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Is It Time to Cash Out of Your Investments?

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People invest as a means of securing their financial future, providing them with a source of money at the right time.

Outside of retirement accounts, you typically have a lot of power when it comes to choosing to cash out your investments. But how do you choose the right time to cash out of your investments?

Determining when to cash out your investments is a personal decision. You have to examine your current circumstances and goals to figure out what is right for you. However, there are some situations where cashing out may be a smart move.

Buy Low, Sell High

When it comes to managing a stock portfolio, you always want to focus on buying low and selling high. Typically, if a disaster strikes a company, their stock values will fall. At times, this triggers a sizeable sell-off, driving prices down for hours, days, weeks, or longer.

If this happens, it can be tempting to jump ship as well. However, you also need to avoid panic-based decision-making if you want to come out ahead.

For example, after the Cambridge Analytica Facebook scandal, Facebook’s stock value plummeted, losing around $134 billion in value at the low on March 26, 2018.

However, by early May, all of those losses were recovered. If you cashed out your investment near the low, you’d likely be regretting that decision. Now if you’d bought instead of sold when that price hit the low point, you’d be golden.

Before You Cash Out of Your Investments

Before you cash out, you need to determine whether a negative incident relating to a company recoverable. While this can be hard to predict for certain, it is important that you think logically about the situation.

In some cases, you can determine whether a company may survive a downturn based on the nature of the scandal. Incidents that bring about criminal charges for corruption, money laundering, or similar activities can spell doom for a business. If that occurs, you might want to pull your money out quickly. Otherwise, there might not be much left.

However, downturns that are the result of a shift in public sentiment, such as when United Airlines lost $1.4 billion in value after forcibly removing a passenger from a flight, aren’t irrecoverable. If anything, that downturn is the time when you get to buy more stock at a lower price.

Sell If You Need to Make a Big Purchase

If your investments aren’t earmarked for a specific purpose, like retirement, then cashing out to make a big purchase can be smart. For example, buying a home or paying for a child’s college education could be a good use of the money, depending on a few factors.

Generally, you only want to cash out your investments to pay for a substantial purchase if they are earning less than you would spend in interest if you financed the expense with a loan or put it on a credit card.

For example, if your investment account is only making 5 percent and the interest on a loan would be 6 percent, then cashing out can help you save money. If the interest rate on the loan or credit card is lower than the growth rate on the investment, then you may be better off financing the purchase.

Compare Loan Interest Rate to Portfolio Yield

For example, the average fixed-rate mortgage is below 5 percent as of June 2018. If your portfolio is earning 7 percent, then cashing out means you suffer a potential net loss.

However, making a purchase with cash from an investment does provide peace of mind. You won’t have a debt hanging over your head, and your monthly expenses are lower. If you prefer that feeling of financial security, taking a loss can still be a good choice.

Additionally, using your investments to cover your child’s college expenses may also be beneficial. Many parents want to help their kids start off as adults on solid financial footing.

Student loan debt can be particularly cumbersome, especially since the average student loan debt for 2016 graduates was $37,172. Helping them avoid that level of debt may provide intrinsic and financial benefits, so cashing out your investments is a reasonable option.

Capture a Gain When an Investment Peaks

In comparison to other investment vehicles, the cryptocurrency market is incredibly volatile. For example, in December 2017, Bitcoin was worth $19,140.70. As of June 13, 2018, according to Coinbase, it was only worth $6,286.21. That’s more than a 67 percent loss.

Those who got into Bitcoin early and cashed out their investment near the peak were rejoicing. Everyone else may feel like they missed out.

If you invest in cryptocurrencies, you need to pay close attention to the markets. While determining when a peak will occur is a challenge, with some research, you can increase your knowledge. For example, look for details about pending regulations or major companies supporting a particular cryptocurrency.

Taking Retirement Distributions

Once you reach retirement age, a significant portion of your income will need to come from savings. If you’ve been a diligent investor, your accounts likely have some value that can make your retirement more comfortable.

