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What Are The Best Stocks To Buy Now?

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As an investor, one of the trickiest things to figure out is which stocks to buy and when. The holiday season and post-midterm climate alter the landscape a bit. Additionally, many companies are examining their year-end figures, with some exceeding recent expectations and others falling notably short. As a result, it’s hard to choose the right investments. If you’re trying to figure it out, here are some of the best stocks to buy now.

Best Stocks to Buy Now

Energy Stocks

Energy stocks are a potentially good choice as 2022 begins to come to a close. Oil profits are on the rise, and the midterms – which resulted in a split Congress – means new energy regulations are unlikely, which can help the broader energy industry succeed in the coming years.

Look at stocks in the oil, gas, and electricity markets. By doing some research, you can determine which options make sense based on your investment preferences.

Pharmaceutical Stocks

While many pharmaceutical stocks for companies that produced COVID-19 vaccines have slipped recently, they have ample potential for ongoing growth. As a result, looking at investments in this category could let you buy the dip.

Bank and Financial Stocks

Banks and financial companies are undoubtedly impacted by the current economic conditions, including rising interest rates and a potential recession. However, many major institutions are likely to weather the storm. As a result, you may have a chance to buy them for less, putting you in a good position if you’re looking to hold these investments and let them grow as economic conditions normalize at some point in the future.

How to Choose the Right Stocks for Your Portfolio

Ultimately, the stock categories above are only recommendations, and nothing is guaranteed. As a result, you should research any companies you’re considering and make sure they align with your investment strategy.

For example, short-term investors may need to approach things differently than long-term investors, as their goals are different. Similarly, risk-averse investors may have preferences that don’t make sense for those who are more growth-oriented.

In the end, you should never purchase any stocks based on a recommendation – regardless of the source – if they don’t make sense for you. Instead, let your strategy be your guide, ensuring your portfolio aligns with your needs and preferences.

Are there any other investments that you think should be on our “best stocks to buy now” list? Are you wary of purchasing stocks due to fluctuating economic conditions? Is a possible recession or ongoing inflation altering your investment strategy? Share your thoughts in the comments below.

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Here Are The Requirements For A Hard Money Loan

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Hard money loans are one of the more popular options for buying fixer-upper homes to renovate and resell for a profit. While there are alternatives available – such as using a traditional or renovation mortgage – hard money loans usually fund far faster and are less restrictive. If you’re considering a hard money loan for an investment property purchase, here’s a look at what hard money loans are and the typical requirements for a hard money loan.

What Is a Hard Money Loan?

Hard money loans are non-conforming financing options that are typically used to purchase commercial or investment properties. These loans aren’t available through traditional lenders like banks and credit unions. Instead, private companies or individuals may fund the loan.

As with a mortgage, a hard money loan is connected to the property, allowing the property to serve as collateral. However, they fund much faster – often closing within just a few days – and have less stringent requirements in many cases.

The interest rate associated with a hard money loan is commonly much higher than traditional lending alternatives. Additionally, the repayment term is far shorter. While mortgages usually have 15 or 30-year repayment periods, hard money loans may only allow a few years.

Since house flippers typically aim to renovate and resell an investment property quickly, the shorter repayment term isn’t inherently problematic. As long as the investment property sells within the repayment period, proceeds from the sale cover the cost of the hard money loan and any associated interest, and the investor keeps any remaining profits.

Hard money loans may also work for rental or commercial properties where anticipated income generation makes paying off the loan on time plausible. In this scenario, investors may aim to complete any required builds or renovations to ensure the property meets the livability or value requirements set forth by traditional lenders, giving them an opportunity to refinance the hard money loan into a typical mortgage upon completion.

Requirements for a Hard Money Loan

As with all lending products, the requirements for a hard money loan may vary depending on the issuing party. However, there are some more standard requirements that most borrowers will need to meet. Here’s an overview of the typical requirements for a hard money loan.

Sizeable Down Payment

Since hard money loans are usually riskier for lenders, the down payment requirements are commonly higher. For example, while mortgages may only require up to 20 percent, a hard money loan may have a minimum down payment requirement of 30 percent.

However, precisely how much the lender needs as a down payment does vary, including based on the borrower. If the borrower has a substantial history of repaying hard money loans on time through their investment projects, the lender may require a smaller down payment in comparison to what they’d expect from a less experienced investor.

The state of the property being purchased is another factor that may influence down payment requirements. Additionally, the buyer’s plans for the property could also play a role. For home flipping, local market conditions may cause down payments to rise or fall, for example.

Cash to Cover Fees and Insurance

Along with a down payment, buyers need additional funds to cover any associated fees or insurance needs in cash. This includes handling underwriting expenses, closing costs, and property insurance, at a minimum. Other fees may also be part of the equation, so investors should look at what the hard money lender specifically requires to ensure they have enough money to address these expenses.

Liquid Cash Reserves

Most hard money loans are used to purchase properties that require renovations or land for building a new structure. Since that’s the case, buyers need liquid cash reserves to successfully handle the project and meet any payment requirements for the hard money loan.

Generally, liquid cash reserves include money in savings or held in accounts where making withdrawals is simple and quick. As a result, the value of investment portfolios typically doesn’t qualify. Stocks, bonds, and similar securities aren’t inherently liquid, so their value isn’t factored into the equation. Similarly, the value of other held real estate doesn’t count since selling takes time.

Proof of Income

Along with a liquid cash reserve, many hard money loan lenders require proof of income. The goal is to ensure that the borrower has a reasonable amount of cash coming in from a source other than the investment property they’re considering. That way, the buyer has a way to cover the hard money loan payments should the project head in an unexpectedly negative direction.

