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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 Are The Risks Of Using Public Wi-fi For Online Banking?

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what security risk does a public wi-fi connection pose

Public Wi-Fi – like the type you get access to in coffee shops, hotels, and airports – is highly convenient, allowing you to maintain a data connection without using any through your wireless plan. However, using public Wi-Fi isn’t always the safest option, particularly if you’re dealing with sensitive information. If you’re wondering, “What security risk does a public Wi-Fi connection pose for online banking?” here’s what you need to know.

The Risks of Using Public Wi-Fi for Online Banking

More often than not, banking websites and apps use encryption to protect the information you send over any network, including public Wi-Fi. Encrypted webpages are marked with a lock symbol next to the URL or “https” – with the “s” being the critical part – in the address bar.

However, that doesn’t mean online banking over public Wi-Fi is risk-free. Hackers use a variety of techniques to steal sensitive data from unsuspecting people. Here is an overview of some common strategies.

Man-in-the-Middle Attack

With a man-in-the-middle (MITM) attack, hackers break into the network and position themselves between a connected device, such as your smartphone, and the Wi-Fi router. Then, they can functionally eavesdrop on information passing between the device and router, making it possible to capture user names, passwords, and other details.

Another strategy that hackers can employ when using MITM techniques is redirecting traffic that’s running between your device and the network. When they do, they typically send unsuspecting people to fake websites designed to look secure and resemble a legitimate financial institution’s site. The goal is to trick users into believing they’re on the real website and have them input their login credentials or provide other sensitive information. If they do, then the hacker can capture those details.

Evil Twin Attack

An evil twin attack is when a malicious actor sets up a Wi-Fi hotspot and names it something associated with a legitimate entity, such as the café you stop at for coffee. The goal is to trick people into thinking that the hacker’s Wi-Fi hotspot is the one offered by the company.

If you connect to the evil twin by mistake, hackers can intercept your data with surprising ease. Additionally, the Wi-Fi device can be a tool to deploy malware onto your device, putting you further at risk.

Reconfigured Connection

In some cases, public Wi-Fi routers use default login credentials to access internal settings. When this occurs, a hacker may be able to figure out the necessary username and password, allowing them to access configuration settings within a company’s public Wi-Fi connection. Then, they can change the settings to meet their needs, which can put you at risk.

Sniffing Attack

A sniffing attack is a technique where hackers use a packet sniffer – which is a legitimate tool often used by networking professionals – as a means of intercepting, capturing, and reading sensitive data that’s passing through a network. Typically, unencrypted data is most at risk. However, some attackers may inject malicious code that could hijack or compromise your device, too.

Tips for Safe Online Banking When Using Public Wi-Fi

Update Your Operating System, Browser, Applications, and Antivirus

Keeping your operating system, browser, applications, and antivirus software up to date reduces the odds that there are security vulnerabilities present that hackers can leverage. Ideally, you want to turn on automatic updates, but if you don’t for any reason, make sure to check for them regularly and apply them as soon as possible.

Use a Virtual Private Network

A virtual private network (VPN) is a solution that adds a layer of encryption to your traffic, which makes it safer to use public Wi-Fi networks. Even if hackers intercept your traffic, they’d need to decrypt it to do anything with what they capture, which is no easy task.

Turn Off Bluetooth

Open Bluetooth connections give others a potential point of entry into your device. As a result, it’s often wise to just switch it off if you’re using public Wi-Fi and don’t have a need to use the connection yourself at that particular moment.

Ask Establishments Before Connecting

If you’re concerned about whether a Wi-Fi network legitimately belongs to a business, ask an employee about the available Wi-Fi connections. Typically, they’ll be able to tell you if Wi-Fi is something the company offers, as well as which network belongs to it.

Use Banking Apps Instead of Websites

While banking apps can have security vulnerabilities, they’re potentially safer to use if you’re on public Wi-Fi. Hackers can’t simply redirect you to a fake website designed to match your bank’s site without raising suspicion if you’re trying to connect through the mobile app instead. Essentially, the redirection attempt is more obvious, which may be enough to alert users that something is wrong with the connection.

Set Up Two-Factor Authentication

Using two-factor authentication (2FA) on your bank logins adds an extra layer of security. Usually, 2FA involves a second verification step, such as a code you need to enter that’s delivered via text message. Even if your username and password are compromised, a hacker may not be able to get the additional authentication step complete, and that helps keep your account secure.

