We're talking modern approaches to personal finance and retirement planning. Pull up a chair.

Table Talk

<p>Today, Lendtable is excited to announce a new partnership with 401K Partners. Together, we’ll work to bring all-encompassing financial guidance to Lendtable customers and employees across the United States.</p>
<p>401K Partners is at the forefront of retirement planning and financial wellness based out of the Midwest. They specialize in proactively optimizing 401K plans, ensuring that employees and employers alike can make the most of their retirement savings.</p>
<p><strong>Like Lendtable, 401K Partners is aligned with ensuring their clients are building their retirement net-worth.</strong> Their fee structure is designed to grow their clients&#39; wealth as much as they can. This natural alignment and their desire to modernize financial solutions is what immediately excited us about 401K Partners. Innovation is needed to ensure American financial security, and 401K Partners sees Lendtable as great tool to promote wealth building.</p>
<p>Lendtable’s goal has always been to meet our customers where they are. Whether that&#39;s how we talk to them or where they can find us, we aim to make saving for retirement as easy and simple as possible. Now that we have made getting your 401(k) match a simple process that can be done in minutes, our next step is to make finding us just as quick. We see partnerships with RIAs, 401(k) providers, and other fintechs as a clear path to make discovering Lendtable simpler than ever. RIAs understand the importance of their clients getting their 401(k) match/ESPP, and promoting Lendtable helps them boost the assets their clients accumulate. Working together enables Lendtable and our RIA partners to achieve aligned goals.</p>
<p>Regarding 401K Partners, the collaboration will harness our expertise in earning retirement benefits alongside 401K Partners’ proven investment management services and financial planning abilities. It represents a significant step forward toward Lendtable’s mission to democratize retirement so <em><strong>every</strong></em> American can retire by 65.</p>
<p>Specifically, this partnership will provide Lendtable customers the opportunity to learn about investment advice, financial/retirement planning, and how to minimize taxes from 401K Partners.</p>
<p>To learn more, follow this <a href="https://www.401k.partners/">link</a> to 401K Partners’ website.</p>


Lendtable and 401K Partners will work to bring all-encompassing financial guidance to employees across the United States

Lendtable announces new partnership with 401K Partners

<blockquote>
<p>“Most people, middle-class or lower, struggle to put food on the table and a roof over their head, and they don’t have the money left over to save,” said Steve Rosenthal, a senior fellow in the Urban-Brookings Tax Policy Center.</p>
</blockquote>
<p>USA Today’s <a href="https://www.usatoday.com/story/money/2024/02/08/case-against-401k-ira-retirement-tax-breaks/72506433007/">new article</a> touches on the struggle many Americans face in saving for retirement.</p>
<p>As of 2019, only <strong>1 in 10</strong> low-income households had a retirement account balance, and that was before the COVID-19 pandemic caused unexpected financial burdens for millions of Americans.</p>
<p>Saving for retirement is expensive and not an immediate priority for most people - student loans, medical bills, rent increases, and other expenses leave people with little to no cash to contribute toward retirement.</p>
<p>Lendtable was established in 2020 to solve this exact problem - we’re here to help you save for retirement, without sacrificing any other important expenses.</p>
<p>We’re on a mission to democratize retirement so <em><strong>every</strong></em> American can retire by 60.</p>
<p>See how much you can save by using Lendtable today.</p>


Lendtable remains a viable option for many Americans who need to increase their retirement savings

Unveiling Solutions: Addressing USA Today's Retirement Crisis Report

<h4 id="hi-melissa-were-so-excited-to-have-you-here-why-dont-you-introduce-yourself-a-little">Hi Melissa, we&#39;re so excited to have you here! Why don&#39;t you introduce yourself a little?</h4>
<h4 id="where-are-you-from">Where are you from?</h4>
<p>I grew up south of Seattle in Kent, WA, but have been in SF ~12 years and lived in Southeast Asia ~3 years before that.</p>
<h4 id="before-coming-to-lendtable-what-were-you-doing">Before coming to Lendtable, what were you doing?</h4>
<p>I was a designer at Microsoft. Before tech, I was a chocolatier fine dining pastry chef.</p>
<h4 id="what-made-you-choose-to-come-to-lendtable">What made you choose to come to Lendtable?</h4>
<p>It&#39;s something I could have used when I was early in career—it could have changed my wealth story dramatically. Besides that, fintech appeals to me because people will always have money problems; why not try to solve them with a rad, energized team?  </p>
<h4 id="why-is-lendtables-mission-important-to-you">Why is Lendtable&#39;s mission important to you?</h4>
<p>I&#39;m a child of immigrants and a woman, which has led to a lot of &quot;save, don&#39;t spend money you don&#39;t have&quot; type of advice. It&#39;s decent, but limited. I love giving more people the tools to build wealth. We&#39;re uniquely positioned to change their trajectory for generations to come. That sounds lofty, but if we get this right, we can do some real good.</p>
<h4 id="what-are-you-passionate-about-outside-of-work">What are you passionate about outside of work?</h4>
<p>Designing dumb swag, riding bikes, and helping my dog Taters live her number-one-seagull-botherer dreams.</p>
<h4 id="where-do-you-look-for-financial-tips-and-advice">Where do you look for financial tips and advice?</h4>
<p>When I was at Microsoft, there was this great employee resource group for women&#39;s finance. People shared their money wins, strategies (travel hacking, maxing out benefits, tax advantages), and money questions they were afraid to ask anywhere else. You better believe I&#39;m bothering my financial people at Fidelity quarterly. I also love talking to friends and colleagues about compensation, career, and finances, and how we can help each other get where we want to go.</p>
<h4 id="what-do-you-consider-your-greatest-financial-accomplishment">What do you consider your greatest financial accomplishment?</h4>
<p>There are so many ways to look at this. I&#39;d say the most impressive was keeping my hooks in San Francisco while working in the restaurant industry for 3 years. I made less than $30,000 a year and lived in a rent-controlled apartment that had more roommates than bedrooms and a truly unpleasant cat (and I love cats). Thank you, Craigslist.</p>
<p>Other big moments were fighting a pay equity issue and winning, getting my first apartment by myself, and negotiating compensation.</p>
<h4 id="whats-one-piece-of-advice-youd-give-your-younger-self">What’s one piece of advice you’d give your younger self?</h4>
<p>Do more intentional goofing off and trying things on. Invest. </p>
<h4 id="rapid-fire-time">Rapid fire time!</h4>
<h4 id="favorite-season">Favorite season?</h4>
<p>Bike ride season (always be biking).</p>
<h4 id="pet-peeve">Pet peeve?</h4>
<p>Wet countertops.</p>
<h4 id="favorite-cuisine">Favorite cuisine?</h4>
<p>I&#39;m in a big soup era right now.</p>
<h4 id="favorite-city">Favorite city?</h4>
<p>Bangkok.</p>
<h4 id="favorite-drink">Favorite drink?</h4>
<p>Leeward Negroni at PCH or a dirty gin martini at The Lone Palm.</p>
<h4 id="nickname">Nickname?</h4>
<p>Chef.</p>
<h4 id="any-last-remarks">Any last remarks?</h4>
<p>I&#39;m so glad to work with this team and see their wonderful faces IRL. Remote work has unlocked a lot of opportunities, but it&#39;s not it for me.</p>


After a winding and opportunistic career, our new Senior Product Designer is bringing a creative viewpoint to the team!

New Hire Spotlight: Melissa Santos, Senior Product Designer

<h4 id="hi-maggie-were-so-excited-to-have-you-here-why-dont-you-introduce-yourself-a-little">Hi Maggie, we&#39;re so excited to have you here! Why don&#39;t you introduce yourself a little?</h4>
<h4 id="where-are-you-from">Where are you from?</h4>
<p>I’m from Heppner, a small town in Eastern Oregon.</p>
<h4 id="before-coming-to-lendtable-what-were-you-doing">Before coming to Lendtable, what were you doing?</h4>
<p>Before Lendtable, I was a program manager at Plaid and before that I managed Operations at a loan servicing startup.</p>
<h4 id="what-made-you-choose-to-come-to-lendtable">What made you choose to come to Lendtable?</h4>
<p>The team and the product itself! It was clear from the very first email that Lendtable is a mission-driven company and the folks here are caring, smart, and ready to get things done.  </p>
<h4 id="why-is-lendtables-mission-important-to-you">Why is Lendtable&#39;s mission important to you?</h4>
<p>The stats are clear–not enough people are saving for retirement, and it’s not because they don’t want to. Lendtable is a product that helps people invest in their future–a super impactful and far-reaching initiative. </p>
<h4 id="what-are-you-passionate-about-outside-of-work">What are you passionate about outside of work?</h4>
<p>I’m all about food–new restaurants, cooking, baking, and enormous family dinners. I love a good tiki bar, of which SF has many. I enjoy museums (Legion of Honor and the Fogg are my favorite). I find languages fascinating and have attempted to learn many and when I feel like being a couch potato, I binge the occasional k-drama.</p>
<h4 id="where-do-you-look-for-financial-tips-and-advice">Where do you look for financial tips and advice?</h4>
<p>My aunt and NerdWallet. I’m excited to learn more here!</p>
<h4 id="what-do-you-consider-your-greatest-financial-accomplishment">What do you consider your greatest financial accomplishment?</h4>
<p>I bought a house a couple years ago! It was very scary and something I never thought I’d be able to do when I moved here. It’s definitely been a learning curve but I feel very lucky every time I walk in the door.</p>
<h4 id="whats-one-piece-of-advice-youd-give-your-younger-self">What’s one piece of advice you’d give your younger self?</h4>
<p>Everything is going to be A-OK! You can prioritize self-care and rest. </p>
<h4 id="rapid-fire-time">Rapid fire time!</h4>
<h4 id="favorite-season">Favorite season?</h4>
<p>Summer ☀️</p>
<h4 id="pet-peeve">Pet peeve?</h4>
<p>I always straighten a frame when it’s tilted.</p>
<h4 id="favorite-cuisine">Favorite cuisine?</h4>
<p>Vietnamese (my SF faves so far: Yummy Yummy, Pho Day, and Jasmine Garden)</p>
<h4 id="favorite-city">Favorite city?</h4>
<p>Besides San Francisco? Valletta, Malta (speaking of amazing food).</p>
<h4 id="favorite-drink">Favorite drink?</h4>
<p>NA: Lemonade
Alcoholic: an Aviation or any tiki drink</p>
<h4 id="nickname">Nickname?</h4>
<p>Maggie is technically a nickname already (my family, who decided my name, felt that Margaret was too old-fashioned). </p>
<h4 id="any-last-remarks">Any last remarks?</h4>
<p>I’m excited to be here and to learn from everyone!</p>


Our new Senior Strategic Operations Manager is bringing a growth mindset and bubbly personality to the team!

New Hire Spotlight: Maggie Armato, Senior Strategic Operations Manager

<p>At Lendtable, our team&#39;s number one value is <em>Be Worthy of Trust</em>. We aim to create clear and transparent financial products for our customers. However, personal finance is complex, and our product must account for scenarios such as taxes, investment returns, and interest rates that can understandably lead to confusion.</p>
<p>Today, I will take some time to address some of the most common misconceptions we hear about our product.</p>
<h2 id="misconception-1-you-will-lose-money-using-lendtable"><strong>Misconception 1: You will lose money using Lendtable.</strong></h2>
<p>We often hear this concern from people, and the common misperception is that Lendtable customers will not have the means to pay us back or will have no savings remaining after they do. This is incorrect for many reasons, but I will start with the most important one:</p>
<p><strong>Lendtable only charges a profit share fee if you receive 401(k) matching contributions.</strong></p>
<p>Simply put, our fees cannot exceed the 401(k) match money you earn, as our fee depends on whether you receive a match from your employer. This means that if a customer chooses to pay us back using funds they have withdrawn from their 401(k), they will still be able to cover our principal and share of the match.</p>
<p><strong>Our profit share is only on the match, not the investment returns.</strong></p>
<p>Our pricing is simple: we take 20% of the after-tax 401(k) employer contribution and charge a $10 membership fee each month to keep the lights on.</p>
<p>We will only give you enough to get your full match so every dollar we give you earns an immediate return.</p>
<p><strong>For you to not have enough match money left in your 401(k) to pay us back, the investment returns on your 401(k) would need to decrease catastrophically.</strong></p>
<p><img src="https://cdn.sanity.io/images/ge4nycbu/production/1cdb3b1b0cc4d480ac39a15e289baf429bf26549-2000x1025.png" alt="image"></p>
<p>401(k)s typically grow at an annual rate of 5-8%. Even if your 401(k) experiences a decline, the gains from getting your match would significantly outpace the market decline in almost all cases. For example, if you have a dollar-for-dollar $5,000 pre-tax match, after Lendtable’s fees you will keep $4,000 in your 401(k) if your 401(k) returns 0% growth. If the market declines 30% (remember – since 401(k) contributions are made monthly this would need to be roughly a 30% monthly decline), your $5,000 match will now be worth $3,500. After Lendtable’s fees, you would still have roughly $2,500 in your 401(k) even after a 30% loss in 401(k) value. For you to break even and make no money with Lendtable in this scenario, your 401(k) losses would have to be almost 50%. The US Department of Labor’s data shows that the worst performing 401(k) year since 1990 has been -25% (see chart above).</p>
<h2 id="misconception-2-when-you-pay-taxes-and-penalties-you-will-be-left-with-less-in-your-401k-and-in-your-pocket-than-when-you-started"><strong>Misconception 2: When you pay taxes and penalties, you will be left with less in your 401(k) and in your pocket than when you started.</strong></h2>
<p>This statement is also false. Let&#39;s consider an example of two customers, Sara and Jade. Sara is 35 years old, earns $80,000 per year, receives a 50-cent match for every dollar she contributes up to 6% of her salary, and has a federal income tax rate of 22%. Jade is 27 years old, earns $80,000 per year, receives a dollar-for-dollar match up to 6% of her salary, and has a federal income tax rate of 22%. Here&#39;s a breakdown of their savings (spoiler alert: both of them end up with thousands saved for retirement).</p>
<p><img src="https://cdn.sanity.io/images/ge4nycbu/production/78d7ab0db3e6a86be9869279b829ec4c71503902-1283x693.png" alt="image"></p>
<p>Even after paying all taxes and fees, Jade and Sara end up in a much better position than if they hadn&#39;t used Lendtable and missed out on their 401(k) match. It&#39;s important to remember that the money they earned will continue to grow through investment returns. That&#39;s the purpose of Lendtable - to help you start saving for retirement even if you don&#39;t have the cash on hand to get your full 401(k) match.</p>
<h2 id="misconception-3-ok-but-isnt-lendtable-is-the-same-thing-as-a-personal-loan"><strong>Misconception 3: Ok, but isn’t Lendtable is the same thing as a personal loan?</strong></h2>
<p><img src="https://cdn.sanity.io/images/ge4nycbu/production/ef06633e910869c20887a712c4e521ac43717ed2-2000x978.png" alt="image"></p>
<p>This statement is inaccurate for several reasons. Firstly, we do not charge any interest, whether simple or compound. Our fee is only a share of the employer match money that we help you earn. This means you get to keep a lot more of what you earn than you would with a traditional personal loan.</p>
<p>Secondly, we do not conduct a credit check when you sign up, so there is no impact on your credit score when you apply to use Lendtable. Let&#39;s take a closer look at these critical points.</p>
<p><strong>We do not charge compound or simple interest.</strong> Personal loans and credit cards are pure loans, and customers are typically expected to begin paying them back immediately. Compound interest is charged on the unpaid balances each year.</p>
<p>Compound interest can be a powerful tool for investing, but it should be used with caution when it comes to lending. If you do not pay off a personal loan or credit card in a timely manner, you could end up paying more in interest than the original principal balance.</p>
<p>At Lendtable, we charge only one profit share fee that does not accrue any interest. <strong>For example, if you earn $1,000 in match money and your tax rate is 25%, Lendtable&#39;s fee will be $150. Even if you haven&#39;t made a payment towards your balance two years from now, Lendtable&#39;s fee will remain at $150. This is not the case with a personal loan.</strong></p>
<p><strong>Pay us back when you leave your company.</strong> Now imagine a Lendtable customer who cannot currently afford to get their 401(k) match and cover their bills.</p>
<p>If they use a personal loan to cover the money they would contribute toward their 401(k) match, they may need to pay that back over a year. This would be the same as if they just contributed to their match without a loan.</p>
<p>If, for any reason, they do not earn their anticipated match (for example, the employee leaves their company before their matching contributions vest), they would still owe the same loan and interest rate regardless of their profit made. This could result in a significant loss. If this person uses Lendtable, our fee reflects the actual match earned. This means it only kicks in if they actually receive employer contributions.</p>
<p>At Lendtable, you do not pay back Lendtable’s principal and fee until you leave your employer. There are no monthly principal and interest payments, as with a personal loan.</p>
<p><strong>In summary,</strong> with Lendtable, you do not have to pay us back in monthly installments aside from your platform fee. You get to keep your income the same even though some of it is now going towards your 401(K) match. No additional interest is added to what you owe us each year your money is outstanding. If anything happens and you do not receive employer matching contributions, our fee will always be 20% of the employer contributions you actually earned.</p>
<p><strong>What does this really mean for you when we break down the numbers?</strong> Let’s go back to Jade from earlier. Let’s say she is considering using Lendtable vs. a personal loan and will end up staying for 2 more years. Here is how both options would turn out:</p>
<p><img src="https://cdn.sanity.io/images/ge4nycbu/production/dfd1fafc1a88b8ac1be996c55497b99f9bcc7f1f-1047x608.png" alt="image"></p>
<p><strong>With Lendtable, Jade can earn roughly 80% of her 401(k) match money while maintaining her out-of-pocket spending money. With a personal loan she will need to pay thousands of dollars out of pocket in order to get her match.</strong> Simply put, Lendtable is very different than a personal loan. Loans serve a completely different purpose than helping you get your 401(k) match. Lendtable on the other hand, is only here to serve that exact need. Our core goal is to help Lendtable customers save as much match money as possible for retirement by enabling them to start getting their 401(k) match.</p>
<h2 id="misconception-4-lendtable-is-bad-for-your-credit"><strong>Misconception 4: Lendtable is bad for your credit.</strong></h2>
<p><strong>We do not check your credit to decide if you are eligible to use Lendtable</strong> Your credit score will not be impacted by signing up for Lendtable, as we do not make any hard inquiries on your credit report.</p>
<p><strong>In the event that you do not begin making payments to your Lendtable balance on time</strong> (28 days without verifying you are still working at your employer or 14 days after you have left your employer), Lendtable reserves the right to inform credit bureaus which could affect your credit score, but our team is available around the clock to help you make a plan long before this ever happens.</p>
<h2 id="so-there-you-have-it-lendtable-can-be-and-is-a-great-option-for-many-us-employees"><strong>So there you have it. Lendtable can be (and is) a great option for many U.S. employees.</strong></h2>
<p>Every person&#39;s financial situation is unique, and we understand that only you can determine whether Lendtable is right for you. Our role is to ensure that you can make an informed decision by providing transparency and a clear understanding of how our product works.</p>
<p>Thousands of customers have relied on Lendtable to get their 401(k) match and ESPP. Each one has had unique and important reasons for doing so. Our customers have shared stories about how Lendtable has helped them contribute to their 401(k) for the first time, allowed them to continue getting their match as they made a down payment on a mortgage, and more.</p>
<p>With so many people helped, we&#39;re not stopping here. There is much more work we can do to spread financial empowerment to even more Americans. We hope that you will join us on this journey in one way or another.</p>
<p><em>Lendtable is a consumer financial services platform. Lendtable is not a bank. Lendtable does not offer tax, legal, investment, or financial advice. Always consider your personal situation when making financial decisions.</em></p>


Answers to common misconceptions about our product

Demystifying Lendtable

<p>Lendtable is on a mission to make sure everyone, regardless of socioeconomic class, can retire. We work to increase access to employee retirement benefits and the amount of people that take advantage of them.</p>
<p>Visa shares a similar mission. Through its Visa Everywhere Initiative, Visa aims to drive inclusive economic growth for everyone. This year, the Visa Everywhere Initiative has once again opened the door to nearly 400 hundred minority-founded startups to share their digital solutions that promote greater accessibility in the way we pay, save, and invest.</p>
<p>Lendtable is proud to announce that we won the audience favorite award from Visa! We’d like to thank all those who voted and the many incredible companies who were also extremely deserving. We are incredibly proud of our team for building a product that not only helps people save and invest for retirement, but also one that is loved! Lastly, we hope this will inspire founders to build businesses that help people. You don’t have to pick between a great product, growing a business, or helping people; you can do them all simultaneously and we hope Lendtable can be an example of that.</p>
<p>Lendtable was started to help all Americans retire and being that not all can, our work is not done. We greatly appreciate the recognition from Visa and feel even more invigorated than before to continue solving this problem that effects so many of our loved ones. Onwards and upwards!</p>


Mitchell Jones & Lendtable Named Audience Favorite!

Visa Everywhere Initiative: Black Excellence in FinTech

<p>Lendtable wants to help as many people as possible build long-term wealth and we need your help getting the message out.</p>
<p>For every person you refer that signs up and is approved before July 31, 2023 you will get an entry in a drawing to win $2500.*  The more you refer, the more entries you get.</p>
<p>Additionally, you and the person you refer get the standard referral reward of $250 towards your Lendtable balance due. </p>
<p>Get started now by sending your unique referral code to your co-workers.</p>
<p>You can find your unique referral link and see your referral credits by visiting the <a href="https://www.lendtable.com/dashboard-v2/settings/referrals/">Referrals section of accounts settings on your dashboard</a>.</p>
<hr>
<p>*The Lendtable Referral Raffle consists of (1) “Entry Period,” starting at 12:01 a.m. Pacific Time (PT) on June 1, 2023 and running through 11:59 p.m. PT on July 31, 2023. During each &quot;Entry Period&quot;, there are two ways to enter: (1) Each complete and qualifying “Referral” made to a non Lendtable customer, up to a maximum of 25 per Entry Period OR (2) A free mail-in entry, up to a maximum of 1 per Entry Period. One winner will be randomly selected per Entry Period to receive a $2,500 cash prize. Limit one win per person for the entirety of the Raffle. Promotion is ongoing and valid as of today’s date. This offer may be modified or withdrawn at any time and without notice. Winner is responsible for any federal, state, or local taxes due on the cash prize and we will report it as income to the tax authorities, if required by applicable law. Winner should consult a tax advisor. For a full set of rules, conditions, and terms, see below</p>
<p>LENDTABLE REFERRAL RAFFLE
‍NO PURCHASE NECESSARY TO ENTER OR WIN. A PURCHASE WILL NOT INCREASE YOUR CHANCES OF WINNING. ENTRANTS ARE NOT REQUIRED TO BE AN LENDTABLE CUSTOMER TO BE ELIGIBLE. The following Raffle Official Rules (“Official Rules”) apply to your participation in the Lendtable Referral Raffle (“Raffle”) offered by Lendtable, Inc. (“Sponsor”).
‍</p>
<ol>
<li><p>Eligibility. Eligibility is limited to legal residents of the fifty (50) United States and the District of Columbia who are of eligible age to participate in their jurisdiction and eighteen (18) years of age or older. Residents of U.S. Territories are not eligible. Void where prohibited. Employees (and their immediate families: parent, child, spouse or sibling and their respective spouses, regardless of where they reside, and those living in their same households, whether or not related) of employees of Sponsor and its parents, affiliates, subsidiaries and advertising and promotion agencies are not eligible to enter or win. By participating, entrants agree to be bound by these Official Rules and the decisions of Sponsor, which are binding and final on matters relating to this Raffle. Raffle is subject to all applicable federal, state and local laws.</p>
</li>
<li><p>To Enter. Promotion consists of one (1) “Entry Periods,” starting at 12:01 a.m. Pacific Time (PT) on June 1, 2023, and running through 11:59 p.m. PT on July 31, 2023. Promotion will end at 11:59 p.m. Pacific Time (PT) on June 31, 2023. During the &quot;Entry Period&quot;, there are two ways to enter: 1) Each complete and qualifying “Referral” made to a non Lendtable customer, up to a maximum of twenty-five (25) entries per Entry Period OR 2) A free mail-in entry, up to a maximum of 1 per Entry Period – Free Mail-In Method of Entry: To enter without completing a Referral method of entry, follow these instructions. On a 3&quot;x5&quot; card, hand print your full name, complete home address including zip code, home telephone number with area code, e-mail address (if available), and mail the card in an envelope with sufficient first class postage to: Lendtable Referral Raffle, Attn: Marketing, 1475 Folsom St., Ste. 200, San Francisco, CA 94103. Limit one (1) mail-in entry per entrant. No photocopies, facsimiles or mechanical reproductions of cards permitted. No metered mail will be accepted. Mail-in entries must be postmarked by July 15, 2023 and received by July 31, 2023. Limit twenty-five (25) entries per customer per Referral entry and limit one (1) entry per person per Mail-In entry for the duration of the Entry Period. Entries generated by script, macro or other automated or mechanical means, fraud or other illegal activities, or means which subvert the entry process will be void. All entries become the property of Sponsor and will not be acknowledged or returned. </p>
</li>
<li><p>Qualifying Referral. For a Referral Entry to be qualifying and complete, the referrer must send a non  Lendtable customer their referral link, and each non-customer must sign-up at <a href="http://www.lendtable.com">www.lendtable.com</a> using that referral link, execute a Lendtable contract, qualify to receive a first Lendtable payout, have paid the platform fee, and otherwise be in good standing as determined by Lendtable. </p>
</li>
<li><p>Random Drawing. One (1) winner will be chosen from all eligible entries received during the Entry period of the Promotion (12:00 a.m. PT on June 1, 2023 through 11:59 p.m. PT on July 31, 2023, Limit one win per person for the entirety of the Promotion. Odds of winning depend on the number of eligible entries received.</p>
</li>
<li><p>Winner Notification. The potential winners will be notified via email message by the tenth (10th) business day following the random drawing and may be required to execute and return an affidavit of eligibility, a liability release and, where lawful, a publicity release within seven (7) calendar days of date of issuance. If such documents are not returned within the specified time period, a prize or prize notification is returned as undeliverable, Sponsor is unable to contact a potential winner or a potential winner is not in compliance with these Official Rules, prize will be forfeited and, at Sponsor’s sole discretion, an alternate winner selected. If a potential winner is an eligible minor in his/her jurisdiction of residence, prize may be awarded in the name of his/her parent or legal guardian who will be responsible for fulfilling all requirements imposed on the winner set forth herein. The account owner’s Lendtable Account must be open and in good standing, in the sole determination of Lendtable. You do not need to have an account with Lendtable to win. There is no minimum balance requirement to win.</p>
</li>
<li><p>Prize. $2,500 (“The Prize”) will be awarded to Random Drawing Winner. The Prize will be awarded in the form of a $2,500 cash prize. In the case of an Mail-In entry winner, the prize winner will be issued a check. The Prize is awarded “as is” with no warranty or guarantee, either express or implied by Sponsor. Winner is responsible for all applicable federal, state and local taxes, if any, as well as any other costs and expenses associated with prize acceptance and use not specified herein as being provided. Lendtable does not offer or provide tax, financial, investment, or legal advice. All prize details are at Sponsor’s sole discretion.</p>
</li>
<li><p>General Conditions. Released Parties (as defined below) are not responsible for lost, late, incomplete, inaccurate, stolen, misdirected, undelivered, garbled, illegible or postage-due mail, entries or email; or for lost, interrupted or unavailable network, server, Internet Service Provider (“ISP”), website, or other connections, availability or accessibility or miscommunications or failed computer, satellite, telephone or cable transmissions, lines, or technical failure or jumbled, scrambled, delayed, or misdirected transmissions or computer hardware or software malfunctions, failures or difficulties, or other errors or difficulties of any kind whether human, mechanical, electronic, computer, network, typographical, printing or otherwise relating to or in connection with the Raffle, including, without limitation, errors or difficulties which may occur in connection with the administration of the Raffle, the processing of entries, the announcement of the prizes or in any Raffle-related materials. Released Parties are also not responsible for any incorrect or inaccurate information, whether caused by other entrants or Sponsor’s website users, tampering, hacking, or by any equipment or programming associated with or utilized in the Raffle. Released Parties are not responsible for injury or damage to participants&#39; or to any other person&#39;s computer related to or resulting from participating in this Raffle or downloading materials from or use of the Sponsor’s website. Persons who tamper with or abuse any aspect of the Raffle or Sponsor website or who are in violation of these Official Rules, as solely determined by Sponsor, will be disqualified and all associated entries will be void. Should any portion of the Raffle be, in Sponsor’s sole opinion, compromised by virus, worms, bugs, non-authorized human intervention or other causes which, in the sole opinion of the Sponsor, corrupt or impair the administration, security, fairness or proper play, or submission of entries, Sponsor reserves the right at its sole discretion to suspend, modify or terminate the Raffle and, if terminated, at its discretion, select the potential winners from all eligible, non-suspect entries received prior to action taken or as otherwise deemed fair and appropriate by Sponsor. Entrants, by participating, agree that Sponsor and its respective parents, affiliates, subsidiaries and advertising and promotion agencies and all of their respective officers, directors, employees, representatives and agents (collectively, “Released Parties”) will have no liability whatsoever for, and shall be held harmless by entrants against, any liability, for any injuries, losses or damages of any kind, including death, to persons, or property resulting in whole or in part, directly or indirectly, from acceptance, possession, misuse or use of any prize or participation in this Raffle. Each winner, by acceptance of prize, except where legally prohibited, grants permission for Sponsor and its designees to use his/her name, address (city and state), photograph, voice and other likeness and prize information for advertising, trade and promotional purposes without further compensation, in all media (including digital media) now known or hereafter discovered, worldwide in perpetuity, without notice or review or approval. In the event of a dispute regarding entries received from multiple entrants having the same e-mail account, the authorized subscriber of the e-mail account at the time of entry will be deemed to be the entrant and must comply with these Official Rules. Authorized account subscriber is the natural person who is assigned the e-mail address by the ISP, on-line service provider, or other organization responsible for assigning e-mail addresses. CAUTION: ANY ATTEMPT TO DAMAGE ANY SPONSOR WEBSITE OR WEB FORM OR TO UNDERMINE THE LEGITIMATE OPERATION OF THE Raffle IS A VIOLATION OF CRIMINAL AND CIVIL LAWS AND SHOULD SUCH AN ATTEMPT BE MADE, SPONSOR WILL DISQUALIFY ANY SUCH INDIVIDUAL AND RESERVES THE RIGHT TO SEEK DAMAGES (INCLUDING ATTORNEYS’ FEES) AND OTHER REMEDIES FROM ANY SUCH INDIVIDUAL TO THE FULLEST EXTENT PERMITTED BY LAW.</p>
</li>
<li><p>Privacy and Publicity. You agree that any information submitted as part of your Raffle entry is true, complete, and accurate. YOU HEREBY GRANT SPONSOR, ITS PARENTS, AFFILIATES, SUBSIDIARIES AND ADVERTISING AND PROMOTION AGENCIES WITH AN IRREVOCABLE, WORLDWIDE, PERPETUAL LICENSE TO USE YOUR ENTRY IN CONNECTION WITH IMPROVING, MARKETING, AND/OR SELLING LENDTABLE’S (OR ITS PARENTS’, AFFILIATES’ OR SUBSIDIARIES’) PRODUCTS OR SERVICES. ACCEPTANCE OF PRIZE CONSTITUTES PERMISSION TO USE, EDIT, MODIFY, DISTRIBUTE, CREATE DERIVATE WORKS FROM, REPRODUCE, DISPLAY OR PUBLISH THE WINNING ENTRY AND ALL ELEMENTS OF SUCH ENTRY, INCLUDING, WITHOUT LIMITATION, THE NAME, BIOGRAPHICAL AND EMPLOYMENT INFORMATION OF WINNER, IN PERPETUITY WITHOUT COMPENSATION (UNLESS PROHIBITED BY LAW), PERMISSION OR NOTIFICATION TO ENTRANT OR ANY THIRD PARTY, FOR SPONSOR’S PROMOTIONAL, MARKETING OR ADVERTISING PURPOSES. WHERE REQUIRED BY APPLICABLE LAW, WINNERS AGREE TO EXECUTE A SPECIFIC CONSENT TO ANY SUCH USE DESCRIBED ABOVE IF ASKED TO DO SO BY SPONSOR. If a winning entrant prefers not to have his or her name used in this manner, s/he must notify Sponsor upon receipt of notice that s/he has won. By participating, entrants also agree not to release any publicity or other materials on their own or through a third party regarding their participation in this Raffle, including their entry, without the prior consent of Sponsor, which it may withhold in its sole and absolute discretion. Except as otherwise set forth herein, use of the information submitted in the Survey and/or Raffle is governed by Sponsor’s privacy policy, which can be found at <a href="https://www.lendtable.com/legal/">https://www.lendtable.com/legal/</a></p>
</li>
<li><p>Arbitration.  Except where prohibited by law, as a condition of participating in this Raffle, entrant agrees that (1) any and all disputes and causes of action arising out of or connected with this Raffle, or any prizes awarded, shall be resolved individually, without resort to any form of class action, and exclusively by final and binding arbitration under the rules of the American Arbitration Association and held at the AAA regional office nearest the participant; (2) the Federal Arbitration Act shall govern the interpretation, enforcement and all proceedings at such arbitration; and (3) judgment upon such arbitration award may be entered in any court having jurisdiction. Under no circumstances will entrant be permitted to obtain awards for, and entrant hereby waives all rights to claim, punitive, incidental or consequential damages, or any other damages, including attorneys’ fees, other than entrant’s actual, reasonable and documented out-of-pocket expenses (i.e., costs associated with participating in this Raffle), and entrant further waives all rights to have damages multiplied or increased.</p>
</li>
<li><p>Governing Law. All matters pertaining to these Official Rules or any prize awarded and disputes arising hereunder shall be governed by and interpreted in accordance with the laws of the State of California, without regard to any conflicts or choice of law rules or provisions (whether of California or any other jurisdiction).</p>
</li>
<li><p>Sponsor; No Affiliation. The Sponsor is: Lendtable, Inc., 1475 Folsom St., Ste. 200, San Francisco, CA 94103. The Raffle is in no way sponsored, endorsed or administered by, or associated with, any organizations other than Lendtable, Inc. and its parents, affiliates, subsidiaries and advertising and promotion agencies.</p>
</li>
</ol>


Refer your co-workers for a chance to win $2500

Lendtable Referral Contest - Summer 2023

<h4 id="hi-june-were-so-excited-to-have-you-here-why-dont-you-introduce-yourself-a-little">Hi June, we&#39;re so excited to have you here! Why don&#39;t you introduce yourself a little?</h4>
<h4 id="where-are-you-from">Where are you from?</h4>
<p>Mostly San Francisco.</p>
<h4 id="before-coming-to-lendtable-what-were-you-doing">Before coming to Lendtable, what were you doing?</h4>
<p>I was working at an educational tech company and languishing in Portland.</p>
<h4 id="what-made-you-choose-to-come-to-lendtable">What made you choose to come to Lendtable?</h4>
<p>I chose Lendtable because it seemed like an earnest and sustainable attempt at making powerful financial tools for long-term financial wellness accessible to those who would feel that existing options are out of reach. </p>
<h4 id="why-is-lendtables-mission-important-to-you">Why is Lendtable&#39;s mission important to you?</h4>
<p>The modern financial landscape is predatory and inextricably integrated with parts of the social safety-net. Lendtable helps folks escape this predation and plan for a stable future. This is fundamentally good, and I want to help.</p>
<h4 id="what-are-you-passionate-about-outside-of-work">What are you passionate about outside of work?</h4>
<p>Spoiling my cat, learning how to program, comics and attempting to read books that I&#39;m unqualified to read. Also trying to get good at pinball.</p>
<h4 id="where-do-you-look-for-financial-tips-and-advice">Where do you look for financial tips and advice?</h4>
<p>r/wallstreetbets</p>
<h4 id="what-do-you-consider-your-greatest-financial-accomplishment">What do you consider your greatest financial accomplishment?</h4>
<p>Not losing money on dogecoin.</p>
<h4 id="whats-one-piece-of-advice-youd-give-your-younger-self">What’s one piece of advice you’d give your younger self?</h4>
<p>Do it, coward.</p>
<h4 id="rapid-fire-time">Rapid fire time!</h4>
<h4 id="favorite-season">Favorite season?</h4>
<p>Winter.</p>
<h4 id="pet-peeve">Pet peeve?</h4>
<p>Modals. Good god I hate modals. If you&#39;re thinking of using them, don&#39;t.</p>
<h4 id="favorite-cuisine">Favorite cuisine?</h4>
<p>Vietnamese. All I do I do for Pho.</p>
<h4 id="favorite-city">Favorite city?</h4>
<p>San Francisco.</p>
<h4 id="favorite-drink">Favorite drink?</h4>
<p>Depends on the day of the week and time of day. At 4:30 on 12/1/2022, it is a Strawberry-Lemongrass LaCroix&#39;nt</p>
<h4 id="nickname">Nickname?</h4>
<p>no</p>
<h4 id="any-last-remarks">Any last remarks?</h4>
<p>Yes.</p>


Our new Full Stack Engineer is ready to help us make long-term financial wellness accessible to all!

New Hire Spotlight: June Overbeck, Full Stack Engineer

<h4 id="hi-aaron-were-so-excited-to-have-you-here-why-dont-you-introduce-yourself-a-little">Hi Aaron, we&#39;re so excited to have you here! Why don&#39;t you introduce yourself a little?</h4>
<h4 id="where-are-you-from">Where are you from?</h4>
<p>I&#39;m from sunny Orange County, California! ☀️</p>
<h4 id="before-coming-to-lendtable-what-were-you-doing">Before coming to Lendtable, what were you doing?</h4>
<p>I was a software engineer at Robinhood for two and half years building long term investing products.
After Robinhood, I took a three month break to learn Japanese full-time through immersion.</p>
<h4 id="what-made-you-choose-to-come-to-lendtable">What made you choose to come to Lendtable?</h4>
<p>I&#39;m really passionate about financial education and building products that help people grow their money. 
Lendtable already brings great value to customers and I&#39;m very excited that there&#39;s still an ocean of ways we can bring more value. </p>
<h4 id="why-is-lendtables-mission-important-to-you">Why is Lendtable&#39;s mission important to you?</h4>
<p>While building long term investing products for the last few years I&#39;ve listened in on user-studies and talked to many people about their thought process on saving and investing. 
It became clear to me that many people don&#39;t have enough saved for retirement and don&#39;t know where to begin. I think we can improve the lives of many by building great financial products.</p>
<h4 id="what-are-you-passionate-about-outside-of-work">What are you passionate about outside of work?</h4>
<p>I&#39;m really passionate about language learning and finding ways to make it as fun as possible. Watching TV as your primary studying method actually works!
I like PC strategy games like Total War and Anno and simulation games like Rimworld and Banished.</p>
<h4 id="where-do-you-look-for-financial-tips-and-advice">Where do you look for financial tips and advice?</h4>
<p>I&#39;m always keeping my ears open for financial advice whether it be from friends or social media. If something sounds interesting I&#39;ll make note and educate myself before deciding if I want to incorporate it.</p>
<h4 id="what-do-you-consider-your-greatest-financial-accomplishment">What do you consider your greatest financial accomplishment?</h4>
<p>Selling my RH stock at IPO. It was definitely tempting to HODL 🚀🚀🌕, but I stayed true to my values and diversified my holdings.</p>
<h4 id="whats-one-piece-of-advice-youd-give-your-younger-self">What’s one piece of advice you’d give your younger self?</h4>
<p>I would tell him to be more self reflective and ask himself what he&#39;s doing well and what he should work on and improve at.</p>
<h4 id="rapid-fire-time">Rapid fire time!</h4>
<h4 id="favorite-season">Favorite season?</h4>
<p>I don&#39;t think I have one.</p>
<h4 id="pet-peeve">Pet peeve?</h4>
<p>Strong smelling fragrances. I&#39;m a super-smeller. Some scents are just crazy strong to my nose.</p>
<h4 id="favorite-cuisine">Favorite cuisine?</h4>
<p>Japanese: I love nigiri, ramen, curry and tonkatsu</p>
<h4 id="favorite-city">Favorite city?</h4>
<p>Irvine or Tokyo</p>
<h4 id="favorite-drink">Favorite drink?</h4>
<p>Boba milk tea or strawberry milk tea
I can also make a mean thai milk tea</p>
<h4 id="nickname">Nickname?</h4>
<p>I don&#39;t have one.</p>
<h4 id="any-last-remarks">Any last remarks?</h4>
<p>Nope!</p>


With a passion for building products that help people grow their money, we couldn’t think of a better person to join the Lendtable team!

