3 tips to save money every wedding guest should know

(BPT) – Wedding season fills summer weekends with nuptials, and while we enjoy celebrating the bride and groom, all the “something borrowed and something blue” adds up to some serious green. In fact, a new survey from Bankrate.com (April 2017) found that nearly half of those surveyed — 47 percent — will spend $100 or more on a wedding gift for close friends or family.

Here are three tips for taking in the festivities without going broke:

1) Use gift cards: You may be used to giving gift cards as wedding presents, but you also can use them to save money on gifts, guest attire, travel and other wedding expenses. Gift card exchanges like Cardpool.com buy gift cards from people who don’t plan to use them in order to sell them, at a discount, to someone who does. Gift cards for airlines, hotels and registry staples, like Target, as well as retailers where you can find the perfect guest attire, including Saks Fifth Avenue, Nordstrom and more are all available at great discounts on Cardpool.com, saving you money on everything you need to get through wedding season without breaking the bank.

2) Stack savings: Be sure to search for coupons for the stores on the bride and groom’s registry to save money on purchases. While most retailers don’t allow you to stack coupons, there is a discount-stacking trick you can try: use coupons in addition to discounted gift cards. Doing so means you save by redeeming the coupon and by using a gift card you purchased at a discount as your method of payment.

3) Gift as a group: Gathering up a group of friends to buy a nice bottle of champagne or a larger registry item helps you stay in budget while still giving a more extravagant gift than you’d give on your own. In fact, a number of popular retailers for newlyweds are making group gifting even easier. Target, for example, allows groups to set up accounts where friends and family can chip in toward items on the couple’s registry.

No matter the venue, registry location, travel needs or attire, these go-to tips could save you hundreds of dollars this wedding season. Whether you have one wedding to attend or 10, keep these in mind while shopping or booking travel.

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How to use your home equity in retirement

(BPT) – Most of us save and plan for decades to enjoy the period of our life when we no longer need to go into the office and work an eight-hour day for a paycheck.

But even with those decades of hard work, it can be tough to save up enough cash to cover all your costs in retirement. Many soon-to-be-retirees face a shortage between what they saved for retirement and what they actually need to live on.

For homeowners, that may be a problem that’s relatively easy to solve. Tapping into the equity in your home can help you stretch your nest egg quite a bit further.

Use a home equity loan or line of credit

You can tap the equity in your home with a home equity loan or a home equity line of credit (known as a HELOC). A home equity loan works like most other loans: you agree to borrow a set amount of money, receive a lump sum, and pay that back with interest and in installments each month.

A HELOC works a little differently, because it’s not a loan with pre-determined monthly payments. Instead, it’s a revolving line of credit, similar to a credit card. You usually have between five and 25 years to borrow against a certain amount of equity and repay (with interest) whatever you take out.

The time during which you can use the HELOC is called the draw period. The line of credit revolves during this period, so you can borrow and repay the balance multiple times. The total amount is due back in full with interest at the end of the draw period. Any time you have an amount outstanding, you will make monthly payments.

You can use a HELOC or home equity loan during retirement, but remember that you will need to pay the money back. You should have a plan in place for how to repay the funds — and the interest — before you agree to take a loan or a line of credit on your home.

Use a home ownership investment

A home ownership investment is a powerful way to unlock some of the equity in your home without taking out a loan.

The Unison HomeOwner program can unlock up to $500,000 of your home equity and the money can be used for anything you want — including paying monthly expenses, paying off debt or making home improvements. Because it’s a home ownership investment, not a loan, there are no monthly payments and no interest charges. Learn more at www.unison.com/homeowner.

Unison invests in the home alongside you. In return for the company’s investment in your home, they receive a portion of the future change in the value of your home. Unison shares both the upside and downside risk with you. When you choose to sell your home, up to 30 years later, if the home value rises, both you and Unison share in the appreciation. If the home value falls, both you and Unison share the loss.

