This story originally appeared on The Penny Hoarder. Buying a home is a visceral experience. Every house you walk into or click through online brings visions: future meals cooked in the kitchen, friends in the living room, kids playing in the backyard. These feelings are so strong that they can easily cloud your judgment when it’s time to put in an offer. So how should you view your first home…
Making a last will and testament is an important part of your estate plan and there are different types of wills to choose from. A nuncupative will, meaning a will thatâs oral rather than written, may be an option in certain circumstances. While state will laws typically require that a will be written, signed and witnessed to be considered legal, there are scenarios in which an oral will could be upheld as valid. Understanding how a nuncupative will works, as well as the pros and cons, can help with shaping your will-making plans if you have yet to create one.
A financial professional can offer advice on investing, retirement planning, financial planning and various other areas of finance. Find a financial advisor today.
Nuncupative Will, Defined
A nuncupative will simply means a will that isnât written. Instead, itâs delivered verbally by the person who intends to make the will.
Nuncupative wills are sometimes called deathbed wills since theyâre often created in end-of-life situations where a person is too ill or injured to physically draft a will. The person making the will, known as a testator, expresses wishes about the distribution of property and other assets to witnesses.
How Does an Oral Will Work?
Ordinarily, when creating a will youâd draft a written document identifying yourself as the will maker and spelling out how you want your assets to be distributed after you pass away. You could also use a will to name legal guardians for minor children if necessary and name an executor for your estate.
An oral will sidesteps all that and simply involves the person making the will expressing his or her wishes verbally to witnesses. There would be no written document unless one of the witnesses or someone else who is present chooses to copy down whatâs being said. The person making the will would have nothing to sign and neither would the witnesses.
Thereâs a reason oral wills are no longer used in most states: Without a written document thatâs been signed by the person making the will and properly witnessed, it can be very difficult to prove the will makerâs intentions about how assets should be distributed or who should be beneficiaries.
Are Nuncupative Wills Valid?
This type of will is no longer considered valid in most states. Instead, youâll need to draft a written will that follows your stateâs will-making guidelines. For example, most states require that the person making a will be at least 18 and of sound mind. The will also has to be witnessed by the required number of people who donât have a direct interest in the willâs contents. Depending on where you live, you may or may not need to have your will notarized.
There are a handful of states that still allow oral or verbal wills, however. But theyâre only considered valid under certain circumstances.
In North Carolina, for example, oral wills are only recognized if:
The person making the will believes death is imminent
The witnesses are asked to testify to the will
Both witnesses are present with the testator when the will is dictated
The testator states that what he or she is saying is intended to be a will
An oral statement is made to at least two competent witnesses
The testator then passes away
Even if those conditions are met, the heirs to the will would still have to bring a legal action to have it admitted to probate court. The witnesses would have to testify to what was said and even then, North Carolina still doesnât allow for the transfer of real estate through an oral will.
In New York, the guidelines are even narrower. New York State only allows nuncupative wills to be recognized as legal and valid when made by a member of the armed services during a time of war or armed conflict. The intentions of the person making the will has to be stated in front of two witnesses. State law automatically invalidates them one year after the person leaves military service if they donât pass away at the time the will was made.
How to Prepare a Will
Having a written will in place can help your loved ones avoid problematic scenarios about how to divide your property after you pass away. If you donât have a will in place yet, you risk dying intestate. There are a couple of ways you can create one.
The first is using an online will-making software. These programs can guide you through the will-making process and theyâre designed to be easy enough for anyone to use, even if youâre not an attorney. If you have a fairly simple estate then using an online will-making software could help you create a will at a reasonable cost.
On the other hand, if you have a more complex estate then you may want to get help with making a will from an estate planning attorney. An attorney can help ensure that your will is valid and that youâre distributing assets the way you want to without running into any legal snags.
Generally, when making a will you should be prepared to:
Name an executor for your estate
Name a guardian for children if necessary
Specify who or which organizations you want to inherit your assets
When making a will, itâs important to remember that some assets canât be included. For example, if you have any assets that already have a named beneficiary, such as a 401(k), individual retirement account or life insurance policy, those would go to the person youâve named.
And itâs also important to note that a will is just one part of the estate planning puzzle. If you have a more complex estate then you may also need to consider setting up a living trust. A trust allows you to transfer assets to the control of a trustee, who manages them on behalf of the trustâs beneficiaries. Trusts can be useful for minimizing estate taxes and creating a legacy of giving or wealth if thatâs part of your financial plan.
The Bottom Line
Nuncupative wills are rare and while some states do recognize them, they generally arenât valid in most circumstances. If you donât have a will in place, then creating one is something you may want to add to your financial to-do list. Even if you donât have a large estate or youâre unmarried with no children, having a will can still provide some reassurance about what will happen to your assets once you pass away.
Tips for Estate Planning
Consider talking to a financial advisor about will making and estate planning. If you donât have a financial advisor yet, finding one doesnât have to be complicated. SmartAssetâs financial advisor matching tool can help. By answering a few brief questions online you can get personalized recommendations for professional advisors in your local area. If youâre ready, get started now.
Along with a will and trust, there are other legal documents you might incorporate into your estate plan. An advance healthcare directive, for instance, can be used to spell out your wishes in case you become incapacitated. Power of attorney documents allow you to name someone who can make medical or financial decisions on your behalf when youâre unable to.
Theyâre certainly not as romantic to discuss as your dream house or your honeymoon, but prenups and postnups can be a financial lifesaver in the event your marriage does come to an end.
Both prenups and postnups are about figuring out who gets what if you and your spouse get divorced.
But these two types of agreements have some important distinctions, and circumstances may make one better suited to your relationship than the other.
Here are some key things it can be helpful to understand about prenups vs. postnups, plus how to decide if you and your significant other might benefit from getting one.
What is a Prenup?
Short for âprenuptial agreement,â a prenup is a legally binding document set up before a couple gets married â hence the âpreâ suffix.
These contracts typically list each partyâs assets, including property and wealth, as well as any debts either soon-to-be-spouse might carry.
It then details how these assets will be divided in case the marriage comes to an end, either through a divorce or the death of a spouse.
Who Needs a Prenup?
Prenups may also be known as “antenuptial agreements” or “premarital agreements,â but the bottom line is, theyâre contracts drafted before vows are made.
Couples who are getting married for the first time and are bringing little to no assets into the marriage may not need to bother with drawing up a prenup.
However, a prenup can be particularly useful if one spouse is coming into the marriage with children from a previous partnership, or if one partner has a large inheritance or a significant estate, or is expecting to receive a large inheritance or distribution from a family trust.
debt the other spouse brought into the marriage.