Beyond proof of income, the personal finances-related requirements are minimal, if not non-existent. While a hard money loan lender may run a borrower’s credit, there typically aren’t credit score minimums. As a result, any credit checks typically focus on factors other than credit score, such as a history of defaulting on similar loans.

However, some hard money loan lenders forgo traditional credit checks entirely. Instead, they concentrate on income levels, current property values, and after-repair values. The property is acting as collateral, so as long as it has enough value to cover the loan with room to spare, that may be enough in some cases.

Suitable After-Repair Value

When considering a hard money loan application, lenders compare the current value of the property to its potential after-repair value. The after-repair value is based on the project the buyer presents, allowing the lender to estimate how much the property will be worth based on the improvements, location, age, local market conditions, type of property, and similar factors.

Generally, the bigger the difference between the current value and after-repair value, the more attractive the loan is to the lender. Larger differences provide a sort of cushion, as project overages or standard shifts in the market likely won’t eliminate all profit potential.

In most cases, it’s the after-repair value that determines the maximum amount a lender is willing to offer. Additionally, as a result, it also influences the required down payment.

A Clear Project Plan

Assessing the after-repair value isn’t possible unless there’s a well-outlined plan in place for the project. Often, aspiring buyers need to thoroughly outline the bulk of the project, including building or renovation schematics, material and labor cost estimates, anticipated timelines, and similar details.

The more comprehensive the plan, the easier it to for the hard money loan lender to understand the buyer’s vision and goals. Plus, a formalized plan shows focus and dedication, which can play in a borrower’s favor.

Solid Investment History

While having prior property investment experience isn’t required by all hard money loan lenders, it’s a must for some. However, even if it isn’t an explicit requirement for a hard money loan through that individual or company, having a solid investment history works in a borrower’s favor.

For example, a borrower who’s about to undertake their first flip is viewed as riskier than one that has a dozen successful flips under their belt. As a result, the latter may qualify for lower down payments or more favorable terms. Additionally, their odds of approval are generally higher.

For those with previous experience, providing an outline of past projects is wise. This is particularly true if the borrower can demonstrate a clear history of finishing on time and under budget, as well as securing post-update sales at or above the anticipated after-repair value.

However, even if a borrower has no investment property experience, that doesn’t mean they won’t get approved. Instead, they may simply need to do more due diligence to demonstrate they have a solid plan and enough cash reserves to handle everything that’s involved. That strategy gives the lender more peace of mind, which may make them open to a higher degree of risk.

A Reputable Hard Money Loan Lender

Technically, finding a reputable lender isn’t a requirement for securing a hard money loan. However, it’s essential for borrowers who want to avoid predatory lenders.

Predatory lending takes many forms, but it all typically involves unfair loan terms designed to rob borrowers of equity or make seizing properties easier. Some consider all hard money loans inherently predatory, as they usually involve higher interest rates and challenging fee structures. However, that likely isn’t universally true.

Borrowers should perform some due diligence when considering lenders. Compare interest rates and fee structures. Examine the lender’s reputation. Speak with others who used the company for hard money loans. Also, make sure to read the entire loan agreement and have it reviewed by an attorney.

A Big Dose of Reality

While being realistic also isn’t an inherent requirement for getting a hard money loan, it’s nonetheless critical. The borrower needs to be honest with themselves about their financial situation and the viability of the project. It’s easy to underestimate repair costs, particularly since some issues aren’t always visible until work is underway. Having a sizeable financial cushion that can address overages created by unseen problems is, therefore, essential.

Additionally, getting accurate data about material and labor costs is a must. Being realistic about the timeline and potential shifts in the local market is similarly critical. Otherwise, even experienced property investors may end up over their heads.

Ultimately, it’s best to consider a big dose of reality to be one of the requirements for a hard money loan. That way, borrowers don’t move forward based on an overly optimistic perspective only to find themselves in trouble once the project is underway.

 

Do you think the requirements for a hard money loan make sense? Have you used a hard money loan previously and want to tell others about your experience? Do you think that hard money loans are too expensive to be wise options? Share your thoughts in the comments below.

 

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What Is The Cost Of A Gut Renovation?

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When you own a home and want to remodel, the idea of tackling a gut renovation is often appealing. Getting down to the studs allows you to update every aspect of the home. You can easily replace plumbing, electrical, and HVAC components. At times, you can even move walls, vault ceilings, and otherwise, adjust the layout. Plus, you can redesign the entire space to meet your needs and match your stylistic preferences. However, gut renovations are expensive. Here’s a look at the cost of a gut renovation.

What Is the Cost of a Gut Renovation?

Technically, the cost of a gut renovation can vary depending on several factors. The size of the home, the number of stories involved, the required systems updates, and the nature of any repairs are factors. Whether hazardous materials – like asbestos or lead paint – are present impacts pricing, as well as changes like moving walls and vaulting ceilings.

The finishes you choose for the new design also matter. Higher-end flooring, cabinets, hardware, and other finishing items come with bigger price tags, boosting the total cost.

Additionally, your location plays a role in the cost. The prevailing wage for contractors and construction workers varies from state to state and city to city, and the same is true of materials. As a result, you may pay more or less than others with similar properties if you’re in a higher or lower-cost area.

With that in mind, the average cost of a gut renovation usually falls in the $100,000 to $200,000 range. Just bare in mind that your property could cost more or less, depending on the factors listed above and other details.

