Archives for October 2, 2018

The Best Streaming Services for Busy Professionals

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LIFE FOR A BUSY professional is complicated. It can be hard to carve out time in the evenings to watch TV, especially in real-time. Luckily, streaming services make it a lot easier to watch TV on your own schedule, especially with features such as on-demand content and digital video recorders to help you have more control over when and how you tune in. Even better, many of these are fairly inexpensive – perfect for the budget-conscious worker.

Read on for some of the best streaming services for professionals.

[See: Cord-Cutters, Consider These Video-Streaming Services.]

Netflix. This streaming service is a popular choice, and for good reason – its low price and large library of on-demand options make it a budget-friendly source for any TV fan. As a purely on-demand service, Netflix offers past movies and TV shows at any time, so for a busy professional trying to squeeze an episode into a crowded schedule, that control makes for a convenient streaming experience. In addition, if there are other people in the household tuning in during those same few free moments, some of the pricier packages allow for simultaneous streaming on multiple screens.

Netflix comes at three different price points:

  • Basic package: $8 a month, one screen.
  • Standard package: $11 a month, two screens.
  • Premium package: $14 a month, four screens.

[See: 10 Steps to Cut the Cable Cord.]

Prime Video. Amazon’s streaming service comes packaged with its regular Prime subscription, so if you’re already paying for its other services, it won’t cost anything extra to take advantage of its on-demand offerings. The rest of Prime membership is great for a busy professional – free shipping and member-exclusive deals are useful for those who don’t have time to do all their shopping in brick-and-mortar stores – but the streaming service adds a lot of value.

Like Netflix, Prime Video offers exclusively on-demand content, and with plenty of award-winning original series and a library jam-packed with movies and television, this service has plenty to offer. Even better, Prime offers three simultaneous streams with every subscription, so households with varied tastes can avoid fighting over the remote.

Amazon Prime has two separate pricing options:

  • Annual membership: $119 a year, three screens.
  • Monthly membership: $12.99 a month, three screens.

YouTube TV. YouTube’s streaming service offers many live channels cable-free, so if you want to watch current shows and sports in real time, it’s a solid pick. But a busy professional can’t watch everything live, especially with a crowded schedule. This is where the DVR comes in. A subscription to YouTube TV comes with an unlimited cloud DVR, which is a rare benefit among streaming services. On top of that, you can watch on up to three screens at a time.

YouTube TV has just one price with all features included:

  • Standard package: $40 a month, three screens.

FuboTV. Like YouTube TV, fuboTV is a live-streaming service with many channels available for live viewing. For the busy schedule, it has strong DVR offerings, with 30 hours included in the standard subscriptions and another 500 available for an extra $10 a month. Those 500 hours mean you can save a lot of TV, so if you’ve got too much to watch but too little time, this upgrade option is probably worth that additional cost.

FuboTV has two different package options:

  • Fubo: $45 a month, two screens.
  • Fubo Extra: $50 a month, two screens.

[See: 6 Ways to Treat Yourself on a Budget.]

Hulu with Live TV. Hulu was originally known for its library of on-demand titles, but has since added options for live channels as well. One big benefit for busy subscribers is Hulu’s on-demand current episodes, many of which are added the day after they air on supported networks. You can also record up to 50 hours of content using the included cloud DVR, or upgrade to 200 hours for an additional $15. Depending how much you record, that added cost may or may not be worth it, but that’s a whole lot of space for someone who’s constantly on the go.

Hulu has two basic package options:

  • Hulu Limited Commercials with Live TV: $40 a month, two screens.
  • Hulu Streaming Library: $8 a month, one screen.

If you’re a busy professional, it’s important to have a TV setup that can meet your needs. These streaming options offer control and great content without breaking the bank and can help you tune in whenever you finally have a free moment.

Places to Find Inexpensive Workout Equipment

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THE BENEFITS OF exercise are numerous: It improves your physical condition, boosts your self-confidence, reduces your long-term health care costs and improves your thinking.

For many, however, the routine of going to the gym for exercise is an expensive one. The cost of gym membership at even the most inexpensive gyms adds up to hundreds of dollars per year and can quickly jump into the thousands at a top-flight gym.

One of the best ways to kill that ongoing expense is to bring the exercise equipment you use most into your home. Are you an avid user of the rowing machine? Put one in your apartment. Do you mostly use the elliptical machine at the gym? Install one in your basement. With such equipment, a workout fiend can exercise at home and easily cancel the gym membership.

