All Posts in "Personal Finance/Consumers"

Hybrids are a turn away from gas

With gas prices surging and broadening efforts to reduce carbon emissions, you may be eyeing car models that promise to reduce or even eliminate your reliance on gas. However, depending on your lifestyle, location, finances, driving habits, and other factors, you may not be ready to go fully electric just yet. The good news? A hybrid is a transitional vehicle to put you on the path to more sustainable driving now.

Hybrid vehicles, which combine smaller gas engines with battery-powered electric motors, make it possible for anyone to contribute to the fight against carbon emissions and reduce their gas expenses. In fact, today’s hybrids achieve 20 to 35 percent better fuel economy than conventional internal combustion engines, according to Green America. In the short term, hybrids are a cost-effective option compared with most all-electric vehicles currently on the market. While a battery-powered electric vehicle will save even further on fuel costs down the line, the average transaction price for one of these rides is above $60,000.

A hybrid is also a key alternative to electrics for drivers who live where the current electric vehicle infrastructure doesn’t support everyday use, or for those who can’t charge a vehicle at home. With greater fuel economy than a traditional internal combustion engine, and requiring no lifestyle overhaul to operate, hybrids are one way to reduce carbon emissions today.

Given these varied benefits, and the rising number of available vehicles with a hybrid powertrain, it’s no surprise that annual hybrid sales in the United States have more than doubled since 2019. Prices are leveling, and budget-conscious buyers can find options under $30,000, including the Toyota  Corolla Hybrid and the all-new Prius. Boasting all the latest safety and multi-media features, along with sleek exterior design, you won’t have to compromise on style or performance in the quest for efficiency.

Source: StatePoint Media

The Senior Scene by — November 15, 2023 in Personal Finance/Consumers

How do younger adults feel about suggestions of raising certain age limits for Social Security benefits? To find out, ResumeBuilder.com surveyed more than 700 Gen Z individuals (born between 1997 and 2012, with the oldest now 24) and Millennials (between 25 and 40 years old). The results:

  • 51 percent of the two age groups want a lower full-retirement age; and 60 percent want it changed to 60 or lower. Reason: Giving more employment opportunities to younger workers.
  • 16 percent say the retirement age should be raised, and 34 percent say it should stay where it is now (66 and two months for people born in 1955, 67 for those born in 1960 or later).
  • Two-thirds are counting on Social Security money when they qualify, yet almost half believe there won’t be any.
  • 75 percent believe wealthy Americans shouldn’t qualify for Social Security.

Currently, 62 is the earliest age at which benefits can be claimed. Full benefits can be received starting at 66.

Resumebuilder.com, an online service for designing resumes and career resources, conducted the survey in response to support from Nikki Haley, a Republican candidate for president, for raising the retirement age as way to prevent Social Security funds from running out. Such a proposal, including one by a bipartisan group of U.S. senators to make 70 the new age for full-benefits eligibility, is a subject of political and societal debate. Opposition exists within Congress, the general public, and seniors’ advocacy groups.

The federal government has said 2033 is the year when there could be insufficient funds to fulfill Social Security payouts.

Raising the age for full benefits reportedly wouldn’t affect people already receiving benefits. The impact would be highest for younger adults, who might have to work longer.

The Senior Scene by — November 9, 2023 in Personal Finance/Consumers

Old scams never die, and new ones are popping up all the time. From sophisticated AI (artificial intelligence) deepfakes to phishing attacks cloaked in e-mails and text messages, criminals from all over the world are constantly concocting a variety of ways to steal information and money.

They pose as our banks, familiar stores, the IRS, and potential romantic partners. They hack into accounts. They swipe passwords and they even steal our voices and images. They prey on the young, the old, and everybody in between. They use our worst fears and even shocking news events to catch us off guard.

Recent data from the Federal Trade Commission underscores the scale of the problem. The FTC found Americans in 2022 lost $8 billion to fraud, a staggering amount that was up more than 30 percent from the previous year.