How to Estimate the Cost of a Gut Renovation

In most cases, estimating the cost of a gut renovation is challenging, typically because certain issues aren’t revealed until the entire structure, and underlying systems are exposed. Additionally, unless you’re in the construction industry, you might not know material costs in your area, how much specific structural changes usually run, or all of the required steps to make your vision a reality.

As a result, it’s often best to map out your gut renovation. Outline every room that’s involved, the features or finishes you want, and any structural adjustments. Additionally, for structural changes, get a formal building plan in advance, preferably one that’s created by an engineer or similarly licensed professional.

After that, present your project to several capable, licensed, and insured contractors in your area. Meet with them to discuss your vision and answer any questions they may have about the project or plans. Additionally, learn more about their capabilities. Then, request official quotes.

By getting several quotes, you can gain insights into prevailing rates in your area. Just make sure every estimate includes details about contingency funds, as that money helps deal with the unexpected. It’s also wise to follow up and see what sorts of situations may make the quote inaccurate, such as the impact of shifting material prices during the renovation period.

Compare the quotes line by line, as some contractors may include steps, features, or services that others don’t. Additionally, don’t default to the lowest bid, particularly if it’s far below the others, as that could indicate the contractor overlooked a critical part of the project or lacks the necessary experience to offer an accurate estimate.

Factoring in the Hidden Costs of a Gut Renovation

While contractors can often provide reasonably accurate bids for your project, the cost of the renovation itself isn’t all you’ll contend with during the project. With a gut renovation, living in your home while work is underway may not be an option. Along with being uncomfortable, there are potentially laws that make it illegal. As a result, you may need to find a place to stay for several months.

Living in another location can come with a range of expenses. It may alter your commute times to work, require you to drive more so that you can visit your home, pay utilities on two properties, have insurance for two properties, and more.

Plus, a gut renovation usually means you need to store all of your belongings. This could make adding and securing sheds in your backyard a must, or you might need to rent a suitable storage unit or temporary options like containers from a company. Depending on how much you own and how long the renovation takes, this adds up quickly.

Even if you’re able to live in the house, you could see expenses increase. For instance, when your kitchen is torn out, cooking may not be an option. As a result, you may rely more on dining out or food delivery, which is typically more expensive.

Plumbing Updates

If your plumbing is getting updates, you might not have access to clean water at home. With this, turning to bottled water might be your only option, and that’s far more expensive than what comes from your tap.

Consider how the gut renovation will impact every aspect of your life. That way, you can identify and factor in potential hidden costs that increase the price tag of the total project.

Are you surprised by the cost of a gut renovation? Have you tackled a gut renovation and want to tell others about your experience, including unexpected expenses you encountered that threw off your budget? Share your thoughts in the comments below.

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7 Weird Things You Can Sell Online

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Most people know that the internet can be a wild and crazy place. Since it’s so accessible and diverse, it also creates opportunities for sellers who want to make a profit off of something unconventional, unexpected, or outright bizarre. Selling weird stuff online is often big business. Here’s a look at seven weird things you can sell online and why people are buying.

1. Foot Pictures

Many people are generally aware that foot pictures are sold online, and some may even joke about using them as a way to earn extra cash. In reality, this marketplace is vast, and some people can make a surprisingly solid living by selling pictures of their feet online.

Primarily, these sales go to members of the foot fetish community. Within the body part fetish community, foot fetishists are the most common outside of the more sexual body parts.

The foot fetish community also has varying interests when it comes to what they like to see in foot photographs. Some may prefer more elegant options, while others actually enjoy foot pictures where the feet are noticeably dirty. A portion prefers well-manicured feet with smooth soles and painted toenails. Others favor a more everyday, natural look.

While the bulk of the community seems to prefer images of women’s feet, there are also foot fetishists interested in pictures of men’s feet. As a result, anyone with good-looking feet could potentially make money online by selling pictures.

2. Breastmilk

Some people may be surprised to learn that selling breastmilk isn’t technically illegal. However, it’s an unregulated marketplace, and it isn’t a product that people can sell just anywhere. As a result, sellers have to turn to marketplaces that allow those kinds of sales.

There are two primary reasons why people are willing to buy breastmilk. First, parents with a newborn who are either unable to provide breastmilk themselves or have low supplies may decide to purchase breastmilk for their infant. The main driver is that research shows that breastfeeding newborns provides benefits that aren’t necessarily achieved with formula or similar alternatives. As a result, they decide to buy breastmilk to ensure their infant gets what’s recommended.

Second, breastmilk does have a fetish community associated with it. Precisely what a fetishist may do with the breastmilk can vary. Consumption by an adult may come with this territory, though that isn’t universally the case.

3. Long Hair

For anyone with long hair who’s considering making a change and cutting it short, you may be able to turn your long locks into cash. Several marketplaces will purchase hair to make wigs. Others buyers might use the hair to create something else, such as art, dolls, and more.

Generally, this isn’t something a seller can do often, as the time required to grow their hair long enough to make it sellable is significant. Additionally, there may be rules about the condition of the hair. For example, sites generally offer more for “virgin” hair – which usually means hair that’s never been dyed or subjected to chemical processes like chemical hair straightening or bleaching – as it’s typically more resilient.

Usually, these online marketplaces work one of two ways. Some sites essentially serve as the buyer, allowing sellers to describe their hair and receive a quick quote. Others let people place ads to sell their hair, giving you the ability to potentially set your own price or receive a better offer than the alternative provides.

4. Used, Unwashed Socks and Undergarments

While the idea of selling used, unwashed socks and undergarments seems odd to most, there’s actually a reasonably thriving market. Mainly, members of specific fetish communities are interested in these items, and the price they’re willing to pay often goes far beyond the cost of the attire and shipping.