What is a Postnup?
A postnup, or postnuptial agreement, is almost identical to a prenup â except that itâs drafted after a marriage has been established.
They may not be as well known as prenups, but postnups have grown increasingly common in recent years, with nearly all 50 U.S. states now allowing them.
A postup may be created soon after the wedding, if the couple meant to do so but simply didnât get around to it before the big day, or well afterwards, especially if some significant financial change has taken place in the family.
Either way, a postnup, much like a prenup, does the job of outlining exactly how assets will be allocated if the partnership comes to an end.
Who Needs a Postnup?
Along with being drafted whole cloth, a postnup can be used to amend an existing prenuptial agreement if there have been big changes that mean the initial contract is now outdated.
And although itâs not fun to think about, if a couple feels theyâll soon be facing divorce, a postnup can help simplify one important part of the process before the rest of the legal proceedings take place.
A postnup, like a prenup, can help separate out assets that would otherwise be considered shared, âmarital property,â which can be important if one partner obtains an inheritance, trust, piece of real estate, or other possession they want to maintain full ownership over.
Postnups can also be part of a renewed effort for a couple to commit to a marriage that may be facing some obstacles and challenges.
Prenup vs. Postnup: Which is Right for Your Relationship?
While it may be a difficult conversation to face with your fiance or spouse, creating a prenup or postnup can be an important step to help you avoid both headache and heartache later on.
If you donât make a pre- or post-nup, your stateâs laws determine who owns the assets that you acquire in your marriage, as well as what happens to that property in the event of divorce or death. State law may also determine what happens to some of the assets you owned before marriage.
While almost any couple can benefit from a frank discussion of who gets what in the worst-case scenario, here are the situations in which you might specifically want to consider a prenup vs. postnup.
• If one or both partners have existing children from a previous partnership, to whom they want to lay out specific inheritances in case of death.
• If one partner has a larger estate or net worth (i.e., if one spouse is significantly wealthier than the other).
• If one or both partners want to protect earnings made and possessions acquired during the marriage from âshared ownership.â
• If you intended to create a prenup but ran out of time or otherwise didnât do so before the wedding.
• If significant financial changes have made it necessary to change an existing prenup or draft a new postnup.
• If divorce is looking likely or inevitable, and the couple wishes to streamline the process of dividing marital assets before undergoing the rest of the process.
In all cases, prenuptial and postnuptial agreements can help simplify the division of assets in the case of either death or divorceâand in either of those extremely emotionally charged scenarios, every little bit of simplification can help.
However, prenups are sometimes considered more straightforward, since theyâre made before assets are combined to become marital property.
Prenups may be more likely to be enforceable than postnups should one partner attempt to dispute it after a divorce.
How to Get a Prenup or Postnup
For a prenup or postnup agreement to be considered valid by judge, it must be clear, legally sound and fair.
Couples looking to save money may be able to use a template to create a prenup or postnup themselves.
It may still be a good idea, however, for each partner to at least have separate attorneys review the document before either one signs.
If your estate is more complex, you may want to consider hiring an attorney to draft the agreement.
Either way, having an attorney review the document will help protect your interests and also help ensure that a judge will deem the agreement is valid.
Reducing the Odds Youâll Ever Need to Use that Prenup or Postnup
While creating a prenup or postnup can be a smart move for even the most hopeful and romantic of couples, the ideal scenario is a happily-ever-after that leaves those contracts to gather dust.
Fighting about money is one of the top causes of strife among couples, and one of the main reasons married couples land in divorce court.
retirement account, can help partners feel empowered and able to focus on other important relationship goals.
Financial transparency, starting before and/or early in marriage, can also help mitigate marital tension over money.
To achieve more transparency, some couples may want to consider opening up a joint bank account, either after they tie the knot or before if they are living together and sharing household expenses.
While there are pros and cons to having a shared account, merging at least some of your money can help make it easier to track spending and stick to a household budget, while also fostering openness and teamwork.
For couples whoâd rather not share every penny (or explain every purchase), having two separate accounts along with one joint account can be a good solution that helps keep money from becoming a source of tension in a marriage.
Prenuptial and postnuptial agreements are both legal documents that address what will happen to marital assets if a married couple divorces or one of them dies.
A prenup is drafted before marriage, while a postnup can be drafted soon after or many years into marriage.
Both agreements can make divorce or the death of a partner significantly less traumatic.
These agreements can be particularly useful if one spouse has children from a previous marriage, has significant assets, and/or expects to receive a large inheritance or distribution from a family trust during the marriage.
It can be helpful to use an attorney to draw up or look over one of these agreements to make sure itâs legally sound.
For couples who are ready to integrate their finances, SoFi MoneyÂ® makes it easy to create a joint account that gives couples shared access to their money.
Prefer to keep some (or all) of your finances separate? The SoFi Money app makes splitting bills and expenses easy by allowing you to send money directly from the app. If your partner is also a member of SoFi Money, he or she will get the money instantly.
Learn more about SoFi Money today.
SoFi MoneyÂ® SoFi Money is a cash management account, which is a brokerage product, offered by SoFi Securities LLC, member FINRA / SIPC . Neither SoFi nor its affiliates is a bank. SoFi has partnered with Allpoint to provide consumers with ATM access at any of the 55,000+ ATMs within the Allpoint network. Consumers will not be charged a fee when using an in-network ATM, however, third party fees incurred when using out-of-network ATMs are not subject to reimbursement. SoFiâs ATM policies are subject to change at our discretion at any time. Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
The post Prenup vs Postnup: What is the Difference? appeared first on SoFi.
With so many of us dealing with the coronavirus pandemic (plus the financial fallout from it) and spending more time at home this year, thereâs a very good chance your family budget looks different. Our own budget had some big adjustments (transportation costs went down to basically nothing) along with some minor changes (buying supplies and items around the house for projects).
Our money dates have had us reevaluate some things and redirect money to other expenses and savings. Besides making sure that youâre taking care of essential expenses and building up your financial cushion, you want to want to make sure you include another key area in your budget – some guilt-free spending in there as well.
Why Budgets Need to Include Some Guilt-Free Spending
First off what exactly is guilt-free spending? And why should families include it when planning out their budget. Basically, it covers the expenses that you enjoy. Every family has different ways they use that money. It could be travel, eating out together, adding another pair of shoes to your collection, or gadgets. With families having to deal with so many decisions and challenges, there has been an increasing awareness of having proper self-care as part of the routine. Families are now including that in their budgets.