Heed Browser Warnings

Many browsers will issue a warning if they believe there’s something wrong with a website. For example, they’ll often alert you if you attempt to go to a secure (https) site and only an unsecured (http) version is available. Similarly, they’ll often notify you if there’s an issue with a site’s certificates or if there are too many redirection attempts. If you see these warnings, particularly if you’re using a less familiar public Wi-Fi connection, wait to do any online banking until you can find a network you trust.

Change Your Passwords Regularly

If you use public Wi-Fi regularly – or even if you don’t – changing your banking passwords regularly helps protect your accounts. If a password was captured by a hacker or is part of a breach, creating a new one renders that information useless.

Skip Public Wi-Fi

For sensitive tasks like online banking, using your cellular data connection is typically the safer option. While it’s not impossible for hackers to compromise those networks, doing so is much more difficult than compromising public Wi-Fi.

Can you think of any other risks of using public Wi-Fi for online banking? Share your thoughts in the comments below.

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5 Ways to Find Unclaimed Money

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unclaimed inheritance

While the idea of losing track of money or having an unclaimed inheritance may seem odd, it happens more often than most people would expect. Fortunately, finding out about unclaimed property isn’t overly challenging. Here’s a look at five ways to find unclaimed money.

1. State Unclaimed Property Offices

Typically, the easiest way to begin your search for an unclaimed inheritance or other assets is by searching for your state’s unclaimed property office. Every state has a department that oversees the accounts that are surrendered to the government, which can occur when the genuine owner isn’t located in a timely manner. That entity then maintains a searchable database that anyone can use to check for unclaimed money.

Generally, all you need to do is put “[your state] unclaimed property” into a search engine, and you’ll find the office in the results. Just make sure you find the listing that’s associated with a legitimate government agency, as not all of the results are associated with the genuine agency.

During your search, it’s also wise to check any state you’ve previously lived in or where relatives that may have left an inheritance lived. With the former, you can look for unclaimed property that’s directly connected to you by searching for your current and any previously used names. With the latter, you may need to input the personal details of the deceased to find the unclaimed money, as it’s potentially still listed in their name.

Once you find any unclaimed property, you’ll need to go through the claims process. Typically, you need to provide some simple proof that you are the person associated with the unclaimed assets. Once you do, you’ll usually receive the associated property during the timeframe outlined on the website.

2. MissingMoney.com

MissingMoney.com is a comprehensive website that’s endorsed by the National Association of State Treasurers (NAST) and run by the National Association of Unclaimed Property Administrators (NAUPA). Functionally, it’s a one-stop shop for searching various state databases that list unclaimed assets, making it a useful tool for anyone that’s moved between multiple states or prefers to use a single resource.

Some states partner directly with the site, allowing you to file claims right through it. Others may require you to submit claims through the state website, but MissingMoney.com can direct you to the right place, making it simple.

Along with entering your name, you can narrow the results based on your current city and state or those you’ve resided in previously. This strategy is potentially critical if your name is relatively common. Otherwise, you may end up skimming thousands of results looking for matches.

It’s critical to note that MissingMoney.com is a replacement search tool for the one that was previously found at Unclaimed.org. Both sites are overseen by the NAUPA, so they access the same details. However, if you prefer to engage with your state program directly, Unclaimed.org does have a search feature that lets you find the appropriate state website quickly, so keep that in mind.

3. Treasury Hunt

Treasury Hunt is a tool that’s available through the US Department of the Treasury. Generally, it’s used to find out about mature but unclaimed savings bonds or missing interest. As a result, it’s a simple way to learn about assets a person owned before they passed away or savings bonds you may have forgotten about over the years.

Using this tool does require very specific information. You need to provide the Social Security Number of the potential savings bond owner, as well as their state. With that, any presented matches are usually definitive, and you’ll get clear instructions outlining what needs to happen to claim the funds.

As with many of these other search options, you may need to update the state to check each one you or the deceased party resided in as a precaution. Also, the results will only show matured savings bonds, so if there are any that haven’t reached maturity yet, they won’t appear in the list until the maturity date passes.

4. Wills and Estate Plans

Another resource that may help you learn about unclaimed inheritances is the deceased person’s will or estate plan. These documents formally outline how they wanted their assets divvied up after their death. As a result, they often serve as reasonably comprehensive records of the deceased’s property.

