Money Crashers

BlockFi is a crypto lending platform that allows users to deposit or purchase cryptocurrency, and borrow against their holdings. It also offers a simple cryptocurrency exchange and a crypto wallet for storing your crypto. Learn the pros and cons of BlockFi and whether it’s right for you.

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BlockFi is a crypto lending platform that allows users to deposit or purchase cryptocurrency, and borrow against their holdings. It also offers a simple cryptocurrency exchange and a crypto wallet for storing your crypto. Learn the pros and cons of BlockFi and whether it’s right for you.

The post BlockFi Review – Borrow Against Your Crypto Holdings appeared first on Money Crashers.

In your 50s, you start to see retirement on the horizon. Hopefully that’s exciting, but if you look at your retirement savings and feel more grim than giddy, you still have enough time to build up that nest egg. Learn how to invest in your 50s and what special factors to consider.

The post How to Invest Money in Your 50s for a Healthy Retirement Portfolio appeared first on

In your 50s, you start to see retirement on the horizon. Hopefully that’s exciting, but if you look at your retirement savings and feel more grim than giddy, you still have enough time to build up that nest egg. Learn how to invest in your 50s and what special factors to consider.

The post How to Invest Money in Your 50s for a Healthy Retirement Portfolio appeared first on Money Crashers.

Growth investors have been hardest hit by this year’s stock market slump. But are there any growth companies that represent a strong investment opportunity right now? Learn about the best growth stocks to buy today that have the potential to generate significant long-run gains.

The post 5 Best Growth Stocks to Buy Right Now (2022) appeared first on Money

Growth investors have been hardest hit by this year’s stock market slump. But are there any growth companies that represent a strong investment opportunity right now? Learn about the best growth stocks to buy today that have the potential to generate significant long-run gains.

The post 5 Best Growth Stocks to Buy Right Now (2022) appeared first on Money Crashers.

Many frequent travelers enjoy airline rewards from their credit cards. Many major U.S. airlines have at least one branded credit card that rewards loyal customers with free or discounted flights and a host of other perks. Learn about the best airline credit cards on the market right now.

The post The Best Airline Credit Cards for Flights, Miles, and Rewards in 2022 appeared first on

Many frequent travelers enjoy airline rewards from their credit cards. Many major U.S. airlines have at least one branded credit card that rewards loyal customers with free or discounted flights and a host of other perks. Learn about the best airline credit cards on the market right now.

The post The Best Airline Credit Cards for Flights, Miles, and Rewards in 2022 appeared first on Money Crashers.

They say that 40 is the “old age of youth,” and 50 is “the youth of old age.” No wonder so many 40-somethings go through a midlife crisis. 

So how do you navigate this transitional decade financially? How do you invest for maximum results and minimum risk and taxes?

Glad you asked. Successful 40-something investors tend to have some things in common.

How to Invest Money in Your 40s

Investing in the middle of your career brings

They say that 40 is the “old age of youth,” and 50 is “the youth of old age.” No wonder so many 40-somethings go through a midlife crisis. 

So how do you navigate this transitional decade financially? How do you invest for maximum results and minimum risk and taxes?

Glad you asked. Successful 40-something investors tend to have some things in common.

How to Invest Money in Your 40s

Investing in the middle of your career brings some unique advantages and opportunities.

Follow these strategies to take full advantage of them while avoiding common pitfalls faced by your fellow 40-something investors. 

1. Boost Your Savings Rate

There’s a good chance your 40s will be your peak earning years. You’ve climbed high into the ranks of your chosen profession but aren’t yet at the point where you might be forced to retire early.

So make some hay while the sun shines overhead. 

Boost your savings rate as high as you possibly can. Aim to approach the problem from two sides: slashing your living expenses while also maximizing your income. 

For the former, overhaul your budget categories from scratch. Try this budget template in Google Sheets to rethink your expenses entirely. 

On the earning side, you can always negotiate a raise or pursue a promotion with your current employer. But you’ll likely score a bigger bump in pay by switching employers. 

If you still have any unsecured debts left over from your lower-earning years, now’s the time to knock ‘em out. These include credit card debts, student loans, personal loans, or any other high-interest debt. Try the debt snowball method to plow through them quickly and efficiently. 

It should go without saying, but while you’re overhauling your finances, take steps to avoid a midlife crisis. Nothing will derail your personal finances faster than a personal crisis. 

With your higher savings rate, you can reach your financial goals faster. And that starts with the one financial goal that everyone shares: retirement. 

2. Check That Your Retirement Savings Are on Track

It’s hardly a newsflash, but retirement has changed dramatically in the last generation. 

Gone are the days of private pensions and free-flowing Social Security benefits. You need to plan and pay for your own retirement with less help from paternalistic employers or Uncle Sam. 

Reconsider Your Target Retirement Age

Sure, you could retire at 65. Or 75, or 55, or maybe even in your 40s if you play your cards right. I’ve known people who retired at 30 through a combination of frugal living and investing in income-producing real estate.

Just bear in mind that you can’t count on your current income forever. In a worrying trend, more employers are pushing out older workers, who then have a harder time finding a new job. When in doubt, aim to reach financial independence earlier rather than later. You’ll find post-retirement jobs a lot more fun when they’re voluntary and you don’t need the money to put food on the table. 

Check out these guidelines for how much you should save for retirement. Long story short: Your target nest egg depends on your expected living expenses in retirement and how quickly you want to (or can) save to reach your goal.

Max Out Matching Contributions

If your employer offers matching contributions to their retirement plan, take them up on it. It’s effectively free money. 

You can also think of matching contributions as an immediate doubling of your investment. 

Consider switching to a Roth 401(k) if your employer offers it as an option. With a Roth retirement account,: you pay taxes on contributions now, but your investments grow tax-free, and you pay no taxes on withdrawals in retirement. In your 40s, your Roth investments still have several decades of tax-free growth ahead.

Your retirement investments still have several decades to compound tax-free, an enormous advantage of Optimize Other Tax-Advantaged Accounts

Likewise, prioritize your Roth IRA over your traditional IRA as a 40-something. Beyond the tax-free compound interest and returns, Roth IRAs allow higher income limits, no required minimum distributions (RMDs) later on, and more flexible rules for early withdrawals if you decide to retire before 59 ½. 

But don’t stop there. Consider maxing out an HSA as a secondary retirement account. You’ll certainly have no shortage of healthcare costs in retirement, to make tax-free withdrawals. And health savings accounts offer the best tax advantages of any tax-sheltered account. 

3. Prioritize Your Other Goals

I’m going to go out on a limb and guess that retirement isn’t your only long-term financial goal.

You might want to help pay for your kids’ college education, or travel more, or buy a second home. Perhaps you dream of working a more fulfilling job that doesn’t pay as well as your current gig. 

Write out all your financial goals and prioritize them in a strict order. You can split money to go toward different goals, but make sure you’re intentional and strategic about the split. Your kids have many options to pay for college, for example, but you have to fund your retirement with your own nest egg. 

As with retirement, take advantage of tax-sheltered accounts if you plan to help your kids with college costs. Check out both 529 plans and ESAs as options on the table. 

If you dream of switching to a lower-pay, higher-fulfillment career, remember to come at the problem from both directions. Lowering your living expenses helps of course, but you can also cover the shortfall with passive income streams. 

Say your dream job pays $1,000 less per month than your current high-stress job. If you buy two rental properties that each generate $500 per month in cash flow, you’ve covered the shortfall. You can also make up that difference with dividend-paying stocks, real estate crowdfunding investments, or any other source of passive income. 

4. Rebalance Your Portfolio

Pop quiz: what percentage of your investment portfolio is in U.S. stocks? International stocks? What about small-cap versus large-cap stocks? Bonds? Cash?

Sure, your asset allocation shifts a little each day, depending on how different investments perform. But you should know your target allocation — and have a plan for staying on track with it. 

That starts with a cash emergency fund, with at least one or two months’ worth of expenses. If you have inconsistent income or expenses, plan on six months’ to a year’s worth of expenses. That protects you from financial shocks like losing a job, sudden bills like home and car repairs, medical crises, and life’s other endless curveballs.

But your asset allocation goes far beyond your cash savings. 

Stick with Stocks for Now

As a 40-something, you still have plenty of earning potential for decades to come. So even if you plan to reach financial independence young and pull back on work, you can always go back to work full-time or pick up extra gigs in a financial doomsday scenario. 

That means you don’t have to be cautious and conservative the same way that older investors do. You have more leeway to keep most or even all of your investment portfolio in stocks. 

Likewise, that stock portfolio doesn’t have to stick with just blue-chip, large-cap U.S. stocks. You can and should diversify it to include small-cap stocks and international stocks, including some emerging markets. 

Only invest directly in bonds if you feel a compelling reason to do so, such as hedging against inflation with TIPS or I-bonds. Or if you absolutely, positively need some bonds in your portfolio to help you sleep at night. 

If you like, you can invest through a robo-advisor, which will automatically rebalance your portfolio for you. Or you can track your asset allocation with a tool like Personal Capital or Mint, and simply add to any under-represented assets when you invest with each paycheck.

Consider Adding Real Estate

I love real estate as a counterweight to stocks. 

Real provides stability to balance stocks’ volatility and liquidity. It generates strong income, to balance stocks’ strong growth. And it comes with inherent tax advantages, such as ways to defer or avoid capital gains tax. That means you don’t need special tax-advantaged accounts to invest in it and score tax benefits. 

You can invest in real estate directly by buying rental properties. Or you can invest in real estate crowdfunding platforms, REITs, or stocks related to the real estate industry, such as home construction companies. I do all of the above and more, such as lending private notes to other real estate investors. 

A note of caution for would-be real estate investors: While you can earn a higher return by investing directly in real estate than more passive investments, it requires more labor and more expertise on your part. Only buy investment properties directly if you’re genuinely interested in real estate investing as a hobby and can devote as much time to it as you would any other side business — or more.

If you want some real estate exposure but don’t want to hassle with becoming a landlord, start with Fundrise for long-term investments or Groundfloor for short-term investments. Both let you invest with as little as $10. 

5. Streamline Your Portfolio

Just because you’re investing in the right asset mix doesn’t mean you can’t improve further.  

To begin with, look for and avoid any mutual funds or ETFs that are charging you high expense ratios. In today’s world, you just don’t need to pay for expensive funds. You can invest in low-cost index funds instead. 

Next, reevaluate whether you need a financial advisor. If you don’t have one, would you sleep better having one? If you do have one, could you save some money with a one-time, flat-fee project, or the occasional hourly consultation, rather than paying them to manage your money?

For that matter, you might do just as well with a robo-advisor versus a human advisor. Or not, if you have a high net worth and complex financial needs. 

You could also have room for improvement in your tax-sheltered accounts. For example, in my 40s, I’m now rolling over all my traditional IRA funds to a Roth IRA, for the reasons outlined above. I contributed to a traditional IRA in my 20s, when I didn’t know any better, and didn’t think about it again for a decade. Now, I have to pay taxes not just on my initial investments, but also on thousands of dollars of gains since then. 

Give your portfolio some attention now so that you don’t make similar mistakes. 

Investing in Your 40s FAQs

Everyone has money questions. If you don’t, you aren’t thinking hard enough about how to get ahead. 

Here are a few common investing questions you could face in your 40s. 

How Much Money Should I Invest in My 40s?

As much as you can. 

My wife and I save and invest up to 70% of our household income each year. That’s extreme, but you should plan on saving a bare minimum of 10% to 15% of each paycheck. This rate won’t help you retire early, buy that second home, or switch to your dream career, but it will let you retire on time. 

The more ambitious your financial goals, the higher your savings rate should be. 

What Investment Strategy Is Best for 40-Somethings?

For the average investor who doesn’t want to have to think much about their investment strategy, you can keep life simple with a robo-advisor. I do recommend the most aggressive setting available for 40-somethings, or close to it. 

You can gain broad exposure to the U.S. stock market by just buying shares in the  Vanguard Total Stock Market ETF (VTI). Add in some shares for international stocks, such as Vanguard Total International Stock ETF (VXUS), and with just two funds you’ve diversified across thousands of stocks worldwide. 

Consider rounding out your portfolio with a few reputable real estate crowdfunding investments and you’re in good shape. Or you can hire an investment advisor if you prefer having a hand to hold when the boat starts rocking. 

Do I Need a Financial Advisor?

The average American doesn’t need an investment advisor. However, some people like having one, and peace of mind matters. 

The wealthier you are, the more complex your needs. At a certain net worth, the savings can outweigh the costs of paying someone to help you protect your assets, minimize your tax bill, and so forth. As a broad rule of thumb, once your net worth reaches seven digits, the benefits likely outweigh the expense of hiring professional help. 

Should I Pay Down My Mortgage and Car Loan Early?

Some people just sleep better at night when they’re debt-free. If that describes you, go ahead and put extra money toward paying down your low-interest secured debts early if you feel so compelled. 

But mathematically, it doesn’t make much sense for 40-somethings to pay off low-interest debts early. If you pay a 3% interest rate on your mortgage, and you can earn a 10% average return on the stock market, you’re effectively earning a 7% spread on someone else’s money by keeping your mortgage and investing in stocks. Even a 6% mortgage rate means a 4% spread on your mortgage.

In your 40s, you can tolerate risk. You don’t need to sacrifice returns in exchange for low risk. And paying off low-interest secured loans represents the ultimate low-risk, low-return investment. 

When Do Traditional IRA Contributions Make More Sense than Roth?

I still like Roth IRAs over traditional IRAs for 40-somethings, but you can start making a case in your 40s for traditional IRAs. If your tax bill comes in extra high this year, and you desperately need a deduction, consider contributing to your traditional IRA over a Roth IRA.

But remember, in your 40s your money still has several decades to compound. You’ll pay taxes on all that compounded money in retirement when you go to withdraw it. With your Roth IRA, you don’t actually need as much money saved up, because you won’t lose a hefty chunk of it to the IRS in retirement. 

Final Word

By your 40s, you’re earning more money than ever before. It’s tempting to spend it on all those material things you always wanted: the picture-perfect house, the sleek car, the high-end restaurants or country clubs or second homes in the Hamptons. 

