Leaving your car in a garage or a driveway, investing in the best car accessories for security, or installing Verisure Alarms for Home & Business are just some of the ways to deter car thieves from stealing your car. But then, do these methods always guarantee your car’s safety? Well, with over 20% of car owners in the UK admitting to having had their vehicle stolen, it seems that car robbers are creating new ways around the anti-theft and hi-tech security solutions out there.
[Read more…]
Should You Invest in Mobile Homes?
Mobile homes get a bad rap, but they could really be a good place to invest money. Investing in real estate is a good way to diversify your portfolio. Mobile, or manufactured homes, could be a good little niche in that sector. Should you invest in mobile homes?
What is a mobile home?
Mobile homes, also known as manufactured homes, are residential structures built in a factory or separate location and moved to the desired location. These homes are built according to HUD guidelines.
Those guidelines are as follows:
- Design and construction
- Strength and durability
- Transportability
- Fire resistance
- Energy efficiency
- Overall quality
Why invest in mobile homes?
Social stigma around mobile home parks prevent people from investing in them
Investing in individual mobile homes is difficult because the people that rent them are a (and I’m making a big generalization here) a challenging bunch to deal with. Invest in the grounds and infrastructure where the mobile/manufactured homes are.
There are several benefits to investing in mobile home parks:
- Recession-resistant (held up through the GFC)
- Tenants rarely leave, but sometimes, evictions are necessary (as they are with any real estate endeavor)
- Supply is waning, demand is increasing
- Predictable maintenance costs
- Stigma reduces competition with other investors
- Great financing options
- Limited need for contractors
- They’re inexpensive (you can buy individual units to rent on your property for less than $10,000 – depending on the area and demand)
(List provided by BiggerPockets)
Conclusion
As I mentioned in the beginning, investing in real estate is a great way to diversify your portfolio. It can also be a good way to get a return on your money.
Within the real estate sector, mobile home parks can be a very good niche, for the reasons I mentioned above. Should you invest in mobile homes?
Related reading:
Why Financial Literacy is Important
How to Invest in Real Estate without Getting your Hands Dirty
Hard Money Loans: Benefits for Real Estate Investors
**Securities offered through Securities America, Inc., Member FINRA/SIPC. Advisory services offered through Securities America Advisors, Inc. Securities America and its representatives do not provide tax or legal advice; therefore, it is important to coordinate with your tax or legal advisor regarding your specific situation. Please see the website for full disclosures: www.crgfinancialservices.com
My name is Jacob Sensiba and I am a Financial Advisor. My areas of expertise include, but are not limited to, retirement planning, budgets, and wealth management. Please feel free to contact me at: jacob@crgfinancialservices.com
What Should I Do With the Next Stimulus Check?
With the new COVID relief bill passed by Congress and signed by President Joe Biden. Many Americans have stimulus checks on the way if they aren’t already in hand. However, figuring out what to do with the money can be surprisingly tricky. Particularly if you have some conflicting needs. Luckily, it is possible to choose the best path for you. If you aren’t sure where to begin. Here are some options for what to do with the next stimulus check.
Handle an Urgent Need
If you have an urgent financial need, such as issues buying enough food for your household or past-due utility bills, using your stimulus check to handle those costs is your best bet. It ensures you can continue to live without undue hardship, and that’s important during this pandemic recovery period.
Additionally, if you have secured debt – like an auto loan – and you’ve fallen behind on payments, putting the asset at risk of seizure, it may be a solid target. By catching up, you may be able to avoid the repossession or foreclosure. Depending on the asset involved, that might be crucial.
However, before you send stimulus money toward any bill, you may want to see if there are other programs available that may reduce that burden. For example, utility companies, mortgage lenders, certain state or county offices, and many other organizations have relief programs to help those who are struggling due to the pandemic. If you’re eligible for their assistance, don’t hesitate to use it. Then, you can direct your stimulus check toward other needs.
Pay Your Taxes
If you have filed (or are about to file) your federal taxes and owe money to the IRS, using your stimulus check to handle that burden isn’t a bad idea. Unlike for the 2019 tax year filings, the IRS isn’t postponing 2020 tax filings this year. If you want to avoid fees and interest, then you need to pay what you owe in full by April 15.