Of course, this introduces another problem: Exercise equipment can be costly. Here are eight ways to find good exercise equipment that will meet your needs at a reasonable cost.

[See: 10 Big Ways to Boost Your Budget – Without Skimping on Your Daily Latte.]

Freecycle. On this website, people give away items that they don’t want to deal with any more. Often, these are low-cost items without resale value or bulky items that are difficult to transport, and gym equipment often falls into the latter category. If you’re looking for workout equipment, it’s worth glancing at Freecycle to see whether someone is giving away something that will work for you.

Craigslist. This website is a great place to look for low-cost secondhand workout equipment. People will often list weights and exercise machines on the site at a low cost, provided you’re willing to come and take it away. Often, such equipment has barely been used, as it was bought by those with good intentions who never incorporated using the equipment into their daily routines.

[Read: How to Spend Less on Boutique Fitness Classes.]

Facebook Marketplace. This consumer site is similar to Craigslist in that it provides local listings for used items, which often includes exercise equipment. Facebook Marketplace listings often include images of the equipment, but it’s also heavily trafficked and tends to include people listing items with high prices.

Play It Again Sports (or other secondhand sports equipment stores). These retailers are great places to look for whatever specific kind of equipment you’re hoping to buy. As opposed to most of the other options on this list, you’ll probably find the exact equipment you’re looking for if you check out a few used exercise equipment stores, but the price will be somewhat higher.

Garage sales and yard sales. Neighborhood yard sales are frequently places where you’ll find used exercise equipment, often in good shape. The best strategy here is to pay attention to yard sale listings to identify which ones might have workout equipment and visit the sales early before they get picked over.

Going-out-of-business sales or equipment-upgrade sales. These events are held by gyms and fitness centers when they’re making changes to their business, and you can often profit from this. Such places will typically hold auctions where they will sell off unwanted equipment to the highest bidder. If you’re looking for gym-quality equipment, this is a great way to get it at a discount.

[See: How to Live on $13,000 a Year.]

Bulletin boards in public places. Your local listings will often include postings about used exercise equipment for sale. Check the bulletin board at your local gym, library, post office or city hall to see what used exercise equipment listings you might find there. Also, if you’re the member of any community groups or churches, their bulletin boards will sometimes have postings for people selling used items.

UsedGymEquipment.com. This is a site where gym owners will buy and sell equipment, providing them with another option besides auctioning off the equipment when a gym goes out of business or needs to move out older gear. This is another great outlet if you’re seeking used equipment straight from a gym. It’s worth noting that this site is aimed at gym-to-gym sales because the equipment it sells is designed more for gym use, but it does sell to interested individuals, too.

Between all of these options, you can definitely find workout equipment that meets your exercise needs and your budget.

Are You Guilty of These Bad Money Habits?

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DO YOU KEEP TELLING yourself, “I’ll figure it out later”?

Do you constantly make little purchases, telling yourself they don’t count?

These are just a few examples of common – and risky – behaviors that can damage your financial health. Nearly everyone has bad habits when it comes to their money. But the key to managing your money appropriately lies in preventing them from seriously damaging your long-term financial security.

Here are a few behaviors you may not realize can hurt you in the long-run, and a few solutions to help keep you on a path toward financial security.

[See: Basic Money Lessons You (Probably) Missed in High School.]

Blissful ignorance. You may know the old adage “ignorance is bliss,” but ignoring your bills and not understanding your finances can quickly lead you down a financial hole from which it will be hard to dig yourself out. Imagine the blissful feeling that comes from financial independence and security. The first step in getting serious about your finances is taking account of how much money you have coming in, then understanding how you’re spending it. Using personal finance apps can help you figure out the full picture by showing you all of your accounts in one place. Once you understand how you’re spending money and how you should save, you can use the personal finance apps to set a budget that fits your lifestyle. Stay in the know by using app notifications to get updates on when your bills are due and when you’re getting close to your budget each month.

[See: How to Talk to Millennials About Money.]

Procrastination. Are you someone who prides yourself on living in the moment? Do you tell yourself that you’ll start building your savings after your next raise or when you get a new job? Your financial future is just as important as – if not more than – your current financial situation, which is why it’s so important to stash away money for savings. Even if you can only afford $20 each month, you have to start somewhere. As a rule of thumb, try to follow the 50/30/20 rule, which is a proportional guideline that can help keep your spending in alignment with your savings goals. This means you should set aside no more than half of your income for the absolute necessities in your life such as housing, food and transportation. Then you should dedicate 20 percent of your take-home pay toward saving and 30 percent for expenses that enhance your lifestyle but aren’t essential. These personal lifestyle expenses include items such as shopping, happy hour and trips to the coffee shop. You can start following the 50/30/20 rule at any time, so seize the day and start now.