New Hire Spotlight: Aaron Ko, Full Stack Engineer

<p>The holidays are consistently a tough time to save money; for most a decision has to be made between saving or spending. But what if we told you there is a simple way to continue saving towards retirement without decreasing your take-home pay?</p>
<p>Everyone already knows about the classic cost cutting, and best ways to save during the holidays such as:</p>
<ul>
<li>Creating a budget</li>
<li>Shopping early</li>
<li>Sticking to a shopping list</li>
<li>Setting boundaries on gift giving</li>
<li>Avoiding traveling / being flexible with when you fly</li>
<li>Gifting your time or homemade gifts</li>
<li>Reduce, Reuse, and Regift</li>
</ul>
<p>The list goes on and on, and while those are all helpful and effective options to cutting costs, we have a better idea! With Lendtable, if your employer offers a 401(k) match, we’ll send you money to offset what is leaving your paycheck to go into your 401(k). This way you’re saving for retirement at no cost to you. Instead of reducing your 401(k) contributions when the budget gets tight, let Lendtable replace those funds for you!</p>
<p>A 401(k) account is one of the most effective ways to save for retirement and many employers offer a matching program. When your employer matches your 401(k) contributions, you are literally getting free money added to your retirement savings <a href="https://www.google.com/search?q=how+many+americans+don%27t+use+their+401k+match&amp;rlz=1C5CHFA_enUS915US916&amp;biw=1164&amp;bih=858&amp;sxsrf=AOaemvJEfu4X6BfWLSzk8L4602ecYgGPdg%3A1634754307431&amp;ei=A19wYcLnGcf4-gSCgJmQDw&amp;ved=0ahUKEwiC9aeuztnzAhVHvJ4KHQJABvI4ChDh1QMIDg&amp;uact=5&amp;oq=how+many+americans+don%27t+use+their+401k+match&amp;gs_lcp=Cgdnd3Mtd2l6EAM6BwgjELADECc6BwgAEEcQsAM6BAgjECc6BQgAEIAEOgUIABCGA0oECEEYAFDwUljFcGCVcmgCcAJ4AIAB1gKIAesckgEHOS40LjcuMpgBAKABAcgBCcABAQ&amp;sclient=gws-wiz">but 1 in 5 people do not receive the full 401(k) employer match available to them</a>.</p>
<p>We believe the reason for this was not that they are making bad decisions, they are getting squeezed. They are choosing to pay their student loans. They are choosing to feed their families. They are choosing to pay off their mortgage. During this time of the year, they are choosing to spend on the holidays. They are making the right choices for their today at the expense of their tomorrow.</p>
<p>This is where Lendtable comes in. You can get reimbursed for your 401(k) contributions and keep 80% of the employer match. This means you maintain your income to pay for your current needs and get your employer matching contributions at the same time.</p>
<p>You shouldn’t have to make the decision between saving for retirement or buying holiday gifts. You shouldn’t have to make the decision between saving for retirement or buying airplane tickets to visit family. You shouldn’t have to choose between saving for retirement and paying down your debt. The bottom line is that saving for retirement when your employer is offering you free money, shouldn’t mean you have to give up other things.</p>
<p>We have helped more than 3000 people get more than $7 million in employer matching contributions and get on the path to a secure retirement. So, if you’re struggling with balancing saving for retirement and spending for today&#39;s expenses, check out Lendtable and see how we can start helping you today!</p>


Lendtable can help you save for retirement while still spending during the holidays!

Holiday Spending and Retirement Saving: NOT Mutually Exclusive

<h4 id="hi-loan--manali-were-so-excited-to-have-you-both-here-why-dont-you-introduce-yourselves-a-little">Hi Loan &amp; Manali, we&#39;re so excited to have you both here! Why don&#39;t you introduce yourselves a little?</h4>
<h4 id="where-are-you-from">Where are you from?</h4>
<p><strong>Loan:</strong> I was born and raised in Nam Dinh, Vietnam. I moved to the US 4 years ago for college. </p>
<p><strong>Manali:</strong>  I am originally from India but currently residing in Connecticut.</p>
<h4 id="where-do-you-go-to-school-and-what-are-you-studying">Where do you go to school and what are you studying?</h4>
<p><strong>Loan:</strong> I go to Minerva University, and I double major in Computer Science and Business. </p>
<p><strong>Manali:</strong> I am doing my Masters in Business Analytics and Project Management from University of Connecticut.</p>
<h4 id="what-are-your-plans-post-graduation">What are your plans post-graduation?</h4>
<p><strong>Loan:</strong> I hope to continue working as a Data Analyst in the financial services industry.</p>
<p><strong>Manali:</strong> Looking for full-time positions in the Data Analytics/ Data Science domain.</p>
<h4 id="what-made-you-choose-to-come-to-lendtable">What made you choose to come to Lendtable?</h4>
<p><strong>Loan:</strong> I had some prior internships in the financial services industry, but none of them were in financial planning, or 401(k) specifically. Maybe because I am still young, I haven&#39;t paid attention to financial planning even though I should. Thus, Lendtable and the space Lendtable is in excites me. Also, I enjoyed the conversations I had with people at Lendtable during my interviews.</p>
<p><strong>Manali:</strong> Being an international student the 401k and ESPP plans seem confusing/daunting. The internship at Lendtable provides me a perfect opportunity to understand the workings of these plans. I also wanted to gain a deeper exposure in the fintech domain and utilize my learnings from my Masters to hone my Analytical Skills. The Mission Statement and the amazing Team at Lendtable is definitely an important factor as well.</p>
<h4 id="why-is-lendtables-mission-important-to-you">Why is Lendtable&#39;s mission important to you?</h4>
<p><strong>Loan:</strong> I find it sad and unfair when people without a good financial foundation cannot build their financial freedom early while they are the ones who need it the most. It makes Lendtable&#39;s mission noble to me as we are making an impactful change in our users&#39; future.</p>
<p><strong>Manali:</strong> Given the current economic conditions, everyone could use a higher take-home paycheck, be it supporting a child&#39;s education, or making a big financial decision, Lendtable helps people achieve these. I feel this is my way of giving back to society and that&#39;s what motivates me to perform better.</p>
<h4 id="what-are-you-passionate-about-outside-of-work">What are you passionate about outside of work?</h4>
<p><strong>Loan:</strong> Desserts, yoga, karaokeing</p>
<p><strong>Manali:</strong> I am passionate about traveling, reading and swimming.</p>
<h4 id="where-do-you-look-for-financial-tips-and-advice">Where do you look for financial tips and advice?</h4>
<p><strong>Loan:</strong> NerdWallet, Robinhood Snacks Newsletter, my boyfriend :)</p>
<p><strong>Manali:</strong> My Dad</p>
<h4 id="rapid-fire-time">Rapid fire time!</h4>
<h4 id="favorite-season">Favorite season?</h4>
<p><strong>Loan:</strong> Fall </p>
<p><strong>Manali:</strong> Fall</p>
<h4 id="pet-peeve">Pet peeve?</h4>
<p><strong>Loan:</strong> People sitting in my bed with their outside clothes.</p>
<p><strong>Manali:</strong> When people assume things without getting any clarification.</p>
<h4 id="favorite-cuisine">Favorite cuisine?</h4>
<p><strong>Loan:</strong> Korean and Filipino</p>
<p><strong>Manali:</strong> Thai</p>
<h4 id="favorite-city">Favorite city?</h4>
<p><strong>Loan:</strong> Bangkok, Thailand</p>
<p><strong>Manali:</strong> San Francisco</p>
<h4 id="favorite-drink">Favorite drink?</h4>
<p><strong>Loan:</strong> Coconut Water</p>
<p><strong>Manali:</strong> Matcha Strawberry Latte with Boba</p>
<h4 id="nickname">Nickname?</h4>
<p><strong>Loan:</strong> Loanie</p>
<p><strong>Manali:</strong> Mancy/ Mags</p>


Our new data analyst interns are ready to own complex projects and dive deeper into technical domains.

New Hire Spotlight: Loan Nguyen & Manali Ghosh, Data Analyst Interns

<h4 id="hi-faith-were-so-excited-to-have-you-here-why-dont-you-introduce-yourself-a-little">Hi Faith, we&#39;re so excited to have you here! Why don&#39;t you introduce yourself a little?</h4>
<p>Sure! I&#39;m a Full Stack Engineer and I&#39;ve lived in San Francisco for over 4 years, but I grew up in New Zealand.</p>
<h4 id="where-are-you-from">Where are you from?</h4>
<p>San Francisco is considered home.</p>
<h4 id="before-coming-to-lendtable-what-were-you-doing">Before coming to Lendtable, what were you doing?</h4>
<p>I was previously working as a Software Engineer at a company called Nextbite (formerly Ordermark).</p>
<h4 id="what-made-you-choose-to-come-to-lendtable">What made you choose to come to Lendtable?</h4>
<p>Definitely the mission, the solid business model, and the team. </p>
<h4 id="why-is-lendtables-mission-important-to-you">Why is Lendtable&#39;s mission important to you?</h4>
<p>Anyone should be able to exercise their given opportunity to save and invest for retirement. Taking care of expenses now and saving for the future aren&#39;t mutually exclusive and they shouldn&#39;t be. I think Lendtable&#39;s approach of maximizing one&#39;s employer benefits is an amazing way for those who struggle to contribute to their retirement fund due to the lack of finances after allocating current expenses. This genuinely helps people build savings for retirement which in turn provides a potentially more comfortable future for them.</p>
<h4 id="what-are-you-passionate-about-outside-of-work">What are you passionate about outside of work?</h4>
<p>Health and fitness, cleanliness, personal growth.</p>
<h4 id="where-do-you-look-for-financial-tips-and-advice">Where do you look for financial tips and advice?</h4>
<p>No where specific at the moment but the Google searches usually lead me to Investopedia, NerdWallet, WalletHub, and various YouTube videos.</p>
<h4 id="what-do-you-consider-your-greatest-financial-accomplishment">What do you consider your greatest financial accomplishment?</h4>
<p>Becoming financially independent from my parents for sure.</p>
<h4 id="whats-one-piece-of-advice-youd-give-your-younger-self">What’s one piece of advice you’d give your younger self?</h4>
<p>Forget perfection and take risks. Fail fast, fail often, fail forward.</p>
<h4 id="rapid-fire-time">Rapid fire time!</h4>
<h4 id="favorite-season">Favorite season?</h4>
<p>Summer!</p>
<h4 id="pet-peeve">Pet peeve?</h4>
<p>People coughing without covering their mouths or into their hands</p>
<h4 id="favorite-cuisine">Favorite cuisine?</h4>
<p>Japanese</p>
<h4 id="favorite-city">Favorite city?</h4>
<p>SF (go Giants!)</p>
<h4 id="favorite-drink">Favorite drink?</h4>
<p>Water!</p>
<h4 id="nickname">Nickname?</h4>
<p>Effy? Eff?</p>
<h4 id="any-last-remarks">Any last remarks?</h4>
<p>I&#39;m super excited to be here and be a part of Lendtable&#39;s growing success!</p>


With an eager determination to keep learning and growing, our newest Full Stack Engineer is a great addition to our team!

New Hire Spotlight: Faith Tan, Full Stack Engineer

<p>Today is <a href="https://nationaltoday.com/national-401k-day/">National 401(k) Day</a> and we thought this was a great time to remind everyone of our mission and how we are helping thousands of people save for retirement.</p>
<p>Here at Lendtable, we are driven by one unifying goal; we want to provide transparent, simple, and helpful services that enable people to get closer to their retirement goals.</p>
<p>A 401(k) account is one of the most effective ways to save for retirement and many employers offer a matching program.</p>
<p>When your employer matches your 401(k) contributions, you are literally getting free money added to your retirement savings <a href="https://www.google.com/search?q=how+many+americans+don%27t+use+their+401k+match&amp;rlz=1C5CHFA_enUS915US916&amp;biw=1164&amp;bih=858&amp;sxsrf=AOaemvJEfu4X6BfWLSzk8L4602ecYgGPdg%3A1634754307431&amp;ei=A19wYcLnGcf4-gSCgJmQDw&amp;ved=0ahUKEwiC9aeuztnzAhVHvJ4KHQJABvI4ChDh1QMIDg&amp;uact=5&amp;oq=how+many+americans+don%27t+use+their+401k+match&amp;gs_lcp=Cgdnd3Mtd2l6EAM6BwgjELADECc6BwgAEEcQsAM6BAgjECc6BQgAEIAEOgUIABCGA0oECEEYAFDwUljFcGCVcmgCcAJ4AIAB1gKIAesckgEHOS40LjcuMpgBAKABAcgBCcABAQ&amp;sclient=gws-wiz">but 1 in 5 people did not receive the full 401(k) employer match available to them</a>.  </p>
<p>We believe the reason for this was not that they were &quot;misinformed&quot; or &quot;did not care enough.” It was because they were getting squeezed. They were choosing to pay their student loans. They were choosing to feed their families. They were choosing to pay off their mortgage. They were making the right choices for their today at the expense of their tomorrow.</p>
<p>Most advice tells you to contribute enough to get the full employer match as long as you do not have high interest debt and already have 3-6 months of rainy day savings.</p>
<p>Debt is the biggest factor standing in the way of you and the retirement of your dreams. If you have any debt (not including a mortgage), it’s not going to disappear until you make it disappear. 
So, if you’ve got some debt or haven’t built up that emergency fund, most advisors recommend holding off on all investing—including your company’s 401(k).</p>
<p>This is where Lendtable comes in.  You can get reimbursed for your 401(k) contributions and keep 80% of the employer match. This means you maintain your income to pay down your debt and get your employer matching contributions at the same time. </p>
<p>We have helped more than 3000 people get more than $7 million in employer matching contributions and get on the path to a secure retirement and we are just getting started</p>


It's national 401(k) day

<p>Lendtable wants to help as many people as possible build long-term wealth and we need your help getting the message out.</p>
<p>For every person you refer that signs up and is approved before December 15, 2022 you will get an entry in a drawing to win $2500.*  The more you refer, the more entries you get.</p>
<p>Additionally, you and the person you refer always get the standard referral reward of $250 towards your balance due. </p>
<p>Get started now by sending your unique referral code to all of your co-workers.</p>
<p>You can find your unique referral link and see your referral credits by visiting the Referrals section of accounts settings on <a href="https://www.lendtable.com/dashboard">your dashboard</a>.</p>
<hr>
<p>*The Lendtable Referral Raffle consists of (1) “Entry Period,” starting at 12:01 a.m. Pacific Time (PT) on September 1, 2022 and running through 11:59 p.m. PT on December 15, 2022. During each &quot;Entry Period&quot;, there are two ways to enter: (1) Each complete and qualifying “Referral” made to a non Lendtable customer, up to a maximum of 25 per Entry Period OR (2) A free mail-in entry, up to a maximum of 1 per Entry Period. One winner will be randomly selected per Entry Period to receive a $2,500 cash prize. Limit one win per person for the entirety of the Raffle. Promotion is ongoing and valid as of today’s date. This offer may be modified or withdrawn at any time and without notice. Winner is responsible for any federal, state, or local taxes due on the cash prize and we will report it as income to the tax authorities, if required by applicable law. Winner should consult a tax advisor. For a full set of rules, conditions, and terms, see below</p>
<p>LENDTABLE REFERRAL RAFFLE
‍NO PURCHASE NECESSARY TO ENTER OR WIN. A PURCHASE WILL NOT INCREASE YOUR CHANCES OF WINNING. ENTRANTS ARE NOT REQUIRED TO BE AN ASPIRATION CUSTOMER TO BE ELIGIBLE. The following Raffle Official Rules (“Official Rules”) apply to your participation in the Lendtable Referral Raffle (“Raffle”) offered by Lendtable, Inc. (“Sponsor”).
‍</p>
<ol>
<li><p>Eligibility. Eligibility is limited to legal residents of the fifty (50) United States and the District of Columbia who are of eligible age to participate in their jurisdiction and eighteen (18) years of age or older. Residents of U.S. Territories are not eligible. Void where prohibited. Employees (and their immediate families: parent, child, spouse or sibling and their respective spouses, regardless of where they reside, and those living in their same households, whether or not related) of employees of Sponsor and its parents, affiliates, subsidiaries and advertising and promotion agencies are not eligible to enter or win. By participating, entrants agree to be bound by these Official Rules and the decisions of Sponsor, which are binding and final on matters relating to this Raffle. Raffle is subject to all applicable federal, state and local laws.</p>
</li>
<li><p>To Enter. Promotion consists of one (1) “Entry Periods,” starting at 12:01 a.m. Pacific Time (PT) on September 1, 2022, and running through 11:59 p.m. PT on December 15, 2022. Promotion will end at 11:59 p.m. Pacific Time (PT) on December 15, 2022. During the &quot;Entry Period&quot;, there are two ways to enter: 1) Each complete and qualifying “Referral” made to a non Lendtable customer, up to a maximum of twenty-five (25) entries per Entry Period OR 2) A free mail-in entry, up to a maximum of 1 per Entry Period – Free Mail-In Method of Entry: To enter without completing a Referral method of entry, follow these instructions. On a 3&quot;x5&quot; card, hand print your full name, complete home address including zip code, home telephone number with area code, e-mail address (if available), and mail the card in an envelope with sufficient first class postage to: Lendtable Referral Raffle, Attn: Marketing, 1475 Folsom St., Ste. 200, San Francisco, CA 94103. Limit one (1) mail-in entry per entrant. No photocopies, facsimiles or mechanical reproductions of cards permitted. No metered mail will be accepted. Mail-in entries must be postmarked by December 10, 2022 and received by December 20, 2022. Limit twenty-five (25) entries per customer per Referral entry and limit one (1) entry per person per Mail-In entry for the duration of the Entry Period. Entries generated by script, macro or other automated or mechanical means, fraud or other illegal activities, or means which subvert the entry process will be void. All entries become the property of Sponsor and will not be acknowledged or returned. </p>
</li>
<li><p>Qualifying Referral. For a Referral Entry to be qualifying and complete, the referrer must send a non  Lendtable customer their referral link, and each non-customer must sign-up at <a href="http://www.lendtable.com">www.lendtable.com</a> using that referral link, execute a Lendtable contract, qualify to receive a first Lendtable payout, have paid the platform fee, and otherwise be in good standing as determined by Lendtable. </p>
</li>
<li><p>Random Drawing. One (1) winner will be chosen from all eligible entries received during the Entry period of the Promotion (12:00 a.m. PT on September 1, 2022 through 11:59 p.m. PT on December 15, 2022, Limit one win per person for the entirety of the Promotion. Odds of winning depend on the number of eligible entries received.</p>
</li>
<li><p>Winner Notification. The potential winners will be notified via email message by the tenth (10th) business day following the random drawing and may be required to execute and return an affidavit of eligibility, a liability release and, where lawful, a publicity release within seven (7) calendar days of date of issuance. If such documents are not returned within the specified time period, a prize or prize notification is returned as undeliverable, Sponsor is unable to contact a potential winner or a potential winner is not in compliance with these Official Rules, prize will be forfeited and, at Sponsor’s sole discretion, an alternate winner selected. If a potential winner is an eligible minor in his/her jurisdiction of residence, prize may be awarded in the name of his/her parent or legal guardian who will be responsible for fulfilling all requirements imposed on the winner set forth herein. The account owner’s Lendtable Account must be open and in good standing, in the sole determination of Lendtable. You do not need to have an account with Lendtable to win. There is no minimum balance requirement to win.</p>
</li>
<li><p>Prize. $2,500 (“The Prize”) will be awarded to Random Drawing Winner. The Prize will be awarded in the form of a $2,500 cash prize. In the case of an Main-In entry winner, the prize winner will be issued a check. The Prize is awarded “as is” with no warranty or guarantee, either express or implied by Sponsor. Winner is responsible for all applicable federal, state and local taxes, if any, as well as any other costs and expenses associated with prize acceptance and use not specified herein as being provided. Lendtable does not offer or provide tax, financial, investment, or legal advice. All prize details are at Sponsor’s sole discretion.</p>
</li>
<li><p>General Conditions. Released Parties (as defined below) are not responsible for lost, late, incomplete, inaccurate, stolen, misdirected, undelivered, garbled, illegible or postage-due mail, entries or email; or for lost, interrupted or unavailable network, server, Internet Service Provider (“ISP”), website, or other connections, availability or accessibility or miscommunications or failed computer, satellite, telephone or cable transmissions, lines, or technical failure or jumbled, scrambled, delayed, or misdirected transmissions or computer hardware or software malfunctions, failures or difficulties, or other errors or difficulties of any kind whether human, mechanical, electronic, computer, network, typographical, printing or otherwise relating to or in connection with the Raffle, including, without limitation, errors or difficulties which may occur in connection with the administration of the Raffle, the processing of entries, the announcement of the prizes or in any Raffle-related materials. Released Parties are also not responsible for any incorrect or inaccurate information, whether caused by other entrants or Sponsor’s website users, tampering, hacking, or by any equipment or programming associated with or utilized in the Raffle. Released Parties are not responsible for injury or damage to participants&#39; or to any other person&#39;s computer related to or resulting from participating in this Raffle or downloading materials from or use of the Sponsor’s website. Persons who tamper with or abuse any aspect of the Raffle or Sponsor website or who are in violation of these Official Rules, as solely determined by Sponsor, will be disqualified and all associated entries will be void. Should any portion of the Raffle be, in Sponsor’s sole opinion, compromised by virus, worms, bugs, non-authorized human intervention or other causes which, in the sole opinion of the Sponsor, corrupt or impair the administration, security, fairness or proper play, or submission of entries, Sponsor reserves the right at its sole discretion to suspend, modify or terminate the Raffle and, if terminated, at its discretion, select the potential winners from all eligible, non-suspect entries received prior to action taken or as otherwise deemed fair and appropriate by Sponsor. Entrants, by participating, agree that Sponsor and its respective parents, affiliates, subsidiaries and advertising and promotion agencies and all of their respective officers, directors, employees, representatives and agents (collectively, “Released Parties”) will have no liability whatsoever for, and shall be held harmless by entrants against, any liability, for any injuries, losses or damages of any kind, including death, to persons, or property resulting in whole or in part, directly or indirectly, from acceptance, possession, misuse or use of any prize or participation in this Raffle. Each winner, by acceptance of prize, except where legally prohibited, grants permission for Sponsor and its designees to use his/her name, address (city and state), photograph, voice and other likeness and prize information for advertising, trade and promotional purposes without further compensation, in all media (including digital media) now known or hereafter discovered, worldwide in perpetuity, without notice or review or approval. In the event of a dispute regarding entries received from multiple entrants having the same e-mail account, the authorized subscriber of the e-mail account at the time of entry will be deemed to be the entrant and must comply with these Official Rules. Authorized account subscriber is the natural person who is assigned the e-mail address by the ISP, on-line service provider, or other organization responsible for assigning e-mail addresses. CAUTION: ANY ATTEMPT TO DAMAGE ANY SPONSOR WEBSITE OR WEB FORM OR TO UNDERMINE THE LEGITIMATE OPERATION OF THE Raffle IS A VIOLATION OF CRIMINAL AND CIVIL LAWS AND SHOULD SUCH AN ATTEMPT BE MADE, SPONSOR WILL DISQUALIFY ANY SUCH INDIVIDUAL AND RESERVES THE RIGHT TO SEEK DAMAGES (INCLUDING ATTORNEYS’ FEES) AND OTHER REMEDIES FROM ANY SUCH INDIVIDUAL TO THE FULLEST EXTENT PERMITTED BY LAW.</p>
</li>
<li><p>Privacy and Publicity. You agree that any information submitted as part of your Raffle entry is true, complete, and accurate. YOU HEREBY GRANT SPONSOR, ITS PARENTS, AFFILIATES, SUBSIDIARIES AND ADVERTISING AND PROMOTION AGENCIES WITH AN IRREVOCABLE, WORLDWIDE, PERPETUAL LICENSE TO USE YOUR ENTRY IN CONNECTION WITH IMPROVING, MARKETING, AND/OR SELLING LENDTABLE’S (OR ITS PARENTS’, AFFILIATES’ OR SUBSIDIARIES’) PRODUCTS OR SERVICES. ACCEPTANCE OF PRIZE CONSTITUTES PERMISSION TO USE, EDIT, MODIFY, DISTRIBUTE, CREATE DERIVATE WORKS FROM, REPRODUCE, DISPLAY OR PUBLISH THE WINNING ENTRY AND ALL ELEMENTS OF SUCH ENTRY, INCLUDING, WITHOUT LIMITATION, THE NAME, BIOGRAPHICAL AND EMPLOYMENT INFORMATION OF WINNER, IN PERPETUITY WITHOUT COMPENSATION (UNLESS PROHIBITED BY LAW), PERMISSION OR NOTIFICATION TO ENTRANT OR ANY THIRD PARTY, FOR SPONSOR’S PROMOTIONAL, MARKETING OR ADVERTISING PURPOSES. WHERE REQUIRED BY APPLICABLE LAW, WINNERS AGREE TO EXECUTE A SPECIFIC CONSENT TO ANY SUCH USE DESCRIBED ABOVE IF ASKED TO DO SO BY SPONSOR. If a winning entrant prefers not to have his or her name used in this manner, s/he must notify Sponsor upon receipt of notice that s/he has won. By participating, entrants also agree not to release any publicity or other materials on their own or through a third party regarding their participation in this Raffle, including their entry, without the prior consent of Sponsor, which it may withhold in its sole and absolute discretion. Except as otherwise set forth herein, use of the information submitted in the Survey and/or Raffle is governed by Sponsor’s privacy policy, which can be found at [[[[Lendtable Privacy policy link]]]</p>
</li>
<li><p>Arbitration.  Except where prohibited by law, as a condition of participating in this Raffle, entrant agrees that (1) any and all disputes and causes of action arising out of or connected with this Raffle, or any prizes awarded, shall be resolved individually, without resort to any form of class action, and exclusively by final and binding arbitration under the rules of the American Arbitration Association and held at the AAA regional office nearest the participant; (2) the Federal Arbitration Act shall govern the interpretation, enforcement and all proceedings at such arbitration; and (3) judgment upon such arbitration award may be entered in any court having jurisdiction. Under no circumstances will entrant be permitted to obtain awards for, and entrant hereby waives all rights to claim, punitive, incidental or consequential damages, or any other damages, including attorneys’ fees, other than entrant’s actual, reasonable and documented out-of-pocket expenses (i.e., costs associated with participating in this Raffle), and entrant further waives all rights to have damages multiplied or increased.</p>
</li>
<li><p>Governing Law. All matters pertaining to these Official Rules or any prize awarded and disputes arising hereunder shall be governed by and interpreted in accordance with the laws of the State of California, without regard to any conflicts or choice of law rules or provisions (whether of California or any other jurisdiction).</p>
</li>
<li><p>Sponsor; No Affiliation. The Sponsor is: Lendtable, Inc., 1475 Folsom St., Ste. 200, San Francisco, CA 94103. The Raffle is in no way sponsored, endorsed or administered by, or associated with, any organizations other than Lendtable, Inc. and its parents, affiliates, subsidiaries and advertising and promotion agencies.</p>
</li>
</ol>


Lendtable Referral Contest - August 2022

<h4 id="hi-luis-were-so-excited-to-have-you-here-why-dont-you-introduce-yourself-a-little">Hi Luis, we&#39;re so excited to have you here! Why don&#39;t you introduce yourself a little?</h4>
<h4 id="where-are-you-from">Where are you from?</h4>
<p>I&#39;m originally from El Salvador, but moved to Richmond in 2006!</p>
<h4 id="before-coming-to-lendtable-what-were-you-doing">Before coming to Lendtable, what were you doing?</h4>
<p>I was working with youth at a nonprofit in areas such as career development, running photography classes and exploring post-secondary opportunities. </p>
<h4 id="what-made-you-choose-to-come-to-lendtable">What made you choose to come to Lendtable?</h4>
<p>Some time ago, I started thinking about retirement and realized that I had no clue as to what I was supposed to do. That&#39;s when I realized I had been missing out on my retirement match and had $0 there. From then on, I took it upon myself to learn about retirement and started contributing to my retirement account little by little. As soon as I saw the work that Lendtable and the team were doing, I was blown away! From that moment, I knew that I wanted to be part of this. </p>
<h4 id="why-is-lendtables-mission-important-to-you">Why is Lendtable&#39;s mission important to you?</h4>
<p>Growing up, I didn&#39;t learn about financial literacy or retirement. It always seemed inaccessible and so far away from my reach. The work that we&#39;re doing here is so impactful and transformative, it allows people to save money for their future in an easy and accessible way. Building this wealth is so important because it offers the opportunity to create a foundation, one in which people are able to retire and enjoy their lives.</p>
<h4 id="what-are-you-passionate-about-outside-of-work">What are you passionate about outside of work?</h4>
<p>I love photography! I spend a lot of time outdoors either taking pictures or riding my bike. I&#39;m a huge Star Wars fan! Currently trying to catch up with all of the shows! </p>
<h4 id="where-do-you-look-for-financial-tips-and-advice">Where do you look for financial tips and advice?</h4>
<p>NerdWallet &amp; Mint! Lea Landaverde &amp; Delyanne the money coach! </p>
<h4 id="what-do-you-consider-your-greatest-financial-accomplishment">What do you consider your greatest financial accomplishment?</h4>
<p>Buying my mom her dream home! I worked really hard to make this dream come true and is my biggest accomplishment so far!</p>
<h4 id="whats-one-piece-of-advice-youd-give-your-younger-self">What’s one piece of advice you’d give your younger self?</h4>
<p>Create a budget, create a budget!! Watch out for credit card debt and APRs! </p>
<h4 id="rapid-fire-time">Rapid fire time!</h4>
<h4 id="favorite-season">Favorite season?</h4>
<p>Fall!</p>
<h4 id="pet-peeve">Pet peeve?</h4>
<p>Slow wifi!!</p>
<h4 id="favorite-cuisine">Favorite cuisine?</h4>
<p>I have to say Thai food! </p>
<h4 id="favorite-city">Favorite city?</h4>
<p>Richmond, CA!</p>
<h4 id="favorite-drink">Favorite drink?</h4>
<p>Horchata!</p>
<h4 id="nickname">Nickname?</h4>
<p>Cubas! </p>
<h4 id="any-last-remarks">Any last remarks?</h4>
<p>Really excited to be part of this amazing team and make a difference in the lives of other people!</p>


With a passion for financial literacy and an outgoing personality, our new Customer Onboarding Specialist is excited to join the Lendtable Team!

New Hire Spotlight: Luis Cubas, Customer Onboarding Specialist

<h3 id="what-is-an-espp">What is an ESPP?</h3>
<p>An Employee Stock Purchase Plan, or ESPP for short, is an employer benefit that allows employees of some publicly traded companies to purchase company shares at a discounted rate. </p>
<p>Employees can then sell those discounted shares at full market value (the value that the shares are at “market” price, which are often more expensive) securing a 5-15% profit. </p>
<p>Why is it important to contribute to my company&#39;s ESPP? </p>
<p>At Lendtable we want to help make participating in ESPPs accessible to all, so we’ll fund your contributions until you’re able to sell your shares so that you don’t have to feel the month-to-month cost of participation. More on that later!</p>
<h3 id="benefits-of-participating-in-your-companys-espp">Benefits of participating in your company’s ESPP</h3>
<p>Discounted shares</p>
<p>The most important aspect of an ESPP benefit is the discount or match. This functions as guaranteed profit if you sell your shares at full market value immediately once you receive them.</p>
<p>Some plans even allow employees to choose the lowest share-price during their participation - this is called a lookback clause. This means you not only profit from the discount, but if your stock price goes up you also profit from the increase in the price!</p>
<p>Immediate Financial Profit</p>
<p>The most important ESPP benefit is financial gain. Purchasing shares at a discount or match creates immediate profit for any enrollee. </p>
<p>Long story short - participating in your company ESPP is an easy way to make a quick and reliable return on investment and improve your financial health.</p>
<p>Ownership in your company</p>
<p>Enrolling in your company ESPP allows you to share in the benefit of good company performance. If you believe in the work you and your coworkers are doing, this is a great way to bet on your company&#39;s success.</p>
<p>Saving for near-term goals</p>
<p>ESPPs can also help you fund near-term goals. Your rate of return from selling vested ESPP shares as soon as you receive them should be higher than today’s highest-yielding savings accounts.</p>
<p>Saving for retirement</p>
<p>If you earn money from selling your shares, that money can be applied to a Roth IRA or 401k retirement plan and put toward your retirement savings.</p>
<p>I can’t max out my ESPP, how can Lendtable help? My company ESPP is really expensive. Is there another way for me to participate?</p>
<p>Similar to our 401(k)+ service, we replace your ESPP payroll withholdings while you participate in your plan, allowing you to max out your allowed contribution without feeling the month-to-month impact. </p>
<p>Based on our profit-share model, we only earn when you earn. Aside from our $10/mo subscription fee, our ESPP rate is a flat rate of 35% of the profit we help you make. That means that if your shares are offered at a 15% discount, you keep 65% of that 15% profit without using your own funds to get it. If for any reason, you do not receive a profit on your ESPP, we remove our fee entirely. </p>
<p>How can I leverage my ESPP to the fullest? </p>
<p>If your employer is publicly traded and offers a discount or match when you purchase shares, Lendtable will replace your payroll contributions, allowing you to earn a profit without losing your month-to-month cash. </p>
<p>How do I take advantage of my ESPP?</p>
<ol>
<li><p>Sign up for Lendtable with your most recent paystub and ESPP policy (if we don’t already have it). Our team will review and approve or deny within 24 hours.</p>
</li>
<li><p>Once approved, review your offer, link your bank information, and sign your contract.</p>
</li>
<li><p>Enroll in your Employer’s ESPP for the maximum contribution amount during your next enrollment period.</p>
</li>
<li><p>Start receiving payouts and contributing to your ESPP:</p>
</li>
<li><p>Starting when your wages are withheld by your employer, Lendtable will deposit your payouts to your linked checking account on the 1st and 15th (or the following business day) of every month.</p>
</li>
<li><p>You’ll pay a subscription fee of $10/mo to use our service. </p>
</li>
<li><p>Each month, we will verify contributions made to your ESPP by requesting that you upload your most recent paystub showing your deductions once a month. You’ll get your first two payouts automatically to allow time for your paycheck to show your deductions.</p>
</li>
</ol>
<p>When your shares are transferred to you by your employer, you sell your shares and pay your Lendtable Balance, securing your profit!</p>
<p>Have more questions? Join us for our upcoming webinars!</p>


Employee Stock Purchase Plan 101: Everything you need to know about an ESPP in five minutes.

Should I participate in my Employee Stock Purchase Plan (ESPP)?

<h4 id="hi-yuri-were-so-excited-to-have-you-here-why-dont-you-introduce-yourself-a-little">Hi Yuri, we&#39;re so excited to have you here! Why don&#39;t you introduce yourself a little?</h4>
<p>Product manager for ~8 years now! I&#39;ve worked at startups, mid-caps, and mega caps. Biggest joy I have is building teams and products, especially products that empower people to accomplish more in life. I&#39;m a huge proponent of technology enabling and unlocking people&#39;s abilities. </p>
<h4 id="where-are-you-from">Where are you from?</h4>
<p>From Pasadena, CA! </p>
<h4 id="before-coming-to-lendtable-what-were-you-doing">Before coming to Lendtable, what were you doing?</h4>
<p>I was leading multiple teams at NerdWallet, helping improve user data discovery, computation, and storage for all teams who consume it. </p>
<h4 id="what-made-you-choose-to-come-to-lendtable">What made you choose to come to Lendtable?</h4>
<p>Founders and team are very passionate about the problem! Getting more people to build their wealth through 401ks is a fantastic way to maximize chances of a comfortable retirement.</p>
<h4 id="why-is-lendtables-mission-important-to-you">Why is Lendtable&#39;s mission important to you?</h4>
<p>A lot of finance is esoteric and difficult to comprehend. In addition, not having access to capital prohibits many people from participating in programs to build more wealth. I sincerely believe the Lendtable team is up to the task to help break down these obstacles.</p>
<h4 id="what-are-you-passionate-about-outside-of-work">What are you passionate about outside of work?</h4>
<p>Investing, hiking, and exploring new coffee drinks! Currently, enjoying the iced &#39;Frosty Gandhi&#39; dirty chai at Sexton. </p>
<h4 id="where-do-you-look-for-financial-tips-and-advice">Where do you look for financial tips and advice?</h4>
<p>NerdWallet has an amazing library of great content. I also rely on my friends to get some tips. </p>
<h4 id="what-do-you-consider-your-greatest-financial-accomplishment">What do you consider your greatest financial accomplishment?</h4>
<p>Owning property in SF! My wife and I were incredibly lucky to find a condo before rates jumped. Phew! </p>
<h4 id="whats-one-piece-of-advice-youd-give-your-younger-self">What’s one piece of advice you’d give your younger self?</h4>
<p>Don&#39;t be afraid to take big risks in life. There&#39;s plenty of time later to take it easy. </p>
<h4 id="rapid-fire-time">Rapid fire time!</h4>
<h4 id="favorite-season">Favorite season?</h4>
<p>Fall! Duh! Birthday season! And generally a beautiful season. </p>
<h4 id="pet-peeve">Pet peeve?</h4>
<p>Being late. I respect people&#39;s time, and would like the same respect for my time. </p>
<h4 id="favorite-cuisine">Favorite cuisine?</h4>
<p>Peruvian, but I&#39;m biased. I&#39;m half Peruvian.</p>
<h4 id="favorite-city">Favorite city?</h4>
<p>San Francisco. If you&#39;d ask me three years ago, SF was nowhere near my top 5 or 10. I&#39;ve learned since moving to SF it&#39;s all about finding the right neighborhoods!</p>
<h4 id="favorite-drink">Favorite drink?</h4>
<p>Pisco sour! Again, biased because of my Peruvian half. Generally very into drinks with egg white.</p>
<h4 id="nickname">Nickname?</h4>
<p>Swaggy. It&#39;s my basketball nickname. Many thanks to AJ who gave me this nickname during my time at my first startup.</p>
<h4 id="any-last-remarks">Any last remarks?</h4>
<p>Excited to be here. I invite anyone who&#39;s thinking about working here to hit me up at LinkedIn. Happy to give more insight into our company and products.</p>


Gritty & Adaptable; our new Lead Product Manager is ready to help us build long-term wealth for everyone!

