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  • Ever Dreamed of Starting Your Own Business? Have You Considered Dropshipping?

    Ever Dreamed of Starting Your Own Business? Have You Considered Dropshipping?

    What is a Dropshipping Business?

    Drop shipping is proving to be an extremely popular business model to budding entrepreneurs, especially, millennials and gen Zers. This is because it relies largely on internet marketing skills and the idea of not handling stock or the items one is selling adds to its allure.

    If you have been looking for a business that you can start with limited funds, and grow as you continue with your regular job, then drop shipping is for you. Here’s a detailed guide on how to start a dropshipping business.

    In a dropshipping business, the store owner gets to sell directly to the customer without having any inventory. When a consumer buys a product in this store, the product is shipped to them by a third-party supplier.

    In terms of prices, the consumer pays the retail price the store owner has set, while the store owner pays the supplier the wholesale price. The rest is profit!!

    How to Start a Dropshipping Business in 2021

    Now that we’ve seen what dropshipping is all about, here’s what you need to do to set up such a business:

    Commit to setting up a dropshipping business

    Here’s what we mean by this: you’ll need to invest heavily either in time or money.

    Dropshipping is no different from other businesses. It will require significant commitment and that you have a long-term perspective. What do we mean by investing in each of these?

    Investing time into the business

    This is our preferred form of investment for various reasons:

    • You learn the ins and outs of how the business operates, which will come in handy when the business grows and you have to manage it.
    • You develop an intimate knowledge of your customers and market, and this informs your decision making.
    • You’ll steer clear of vanity projects that may eat up your capital to no success.
    • You’ll pick up some new skills that will help grow you as an entrepreneur.

    While not everyone might be able to quit their job and embark on growing their online store, it is still possible to start this business while holding a 9-to-5 position. All you need is to set the right expectations towards customer service and the appropriate fulfillment times for customers. As the business grows, you can move to working full time depending on the business’ cash flow and profitability.

    Investing money into the business

    In this approach, you invest a significant amount of money on programmers, developers, and marketers.

    However, this approach has proven to be too expensive in the long end compared to investing time. This is because success in the dropshipping business requires that you be deeply invested in its success as you grow it from the ground up. Additionally, having no knowledge of how the business works at different levels may expose you to manipulation from expensive ‘experts’.

    While you don’t have to do everything on your own, it’s advisable to be the primary driving force from the go.

    However, you still need a small amount of money in the range of $1,000 for your business to be launched and be operational. This will be used in operational expenses and any incorporation fees required. Once you are committed to the business, the next step is coming up with a business idea.

    Come up with a niche

    The niche that you come up with has to be laser-focused and one that you love. If the product range is not focused, you’ll have a hard time marketing it. And if you are not passionate about the niche you choose, you might end up getting discouraged, as it is a lot of work scaling a drop shipping business successfully. With all this in mind, here’s how you can settle on a niche:

    Settle for businesses with large profit margins. When in the drop shipping business, your focus is usually on marketing and customer acquisition. This means that the effort needed to sell a $20 item is almost the same as for a $1,500 item. As such, settle for a niche that has on demand higher-priced products.

    Low shipping costs are crucial. Your supplier may be handling the shipping, but if the cost is too steep, then it may drive customers away. For this reason, find items that are inexpensive to ship, as this may present you the option of free shipping to your customers, taking up the cost in a bid to attract additional sales.

    Ensure your products appeal to impulse buyers’ with lots of disposable income. When you are keen on getting traffic to your website, you want the highest conversion rate as most visitors might not come back. The products on sale should lead to impulse buys and appeal to those with disposable income.

    Ensure people are actively searching for the item. Leverage tools like Trends and Google’s Keyword Planner to check keywords related to your niche of interest. If no one is searching, that might not be a lucrative niche.

    Develop your brand. You earn bonus points if you can rebrand what you are selling and sell it as your own. Look for products that you can white label and make them your brand using custom branding and packaging.

    Niches that you can start from home

    Here are some of the most lucrative dropshipping niches:

    1. Power tools
    2. Tech supplies
    3. Lifestyle niche
    4. Beauty and Health
    5. Drones and Accessories

    Conduct Competition research

    You are probably aware that you will be operating in the same sphere as other drop shipping operations including retail giants like Amazon and Walmart. In spite of this, don’t make the mistake of going for a product that has little or no competition. This is actually a sign that there is no demand for the product.

    Some of the reasons why a product may face no competition include high shipping costs, lower profit margins, or manufacturing and supplier issues. Settle for products with competition, as this shows there’s high demand and the business model is sustainable.

    Some ways to conduct competitor research include:

    1. Leverage competitor spy tools like Alexa and Similar Web. These tools are good at tracking your competitors’ online activity. They’ll compile competitor online information, including their social media profiles, number of visitors, top traffic sources, and their competitors.
    2. Social media. Browse for Facebook ads related to your niche and note the top brands in the area. Look at how they communicate with their customers, how their feed is designed, and the amount of engagement they are getting.
    3. Subscribe to their email lists. By subscribing to your competitors’ email lists, you get their updates right into your inbox. You also get to see their marketing strategy. You also learn about the deals and promotions that they use to draw customers to buy from them.
    4. Google search. Search engines are a great place to start. Compile a list of your top five competitors. Search key search terms in your niche, like ‘phone covers.’ The top results are your top competitors and you will gather information on how they promote their products.

