Smart Money Links 4U

Now that stores, restaurants, salons and gyms are opening up in various stages across the country, Americans are opening up their wallets as well. But after the initial frenzy of returning to old spending habits, we might decide to hang onto some of the tactics we used during the days of doing without. Here are some money-saving habits that are worth keeping around.   We discovered that free cocktail hours in the driveway with friends who bring their own beverages are as fun as meeting a group downtown and racking up a $25 bar tab each.  We learned there’s freedom in sticking with the wardrobe in our closets instead of spending a Saturday and our hard-earned money at the mall.  We parted our hair a different way and looked past our exposed roots.  Movie nights with pajamas and popcorn are easier and comfier than going to a theater. (And around $50 cheaper for a family of four.) When gyms closed we found a world of free online resources from yoga to boot...

Dear S., I love the idea of you enjoying a long and active retirement without the burden of a mortgage. But don’t start planning a socially distant mortgage burning party just yet There are a few things that make me jittery here. For starters, you’d be withdrawing more than 35% of your retirement balance in a single year. Usually, it’s recommended that you limit withdrawals to no more than 4% or 5% annually. The idea is that you withdraw about the same amount that your investments are earning so you don’t run out of money during your sunset years. And those taxes you mention could mean you have to withdraw even more. Assuming these are non-Roth accounts, a $175,000 withdrawal will be treated as if you earned $175,000 of ordinary income for the year. (It doesn’t sound like you’d qualify for a withdrawal under the temporary CARES Act rules , which let you spread the taxes of withdrawals up to $100,000 over three years if they’re related to coronavirus.) Still, I understand why payi...

Katie Sanders helped introduce her friends Hilary Lehman and Aaron Sharockman. She served as the officiant at their wedding. It was only fitting that Sanders would throw a baby shower for the expecting couple. Back in early March, Sanders, who lives in St. Petersburg, Florida, was scoping out local breweries as venues for the event, but it soon became apparent she’d have to alter those plans due to coronavirus concerns. Here’s all of our coverage of the coronavirus outbreak , which we will be updating every day. So she pivoted and started planning a virtual baby shower over Zoom — complete with trivia, updates from the couple and a sneak peak of the nursery. Local guests participated in a drive-by parade to send the couple well wishes before the party started online. “People said they really had a great time,” Sanders said. “I was really pleased with how happy it made people feel. [My friends] felt so loved at the end of the day.” Although states are reopening after COVID-19 shu...

I’m going to let you in on a little secret. In real life, people’s budgets don’t match up perfectly to their actual spending. Think about it. You might spend $459.64 on groceries throughout the month, but what are the odds that you would have set your grocery budget to that exact amount? Maybe you budgeted $400 and overspent or budgeted $500 and came in under. Or perhaps, you budgeted $450 and got real close.  It’s hard to predict how you’ll spend every cent you make. Life doesn’t work that way. That’s why it’s not enough to just create a budget at the beginning of the month and hope you stick close to it. If you really want to be on top of managing your money, you’ve got to close out your budget by comparing what you budgeted with what you actually spent. Mark down where you’re over budget and under budget so you can take action. Let’s say you’re budgeting $400 for groceries each month but you always end up exceeding that amount. Your first step should be to try to cut costs ...

One in four American workers have filed an unemployment claim due to coronavirus. About half of households say they’ve lost income. So why do we see the stock market tick higher virtually every week? Overall, stocks are still down about 10% from mid-February’s record highs, but since crashing dramatically in March, the direction of the market is clearly shooting upward. Did Wall Street miss the memo about how bad things are right now? Why the Stock Market Is So Good in Bad Times It really isn’t that surprising that Wall Street seems so out of sync with Main Street right now. Here are a few explanations for why stocks can soar, even when the overall economy is in the dumps. Here’s all of our coverage of the coronavirus outbreak , which we will be updating every day. Small businesses are struggling, but they aren’t represented on stock indexes. When you hear on the news that the stock market had a good or bad day, that usually means the major stock indexes were up or down. The...

As a Papa Pal, you can earn up to $15 an hour assisting the elderly who are self-isolating during the pandemic. The Penny Hoarder spoke with CEO and founder Andrew Parker about his company’s Papa Pal side gigs . Papa launched in 2016 with a mission to combat loneliness and isolation among older adults. As many seniors remain sheltered at home due to the coronavirus, Papa’s mission is more relevant than ever. Parker unveiled some new changes to meet the increase in demand. While the company operates in dozens of states physically, Parker said the part-time gigs are now available remotely, nationwide.  He also said the company is waiving the education requirements. Previously, Papa Pals had to be college students or recent graduates. As a Papa Pal, you will: Talk with older folks via telephone or video conferencing to build rapport and companionship. Help them troubleshoot technology. Coordinate with health insurance companies to ensure that Papa members are utilizing thei...

Is the FIRE out? If you made grand plans based on a Financial Independence Retire Early (FIRE) strategy, the past few months may have been tough as you watched your retirement nest egg ride the economic roller coaster. The FIRE movement — in which you have enough wealth to live on for the rest of your life without the need for traditional employment — gained popularity in the past decade as the stock market ascended to new heights. Here’s all of our coverage of the coronavirus outbreak , which we will be updating every day. Adherents to the FIRE movement typically live off of their investments, in addition to passive income, real estate and freelance passion projects. A lot of those sources of revenue have been affected by the pandemic and social distancing orders. But that doesn’t mean you should give up on your dreams of financial independence, according to Jake Northrup, Certified Financial Planner and founder of ExperienceYourWealth.com . “It can be difficult to have your...

We all like to get something for nothing, and in some ways credit card rewards fit the bill. “It’s one of the few things in the world where it sounds too good to be true but it actually is true that you get these huge payouts with usually very little effort,” says Greg Davis-Kean, also known as The Frequent Miler . “If you’re smart about [your finances] you can win big by taking advantage of these offers.” He’s talking about the credit cards that offer either cash back or points per dollar you spend, which can be redeemed for all kinds of perks.  Many credit cards are free to open, but the ones with the most benefits often have an annual fee, which can be hefty: $99 to more than $595. So, the question is: Are cards that carry an annual fee worth it? How Credit Card Rewards Work Many cards are linked to one company, such as an airline, and offer benefits on that specific airline like free checked bags or early boarding. Others are connected to a bank and offer points that are...