The paradox of wealth is that the more of it you show off by spending, the less of it you actually build. Your true wealth exists in ones and zeroes, in the form of brokerage account balances, stocks, investment property holdings. It’s not sexy. You can’t show it off to the world to prove your success.

But real wealth gives you something even better: the freedom to design your ideal life. You can use it to retire young, or switch to a dream job, or help your kids with college tuition, or spend more time traveling overseas. 

In the end, isn’t that more valuable than conspicuous consumption and keeping up with the Joneses?

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G. Brian Davis

Despite stock market regulations designed to protect people, bad actors still try to steal from investors using what is called a pump-and-dump scheme. Read on to learn what a pump-and-dump scheme is and how you can avoid being taken — and what you can do if you identify a fraudster at work.

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Despite stock market regulations designed to protect people, bad actors still try to steal from investors using what is called a pump-and-dump scheme. Read on to learn what a pump-and-dump scheme is and how you can avoid being taken — and what you can do if you identify a fraudster at work.

The post Pump-and-Dump — Definition & How to Avoid This Stock Market Scheme appeared first on Money Crashers.

Choosing individual small-cap stocks can be risky, but many investors find simplicity and safety in diversified small-cap exchange-traded funds (ETFs). Here are some of the best to consider if you’re looking to add exposure to these smaller companies with plenty of room to grow.

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Choosing individual small-cap stocks can be risky, but many investors find simplicity and safety in diversified small-cap exchange-traded funds (ETFs). Here are some of the best to consider if you’re looking to add exposure to these smaller companies with plenty of room to grow.

The post 8 Best Small-Cap ETFs to Buy in 2022 appeared first on Money Crashers.

The financial crisis of the late 2000s may be an increasingly distant memory, but it has left a persistent legacy: stubbornly low interest rates on low-risk, low-reward investment vehicles. Rates on savings accounts, money market funds and government bonds remain at or below the rate of inflation. Of course, interest rates on consumer-facing mortgages and auto loans remain historically low as well. Many economists believe that the American economy wouldn’t be doing nearly as well without this tailwind.

What

The financial crisis of the late 2000s may be an increasingly distant memory, but it has left a persistent legacy: stubbornly low interest rates on low-risk, low-reward investment vehicles. Rates on savings accounts, money market funds and government bonds remain at or below the rate of inflation. Of course, interest rates on consumer-facing mortgages and auto loans remain historically low as well. Many economists believe that the American economy wouldn’t be doing nearly as well without this tailwind.

What does this mean for folks who want to plan for retirement? The 2010s and early 2020s were good for risk-seeking equities investors, but not everyone can afford to stake their financial future on growth stocks. As you age, lower-risk vehicles such as savings bonds and dividend stocks should comprise an ever-growing slice of your portfolio; even if you’re a spring chicken, it’s wise to allocate a portion of your savings to these securities.

Series I savings bonds present a unique opportunity for generally conservative savers who don’t want to accept sub-inflation returns on their investments.

What Are Series I Savings Bonds?

Series I savings bonds are Treasury bonds, which means they’re among the safest investments around. The Treasury Department describes them as “low-risk, liquid savings products.” While there’s no such thing as a completely safe investment, it’s worth noting that the U.S. government has never defaulted on its obligations to bondholders.

Unlike T-bills, Series I bonds don’t come with frustratingly long terms or high minimum investment requirements. Then again, they don’t offer the competitive returns of many investment-grade municipal bonds. As zero-coupon investments, Series I certificates don’t issue interest in periodic payouts; instead, the interest that each security accrues is added onto its cash-out value. When you sell a Series I bond, you receive a lump sum that includes the principal amount and all accrued interest.

Series I bonds are typically held for at least five years, but they can be cashed out after the first year if you’re willing to pay a small penalty. Their interest rates are determined by combining a “fixed” and “inflation” rate to arrive at a “composite” rate. When you buy your bond, you lock your fixed rate – currently set at 0.0% – in for its entire term, while your inflation rate changes every six months, in May and November. The current composite rate is set at 9.62%.

Differences Between EE and I Savings Bonds

The Series I bond is often compared to the Series EE savings bond, another nontraditional Treasury vehicle. Both are issued in much smaller tranches than traditional T-bills; you can buy I-bonds and EE-bonds for as little as $25. After the $25 threshold, both types of bonds can be bought in increments of a single penny. I-bonds and EE-bonds both offer similar tax advantages.

The most notable practical difference between EE savings bonds and I savings bonds concerns their interest rates. Whereas I-bond rates are calculated by adding a predetermined fixed rate to a variable inflation rate that readjusts every six months in response to the Consumer Price Index for Urban Consumers (CPI-U), EE-bonds issued after 2005 offer fixed rates of return that are competitive with prevailing rates for five-year Treasury bonds.

Another point of distinction: The Treasury has stopped selling paper EE-bonds. If you want to own a Series EE bond, you need to purchase it through the Treasury’s online TreasuryDirect portal and hold it in secure, electronic form. It’s still possible for individuals to purchase paper I-bonds with their tax refund. You can’t do this with EE-bonds.

Basic Structure

Series I savings bonds are low-risk, relatively low-interest vehicles that are meant to be held for years. If your bond’s principal amount is $5,000, you’ll receive $5,000 plus interest when you sell out, regardless of what the bond market has done in the intervening period.

Interest Rates

An I-bond’s composite interest rate is calculated in two parts:

To determine the actual composite interest rate, the Treasury Department uses the following formula:

composite rate = [fixed rate + (2 x inflation rate) + (fixed rate x inflation rate)]

Currently, this equation looks like this:

[.00 + (2 x .0481) + (.00 x .0481)] = .00 + .0962 + 0.0000000 = .0962 = 9.62%

The previous month’s share of interest accrues to an I-bond’s existing balance on the first day of each month, but said interest is only compounded on a semiannual basis. In other words, the bond’s paper value increases each month, but this merely reflects the addition of one-sixth of the previous period’s interest.

This arrangement is designed to increase the liquidity of these securities and make month-by-month redemptions more attractive. At current interest rates, the face value of your bond – plus all the interest it had accumulated prior to the most recent compounding date – would increase by about 0.12% per month.

Maturity, Redemption, and Other Restrictions

Before you buy a security, it’s important to understand its restrictions and limitations. Holders of I-bonds must mind the following issues:

Tax Issues

You must pay federal income tax on your I-bonds’ interest payments, but these vehicles are exempt from state and local income taxes. If you receive bonds as a gift or inheritance, you may be required to pay federal and/or state gift tax, estate tax, or excise tax on their interest.

If you use your bonds to fund educational expenses for your child (or another dependent), you may be able to avoid federal income taxes. You must use your bonds’ principal and interest for qualifying expenses, including tuition and course fees, and your chosen higher education institution must be eligible for federal loan assistance. Regardless of whether you use your bonds to finance your child’s education or your own, you must be at least 24 years old when you purchase the bonds to qualify for the tax benefit; bonds purchased before you turn 24 do not under any circumstance accrue education-related tax benefits. Finally, you must meet certain income requirements.

Since I-bonds are a long-term investment, how you report your interest payments can have an effect on your overall tax burden. There are two methods for doing so:

Eligibility Requirements

Historically, Series I savings bonds have been reserved solely for individual purchasers. In 2009, the rules governing I-bond ownership were relaxed to let most corporations – including limited liability firms and S-corps, as well as most trusts and partnerships – into the fold. This type of security now represents a crucial inflation hedge for many small businesses that lack access to favorable credit terms.

I-bonds are available to anyone who meets at least one of these criteria:

This last eligibility class is very nearly unique. Unlike most other securities, including stocks, corporate bonds, and T-bills, minors can directly own I-bonds without using a trust as an intermediary. While minors can’t directly buy bonds using their own TreasuryDirect accounts, they can use custodial accounts that are linked to their guardians’ main accounts.

Said guardians must actually pull the trigger on bond purchases, but each bond is deposited directly into the minor’s custodial account. Of course, there’s nothing stopping minors from being in the room when their guardians make these purchases – parents who wish to expose their kids to financial instruments other than checking and savings accounts can use this interface as an educational tool.

Advantages of Series I Savings Bonds

1. Protection Against Inflation

I-bonds boast a built-in hedge against inflation. When interest rates are low, this hedge isn’t spectacular – since 2010, the Consumer Price Index-chained inflation adjustment has exceeded 2% for just one six-month period. For most of that time, it has been stuck well below 2%. Then again, the annual inflation rate hasn’t exceeded 2% since the mid-2000s.

Even if I-bonds don’t beat inflation by a wide margin, the fact that their rates fluctuate in response to on-the-ground inflation pressures is a big deal. Contrast this built-in protection with that of a 10-year T-bill. At the moment, the 10-year T-bill yields about 3.2%. That’s significantly below the current inflation rate of 8.6%, which means the 3.2% T-bill actually has an inflation-adjusted yield of about -5.4%. Meanwhile, newly issued I-bonds sport starting interest rates of 9.62%, beating price increases by about 1% annually.

Since this instrument’s rates are designed to rise in response to inflationary pressures – regardless of prevailing rates at the time of issue – even bonds purchased before said period of inflation would be protected against soaring prices. By contrast, T-bill buyers are stuck with the same interest rate for the decade-long lifespan of their bond, no matter what happens to consumer prices during that time. For conservative investors, the choice is clear: An inflation-protected, but still safe, bond like the Series I offers significant benefits over fixed-rate-only securities like 10-year T-bills.

2. Clear Tax Benefits

Since they’re issued by the Federal Government, I-bonds aren’t subject to state or local taxes. Additionally, the flexible tax reporting methods – accrual and cash-out – allow you to choose how you’ll be taxed on your interest income. For example, if you’d prefer to avoid a big tax bill for the year in which you redeem your bonds, you can use the accrual method to spread the cost over many years. If you’d rather not pay tax on income that you can’t yet access – after all, I-bond interest is plowed right back into the bonds’ face value on a semiannual basis – you can defer the pain with the cash-out method.

I-bond holders who use their bonds’ principal and interest payments to cover qualifying educational expenses can avoid federal taxation, provided that they meet certain income requirements and purchase the bonds after they turn 24.

3. Long-Term Security

I-bonds are backed by the full faith and credit of the federal government. That alone should be a powerful argument for their safety, but their dowdiness offers an additional layer of security. I-bonds – with their $10,000 annual buying limit – simply can’t be purchased in large enough tranches to attract institutional buyers, market-makers, or other players who might act as destabilizing influences.

Short sellers who dabble in bonds avoid I-bonds in favor of vehicles with laxer purchasing limits; the mandatory 12-month holding period keeps short-term investors out of the space. As an I-bond buyer, you won’t have to worry about risk-seeking players ruining your carefully laid investment plans.

4. Flexibility and Liquidity

Unlike regular Treasury bonds, corporate bonds, and some other fixed-income securities, Series I savings bonds are both flexible and liquid. For evidence of the former, look to this vehicle’s rock-bottom minimum-purchase value of $25 and its razor-thin buying increments of one cent. For confirmation of the latter, refer to its relatively short 12-month holding period and its manageable three-month interest penalty for short-term holdings. Every I-bond comes with a 20-year maturity period and an optional 10-year extension, but these figures are mere benchmarks – you shouldn’t feel obligated to hold onto your bonds for decades.

5. Educational Benefits

If you commit to using your I-bonds to fund certain educational endeavors, you may avoid federal taxation on your earnings. To do so, you must prove that you were at least 24 years old when you purchased the bonds and that you spent said earnings on qualifying educational expenses for yourself, your dependents, or your spouse. These typically include:

These tax benefits typically don’t extend to the cost of textbooks, activity fees, room and board expenses, athletics, and other nonessential expenses.

Disadvantages of Series I Savings Bonds

1. Annual Purchase Limits

If you’re hoping to move your life savings into a more conservative type of security, you’ll have to look elsewhere. For individual holders, the Treasury Department limits electronic I-bond purchases to $10,000 per year, and paper purchases to just half that. If you’re a typical saver, this is probably enough to serve as a sizable but not disproportionate slice of your portfolio.

By comparison, individuals’ purchases of electronic TIPS – Treasury Inflation-Protected Securities, which accrue interest at a fixed rate that typically exceeds the rate of inflation – are capped at $5 million per auction. This upper limit is obviously out of reach for rank-and-file investors, but the distance between $10,000 and $5 million is great. A virtually unlimited purchasing cap may have its uses for savers who can afford to sock away more than $10,000 per year.

2. Restrictions on Educational Uses

I-bonds are useful for college savers, but their educational tax benefits do come with some restrictions. To avoid federal taxes on bonds purchased for this purpose, you need to mind these caveats:

3. Highly Variable Returns

Although Series I bonds’ earning power is inflation-protected, these securities won’t make you rich. With inflation at historical lows in the early 2010s, I-bonds earned an annual return of little more than 1%. This was just over half the rate of return on the 10-year T-bill, which is often regarded as the benchmark for fixed-rate, low-risk securities.

Then again, I-bonds’ inflation protection is clear in the more inflationary environment of the early 2020s, where the return modestly exceeds the inflation rate. T-bills, meanwhile, continue to lag inflation.Additionally, current rates on five-year CDs offered through online institutions such as Ally Bank and Synchrony Bank remain in the 1% to 4% range, well below the inflation rate.

4. No Bidding Framework for Investors

When you buy an I-bond, you know what you’re getting. For some investors, this is probably a good thing. For others, it leaves out an essential piece of the investing puzzle: the profit motive. Since you can’t bid on your initial purchase of an I-bond and can’t rely on fluctuations in value to pad your margins, your bond’s interest rate serves as your sole source of return. While the inflation-adjusted component of said interest rate offers some opportunity for growth, you shouldn’t expect eye-popping returns.

By contrast, you can bid your heart out for electronic TIPS. For regular investors, bidding for TIPS is noncompetitive; you must accept the rate that the Treasury Department determines at the start of each auction. Like I-bond rates, though, rates on TIPS are calculated according to the prevailing rate of inflation. Better, the noncompetitive bidding system guarantees that you’ll receive the exact security, in the exact quantity, that you requested. You won’t be muscled out by more experienced investors.