Even if the stimulus check only covers part of your obligation, using it to handle some of your taxes reduces this total burden. Then, if you need to enter into a payment plan with the IRS to address the rest, what you’ll need to pay could be easier to shoulder.
Create an Emergency Fund
If you don’t have any cash – or very little money – set aside in an emergency fund, using your stimulus check to get one started is a good idea. It’s wise to have a little cash available for unexpected events, something that the pandemic made abundantly clear for many.
Ideally, you want at least $1,000 set aside initially. Then, you can work your way up over time, aiming to save a minimum of three to six months’ living expenses.
Pay Down High-Interest Debt
Using your stimulus check to tackle high-interest debt is always a good idea. Not only will it reduce the amount of money you’ll pay over the life of the debt, but it could potentially boost your credit.
For many people, starting with high-interest credit cards is the best way to go, especially if the cards are close to being maxed out. However, for others, a high-interest personal loan could also be a good target.
Finally, if you have a payday loan, focusing on that might be your ideal option. Payday loans usually come with astronomical interest rates, making them a wise debt to tackle with stimulus money.
Boost Your Retirement Savings
By using your stimulus check to boost your retirement savings, you not only do something to help secure your financial future, but you may also get a tax benefit. You have until April 15, 2021, to finish up your 2020 retirement investing. If you contribute your stimulus to a tax-advantaged account, you might be able to lower your 2020 tax burden.
However, you can also use the money for your 2021 retirement savings. You may be able to get a jump start on it or even fully fund an IRA, depending on how much you receive in your stimulus check.
Handle a Large Purchase
If you have a solid emergency fund, fully funded retirement accounts, no high-interest debt, and have your financial house otherwise in order, then using your stimulus check for a large purchase is certainly an option. It may give you the ability to buy high-cost items in cash, allowing you to potentially avoid high-interest debt.
Even using stimulus money to fund a vacation can be a smart move if you’re in good financial shape otherwise. Again, it lets you avoid the need for debt and could give you something fun to look forward to once you feel comfortable traveling.
Invest, Invest , Invest
If you want to put your stimulus check to work but already have a fully-funded retirement account, then you could always invest separately. There are many options that can help people get started, including full-service brokers, robo-advisors, and anything in-between.
You will need to do some research if you don’t currently have an investment account, ensuring you choose the right brokerage for you. Additionally, if you aren’t sure where to invest the money, you might need professional guidance or to conduct more research.
In many cases, focusing on individual stocks isn’t wise for beginners. Instead, options like index funds may be a better bet, as they come with an innate level of diversification.
Save Money for College
Whether you have children or may go back to college yourself, setting your stimulus check aside in a 529 college savings plan could be a smart move. It lets your money grow tax-free, and any withdrawals you make for qualifying expenses aren’t taxed either. In the end, this option can help make college more affordable, allowing you or your child to potentially avoid or reduce the need for costly student loans.
Do you already have plans for your next stimulus check? Share your thoughts in the comments below.
Read More:
- How to Recover Finances Post-Pandemic
- COVID-19 Crisis: Is Our Money Safe in Banks?
- Is There Any Recourse for an Eviction Due to Job Loss?
Tamila McDonald is a U.S. Army veteran with 20 years of service, including five years as a military financial advisor. After retiring from the Army, she spent eight years as an AFCPE-certified personal financial advisor for wounded warriors and their families. Now she writes about personal finance and benefits programs for numerous financial websites.
What’s Needed to Start a Small Business 401(k) Plan
Small businesses and start-ups often believe that they cannot set up a 401(k) plan based on the size of their business and limited resources. But that is not true. All small businesses can set up a retirement plan to attract and retain talent by following a few simple steps. [Read more…]
Prioritizing Home Renovations
As I’ve said previously, K and I are moving back to our home in Oconomowoc, WI. We’re head over heels excited about it, but there are some things we need to do and some things that we want to do. Today, I’m going to talk about some of the projects we have planned and help you prioritize your home renovations.