New Hire Spotlight: Yuri Genyk, Lead Product Manager

<h4 id="hi-karissa-were-so-excited-to-have-you-here-why-dont-you-introduce-yourself-a-little">Hi Karissa, we&#39;re so excited to have you here! Why don&#39;t you introduce yourself a little?</h4>
<h4 id="where-are-you-from">Where are you from?</h4>
<p>I was born and raised in San Jose and currently live just outside Memphis. </p>
<h4 id="before-coming-to-lendtable-what-were-you-doing">Before coming to Lendtable, what were you doing?</h4>
<p>Previously, I was at Rent the Runway within their Operations department focused on repayments, billing processes, asset recovery, and risk management. Prior to that, I was in operations management for local businesses in Mendocino, CA and Denver, CO with a short career break to be a full time mother.</p>
<h4 id="what-made-you-choose-to-come-to-lendtable">What made you choose to come to Lendtable?</h4>
<p>At its core, Lendtable&#39;s product makes so much sense and is so simple it&#39;s almost too good to be true! I also really enjoyed meeting the team and getting a better feel for the culture. I feel truly valued as an employee here.  </p>
<h4 id="why-is-lendtables-mission-important-to-you">Why is Lendtable&#39;s mission important to you?</h4>
<p>Growing up, my mom worked 3 jobs as a single mom to make ends meet. I was never taught financial literacy when we were just trying to scrape by. I love that Lendtable values equity and accessibility when it comes to personal finance. </p>
<h4 id="what-are-you-passionate-about-outside-of-work">What are you passionate about outside of work?</h4>
<p>I&#39;d have to say my 5 wonderful kids but also I&#39;m honestly really passionate about reading and slam poetry. I&#39;m even in a book club!</p>
<h4 id="where-do-you-look-for-financial-tips-and-advice">Where do you look for financial tips and advice?</h4>
<p>I personally love financial advice from You Need A Budget (YNAB), NerdWallet, and sometimes Mint too!  </p>
<h4 id="what-do-you-consider-your-greatest-financial-accomplishment">What do you consider your greatest financial accomplishment?</h4>
<p>I&#39;d have to say purchasing my first home. I worked extremely hard to make it happen and rebuilt my credit from the ground up to do so. </p>
<h4 id="whats-one-piece-of-advice-youd-give-your-younger-self">What’s one piece of advice you’d give your younger self?</h4>
<p>Pay off your credit cards but don&#39;t close them. Don&#39;t lose sight of your love for reading. It&#39;s okay to be the weird kid. </p>
<h4 id="rapid-fire-time">Rapid fire time!</h4>
<h4 id="favorite-season">Favorite season?</h4>
<p>Summer in California, Fall in Memphis. </p>
<h4 id="pet-peeve">Pet peeve?</h4>
<p>The noise of silverware clinking together. </p>
<h4 id="favorite-cuisine">Favorite cuisine?</h4>
<p>Mexican food, hands down.</p>
<h4 id="favorite-city">Favorite city?</h4>
<p>Berkeley</p>
<h4 id="favorite-drink">Favorite drink?</h4>
<p>A large iced Aftershock rebel from Dutch Bros. Similar to a flavored redbull with cold foam on top. Yummmm :) </p>
<h4 id="nickname">Nickname?</h4>
<p>Kari, K-lee</p>
<h4 id="any-last-remarks">Any last remarks?</h4>
<p>I feel incredibly grateful to have the opportunity to make an impact in the FinTech space with a company that truly serves the best interest of the customer.</p>


Our new Operations Guru is excited and prepared to help us work towards our Mission!

New Hire Spotlight: Karissa Stuart, Operations Associate

<h4 id="hi-jeremy-were-so-excited-to-have-you-here-lets-get-to-know-you-a-little">Hi Jeremy, we&#39;re so excited to have you here! Let&#39;s get to know you a little.</h4>
<h4 id="where-are-you-from">Where are you from?</h4>
<p>I grew up in Costa Mesa CA (Orange County in Southern California) </p>
<h4 id="before-coming-to-lendtable-what-were-you-doing">Before coming to Lendtable, what were you doing?</h4>
<p>I spent the last few years leading a team of Product Managers at NerdWallet supporting their customer acquisition efforts. This meant working with teams focussed on growth across SEO, Performance Marketing, Brand Marketing and CRM/email along with a few other things. It was a great experience getting to go deep in all of these areas. Before NerdWallet I was at Capital One on their Enterprise Digital team where I focused on experimentation and personalization capabilities. Going back a bit farther I have been a Product Manager at Sephora.com and Macys.com which is where I got my start in A/B testing, personalization, and generally using digital analytics to improve customer experiences. I have been a Product Manager for a really long time now and am really excited to come sort of full circle at an early stage startup, which I haven&#39;t done since the very beginning of my career.</p>
<h4 id="what-made-you-choose-to-come-to-lendtable">What made you choose to come to Lendtable?</h4>
<p>The mission really resonated with me and the product just made so much sense. The opportunity to work in FinTech but in a way that didn&#39;t fundamentally feel predatory or exploitative was really exciting. The energy and enthusiasm I got from Mitch and Sheridan and the fun vibes I got from the rest of the team made my decision pretty easy. </p>
<h4 id="why-is-lendtables-mission-important-to-you">Why is Lendtable&#39;s mission important to you?</h4>
<p>I was never really taught personal finance beyond the basics of budgeting but that didn&#39;t prevent me from accumulating a pretty large amount of credit card debt in my 20s which continued to impact me well into my 30s. I spent so many years trying to get out of debt that I got a very late start on saving or thinking about retirement. I definitely understand the difficult decisions people can face when prioritizing what to do with their money. The idea that we can help people get the most out of their benefits and ensure none of that &quot;free money&quot; goes unused is something I really should have done.</p>
<h4 id="where-do-you-look-for-financial-tips-and-advice">Where do you look for financial tips and advice?</h4>
<p>I&#39;m a little biased but I really do think NerdWallet is a great source for information on personal finance and a few of their competitors do a pretty good job as well (Investopedia). I have been close to hiring a financial advisor of some kind many times but still haven&#39;t yet. </p>
<h4 id="what-do-you-consider-your-greatest-financial-accomplishment">What do you consider your greatest financial accomplishment?</h4>
<p>We purchased our home in 2007 and in hindsight, took a terrible loan.  Managing to keep our home after the market crash just a year after that coming out the other side was a really big deal.</p>
<h4 id="whats-one-piece-of-advice-youd-give-your-younger-self">What’s one piece of advice you’d give your younger self?</h4>
<p>That&#39;s a tough one. When it comes to money, I&#39;m not sure what I could say. The credit card debt I piled up supported a lot of fun times and I can&#39;t really say I regret it but I do wish I was just a little more thoughtful and careful about it. More generally, I would tell my younger self to worry less about what other people think and definitely take every opportunity to travel that comes your way.</p>
<h4 id="rapid-fire-time">Rapid fire time!</h4>
<h4 id="favorite-season">Favorite season?</h4>
<p>I&#39;m pretty pure Californian so seasons aren&#39;t really that big of a thing for me but I love beaches and the snow and watching things bloom in spring and change colors in the fall. I like them all.</p>
<h4 id="pet-peeve">Pet peeve?</h4>
<p>Having to choose favorite things? j/k. kinda. </p>
<h4 id="favorite-cuisine">Favorite cuisine?</h4>
<p>Italian for comfort, but I&#39;m a foodie and love trying new things.</p>
<h4 id="favorite-city">Favorite city?</h4>
<p>I hella love Oakland. As a tourist, Chicago has always treated me well and I love London too.</p>
<h4 id="favorite-drink">Favorite drink?</h4>
<p>Cappuccino every morning. Otherwise, don&#39;t make me choose a favorite beer, wine, or cocktail. I&#39;m always trying something new and they all have their perfect place and moment.</p>
<h4 id="nickname">Nickname?</h4>
<p>Technically I guess Jeremy is a nickname (full name is Jeremiah). I don&#39;t really have any others that are used regularly, or at least nothing I would want to share here. </p>
<h4 id="any-last-remarks">Any last remarks?</h4>
<p>I am really excited to be joining the team and getting back to a small start up and helping to build something that I think could be truly impactful.</p>


Lendtable's new Head of Growth is bringing some serious product management experience and an easy-going, fun demeanor.

New Hire Spotlight: Jeremy Yoches, Head of Growth

<p>Here at Lendtable, we are driven by one unifying goal; we want to provide transparent, simple, and helpful services that enable people to get closer to their retirement goals. </p>
<p>Our team&#39;s core goal is to be worthy of trust, and that stems from how we treat each other all the way to how we provide our service to our customers. </p>
<p>In order for us to achieve this, we have to listen to our customers and use your feedback to make our service even better. One specific area where we are excited to announce changes is with our pricing structure. Lendtable Customers, we have heard you loud and clear. We can make our pricing simpler. Starting today we are announcing our new pricing structure aimed at simplifying how Lendtable works and putting even money in your pocket.</p>
<h2 id="whats-changing">What’s changing?</h2>
<p>Previously, if you had not fully paid off your Lendtable balance each year, we would take an additional 10% from your match. This led to tons of confusion. </p>
<p>Questions like “so you&#39;re charging a different percent of match share for different years? Or “why is Lendtable getting more expensive the longer I use it” came up often. While we invest in customer success to make sure we can clarify these issues with you, it was obvious more than simple explanations were needed.</p>
<p><strong>Going forward we are removing our tiered pricing structure. We will now charge:</strong></p>
<ul>
<li>A flat fee of 20% of all the match money we help you earn. This does not vary based on the number of years your balance is outstanding and does not vary by your 401(k) match type.</li>
<li>A $10 monthly subscription so that we can continue running our service and make sure every individual in the United States has a real opportunity to retire.</li>
</ul>
<p>For our current customers, you will have the choice to roll over to our new pricing structure, but the choice is completely up to you. You can let us know at any time if you’d like to change. </p>
<h2 id="why-are-we-excited-about-this">Why are we excited about this?</h2>
<h3 id="its-easy-to-understand">It’s easy to understand</h3>
<p>This change will allow us to keep our messaging simple, straightforward, and transparent for our customers. For most of them, it also means even more money in their pocket in the long term than previously. If we are going to make retirement a possibility for everyone, we must continue to make it as easy as possible to receive your retirement benefits. Lendtable has always believed in easy-to-understand fee structures, not charging compound interest like credit cards and personal loans, and aligning incentives with our users. </p>
<h3 id="we-truly-only-win-when-you-win">We truly only win when you win</h3>
<p>Our new pricing makes it very clear: we only make money if our customers make money. If they earn no match money from their employer (say, they leave their company before their vesting completes), they owe us nothing but the money we initially gave them. </p>
<p><strong>That explicitly means Lendtable’s pricing is upside only</strong>. There is no interest tacked onto your principal. We participate only in the match money we help you earn. </p>
<p>As Lendtable grows and continues to unlock other employee benefits for our customers, our simple pricing structures will be core to what we build. We have an unwavering loyalty to our customers beyond just our 401(k) match product. That is who we are.</p>
<h2 id="the-lendtable-difference-how-are-we-different-than-a-personal-loan-or-credit-card">The Lendtable difference: How are we different than a personal loan or credit card?</h2>
<p>At Lendtable, we are excited about this one because it is a key differentiator of the awesome work we are doing for consumers.</p>
<p><img src="https://cdn.sanity.io/images/ge4nycbu/production/1e67d59b03bbd5acaa161f480d690fff44b13120-806x394.png" alt="Untitled"></p>
<h3 id="we-dont-charge-compound-interest">We don’t charge compound interest</h3>
<p>First, personal loans and credit cards are pure loans. Customers are typically expected to begin paying them back immediately, and compound interest is charged on the unpaid balances each year.</p>
<p>When it comes to money, compound interest can both be a power for good when investing, and something to use with caution when it comes to lending. If you do not pay off your personal loan or credit card in a timely manner, you could end up paying more in interest than the original principal balance itself. </p>
<h3 id="pay-us-back-when-you-leave-your-company">Pay us back when you leave your company</h3>
<p>Now imagine a Lendtable customer who currently cannot afford to get their 401(k) match and also cover their bills. </p>
<p>If they use a personal loan to cover the money that they would now be contributing toward their match, they may need to pay that money back over the course of a year — which would be the same as if they just contributed to their match without a loan. </p>
<p>They would also be in the red if they end up leaving before their match vests, meaning they would owe the compounding interest as additional money on top of the loan they took out. In this world, they would earn no match money and have taken out a costly loan. </p>
<h3 id="in-summary">In summary:</h3>
<p>With Lendtable, you do not have to pay us back in monthly installments aside from your platform fee. You get to keep your income the same even though some of it is now going towards your 401(K) match. You also do not get additional interest added to what you owe us each year your money is outstanding. </p>
<h2 id="why-lendtable-is-far-better-than-a-personal-loan">Why Lendtable is far better than a personal loan</h2>
<p>What does this really mean for you when we break down the numbers? Imagine a customer that has a $5,000 dollar-for-dollar 401(k) match and is considering using Lendtable or a personal loan to help them earn their match.</p>
<h3 id="what-you-earn-with-lendtable"><strong>What you earn with Lendtable:</strong></h3>
<p>If we help you earn $5,000 in 2022, we will take $1,000 of what we helped you earn. Let&#39;s say you stay with your employer for 5 years and pay us nothing back until you leave after your 5th year in 2026. You would still only owe us $1,000. </p>
<p><strong>You would keep $4,000.</strong> </p>
<h3 id="what-you-earn-with-a-personal-loan"><strong>What you earn with a personal loan:</strong></h3>
<p>With a personal loan at an interest rate of 15%, you would owe $4,045 if you did not pay off any of the original loan until 2026. </p>
<p><strong>At that point, you would keep only $955 of your $5,000 match</strong>. </p>
<p><img src="https://cdn.sanity.io/images/ge4nycbu/production/66a47b09e99e743f37e10b3ae979e5ad7129d44c-1684x558.png" alt="Untitled"></p>
<p>Simply put, we are very different than a personal loan. Loans are made for different purposes. Our goal is one thing only: to help Lendtable customers get as much match money as they can. We’ve also added a simple little chart above to help you see all the ways Lendtable works on our customer’s behalf. </p>
<h2 id="you-are-what-makes-lendtable">You are what makes Lendtable</h2>
<p>We’ve been working hard to make sure we could share this with you all as soon as possible. Providing you with the best experience imaginable is at the heart of what we do. Our customer support team is ready for any questions you may have, and are delighted to help you through them. </p>
<p>Do not hesitate to reach out and give us feedback. You all make Lendtable a great product, and your opinions will only make it even better. </p>
<p>Thank you again for choosing us to help you on your retirement journey. We will be working around the clock to make sure the journey is a smooth ride.</p>


The pricing at Lendtable is now easier to understand than ever. Here’s a breakdown.

Announcing Lendtable’s new pricing structure

<h4 id="hi-jordyn-were-so-excited-to-have-you-here-lets-get-to-know-you-a-little">Hi Jordyn! We&#39;re so excited to have you here, let&#39;s get to know you a little!</h4>
<p>Absolutely! I couldn&#39;t be happier to be here!</p>
<h4 id="where-are-you-from">Where are you from?</h4>
<p>I’m originally from Michigan but I’ve moved around a little since college. I went to undergrad in Indiana, then did grad school in Fresno, California and from there have lived in Santa Cruz, Monterey, and now San Francisco.</p>
<h4 id="before-lendtable-what-were-you-doing">Before Lendtable, what were you doing?</h4>
<p>Right before Lendtable, I was working in agency recruitment mostly in the life sciences. I’ve had a couple career changes but at the end of the day, in all of the roles I’ve held, my biggest focus has been helping people.</p>
<h4 id="what-made-you-choose-to-come-to-lendtable">What made you choose to come to Lendtable?</h4>
<p>After my first conversation with Serena, I knew Lendtable was the type of place I wanted to be and as I went through more of the interview process that thought was really solidified! Especially being on the People side of the business, it was really important to me that I found a team that I would enjoy working with and could get excited about growing that team. </p>
<p>Not only are the people here amazing, but I genuinely believe in the product we’re making and the way we’re doing it. As someone who has not always had financial stability and never really thought about retirement, I’m excited to be working towards helping people truly invest in their financial future.</p>
<h4 id="whats-something-that-makes-you-feel-fulfilled-outside-of-work">What’s something that makes you feel fulfilled, outside of work?</h4>
<p>Definitely playing soccer and hanging out with my cat Asami.</p>
<h4 id="whats-one-piece-of-advice-youd-give-your-younger-self">What’s one piece of advice you’d give your younger self?</h4>
<p>Make plans but write them in pencil and read more books.</p>
<h4 id="rapid-fire-favorite-season">Rapid fire! Favorite season?</h4>
<p>Out here in California, I’d for sure say the fall but back home in Michigan it might have to be the summer!</p>
<h4 id="pet-peeve">Pet peeve?</h4>
<p>When people walk slow and I can&#39;t get around them.</p>
<h4 id="favorite-cuisine">Favorite cuisine?</h4>
<p>I&#39;d have to say Thai but just individual food item has to be potatoes! I love potatoes!</p>
<h4 id="favorite-city">Favorite city?</h4>
<p>I haven’t traveled much outside of the country so for now it’s San Francisco.</p>
<h4 id="favorite-drink">Favorite drink?</h4>
<p>Oh has to be Dr. Pepper, I love pop. And yes it&#39;s pop, not soda :)</p>
<h4 id="nickname">Nickname?</h4>
<p>I have a ton, but the most common one is Jo.</p>
<h4 id="any-last-remarks-before-we-go">Any last remarks before we go?</h4>
<p>I’m super excited to be part of the Lendtable team and see what we can continue to build and grow!</p>


The second member of our recruiting team is ready to hit the ground running!

New Hire Spotlight: Jordyn Ryfiak, Recruiting Coordinator

<p>Changed jobs? Consolidating retirement accounts? Restructuring your retirement plan?
You might need to do a 401(k) rollover.</p>
<p>Whatever the reason, once you know that you need to initiate a rollover, you’ll need to decide where to move the money in your 401(k).</p>
<p>You have a few options, each of which have their own benefits and drawbacks. Read on to find which is best for you.</p>
<h4 id="what-is-a-401k-rollover-and-when-should-you-do-one">What is a 401(K) rollover, and when should you do one?</h4>
<p>If you opened a 401(k) account with a former employer, you’ll need to decide where you want to keep your savings when you leave the company or start a new job. Usually, you will have up to four options available to choose from.</p>
<h4 id="1-keep-your-existing-401k-with-your-former-employer">1. Keep your existing 401(k) with your former employer.</h4>
<p>However, only some employers allow this for former employees, and you will also no longer be able to enjoy the benefit of having them match your contributions. In some cases, leaving your 401(k) open at a former employer also might leave you vulnerable to extra taxes.</p>
<h4 id="2-consolidate-your-401k-accounts-if-your-new-employer-offers-a-401k-plan">2. Consolidate your 401(k) accounts, if your new employer offers a 401(k) plan.</h4>
<p>You’ll have to check what types of 401(k)s each employer offers to see if this option is a possibility.</p>
<h4 id="3-cash-out-your-401k">3. Cash out your 401(k).</h4>
<p>This is technically an option, but because of the heavy penalties you’ll incur if you cash out your 401(k) before 59 ½ years old, you should really only consider this option in serious financial emergencies.</p>
<h4 id="4-move-the-money-in-your-401k-into-an-ira">4. Move the money in your 401(k) into an IRA.</h4>
<p>This is the most common rollover option.</p>
<p>Assuming you&#39;ve clicked on this article because you want to open an IRA, let&#39;s explore option 4.</p>
<h4 id="what-you-need-to-know-about-401k-to-ira-rollovers">What you need to know about 401(k)-to-IRA rollovers</h4>
<p>You’ll be able to avoid having to pay any immediate taxes (although you will need to pay taxes eventually) and also typically get more control over where your money is being invested. </p>
<p>An IRA is a practical retirement savings vehicle that is used by millions of American households. Though IRAs don’t usually offer the same matching advantages of some 401(k) because they’re not connected to an employer, they are a great option for people who are switching between employers, deciding to start their own business or become self-employed, or are otherwise changing their general career path.</p>
<p>An IRA offers other advantages as well, such as the ability to choose where your funds are invested (usually a mutual fund but there are many you can choose from), estate planning advantages, simplified rules, and more. However, simply deciding that you want to establish an IRA will not be enough—you’ll also need to decide where you want your IRA to be managed, whether that is through your bank, a brokerage firm, a robo-advisor, or anyone else.</p>
<h4 id="your-bankor-any-bank-really">Your bank—or any bank, really</h4>
<p>If you are considering a 401(k)-to-IRA rollover, one of the first places you might want to consider is the bank you already use for your checking and savings accounts. Most of the big banks—like Bank of America, Chase, Wells Fargo, and so on—as well as smaller banks and credit unions offer IRAs that you can use in your rollover. </p>
<p>Because you have an existing relationship with your bank, executing the rollover is usually pretty painless. You might even be able to avoid certain fees and paperwork if you use a bank at which you’re already an established customer.</p>
<p>In some cases, however, opening an IRA at a bank isn’t always the best option. Financial advisers at large banks, who are available to help you not only with your rollover but also with the investment of your IRA funds afterwards, can come at a premium. They also aren’t always the most beginner-friendly when it comes to retirement planning and investing.</p>
<p>If this is the case for you, you might want to consider one of the two other options: Brokerage firms, or robo-advisors (a.k.a. personal finance apps that offer IRAs).</p>
<h4 id="a-brokerage-firm">A brokerage firm</h4>
<p>Among other things, brokerage firms are third-party IRA providers that focus on holding and investing in securities for their clients, including stocks, bonds, and more. </p>
<p>Some of the most popular brokerage firms in the U.S. include Fidelity, Charles Schwab, and TD Ameritrade. Like banks, these firms offer 401(k)-to-IRA rollover functions for their clients, as well as access to financial advisors, which usually comes at a separate cost.</p>
<p>One of the best reasons to choose a brokerage firm for your rollover is that these firms typically have a long-term view that is very conducive to retirement savings. Rather than focusing on day-to-day transactions, as you might find at a commercial bank, these firms focus heavily on making the type of investments that are most likely to deliver their clients the best long-term financial outcomes. </p>
<p>On average, brokerage firms also yield a slightly higher return on investment than you’d find at a big bank. However, there are often fees associated with brokerage firms, which is why people looking for a simpler option with a lower barrier to entry might choose to look elsewhere.</p>
<h4 id="a-robo-advisor">A robo-advisor</h4>
<p>With the rise of financial tech platforms within the last two decades, the financial space has seen a shift in interest from active investment strategies (picking individual investments by hand) to passive investment strategies (diversifying and investing in indexes). As a result, robo-advisors—investment “advisors” that are completely automated—have become increasingly popular across the country and around the world.</p>
<p>Today, some of the most popular robo-advisors include Wealthfront, Betterment, and SoFi, but there’s many more to choose from. These platforms are extremely popular because they offer a user-friendly and relatively hands-off experience, which is a great way to start and manage your retirement investments, especially if you’re a personal finance beginner.</p>
<p>While robo-advisors lack the personal touch of an in-person financial advisor, they also lack the financial advisor fees.</p>
<h4 id="consider-your-options-but-dont-overthink-it">Consider your options, but don’t overthink it</h4>
<p>When you’re rolling over your 401(k), the most important thing is to get it rolled over, somewhere, ASAP. Generally speaking, the three options are very similar to one another. </p>
<p>However, their minor differences—fees, access to expert advice, structure, investment options, etc.—are still important enough for you to keep in mind, especially because building your retirement savings will take place over a long period of time. Remember, saving for retirement is a marathon, not a sprint, but you have to start the marathon somewhere!</p>


Sign up with a paystub and your benefit policy, get approved within 24 hours, and connect your bank account to receive Lendtable Cash.

How it works

We're democratizing retirement planning and wealth-building, so everyone—regardless of race, gender, and socioeconomic status—can retire.

Our mission

Lendtable gives you cash to offset your benefit contributions, so you can get your full employer match and grow long-term wealth—without losing a cent from your paycheck.

Take control of your financial future.

Opening an IRA for your 401(k) rollover? Choose one of these.

The 3 best places to roll over your 401(k)

<p>By now, it’s no secret: From a young age, women are discouraged from dealing with money.</p>
<p>The myth that women are “bad” with money, and the assumption that women be conservative with their finances—while men, on the other hand, should invest and aggressively grow their wealth—are only the most recent manifestations of centuries of the disenfranchisement of women within the world of personal finance.</p>
<p>While the legal pendulum has swung in and out of women’s favor <a href="https://www.theguardian.com/money/us-money-blog/2014/aug/11/women-rights-money-timeline-history">throughout history</a>, women have been barred from owning property, opening bank accounts, and applying for lines of credit without a man’s consent for long stretches of time. These days, while women are, in most places, legally allowed to interact with money in the same ways men are, this history of inequality has left an insidious gender gap in financial literacy.</p>
<p>In other words, traditional methods of learning about different aspects of finance—including budgeting, investing, retirement planning, and more—are outdated, jargon-heavy, and largely tailored to men.</p>
<p>That’s where fintech is leading the pack. Here are four powerful personal finance apps for women in 2022.</p>
<h4 id="1-mint">1. Mint</h4>
<p>We know you might be thinking, &quot;Mint? On a best finance apps list? Groundbreaking.&quot; But <a href="https://mint.intuit.com/">Mint</a> is on every best finance apps list for a reason. A product of Intuit, Mint offers a simple user experience, which makes it a great app if you’re just getting started. Mint helps you track your spending and income, build a budget, and find opportunities to save or invest.</p>
<p>Because Mint is an Intuit product, it already has insights into your finances if you filed your taxes with TurboTax. While there are certainly more thrifty ways to file your taxes, you might want to consider bundling your taxes and your budgeting within these products for simplicity’s sake.</p>
<h4 id="2-ellevest">2. Ellevest</h4>
<p>When it comes to fintech made for women, by women, <a href="https://www.ellevest.com/">Ellevest</a> is one of the most recognizable names in the game. Ellevest is a subscription platform that offers users access to investment portfolio management, retirement planning recommendations, an in-app savings account, and other personal finance content tailored to women, including webinars, workshops, and one-on-one finance coaching.</p>
<p>While there are cheaper options than an Ellevest subscription, the highly-customized recommendations can be powerful for beginners. Oftentimes, not knowing where to start is the biggest barrier to entry into investing and retirement planning, and an app like Ellevest can be helpful in giving you a starting point.</p>
<h4 id="3-your-juno">3. Your Juno</h4>
<p>While lesser-known in the fintech space, <a href="https://www.yourjuno.co/">Your Juno</a> has a fresh approach to women’s personal finance. A women-founded, seed-round startup based in London, Your Juno’s mission is to close the gender gap in financial literacy and empower women and non-binary people to arm themselves with knowledge and face their finances head-on.</p>
<p>Not only does Your Juno have bite-sized lessons on personal finances basics, it offers a community space where users can ask one another questions about anything and everything money-related.</p>
<h4 id="4-honeydue">4. Honeydue</h4>
<p>Before we introduce <a href="https://www.honeydue.com/">Honeydue</a>, let us preface with this: Whether they’re in a relationship or not, women should always stay on top of their personal finances. That said, there’s an old (and heteronormative) stereotype that once women are married or living with a partner, all financial decisions are in the man’s hands. </p>
<p>Money can be one of the biggest stressors in a relationship, so making sure both parties are on board with every joint financial decision is crucial. Honeydue is a good resource for couples that are managing their money together. This app helps couples track their finances, build a budget, and stay on top of shared bills.</p>


These platforms are helping to close the gender financial literacy gap.

4 of the best personal finance apps for women

<h2 id="what-is-401k-matching-how-does-it-work-why-should-you-use-it">What is 401(k) matching? How does it work? Why should you use it?</h2>
<p>A 401(k) account is one of the most effective ways to save for retirement. Not only do they allow for convenient contributions via automatic payroll deductions, 401(k)s are company-sponsored retirement plans, which means they often come with a matching program.</p>
<p>When your employer matches your 401(k) contributions, you are literally getting free money added to your retirement savings­—and who doesn’t want that?</p>
<p>According to the Bureau of Labor Statistics, about 56% of all U.S. employers currently offer a 401(k) program, and about 51% of those who do also offer some sort of 401(k) matching. That’s millions of employers, maybe yours included. By taking advantage of these matching opportunities, you can significantly increase your retirement savings, without losing more money from your paycheck.</p>
<p>Have you checked if your company offers a 401(k) match? (If not, you should, ASAP.)</p>
<p>Let’s take a look at how 401(k) matching programs work, and answer some of the most common questions you might have.</p>
<h4 id="what-is-a-401k-match">What is a 401(k) match?</h4>
<p>A 401(k) match refers to the contributions your employer makes to your 401(k) on your behalf. It’s called “matching” because your employer will match a certain percentage of your initial contributions. The amount they will match is detailed in the match rate, which we’ll explain in the next section.</p>
<p>Oftentimes, an employer match is referred to as “free money.” Fundamentally, that’s accurate! The only stipulation is that you contribute a certain amount to your 401(k) first.</p>
<p>Generally, you also need to meet a threshold in order to get your match: In other words, you have to contribute a certain amount before they contribute their match portion.</p>
<p>In addition to a 401(k) match, your employer might also offer other matching programs, including IRA matching programs, health savings accounts (HSAs) matching, and more. Each of these programs is usually considered a part of your broader benefits package, which is among the most effective tools employers can use to attract and retain employees and you can use to improve your personal finance picture.</p>
<h4 id="should-i-use-my-employers-401k-match">Should I use my employer’s 401(k) match?</h4>
<p>Yes! </p>
<p>We can’t emphasize this enough: Not taking advantage of your employer’s match program is one of the biggest mistakes you can make.</p>
<p>Employer matches can help you increase—even double—your retirement savings for free. With the compound interest your 401(k) accrues over time, that can potentially make a difference of hundreds of thousands of dollars down the line.</p>
<h4 id="how-do-i-know-if-i-have-a-401k-match">How do I know if I have a 401(k) match?</h4>
<p>The details on the 401(k) program your employer offers, including whether or not they offer a match program, will be included in your benefits package. If you’re not sure if you have one, contact your HR representative or your benefits provider to find out more. </p>
<p>Your benefits package should not only tell you if you have a match, but how your employer’s particular matching program works.</p>
<h4 id="how-does-401k-matching-work">How does 401(k) matching work?</h4>
<p>Generally, all 401(k) matches will fall into one of two categories: Static 401(k) match rates and dynamic 401(k) match rates.</p>
<p>First, let’s talk about static match rates.</p>
<p>With a static matching program, your employer will match a certain amount of 401(k) contributions at a fixed rate, meaning that rate will not change over time.</p>
<p>Take this example: You are earning $50,000 per year, and your employer is offering a 100% 401(k) match up to 6% of your income.</p>
<p>The “100%” means this a dollar-for-dollar match. 6% of your $50,000 salary is $3,000. Keep in mind, $3,000 is the maximum, so if you contribute $600, they’ll also contribute $600. However, since your employer is willing to contribute $3,000, it’s in your best interest to get that full match. This means you need to contribute $3,000 to your 401(k) first; then, they’ll contribute the 100% match, and you’ll have $6,000 in your 401(k). Sounds pretty great, right?</p>
<p>Now, let’s talk about dynamic match rates.</p>
<p>A dynamic 401(k) match means the rate at which your employer will match your contributions will change over time. Usually, it means once your contributions have reached a certain percentage of your salary, the match rate changes.</p>
<p>These different rates included within one 401(k) matching policy are often referred to as tiers.</p>
<p>Let’s consider this example of dynamic match rates: You are earning $50,000 every year, and your employer offers a match of 100% up to 4% of your salary, then a 50% for the next 2% of your salary.</p>
<p>In this case, you must first contribute 4% of your salary—$2,000—to get the 100% match. This means your employer would contribute another $2,000, leaving you with $4,000 in your 401(k).</p>
<p>Then, you could continue to contribute to your 401(k) another 2% of your salary—that’s $1,000—which your employer will match at 50%. Now, you can put in $1,000, and your employer will add another $500.</p>
<p>In total, you’ll have $5,500 in your 401(k), and you only had to contribute $3,000 in total.</p>
<p>Even though, in these examples, the static rate left “you” with more money in your 401(k), every match policy is different. Sometimes, dynamic match policies can be incredibly lucrative.</p>
<p>It’s important to remember, too, that you can always contribute more than the amount your employer is willing to match. That choice is up to you, your budget, and your retirement savings plan.</p>
<h4 id="how-much-can-i-contribute-to-my-401k-in-2022">How much can I contribute to my 401(k) in 2022?</h4>
<p>Due to the economic impact of the Covid-19 pandemic, the IRS has been consistently raising the 401(k) contribution limit for individuals as an incentive for people to save for retirement, despite tightening budgets in a huge majority of American households. As of 2022, the IRS set the 401(k) contribution limit at $20,500 per year. This is $1,000 more than the 2021 limit.</p>
<p>However, if you are over the age of 50, you’ll actually be allowed to make an additional $6,500 in what are called “catch-up contributions” every year, since retirement age is right around the corner for 50+-year-olds, and you might need to be more aggressive in your savings strategy to reach your financial goals.</p>
<p>These limits change fairly often, so if you are hoping to make large contributions to your 401(k), you’ll want to be sure to stay up to date.</p>
<h4 id="when-is-the-employer-match-added-to-my-401k-account">When is the employer match added to my 401(k) account?</h4>
<p>Another thing to keep in mind while planning for retirement is a concept called “vesting.”</p>
<p>In retirement planning, vesting is a term used to describe your personal ownership of your retirement savings. Unlike IRAs, which are connected to individuals, 401(k)s and other company-sponsored retirement plans are connected to employers. The amount that has vested in your 401(k) account is the amount that you actually own and will have the right to access if and when you leave your employer.</p>
<p>The contributions you have made to your 401(k) via payroll deductions or otherwise are always yours to claim. (In other words, those vest immediately.) However, when an employer makes contributions to your 401(k) via a matching program, they may vest on a schedule. </p>
<p>A vesting schedule, which should be detailed in your benefits package, defines when you will personally own the amount that your employer has contributed to your 401(k). Oftentimes, vesting schedules have the match money vest periodically: For example, 50% of your employer’s contributions might vest once you’ve worked at the company for one year, and then vest the remaining 10% every quarter afterwards. Or, a vesting schedule might say the match contributions will become “fully vested” after three years of employment.</p>
<h4 id="does-401k-matching-affect-my-taxes">Does 401(k) matching affect my taxes?</h4>
<p>Traditional 401(k) plans are tax-deferred, which means you do not pay income tax on the contributions you make. However, you will have to pay income taxes when you withdraw your money upon retiring. Roth 401(k)s are the opposite: You do pay income tax on your contributions, but you do not have to pay tax when you withdraw.</p>
<p>In the case of a traditional 401(k), if you are making $50,000 and contribute $5,000 of your salary to your 401(k) one year, you will only pay income tax on $45,000. (Of course, taxes are pretty complicated, so there may be exceptions or stipulations.)</p>
<h4 id="is-a-401k-match-worth-it">Is a 401(k) match worth it?</h4>
<p>Without a doubt, yes.</p>
<p>If your employer currently offers a 401(k) matching program, it is almost always in your best interest to take advantage of this program to the greatest extent you can. </p>
<p>This money is essentially sitting on the table for you to claim as long as you contribute to your 401(k) first. Of course, once you do decide to take advantage of these programs, be sure you fully understand all taxes and other responsibilities involved along the way.</p>
<p>You work hard for your company. Make them work just as hard for you and your finances. Take advantage of that match—and do it as soon as you can!</p>


We're democratizing retirement planning and wealth-building, so everyone—regardless of race, gender, and socioeconomic status—can retire.

How does 401(k) matching work?

<p>Once you reach your 40s, retirement should be on your mind.</p>
<p>Hopefully, you’ve been saving for at least a decade by this point, as compound interest that accrues over time helps turn your initial contributions into potentially huge nest eggs down the line. </p>
<p>If you’re just starting out, make sure you read our <a href="https://www.lendtable.com/news-and-blog/how-to-save-for-retirement/">Beginner’s Guide to Retirement Saving</a>, or look over <a href="https://www.lendtable.com/news-and-blog/how-to-save-for-retirement-in-your-20s/">How to Save for Retirement in your 20s</a> and <a href="https://www.lendtable.com/news-and-blog/how-to-save-for-retirement-in-your-30s/">How to Save for Retirement in Your 30s</a> to ensure you’ve covered all the most fundamental money moves.</p>
<h4 id="saving-for-retirement-in-your-40s-and-beyond">Saving for retirement in your 40s and beyond</h4>
<p>Your 40s are an exciting time. </p>
<p>Over the last few years, you’ve likely built a solid career, maybe raised a family, and hopefully pursued some of your passions in your downtime. That said, if you want to reserve your golden years for travel, easy living, raising grandchildren, and other bucket-list experiences, you’ll need to have some serious funds saved up for retirement to make it happen.</p>
<p>The average American needs between $500,000 and more than $1,000,000 to comfortably retire. That’s a tall order, so the first thing you need to do is determine whether you’re on track to reach your goal.</p>
<h4 id="1-talk-to-a-financial-advisor">1. Talk to a financial advisor</h4>
<p>Financial advisors can be pricey at times, but they’re a good investment if you’re worried your retirement savings are off-track.</p>
<p>Financial advisors can help you make informed decisions about where to put your money depending on your risk tolerance, where to cut your spending and increase your saving, and how to make sure you’re set to retire on your terms.</p>
<p>Adding a financial advisor to your personal finance team is a great hands-on approach to retirement planning. They’ll be able to give you an even more customized set of to-dos than a personal finance app or online retirement calculator.</p>
<p>However, as with any service, there are costs associated with working with a financial advisor.</p>
<p>So how do you know when it&#39;s worth the price?</p>
<p>Here are three things to consider when deciding whether or not to hire a financial advisor: The complexity of your finances, your income and net worth, and how well you’ve been able to manage your money on your own so far.</p>
<h4 id="2-pay-down-your-debts">2. Pay down your debts</h4>
<p>Because debts accrue interest (some more than others), it’s important to keep an eye on any debt you owe to ensure you pay it off before you owe even more. </p>
<p>In your 40s, you might have high-interest credit card debt or even outstanding student loans. If you’re not already aware of them, those money-sucks can come out of the woodwork when retirement comes around and change your entire financial picture. Address them as early as possible.</p>
<p>The earlier you start paying off your debt, the less money you&#39;ll have to pay in interest, and the more money you&#39;ll have available for retirement savings.</p>
<p>You can consider debt consolidation, refinancing, and strategize which debts to pay down first, depending on interest rates and your current liquidity.</p>
<h4 id="3-get-insured">3. Get insured</h4>
<p>In your 40s, maintaining and protecting your health is of the utmost importance, but you can’t prevent it all. One of the most important things you can do for your retirement savings is to make sure you have good insurance plans in place. </p>
<p>Think of insurance as an investment. You pay some money now, but it guarantees you’ll be covered when you need it.</p>
<p>Not only does health insurance help you cover potentially immense costs in the case of an unexpected medical circumstance, it helps you avoid paying extra taxes for being uninsured.</p>
<p>Similarly, disability insurance is often worth the premium.</p>
<p>Term life insurance, in particular, can be a great way to financially protect your loved ones if something happens to you before retirement comes around.</p>
<h4 id="retirement-is-right-around-the-cornerget-ready-and-get-excited">Retirement is right around the corner—get ready, and get excited!</h4>
<p>It’s never too late to start saving for your golden years, so no matter what life stage you are at, start now. When building a nest egg for retirement, every little bit counts, so make saving for your future a priority—especially in your 40s.</p>
<p>Are you ready for retirement?</p>


Your golden years are only getting closer. Are you ready?