When you look to cash out your investments, focus on replacing funds in your spending account instead of pulling everything out of the market. Essentially, you want to whittle away at your portfolio, not empty it from the beginning.

Speaking of whittling, that’s the size of the withdrawal you want to make from a retirement account once you start taking annual distributions. You are required to start doing this by the time you reach 70.5 years so that you can pay income taxes on the proceeds; to learn more about how much this is, click here.

Reducing Risk and Generating Income

Typically, when you retire, you want to focus on income-generating investments — in fact, many experts suggest you begin ratcheting down the risk level in your portfolio once you’re within a decade of retirement.

Aim to move from equities to fixed income incrementally — each year, move another 10 percent of the portfolio from equity toward a fixed income investment.

You don’t want to cash out entirely to support your retirement because you may live another 20, 30, or even 40 years.

If You’re Uncertain, You Don’t Have to Cash Out

If you aren’t sure when you really intend to retire, consider placing just five years of living expenses in a fixed-income account and leave the rest in the market — if the markets are still trending upward, you might as well, assuming the news continues to be favorable.

However, if a downturn is likely, you might want to cash out, especially if the reason for the shift isn’t expected to improve.

Ultimately, deciding when to cash out of your investments is a personal choice. When in doubt, seek advice on the matter.

Readers, what are your opinions about when to cash out of your investments?

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Looking for more great investment articles? Give these a try:

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.

Unreimbursed Medical Bills Are #1 Cause of Bankruptcies

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Medical debt continues to be the leading reason for bankruptcy filings in the U.S. And it isn’t just the uninsured that struggle with healthcare expenses.

Approximately one in five insured Americans under the age of 65 had trouble paying their medical bills. Of those, 63 percent used most of all of their savings to handle the costs; 42 percent even took on a second job to help pay the debts.

However, some of them end up with medical bills that are so unmanageable that bankruptcy becomes the best option.

In 2016, there were 770,946 personal bankruptcy filings in the U.S. The number includes people of all ages, genders, and marital situations. It represents single professionals, middle-class families, and retired persons

Hospital Stays

On average, the cost of a hospital stay is more than $10,700. A routine childbirth, the most common reason for a hospital stay, runs about $3,600.

A heart attack can easily run over $20,000 per stay while an aneurysm costs more than $34,000. What about a broken leg? That can come with a price tag of $16,796 on average.

For nearly any stay, even if you have insurance, at least some of those expenses result in out-of-pocket costs.

Precisely how much the patient owes depends on the condition and the course of treatment. Additionally, the form of insurance also plays a significant role. Coverage through different insurers, ranging from Medicare and Medicaid to private or employer-sponsored plans, can vary dramatically.

Treating Conditions

The costs above only reflect those associated with a hospital stay, and they certainly aren’t the only source of medical bills.

Cancer drugs cost at least $10,000 per month, while some treatments can cross the $30,000 mark on a monthly basis. Even if you have insurance, you can expect to pay around $24,000 to $36,000 for your medication based on the typically 20 to 30 percent out-of-pocket requirements.

Those expenses don’t include other forms of treatment, like surgeries to remove tumors. Additionally, premiums and co-payments or coinsurance aren’t included in those figures either.

Even Diabetes is Expensive

If you have diabetes, the average annual medical expenditure to treat the condition is $9,601. Plus, since these individuals are at greater risk of developing other conditions, their total medical costs are typically much higher.

When insurers require pre-approval — not just for diabetes treatments but any other medical condition — that can result in astronomical out-of-pocket costs amid the rush to provide an emergency treatment. Yet many insurance companies mandate that certain forms of treatment and types of specialists be made known to them in advance.

Plus, the insurer can choose to turn down your request for coverage,. If you go forward without approval, then you may be responsible for all of the medical bills that come after.

Why Unreimbursed Medical Bills Lead to Bankruptcy

Ultimately, most people who chose to file for bankruptcy do so because they can’t afford to pay their bills. When it comes to medical expenses, bankruptcy creates a path to get out from under the burden.