The market also isn’t inherently limited to used socks and undergarments. Some fetishists may be interested in well-worn shoes. Others may enjoy unwashed workout shirts, shorts, or pants.

The exact condition a buyer wants in a used, unwashed clothing item can vary. As a result, some people selling in this marketplace focus more on creating custom orders. That allows them to wear the item until it meets the buyer’s exact preferences before shipping it to them. How these arrangements work may also vary, as some custom sellers will require an initial deposit – essentially covering the cost of the item and some compensation for their time – and take the rest of the payment once the item is ready to ship.

5. Company Online

Often referred to as sugar babies, some younger adults make money online by sharing some of their time with someone in a social context. Usually, the payer – known as the sugar daddy or sugar mommy – is wealthy and has the desire to spoil someone they find worthy and attractive. As a result, the compensation may take the form of cash, gifts, and more.

While many sugar-style relationships do have in-person components, with the sugar daddy or sugar mommy taking the sugar baby out on dates, on vacations, and to similar destinations, that isn’t always part of the arrangement. Often, the sugar baby has a significant amount of say when it comes to setting boundaries, and some prefer to keep the relationships physically distanced.

6. Toilet Paper Rolls, Paper Towel Rolls, Wine Corks, and More

Toilet paper rolls, paper towel rolls, wine corks, and similar items sell online because they’re popular for a variety of crafts. As a result, essentially anyone can gather theirs up and create a listing on online marketplaces like eBay to try and find a buyer.

Since these items are generally low-cost, they don’t sell for any incredibly high amount, even in large quantities. However, since these are items you’d typically throw away if you have the space to store them and the time to manage a listing, it could let you make money instead of sending these off for recycling or to a landfill.

Generally, you’ll be more successful if you can create a reasonably sized lot. For example, selling 50 toilet paper rolls may be easier than selling ten.

7. Oversized Pine Cones

Another item that’s popular with crafters is pine cones. Demand is particularly high when the winter holidays are coming up, as pine cones are widely used for wreaths and similar seasonable décor.

Generally, you’ll have more success if the pine cone is in excellent condition and fresh. Plus, they need to be larger than you typically find – typically coffee cup-sized or bigger – and pretty uniform in appearance.

When it comes to selling them, you have two choices. For large – but not massive – pine cones, you may have more success if you can sell multiple pine cones in a bundle. If the pine cone is gigantic, coming in closer to the size of a wine bottle, then you may be able to sell it as a single.

Do you know of any other weird things you can sell online for some fast cash? Have you tried selling weird stuff online and want to tell others about your experience? Share your thoughts in the comments below.

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5 Common Investing Mistakes

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Many people wonder, “What are common mistakes people make when investing?” Regretfully, missteps happen often, and some of them are incredibly costly. Fortunately, by knowing what they are, it’s easier to avoid them. Let’s look at the answer to the question,”What are common mistakes people make when investing?” By answering this question, we ensure you don’t make them.

5 Common Investing Mistakes

1. Failing to Diversify

Putting all of your eggs in one basket is incredibly risky when you’re investing. If you focus solely on a single company – or even a single sector – you may see the value of your portfolio tumble when specific market conditions occur.

Often, a lack of diversification is more likely to be an issue with new investors who are just getting some footing with their portfolios. If you don’t have a lot of money to commit, you may be limited to just a few investments initially. As a result, diversification is inherently harder to capture, especially if you’re buying individual company stocks.

If you want to boost your level of diversification quickly, consider mutual funds and exchange-traded funds (ETFs) instead. Unlike individual stocks or bonds, mutual funds and ETFs actually represent a range of investments that are associated with the fund. As a result, there’s an inherent degree of diversification built into the investment.

When you explore mutual funds and ETFs, you’ll find a wide variety of options. Index funds aim to include assets that represent the broader associated market, so they can be excellent places to start. However, you’ll also find mutual funds and ETFs that target specific sectors or groups of investments that align with a single concept, which may or may not be industry-limited.

Consider starting with a few different mutual funds or ETFs to get the ball rolling. Then, you can examine other investment options after your diversified portfolio is a bit established.

2. Being Glued to Market News

Generally, it’s wise to remain informed about the market when you’re investing. Similarly, you’ll want to research any potential investment before moving forward, allowing you to determine if it aligns with your strategy and risk tolerance.

However, constantly monitoring the markets isn’t typically a good idea for the majority of investors. It’s easy to get swept up in the fervor, which may prompt you to make decisions you normally wouldn’t in regard to your investments.

Plus, not all market news is entirely unbiased. For example, some media personalities operating in this space may have an incentive to push an investment if they’re heavily involved with a particular stock. Even if they aren’t aiming for personal gain, that attachment may skew their view.

Instead, look to limit your consumption of market news, going with enough viewing or reading to stay informed but not so much as to track the market in real time. Additionally, if you learn about an investment with potential or are wondering if conditions make shifting away from an investment wise, do some additional research. Focus on unbiased sources that use a neutral approach to news delivery, as those are less likely to impact you emotionally, allowing you to make smarter decisions.

Similarly, resist the urge to constantly check the value of your portfolio. Market fluctuations are common, so the value is going to rise and fall regularly. What matters is sustained growth. In most cases, investing is a marathon, not a sprint, so keep an extended time horizon in mind and focus on the bigger picture.

3. Relying on Social Media for Investment Advice

While social media platforms can carry news from legitimate sources, it’s critical to be wary of investment advice coming from accounts not associated with unbiased information. First, social media accounts don’t know about your financial situation, so any recommendations aren’t targeted to your circumstances. That alone should give you pause.