What we need to do
There are two/three things that we need to do once we move back.
The first thing is to sure up the foundation. Our house is old, really old. The foundation is not as secure as we need it to be, so that’ll be the first thing we do. Get some extra support posts installed in the basement and secure/replace some of the old joists that have seen better days.
The second thing we have to do is insulate the kitchen. I don’t know what the prior owners did (they remodeled the home and flipped it to us), but the kitchen bleeds AC/heat. In the winter, it’s very clear because it’s darn cold in the kitchen. What’s more, the kitchen sink and the dishwasher will stop working if it gets too cold. To ensure the pipes won’t freeze and burst, and make the kitchen more energy-efficient and comfortable, we have to insulate.
The third thing is not incredibly important but should get done at some point. Off of the kitchen is the back door entrance. You enter into a “three-seasons room” and then enter a second door to get into the kitchen. The three seasons room needs insulation as well. Beneath it, we need to lay a vapor barrier on the ground and spray insulation into the floor joists. Now, this is not very important because of the second door. However, more insulation will allow for more utilization of that room.
What we want to do
This list is pretty long, as is the case for most homeowners. Some of the windows need to be replaced, we want to install an island in the kitchen, and we want to remodel the downstairs bathroom.
With regard to the bathroom, the current setup is one full bath and one-half bath. They are right next to each other, but the half bath (in terms of square footage) is much bigger than the full bath. What we would like to do is demo the wall in between and make it one, big bathroom. The price tag for this is a little higher than the other projects, so it’s a little farther down on the list.
How to prioritize
The first three renovations are no-brainers. These need to get done. Securing the foundation is paramount for our family’s safety, the insulation is important to avoid possible water damage and lower heating costs, and taking care of the back porch/three-season room will expand the usable square footage.
You have to take into account a few things:
- Family safety
- Family comfort
- Financial sense
- ROI – Return on Investment
Safety is your number one priority. That’s what makes a home, being comfortable living there. Replacing windows can be expensive, but they will pay for themself over time with savings in utility costs. In terms of the bathroom, it should increase the value of the home, but how much we spend versus how much the value increases is a factor to consider.
Conclusion
Projects and renovations go hand in hand with home ownership. What’s important is prioritizing home renovations so you take care of what’s needed before you tackle what you want.
Related reading:
How Buying a House and Saving for Retirement are Similar
5 Surprising Things Not Covered by Homeowners Insurance
**Securities offered through Securities America, Inc., Member FINRA/SIPC. Advisory services offered through Securities America Advisors, Inc. Securities America and its representatives do not provide tax or legal advice; therefore, it is important to coordinate with your tax or legal advisor regarding your specific situation. Please see the website for full disclosures: www.crgfinancialservices.com
My name is Jacob Sensiba and I am a Financial Advisor. My areas of expertise include, but are not limited to, retirement planning, budgets, and wealth management. Please feel free to contact me at: jacob@crgfinancialservices.com
How To Ask for Reimbursement of Travel Expenses
At this point in time, business travel is less common than it used to be. I have a hunch that it will never return to pre-pandemic levels, as employers found it easier and less expensive to accomplish this through Zoom. It’s still important to know the ins and outs. Today we will cover how to ask for reimbursement of travel expenses.
What are travel expenses?
Travel expenses occur when an employee travels for business purposes. A business trip can include conferences, business meetings, client meetings, training, job fairs, etc. One thing about travel expenses, is you need to be sure you’re getting the best jet card program. You want to get as many points or cash back rewards as possible.
Travel expenses include lodging, food, rental car, tips for servers and bellhops, etc. Most organizations that require employees to travel on a regular basis have policies in place.
If an employee is traveling for an extended period of time or is at a particular location for an extended stay, the business may also include reimbursement to pay for your family to visit.
When entertaining a client or a business partner, there are limits on entertainment expense reimbursement, so make sure you check your company’s guidelines so you don’t breach that threshold.
How do employees pay for travel expenses?
Company credit cards, personal credit/debit cards, cash, or allowances given by the employer.
