of 10.2 percent for the same period.

Before COVID-19, the unemployment rate was also below the national average. In February 2020, it was a startlingly low 2.8 percent.

However, that doesn’t mean the landscape isn’t more challenging today than it was previously. Additionally, until the COVID-19 event completely calms, the situation remains precarious. As a result, retirees today may have a harder time landing a part-time job, though that may subside down the line.

Best Cities for Retirees in Iowa

If you’re looking for a great city in Iowa to call home during your retirement, you have quite a few options. The town of Clear Lake is a popular choice, offering a small-town ambiance and welcoming vibe. Ames is another lovely choice. It’s conveniently located near Route 35, is highly affordable, provides a great feel, and it just 30 miles from Des Moines.

For retirees who want to be closer to a big city, Windsor Heights, a Des Moines suburb, is a solid choice. West Des Moines is a similarly excellent option.

It’s also wise to keep Mount Vernon, Clive, and Johnston on the table. They each have a great atmosphere, though each in a unique way.

How Much Money You Need to Retire Well in Iowa

Since the state has an affordable cost of living, you don’t need as much stashed away to retire well in Iowa. While the exact amount it takes to stay comfortable does vary depending on the city you select, if you have around $57,938 a year available, you should do well in Iowa. Covering your needs shouldn’t be an issue at that income level, and you can also get quite a few wants if you have access to that much cash.

Do you have any tips on how to retire well in Iowa? Share your thoughts in the comments below.

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Does Costco Install Car Batteries?

September 16, 2020 By Tamila McDonald Leave a Comment

Costco members typically turn to the warehouse shopping retailer for most of their needs. It allows them to take advantage of the lower prices that commonly come with membership. Which include savings on select auto parts. Many people wonder, “If I buy a battery there, does Costco install car batteries? Or do I have to handle that myself?” If you need to replace your car battery and are thinking of heading to Costco. Here’s what you need to know.

Does Costco Install Car Batteries?

No, Costco does not install car batteries. While the warehouse stores do sell Interstate batteries –for road and recreational vehicles, as well as certain equipment, like lawnmowers – you can’t get help with the installation.

Generally, the only auto service you can get at a Costco, beyond fuel, is tire services. However, many people can replace their own batteries. The process is fairly simple and only requires basic tools. In most cases, you can find instructions in your vehicle owner’s manual.

Additionally, Costco will take your old battery. When you purchase a battery at Costco, you’ll actually get charged a refundable fee. Bringing your old battery to them, allowing them to properly dispose of or recycle it, lets you get that fee back.

However, if you’re looking for a service center that will handle your battery installation for you, Costco can still help. The Costco Auto Program is there to point you in the right direction.

Does Costco Offer a Warranty on Car Batteries?

Yes, you do get a limited warranty when you buy batteries at Costco. The warranty covers a specific amount of time, the exact size of which may vary depending on the battery you purchase.

Usually, if the battery fails before the end of the designated warranty period or is found to be otherwise defective during that window, you can get a free replacement or partial refund. Precisely what’s available typically depends on exactly what occurs, how long you’ve had the battery, and the warranty terms themselves.

The Costco Auto Program

If you need maintenance handled by a professional, the Costco Auto Program may be just what you need. It’s a network of participating service centers that offer members an exclusive discount, allowing you to save 15 percent (up to $500 per visit) on qualifying parts and services.

Essentially, it’s a handy search tool that lets you find service centers that honor the Costco auto services coupon. Costco doesn’t run those particular service centers. Instead, the service centers are program affiliates, owned and operated by another entity.

You can access a range of services through the Costco Auto Program, including:

Alignments
Brakes
Heating and Cooling
Vehicle Technology Installation
Mileage Milestone Maintenance
And More

It’s important to note that not all services are eligible for the discount. For example, you can’t use the coupon on oil changes. However, it does appear that battery replacements may qualify for the deal. But, even if a service isn’t discount-eligible, that doesn’t mean you can’t use the tool to find a service center in your area.

Additionally, while participating service centers may honor the discount coupon, that doesn’t mean it has the best starting prices. If you’re about to take on a major, high-dollar repair, you should still do your research. Get quotes from participating service providers and those that aren’t affiliated with the Costco Auto Program. Learn about each center’s shop-provided warranties, parts and labor costs, and overall reputation.

Stores That Install Car Batteries

Along with Costco Auto Program service centers, a variety of retailers sell and install car batteries. Plus, some will actually make sure that a battery replacement is what you need, testing your current battery before you make a purchase.