The key part of keeping these expenses guilt-free is that they bring you joy without breaking the bank. These arenât frivolous spending sprees. They can be meaningful purchases such as supplies for a hobby like painting that enriches your life. Second, these expenses are planned ahead of time and baked into your budget so youâre not taking on debt or upsetting your familyâs cash flow.
Why Budgets Typically Fail
One of the reasons why I think having some fun money in your budget is a wise move is because itâll help make your budget more sustainable. How? If I asked you what the point of a budget is, what would you say? Most tell me itâs to keep their spending in check.
It makes sense to believe that because for most families thatâs what itâs about – restrictions. However, the best budgets Iâve seen are geared towards the direction of the money. Iâve interviewed families who have retired early or have knocked out a ton of debt and something they had in common was that their budgets reflected their priorities and circumstances.
Before they put pen to paper (or tap the app), they sat down and defined what goals they wanted to achieve. If you had to break down a budget the three key areas are basically:
Paying your essential bills.
Building long term financial stability.
Have the money you can use now to enjoy.
Many times, the disagreements, arguments, and sometimes sabotage with budgets come from friction on finding a balance between spending money with long term stability and enjoying now. If you skew too much to saving up for the future, one or more of you in the family could start getting resentful. Financial infidelity or set back with keeping the budget can occur for many reasons, but some spouses say one reason is thereâs absolutely no wiggle room in the budget for fun. If youâre only focused on the now when something comes up – hello 2020! – youâre left without a safety net.
For families with kids, thatâs an additional source of stress they donât need.Â I noticed that the families who hit their goals had found a way to balance things. They save towards their long term goals as well as set aside money to enjoy now. How? By redoing how they approached their budgets.
Easy Budget Framework to Use
Letâs go back to those three key goals of any budget – taking care of essentials, saving for the future, and spending on the present. Families looking to include all of these goals need a budget that can weave them together. If youâre just starting out with a budget and are still trying to figure out a framework, an easy foundational budget is the 50/20/30 budget. It divides up your money into those three key goals, with 50% going to necessary expenses, 20% towards financial stability and wealth, and 30% towards discretionary or fun money.
Feel free to adjust the percentages based on your circumstances, but for many families that three-bucket approach is easy enough to set up and it gives them enough wiggle room where there can enjoy some of their money now. Once youâve created that budget, you can then take the next step – automating your money. Weâve done this for over a decade and it has been incredibly helpful. We have our bills automated every paycheck plus our savings and investments are scheduled monthly. With those necessary things taken care of first, we know whatever spending we do wonât harm our expenses.
Staying on Top of Your and Budget – The Easy Way
Now that you have a budget and youâre including some guilt-free spending, how do you make sure youâre staying on track? There are some wonderful options out there including money apps like Mint. You can stay on top of your money without losing your mind because the apps can pull that data from your accounts and give you an easy and clear way to see where your money is going. You can also use Mint to track your goals like paying down debt or saving up for a house. With that information in front of you can quickly and easily see how youâre doing anytime.
Another handy tool with Mint is how simple it is to set up alerts on certain spending. So if you have set aside $200 for your âfunâ account, Mint can notify you when your spending is getting close to your limit. Itâs a more proactive and real-time way to manage your money without having to worry about every single penny.
Your Take on Budgets
As you can see, with a little planning you can be financially savvy and enjoy some fun now. Iâd love to get your thoughts – how do you approach your budget? What are some must-have expenses in yours?
The post How to Include Some Guilt-Free Spending in Your Budget appeared first on MintLife Blog.
Shelter Insurance is a mutual insurance company that was founded in 1946 and operates out of Columbia, Missouri. This highly-rated, award-winning insurance company offers a wealth of insurance products across the states of Colorado, Iowa, Arkansas, Kansas, Kentucky, Indiana, Illinois, Mississippi, Missouri, Nebraska, Ohio, Nevada, Oklahoma, Tennessee, and Louisiana.
In this Shelter Insurance review, we’ll look at insurance policies, coverage options, customer satisfaction, liability cover, and more, before seeing how Shelter compares to other leading insurance companies.
Shelter Car Insurance Coverage Options
Shelter is a leading auto insurance company in Missouri and other serviced states. It isn’t always the cheapest (more on that below) but it does provide a wealth of coverage options, including:
Liability coverage is the most basic, bare-bones insurance type and one that is required in most states. Liability insurance covers bodily insurance (per person and per accident) and property damage. It essentially covers you for the damage you do to another driver and their property during a car accident.
An optional form of auto insurance that covers you for damage done to your own vehicle, regardless of who was at fault. If you have collision coverage on your auto policy, you will get a payout when you hit a guardrail, wall, tree or building.
However, it’s one of the most expensive add-ons and a lot of the damage you do to your own vehicle may not be severe enough to warrant paying the deductible.
With comprehensive coverage, you will be covered for many of the things that collision insurance doesn’t cover. For instance, it provides protection against vandalism and damage from extreme weather events. It also covers you in the event of an animal collision, which is surprisingly not covered by collision insurance.
Personal Injury Protection
With PIP insurance, you will be covered for some of the personal losses you incur due to an injury sustained in a car accident. For instance, if you’re hit by another driver and suffer severe injuries that cause you to miss work, PIP will pay for the money you lose. It will also cover the money needed to cover traveling for doctor and hospital appointments, as well as childcare costs.
By adding medical payments cover onto your policy you will be protected against hefty medical bills resulting from a car accident. This option is required in just a few states but the coverage limits are often set very low.
Underinsured and Uninsured Motorist Coverage
Uninsured motorists are a growing problem on America’s roads. If you’re hit by one of these drivers and don’t have collision insurance, you could be left severely out of pocket. But not if you have underinsured/uninsured motorist insurance.
This coverage option will protect you against bodily injury and property damage resulting from an accident with an uninsured or underinsured driver.
Shelter car insurance policies offer optional roadside assistance cover, which gives you up to $100 per claim and covers you for expenses accrued when you are stranded by the roadside.
Roadside assistance is an emergency service designed to help you get back on the road or to tow your car to a nearby garage. It includes everything from lost key replacement to fuel delivery and tire changes.
Rental Car Reimbursement
If your car is stolen or damaged so badly that it needs to spend several days or weeks in a repair shop, rental car reimbursement can help you to stay on the road. It will cover you for the money you spend on rental cars, which means you won’t miss a single important car journey.
Your coverage will be limited to a specific time period and you will not be covered for rentals that extend beyond this period.
A form of life insurance that covers you for accidental deaths, such as car accidents. If you die in an accident, for example, your spouse or family members will receive a payout. There are many more restrictions than you get with term life insurance policies, but the premiums are also much lower.