    Learn everything you can from your customers and keep the research in a spreadsheet for continuous reference.

    Settle for a supplier

    Settling for a dropshipping supplier is a crucial step if you are to create a successful business. Without a supplier, you won’t have products to ship to the consumer, and your business will never see light of day. Partnering with the wrong supplier is another step into the grave and therefore you need to exercise utmost caution.

    Ensure your conduct due diligence. As you will learn, many drop shipping suppliers are found overseas, thus communication is crucial, both in terms of their response speed and also being able to understand one another. If you are not fully confident with their communication abilities, then better ditch them for another supplier.

    Alibaba has grown to be one of the largest resources of finding and communicating with potential suppliers and manufacturers. Oberlo is also a marketplace that helps you find products to sell online. Ensure you ask lots of questions and identify their production capabilities if your business is to grow exponentially. You want a supplier that will be able to scale with you.

    You can learn from other entrepreneurs who have set up similar businesses in the past. You can find plenty of information online from business blogs to subreddits on drop shipping.

    Build an eCommerce site

    The next step to setting up a dropshipping business is to launch a website that supports this business model. You can leverage an ecommerce platform like Shopify for this. This site will be the home of your site- where you’ll be sending traffic, process payments, and sell products.

    Shopify is a complete commerce platform that enables you to sell in different places, in multiple currencies, and you can manage products and payments. Plus, you don’t need designer skills or to be a developer to use Shopify. There are tools that will help you with everything that you need to design your store.

    You might be tempted to get a web designer for a custom solution. However, it’s a wiser move to leverage plug-and-play alternatives, especially at the start. Once you are stable with a regular revenue stream, you can source for website customization.

    Choose a business structure

    If you are keen on setting up a long-term venture, then you want to start a legitimate business entity. Here is a rundown of the three commonly used structures:

    1. Sole proprietorship. This is the simplest structure to implement. However, it has no personal liability protection. In the event that your business gets sued, your personal assets are at risk. Its filing requirements are minimal and your business’ earnings are reported on your personal taxes.
    2. Limited liability company (LLC). This offers more protection of personal assets as your business is established as a separate legal entity. There are additional filing requirements and you’ll pay incorporation and ongoing fees.
    3. C corporation. Major corporations fall under this, as it offers the most liability protection. They are more expensive to set up as they are subjected to double taxation.

    ***Seek legal advice when deciding on the kind of business to choose***

    Devise a customer acquisition plan

    Despite having a killer product and website, you still need customers who want to buy. There are a number of ways to draw potential customers. The most effective way is to launch a Facebook ad campaign.

    • Facebook ads enable you to generate sales and revenue from the word go. This will allow you to scale quickly. The site also enables you to exhibit your offer directly to a highly targeted audience. This levels the playing field with larger brands and retailers.
    • Influencer marketing. If your budget is limited, influencer marketing is a sure way to experience higher return-on-investment while effeciently reaching your target audience. In fact, people nowadays tend to trust influencers more than conventional advertising. If you choose this route, settle on an affiliate fee as opposed to a flat rate. This way, you’ll both make money off each sale.
    • Content marketing. This method will give you a long-term traffic stream to your online store. Start a blog and produce content on your niche. Make the content educative and entertaining to your target audience. Additionally, you can opt to start a YouTube channel, start a podcast, or create infographics that help advertise your brand. For each strategy, ensure that you subtly include call to action tabs.
    • Communities. Involve yourself with cliques that are passionate about your niche. You can strike conversations with prospective customers on online forums such as Reddit, or even Facebook groups. Aim to help the potential customers while building relationships. This ensures they trust your brand and desire to buy from it.

    Analyze and improve

    You need to keep track of the results of your campaign and whether it is reaping benefits. With Shopify analytics, you can get information on:

    1. Sales. You can identify your best performing channels, where to pump more money, your best selling products, and your best customers.
    2. Shopper behavior. This includes the medium, that is, desktop or mobile and their conversion rates.
    3. Profit margins. You compare the sales and gross profits of every month.

    You can also leverage tools like Search Console and Google Analytics to gauge search traffic and improve on your SEO.

    In conclusion, with those steps, you should be on your way to setting up a stable drop shipping business with a revenue stream of over 1000 dollars a month. And with more consumers migrating from physical stores to online stores, the future couldn’t be brighter for drop shipping. What are you waiting for? Opportunity is knocking!


  • Best Online Stock Trading Platform

    Best Online Stock Trading Platform

    Stock trading can be a scary concept. After all, investing in markets is something difficult that only professionals can do, right? Well, not really. All you need to start trading today is some money to invest and a good online stock trading platform.