Typically, medical bills receive the same treatments as unsecured debts, meaning there is no collateral associated with the obligation. Additionally, they may be low-priority debts. This can increase the likelihood of discharge without the need for any additional repayment.

People who file for Chapter 7 or Chapter 13 bankruptcy may find relief from their medical bills. They may also find relief from a variety of other debts. While it results in a severe and long-term hit to their credit, it can be worth it to escape the situation. Especially,  if the medical expenses are genuinely outside of their capabilities.

Bills May Still Be Due During and After Bankruptcy

However, bankruptcy doesn’t necessarily make medical bills go away. The ultimate outcome depends on a much bigger picture: your unique financial situation, including the existence of other debts, current income, and available assets.

If you are considering bankruptcy, it’s wise to consult with an attorney who can review your financial situation and determine which options may be available. Additionally, the attorney can provide you with guidance on whether your medical bills are likely to be discharged.

However, the final decision in that area is in the hands of the judge handling your case, not the attorney. Unfortunately, bankruptcy judges have gotten a lot stricter about forcing debts to be restructured rather than discharged.

Are Bankruptcies Due to Medical Costs Going to Rise?

Recent changes to the Affordable Care Act, also known as Obamacare, significantly affect healthcare exchanges and plans in many states. Since the shifts are fairly new, the full impact is not yet realized.

However, if costs rise, as many expect, the number of bankruptcies involving medical bills could shift upward. Additionally, the removal of the individual mandate may encourage some people to drop their coverage, particularly if the expense for their plan increases significantly.

In early 2018, a federal budget deal cut funding for programs associated with Medicare and Medicaid. While the White House asserts that the savings will come from program reforms, not benefit cuts, it’s difficult to tell how it will actually develop.

Fewer People Eligible for Coverage With Funding Reductions

A possible impact of funding reductions could mean fewer people are eligible for coverage. This could result in a larger portion of the population not having insurance, especially in lower income brackets, where medical bills are harder to manage.

If the amount of coverage shifts, placing a higher burden on those who use the programs, the same scenario could apply.

Even those with insurance through their employers are feeling the burden of shifting medical costs. Changes to federal regulations gave insurers the ability to review the health risks involving children on family plans; this has resulted in  higher premiums for many people in 2018.

Companies Shift The Burden of Health Insurance to Control Costs

Companies that are looking to control their costs often shift more of the financial burden of health insurance onto their workers, increasing the out-of-pocket costs on entire families.

Between 2012 and 2017, the average premium rose by 19 percent, and copays, coinsurance, and deductibles also went up. Between 2005 and 2015, out-of-pocket costs grew 66 percent, or more than double the growth rate of wages during the same timeframe. This can be a big reason for unreimbursed medical bills causing financial hardship to consumers.

Adding to all this, healthcare costs have an above-average rate of inflation: Currently, the annual growth rate of healthcare spending is expected to outpace overall economic growth by around 1 percent for the next decade, so that means that the prices would go up by about 3 to 4 percent annually on average.

All of these factors suggest that medical bankruptcies could increase significantly over time due to unreimbursed medical bills.

Readers, what kind of unreimbursed health-care costs have you had to deal with? And what about bankruptcy? Please tell us about your experience in the comments below.

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Looking for more great articles? Here are a few to get you started:

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.

 

Investing in Art and Antiques for Fun and Profit

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Investing in Art and Antiques for Fun and Profit

Yes, you make money investing in art and antiques and have fun while you do it — if you’re savvy about things.

Although the rate at which antiques appreciate hasn’t been benchmarked, fine art has delivered an average annual return of 8.9 percent since 2000, according to Artprice.com.

To achieve anything comparable requires does require knowledge of the world of art and antiques, but if this is something you’re already interested in, that can make this a fun type of investing.

Diversification

Investors learn that having a diversified portfolio helps protect your money during market fluctuation. Diversification spreads out your risk: that way, if one area is experiencing losses, they might be offst by gains in other areas.