“Treat yourself” mentality. Splurges are manageable every once in a while – for example, on birthdays and holidays – but they’re called “splurges” for a reason. Because the extravagant purchase is more than what you would usually spend or afford. So keep these purchases in check. Remember that frequently celebrating little wins and treating yourself to small gifts will add up quickly. Try to limit the amount of “treat yourself” moments and reframe the way you think about celebrating. Rather than rushing to the shops or spa, consider meeting up with friends for an outdoor activity or workout class. Just as small splurges can add up, so can saving a few dollars here and there. Keep your long-term goals and financial security in mind while you’re celebrating. You’ll thank yourself later.

Information overload. Do you love subscription services and staying in the know about your favorite brands through company newsletters? Having these offers and flash sales in your inbox every day can easily lead you to spend money on items you don’t need. Retailers and coupon services regularly sending out special discounts can tempt you to buy those pricey leggings with one click because they’re now 15 percent off. But do you really need another pair of leggings? Were you even thinking about them before you saw the email? Pull the plug on services and subscriptions you don’t use and unsubscribe to newsletters that may tempt you to make impulse purchases.

When Is a Cash-Out Refinance Loan a Good Idea?

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In a cash-out refinance mortgage, you take a loan against your home in excess of what you owe, leaving you with cash available to spend. Adding to the debt against your home could be a smart move if the cash is used for the right purpose.

Using it for the wrong purpose, however, could lead to financial distress. “I’ve seen borrowers use the cash-out option, spend the money quickly and end up in a worse situation because of it,” says Bruce McClary, National Foundation for Credit Counseling vice president of communications and U.S. News contributor.

How Does a Cash-Out Refinance Loan Work?

Like other mortgages, a cash-out refinance is a loan secured by a piece of real estate, and is subject to various requirements and limitations. The major factors considered in a cash-out refinance mortgage application are:

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Loan-to-value ratio. The loan may not exceed a maximum loan-to-value ratio. That means your total home debt can’t exceed a certain percentage of the value of your home. You will need equity in the home before you can take cash out.

Debt-to-income ratio. You must show the lender, usually via tax returns, a schedule of debts and pay stubs, that you can afford to make the monthly payments.

Credit score. All borrowers named on the loan must have a credit score that meets the minimum for the loan program and lender.

Underwriting guidelines depend both on the loan program and the lender. For loans that are insured by the federal government, including those via the Federal Housing Administration and Department of Veterans Affairs, credit score, debt-to-income ratio and other limits are set by the insuring agency. Individual lenders may impose stricter limits on government-backed loans. For example, although the FHA loan program requires a minimum credit score of 580 (500 with a minimum 10 percent down payment), an FHA lender may require a minimum credit score of 620.

[Read: The Best FHA Loans of 2018.]

Cash-Out Refinance Loan Costs

A cash-out refinance loan incurs costs similar to those for your original mortgage. Certain fees are standard, and others are common but may vary. Cash-out refinance costs may include:

  • Origination fee: This is the fee the lender charges for making the loan.
  • Title search: It is performed to ensure the person claiming title to the property is the rightful owner.
  • Title insurance: The policy offers protection to the lender and owner from claims against the property.
  • Appraisal: An appraiser determines the market value of the property.
  • Discount points: Fees can be paid upfront in exchange for a lower interest rate on the loan.
  • Application fee: You pay this fee to apply for the cash-out refinance loan.
  • Credit report fee: The lender charges this to pull your credit report.
  • Document fees: These pay for preparing, notarizing and recording loan documents.

Borrowers can pay closing costs out of pocket or add them to the loan balance. In a no-cost refinance loan, the lender pays the fees – but you likely pay a higher interest rate.

Here’s what a cash-out refinance might look like when you crunch the numbers:

Current loan Cash-out refinance
Loan Amount $240,000 $250,000
Cash Out * $48,900
Fees and Points * $5,000
Current Loan Balance $196,100 $250,000
Appraised Value $325,000 $325,000
Interest Rate (Fixed) 3.125 4.125
Monthly Payment $1,028.00 $1,212.00
Loan Start Date 9/1/2010 9/1/2018
Loan Payoff Date 8/1/2040 8/1/2048
Life of Debt 30 years 38 years
Lifetime Interest** $130,117 $240,984
*For this simplified example, these details are irrelevant.
**The cash-out refinance lifetime interest includes eight years of interest changes paid on the original loan.