If you don’t have a copy of a person’s will after their passing, you can check with the probate court to see if it was submitted. You can also contact the attorney that drafted a will or estate plan. If you’re the executor of the estate, the lawyer that drafted the documents can potentially provide copies directly. If you aren’t, they can often direct you to the person listed as the executor, giving you someone you can ask about the contents of the will or estate plan.

Executors are responsible for keeping beneficiaries reasonably informed, so most are open to sharing relevant information with beneficiaries who may receive various assets. If the executor isn’t communicating appropriately, you may want to speak with an attorney that serves beneficiaries for assistance in resolving the matter.

5. Locator Service

If you know that there are unclaimed assets or an unclaimed inheritance, but you’re struggling to track it down, you can consider hiring a locator service. These professionals will manage a thorough search on your behalf, hopefully tracking down the property you’re trying to find.

It’s critical to keep in mind that locator services do come at a cost, so the missing property or inheritance needs enough potential value to justify the expense. Additionally, make sure a locator service is highly reputable before engaging with them. Some less scrupulous companies may do little more than try the tactics above to gather information, and others may be outright scams. As a result, some due diligence is essential.

Have you ever tracked down an unclaimed inheritance or other unclaimed money and would like to tell others about your experience? Share your thoughts in the comments below.

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7 Tips to Ensure You Receive Severance Pay When Let Go

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severance pay

Many companies are considering layoffs due to economic uncertainty. Plus, staffing reductions can occur even when an organization is financially secure. As a result, many professionals want to make sure that they’ll receive severance if their employment ends unexpectedly. If you’re among them, here are seven tips to ensure you receive severance pay when let go if it’s owed.

1. Understand the Law

Generally, there aren’t any federal or state laws that make severance a requirement across the board. As a result, even if you’re let go through no fault of your own, severance isn’t inherently guaranteed based on legislation in the vast majority of cases.

Typically, if there are exceptions, they relate to layoffs that didn’t follow government-mandated procedures. For example, state law may require that employers provide a specific amount of notice to employees before a layoff occurs, depending on the size of the layoff. If the employer fails to do so, they might be required to continue giving employees their pay and benefits for a specific period, even if the worker isn’t performing any job-related duties during that period. While that does differ a bit from traditional severance, it still results in income that’s provided after employment formally ends.

Since situations like the one outlined above can occur, it’s wise to review any relevant laws relating to layoff requirements and potential resulting severance or compensation. That way, you know what you have a right to if you’re let go in a way that violates legal requirements in your area.

2. Review Your Employment Agreements

While companies aren’t necessarily required to offer severance, many of them do have severance package details outlined in various employment agreements. This can include arrangements in individual employment contracts with specific employees or broader policies that apply to the entire organization.

Spend time reviewing any employment agreements that apply to you, and look specifically for information about severance or compensation relating to layoffs. That ensures you’re well-informed if a covered situation unfolds.

3. Check Any Union Contracts

Even if your company doesn’t discuss severance in its employment agreements, union contracts may address the topic. If you’re in a union position, review the contract to see if there are details about severance pay or similar compensation. Again, this lets you know what the company has agreed to do in specific situations and its information you can leverage if a covered event occurs.

4. Make Sure Your Eligible

Typically, there are eligibility requirements for severance packages. For example, some companies only offer severance if you’re laid off through no fault of your own, while others may expand the benefit to other types of job loss. At times, severance may be available to nearly any employee, while others limit it to workers who are full-time or work a minimum number of hours each week.

If you want to ensure you receive severance, you need to know the eligibility requirements. That helps you make decisions on the job that let you qualify for the benefit, such as maintaining a proper performance to avoid termination for cause, working the required number of hours, and more.

5. Negotiate for Severance

Severance is traditionally an employee benefit, and like many benefits, it’s often negotiable. If you’re considering a new job and are concerned about a layoff in the future, you can see if the company is willing to put this type of compensation into your employment contract. Then, if a qualifying event occurs, you have a straightforward path for securing severance pay.

However, you can also negotiate severance even if a layoff or termination is looming. Often, this is possible if the company is asking you to sign an agreement stating you won’t take legal action against it or that would bar you from discussing any aspect of your experience that relates to the end of your employment. By not signing immediately, you can request compensation for doing as they ask. Then, once that agreement is formally outlined in writing and signed by the proper company leaders, you can receive that compensation by agreeing to the company’s terms.