Disability Income Coverage
PIP can cover you if you suffer serious bodily injuries and miss work as a result, but what happens if you’re forced to miss up to a year of work? That’s where Disability Income Coverage comes in. With Shelter, you will be paid a sum of money every week for up to a year.
If you bought your car on finance and wreck it soon after, the insurance payout may not be enough to cover the losses due to the interest payments and the rapid deprecation that new cars experience. With GAP insurance, you will be covered for that extra amount. As a result, this type of car insurance is often required by auto loan companies.
New Car Replacement
If you have a car that is less than a year old and has fewer than 15,000 miles on the clock, you can apply for the new car replacement program, which gives you a like-for-like replacement. This is an essential addition for anyone driving an expensive new vehicle as the losses could be catastrophic without it.
Other Shelter Insurance Options
Shelter offers multiple additional insurance options, many of which can be bought along with your car insurance, allowing you to save money with a multi-policy discount.
As with Shelter car insurance, we recommend comparing rates to other insurance companies, making sure you’re getting the best coverage for the lowest rates. There are a huge number of insurance companies in the United States offering the same coverage options found at Shelter, and many of them are cheaper:
A homeowners policy from Shelter will protect your property and everything in it. You can get cover for the dwelling, personal property, medical payments, personal liability, living expenses, and more.
Shelter also offers additional coverage options pertaining to electronics, sewer damage, earthquake damage, loss of farming equipment, and more.
If you rent your home, you won’t need property insurance, but you still need to protect your personal property and that’s where renter’s insurance comes. If your flat/house is burgled and you lose expensive items, including heirlooms, jewelry, artwork, and electronics, you will be covered.
With a minimum liability of $1 million, umbrella insurance will step in and provide cover above and beyond what you are offered elsewhere. If you have a lot of personal assets and are worried about being sued above what your liability insurance can pay, this is the policy for you.
A business insurance policy from Shelter will protect your business against property loss, equipment damage, liability claims, and more. This is essential for all businesses and at Shelter you can choose a range of customization options to make sure the policy is perfectly suited to your needs.
Your home insurance policy doesn’t cover you for flood damage and this is true whether you’re with Shelter or not. However, you can add flood insurance to your Shelter insurance policy, with the rates dependent on where you live and how common floods are in your area.
In addition to accidental death cover, Shelter also has term life and whole life insurance policies. These provide payouts to your loved ones in the event of your death.
Your age, activity, medical history, and health will dictate the size of your insurance premiums and your death benefit.
Shelter Car Insurance Cost
We ran some car insurance quotes and found that Shelter was consistently more expensive than providers like GEICO, Allstate, State Farm, and Progressive. In fact, when comparing quotes for young drivers, Shelter car insurance premiums were more than double those offered by GEICO and were also substantially higher than other major carriers.
In many states, including Kentucky and Louisiana, Shelter ranked as one of the most expensive providers. The rates were a little more promising in Missouri, but you’ll probably still get better offers elsewhere.
Regardless of what you think about Shelter Insurance and whether or not you have had good experiences with them in the past, we recommend getting quotes from other providers first.
Of course, it isn’t all about price, but it takes some incredibly impressive customer support and benefits for a $3,000 policy to take precedent over one that costs $1,500 or less, and we’re not convinced Shelter has that level of support or those benefits.
Bottom Line: Shelter Insurance Review
Shelter is a dedicated, capable, and financially strong insurance provider that offers extensive coverage for both drivers and homeowners. It has good reviews from policyholders, has high ratings from AM Best, JD Power and the Better Business Bureau (BBB), and there are very few complaints when compared to other providers.
Shelter serves a number of states and if you reside in one of these, it’s worth getting a quote. Just don’t forget to check other providers and don’t assume Shelter will offer the best rates. In our experience, it’s more likely to be one of the most expensive providers in your state, but you won’t know until you check.
Visit www.ShelterInsurance.com to learn more and to discuss an auto policy and/or home insurance policy with one of their representatives.
Shelter Insurance Review: Car, Home, and More is a post from Pocket Your Dollars.
We are a month and a half into quarantine and date nights in many households have devolved into, âWhat have we not seen on Netflix yet?âÂ While we are all ready to get back out and about, there are plenty of fun date night at home options to help you enjoy and appreciate your partner.Â This post is partially inspired by the fact that we are celebrating our wedding anniversary tonight and I was already doing so research on what to do this weekend.Â I figured if I was already doing the work, I might as well share the wealth with you all!Â Â
Check out a few of our best date night in ideas
Name that Tune
This really is a fun activity that we typically do on road trips, but it works just as well for date night.Â Play each other your favorite songs from different eras or events in life.Â Â
What song was popular when you went to your first school dance?Â Did you ever learn a choreographed dance to a song?Â What was it?Â What was your first favorite country/hip hop/punk song?Â Did you ever dedicate a song to someone on the radio? Make a mixtape?Â First breakup/heartbreak song you listened to 100 times?
Music is such an integral part of our memories.Â It is sure to bring out some great stories from your partner that you have never heard before and some great stories from your past that you may have completely forgotten about. All you really need is a Spotify account, your beverage of choice!
This is an amusing challenge for the nose and tastebuds.Â Taste three (or five–no judgment here) wines and figure out which is which based solely on the tasting notesâ¦.you know the âhints of pencil lead and cranberry.âÂ This can be made romantic with dim lights and some candles or you can make this more upbeat with some fun background playlists.
Optional additions to make the night more festive: Cheeses, nuts, olives, crackers, honey
Minute to Win It
Impress each other with feats of strength and balance.Â This is an evening bound to be full of laughter.Â Check out this video for inspiration! Challenges include…
Face the Cookie.
Movin’ On Up.
Junk in the Trunk.
Suck It Up.
Ping Pong Bounce.
Sweets for Sweethearts
Bake together…even if neither of you is an expert in the kitchen, learning something new together is good for relationships!
Here are some recipes that have videos to go along with them
For easy cooking try these 3 Ingredient Desserts
For all those ripe bananas on your counter
For when you can only be trusted with the microwave
It sounds silly, but this really can be a learning experience. If youâve been together you may think you know all the answers…but remember peopleâs tastes and preferences change.Â Do you really know that sweet tarts are still his favorite candy? Or is Paris still her number one destination? The answers could surprise you!
Yes! This is actually possible via Netflix Party. Â Pick a movie ahead of time, grab the popcorn and candy and chat with your favorite duo.Â Â
Take a trip down memory lane
Look at each otherâs pictures from your favorite vacation together.Â Youâll be surprised to see the vacation through their eyes and their memories.Â You can relive the best times together and appreciate it in a whole new way.Â Bring in even more sensory memories by adding a favorite food or drink you discovered during that trip.