Second, social media influencers may be compensated by companies to promote specific investments, either by directly recommending an asset or indirectly by increasing the visibility of an asset or company. While social media influencers are supposed to disclose when they’re compensated, it doesn’t always happen. Even if it does, you have to notice the disclosure, and it may get buried within the post depending on how it’s presented.

As with all investment advice, you shouldn’t move forward without digging into the asset or company yourself. Assess its viability and decide if it aligns with your investment strategy. Also, analyze the amount of risk, as an endorsement doesn’t mean it’s a safe bet.

4. Focusing on Trends When Choosing Investments

In some cases, unique conditions occur that bring a particular investment to everyone’s attention. The GameStop stock rise in January 2022 is a prime example, and there are several cryptocurrencies that have seen meteoric rises over the short term. However, these upticks may not last, particularly since the buying activity can shift to a sell-off relatively quickly.

What’s important to remember is that a trend isn’t necessarily an indication that an investment has long-term merit. The GameStop stock rise wasn’t about the value of GameStop; it was a movement designed to show the power of small investors, allowing them to impact massive institutions. Essentially, it was about making a statement.

With cryptocurrency, trends can occur for a variety of reasons. While some may be based on the increasing validity of a particular coin, others may be scams. For example, pumping and dumping isn’t exceedingly rare within the altcoin landscape, and if the news travels through the right channels, investors of all kinds can get caught in the wave.

Often, trends create a fear of missing out, essentially invoking an emotional response in investors who worry they’ll fail to capitalize on these rapid upticks. As a result, it’s crucial to take a breath and do some research. Determine if the trend genuinely represents long-term potential or if it’s spurred by something else. Additionally, assess whether the investment fits with your overall strategy and risk tolerance. Ultimately, if you have doubts, it’s usually best to focus your investing on other assets.

5. Trying to Time the Market

Generally speaking, timing the market doesn’t work for long-term investors. First, getting the timing exactly right is almost impossible. No one knows precisely what an individual stock or broader market is going to do from one day to the next, so you can’t predict the precise moments prices will hit their lowest point.

Second, trying to time the market can lead to inaction. You’re essentially holding money outside of the market, waiting for the perfect moment. Even if it’s in a high-yield savings account, you’re potentially missing out on much better returns.

Bonus Tip: Invest What You Can When You Can

In many cases, your best bet is to invest what you can when you can. Whether that means committing a lump sum all at once – such as turning your tax return into a source of funds for investing right when you receive it – or using a dollar-cost averaging approach where you invest using a specific amount from every paycheck, you’re creating opportunities for long-term growth.

Plus, moving forward ensures that you don’t wait so long that you never invest. Even if some of your investments are made when the market is high, it’s important to remember that the markets generally trend upward when you look at the activity over years and decades instead of weeks or months. As a result, occasionally buying at a high point today doesn’t mean you don’t have growth potential, so keep that in mind.

Can you think of any other common investing mistakes people make? Did you make any of the missteps above and want to tell others about the experience? Do you have any advice for new investors? Share your thoughts in the comments below.

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What Is The Cost of Living In Key West?

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For many people, moving to Key West would be a dream come true. However, if you don’t live nearby, you may worry about whether the area is affordable. After all, living in a beach town typically comes with a price tag. If you’re trying to figure out if Key West is affordable for you, here’s a look at the cost of living in Key West.

The Cost of Living in Key West

Generally speaking, the cost of living in Key West is high. It’s a small beach community and a highly desirable area. Plus, as an island and based on its location off the southern tip of Florida, transporting goods into the region can be expensive, leading to higher prices when shopping.

As a result, prices for nearly everything are above the national average. Here’s a closer look at the cost of living in Key West broken down into categories.

Housing

When it comes to housing, you typically have to choose between buying and renting. Purchasing a home in Key West is quite costly. As of October 2022, the median sale price of a property came in at $917,500, which could make buying a budget-buster for many.

If you’re interested in renting, that also comes with a big price tag. A one-bedroom apartment typically runs $2,413 per month, while a two-bedroom can cost $4,400 per month.

When it comes to homeowner’s or renter’s insurance, you may see higher rates. This is particularly true since adding hurricane coverage is often viewed as a necessity.

Food

When it comes to food, the overall cost in Key West is approximately 5 percent above the national average. That puts it in line with cities like Miami, though it may not be high enough to completely derail your budget.

Transportation

Transportation costs about 10.7 percent more in Key West. In some cases, this is because it’s a smaller island, so there’s limited access to options, which can reduce competition. Additionally, bringing new vehicles to the area potentially costs more due to the location, and those expenses can be passed on to the buyer.

Gas prices are also higher in Key West than in many other parts of Florida. Due to the island’s location, you may also see higher auto insurance rates, depending on where you’re coming from, and you might need to add specialized coverage for hurricanes and similar natural events.

Healthcare

In Key West, the cost of healthcare is about 13.2 percent above the national average. Again, this is partially based on limited access, as fewer medical facilities can lead to higher costs.

Taxes

In Florida, there is a base statewide sales tax set at 6 percent. However, cities and counties can add to that, pushing this cost up. For Key West, that leads to a sales tax of 7.5 percent on most purchases.

For property taxes, a recently passed increase would set the tax rate at $2.14 per $1,000 of assessed home value. However, that may not take into account certain deductions or exclusions, so keep that in mind.