As such, antiques and art provide a great opportunity to diversify your investments — which can improve your overall performance.

The diversification comes from the fact that their values are not correlated to stock prices. If your stocks go down, your antiques and art might not lose value at the same time. In fact, they may flourish during these periods.

Illiquid Assets

However, it’s important to note that art and antiques are illiquid assets: You can’t sell them as easily as you might be able to unwind other types of investments.

Instead, you have to track down a buyer or find a suitable mechanism, like an auction, to attempt to make a sale.

This means antiques and art aren’t ideal as immediate income sources. However, if you embrace a long-term buy-and-hold strategy, pay attention to the market, and properly time your sales activities, you can make a significant profit.

Unique Costs

While all investments cost money — and that’s generally reflected in the price you pay for them — there are additional costs associated with art and antiques.

First, you must house the items. Whether this means placing them in your home or an appropriate storage unit, one way or another you’re paying for that.

If you have to store it somewhere other than where you reside, you need to make sure it’s somewhere you will be able to control the temperature and humidity — to protect the art and antiques from damage.

Insurance

Speaking of the potential for damage, you will need to insure your art and antiques. This might require you to first pay for an appraisal to determine their value so you know how much coverage to buy.

Then, you need to secure coverage through an insurance provider. High-value items may require you to purchase a rider on your homeowners’ or renters’ insurance; or you might need to obtain a completely separate plan, depending on which insurer you choose.

Maintenance

Another cost associated with art and antiques involves care and maintenance, which makes sure the assets do not lose any value.

roper cleaning techniques are a must, especially if you are going to use the items in your décor.

You also need to be careful when you use them, such as by using coasters on antique tables to avoid condensation rings.

Commissions

Additionally, depending on how you intend to buy and sell your antiques and art, you might end up paying commissions.

Not unlike the commissions you pay when you buy and sell stock, third-party art and antique auctioneers and dealers charge fees for their services.

The commissions usually amount to a percentage of the sale value — so it’s in the dealer or auctioneer’s best interest to command the highest price for items. If you sell through an auctioneer instead of a dealer, you might want to set a minimum sale price.

Popularity is an Important Factor

Since art and antique sales are predominately managed in the private market, popularity is a primary driver for value. Just because an antique or piece of art is old, that doesn’t automatically make it valuable.

Specific artists or craftspeople, periods, or styles may be more appealing for a certain period of time. Then, similar to a fad, interest may fade, leading the pieces to lose at least some of their value.

Similarly, supply and demand play a substantial role. Antiques and art only have value if there is a buyer willing to make the purchase. If a piece or artist is in demand, people may increase the amount they are open to paying in an attempt to secure the item. In an auction-style setting, this creates a bidding war, driving the price up.

However, if an antique or piece of art isn’t in demand, finding even a single buyer may be a challenge. If you really need to sell the item, you may have to accept a lower price to complete the transaction.

Investing in Art and Antiques for Fun and Profit

One of the benefits of investing in art and antiques is that you can actually enjoy the items — unlike stocks and bonds, which you can’t put on display the way you can with furniture, paintings, and sculptures can be a part of your décor.

If you enjoy the works of a particular artist, adore a furniture period, or simply find pieces that bring you joy, it can be fun to add them to your collection. This provides you with some level of intrinsic value, which can be just as beneficial as a financial gain.

Plus, if you appreciate the piece, embracing a buy-and-hold strategy isn’t a burden. You can enjoy the work while it is in your home, making it easier to wait until the market supports a high sales price.

Risk of Fakes

Just like any other type of investment, there are risks associated with art and antiques — such as the prevalence of fakes and bogus reproductions.

If you are looking at the items as an investment, you need to seek out reputable dealers and auction houses who can vouch for their authenticity and that an item is original.

Ideally, you want verification from an expert in writing and, if available, records about the piece’s history, including previous owners and details that show the piece is genuine.

Before you invest in art and antiques, do your research. That way you can make sure you are truly getting an investable item and not something that won’t retain or improve its value.