    E-Trade

    The poster child for online stock trading, E-Trade is a great place for beginners to start. If you’ve never done any trading before, we recommend E-Trade. You can get acquainted with the basics through their learning tools. They offer web seminars, reading material and more to get you comfortable with the idea of investing in stocks.

    They even have a team of market analysts who can help guide you in the best ways to invest your money. Their analyses are available through the site, and you can even contact a 24-hour helpline to give you market advice. Really, it’s a great all-in-one for beginners.

    Ally Invest

    Ally Invest is fantastic for those looking for a more budget-friendly way to trade. That’s because they have a low price for trading and a low commission structure for an online stock trading platform. They offer $5 trades, or $4 trades for people with more than 30 trades per quarter. That’s a pretty enticing deal for those looking to make a lot of trades!

    If you’re a relatively confident investor who just needs a good, stable and inexpensive platform, Ally Invest is for you. They’ve got a few nifty tools for users, and they offer the best bang for your buck.

    TD Ameritrade

    TD Ameritrade doesn’t have the low price of Ally Invest, but they offer some other interesting features. Trade Architect is TD Ameritrade’s beginner-friendly platform that will introduce new investors to all the concepts they need to know. The simplified platform is considered a rival to E-Trade’s easy-to-understand approach.

    TD Ameritrade also offers a platform called Thinkorswim, which is great for established and confident investors. Thinkorswim offers market analyses, charts, graphs and in-depth reports fit for the most discerning of investors. So, whether you’re a greenhorn or a grizzled vet, TD Ameritrade has an online trading platform that will work for you!


  • When to Buy and When to Sell: Stock Basics

    When to Buy and When to Sell: Stock Basics

    While everyone knows the tropes of some Wall Street banker screaming “Sell! Buy! No, sell!” into a telephone, not everyone understands the basics of the stock market. Essentially, the stock market is a way to invest in shares of a publicly traded company. Investing in the stock market can be quite lucrative, assuming you know how to buy and sell like a pro.

    Today we’re going over some basic rules of thumb to help guide your purchasing and selling. Remember, past performance is never a direct indicator of future changes. However, understanding historical patterns is a big step towards understanding what current trends could indicate. Let’s get into some tips and advice.

    Stock at Low Prices

    Investors are notoriously skittish. When stock prices start hitting lows, the average stock investor steers clear of it. The ample supply and low demand often means that the stock maintains its low price until confidence is restored. This often makes low stock prices ample times to buy in on the cheap. If the stock never bounces back, you’re not out much. If it does bounce back to its previous highs, you make out like a bandit.

    This might sound like a cliché, but it’s an old truth. You should always buy when the stocks are low, and sell when they’re high. Doing anything else is playing a scared, defeatist strategy in a world won by the boldest operators.

    Knowing When to Buy

    For each stock you’ve got your eye on, make sure you know what range you’d be comfortable buying it at. That’s not to say you mark down a hard dollar amount, above which you’d never buy it. Instead, look at a price range. If a stock has been high for years but then drops closer to your range, you might wait to see if it falls further. Once it shows signs of resurgence, though, you should go ahead and snap it up so you can ride that momentum.

    Do Your Research

    It’s important that you do your research. There are ample resources online that can help you learn more about how to value stocks. Notably, figuring out when stocks are under- or over-valued is important when you’re making your buying decisions. The main way to find out whether a stock is undervalued is by using valuation techniques. These can be somewhat complex and involved, but here are some of the basics.

    Essentially, valuation techniques are ways that financial advisors and stock managers look at given company’s stock prices and compares them to the company’s projected profits. These formulas are strictly speculative, of course, as no one can tell the future. However, these formulas tend to be time-tested and bear out over longer time periods and across wide sample sizes. When a stock is undervalued, that’s the time you should buy it.

    Patience in Selling

    It’s a rookie mistake to sell out of a stock right as it begins to shoot up in price. Maybe you bought stocks in a company that just posted three profitable quarters in a row and had its stock prices double. It can be tempting to go ahead and cash out, getting a return on your investment and a contented feeling of success. However, this is usually not the case.

    Typically, an undervalued stock could take years to begin trading at its true value. While analysts might project it will go up, that doesn’t mean it’s trading where you want it yet. As such, riding out the stock for a few years and waiting for it to grow naturally is your best bet before you sell out of it.


  • Is a Reverse Mortgage for You?

    Is a Reverse Mortgage for You?

    What is a Reverse Mortgage?

    If you are over the age of 62 and have most of your net worth tied up in your home, but you don’t feel like moving yet and want to stay put in your home, then a reverse mortgage may be the right option for you. It is a loan that allows you to borrow on the equity of your home, without having to sell the property or take out a risky home equity line of credit. Once you no longer live in the property, it can be sold to pay the loan balance off to the bank.

    A reverse mortgage is a great option to help you get money now without having to leave your home. But it isn’t the right choice for everyone. Let’s take a look at how a reverse mortgage works and why you may want to consider this for your needs.