How to Invest

There are two ways to buy and hold Series I savings bonds:

TreasuryDirect is administered by the U.S. Treasury Department and is available on a 24-7 basis. When you buy through this portal, you agree to accept a secure online account in place of an old-fashioned bond certificate. While you won’t have the satisfaction of holding a valuable piece of paper, you also won’t have to worry about losing your bond. (Although, as registered securities, I-bonds are impossible to lose – after verifying your identity and buying history, the Treasury Department will happily replace lost certificates.)

If you want to buy multiple, small-value bonds over the course of a year, TreasuryDirect also lets you set up a recurring purchase schedule or snag electronic bonds directly via a payroll deduction program known as the Payroll Savings Plan. Neither tool is available to holders of paper bonds, but individuals can purchase both electronic and paper I-bonds with federal tax refunds.

Final Word

Series I savings bonds offer impressive tax advantages, decent rates of return for guaranteed investments, and some protection against inflation. They’re also flexible, liquid, and easy to purchase or sell. On the other hand, I-bonds come with frustrating restrictions that may alienate seasoned investors or folks who have plenty of money to burn.

The bottom line: They’re not for everyone, but they do have an important role to play in a balanced, fundamentally conservative portfolio. If you think they make sense for your needs, give them a try – it’s not like you’ll lose money on the deal.

Have you ever held Series I savings bonds in your portfolio? Would you recommend this class of investment to others?

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Brian Martucci

While federal student loans tend to have the lowest interest rates and most repayment options, they also have caps on the total amount you can borrow every year.

If you need more money for school, you may have to resort to private student loans, which don’t have the same borrower protections federal loans have. That’s why it pays to step back, consider your financial needs, and choose the best private student loan company for your needs.

Best

While federal student loans tend to have the lowest interest rates and most repayment options, they also have caps on the total amount you can borrow every year.

If you need more money for school, you may have to resort to private student loans, which don’t have the same borrower protections federal loans have. That’s why it pays to step back, consider your financial needs, and choose the best private student loan company for your needs.

Best Private Student Loan Companies

Regardless of their flexibility or perks, private student loan options are credit-based, unlike federal student loans. You have to have good credit to qualify. Additionally, the interest rate you can get depends on your credit profile.

That makes it tough for younger undergraduates who haven’t yet established a credit history. It’s one of the many differences between undergraduate versus graduate student loans. Thus, undergraduates may need to apply with a co-signer.

If you don’t know your credit history, check your credit score before applying for a loan.

Be aware that lenders’ annual percentage rates (APRs) and terms are subject to change. Always check the lenders’ websites for the latest information.

Also, while a lower interest rate helps you save money, it’s not the only loan term to look for when comparing private loan offers. The best lenders allow you to defer payments while in school, have flexible repayment options, and lack origination fees, prepayment penalties, or excessive late fees. They also offer perks like autopay discounts.

These options help you save money just as much as qualifying for the best rates. That said, these lenders earn the highest marks for their lowest rates and widest variety of options.

1. Credible

Technically, Credible isn’t a lender but a marketplace of lenders where you can search for and compare prequalified rates for various loan types, including private student loans, personal loans, mortgages, credit cards, and mortgage and student loan refinancing. It partners with several lenders that offer private student loans.

Credible might be the best fit if you haven’t applied for a loan or credit before and are unsure of the kinds of loans your credit profile could qualify for. You can experiment by entering your information on its own, then entering information with a co-signer to see your options before applying and submitting to a hard credit check.

Ultimately, the best student loan for you is the one that offers you the lowest interest rate and the best possible terms. But it’s hard to know which is best without comparing offers. That makes a marketplace like Credible a useful option.

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2. LendKey

LendKey is also a marketplace of lenders. However, unlike Credible, its lenders are primarily credit unions and community banks. It partners with these nonprofits to offer private student loans, student loan refinancing, and home improvement loans.

Additionally, while LendKey isn’t the lender, it services the loans (manages all payments and billing). It also originates all the loans for its partner lenders, which work with LendKey through its digital platform.

LendKey’s loan options are pretty typical for the space without many financial perks that make it stand out from competitors. However, it’s a good option if you prefer to support and work with nonprofit credit unions or smaller community banks rather than large, for-profit institutions.

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3. RISLA

RISLA, which stands for Rhode Island Student Loan Authority, is a nonprofit based in Rhode Island. Despite the name, it lends to students in all 50 states and the District of Columbia.

One factor that makes it stand out is its relatively low rates, with an interest rate cap at 6.74% for all borrowers.  

Another standout feature is its income-driven repayment plan. RISLA is one of the only private lenders to offer an income-based plan, a useful safety net for borrowers who struggle to repay their loans after graduating.

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4. Ascent

Ascent is a student loan program created by financial technology company Goal Structured Solutions and lender Bank of Lake Mills. It offers several features, including some its competitors don’t, like unique underwriting considerations and a cash-back reward.

Thus, Ascent is a good option for students who need more flexibility than most private lenders offer, especially if you’re unable to apply with a co-signer but don’t have a strong credit history of your own. It’s also a unique option offering expanded opportunities to cover professional degrees, including business, medical, dental, and law degrees and Ph.Ds.

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5. SoFi

SoFi is a top online lender well known for private student loans and student loan refinancing. SoFi borrowers become SoFi “members” for free and have access to banking, investing, financial planning, career coaching, member events, and rewards.

And its new SoFi Points program allows you to get rewarded for using all SoFi’s financial tools, including saving, spending, and monitoring your credit with your SoFi checking, savings, and credit card. You can use points toward paying down eligible SoFi loans.

Customers tout SoFi’s customer service, so it’s a smart choice if that’s important to you. SoFi is also a good fit if you want to employ financial management tools to get started with banking or investing in addition to borrowing for school.

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6. Earnest

Earnest is a student loan servicing tech company that offers perks focused on flexibility and borrower success.

This company accounts for college students who need flexibility from a lender as they start their careers after school. It could make a good fit for students in fields that don’t promise high salaries and job stability right after graduation.

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7. College Ave

College Ave is another top lender that specializes in both student loans and student loan refinancing. Borrowers get access to multiple loan options, and there’s even a monthly scholarship contest.

College Ave could be a good fit for students attending community colleges or taking only a class or two at a time, as it offers special perks for these types of students. It could also be an excellent fit for grad and professional students, as it offers low-rate loan options for graduate degrees as well as deferment terms for things like medical residencies and fellowships or law clerkships.

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8. Citizens Bank

Citizens Bank is a traditional bank with branches in New England and online banking available to anyone in the U.S. It offers private student loans and student loan refinancing in addition to banking, credit cards, home loans, auto loans, and investing services.

Though its offers are pretty standard in the student loan space, this company is a good fit for anyone who prefers to work with a traditional institution, especially if you live in the Northeast and want access to brick-and-mortar branches.

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9. Discover

Discover is a decades-old financial institution best known for its credit cards. Its rapidly expanded its capabilities in consumer banking and lending during the past 15 years.

Discover is a smart option for borrowers who want assistance and motivation to establish strong finances. Its products support building or rebuilding credit. And its flexible options let you stay on track, even if you make a mistake or experience financial hardship as you get started after school.

The bank also offers a Discover it cash-back credit card for students with 5% cash back at places students commonly shop, like Amazon, grocery stores, and restaurants. And its fee-free cash-back online checking account is a good option that can travel with students during and beyond school.

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10. Sallie Mae

Sallie Mae is a go-to private student loan lender that’s been around since 1972. Since its founding, it’s gone through iterations, which might confuse some borrowers into thinking this is a government or government-associated lender.

In its current iteration, Sallie Mae simply offers private student loans. In the past, it has originated federally guaranteed loans and serviced federal student loans, but it no longer does either of those.

This lender is the best option for anyone who wants to borrow for education most lenders don’t cover, including K-12 and trade schools.

Learn More

Final Word

Before applying for any loan, look for college scholarships and grants that could fund some of your education without debt.

As part of your grant search, always fill out your Free Application for Federal Student Aid (FAFSA) to see your aid options. The form gives you access to more than federal student loans. It also ensures you get any federal or institutional grants you qualify for.

Send in your FAFSA as early as possible as early as possible to ensure the greatest access to aid. Institutional aid is often awarded early on a first-come, first-served basis. The FAFSA opens for submission each year on Oct. 1, and you must submit no later than June 30 of the academic year for which you require aid.

After you exhaust all your free or cheap options for financing college, including federal student loans, private student loan lenders can fill in any gaps.

When you compare private student loan companies, most of them will promote their financial appeal: the lowest interest rates and no fees. You need to go deeper to make the best decision for your (or your child’s) future finances.

Just about any lender you find can offer low interest rates if your credit looks good. And most have eliminated fees to stay competitive. What sets them apart are their unique perks and programs. Review those closely to find the lender that best sets you up for financial success after college.

For example, SoFi’s integrated financial services and community let you learn about and manage your finances all in one place. Earnest accounts for the job search and early career hurdles you might face after school. Discover offers rewards and repayment assistance to support borrowers with low or unstable incomes. Look for perks and programs that fit your lifestyle and financial needs.

After you graduate, it’s always worth seeing whether you can get an even lower rate and better terms. Fortunately, you can refinance your student loans as often as you can get approved. If you’re looking for refinancing options, perks and repayment flexibility are just as crucial as they are with new loans.

But remember: When you refinance a federal student loan with a private lender, you may save money with a lower interest rate. But you also forfeit tons of options for repayment and loan forgiveness that come with federal loans.

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Sarah Graves

My first jobs were not high-paying jobs. Not by a long shot. I earned a couple of quarters above minimum wage as a part-time usher at a small movie house. Then, I was a cashier at the supermarket across the street, earning $2 above minimum wage.

I still think fondly of my time at the supermarket. It taught me that not all part-time jobs are thankless, tedious affairs made worse by pitiful pay. Subsequent workplace experiences solidified this conviction. For instance, I now know what it’s like

My first jobs were not high-paying jobs. Not by a long shot. I earned a couple of quarters above minimum wage as a part-time usher at a small movie house. Then, I was a cashier at the supermarket across the street, earning $2 above minimum wage.

I still think fondly of my time at the supermarket. It taught me that not all part-time jobs are thankless, tedious affairs made worse by pitiful pay. Subsequent workplace experiences solidified this conviction. For instance, I now know what it’s like to take a job you love for less money.

And I’ve discovered plenty of part-time jobs — some of which require no specialized educational credentials and little relevant experience — that pay far better than my supermarket gig did.

Best Part-Time Jobs That Pay Well

These are among the top part-time jobs that offer decent hourly pay. Not included are gig economy job opportunities through app-based service providers like DoorDash, Postmates, and Instacart — opportunities that may offer competitive pay, though usually without the legal protections of employment.

Unless otherwise noted, wage and job growth data comes from the Bureau of Labor Statistics (BLS) Occupational Outlook Handbook.

1. Real Estate Agent

If you have a high school diploma, a big personality, and a relentless work ethic, there’s a good chance you can make it as a real estate agent. Even if you only sell houses as a side gig, which most brokerages are happy to oblige. Flexibility is the name of the game.

Real estate agents don’t need real estate broker licenses, which typically take one to three years to obtain. State-issued agent licenses are easier and quicker to get, though requirements vary by jurisdiction. You may need to pass a background check to get a seat at a real estate brokerage.

Bear in mind that only real estate brokers may own and operate real estate brokerages and hire real estate agents. In other words, operate and grow a real estate sales business. Even after becoming licensed, agents must work under licensed brokers who may, in turn, operate out of franchised brokerages such as Re/Max or Coldwell Banker. Brokers take a cut of agents’ commissions, reducing take-home pay but not drastically.

2. Fitness Instructor

Fitness instructors typically work out of private or public recreation centers, private gyms and health clubs, and practice-specific facilities, such as yoga and spin cycle studios. Some focus exclusively on one-on-one or small-group training; others lead larger groups.

Direct-employed fitness instructors usually have the option — and may be required — to work part-time, depending on class schedules and client volumes. Self-employed fitness instructors string together multiple contract arrangements — leading an early-morning yoga class at one gym, then heading to another facility for a mid-morning Pilates session, for instance. Some basically work full-time jobs in the process.

Other instructors supplement or replace traditional in-person training with remote instruction built around dedicated YouTube channels and anchored by distinct personal branding. Selling subscriptions to your personal fitness training channel is a great passive income opportunity. And while not as passive, you could further boost your earning potential — and personal brand — by partnering with major fitness brands like Peloton.

3. Dental Hygienist

If you’re a regular at the dentist, you’re already familiar with dental hygienists’ duties. They include:

Many hygienists work part-time by choice, balancing family obligations or other income streams with the dentist’s chair. If you’re not planning to work full time as a hygienist, you might wonder whether getting an associate’s degree in this field is worth the expense and time commitment, but the high hourly earning rate may prove irresistible.

Plus, hygienists work in predictable office environments during regular business hours. That’s an appealing prospect for busy people.

4. Tutor

Tutoring is an extremely flexible job that’s ideal for subject matter experts seeking part-time or seasonal work. It’s a popular off-season pursuit for full-time teachers as well. I’m friends with a math teacher who spends most of his summer break as a math tutor, pulling down a pretty impressive side income in the process.

You don’t have to be a licensed teacher to find success as a tutor, though. All you need is some sort of credential — ideally, a two- or four-year college degree — in your chosen subject. Many tutors are college students working toward said degrees.

Lots of tutors are self-employed, with flexible hours. But you’ll have an easier time finding clients and spend less energy managing your business when you work through a reputable company like EF Education First or VIPKid.

5. School Bus Driver

Growing up, you probably had a favorite school bus driver. I remember mine, a jovial older guy with jokes and stories galore. He seemed impossibly old at the time, but I’m pretty sure he was a recent retiree trying to stave off boredom.

If you’re willing to sit for your state’s commercial driver’s license exam and endure a couple of months of on-the-job training to learn routes and safety requirements, you too can become some kid’s favorite school bus driver.

Depending on class schedules, passenger volumes, and personal preference, school bus drivers generally work early mornings and mid- to late afternoons. There’s a great deal of part-time potential here, though scheduling may be strict and drivers may be subject to minimum hours-worked requirements. But the hourly pay is pretty good, and many drivers belong to labor unions, which offer job and wage security.

6. Phlebotomist

Phlebotomists collect and manage blood samples, which is why they’re sometimes — uncharitably — called “vampires.”