6. Prepare to Receive the Severance

In some cases, severance isn’t paid the same way you receive your pay. For example, severance may come as a check instead of a direct deposit, or vice versa. As a result, you need to make sure everything is in place for the process to unfold smoothly. That could include ensuring the company has the correct address or bank account information to provide the money, allowing you to avoid unnecessary hiccups.

7. Don’t Quit

Typically, quitting a job makes an employee ineligible for severance. If a company is talking about layoffs, but you haven’t been let go yet, don’t jump ship assuming that you’ll get your severance. Quitting or leaving before the official termination date could make you ineligible, and it may cost you unemployment, too.

Generally, the only time leaving early makes sense is if you receive a job offer and need to start in that role before you’re laid off. While you may not get severance, you are ensuring your income continues, so that could make the sacrifice worthwhile.

 

Do you have any other tips that can help someone ensure they receive their severance pay if they’re let go? Did you manage to secure severance pay after losing a job and want to tell others about your experience? Share your thoughts in the comments below.

 

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Here’s How To Tell If You Got A Great Sign On Bonus

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Sign On Bonus

After receiving an initial job offer, you may find that a sign-on bonus is part of the package. While any sign-on bonus is often a boon, figuring out whether yours is competitive may seem like a challenge. Fortunately, there is a way to determine whether it’s a strong offer. Here’s a look at what a sign-on bonus is and how to tell if you got a great one.

What Is a Sign-On Bonus?

A sign-on bonus is a financial incentive designed to entice you to accept a new job offer. Typically, they come in a few different forms. Some are one-time lump sum payments that you receive on a specific date. With these, you may need to remain with the company for a particular period, such as 90 days, six months, or one year. Once the outlined date arrives, you get the entire amount all at once.

Another version of the sign-on bonus involves annual installments. Typically, you receive the first payment relatively quickly after beginning the job. Then, you’ll receive the rest of the sign-on bonus in subsequent annual payments. With these arrangements, the payment schedule should be outlined upfront, letting you know exactly when you can expect the remainder of the funds.

While sign-on bonuses always function as financial incentives, they can serve additional purposes. Along with helping the company secure your skills, sign-on bonuses may offset lower salaries. Additionally, they could be used as compensation for benefits that you elect to forgo or wouldn’t receive adequate value from, though this isn’t as common.

How to Tell If You Got a Great Sign-On Bonus

As with all parts of your compensation package, determining whether your sign-on bonus is competitive usually requires research. Often, this is a bit complex, as you don’t want to compare sign-on bonus information alone. The value of other aspects of compensation packages also matters as the goal is to get the most total value possible.

Ideally, you want to explore what competitors usually bring to the table in regard to salary, benefits, perks, and sign-on bonuses. By comparing the competitor offerings to the value of the total compensation package outlined in the job offer, it’s easier to see if you’re coming out ahead or are at least in the ballpark of what’s available elsewhere.

How to Negotiate a Better Sign-On Bonus

If you feel that the total compensation presented in your job offer falls short, you can attempt to negotiate the sign-on bonus in your offer. Use your research to show that the total compensation package falls short of what competitors offer and demonstrate the value of what you’re bringing to the table. By doing so, you can create a strong case for additional compensation, which may result in a larger sign-on bonus.

However, don’t focus on the bonus alone. Instead, consider other compensation increases that can also provide the proper value. Options like a higher salary, additional ongoing performance bonuses, better benefits, more paid time off, and similar offer improvements can all work in lieu of a stronger signing bonus. Just consider what may also meet your needs and express an interest in exploring those alternatives if raising the sign-on bonus isn’t possible.

Additionally, if the company isn’t able to align the total compensation package with industry norms, then you need to consider how that impacts your feelings about the job. If you get enough value elsewhere, such as by getting to join an exceptional culture or having ample opportunities to develop professionally, the lower compensation might not be problematic. But if what you’ll gain doesn’t offset the lower compensation, turning down the job could be worth considering, as that allows you to relaunch your job search and continue working toward an opportunity that can better meet your needs.

 

Have you ever received a sign-on bonus and want to tell others about your experience? Do you plan to negotiate for a sign-on bonus in the future? Share your thoughts in the comments below.