Readers, what kind you collect antiques and art as an investment? Tell us about your experience in the comments below.

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Looking for more great articles about investing? Here are a few to get you started.

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.

Is It Still Cheaper to Rent Than Buy a Home?

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Is it still cheaper to rent than buy a home

Although the U.S. Federal Reserve has just indicated that it may step up the pace of interest rate increases,  there has yet to be any indication that changes in mortgage availability might change how people decide whether to buy or rent homes.

Choosing whether or not to buy a home is a serious decision. It’s a substantial financial investment. The median home value in the country is around $215,600, and that number is expected to rise by about 6.5 percent over the next year.

But the median rental rate is also substantial, coming it at around $1,650 per month. This means that remaining a renter can also be costly.

Where It’s Cheaper to Buy

However, there are still several cities where it’s cheaper to purchase a home than rent — and in some cases, the savings are so profound, it might even be worth relocating.

One example, according to MarketWatch, is Pittsburg: The average rent is over $1,200 per month, but your monthly mortgage payment would come in less than that due to the overall price averaging less than $150,000.

Another great city for homebuyers: Tampa, Florida, where renting costs at least 80 percent more than buying in most locations.

Believe it or not, even Orlando, Florida is a better place to buy than to rent; it costs twice as much to rent than to purchase a home.

Still, other cities where it’s cheaper to buy: Boston, Detroit, Miami, Philadelphia, Cleveland, Kansas City, Cincinnati, and Houston.

Other Costs for Buyers

However, the decision on whether to buy or rent shouldn’t just concern the property’s sale or rental price, as there are other expenses that come with buying a home.

Appraisals

Usually, you’ll need to pay for an appraisal, which normally runs between $300 and $500. On top of that, you’ll need a home inspection, which typically costs a similar amount.

Property Taxes

Homeowners are also responsible for property taxes. Since property taxes are paid upfront in six-month increments, you may need to reimburse the seller for taxes between the date of closing and the next tax period.

Homeowners Insurance

Additionally, you might have to pay for a year’s worth of homeowner’s insurance in advance, depending on your lender or insurance carrier.

Closing Costs

Closing costs are another expense. Typically, they amount to 2 to 5 percent of the purchase price.

Mortgage Principal and Interest

The biggest ongoing expense of buying a house is the mortgage payment. If you use a loan to finance your purchase, you’ll be paying that debt down over the course of 15 to 30 years, unless you work to pay it off faster. This means you are also paying interest, which is based on your creditworthiness.

Private Mortgage Insurance (PMI)

If you aren’t putting 20 percent down, then PMI is an additional expense you’ll be shouldering. This protects the lender should you fail to make your payments, requiring them to foreclose on a property that is upside down. It’s a monthly expense, tacked onto your mortgage.

Escrow

Often, your lender will also open an escrow account associated with your loan. Typically, this collects additional funds for property taxes and homeowner’s insurance payments. The amount needed to fund the account is attached to your mortgage payment, ensuring you don’t miss a payment or drop your policy.

HOA Fees

If you live in an area with a homeowner’s association (HOA), there’s usually a monthly or annual fee that you’ll need to cover.

HOA fees can vary dramatically, as they only apply to a single community. In some cases, the fee may be $20 a month. However, homes on golf courses, in resort-style locations, or areas like New York City may have monthly HOA fees over $500.

Utilities

You also need to factor in utility costs, especially if you are looking at purchasing a larger home. As a homeowner, you are directly responsible for electricity, water, sewer, garbage, and natural gas, depending on which are on your property. The only exception is with some HOAs, where the association may handle some or all utility costs.

Maintenance

Beyond your mortgage payments, you also have to plan for home maintenance. Unlike in a rental situation, if something breaks in a house you bought, you’re probably on the hook for any repair costs.

Repairs and Upgrades

Plus, you’ll need to plan for significant repairs or upgrades, like replacing the roof when necessary or updating your attic insulation.