But part-time phlebotomists have the last laugh. Most work in clinical settings, such as hospitals and outpatient medical facilities. Others work on contract with nonprofit organizations such as the American Red Cross. In addition to drawing blood, phlebotomists are responsible for labeling, storing, and entering data for blood samples.

Phlebotomy isn’t a job for the squeamish. Strong nerves, sound hand-eye coordination, healthy reserves of compassion, and attention to detail are all essential to success in this field. If you’ve got those basics down, you’ll find plenty of part-time or occasional work in phlebotomy at outpatient clinics and blood drives, respectively.

7. Child Care Worker

Child care workers work in a variety of settings: at pre-K schools, multilocation childcare franchises, independently operated day care facilities, and private homes. Although supervisory and specialty positions generally require some postsecondary education, it’s easy for high school graduates and GED holders to find entry-level work in this field.

It’s also easy to find part-time work in child care, whether that means a morning shift at a licensed day care facility or two days per week in a private home that you find through Sittercity. Despite falling birth rates, child care work is likely to be in high demand for years to come.

Because larger day care facilities may pay less than private families, you might need to explore that sort of relationship to maximize your income. You might want to earn extra income with one-off or recurring sitter jobs as well.

8. Massage Therapist

Massage therapy isn’t the laid-back profession you might assume it to be. Many massage therapists work alongside physical and occupational therapists, helping seriously injured or impaired patients cope with severe pain or impaired physical function. Even massage therapists working at resorts or day spas, where patients are more likely to be physically healthy, must be patient and attentive to detail.

Massage therapists typically work in half-hour or hour-long blocks, which makes for flexible scheduling. If you only want to work three or four hours per day as a massage therapist, you should have little trouble finding a home for your services.

The downside is that massage therapists often work as independent contractors, losing out on some of the protections of traditional employment. These include OSHA health and safety regulations and protections against certain types of discrimination, including age discrimination.

9. Income Tax Preparer

Income tax preparation is highly seasonal work, so it’s not ideal for people seeking year-round part-time work. Tax preparers’ peak season runs from late January through mid-April. During this period, tax preparation companies need as much help as they can get. If you’re looking for full-time work, it’s yours, but if you’d prefer to work a few hours after you get out of your day job, you can probably make that happen too.

Tax preparation isn’t particularly skilled work, although you do need to be familiar with tax preparation software and know basic math. Income tax preparers are not certified public accountants (CPAs) or enrolled agents, both of which require extensive study — and, for CPAs, the equivalent of a bachelor’s or master’s degree.

Still, tax preparers must be patient, attentive to detail, and tolerant of repetition. If working face to face with taxpayers, you need strong communication skills too. And you must also be prepared to find work elsewhere during the nine or 10 months that your skills aren’t in demand. Becoming a part-time bookkeeper is a good option as it requires similar skills and training.

10. Web Developer

Nearly 20% of web developers are self-employed. They find their own clients, set their own hours, and otherwise march to the beat of their own drum. If they want to work part-time, they are free to do so.

A close friend of mine spends a few hours each week, usually in the evenings or on weekends, on freelance Web development projects referred to him by mutual acquaintances. I don’t know exactly how much he makes on Web development, but it’s significant. When he went back to school full-time, he was able to support himself without really upping his development workload.

Web development is also surprisingly easy to break into. Many developers are self-taught, though more senior full-time roles may require an associate degree in computer science or graphic design. You’ll also need to pass pre-hire development tests, which can be rigorous.

If freelancing or part-time work is your thing, it may be best to put together a portfolio of your best work, hang out a shingle on a digital job board, and let your results speak for themselves.

11. Graphic Design

Graphic design is another field popular with freelancers and solopreneurs. Those seeking full-time employment with blue-chip ad agencies and marketing firms generally need bachelor’s degrees to get noticed, but talented designers can get by on the strength of their work product alone.

Plenty of graphic designers work as glorified hobbyists who happen to attract paying clients. My Web developer friend moonlights as a graphic designer and seems to do well. If you’re just starting out, create a profile on freelance work platforms such as Upwork, which are far more visible than a personal website.

12. Caterer

Caterers belong to the broad and vague category of “food and beverage serving and related workers,” which the BLS defines as pretty much any food service occupation other than restaurant servers.

Most food service jobs are ideal for part-time workers, and catering is especially so. While professional caterers might work enough to qualify as full-time employees, less-seasoned caterers might pick up a gig every week or month to supplement income earned elsewhere or while studying full time.

At upscale event venues and posh private residences in major metro areas, caterers may earn substantially more than the median hourly rate for food service workers — perhaps $15 or $20 per hour before tips.

13. Local Delivery Driver

The flip side of the online retail boom is healthy growth in local delivery driver positions. Local delivery drivers, which the BLS defines as “delivery truck drivers and driver/sales workers,” typically drive commercial trucks or vans within local delivery areas. These areas may range in size from many rural counties to a few square miles of an urban core.

Local delivery hours and pay vary by specialty. When I worked in the restaurant business, I crossed paths with produce and meat delivery drivers whose days began well before dawn and ended by mid-morning. These days, I’m more likely to wave to the UPS woman delivering packages during regular business hours.

Generally, parcel delivery is seasonal, spiking around the holidays, while wholesale delivery remains busy year-round.

14. Restaurant Server

Restaurant service is the granddaddy of all part-time jobs and arguably the original “customer service representative” gig. According to the BLS, more than 2.6 million restaurant servers work in the United States, with about 400,000 predicted to join their ranks through 2030. Automation may eventually curb or reverse food service job growth, but the work is there for the taking until that time.

Not all restaurant service jobs are created equal, however. Fast-food and fast-casual service workers earn little more than minimum wage and may not be eligible for tips, making the job appropriate more for extra cash than supporting a family. But full-time veteran servers at Michelin-starred — or aspiring Michelin-starred — restaurants may earn close to six figures after tips.

Whatever the type of establishment, it’s not difficult to find part-time restaurant service work with little training required. 

15. Mail Carrier (Postal Service Worker)

Like being outside? Love walking? Have a high tolerance for heat and cold? Don’t mind getting rained, snowed, or sleeted on? 

You’d be a great part-time mail carrier. You’ll earn a decent wage doing it — around $25 per hour, on average, with starting positions closer to $20 or $22 per hour. But you will have to work at least four hours per shift, possibly more.

Prefer to spend your working hours indoors? Postal facilities need a steady supply of warehouse workers, customer service clerks, and machine operators too. Wages are competitive in those part-time jobs too.

16. Administrative Assistant

Office-based administrative assistants aren’t as plentiful as they used to be now that lots of professional services work gets done remotely. But they’re still needed, and overall demand for professional assistants hasn’t declined much — it has merely shifted remote, giving rise to an army of virtual assistants who can work from anywhere and make their own hours.

Virtual assistants do have to contend with an international labor market. Lots of U.S.-based companies use assistants based in lower-wage countries like India and the Philippines. That holds down wages across the industry — although plenty of employers are willing to pay more for assistants in their own time zones.

Final Word

If none of these jobs call your name, don’t despair. Many occupations not on this list are amenable to part-time work, from being a freelance writer or mail carrier to working part-time in an entry-level health care position. And many employers happily oblige full-time employees looking to downshift to part-time work for family or health reasons.

This flexibility isn’t limited to low-skill or modestly compensated occupations, either. Most of the physicians at my wife’s clinic work less than full time. Keep that in mind as you ponder going back to school or changing careers. If your employer is willing to be flexible, you might not have to quit your job entirely before you’re ready to make the leap.

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Brian Martucci

At first glance, all student loan refinance lenders look a lot alike. But once you delve into the details, multiple differences in their loan features can make a significant difference in how easy it is to get or pay off the loan.

For example, some offer cosigner release, allowing you to take full financial responsibility for your loan after a series of on-time payments — an attractive feature for reluctant cosigners. Others allow you to combine loans with your spouse to get a single lower monthly

At first glance, all student loan refinance lenders look a lot alike. But once you delve into the details, multiple differences in their loan features can make a significant difference in how easy it is to get or pay off the loan.

For example, some offer cosigner release, allowing you to take full financial responsibility for your loan after a series of on-time payments — an attractive feature for reluctant cosigners. Others allow you to combine loans with your spouse to get a single lower monthly payment. There are also deferment and forbearance options and special discounts and interest rate reductions.

Since refinancing your student loans can impact your finances for years to come, it pays to compare lenders to find the best student loan refinancing company for you.

Best Student Loan Refinance Companies

Of the best-known and highest-ranking student loan refinance lenders, these companies get high marks for their low interest rates, flexible terms, excellent customer service, extra perks, and borrower reviews.

Each does at least one thing really well. And our top overall pick offers the best value for the greatest number of borrowers, in our opinion.

Best Overall: Credible

Technically, Credible isn’t a lender. It’s a marketplace where you can search for and compare rates from its partner lenders using one convenient online application. 

Which is precisely why it tops our list. When time is of the essence, finding the best student loan refinance offer means sorting through lots of different offers quickly, without soliciting each one individually.

Plus, Credible doesn’t share your information directly with lenders and uses a soft credit inquiry to match you with prequalified rates. So you can easily shop around to find the best refinance loan for you without it affecting your credit score.

And if you like a rate, you can apply for the loan and get a final offer in as little as one business day.

Additional features:

Refinance Your Student Loans With Credible

Best for Personalized Service: Education Loan Finance

Education Loan Finance (ELFI) has some drawbacks, offering few perks and no co-signer release. But it scores highly with borrowers for its excellent customer service.

One reason is that ELFI matches borrowers with a dedicated, highly trained personal loan advisor. Borrowers can call, text, or email their advisors to ask questions throughout the refinancing process and throughout the life of their loan.

In fact, ELFI’s customer service is so outstanding, it lands it in the top ranks of refinance lenders year after year. 

Additional features:

Refinance Your Student Loans With Education Loan Finance

Best for Bigger Loan Balances: Earnest

Earnest stands out for its flexible refinancing options, its unique approach to underwriting, and its unlimited loan size. 

No matter how much student debt you have, you can refinance it in its entirety here. That’s great news for borrowers with high-dollar professional school loans on top of undergraduate debt.

And you’re more likely to qualify with modest income or less-than-perfect credit thanks to a holistic underwriting approach that looks at your complete financial picture — how well you can afford your expenses, how regularly you save, and whether you have a retirement account.

Additional features:

Refinance Your Student Loans With Earnest

Best for Financial Hardship Options: RISLA

RISLA is another lender that stands out for its borrower protections. Its option to defer loans up to 24 months for financial hardship is longer than most other lenders and provides welcome relief for borrowers in volatile industries. 

Even more singular, RISLA offers a unique income-based repayment plan for borrowers who fall on hard times. You can reduce payments to 15% of your monthly income and repay them over a 25-year term. Similar options are currently only available to federal student loan borrowers through income-driven repayment plans. 

Additional features:

Refinance Your Student Loans With RISLA

Best Value-Added Products and Services: SoFi

SoFi, short for “Social Finance,” is one of the largest and most well-known student loan refinance lenders.

It’s consistently rated one of the top lenders because it offers a comprehensive array of benefits, including unemployment protection, career coaching, and free financial planning along with competitively low interest rates and flexible repayment options.

SoFi also offers a slew of other financial products and services, including online banking (checking and savings accounts) and a commission-free investment platform.

And its new SoFi Points program rewards you for using all these financial tools, including activities as simple as checking your credit score. You can redeem points toward paying down your eligible SoFi loans.

Additional features:

Refinance Your Student Loans With SoFi

Best for Spousal Loan Consolidation: Splash Financial

Splash Financial is an online marketplace like Credible. After you apply with Splash and receive multiple lender offers, you’ll choose the bank or credit union that offers you the interest rate and terms that work best for you.

But Splash really stands out as one of the very few lenders that offer spousal loan refinancing. Married couples can consolidate their loans into one joint loan. That’s great news for spouses with unequal incomes — refinancing into a joint loan can help smooth out cash flow issues in such households.

Additional features:

Refinance Your Student Loans With Splash Financial

Best for Lower-Income Borrowers: LendKey

Like some of the other entrants on this list, LendKey is also a marketplace of lenders. But LendKey stands out because its exclusive network of lenders consists mainly of credit unions and community banks. As such, borrowers can often find student loan products with highly competitive interest rates and those that may be a better fit for their specific refinancing needs.

LendKey’s partners lend to borrowers with incomes as low as $24,000 without a co-signer and $12,000 with one. Plus, some LendKey partner lenders offer more flexible repayment options and generous economic hardship deferment terms. All told, LendKey is a top choice for those with low income.

Like other student loan refinancing marketplaces, LendKey uses a single application to match borrowers with the best possible interest rates for refinancing their student loans. But it also manages the application process, services the loans, and provides all the customer support.

Additional features:

Refinance Your Student Loans with LendKey

Methodology: How We Select the Best Student Loan Refinance Companies

We use several key factors to evaluate the best student loan refinance companies. Each relates in some way to their loans’ cost, terms, flexibility, or overall borrower experience.

Interest Rate Range (APR)

The interest rate, or annual percentage rate, is arguably the most important feature of a student refinance loan. After all, most people refinance to get a lower interest rate and a lower monthly payment to match.

Student loan interest rates do depend on prevailing benchmark rates, which lenders don’t control. But some lenders make a point of offering lower rates — or lower starting rates for well-qualified borrowers, at least. And they’re worth pursuing.

Loan Terms

All else being equal, your student loan term is inversely proportional to your payment size and directly proportional to the total amount of interest you pay over the life of the loan. The shorter the term, the higher the payment, and the lower the total interest charge.

Loan Repayment Options and Frequency

Monthly payment frequency is standard in the world of installment loans, but it’s not the only option. Some lenders offer a biweekly payment option, which may work better for borrowers who get paid every two weeks and can also reduce the total cost of the loan thanks to more frequent principal payments.

Separately, lenders that offer an array of flexible repayment options do well in our book. Many private lenders don’t offer income-based repayment programs, however.

Income Requirements

Every lender has minimum income requirements for student loan refinancing. The best lenders have very low minimums — often below the poverty line. 

