Personal Capital vs. Mint – Which is the Best Financial Software?

Personal Capital and Mint are two of the most prominent financial services platforms. They offer a free service that gives users powerful money management or investment tools to help manage their spending, investing, and more.

These two services are frequently compared. But while there are overlapping similarities between the two, each has a different primary function. For example, while Personal Capital is primarily an investment management platform, Mint.com is a budgeting application.

Because these two programs offer many robust features, I find them viable alternatives to Quicken, one of the original money management apps. In my opinion, Quicken has been surpassed by these and other software apps.

Personal Capital vs. Mint.com – what are the similarities? What are the differences? Let’s compare the two.

What Personal Capital Does

As noted above, Personal Capital is primarily an investment management service. Over 1.4 million people use the service to track more than $350 billion in assets.

They offer two services, the free version, and a premium wealth management service. Both versions offer you the various tools and features on the platform, but the premium version provides active investment management, similar to that of robo-advisors.

There is no obligation to sign up for the Personal Capital Wealth Management service.

So you can sign up for a free Personal Capital account and use their online suite of tools as long as you wish.

Here are the services that Personal Capital provides:

Budgeting & Cash Flow Management

Personal Capital does offer a budgeting function, but when compared to that offered by Mint, it’s extremely limited. For example, Personal Capital lets you track your cash flow and provide insights into your spending habits.

It can also allow you to view and analyze the transactions in your budget and provide monthly summaries. This can help you know exactly where your money goes each month.

You do this by linking your various bank accounts and credit cards to the Personal Capital app. They provide a Cash Flow Analyzer tool that enables you to establish a budget by tracking your income and expenses from all accounts and sources.

This will also help you to pay your bills on time and to track your spending. The money management app will alert you to upcoming bills, however, there is no bill-paying function on the platform.

You can also use the Cash Flow Analyzer to establish long-term goals, like retirement planning or getting out of debt.

The budgeting function is available for both the free and the premium versions.

Investment Management

This service is only available on the premium version, and it’s what Personal Capital does best.

Where Personal Capital differs from typical robo-advisors is that not only do they manage the investments that you include in the service, but they also act as a financial account aggregator.

That means that in managing specific investment accounts, Personal Capital also considers other investments it does not manage, such as an employer-sponsored retirement plan.

This gives you more comprehensive investment management than you typically see in automated investment management platforms.

The investment management service requires a minimum of $25,000 under management. When you sign up for the service, they start by determining your risk tolerance, your investment goals, and your personal preferences.

From that, they design an investment portfolio based on Modern Portfolio Theory (MPT), which is typical of robo-advisor services.

The portfolio will be allocated between US stocks and bonds, international stocks and bonds, and commodities. The positions are maintained through index funds, but if your portfolio exceeds $100,000, they will also include individual stocks.

Tax-loss harvesting (TLH). Personal Capital offers this with the premium investment management service. TLH is an investment strategy involving selling losing investments to offset gains on the sale of winning positions.

The strategy keeps short-term capital gains to a minimum, which minimizes your tax liability.

They also include tax allocation with the investment service. This is the process of having various assets in the most tax-advantaged account.

For example, assets that produce interest and dividend income are likely in tax-sheltered retirement plans. Capital gains generating assets are likely in taxable accounts, where they can take advantage of lower long-term capital gains tax rates.

Private Client Group. This is the investment service offered for individuals who invest a minimum of $1 million on the platform.

It provides a progressively lower fee structure, with fees declining as your portfolio grows (see below). Private Client Group provides personalized investment services and wealth planning, including direct access to a certified financial planner.

Personal Capital also provides certain investment services under the free version.

Investment Checkup. This is a personal analysis of your financial situation, including an assessment of the risks and opportunities available. You enter all of your financial accounts onto the platform, and then they are evaluated.

Personal Capital will suggest changes in those accounts to create an optimal allocation. (Or make changes directly in any accounts they manage under the premium service.) You are also assigned a personal advisor you can contact anytime.

Retirement Planner. This will help you determine whether you have enough money saved for retirement. It lets you assess spending goals, income events, and projected future portfolio value.

It also enables you to create “what if” scenarios, in which you plug in different variables to determine the outcome of various strategies.

Here is more information on the Personal Capital Retirement Planner tool.

401(k) Analyzer. This tool analyzes your 401(k) plan to determine which investment options within your plan have the lowest fees. It also makes allocation suggestions, though it cannot implement those changes as it does not manage employer plans.

Personal Capital Dashboard:

Personal Capital has one of the most valuable dashboards among financial apps. When you log in to your Personal Capital account, your dashboard will display the following:

• Net Worth
• Account Balances and Transactions
• Cash Flow
• Spending by Account, Category
• Portfolio Balances
• Income Reports
• Portfolio Allocations
• Key Holdings
• Investment Returns
• Top Gainers and Losers
• Projected Investment Fees
• Spending Reports and Upcoming Bills

While this may seem like a lot of information, and it is, it is not overwhelming. The information is easy to view and understand, giving you a quick overview of your finances without searching through the data to make sense of your financial health and current progress.

Even more detailed information is available with a few clicks of the mouse, giving you access to a wealth of information you can use for financial planning.

What Mint.com Does

Mint was purchased by Intuit, the creator of Quicken and TurboTax (Intuit has since sold Quicken to a private equity firm). Mint is an online personal budgeting platform that essentially brings your entire financial existence into one application.

You link your checking and savings accounts, investments, retirement accounts, credit cards, and even your PayPal account to the application. You can then view your entire financial situation on one platform.

It is one of the most popular budgeting apps available.

Budgeting

This is what Mint is most known for and what it does best. Since they have all your account information assembled in one place – is that information presented as “read only.”

That means that while you can access the information, Mint has no control over any of the included accounts.

The platform categorizes all of your financial activity from the various accounts. They have both default categories and the ability to customize them in a way that will work best for you.

Mint can categorize and summarize your activity with all your financial information on the platform.

You can create a budget that will enable you to measure your activity against your predetermined spending targets. Mint can even compare your spending in each budget category with national averages.

The platform will also provide alerts to inform you when bills are due or when you might be in danger of going over credit limits on a credit card or credit line. You can schedule bill payments in advance to ensure you’re never late.