    To keep it simple, a reverse mortgage is a line of credit. When a homeowner is 62 years old and has a lot of equity in their home, they can choose to borrow against the value of the home, receiving those funds either in a line of credit, a fixed monthly payment, or a lump sum. Unlike a forward mortgage, which is what you used to purchase the home to start with, the homeowner will never need to make loan payments for the loan.

    Instead of the homeowner making the payments, the entire loan balance becomes due and is payable when the borrower sells their home, moves away permanently, or when they die. When the home is sold, the amount of the reverse mortgage is paid over to the bank or financial institution that originally gave the money.

    There are some federal regulations assigned to a reverse mortgage. For example, all lenders must structure the transaction so that the amount of the loan will not exceed the value of the home. Also, the borrower and their estate will never be responsible for paying the difference if the balance of the loan becomes more than the value of the home. This requires banks to be careful about which homes they will do reverse mortgages are. If the market value goes down too much, then they may not get their money back from the loan.

    Reverse mortgages are nice because they will provide some cashflow to seniors who find most of their worth is tied up in their homes. They are complex and a little costly though so you may decide it is not worth your time. However, for those who qualify and decide to use this type of mortgage, they can get instant access to the equity of their home without the risks of a home equity loan and while still living in the home. Once they sell the home or pass on, the sale of the home will go to paying back the loan.

    The Benefits of Getting a Reverse Mortgage

    There are a lot of great benefits to working with a reverse mortgage, as long as you use it properly. Not everyone will choose to work with the option because it doesn’t work the best for them. But for others, it is a way to get rid of a traditional mortgage payment or get access to the equity of your home while you still live in and own the home. Some of the other benefits of working with a reverse mortgage include:

    Provides Flexibility

    This type of mortgage is flexible, allowing you several methods to choose from based on your home, the product you choose, and more. Households who have a specific financial need can choose the right product to help provide relief in their finances. You can use this type of mortgage even without financial issues because it can become a good financial planning tool for you.

    Stay In Your Home

    You could sell your home and tap into the equity that is there. But then you have to leave your home and find somewhere new to live. If you work with a reverse mortgage, you will be able to live in the home for as long as you want, without having mortgage payments. You can use the money, in most situations, for any purpose you want. This provides you a comfortable home without moving and with lots of additional financial resources.

    Low Risk of Default

    Unlike what happens when you work on a home equity loan, this reverse mortgage will not take your home away from you for non-payment. You do not need to put payments on the loan at all until you are ready to permanently ready to leave the home. Keep in mind that you will still be responsible for the insurance, taxes, and upkeep on the home. Outside of that, the lenders of these mortgages will never have a claim on your income or other assets.

    Tax-Free

    Since this type of mortgage is a loan, the money you receive from it is often tax-free. This is true whether you decide to turn this into a fixed-income that you earn a little bit each month or if you choose to take it as a lump sum all at once.

    No Restrictions

    It is possible to use the funds that you receive from the reverse mortgage in any way that you would like. You can choose to use it for a rainy day in case something happens later, to pay for your children’s education, to pay for insurance, to go traveling, or even for day to day cost of living. There are no restrictions on how you can use this money.

    Flexible Payment Options

    You get to choose the type of loan that the reverse mortgage turns into. You can either get all of the loan money from it in a lump sum, credit line, or an annuity. No matter which one you pick, all of the money comes to you at once. You can also choose to work with an option that sends you the money each month or every other month, so you receive another source of income for as long as you remain in the home.

    How Do I Qualify for a Reverse Mortgage?

    Before you apply for a reverse mortgage, it is important to learn whether you qualify for this type of mortgage or not. Each bank may add additional qualifications based on what they like to see before approving the mortgage. The basic requirements for qualifying on this type of mortgage include:

    1. The youngest borrower on the title needs to be a minimum of 62 years old.
    2. The owners must use the home as their primary residence. If you use the property for rental income, you will not qualify.
    3. There must be enough equity in the home. The exact amount of equity will vary from one bank to another. The bank wants to make sure they will get their money back. And you will need to pay off your mortgage plus have some to live off later. The more equity that you have in the home, the better for you.
    4. All borrowers must meet financial criteria. These rules are established through the HUD.

    If you do not meet all of these requirements, do not apply for the loan. Most banks will not work with you and this will just be a waste of your time. Instead, spend some time getting things in order and prepared so you can apply for a reverse mortgage later on.

    What to Expect When Applying for a Reverse Mortgage?

    When you are ready to apply for a reverse mortgage, there are a few steps that you need to undertake. First, you need to choose which financial company you would like to work with. Each one will have their special requirements you need to follow so take some time to do your research and pick out the right one for you.

    Once you have narrowed down your choices, it is time to apply. You will need to feel out an application that will provide the bank with your name, contact information, information on your finances, information on the home you would like to do the reverse mortgage on, and your credit history.

    Fill out the application completely, putting your best foot forward so the bank is more likely to offer you the reverse mortgage. You will likely need to provide proof and documentation of all statements you make about the property and your financial history. If the financial institution asks you for additional materials, submitting them promptly will help the process go smoothly.