Or Take a Virtual Trip
Ever wonder what Venice is like during lockdown?
Join Travel Curious on their next tour with your Venetian born guide, Luca, who will take you on a live virtual walking tour of Venice and will end up in the Venetian mask-maker artisan shop.Â
Join for free on their Instagram Live feed on May 15 2020 at 15:00pm BST / 10:00am EST
I no longer have any retirement savings because I cashed it all out to pay my debt. We also sold our home and moved into an apartment just as the pandemic was hitting. With the sale of our house, the fact that my husband is working overtime, and the stimulus money, we've saved nearly $10,000 and should have more by the end of the year. My primary question is, what should we do with it?
Right now, I have our extra money in a low-interest bank savings [account], and I'm considering moving it to a high-yield savings [account] as our emergency fund. Is that a good idea? For additional money we save, I intend to use it as a down payment on a new house. However, should I be investing in Roth IRAs instead? What is the best option?
Thanks Megan and Bianca for your questions. I'll answer them and give you a three-step plan to prioritize your extra money and make your finances more secure. No matter if you're a good saver or you get a cash windfall from a tax refund, an inheritance, or the sale of a home, extra money should never be squandered.
What to do with extra cash
Maybe you're like Magen and have extra cash that could be working harder for you, but you're not sure what to do with it. You may even be paralyzed and do nothing because you have a deep-seated fear of making a big mistake with your cash.
In some cases, having your money sit idle is precisely the right financial move. But it depends on whether or not you've accomplished three fundamental financial goals, which we'll cover.
To know the right way to manage extra cash, you need to step back and take a holistic view of your entire financial life.
To know the right way to manage extra cash, you need to step back and take a holistic view of your entire financial life. Consider what you're doing right and where you're vulnerable.
Try using a three-pronged approach that I call the PIP plan, which stands for:
Prepare for the unexpected
Invest for the future
Pay off high-interest debt
Let's examine each one to understand how to use the PIP (prepare, invest, and pay off) approach for your situation.
How to prepare for the unexpected
The first fundamental goal you should have is to prepare for the unexpected. As you know, life is full of surprises. Some of them bring happiness, but there's an infinite number of devastating events that could hurt you financially.
In an instant, you could get fired from your job, experience a natural disaster, get a severe illness, or lose a spouse. If 2020 has taught us anything, it's that we have to be as mentally, physically, and financially prepared as possible for what may be around the corner.
While no amount of money can reverse a tragedy, having safety nets can protect your finances. That makes coping with a tragedy easier.
Getting equipped for the unexpected is an ongoing challenge. Your approach should change over time because it depends on your income, debt, number of dependents, and breadwinners in a family.
While no amount of money can reverse a tragedy, having safety nets—such as an emergency fund and various types of insurance—can protect your finances. That makes coping with a tragedy easier.
Everyone should accumulate an emergency fund equal to at least three to six months' worth of their living expenses. For instance, if you spend $3,000 a month on essentials—such as housing, utilities, food, and debt payments—make a goal to keep at least $9,000 in an FDIC-insured bank savings account.
While keeping that much in savings may sound boring, the goal for an emergency fund is safety, not growth. The idea is to have immediate access to your cash when you need it. That's why I don't recommend investing your emergency money unless you have more than a six-month reserve.
The goal for an emergency fund is safety, not growth.
If you don't have enough saved, aim to bridge the gap over a reasonable period. For instance, you could save one half of your target over two years or one third over three years. You can put your goal on autopilot by creating an automatic monthly transfer from your checking into your savings account.
Megan mentioned using high-yield savings, which can be a good option because it pays a bit more interest for large balances. However, the higher rate typically comes with limitations, such as applying only to a threshold balance, so be sure to understand the account terms.
Insurance protects your finances
Another critical aspect of preparing for the unexpected is having enough of the right kinds of insurance. Here are some policies you may need:
Auto insurance if you drive your own or someone else's vehicle
Homeowners insurance, which is typically required when you have a mortgage
Renters insurance if you rent a home or apartment
Health insurance, which pays a portion of your medical bills
Disability insurance replaces a percentage of income if you get sick or injured and can no longer work
Life insurance if you have dependents or debt co-signers who would suffer financial hardship if you died
RELATED: How to Create Foolproof Safety Nets
How to invest for your future
Once you get as prepared as possible for the unexpected by building an emergency fund and getting the right kinds of insurance, the next goal I mentioned is investing for retirement. That’s the “I” in PIP, right behind prepare for the unexpected.
Investments can go down in value—you should never invest money you can’t live without.
While many people use the terms saving and investing interchangeably, they’re not the same. Let’s clarify the difference between investing and saving so you can think strategically about them:
Saving is for the money you expect to spend within the next few years and don’t want to risk losing it. In other words, you save money that you want to keep 100% safe because you know you’ll need it or because you could need it. While it won’t earn much interest, you’ll be able to tap it in an instant.
Investing is for the money you expect to spend in the future, such as in five or more years. Purchasing an investment means you’re exposing money to some amount of risk to make it grow. Investments can go down in value; therefore, you should never invest money you can’t live without.
In general, I recommend that you invest through a qualified retirement account, such as a workplace plan or an IRA, which come with tax benefits to boost your growth. My recommendation is to contribute no less than 10% to 15% of your pre-tax income for retirement.
Magen mentioned Roth IRAs, and it may be a good option for her to rebuild her retirement savings. For 2020, you can contribute up to $6,000, or $7,000 if you’re over age 50, to a traditional or a Roth IRA. You typically must have income to qualify for an IRA. However, if you’re married and file taxes jointly, a non-working spouse can max out an IRA based on household income.
For workplace retirement plans, such as a 401(k), you can contribute up to $19,500, or $26,000 if you’re over 50 for 2020. Some employers match a certain percent of contributions, which turbocharges your account. That’s why it’s wise to invest enough to max out any free retirement matching at work. If your employer kicks in matching funds, you can exceed the annual contribution limits that I mentioned.
RELATED: A 5-Point Checklist for How to Invest Money Wisely
How to pay off high-interest debt
Once you're working on the first two parts of my PIP plan by preparing for the unexpected and investing for the future, you're in a perfect position also to pay off high-interest debt, the final "P."
Always tackle your high-interest debts before any other debts because they cost you the most. They usually include credit cards, car loans, personal loans, and payday loans with double-digit interest rates. Remember that when you pay off a credit card that charges 18%, that's just like earning 18% on an investment after taxes—pretty impressive!