Mint Goals. This tool will help you to create goals in your financial profile. For example, you can establish goals such as getting out of debt or saving money for specific purposes. Once the goals are established, the tool will track your progress.

One of the tools that Mint is best known for is its ability to analyze financial offers. For example, Mint can tell you where to get the highest interest rates on savings or the lowest rates on credit cards.

They can also tell you where you will find the lowest investment fees or where the best insurance and IRA rollover deals are.

Credit Monitoring

This is a service that Mint provides that Personal Capital doesn’t. Not only will Mint provide you with your free credit score, but they will also give you suggestions on improving that score.

The service will also provide credit monitoring alerts if any accounts show suspicious activity. It will also let you know anytime Equifax receives new credit information from the various lenders you deal with.

One of the most attractive aspects of the Mint credit monitoring service is that they don’t require you to provide credit card information to access the service. It’s truly free, and you don’t need to provide any kind of payment information.

Limited Investment Management

Mint is very limited when it comes to investments. The platform does not offer an investment management service comparable to that of Personal Capital.

Mint allows you to track your investment accounts and summarize them on the app. No investment advice is provided, nor are there any investment tools that Personal Capital offers.

However, there is one investment service that they do provide, and that’s fee analysis. The app can highlight fees that may be hidden on investment statements.

This can include advisory fees, transaction fees, and 401(k) fees. But in truth, this service alone is insufficient to justify the use of Mint in managing your investments. It’s just not what Mint is about.

Fees – Personal Capital vs. Mint.com

It’s important to make sure you are comparing apples to apples when considering fees. Mint.com is free to use, and Personal Capital offers two levels of service: one is completely free to use, and the other charges an investment management fee based on the total assets under management.

Mint doesn’t offer a comparable investment management service, so comparing fees is a comparison between apples and oranges.

Instead, you need to consider the total value the apps and services offer.

Mint.com Fees – Mint provides their budget app free of charge.

Personal Capital Fees – Personal Capital has both a free version (online and mobile) and a paid version – the Wealth Management service.

Here is the fee structure for the Personal Capital Wealth Management service:

• 0.89% of the first $1 million under management
• 0.79% of the next $2 million (up to $3 million)
• 0.69% of the next $2 million (up to $5 million)
• 0.59% of the next $5 million (up to $10 million)
• 0.49% on balances over $10 million

Personal Capital’s fee structure is a good bit higher than what you will pay for other automated investment management platforms – a.k.a., robo-advisors. But at the same time, the fee is all-inclusive. They do not charge additional fees, like commissions and other investment fees.

In addition, Personal Capital will aggregate investment accounts that are not included in the wealth management service. For example, Personal Capital will include your 401(k) plan assets in their portfolio allocations, but they will not charge a fee for this service.

The fee structure applies only to the service’s existing assets under management.

How Personal Capital and Mint Make Money

Personal Capital makes money from those users who decide to use their wealth management services. This is why they require your mobile number as part of the signup process because they will call you to offer paid services.

As part of this, they will offer to run a free analysis of your investment portfolio and how they believe their services can help you. You don’t have to accept this free analysis or use them to manage your investments.

Mint relies on advertising to make money. You’ll get targeted offers for bank accounts, credit cards, and investment accounts integrated into the user invoice.

Mint vs. Personal Capital – The Better Choice Is…

Actually both! Mint is a very strong budget application. If you’re looking primarily for budgeting software, you can’t go wrong with it.

And the fact that the service is completely free means that you should at least give it a try.

Personal Capital also features a robust budgeting tool, so PC makes a great choice for those who want to track their household budget, while also managing investments, tracking net worth, and handling other financial tasks.

If investment management is your primary objective, then Personal Capital is the obvious choice.

You can also get free many investment services on this platform. The asset allocation tool is incredibly valuable for DIY investors and is included in the free online version of Personal Capital.

Should you opt for a more hands-off investing approach, you can opt into Personal capital’s Wealth Management service and let Personal Capital manage your investments. Their platform makes it easy to allow them to manage everything.

You can turn over a portion of your portfolio, make investment decisions based on your risk tolerance and inputs, and consider other investment accounts, such as your 401k.

Verdict: Depending on your needs, you can use Mint.com, Personal Capital, or both apps. There’s no real conflict here since each provides its own specialization.

Visit these sites for more information or to sign up for a free account:

• Sign up for Mint.com
• Sign up for Personal Capital

You can also read our Personal Capital Review for more detailed information about Personal Capital.

The post Personal Capital vs. Mint – Which is the Best Financial Software? appeared first on Cash Money Life | Personal Finance, Investing, & Career.

source https://cashmoneylife.com/personal-capital-vs-mint/

Best Homeowners Insurance Companies in 2022

Your homeowner’s insurance policy has a big job… to protect your biggest investment in a world prone to unpredictable perils like wind storms, wildfires, lightning strikes, and many other threats.

You want a plan that will rise to the challenge if something unexpected threatens your home’s value.

When all is calm, the same plan should stay in the background and not require any thought.

How you build your homeowners policy will help determine how it performs, but you’ll also want to partner with an insurance company you can trust.

What Factors Affect Homeowners Insurance Rates?

Home insurance costs will vary depending on several factors, such as:

• Where you live
• Your personal claims history
• How much coverage you choose
• The cost of rebuilding your home
• What building materials were used to build your home, such as wood, stone, stucco, and brick
• How close you are to a fire department
• How close you are to a water source
• The claims history in your area due to variables such as natural disasters and crime rates
• Your credit, if your state allows this as a pricing factor

Best Homeowner’s Insurance Companies in 2022

Whether you’re changing insurers or shopping for home insurance plans for the first time, knowing how home insurance works can lead you to the plan you need.

We’ll explore those details below. First, let’s look at some of the leading home insurance providers.

This list won’t include every reputable and solid insurance provider in the country, but all six carriers should provide a good place to start when shopping for coverage.

Select your state to get started

Travelers

The Travelers Company has over 16 decades of service under its iconic umbrella. The company has a national presence along with great rates and a strong reputation.