    Hopefully, you looked to see what qualifications you needed to meet before you start. This will help the process go well and can prevent any heartache later on because you don’t meet the minimum requirements. While there are other reasons the bank may choose to deny your application, if you do not meet their minimum requirements, they will deny it before you get any further in the process.

    Which Banks and Institutions Specialize in Reverse Mortgages?

    When you are ready to apply for a reverse mortgage, it is best to choose a bank or other financial institution with the right experience to get this done. They can walk you through the process and ensure that you receive the care and attention necessary. Some of the best banks and institutions to consider for your reverse mortgage includes:

    • FirstBank
    • Quontic Bank
    • M&T Bank
    • The Federal Savings Bank
    • Townebank
    • Goldwater Bank
    • Resolute Bank

    In the past, Wells Fargo and Bank of America were two of the big names in reverse mortgages. In 2011, both of these banks announced that they would no longer offer reverse mortgages to potential customers in the future. You can also check with your local bank to see whether they offer some reverse mortgage options to help you.

    Are There Any Downfalls to Reverse Mortgages?

    There are a lot of benefits to choosing a reverse mortgage. However, there are times when you may want to hold off and not get this kind of mortgage at all. Some of the downfalls that come with a reverse mortgage include:

    1. High upfront costs: Lenders can make money on a reverse mortgage in the same way they do with a conventional mortgage. They do this by charging a lot of fees upfront for interest, points, origination, and more. You need to weigh the costs of doing this before jumping right in and see if it makes sense for your financial situation.
    2. Mortgage Insurance: Even though there is no worry about defaulting with a reverse mortgage, many banks will require mortgage insurance to help mitigate some of the risks the lender takes on, such as the home losing value.
    3. Other fees: The borrower of a reverse mortgage will still be responsible for all of the repair and maintenance costs on the home, the upkeep, the homeowner’s insurance, and taxes. These costs will not go away when you get a reverse mortgage.
    4. Need to have a high amount of equity: To even qualify for this mortgage, there needs to be a substantial amount of equity in your home. While applying, a lender will offer a percentage of the value of the home, based on your age and the program. When you do this mortgage, it needs to pay off any existing mortgage that is on the property. If your home doesn’t have enough equity, you may not qualify.
    5. Products are complex: A reverse mortgage may sound simple, but it is not always a suitable option for every homeowner. You need to look through the paperwork carefully to help make informed decisions. Learn how payments are made, how costs are charged, and all the other rules you will need to follow.

    There are a lot of benefits to getting a reverse mortgage and many homeowners decide that it is the right choice for them. It is important to understand how these reverse mortgages work and do your research to see if they work well for your needs or not. They can be wonderful financial tools for many, but this doesn’t make them the right choice for everyone. Talk with a lender and explore your options so you are well informed if a reverse mortgage will work for you.


  • Need a Divorce? Save BIG With These Tips

    Need a Divorce? Save BIG With These Tips

    The first decision is the hardest. You and your partner have decided to get a divorce. There are now a multitude of important life-defining decisions to be made. You don’t want to rely on a simple Google search and luck to find your lawyer. Your divorce attorney is going to handle multiple components of your divorce. They’re going to act as your advisor, spokesperson, negotiator and trusted confidant. They are going to be the person you rely on the most to advise you of your rights and the best course of action in your divorce.

    Start with research

    A simple google search is a great place to start. But nothing replaces a real face to face meeting. You want to be able to get a feel for the person and not rely on the opinions of others. Your gut instincts are more reliable than you might think. If the lawyer doesn’t advertise how long they’ve been practicing divorce law, that’s a good sign that they’re not very experienced.

    Find a good fit

    It’s nearly impossible to tell if a lawyer’s disposition matches what you’re looking for from a web search. Before deciding, you should think about what you want from them. Do you want a lawyer who’s empathetic to your plight? Do you want a lawyer who will be extremely aggressive in fighting for you? Do you want a lawyer who understands both sides and finds it important to have a cordial resolution? Do you want a law office with deep resources that can untangle a complicated situation?

    Talk to friends

    Some people prefer to keep their divorce a completely private matter. However, asking friends who’ve gone through a divorce for advice can be very beneficial. It’s important to remember that everyone’s experience and desired outcomes are different during a divorce.

    Knowing the right questions

    finally, when you sit down to interview lawyers to represent you, make sure to have in-depth questions ready. You should already have answers concerning their background. Typical questions like, “How many cases have you won,” aren’t particularly pertinent in a divorce case.

    Ask things like:

    How do you view the division of assets?

    What do you find the most challenging part of the divorce?

    What do you view as the best possible outcome for my specific situation?

    Communication is key

    You want a lawyer that makes you feel like you’re a priority. If your prospective lawyer is difficult to get ahold of early in the decision process that’s a strong indicator that you may want to look elsewhere. Your lawyer is not going to magically become more responsive once they have your money.