Credit Score Requirements

Every lender has minimum credit score requirements for student loan refinancing as well. These aren’t always clearly disclosed, so we give preference to lenders that are transparent about what they’re looking for. Generally, loans get harder to find the farther you venture into subprime territory, and many lenders don’t work with borrowers whose FICO scores are under 600 unless they show up with a cosigner.

Deferment Options

If you fall on hard times, you want to know that you can temporarily pause your student loan repayment without going into default. Likewise, while you’re still in school and/or getting your feet under you after graduation, you want the flexibility that comes with temporary deferment. Bonus points for lenders that offer interest-only repayment during deferment periods, allowing borrowers to avoid costly interest capitalization.

Forgiveness and Cancellation Options

Private student loans tend to be harder to forgive or cancel than federal student loans, which is one reason why you should think twice about refinancing a federal loan into a private loan. But some private lenders are more flexible than others on this point.

Student Loan Refinancing FAQs

You have questions about refinancing your student loans. We have answers.

How Do You Refinance a Student Loan?

Start by checking your rate and evaluating lenders’ refinance offers. This part of the process won’t affect your credit score, but you will need to agree to a hard credit pull when you actually apply. That could ding your rate.

During the application process, you’ll need to substantiate your assets, income, employment, and other information so that the lender can evaluate whether you’re an acceptable risk. If you’re approved, the lender pays off the loans you’re refinancing and rolls the balances into a new loan with a new interest rate and monthly payment.

What Are the Benefits of Refinancing a Student Loan?

Many graduates refinance their student loans to lock in low interest rates, or at least lower rates than they got on the original loan.

If you can lock in a low interest rate, you can save significant amounts of money over the life of your loan, possibly enabling you to pay off your debt sooner so you can free up cash to save toward retirement, make a down payment on a home, or start a family.

Refinancing a student loan can also reduce your monthly payment, freeing up room in your budget for other expenses. Or it can shorten the term, reducing the time until you’re student debt-free — though this usually increases the monthly payment.

What Happens When You Refinance a Federal Student Loan?

Once you refinance your federal student loans, they’re no longer federal loans. A private bank owns them.

This means you lose all the benefits associated with federal student loans, including income-based repayment plans, extensive hardship options, more generous default terms, the option to consolidate multiple federal loans, and multiple forgiveness or cancellation options.

Before refinancing your federal student loans, make sure you don’t need these benefits more than you need a lower monthly payment or faster payoff.

Can You Refinance a Student Loan With Bad Credit?

It depends on the lender. You’ll definitely have more choices if you have good credit, but some student loan refinance companies work with borrowers whose credit is average or even impaired.

If your FICO score is much below 600, you may need a cosigner for your loan. Often, this is a parent or other relative willing to guarantee the loan should you default.

How to Select the Best Student Loan Refinance Option

As you’re researching student loan refinance companies, note that lenders’ annual percentage rates (APRs) and terms are subject to change. Always check the lenders’ websites for the latest information. The interest rate you qualify for depends on your credit profile, application, and the loan length you select.

The most creditworthy borrowers qualify for the lowest interest rates. That includes having a high annual income, low debt-to-income ratio, and a high credit score. If you don’t know yours, check your credit score before applying for a loan.

While a lower interest rate helps you save money, it’s not the only loan term to look for when comparing refinance loan offers. The best lenders lack origination fees, prepayment penalties, or excessive late fees. They also offer perks like autopay discounts.

They also have more generous deferment and forbearance options, including economic hardship deferment and in-school deferment. That’s crucial if you’re opting to refinance undergrad loans before going to grad school.

Although interest accrues on any deferred loans, the best student loan lenders allow you to make interest-only payments to avoid capitalization (the interest getting added to the principal loan balance when the deferment ends).

And if you can’t manage interest-only payments while in school, some top lenders have plans that allow flat-rate payments of low amounts, such as $25 per month, so you can tackle at least a portion of the accruing interest.

All these options help your bottom line just as much as qualifying for the best rates.

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Sarah Graves

I have been self-employed for a dozen years, and I love the flexibility and freedom of my schedule — setting my hours and being the boss. But one of the biggest challenges is applying for a mortgage. 

I’ve gotten a mortgage once and refinanced twice, but I was armed with more paperwork than my spouse or any other traditional W-2 employee. I needed to be extra patient and prepared for lenders to ask about differences from year to year. I had to explain why my income changed or my expenses increased. 

Mortgage

I have been self-employed for a dozen years, and I love the flexibility and freedom of my schedule — setting my hours and being the boss. But one of the biggest challenges is applying for a mortgage. 

I’ve gotten a mortgage once and refinanced twice, but I was armed with more paperwork than my spouse or any other traditional W-2 employee. I needed to be extra patient and prepared for lenders to ask about differences from year to year. I had to explain why my income changed or my expenses increased. 

Mortgage brokers can become anxious about the fluctuations inherent in self-employment, but if you can explain why your business changed from year to year, it makes the process easier. Getting a mortgage is quite possible. Just be prepared with extra time, patience, and paperwork. 

How to Get a Mortgage When You’re Self-Employed

Applying for a mortgage is never easy because you need solid credit and a down payment. The rules for self-employed individuals are the same as for everyone else. But documenting your income, cash flow, and client payments takes more paperwork than if you’re a W-2 employee who gets the same paycheck each week. 

Whether you’re looking to buy a home now or planning for the future, an affordable mortgage is within your reach, even if you’re self-employed. You just need to know how to make your application more appealing to lenders and what options you have. 

Making Your Application More Appealing to Mortgage Lenders

When you apply for a mortgage, your application must be rock-solid. That makes it difficult for lenders to turn you down. They want to ensure you’ll never miss a mortgage payment. To prove your creditworthiness means making sure your credit is top-notch and you can verify all your income. 

Demonstrate an Employment History of 2+ Years

Lenders want at least two years of employment history, including demonstrable proof you’re self-employed. 

You can prove your self-employment status by submitting tax documents and returns showing you’re a 1099 worker. They may also ask for a business license or the paperwork you used to set up a limited liability company (LLC). Your accountant can also provide a letter explaining your self-employed income and can answer any questions. 

Provide Income Documentation

In addition to tax returns, your lender might want to see the actual payments made from clients. You must document these payments and show proof of receipt. 

For instance, if one client sends an old-school check each quarter, you must show evidence of that quarterly check. If other clients pay you per project, you must also show that documentation. 

Online payments are now widespread, and you should be able to download those documents from your bank to illustrate consistent income. Some clients even pay via systems like Venmo, and those online documents are also available. 

Improve Your Credit Score

One of the biggest reasons for mortgage denial is having a low credit score, and you must run your credit report to determine whether you need to raise it. 

You’d like to have a score of 620 or higher. It’s technically possible to get approved if your credit score is lower. For example, Fannie Mae only requires a 580. But don’t count on that being an option. And the higher your credit score, the more favorable terms you’ll get.

You must check your credit score with all three agencies: Equifax, Experian, and TransUnion. Mortgage lenders typically pull all three and use the median score, so you need to know what they’ll see on each one.   

If there are errors, contact the credit-reporting agency and dispute them. If your report is accurate but the score still isn’t high enough, you need to improve your credit by doing things like paying bills on time and reducing debt. 

For your Experian score, you can sign up for Experian Boost for free. It factors on-time payment of regular bills like electricity and streaming services into your score. It only raises your Experian score, but since they use the median of all three scores, it could still help.  

One thing all credit rating systems scrutinize is the credit utilization ratio. For instance, if you have a card with a credit limit of $6,000 and you owe $3,000 on the card, your credit utilization is 50%. 

Many credit bureaus suggest you keep this rate no higher than 30%. So on a card with a $6,000 limit, you want to have no more outstanding credit than $1,800. If yours is higher, pay it down.  

Improving your credit score doesn’t happen overnight, but it’s essential to increase it as much as possible. For more information, see our article on improving your credit score.

Lower Your Debt-to-Income Ratio

Your debt-to-income ratio is how much you owe each month compared to how much you earn. That’s an essential factor lenders use to determine whether you’re a good candidate for a loan.  

To calculate your debt-to-income ratio, add up all your monthly debt obligations. Those include things like:

It does not include your regular expenses, such as utilities and food. Divide that number by your monthly gross income (before taxes). Then move the decimal over twice to the right to get the percentage.

For example, let’s say you have student loans and a car payment totaling $1,000 per month, and your gross monthly income is $4,000. 

$1,000 ÷ $4,000 = 0.25

After moving the decimal over twice to the right, we get a debt-to-income ratio of 25%.

Most lenders want a debt-to-income ratio of about 36% or lower and don’t want it any higher than 43%. If you have a monthly income of $6,000 and monthly debt of $3,000, then your debt-to-income ratio is 50%, which would be considered too high by many lenders. The task is to reduce your debt or increase your income. 

Build Your Emergency Savings

Being a business owner means your income can fluctuate, so lenders like to see that you have emergency savings ready to go. The mortgage is due each month, and if you lose a client or revenue stream, lenders are eager to know you still have a way to pay the mortgage. 

The amount you should save varies. But generally, you should have at least three months of expenses — and six months of payments would be even better. The goal is to start with at least $1,000 in savings and then build. 

Offer a Large Down Payment

Historically, people would save for years for a 20% down payment, making buying a house a long and arduous process. Then, the rules became lax during the 2007-2008 recession, when buyers had no down payment. After that crisis, lenders sought at least a 3% down payment. 

But for self-employed individuals, getting a home loan is easier if you’ve got a higher down payment. Indeed, a down payment of even 7% to 10% is attractive. And if you’ve got a down payment of 20%, you can avoid costly private mortgage insurance. 

Keep Your Personal & Business Expenses Separate

Each time I’ve gotten a mortgage or refinance, the lender has wanted the personal and business expenses to be separate. 

And depending on the nature of your business, it can be a challenge to separate them. But it’s not as hard as you imagine. If you’re still preparing to take out a mortgage, it’s not too late. It comes down to setting up one business account and at least one personal account. 

All your payments from clients would funnel into the business account. You pay your business expenses, such as Grammarly or QuickBooks, from that account. Then, you write yourself a monthly paycheck from the business account and put that money in your personal account, which you use to pay your monthly household bills. 

But not all business expenses are so straightforward. For instance, maybe you work from home and use some utilities or equipment for both business and pleasure. 

In that case, you must track how much you use them for work. You can then deduct that percentage of your bill, such as your internet charges, as a business deduction. Note that for some expenses, such as utilities, it may also depend on the size of your home office. Talk to an accountant for more information.

Ultimately, keeping your expenses separate makes it easier to provide your lender with a business profit and loss statement showing how much money the company has earned in a year and any debts. 

If it’s too late and you’ve kept your personal and business expenses together, you must also explain why you chose to do so. Lenders will allow it if you can reasonably explain how your business and personal expenses overlap, primarily if you work from home and use utilities like internet and trash services for personal and business use.  

Limit Your Tax Deductions

Tax deductions are exciting for those of us who are self-employed. But the problem is it reduces your income dramatically. Suppose you’ve got a monthly income of $6,000, which is $72,000 per year. That gives you good buying power for a house, depending on your debts. 

But if that $6,000 per month includes $3,000 of tax deductions, then the lenders only count your income as $3,000 per month, or $36,000 per year. 

While it’s appealing to write off as much as possible for tax purposes, lenders are interested in a consistent yearly income. If you had $5,000 in expenses one year and $15,000 the following year, it can look like a dramatic drop in revenue.

Instead, you can split the business expenses over multiple years to show a consistent income. For example, say you’re a podcaster who needs to upgrade your equipment. You can buy a new studio board this year, then upgrade mics, headphones, and editing software next year or over the next couple of years.

Or you can just depreciate the equipment on your tax returns. That allows you to buy everything you need upfront and take a portion of the deduction for each year you expect the equipment to be in service. 

But before opting for that route, speak with your accountant to ensure the type of equipment you need meets the IRS requirements. They can also help you determine which tax deduction strategies best suit your needs.

Home Loan Options for Self-Employed Borrowers

When purchasing a house, multiple loans are available to you, and each has its pros and cons. 

Joint Mortgage

A joint mortgage is simply a mortgage shared by multiple parties. It’s common for joint mortgage applicants to be spouses or partners. 

The self-employed person must still have solid credit, even if their spouse or partner receives a W-2 and has an excellent credit history. If both have stellar credit, then the interest rates go down. In a joint mortgage, lenders use the lowest credit score of the two.

But don’t be tempted to keep your name off the mortgage just because you’re self-employed or your credit score is lower. It’s best to have both spouses’ or partners’ names on the mortgage in the event of a separation, divorce, or death. 

But the other signatory on your joint mortgage isn’t required to be a spouse or partner. Your co-borrower could be a friend or family member. If you have a friend or relative you don’t mind living with looking to purchase a home, you can pool financial resources to buy a home sooner, qualify for a bigger loan, or offer a larger down payment. 

But think carefully about whether it’s a good idea to buy a house with a friend or relative. At the very least, you need to set up some guidelines, such as an exit strategy if one of you finds a romantic partner or wants to move. 

Whether it’s with a partner or friend, when you buy a house with a joint mortgage, you agree to share responsibility for the loan. But if your income fluctuates dramatically, having an applicant with a steadier income stream bolsters your application. 

Get a Co-Signer

If lenders are frowning at your application because of your credit report or fluctuating income, getting a co-signer can help. Unlike a co-borrower on a joint loan, a co-signer is someone who agrees to take on the financial responsibility of the loan if you can no longer make payments. Often, a family member such as a parent signs on as a co-signer. 

The co-borrower appears on the property’s title, and the co-signer doesn’t. Ideally, your co-signer has a much better credit score and history than you do. That reduces the risk to lenders and leads to more attractive loans.

But co-signing is a legally binding contract. The lender can come after the co-signer for payments if you default on the mortgage. 

Government-Backed Loans (FHA, VA, HUD, & USDA)

A traditional mortgage is an agreement between you and the bank that the bank will essentially buy you a house, and you’ll pay them back plus interest. The bank sets high standards to ensure they get their money back and get paid for the service.

But that leaves some borrowers unable to get a mortgage. Enter the federal government. Several government agencies have programs designed to help buyers, especially first-time home buyers, achieve their dream of homeownership.

You still get the loan at a traditional bank. But the government backs the loans, making them much less risky for lenders. The government does require you to meet rigid standards, but the income and credit score requirements are less stringent.