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Should I Invest In The Stock Market Now?

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Should You Buy Stocks When They Are Down

When you’re thinking about investing in the stock market, it’s normal to be a little nervous. That’s particularly true during periods of economic uncertainty, which is what people are facing today. When prices are fluctuating, or a downturn is either occurring or on the horizon, it’s common to ask questions like, “Should I invest in the stock market now?” and “Should you buy stocks when they are down?” If you’re wondering whether investing today is a smart move, here’s what you need to know.

The Current State of the Stock Market

During late 2022, the stock market was generally trending downward. Issues like inflation and a potential recession can make investors wary, leading to some significant drops in stock market values.

In early 2023, there was some additional volatility following the collapse of two banks in the United States, with many fearing that those failures would have a cascading effect. However, that didn’t happen, and investors are feeling a bit more confident now.

Additionally, while inflation is still a concern, prices aren’t rising as quickly as they did during parts of 2022. While there may be another interest rate increase on the horizon, the positive impact the others had on inflation could mean that additional hikes won’t be necessary, or they’ll be incredibly modest.

Overall, the stock market in 2023 has largely been marked by a rebound when compared to the declines in 2022. Along with some returning investor confidence, some experts believe that any potential recession will come with a soft landing, particularly since the labor market remains strong.

As a result, while there’s still uncertainty when it comes to the stock market, the situation isn’t nearly as frightening as some previously expected. While that doesn’t mean there will be significant gains in the coming months, it could mean that losses would be minimized and recovery could occur in relatively short order. However, the stock market is – and will always be – a bit unpredictable, and it’s critical to keep that in mind.

Should You Buy Stocks When They Are Down?

Generally, buying stocks when the market is down isn’t a bad idea for long-term investors. It creates opportunities to acquire shares at more affordable prices. Then, when the market recovers and growth returns – which is what traditionally happens given enough time – those investors can enjoy the gains. Essentially, even if there are losses initially, those with a longer timeline can essentially ride out the storm.

For short-term investors, buying stocks when they are down is also potentially wise, but it can also lead to losses depending on how the market shifts in the coming months. It’s still unclear whether more losses could occur, particularly if the United States officially enters a recession or interest rates rise again to combat inflation. Ultimately, shorter timelines increase risk since a sudden downturn is more likely to result in losses that aren’t recoverable before an investor plans to withdraw that money.

However, in either case, investors need to do their research before investing in anything. Market volatility isn’t something short-term or long-term investors should ignore. Often, it’s best to look at a company’s ability to operate successfully even if economic conditions move in an unfavorable direction. That helps you determine if a stock is potentially undervalued, as those can be solid opportunities.

Just make sure to balance any investments with your risk tolerance. Additionally, don’t overlook the importance of diversifying. A diversified portfolio is typically more resilient, as losses in one area may be offset by gains in another. When in doubt, look for index funds or ETFs that offer inherent diversification, as those generally come with less risk.

 

Do you think that now is a good time to invest in the stock market, or do you believe that economic conditions aren’t ideal for investing? Do you traditionally try to take advantage of falling stock prices, or does your investing not change when the market fluctuates? Share your thoughts in the comments below.

 

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Here’s The Real Reason Used Car Prices Are Dropping

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Dropping Used Car Prices

Dropping used car prices are increasingly common, which is good news for anyone looking to get a different vehicle in the near future. In January, the average price for a used vehicle was $26,510, a $633 decline from the month prior. While that drop may seem modest, a few of the proceeding months also saw price reductions. Here’s a look at some of the real reasons why used car prices are dropping and whether additional price declines are likely.

Why Used Car Prices Are Dropping

New Car Supply Chain Issues Are Resolving

One of the main reasons that used cars became so expensive during the pandemic was the supply chain issues in the new car market. Fewer new cars were making their way to dealerships. As a result, people with an immediate need for a vehicle often had little choice but to consider used cars.

When more people began shopping for used vehicles, used car inventories also fell. Combine that will rising interest in previously owned vehicles, and prices rose incredibly quickly.

However, the new car supply chain issues are now resolving. While inventory levels may be lower in some areas than they were pre-pandemic, the situation is nowhere near as severe. Since that’s the case, people interested in new vehicles can focus on that part of the market, which may increase used car inventory availability to those who prefer previously owned vehicles in specific areas of the country.