    Attention to detail

    Whenever you’ve made the decision to hire your lawyer make sure to pay special attention to your contract. Many lawyers will have minimum fees that’ll be charged for services even if you don’t take advantage of them. So, take out that red pen and come to an agreement about specific fees before you sign your name on the dotted line. Never be afraid to ask questions about certain parts of their contract.


  • Is Now the Time to Refinance Your Home?

    Is Now the Time to Refinance Your Home?

    When is the right time to refinance your home? That can be a tricky question, as the act of refinancing can be time-consuming and you want to make sure you’re getting the best deal. However, the general rule of thumb is that you want to refinance when you can save at least 2% of the interest rate of your current mortgage. Let’s get more into home refinance, what it means, and when you should pull the trigger.

    Remember: if you have specific questions about real estate or home values, you might wish to speak to a professional financial advisor. Everyone’s situation is unique, and while general rules are helpful, you’ll want specific advice when you go to make major moves like refinancing your home.

    Home Refinance

    What is Home Refinance?

    Home refinancing refers to a practice that involves taking out a new mortgage loan to pay off an existing loan. Broadly, this falls under the umbrella of a financial practice called debt consolidation. This might sound a bit odd at first. Why would you take out a loan just to pay off another loan? However, this makes more sense when you look at the benefits you could get. For instance, if you can get your interest rate lower on the new loan than your existing loan, it’s a good idea to refinance.

    Typically, people are going for the lower interest rate. However, there are other reasons to do this. These reasons could include switching from a fixed-rate mortgage to a variable mortgage, or vice versa. One could also make the switch in order to shorten the length of their mortgage.

    Lower Interest Rates

    One of the main reasons people will refinance is to get a lower interest rate. As a general rule, if you can reduce your interest rate by at least 2%, you should do so. In a market with historically low interest rates, you should also consider getting a fixed-rate loan, which will lock in a rate for the duration of the loan. This can give you peace of mind that the loan will remain stable even as the interest rates of the market go up.

    When one gets a lower interest rate on their mortgage, they have two options. First, they could simply opt to have lower monthly payments. This is great for people who might not have a lot of money left over at the end of the month. Another option would be to pay off the loan faster by keeping the payments the same. This is a great option for people who aren’t having any issue meeting all of their bills every month.

    Fixed Rate: The Right Call?

    Should you get a fixed rate loan when you refinance, or should you opt for an adjustable rate? This is a complex question that depends on a number of factors, like the length of the loan and the current interest rates in the market. However, as a general rule, if interest rates are low or your loan is for a longer period, you may wish to get the fixed rate. This locks in the interest rate and gives you peace of mind that you’re not having to keep up with the market’s rates.

    On the flip side, if you loan is longer, or if interest rates are historically high, you may wish to go with an adjustable loan. Adjustable loans change their interest rates based on the market, generally reflecting what you see on the housing market. These allow you to buy-in with a higher interest rate without worrying about getting stuck with it even while rates in the market fall.


  • 2020 Tax Guide: Info you Need

    2020 Tax Guide: Info you Need

    The 2020 tax season is almost upon us and many are already taking a look at the steps they need to take to be prepared and ready to go. With all of the changes that happened to the world in 2020, it is normal to have a few questions about how your taxes will do and what changes you should be on the lookout for. In this article, we will spend some time exploring your taxes and what you can expect when you file them this year.

    Changes to the 2020 Taxes

    When you go to file this year, be ready for a few major changes to take place. The IRS is preparing for an influx of individuals who have some drastic changes in their taxes due to unexpected unemployment and more. Some of the different things to expect this tax season include:

    The Stimulus Payment

    Many individuals and families received a stimulus payment earlier this year as part of the CARES Act. This is not going to negatively affect your taxes at all. It is an advance refundable tax credit. This means that no matter what you owe, or don’t owe, when you are done filing your tax return, you will still get to keep that money and you will not be taxed on it at all.

    This is good news for many families. You will not need to worry about paying taxes on that money. And you will not have to pay it back now that the year has ended. If you were within the income guidelines put forth for that rebate, then that money is yours and it will not affect what you will or will not pay in taxes, even if you end up earning more in 2020 than you did in 2018 and 2019, which is what the rebate was based on.

    Deductions

    The types of deductions, and the amount you can deduct on your tax return will be a little bit different in 2020 too. The standard deduction when we look at a tax return for someone married filing jointly will rise up to $24,800 this year. For married individuals who will file separately and single taxpayers, this deduction will increase to $12,400.

    There are also a few changes to the AMT exemption, or the alternative minimum tax exemption. The amount for those who file as single will be $72,900 and it phases out at $518,400. For those who are married and file together, this exemption will be at $113,400 and will phase out at $1,036,800.

    Taxpayers will notice some differences with the CARES Act too. Due to the language in this act, you can have $300 above the line deductions for any of the cash contributions you give to charity if you stick with the standard deduction this year. In addition to those, those who itemize will be able to lift the 60% AGI limitation on the amount you contribute in cash. Keep in mind with this that any donor-advised funds and the organizations that are supported by it can’t qualify for this.