A national presence matters with homeowners insurance because a regional company can get overwhelmed when a huge national disaster like a hurricane hits their area. A national company has more diversity and can more easily weather storms.

You may not find as many discounts with Travelers compared with other companies. Still, the carrier has competitive rates and superior ratings from independent rating agencies such as A.M. Best and Moody’s.

The Better Business Bureau also gives The Travelers Co. high marks for customer service.

Liberty Mutual

Your ability to customize a homeowners insurance policy to meet your home’s specific needs can help you save money.

Liberty Mutual specializes in customizing policies which could explain why about 7 percent of the nation’s homeowners have Liberty Mutual insurance.

This size brings stability, which shows in Liberty Mutual’s excellent grades from the independent rating agencies.

The company does occasionally get knocked for its approach to customer service. The Better Business Bureau rates Liberty Mutual A-minus.

You can get policy discounts for staying claims-free, having multiple policies with Liberty Mutual, and keeping a higher deductible. Many homeowners prefer higher deductibles to save on premiums and to reduce the likelihood of filing an unnecessary claim.

Farmers

Farmers Insurance specializes in property protection. The company ranks well with consumer groups and insurance rating experts.

The company has a large market share nationally, yet it maintains a low percentage of customer complaints. This is an impressive accomplishment, especially considering the company’s stable financial situation.

Ordinarily, we wouldn’t include a company that doesn’t underwrite its own policies, but Farmers seems to have established a seamless partnership with its underwriter, Zurich Insurance.

You can get discounts for at-home safety features, buying a new home, or going with new construction.

Amica

Amica Insurance would rank higher on this list if customer satisfaction were the only factor. The company excels at customer care.

Many of the company’s market growth over the past few decades seems to result from positive word-of-mouth reviews.

The company excels at providing coverage across the board. Still, customers can also find coverage for items such as furs, jewelry, and fine art, which can be hard to insure because of their hard-to-define value.

You can get discounts for enrolling in autopay, bundling policies, and improving the safety and security of your home.

Nationwide Insurance

Nationwide Insurance Co. is a recognized leader in the broader insurance market.

With Nationwide, you’ll find solid financial stability and a wide variety of customizable options for your coverage which can help save money on premiums.

From a customer service perspective, Nationwide could use some improvement, but it still rates A+ with the Better Business Bureau because it tends to seek resolutions to customer complaints.

Nationwide also offers scheduled personal property coverage, strengthening your policy’s ability to cover high-value items in your home.

Erie

You could call Erie Insurance Co. our dark horse candidate on this list. It has an excellent financial footing, which separates it from its competitors.

Erie’s property/casualty companies are rated A+ (Superior) by A.M. Best, a global credit rating agency with a unique focus on the insurance industry.

Unfortunately, it doesn’t offer the best options for discounts. But the company excels at customer service, which can be difficult for an insurance company.

We also like the company’s ability to stretch coverage options to include identity theft recovery, home business protection, and coverage for your underground utility lines.

Erie is more likely than most companies to help with flood damage.

Other Excellent Choices

The following companies also offer a strong financial foundation and excellent coverage options.

• All State
• American Family Insurance
• Progressive
• State Farm
• USAA

Best Homeowners Insurance Aggregators

As the Internet grows more intertwined with our shopping habits, more and more home insurance shoppers are turning to aggregators to connect them with insurance policies.

Here are a couple of our favorites:

• QuoteWizard: If you have specific needs for your homeowner’s policy, QuoteWizard can help you narrow your search list. And you won’t have to include every detail of your life and property to use the service.
• SelectQuote: This service works much like QuoteWizard, except it focuses on finding cost savings for your coverage. SelectQuote helps you compare policy discounts and other features, making it easier to find lower premiums.

If you use one or another service to find insurance, remember that your policy will come from an insurance company and not the aggregator.

It’s up to you to ensure the insurance company you choose has a solid financial footing, making it more likely to be there when you need to file a claim, even if you go decades without needing a claim.

Building Your Coverage From the Ground Up

Your ability to save on premiums and your policy’s ability to protect your investment depends a lot on how you build your insurance plan.

Like car insurance, homeowners insurance includes several components:

• Dwelling Coverage: Your insurer will call your house a dwelling. This aspect of your coverage protects your home from perils such as storms, fires, and vandalism. The amount of dwelling coverage you buy can also help determine how many of the other coverage types you have.
• Additional Buildings Coverage: Your detached structures — garages, gazebos, and even smaller structures like mailboxes and fences — will be protected by this part of your homeowner’s policy. This coverage tends to max out as a percentage of your dwelling coverage.
• Personal property: Items you can remove from your home, such as electronics, collectibles, and even small appliances that aren’t built-in, get covered by your personal property coverage. If someone broke into your home and stole your personal property, you’d file a claim on this coverage.
• Liability: Like auto insurance, an injury caused by some aspect of your home can mean you’re liable for the injured person’s medical expenses and even lost wages. Your liability protection will cover your responsibility if something like this happens at your home.
• Additional Expenses: Your homeowner’s policy can provide alternative living expenses if a storm or fire makes your home uninhabitable. It can also include health insurance if you’d like to compensate someone after an injury on your property. (This differs from being ordered by a judge to pay, which is when liability coverage kicks in.) These coverages will be optional in many policies.
• Other coverage types: Depending on your circumstances, you can add flood insurance, earthquake insurance, water, sump overflow, and home systems breakdown coverage.

How you build each of these components can determine your policy’s ability to protect your home.

For example, if you have a large workshop full of expensive tools on your property, you may need to increase your coverage for additional buildings and personal property.

If you like to host dinner parties or if you have a swimming pool, you may want more robust liability coverage.

Your homeowner’s policy should match your home to save money on premiums and have enough coverage to protect your investment.

Deductibles and Caps Add to Your Cost

We tend to measure a homeowners policy’s cost by its premiums, which average about $1,200 a year. Your deductible and spending caps will also help determine your cost for coverage.

Deductibles

Many homeowner’s insurance companies on our list above will give you a discount for keeping a higher deductible.

Even if your insurer doesn’t state this discount, you can expect to save on annual costs with a higher deductible. Generally speaking, higher deductibles create lower premiums because higher deductibles mean paying more out of pocket to unlock your policy’s coverage.