If you qualify for one of these government-backed loans, it could be well worth your time to apply:

Bank Statement Loan

A bank statement loan allows you to verify your income on a mortgage application using documented bank deposits instead of tax forms. 

This type of mortgage is attractive to self-employed individuals because they may not have conventional tax documents to verify income. And even if you have tax documents, your annual income may look lower than it really is because of tax deductions and write-offs. 

But you can’t simply state your income. You must show regular monthly deposits to qualify for the loan. So this loan is best for those who have multiple clients on monthly retainer, have customers who reliably order monthly, or can show steady income each month (regardless of the source).

But you should also apply for other loan types if you qualify. Bank statement loans are riskier for lenders and can come with a higher interest rate and larger down payments. 

Portfolio Loan

A portfolio loan is different from any of the other loans. You typically need good credit, a prior relationship with the lender, or to be a local business owner the bank would like to court for a long-term relationship.

As such, they’re rare. But it can be an excellent program for those who’ve had a few months with fluctuating income and are finding it challenging to get a typical mortgage.

Usually, the bank lends someone money, then sells the debt to another creditor for a profit so they can make money to offer more loans. But on a portfolio loan, they agree to keep it in-house, at least for a time. That means they have 100% of the liability if you default. 

The requirements may be less flexible, resulting in a higher interest rate and costlier fees. 

Work With an Experienced Mortgage Broker

Find a mortgage broker who’s worked with many self-employed individuals and understands the options available. 

You want someone who’s flexible, can make choices at their firm, and can take a holistic approach to your application. Too often, self-employed individuals get nixed because their applications don’t check all the boxes less experienced brokers want to check. You want someone who can help you make your application more attractive. 

Self-Employed Mortgage FAQs

There are some basic guidelines self-employed individuals must follow when applying for a mortgage. Homeownership is attainable, but you want your loan application to be stellar and show a good credit history as you go through the mortgage process. 

Are Mortgage Rates Higher for Self-Employed Borrowers?

The mortgage rates aren’t necessarily higher for self-employed individuals. If you have an excellent credit rating and can show years of consistent income with low debt, you should be able to secure a stellar interest rate. 

But if your credit rate is rocky and your income fluctuates, you might see higher interest rates. 

Is It Harder to Refinance a Mortgage if You’re Self-Employed?

It’s not necessarily harder to refinance a mortgage if you’re self-employed. But it takes more time to gather your paperwork. You must have at least two years of self-employed income, though many lenders appreciate more. If your income fluctuates, it takes more time to prove your creditworthiness. 

Final Word

It might seem overwhelming to save for a down payment and get a mortgage when you’re self-employed. You may worry you have to give up your dream business for a day job to get a house. 

But that’s not the case. You can have a business and a home as well. Just be patient. And if your credit rating isn’t excellent, go through the necessary steps to improve your credit.

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Lisa Shidler

Cash App is one of the most popular personal finance apps available today. The platform was launched by Square (now Block) in 2013 as a peer-to-peer payment app. Since then, it has grown to become much more. 

By 2018, the company enabled Bitcoin trading on the app. Today, the company generates billions of dollars per year in cryptocurrency trading fees as a popular place to buy and sell Bitcoin.

However, popular options aren’t always the best options. How does Cash App crypto trading stack

Cash App is one of the most popular personal finance apps available today. The platform was launched by Square (now Block) in 2013 as a peer-to-peer payment app. Since then, it has grown to become much more. 

By 2018, the company enabled Bitcoin trading on the app. Today, the company generates billions of dollars per year in cryptocurrency trading fees as a popular place to buy and sell Bitcoin.

However, popular options aren’t always the best options. How does Cash App crypto trading stack up against its competitors?

Key Features of Cash App Crypto

Cash App is one of the most popular finance apps on the market today and for good reason. Their app has several features that help simplify financial management. Some of the most exciting features you’ll find on the app include:

Simple Access to Bitcoin

Bitcoin is the most successful cryptocurrency to date. It’s likely where you’ll get your feet wet in cryptocurrency if you’re a beginner. 

Cash App has been all about a user-friendly interface that simplifies financial transactions and management from the very beginning. You’ll experience that high level of simplicity when you buy Bitcoin on the app as well. 

Buying the cryptocurrency is as simple as inputting the amount you’d like in U.S. dollar (USD) values and entering your PIN to complete the transaction. The app handles the rest. 

It’s worth mentioning that although you’ll find easy access to Bitcoin on the app, you’re not going to have access to any other cryptocurrency. This limitation was a primary reason Cash App Crypto didn’t score higher in our review of the service. 

Nonetheless, Cash App is a good place to start if you’re a beginner who wants to get your hands on a few bucks’ worth of Bitcoin. 

Take Custody of Your Bitcoin

Most digital banking solutions that allow you to bank with cryptocurrency are custodians of the cryptocurrencies you buy. In reality, that means you never really own your cryptocurrency. 

With no central authority dictating terms in the blockchain, ownership boils down to the crypto wallet address that holds the assets. If that digital wall ID is your custodian’s wallet, the blockchain doesn’t recognize the asset as yours. 

There are some perks to having a custodian. Many custodians are heavily secure, and they can restore access to your assets if you lose your password; both of these aren’t the case when using your own non-custodial wallet. 

Nonetheless, many crypto enthusiasts prefer to store their own crypto assets in their own secure wallets, and Cash App makes it possible. 

On Cash App, you can transfer your Bitcoin to any cryptocurrency wallet online. Of course, if you choose not to transfer your Bitcoin out of your Cash App account, Cash App will store it securely in its own cryptocurrency wallets. However, it’s nice to know you’re able to transfer your Bitcoin to your wallet at any time. 

Send Bitcoin to Friends & Family

As Bitcoin continues to gain in popularity, it’s becoming a great gift idea. It’s also being used as a peer-to-peer payment option. When you use Cash App, sending Bitcoin to friends and family is a breeze. 

If you’d like to send Bitcoin to someone else, all you’ll need to do is log into the app and tap the Airplane icon. Next, tap “Send Bitcoin.” Enter the amount of Bitcoin you’d like to send, the recipient’s cashtag, and your pin to complete the transaction. 

The best part is that you won’t pay any fees to send Bitcoin to any registered cashtag.  

Integration With Existing Cash App Accounts

You won’t have to sign up for a new dedicated crypto account if you’re already a Cash App user. If you use the app, you have access to Bitcoin, it’s that simple! 

Cash App Bank Account

Cash App wasn’t designed as a cryptocurrency exchange; it was originally launched as a personal finance and peer-to-peer payment app. It has evolved over time. 

One exciting feature resulting from this evolution is the company’s bank account. 

The cash app account acts like a traditional bank account. It’s even got a Visa debit card known as the Cash Card. The account has FDIC insurance and you can use your card at any ATM of your choice, although the company does charge a $2 fee for ATM transactions on top of any transaction fees the ATM operator charges. 

If you use direct deposit, Cash App will refund up to three ATM operator fees totaling $7 or less per 31-day cycle. 

The online bank account features on the app make banking convenient, and it’s relatively easy to track and manage your spending. 

Trade Stocks & Exchange-Traded Funds (ETFs)

Cryptocurrencies, including Bitcoin, are high-risk assets and should never make up 100% of your investment allocation. Cash App also offers commission-free stock and ETF trading, making it easy to diversify your investing portfolio. 

Admittedly, the app doesn’t feature many charting features or technical analysis tools. So, it’s not a great option for an active trader, but it has everything the average investor needs when making long-term investments. 

Cashtag

All cash app users create a cashtag that acts as a virtual address where payments can be sent. The cashtag simplifies sending and receiving payments whether you’re using cash, Bitcoin, stocks, or ETFs. 

Advantages of Cash App Crypto

Cash App’s evolution has led to a long list of advantages. Some of the biggest include:

Disadvantages of Cash App Crypto

Cash App Crypto is a great way to access Bitcoin, but there are some drawbacks. The most important to consider include:

How Cash App Crypto Stacks Up

Cash App’s closest competitor is Venmo, but its largest competitor on the cryptocurrency side of the fence is Coinbase, the world’s largest cryptocurrency exchange. Here’s how the company stacks up:

Cash App Crypto Frequently Asked Questions (FAQs)

It would be hard to learn anything if you didn’t ask questions. If you’re new to Cash App’s cryptocurrency services, chances are you’ve got a few. Find the answers to the most common questions about the app below.

Is Cash App a Good Place to Buy Crypto?

The answer to this question largely depends on you. If you’re only looking for Bitcoin and want one of the most simplified ways to access it possible, Cash App is a great option. 

On the other hand, if you’re interested in diversifying your crypto holdings with multiple different coins, or you’re interested in actively trading Bitcoin, the app isn’t going to be a good fit. Bitcoin is the only cryptocurrency available on Cash App, and its charting and trading functionality is limited. 

Can I Withdrawal My Crypto From Cash App?

You can withdraw the cryptocurrency held in your Cash App account in two ways:

1. Sell Your Crypto. By selling your cryptocurrency, you’ll be converting it into cash that’s added to your Cash App balance. Once the sale is complete, you’ll be able to access the cash at any ATM or use your Cash Card for purchases using the proceeds of the sale. 
2. Withdrawal to a Digital Wallet. You can also withdraw your Bitcoin to the crypto wallet of your choosing, giving you custody and complete control of your crypto assets.

Are There Cash App Crypto Scams?

Cryptocurrency is a new industry where there’s quite a bit of money being thrown around. Con artists often look to industries like these for weak points and loopholes through which they can make a quick buck at other peoples’ expense. 

Unfortunately, crypto scams do take place on Cash App, as they do in just about any other service in the industry. 

The key is being knowledgeable about the types of scams con artists use and being diligent about protecting yourself. 

When it comes to Cash App, the most common scams are phishing scams. Many users have been conned by people pretending to be the company’s support team and asking for sensitive information. Cash App will never call you and ask for your username, password, PIN, or any other sensitive information associated with your account. 

Final Word

Cash App is a great payment and banking app, but as a means for access to the cryptocurrency market, it has plenty of room to improve. Sure, the platform is a fine fit for beginners who only want access to Bitcoin, but it doesn’t offer the tools or resources serious traders need to succeed. 

However, the biggest issue with its platform is that it doesn’t offer any alternatives to Bitcoin. 

Diversification is an important tool to protect yourself from significant losses should one asset in your portfolio take a dive. While you can diversify with stocks on the platform, there’s no way to bring diversity to your crypto holdings. 

If you’re primarily interested in payments, banking, and maybe buying a little Bitcoin, Cash App is a great option. But if you’re interested in investing or trading in the crypto space, you’ll want to look to other providers with more robust features that cater to you. 

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Joshua Rodriguez

If you want to build wealth in financial markets, education plays a big role. You don’t necessarily have to go to college to learn how to invest, but it’s wise to learn how the market works and stay up to date so you don’t miss news that causes moves. 

Podcasts are one of the most entertaining ways to do that. 

There are several podcasts focused on investing and trading, each with its own personality and way of looking at financial markets. But what are the best investing podcasts

If you want to build wealth in financial markets, education plays a big role. You don’t necessarily have to go to college to learn how to invest, but it’s wise to learn how the market works and stay up to date so you don’t miss news that causes moves. 

Podcasts are one of the most entertaining ways to do that. 

There are several podcasts focused on investing and trading, each with its own personality and way of looking at financial markets. But what are the best investing podcasts online?

The Best Stock Investing and Trading Podcasts

Our pick for the overall best podcast is a show that features commentary from billionaires like Warren Buffett, Bill Gates, and Howard Marks. The show skillfully breaks down a billionaire’s investment activities into concepts the average investor can use. Most important, it offers an entertaining way to learn about investing. 

Other podcasts on the list are also enjoyable and shine in their own ways. Some offer insight from highly respected hedge fund managers, while others focus on macroeconomic conditions or real estate investing. 

1. Best Overall: ‘We Study Billionaires’

“We Study Billionaires” is led by co-hosts Stig Brodersen and Trey Lockerbie. The show is part of the Investor’s Podcast Network and is by far the best of the company’s seven podcasts. 

Brodersen and Lockerbie discuss content released by billionaire investors, including books and articles. The two pull essential lessons from the content and talk about them in a quirky back and forth that makes learning about investing fun. 

In some cases, the show features billionaire guests. Warren Buffett, Bill Gates, and Howard Marks have made appearances. Perhaps that’s why it’s so popular. “We Study Billionaires” has had over 85 million downloads to date, and that number is climbing quickly. 

Imagine learning about value investing directly from Warren Buffett, finding out how Howard Marks gets his investing insights, or getting a glimpse into how Bill Gates invests his fortune.

The show’s co-hosts are no strangers to investing and trading, either. 

Brodersen has written several top-rated books about investing who had a previous life as a college professor, which gave him plenty of experience conveying information in a way that makes it easy for his audience to follow. And Lockerbie is an entrepreneur and investor who decided to become a value investor after what he often calls a “life-changing” dinner with Warren Buffett. 

Both are well versed in technical and fundamental investment analysis and have impressive abilities to pick apart investment strategies to explain the reasons they work to investors of all stages, from beginners to experts. 

2. Best for In-Depth Investing Concepts: ‘Invest Like the Best’ With Patrick O’Shaughnessy

Patrick O’Shaughnessy, the host of “Invest Like the Best,” is a highly respected Wall Street professional. He’s the founder of O’Shaughnessy Asset Management, a money management firm with more than $4.4 billion under management. 

O’Shaughnessy invites investors, CEOs, and entrepreneurs to talk about the state of the market, investing strategies, and concepts that help his readers become better investors. In some episodes, O’Shaughnessy talks about specific stocks, providing insights from the company’s leadership, while he talks about the overall market in others. 

Nonetheless, his in-depth investing concepts have helped many build their way to financial freedom and are likely to do more of the same in the future. 

3. Best Outside-the-Box Investment Concepts: ‘Motley Fool Money’

The Motley Fool is known for bringing fun into the world of market commentary, and “Motley Fool Money” does just that. The podcast’s host, Chris Hill, is a world-renowned financial expert who has co-created multiple investing-related shows. 

“Motley Fool Money” covers the latest business news and financial headlines and turns the topics into actionable investment advice. Most go into investment advice you may not find elsewhere. 