Most experts recommend setting aside at least 1 percent of your home’s value each year for repairs and maintenance. However, aiming for 3 percent is wiser, especially if you know a large expense (like the roof repair above) is on the horizon.

Rental CostsIs it still cheaper to rent than buy a home?

In most cases, the cost of renting a home is substantially easier to calculate. Generally, you’ll be responsible for a monthly rent payment and renter’s insurance.

Often, the rent amount is over what you’d pay for a mortgage on a similarly sized property — but that’s because you aren’t directly responsible for a variety of other expenses (at least not directly), which are broken out above.

Landlords generally pad the rent to make sure that they can manage repair costs and make a profit. In some cases, utility costs are also part of the rent amount if they included.

Do the Math

If you want to figure out if it makes more sense to rent than buy, you’ll need to do some math. Begin by reviewing all of the expenses associated with purchasing a house in your desired budget.

Make sure you include the mortgage payment (including interest, PMI, and the escrow account), maintenance costs, utilities, and HOA fees. Also note any other costs that have to be paid upfront, like appraisal fees.

Next, find a similar rental property. Add the cost of rent, renter’s insurance, and utilities. Then, compare that number to the one associated with buying a home.

So Is It Cheaper to Rent Than Buy?

Ultimately, by making the comparison, you can determine whether it makes more sense to rent or buy in your current area at this specific time. In some cases, you’ll discover that homeownership may be cheaper. Adding to the cost benefits, you get to build equity, which is a nice bonus.

However, renting can be a better financial choice in some cities, so don’t assume that buying always wins out.

Also, market conditions can fluctuate: Even if buying is better today, that doesn’t mean it will be a year from now — for instance, it’s possible that the continued ascent of interest rates might eventually bring about a softening in home price inflation.

If you don’t intend to move forward quickly, you’ll need to look at the calculations again when you actually get ready to buy.

Readers, how have you grappled with the decision to rent or buy? Tell us about it in the comments below.

Read More About Homeownership

If you liked this article, you just might enjoy these other items from our archives:

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How Much YouTubers Really Make Versus Patreon

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Many people dream of becoming YouTube stars — presuming that because a few elite achievers have made small fortunes on the platform, then perhaps anyone can.

The top earners make it look easy — like Daniel Middleton, who pulled in $16.5 million in 2017; Evan Fong, who made $15.5 million that year; Dude Perfect, who made $14 million; and Markiplier, who earned $12.5 million.

Unfortunately, these figures are the exception rather than the norm: The vast majority of YouTubers barely make anything, if they are able to monetize their channels at all.

A recent study found that 96.5 percent of those trying to become YouTubers don’t earn enough from advertising to cross the poverty line.

If you break into the top 3 percent of YouTube’s most-watched channels, you might make $16,800 in ad revenue — that’s only $4,460 over the poverty line for a single person or $400 over the line for a couple.

Meanwhile, it keeps getting harder to cross that line because the top channels’ share of overall viewership is increasing.

Source: Bloomberg News and Mathias Bärtl of Offenburg University of Applied Sciences
Source: Bloomberg News and Mathias Bärtl of Offenburg University of Applied Sciences

As if that wasn’t challenging enough, YouTube has also made it harder to earn money from a video channel through a policy at the beginning of the year: New channels can’t collect advertising revenue from YouTube until they have 10,000 subscribers and a minimum of 4,000 watch hours over the previous 12-month period.

This has lead new video creators to supplement their efforts on YouTube with other income streams. Without a doubt, it’s a lot of hard work — something that others underestimate.

Sponsorships and Pledges

While some YouTubers have been supplementing their income through selling their own sponsorships, other video creators have been raising money on Patreon, which is a crowdfunding platform for content. And while the platform isn’t limited to video creators, many YouTubers embrace the platform to create revenue.

Unlike the largely ad-driven model behind YouTube, Patreon essentially lets you sell subscriptions in the form of pledges. Subscribers pledge financial support on a monthly or per project basis.