Remember that when you pay off a credit card that charges 18%, that's just like earning 18% on an investment after taxes—pretty impressive!
Typical low-interest loans include student loans, mortgages, and home equity lines of credit. These types of debt also come with tax breaks for some of the interest you pay, making them cost even less. So, don't even think about paying them down before implementing your PIP plan.
Getting back to Bianca's situation, she didn't mention having emergency savings or regularly investing for retirement. I recommend using her upcoming cash windfall to set these up before paying off a low-rate student loan.
Let's say Bianca sets aside enough for her emergency fund, purchases any missing insurance, and still has cash left over. She could use some or all of it to pay down her auto loan. Since the auto loan probably has a higher interest rate than her student loan and doesn't come with any tax advantages, it's wise to pay it down first.
Once you've put your PIP plan into motion, you can work on other goals, such as saving for a house, vacation, college, or any other dream you have.
Questions to ask when you have extra money
Here are five questions to ask yourself when you have a cash windfall or accumulate savings and aren’t sure what to do with it.
1. Do I have emergency savings?
Having some emergency money is critical for a healthy financial life because no one can predict the future. You might have a considerable unexpected expense or lose income.
Without emergency money to fall back on, you're living on the edge, financially speaking. So never turn down the opportunity to build a cash reserve before spending money on anything else.
2. Do I contribute to a retirement account at work?
Getting a windfall could be the ticket to getting started with a retirement plan or increasing contributions. It's wise to invest at least 10% to 15% of your gross income for retirement.
Investing in a workplace retirement plan is an excellent way to set aside small amounts of money regularly. You'll build wealth for the future, cut your taxes, and maybe even get some employer matching.
3. Do I have an IRA?
Don't have a job with a retirement plan? Not a problem. If you (or a spouse when you file taxes jointly) have some amount of earned income, you can contribute to a traditional or a Roth IRA. Even if you contribute to a retirement plan at work, you can still max out an IRA in the same year—which is a great way to use a cash windfall.
4. Do I have high-interest debt?
If you have expensive debt, such as credit cards or payday loans, paying them down is the next best way to spend extra money. Take the opportunity to use a windfall to get rid of high-interest debt and stay out of debt in the future.
5. Do I have other financial goals?
After you’ve built up your emergency fund, have money flowing into tax-advantaged retirement accounts, and are whittling down high-interest debt, start thinking about other financial goals. Do you want to buy a house? Go to graduate school? Send your kids to college?
How to manage a cash windfall
Review your financial situation at least once a year to make sure you’re still on track.
When it comes to managing extra money, always consider the big picture of your financial life and choose strategies that follow my PIP plan in order: prepare for the unexpected, invest for the future, and pay off high-interest debt.
Review your situation at least once a year to make sure you’re still on track. As your life changes, you may need more or less emergency money or insurance coverage.
When your income increases, take the opportunity to bump up your retirement contribution—even increasing it one percent per year can make a huge difference.
And here's another important quick and dirty tip: when you make more money, don't let your cost of living increase as well. If you earn more but maintain or even decrease your expenses, you'll be able to reach your financial goals faster.
I love making things automatic. Whether it is bill-paying, direct deposit, prescription renewals, or investing, making things automatic makes life easier, and that is where our Betterment investing review comes in.
When it comes to retirement planning, an overwhelming number of online tools and websites promise to help you create a dynamic and profitable portfolio while minimizing fees.
This growing list of services includes robo-advisors, a class of financial websites that offer to manage your portfolio with minimal in-person interaction and a heavy reliance on the latest investing tools and software.
One of the most popular robo-advisors by far is Betterment. Conceptualized by its founders in 2008, Betterment has since grown to help its customers invest billions of dollars of their hard-earned dollars. This is an investment platform that puts your investing on cruise control, and even allows you to make money watching TV! You can open an account with no money at all, and get the benefit of professional, low-cost investment management that enables you to invest in thousands of securities with as little as a few hundred dollars.
It hasnât been easy. With other competitors like Wealthfront and Personal Capital always a few steps behind them, Betterment has struggled to find a way to stand out. Even with the competition, Betterment has emerged as one of the top online brokerage accounts and continues to grow its market share.
Open an account
0.25% to 0.40% annual management fee, depending on the plan
No trade, transfer or rebalancing fees
No minimum balance
Hands-off investing tailored to your goals and risk preference
Betterment is an online, automated investment manager that uses advanced algorithms and software to find the perfect investment strategy for your portfolio and individual needs.
The main difference between investing your money with a traditional financial advisor and Betterment is that there is minimal human interaction. Unless you email or call in, your communication with an individual advisor will be very minimal.
But, there is some good news to counteract the lack of individual service. Because of lower operating costs, Betterment is able to charge lower fees than traditional financial advisors. This can be huge for individuals who want to take a hands-off approach to their retirement accounts, yet donât want to pay top dollar for access to a top-tier financial advisor in their area.
Using complex investment software, Betterment allocates your investment portfolio based on your individual circumstances, investment time horizon, and thirst for risk.
In the meantime, they keep fees at a minimum by using ETFs (exchange-traded fund) that let you have a diversified portfolio, like mutual funds, but are tradeable much like stocks.
Since ETFs come with very low expense ratios, Betterment is able to pass those savings along to the consumer. Although the program already manages over $16 billion for their clients, they are still growing at a rapid pace.
Because the service is able and willing to deal with investors at all stages of wealth accumulation, it has become a go-to for both experienced and novice investors with various investing goals.
Further, Bettermentâs portfolio strategy isnât geared just for retirement savings; the service can also improve your returns on dollars you invest for short-term and medium-term goals like saving for college, taking an annual vacation, or building up a cash reserve.
How Betterment Works
Like post other robo-advisors, Betterment provides complete, automated investment management of your portfolio. When you sign up for the service, youâll complete a questionnaire that will determine your risk tolerance, investment goals, and time horizon. From that information, Betterment determines your portfolio will be designed as conservatives, aggressive, or some level in between.
Over time however, Betterment may adjust your portfolio to become gradually more conservative. For example, as you move closer to retirement, your asset allocation will be gradually shifted more heavily in favor of safe investments, like bonds.
Your portfolio will be constructed of exchange traded funds (ETFs), which are low-cost investment funds designed to track the performance of an underlying index. In this way, Betterment attempts to match the performance of the underlying indexes, rather than to outperform them. For this reason, investing with Betterment â and most other robo-advisors â is considered to be passive investing. (Active investing involves frequent trading of stocks and other securities in an attempt to outperform the market.)