For example, one May 2022 episode started like many other podcasts around the same time: “The sky is falling,” “Everything’s in the red,” “You can cut the tension in the markets with a knife.” But the others still advised you to hold strong and everything would work out in the end.

However, after about a minute of talking about the gloom in the market, Hill flipped the script and explained that there was still opportunity. He went on to tell listeners about the big winners in the recent market downturn — the oil and gas industry — and how to take advantage of the imbalance in supply and demand. 

That’s one of the reasons the show is so impressive. Hill thinks outside the box and brings potentially profitable investing opportunities to light. Moreover, he does so in a refreshingly entertaining way. 

4. Best for Learning From One of the Most Successful Investors in History: ‘The Memo by Howard Marks’

Howard Marks is no stranger to the market. He’s the founder of Oaktree Capital Management, a hedge fund that employs alternative investment strategies in a portfolio worth more than $164 billion. 

To put it simply, Marks is one of the most experienced investors in the world. 

Marks only produces a podcast once in a while, but when he publishes them, they’re worth listening to. His laser-focused insights can make you wonder why you never thought of investing that way. 

The billionaire investor shares his opinions on industry news, macroeconomic events, and investing culture.  But regardless of the subject matter, when such a successful investor is willing to share their opinion, it’s time to listen. 

5. Best for Real Estate Investing: ‘The Real Estate Investing Podcast’

“The Real Estate Investing Podcast” is a product from BiggerPockets, one of the leading real estate investing resources online. The podcast is the company’s longest-running and most successful show. It’s co-hosted by David Greene, a police officer turned real estate investor, and Rob Abasolo, a tiny home builder and 12-time Airbnb Superhost.

“The Real Estate Investing Podcast” covers all things real estate, from expert interviews to market analysis and news. Moreover, the show’s schedule isn’t sporadic like many others in the industry. You can join Greene and Abasolo every Tuesday, Thursday, and Sunday for the latest real estate investing insights. 

6. Best for Cryptocurrency Investing: ‘The Bad Crypto Podcast’

The cryptocurrency scene has exploded in popularity over the past few years, but there’s still a minimal number of quality podcasts about the topic online. Joel Comm and Travis Wright break the mold with “The Bad Crypto Podcast.” 

The two hosts’ banter is hard to ignore as they discuss topics ranging from popular cryptocurrencies like Bitcoin and Ether to lesser-known altcoins you may never have heard about if you didn’t listen to the show. 

The co-hosts cover all bases in the cryptocurrency industry. Learn about specific coins, market-wide news, and the regulatory environment in the industry. These guys also talk about cryptocurrency trading strategies and managing risk as you trade. 

The bottom line is that if you’re into crypto assets, listening to “The Bad Crypto Podcast” is a must. 

7. Best for Beginners: ‘Money for the Rest of Us’

Let’s face it, money can be confusing from time to time, and sometimes, having an expert speak in their own jargon just doesn’t work. That’s where “Money for the Rest of Us” with David Stein comes in. 

Stein is a personal finance and investing expert who really knows what he’s talking about. But you’re not going to hear a bunch of difficult-to-understand market jargon or dive into the most complex trading strategy in this podcast. 

Instead, it features easy-to-understand and easy-to-use financial tips and advice. To top it off, Stein is an inviting personality who makes you want to listen. 

Investing is the primary podcast topic. But Stein also covers how money works and gives tips to help you achieve overall financial freedom. 

8. Best for Long-Term Stock Investing: ‘The Long View’

“The Long View” is a podcast developed by Morningstar, one of the leading Wall Street firms. The show is co-hosted by Christine Benz, Morningstar’s director of personal finance, and Jeff Ptak, the co-founder, chairman, and chief information officer of Magellan Financial. 

The back and forth between the two is sometimes funny and sometimes serious, but it always makes learning about investing for the long term more interesting. 

Learn about asset allocation, managing risk, and long-term investing strategies and listen in on interviews with Wall Street leaders. 

Methodology: How We Select the Best Investing & Trading Podcasts

We used six key metrics when determining which investing and trading podcasts earned a position on the list. We specifically focused on shows we found entertaining that have content you can easily understand and use in your daily investing journey. 

We also only listed podcasts we found both unique and educational that are hosted by leaders in the investing and personal finance industries. While each podcast has different mixes of each metric, all these metrics contribute to a financial podcast’s overall value. 

Entertainment

Let’s face it. Finance isn’t the sexiest of topics. It can be downright bland sometimes. When it comes to financial podcasts, the hosts’ ability to make the show entertaining is crucial. In some cases, something about the way the host talks catches your attention. In others, playful banter between co-hosts or the occasional joke keeps you coming back for more. 

Digestible Content

Any trading expert can tell you everything you need to know about some complex stock trading strategy or technical indicator, but that doesn’t mean you’ll understand what they’re saying. The best podcasts break down some of the most complex topics into easy-to-digest bits of information. 

Actionable Content

You won’t leave any of these podcasts thinking, “So, what do I do next?” Every episode of every podcast listed gives you actionable advice you can use in your daily life. 

Educational Value

We’re Money Crashers, the crash course in money. Spreading financial literacy is important to us, and we love to showcase others who do the same. Every podcast listed teaches you something about investing or trading money. In most cases, even if you’re a pro, there’s something new for you.  

Uniqueness

There are countless investing and trading podcasts out there, and many do little more than repeat the same advice you’ve heard a thousand times. The podcasts we’ve chosen for our list all share unique concepts you won’t find anywhere else. 

Host Backgrounds

My 11-year-old son is planning a podcast about fishing, Minecraft, and BB guns. I wish him the best and will work with him to make him successful, but the simple fact that he’s launching this kind of product soon points to a big issue. 

Anyone can publish content. It doesn’t make them an expert. 

That’s fine when you’re talking about fishing and BB guns, but it’s not a positive thing when you’re learning about managing your finances. We vetted the hosts and parent companies of every show mentioned. Every person and company publicly associated with the podcasts above is a well-respected member of the financial community. 

Stock Investing and Trading Podcast FAQs

If you don’t ask questions as you learn about investing or trading, you’re doing something wrong. Even a simple topic like podcasts can lead to a bevy of questions. 

Do Investing Podcasts Constitute Personal Financial Advice?

The simple answer is no. There may be some exceptions, but we haven’t found any. The vast majority of investing podcasts have a disclaimer that they don’t provide personal advice, and for good reason. 

Your financial situation, goals, and abilities are unique. It would be impossible to give you meaningful personal financial advice without having a one-on-one conversation with you. Contact a financial advisor if you’re looking for advice that fits your unique situation. 

Are All Investing Podcast Hosts Investing Experts?

Sadly not. Anyone can publish anything online, but that doesn’t make them experts. When you listen to investing podcasts, consider who’s doing the talking and whether or not there’s evidence they know what they’re talking about. 

Why Should I Listen to Investing Podcasts?

The most successful investors never stop learning or keeping up with the news. This drive to learn leads to more effective investment strategies and a better understanding of the market overall. Investing podcasts often make learning about the market fun, and the news they provide gives you the upper hand in the market. 

How to Choose the Best Investing & Trading Podcast

It’s not advantageous to listen to an investing or trading podcast that doesn’t teach you what you’re interested in learning, so it’s important to choose the best podcast for you. Follow these steps to select the best option:

1. Think About What You Want to Learn. Some podcasts are about long-term investing, and others are about short-term trading, market news, or interviews with CEOs. Think about the type of content you’re looking for, and find a few podcasts that fit the bill. 
2. Listen to a Few Episodes. Listen to a few episodes of the podcasts on your list to see what they’re all about. 
3. Assess the Episodes You Listed To. Ask yourself if you learned anything you can use to manage your investments and if you enjoyed listening to the episodes. If you did, you’ve found the investing or trading podcast for you. If not, go back to Step 1 and repeat the process until you do. 

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Joshua Rodriguez

If your 20s see you vacillating between elation and insecurity, fun and the constant effort to prove your success, then your 30s tend to bring more stability, confidence, and direction. And the more money you save and invest, the faster you’ll achieve those results.

Fortunately, you don’t need to be a math whiz or personal finance nerd to get your investments right. Follow a few simple rules, prioritize building long-term wealth over keeping up with the Joneses, and you’ll find that you can’t

If your 20s see you vacillating between elation and insecurity, fun and the constant effort to prove your success, then your 30s tend to bring more stability, confidence, and direction. And the more money you save and invest, the faster you’ll achieve those results.

Fortunately, you don’t need to be a math whiz or personal finance nerd to get your investments right. Follow a few simple rules, prioritize building long-term wealth over keeping up with the Joneses, and you’ll find that you can’t help but succeed.

How to Invest in Your 30s

Managing your money in your 30s comes down to prioritization. You have plenty of financial goals but only so much savings each month, so you need to put them in a pecking order. 

1. Ditch Unsecured Debts First

If you have high-interest unsecured debts, prioritize paying them off over everything else.  

After all, it makes no sense to invest money in stocks at a historical return of 10% if you’re paying 24% interest on a credit card balance. 

The same goes for personal loans, high-interest student loans, and any other debts with an interest rate over 8% or so. Remember, you earn a guaranteed annual return equal to your interest rate by paying off your debt early. 

Try the debt snowball method to knock out your unsecured debts in quick succession. As an added bonus, your credit score will rise as you pay down your balances.

2. Maximize Your Retirement Savings

We all have one long-term financial goal in common: retiring one day. 

Not everyone wants to buy a house, get married, or help their kids with college tuition. But everyone needs to reach financial independence at some point, because you can’t work forever. 

For that matter, you may not want to work very long at all. Some people aim to retire in just five or 10 years!

But saving for retirement offers a slew of options, so how do you form a plan?

Start with Employer Matching Contributions

If your employer offers matching contributions to a work retirement plan, take them up on it. It’s effectively free money. 

In fact, you should prioritize these investments even over paying off high-interest debt. You earn an instant 100% return on every dollar you invest that your employer matches. 

If you have a Roth option for your employer-sponsored retirement plan, such as a Roth 401(k), opt for that over the traditional version offering the immediate tax deduction. 

As a 30-something, you probably earn less now than you will later on, and your investments have decades to compound. With 40 years to compound, your investments could be worth 40 times your initial contribution — or more. Pay taxes on the contribution now, so you can enjoy tax-free compounding and withdrawals in retirement. 

Contribute to a Roth IRA

The same logic applies to Roth IRAs. Rather than investing in a traditional IRA, put your money in a Roth IRA.  

And the Roth option doesn’t depend on your employer-sponsored retirement account options, either. Anyone with adjusted gross incomes under the limit can invest in a Roth IRA. 

If your income exceeds the limit, consider investing in a traditional IRA instead. You won’t get the tax deduction, but you can roll over your balance to a Roth IRA in a maneuver called a backdoor Roth contribution. Speak with an accountant before trying this at home though. 

Consider an HSA as Another Retirement Account

Health savings accounts (HSAs) offer the best tax advantages of any tax-sheltered account.

You pay no taxes on contributions. Invested money compounds tax-free, and you pay no taxes on withdrawals either — if they’re used for qualified medical expenses. 

Which you’ll have plenty of in retirement. 

As a 30-something, you and your family probably enjoy good health and low health care costs. Consider setting up an HSA and using it as a secondary retirement account to invest even more money tax-free. Try these best-in-class HSA providers if you don’t have one in mind. 

3. Save for Long-Term Goals

Everyone has their own unique long-term financial goals, in addition to reaching financial independence and retiring one day. 

But how do you prioritize these other goals?

Start with an Emergency Fund

Most Americans are one car breakdown away from catastrophe. 

Make sure you have a bare minimum of one month’s living expenses held in reserve as an emergency fund. Depending on how stable your income and expenses are, you may need as much as 12 months’ living expenses set aside. 

If you don’t have at least one month’s living expenses in your emergency fund, prioritize padding it.

Prioritize Your Life Goals 

Want to get married? Have kids? Buy a house? Start a business? Save for your kids’ college education?

You can, of course, split your savings to go toward multiple goals. Set a timeline for each goal, and invest accordingly. That may mean putting money in lower-risk, lower-return short-term investments for goals you want to achieve within the next year, and longer-term investments to fund longer-term goals. 

As a psychological trick, try naming your various savings accounts or investment accounts after each earmarked goal. That makes your goal more tangible, and can help motivate you to save more money toward it.

4. Invest More in Stocks

As a young person, you don’t need to worry about volatility in your investment portfolio. You don’t need to withdraw money from your retirement nest egg for decades to come. 

That means you don’t need to invest in low-return, low-volatility investments like bonds — at least not among your long-term investments. 

You can invest heavily in equities because stock market corrections are all upside for you. When the market crashes, you don’t have to freak out that your net worth has dropped. Instead, get excited that you get to buy stocks at fire-sale prices.

So don’t stress over the daily gyrations in the stock market. Keep it simple by investing in passive funds such as index funds. In fact, you can automate your index fund investing through a robo-advisor, many of which are free. They not only manage your investments for you, but they also let you set up automated recurring transfers to put both your savings and investments on autopilot. 

5. Diversify Your Portfolio

Remember what your grandma always told you about not putting all your eggs in one basket? 

As anyone who invested in Enron will tell you, you don’t want all your money tied up in a single investment. Or sector, or market cap, or even asset class. 

Plan your asset allocation with the following in mind.

Diversifying Your Stock Holdings

Start simple by diversifying your stock investments. Invest in both U.S. stocks and international stocks, including developed regions (such as Europe) and emerging markets (such as Asia and South America). 

Beyond geographic diversity, also invest across small-, mid-, and large-cap companies. For example, if you invest in an index fund mirroring the S&P 500, that exposes you to large-cap U.S. stocks. Investing in an ETF or mutual fund mirroring the Russell 2000 exposes you to small-cap U.S. stocks, and so forth.

These funds also expose you to companies across many economic sectors, from technology to consumer staples to financial services. 

But don’t stop with stocks. 

Including Real Estate

Sure, owning your own home gives you some narrow exposure to real estate markets. But just as taking stock options in your employer’s company isn’t all the stock market exposure you need, consider diversifying into other real estate investments. 

Besides, you didn’t choose your home for its investment returns — you chose it because it fit your needs.  