Effectively, Patreon users are collecting donations from fans. Many video creators who started on  YouTube have gone on to earn more money through their Patreon profiles than they ever did on YouTube.

Patreon Versus YouTube

Plus, Patreon appears to be more transparent than YouTube. Creators can see how much is pledged — and also look at rankings of what others are earning.<

Exactly how much a YouTuber makes through Patreon varies dramatically. Generally, you’ll need a strong following before anyone is willing to pledge any money.

Quality content is king in this case, so it requires putting your best foot forward. Plus, there needs to be an incentive for people to pledge — not just a rehashing of videos already posted on YouTube. It should have exclusive content available only to the subscribers or other rewards that are relevant to the channel.

A Patreon channel doesn’t have to be tied to YouTube at all. Or, the same Patreon account can also support ventures on other platforms, like Twitch, or even personal websites.

Taking Breaks

Interestingly, many YouTubers, even those with millions of subscribers, are taking breaks from the platform in droves.

Why would they risk a potential source of income by stepping away? For their mental health, to put it simply.

Ruben “El Rubius” Gunderson, who runs a channel with 30 million subscribers, recently said he was stepping away from YouTube, at least for a while. And he isn’t alone.

Numerous popular YouTubers have posted videos discussing decisions to step away from the site, largely pointing to the stress of keeping up the pace and pressure to keep creating while trying to stay relevant.

Many talk about burnout, while others mention the risk of a full breakdown. The pace required to keep up is hard for many to grasp, and many YouTubers stop enjoying the process as the stress piles up.

Can You Make Money as a YouTuber?

Yes, it’s still possible to make money as a YouTuber — but it requires a lot more effort than most people realize. The vast majority of creators won’t make enough to live on if they earn anything at all.

By adding other options, like linking to a Patreon account — or selling sponsorships directly — the chances to make money increase.

Posting videos on a daily basis can also help — that’s what popular creators like PewDiePie do.

Additionally, you need to be willing and able to promote yourself tirelessly. In addition to filming, editing, and posting videos, most YouTubers are active on other social media sites, using them to promote their videos and engage with fans.

The amount of time required to keep all of these balls in the air can be staggering, so don’t underestimate the workload.

Many Factors Determine Success

Additionally, whether someone will be successful on YouTube depends on a variety of factors — including the strength of a person’s network of contacts (after all, this is social media).

While the quality of the video content plays a large role in determining success, so does the person’s chosen niche.

Certain topics are fairly saturated and may be dominated by big-name YouTubers. Breaking into these niches could be a challenge, particularly if you aren’t bringing anything unique to the table.

However, if you are engaging, have a unique perspective, and are willing to do a lot of work in the hopes that one day you’ll make some money, it might pay off at some point. But, with all the competitive pressures, it’s by no means a sure thing as a money maker.

If you want to make the risk worth it, you need to pick a niche that you are truly passionate about. Not only will your enthusiasm make you more engaging, but it also makes it feel like less of a chore.

Readers, what kind of online videos do you most enjoy watching? What about creating them?

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Looking for more great articles about making money? Give these a try.

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.

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Discounts for Savvy Senior Shoppers

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Today, more than 108.7 million Americans are over the age of 50. And, out of that group, approximately 47.8 million of them are age 65 or older.

Once you reach age 50, you become eligible for a range of senior discounts. More of them become available as you get older, particularly by the time you get to Social Security’s current minimum retirement age of 62.

Whether you already qualify for senior discounts or are just planning for the future, taking advantage of the savings is a smart move. They can save you money on a range of purchases, helping you stretch your retirement dollars even further.

While requirements for a senior discount vary by retailer, some of the discounts are substantial. Here are some of the best available.

Movie Theaters

The vast majority of movie theaters, including major chains, offer ticket discounts to seniors. For example, AMC provides discounts to moviegoers over the age of 60. Regal Cinemas also use 60 as the cutoff. At Cinemark, the minimum age is 62, and the cost reduction is only available on specific days that vary by theater.