If you have a $5,000 deductible, you’d need to spend $5,000 out of pocket to repair your home before your insurance policy would help pay.

Raising deductibles will usually lead to direct savings on premiums, but don’t overuse this tool. If your deductible is too high, you may not be able to use your coverage when you need it.

For instance, if you couldn’t come up with $5,000 to spend on repairs after a tree fell through your master bedroom, consider setting a more reasonable deductible and accepting the higher premiums.

Higher deductibles have another advantage some homeowners like: They make it less likely you’ll file a claim which can lead to a nice claims-free discount on future years’ policies.

Spending Caps

Most policies will limit how much money they’ll spend on repairing or replacing your home. A policy with a lower spending cap can lead to savings on premiums.

But if your insurance policy isn’t big enough to replace the value you’ve lost, should you even have the policy, to begin with?

Yes, some protection is better than no protection, but with something as valuable as your home, being able to replace your investment entirely will be a must.

Fortunately, home insurance is a sound financial investment: Americans can leverage about $200,000 in protection if needed in exchange for paying about $1,200 a year on average.

That’s about $100 a month, less than many people pay for cable TV.

Determining How Much Coverage You Need

To estimate the coverage you need, take a home inventory which is a detailed account of your personal property inside and outside your home.

You’ll also need to calculate the cost of rebuilding your home after a disaster. Ask a real estate agent or other building industry professional for building costs in your area.

Also, determine if you need additional coverage for earthquakes, floods, or a high-risk item, like a swimming pool.

Some insurance companies may require a home inspection to confirm the condition of your home and ensure you have adequate coverage. The insurance company will send an inspector to your home if a home inspection is required.

Some inspections don’t require you to be present because an inspector only will focus on the exterior of your home, including the roof, and any potential hazards in your yard that could cause damage to your home in the case of a severe storm.

Other companies may require interior inspections focusing on the condition of your home’s electrical systems, ventilation, fireplace, plumbing, heating, and air conditioning systems.

Potential Home Insurance Discounts

Here are some common types of discounts you may be eligible to receive:

• New or renovated home discount if you have upgraded wiring and plumbing.
• Safety and security discounts if you have smoke alarms, sprinklers, burglar alarms, and deadbolts on exterior doors.
• Roof age discount if you have a newer roof.
• Disaster preparedness discount if you have storm shutters and shatterproof glass if you live in a hurricane-prone area.
• Multi-policy discount when you buy auto, RV, and motorcycle insurance from the same provider.
• Multi-home discount.
• Claim-free discount when you don’t have a recent history of insurance claims.
• Insurance payment discounts for going paperless and paying your premium in full.
• Employment, organization, and association discounts based on your occupation or if you belong to a union, professional organization, or alumni association.

Other Policy Details

Some specific details within your policy will help determine exactly how an insurance policy pays when you need it:

• Named vs. Unnamed Peril: A named-peril policy covers your home in the event of a peril specifically named in your policy. An unnamed peril policy covers you in the event of any peril unless the policy explicitly excludes it. You can save money with a named peril policy.
• Replacement Value vs. Cash Value: This distinction may seem minor until you have to file a claim. Getting a replacement value policy means your insurance could replace damaged, destroyed, or stolen property with new stuff. A cash value policy means your policy will reimburse you the value of your lost property. The cash value of your stuff is typically less than the cost of a new property. Someone with rare collectibles will want to consider replacement value coverage which costs more.

Getting these details right when you buy your coverage can save you a lot of heartache and frustration if you need to file a claim.

You should also know that most home insurance companies do not cover flood damage.

You’ll need a special flood insurance policy if you live in a flood zone.

Bottom Line: The Right Coverage Can Pay Off

Homeowners insurance can help protect your home’s value in the event of a storm, natural disaster, or act of vandalism or theft.

You can help your policy do its job by ensuring your coverage fits your home.

Having the right coverage amount, the right deductible, and the right policy details will pay off if you have to file a claim.

And, of course, partnering with a leader in the home insurance business, like the ones we’ve listed above, can increase your sense of security even more.

You may have to spend a few extra hours researching coverage and comparing, but when your home is on the line, it’ll be time well spent.

The post Best Homeowners Insurance Companies in 2022 appeared first on Cash Money Life | Personal Finance, Investing, & Career.

source https://cashmoneylife.com/best-homeowners-insurance-companies/

How to Beat Inflation – 14 Strategies for Growing and Preserving Wealth

Inflation affects all of us; it erodes the value of your money. When prices go up, your purchasing power goes down.

Inflation can be even more of a problem when wages are stagnant. Many expect monetary policymakers to do something to slow the pace of inflation.

As inflation erodes your purchasing power, it becomes necessary to protect yourself. Some people preserve their capital with inflation-protected securities. Others look for stock market gains to help overcome inflation’s ravages.

It’s also possible to start a business, cultivate passive income, and buy items with a long shelf life at today’s prices to reduce their average costs.

Inflation has been quiet for a very long time. Other than periodic spikes in energy prices, inflation has been more a matter of speculation than reality.

Prices have generally tended to be predictable, which has benefited both consumers and businesses.

But there are some signs that inflation may be about to return. If it does, how should we prepare?

Why Higher Inflation May be on the Way – And What to Do About it

Since the early 1980s, central banks worldwide have been working to squeeze inflation out of the economy. Disinflation is the process of lowering the inflation rate, and since the policy was implemented, inflation has declined from double digits to single digits.

We could say mission accomplished! Unfortunately, economic prosperity is a dynamic, not a destination, and central bankers can rarely rest on past accomplishments.

One of the recent fears is that disinflation would eventually succumb to deflation, which is an entirely different and less holy outcome. Under deflation, wages, asset values, and general price levels decline. While that may seem like a positive development, it’s a recipe for an economic depression.

It was the driving force that launched the Great Depression in the 1930s. The problem with deflation is that it feeds on itself and turns ugly. That’s what central banks want to avoid.

There are indications that central banks may be about to reverse course and let a bit of inflation into the mix. Inflation, it’s thought in certain quarters, might remedy what ails a very sluggish economy.