Consider a reverse mortgage

A reverse mortgage can allow homeowners 62 years or older to turn equity in their homes into cash in a way that provides them with the income they need through retirement. You can get your cash in a lump sum or in monthly payments, or in a line of credit.

But it’s important to remember that a reverse mortgage is still a loan that comes with origination fees and interest charges. It requires that you have no other debt on your property, so if you have an existing mortgage loan, you will have to repay that in full from the reverse mortgage proceeds. You will also need to pay the reverse mortgage loan back when you move out of the home, sell it or pass away.

A reverse mortgage can give you income in retirement and whenever the home is sold, the money is used to pay off the loan. However, reverse mortgages can cause a lot of trouble if you’re not careful, and the high fees that you incur when you sell the home can leave you in a worse financial position than if you skipped the reverse mortgage altogether.

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5 Investment Strategies That Can Outlast Market Spikes

(BPT) – You’re familiar with the saying “If it seems too good to be true, it probably is”?

Just like any other scheme to “get rich quick,” attempting to buy low and sell high based on intermittent fluctuations in the stock market—also known as “market timing”—is almost always a losing proposition over the long term for the investor. Studies have repeatedly shown that those who attempt to align their investments with short-term fluctuations earn less than those who stay in over the long haul.

“Once again, market fluctuations are messing with average investors’ minds,” says J.D. Roth, author of “Your Money: The Missing Manual” in Entrepreneur. “They panic and sell when prices drop, then fall victim to what Alan Greenspan in 1996 called ‘irrational exuberance’ and buy when prices soar. That’s a sure way to lose money.”

The truth is that even the most stellar investment advisor lacks a crystal ball into the future, and can only make recommendations based on historical research, industry guidelines, and experience. Unfortunately, past performance in the stock market is not at all an indicator of future performance.

So what are some better guidelines for investing in the stock market? Consider the following sound strategies, built on the mounds of evidence saying market timing doesn’t work as a long-term strategy:

1. Establish a long-term plan.

Set clear goals and objectives such as funding children’s college educations or investing for your own retirement. An advisor can help you evaluate risks, decide on asset allocation and set benchmarks for success while minimizing risk.

2. Use dollar-cost averaging.

Instead of trading when you think it’s the right time, the principle of dollar-cost averaging (DCA) says to invest a fixed dollar amount at predetermined intervals. The result is that you’ll end up buying fewer shares when prices are high and more shares when prices are low.

The advantage of dollar-cost averaging is that you put your money into the market earlier—increasing the likelihood of price change—rather than holding onto cash until you think prices are low. Regardless of whether you have a flat, positive, or negative price return, if your investments earn dividends, dollar-cost averaging is a useful strategy for earning dividend returns.

3. Ride the market by tracking an index and optimize your costs.

Trying to achieve alpha—i.e., beating the market with price returns—isn’t necessarily the most evidence-based way of getting the highest returns over time, especially looking at your returns net of costs and taxes.

By investing in funds that largely track a market index (index funds), historical results show that the lower fees typical of index funds and the long-term gains often outperform actively managed funds with higher fees. Investors should always focus on what they take home over the long term after fees and taxes. Looking purely at the price return can lead to lower-than-expected results.

4. Be aware of tax implications.

A major reason why investors should lean on professional support in today’s world is so that they can optimize their investments to lower taxes. Specifically, how assets are located within tax-advantaged and taxable accounts can be managed to lower your tax liability. Also, investment losses can be “harvested” via a process called “tax-loss harvesting,” and that’s generally a process many investors cannot do themselves.

Finally, any time you want to reinvest dividends or have reason to switch to a different investment, there are ways to make regular transactions as tax-efficient as possible. The same goes for making your eventual withdrawal. This kind of back-office tax work can have a major impact on how much you, as an investor, keep from your investment, so it’s important to find the right solution—whether that’s a financial advisor or learning to do it yourself.