How to save for retirement in your 40s

<p>Your 30s is the decade of getting serious. That said, personal finance can look very different for different 30-somethings.</p>
<p>If you’re just starting your retirement journey, you might want to start by reading our <a href="https://www.lendtable.com/news-and-blog/how-to-save-for-retirement/">Beginner’s Guide to Retirement Saving</a>, or <a href="https://www.lendtable.com/news-and-blog/how-to-save-for-retirement-in-your-20s/">How to Save for Retirement in your 20s</a> if you want a more specific to-do list. Make sure you take the preliminary steps toward securing your financial future, including <a href="https://www.lendtable.com/news-and-blog/what-is-an-ira/">setting up an IRA</a>, building credit, and getting insurance to mitigate any unexpected expenses.</p>
<p>Once you’ve done those, read on.</p>
<h3 id="saving-for-retirement-in-your-30s">Saving for retirement in your 30s</h3>
<p>By the time you’re in your 30s, you’re well into your working years: You&#39;ve probably held a few different jobs, making you well-versed in corporate benefits and how they work. You&#39;re also likely making more money than you were in your 20s (which is always great news), so you might have more spending (and saving) power than you ever have.</p>
<p>Outside of professional life, however, 30-somethings can walk pretty different paths. Some might have a spouse, mortgage payments, children. Some might have pets, rent, and student loans. Most likely, you’re facing a combination of them all, and then some.</p>
<p>Regardless of your unique circumstances, here are three steps you should take to save for retirement in your 30s.</p>
<h4 id="1-ramp-up-your-401k-contributions">1. Ramp up your 401(k) contributions</h4>
<p>In your 20s, you might be juggling a lot of early-professional expenses on an entry-level salary. Fast forward 10 or so years, you likely have more financial wiggle room.</p>
<p>Fight against the urge to spend it on immediate pleasures, and invest it in your retirement savings. Specifically, put it in your 401(k) or other <a href="https://www.lendtable.com/news-and-blog/what-is-the-difference-between-a-401-k-and-a-403-b/">company-sponsored retirement plan</a> (if you have one) in order to get your employer match (if they offer one). </p>
<p>We’ve said it once, we’ll say it again: Time is money when it comes to retirement planning. So the earlier you start maxing out your 401(k) contributions, the more money you’ll have retirement rolls around.</p>
<p>Even if you can’t reach the annual contribution limit of $20,500 (we get it, that could be a huge chunk of your salary), re-budgeting to factor in larger monthly contributions is a savvy move. At the very least, contribute as much as you need to get your employer match money—if you don’t, you’re leaving free money on the table, and you’ll feel that pain more and more down the line.</p>
<h4 id="2-strategize-your-next-career-move">2. Strategize your next career move</h4>
<p>On a similar note, if you’re not currently working for a company that offers a retirement plan, keep that at the top of your list when it’s time for your next career move.</p>
<p>Right now, it’s a candidate’s job market, meaning employers have to do whatever they can to convince applicants to choose their company for their next job. One way they’re doing this is by <a href="https://www.wsj.com/articles/in-battle-for-workers-the-humble-401-k-gets-richer-in-2022-11642501803#:~:text=About%2016%25%20of%20large%20and,investment%2Dconsulting%20firm%20Callan%20LLC.">expanding retirement benefits</a>, including raising match rates.</p>
<p>Even if you tend to hop around professionally, it’s always good to take advantage of an employer match when you can, for as long as you can, as they can potentially double your retirement contributions for free. So even if you only stay at a company for a year or two, get that match (and whatever other benefits you can).</p>
<h4 id="3-diversify-your-assets">3. Diversify your assets</h4>
<p>Diversification is critical when it comes to retirement savings. </p>
<p>In simple terms, diversification means using your money to make many different types of investments, so even if one market crashes or a stock takes a nosedive, your wealth on the whole is protected.</p>
<p>In other words, don’t keep all your eggs in one basket—if you do and that basket falls, you could lose a lot of money and security.</p>
<p>As you diversify, it’s important to remember to not only diversify the types of investments you make, but the risk associated with each investment as well. Higher-risk investments, like cryptocurrency or individual stocks, have the potential to make you a lot of money, but their volatility can also make having those investments a bit of a rollercoaster. That’s why it’s always good to balance them out by keeping a few steady investments in your portfolio, like money market funds and bonds.</p>
<p>If you’ve been investing for a few years now, it’s also a good idea to reevaluate your current investment portfolio to see if it still aligns with your financial goals. This is called portfolio rebalancing.</p>
<h4 id="tldr-your-30s-are-the-time-to-kick-retirement-planning-up-a-notch">TL;DR: Your 30s are the time to kick retirement planning up a notch.</h4>
<p>With marriage, growing children, and mortgage and college tuition payments likely on the horizon, it&#39;s more important than ever to start taking your long-term finances seriously.</p>
<p>As always, even if you can&#39;t meet all your goals now, just save what you can. Compound interest is your best friend in times like these, and with a few pre-retirement decades still in your arsenal, every dollar saved can turn into hundreds of dollars earned.</p>


In your 30s, everything gets a little more real. Retirement planning included.

How to save for retirement in your 30s

<p>When it comes to retirement planning, time is money—literally. </p>
<p>In other words, the earlier you start saving, the more money you&#39;ll have when you retire. However, that doesn&#39;t mean it&#39;s an all-or-nothing process. There are always financial strategies you can (and should) employ at any age.</p>
<p>If you’re in your 20s, you’re in luck. You have the most precious resource of all: Time. While there are absolutely money moves you can (again, and should) make in your 30s or your 40s to start on your retirement planning journey, the 20-somethings of the world have the luxury of watching small contributions turn into huge gains.</p>
<p>That said, don’t get complacent. Like your fleeting youth, time for retirement planning won’t always be on your side—so do not put off saving. Your 30-, 40-, 50-, and 60-year-old selves will thank you, with exponential gratitude.</p>
<p>This blog post will cover how to save for retirement in your earliest working years, from employing the most fundamental methods to utilizing more cutting-edge strategies.</p>
<h4 id="saving-for-retirement-in-your-20s">Saving for retirement in your 20s</h4>
<p>So, you didn’t start saving for retirement when you were 18. It’s okay, not every shred of hope is lost just yet.</p>
<p>We’re kidding—if you’re starting your retirement planning journey in your 20s, you’re right on schedule (and ahead of most Americans, unfortunately). Taking a serious look into retirement planning so early in your working years is commendable, but, oftentimes, the beginning of the journey is the hardest.</p>
<p>Line up ten 20-year-olds, and personal finances are likely to look vastly different for different people. </p>
<p>Maybe you’re paying down your student loans, and your entry-level job has got you living on a tight budget. Or maybe you have no debt, a high-paying job, and lots of disposable income. Maybe you’re somewhere in the middle. </p>
<p>No matter where you are financially, there are moves that everyone can make to set themselves up for a secure financial future. The bottom line: Start now!</p>
<h4 id="1-start-contributing-to-a-retirement-account">1. Start contributing to a retirement account</h4>
<p>With an average return rate of 0.06%, basic savings accounts don’t help your money grow. While it’s usually a good idea to keep some extra funds in a savings account for emergencies or big, once-in-a-while expenses, your retirement savings are best kept in a retirement savings account. (Who’da thought!)</p>
<p>If you have access to a company-sponsored retirement account like a 401(k), use it!</p>
<p>401(k)s and other company-sponsored retirement accounts come with a lot of advantages, particularly the possibility of an employer match. While not every company-sponsored retirement policy offers an employer match, matching is a common perk employers offer to incentivize employees to save for retirement. Employer matches are quite literally free money, given on the condition that you contribute to your retirement account first.</p>
<p>The 2022 401(k) contribution limit is $20,500. If you can afford to hit this max, great—but that’s a lot to lose from your paycheck every year. If you can’t afford that hit to your income right now, just make sure you contribute at least enough to get the full match if your employer offers one. If your employer does not offer matching, contribute whatever you can. Even $500 every year is better than nothing.</p>
<p>If you do not have access to a 401(k) or other company-sponsored retirement account, open an individual retirement account. These accounts, also known as IRAs, are available to anyone who can demonstrate income. Both traditional or Roth IRAs are perfect for part-time workers, independent contractors, freelancers, and 20-year-olds, since you can only open a 401(k) after your 21st birthday.
And if you really want to start a robust retirement plan, you can open and contribute to both a 401(k) and an IRA.</p>
<h4 id="2-build-retirement-planning-into-your-budget">2. Build retirement planning into your budget</h4>
<p>Your 20s is the decade of habit-forming. To ensure you’re forming healthy financial habits, it can be seriously helpful to create a budget, no matter your annual income.</p>
<p>You can use budgeting apps, like Mint or Truebill, build an Excel spreadsheet, use the envelope method, or go back to basics and create a budget with pen and paper.</p>
<p>No matter how you track your budget, the crux of budgeting is measuring money-in and money-out each month.</p>
<p>First, factor in all your income streams: Your main job, side hustles, and any passive income channels. Then, add up the monthly expenses you can predict exactly: Rent, utilities, subscriptions, student loan payments, and so on. Then, add in monthly expenses you may need to estimate, like groceries, hobbies, restaurants, recreational shopping, and other activities. Make sure you distinguish which expenses are necessary, like rent and groceries, and which are luxuries, like restaurants and shopping.</p>
<p>Finally, see what income you’re left with, and decide how much you can contribute to your retirement savings each month. Treat retirement savings like one of your necessary expenses; if you miss a payment, your retirement savings will lose both that initial contribution and the compound interest it will accrue for the next four decades or so. </p>
<p>Remember: Even if you can only contribute $50 or so each month, that’s better than nothing!</p>
<h4 id="3-build-credit">3. Build credit</h4>
<p>Building credit is essential for your long-term financial health. It will help you qualify for loans, get a house, or purchase a car somewhere down the line. However, because of high interest rates, credit card debt is one of the most expensive forms of debt, so make sure not to spend more than you can pay off.</p>
<p>That said, don’t be afraid of credit cards! Many credit cards incentivize you to use them by offering rewards like cash back on purchases, travel discounts, and other perks if you keep your account in good standing; this way, the benefits are usually worth the trouble of paying your monthly balance.</p>
<p>Oftentimes, you need to have built credit to be approved for a credit card. If this is your first credit card, this can land you in a bind: You need credit to get a credit card, but you need a credit card to get credit. Luckily, there are credit cards made for first-timers: Just search for the best beginner credit cards, and go from there.</p>
<p>Not all credit cards are built the same, so do your own research to see which one works best for your goals and lifestyle. If you travel a lot, research travel-centric credit cards. If you want the most cash back, research that. </p>
<h4 id="4-get-insured">4. Get insured</h4>
<p>Insurance is the safety net we all need sometimes for emergency situations, and it’s critical for saving money in the long run. </p>
<p>If you shop around and find a plan that works for you, insurance can be more affordable than  you think. If your employer offers health insurance, you’ll often have options for a plan with a deductible (a monthly payment) and a plan with no deductible. </p>
<p>Even if you have to buy an insurance plan out of pocket, it can end up being more affordable than covering medical expenses in an emergency. Ultimately, ask yourself if you’re willing to factor insurance costs into your budget, or if you want to risk going into debt in medical emergencies.</p>
<p>Additionally, renter’s insurance is also a smart choice if you rent your home. The cost of replacing stolen items or repairing damaged personal property can add up fast, so it’s good to have a failsafe. Plus, some renter’s insurance offers unique travel coverage that can protect your property while you are abroad.</p>
<h4 id="5-gain-financial-literacy">5. Gain financial literacy</h4>
<p>In most areas of your life, your 20s should be spent learning: Observing, questioning, experimenting, and practicing. Your financial life is no different.</p>
<p>Your fundamental understanding of and capacity to learn about finance is called “financial literacy.” Financial literacy isn’t about knowing every single term and memorizing the tax codes. Financial literacy is about being aware of the systems that are in place—like credit cards, retirement accounts, investing, and so on—and taking action to use them to your advantage. </p>
<p>Of course, it does help to have a basic understanding of financial terms and concepts, like compound interest, budgeting, and the different types of retirement accounts.</p>
<p>Thanks to the endless stream of content available to anyone with an internet connection, you really don’t need to memorize anything! Make your financial literacy journey work for you by consuming content on channels you already know.</p>
<p>Big YouTube watcher? Check out CNBC’s Make It or finance influencer Graham Stephan’s channel.</p>
<p>Love newsletters? Subscribe to Morning Brew or Robinhood Snacks.</p>
<p>Learn by reading? Make it a goal to read at least one article a week from Nerdwallet, the Penny Hoarder, or our blog, Table Talk!</p>
<h4 id="you-can-start-small-just-start-now">You can start small. Just start now.</h4>
<p>That&#39;s the bottom line: Start now. You have more saving power today than you will tomorrow, and tomorrow you have more saving power than you will the next day. </p>
<p>Don&#39;t let information overload or financial anxiety stop you from securing your financial future. Every small step makes a huge impact in the long run.</p>


In your 20s, retirement seems impossibly far away. That kind of thinking is your biggest mistake.

How to save for retirement in your 20s

The essential how-to for retirement planning, including managing 401(k)s, IRAs, and more.

A Beginner's Guide: How to save for retirement

<p>Picture this: Although you’ve been in the workforce for a few years now, you still don’t totally understand how corporate benefits work. That said, one thing you’re certain of is that contributing to your 401(k) is key to securing a timely retirement. As a result, you maxed out your 401(k) the moment your company started offering one, took advantage of your employer match, and built up quite the nest egg in your 401(k) account. (Nice job! Give yourself a pat on the back for being so financially responsible.)</p>
<p>Now, after working at the same company for a few years, you find a new position with even better pay. All is right with the world.</p>
<p>But then, one day you’re talking to a coworker at your new job about retirement planning, and they ask what you did with your old 401(k). Your stomach drops and eyes go wide—you haven’t thought about that in months. You stammer out a nonsense answer, return to your desk, and frantically look up “What happens to my 401(k) when I leave my job????”</p>
<p>Luckily, you find this article.</p>
<p>Here’s what to do with an old 401(k), and how to roll it over into an individual retirement account, or an IRA, in five steps. Easy peasy.</p>
<h2 id="step-1-take-a-deep-breath">Step 1: Take a deep breath</h2>
<p>First things first: Don’t worry. Like anything worth doing, rolling over an old 401(k) into an IRA takes some effort, but when you know what to expect, you’ll realize it’s a lot easier than it seems.</p>
<p>It’s also important to remember that no matter how long it’s been since you left the company that previously sponsored your 401(k), that money is still in your account waiting for you. In other words, your previous employers aren’t just going to throw your savings away. (In fact, they’re legally not allowed to.)</p>
<p>So take a deep breath, keep reading, and let’s get this all figured out.</p>
<h2 id="step-2-consider-your-options">Step 2: Consider your options</h2>
<p>When rolling over your 401(k), there are generally four options available:</p>
<h4 id="keep-your-401k-with-the-former-employer">Keep your 401(k) with the former employer</h4>
<p>Even if you don’t work at a particular organization anymore, the 401(k) you set up through that organization still stands. The money you have in that account will continue to earn compound interest, and you will be able to cash it out when retirement comes around. </p>
<p>However, it’s important to keep in mind that because 401(k)s are <a href="https://www.lendtable.com/news-and-blog/what-is-the-difference-between-a-401-k-and-a-403-b/">company-sponsored retirement accounts</a>, you cannot put any more money into this account if you no longer work at the company you set it up with. </p>
<p>One reason you might make this choice: In the short term, this is the lowest-effort option. Also, your old 401(k) account may offer different investment options than your new one—if you have noticed that your former employer’s 401(k) has shown significant growth since you set it up, it might be worth keeping some money in there.</p>
<p>One reason you might not make this choice: Your retirement savings will be scattered among different accounts, so you’ll have more to keep track of in the long run.</p>
<h4 id="consolidate-your-401k-accounts">Consolidate your 401(k) accounts</h4>
<p>If your new employer also offers a 401(k), they will likely allow you to roll over your old 401(k) into the new one. Your Human Resources department should be able to help you do this.</p>
<p>One reason you might make this choice: Once you roll over your old 401(k)—meaning, once you move the money from one account to another—you will have all your company-sponsored retirement savings in one place. You will also be able to regularly—and automatically, if you set up automatic paycheck deductions—contribute to this new account. This means, for the most part, the maintenance of your 401(k) is out of your hands, which means less work for you!</p>
<p>One reason you might not make this choice: As we mentioned before, your old 401(k) plan might have more favorable investment options than your new one. While you should always take advantage of whatever retirement plan your current company offers, it might be advantageous to keep some money in the old account.</p>
<h4 id="roll-over-the-money-in-your-401k-to-an-ira">Roll over the money in your 401(k) to an IRA</h4>
<p>Perhaps the most common and flexible option: Rolling your 401(k) assets into an IRA. If you don’t already have an IRA, don’t worry: They’re easy to set up, and they can act as your catch-all retirement savings account. That means that no matter how many times you set up a 401(k) and subsequently leave that company, you can always roll those assets into this one account.</p>
<p>IRAs also provide some serious tax benefits and offer more investment options than most 401(k)s, so they’re helpful to have in general.</p>
<p>One reason you might make this choice: In addition to tax benefits, investment options, and reduced management fees, you’ll have a retirement account connected to you, not any particular employer, where you can always put your retirement savings. In other words, unlike 401(k)s, IRAs give you total control over your retirement savings.</p>
<p>One reason you might not make this choice: This is the most hands-on option, and might add another step or two to the rollover process. That said, it’s not that hard: Read on, and we’ll walk you through it.</p>
<h4 id="cash-out-your-401k">Cash out your 401(k)</h4>
<p>Before we move on, this option is worth mentioning for transparency’s sake: Technically, you can cash out the money you collected in your old 401(k) if you want to. However, the main advantage of a retirement account like a 401(k) is compounding interest, which means you’ll see gains on the initial contributions as well as the interest accrued from those contributions, so you’ll probably end up losing money in the long run if you cash it out.</p>
<p>Additionally, you will be charged income taxes on your withdrawals, and,  if you are under 59 ½ years old, you’ll be charged a 10% early withdrawal penalty fee.</p>
<p>Basically, you should only consider this option if it’s an absolute emergency.</p>
<h2 id="step-3-choose-your-ira-type">Step 3: Choose your IRA type</h2>
<p>Made the choice to roll over your 401(k) into an IRA? Excellent! There’s one more thing to consider before you can get your money moving: Which type of IRA should you open?</p>
<p>There are two main types of IRAs: Traditional and Roth. </p>
<p>As a reminder, “traditional” means taxes are taken out when you withdraw, so you’ll see a higher balance in your account but you’ll lose a portion to taxes when you take out your assets. “Roth,” on the other hand, means taxes are taken out when you contribute, so you’ll pay those fees up front, but the money you see in your account is the money you’ll actually have available to you. </p>
<p>The benefits of each are relatively straightforward, but your choice will also depend on what type of 401(k) you began with. Like IRAs, 401(k)s come in traditional and Roth versions.</p>
<p>If you have a traditional IRA, you have two options:</p>
<h4 id="traditional-401k-to-traditional-ira">Traditional 401(k) to traditional IRA</h4>
<p>Do this, and you won’t have to pay any taxes on the rollover. However, you are required to roll over everything in the account—in other words, you can’t roll over some of the 401(k) money into the IRA, and leave some in the 401(k). It’s all or nothing with traditional-to-traditional rollovers.</p>
<h4 id="traditional-401k-to-roth-ira">Traditional 401(k) to Roth IRA</h4>
<p>Because Roth accounts take taxes from your contributions, you will have to pay taxes on the amount that you roll over into the Roth IRA. However, once your money is in the IRA, it won’t be taxed, even when you withdraw it.</p>
<p>Now, if you have a Roth 401(k), you only have one option:</p>
<h4 id="roth-401k-to-roth-ira">Roth 401(k) to Roth IRA</h4>
<p>If you have a Roth 401(k), this is your only option. Because you already paid taxes on your contributions to your Roth 401(k), you will not have to pay additional taxes when you roll your money over into a Roth IRA.</p>
<h2 id="step-4-get-ready-to-roll-over">Step 4: Get ready to roll (over)</h2>
<p>Once you’ve decided which type of 401(k) you have and which type of IRA you can use for the rollover, you have to open the IRA so it’s active and ready to receive your 401(k) assets.</p>
<p>You can learn how and where to open your IRA <a href="https://www.lendtable.com/news-and-blog/what-is-an-ira/">here</a>.</p>
<p>Once your IRA is set up, you have two rollover options:</p>
<h4 id="direct-rollover">Direct rollover</h4>
<p>A direct rollover means your former 401(k) provider will transfer your money directly to your IRA. This takes some of the burden off of you, but you still have to give the 401(k) provider the information it needs.</p>
<p>First, contact your former 401(k) provider and tell them you would like to do a direct rollover into an IRA. They’ll direct you to the forms you’ll need to complete to do so. Usually, you’ll be able to choose if they send a physical check or initiate a wire transfer to your IRA provider.</p>
<p>You should be notified once the transfer is complete, and you should see your new balance in your IRA.</p>
<h4 id="indirect-rollover">Indirect rollover</h4>
<p>If, for some reason, you cannot do a direct rollover, you can do an indirect rollover. An indirect rollover means you will cash out your 401(k) balance and put that money into your IRA yourself.</p>
<p>Because cashing out a 401(k) balance usually incurs taxes, the 401(k) provider will likely hold 10 to 20% of your 401(k) balance to “pay” these taxes. However, if you roll over your entire 401(k) balance into your IRA, you will usually get that money back via a tax refund. The 401(k) provider will be able to give you more details on their indirect rollover protocol.</p>
<h2 id="step-5-invest-your-funds-and-watch-them-grow">Step 5: Invest your funds and watch them grow</h2>
<p>Once you move your 401(k) money into an IRA, you have one final, crucial step: Invest it! The #1 biggest mistake people make is putting money into an IRA and letting it sit there.</p>
<p>IRAs are not savings accounts, they’re retirement accounts. That means that the main draw of IRAs is the investment options they offer, which can provide huge gains on your principal contributions once it comes time to retire.</p>
<p>Not sure where to invest your money? Everyone’s investment breakdown looks different, but it’s helpful to first assess your risk tolerance. Are you okay with high-risk investments with potentially high rewards (or potentially big losses)? Or would you rather be more conservative with your money and put it into investments that will make steady but more modest gains.</p>
<p>Once you have an idea of your risk tolerance, consider these options:
Low-risk investments include savings bonds, money market funds, treasury bills, and certificates of deposit, also called CDs.</p>
<p>Higher-risk investments include mutual funds, bonds, private stocks, and exchange-traded funds, also called ETFs. Keep in mind, some of these higher-risk investments, like mutual funds and stocks, are also the most popular choices for IRA investments.</p>
<p>Regardless of your risk tolerance, having a mix of investments is always a good move. This is called “diversification,” and it protects you from total loss if one investment goes sour.</p>
<h2 id="the-4-1-1-on-401k-rollovers">The 4-1-1 on 401(k) rollovers</h2>
<p>Moving companies and taking advantage of new retirement benefits is exciting, but it always comes with some maintenance of your old accounts. The worst thing you can do is procrastinate dealing with your retirement savings—it will only lead to missed opportunities and higher financial anxiety for you!</p>
<p>Ultimately, educating yourself and making sure you are financially literate is the best thing you can do for your finances.</p>


Let's learn the rules of the rollover road.

How to roll over your 401(k) into an IRA

<p>Imagine this: You’re 23, you recently graduated from college, and you finally landed your first full-time job. (Time to pop the champagne!) You’ve always been good with your money, so you immediately take advantage of your company’s 401(k) program.</p>
<p>Your starting salary is $50,000, and you decide to contribute 10% of each paycheck to your 401(k). You do the math—factoring in modest pay bumps every few years and compounding interest—and you discover you’ll have more than $1,500,000 by the time you’re 65. This is great news! You pat yourself on the back for being so responsible.</p>
<p>A year later, though, you get laid off. It can happen to anyone, and your network is strong, so you’re not too worried about finding a new job. In the meantime, though, you don’t have a 401(k)—and that’s a problem. You can’t open a 401(k) without an employer, but don’t want your long-term wealth to suffer from this bump in the road. </p>
<p>So what do you do?</p>
<h2 id="enter-the-ira">Enter the IRA</h2>
<p>This is one of the many scenarios in which individual retirement accounts, or IRAs, are vital.</p>
<p>Perhaps the biggest draw of IRAs is that anyone can open one. And the earlier you start saving for retirement, the more compound interest you’ll accrue, and the bigger your nest egg will be when retirement rolls around.</p>
<p>This means that whether you’re a minor, a contract employee, a freelancer, a part-time student with income, earning income in the form of stipends, or basically anyone who is earning income but not employed by an organization offering a company-sponsored retirement account, an IRA is the way to go.</p>
<p>IRAs can be a little confusing, so this article will break down everything you need to know about the different types of IRA, and how to open and manage your own in a way that works for you.</p>
<h2 id="what-is-an-ira">What is an IRA?</h2>
<p>An Individual Retirement Account, or IRA, is a type of long-term savings account that is not connected to an employer. Once you open an IRA, you can contribute up to $6,000 each year if you are under 50 years old. If you’re over 50 years or older, you can contribute $7,000 per year.</p>
<p>It can be tempting to dip into your IRA nest egg when you’re in a pinch, but avoid that at all costs! In order to discourage you from using the funds in your IRA for any reason other than retirement, you’ll lose 10% of however much you withdraw in penalties if you take out any amount before you are 59½ years old.</p>
<p>While 401(k)s are dropped in your lap by your employer, setting up and managing an IRA takes a little more energy on your part. However, saving for retirement is extremely important regardless of how you earn income, so there are a few comparative advantages to IRAs, including:</p>
<ul>
<li>Tax incentives</li>
<li>Not being connected to an employer</li>
<li>More control over your investments</li>
<li>Lack of age-based eligibility. You have to be 21 years or older to open a 401(k), while you can be any age to open an IRA (except for one type called SEP IRAs, which we’ll discuss later in this article).</li>
</ul>
<p>What’s more, IRAs and company-sponsored retirement accounts are not mutually exclusive, meaning you can have and contribute to both at the same time. Calling back to our imaginary persona from earlier, if you opened an IRA while you were between jobs, you could still participate in your next company’s 401(k) program.</p>
<p>So, ready to open an IRA? Great! First, choose your fighter! </p>
<p>Let’s start with the two most common types of IRAs: Traditional and Roth.</p>
<h2 id="what-is-a-traditional-ira">What is a traditional IRA?</h2>
<p>Traditional IRAs allow you to contribute pre-tax money toward retirement savings. </p>
<p>This means that you will see a higher balance in your IRA while you save, but your savings will be taxed when you go to withdraw them. For example, since the annual contribution limit is $6,000 if you are below 50 years old, you will have exactly $6,000 in your IRA the first year you contribute. Then, if you immediately withdrew it (ignoring the early withdrawal penalties for this example), you’d have less than $6,000. While that is certainly a headache, one upside is that your contributions to traditional IRAs are tax-deductible, which means you can include each year’s contributions in your annual tax write-offs.</p>
<p>It is important to note that your tax-deductible contributions to a traditional IRA may be limited if:</p>
<ul>
<li>You are also participating in a company-sponsored retirement plan</li>
<li>Your adjusted gross income (AGI) is more than $61,000 if you file taxes as single, or $98,000 for married couples filing jointly</li>
<li>Your spouse participates in a company-sponsored retirement plan and your combined income is above $18,4000</li>
</ul>
<p>To sum it up, let’s review the pros and cons of traditional IRAs.</p>
<h4 id="the-pros-of-traditional-iras">The pros of traditional IRAs:</h4>
<ul>
<li>In most cases, your contributions are tax-deductible</li>
<li>Your earnings are tax-deferred</li>
<li>As long as you are earning income of some sort, there is no age limit to opening this account</li>
<li>You, not your employer, have complete control over your account and investments</li>
<li>You can open this account even if you have other retirement accounts open already</li>
</ul>
<h4 id="the-cons-of-traditional-iras">The cons of traditional IRAs:</h4>
<ul>
<li>Your funds will be taxed when you withdraw them for retirement</li>
<li>Early-withdrawal penalties</li>
<li>Annual contribution limit is lower than that of a 401(k)</li>
<li>Tax deductions can be limited</li>
<li>You are required to withdraw some amount, which varies from person to person, from your account once you turn 72. This is called a required minimum distribution.</li>
</ul>
<h4 id="so-why-would-you-open-a-traditional-ira">So why would you open a traditional IRA?</h4>
<p>If you qualify for tax deductions based on your income, the pros might outweigh the cons.</p>
<h2 id="what-is-a-roth-ira">What is a Roth IRA?</h2>
<p>Roth IRAs allow you to contribute post-tax money toward retirement savings. This means that all withdrawals you make after you retire will be tax-free.</p>
<p>The annual contributions for Roth IRAs are the same as those for traditional IRAs: $6,000 if you are below 50, and $7,000 if you are 50 or older. </p>
<p>Roth IRAs offer some great advantages listed below, but there is one common barrier to entry: If you have a high annual income, you may not be eligible to open a Roth IRA. If you file your taxes as single, you cannot open a Roth IRA if your annual salary is $144,000 or higher. If you file your taxes jointly with your spouse, the same goes for a combined income of $214,000.</p>
<p>Here’s a rundown of the pros and cons of Roth IRAs.</p>
<h4 id="the-pros-of-roth-iras">The pros of Roth IRAs:</h4>
<ul>
<li>Since you pay taxes on your contributions, you will not pay taxes on your withdrawals</li>
<li>There is no required minimum distribution, meaning you can let your funds grow in your Roth IRA literally until you die (and pass it on to your beneficiaries)</li>
<li>You can avoid penalties on withdrawals before you turn 70, so Roth IRAs can work as emergency funds as well as retirement savings accounts</li>
</ul>
<h4 id="the-cons-of-roth-iras">The cons of Roth IRAs:</h4>
<ul>
<li>You have to pay taxes up front</li>
<li>Annual contribution limit is lower than that of a 401(k)</li>
<li>There are income-based eligibility restrictions</li>
</ul>
<h4 id="so-why-would-you-open-a-roth-ira">So why would you open a Roth IRA?</h4>
<p>If you think taxes will be lower now than when you plan to retire (and likely, they will be), Roth IRAs are the way to go. Additionally, if you want to keep your IRA as a back-up emergency fund, Roth IRAs are the only option.</p>
<h2 id="sep-and-simple-iras">SEP and SIMPLE IRAs</h2>
<p>Although traditional and Roth IRAs are the two most common types by far, there are two other kinds that some people may find just as beneficial. While both of these are technically IRAs and not company-sponsored accounts, they are connected to an employer.</p>
<h2 id="what-is-an-sep-ira">What is an SEP IRA?</h2>
<p>A Simplified Employee Pension, or SEP, IRA can be set up by a business of any size, and it is often used by self-employed individuals who are, technically, employees of their own businesses. </p>
<p>In cases where businesses with multiple employees offer SEP IRAs, employees must be at least 21 years old and have earned at least $650 of income from the business to be eligible to participate. One drawback here is that, unlike traditional and Roth IRAs, the employer may have control over the investments made in an SEP IRA—but if the employer and the employee are the same person, this becomes a moot point.</p>
<p>One huge advantage of SEP IRAs is that the annual contribution limits are extremely high—even higher 401(k)s. The 2022 contribution limit for SEP IRAs is either 25% of the employee’s salary, or $61,000, whichever is lower.</p>
<h2 id="what-is-a-simple-ira">What is a SIMPLE IRA?</h2>
<p>The Savings Incentive Match Plan for Employees, or SIMPLE, IRA is similar to an SEP IRA insofar as it is largely used by small businesses with less than 100 employees, oftentimes while the business is setting up a more robust company-sponsored retirement program. </p>
<p>Like traditional IRAs, SIMPLE IRAs are tax-deferred, meaning you do not pay taxes on your contributions until you withdraw. Both employees and employers can contribute towards the SIMPLE IRA.</p>
<p>The 2022 annual contribution limit for SIMPLE IRA holders under 50 is $14,000, and $17,000 for those 50 years or older. While this is higher than both traditional and Roth IRAs, it is lower than most company-sponsored retirement accounts like 401(k)s, and significantly lower than that of SEP IRAs. </p>
<p>Perhaps the most important distinction to note with SIMPLE IRAs is the withdrawal penalty. Like most IRAs, you will incur a 10% penalty if you withdraw from a SIMPLE IRA before you are 59 ½ years old, but that’s not the worst of it: If the withdrawal is made within two years of opening the account, you’ll lose 25% of your withdrawal. That’s a huge penalty, and something to actively avoid! </p>
<h2 id="how-do-you-open-an-ira">How do you open an IRA?</h2>
<p>Okay, now you’re well-versed on the different types of IRAs, and it’s time to act! The earlier you start your retirement savings journey by opening an IRA, the better. Don’t procrastinate! We’re here to help you get started. </p>
<h2 id="step-1-choose-the-right-type-of-ira">Step 1: Choose the right type of IRA</h2>
<p>Refer back to the pros and cons above for these four options above:</p>
<ol>
<li>Traditional IRA</li>
<li>Roth IRA</li>
<li>SEP IRA (You will only have this option if you are employed by a business that offers it.)</li>
<li>SIMPLE IRA (You will only have this option if you are employed by a business that offers it.)</li>
</ol>
<h2 id="step-2-choose-where-to-open-an-ira">Step 2: Choose where to open an IRA</h2>
<p>There are three main places you can go to open and operate an IRA.</p>
<ol>
<li><p>Banks: Most large banks, like Chase, Wells Fargo, Bank of America, and so on, offer IRAs. Operating your IRA through the bank you already use for your checking and savings accounts is oftentimes the most convenient way to go, since you’ll be able to use the same service—as well as the same app and physical locations—to manage most or all of your accounts.</p>
</li>
<li><p>Brokerage firms: You can also open an IRA with a third-party brokerage firm, like Fidelity, E*Trade, Charles Schwab, and more. Brokerage firms are great for people who want to be more hands-on when it comes to investing the money in their IRA. Like banks, brokerage firms also offer access to financial and investment advisors. Keep in mind that while these services are convenient to access, they often come with significant fees.</p>
</li>
<li><p>Robo-advisors: If you want a more user-friendly, hands-off IRA experience, personal finance apps and platforms that come with robo-advisors, or AI-powered investment suggestions, are a great option. Apps like Wealthfront, Betterment, and SoFi are some of the leading choices for robo-advisors that offer IRAs. However, if you want a more face-to-face experience, this might not be the best option.</p>
</li>
</ol>
<p>Remember to check with the IRA provider you choose to make sure they offer the type of IRA you want! Most banks, brokerage firms, and robo-advisors offer both traditional and Roth IRAs.</p>
<h2 id="step-3-input-your-details">Step 3: Input your details</h2>
<p>Now it’s time to set it up! </p>
<p>Some providers let you log in with another secure portal—like your bank or payroll provider—so your relevant personal information can easily transfer over without any action on your part. </p>
<p>If you need to set up your IRA manually, don’t worry—most of this information you’ll already have on hand. Most accounts ask you for the following details:</p>
<ul>
<li>Proof of identification (driver’s license, passport, state ID, birth certificate, etc.)</li>
<li>Some personal information, including your legal name, date of birth, and contact information</li>
<li>Social security number</li>
<li>For Roth IRAs, your beneficiary information, or who you want to inherit the funds in your IRA if you die before they are withdrawn</li>
<li>Bank account routing and account numbers, so you can transfer funds from your main bank account to your IRA digitally</li>
</ul>
<p>If you have previously saved for retirement using a company-sponsored retirement account like a 401(k), you can also roll over those retirement savings into your IRA by working alongside a rollover expert from your IRA provider. Most IRA providers have them. They&#39;ll help you contact your previous retirement account provider and fill out a few forms so you can deposit what you had in your 401(k) or other account into your new IRA, and consolidate all your long-term savings.</p>
<h2 id="step-4-contribute-funds">Step 4: Contribute funds</h2>
<p>An empty IRA is a like a book with no story: You need to put something in it for it to be valuable! Once you’ve linked your bank account or rolled over your 401(k) funds, adding funds to your IRA should be a piece of cake.</p>
<p>For IRAs with low annual contribution limits, like traditional and Roth IRAs, it’s a good idea to max out those contributions every year. However, the biggest takeaway is to contribute whatever you can—even if it’s just a few hundred dollars (or less!) every year!</p>
<p>Retirement planning is never all-or-nothing. Anything and everything will help you grow long-term wealth.</p>
<h2 id="step-5-invest-and-watch-your-money-grow">Step 5: Invest, and watch your money grow!</h2>
<p>An IRA is only as powerful as the investments you make—so make sure to make them! The biggest mistake you can make is adding funds to an IRA and forgetting to invest them.</p>
<p>Most IRAs will let you choose what you want to invest in, and you can choose any combination of options. Common investments are individual stocks, mutual funds, bonds, and exchange-traded funds (EFTs). It’s always a good idea to diversify your investments—in other words, don’t invest all your money in one place, but instead spread it out among different investments!</p>
<h2 id="the-bottom-line-on-iras-contribute-what-you-canbut-start-now">The bottom line on IRAs: Contribute what you can—but start now!</h2>
<p>These days, saving for retirement is more important than ever: A 2021 report from the Social Security Board of Trustees showed that social security funds will be depleted by 2034, meaning that unless you save for retirement on your own, retirement might not be an option.</p>
<p>That sounds scary, but there is hope: Lendtable’s mission is to make sure everyone—regardless of race, gender, or socioeconomic status—can retire. </p>
<p>We know that there are two big barriers to entry when it comes to retirement planning: Information and resources. That’s why we’re writing these blogs, so you can get easily-accessible information about personal finance and wealth-building, and Lendtable’s services will help you get the resources (in other words, cash) you need to pay for today’s expenses and plan for tomorrow’s.</p>


Everything you need to know about Individual Retirement Accounts: What they are, how to open one, and why you probably need one now.

What is an IRA?