Utilities

While the utility rates themselves aren’t necessarily bad, your utility spending may go up if you move to Key West. The area frequently experiences high temperatures, and the costs of cooling can add up quickly. While the difference is less dramatic if your home is well-insulated and has a modern, efficient HVAC system, it can still be quite spendy when compared to other regions.

Does the cost of living in Key West surprise you, or do you think it makes sense based on the location? Do you consider the cost of living when choosing where to live or retire, or is it not a major concern? Share your thoughts in the comments below.

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My Company Offers A Standard 401(K)-What Does That Mean?

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  • the standard 401k

 

When you’re starting with a new employer, you typically get access to a range of benefits. When it comes to retirement plans, many companies offer employees a standard 401k. If you haven’t had a 401k before, you may be wondering what a typical one involves. Here’s a look at the standard 401k, including what it is, how it works, and the benefits it can provide.

What Is the Standard 401K?

Technically, there isn’t a “standard” 401k, as every company’s plan can differ to a degree. However, the most common offering is a traditional 401k.

A traditional 401k is an employer-sponsored retirement plan that provides employees with a selection of investment options. That can include stocks, ETFs, mutual funds, or similar types of assets, though the exact ones available do vary between retirement plans.

Employee contributions are taken directly from their paychecks, making it easy to save for retirement. Additionally, they are pre-tax. You don’t owe income taxes on the amount you send to the retirement plan immediately. Instead, you’ll pay taxes on withdrawals.

How the Standard 401K Works

A standard 401k allows employees to set money aside in a retirement-specific investment account. In many ways, it functions similarly to investing outside of a retirement account. Often, you can select from a variety of stocks, bonds, ETFs, or mutual funds. Additionally, you can usually adjust your allocations over time, though there may be limits on the types of changes you can make.

Once a contribution is made, the requested assets are acquired. Then, those investments will grow or shift over time. While most increase in value over the long-term, economic conditions that cause stock market downturns will impact 401k portfolio values. As a result, the total value of the retirement account will fluctuate, though they generally trend upward.

Once you reach retirement age, you can make withdrawals without incurring any financial penalties. However, those withdrawals do trigger tax obligations, as that money is treated as income by the IRS.

Early withdrawals are potentially an option, but they can trigger a financial penalty depending on how the funds are used. Plus, taking money out early means missing out on future gains, so it’s best to wait until your retirement whenever possible.

The Benefits of the Standard 401K

Aside from being a simple way to set money aside for retirement, a traditional 401k comes with many other benefits. As mentioned previously, contributions can come directly from your paycheck, making it easier to set money aside. Additionally, the contributions are pre-tax, so they can reduce your current tax burden.

In many cases, employers also offer contribution matches with their 401k plans. With these, the company contributes up to a certain percentage of your income, based on the amount you’re contributing. In many ways, this is functionally free money that boosts the value of your portfolio. However, as with your contributions, you do have to pay taxes when you withdraw the funds during your retirement.

If you leave your employer, you may also have options about what happens to your 401k. Some companies may allow it to remain where it is, though that isn’t universally the case. Plus, you can often roll the account over when you exit, transitioning the funds to another retirement account instead. In some cases, that means you can convert a 401k into an IRA if you prefer.

Can You Opt-Out of a Company 401K?

In most cases, opting out of an employer-sponsored 401k isn’t ideal, particularly if the company offers matching contributions. However, if you prefer to invest for retirement on your own or need to pause your contributions due to a financial hardship, that’s usually an option.

Speak with your employer’s human resources department to explore the paths you can potentially take. They’ll be able to let you know whether pausing contributions or opting out entirely is possible and can help you assess the impact of that decision. That ensures you can make a sound choice before moving forward, allowing you to ensure you don’t experience any unexpected consequences.

Do you have one of the standard 401K options through an employer and want to tell others about your experience so far? Do you wish you had access to another kind of retirement plan, or is the 401K working for you? Share your thoughts in the comments below.

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Why Does Carvana Offer Better Deals Than Car Dealerships?

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When you’re shopping for a new car, finding the best possible deal is a common priority. As a result, most buyers turn to a variety of resources. Along with heading to local dealerships, many check out Carvana cars to see if the pricing is better, often being pleasantly surprised by what they find. However, it’s easy to assume that an excellent price isn’t what it appears. Fortunately, it can be the real deal. Here’s a look at why Carvana offers better deals than car dealerships.

What Is Carvana?

Carvana is a non-traditional car dealership that focuses on used cars. It was founded in 2012 and captured ample attention after installing car vending machines in several major cities.

The company focuses on online sales over a traditional dealership model. Along with the car vending machines for picking up a car after buying it, Carvana will deliver your recently purchased vehicle to your home if you prefer.

In many ways, Carvana is a leader when it comes to convenience. Fewer operating models make a used vehicle purchase quite as streamlined, which is why it’s become such an attractive option.

How Carvana Works

Primarily, Carvana operates in the used car space. They focus on high-quality but affordable vehicles, mainly targeting Millennials by introducing unique technologies and ample convenience.

Car purchases through Carvana are predominately handled online. Since that means buyers can’t see a vehicle in person before making a buying decision, the listings are highly detailed. Along with a slew of photos, you’ll see information about the specs and the results of Carvana’s in-house inspection. Additionally, you’ll be able to review photos that show any flaws the company discovered along the way, leading to reasonable transparency.

Another feature of Carvana that is designed to offset the risk of not being able to check out the vehicle in person is the return policy. Buyers have seven days to make sure the car is right for them. If not, they have the option to return the vehicle and get their money back.