5. Stay skeptical.

When it comes to outlasting a spike in the market, any investor should be aware of their own biases and behaviors. Pay little attention to financial TV shows and other media reports that hype short-term fluctuations. And be cognizant of the speaker’s motivation. Those who think they have a real get-rich-quick scheme are unlikely to share it with others.

Above all, don’t let uncertainty stop you from investing. If you look back all the way to 1926, keeping your money in cash/cash equivalents has underperformed both bonds and stocks. The key thing is to just get invested.

Betterment optimizes its technology and experience to help you make informed decisions in your investment strategy. Founded in 2008, the company manages $9 billion in assets. Investing in securities involves risks, and there is always the potential of losing money when you invest in securities. Before investing, consider your investment objectives and Betterment’s charges and expenses. Betterment distributed this article through Brandpoint. Visit Betterment.com for more information.

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7 tips for balancing retirement savings and paying for college

(BPT) – Most people want to help their children pay for a quality college education, but it can be difficult to balance personal financial goals and funding your kids’ educational aspirations. When retirement savings is sacrificed for college costs, it can be a disservice to the entire family.

To help guide you in determining the best way to pay for your kids’ college while still funding your retirement savings, personal finance expert and host of the So Money podcast Farnoosh Torabi offers seven smart tips.

Tip 1: Don’t put retirement on the back burner.

While funding your children’s college education is important, your retirement savings should take priority. Strive to contribute 10 to 15 percent of your take-home pay toward retirement savings. The reality is college is four years and retirement can be 30+ years. Plus, there’s no scholarship for retirement like there is for college!

Tip 2: Take the free money.

If your workplace retirement plan comes with a match, take it. Contribute the minimum to receive your employer match. At the end of the day, it’s free money and that’s the best kind.

Tip 3: Involve your children in the college cost discussion.

College is expensive, so make sure you’re discussing with your kids overall costs and what you’re willing to contribute. Have them help research financial aid and scholarship opportunities, too. Remember, you want to find a school that’s the best fit — so don’t let the initial “sticker price” scare your children from applying. Some private colleges may give the best aid packages, but other times they may not. Don’t make assumptions and always keep your options open. The goal is to find the college with the best value.

Tip 4: Don’t take on more than you can afford.

While involving your children in the discussion, it’s also important to make sure you’re not setting them up for failure when they graduate. As they research student loan possibilities, make sure they’ll be able to comfortably afford payments once they graduate, and that they’re not taking on too much debt.

An easy way to start researching together is to visit College Ave Student Loans and use the configure-it-out tool. Answer a short series of questions regarding how much you’ll borrow, how many years of schooling are left, whether you want to make payments during school or not, etc. This shows your child what repayment will look like under each option so you can both be clear on the details and agree on a game plan.

Tip 5: Consider the college savings plan that’s best for you.

Consider opening a 529 that allows flexible spending toward higher education. Should your child choose to forgo traditional college education or not require the funds set aside, you can easily change the beneficiary to another child or relative.

If you’re skeptical of a 529, consider a Roth IRA if your income limits allow. Although typically used for retirement, the Roth IRA has an exception where you can withdraw your contributions from the account at any time tax- and penalty-free for qualified education expenses. The remaining money can be collected in your retirement.

Tip 6: Starting late? Play catch-up.

If saving for retirement has not been a priority, it’s time to get aggressive. Pare down costs where possible and take advantage of catch-up contributions. People who are 50 or older can contribute an extra $6,000 to their 401(k) or an extra $1,000 to an IRA this tax year.

Tip 7: Don’t become the “bank of Mom and Dad.”

You want to help your kids, but once you set the precedent that it’s OK for your children to ask for money (or a contribution toward college), they may feel they can frequently approach you later in life for funds. Don’t set the tone that you’ll always be there to financially support them. You want them to grow wings so they can fly independently (and so you can happily enter retirement and enjoy those golden years).

While you should talk with your child about potential majors and career paths, it’s important also to add financial conversations into the mix. For more tips, and to learn more about personalized student loan solutions, visit www.collegeavestudentloans.com.

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