Borrowing money from a 401(k) plan should be one of the first options to consider when you are looking at a short-term liquidity requirement. Ideal duration for borrowing this loan is typically a year or less than that. Applying for a 401(k) loan is a more viable option than choosing a title loan or a payday loan. Additionally, the accompanying high-interest rates of these options make a 401(k) loan a much financially smarter move in comparison. Considering the viability as mentioned earlier, here are four more benefits of applying for a 401(k) loan and borrowing a lump sum from it: 1. Convenience and short duration requirement For most 401(k) plans, procuring a loan is very easy. It does not warrant credit checks and is not accompanied by the filing of lengthy applications. Since no credit inquiry is made against you, your credit score remains intact. Depending on your 401(k) plan, you can procure a loan with just a few clicks on the website. Once you are done applying for a 401(k) loan, you will get your check within a short-stipulated duration, without your privacy hampered. 2. Flexibility in repaying the loan Typically, most 401(k) plans come with a five-year amortization schedule for repayment.

Credit card users and loan applicants are sure to know the term credit score. A credit score is a number that reflects a person financial dependability. Credit bureaus are responsible for evaluating a person’s credit score based on information gathered from credit card companies and banks. The real problem arises when a person’s credit score is on the lower end of the spectrum. Here is a basic range that will help you understand your credit score: 800-850 is considered to be an exceptional credit score 740-799 is considered to be a very good credit score 670-739 is considered to be a good credit score 580-669 is a fair credit score 300-579 is considered to be a poor credit score Note that there could be variations in these ranges. If you have a bad credit score according to these figures, then here are some steps you can take to fix it: 1. First things first, find out about where you stand Before you start the process of improving your credit score, you need to understand where you stand. To figure this out, you would need to get a credit report from all three bureaus—TransUnion, Experian, and Equifax. While the credit score can differ from one bureau to another, it will still be in the same range.

There are many features to consider before you opt for a new checking accounts service. Some individual checking accounts offer rewards, while others may offer a better rate of bank fees. With so many options on the market, it can be challenging to pick the best option. While all of them offer certain standard services, the following features will help you decide the best option when you are looking to open a checking account service: 1. Check the different bonuses and rewards offered A checking account service is known for offering rewards and bonuses. Let’s take Citibank for example. The rewards offered with this account are perfect for travelers. Apart from offering travel points, you can also earn rewards in the form of gift cards and merchandise. Basically, before you finalize your option, we recommend you to check the different benefits offered. These may range from travel to dining to fuel, thereby widening your options. 2. Check for the interest rates offered, if any As per the FDIC (Federal Deposit Insurance Corporation), the average rate offered for a checking account is somewhere around 0.50% APY (Annual Percentage Yield). However, since bank accounts want to get more sign ups, they offer better APY rates to the consumers.

Are you paying multiple credit card fees and balances month after month? If your answer is yes, then you should think about consolidating your credit card debt. For doing so, you may need to borrow money to pay off the credit card balances. While this may mean another loan for your credit card debt consolidation, it will reduce your payment to one single payment, which will have a much lower interest rate as compared to holding multiple credit cards. If you are looking for ways to consolidate your credit card debt, here are some potential options for you: 1. Try out a nonprofit credit card organization You can look for organizations accredited by the NFCC (National Foundation for Credit Counseling) if you wish to get outside help to guide you regarding your credit card debt consolidation. The advantage is that you may easily be able to set up a debt management plan or the program. In some cases, the organization may be able to negotiate better deals for you. However, you should note that the service may come with a small fee, which may be an added expense. 2. Go for a personal loan Another option to consolidate your credit card debt is by opting for a personal loan.

Everybody strives for higher returns on their investments. People mainly opt for stocks so that they can maximize profits on their hard-earned money. However, there is a reason why it is not everybody’s cup of tea. Stock markets are highly unpredictable, and if you are unaware of how it works, you could end up losing your savings. If you want to learn how the stock market works and tips on how to earn maximum returns on your investments, read the following. 1. Focus on cost but sensibly Whenever you wish to earn a few extra return points, cost control proves to be the most effective. However, for better cost control, you need to understand which fees are justified and which can be avoided. For instance, Vanguard is a USD 500,000 trust fund that has a fee of 1.57%. This includes the different expense ratios and layers of cost. While it may lack the tax efficiency of an individually managed account, it is definitely a great bargain. Hence, understand the entire cost before making a decision. 2. Know when the stock can be sold Some points you need to remember to know when to sell your stock: If earnings were not stated properly Debt keeps growing rapidly and you do not have any other option The management ethics are questionable Market price per share has become a lot higher than the diluted earnings made on each share In all of these situations, we recommend that you bid adieu to the concerned stock to avoid going into losses.