If you want to head to a store that allows you to buy a battery and get the installation handled, here are some retailers to consider:

Advance Auto Parts
AutoZone
NAPA Auto Parts
O’Reilly Auto Parts
Pep Boys

While the retailers above typically offer battery installations for free if you buy the new battery there, that isn’t universal. Many stores are independently owned and operated, and they aren’t necessarily required to offer free battery installations or installation services at all.

If getting a battery installed is your main reason for choosing a retailer, make sure to ask if that service is available before you buy. That way, you can focus on stores that will handle all of your needs.

Do you ever wish Costco installed car batteries? Does the lack of an installation option make you less likely to get your car battery at Costco? Share your thoughts in the comments below.

Guide to Choosing a Legit Online Broker

September 14, 2020 By Tamila McDonald Leave a Comment

Are you thinking about trying your hand at online trading? While there are some that choose to look into doing this on their own, many others decide instead to take on the services of an online broker who will help them make decisions. Find out more about how to choose a legitimate online broker who can offer you a great service by reading on.

Decide on a Speciality

There are different types of investments and lots of different brokers to go along with this. You need to make sure that you are choosing a broker who knows the ins and outs of the specific industry that you are focused on.

For example, if you want to focus on Forex, you would go to a broker who specialises in this area, as opposed to one who might specialise in stocks and bonds. They will have the connections and industry knowledge that allows them to seek out the best deals. Otherwise, you might end up with a broker who is very qualified, but is unable to help you to maximise the potential of any investment.

Find Out About Accreditations

There are several governing bodies in the world of trading to help make sure that everything is as fair as possible. If you want to get involved with trading in any capacity, you need to make sure that you have some understanding of these regulatory bodies and what they can do for you,

They might be key in helping you get money back from binary options scam, as well as helping with other changes to ensure that no-one else falls for the same scam. Make sure you know who can help you beyond your broker, and don’t be afraid to ask for accreditations to verify for yourself if they claim to have them.

Verify the Broker Yourself

Never just pick the first broker you find. There is a strong chance that they will not be able to offer you the service you want. Instead, you need to make sure that you are going with someone that you know you can trust.

Start by verifying the accreditation they have, and try to open a conversation with them about your goals as a trader. A legitimate trader should be able to instantly start to make decisions about paths you could first pursue. They should be keen to establish a relationship with you, and they should maintain contact throughout all of their dealings. Don’t forget to also check them again some of the many review sites and scam guides and broker lists to ensure that you are dealing with someone legitimate.

Your broker is going to be one of the most important relationships you can craft. You need to make sure that choosing someone who you know is reputable, and who you can be certain is going to do everything in their power to deliver your ideal results. Research, research, research, and hopefully you will be able to land exactly the right broker for you.

Does Giant Eagle Price Match?

September 11, 2020 By Tamila McDonald Leave a Comment

Many shoppers prefer grocery stores that offer price matching. It ensures they can get their hands on the best deals even if the best discounts are available at another grocer. But not all stores offer price matching, and figuring out which ones do can be surprisingly challenging. If you’ve ever wondered, “Does Giant Eagle price match?” here’s what you need to know.

What Is Price Matching, and How Does It Work?

Price matching is a fairly simple concept. It covers stores willing to match a lower price that’s being offered by a direct competitor for that specific item. Usually, the store with a price match policy can define which other retailers are or are not competitors. For example, they may limit price matching to physical stores within a certain radius, or could be broader, also accepting online prices at major e-commerce retailers.

The products have to be exactly alike to qualify. For example, the model number or UPC typically has to match. However, for items like fresh produce, the matching may simply require that it be the fruit or vegetable, including the same variety and other identifiers (such as organic or non-organic).

Additionally, the shopper commonly has to provide proof of the lower price and where it is being sold. Usually, that means having a sales flyer or webpage available as evidence.

In most cases, getting a price match at the time of checkout simply involves informing the cashier of the lower price and showing them the evidence. They can then follow the store’s procedures to provide the discount, suggesting you qualify.

Some stores do have price match policies that work after the sale, though this is rare. For these, you may need to bring your receipt and evidence to a customer service counter within the designated price matching window, allowing you to secure a refund for the difference.

It’s important to note that a variety of other conditions can apply. For example, stores usually won’t price match a clearance price, or when the lower price is clearly a typo and not a legitimate discount. Every store has a unique price match policy, if they offer the service, outlining the requirements. Any request that doesn’t align with the rules is going to be denied.

Does Giant Eagle Price Match Guarantee?

While Giant Eagle doesn’t explicitly state they don’t price match, the store does not have a price matching policy. Since there is no policy outlining the service, it’s safe to conclude that the retailer does not offer it.