If you find a car you’re interested in, you can begin the purchase paperwork with a few clicks. However, if another buyer has already started the paperwork for that vehicle, you’ll get a notification that the car is temporarily on hold, along with a timer that shows how long the other buyer has before the vehicle is released for sale again.

The purchase dashboard is pretty straightforward. You provide personal details, information about trade-ins, and delivery and pickup preferences. You also tell the company if you’re using a loan or cash to complete the purchase or even arrange financing through the application. Overall, the entire process takes between 10 and 20 minutes in most cases.

Why Carvana Has Better Deals Than Dealerships

First, it’s important to note that not every vehicle at Carvana is automatically the lowest price you can find. The pricing is based on several factors, and there are instances where you may be able to score something a little better by looking elsewhere.

However, Carvana generally comes out ahead. One main reason is that you don’t end up paying certain dealer fees along the way. Instead, Carvana doesn’t pass certain paperwork filing costs onto the buyer.

Second, this approach to selling vehicles eliminates certain employee-related expenses. They aren’t paying salespeople to be on the lot, and they don’t owe them commissions. The latter part impacts pricing in two ways. Along with lowering Carvana’s operating costs, it means buyers aren’t haggling with someone whose pay is dependent on convincing you to pay a bit more.

Third, Carvana doesn’t operate as many locations as some competitors with similar purchase models. That reduces its overall overhead, making it easier to undercut competitors by several hundred dollars on most cars.

Finally, Carvana does give you an easy way to trade in your current vehicle, but it isn’t necessarily offering you the best price. This may come as a surprise, considering some people using the site have seen unexpectedly high offers recently. However, that isn’t reflective of Carvana. Instead, that’s simply the state of the used car market.

By purchasing cars for as little as possible, Carvana can then sell them below their fair market value and still snag a tidy profit. The trick is that it’s the lower sales prices that draw people in, not the trade-in or cash offer prices. As a result, they hope that buyers with a vehicle to unload will simply accept the lower price because doing so is incredibly convenient.

Should You Use Carvana to Buy a Car?

Generally, there’s no reason not to consider Carvana when you’re purchasing a vehicle. Most customers say that you can expect great customer service if you need help. Plus, the pricing is based on avoiding negotiations, so even if you have to call the company, they aren’t going to pressure you into higher-priced options. The price on the website is what it is, and that’s that.

The purchasing process itself is reasonably simple and quick, too. If you look at financing options through Carvana, the rates are typically competitive as well (though it’s still a good idea to comparison shop). It’s also hard to beat the option to have your car delivered to your front door, and if you aren’t satisfied, you can arrange a return during the initial seven days for any reason and get your money back.

However, if you have a trade-in or a vehicle you’d otherwise like to sell, Carvana isn’t going to give you the best price. Since that’s the case, you may need to explore other options. Fortunately, there are plenty available, including many you can handle online to get quick cash offers. While it may take more effort than having Carvana pick it up, the significant price difference could make it worth the extra time.

Carvana Cars May Not Have Comprehensive Inspections

Additionally, while Carvana does an inspection before it sells a vehicle, understand that it isn’t always as comprehensive as what you’d get directly from a mechanic. Since that’s the case, get your own inspection right away. Then, if they spot a problem that you don’t want to mess with, return the vehicle to Carvana during that seven-day window and get your money back.

Finally, Carvana may not work for you if you aren’t sure what you want. Remember, there are no test drive options when you shop and buy online like this. The only way to get in and check out the vehicle is to buy it, and while you can return it within seven days, that’s a big step for a test drive. As a result, you may be better off going another route or, at least, doing some research before you head to the Carvana site, allowing you to figure out what you’re after first.

Have you purchased from Carvana and want to tell others about your experience buying Carvana cars? Did you consider using Carvana but decided to go in another direction and want to discuss why? Share your thoughts in the comments below.

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Can I Move Out Of My Parent’s House With No Money?

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How To Move Out With No Money

Figuring out how to move out with no money isn’t easy. In many cases, moving comes with some significant expenses. For example, there are deposits required when you rent an apartment. Additionally, you’ll need to have a way to get your belongings to your new place, as well as pay your bills moving forward. However, that doesn’t mean that you can’t move out of your parent’s house with no money. Here are some options that can help you make it happen.

Start with a Budget

Even if you don’t have any savings to support your move, you may be able to make it work, depending on your income. Create a budget that outlines your current expenses. Next, add in costs you’d need to handle once you move, including rent payments, utilities, renter’s insurance, groceries, and similar expenses. Usually, you can find the average cost for those expenses in your area with a bit of research.

Once you know what you’ll need to cover, compare that to your income. That lets you see if you can potentially afford to move out, as well as if you have room in your budget to start saving for deposits and moving expenses.

Focus on Low-Cost Rentals

While you may have visions of having a luxury apartment, if you don’t have any money set aside, you’re going to need to start out in a low-cost rental. This might include small studio apartments or roommate arrangements.

With the latter, you may be able to save a bit more on your move. For example, if a friend has a room they’re willing to rent – and the landlord allows it – you might not need to cover security or utility deposits. Even if you do have to contribute to a security deposit, what you’d need to pay could be far less than if you moved out on your own.

If you need to move out as quickly as possible, you may be able to talk to other family members or friends to see if you can stay with them for a short period while you get on your feet. However, you do need to have a frank conversation to ensure everyone’s on the same page regarding how this plays out. Additionally, it’s best if you can show a concrete plan – including a timeline – that lets them know when you’d be ready to move into your own place.