    The Tax Brackets

    Every year it is important to take a look at some of the tax brackets and figure out where you fall in them. This will determine how much you will end up paying in taxes at the end of the year. For 2020 and 2021, the top tax bracket will be at 37%. This is the rate for individual taxpayers when they file as single if they have an income higher than $518,400 in 2020. The income amount limit will be higher in 2021.

    For married couples, the 37% will not go into affected until they earn $622,050 when filing jointly and $311,025 when filing separately. Some of the tax brackets to consider include:

    35% for those who are single or married filing single who earn more than $207,350 for the year. This tax bracket is $414,700 for those married filing jointly.
    32% for married filing single and single taxpayers who earn more than $163,300 in 2020. This tax rate starts at the income of $326,600 for taxpayers you are married and filing jointly.
    24% for married filing single and single taxpayers when they earn more than $85,525. For taxpayers who are married and filing jointly, this tax rate happens when you reach the income level of $172,750.
    22% for single filers will start when they reach an income level of $40,125. This is the tax rate for those filing married and jointly at $80,250.
    12% starts for single taxpayers when they earn more Than $9875 in 202. The rate is put into affect at the income of $19,900 for married filing jointly.

    There is a tax bracket of 10%, but this is for those who earn less than $9875 a year as a single taxpayer. For married individuals, this will be the tax amount when they earn less than $19,750 in the year.

    If you are uncertain about your tax bracket, then it is important to talk with a tax professional ahead of time. Keep in mind that if you have some deductions in place, you may be able to lower the amount that you owe and put yourself in a lower tax bracket. This will save you a lot of time and money in the process.

    Your Retirement

    The IRS has made some changes to how your retirement withdrawals are handled this year as well. To start are the contribution limits. These limits for any employee who participates in an employer retirement plan is increased to $19,500 in 2020. It was $19,000 in the past. For individuals who are age 50 and older who want to do a catch-up contribution, the limit has increased to $6500.

    As a taxpayer, you are able to deduct some of the contributions you make to a traditional IRA if you meet some conditions. There are some phase-out times depending on how much you make, but all of the limits for this phasing out have been increased based on inflation.

    The biggest changes here though are on the withdrawals that you can take on these. If you qualified for any coronavirus-related distributions from the retirement, you will not need to pay for the 10% penalty for withdrawing it early. The distribution is taxable but you can also spread the taxes on that out between three years rather than having it due the entire year that you take it out. If you pay the funds back to the plan within that three year timeframe, it is a rollover and you will not be taxed.

    Because of Covid-19 and many people needing financial help, you are able to also take a loan out of your employer-sponsored retirement plan, up to the full amount or $100,000 depending on which one is smaller. You can then delay the payments on that amount for a year without having to pay anything on it. If you have a loan outstanding on that retirement plan, then you can defer it for a year if necessary.

    Credits

    In the 2020 tax year, the maximum earned income credit is at $6,660 for taxpayers who have three or more children who qualify. In addition, the MAGI amount used by those who are married and file jointly to determine the reduction of the lifetime earning credit will be at $118,000 and phases out completely at $138,000.

    Estates and Gifts

    Even the estates and gifts for this year will change. Estates of decedents who die during the 2020 year will have a basic exclusion amount of $11.58 million this year. The annual exclusions for gifts is $15,000, which is the same as it was in 2019.

    Tax Services to Use

    You do not need to file your taxes on your own. In fact, many individuals find that going in-person or using an online tax filing company makes the whole process that much easier. There are a number of different online tax services that you can use, each with varying costs depending on what type of filing you need to do. For example, if you are just filing for yourself and one job, you may be able to file for free. If you have a business, a house, student loan debt, and other factors, you may need to use one of the services that costs a bit more.

    Some of the best tax service companies to consider using this tax season include:

    TurboTax

    TurboTax allows you to be in the driver seat of your taxes, making it easy to choose the level of help that you want. You can go through and file your taxes all on your own. Or you can use their live tax experts to walk you through every step of the process. They also will go through the whole return before you file to make sure nothing is missed.

    There are a few different plans you can pick out depending on your unique situation through TurboTax. Some of these include:

    The Free Edition: This one doesn’t cost anything but it is only for a very simple tax return. If there is anything special with your taxes, you will have to pay more.
    Deluxe: This would be the option you would need to use if you are married filing together, if you have children, or for any other special situations. It is the most popular option and costs about $60. The state return will cost extra.
    Premier: This option is the best one to choose if you have rental property or investments that you need to claim on your return. It costs about $90 for the federal return.
    Self-employed: If you run your own business or do any freelance work, then the self-employed is the best option. It will run about $120 for the free version.

    H&R Block

    H&R Block is another great company to use to help you handle your taxes at the end of the year. They provide a lot of one on one service and can be a great option for those who have no idea how to handle their taxes at all. You will need to set up an appointment to work with them ahead of time because of the pandemic, but this company has always been one you can trust.