Additionally, new car buyers may have a trade-in as part of the deal. When that occurs, the new car purchase creates an additional vehicle to add to the used market, which also benefits inventory levels.

Shifting Attitudes About Vehicles

The pandemic altered the car-buying landscape. Shelter-in-place orders and rapidly rising amounts of remote positions made vehicles less critical when compared to periods where work commutes were the norm and recreational trips were common. As a result, fewer people were interested in offloading the cars they currently owned and replacing them with newer models, as they weren’t as dependent on their vehicles and weren’t spending as much time in them.

Additionally, some people with paid-off vehicles weren’t necessarily inclined to get a different car during the pandemic. Often, getting a new or used car comes with an auto loan payment, something that isn’t always wise to add to a person’s plate during periods of economic uncertainty. Since these individuals weren’t selling or trading in as regularly, that also hindered used car inventories.

Now that the pandemic isn’t as much of a concern, people’s attitudes about car buying are shifting. Anyone who delayed a purchase with a trade-in due to the pandemic may reevaluate that decision, leading to more used inventory.

Rising Interest Rates

While rising interest rates can cause auto loans to become more expensive, they can also trigger price declines in the used car market. Dealerships understand that higher interest rates make financing a vehicle purchase less appealing. As a result, they have to reevaluate their pricing strategy to make used cars seem reasonably affordable.

Often, this results in dealerships dropping the price of their used cars. When the price is lower, the impact of higher interest rates typically seems less severe to auto loan borrowers. As a result, a smart price drop can stir up more demand, leading to more used car sales.

Are More Used Car Price Reductions Likely?

At this time, used car prices may or may not continue to fall in the coming months. Higher interest rates may incentivize dealerships to keep prices lower, using the reduction to draw in buyers who may otherwise be put off due to the higher financing costs. However, used car wholesale prices are actually on the rise, increasing by 4 percent during a two-week period in February.

Since wholesale prices went up, that can often lead to price increases at the dealership, as dealerships will want to offset as much of the additional spending as possible. But that’s not the only factor.

While used car inventories are increasing in some parts of the country, that rise in inventory levels isn’t necessarily universal. One factor that’s hindering the availability of previously owned cars is that many lessees during the pandemic opted to buy out their contract instead of bringing the leased vehicle back. Often, returned lease vehicles become part of a dealership’s used car inventory, so without those cars coming back, inventories are stymied.

Additionally, new fleet vehicle purchases declined during the pandemic. Again, fleet vehicles were previously traded in at dealerships with a reasonable amount of regularity, leading to used cars on lots. Since fleet vehicle activities changed, that also hinders the used car market.

How much of an impact those issues have on local used car availability varies, as the use of leases or the prevalence of fleet vehicle purchases differ across the country. Still, they could keep inventory levels broadly low enough that additional price declines become unlikely.

Is Now a Good Time to Buy a Used Car?

Ultimately, whether now is a good time to purchase a previously owned vehicle is a personal decision. Prices are falling, which is excellent news for those who need to replace an existing vehicle or acquire an additional car for their household either immediately or in the new future.

However, the current prices of used vehicles are by no means low. The pandemic and the situations it caused led to massive price hikes, and recent declines haven’t overcome those increases entirely. As a result, used cars still aren’t as affordable as they once were, so it’s critical to keep that in mind.

Additionally, rising interest rates are a factor. Ultimately, financing costs more today than it did before inflation made interest rate increases a necessity. Since that’s the case, interest rates could offset any value created by price reductions for those who need to finance.

Since that’s the case, aspiring used vehicle buyers need to look at all of the factors. That way, they can determine whether getting a previously owned car now makes sense in the context of their situation.

Do you know of any other reasons why there are dropping used car prices? Are you considering getting a car but want to see if prices will fall further? Share your thoughts in the comments below.

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4 Things To Know Before Investing in Comic Books

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Investing in Comic Books

Comic books have long been a part of the broader collectibles market, and many people choose to invest in them in hopes of securing future earnings. However, starting off as a comic book investor isn’t as simple as buying a random issue. Instead, you need to use the right strategy. Here are four things to know before investing in comic books.

1. Grades Matter

First, it’s critical to understand that a comic book’s grade – which is essentially a rating regarding its physical condition – is a crucial factor when establishing a particular comic book’s value. Technically, there isn’t an official cutoff for when a comic book is considered in investable condition. However, most people who invest in comics avoid anything with a rating below 7.5, and some focus solely on grades 9 and above, as they often have greater potential for returns down the road.