<p>We know you’ve heard this before: If you want to retire by the time you’re 65 (or younger!), you need to start saving now. We also know that if retirement feels super far away, you might be inclined to procrastinate—especially when there are so many acronyms, codes, and details that make retirement planning seem intimidating.</p>
<p>To make things easier, we’re giving you the rundown of one of the most basic parts of retirement planning: Company-sponsored retirement accounts. From 401(k)s to TSPs, this article will take you through the most common types of company-sponsored retirement accounts, how they work, and which ones you might want to focus on as you move through your retirement-planning journey.</p>
<h2 id="what-is-a-company-sponsored-retirement-account">What is a company-sponsored retirement account?</h2>
<p>Company-sponsored retirement accounts are a type of retirement savings account that is offered to an individual by their employer. They were created by the U.S. government to encourage Americans to save for retirement, even when it’s decades away. One important distinction between company-sponsored retirement accounts and other retirement accounts to keep in mind is that an individual cannot open this type of account on their own.</p>
<p>The most common types of company-sponsored retirement accounts are 401(k)s, but that’s not the only type out there. In this article, we’ll cover:</p>
<ul>
<li>401(k)</li>
<li>403(b)</li>
<li>401(a)</li>
<li>457(b)</li>
<li>Thrift Savings Plan, or TSP</li>
<li>Savings Incentive Match Plan for Employees, or SIMPLE</li>
<li>Pension</li>
</ul>
<p>All of these are used by different types of employers and offer specific sets of benefits. </p>
<p>The 2022 contribution limit for all company-sponsored retirement accounts is $20,500.</p>
<p>FYI: The “k”s, “b”s, “a”s, and so on in parentheses actually don’t stand for anything—they’re simply labels set by the IRS to organize different retirement plans within the American tax code.</p>
<p>If someone does not have access to a company-sponsored retirement account, they still have resources to help them save for retirement. Individual retirement accounts, or IRAs, are a popular choice for individuals who are not employed full-time by one company, but we’ll cover these in a different article.</p>
<p>One of the biggest advantages of company-sponsored retirement accounts is their high contribution limit—much higher than the limit for IRAs.</p>
<p>Typically, employees can—and should—opt into their employer’s retirement savings program, as these types of accounts have some benefits that IRAs do not. The only perceived downside to opting into a company-sponsored retirement account is that the company automatically diverts money from your paycheck to the retirement account, so you’ll generally lose a few hundred dollars, give or take, you otherwise could have used for your day-to-day expenses or emergency savings. (Do not let this stop you from saving for retirement! In fact, we built Lendtable to solve this problem. Scroll to the bottom of this article to get started.)</p>
<p>Now that you know what a company-sponsored retirement plan is, let’s go a bit deeper.</p>
<h4 id="defined-contribution-plans-vs-defined-benefits-plans">Defined-contribution plans vs. defined-benefits plans</h4>
<p>There are two types of company-sponsored retirement plans: Defined-contribution plans and defined-benefit plans.</p>
<p>A defined¬-contribution plan is a type of company-sponsored retirement plan in which the employee and, if they choose, the employer, contributes money to the employee’s retirement account on a regular cadence. This money is automatically deducted from the employee’s paychecks and held in whichever type of account the company offers, where it’s put into different investments so it can grow over time.</p>
<p>A defined-benefit plan, on the other hand, is a company-sponsored retirement plan in which the employer supplies a former employee with money after they’ve already retired. These days, defined-benefit plans are a slightly less common choice for companies, as the employer bears most of the risk.</p>
<p>TL;DR: Employees and their employers pay into defined-contribution plans before they retire, while employers pay out the funds set aside in a defined-benefit plan to former employees after they retire.</p>
<p>If your company offers a retirement benefit, they most likely offer a 401(k), which is a defined-contribution plan. On that note…</p>
<h2 id="what-is-a-401k">What is a 401(k)?</h2>
<p>A 401(k) is the most common type of company-sponsored retirement plan. 401(k)s are offered by private, for-profit companies to full-time employees.</p>
<p>Like we learned earlier, 401(k)s are a type of defined-contribution plan, in which an employee diverts a portion of each paycheck to pay into their 401(k) account set up by their employer.</p>
<h4 id="401k-matching">401(k) matching</h4>
<p>In addition to employee contributions, 401(k) plans often come with employer match benefits. Whether they offer a match benefit or not is up to the employer, but matching is a common and powerful incentive to both save for retirement and stay at a company for a long time. The one everyone’s heard of but may not fully understand. This is a because an employer match is essentially free money—yes, for real, free money—but employees can’t get it unless they contribute their share first.</p>
<p>Employer match rates can come in two forms: Static and dynamic.</p>
<p>When an employer offers to match a fixed percentage of an employee’s contribution and does not change that percentage over time, that is called a static match rate. In most cases, employers will only match an employee’s contributions up to a certain percentage of their income.</p>
<p>For example, a static 401(k) match policy could say: “We’ll match 100% of your contributions, up to 6% of your income.” To translate this into a real-world example, imagine you’re making $50,000 at this company. If you contribute the maximum—6% of your $50,000 income—you will contribute $3,000 to your 401(k). Then, your company will match 100% of that $3,000 and put an additional $3,000 into your 401(k). Now, you have $6,000 that will be invested in whatever investments you choose and grow exponentially.</p>
<p>An example of a dynamic match policy could say: “We’ll match 100% of your contributions, up to 4% of your income. Then, we’ll match 50% for the next 2% of your income. Your contributions cannot exceed 6%.” If you’re still making $50,000, you could contribute $2,000, or that initial 4% of your income, to your 401(k). Your company would match this at 100% and contribute another $2,000. What makes this policy dynamic is what happens next: When you contribute the remaining 2% of your income, or $1,000, your company will only match 50% of that contribution, or $500. So in this case, you’d have $5,500 in your 401(k).  </p>
<h4 id="401k-tax-implications">401(k) tax implications</h4>
<p>There are two different types of 401(k)s, each of which have different tax implications: Traditional 401(k) and Roth 401(k). Employers choose which type of 401(k) to offer.</p>
<p>With a Traditional 401(k), your contributions come from pre-tax income. This means that you’ll see a higher amount sitting in your 401(k) account, but you’ll have to pay taxes on this money when you withdraw it for retirement. However, there is an upside: You can report your 401(k) investments as tax deductions the year you make those investments. </p>
<p>With a Roth 401(k), your contributions come from post-tax income, so taxes will be taken out of your contributions automatically. This means that the amount you see in your 401(k) account is the amount you’ll be able to withdraw, minus some government withdrawal fees. In this way, Roth 401(k)s are a bit more straightforward, but you won’t get that tax deduction in the meantime.</p>
<h2 id="what-is-a-403b">What is a 403(b)?</h2>
<p>Similar to 401(k)s, 403(b)s are defined-contribution company-sponsored retirement accounts with Traditional and Roth types. Unlike 401(k)s, however, 403(b)s are only offered to employees of non-profits, government workers, and other public employees like some nurses, doctors, teachers, and ministers. </p>
<p>Like 401(k)s, many 403(b) policies include matching. One drawback of 403(b) plans, in comparison to 401(k)s or IRAs, is a more limited array of investment options.</p>
<h2 id="what-is-a-401a">What is a 401(a)?</h2>
<p>401(a) plans are very similar to 403(b)s, as they are also offered by non-profit, government, and other public organizations. Unlike 401(k)s, 401(a)s do not offer a Roth option, so 401(a) contributions are always pre-tax.</p>
<p>The biggest difference between 401(a)s and 403(b)s is that employers offering 403(b)s can also offer 401(k)s, while employers offering 401(a)s cannot. 401(a)s also typically offer a wider range of investment options.</p>
<h2 id="what-is-a-457b">What is a 457(b)?</h2>
<p>The 457(b) plan is even more niche than the above options. 457(b)s are only offered to state and local government employees. Like traditional 401(k)s, contributions to 457(b) plans are pre-tax.</p>
<h2 id="what-is-a-thrift-savings-plan-or-tsp">What is a Thrift Savings Plan, or TSP?</h2>
<p>Learning about Thrift Savings Plans will be just as fun as thrifting, we swear!</p>
<p>Thrift Savings Plans, or TSPs, are offered to federal government employees and members of the uniformed services. TSPs come in Traditional and Roth forms and often are offered with employer match benefits. TSPs have slightly more limited investment opportunities, with only six options: </p>
<ul>
<li>The Government Securities Investment (G) fund</li>
<li>The Fixed-Income Index Investment (F) fund</li>
<li>The Common-Stock Index Investment (C) fund</li>
<li>The Small-Capitalization Stock Index Investment (S) fund</li>
<li>The International-Stock Index Investment (I) Fund</li>
<li>Life cycle (L) funds, which include a mix of securities held in each of the five funds listed above</li>
</ul>
<h2 id="what-is-a-simple">What is a SIMPLE?</h2>
<p>Unlike the “k”s and “a”s, SIMPLE actually <em>does</em> stand for something: Savings Incentive Match Plan for Employees.</p>
<p>Technically, SIMPLEs are not company-sponsored retirement plans. Instead, they are programs in which employers and employees at generally smaller companies who are not yet sponsoring retirement plans can contribute to IRAs. In many cases, SIMPLEs are the in-the-meantime solutions for helping employees save for retirement while the company grows and sets up a more robust retirement saving program.</p>
<h2 id="what-is-a-pension">What is a pension?</h2>
<p>If the term “pension” makes you think of your grandpa who worked at one company his entire career, you’re not too far off: Pensions are pretty uncommon these days. Pensions are defined-benefit plans in which employers commit to sending former employees monthly sums to support them during retirement. While pensions guarantee that retired employees receive what are essentially retirement stipends for the rest of their lives, the retired employees have little to no control over how much they’ll get with each payment. </p>
<p>These days, pensions are a rare choice for employers, as can cost employers the most out of all the other company-sponsored retirement options. However, as pensions set up in past generations are still being paid out, roughly 83% of former public employees and 15% of former private employees in the U.S. are currently receiving their pension payments.</p>
<h2 id="the-bottom-line-of-company-sponsored-retirement-accounts">The bottom line of company-sponsored retirement accounts</h2>
<p>So there you have it! It wasn’t so confusing, right? …right? Well, if you can’t commit all of that to memory, you can always reference back to this article.</p>
<p>If you remember only one thing from what you’ve learned here, remember this: Take advantage of your company’s retirement benefit! You can always set up and contribute to an IRA, even at the same time as you’re contributing to a company-sponsored retirement account, but you can only take advantage of benefits like your employer match while you work for that company, so don’t let it go to waste.</p>
<p>We’ve said it once, and we’ll say it again: The earlier you start investing with retirement accounts, the more money you’ll have for retirement (and the earlier you’ll be able to retire), so resist the urge to kick it down the line.</p>
<p>Your future self will thank you!</p>


From 401(k)s to TSPs, here’s everything you need to know about the many different company-sponsored retirement accounts.

What’s the difference between a 401(k) and a 403(b)?

<h4 id="hi-nikki-we-couldnt-be-happier-to-have-you-on-the-team-ready-for-the-qa">Hi Nikki! We couldn’t be happier to have you on the team. Ready for the Q&amp;A?</h4>
<p>Absolutely!</p>
<h4 id="tell-us-your-name-your-hometown-and-your-role-at-lendtable">Tell us your name, your hometown, and your role at Lendtable.</h4>
<p>My name is Nikki Arias, born and raised in Washington Heights, Manhattan, and I’m the office manager at Lendtable.</p>
<h4 id="whats-your-professional-background">What’s your professional background?</h4>
<p>I’ve been working in office management since 2000, so more than 20 years! My last role was the office manager at a construction startup called Fieldwire, and before that I was a facilities coordinator at Dropbox. </p>
<p>I love working on small teams and early-stage companies. Because it’s such a blank slate, I get to really be creative. The physical design and floor plan of an office is so important: The space you’re in can put you in a calm, organized mindset, or, alternatively, a cluttered, stressful one.</p>
<h4 id="what-will-be-your-first-project-for-our-office">What will be your first project for our office?</h4>
<p>I think I’ll tackle the easier things first, like stocking the kitchen with a ton of snacks—and I’ll make sure there’s something for everyone, whether you’re vegan, keto, have allergies, whatever! Then, I’ll move on to bigger projects, like designing the floor plans to make sure the departments that work together are near each other.</p>
<h4 id="why-did-you-decide-to-join-our-team">Why did you decide to join our team?</h4>
<p>Working for minority-founded companies is really important to me. I’m Latina, and I come from a lower-income background, so the mission to help people build a nest egg that can grow generational wealth is something I genuinely support.</p>
<p>Also, hiring an office manager so early on says a lot about the kind of company Lendtable is. It says that this company cares about the environment its team works in, because the space and its features influence how accessible we are, how remote-friendly we are, and how much we care about our team’s physical and mental health.</p>
<h4 id="tell-us-a-little-about-your-passions-outside-of-work">Tell us a little about your passions outside of work.</h4>
<p>I’m super into vintage fashion, especially from the ‘60s and ‘70s. My closet is stacked with really cool pieces, and it’s even color-coded! I’m also a musician: I play in tribute bands for Prince, David Bowie, and the Pixies, I sing, I do musical theater—I did a production of Cinderella with the African American Shakespeare Company recently! I was one of the step-sisters.</p>
<h4 id="where-do-you-go-to-learn-about-finance">Where do you go to learn about finance?</h4>
<p>I used to be painfully clueless about finance! Recently, though, a friend helped me invest in crypto. And now that I’m in the Lendtable office, I’m sure I’ll learn a thing or two from the team.</p>
<h4 id="what-do-you-consider-your-greatest-financial-accomplishment">What do you consider your greatest financial accomplishment?</h4>
<p>Paying off my debt.</p>
<h4 id="whats-one-piece-of-financial-advice-youd-give-your-younger-self">What’s one piece of financial advice you’d give your younger self?</h4>
<p>Invest in your 401(k) earlier, and don’t take jobs that don’t offer one.</p>
<h4 id="okay-rapid-fire-round-favorite-city">Okay, rapid fire round! Favorite city?</h4>
<p>How could I not say San Francisco?!</p>
<h4 id="favorite-drink">Favorite drink?</h4>
<p>Bundaberg ginger beer. Or a virgin piña colada.</p>
<h4 id="favorite-cuisine">Favorite cuisine?</h4>
<p>I’d say Japanese.</p>
<h4 id="nickname">Nickname?</h4>
<p>Nikki, obviously! And some of my friends call me Nickums.</p>
<h4 id="pet-peeve">Pet peeve?</h4>
<p>As an office manager, definitely people who don’t clean up after themselves!</p>
<h4 id="well-make-sure-to-avoid-that--were-so-happy-to-have-you-here-and-cant-wait-to-see-what-you-do-with-our-wonderful-office">We’ll make sure to avoid that ;) We’re so happy to have you here and can&#39;t wait to see what you do with our wonderful office.</h4>
<p>I’m ready to get started!</p>


A top-notch office manager is vital to a healthy working environment. Luckily, we’ve got Nikki.

New Hire Spotlight: Nikki Arias, Office Manager

<h4 id="hi-david-why-dont-you-introduce-yourself">Hi, David! Why don’t you introduce yourself?</h4>
<p>Gladly! I’m David Goldsmith, and I’m Lendtable’s legal counsel. Very excited to be here!</p>
<h4 id="where-are-you-from">Where are you from?</h4>
<p>All over! I spent the first 13-ish years of my life in Chicago, then I moved to Tulsa, Oklahoma, where and went to high school, undergrad, and law school. Since then, I’ve lived in Florida, Tel Aviv, and even spent a few years of doing van life with my dog Zohar—that means radiance in Hebrew! Now, of course, I’m a San Franciscan, and I’m very happy to be here.</p>
<h4 id="before-coming-to-lendtable-how-did-you-put-your-law-degree-to-use">Before coming to Lendtable, how did you put your law degree to use?</h4>
<p>I began my career as a public defender before pivoting into corporate law. Then, I moved to working for organizations as a legal and compliance counsel. For a few years, I also ran a privacy consulting firm, Pryvcy, to help companies bridge their CCPA and GDPR obligations. Most recently, I was the Chief Compliance Officer at Aspiration, a digital neo-bank based in Los Angeles that focuses on integrating environmental sustainability into finance.</p>
<h4 id="what-made-you-choose-to-come-to-lendtable">What made you choose to come to Lendtable?</h4>
<p>I genuinely believe in the mission and the product. Lendtable is poised to dramatically help working Americans save and invest for their future. The newness of the company was also a plus: At an early-stage startup, I get to use my background and knowledge to help structure scalable processes, advise on complexities and risk, and strategize on product development. </p>
<p>Once I started the interview process and met some of the team, I also realized that the founders had brought together incredible talent and motivated individuals with the focus of helping others. Lendtable offers an environment unlike any I&#39;ve ever experienced. Everyday, I have an opportunity to make an impact and to work alongside talented, passionate people that challenge me and encourage my growth.</p>
<h4 id="why-is-lendtables-mission-important-to-you">Why is Lendtable&#39;s mission important to you?</h4>
<p>It&#39;s simple: Lendtable gives people money to invest towards their financial future. The resources Lendtable gives its customers is such a precious and vital asset that so many people don’t have.</p>
<h4 id="whats-something-that-makes-you-feel-fulfilled-outside-of-work">What’s something that makes you feel fulfilled, outside of work?</h4>
<p>Sunshine and starry nights. I love backpacking, camping, playing board games, and being out in nature! I&#39;ll also move heaven and earth to see live music.</p>
<h4 id="where-do-you-look-for-financial-tips-and-advice">Where do you look for financial tips and advice?</h4>
<p>Mostly subreddits and old school forums, a la Bitcointalk. As a legal professional, however, I have to remind you that this is not financial advice—do your own research, always!</p>
<h4 id="what-do-you-consider-your-greatest-financial-accomplishment">What do you consider your greatest financial accomplishment?</h4>
<p>Buying Bitcoin in 2013.</p>
<h4 id="whats-one-piece-of-advice-youd-give-your-younger-self">What’s one piece of advice you’d give your younger self?</h4>
<p>HODL! If you know, you know—but if you don&#39;t, that means &quot;hold on for dear life&quot; to your crypto investments.</p>
<h4 id="rapid-fire-favorite-season">Rapid fire! Favorite season?</h4>
<p>The sunny one! Depends on the time of year.</p>
<h4 id="pet-peeve">Pet peeve?</h4>
<p>When clothing tags are sticking out. I will legit go tuck in strangers’ tags if I see them, and most people are grateful...I think?</p>
<h4 id="favorite-cuisine">Favorite cuisine?</h4>
<p>Mediterranean. I love me some hummus and olives.</p>
<h4 id="favorite-city">Favorite city?</h4>
<p>Tel Aviv.</p>
<h4 id="favorite-drink">Favorite drink?</h4>
<p>Seltzer.</p>
<h4 id="nickname">Nickname?</h4>
<p>Goldie!</p>
<h4 id="any-last-remarks-before-we-go">Any last remarks before we go?</h4>
<p>Nope! Just excited to be a part of the team and get to help build a seriously powerful product.</p>


From public defender to expert in fintech legalese, David is bringing some serious insight (and a sunny disposition!) to our team.

New Hire Spotlight: David Goldsmith, legal counsel

<h4 id="hi-jason-were-so-excited-to-have-you-on-the-team-ready-to-do-a-qa">Hi Jason! We’re so excited to have you on the team. Ready to do a Q&amp;A?</h4>
<p>Oh man, lot of pressure... but yes! Let’s do it.</p>
<h4 id="lets-start-with-an-easy-one-name-hometown-and-role-at-lendtable">Let’s start with an easy one. Name, hometown, and role at Lendtable?</h4>
<p>I’m Jason Donadio from Lodi, California. That’s in the Central Valley—if you’ve ever driven the I-5, you know it.</p>
<p>I’m the Head of Finance at Lendtable, which is a particularly crucial role at a fintech company, I’d say! Basically, it means I’m in charge of the company’s allocation of funds and resources. The company is growing at such a fast rate, so in the new year I foresee the need to spend more on research and development, marketing, headcount—really, anything and everything that will help us provide our customers with the best experience possible.</p>
<h4 id="whats-your-professional-background">What’s your professional background?</h4>
<p>I come from a finance and accounting background. Before joining Lendtable, I was the CFO at Zoosk, an online dating company. I find finance genuinely fascinating, which is why I was so excited to join a team where I’m not only dealing with the business’s finances, but where the business is <em>about</em> finance.</p>
<h4 id="why-is-lendtables-mission-important-to-you">Why is Lendtable’s mission important to you?</h4>
<p>Personal finance is really important to me. I realized pretty early on that money is a tool that you can use to build security, to maintain peace of mind, and to have the life experiences you want to have. And the thing about personal finance is that it’s <em>personal—</em>not institutional, not generational. It’s for the individual, no matter what their background is. </p>
<p>That’s the part of Lendtable that I really connected with. Getting your 401(k) match is a really big deal when it comes to building long-term wealth. It has tangible impacts on the kind of life you can provide for your family down the line, and it’s not something anyone should miss out on. </p>
<p>When I was looking for my next career stop, I wanted to find a company that is building some sort of solution to help the greater good. At Lendtable, I’m able to combine those two passions: Personal finance and helping people.</p>
<h4 id="whats-something-outside-of-work-that-youre-passionate-about">What’s something outside of work that you’re passionate about?</h4>
<p>My family! Everything I do is for them. But also traveling, experiencing different cultures, staying active, and the Dallas Cowboys.</p>
<h4 id="where-do-you-get-your-financial-news">Where do you get your financial news?</h4>
<p><span style="font-style:italic;">Wall Street Journal</span>.</p>
<h4 id="what-do-you-consider-your-greatest-financial-accomplishment">What do you consider your greatest financial accomplishment?</h4>
<p>Having the guts to not only continue investing in real estate during COVID, but to ramp it up even more than pre-COVID. It was a little risky, but it really paid off—and gave me an outlet while we were all stuck at home! More recently, I also got into flipping houses out of state, which has been such an interesting, fun experience.</p>
<h4 id="whats-one-piece-of-financial-advice-youd-give-your-younger-self">What’s one piece of financial advice you’d give your younger self?</h4>
<p>Invest in real estate earlier.</p>
<h4 id="okay-ready-for-rapid-fire-questions">Okay, ready for rapid fire questions?</h4>
<p>Fire away!</p>
<h4 id="nickname">Nickname?</h4>
<p>Jaymo.</p>
<h4 id="pet-peeve">Pet peeve?</h4>
<p>When I ask someone, “Why do we do it that way?” and they respond, “Because that’s how it’s always been done.”</p>
<h4 id="favorite-city">Favorite city?</h4>
<p>Rome.</p>
<h4 id="favorite-drink">Favorite drink?</h4>
<p>Iced tea.</p>
<h4 id="favorite-cuisine">Favorite cuisine?</h4>
<p>Sushi’s my favorite, so I’d say Japanese!</p>
<h4 id="thanks-jason-we-couldnt-be-more-excited-to-have-you-here">Thanks, Jason! We couldn’t be more excited to have you here.</h4>
<p>Excited to be here! I’m ready to get some great work done this year.</p>


Lendtable’s newest hire is bringing major financial mastery to our office—from both his professional and personal life.

New Hire Spotlight: Jason Donadio, Head of Finance

<article id="e0651787-a877-4fdd-b448-7ba5b2bfb4e4" class="page sans">
  <div class="page-body">
    <figure id="6014db9c-a383-4dad-b15a-fe8b2e655e66" class="image">
      <a
        target="_blank"
        style="width:100%;"
href="https://cdn.sanity.io/images/ge4nycbu/production/243324385e5923c26990f3c2318752769064d2a0-5616x3744.png"
        ><img
          style="width: 1300px; max-height: 1300px;"
          src="https://cdn.sanity.io/images/ge4nycbu/production/243324385e5923c26990f3c2318752769064d2a0-5616x3744.png"
      /></a>
      <span style="font:caption;display:block;">
        Some of the Lendtable team outside our new Headquarters in San Francisco
        (Photo Credit: Siddhi Surana / @shot.by.sid)
      </span>
    </figure>
    <p id="e3678e63-7ede-48b9-a8fe-18f400bf3312" class="">
      <a target="_blank" href="https://mitchell-jones.medium.com/?p=e38093544f1c"
        >When we announced Lendtable&#x27;s seed raise</a
      >
      a year ago, we set out to prove we could build a thriving fintech business
      that enables new people to begin saving for retirement instead of creating
      more products for those already investing. Although many investors were
      skeptical, we argued that the reason<a
target="_blank"
        href="https://www.google.com/search?q=how+many+americans+don%27t+use+their+401k+match&amp;rlz=1C5CHFA_enUS915US916&amp;biw=1164&amp;bih=858&amp;sxsrf=AOaemvJEfu4X6BfWLSzk8L4602ecYgGPdg%3A1634754307431&amp;ei=A19wYcLnGcf4-gSCgJmQDw&amp;ved=0ahUKEwiC9aeuztnzAhVHvJ4KHQJABvI4ChDh1QMIDg&amp;uact=5&amp;oq=how+many+americans+don%27t+use+their+401k+match&amp;gs_lcp=Cgdnd3Mtd2l6EAM6BwgjELADECc6BwgAEEcQsAM6BAgjECc6BQgAEIAEOgUIABCGA0oECEEYAFDwUljFcGCVcmgCcAJ4AIAB1gKIAesckgEHOS40LjcuMpgBAKABAcgBCcABAQ&amp;sclient=gws-wiz"
      >
        1 in 5 people did not receive thousands of dollars in the form of a free
        401(k) employer match</a
      >
      was not that they were &quot;misinformed&quot; or &quot;did not care
      enough.” It was because they were getting squeezed. They were choosing to
      pay their student loans. They were choosing to feed their families. They
      were choosing to pay off their mortgage. They were making the right
      choices for their today at the expense of their
      tomorrow.
    </p>
    <p id="8fb1a05d-6c04-4bb8-88cf-20683c8c6ddc" class="">
      Those choices hit close to home. They are the same ones my mother and
      father made by putting every dollar they earned towards providing a better
      life for my brother and me. My parents and hundreds of our customers
      constantly have to sacrifice long-term financial security to make ends
      meet, pay off education and medical expenses, and provide their loved ones
      opportunities they themselves never had the chance to pursue.
    </p>
    <p id="bc19eaa8-1711-4584-94a9-2b6698cd4808" class="">
      These sacrifices are what make my parents and our customers the real
      heroes. It is why Lendtable&#x27;s mission is much larger than giving out
      cash for 401(k) matches and Employee Stock Purchase Plans;
      <span style="font-weight:bold;">we are one company contributing to the greater fight to enable a secure
        financial future for every person</span>.
    </p>
    <div id="9bc64224-89a6-4b1d-bcd5-e89a309af8fe" class="column-list">
      <div
        id="1d1d2fc0-7e4f-4147-8001-316e972d9db2"
        style="width: 50%; float: left;"
        class="column"
      >
        <figure id="f0917432-59ae-4cc1-8326-1e2370149add" class="image">
          <a target="_blank" href="https://cdn.sanity.io/images/ge4nycbu/production/caf46841d5299504b97d7b1200f3337527b21ebf-760x783.png"
            ><img
              style="width: 760px"
              src="https://cdn.sanity.io/images/ge4nycbu/production/caf46841d5299504b97d7b1200f3337527b21ebf-760x783.png"
          /></a>
        </figure>
      </div>
      <div
        id="cbab3bb9-547a-4f7e-8cd3-30b217551346"
        class="column"
      >
        <p id="89ca0055-c9a7-483a-b5f3-89ce34631bf1" class="">
          This fight matters for more than just my family and the average
          American household. Our society benefits when every individual has the
          power to participate in our economy. Their participation fuels small
          business growth, entrepreneurship, innovation, startups, and so much
          more. However, we are quickly approaching a crisis no one is talking
          about.
        </p>
        <p id="fd6c634d-c63f-47f6-8e17-848d12ec14a6" class="">
          <a target="_blank" href="https://www.forbes.com/sites/niallmccarthy/2019/06/03/report-a-quarter-of-americans-have-no-retirement-savings-infographic/?sh=2749188d3ebf"
            >1 in 4 Americans still have no retirement savings</a
          >, and about
          <a target="_blank"
href="https://www.businesswire.com/news/home/20210318005501/en/Just-26-of-Americans-Near-or-at-Retirement-Age-Have-Enough-Saved-for-Retirement"
            >60% of people at or near retirement age do not have enough money to
            retire</a
          >. Many of these Americans believe that social security will support
          them in retirement. Meanwhile, the Social Security Trust is
          <a target="_blank"
            href="https://www.cnbc.com/2021/08/31/social-security-trust-funds-set-to-be-depleted-sooner-than-expected.html"
            >projected to run out of money in 2033, a year earlier than previous
            projections, due to Covid</a
          >.
        </p>
      </div>
    </div>
    <p id="452c19b7-2a41-4698-ada4-a518e4da0195" class="">
      This investing crisis will change every part of American life, even for
      those already financially prepared for retirement. 
    </p>
    <p id="94c85a8c-4abd-48ae-ae91-73c70b65db7d" class="">
      Our team is deeply committed to enabling a future in which every
      individual can retire at 60 years old. A year ago, we had provided a
      little more than $134,000 to our customers to help them receive their
      401(k) employer matches.
    </p>
      <div
        id="a02a672a-753c-405f-8beb-5228e34c20ad"
        class="column"
      >
        <figure id="66003673-4927-45ce-8564-b099f5e5a880" class="image">
          <a target="_blank"
href="https://cdn.sanity.io/images/ge4nycbu/production/66029bceb26e9834c38c4ec5293f90e1f525a85b-3460x2310.png"
            ><img
              style="width: 3460px"
src="https://cdn.sanity.io/images/ge4nycbu/production/66029bceb26e9834c38c4ec5293f90e1f525a85b-3460x2310.png"
          /></a>
        </figure>
      </div>
    <div id="1351a504-2d47-41de-bfbe-1a0fbeaf9194" class="column-list">
      <div
        id="a5d83ba6-8151-42d9-85ea-17cff14846e2"
        class="column"
      >
        <p id="046d00c8-b96e-40d0-a58d-bc69b287d80b" class="">
          Fast forward to today, and we have provisioned more than $3 million,
          growing our business by about 22x over that period. To accelerate our
          growth, we need to expand our team, product offerings, and brand reach
          even faster than we already have. This leads me to the heart of this
          article:
        </p>
      </div>
    </div>
    <h3 id="47a1754b-876e-46eb-838a-90f9ec9dff79" class="">
      <strong
        >I&#x27;d like to formally announce Lendtable&#x27;s Series A raise of
        $18 million. </strong
      >
    </h3>
    <p id="0a2b91c9-9626-4ddd-872f-6d4bc3a91c57" class="">
      The round is led by Dick Costolo, Adam Bain, and the team at 01 Advisors.
      In addition to the 01A team, we welcome back Streamlined Ventures,
      SoftBank Opportunity Fund, Valor Equity Partners, and Dragon Capital
      participating in this round. Finally, we are excited to announce Dennis
      Woodside (COO of Impossible Foods), Anthony Noto (CEO of SoFi), Rich
      Antoniello (CEO of Complex), Zander Lurie (CEO of Momentive, formerly
      SurveyMonkey), and Jay Parikh (former VP of Engineering at Facebook) as
      strategic angels partnering with us in this round.
      <span style="font-weight:bold">This capital brings our total money raised to $24 million</span>.
    </p>
<p> "We are thrilled to partner with Mitchell and Sheridan through our investment in Lendtable. They have put together a phenomenal team, and we are impressed with how fast they've moved on such an enormous problem. The retirement industry is large and ripe for improvement, and Lendtable solves the core liquidity issue with the space." - 01 Advisors <p>
    <p id="81f5e2e7-db0f-4f26-8fe9-4638aaee8959" class="">
      We thank all of our new teammates for joining us on this journey. Their
      expertise and capital will help us unlock a step-function change in
      Lendtable&#x27;s growth. Specifically, we will use our new funding to
      triple our team size in the next year, continue growing the core Lendtable
      401(k) and ESPP products, and expand our reach into strategic partnerships
      that make it even easier for our users to find and use Lendtable.
    </p>
    <p id="de23c512-7ed0-4aef-a21f-c83337623e17" class="">
      It is essential to highlight the work that got us to this incredible
      milestone. Our team has been working around the clock to provide the most
      informative, easy-to-use, and trustworthy experience possible. They have
      helped many of our customers invest in their retirement accounts for the
      first time. Behind the scenes, we have been laying the foundations to
      continue the explosive growth of Lendtable. Specifically we:
    </p>
    <ul id="f3516d2f-0668-4204-be2b-6ac8f8ce933e" class="bulleted-list">
      <li style="list-style-type: disc">
        Completely redesigned our landing page and app to provide a delightful
        experience to our customers when they first discover Lendtable.
      </li>
    </ul>
    <ul id="c4f0efcc-7af8-491a-9827-2c62cae55073" class="bulleted-list">
      <li style="list-style-type: disc">
        Launched our Lendtable ESPP Cash product, which now represents roughly
        20% of Lendtable users.
      </li>
    </ul>
    <ul id="a504475d-8105-41d7-a02b-f12018dd3339" class="bulleted-list">
      <li style="list-style-type: disc">
        Indexed thousands of 401(k) plans and set up integrations with providers
        like Atomic and Docusign to get our customers through our entire form
        submission in 5 minutes or less.
      </li>
    </ul>
    <ul id="389f5a85-8088-4dac-b968-b29cd67ab091" class="bulleted-list">
      <li style="list-style-type: disc">
        Launched partnerships with companies like SuperCoffee, where we
        decreased the number of users missing out on their 401(k) match by 15%
        in our first two weeks working with the team.
      </li>
    </ul>
    <ul id="ac5315bb-cbf8-4de6-8fc8-5d8ec8c30182" class="bulleted-list">
      <li style="list-style-type: disc">
        Set up a world-class marketing team to meet our users where they are and
        on their terms.
      </li>
    </ul>
    <ul id="c8af8482-9e81-41a0-9812-8c73e86dd842" class="bulleted-list">
      <li style="list-style-type: disc">
        Invested heavily in customer success, committing to a median customer
        response time in under 1 minute, and crushed that goal, hitting 45
        seconds over the past year.
      </li>
    </ul>
    <ul id="1b70d438-33ba-4f3d-97f8-6a7aeda75615" class="bulleted-list">
      <li style="list-style-type: disc">
        Provided $3 million towards people’s benefits, furthering our mission of
        making retirement a possibility for our customers with every dollar
        lent.
<p></p>
        <figure id="66cfec3d-a5d3-4369-9bc3-0123e586a5d0" class="image">
          <a target="_blank"
href="https://cdn.sanity.io/images/ge4nycbu/production/3663e1a51cf807e1787a021c7482e410bc82c98a-5153x3731.png"
            ><img
              style="max-height: 1300px"
              src="https://cdn.sanity.io/images/ge4nycbu/production/3663e1a51cf807e1787a021c7482e410bc82c98a-5153x3731.png"
          /></a>
        </figure>
      </li>
    </ul>
    <p id="f9576bba-82fd-4522-94b0-d08d0ac56d79" class=""></p>
    <p id="f7785d93-b6ef-48e6-b7b3-09c002961e21" class="">
      Our fundraise would not have been possible without all this hard work, so
      I want to thank the people who make this journey fulfilling.<strong
      > </strong>Sheridan — you are the best co-founder I could ever ask for,
      and I am so glad we turned our first coffee chat into an all-night
      brainstorming session that led to the creation of Lendtable. Isaiah, Yav, Richard, 
      Celena, Ani, Mike, Michael, Serena, Mayan, and Steph, Lendtable would be nothing
      without your steadfast commitment to our customers and your work building
      a company whose culture represents its user base.
    </p>
    <p id="3cfbbad5-4f92-4817-b804-fef9c5317468" class="">
      Going forward, there is much to do. It is time for us to begin working on
      our larger vision. Lendtable Cash is the seed capital for a lifelong
      customer relationship. Over the next year, we will build out services that
      both support and supplement Lendtable Cash and our user&#x27;s overarching
      investment experience. Our key to success is the trust we earn by powering
      our customers&#x27; (many of whom are investing for the first time because
      of Lendtable) retirement savings. We have an enormous responsibility to
      make that investing journey as simple as possible, and we believe
      we&#x27;ve earned enough customer trust that they will adopt future
      products we offer.
    </p>
    <p id="c0132a6b-b585-4a66-8dbf-6e28f0118ddb" class="">
      The road ahead will not be an easy one, but it is certainly worth
      traveling. Our job is only 1% finished. We do not have time to waste, and
      we have a lot to build. If you want to join us on this journey,
      <a target="_blank" href="https://www.lendtable.com/careers/"
        >check out our careers page</a
      >
      and get in touch. We are looking for talented people like you to champion
      our mission if we are going to make retirement a possibility for every
      American.
    </p>
    <p id="882d2f51-56e8-4556-99f1-67428dd76ffa" class="">
      <span style="font-style:italic;font-weight:bold;">About 
        Lendtable</span>
    </p>
    <p id="7ac5aba2-1ea5-468a-85c8-3085fd5497bc" class="">
      <a target="_blank" href="https://www.lendtable.com/"><span style="font-style:italic;">Lendtable</span></a><span style="font-style:italic">
        is a startup company set to solve the long-term savings and liquidity
        problem. Each year $24 billion in employer 401(k) matches are left on
        the table, primarily because employees cannot afford to both save for
        the long term and pay for daily expenses. Lendtable helps employees
        unlock this portion of their paycheck by supplying them the funds they
        need to receive their full 401(k) match from their employer. With
        Lendtable, they no longer need to choose between saving for retirement
        and covering day-to-day expenses.</span
      >
    </p>
    <p style="font-style:italic;" id="065d5f92-3b98-4be6-80dd-d6f285e95c93" class="">
      <style="font-style:italic;">Lendtable Cash can help employees save thousands more per year (and
        tens to hundreds of thousands over their career) by simply taking
        advantage of the entirety of their employee benefits. In the future,
        Lendtable looks to create solutions across an employer’s benefits suite
        that help employees understand and access the full potential of their
        paycheck.</span>
    </p>
    <p id="40cccc45-9e85-4585-be15-c847be27ce43" class="">
      <span style="font-style:italic;">Founded in 2020 in San Francisco, the company is led by founders
        Mitchell Jones and Sheridan Clayborne. Mitchell previously founded
        Parable, an automated personal financial assistant fintech startup.
        Before Parable, he worked as a fintech product manager at Facebook,
        leading their digital wallet product for LATAM and Dropbox in
        cybersecurity. Mitchell graduated from Yale University. Sheridan, a
        Thiel Fellow, was the youngest Black American to get into Northwestern
        at age 15. He went on to work at Goldman Sachs in private equity and
        Dropbox as a machine learning product manager. Sheridan has built
        multiple fintech and e-commerce startups and has done over $20 million
        in sales through these ventures.</span>
    </p>
    <p id="1bcdd147-2ad2-4e50-aaf7-a4521ee88480" class="">
      <span style="font-weight:bold;">For press or media inquiries, please contact:</span>
    </p>
    <p id="9d97159b-07e9-4063-9386-953b08cd47ec" class="">
      Celena Chong: <a href="mailto:celena@lendtable.com">celena@lendtable.com</a>
    </p>
    <p id="4546630b-e5a9-4ec9-a579-2550da4f2600" class=""></p>
  </div>
</article>


Announcing Lendtable's $18 million Series A Fundraise

<p>Becoming a millionaire sounds like a pipe dream, right? Only the rich and famous have a million dollars (or more) in their 401K. </p><p>What if you’re wrong? What if people just like you could have millions of dollars in their 401K too</p><p><a href="https://lendtable.com/">You can. Here’s how.</a></p><h1>Start Early</h1><p>The earlier you start, the more money you’ll <a href="/news-and-blog/5-ways-to-manage-your-money-better">save</a>. Even though you’re restricted by the annual contribution limit (for 2020 it’s $19,500), your money has time to earn interest. Then your interest earns interest. <a href="/news-and-blog/compound-interest-vs-simple-interest-whats-the-difference">Compounding interest</a> is the best way to make your money grow fast and get you to your million-dollar goal.</p><h1>Contribute Regularly</h1><p>Try contributing every month (or predetermined frequency) without fail. Better yet, increase your contributions each year or when you receive a raise, get a higher paying job, or receive a bonus. </p><p>Revisit your contribution schedule. Can you afford more? Even if it’s only a small increase, every little bit helps. But consistency is the key. Don’t set your contributions so high that you have to give up entirely to make ends meet.</p><h1>Know your Risk Tolerance</h1><p>When you’re young, you have a high-risk tolerance. In other words, you can invest a majority of your portfolio in stocks and only a little in more conservative investments. This gives you a higher chance of great returns while you can take the chance. If things fall apart, you still have a lot of time to make it up.</p><p>Once you’re closer to retirement than not, pull back. Don’t invest so aggressively, but don’t get so conservative that you have little to no earnings. Working with a financial professional will help you create the perfect portfolio.</p><h1>Don’t Borrow from your 401K</h1><p>It’s tempting, especially during times like now to dip into your <a href="/news-and-blog/3-401k-tips-that-will-increase-your-account-balance">401K</a>. You earned the money, so why not use it, right?</p><p>Wrong.</p><p>Leave it untouched if you can. Make dipping into your 401K a last resort. Even if you take a 401K loan and pay yourself back, you lose all the compound interest. That takes away from your chance of becoming a million-dollar retiree. </p><h1>Don’t Forget your Old 401K Accounts</h1><p>This is a problem a lot of people have. You change jobs and forget about your old 401K. You let years go by and then realize you forgot it. Those years just cost you thousands of dollars. Make it a habit to rollover your 401K right away, even if it’s into an IRA if you don’t have immediate access to a 401K at your new job.</p><p>Just don’t cash it in – roll it over and you won’t pay any penalties or taxes.</p><p>Becoming a 401K millionaire is easier than you think. It takes consistency and dedication and a whole lot of patience. Don’t expect it to happen overnight or even in a few years. Let your contributions and earnings grow steadily and before you know it, you’ll be in the million-dollar club too. </p>

401(k) Millionaires: The Easy Path for you to Become One Starting Today

<p class="" style="white-space:pre-wrap;">We all want the magic 8-ball to answer this question for us. How much you need to retire may not be the same amount your sibling, neighbor, or co-worker needs. It depends on a large number of factors. We’ll cover the most important below.</p><h3 style="white-space:pre-wrap;">1.&nbsp;&nbsp;&nbsp;&nbsp; When will you retire?</h3><p class="" style="white-space:pre-wrap;">At what age will you retire? You may not know for sure, but you probably have a goal. If it’s early (50s) you’ll need more than if you’re intent on working until you’re in your 70s.</p><p class="" style="white-space:pre-wrap;">Why?</p><p class="" style="white-space:pre-wrap;">The younger you retire, the more money you need to live after retirement. If you retire at 50, you may have 30 – 40 years ahead of you. If you retire at 70, you may only have 15 – 20 years. That’s a big difference.&nbsp;</p><p class="" data-rte-preserve-empty="true" style="white-space:pre-wrap;"></p><h3 style="white-space:pre-wrap;">2.&nbsp;&nbsp;&nbsp;&nbsp; How much will you spend?</h3><p class="" style="white-space:pre-wrap;">This answer differs for everyone too. What are your plans?</p><p class="" style="white-space:pre-wrap;">Will you travel or stay put? Will you downsize or keep the same house? What plans do you have? If your retirement lifestyle will look a lot different than your current lifestyle, your financial needs may change. If not, you’ll likely need around 80% of your current income in retirement since you won’t pay the same amount of income taxes and hopefully, you won’t have nearly as much debt (mortgage, <a href="/news-and-blog/credit-cards-how-to-use-them-and-not-let-them-use-you">credit card</a> debt, etc.).</p><p class="" data-rte-preserve-empty="true" style="white-space:pre-wrap;"></p><h3 style="white-space:pre-wrap;">3.&nbsp;&nbsp;&nbsp;&nbsp; What income sources will you have?</h3><p class="" style="white-space:pre-wrap;">This plays a major role too. If you’re relying solely on retirement income (401K, IRA, etc.) you have a lot more to worry about than if you have Social Security income and/or a pension to see you through.</p><p class="" style="white-space:pre-wrap;">Try to estimate your retirement income before withdrawing from any retirement accounts and see where you stand. This helps you understand how much money you need to supplement your retirement income to ensure a financially secure retirement.</p><p class="" data-rte-preserve-empty="true" style="white-space:pre-wrap;"></p><h3 style="white-space:pre-wrap;">4.&nbsp;&nbsp;&nbsp;&nbsp; Will you work?</h3><p class="" style="white-space:pre-wrap;">This is a big one. Some people retire from their career but still work. They may consult or do something completely different – something that aligns with their passions or hobbies. </p><p class="" style="white-space:pre-wrap;">Either way, figure out how much money this potential income source may bring in. Chances are it won’t cover all your expenses, but every bit helps. If you can prolong when you withdraw from your <a href="/news-and-blog/401k-millionaires-the-easy-path-for-you-to-become-one-starting-today">401K</a> or IRA, you’ll have more money in your older years when you can’t work any longer. Just keep in mind the Required Minimum Distributions that get imposed at age 72.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Are you Ready for Retirement?</h3><p class="" style="white-space:pre-wrap;">If your retirement portfolio isn’t on track to meet your retirement goals, it’s time to reassess. Can you contribute more? Should you change your allocations? Revisit your goals, risk tolerance, and portfolio performance to determine how to proceed.</p><p class="" style="white-space:pre-wrap;">Knowing where you stand and where you want to be are the two main factors when ensuring that you save enough money for retirement. The earlier you start, the better off you’ll be, so start saving, planning, and <a href="/news-and-blog/when-should-i-start-investing">investing</a> today. </p><p class="" style="white-space:pre-wrap;"><a href="https://www.linkedin.com/in/rahuldotiyer/">Rahul Iyer</a></p>

How Much Money do I Need to Retire?

