Tanza Loudenback, provided by Published 10:50 am CDT, Thursday, March 28, 2019 PBNJ Productions/Getty People who save more than 20% of their income make a few critical decisions with their money, a TD Ameritrade survey found. These "supersavers" are more likely to avoid high-interest debt, stick to a budget, invest in the stock market, and max out their retirement savings. They also started investing before age 30 and tend to spend less of their budget on rent or a mortgage than the average person. When you compare people who save a ton of their income with the rest of us, the decisions that led them there become pretty clear. In a recent survey, TD Ameritrade asked 1,500 Americans with investable assets of at least $250,000 about their saving strategies. About 20% of this group are "supersavers" who save or invest an average of 29% of their income, while everyone else saves an average of just 6%. Three in four supersavers are either financially independent — … [Read more...] about People who save more than 3 times as much as the rest of us are making 4 smart choices with their money
Savings vs money market account
Stock charts make it easy to see how the market’s doing at any given time — green means up, red means down — and during a bear market, it’s generally red as far as the eye can see. For many people, the color red means one thing: stop. But to stop investing generally is a bad idea when the market gets scary. Worse yet? Selling stocks out of fear. Given that bear markets, defined as declines of at least 20 percent in asset prices from a recent high, are somewhat inevitable, here are some tips for how to make the most of investing during these times. Make dollar-cost averaging your friend Say the price of a stock in your portfolio slumps 25 percent, from $100 a share to $75 a share. If you have money to invest — and want to buy more of this stock — it can be tempting to try to buy when you think the stock’s price has cratered. Problem is, you will likely be wrong. A more prudent approach is to regularly add money to the market with a strategy … [Read more...] about Strategies on making most of bear market
Dayana Yochim, NerdWallet Published 1:10 pm CST, Tuesday, January 15, 2019 This article was first published on NerdWallet.com. Your bank account balances are insured by the FDIC. Assets in your brokerage are also protected, but by a different entity — the nonprofit Securities Investor Protection Corporation, or SIPC. In the unlikely event your broker or robo-advisor financially fails — and also fails to move your money to another protected firm — and investors’ assets are missing or at risk, the SIPC will step in to make you whole by providing up to $500,000 in coverage. Here are the basics of brokerage account insurance, including what it does and doesn’t cover. SIPC insurance rules SIPC coverage provides … Up to $500,000 in total coverage per customer for lost or missing assets of cash and/or securities from a customer’s accounts held at the institution. Up to $250,000 of that total can be applied to protect cash within a … [Read more...] about Is My Brokerage Account Insured?
Bev O'Shea, NerdWallet Published 6:42 pm CDT, Monday, October 22, 2018 This article was first published on NerdWallet.com. A new FICO credit score, launching in 2019, could be good news for consumers who don’t quite have the credit scores they need to qualify for a financial product or for the terms they were hoping for. The UltraFICO score is an opt-in credit model that uses information from your checking, savings or money market accounts to supplement data already in your credit report. The information being considered includes how much you have in savings, how long the accounts have been open and how active they are. It’s meant to boost your existing FICO score, which ranges from 300 to 850. If you are already in the excellent credit range, and don’t need additional points for approval, or to qualify for the best terms, it won’t be offered to you. But this supplemental information can be especially helpful for consumers with scores in the … [Read more...] about New UltraFICO Score Could Boost Credit Access for Consumers
You’ve no doubt heard that the stock market just became the longest bull market in history. The stock market has been roughly going up for about nine years without a decline of more than 20 percent (which is how we define the end of a bull market). With the market going up for so long, does that mean the risks of another crash are rising? If so, should you do anything about it? That depends on where you are in your financial life. First, just because the market has gone up for a number of years, doesn’t mean it has to come down. We do periodically have bear markets. Historically, they have occurred every seven to 10 years. Generally, bear markets start when something derails economic growth, and right now, things look Now, any one of these things could change quickly, and when they do change, market prices can fall dramatically. A bear market can last anywhere from a few months to five or more years. It took four years for the stock market to recover from the financial … [Read more...] about Should you be concerned about record long bull market?