How to ask for reimbursement of travel expenses
If the corporate policies are unclear about the process, write a letter first. Before you go on a trip or take a client out for lunch, request the payment of the expense, or at least ask for some information about what is covered, what isn’t, and what the limits are. Establishing communication upfront is very important.
Per diem, aka travel allowance or an expense account, is recognized by the IRS. Per their guidelines, your expense report is due to your employer (usually HR) within 60 days. The report should include dates, location(s), and receipts.
If you have any allowances or advancements that haven’t been used or can’t be justified as a business expense, then you must return that to your employer. If you don’t return it, that money can be classified as taxable income.
Conclusion
As I said in the opening, I don’t believe business travel will return to pre-pandemic levels, but it’s important to know what travel expenses are and how to ask for reimbursement of travel expenses.
Review your company’s business travel policy for more information, and if your company doesn’t have one, speak to them about what’s covered, what’s not covered, and any limitations.
Related reading:
Why Financial Literacy Matters
Top Reasons you Need Car Insurance
**Securities offered through Securities America, Inc., Member FINRA/SIPC. Advisory services offered through Securities America Advisors, Inc. Securities America and its representatives do not provide tax or legal advice; therefore, it is important to coordinate with your tax or legal advisor regarding your specific situation. Please see the website for full disclosures: www.crgfinancialservices.com
My name is Jacob Sensiba and I am a Financial Advisor. My areas of expertise include, but are not limited to, retirement planning, budgets, and wealth management. Please feel free to contact me at: jacob@crgfinancialservices.com
COVID-19 Crisis: Is Our Money Safe in Banks?
The future is uncertain, and this uncertainty can cause you to wonder if your money in the banks is safe or not during an economic downturn.
The coronavirus pandemic has caused so many concerns that we otherwise wouldn’t have. In some cities and countries, the lockdown has caused panic among citizens and made them stock up on food, toilet papers, medicines, and cash. This is what an economic crisis will do to people around the world. [Read more…]
Signs That You May Need a Financial Advisor
Red Flags When Choosing a Financial Advisor
Finding a qualified, trustworthy financial advisor can be very tough. Not all of them are created equal. What requirements and/or rules they follow are not the same. There are some financial advisor red flags you need to be aware of when shopping. We’ll explore those in today’s post.
How was the first meeting?
What kind of vibes did you get from the person you met with? Did you have a good gut feeling or a bad gut feeling? Was there good rapport? Did the conversation flow naturally? Did they answer your questions?
These are all great questions to reflect on after you met with your first prospect. You have to trust your gut. If the conversation was good and flowed naturally, but you just didn’t get a good vibe from them, shop elsewhere.
If you think they were walking a line of honesty, whether they held back on telling you things or they made contradicting statements, I would either address it directly or walk away. This is your financial future we’re talking about. You have to make the right decision.
How are they governed?
Do they operate using the fiduciary standard or are they only required to do what’s suitable? As a fiduciary, the advisor is legally obligated to do what’s in your best interest.
For example, when making investment recommendations, an advisor that operates using suitability is only required to make recommendations based on what’s optimal for your investment objective, time horizon, and risk tolerance.
With the fiduciary standard, they use that same suitability but take it a step further. If there are two options for investment – one charges 1% and one charges .50%, the advisor will use the lower of the two because that’s in the client’s best interest.
What are they offering?
If you meet with a potential advisor and they say that they’ll beat the market, run the other way. If an advisor recommends annuities or variable products, I’d either stress that you’re not interested or move along. These are insurance products and there could be a conflict of interest.
How are communications?
Are they honest with their pay schedule? When you asked them about what they charge, were they clear with their answer? This is important. A wishy-washy answer is enough grounds for you to walk away.
Do they talk a lot or do they take time to listen to you? Advisors that talk more than they listen are often pitching a narrative that they believe instead of listening and creating a plan customized to your needs/wants.
How are they with following up? Does it take them forever to get back to you? An advisor that doesn’t make you feel important is a red flag.
Are they a “yes person”? Do they always agree with you? A key characteristic of good advisors is the ability to correct you or express their opinion about your financial plan. If there’s something that you would like to do, but they don’t think that it’s a wise move based on the plan you created, they need to tell you that.