However, if you purchase a higher-grade comic, you need to ensure it’s stored in a manner that protects its rating. Getting them slabbed (put in a protective hard casing), keeping them in a dark space, limiting humidity exposure, and similar steps are often necessary. Some people go as far as keeping them in safe deposit boxes or fire and water-resistant safes for further protection.

2. Significance Is a Factor

There are many factors that impact the value of a comic, and one of the biggest is its overall significance. The first appearance of a beloved character, a critical turning point in specific stories, a shift in an artist’s approach, and similar factors can all play a role when it comes to desirability.

Additionally, specific characters are often considered more significant in the broader landscape than others. The same is true of works by particular artists or writers. In some cases, it’s simply a mark of popularity, though that’s not always the case.

3. Rarity Plays a Role

As one would expect, rarity influences the value of a comic book. Generally, those from the golden age of comics have higher value potential, mainly because there are fewer examples of them in great or excellent condition. Comics from the silver age also do well when it comes to value in many cases.

However, rarity needs to be balanced with desirability. Older comics that aren’t sought out won’t have the same profit potential as those with high degrees of demand. But if the purchase price is right, it’s worth considering older comic books, even if their appeal is more modest.  One thing to bear in mind is the condition.  A lot of comic books aren’t stored well, and as a result not be investible.  If they’ve been kept in polyethylene mylar, they should be fine.

4. Price Is Critical

As with all investments, you can’t overlook the initial purchase price. How much you spend acquiring a comic book impacts the financial equation, particularly since many sellers are aiming to get as much profit as possible.

When you’re determining if the price of a comic book is worthwhile, you need to consider how long you intend to keep it and how its desirability may change over time. Some comic books have proven long-term appeal, such as specific early editions of Superman. However, not all of them are as rare as others, so even comic books featuring popular characters from the golden era of comics aren’t guaranteed to end up with high value. That’s why research is essential, as it helps you determine if you’re getting a comic book for a good price.

Is there anything else you think people should know before investing in comic books? Have you invested in comic books and want to tell others about your experience? Share your thoughts in the comments below.

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Just Lost Your Job? Here’s 10 Things Not to Do With Your Severance Pay

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Severance Pay

In some cases, companies offer severance pay to laid-off employees. If you’re someone receiving severance pay or want to ensure you’re prepared should a layoff and severance pay come later, it’s wise to have a plan for the money. Otherwise, it may not last as long as you’d expect. As you create a strategy, here are ten things not to do with your severance pay.

1. Big Purchases

Generally, you shouldn’t use severance pay for a big purchase. Primarily, that’s because the money is meant to substitute for your income until you find a new opportunity.

Unless the big purchase is essential for living, such as replacing a broken down refrigerator that isn’t repairable with a reasonably-priced model, it’s better not to treat the cash as a windfall that you can use for luxuries. That attitude can cause you to splurge far more often than you may realize, causing your severance pay to run out fast.

However, if you’re talking about a genuine essential, you could potentially make a big purchase as long as you plan accordingly. Determine if you can reasonably survive on what remains until you find a job. If the answer is yes and you’re willing to stick to a strict budget moving forward, then the purchase is potentially supportable.

2. Small Splurges

In some cases, people feel like they deserve small splurges when they’re going through an emotionally challenging situation like a layoff. They view the purchases as a pick-me-up, hoping it will improve their mood.

The issue is that small splurges can often add up fast. For example, while paying $5, $7, or more for a coffee at a café may seem like no big deal on the surface, if you do it every day for weeks on end, that represents a lot of money.

If you do want to give yourself the occasional treat, work it into your budget. For example, you could allocate $10 per week for spontaneous splurges. Then, pull out the $10 in cash and only use that money for the small luxury purchase. Once that cash is gone, no more splurges until you get the next $10 the following week.

3. Lend the Money

Some people receive their severance pay as a lump sum, and it can be a large amount of money in some cases. As a result, people may believe it creates an opportunity to assist their nearest and dearest, particularly if the person they know is struggling financially.

However, lending the money comes with the risk of not getting paid back. As a result, if the person who borrows it doesn’t handle their side of the arrangement, you might find yourself falling short during a time when you don’t have other income.