<p class="" style="white-space:pre-wrap;">Your employer offers a whole list of benefits. How do you choose the right one or better yet, how do you take advantage of all at the same time?</p><p class="" style="white-space:pre-wrap;">Before you can take advantage of any benefits – create a <a href="/news-and-blog/the-502030-budget">budget</a>. Know how much ‘extra’ money you’re working with so you can decide. Ideally, 20 percent of your take-home pay should cover your investments, savings, and debt payoff. If you’re not out of debt, get out of it first. Then, prioritize as follows.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Take Advantage of Employer Match</h3><p class="" style="white-space:pre-wrap;">Employer match is like FREE money. Here’s why.</p><p class="" style="white-space:pre-wrap;">Let’s say your employer matches 3% of your salary. If you make $75,000, your employer will contribute $2,250 if you do. Prioritize the amount your employer will match or find a way to make it happen. Even if that’s all you contribute, your employer doubles your contributions, getting you closer to a financially secure retirement.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Plan for Employee Stock Purchase Plan</h3><p class="" style="white-space:pre-wrap;">Most employers require vesting before you can take advantage of the <a href="/news-and-blog/should-you-take-advantage-of-your-companies-employee-stock-purchase-plan">ESPP</a>. Budget for it. You’ll know how much you can buy the shares for, so budget for the purchase even if it’s a few years from now. Put a small amount aside every month so you have the money when you’re eligible. If you can buy it at a price lower than the market value, it’s an instant return on your investment.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Contribute to your HSA</h3><p class="" style="white-space:pre-wrap;">If you have a high deductible insurance plan, take advantage of the Health Savings Account. Like retirement contributions, the funds are contributed before taxes. This lowers your current tax liability plus ensures you have money for health expenses in the future, also tax-free. </p><p class="" style="white-space:pre-wrap;">You can use the funds for any eligible medical expense and the funds don’t expire. You can roll them over year after year, which means by the time you retire, you could have a decent amount of money saved for the higher healthcare expenses most seniors have.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">The Key is to Budget</h3><p class="" style="white-space:pre-wrap;">The bottom line is you must budget and revisit your budget often. Every year things change – so take a look again where you stand. If you had a lot of debt and now you’re out of it, you can contribute more to your <a href="/news-and-blog/3-401k-tips-that-will-increase-your-account-balance">401K</a>, IRA, or HSA. </p><p class="" style="white-space:pre-wrap;">Know what you need and find a way to make it happen. You may not reach all goals at once, but every step in the right direction helps. If you don’t meet your entire employer match this year, make it a goal to reach it next year. Or if you didn’t contribute to your Health Savings Account this year, make it a priority to contribute to it next year.</p><p class="" style="white-space:pre-wrap;">The key is to look at the big picture. It’s easier to focus on what’s happening right now, but that doesn’t help when you’re retired. A little sacrifice now will make a big difference in the years to come. </p><p class="" style="white-space:pre-wrap;"><a href="https://www.linkedin.com/in/rahuldotiyer/">Rahul Iyer</a></p>

401(k) Company Match, Employee Stock Purchase Plan, Health Savings Accounts - How to take Advantage of All that is Offered

<p class="" style="white-space:pre-wrap;">Your credit score determines a lot. It controls your loan approvals and terms. Credit scores help insurance companies determine your premiums (or even if they’ll approve you). It may even control if you get a new job.</p><p class="" style="white-space:pre-wrap;">Understanding the top credit score myths can help you maximize your credit score. Let’s debunk those myths.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Myth: You hurt your credit score if you check it.</h3><p class="" style="white-space:pre-wrap;">Truth: You should check your credit score and it DOESN’T hurt it. When you check your credit score it’s a soft inquiry. Only hard inquiries hurt your credit score and those only occur when you actively apply for credit. Checking your score doesn’t mean you’re applying for credit, so it doesn’t affect it.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Myth: You should close old credit cards to help your credit score.</h3><p class="" style="white-space:pre-wrap;">Truth: Closing old credit cards hurts your credit score. It lowers your total credit line, which increases your credit utilization (the amount of debt outstanding compared to your credit lines). Instead, keep them open, but don’t use them.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Myth: You can’t fix bad credit.</h3><p class="" style="white-space:pre-wrap;">Truth: Your credit score is a snapshot of your credit today. If you fix late payments, lower your debt totals, or make other positive credit changes, it may increase your credit score. Every time a creditor reports your credit history it changes your credit score. You can’t fix bad credit overnight, but with good habits, <a href="/news-and-blog/the-most-impactful-move-you-can-make-to-improve-your-credit-score-fast">it will eventually change</a>.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Myth: Carrying a balance is good for your credit score.</h3><p class="" style="white-space:pre-wrap;">Truth: It depends. Typically, high balances hurt your <a href="/news-and-blog/fico-is-changing-its-credit-score-formula-heres-what-you-need-to-know">credit score</a>. Any balance that exceeds 30% of your credit line brings your credit score down. If you have a low balance and pay the bill on time, it may help, but only slightly. You’re better off paying your debts off in full.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Myth: It takes a long time to ruin your credit score.</h3><p class="" style="white-space:pre-wrap;">Truth: One bad account can drop your credit score as much as 100 points. Let a bill go to collections and watch your credit score drop fast. Don’t pay your bills or have a high credit card balance? Your score will drop again. Your credit score can drop in the blink of an eye.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Myth: Only rich people have good credit scores.</h3><p class="" style="white-space:pre-wrap;">Truth: Your income doesn’t affect your credit score directly. If it helps you pay your bills on time, then yes it helps. But anyone can pay their bills on time if they only take on what they can afford. Your income doesn’t affect your credit score in the least.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Bottom Line</h3><p class="" style="white-space:pre-wrap;">Your credit score is one of the most important factors in your personal finance life. Check it often (your <a href="/news-and-blog/credit-cards-how-to-use-them-and-not-let-them-use-you">credit card</a> companies or bank usually offers free access) and once a year to <a href="http://www.annualcreditreport.com/">check your free credit reports</a>.</p><p class="" style="white-space:pre-wrap;">If you make mistakes, fix them. Your credit score changes often, so you can always work toward good credit. Don’t beat yourself up for one credit mistake. Pick up the pieces and improve your credit score – working on good habits continually is your best chance for good credit. </p><p class="" style="white-space:pre-wrap;"><a href="https://www.linkedin.com/in/rahuldotiyer/">Rahul Iyer</a></p>

6 Credit Score Myths

<p class="" style="white-space:pre-wrap;">The CARES Act changed many things for Americans to make their lives easier financially, including the ability to withdraw from their 401K. </p><p class="" style="white-space:pre-wrap;">While it may be easier, aka less expensive, should you?</p><p class="" style="white-space:pre-wrap;">Probably not. Here’s why.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">It’s Hard to Recoup the Money </h3><p class="" style="white-space:pre-wrap;">Even if you think it’s ‘only $10,000’ you would withdraw, that’s a lot of money in the grand scheme of things. You aren’t just withdrawing $10,000. You are removing the chance for that $10,000 to grow into something much greater over the years. Every day the money isn’t in your account is an opportunity cost.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">You May Sell at a Loss</h3><p class="" style="white-space:pre-wrap;">If you’re trying to bail out of your 401K now, when the <a href="/news-and-blog/how-do-401ks-deal-with-market-downturns">market is down</a>, you may sell at a loss. Now not only are you taking money out of your retirement, but you’re selling at a loss. In other words, you’re locking in a loss. </p><p class="" style="white-space:pre-wrap;">If you kept the money in your 401K and rode out the storm, you may see a comeback. When you pull out, there is no comeback, only a loss and it’s not a good feeling.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">The CARES Act Doesn’t Stop you from Paying Taxes</h3><p class="" style="white-space:pre-wrap;">The only thing the CARE Act stops is the 10% penalty you’d pay for early withdrawal of your 401K funds. If you withdraw the full $10,000, it would save you $1,000. But, come April 15th next year, you’ll owe the taxes on the $10,000 you withdrew.</p><p class="" style="white-space:pre-wrap;">It’s best to take the taxes out now, so you have the money available when it’s due, otherwise, you may put yourself in a sticky financial situation in a few months.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">You May Have Other Options</h3><p class="" style="white-space:pre-wrap;">It’s easy to jump at the first option you see and right now all eyes are on 401Ks because of the CARE Act. But there are <a href="https://lendtable.com/">other options</a>.</p><p class="" style="white-space:pre-wrap;">Ask yourself if you’ve exhausted all other options including:</p><ul data-rte-list="default"><li><p class="" style="white-space:pre-wrap;">Personal loans</p></li><li><p class="" style="white-space:pre-wrap;">0% APR credit cards</p></li><li><p class="" style="white-space:pre-wrap;">A loan from family or friends</p></li></ul><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Reasons to Consider Withdrawing from your 401K</h3><p class="" style="white-space:pre-wrap;">If any of the alternative options won’t work and you think you’ll be in a bind, any of the following reasons are reason enough to tap into your 401K:</p><ul data-rte-list="default"><li><p class="" style="white-space:pre-wrap;">You can’t afford your mortgage due to being laid off or falling ill due to COVID</p></li><li><p class="" style="white-space:pre-wrap;">You can’t meet your basic needs</p></li><li><p class="" style="white-space:pre-wrap;">Your only options are high-interest loans or debts that would be unaffordable</p></li></ul><p class="" style="white-space:pre-wrap;">Think long and hard before withdrawing from your 401K. It may seem smart at the time but think of your future. What will happen if you take out that $10,000?</p><p class="" style="white-space:pre-wrap;">It may not seem like much now but think of the opportunity cost. How much interest and <a href="/news-and-blog/compound-interest-vs-simple-interest-whats-the-difference">compounded interest</a> will you lose? How will that hurt your retirement timeline and goals? $10,000 is a lot in the grand scheme of things because every dollar you save today is worth a lot more 10, 20, or 30 years from now.</p><p class="" style="white-space:pre-wrap;"><a href="https://www.linkedin.com/in/rahuldotiyer/">Rahul Iyer</a></p>

401K Accounts: Should I be Using Mine Today?

<p class="" style="white-space:pre-wrap;">As we continue navigating our way through the pandemic, one question keeps coming up – should you lease or buy a car?</p><p class="" style="white-space:pre-wrap;">While this is always a hot debate during any time, it’s even hotter right now as we are all in strange financial times. Buying a car gives you ownership, while leasing is like renting. </p><p class="" style="white-space:pre-wrap;">Which is better for you – buy or lease? Most people benefit most from a lease, here’s why.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">You’ll Have a Shorter Commitment</h3><p class="" style="white-space:pre-wrap;">Everything is unpredictable right now, so why get yourself wrapped up in a financial commitment you may or may not be able to afford? Leases are short-term agreements. Get yourself a two or three-year lease and give yourself some breathing room.</p><p class="" style="white-space:pre-wrap;">If something goes haywire in the next couple of years, you know you’re off the hook on a long-term agreement.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">You Don’t Need a Large Down Payment</h3><p class="" style="white-space:pre-wrap;">Buying a car means coming up with a large upfront payment or at least a <a href="https://www.kbb.com/whats-my-car-worth/?ico=a">valuable trade-in</a>. If you buy a new car, you’re investing in something that will lose money the minute you drive it off the lot. How’s a 20 percent loss sound to you?</p><p class="" style="white-space:pre-wrap;">You can get a lease for no money down (although it will be more expensive) or little money down. Since you’re not buying the car, you don’t have to invest as much (and you lose less).</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">The Payments are Lower</h3><p class="" style="white-space:pre-wrap;">Lease payments are almost always lower than <a href="https://www.carmax.com/car-financing/car-payment-calculator">car payments</a>. You aren’t paying off the price of the car. You only cover the expected depreciation during the lease term. You’ll also pay interest, taxes, and fees, but the total cost is often much lower than a traditional car payment, giving you more breathing room.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">You Aren’t Affected by Depreciation</h3><p class="" style="white-space:pre-wrap;">Depreciation is the largest downside of buying a car. Like we said before, the minute you drive it off the lot, you lose 20 percent. When you <a href="https://www.truecar.com/l/lease-a-car/">lease</a>, you don’t worry about the depreciation. You only cover the expected deprecation when you sign the lease agreement.</p><p class="" style="white-space:pre-wrap;">If the car depreciates faster than expected, the lender faces the loss, not you. If the car is worth more than expected at the end of the lease, you have the option to buy it. You can then keep it or sell it yourself and make a profit.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Leasing Offers More Stability</h3><p class="" style="white-space:pre-wrap;">Leasing offers you a bit more stability than buying. When you buy, it’s yours no matter what happens. If you lease, you give yourself breathing room. You aren’t stuck with an unaffordable car payment should the economy tank again and you don’t pay the excessive depreciation most cars endured.</p><p class="" style="white-space:pre-wrap;">If you prefer owning, it’s best to buy a used car rather than new. Used cars already experienced a majority of their depreciation, which means you pay a fair price rather than an inflated one. If you’re thinking about a new car, though, leasing is the most affordable way to go. </p><p class="" style="white-space:pre-wrap;"><a href="https://www.linkedin.com/in/rahuldotiyer/">Rahul Iyer</a></p>

Should I Buy or Lease my Next Car?

<p class="" style="white-space:pre-wrap;">Deciding whether you should buy or rent your next home is a big decision. Buying is a big commitment, but renting can feel like a waste of money. The right answer depends on your circumstances. </p><p class="" style="white-space:pre-wrap;">Ask yourself the following questions to decide.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Is This your Forever Home?</h3><p class="" style="white-space:pre-wrap;">Will you live in the home for a long time or is it temporary? If it’s temporary, paying the closing costs that go along with buying a home may not be worth it. Selling in a few years means your home may not appreciate enough to make back the <a href="https://smartasset.com/mortgage/closing-costs">closing costs</a>, which can be as much as 2% - 5% of the loan amount.</p><p class="" style="white-space:pre-wrap;">Now, if you’ll live in the home for a long time, you’ll likely make back the closing costs and then some. Buying when you’ll live in the home for a long time makes more sense since you’ll earn the equity (profit) in the home.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Do you Have the Capital?</h3><p class="" style="white-space:pre-wrap;">Not only do you need a down payment to buy a home, but you need the financial capacity to afford the home’s maintenance, repairs, and regular upkeep. Think about utilities, <a href="https://smartasset.com/taxes/property-taxes">taxes</a>, insurance, and anything that could go wrong with the home.&nbsp;</p><p class="" style="white-space:pre-wrap;">If you’ll borrow 100% of the home’s sales price, plus struggle to keep up with the payments it may make more sense to rent. You won’t start homeownership with any equity and if the upkeep and taxes will make homeownership unaffordable, renting will ensure financial peace.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Do you Move a Lot?</h3><p class="" style="white-space:pre-wrap;">Some people love the freedom of renting. They don’t care that they won’t earn equity in the home. They’d rather have the ability to move after their lease expires, annually or even every couple of years.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Do you Want A sense of Community?</h3><p class="" style="white-space:pre-wrap;">Many people feel like they are a part of the community more when they buy a home. There is something about buying into a neighborhood that makes you feel more vested. You’re more likely to get to know your neighbors, join neighborhood groups, and even do community service. When you rent, you aren’t setting down roots, so it’s harder to feel settled.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Which is Better?</h3><p class="" style="white-space:pre-wrap;">Many people wonder, which is better renting or buying a home? The answer is that it depends. Some people only buy – they want that sense of ownership. Others rent because they don’t want the responsibility.</p><p class="" style="white-space:pre-wrap;">The right answer depends on your needs and capabilities. Can you afford to buy or will it stress you out financially? Do you want the responsibility of maintenance and repairs or would you rather someone else handled them? Would you like to earn <a href="/news-and-blog/different-types-of-equity">equity</a> and use it toward your retirement or even to leave for your heirs or would your rather invest your money in other ways – leaving money rather than a physical asset for your loved ones?</p><p class="" style="white-space:pre-wrap;">Ask yourself these questions as you explore whether renting or buying is better for you, whether this is your first home or a subsequent home. </p><p class="" style="white-space:pre-wrap;"><a href="https://www.linkedin.com/in/rahuldotiyer/">Rahul Iyer</a></p>

Should I Buy or Rent my Next Home?

<p class="" style="white-space:pre-wrap;">The Fed recently announced they would keep rates low (close to 0%) until 2023. They’re doing this to bring back the labor market and economy. While the economy has slightly bounced back and faster than they thought possible, there’s a lot of room for more recovery.</p><p class="" style="white-space:pre-wrap;">So what do the lower rates mean for you?</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Avoid CDs or Lock in Higher Rates Now</h3><p class="" style="white-space:pre-wrap;">If you have money in CDs leave it, but if you’re looking for a place to <a href="/news-and-blog/when-should-i-start-investing">invest</a>, CDs may not be the best place.</p><p class="" style="white-space:pre-wrap;">When the Fed cuts rates, banks pay lower APYs. That means you earn less on your investments. You can find better ways to invest your money, even if it’s in a bond or low-cost ETF. Locking your money in a low paying CD will leave you with little more than you started with.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Refinance your Mortgage</h3><p class="" style="white-space:pre-wrap;">If you still have a mortgage, now is a great time to refinance. With the Fed keeping rates low for the foreseeable future, you don’t have to rush into it, but you may want to consider it.</p><p class="" style="white-space:pre-wrap;">If you have a lot of consumer debt, you could even wrap it into your mortgage, taking advantage of the low rates that are much lower than rates on most <a href="/news-and-blog/credit-cards-how-to-use-them-and-not-let-them-use-you">credit cards</a> and other consumer debt.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Pull your Money out of Savings</h3><p class="" style="white-space:pre-wrap;">If you have money sitting in a savings account, it’s probably making little to no interest. Even an online high-yield savings account won’t pay nearly as much as we’re used to. No matter what, keep your money out of your local bank savings account. If you need some type of savings, look for the highest yield savings account online.</p><p class="" style="white-space:pre-wrap;">Better yet, <a href="/news-and-blog/5-tips-to-invest-successfully-in-uncertain-times">invest the funds</a>. Take advantage of treasury securities, low-cost ETFs, or even stocks. With stock prices lower, you may be able to jump into the market at a good time, and then ride the wave as it recovers (hopefully).</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Ask your Lenders for Lower Rates</h3><p class="" style="white-space:pre-wrap;">Now’s also a great time to negotiate lower rates on consumer debt, especially credit cards. While credit card companies tie your rates to the Prime Rate, they often have a margin they add to it. With rates so low though, they may be more willing to offer lower rates to ‘good customers.’</p><p class="" style="white-space:pre-wrap;">If you pay your bills on time and don’t go over your limit, consider asking for a lower rate. If they say no, look for a 0% APR transfer credit card and move your debt over.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Bottom Line</h3><p class="" style="white-space:pre-wrap;">The Fed lowering rates doesn’t affect consumers directly, but you’ll see the effects in little ways throughout your financial life. Take advantage of the lower consumer debt rates while you can. Get what you need, pay it off at low rates, and hopefully when the crisis ends, we’ll see interest rates rise back up so we can make money on savings and fixed-rate investments. </p><p class="" style="white-space:pre-wrap;"><a href="https://www.linkedin.com/in/rahuldotiyer/">Rahul Iyer</a></p>

The Fed May Lower Rates Until 2023. How Should you Respond?

<p class="" style="white-space:pre-wrap;">If you have a low credit score and need to improve it fast, there is one key area you should focus – your payment history. </p><p class="" style="white-space:pre-wrap;">It makes up the largest percentage of your <a href="/news-and-blog/fico-is-changing-its-credit-score-formula-heres-what-you-need-to-know">credit score</a> – 35 percent and can make even the best credit score fall dramatically overnight. Follow these steps to fix your credit score fast.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Pull your Credit Reports</h3><p class="" style="white-space:pre-wrap;">To fix your credit score, you need to know what’s on your credit report. Everyone gets <a href="http://www.annualcreditreport.com/">free access to their credit reports</a>. Typically, you get one free report per year from each credit bureau (so three total). Until April 2021, though, everyone gets free weekly access from all three bureaus.</p><p class="" style="white-space:pre-wrap;">Pull your report and look at the tradelines carefully, paying close attention to the payment history. </p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Figure out Which Payments are Late</h3><p class="" style="white-space:pre-wrap;">Credit bureaus don’t hit you for a late payment until it’s more than 30 days past due. Your <a href="/news-and-blog/6-credit-score-myths">credit</a> report will clearly show the 30-day late payments. From there, they go in 30-day increments. If you miss one payment for 30 days, but pay it on the 40th day, for example, it becomes current. But, if you let it go past the 60th day, the credit report shows a 60-day late. This is even worse for your credit score.</p><p class="" style="white-space:pre-wrap;">Go through each tradeline and see which accounts must be brought current.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Bring all Payments Current</h3><p class="" style="white-space:pre-wrap;">Once you know the accounts that need your attention, bring them current as quickly as possible. If you can’t pay the full amount, contact your lender right away. Many offer programs to help you get caught up.</p><p class="" style="white-space:pre-wrap;">A few options may include:</p><ul data-rte-list="default"><li><p class="" style="white-space:pre-wrap;">Breaking up the past due amount over a few months to make it more affordable.</p></li><li><p class="" style="white-space:pre-wrap;">Deferring the past due amount and tacking it onto the end of your loan.</p></li><li><p class="" style="white-space:pre-wrap;">Lowering your interest rate to make it more affordable.</p></li></ul><p class="" style="white-space:pre-wrap;">Any agreement you get from the lender, get in writing. They don’t have to follow through if it’s a verbal agreement and you have no recourse without written proof.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Dispute any Incorrect Information</h3><p class="" style="white-space:pre-wrap;">If you’ve gone through your credit report and saw late payments but know you made the payments on time, dispute it.</p><p class="" style="white-space:pre-wrap;">Credit bureaus make mistakes (it’s humans behind the computers). Write a dispute letter stating the issue and provide proof of the timely payment. The credit bureau has 30 days to respond to your dispute. If they find in your favor, they’ll reverse the late payment for you.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Stay on Top of your Debts</h3><p class="" style="white-space:pre-wrap;">Staying on top of your debts is the #1 way to keep your credit score up. One late payment can have devastating effects. If you slip up and pay something late, don’t worry. Just bring it current and keep up with your payments. In a few months, your credit score will rebound. But remember, that 30-day late mark remains on your credit report so lenders will always see your payment patterns. Keep it as timely as possible for the best results. </p><p class="" style="white-space:pre-wrap;"><a href="https://www.linkedin.com/in/rahuldotiyer/">Rahul Iyer</a></p>

The Most 'Impactful' Move you can Make to Improve your Credit Score Fast

<p class="" style="white-space:pre-wrap;">Predatory lending isn’t as common today as it was before the <a href="https://www.federalreservehistory.org/essays/subprime_mortgage_crisis">2008 housing crisis</a>, but it still exists. Understanding what to look for (and not accept) will prevent you from being taken advantage of with predatory lending.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Understanding Predatory Lending</h3><p class="" style="white-space:pre-wrap;">By definition, predatory lending includes any unfair or unscrupulous tactics used to get you to take a loan that you can’t afford. The loan may have excessive costs, unfair terms, or other unfair aspects that many borrowers don’t realize.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">What to Watch Out For</h3><p class="" style="white-space:pre-wrap;">Here’s what to look out for to avoid being taken advantage of with predatory lending:</p><ul data-rte-list="default"><li><p class="" style="white-space:pre-wrap;">Don’t fall for ‘too good to be true’ deals. If something seems off, it probably is. If a lender promises to get you the ‘best’ deal despite your low credit score or they promise to get you an approval and close your loan in a few days – it’s not possible. The lowest <a href="/news-and-blog/6-credit-score-myths">credit score</a> most lenders can accept is 580 and all loans take 30 – 45 days to close.</p></li><li><p class="" style="white-space:pre-wrap;">Not receiving adequate disclosures. If the lender seems to hide the costs or doesn’t openly answer your questions about a loan’s cost, don’t fall for it. By law, you’re entitled to a Loan Estimate three business days after you apply for a loan. The lender must disclose ALL costs on the Loan Estimate and it should match the Closing Disclosure when you close. If not, chances are you’re being taken advantage of.</p></li><li><p class="" style="white-space:pre-wrap;">Ignoring your current debts or credit score. If a lender doesn’t seem concerned with your current credit score, debts, or income, they are likely a predatory lender. They will charge you crazy high-interest rates and upfront fees so it’s impossible to pay it back. They’ll then foreclose on your home and make the money back by selling your home.</p></li><li><p class="" style="white-space:pre-wrap;">Requiring electronic payments. Lenders can OFFER electronic payments, but not require them. If a lender states the only way to pay your mortgage is electronically, run the other way. They are likely a predatory lender and/or trying to steal your bank information.</p></li><li><p class="" style="white-space:pre-wrap;">Not reporting to the credit bureaus. Ask lenders specifically if they report to the credit bureaus. If they don’t, it’s a sign of predatory lending. Most lenders are in the business of helping you build your credit score. This only happens if they report your account to at least one credit bureau. If they don’t, look elsewhere.</p></li></ul><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Predatory Lending is Scary</h3><p class="" style="white-space:pre-wrap;">Even if you have poor credit or a low down payment, you don’t have to be taken advantage of by predatory lending. There are reputable loan programs for everyone. </p><p class="" style="white-space:pre-wrap;">If you have poor <a href="/news-and-blog/fico-is-changing-its-credit-score-formula-heres-what-you-need-to-know">credit</a> or a low down payment, we suggest you take the time to fix it before applying for a loan. The higher your credit score and the more money you have to put down, the better terms you’ll get.</p><p class="" style="white-space:pre-wrap;">If you can’t, don’t settle. Look for a lender that offers fair terms, has reputable reviews, and has at least an ‘A’ rating with the Better Business Bureau. </p><p class="" style="white-space:pre-wrap;"><a href="https://www.linkedin.com/in/rahuldotiyer/">Rahul Iyer</a></p>

What is Predatory Lending?

<p class="" style="white-space:pre-wrap;">Investing during uncertain times is scary. Your heart and gut tell you to pull out of the market. But your brain (and the experts) say otherwise. So what do you do?</p><p class="" style="white-space:pre-wrap;">Use these tops tips to get you through these (and other) uncertain times.</p><p class="" style="white-space:pre-wrap;"><strong>1.&nbsp;&nbsp;&nbsp;&nbsp; Don’t be Fearful</strong></p><p class="" style="white-space:pre-wrap;">This is probably the hardest tip of them all. Don’t fear the ‘uncertain times.’ Don’t focus on the market’s losses. Instead, take advantage of them. Think of this as your opportunity to ‘get in’ to the market. </p><p class="" style="white-space:pre-wrap;">What if you were able to buy into an investment that used to be unaffordable? As <a href="/news-and-blog/how-does-the-stock-market-work">the market</a> improves, you’re right where you wanted to be, but couldn’t afford it before.</p><p class="" style="white-space:pre-wrap;"><strong>2.&nbsp;&nbsp;&nbsp;&nbsp; Diversify</strong></p><p class="" style="white-space:pre-wrap;">This should be your keyword during any time, but definitely during uncertain times. Always diversify your investments or don’t put all your eggs in one basket. When you spread out your investments, you’re less likely to lose it all when one area tanks.</p><p class="" style="white-space:pre-wrap;">Diversifying means buying stocks in different industries as well as spreading out your investments between stocks, bonds, and other assets – don’t put all your money in one type of investment or you risk a total loss.&nbsp;</p><p class="" style="white-space:pre-wrap;"><strong>3.&nbsp;&nbsp;&nbsp;&nbsp; Know your Risk Tolerance</strong></p><p class="" style="white-space:pre-wrap;">Without making emotional decisions, evaluate your portfolio. What’s your risk tolerance? Can you withstand a major loss? In other words, do you have time to make it up? </p><p class="" style="white-space:pre-wrap;">If you’re close to retirement or another major milestone, your risk tolerance is low and you should pull out to preserve your investments. If you’re further away from the ‘event,’ you can stick it out and see what happens, but within reason.</p><p class="" style="white-space:pre-wrap;"><strong>4.&nbsp;&nbsp;&nbsp;&nbsp; Focus on the Long-Term</strong></p><p class="" style="white-space:pre-wrap;">It’s easy to focus on what’s going on right now, especially when it’s not good. But think about the long-term. Where do you stand?</p><p class="" style="white-space:pre-wrap;">Look at it this way – with falling stock prices, you could <a href="/news-and-blog/what-is-value-investing">buy low</a> and hopefully sell high at some point in the future. Isn’t that the point of investing? You could even <a href="/news-and-blog/what-is-dollar-cost-averaging">add to your existing investments</a>, buying the stocks while they are ‘on sale,’ furthering your future earnings.&nbsp;</p><p class="" style="white-space:pre-wrap;"><strong>5.&nbsp;&nbsp;&nbsp;&nbsp; Get Professional Advice</strong></p><p class="" style="white-space:pre-wrap;">No matter what you do, get professional advice to figure out the situation. It’s easier to talk to someone who doesn’t have a vested interest. You obviously have a vested interest as it’s your retirement. </p><p class="" style="white-space:pre-wrap;">Talking to a neutral third party who can help you see the big picture helps. You may make more rational decisions. Who knows, you may even find yourself investing more in the market when you thought you’d pull out entirely.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Don’t Give Up</h3><p class="" style="white-space:pre-wrap;">The bottom line is don’t give up. These are trying times for everyone, but it will work itself out one way or another. While you may not see the large portfolio you want right now, it doesn’t mean you won’t see it in the future. Stick to your plan, bail if you have to, but otherwise, get into the investments that will fuel the big picture. </p><p class="" style="white-space:pre-wrap;"><a href="https://www.linkedin.com/in/rahuldotiyer/">Rahul Iyer</a></p>

5 tips to Invest Successfully in Uncertain Times

<p class="" style="white-space:pre-wrap;">Student loan debt can weigh you down and keep you from other financial milestones, including saving for retirement. If you’re tired of your high student loan balances, use these tips to tackle it fast.</p><p class="" style="white-space:pre-wrap;"><strong>1.&nbsp;&nbsp;&nbsp;&nbsp; Make extra payments</strong></p><p class="" style="white-space:pre-wrap;">Like any loan, you have a minimum required payment. Pay it, of course, but if you can, pay more. You don’t have to pay the same ‘extra’ amount each month. If you have an extra $100 this month and $200 next month, pay what you can. Skip months if you have to, just always make the minimum required payment.</p><p class="" style="white-space:pre-wrap;"><strong>2.&nbsp;&nbsp;&nbsp;&nbsp; Make bi-weekly payments</strong></p><p class="" style="white-space:pre-wrap;">This strategy doesn’t require ‘extra’ money. Split your payment in half and pay that amount every two weeks. Since there are 26 weeks in a year, you’ll make one extra (full) payment every year. </p><p class="" style="white-space:pre-wrap;">Combine this with tip #1 and you’ll get out of student loan <a href="/news-and-blog/what-is-debt-and-how-to-handle-it">debt</a> even faster.</p><p class="" style="white-space:pre-wrap;"><strong>3.&nbsp;&nbsp;&nbsp;&nbsp; Sign up for automatic payments</strong></p><p class="" style="white-space:pre-wrap;">Most student loan lenders give a discount if you sign up for automatic payments. You’ll save around 0.25% on average. It doesn’t sound like much, but every penny adds up, especially in interest. Just make sure your payment date coincides with your pay date so you always have enough funds.</p><p class="" style="white-space:pre-wrap;"><strong>4.&nbsp;&nbsp;&nbsp;&nbsp; Focus on one loan at a time</strong></p><p class="" style="white-space:pre-wrap;">If you’re making extra payments or using any other <a href="/news-and-blog/avalanche-method-vs-debt-snowball-method">strategy</a>, focus on one loan at a time. It’s easy to get overwhelmed and try to pay every loan off faster. Instead, hyper-focus on one loan of choice. Choose the loan with the smallest balance or highest APR – whichever loan makes you lose sleep at night.</p><p class="" style="white-space:pre-wrap;"><strong>5.&nbsp;&nbsp;&nbsp;&nbsp; Use your windfalls</strong></p><p class="" style="white-space:pre-wrap;">Every time you ‘come into money’ pay it toward your student loan debt. Think of things like tax refunds, monetary gifts, and work bonuses. Rather than spending the money pay it directly toward your student loans. Make sure when you do, that you mark it for principal only so it pays your balance down.</p><p class="" style="white-space:pre-wrap;"><strong>6.&nbsp;&nbsp;&nbsp;&nbsp; Refinance IF it makes sense</strong></p><p class="" style="white-space:pre-wrap;">It doesn’t always make sense to <a href="/news-and-blog/what-does-it-mean-to-refinance-a-loan">refinance</a> your student loans. First, if you have federal student loans exhaust all forgiveness options. Not everyone is eligible but if you are, refinancing would remove those benefits.</p><p class="" style="white-space:pre-wrap;">If you don’t have federal loans or aren’t eligible for forgiveness, see how refinancing would help you save money. Don’t look just at the monthly payment. That’s deceiving. Look at the loan’s total cost. Will you save money overall by refinancing?</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Pay your Student Loans off Fast</h3><p class="" style="white-space:pre-wrap;">Student loans don’t have to be a financial burden. Treat them like any other debt, finding ways to pay extra and get out of debt faster. With the right steps, you can pay your loans off faster than the typical 10-year term or worse yet, extending your term and dealing with student debt 20 or 30 years after you graduated. </p><p class="" style="white-space:pre-wrap;">Choose the steps that help you the most and that you can remain the most consistent with to see the greatest changes.</p><p class="" style="white-space:pre-wrap;"><a href="https://www.linkedin.com/in/rahuldotiyer/">Rahul Iyer</a></p>