Are we ready for the change?

Inflation and Your Income

This could play out one of two ways. If wage growth reacts quickly to higher inflation, consumers may be in a position to increase spending.

That will increase demand and hopefully begin creating new jobs too. On the other hand, if wages continue to run behind the price curve, higher prices could quickly overrun salary increases.

If that happens, the economy could slow even more.

We probably should expect the second scenario to play out. High unemployment leads to a doubtful starting point for higher wages.

Now would be an excellent time to cut living expenses in anticipation of higher inflation. In particular, we should be hesitant to take on any new expenses or financial entanglements, at least until we get a clear idea as to which way the wind is blowing.

Inflation and Your Debt

Inflation usually translates into higher interest rates. That makes a strong case for 1) locking in interest rates now while they’re still low and 2) converting variable rate debt to fixed-rate debt as soon as possible.

If inflation is coming, we should no longer bank on a continuation of the meager interest rates we’ve reliably had over the past few years.

Inflation and Your Mortgage

This may be your last chance to lock in the lowest mortgage rates in history. If you haven’t done so recently, the prospect of higher inflation should be a siren call to refinance your mortgage.

Throw the election in with the possibility of higher inflation, and we could be looking at substantially higher mortgage rates a year from now.

Inflation and Your Investments

Since higher inflation will mean higher interest rates, the impact on your investments could be substantial. Here is how inflation can impact some common investments:

Because interest-bearing investments compete with stocks, rising interest rates may not bode well for stocks. For example, resource stocks may benefit from higher inflation.

Fixed income assets. This is probably not a good time to commit your money to a five- or ten-year certificate of deposit or Treasury note. You’ll be tying up your capital at meager rates of return while higher returns will be coming available.

Money market funds and very short-term securities may not pay much interest, but they’ll keep your cash free to take advantage of higher rates later.

Commodities. Energy, in particular, tends to benefit from inflation, but other sectors may also present opportunities. Construction materials, precious metals, and rare industrial commodities may also benefit.

How to Beat Inflation

Over the long term, prices tend to go up — and the purchasing power of your dollar tends to go down. It’s the way with a fiat currency: Over time, your purchasing power will decline, and you’ll need more dollars to pay for the same product or service.

Just look at this historic inflation calculator for an example of how the dollar’s purchasing power has eroded over time. You need some core strategies to beat inflation and protect the purchasing power of your wealth.

If you are wondering how you can offset the inevitability of inflation, here are 14 strategies you might employ:

1. Treasury Inflation Protected Securities (TIPS)

This is one of the most straightforward — and possibly the safest — strategies for offsetting inflation. Treasury Inflation Protected Securities (TIPS) are special bonds periodically adjusted to keep pace with inflation. While you probably won’t earn a huge return, your money will be backed by the U.S. government, and your purchasing power will be preserved.

I-bonds are another inflation-protected Treasury investment that can help you beat inflation. However, it is important to realize that, like all bonds, the possibility of default is still there.

2. Index Funds

Given a long enough period, past performance indicates that the stock market does not lose. (Although there is a first time for everything, you are still at risk.)

Keep in mind that the markets rise and fall, so we are talking about long-term investments, not money you will need in a few months or years. Indeed, the overall stock market offers inflation-beating returns over the long haul.

However, individual stock-picking does not provide the same potential for success. You can take advantage of the power of the entire stock market with index funds and ETFs that follow the market.

Fees are low; if you wait long enough, the returns should help you outpace inflation.

3. Commodities

If you can stomach the volatility and the risk associated with investing in commodities, you might be able to stay ahead of inflation. People will always need commodities, so due to that demand, commodities are inflation sensitive.

Investing in them can put you ahead in the long run. You can limit some of your risk with the help of commodity ETFs.

4. Start a Business

You can keep up with inflation by adjusting your prices as necessary if you provide products and services. The downside is that customers may not be happy with your rising prices.

However, with slight adjustments when it comes time to renegotiate, creating a revenue stream that paces inflation should be possible. This can be a boon in a world where wages from “the man” are less likely to keep up with inflation.

With a little help from the Internet, you can gain the advantages of working from home while possibly staying ahead of inflation.

5. Lock in Higher Interest Rates on Cash Accounts

While this is not likely to happen anytime really soon, it is still worth keeping an eye out for higher interest rates. One of the key reasons for CD laddering is so that you can take advantage of higher rates when they come around.

Keep watch over the interest trends, and lock in higher interest rates on your cash when you can.

6. Lock in Lower Fixed Rates on Debt

If you have debt, now is the time to pay it down. You can reduce the effects of inflation later by getting fixed rates on mortgage and car loans.

With rates as low as they are, you might consider refinancing. And, while you are about it, now is a good time to pay down high-interest credit card debt while more of your payment goes to principal.

7. Invest in Good Businesses with Low Capital Needs

This is one of Warren Buffet’s strategies. He has long advocated investing in businesses that earn high returns on the capital invested in the industry.

During inflationary times, businesses with low capital needs that can maintain their earnings should fare better than those that are required to invest more money at higher prices just to maintain their position.

8. Avoid Traditional Bonds

With interest rates near historically low levels, bond investors could be hurt significantly in an inflationary environment.

You need to do better than purchasing a 10-year bond yielding 2%.

9. Avoid Gold and Cryptocurrencies. 

Invest in productive assets such as stocks or real estate that generate dividends and income for their owners.

Some investors consider cryptocurrencies the digital version of gold, but Warren Buffett is highly skeptical of these.

“Bitcoin has no unique value at all,” he told CNBC in 2019. “It doesn’t produce anything. You can stare at it all day, and no little Bitcoins come out or anything like that. It’s a delusion, basically.”

10. Reduce Your Expenses

This sounds like a no-brainer, but many people fight the notion of downsizing when things cost more.

You may be able to offset some of an inflationary increase in your expenses by taking a closer look at your bills and making hard choices by cutting what you don’t need. From there, try to reduce or negotiate the rest.