Benefits of Cash-Out Refinance Loans

A clear benefit of a cash-out refinance loan is, well, you get cash.

If you use the cash to pay off higher-interest debt, you’re likely to see an improvement in your credit score as soon as revolving debts are paid off or paid down. You may save money on interest charges or relieve stress on your budget by lowering your total monthly debt payment.

Why You Might Want to Take a Cash-Out Refinance Loan

Nathalie Martin, associate dean for faculty development at the University of New Mexico School of Law, consumer law researcher and consumer credit advocate, says the best reason to refinance is to save money, such as by lowering the interest rate, and the best reason to turn equity into cash is to do necessary maintenance or make quality-of-life home improvements to the home. “If you can still afford the loan, a remodel is probably a good use for the cash, because you’re adding value to the home,” she says.

McClary says that furthering your own education can also be a good use of the cash. “If you use the money to put yourself through a professional training program that improves your marketability and leads to jobs with higher income potential, that could be a good investment,” he says.

Another reason to refinance and access the cash in your home is paying off higher-interest debt.

[Read: The Best Mortgage Refinance Lenders.]

When a Cash-Out Refinance Might Not Make Sense

When you take a cash-out refinance, you’re reducing the percentage of your home that you own and increasing the amount you owe. You may also lengthen the life of your loan, and if you refinance to a higher interest rate, you will increase the cost of your prior home debt. Weighing the pros and cons may be complex. Consider these examples.

You want to pay off credit card debt. Financial experts are split when it comes to using a cash-out refinance mortgage to pay off high-interest credit card debt. On the one hand, paying off a 17 percent annual percentage rate debt with a 5 percent APR loan could save you a significant amount of money. You may not save money overall, though, if you finance this debt for 30 years.

The biggest risk with using a cash-out refinance for debt consolidation is the potential to run up the debt again.

“Paying off high-interest credit card debt seems like a good idea,” says McClary, “but not if you run the debt back up on those cards after you pay them off.” In his former role of credit counselor, he worked with borrowers who did just that. “They ended up doubling the original debt and couldn’t bail themselves out a second time.”

Another risk associated with paying off credit card debt is in changing it from unsecured to secured debt. “I don’t like cash-out refis for debt consolidation,” says Martin. “If you get really far behind and file for bankruptcy, credit card debt can be discharged.” A credit card company can sue you for payment, but it can’t take your home away if you don’t pay. When you use a mortgage to pay off credit card debt, the new debt is secured by your home. If you run into financial trouble and can’t pay your mortgage, you face foreclosure.

You are well into your existing mortgage. If you’re 20 years into a 30-year loan and you take a new 30-year loan, you will make 50 years of payments on your home. However, you can mitigate this drawback by refinancing into a shorter loan term such as 10 or 15 years.

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When a Cash-Out Refinance Doesn’t Make Sense

Don’t take cash out of your home to pay for something that you don’t need and can’t afford, or if it doesn’t fit well into a responsible financial plan.

You want to take a vacation. “Don’t use a home loan to go on vacation,” says Martin. “It sounds flippant, but this is something you need to save up for.” Loans incur costs, and it doesn’t make sense to set yourself up for years of payments – and interest charges – for a nonessential expense.

You want to buy a car. A cash-out refinance may not be a good idea when you need a car. Most mortgages last for 10, 20 or 30 years, so you could be paying for the car long after it has lost its value and usefulness. Car loans, on the other hand, typically last for three to seven years.

Someone needs your financial help. Don’t borrow against your home to help a friend or family member out of a financial jam. “That rarely works out,” says McClary.

The interest rate is significantly higher. If the interest rate on your new mortgage will be a lot higher than the rate on your existing mortgage, research other kinds of financing.

You’re close to retirement. If you expect to stop working before your refinanced mortgage will be paid off, the payment could strain your monthly budget.

[Read: The Best Home Equity Loans.]

Alternatives to Cash-Out Refinancing

A home equity loan or home equity line of credit may be a good alternative to a cash-out refinance loan. A home equity loan is a lump-sum loan borrowed against the equity in your home, usually at a fixed interest rate. A home equity line of credit allows you to draw funds against the equity in your home multiple times, up to a maximum amount, usually at a variable interest rate. Both of these products are additions to, not replacements for, your existing primary mortgage.