6 Tips to Tackle Student Loans

<p class="" style="white-space:pre-wrap;">Everyone should brush up on their personal finance knowledge every now and then. Even if you think ‘you’re fine’ there’s always something to learn or ways to improve your financial situation. Personal finance is complicated, ever-changing, and filled with opinions. You never know when you may learn something new, even a small tip that changes the trajectory of your personal finances and helps you become financially free. </p><p class="" style="white-space:pre-wrap;">Here are our favorite personal finance books you should consider.</p><p class="" style="white-space:pre-wrap;"><strong>1.&nbsp;&nbsp;&nbsp;&nbsp; The Total Money Makeover by Dave Ramsey</strong></p><p class="" style="white-space:pre-wrap;">Everyone has heard about him, now it’s time to learn from him. He covers the whole gamut of personal finances, from getting out of debt to building an emergency fund, and living a financially free life.</p><p class="" style="white-space:pre-wrap;">Even if you aren’t in over your head in debt, it’s a great read to learn how to pay off even your mortgage or other ‘common debts’ and prepare for retirement.&nbsp;</p><p class="" style="white-space:pre-wrap;"><strong>2.&nbsp;&nbsp;&nbsp;&nbsp; The Millionaire Next Door by Thomas J. Stanley and D. Danko</strong></p><p class="" style="white-space:pre-wrap;">If you’ve ever wished you could get inside the mind of a millionaire, here’s your chance. The book details how millionaires live (spoiler alert: it may surprise you), and what you can do to follow in their footsteps.</p><p class="" style="white-space:pre-wrap;">The book reads easily and will leave you with ideas and thoughts to get yourself on track to be the millionaire next door too.</p><p class="" style="white-space:pre-wrap;"><strong>3.&nbsp;&nbsp;&nbsp;&nbsp; Spend Well, Live Rich by Michelle Singletary</strong></p><p class="" style="white-space:pre-wrap;">Michelle breaks down spending in a way that doesn’t make you feel like you’re sacrificing, but rather enriching your life. It’s the guide to spending and saving we all wish we had back in our 20s. But, it’s never too late to get yourself on track. Read Michelle’s helpful guide and chances are that you’ll change your <a href="/news-and-blog/4-budgeting-tips">spending habits</a> too.&nbsp;</p><p class="" style="white-space:pre-wrap;"><strong>4.&nbsp;&nbsp;&nbsp;&nbsp; The Simple Path to Wealth by J.L. Collins</strong></p><p class="" style="white-space:pre-wrap;">J.L. Collins wrote letters to his daughter before she was old enough to understand finances and he shares them in this easy-to-read book. In it, he helps anyone (even beginners) learn how to invest, <a href="/news-and-blog/when-should-i-start-investing">where to start</a>, and the right mindset to be in to get through the complicated decisions.&nbsp;</p><p class="" style="white-space:pre-wrap;"><strong>5.&nbsp;&nbsp;&nbsp;&nbsp; Smart Money, Smart Kids by Dave Ramsey and Rachel Cruze</strong></p><p class="" style="white-space:pre-wrap;">If you worry about how to teach your kids about money, let Dave Ramsey and his daughter help with this great book. It’s not a book you’ll read with your kids, but it will guide you in conversations and lessons for your children. You’ll feel better equipped to teach age-appropriate finances, have difficult money conversations, and give your child the knowledge needed to have a financially peaceful adulthood.&nbsp;</p><p class="" style="white-space:pre-wrap;">Reading personal finance books is one of the best ways to stay on top of the latest and greatest advice. Whether you’re investing for the first time, trying to <a href="/news-and-blog/is-a-debt-snowball-or-debt-avalanche-better">get out of debt</a>, or just want to keep your steady wealth growing, there are books out there that are informative, entertaining, and useful in your quest for successful personal finances. </p><p class="" style="white-space:pre-wrap;"><a href="https://www.linkedin.com/in/rahuldotiyer/">Rahul Iyer</a></p>

5 Personal Finance Books Everyone Should Read

<p class="" style="white-space:pre-wrap;">Credit cards have a bad reputation, but they aren’t all that bad. If you know how to use them and not let them use you, they can be a helpful tool in your financial toolbox. </p><p class="" style="white-space:pre-wrap;">So how do you use credit cards the right way? Check out our tips below.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Charge only What You’d Normally Buy</h3><p class="" style="white-space:pre-wrap;">A credit card isn’t an invitation to spend. Only spend when you have the cash to pay for it. If you have a rewards credit card, earn the rewards paying for things you’d normally buy, but pay the bill off in full. Don’t let the bill sit unpaid. The interest charges will send even the most carefully laid budget awry.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Set Alerts for your Payment Due Date</h3><p class="" style="white-space:pre-wrap;">Never pay your credit card bill late. It will cost you as much as $35 just for missing the due date by one day! Not to mention the interest charges that accrue. If you can’t pay it the day the bill arrives (highly suggested), set your calendar so you pay the bill in full before the due date. Don’t wait until the due date, then you’re pressed for time. If you pay it even five minutes past the cutoff time, you’re late.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Watch your Account</h3><p class="" style="white-space:pre-wrap;">Use technology to your advantage. Download your credit card company’s app or log in to your dashboard online. Look at your spending. It’s easy to overspend when you have no idea what you charged last week. Look at it daily. Not only will this keep you accountable, but you’ll also catch any credit card fraud right away.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Use Credit Cards for Large Purchases Only</h3><p class="" style="white-space:pre-wrap;">If you can’t trust yourself to stay within budget using your credit cards for everyday purchases, use it for large purchases only. You’ll get the protection credit cards offer for defective or missing items and you don’t have to carry cash. </p><p class="" style="white-space:pre-wrap;">Don’t make those large purchases if you don’t have the cash, though. Make sure you’ve saved up to pay the bill in full. If not, at the very least, look for a credit card with a 0% APR for the first few months and <a href="/news-and-blog/5-ways-to-manage-your-money-better">budget</a> so you pay the bill in full before interest accrues.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Lock your Credit Cards Up</h3><p class="" style="white-space:pre-wrap;">If you can’t manage your <a href="/news-and-blog/the-dangers-of-credit-card-debt">credit card</a> spending, lock them up. Don’t close them, this hurts your credit score. Instead, put them in a safe, give them to a family member, or hide them in your sock drawer – just don’t use them.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Credit Cards can Be Good</h3><p class="" style="white-space:pre-wrap;">Honestly, credit cards are a great way to earn money back or get great rewards (airline miles, gift cards, etc.) if you use them right. </p><p class="" style="white-space:pre-wrap;">They are also a great way to build up a solid <a href="/news-and-blog/6-credit-score-myths">credit</a> history so when you want something larger, like a mortgage or car loan, you have the history to back you up. Just make sure you know how to use your credit cards responsibly so you don’t get in over your head in debt. </p><p class="" style="white-space:pre-wrap;"><a href="https://www.linkedin.com/in/rahuldotiyer/">&nbsp;Rahul Iyer</a></p>

Credit Cards - How to Use Them and not let them Use You

<p class="" style="white-space:pre-wrap;">Companies sell stocks or shares of their company to raise capital. They sell the shares on the stock market. Investors can buy and sell shares throughout the trading days to build and maintain wealth.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">How the Stock Market Works</h3><p class="" style="white-space:pre-wrap;">The stock market is like an auction. Companies list their stocks and investors bid and buy the shares. When a company first enters the stock market, they issue an Initial Public Offering. The stocks are usually offered at a discounted price but may rise or fall quickly depending on investor reactions (supply and demand).</p><p class="" style="white-space:pre-wrap;">Once stocks are in the market, buyers offer ‘bid prices’ or the price they’re willing to pay and sellers have ‘ask prices’ or the price they want for their shares. Once they agree, a sale is made. Investors can buy and hold, keeping the shares for as long as they want. They can also sell at any time.</p><p class="" style="white-space:pre-wrap;">The higher the demand for a stock, the higher the price goes. The lower the demand, the less sellers can get for the shares.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">How do you Make Money in the Stock Market?</h3><p class="" style="white-space:pre-wrap;">You make money in the stock market when you buy low and sell high. This doesn’t always happen, but it’s the goal.</p><p class="" style="white-space:pre-wrap;">Doing your research, you’ll see a stock’s historical prices. Use this to make investing decisions. Avoiding emotional decisions and either buying on impulse or selling out of fear increases the chance of making money in the stock market. On average, the stock market offers a 9% rate of return over 10 years, which is why it’s smart to invest in stocks you will buy and hold.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Can you Lose Money in the Stock Market?</h3><p class="" style="white-space:pre-wrap;">Everyone can lose money in the stock market and you probably will. The key is to diversify your investments. Don’t put all your money in one stock or completely in stocks. </p><p class="" style="white-space:pre-wrap;">When you diversify, you offset the chance of a total loss. For example, if the stock market crashes, but you have money in bonds or <a href="/news-and-blog/different-types-of-equity">treasury securities</a> too, you won’t lose everything. Even if the stock market does crash, avoid pulling out immediately. Things usually turn around and if you’re using a buy and hold strategy, you should ride out of the storms.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">How can you Invest in Stocks?</h3><p class="" style="white-space:pre-wrap;">You’ll need a ‘stockbroker’ to <a href="/news-and-blog/5-tips-to-invest-successfully-in-uncertain-times">invest</a>, but it’s not what you think. Before the internet, you’d need a human stockbroker and you’d pay high commissions. Today, you can sign up with a discount broker online or even a robo-advisor (computer) for a fraction of the cost (sometimes even $0 commissions).&nbsp;</p><p class="" style="white-space:pre-wrap;">The stock market is a great way to invest at least some of your money. Whether you use a stockbroker, robo-advisor, or you have an <a href="/news-and-blog/should-you-take-advantage-of-your-companies-employee-stock-purchase-plan">Employee Stock Purchase Plan</a> at work, include stocks in your investment plan to increase your wealth, prepare yourself for retirement, and be a part of the success of businesses both small and large. </p><p class="" style="white-space:pre-wrap;"><a href="https://www.linkedin.com/in/rahuldotiyer/">Rahul Iyer</a></p>

How Does the Stock Market Work?

<p class="" style="white-space:pre-wrap;">Every so often FICO changes its credit scoring model. Sometimes it helps consumers and other times it hurts them. </p><p class="" style="white-space:pre-wrap;">The latest changes focus on a consumer’s debt level and that may not be good. Since a <a href="/news-and-blog/the-most-impactful-move-you-can-make-to-improve-your-credit-score-fast">credit score’s</a> job is to help lenders assess risk, the change makes sense. It gives future lenders a better idea of your debt level. If you’re constantly taking on more debt, your credit score will fall.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">How Personal Loans Affect your Credit Score</h3><p class="" style="white-space:pre-wrap;">Before, personal loans were just another installment loan on your credit report. They worked into your payment history like any other loan. They also affect your credit mix – which was a good thing if you had installment and revolving debt, not just one or the other.</p><p class="" style="white-space:pre-wrap;">Now, the credit scoring model looks at personal loans more closely. They determine if you took out the personal loan to consolidate your existing consumer debt. If you then rack up more credit card debt, it negatively affects your credit score.</p><p class="" style="white-space:pre-wrap;">If you take out a personal loan to consolidate debt, you should lock up your <a href="/news-and-blog/credit-cards-how-to-use-them-and-not-let-them-use-you">credit cards</a>, not rack up more debt.</p><p class="" style="white-space:pre-wrap;">If you rack up more debt, you’re a higher risk and your credit score will show it.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Payment History Still Matters Too</h3><p class="" style="white-space:pre-wrap;">Consumers with already low credit scores who pay their bills late will also see a larger drop in their credit scores. The new credit model creates quite a difference between good and bad credit. </p><p class="" style="white-space:pre-wrap;">Poor credit habits will be easy to spot in a credit score now. Before, they were obvious, but you had to look at the <a href="/news-and-blog/6-credit-score-myths">credit history</a> rather than the score. If you brought your payments current, your score would increase quickly.</p><p class="" style="white-space:pre-wrap;">This wasn’t a fair representation of your credit history, though. The new credit scoring model fixes this, giving lenders a better idea of your level of financial responsibility.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">What you can Do</h3><p class="" style="white-space:pre-wrap;">Fortunately, you control how the new credit scoring model affects you.</p><ul data-rte-list="default"><li><p class="" style="white-space:pre-wrap;">Pay your bills on time – It’s always been important to pay your bills on time, but your credit score relies on it even more now. Don’t take on debts you can’t pay.</p></li><li><p class="" style="white-space:pre-wrap;">Keep your debt utilization rate low – Don’t overcharge your credit cards. Keep your balances at 30 percent or less of the credit line.</p></li><li><p class="" style="white-space:pre-wrap;">Watch your personal loans – If you use a personal loan to consolidate debt, don’t use your credit cards. Lock them up and don’t use them until you pay off your personal loan.</p></li></ul><p class="" style="white-space:pre-wrap;">These steps will lessen the effect you feel from the new credit scoring model. While it’s true the new model helps consumers with great credit and hurts those with bad credit, it all comes down to your credit habits. You’re in control of what your credit score says about you. Adopt good credit habits today and watch your credit score rise. </p><p class="" style="white-space:pre-wrap;"><a href="https://www.linkedin.com/in/rahuldotiyer/">Rahul Iyer</a></p>

FICO is Changing its Credit Score Formula - Here's What you Need to Know

<p class="" style="white-space:pre-wrap;">This loan type is usually offered to individuals who do not meet the criteria of prime-rate loans. Prime-rate loans refer to loans issued by companies that are offered to corporations who are considered to be credit-worthy. It is often the case that individuals who secure subprime loans have been rejected by traditional financial institutions because of their unsatisfactory credit ratings and other factors.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">How Prime Rates and Subprime Lending Works</h3><p class="" style="white-space:pre-wrap;">The rate that are ultimately offered on subprime loans are somewhat influenced by the interest rate offered on prime loans. The interest rates offered on prime loans are based on the Federal funds rate. This rate was established by the Federal Reserve Bank’s Federal Open Market Committee. Banks usually lend each other money based on this interest rate.&nbsp;</p><p class="" style="white-space:pre-wrap;">In an effort to combat the economic impact of the COVID-19 pandemic, the Federal Reserve reduced the target range for the Federal funds rate to 0% to 0.25%. Historically, the prime rate has been set to 300 basis points above the rate set by the Federal Reserve. This means that the prime rate is about 3.25% since the passing of the COVID-19 strategic financial measures.</p><p class="" style="white-space:pre-wrap;">Prime rate ultimately influences the <a href="/news-and-blog/compound-interest-vs-simple-interest-whats-the-difference">interest</a> rates that borrowers receive from banks. It is normally the case where corporations and other financial institutions benefit from rates that are similar are equivalent to the prime rate. Other forms of <a href="/news-and-blog/personal-loans-vs-credit-cards">loans</a> such as mortgages, small business loans, and car loans are issued at higher rates than the prime rate; however, these rates are influenced by the prime rate. Loan applicants with unfavorable credit history and other undesirable factors receive rates that are much higher than the prime rate. This is where the phrase “subprime” comes from.</p><p class="" style="white-space:pre-wrap;">There isn’t a set rate for subprime loans. Different lenders have different criteria and judgment that they use to determine the interest rate that they will offer on a subprime loan. This means that an individual in search of a subprime loan should do some amount of shopping around to find the rate that is right for him or her.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Final Thoughts</h3><p class="" style="white-space:pre-wrap;">Maintaining a positive credit report and great <a href="/news-and-blog/5-factors-that-affect-your-credit-score">credit score</a> is key to affordable borrowing; however, there are cases where bad financial decisions cause great damage to one’s credit history. When these things happen, you may end up being forced to negotiate a subprime loan. It is important that you do all that is necessary to avoid taking out large loans at subprime rate.</p><p class="" style="white-space:pre-wrap;">Large subprime loans can be difficult to repay for low-income borrowers. The risk of taking out a large subprime loan such as a mortgage as a low-income borrower is best captured by what took place in 2007. That year, a number of subprime loan borrowers who held mortgages started to default. Experts suggest that this was a major contributing factor to the financial crisis and the Great Recession of 2008.</p><p class="" style="white-space:pre-wrap;"><a href="https://www.linkedin.com/in/rahuldotiyer/">Rahul Iyer</a></p>

What is Subprime Lending?

<p class="" style="white-space:pre-wrap;">One of the documents that you must learn how to develop as a business owner or investor is a balance sheet. This document is also important for individuals who desire to properly manage their personal finances. A balance sheet is a statement of the financial position of a business. This statement includes assets, liabilities and owner’s equity at a given time.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">The Importance of a Balance Sheet</h3><p class="" style="white-space:pre-wrap;">There are three financial statements that are used to illustrate the financial health of a business. A balance sheet is the most important of the bunch. The other statements are the cash flow statement and the income statement (some refer to this as the profit and loss statement).&nbsp;</p><p class="" style="white-space:pre-wrap;">Business stakeholders and analysts assess the performance and financial status of an entity by analyzing its <a href="https://www.investopedia.com/terms/b/balancesheet.asp#:~:text=Key%20Takeaways-,A%20balance%20sheet%20is%20a%20financial%20statement%20that%20reports%20a,used%20to%20evaluate%20a%20business.">balance sheet</a>. This statement gives a clear picture of a company’s ability to pay for its operating needs. A balance sheet also gives a company insight into what strategies should be taken to use credit in a way that is compatible with the company’s position.</p><p class="" style="white-space:pre-wrap;">Some balance sheets also feature information from previous periods. This enables business operators and other analysts to analyze trends and make valuable comparisons. Business operators can easily get a picture of their company’s performance. By assessing your balance sheet, you will be able to see where your company needs to improve.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">What’s Included on a Balance Sheet?</h3><p class="" style="white-space:pre-wrap;">What is included on a balance sheet will be different depending on the industry in which your company operates. Generally, there are three different sections on a balance sheet.</p><p class="" style="white-space:pre-wrap;"><strong>Assets: </strong>This section of the balance sheet is usually divided into two sections – liquid assets and non-liquid assets. Liquid assets refer to things such as cash or other assets that can be easily converted to cash. Non-liquid assets refer to assets that are not as easily converted to cash such as land, buildings, and equipment.</p><p class="" style="white-space:pre-wrap;"><strong>Liabilities: </strong>Funds owed by a business are referred to as liabilities. This section is divided into current and long-term liabilities. Funds owed that must be cleared in less than a year are referred to as current liabilities while those that go beyond a year are classified as long-term liabilities.</p><p class="" style="white-space:pre-wrap;"><strong>Equity: </strong>This is referred to as owners’ <a href="/news-and-blog/different-types-of-equity">equity</a> or shareholders’ equity. This is what is left after liabilities are deducted from assets. You will also see an item on balance sheets titled retained earnings. This refers to company earnings that are not paid out to shareholders in the form of <a href="/news-and-blog/5-best-dividend-aristocrats">dividends</a>.</p><p class="" style="white-space:pre-wrap;"><strong>&nbsp;</strong></p><h3 style="white-space:pre-wrap;">What is the State of Your Balance Sheet?</h3><p class="" style="white-space:pre-wrap;">If you are a business operator and you cannot easily answer this question, you should address this quickly. Many only have a balance sheet drafted when they are seeking financing; however, a balance sheet is much more important than that. Keep a track of the performance of your business and maintain a balance sheet and the other two important statements.</p><p class="" style="white-space:pre-wrap;"><a href="https://www.linkedin.com/in/rahuldotiyer/">Rahul Iyer</a></p>

What is a Balance Sheet?

<p class="" style="white-space:pre-wrap;">You should start investing as soon as possible. Many will say you should invest right now no matter your financial position, but we try to be as practical as possible here. There are a few boxes that you must check off before you begin investing. Two of the most critical things that must be done before investing are clearing all your high-interest debt and establishing an emergency fund.&nbsp;</p><p class="" style="white-space:pre-wrap;">If you have already <a href="https://www.lendtable.com/news-and-blog/should-i-save-before-i-pay-down-my-debt">cleared all your high-interest debt</a> and have at least three months of your living expenses stored up, you should begin investing right away. This applies to any age group. You could start investing as early as 12. It is also important to note one is never too old to <a href="https://www.lendtable.com/news-and-blog/what-is-value-investing">invest</a>.</p><p class="" style="white-space:pre-wrap;"><strong>&nbsp;</strong></p><h3 style="white-space:pre-wrap;">What is Investing?</h3><p class="" style="white-space:pre-wrap;">The process of buying an asset that is projected to increase in value over time is referred to as Investing. An investment is not limited to buying and selling stocks on the stock market. You could purchase a baseball card, an antique car, or something else that will grow in value and bring returns when you decide to sell.</p><p class="" style="white-space:pre-wrap;">When it comes to investing, the most prominent practice is buying and selling securities. This includes such things as stocks, bonds, and mutual funds. Money is made when the securities held grow in value over time and are sold for a price higher than it was purchased for.</p><p class="" style="white-space:pre-wrap;"><strong>&nbsp;</strong></p><h3 style="white-space:pre-wrap;">Where to Start?</h3><p class="" style="white-space:pre-wrap;">Once upon a time, investing was a very technical thing. These days, investing is a simple task. You can use online brokers, convenient investment mobile phone apps, or a 401(k) plan. This makes investment accessible to all.</p><p class="" style="white-space:pre-wrap;">While investing in the stock market is simple these days, this does not remove each investor’s obligation to get educated on the principles of investing. To be a successful investor, you must gain an understanding of the different securities available. Below are the most common forms of <a href="https://www.lendtable.com/news-and-blog/stocks-bonds-and-mutual-funds-explained">investments</a>.</p><p class="" style="white-space:pre-wrap;"><strong>Stocks</strong>: Stocks represent ownership in a company or group of companies. These are usually secured on the public market. Investors are permitted to buy several shares of stock in a company. As the value of each share increases the value of your ownership in the company increases. Of course, there is also the chance of it reducing in value.</p><p class="" style="white-space:pre-wrap;">It can take some time to benefit from this investment option, but there are cases when sudden changes in a company’s standing can cause significant gains. You do not always need a lot of money to buy stocks. These days you can even buy a fraction of a company’s share.</p><p class="" style="white-space:pre-wrap;"><strong>Bonds</strong>: Bonds include lending money to a government entity or a company. In return, they pay you interest on the money that you loaned them through your bond investment. These securities are usually issued for a specified period. At the end of this period or at its maturity date, you will get back your investment as well plus the interest that accrued over time.</p><p class="" style="white-space:pre-wrap;">This investment option usually offers lower rates of return. Nonetheless, bonds are far less volatile than other securities.</p><p class="" style="white-space:pre-wrap;"><strong>Index and Mutual Funds</strong>: Index and mutual funds pool money from different investors and then invest the funds in different investment vehicles. Index funds are tied to prominent indexes such as the S&amp;P 500. This means that the stocks that constitute the index fund are very similar to those that make up such <a href="https://www.lendtable.com/news-and-blog/the-three-stock-indices-dow-jones-sampp-500-nasdaq-what-is-the-difference">indexes</a> as the S&amp;P 500.</p><p class="" style="white-space:pre-wrap;">Index funds are advantageous because they allow investors to diversify their investments without having to go through the hassle of buying and managing individual securities.</p><p class="" style="white-space:pre-wrap;">We encourage you to begin investing as soon as you can. So long as you have cleared the criteria established earlier in this article, you should begin the process of investing your money. It does not matter how much money you have available. All that matters is that you get started.</p><p class="" style="white-space:pre-wrap;"><a href="https://www.linkedin.com/in/rahuldotiyer/">Rahul Iyer</a></p>

When Should I Start Investing?

<p class="" style="white-space:pre-wrap;">There are several budgeting rules out there that are geared towards helping you to achieve financial stability and ultimately financial freedom. The 50/20/30 budget is one such plan that many are using to manage their finances across America. This budgeting plan was made popular by Senator Elizabeth Warren, a Harvard bankruptcy expert. She wrote about it in her book <em>All Your Worth: The Ultimate Lifetime Money Plan</em>.</p><p class="" style="white-space:pre-wrap;">The 50/20/30 <a href="https://www.lendtable.com/news-and-blog/the-basics-of-budgeting">budgeting</a> rule gives a very simple formula for handling your money. To follow this rule, you should spend no more than 50% of your after-tax income on your needs and 30% on your wants. The remaining 20% of your after-tax income should be put aside and saved.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Your Needs (50%)</h3><p class="" style="white-space:pre-wrap;">Needs refer to those expenses that you must cover to sustain yourself. This category includes rent or mortgage, car payments, groceries, insurance, health care, debt obligations, and utilities. This category deals with those things that you must have. Things such as your Netflix subscription and dining out do not fall within this category.</p><p class="" style="white-space:pre-wrap;">No more than half of your after-tax income should be spent on this category. If you are currently above this in your monthly spending. You can fit into the 50/20/30 rule by readjusting your obligations over time. This will take some strategic planning and patience, but it is achievable.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Your Wants (30%)</h3><p class="" style="white-space:pre-wrap;">This speaks to those expenses you have that you can certainly live without, but that you enjoy. This speaks to recreational activities such as going to the theatre or dinner. Things such as electronic gear that is not related to work activities, seats at a sporting event, and ultra-high-speed internet fall into this category. The primary characteristic of wants is that they are optional. While health is critical, going to the gym is also classified as a want. Why? Because you can choose to work out at home and follow a YouTube workout plan.</p><p class="" style="white-space:pre-wrap;">&nbsp;Wants also to speak to how you address needs. If you need housing but want a house with a large pool and a theatre, you have pushed the need into the realm of wants. Also, if you choose to purchase a Range Rover instead of a Hyundai, you have moved your transportation need to a want. All the extras or enhanced things that you desire that are not needed are considered wants. To effectively follow this rule, you must keep your spending on wants within 30% of your after-tax income.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Your Savings (20%)</h3><p class="" style="white-space:pre-wrap;">The final aspect of the 50/20/30 rule that must be addressed is the percentage of your income that should go to <a href="https://www.lendtable.com/news-and-blog/3-retirement-savings-tips-for-millennials">savings</a>. This is the first thing that must be done when your after-tax income hits your bank account. Financial experts have long advised people trying to build wealth to pay themselves first by putting away some money before dealing with any other expenses.</p><p class="" style="white-space:pre-wrap;">Savings include money that you place in your emergency fund and contributions to an IRA or 401(k) plan. Other investments fall within this category as well. It is important that you have at least three months of emergency saving to deal with any unexpected financial issues. When that is settled, you can begin focusing on retirement and your other financial goals.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Conclusion</h3><p class="" style="white-space:pre-wrap;">The 50/20/30 rule can help you to get your finances in order. Adopting this pattern will ensure that you have savings. Many argue that saving is difficult; however, those who have faced difficulties in life and those who have been able to capitalize on investment opportunities will tell you that saving is critical.&nbsp;</p><p class="" style="white-space:pre-wrap;">It may take a while for you to adjust to this budgeting rule, but <a href="https://www.lendtable.com/news-and-blog/8-things-that-wealthy-people-do-that-others-dont">if you stick to it, you can achieve it</a>.</p><p class="" style="white-space:pre-wrap;"><a href="https://www.linkedin.com/in/rahuldotiyer/">Rahul Iyer</a></p>

The 50/20/30 Budget

<p class="" style="white-space:pre-wrap;">Types of equity refer to the different categories of shares or ownership available in a company. Large companies will offer different levels of equity. This is done to appeal to people of different income levels. Some of the most common forms of equity are common stock, preferred shares, contributed surplus, retained earnings, and treasury stock. In this article, we will discuss each.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Equity Explained</h3><p class="" style="white-space:pre-wrap;">The ownership that an investor holds in a corporation is referred to as equity. After corporations clear their financial obligations or debts, the income is then divided into shares.&nbsp;</p><p class="" style="white-space:pre-wrap;">The value of a share or equity is based on a number of factors. The earning potential of the business is critical to determining the value of its equity. Here are some of the factors considered when determining a company’s earning potential:</p><ul data-rte-list="default"><li><p class="" style="white-space:pre-wrap;">The economic conditions in which the corporation operates</p></li><li><p class="" style="white-space:pre-wrap;">National and international economic climate</p></li><li><p class="" style="white-space:pre-wrap;">The corporations forecasted earnings</p></li><li><p class="" style="white-space:pre-wrap;">The projected growth of the corporation</p></li><li><p class="" style="white-space:pre-wrap;">Where the entity is in terms of development</p></li><li><p class="" style="white-space:pre-wrap;"><a href="https://www.investopedia.com/terms/r/ratioanalysis.asp#:~:text=Ratio%20analysis%20is%20a%20quantitative,cornerstone%20of%20fundamental%20equity%20analysis.">Financial ratio analysis</a>&nbsp;</p></li></ul><p class="" style="white-space:pre-wrap;">Let us discuss some of the common forms of equity.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">What is Common Stock?</h3><p class="" style="white-space:pre-wrap;">This is also referred to as common shares. This represents ownership of a corporation. Common stockholders are given the right to vote and an obligation to certain assets of the company. The value of common shares is determined by multiplying the par value of the stock by the total number of outstanding shares. Company earnings are distributed to common shareholders through capital gains and dividends.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">What is Preferred Stock?</h3><p class="" style="white-space:pre-wrap;">These are shares offered to investors by entities with established dividends and common stocks. If a company falls into financial challenges, preferred stock <a href="/news-and-blog/5-best-dividend-aristocrats">dividends</a> are typically issued before common shares. Many companies give the holders of preferred stock added benefits to entice investors.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">What is Contributed Surplus?</h3><p class="" style="white-space:pre-wrap;">When investors pay more than the par value of a given share, this is called a contributed surplus. Another name for this is additional paid-in capital. This amount fluctuates based on the company’s performance.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">What are Retained Earnings?</h3><p class="" style="white-space:pre-wrap;">Company Earnings that are not paid out to their various stakeholders in the form of dividends are referred to as <a href="https://www.investopedia.com/terms/r/retainedearnings.asp">retained earnings</a>. In other words, retained earnings refer to money that a corporation keeps after they would have fulfilled all financial obligations. This money is either reinvested or saved for future use.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">What is Treasury Stock?</h3><p class="" style="white-space:pre-wrap;">When a company buys back equity from common stockholders this is referred to as treasury shares. The value of these shares is noted in an account called treasury stock.</p><p class="" style="white-space:pre-wrap;">&nbsp;There are other forms of equity such as private equity, home equity, brand equity, and others.</p><p class="" style="white-space:pre-wrap;"><a href="https://www.linkedin.com/in/rahuldotiyer/">Rahul Iyer</a></p>

Different Types of Equity

<p class="" style="white-space:pre-wrap;">A money market account is similar to a savings account, but it has some checking features. These accounts usually offer checks and a debit card. Money market accounts typically allow a limited amount of transactions monthly. Money market accounts once offered higher interest rates for account holders than standard savings accounts; however, this advantage is beginning to disappear as the interest rates offered by money market accounts are getting closer to savings accounts.</p><p class="" style="white-space:pre-wrap;">While savings accounts are far more popular than money market accounts, both accounts have the same low-level of risk. Money market accounts are insured by the Federal Deposit Insurance Corporation and the National Credit Union Administration depending on whether it is being offered by a bank or a credit union. This means that your deposits will be safe even if the company suddenly falls into difficulties.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">The Advantages of Money Market Accounts</h3><p class="" style="white-space:pre-wrap;">Access to the funds in your money market account is a little easier since you are able to use checks or a debit card. These two options make a money market account more useful in emergencies than standard savings accounts.</p><p class="" style="white-space:pre-wrap;">While the interest rates for money market accounts are not as great as they were in the past, they are still better than the average checking account. This means that your money will be much more likely to survive the attacks of inflation in a money market account.</p><p class="" style="white-space:pre-wrap;">As mentioned before, your money will remain safe even if the institution with which you have your money market account goes under. This is so because money market accounts are also insured by the Federal Deposit Insurance Corporation.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">The Disadvantages of Money Market Accounts</h3><p class="" style="white-space:pre-wrap;">Since you have more than one way that you can use to spend funds in a money market account, it makes spending money a little too easy. This can be a challenge for people who are not very disciplined with the <a href="https://www.lendtable.com/news-and-blog/4-budgeting-tips">management of their funds</a>.&nbsp;</p><p class="" style="white-space:pre-wrap;">Another disadvantage of maintaining a money market account is that they usually require higher minimum balances to avoid fees. You usually need more money to open money market accounts than you would need for a <a href="https://www.lendtable.com/news-and-blog/the-differences-between-a-checking-savings-and-money-market-account">savings account or regular checking account</a>.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Which to Choose? Savings Account or Money Market Accounts?</h3><p class="" style="white-space:pre-wrap;">If your bank offers both savings accounts and money market accounts, you may be wondering which to choose. You may want to stick to a savings account to avoid the high amount that it takes to keep money market accounts active without fees. On the other hand, if the money market accounts that you are considering offers a higher <a href="https://www.lendtable.com/news-and-blog/compound-interest-vs-simple-interest-whats-the-difference">interest</a> rate than the savings account, you could consider going with the money market account.</p><p class="" style="white-space:pre-wrap;"><a href="https://www.linkedin.com/in/rahuldotiyer/">Rahul Iyer</a></p>

What is a Money Market Account?

<p class="" style="white-space:pre-wrap;">Momentum investing refers to the practice of buying more of your best-performing assets. Instead of buying low and selling high, you keep what increases in value and sell assets that do not perform. The philosophy that drives this investment strategy is that proven trends will continue; therefore, putting more money into high-performing stocks will be likely to bring positive returns.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">How Momentum Investing Works</h3><p class="" style="white-space:pre-wrap;">It is relatively easy to apply this strategy to your investment portfolio. An investor simply needs to identify which stocks in his or her portfolio are doing well. While this has its benefits, it can be a tedious task. Most people do not have the time, energy, or skills needed to determine which stocks are doing well in their portfolio. Momentum investing can get technical. This is the case when the strategy is being applied using complex technical indicators to identify which stocks are the top-performing assets.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">A Brief History of Momentum Investing</h3><p class="" style="white-space:pre-wrap;">There is no evidence that points to the originator of this investment strategy. An example of the strategy was uncovered in 1993. In 1993, there was a publication in the Journal of Finance in that year mentioned that if investors decided to purchase stocks that performed well in the past and disposed of stocks that were losing, they would position themselves for extravagant returns between 1965 and 1989.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Is Momentum Investing Effective?</h3><p class="" style="white-space:pre-wrap;">There are a number of expert investment managers who do not readily support the use of momentum investing. They believe that selecting individual <a href="https://www.lendtable.com/news-and-blog/stocks-bonds-and-mutual-funds-explained">stocks</a> based on an assessment of discounted cash flow and other critical factors usually produce results that can be easily predicted. Experts suggest that this practice is a better method for beating the <a href="https://www.lendtable.com/news-and-blog/the-three-stock-indices-dow-jones-sampp-500-nasdaq-what-is-the-difference">index</a> performance.</p><p class="" style="white-space:pre-wrap;"><strong>&nbsp;</strong></p><h3 style="white-space:pre-wrap;">The Risks of Momentum Investing</h3><p class="" style="white-space:pre-wrap;">There are some risks involved in applying this strategy. Below are a number of them that you should consider.<strong>&nbsp;</strong></p><p class="" style="white-space:pre-wrap;"><strong>Turnover: </strong>Momentum investing usually produces a high amount of turnover. This usually results in a few implications. Trading costs are one of these implications.</p><p class="" style="white-space:pre-wrap;"><strong>Taxes: </strong>As established, this method of<strong> </strong>investing typically results in <a href="https://www.lendtable.com/news-and-blog/understanding-long-term-vs-short-term-capital-gains-tax">high turnover</a>, this turnover makes this strategy highly tax-inefficient.<strong>&nbsp;</strong></p><p class="" style="white-space:pre-wrap;"><strong>The Risk of Implementation: </strong>Since there are so many aspects to monitor in the process of implementing this strategy, you expose yourself to more opportunities to make a bad choice.</p><p class="" style="white-space:pre-wrap;"><strong>Market Transitions: </strong>From time to time, the leader in the market changes. Sine momentum investing may not move as quickly, there can be challenges during times when these changes happen.</p><p class="" style="white-space:pre-wrap;"><strong>Momentum Crashes</strong>: History has taught us that from time to time, momentum can make a huge shift. This risk can result in you losing a lot of money.</p><p class="" style="white-space:pre-wrap;"><a href="https://www.linkedin.com/in/rahuldotiyer/">Rahul Iyer</a></p>

What is Momentum Investing?

<p class="" style="white-space:pre-wrap;">When deciding where you will keep your money there are a number of options. You could opt for the typical savings account that offers you a safe place to keep your money that offers an interest rate. You could consider a checking account which enables you to make payments with check in addition to swiping a card and using cash. Another common option is a money market account. In this article, we will discuss the difference between these three options.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Savings Accounts Explained</h3><p class="" style="white-space:pre-wrap;">A savings account is an account held at a bank that offers <a href="https://www.lendtable.com/news-and-blog/compound-interest-vs-simple-interest-whats-the-difference">interest</a> that helps to grow your savings. This is a feature of most banks. It is important to note that the interest rate that you will receive varies from bank to bank. It is often possible to increase your interest rate by having a checking account at the same bank you have your savings account.&nbsp;</p><p class="" style="white-space:pre-wrap;">It is possible to find savings accounts that have high interest rates and favorable bank fees. Some charge no fees at all. This is important because fees can reduce your <a href="https://www.lendtable.com/news-and-blog/how-inflation-impacts-your-savings">savings</a> over time.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Money Market Accounts Explained</h3><p class="" style="white-space:pre-wrap;">A <a href="https://www.lendtable.com/news-and-blog/what-is-a-money-market-account">money market account</a> is a combination of a savings account and a checking account. Money market accounts typically offer higher interest rates than savings and checking accounts. Of course, this is dependent on what the bank you are working with offers.&nbsp;</p><p class="" style="white-space:pre-wrap;">With a money market account, you are normally given an ATM card and the ability to write checks. These two options make it easier to access your money than a standard savings account. Bear in mind that not all money market accounts have these features. In some cases, you must request the checks or card.</p><p class="" style="white-space:pre-wrap;">One challenge that most savers have with money market accounts is that they usually require a sizable amount to open. These accounts also feature a required minimum balance that you must maintain in order to escape bank fees.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Checking Accounts Explained</h3><p class="" style="white-space:pre-wrap;">A checking account is an account held at a bank that gives you the opportunity to withdraw and deposit funds. These accounts are also called transactional accounts or demand accounts. Checking accounts offer a high level of liquidity. You can access your money by way of checks, automated teller machines, and electronic debit cards.&nbsp;</p><p class="" style="white-space:pre-wrap;">One of the major differences between a checking account and a savings account is that it allows several withdrawals and does not place a cap on deposits. Savings accounts, on the other hand, tend to have limits on withdrawals and deposits. Checking accounts do not feature high minimum balances like money market accounts. A money market account usually has a limit on the number of transactions that you can make.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Final Thoughts</h3><p class="" style="white-space:pre-wrap;">Savings accounts, checking accounts, and money market accounts all have their own advantages and disadvantages. In deciding which one to open, you must consider your spending habits and your financial goals.</p><p class="" style="white-space:pre-wrap;"><a href="https://www.linkedin.com/in/rahuldotiyer/">Rahul Iyer</a></p>

The Differences Between a Checking, Savings, and Money Market Account

<p class="" style="white-space:pre-wrap;"><em>By Rahul Iyer</em></p><p class="" style="white-space:pre-wrap;">It is important that investors have the ability to assess the health of the market. There are three market indices that investors can use to do this. These are the Dow Jones Industrial Average, the Nasdaq, and the S&amp;P 500. Let us take a look at how these indices work and how they can help investors.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">The Dow Jones</h3><p class="" style="white-space:pre-wrap;">This is the most followed stock market index. The Dow Jones Industrial Average index is also one of the longest standing indexes in America. 30 large-cap companies are monitored by this index. These companies cover every sector of American business. What makes the Dow so popular is that they have these large companies which effectively represents the economy of the United States. The companies that are tracked by the Dow are household names that Americans know and trust.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">The S&amp;P 500&nbsp;</h3><p class="" style="white-space:pre-wrap;">The S&amp;P 500 operated differently from the Dow Jones. They monitor the largest companies that trade on the New York Stock Exchange or Nasdaq Stock Market. They have certain criteria that they follow to qualify the companies that they monitor. The companies that they follow must have a <a href="https://www.investopedia.com/terms/m/marketcapitalization.asp">market cap</a> that is above $5 billion. To qualify for the S&amp;P 500, the company must also have at least 50% of its stock on the public market.</p><p class="" style="white-space:pre-wrap;">This index tracks 500 companies in comparison to the 30 that is followed by the Dow Jones. The S&amp;P covers a larger percentage of the U.S. economy. S&amp;P does not look too closely at the price of the stock, but it focuses on the actual size of the company in the market.&nbsp;</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">The Nasdaq Composite</h3><p class="" style="white-space:pre-wrap;">The Nasdaq composite is not the same thing as the Nasdaq (NASDAQ:NDAQ), which is similar to the New York Stock Exchange. The Nasdaq Composite is another index that is based on more than 4,000 <a href="https://www.lendtable.com/news-and-blog/stocks-bonds-and-mutual-funds-explained">stocks</a> that are being traded on the Nasdaq Stock Exchange. This proxy is great for checking the health of the technology sector of the market. This is so because most of the companies trading on this exchange are actually technology companies. Similar to the S&amp;P 500, the Nasdaq Composite is weighted by market cap as opposed to pricing.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">The Sum Up</h3><p class="" style="white-space:pre-wrap;">These market indexes are useful for assessing the health of <a href="https://www.investopedia.com/terms/f/financial-market.asp#:~:text=Financial%20markets%20refer%20broadly%20to,smooth%20operation%20of%20capitalist%20economies.">financial markets</a>. The most prominent indexes in the United States are the Dow Jones Industrial Average, the S&amp;P 500, and the Nasdaq composite. It is important to note that these companies are not the only indexes in America. There is also the Wilshire 5000, the Russell 2000, and the Russell 3000.</p><p class="" style="white-space:pre-wrap;"><a href="https://www.linkedin.com/in/rahuldotiyer/">Rahul Iyer</a></p>

The Three Stock Indices: Dow Jones, S&P 500, Nasdaq. What is the Difference?