Though rip-offs are rampant nationwide, some states are hotbeds, with Washington in that range. To identify the states where scams are most prevalent, Forbes Advisor analyzed data from the FTC for the first quarter of 2023 and scored states by focusing on four factors:

  • Fraud reports per 100,000 residents (35 percent of the total score per state).
  • Total number of fraud reports (15 percent of the total score).
  • Median loss from fraud, in dollars (35 percent).
  • Total loss from fraud, in dollars (15 percent).

Georgia is the state where financial scams are most prevalent, with 437 fraud reports for every 100,000 residents during the first quarter of 2023. Washington ranks 13th, with 228 reports per 100,000 residents. South Dakota is least-affected, at 132 reports per 100,000 people.

Nationwide, imposter scams are the most common fraud. Online shopping leads to the second most common type of fraud.

Source: Forbes Advisor, which reports on financial issues related to consumer credit, debt, banking, insurance, and real estate.

srmedia by — September 5, 2023 in Personal Finance/Consumers

By Rachel Keohan

An investment property can be a great way to earn extra income, reap potential tax advantages, and diversify your portfolio, but it pays to do your homework when it comes to financing. If you’re overwhelmed by your options and aren’t quite sure where to start, here’s a rundown of the most common ways to fund a down payment and/or renovations on your first investment property.

  • Conventional bank loans.

For many prospective investors, this is the first option they explore, as they likely already have a relationship with a bank for their personal finances. While these loans can offer low interest rates and fees and often allow multiple mortgages (up to a limit), the downsides include high down-payment requirements for investment properties — typically at least 15 to 25 percent —and your likelihood of being approved is dependent on your personal credit.

  • Fix-and-flip .oans.

As their name suggests, fix-and-flip loans (sometimes called “hard money”) are specifically for the purpose of renovating and preparing investment properties for tenancy. While they can be easier to qualify for than conventional loans, they typically have short term lengths of three years or less and relatively high interest rates (10 to 15 percent on average). Frequently, the amount you’re eligible to borrow is dictated by the home’s post-repair value.

  • Home equity investment.

You receive cash in exchange for a share of your home’s future value, and providers let you access your equity without interest or monthly payments and use the money for whatever you’d like, including a down payment or making necessary improvements on a property before renting it out to tenants. And the timeline is typically quite quick, with funding in as little as three weeks.

  • LLC loans.

An LLC loan isn’t a personal loan to you, but instead one to the LLC (limited liability company). Going this route allows investors to build business credit, safeguard themselves from disputes or lawsuits, and limit personal liability. This isn’t the best option for fast funds, as you’ll need to set up an LLC, apply for a mortgage, and have enough credit history for lenders to review.

  • Home equity loan.

This loan provides access to equity, a fixed interest rate that’s often lower than a personal loan, and a predictable repayment schedule. However, you are taking out another mortgage in addition to the one on your primary home, so you’ll need to be prepared for those extra costs.

  • Home equity line of credit (HELOC).

A major advantage of a HELOC is its flexibility in terms of the amount of cash you can access and the frequency with which you can borrow. But there are drawbacks. Monthly payments will be unpredictable due to the variable interest rate, and the lender can freeze a HELOC at any time if your credit score decreases. In addition, the application process can be quite rigorous and the approval criteria pretty restrictive.

  • Cash-out refinance.

With this, you’re taking out a new mortgage for which the balance is more than you owe on your current mortgage, giving you access to extra funds. As a bonus, you have the potential to lock in a lower interest rate on your current mortgage and lower your monthly payments. However, you may be extending your mortgage timeline and also have to deal with the application and approval process, along with fees for closing and origination.

The best option ultimately depends on personal financial situations and goals, but with some research and planning, first-time property investors can confidently move forward.

 

Rachel Keohan is vice president of marketing at Hometap, a home-financing provider doing business in Washington and 17 other states.

srmedia by — March 30, 2023 in Personal Finance/Consumers