Start by exploring real estate crowdfunding platforms. They’re completely passive and offer great diversification potential. I personally like Fundrise, Groundfloor, Streitwise, and Concreit as relatively safe and easy starting places. 

I also invest in real estate directly, but it’s not for everyone. Only consider buying rental properties or flipping houses if you want to approach real estate investing as a side business, because it takes an enormous amount of time and knowledge. 

Investing in Your 30s FAQs

Given the stakes — your entire financial future — new investors often hesitate to start investing or to diversify with new investments. And they always have questions. 

Here are a few of the more common questions that investors in their 30s have about their personal finances and portfolios.

How Much Money Should I Invest in My 30s?

At a bare minimum, invest 10% of every single paycheck. 

That’s a great habit to help you build wealth in the long term, but it won’t get you anywhere fast. Start with this breakdown of how much you should save for retirement, depending on how quickly you want to reach financial independence. 

The greater your financial goals, the more you should save and invest. If you want a lavish wedding, you need to save a higher percentage of your income to afford it, compared to a more modest one. Want to buy an up-market house? A flashy car? The same answer applies: you need to save more money. 

The irony of wealth is that the more you show it off, the less of it you actually build. Real wealth exists in your brokerage account balance, in your retirement accounts, in the equity in your investment properties. It doesn’t exist in a huge house or high-horsepower car. To build real wealth, start spending less and saving and investing more.

What Investment Strategy Is Best for 30-Somethings?

Start with a simple, passive strategy of investing in index funds. Consider setting up an account with a robo-advisor to automate it, or hiring an investment advisor if you don’t mind paying more. Or you could get started by just buying shares of the Vanguard Total Stock Market Index Fund (VTSAX), which gives you exposure to stocks across all market caps and sectors.

Follow the order of operations outlined above, from taking advantage of matching contributions to paying down high-interest debts to building an emergency fund and investing in a Roth IRA. 

When you’re ready for the next step, add real estate into the mix. 

Don’t overcomplicate it. 

Do I Need a Financial Advisor?

No, you don’t. But some people sleep better at night with a professional managing their investments.

I personally use Charles Schwab’s free robo-advisor. The only major drawback is that it requires a $5,000 minimum investment. 

Should I Invest or Pay Down Debt in My 30s?

It depends on the interest rate. 

Definitely prioritize paying down debts with interest rates in the double digits. As you get down to debts costing around 8%, start thinking about splitting your savings between investments and paying down debts early.  

Leave your home mortgage and car loan in place, unless the latter comes with a high interest rate.

Should I Prioritize Buying a Home in My 30s?

Again, it depends.

First, it depends on how long you plan to live in your next home. If you plan to stay put for at least five years, consider buying a home. But if you might move within the next few years, you should probably continue renting. 

Also, how disciplined are you with budgeting money? Homeowners need a deeper emergency fund than renters because they get hit with “surprise” repair bills all the time. If your furnace kicks the bucket in February, you better be ready to write a $5,000 check on the spot. 

To make buying a home a no-brainer though, find a way to house hack. Once you stop paying for housing, you’ll wonder how the rest of the world does it. 

Do I Need Life Insurance in My 30s?

Some people do, for their family’s financial security. Life insurance makes the most sense for traditional households with one breadwinner, where the family would face a financial emergency if that breadwinner died. 

For a case in favor of it, read these reasons to buy life insurance. As an alternative model, read up on how my family avoids the need for life insurance with our high savings rate and early retirement age target as a hidden benefit of the FIRE lifestyle. 

Final Word

Your investment strategy in your 30s depends on your financial goals. And those shift over time as well — you might not give a second thought to saving for college tuition until you have a child, for example. Revisit your financial goals at least once per year to make sure they haven’t moved while you weren’t looking, and to make sure your current savings plan reflects them. 

Keep your investments simple and boring. You don’t need to pick stocks, time the market, or day trade. In fact, those are usually terrible strategies. 

Focus instead of saving more and spending less. It’s not sexy, but it’s how you can consistently build wealth in the years to come. Consider freezing your living expenses at their current level, regardless of how your income increases in the future. That helps you avoid lifestyle inflation and lift your savings rate over time. 

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G. Brian Davis

Most people think about stocks, bonds, and real estate when they think about investing. However, there are plenty more asset classes to dive into, many of which may catch you by surprise. 

One such alternative investment is fine wine, a type of collectible that can offer attractive returns and improve portfolio diversification. 

The term “better with age” is derived from the fact that the quality of certain wines improves with age. Wine investors tap into this improving quality and

Most people think about stocks, bonds, and real estate when they think about investing. However, there are plenty more asset classes to dive into, many of which may catch you by surprise. 

One such alternative investment is fine wine, a type of collectible that can offer attractive returns and improve portfolio diversification. 

The term “better with age” is derived from the fact that the quality of certain wines improves with age. Wine investors tap into this improving quality and potential profitability by purchasing and properly storing expensive bottles of this liquid gold. However, the cost is often a barrier to entry, considering that investable collections can cost tens or even hundreds of thousands of dollars. 

That’s where Vint comes in. 

Key Features of Vint

Vint is a startup aimed at breaking down barriers for everyday wine investors by offering securitized and regulated shares of high-end collections. 

The Vint wine investing platform isn’t crowded with features you don’t need, and everything you might need seems to be right where it should. These are the platform’s most important features:

SEC-Regulated Shares of High-Quality Wines

Regulation is an important aspect of investing. A lack of regulation has contributed to numerous market bubbles, scams, and losses over the years. Events like the stock market crash that preceded the Great Depression might not have occurred in a better-regulated market.

While no legal authority regulates wine investments, Vint has found a way to bring regulation into the fray. 

The company securitizes its wine collections by registering them as investment assets and selling shares of each collection. The United States Securities and Exchange Commission (SEC) is charged with the regulation of securities in the United States, so Vint’s securitized wine collections are effectively regulated by the SEC. 

In registering its wine securities with the SEC, Vint must provide you with all the information you need to make an educated investment. 

User-Friendly Functionality

At first glance, the Vint platform seems pretty basic. But as you start to use it, you’ll likely develop an appreciation for its straightforward structure. Vint doesn’t have any unnecessary bells and whistles that take up space — just what you need strategically positioned where you need it. 

This simplistic approach creates a user-friendly experience and a platform with a minimal learning curve, if any. 

Easy Access to High-End Wine Investments

Historically, wine investing has been possible only for wealthy people with the time and resources to travel to wineries in Napa Valley, Tuscany, or Bordeaux in search of deals on high-quality wine collections. The advent of the Internet removed the travel requirement from the equation, but two major barriers to entry remained before Vint: 

Vint offers solutions to both of these problems:

Collections Constructed by the Professionals

Investment-grade wine isn’t just a recreational alcoholic beverage that you sip with colleagues, friends, and loved ones from time to time. High-end wines are akin to fine art. Even the most subtle flavor notes can mean the difference between a high-quality, $10,000 bottle of the beverage and a $7.99 boxed wine special. 

Even if you’re a sommelier or you have an affinity for fine wine, it will take daunting research to determine the best investments in the space. 

Vint takes that work out of your hands. 

The company employs a team of professionals in the wine industry to curate and construct collections of significant value. When you purchase shares of one of the company’s collections, you can rest assured that the collections you’re purchasing are of the highest quality. 

Vint does charge a sourcing fee ranging from 6% to 8% for its curation services. However, it’s also so confident in its investment choices that it buys shares of each collection for its own holdings — up to 10% of the total collection’s value.

Current Collections

There are currently two collections available, including:

Liquidity

Alternative investments aren’t as liquid at traditional investments like stocks and ETFs. When it comes to Vint, your investments will be mid to long-term. 

The company’s aim is to sell all shares of a collection and sell the collection when the market’s right, generally within two to seven years. Once the collection sells, shareholders receive their portion of the proceeds. However, there is no secondary market on which you’ll be able to sell your shares if you need access to your funds quickly. 

Educational Guide

If you’re like most people, your knowledge of investing in fine wine is limited. However, as with any other investment, your knowledge of the industry will play a significant role in your success as an investor. 

Vint understands the importance of educated investments, so it takes an extra step to ensure that its investors know what they’re doing when making investments. 

Vint offers a free educational guide to investing in wine that even some professionals may be able to learn a thing or two from. You don’t even have to be a member of the site to access the guide either — it’s available right on the company’s home page. Just type in your email and you’ll receive your copy. 

Advantages of Vint

There are several major advantages to investing in wine with Vint. Some of the biggest include:

Disadvantages of Vint

While there are plenty of reasons to consider investing with Vint, there are also some drawbacks that should be considered before diving in. The most important disadvantages to note include:

How Vint Stacks Up

Vint’s biggest competitor is VinoVest. Here’s how the two compare to one another:

Final Word

Vint is a compelling option for investors who are interested in diversifying their holdings with alternative investments. Wine has a strong track record for generating solid gains over time, and prices in the market tend to be more stable than stocks. 

However, while wine investment returns may outpace market returns from time to time, liquidity issues could impact your ability to tap into your earnings at will. The bottom line is that wine is a great diversification tool, but it’s not a substitute for a well-balanced investment portfolio that also includes stocks, bonds, and investment-grade funds. 

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Joshua Rodriguez

The blockchain has been the talk of the town for some time now, and as it evolves, investment opportunities are mounting. Non-fungible tokens (NFTs) have quickly become a popular type of collectible as everyone from novice investors to celebrities and investing pros continues to dive in. 

If you want to get your hands on one of these crypto-collectibles, you need to work with a marketplace.

Mintable is one such marketplace that has gotten quite a bit of attention because one of its backers

The blockchain has been the talk of the town for some time now, and as it evolves, investment opportunities are mounting. Non-fungible tokens (NFTs) have quickly become a popular type of collectible as everyone from novice investors to celebrities and investing pros continues to dive in. 

If you want to get your hands on one of these crypto-collectibles, you need to work with a marketplace.

Mintable is one such marketplace that has gotten quite a bit of attention because one of its backers is Mark Cuban, a shark on the TV series “Shark Tank” and the outspoken owner of the Dallas Mavericks.  

But is Mintable the best NFT marketplace for you? Read on to learn more about its features, fees, and how the platform stacks up against its competitors. 

Key Features of Mintable

As Mintable’s name suggests, the platform is geared toward creators with features that make the NFT minting process more efficient. It’s also a great place for investors, traders, and collectors. Here are the key features that keep hundreds of thousands of active users coming back for more:

Gasless Minting

One of the biggest setbacks for NFT creators is the gas fee that comes along with minting new pieces of digital art. When you mint NFTs, smart contracts are created and stored on the blockchain — the Ethereum blockchain in the case of Mintable. 

The problem is that the blockchain charges gas fees that rise and fall depending on the demand for transactions on the blockchain at any given time. Those fees are charged in Ethereum (ETH) and are often exorbitantly high. New creators who aren’t sure their art will sell may not be willing to fork over the fees to find out. 

When you mint NFTs on Mintable, you won’t have to pay gas fees or any other fees until your new NFT sells. You’ll pay gas fees and a 2.5% transaction fee when you sell NFTs on the platform, but you don’t have to pay anything before you sell. 

Intuitive NFT Platform

Any time you work in a new industry, it’s nice to work with easy-to-use tools. The Mintable platform is easy to navigate and use whether you’re interested in buying, selling, trading, or minting digital assets. 

NFTs are categorized by different qualities, making it easy to find what you’re looking for or attract the right audience for your newly minted collectibles. 

Batch Minting

If you plan on minting more than a few NFTs, doing so on a one-by-one basis will take you hours, if not days. When you mint with Mintable, it only takes a matter of minutes thanks to batch minting. You can mint as many collectibles as you’d like with a single transaction. 

Several Categories of NFTs to Choose From

NFTs first started as digital art. Then, collectible items with unique traits started to pop up. Today, there are collectibles, unique artworks, digital items like music and video clips, and pieces that come with utility.

Although some marketplaces focus on one or two different types of digital assets, Mintable carries all types of NFTs. The categories include:

Printable NFTs

Mintable was the first platform to offer printable NFTs. If you’re a creator, you’ll love this feature. With printable NFTs, you can set up a collection of as many NFTs as you’d like. However, those NFTs don’t actually exist until they’re sold. 

Say you have a collection of 10,000 NFTs, but you’re not sure releasing them all is a good idea from a supply-and-demand perspective. To combat the issue, you can set up printable NFTs that are only actually minted and listed on the blockchain if there’s interest in purchasing them. 

There is one major downside to using this feature. You pay a 10% transaction fee when you sell printable NFTs, rather than the 2.5% fee you’ll pay on traditional NFTs. 

Mintable Academy

NFTs are a new way to invest, trade, and make money. However, any time you work with a financial asset, it’s important to do your research and educate yourself on exactly what you’re buying. 

Mintable knows the importance of education and shows it by offering free access to the Mintable Academy. 

The academy is designed to teach you how to use the platform to become a profitable NFT collector or creator. The lessons walk you through the basics of the industry and what makes NFTs profitable. They also act as a guide to building your first NFT collection or earning money by minting your own art. 

Advantages of Mintable

Mintable has quickly become a popular NFT marketplace, and the fact that Mark Cuban is a backer isn’t the only reason for the rapid growth. Some of the biggest perks to working with Mintable include:

Disadvantages of Mintable

Sure, there are plenty of reasons to consider diving into the Mintable platform, but there are also a few drawbacks to consider. Some of the biggest disadvantages of the marketplace include:

How Mintable Stacks Up

Rarible is Mintable’s closest competitor in the NFT marketplace space. Check out the chart below to see how the two compare. 

Final Word

Mintable is a great place to buy, sell, and trade NFTs, and it’s growing quickly. This rapid growth means you have a growing collection of available NFTs if you’re a collector and a growing audience to sell your work to if you’re a creator. 

The only real downside to the platform is integration. It’s only compatible with the Ethereum blockchain, which means ETH is the only accepted cryptocurrency. The same integration issue is found in supported crypto wallets. Most NFT marketplaces can connect to a wide range of wallets, but Mintable only works with MetaMask. 

Nonetheless, if you can get past these slight inconveniences, Mintable is a great marketplace to dive into! 

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Joshua Rodriguez