Betterment also uses allocations based on broad investment categories. There are three in total:
Safety Net â These are funds allocated for near-term needs, such as an emergency fund.
Retirement â This will naturally be your long-term investment account and held in tax-sheltered IRAs.
General Investing â This allocation is dedicated to intermediate goals, maybe saving for the down payment on a house or even for your childrenâs education.
Given that each of the three broad goals has a different time horizon, the specific portfolio allocation in each will be a little bit different. For example, the Safety Net will be invested in cash type accounts for safety and liquidity.
Betterment Advantages And Disadvantages
Thereâs no minimum investment required.
The low annual fee of 0.25% on the Digital plan can allow you to have a $20,000 account managed for just $50 per year, or a $100,000 account for just $250.
Tax-loss harvesting is available at all taxable accounts.
Betterment Premium provides unlimited access to certified financial planners, providing a service similar to traditional investment advisors, but at a fraction of the cost.
The No-fee Checking and Cash Reserve give you cash management options to go with your investing activities.
Betterment offers several portfolio options, including Smart Beta, Socially Responsible Investing, and the BlackRock Targeted Income Portfolio.
The use of value funds also adds the potential for your investment accounts to outperform the general market, since value stocks tend to be underpriced relative to their competitors.
Flexible Portfolio will give you some control over your investment allocations, which is a feature absent from most robo-advisors.
Bettermentâs annual advisory fee is on the low end of the robo-advisor range. But there are some robo-advisors charging no fees at all.
Betterment doesnât offer alternative investments. These include natural resources and real estate, which are offered by some of their competitors.
External account syncing is available only with Betterment Premium.
The Betterment Investment Methodology
Like most other robo-advisors, Betterment manages your investment account using Modern Portfolio Theory, or MPT. The theory emphasizes proper allocations into various asset classes over individual security selection.
Your portfolio is divided between six stock asset allocations and eight bond asset allocations. Each allocation is represented by a single ETF thatâs tied to an index specific to that asset class. The single ETF will provide exposure to scores or even hundreds of securities in each asset class. That means collectively your investment will be spread across thousands of securities in the US and internationally.
The six stock asset allocations are as follows:
US Total Stock Market
US Value Stocks â Large Cap
US Value Stocks â Mid Cap
US Value Stocks â Small Cap
International Developed Market Stocks
International Emerging Markets Stocks
The eight bond asset allocations are as follows:
US High Quality Bonds
US Municipal Bonds (will be held in taxable investment accounts only)
US Inflation-Protected Bonds
US High-Yield Corporate Bonds
US Short-Term Treasury Bonds
US Short-Term Investment Grade Bonds
International Developed Market Bonds
International Emerging Markets Bonds
Since Betterment offers tax-loss harvesting with taxable investment accounts, most asset classes will have two or three very similar ETFs. This will enable Betterment to sell a losing position in one ETF to reduce capital gains in winning asset classes. Alternative ETFs are then purchased to replace the sold funds to maintain the target asset allocations in your account.
Tax-loss harvesting is becoming an increasingly popular investment strategy because it effectively defers capital gains taxes into future years. Itâs available only for taxable accounts, since tax-sheltered accounts have no immediate tax consequences.
How Betterment Compares
Here’s how Betterment compares to the previously mentioned companies, Wealthfront and Personal Capital.
Minimum Initial Investment
0.25% on Digital; 0.40% on Premium (account balance over $100k)
0.25% on all account balances
0.89% on most account balances; reduced fee on balances > $1 million
On Premium Plan only
Yes, on all taxable accounts
Yes, on all taxable accounts
Yes, on all taxable accounts
Yes, on Premium Plan only
Betterment Accounts and Options
For the first few years of Bettermentâs existence they offered a single investment account serving as a one-size-fits-all plan. But thatâs all changed. They still offer basic investment accounts, but they now give you a choice of multiple investment options.
This is Bettermentâs basic investment plan. There is no minimum initial investment required, nor is there a minimum ongoing balance requirement. Betterment charges a single fee of 0.25% on all account balances.
You can also add any other portfolio variations, except the Goldman Sachs Smart Beta portfolio, which has a $100,000 minimum account balance requirement.
Betterment Premium works similar to the Digital plan, but it delivers a higher level of service. The plan provides external account synching, giving Betterment a high altitude view of you your entire financial situation. External investment accounts can help in enabling Betterment to better coordinate your portfolio allocations with assets held in outside accounts. They can also make recommendations out to better manage those external accounts.
And perhaps the biggest advantage of the Premium plan is that it comes with unlimited access to Bettermentâs certified financial planners. In this way, Betterment is competing more directly with traditional investment advisors, but doing it with a robo-advisor component.
Youâll need a minimum of $100,000 to invest in the Premium plan, and the annual advisory fee is 0.40%. Thatâs just a fraction of the usual 1% to 2% typically charged by traditional investment advisory services.
Betterment Cash Reserve
The account pays a variable interest rate, currently set at 0.40% APY. Betterment doesnât actually hold these funds directly, but rather invest them through participating program banks.
Thereâs no fee for this account, and you can move money as often as you want. And for those with very high cash balances, the account is FDIC insured for up to $1 million through the program banks.
Betterment Socially Responsible Investing (SRI)
SRI portfolios are becoming increasingly popular in the robo-advisor space. It involves investing in companies that meet certain standards for social, environmental, and governance guidelines. Betterment indicates that the ETFs they use in their SRI portfolio have produced a 42% increase in their social responsibility scores.
SRI portfolios work with both the Digital and Premium plans, using a similar investment methodology. But they make certain modifications, holding ETFs based on SRI in place of the ETFs used in non-SRI portfolios.
SRI portfolios do not require a minimum balance and charge no additional fees. And like their Digital and Premium plans, taxable SRI investment accounts take advantage of tax-loss harvesting.
Betterment Flexible Portfolios
The key word in the name is âflexibleâ because the main feature is adding personal options to your portfolio allocations.
This is done by adjusting the individual asset class weights in your portfolio. For example, if you have a 7% allocation in emerging markets, you may choose to increase it to 10% if you believe that sector is likely to outperform others. But you can also decrease the allocation if it makes you feel uncomfortable.
Betterment Tax-Coordinated Portfolio
This is less of a formal portfolio and more of an investment strategy. It must be used in combination with a taxable investment account and a tax-sheltered retirement account. Betterment will then allocate investments based on their tax impact.
For example, income generating assets â that produce high dividend and interest income â are held in a tax-sheltered account. Investments likely to generate long-term capital gains are held in a taxable investment account, since you will be able to take advantage of lower long-term capital gains tax rates.