    The amount you will pay for filing with H&R Block will depend on the type of tax return and how much work needs to go into it. The average fee is $147 for each return. This is before you add in itemized deductions to the mix. If you add these, a business, and other options, it is often more expensive to complete.

    1040EZ

    If you have a simple return and can handle your taxes on your own, it is possible to visit the IRS website and do all of the work on your own. This will save you a lot of money. The IRS has a ton of forms that will work for each situation you need during tax time. You just need to know enough about your taxes to handle it and not make mistakes. But if you can do this option, it is completely free to file the taxes.

    TaxAct

    This option may not be as well-known as some of the other options, but it is a great way to handle your taxes and make sure you get the refund you want. They offer some free options if you have simple taxes, which can make them a great place to start. You can even start your return for free and they will let you know if you need one of the other plans based on how you answer questions as you go along.

    TaxAct offers a few different plans based on your tax needs. Some of them include:

    • Free: This one will be great for simple filers and will not cost anything.
    • Deluxe: This is the most popular plan and is the one you most likely will need to use. It works for any deductions, homeowners, and so on. The cost is $25 to file.
    • Premier: This is a great option to use for foreign bank accounts, rental properties, and investments. The cost is $34.95.
    • Self-Employed: If you run your own business, then you will need to use this option. It will help you to get the most out of your return each year and costs $65.

    Conclusion

    Tax season is always a little bit stressful. You have to keep track of all the money you earned and all the special situations that come with it. Then you need to learn any rules and changes in laws that may have come up over that time as well. By looking through this article and understanding more about the recent tax changes, you will be able to accurately file your taxes with ease this year.


  • Thinking about Getting Engaged? Why Blue Diamonds are so Popular

    Thinking about Getting Engaged? Why Blue Diamonds are so Popular

    Blue diamonds are rather rare, and, as such, are extremely expensive. Naturally occurring blue diamonds are so rare that many people thought that “blue diamonds” weren’t actually a real thing in antiquity. Instead, it was thought that such stones were actually sapphire.

    In the modern era, blue diamonds are exceedingly popular as engagement ring stones. This is due to the striking appearance and deep symbology of blue diamonds. Today, we’re looking more deeply into blue diamonds and their place among other types of diamond.

    Blue Diamonds

    Overview

    Despite their physical similarities, sapphires and blue diamonds are not the same gemstones. Sapphires are actually part of the corundum family, much like rubies. Corundum is a crystallized form of aluminum oxide and manifests many colors in nature. Blue diamonds, as their name implies, are a solid form of the element carbon, like all naturally occurring diamonds.

    Blue diamonds, unlike their clear or yellow cousins, are exceedingly rare in nature. They share this trait with red or pink diamonds, though blue diamonds tend to be more popular in formal jewelry. Blue diamonds, much like any diamonds, have a crystalline lattice structure that makes them incredibly hard and resistant to most forms of contaminates.

    Deep Blue

    The beautiful deep blue color of blue diamonds is caused by the rare appearance of a contaminate in the crystalline lattice structure. In the case of a blue diamond, the contaminant in question is boron. Few elements can contaminate diamonds, as their carbon-lattice structure is very resistant to such impurities. This makes blue diamonds much rarer than white or yellow diamonds.

    In fact, blue diamonds are almost entirely of the Type IIb diamond classification, which themselves are only 0.1% of the world’s supply of diamonds. Only a few of these, in turn, are blue. This means you can expect to pay a pretty penny for a blue diamond, but you’ll know you’re getting one of the rarest rocks on Earth.

    It’s also possible to create a blue diamond in a lab setting. Artificially made blue diamonds are made using electron-beam radiation, and it’s much more likely that this what you’re buying when you start shopping for a blue diamond.

    Blue Diamond Lore

    Humans love gemstones, and many people ascribe various near-supernatural powers to them. Blue diamonds are no exception. Many people ascribe properties of truthfulness, eternity, peace, devotion and spirituality. It’s no surprise, then, that these rings prove so popular as engagement rings. What words are better to describe a union than eternity, truthfulness and devotion?

    Famous blue diamonds are not plentiful, but their fame outweighs their small numbers. One of the most famous gemstones of all time, the Hope Diamond, is a fancy blue diamond. Originally, the Tavernier Blue, a rough but strikingly beautiful diamond, was cut down into the Blue Diamond of the French Crown.

    The Hope Diamond

    History holds that Tavernier, a French explorer, purchased the exceptionally large diamond from a mine in India. He then sold it to the French Crown, where it was cut down into the French Crown’s prized Blue Diamond. Following the events of the French Revolution in the late 1700’s, the diamond was stolen and recut into the smaller (yet still exceptionally large) Hope Diamond in an attempt to obscure its origins.

    Following a long and complex series of changing hands in the intervening century, the Hope Diamond eventually found its way to rest in the National Gem Collection in Washington DC. The stone is so famous and rare as to be of literally incalculable value. It’s impossible to say how expensive the stone would be if it were auctioned. Folklore has also suggested that the stone possesses ill fortune, and any wearers of the jewel have a cruel fate befall them.