Giant Eagle Pricing Policies

While Giant Eagle doesn’t have a price match policy, it does have another pricing policy that could benefit shoppers.

First, there’s the price accuracy policy. If you discover that you were charged more than the posted or advertised price on an item, the first improperly scanned product is free as long as it is worth no more than $25. For items over $25, the customer will receive the first of them for $25 off the lower, correct price.

If you bought multiples, the price accuracy policy allows for changes here, as well. The subsequent items (including if they are different varieties, such as different flavors of the same type of cereal) are adjusted to reflect the correct, lower price.

Grocery Stores That Offer Price Matching

Many major retailers do offer some form of price matching, including on grocery items. While each store controls its own policy, allowing it to set its own rules and outline unique restrictions, it could benefit savvy shoppers who are willing to take the time to get discounts.

Target offers price matches for select online retailers and local competitor print ad prices. There are quite a few requirements and restrictions outlined by Target on its website. But, if your purchase qualifies, you can request the discount at checkout or within 14 days after making the purchase.

Walmart also has price matching, though its program is fairly restrictive. For example, you’re limited to one item per day, so you can’t get a reduction if you purchase multiples of an item or two separate products that could both potentially qualify. Other rules are listed on the Walmart website.

Price Matches Can Be Added, Removed or Altered

It is important to point out that companies can add, remove, or alter their price matching policies, mainly at their discretion. Usually, major retailers will announce modifications that are more restrictive or removals of services in advance.

When new options are coming available, a retailer may choose to advertise them to entice shoppers. However, some may simply add the policy without an announcement. As a result, savvy shoppers should review the policies of their favorite grocers regularly. That way, they can explore new options or policy changes as soon as possible, ensuring they are well-informed and can get the best deals.

Do you prefer grocery stores that offer price matching? If Giant Eagle started a price match guarantee, would you shop there more, or would it matter? Share your thoughts in the comments below.

Will the Election Change the Way We Save Money?

September 10, 2020 By Tamila McDonald Leave a Comment

Elections can lead to tumultuous times. With the 2020 presidential election on the horizon – as well as elections for House representatives and many Senate seats. Many people are wondering how the event may impact them financially. Will it change the way people save? Will it alter the value of investments and retirement accounts? While it is impossible to completely predict what will occur. There are some possibilities that are worth considering. If you want to make sure you’re ready for what the election may bring. Here’s what you need to know.

The Economy Will Still Be Trying to Recover No Matter Who Wins

Regardless of who wins in the upcoming election, the economy is probably going to still be in recovery mode, at best. The COVID-19 pandemic had a major financial impact, one that isn’t going to correct quickly regardless of how the elections turn out. In most cases, financial decisions – including savings and investment rates – should focus more on that than who wins the big office.

It’s true that the winners in the election do get to make certain policy moves and decisions that could impact the recovery. However, there’s no way to anticipate what that may involve. Mainly, this is because the president doesn’t get to decide solely. Congress also plays a role. Since there’s no way to know until election day who the president will be and whether each side of Congress will have a Republican or Democrat majority, the situation remains unpredictable.

Long-Term Saving and Investing Is Almost Universally Wise

Investing or saving for the long-term is typically a wise move regardless of the economic climate. By and large, the markets have gone up over time, irrespective of who has been president and whether it switched between the parties. The standing trend is upward, even with a few significant downturns coming in here and there.

The biggest impact of the election may be short-term volatility in some of the markets. With any election comes uncertainty. In the weeks leading up to election day, fluctuations are fairly common. At times, they continue after the election for a period, particularly if there has been a major change, like a switch in the controlling party of the presidency, House, or Senate.

As far as interest rates, those will likely stay low for some time, predominately due to the economic conditions created by the post-COVID-19 landscape. This is ideal for prospective borrowers, as loans and other forms of financing may be more affordable. However, it also means savings interest rates may remain lower, as well.

Will People Change How They Save Because of the Election?

By and large, savings patterns will likely remain similar. At times, the low-interest rates could indicate that people should reconsider their savings approach. For example, if your portfolio is brimming with low-yield bonds, you may want to rethink your strategy for a time, suggesting you can tolerate additional risk.

However, if your portfolio is diverse, and you have solid emergency savings, your methods will likely be reasonable for the interim. Ultimately, whether the election will have an impact won’t be fully known until it occurs, so it’s best to focus on staying informed about existing economic conditions and preparing for the future, just as you typically would.

Do you think the election will change the way people save money? Why or why not? Share your thoughts in the comments below.