Everyday bills that could be cut or reduced include:

• Recurring subscriptions
• Phone
• Internet
• Car insurance
• Homeowners’ or renters’ insurance
• Food bill
• Energy bill

11. Make Tax-efficient Investments

Try to maximize tax efficiencies on all your investmentsby adopting different tax-efficient investing strategies. For example, put assets that lose a smaller percentage of their returns to taxes in taxable accounts or put assets that lose a higher percentage to taxes in tax-advantaged accounts.

12. Don’t Invest in Companies with High Labor Costs

During inflationary periods, companies that depend on their workforce (i.e., healthcare and retail) try to raise wages to retain and attract employees. Growing wages encourage even higher price increases, creating a spiraling inflation trend.

13. Research Past Inflation Trends

Those who forget the past are doomed to repeat it! Researching past high inflation trends can help you identify many current and future inflation patterns.

Pay attention to commodity stock performance, energy sector stability, and the performance of real estate and other alternative asset classes.

14. Reduce or Eliminate Your Variable-rate Debt

Credit cards and variable rate mortgages can cost you in inflationary periods. Paying it down, paying it off, or consolidating it into lower fixed-rate debt can lessen inflationary impacts.

The Federal Reserve has been raising interest rates and is likely to do so again, meaning the cost of variable-rate debt will continue to increase.

The post How to Beat Inflation – 14 Strategies for Growing and Preserving Wealth appeared first on Cash Money Life | Personal Finance, Investing, & Career.

source https://cashmoneylife.com/how-to-beat-inflation/

Best Free Online Checking Accounts – Top 15 List

Information about this product has been collected independently by the author. The issuer did not provide the details, nor is it responsible for their accuracy.

Checking accounts should be free, period. At least, that’s what I believe.

Unfortunately, many of the largest banks in the US have terminated their free checking programs and replaced them with “free checking if you meet the following criteria” programs, a far cry from the free checking programs many companies previously offered.

These “free” checking accounts often require customers to jump through hoops or maintain a minimum balance requirement, use direct deposit, or use bill pay. Some banks even require a combination of these services before they will give you a “free” checking account.

But they still get you on the back end in the form of ATM fees, overdraft fees, expensive checks, maintenance fees, and more often than not, hold your minimum balance hostage in a non-interest-bearing account. You deserve better than that. But don’t fear, we have great advice on different banks you can choose.

How to be a Top Online Checking Account

Are you using a free online checking account, or are you paying too much?

These “gotcha” fees were the driving force behind us creating this list of the best online checking accounts. Most consumers need a checking account that will perform well without hassles or fees.

It would also be nice to earn a little interest on your money. These are the main criteria used to create this list of the top internet checking accounts – FDIC insured, no monthly maintenance fees (or very easy to avoid fees), convenient features, wide ATM access, nationwide account access, and an interest-bearing checking account.

One more note – several of these banks aren’t the behemoths you might be familiar with. Mainly, these banks offer their services online, where costs are lower. This decreases costs to the consumer and allows banks to charge fewer fees.

Thanks to technology, banking is very different from it was a decade ago. Just about everyone is managing their banking needs online or through an app.

While being one of “the best online checking accounts” doesn’t REQUIRE a great smartphone app, it helps. Some people will never go to a physical bank branch, and that’s where a useful and easy-to-use app comes in.

How To Choose a Free Checking Account

No checking account is 100% free in today’s competitive banking environment. You will not have to pay for your most frequent and day-to-day transactions.

You’ll deal with conditions or hidden fees in most cases, so the best you can do is look for free checking accounts that are functionally free to the customer.

• No monthly maintenance fee. Some banks may offer a checking account that will waive the maintenance fee if you have your direct deposit going into this account.
• No or low minimum balance or monthly activity requirement to remain fee-free
• Low or no non-sufficient funds (NSF) fees or an overdraft protection option that is low or no cost
• Low or no fees for wire transfers, stop payments, debit card replacement, standard checks, returned items, or other similar services you are most likely to need or use.
• Added perks, such as a decent or better APY, cash back opportunities, excellent customer service, a well-regarded mobile app, or early access to your paychecks.

Conversely, avoid online banks that have fees you should try to avoid, such as:

• Overdraft and non-sufficient funds fees charged when you spend more than you have in your account. It’s not uncommon for banks to charge $35 per occurrence — and charge you for several occurrences per day in the event several charges come back before you can make a deposit.
• An inactivity fee charged when you stop using your account for an extended period, usually six months. Inactivity fees can run as much as $20 per month for some banks.

Added Perks to Look For

New-customer bonuses that reward you for opening an account. You’ll likely have to meet eligibility criteria, such as receiving a certain number of direct deposits into the account.

• Affinity group rewards waive fees or offer special accounts or benefits for students, seniors, and current and past armed forces members.
• No account limitations such as those that allow you to make transfers via a service like Zelle but limit how much you can transfer per day.
• You may earn relationship perks by opening multiple bank accounts or maintaining high balances. That may translate to better interest rates on your deposit accounts or rate discounts on mortgages and other loans.

Comparing the Top Online Checking Accounts in Each Category

1. Best Checking Sign Up Bonus – TD Beyond Checking Account
2. Best Checking Sign Up Bonus (Nationwide) – Chase Total Checking®
3. Best Checking Account for Military Members & Families – USAA
4. Best Checking Account for College Students – Chase College Checking
5. Best Rewards Checking Account – Discover Bank
6. Other Great Online Checking Account Options

Best Checking Sign Up Bonus – TD Beyond Checking Account – $300 Bonus

If a sign-up bonus for opening a new bank account gets your attention, then I’d recommend looking at the TD Beyond Checking account, which currently offers a $300 sign-up bonus for new customers who meet the eligibility criteria.

• New customers who apply online for a TD Beyond Checking account can earn a $300 cash bonus after receiving direct deposits of $2,500 or more within 60 days.
• To qualify for this offer, you must be a U.S. resident and apply for the offer online.
• Offer is available in these states: CT, DC, DE, FL, MD, ME, MA, NC, NH, NJ, NY, PA, RI, SC, VT, and VA.
• Get full details on the TD Bank website, our TD Bank Bonus Offer page, or our TD Bank Review.

There is also a $150 cash bonus for new TD Convenience CheckingSM account customers after receiving direct deposits of $500 or more within 60 days. The biggest downside is the limited geographic area of this offer.