The interest on a home equity loan or home equity line of credit is tax-deductible (up to a loan of $750,000, or about half that for a married taxpayer filing separately) if the funds are used to “buy, build or substantially improve the taxpayer’s home that secures the loan,” the IRS says.

Some expenses can be covered with other types of loans that may make better financial sense. For example, you might qualify for a car loan with a competitive interest rate. For education expenses, federal student loans offer the most flexibility in repayment optionsand loan forgiveness. Even private student loans may be preferable to a loan secured by your home.

If you have debt to pay, you can devise a plan to pay it off the old-fashioned way or talk to a credit counselor who can help you create a new budget. You can also consider entering into a debt management plan or applying for a debt consolidation loan.

For a vacation or other luxury expense, the best financial plan is to save up for the purchase.

Help Wanted: Overseers for Social Security and Medicare

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FILE – In this May 21, 2018, file photo, Treasury Secretary Steve Mnuchin talks with reporters about trade with China outside of the White House in Washington. Key posts overseeing the financial health of Social Security and Medicare have been vacant for more than three years, leaving the programs without independent accountability in the face of dire predictions about approaching insolvency.

Key posts overseeing financial health of Social Security and Medicare go unfilled as problems worsen.

WASHINGTON — Key posts overseeing the financial health of Social Security and Medicare have been vacant for more than three years.

That leaves the programs without independent accountability in the face of dire predictions about approaching insolvency.

These days Washington is corroded by partisanship and consumed by political crises. Gridlock has become the norm and hundreds of senior government positions remain unfilled.

For beneficiaries and taxpayers the lack of “public trustees” for Social Security and Medicare means a loss of outside supervision of bedrock middle-class programs.

Most Americans may not even realize there are such jobs as public trustees of Social Security and Medicare, but insiders say the special advisers help keep annual financial reports honest by acting as a check on the ever-present temptation for political appointees to tweak the numbers.

Facebook exec to Instagram

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Adam Mosseri, centre, with Instagram co-founders Kevin Systrom, right, and Mike Krieger.

Facebook has named Adam Mosseri, a 10-year veteran at the company, as the head of Instagram.

The appointment comes after the photo-sharing app’s co-founders resigned last week without giving a clear reason. Kevin Systrom, Instagram’s CEO, and Mike Krieger, its other co-founder, announced Mosseri’s appointment Monday on the company blog.

Mosseri was named as Instagram’s head of product in May. He began as a designer at Facebook and most recently led its news feed.

The founders, and Mosseri himself, sought to reassure users that Mosseri will “hold true” to Instagram’s values and community. Some users have worried since last week’s surprise departures that Instagram will become more like its parent company, becoming getting cluttered with features and sucking up personal data.

In a statement, Mosseri reiterated his desire to keep Instagram’s unique culture that includes “simplicity, craft and community as well as kindness.”

Facebook said it completed an internal search for the best candidate, but Mosseri, 35, had been widely expected to get the post. The company did not make either Mosseri or Systrom available for interviews. Head of Instagram is Mosseri’s official title, as Facebook says it reserves CEO titles to company founders.

In his blog post, Systrom praised Mosseri’s “strong design background and a focus on craft and simplicity — as well as a deep understanding of the importance of community.”

Instagram was founded in 2010 and sold to Facebook for $1 billion two years later. It was Facebook’s first billion-dollar purchase (though dwarfed by WhatsApp at $19 billion two years later). At the time, Instagram was ad-free, with a loyal following of 31 million users who were all on mobile devices — still a somewhat elusive bunch for the web-born Facebook back then. Since then, the service has grown to more than 1 billion users, expanded its features and, of course, added ads.

Instagram has been a bright spot for Facebook, which has faced waves of controversy in the last two years ranging from fake news and misinformation, to privacy scandals. Instagram is generally seen as a more uplifting space and remains popular with teens and young people, which has been a challenge for Facebook.

Some of those users don’t even know that Facebook owns their beloved app, and that’s not necessarily a bad thing, analysts say. And if Instagram starts to look too much like Facebook, it might start seeing similar problems.

“When Facebook hit about a billion users that’s when it started to go downhill,” said Omar Akhtar, analyst at research firm Altimeter. “When everyone and their mom was on it.”