Conclusion
Are there financial advisor red flags? Absolutely. We illustrated them here. Keep them in mind when you’re shopping and trust your gut. There are fantastic advisors out there, you just have to do a little work to find one.
Related reading:
Robo-advisers: What I Like and What I Don’t Like
The Pros and Cons of Being a Financial Advisor
**Securities offered through Securities America, Inc., Member FINRA/SIPC. Advisory services offered through Securities America Advisors, Inc. Securities America and its representatives do not provide tax or legal advice; therefore, it is important to coordinate with your tax or legal advisor regarding your specific situation. Please see the website for full disclosures: www.crgfinancialservices.com
My name is Jacob Sensiba and I am a Financial Advisor. My areas of expertise include, but are not limited to, retirement planning, budgets, and wealth management. Please feel free to contact me at: jacob@crgfinancialservices.com
How To Regain Control Of Your Finances Amid The Pandemic
Who knew the global health crisis would have such a negative impact on personal finances? Close to a year after the coronavirus pandemic started, many people are hanging on by a thread. As if being self-sufficient in America wasn’t already strenuous, reduced hours and unemployment only added to the problem. Government assistance (though better than nothing) is minuscule compared to their rising expenses, leaving many to make poor financial decisions to survive.
Emergency savings and retirement accounts are all but tapped out. Robbing Peter to pay Paul has become the concept for paying bills. Credit cards (that you don’t have the means to repay) seem to be the only way to handle medical expenses, utilities, and groceries. Though these practices provide temporary relief, they come with consequences that will take years to recover from.
Turning Things Around
Though the coronavirus pandemic continues, failure to get your finances back on track now will only lead to more significant problems down the road. As difficult as these times are, you can start taking steps towards turning things around. Continue reading to learn more.
Take Advantage Of Assistance Programs
The stimulus package isn’t the only form of assistance available to Americans struggling amid the pandemic. If you haven’t done so already, look into other financial assistance programs. Whether you’re having a hard time paying your mortgage or you can’t afford groceries for your children, you’ll be surprised to learn that there are several options for those in need. Even if you’ve been turned down in the past, many programs have altered their eligibility requirements to accommodate those affected by the pandemic. The best thing you can do is apply as any assistance is better than none.
Re-Evaluate Necessary Expenses
One of the first things you learn about maintaining financial stability is being mindful of your spending. By reducing or eliminating unnecessary items from your budget, you can free up cash to use for essentials. As hard as you try, however, there are some costs you can’t (or shouldn’t) get around. For example, allowing your car or life insurance to lapse could leave you or your family with a financial burden in the middle of a pandemic.
Though these things are crucial, you don’t have to break the bank to have them. Review your necessary expenses to determine if there are ways to save money. Comparing insurance providers and using tools like a term life insurance calculator could help you find a more affordable policy. Using coupons or sales flyers when shopping for groceries can take quite a bit off food for you and your family.
Start Generating Cash
You may have a hard time finding a full or part-time job at the moment, but there are still opportunities to generate some extra cash. Whether it’s a few bucks or several hundred dollars, it can go a long way in helping you cover expenses, pay down debts, or boost your emergency savings. You can have a yard sale, help seniors in your neighborhoods with odd and end tasks, become a rideshare driver, deliver groceries or takeout, answer surveys, or start a small business.
Consider Downsizing
If you’re in dire straights amid the pandemic, you may need to consider downsizing. Although not an ideal solution, it may be the only way to regain control of your finances. Review the equity in your home and the housing market to determine if selling would be lucrative. If necessary, move in with relatives or find an affordable place to rent. If you have a car you’re still making payments on; perhaps you should trade it in or sell it and use public transportation.
If you’ve made ineffective financial decisions amid the pandemic to survive, you’re not alone. Millions of people felt they had no choice. If you’re going to avoid the substantial consequences that come with making these decisions, now is the time to start. By implementing the strategies suggested above, you can begin the process of regaining control of your finances amid the pandemic and beyond.
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