You can read our TD Bank Review or visit the TD Bank website for more information.

Best Checking Sign Up Bonus (Nationwide) – Chase Total Checking® – $225 Bonus

If you don’t live in one of the states where TD Bank is available, check out Chase Bank for one of the most significant bonuses for opening a new checking account. Currently, Chase Bank is offering new customers a bonus of $225 when they open a Chase Total Checking® account and set up direct deposit within 90 days. Here are the details:

• New Chase checking customers enjoy a $225 bonus when you open a Chase Total Checking® account and set up direct deposit
• Access to 16,000 Chase ATMs and more than 4,700 branches
• Chase Mobile® app – Manage your accounts, deposit checks, transfer money, and more — all from your device.
• Open your account online now.
• Available online nationwide except in Alaska, Hawaii, and Puerto Rico. For branch locations, visit locator.chase.com.
• Overdraft Services – no fee if you’re overdrawn by $50 or less at the end of the business day*
• *We charge a $34 Insufficient Funds Fee per item during our nightly processing, beginning with the first item that overdraws your account balance by more than $50 (maximum of 3 fees per business day, up to $102).

For more information, you can read our Chase Bank Review or visit the Chase Bank website.

Best Checking Account for Military Members & Families – USAA

USAA Federal Savings Bank. I’ve been a USAA member for over a decade, stemming from my days in the US Air Force. You need to have a military affiliation (current or former military member, or son or daughter of a USAA member) to become a USAA member and use their banking and other products and services.

That said, USAA Classic Checking is among the best in the nation, offering a truly free checking account with no monthly fees and free ATM reimbursements (up to $15 per month). They don’t charge for using an ATM; they reimburse you when you use another bank’s ATMs.

That has saved me a lot of money over the years.

USAA offers free checks, an online savings account, mobile deposit, and many other great features. As a member for over a decade, I can’t recommend them enough.

Note: We have a full USAA Review here and on our sister site, The Military Wallet.

For more information or to open a checking account online visit their website: www.usaa.com

Best Checking Account for College Students – Chase College Checking

When searching for a college checking account, I recommend students get an account with online access and a wide national footprint, just in case they need to visit a brick and mortar location or access an ATM.

The Chase College CheckingSM account fits that bill nicely, as they have more than 4,700 branches and 16,000 ATM locations. College students should also look for an account with a low minimum balance requirement. Chase again meets the bill.

There is no minimum deposit requirement to open an account, and the $6 monthly fee is waived for up to five years if you are a student between the ages of 17 and 24 when you open the account.

Chase Bank also makes it easy to send and receive money quickly using Chase QuickPay® with Zelle®, and you can deposit checks from your mobile device just by taking a photo with the Chase Mobile® app.

Visit the Chase bank website for additional fees and account features.

Best Rewards Checking Account – Discover Bank

Discover Bank. Discover is better known as an issuer of credit cards, but their savings and checking accounts are among the best in the business.

Discover Bank has no minimum balance requirement, no monthly maintenance fees, free online bill pay, debit card, no ATM fees plus reimbursement of other banks’ ATM fees, access to over 60,000 fee-free ATMs, online access, immediate transfers between Discover accounts, no online transfer fees, and no fees for standard check orders.

Discover Bank also has a top-notch savings account that offers some of the best interest rates in the nation, making this an attractive option if you prefer to link your accounts.

The best part? Using your Discover Bank Checking Account, you can earn up to $120 in rewards each year. You can earn $0.10 for each debit card transaction, every bill you pay online, and each time a check you write clears (up to 100 combined transactions each month).

I love using my cash rewards credit cards, but there are times when you need to use your checking account. Why not get rewarded at the same time?

For more information or to open a checking account online, visit their website: www.discoverbank.com

Other Great Online Checking Accounts

EverBank Checking Account

EverBank is best for customers who maintain a relatively high balance in their checking accounts, as it requires a minimum of $5,000 to open an account. The benefit of this is EverBank’s Yield Pledge Checking account interest rates rival or exceed the savings account interest rates found at many popular “big bank” savings accounts.

EverBank’s high-interest savings account is also consistently among the highest in the nation. It is a good idea to link these accounts to ensure you always receive a solid return on your savings.

EverBank checking accounts feature unlimited check writing, mobile checking, and one of the most remarkable features in the industry – the ability to make check deposits online by scanning a check and uploading it to your account.

The high-interest rates and conveniences make this a good option for those who like to keep a little extra cash on hand.

For more information or to open a checking account online visit the EverBank website.

Ally Bank Checking Account

Ally Bank has made significant strides in features and customer service over the last several years. Ally Bank now offers best-in-class checking and savings accounts, with features found in a few locations.

The Ally Interest Checking account features an interest-bearing account, free bill pay, free debit card, free ATM usage (ATM fees are reimbursed each month), and free checks with unlimited check writing ability.

Free checks are a nice bonus, as many banks charge $20-30 for a set of checks (though you can usually save money buying checks from Costco or other locations). Finally, there are no minimum balance requirements and no monthly fees.

For more information or to open a checking account online visit the Ally Bank website, or read our Ally Bank Review.

Capital One 360 Checking Account

Capital One bought the US branch of ING Direct and re-branded it as Capital One 360. The only thing they changed was the name and the brand colors.

The simple-to-use interface, great rates, and other features remain unchanged.

I’ve been a customer of Capital One 360 for over ten years now. They were one of the pioneers in direct banking and offered an easy-to-use account that can be linked to your Capital One 360 Savings Account.

Features include a solid interest rate, ability to link accounts, free bill pay, free debit card, access to over 55,000 free Allpoint® ATMs, no minimum balance requirement, and no monthly fees.

Capital One 360 accounts also offer the ability to send checks online, create sub-accounts for easier management, and transfer money to other Capital One 360 members for free (a very cool peer-to-peer system similar to PayPal but limited to other Capital One 360 members).

Capital One 360 also has a popular referral program, where members can earn money by referring Capital One 360 to their friends and family members.

For more information or to open a checking account online, visit Capital One 360.