Goldman Sachs Smart Beta
This option is for more sophisticated investors, and requires a minimum account balance of $100,000. And since it is a high risk/high reward type of investing, it also requires a higher risk tolerance.
Betterment uses the same basic investment strategy as they do in other portfolios. But itâs an actively managed portfolio that will be adjusted in an attempt to outperform the general market. Securities will be bought and sold within the portfolio and can include either individual securities or Smart Beta ETFs.
The portfolio has many variations, including a wide range of allocations. Stocks are chosen based on four qualities: good value, strong momentum, high quality, and low volatility.
And like other portfolio variations Betterment offers, there is no additional fee for this option.
BlackRock Target Income Portfolio
Betterment recognizes that some investors are more interested in income than growth. This will particularly apply to retirees. The BlackRock Target Income Portfolio invests in portfolios based on your risk tolerance. This can mean low, moderate, high, or even aggressive.
Those categories may seem unusual for an income generating portfolio. But while the portfolio attempts to minimize risk of principal, it also recognizes that some investors are willing to add risk to their portfolio in exchange for higher returns.
A low-risk portfolio may have a higher allocation in US Treasury securities. An aggressive portfolio may center primarily on high-yield corporate bonds or even emerging-market bonds that have higher interest rates due to greater risk.
Betterment No-fee Checking
Provided by Betterment Financial LLC in partnership with NBKC Bank, this is a true no-fee checking account. Not only are there no monthly maintenance fees, but there are also no overdraft or other fees. Theyâll even reimburse all ATM fees and foreign transaction fees you incur. And thereâs not even a minimum balance requirement.
Youâll be provided with a Betterment Visa Debit Card with tap-to-pay technology, that you can use anywhere Visa is accepted. All account balances are FDIC insured for up to $250,000. And as you might expect from a company on the technological cutting edge, you can deposit checks into the account using your smartphone.
Check out our full Betterment checking review.
Betterment Key Features
Minimum initial investment: Betterment requires no funds to open an account. But you can begin funding your account with monthly deposits, like $100 per month. This method will make it easier to use dollar-cost averaging to gradually move into your portfolio positions.
Available account types: Joint and individual taxable investment accounts, as well as traditional, Roth, rollover and SEP IRAs. Betterment can also accommodate trusts and nonprofit accounts.
Portfolio rebalancing: Comes with all account types. Your portfolio will be rebalanced when your asset allocations significantly depart from their targets.
Automatic dividend reinvestment: Betterment will reinvest dividends received in your portfolio according to your target asset allocations.
Betterment Mobile App: You can access your Betterment account on your smartphone. The app is available for both iOS and Android devices.
Customer contact: Available by phone and email, Monday through Friday, from 9:00 am to 8:00 pm, Eastern time.
Account protection: All Betterment accounts are protected by SIPC insurance for up to $500,000 in cash and securities, including up to $250,000 in cash. SIPC covers losses due to broker failure, not those caused by market value declines.
Financial Advice packages: Betterment offers one-hour phone conferences with live financial advisors on various personal financial topics. Five topics are covered:
Getting Started package: This package gives new users the professional vote of confidence they need as a professional will assess their account setup. $199
Financial Checkup package: This package takes it a step further, providing the customer with a professional opinion on their portfolio and financial circumstances. $299
College Planning package: As its name implies, this package helps parents who are investing with the goal of paying for their childrenâs college education in the next 5-18 years. $299
Marriage Planning package: Merging finances can be tricky, so Betterment created this plan to help engaged couples and newlyweds to succeed as they unite their lives and assets. $299
Retirement Planning package: Your investment goals and strategies change as you near retirement. This particular package helps keep you on target to meet them. $299
Retirement Savings Calculator: Robo-advisors are popular choices for retirement accounts. For this reason, Betterment offers the Calculator to help you project your retirement needs. By entering basic information in the calculator (it will sync external accounts if you have a Premium account â including employer-sponsored retirement plans) it will let you know if you are on track to meet your goals or if you need to make adjustments.
How To Sign Up For A Betterment Account
The Betterment sign up process is one of the most user-friendly out there for any brokerage. It comes with easy-to-follow instructions and as streamlined registration process which users can navigate through in a matter of minutes.
First get the process started by clicking the button below.
Sign up for a Betterment Account
After the initial sign up process, users can expect a simple transaction as they transfer funds into the account, much like moving money from a checking to savings account.
When you begin the sign-up process, youâll be given a choice of four different investment goals:
I chose âInvest for retirementâ. It will ask your current age, your annual income, then give you a choice of accounts to use. That includes a traditional, Roth, or SEP IRA, or even an individual taxable account. I selected a traditional IRA.
Based on a 30-year-old with a $100,000 income, Betterment return the following recommendation:
You even have the option to have the specific asset allocations listed. After clicking âContinueâ, youâll be asked to provide your email address and create a password. Youâll then be taken to the application, which will ask for general information, including your name, address, phone number, and how you heard about Betterment.
Once your account has been set up, you can fund it immediately, by connecting your bank account, or by setting up recurring deposits.
You can also set up other accounts, such as âManage spending with Checkingâ or âInvest for a long-term goalâ.
Why You Should Open An Account With Betterment
While nearly anyone who invests could benefit from the online portfolio management and advising, this service is definitely geared to certain types of investors. In most cases, Betterment will work best for:
Hands-off investors who have some investing knowledge â Since it takes care of the heavy lifting for you, it works best for investors who want to take a hands-off approach to their investment portfolio. Passive investors can let Betterment handle the logistics while using online account management to keep a close eye on their accounts.
Novice investors who need help â Beginning investors who are just learning the ropes can turn to Betterment for online portfolio management with low fees. The many online tools and user-friendly interface make it easy for beginners to get a grasp on basic financial concepts and investing strategies.
Robo-advisors are growing in popularity and could easily replace in-person advisors in the near future. With lower fees and advanced software that can maximize results, online investing is certainly gaining an edge.
Whether Betterment is right for you depends on your individual needs and investing goals. If youâre a hands-off investor who wants to grow your retirement funds without paying a lot of fees, then Betterment might be ideal. Additionally, beginning investors can benefit handsomely from the online tools and investing education offered through the Betterment website.
If you think Betterment investing might be exactly what your portfolio needs, sign up for a new account today.
However, if you determine that you would be better served by a more hands-on approach, check out the other online brokerage account options. Being a certified financial planner, I have had a chance to work with several of these platforms and have done the following reviews:
Motif Investing Review
Lending Club Review
Ally Invest Review
The post Betterment Investing Review: Make Investing Automatic appeared first on Good Financial CentsÂ®.
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