Sell Your Excess Stuff

If you want to reduce the cost of your move and give yourself a little cushion, sell any personal belongings that aren’t essential. While it could mean living a little sparsely initially, it lets you get a bit of cash that you can use to cover transporting your other property to your new place, handle security deposits, or build up a small emergency fund to make sure you’re ready for the unexpected.

Secure or Maintain a Source of Income

When you don’t have a financial buffer, maintaining a source of income is essential if you’re going to move out of your parent’s house. Ideally, you want something reliable and reasonably consistent, especially if you want to rent a place on your own. Otherwise, you may have trouble meeting the income requirements for the rental.

In some cases, you may want to supplement your core income, as well. Options through the gig economy can be excellent ways to bring in a bit more money. Plus, if you start before you move out, you may be able to build up some savings to support your move.

Live within Your Means

Living within your means is crucial if you don’t have a financial buffer. Make sure you keep your expenses as low as possible and focus on saving before you move and after you transition into your new place. An emergency fund provides you with some security, so it’s crucial to build one as fast as possible.

While this can mean forgoing niceties for a while, it’s a sacrifice worth making if moving out is important to you. So, focus on keeping your expenses down and stash as much cash as possible. That way, you’ll increase your odds of success.

Do you have any other tips that can help people figure out how to move out with no money? Did you manage to move out on a dime and want to tell others about your experience? Share your thoughts in the comments below.

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How Much Cash Should I Have In My Wallet?

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Today, carrying cash in your wallet can feel a bit antiquated. However, that doesn’t mean it isn’t a good idea to have some bills tucked away, just in case they become a necessity. If you’re wondering, “How much cash should I have in my wallet?” here’s what you need to know.

Why Should I Carry Cash in My Wallet?

One reason that carrying cash feels a bit old-school is that there is a slew of more modern payment options. Various technologies have made alternatives plentiful, allowing you to avoid hassles like going to the bank and speaking with a teller or using an ATM to get enough cash to pay for purchases.

Debit cards, credit cards, and mobile payment apps are generally more convenient, and many people rely entirely on them. At times, these other options also carry less risk. If you drop your cash by mistake, there’s little recourse if you can’t find it. With cards or phone-based options, you can shut the cards or accounts down temporarily, safeguarding your money until you get a new card or can replace your phone. Plus, you can dispute charges on a credit card if you didn’t make them.

In many ways, it may seem like the alternatives are naturally better choices. The issue is that they don’t always work. Here are some times when cash is a must.

Technical Issues

Stores can have technical issues that prevent card readers from working. Similarly, a tech problem might prevent phones from connecting to registers using near-field communication (NFC) technologies, stopping payment methods like Apple Pay or Google Pay from going through. Here, without an alternative form of payment like cash, you can’t complete a purchase.

Not Accepting Cards

While it may seem odd, not all merchants take cards. Generally, it’s rare that a retailer wouldn’t take some form of electronic payment, but some businesses do operate as cash-only for payments. This is more common if you’re not heading to a traditional brick-and-mortar store.

For example, if you want to eat at a food truck or are heading to a craft fair, your odds of a payment issue are higher. That means that, without a bit of cash, you may miss out on what a cash-only business has to offer.

Not Accepting Your Card

Similar to the point above, some retailers take specific card types but not others. This issue is more common with Discover and American Express, but it can technically happen with Visa and Mastercard, too. Without some cash available, you may not be able to complete necessary purchases. As a result, having a little money in your wallet is a wise choice, safeguarding you from the expected and ensuring you can access any retailer you’d like to use.

How Much Cash Should I Have in My Wallet?

When it comes to the amount of cash a person should have in their wallet, there isn’t a specific magic number that works for everyone. Instead, you need to consider the broader situation, allowing you to find a figure that’s right for you.

On a day-to-day basis, having about a day’s worth of typical spending cash is enough. For example, that might involve enough cash to put gas in your car to get to work, cover tolls or parking fees, and pay for a meal or two. For many people, that works out to $100 to $200, though some may be able to get away with a bit less or might require a little more.

If you’re heading out to an event – such as a fair or swap meet – then you may want to carry your full spending budget in cash. While many retailers that travel with events do accept cards, your odds of running into a few that don’t are high.

When you’re carrying a more considerable sum, don’t keep all of it in your wallet. Instead, consider splitting it up, putting some in your wallet and the rest in a concealed money belt. That way, if you drop your wallet, you don’t lose everything. Plus, many money belts are designed to prevent you from becoming a victim of pickpocketing, and they’re usually quite comfortable to wear.

How to Carry the Cash in Your Wallet

If you’re open to having some cash in your wallet, you need to make sure the bills are in the right denominations. Usually, only larger retailers are willing to accept $100 bills, so it isn’t wise to carry your cash in hundreds. Smaller businesses may feel that taking a hundred is too risky, or they might not have enough change available if your purchase total is small.

At times, even $50 bills may be hard to use. Again, some retailers won’t accept bills that large, and others may run into issues with change.

Since that’s the case, it’s usually best to stick with nothing larger than $20 bills. In fact, you may want to mix it up a little to give yourself some versatility.

For example, if you decide to carry $100 in your wallet, go with three $20 bills, two $10 bills, three $5 bills, and five $1 bills. That way, if you need to leave a tip for a meal in cash or make a smaller purchase, you can use smaller bills.

As with the total amount you carry, the mix of bills in your wallet may vary depending on your exact needs. Just keep in mind that $100 or $50 bills might be harder to use, so make sure most of your cash is in smaller denominations.

Are you surprised at how much cash you should have in your wallet? Do you think that carrying cash is a smart move or completely unnecessary? Share your thoughts in the comments below.

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