FNBO Direct

FNBO Direct. First National Bank of Omaha is the largest privately-owned bank in the US. They have long been a large regional bank but have expanded to the national level over the last few years with its online branch – FNBO Direct.

Their online checking account has no minimum balance requirements or monthly fees, offering competitive interest rates for checking accounts. If you maintain a low monthly balance in your checking account, then FNBO is a nice option since most large banks require a minimum balance to avoid fees for their checking accounts.

Additional perks include free bill pay, a free VISA debit card, a high-interest savings account option that you can link to your checking account, high-interest CDs, an excellent rewards card, the ability to transfer money via e-mail, or your cell phone, and their website features a user-friendly interface. You can read our full FNBO Direct review here.

For more information or to open a checking account online visit their website: www.fnbodirect.com

Citibank Checking Account

Citibank is one of the largest financial institutions in the US, with hundreds of physical branches and access to 29,000 fee-free ATMs nationwide. Depending on your checking account with Citi, you may also be eligible for ATM fee reimbursements.

Each Citibank checking account comes with online banking, free online bill pay, free mobile banking with CitiMobile, online check images, paperless bank statements, and 24/7 customer support.

Citibank is also a full-service bank that offers various other services, including investment products and loans, credit cards, and mortgage products. A minimum balance is required for the account to be free.

Here is a more in-depth Citibank Checking Account Review.

Zions Bank Checking Account

Zions Bank is a regional bank that has been around for over 135 years. Their attractive no-fee online checking account has served as an excellent way for them to serve a wider customer base.

The Zions Bank High Yield Internet Checking is an interest-bearing online checking account that offers competitive rates based on the balance you maintain in your account.

In addition, you can link this to a high-yield savings account, pay your bills online, transfer money, etc. Zions Bank offers a wide range of financial products, including the savings mentioned above and checking, along with CDs, investment accounts, business accounts, and more.

It takes $100 to open an account, and there is no minimum balance requirement. For more information or to open a checking account online, visit their website: www.zionsbank.com

Aurora Bank Checking Account

Aurora Bank is headquartered in Wilmington, Delaware, bringing over 85 years of banking experience. The Aurora Bank Checking Account with Interest offers competitive interest rates, free ATM withdrawals from an extensive, nationwide network, check writing, debit card, electronic transfers, and direct deposit.

Your account is eligible for overdraft protection, and your first set of checks is free. Aurora Bank also offers a wide range of consumer, business, and commercial banking, including savings, checking, money market accounts, debit cards, CDs, a variety of loan options, and more.

For more information or to open a checking account online, visit the Aurora Bank website.

Axos Bank (formerly Bank of Internet USA) You’ll have to meet a few requirements, but most of them are simple. 

Axos Bank is one of the more obscure banks on our list, but that doesn’t mean you should count them out of your search. With their “Rewards Checking” account, you can earn up to 1.30% APY, which is drastically higher than you will earn with just about any other checking account.

With Axos Bank, you can enjoy online banking, unlimited domestic ATM reimbursements, and some cashback purchase rewards. Just like the other banks on our list, there are no monthly fees and no minimum balance that you have to maintain.

MemoryBank

While it might sound like an odd choice, if you’re looking for another high-yield checking account, look no further than MemoryBank’s EarnMore Account. If you open up one of these accounts, you can enjoy a stunning 1.50% APY for the first year that you have the account.

Like the Bank of Interest account, you’ll need to meet some simple requirements to get the high-yield returns. You can take advantage of their high APY if you have one direct deposit into your checking account and use your debit card 5 times every month.

After the first year, the APY will be around 1.0%, which is still much higher than the competitors on the list. If you’re looking for a company that’s going to reward you for the cash in your checking account, the MemoryBank is an excellent option.

One of the obvious downsides is that you won’t have access to thousands of physical branches across the country like you will with some options.

Bank5

Bank5 has one of the best free online checking accounts on the market. They have a “Connect High-Interest Checking Account” that is easy to open and has several benefits.

They have free mobile and online banking to let you use bill pay and receive eStatements for no charge.

One of the most notable advantages of their online checking account is the 0.76% APY and free ATM use anywhere (with a few exceptions). Bank5 will reimburse your ATM fees and surcharges for up to $15 every statement cycle.

That is a unique advantage you won’t find with many other banks.

Another benefit of opening a Connect High-Interest Checking account is having access to their UChoose Rewards, which reward you for using your debit card. Whenever you use your Bank5 Connect card, you’ll earn points. For every $2 that you spend, you’ll earn 1 point.

You can use those points to redeem thousands of options.

Additional Factors to Consider When Choosing an Online Checking Account

Aside from fees, APY, and limitations, you should take note of a few other things when looking for the best online checking account. I like to look for banks that offer multiple services such as checking, savings, certificates of deposit, and more.

Some banks focus on one or two services. Other banks may offer additional services such as credit cards, loans, mortgages, and even insurance.

Choosing a bank that only offers a limited number of services is fine if you only need those specific services (this is common, for example, with online savings accounts). Just be sure to compare your needs before settling on a bank.

Finally, give some consideration to customer service. When making this list of the best free online checking accounts, customer service was taken into account, but you should always do your research before you pick a bank.

When you’re looking at customer service ratings and reviews, keep in mind that there is always going to be disgruntled customers. Regardless of how kind or courteous their customer service is, there will always be negative reviews.

Take those with a grain of salt. Look for trends or common complaints that their customers have.

Are Online Checking Accounts Safe?

Yes. FDIC insurance protects your checking account balances against bank failures or other types of events that would put your funds at risk.

Look for banks with FDIC insurance up to the statutory maximum of $250,000 per account.

A Note About Local and Regional Banks

Many local banks, regional banks, and credit unions offer similar deals and can be a great place to open a free checking account. However, there are a couple of downsides – often, they do not offer an extensive ATM network or are limited in other ways.

I recommend comparing online checking accounts from multiple financial institutions to find the one that best meets your needs.

Related Articles: 

• Radius Bank Hybrid Checking Account

The post Best Free Online Checking Accounts – Top 15 List appeared first on Cash Money Life | Personal Finance, Investing, & Career.

source https://cashmoneylife.com/free-online-checking-accounts/