With college costs increasing, most parents are starting the process of saving for college at a much earlier stage. Nearly 98% of parents believe in saving for college early because they think it is suitable for their child’s future. 87% of people, on the other hand, said that they would go out of their way to provide their children with the best opportunities in terms of education. Even with this kind of willingness, getting enrolled in a college in the country calls for large investments. If you are also planning on saving for college, here are some tips you can follow to ensure that you get the best returns and planning: 1. Start earlier Did you know that the average age of a child for parents to start saving for their college has decreased to five from nine? This helps parents to weigh their options better, while also helping them to take benefit of compound interest and the potential growth that a fund holds. 2. Save up more, take lesser loans There are many plans that you can consider, an Education IRA (Individual Retirement Account), a minor gift certificate, or the most common of them all, a 529 plan. Instead of going for an education loan, it is better to save up beforehand.

Students’ savings accounts should condition students to adopt healthy financial habits that will give them some real world experience. Personal finance is not taught in many schools and people are unaware of the power of investing and compound interest. As such, the goal of any student should be an account that not only offers a high interest rate but also offers other tools like budgeting and other calendar-based or goal-setting features that will help them learn financial discipline. Mentioned below are some well-reviewed banks that offer the best savings accounts for students. 1. DCU Primary Savings While DCU doesn’t have any account specifically meant for students, their savings account has the best interest rates by far when it comes to the first $1000. The APY (Annual Percentage Yield) is 6.17% and is extremely useful for students who are trying to mobilize small savings. The lack of monthly fees or any necessary minimum balances makes it a very attractive account for students looking to get ahead with their personal finances. Some students even park their money in the account and let it earn interest while using another account for their everyday needs in order to avail the high interest. This may not provide much practical experience but will allow you to learn more about other banks in relation to DCU, and study the pros and cons of each.

While many people believe following the crowd is a sure-shot way to get ahead in the stock market, this may not always be advisable. It is important to do your own research and learn how the market works. To find the right stock, ask yourself if you would be willing to stay invested for 10 years; if the answer is affirmative, it means that you have faith in the company’s bottom line, product, vision, and current management. Here are the basic stock market tips to follow in order to stay ahead. 1. Be mindful of the basics It is important to learn as much as you can about the stocks that comprise the market. Sometimes, the stocks will all be moving in the same direction and sometimes the averages slide by a hundred points, but some companies perform well regardless. One of the most useful stock market tips is being familiar with the following: It is crucial to know financial terms like the P/E ratio (Profits to Earnings Ratio) or the ROE, which is the return on equity. The CAGR or the compound annual growth rate, will tell you what returns to expect. Similarly, the EPS (earnings per share) is critical to your understanding of the market.

Deciding to become a homeowner is stressful for most people. There are also several factors to consider before making a purchase, including job security, affordability, and where to buy a property. These are all very valid concerns that require further scrutiny, and it is important to treat this decision as you would treat any other life event of importance. You need to be informed about the real estate market, learn more about your finances, create a timeline, and try to make a budget that will help you make mortgage payments before you decide to take the plunge. Let’s examine some other basic factors you need to take into consideration before taking a mortgage: 1. Ensure that all debt is paid off Lenders may insist that you shouldn’t have a large portion of gross income committed to servicing revolving debt, so you should pay off credit card debts, car loans, and other debt that may have accumulated to make your financial health look much better. It will also work toward bumping up your credit score and helping you get a faster approval and better mortgage rate so that you end up paying less for the same loan amount. Banks and other financial institutions are primarily concerned with your ability to pay back the loan, which is what governs the agreement while taking a mortgage.

With age comes wisdom and plenty of small tax breaks for senior citizens and those who have retired. There are several tax breaks and deductions that senior citizens can avail to put their income to good use. There are also several advantages for people who are 50 years or older. However, living on a fixed income can get difficult, so we’ve listed out some of the best tax breaks you can get. Let’s examine the tax deductions seniors and retirees should use: 1. Taxes may not have to be paid for social security income It is fairly complicated to calculate social security benefits and decide if it is taxable or not. This is how it works: You are advised to add up all your income from all your sources. This includes retirement funds with interests that are tax-free. This amount is to be added to half of what was collected through social security benefits throughout the tax year. Then, form SSA-1099 will be sent to you via the Social Security Administration during the beginning of the year; this will show you how much you received. If the total (the total of all other income and half of Social Security) comes to less than $25,000 the portion of Social Security need not be included as taxable income subject to certain provisions such as you must be the head of a household or a single and qualifying widower or widow.