Many theaters allow seniors to pay matinee prices all day long. This can be a boon for movie fans, and you don’t have to do anything but show them a picture ID to qualify.

Even local theaters may offer discounts. If you don’t see one posted, then ask the cashier to let you know what is available.

Cruises

Seniors can also score discounts on a range of cruises to popular destinations. Carnival offers reduced room rates to travelers 55 and older, although the specific amount of savings may vary depending on the ship and destination, and not all cruises qualify — click here to see which ones do.

Royal Caribbean has a similar system: People age 55 and up can receive discounted rates, though typically only on specific trips.

Grocers

Some large retailers offer seniors some serious discounts, but only under specific conditions. For example, Fred Meyer takes 10 percent off of apparel, shoes, home goods, toys, auto, and garden purchases. Store brand groceries are also eligible, as well as many electronics purchases.

If you are 60 or older and shop at Harris Teeter for groceries, make sure to go on Thursdays. That way you can enjoy a 5 percent discount on your entire purchase. Hy-Vee offers a similar arrangement on Wednesday, but with additional restrictions including requiring you to have a senior discount card.

Retail Chains

Goodwill thrift stores have senior days about once a week — when people 55 and up save 20 percent. Precisely which day is senior day varies by location, so you’ll need to check with your local store to find out.

Kohl’s provides a 15 percent discount for anyone 60 or older on Wednesdays. All you need is a valid picture ID to qualify.

If you enjoy crafting, then consider shopping at Michael’s: it gives shoppers age 55 and older 10 percent off every day. Just present a photo ID when checking out and request the discount.

Pep Boys, the auto parts retailer and service shop, provides a 10 percent discount with an ID showing you are at least 55.

Restaurants

Denny’s and IHOB offer senior discounts through their senior menu. Typically, the meals are smaller than some of the other options, but they are pretty generous for the price. On top of that, Denny’s offers an AARP discount, giving you the chance to save even more.

National Parks

The national park system offers anyone who is at least 62 a lifetime pass for $80. This gives you entrance into any and every national park for the rest of your life, no additional payment required. The pass also gives you 50 percent discounts on amenities like camping spots and boat launches.

Public Transportation

Most public transit systems offer discounts to seniors. Usually, this makes bus and subway passes substantially cheaper.

In many cases, you don’t have to live in the area to qualify. This can be a great way to get around a city when traveling, particularly if you don’t want to drive in an unfamiliar area.

AARP Discounts

If you want to get access to a wider range of senior discounts, then it behooves you to join AARP; people age 50 and up are eligible for full membership, and those under that age can get associate memberships that still enable you to get all the discounts.

Joining does come with a cost, though it is fairly minimal. For your first year, if you sign up to auto-renew, you only pay $12. After that, it should cost no more than $16 annually, according to current prices.

However, by signing up, you can easily make your money back in discounts. Many restaurants, car rental companies, hotels, cell phone carriers, and retailers give AARP members a percentage off the cost of their services.

Glasses and Car Rentals

Typically, an establishment that offers an AARP discount will reduce the cost by at least 10 percent. However, some go much higher. For instance, Pearle Vision knocks 30 percent off a complete pair of glasses and 20 percent off of the price of contacts. You can also save up to 30 percent on Avis car rentals in some locations.

If you are open to ordering glasses online, Glasses.com knocks 25 percent off of their prices for AARP members for purchases over $200. If you spend less than $200, you still get a discount, but it’s lowered to 15 percent.

There are many, many more AARP discounts out there, too. Luckily, AARP tracks them all on its website, making it easy for members to make sure they can save as much as possible.

Plenty of Discounts for Savvy Senior Shoppers

You might be able to obtain plenty of other discounts just by asking around — if you’re at least 55, it doesn’t hurt to ask your favorite stores for senior discounts.

They’ll be able to tell you the requirements, including age minimums, shopping days, and whether you need to be an AARP member to qualify.

Readers, tell us about the best discounts you’ve found lately.

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