Ultimately, lending money to loved ones is always risky, but it’s particularly dangerous during times of personal uncertainty. Since that’s the case, it’s better to avoid this entirely.

4. Risky Investments

When your regular source of income disappears, and you aren’t sure when you’ll get a new job, investing the cash might seem like a smart move. However, all investing comes with risk, and not all opportunities are created equal. There’s always a chance that an investment isn’t going to pan out, causing you to lose significant amounts of money.

Since financial distress can increase your odds of considering risky investments, as those may seem like they have the most growth potential, your chance of losses is high. As a result, it’s usually best to avoid investing your severance pay in hopes of quick growth, as you could suddenly find yourself without a source of income.

5. Ignore Taxes

Many people don’t realize that severance pay is taxable. Additionally, even though an employer usually withholds some of the money for taxes, it may be insufficient, depending on what’s listed on your W-4.

Additionally, the entire amount is taxable in the year you receive it. As a result, lump sums could mean owing more in taxes during one year than you’d expect. That’s particularly true if you’re shifted into the next tax bracket up.

If you’re receiving severance pay, understand that it’s taxed the same as normal income. Review your withholdings, determine if enough was set aside, and consider saving some of the severance pay to cover any tax shortfalls should they occur.

6. Calling It Spending Money

Generally, severance pay is a short-term income replacement. However, calling it “spending money” can cause you to adopt a potentially dangerous mindset. It may lead you to believe that spending every dollar is okay, even if that means not having an emergency fund to cover the unexpected.

While it’s true that using severance to cover expenses is fine, it’s also wise to save some for potential emergencies. At times, that may mean adjusting your budget and spending habits to live on less, at least until you find a new job to replace your income. But it’s an adjustment worth making, as it can ensure that you’re not in a tough spot if something unanticipated occurs.

7. Keep Your Old Budget

Even if your severance pay provides you with the same amount of income you had previously for several months, that doesn’t mean you should keep your old budget. Instead, it’s best to find areas where you can cut back. That way, if you don’t secure a new position before the period your severance pay covers ends, you still have some money available.

Ideally, you want to scale back as much as possible while still ensuring all of your obligations are met. Remember, any sacrifices you’re making are likely short-term, as you can move toward your old budget once you’re working again if the income amount is similar. Plus, if you end up in a job that pays less, you’ll have a potentially workable budget already in place, which could give you peace of mind.

8. Skip Health Insurance

When you’re laid off, you usually have the option to continue your health insurance. That’s because of the Consolidated Omnibus Budget Reconciliation Act (COBRA), which outlines requirements for employers to have pathways for terminated employees to keep their coverage for up to 18 months.

COBRA insurance will cost more out of pocket in many cases, as the employer doesn’t have to pay a portion of the premiums. However, declining health insurance puts you at risk. Any medical needs you have before you get a new job with medical coverage will have to be paid out-of-pocket, and that’s potentially far more costly than covering the higher premium. As a result, it’s better to take a close look at this option instead of assuming that skipping it is the right move.

9. Let Debts Get Behind

After a layoff, it’s potentially tempting to look for ways to put any required debt payments on pause until you have a new position. Many lenders do have programs that make that possible, but some do come with financial risk. For example, forbearance can let you skip some payments, but interest may continue to accrue on your remaining balance. As a result, your debt could grow surprisingly quickly depending on the terms.

With some lenders, you might have to pay make-up payments once the pause ends. In this case, you could find yourself owing several payments all at once, and that could throw your future budget way off balance or might increase your risk of default.

While it’s fine to use the various programs if you genuinely can’t keep up with your debts, it’s better to continue with payments if you’re able. That ensures you don’t accidentally accrue more debt through interest or find yourself in a bind later.

10. Not Getting Financial Advice

In some cases, using your severance pay seems simple. After all, you can generally treat it like income, using it to cover expenses and save for an emergency.

However, if you aren’t sure whether you’ll get a new job quickly or if the pay in a different position would at least match your last one, getting financial advice from a professional isn’t a bad idea. They can help you come up with a plan to stretch your severance pay to ensure it lasts as long as possible, giving you more wiggle room if finding a new opportunity proves more difficult than you initially expected.

Is there anything else that you think people should avoid doing with their severance pay? Do you have any tips that can help someone properly manage their severance pay? Share your thoughts in the comments below.

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