<p class="" style="white-space:pre-wrap;">Unfortunately, the pandemic continues to rage on, and the economy is under pressure. As a result of this, investors are becoming more and more concerned about the fees that they are paying for the management of their retirement investments. While you should not panic like those who bought loads of toilet paper at the beginning of the pandemic, you should indeed consider the fees of your 401(k) plan. If these are not kept in check, your retirement savings could suffer.</p><p class="" style="white-space:pre-wrap;">The economic impact of COVID-19 is affecting retirement savers and retirees in several ways. Stock and bonds <a href="https://www.lendtable.com/news-and-blog/how-do-401ks-deal-with-market-downturns">market returns have dipped</a>, and the market continues to be highly volatile. Other factors that will result in retirement savings being affected in this time include the fact that people may be forced to tap into their 401(k) plans for loans or a <a href="https://www.lendtable.com/news-and-blog/401k-loan-vs-401k-hardship-withdrawal-which-is-right-for-me">withdrawal</a> to stay afloat. Some have also lost their jobs or have been furloughed which will ultimately result in delayed contributions.</p><p class="" style="white-space:pre-wrap;">In this time, paying attention to fees can mean much more money in your retirement savings in the future. By simply cutting off 0.5% off your fee rate, can make a big difference.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">How to Reduce 401(k) Fees</h3><p class="" style="white-space:pre-wrap;">The first step to reducing your fees is actually knowing what they are. You can learn this by asking your employer. This information is disclosed by the employer on an annual basis, but they will be able to share with you how much it is costing you personally. Do not feel as if you are out of order to ask about the fees. It is mandated by law that they share with you what is being deducted from your account for administration, record-keeping, legal, and money management expenses.</p><p class="" style="white-space:pre-wrap;">After you would have learned what your fees are, you must now move on to comparing them. A great tool that you can use to do this is BrightScope. This resource helps you to compare your fees based on the size and total assets of your plan. Another effective tool to use for fee analysis is the Financial Industry Regulatory Authority’s Fund Analyzer.</p><p class="" style="white-space:pre-wrap;">After analyzing your fees and comparing it with other options, you will need to approach the administrator of your plan. Share with them the work that you have done and what you have discovered. Request that they find lower-cost vendors. Because of how competitive the 401(k) business is, it is fairly easy to <a href="https://www.lendtable.com/news-and-blog/who-is-the-best-401k-provider">find a company</a> with lower fees.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">A Word of Caution</h3><p class="" style="white-space:pre-wrap;">As we have shared, it is wise to consider your 401(k) fees in this time of financial stress. Many have investigated their fees and have become disturbed by them and have made the decision to take legal action against their employers. While it is your right to do what you want within the bounds of the law, it is not the best option to do this. It is far better to work with your employer in reducing your fees than to take them to court. Settlement often takes a very long time and there is the chance that the case may even be thrown out.&nbsp;</p><p class="" style="white-space:pre-wrap;"><a href="https://www.linkedin.com/in/rahuldotiyer/">Rahul Iyer</a></p>

At a Time of Financial Stress, 401(k) Fees Matter More than Ever

<p>Whatever your financial goal is in life, you will need to have a proper <a href="https://www.lendtable.com/news-and-blog/4-rules-to-improve-your-financial-health">handle on your finances</a> to achieve it. One of the most effective ways to properly <a href="https://www.lendtable.com/news-and-blog/5-ways-to-manage-your-money-better">manage your money</a> is to develop and follow a budget. No matter your income level, you will likely end up in financial difficulties if you do not establish a budget. A budget is a plan for how your money will flow on a weekly, monthly, or even annual basis. It is the blueprint for your expenditure. It is important to note that budgeting is not about restriction. On the contrary, budgeting brings about more freedom in your life. By budgeting efficiently, you will make room for the things you want to spend while properly managing the things you do not want to spend too much on. Here are 4 budgeting tips that you should implement:</p>
<h2 id="1-budget-in-advance">1. Budget in Advance</h2>
<p>It is important that you make your <a href="https://www.lendtable.com/news-and-blog/the-basics-of-budgeting">budget</a> before the week or month begins. By budgeting in advance, you will give yourself sufficient time to assimilate the plan for the period.</p>
<h2 id="2-budget-every-dollar">2. Budget Every Dollar</h2>
<p>Effective budgeting includes controlling the use of every dollar that flows into your hand. This does not mean that you are planning to spend every dollar. Directing funds into savings or investments is a part of budgeting. Ever heard the saying “the devil finds work for idle hands”? Well, he also finds work for idle money. Take control of every dollar.</p>
<h2 id="3-budget-in-a-practical-manner">3. Budget in a Practical Manner</h2>
<p>You must be realistic when creating a budget. Do not budget simply based on what you have heard others say. Remember that people spend differently based on their socialization, financial literacy, and financial goals. If you find that a certain amount is too low for a line item, do what is necessary to make more room for the line item. If you fail to do this, you will put yourself under undue stress.</p>
<h2 id="4-review-your-budget-frequently-make-time-on-a-monthly-basis-to-review-your-spending-and-how-well-your-budget-is-working-do-not-be-afraid-to-adjust-your-budget-as-you-go-along-to-fit-changes-in-income-goals-and-your-spending-patterns-a-budget-evolves-with-you-take-budgeting-seriously-while-we-do-not-encouragen-obsessive-approach-to-budgeting-we-suggest-that-you-take-it-seriously-you-will-often-hear-people-express-that-they-do-not-know-where-their-money-goes-this-approach-to-money-will-inevitably-lead-to-a-life-of-debt-and-financial-misery-you-will-not-hear-that-from-people-who-live-by-a-budget-effective-budgeting-can-lead-to-financial-freedom">4. Review Your Budget Frequently Make time on a monthly basis to review your spending and how well your budget is working. Do not be afraid to adjust your budget as you go along to fit changes in income, goals, and your spending patterns. A budget evolves with you. Take Budgeting Seriously While we do not encouragen obsessive approach to budgeting, we suggest that you take it seriously. You will often hear people express that they do not know where their money goes. This approach to money will inevitably lead to a life of debt and financial misery. You will not hear that from people who live by a budget. Effective budgeting can lead to financial freedom.</h2>


4 Budgeting Tips

<p class="" style="white-space:pre-wrap;">The practice of purchasing stocks when they seem to have fallen below their <a href="https://www.investopedia.com/terms/i/intrinsicvalue.asp#:~:text=Intrinsic%20value%20is%20a%20measure,market%20price%20of%20that%20asset.">intrinsic</a> or book value is referred to as value investing. Those who invest using this strategy are usually actively searching for stocks on the market that they believe are undervalued. Value investors watch for seasons when other investors are overreacting to news, whether good or bad. This reaction results in movement in the price of stocks. This movement often produces great opportunities to purchase stock at a highly discounted price.</p><p class="" style="white-space:pre-wrap;">One of the most popular value investors is Warren Buffet. There are other prominent value investors such as Benjamin Graham, David Dodd, Charlie Munger, Christopher Browne, and Seth Klarman who is a billionaire hedge-fund manager.</p><p class="" style="white-space:pre-wrap;">Here are three principles that you must follow to be successful at value investing:</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">1. Act Based on Sound Knowledge</h3><p class="" style="white-space:pre-wrap;">Effective value investing is done from great research. Do your homework and ensure that you properly understand the company that you are thinking of investing in. You will need to know the long-term plans of the company. The business principles on which a company operates can also impact their future. Be sure to get an understanding of these principles. The company’s financial structure and team are other factors that you must study to determine whether you should invest.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">2. Seek Diversification</h3><p class="" style="white-space:pre-wrap;">It is never a wise idea to rely on one form of investment. Successful investors usually maintain a portfolio of different types of investments. This strategy brings about some amount of protection from major losses. Maintaining a diversified portfolio while implementing value investing will help to ensure that you experience annual returns. This does not mean that annual returns will be guaranteed.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">3. Chase Sustainable and Steady</h3><p class="" style="white-space:pre-wrap;">Many people crave that one investment that will take them from a net worth of thousands of dollars to a net worth of millions. We are not saying that this is impossible; however, this rarely happens. Great investment opportunities come from time to time, but even great <a href="https://www.lendtable.com/news-and-blog/stocks-bonds-and-mutual-funds-explained">investments</a> take time to significantly increase the value of your portfolio. Value investors typically chase investments that are sustainable and that provide steady returns.</p><p class="" style="white-space:pre-wrap;">These three principles are critical to value investing. You can have great success in this form of investing, but you must be diligent. Value investors are often ahead of the news when it comes to great investment opportunities. As a matter of fact, if you sit and wait until you hear about the “once in a lifetime <a href="https://www.lendtable.com/news-and-blog/the-best-month-to-buy-stocks">stock</a> options” on the news, you will most likely have missed the true opportunity.</p><p class="" style="white-space:pre-wrap;"><a href="https://www.linkedin.com/in/rahuldotiyer/">Rahul Iyer</a></p>

What Is Value Investing?

<p class="" style="white-space:pre-wrap;">This <a href="https://www.lendtable.com/news-and-blog/compound-interest-vs-simple-interest-whats-the-difference">interest</a> rate that you will get with a high-yield savings account may not be superb for building wealth, but it can be great for your emergency fund or some <a href="https://www.lendtable.com/news-and-blog/how-inflation-impacts-your-savings">other savings</a> that you want to keep as liquid as possible. The interest rate for most high-yield saving accounts is often more than 10 times what you will get with the average savings account in America.</p><p class="" style="white-space:pre-wrap;">Here are the best high-yield <a href="https://www.lendtable.com/news-and-blog/the-differences-between-a-checking-savings-and-money-market-account">savings accounts</a> that are way better than what you will get at your bank:</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">1. Vio Bank</h3><p class="" style="white-space:pre-wrap;"><em>Interest Rate: 0.76% APY</em></p><p class="" style="white-space:pre-wrap;"><em>Minimum Opening Deposit: $100</em></p><p class="" style="white-space:pre-wrap;">This bank was established in 2018. Vio Bank is the national online division of MidFirst Bank. Established in 1911, MidFirst Bank has been insured by the FDIC since 1934. At Vio Bank, you can choose between a high-yield online savings account or CDs. You have the option of holding both.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">2. PNC Bank</h3><p class="" style="white-space:pre-wrap;"><em>Interest Rate: 0.80% APY</em></p><p class="" style="white-space:pre-wrap;"><em>Minimum Opening Deposit: $0</em></p><p class="" style="white-space:pre-wrap;">With around 2,300 branches and over 9,000 ATMs across America, PNC Bank is a brand that many have grown to trust. PNC Bank’s headquarters can be found in Pittsburgh. This financial institution has been around for over 160 years. Eligible markets can access PNC Bank’s high-yield savings accounts. A maintenance fee is not required to keep this account active neither will you have to pay a minimum opening deposit. If you close your PNC Bank high-yield savings account in less than 180 days of opening it, you will face a $25 fee.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">3. Salem Five Direct</h3><p class="" style="white-space:pre-wrap;"><em>Interest Rate: 0.80% APY</em></p><p class="" style="white-space:pre-wrap;"><em>Minimum Opening Deposit: $100</em></p><p class="" style="white-space:pre-wrap;">As the online division of Salem Five, Salem Five Direct has a lot of credibility. Salem Five has been around since 1855. It originated in Salem, Massachusetts. The cap for this savings account is $1,000,000 and the rate is very competitive. This account is accessible to residents of all 50 states of America. There is a $9.95 charge if you do a Salem Five Direct transaction at a Salem Five branch.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">4. Bank5 Connect</h3><p class="" style="white-space:pre-wrap;"><em>Interest Rate: 0.75% APY</em></p><p class="" style="white-space:pre-wrap;"><em>Minimum Opening Deposit: $10</em></p><p class="" style="white-space:pre-wrap;">BankFive initiated its online division, Bank5 Connect in 2013. BankFive has been in operation since 1855. To open an account with Bank5 Connect, you only need $10; However, to tap into the competitive interest rate, you will need to have at least $100 in the account.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">5. Popular Direct</h3><p class="" style="white-space:pre-wrap;"><em>Interest Rate: 0.75% APY</em></p><p class="" style="white-space:pre-wrap;"><em>Minimum Opening Deposit: $5,000</em></p><p class="" style="white-space:pre-wrap;">To enjoy the benefits of this high-yield savings account, you will need at least $5,000. Popular Direct also offers term CDs. The CDs have a minimum opening deposit of $10,000.&nbsp;</p><p class="" style="white-space:pre-wrap;">Whether you are building up your emergency fund, saving towards college tuition, or saving for a big family vacation, a high-yield savings account can prove to be a great option. You will notice that the typical high-yield account can be accessed online; therefore, it is very convenient to get started.</p><p class="" style="white-space:pre-wrap;"><a href="https://www.linkedin.com/in/rahuldotiyer/">Rahul Iyer</a></p>

5 High-Yield Savings Accounts That Beat Your Bank

<p class="" style="white-space:pre-wrap;">Dollar-cost averaging gives investors the opportunity to make investments into one or more securities at intervals. With this strategy, each time an investment is made it is done at an equal dollar amount. This is done despite the direction of the stock market or the state of each security.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Dollar-Cost Averaging Explained</h3><p class="" style="white-space:pre-wrap;">Dollar-cost averaging (DCA) is also known as the constant dollar plan. This strategy is implemented to reduce the potential negative impact of volatility on the overall investment. DCA involves dividing the total sum to be invested in securities over a period of time. At each interval, the investor will spend the same amount. These purchases are made regardless of the price of the assets. By implementing this strategy, you will remove much of the work that it takes to strategically time the market in an effort to purchase equities at the best price. It also removes the emotions from investing.</p><p class="" style="white-space:pre-wrap;">Over time, this strategy can be effective in building wealth. Its ability to neutralize volatility in the marketplace makes it a great strategy for those who are risk-averse. <a href="https://www.lendtable.com/news-and-blog/401k-vs-personal-investing">401(k) plans</a> serve as perfect examples of dollar-cost averaging. In these plans, securities are purchased at a set price on a monthly basis.</p><p class="" style="white-space:pre-wrap;">401(k) plans allow employees to choose the amount that they would like to invest each month in a set of mutual funds, stocks, and index funds. These plans make investment automatic as the employer handles the entire process without the employee having to do any work.</p><p class="" style="white-space:pre-wrap;">There are mutual fund and index funds that you can apply dollar-cost averaging to without going through a 401(k) plan. If you are a beginner in the realm of investing, dollar-cost averaging is a great place to start. There are also some dividend reinvestment plans that allow investors to dollar cost average by permitting regular equal contributions.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Word of Caution</h3><p class="" style="white-space:pre-wrap;">Avoid applying the dollar-cost averaging method to individual stocks without assessing the company. Without having proper knowledge of the company, you may find that you are investing the same amount when you should really be seeking to dispose of those shares. If you do not have the time to constantly monitor the progress of companies or you do not feel competent enough to assess the financial reports of a company, it is wiser to apply this strategy to <a href="https://www.lendtable.com/news-and-blog/mutual-funds-vs-index-funds">index funds</a>. Index funds are far less risky than <a href="https://www.lendtable.com/news-and-blog/when-should-i-start-investing">investing</a> in individual stocks.</p><p class="" style="white-space:pre-wrap;"><a href="https://www.linkedin.com/in/rahuldotiyer/">Rahul Iyer</a></p>

What Is Dollar-Cost Averaging?

<p class="" style="white-space:pre-wrap;">Tax dollars provide the literal and metaphorical infrastructure for each American to achieve the life that they want. While we may not all rejoice over the various taxes that come out of our paycheck, we have an obligation as citizens of America to contribute to the development of the country by paying our taxes. In this article, we will discuss the different taxes that come out of your paycheck before it hits your bank account or your hand.</p><p class="" style="white-space:pre-wrap;">&nbsp;The taxes that are taken out of your paycheck include Federal Income Tax, State Income Tax, Social Security, Medicare, and Income Tax.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Social Security</h3><p class="" style="white-space:pre-wrap;">6.2% of your paycheck goes to social security. 85% of the funds taken from your paycheck for social security goes to a trust fund that provides financial benefits for current retirees and their dependents. The remaining 15% goes to a trust fund that pays benefits to individuals with disabilities and their dependents.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Medicare</h3><p class="" style="white-space:pre-wrap;">1.45% of your income goes to Medicare. This money is taken to help with health-related expenses of all Medicare beneficiaries.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">State Unemployment</h3><p class="" style="white-space:pre-wrap;">This varies based on established factors. This tax is paid to state workforce agencies. It is used to pay unemployment benefits to state workers. The state in which you work will have its own state unemployment insurance tax rates.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Federal Unemployment</h3><p class="" style="white-space:pre-wrap;">Some states require that employers pay federal unemployment. This tax supports the government’s initiative to provide Unemployment Insurance and Job Service programs in all states.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Income Tax</h3><p class="" style="white-space:pre-wrap;">America uses a progressive system in determining what employees pay in income tax. This means that the amount required by the government is smaller for those who earn less. There are seven <a href="https://smartasset.com/taxes/income-taxes">tax brackets</a> in 2020. These are 0%, 12%, 22%, 24%, 32%, 35%, and 37%. While this does represent a progressive tax system, the income tax rates have been flattening over the decades. 35 years ago, there were 16 tax brackets.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Think Positively About Taxes</h3><p class="" style="white-space:pre-wrap;">Before you get angry and catapult a stone at your screen, please consider why taxes should be appreciated. Taxes are used to develop our country, provide opportunities, and take care of those who are less fortunate. Yes, we could argue all day about how much is being taken from your <a href="https://smartasset.com/taxes/paycheck-calculator">paycheck</a>, but that would not be a good use of energy. In one of his presentations, Jim Rohn shared that instead of complaining about <a href="https://www.cashay.com/payroll-taxes-taken-out-of-your-paycheck-182308808.html#:~:text=Payroll%20taxes%20include%20federal%2C%20state,Medicare%20and%20Social%20Security%20taxes.">taxes</a>, we should look at the fact that America is the golden goose that lays the golden egg. If you want the golden egg, you must take care of the golden goose. Do you agree?</p><p class="" style="white-space:pre-wrap;"><a href="https://www.linkedin.com/in/rahuldotiyer/">Rahul Iyer</a></p>

What Taxes Come Out of My Paycheck?

<p class="" style="white-space:pre-wrap;">While investing is important to the process of wealth creation, saving should never be neglected. Many got involved in investing as a result of how disciplined they were at saving. Saving is also essential to maintaining an emergency fund that will support you during times of financial instability.&nbsp;</p><p class="" style="white-space:pre-wrap;">One of your <a href="https://www.lendtable.com/news-and-blog/the-differences-between-a-checking-savings-and-money-market-account">saving account’s</a> gravest enemies is inflation. Inflation is when the average prices in the marketplace go up. This affects the value of the money you have stored up.</p><p class="" style="white-space:pre-wrap;">If a product costs $200 and the inflation rate is 3%, the same product will cost $206 next year. Inflation impacts almost all our typical expenditure. This means that if you put away $30,000 this year it will likely value very little in the next 30 years. So, while you are not directly losing money, the value of your savings is going down because inflation is eating away at your ability to purchase products and services. &nbsp;</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">How to Plan for Inflation</h3><p class="" style="white-space:pre-wrap;">The best way to counter the effects of inflation is to place your money in investments that offer an interest rate that is higher than the inflation rate. Investment vehicles such as <a href="https://www.lendtable.com/news-and-blog/stocks-bonds-and-mutual-funds-explained">stocks or mutual funds</a> typically grow your money at a pace that makes nullifies the impact of inflation while increasing the value of your funds.</p><p class="" style="white-space:pre-wrap;">Certain forms of investments can be negatively impacted by inflation. Investments such as standard bonds or bank certificates of deposit feature a set annual return. Let us say the annual payment from one of these vehicles is $200. As inflation impacts the economy, the value of this $200 pay-out will reduce every year.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Do not Invest Emergency Money</h3><p class="" style="white-space:pre-wrap;">While we believe you should plan for inflation, we do not encourage you to place your emergency money into investments. Emergency funds should always be kept as liquid as possible so that you can access it when you are faced with an urgent financial challenge.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Final Thoughts</h3><p class="" style="white-space:pre-wrap;">Saving should always be done in the context of a financial goal; however, you must bear in mind that <a href="https://www.lendtable.com/news-and-blog/how-much-should-you-save-for-retirement">long-term saving</a> will face the negative impact of inflation. As mentioned above, if you place your money in vehicles that will grow your money in a way that guards you against the effects of inflation, you are in a great position. Ensure that the vehicles that you choose to use in your endeavors to beat inflation are stable and are approached with financial intelligence and sound financial counsel.&nbsp;</p><p class="" style="white-space:pre-wrap;">We all must deal with inflation. It is one of those realities that we may be tempted to argue over, but it would be more beneficial for us to use that energy to come up with strategies to grow our money at such a pace that we do not have to worry about the effects of inflation.</p><p class="" style="white-space:pre-wrap;"><a href="https://www.linkedin.com/in/rahuldotiyer/">Rahul Iyer</a></p>

How Inflation Impacts your Savings

<p class="" style="white-space:pre-wrap;">You are in over your head in debt and want a way out. Fortunately, there are two ways – both of which are successful, but each has different requirements and outcomes.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;"><strong>What is the Debt Snowball Method?</strong></h3><p class="" style="white-space:pre-wrap;">The debt snowball method is perfect for those who thrive on ‘quick wins.’ If you need the motivation to get out of debt, this is the method for you. Here’s how it works.</p><ul data-rte-list="default"><li><p class="" style="white-space:pre-wrap;">Arrange your debts in order from smallest to largest balance. Don’t pay attention to the interest rates or minimum payment due – just the balance</p></li><li><p class="" style="white-space:pre-wrap;">Budget the minimum required payment for each credit card</p></li><li><p class="" style="white-space:pre-wrap;">Determine how much ‘extra’ money you have to pay toward your credit card debt</p></li><li><p class="" style="white-space:pre-wrap;">Add that amount to the minimum payment for the first card in line</p></li><li><p class="" style="white-space:pre-wrap;">Keep making this payment until you pay the debt in full</p></li><li><p class="" style="white-space:pre-wrap;">Take that same amount and add it to the next debt in line (2nd credit card)</p></li><li><p class="" style="white-space:pre-wrap;">Repeat until you are out of credit card debt</p></li></ul><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;"><strong>What is the Debt Avalanche Method?</strong></h3><p class="" style="white-space:pre-wrap;">The debt <a href="https://www.lendtable.com/news-and-blog/avalanche-method-vs-debt-snowball-method">avalanche method</a> doesn’t provide the same ‘quick wins’ but it saves a lot of money on interest. If you need motivation, you may want to stick with the debt snowball method. If you can handle the ‘slow and steady wins the race’ mentality, use the debt avalanche. Here’s how it works.</p><ul data-rte-list="default"><li><p class="" style="white-space:pre-wrap;">Arrange your debts in order from highest to lowest APR. Don’t pay attention to the balance or minimum payment due – just the APR</p></li><li><p class="" style="white-space:pre-wrap;">Budget the minimum required payment for each credit card</p></li><li><p class="" style="white-space:pre-wrap;">Determine how much ‘extra’ money you have to pay toward your <a href="https://www.lendtable.com/news-and-blog/the-dangers-of-credit-card-debt">credit card debt</a></p></li><li><p class="" style="white-space:pre-wrap;">Add that amount to the minimum payment for the first card in line (highest APR)</p></li><li><p class="" style="white-space:pre-wrap;">Keep making this payment until you pay the debt in full</p></li><li><p class="" style="white-space:pre-wrap;">Take the same amount and add it to the next debt in line (2nd credit card)</p></li><li><p class="" style="white-space:pre-wrap;">Repeat until you are out of credit card debt</p></li></ul><p class="" data-rte-preserve-empty="true" style="white-space:pre-wrap;"></p><h3 style="white-space:pre-wrap;"><strong>Which Method is Right for You?</strong></h3><p class="" style="white-space:pre-wrap;">Think about your habits? Are you likely to stick to the plan if you don’t see progress quickly with the debt avalanche method? If so, use it because it saves you the largest amount of money over the life of the debt. You pay off the highest interest debt first.</p><p class="" style="white-space:pre-wrap;">If you need the motivation to keep going, choose the debt snowball method. Since it orders debts from smallest to largest, you may see a debt paid off in as little as one to two months. It’s a great way to keep yourself going.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;"><strong>Stay Consistent with your Debt Payoff Methods</strong></h3><p class="" style="white-space:pre-wrap;">No matter which method you use, the key is consistency. Get yourself out of debt and stay there. Lock up your credit cards if that was the problem. Don’t close them because that hurts your credit score, just don’t use them.</p><p class="" style="white-space:pre-wrap;">If you use one method and find that it doesn’t work, <a href="https://www.lendtable.com/news-and-blog/4-proven-strategies-for-paying-off-debt">try another</a>. Don’t give up until you get yourself out of debt.</p><p class="" style="white-space:pre-wrap;"><a href="https://www.linkedin.com/in/rahuldotiyer/">Rahul Iyer</a></p>

Is a Debt Snowball or Debt Avalanche better?

<p class="" style="white-space:pre-wrap;">Some of the prime <a href="https://www.lendtable.com/news-and-blog/stocks-bonds-and-mutual-funds-explained">stocks</a> on the market are trading at upwards of $1,000. This can be intimidating to someone who is just starting out in the stock market or who does not want to put too many of their eggs in a single basket. Brokerage firms have realized this dilemma and are now offering what is referred to as fractional shares.&nbsp;</p><p class="" style="white-space:pre-wrap;">The solution to securing expensive stocks that present a huge investment opportunity is to <a href="https://www.lendtable.com/news-and-blog/the-best-month-to-buy-stocks">buy</a> fractional shares. As the name suggests, a fractional share is a portion of a particular stock.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Fractional Shares Explained</h3><p class="" style="white-space:pre-wrap;">This form of investing is straightforward. Instead of having to fork out hundreds or thousands of dollars for stocks, you can pay only a fraction of the price and secure a portion of the share. This means that if a stock costs $80, and you only have $20, you could buy into 25% of the share and still benefit from the stock’s performance. With fractional investing, you do not have to wait until you have all the money to invest.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Benefits of Fractional Investing</h3><p class="" style="white-space:pre-wrap;">One of the primary benefits of fractional investing is that it makes it easy for people to get involved in investing. With fractional investing, you can easily purchase a stock without having all the money for a particular share. This gives you the opportunity to tap into investment earnings from early instead of waiting months to have enough money to purchase shares.</p><p class="" style="white-space:pre-wrap;">Fractional Investing makes it possible for you to secure shares in companies that you would otherwise not be able to afford. Not everybody can afford to buy the highest-priced stocks on the market. This form of investing gives you the opportunity to secure a small piece of the pie.</p><p class="" style="white-space:pre-wrap;">This form of investing makes it possible for you to have more diversity in your portfolio. Instead of only buying 4 shares for a total of $2,000, you could buy fractions of many other promising businesses. This helps to reduce your risk and increase the likelihood of your portfolio going up in value.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">How to Buy Fractional Shares</h3><p class="" style="white-space:pre-wrap;">There are a number of online investing platforms and brokerage firms that give investors the opportunity to buy fractional shares. Each entity has its own rules and restrictions so be sure to familiarize yourself with them. Some firms that will permit you to buy fractional shares are Betterment, Fidelity, Interactive Brokers, M1 Finance, Robinhood, Schwab, and Stockpile</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">The Bottom Line</h3><p class="" style="white-space:pre-wrap;">Whatever your income level might be, fractional investing makes it possible for you to begin to build your investment portfolio. Do not be discouraged by the small amount that you are investing, celebrate the fact that you are <a href="https://www.lendtable.com/news-and-blog/the-first-3-questions-everyone-considering-investing-should-ask-themselves">able to start</a>.</p><p class="" style="white-space:pre-wrap;"><a href="https://www.linkedin.com/in/rahuldotiyer/">Rahul Iyer</a></p>

Fractional Investing: How you can Afford Expensive Stocks

<p class="" style="white-space:pre-wrap;">Millions of Americans are planning for retirement by <a href="https://www.lendtable.com/news-and-blog/am-i-ready-to-invest-in-my-401k-3-easy-questions-to-help-you-decide">investing in their 401(k)s</a>, thereby ensuring a more comfortable future. But is your 401(k) enough, or should you also be saving? That's what we're going to be looking at today. Let's take a look.</p><p class="" data-rte-preserve-empty="true" style="white-space:pre-wrap;"></p><h3 style="white-space:pre-wrap;">401(k) Investing</h3><p class="" style="white-space:pre-wrap;">401(k) plans can be a great way to save for retirement. Most financial advisors will encourage you to invest in your <a href="https://www.lendtable.com/news-and-blog/5-best-companies-for-401k-match-in-2020">company's 401(k)</a>, especially if the company offers to match your contributions. Matched contributions are free money, and who turns down free money? People who don't like money. There are also certain tax advantages to investing in <a href="https://www.lendtable.com/news-and-blog/the-benefits-of-a-401k-everything-you-need-to-know">401(k)s</a>, namely that they are tax-deferred, meaning you won't pay tax on any earnings until you withdraw them from the account when you retire.</p><p class="" style="white-space:pre-wrap;">However, there are drawbacks to 401(k)s and reasons why investing in one might not be the best option for you. It's important to note that the things we're going to talk about in this section won't be drawbacks for everyone, but they will be for some people.</p><p class="" style="white-space:pre-wrap;">401(k)s lack flexibility and are often incredibly restrictive. Most 401(k)s focus on mutual funds or exchange-traded funds, which are highly diversified forms of investing. You can't pick individual stocks in mutual funds or ETFs, limiting your control over your investment. If you have a good investment history and like playing the stock market, then you might be better off putting your money into an IRA and investing it yourself when you're ready. This is especially true if your company doesn't match your contributions.</p><p class="" data-rte-preserve-empty="true" style="white-space:pre-wrap;"></p><h3 style="white-space:pre-wrap;">Saving</h3><p class="" style="white-space:pre-wrap;">It should come as no surprise that most Americans aren't saving enough money towards retirement. According to a study by the National Institute on Retirement Security, over 75% of Americans have savings below conservative savings targets. Even more alarmingly, 21% of Americans aren't saving at all. So how much should you be saving?&nbsp;</p><p class="" style="white-space:pre-wrap;">Most estimates say you should be saving around 15% of your annual income. Ideally, it would be best if you started doing this at 25, or even earlier. This figure is based on you being able to maintain your lifestyle during retirement, which typically means you need somewhere between 55% and 80% of your pre retirement income. It's important to note that other retirement savings can also count towards this 15%, including a 401(k). Meaning, you don't need to save 15% every year in addition to your 401(k) and other investments.</p><p class="" style="white-space:pre-wrap;">The earlier you can start saving for retirement, the better, but saving at any age is still good. If you're in your 20s and have just entered the workforce, then saving for retirement might not seem like a priority. In your 20s, you're still getting to grips with all of the living expenses that are coming your way. You might be thinking of saving for a downpayment on a house. You may also have debt that you want to pay off. In this scenario, you should still enroll in your employer's 401(k) and just invest small amounts.</p><p class="" data-rte-preserve-empty="true" style="white-space:pre-wrap;"></p><p class="" style="white-space:pre-wrap;"><a href="https://www.linkedin.com/in/rahuldotiyer/">&nbsp;Rahul Iyer</a></p>

Saving vs. 401(k) Investing

<p class="" style="white-space:pre-wrap;">When it comes to tax, not all capital gains are treated equally. Making a substantial profit on your financial securities is excellent, but you'll take to pay tax, and the tax you pay will depend on how long you've held the asset.</p><p class="" data-rte-preserve-empty="true" style="white-space:pre-wrap;"></p><h3 style="white-space:pre-wrap;">Short-Term Capital Gains Tax</h3><p class="" style="white-space:pre-wrap;">Short-term capital gains tax is the tax you pay on profits from the sale of assets that you have held for less than one year. Short-term capital gains have no special tax status and are taxed at your ordinary-income rate. This can mean that you are pushed into a higher tax bracket. For example, let's say you fill out your IRS tax filing as a single. You gain $84,000 in salary, which puts you in the 22% <a href="https://taxfoundation.org/2020-tax-brackets/">federal tax bracket</a>. However, you then generate $4000 in short-term capital gains. This then pushes your income up to $88,000 and into the 24% tax bracket.</p><p class="" data-rte-preserve-empty="true" style="white-space:pre-wrap;"></p><h3 style="white-space:pre-wrap;">Long-Term Capital Gains Tax</h3><p class="" style="white-space:pre-wrap;">An asset will fall into the category of long term capital gains if you hold it for more than a year before selling it. You should start counting one year (365 days) from the day after purchasing the asset if you plan to benefit from the special tax rate associated with long-term capital gains. In most cases, you can take advantage of long-term <a href="https://www.lendtable.com/news-and-blog/capital-gains-tax-explained">capital gains tax</a> status if you sell your assets after one year, but there are a few notable exceptions. For example, some exceptions exist for commodity futures and real estate.</p><p class="" style="white-space:pre-wrap;">&nbsp;Long-term capital gains are taxed at either 0%, 15%, or 20%, depending on your income and how you file your taxes. For example, if you are a Single and your income is up to $39,375 (2019), you will pay 0% on your capital gains. However, if your income is between $39,376 and $434,550, you will pay 15%. This jumps up to 20% for Singles earning over $434,550.</p><p class="" data-rte-preserve-empty="true" style="white-space:pre-wrap;"></p><h3 style="white-space:pre-wrap;">Retirement Accounts</h3><p class="" style="white-space:pre-wrap;">With IRAs and other <a href="https://www.lendtable.com/news-and-blog/7-types-of-retirement-plans-offered-by-employees">retirement accounts</a> like 401(k)s, you get certain tax benefits. One of these benefits is that you can defer paying taxes until you withdraw money from the account. However, there is a drawback. All contributions that you withdraw from these tax-deferred accounts will be treated as regular income and taxed as such. This is one reason why some financial advisors discourage people from squirreling away all of their money into their 401(k) plans.</p><p class="" data-rte-preserve-empty="true" style="white-space:pre-wrap;"></p><h3 style="white-space:pre-wrap;">Capital Losses</h3><p class="" style="white-space:pre-wrap;">Sometimes, our investments don't go the way we expect, and we end up losing money. When this happens, you can use your losses to reduce your taxes by calculating your "net" capital loss or gain. You can also carry losses forward to subsequent years if you hit the limit for your current filing year.</p><p class="" data-rte-preserve-empty="true" style="white-space:pre-wrap;"></p><h3 style="white-space:pre-wrap;">Exemptions</h3><p class="" style="white-space:pre-wrap;">It sounds pretty straightforward so far, right? Well, some exemptions make capital gains tax a little more complex.&nbsp;</p><ul data-rte-list="default"><li><p class="" style="white-space:pre-wrap;">Collectibles such as art, comic books, antiques, jewelry, and precious metals are taxed at 28%, regardless of your income.</p></li><li><p class="" style="white-space:pre-wrap;">Real estate - If you sell your principal residence, then $250,000 of profits will be excluded from your taxable income as long as you have owned and lived in the property for two or more years.&nbsp;</p></li></ul><p class="" style="white-space:pre-wrap;">This list isn't exhaustive but is meant to highlight the most notable exemptions.</p><p class="" style="white-space:pre-wrap;"><a href="https://www.linkedin.com/in/rahuldotiyer/">Rahul Iyer</a></p>

Understanding Long-Term vs. Short-Term Capital Gains Tax

<p class="" style="white-space:pre-wrap;">Whether you leave to go on your own or move to a new employer, leaving your job can be stressful and emotional. But when you say your goodbyes, remember that you're not saying goodbye to your 401(k). There are four options to choose from when dealing with an old 401(k): roll the money over into an IRA, roll it over into a new plan with your new employer, keep it with your old employer, or cash out. Here we're going to focus on the first two options and keep it simple, so you leave knowing exactly how to <a href="https://www.lendtable.com/news-and-blog/top-5-reasons-to-roll-over-your-401k-to-an-ira">roll over your 401(k)</a>. Let's take a look.</p><p class="" data-rte-preserve-empty="true" style="white-space:pre-wrap;"></p><h3 style="white-space:pre-wrap;">Rolling Over into an IRA</h3><p class="" style="white-space:pre-wrap;">Rolling over your 401(k) into an Individual Retirement Account (IRA) is an excellent option for many people leaving one job and moving onto the next. There are several reasons to do this:</p><ul data-rte-list="default"><li><p class="" style="white-space:pre-wrap;">You want to enjoy the increased flexibility that IRAs allow - You can hold virtually any type of asset, including stocks, bonds, mutual funds, real estate investment trusts, annuities, and more.</p></li><li><p class="" style="white-space:pre-wrap;">Your new employer doesn't offer matched contributions on their 401(k) plan.</p></li><li><p class="" style="white-space:pre-wrap;">You're attracted to the lower fees - IRAs typically have lower fees (or even no fees), whereas 401(k)s average 1-2% of your assets.&nbsp;&nbsp;</p></li></ul><p class="" style="white-space:pre-wrap;">Next, if you decide to go for the IRA option, you'll have to determine if you want to go for a traditional IRA or a Roth IRA. Essentially, the difference is between paying taxes <a href="https://www.lendtable.com/news-and-blog/traditional-vs-roth-401k-what-should-you-choose">now (Roth) or later (traditional)</a>. You can open the IRA of your choosing with a bank or brokerage firm. Just make sure you do your research into any fees and expenses, though.</p><p class="" style="white-space:pre-wrap;">The next step is to ask your 401(k) plan for a "direct rollover." These words are important - it means you'll get a check directly to your new IRA account (the one you opened in the last step) rather than a check delivered to you personally. The other option is an indirect rollover, where you get the money from the <a href="https://www.lendtable.com/news-and-blog/the-benefits-of-a-401k-everything-you-need-to-know">401(k)</a> and deposit it into the IRA yourself. However, this can be complicated and often creates tax complications, so direct rollovers are preferred.</p><p class="" style="white-space:pre-wrap;">Once the money has rolled over into the IRA, it's time to pick your investments!</p><p class="" data-rte-preserve-empty="true" style="white-space:pre-wrap;"></p><h3 style="white-space:pre-wrap;">Roll Over Your 401(k) Into a New Plan With Your New Employer</h3><h3 style="white-space:pre-wrap;">There are several benefits to this option too:</h3><ul data-rte-list="default"><li><p class="" style="white-space:pre-wrap;">You can continue to grow your money tax-deferred.</p></li><li><p class="" style="white-space:pre-wrap;">You only have one retirement account, which makes saving for retirement straightforward.&nbsp;</p></li><li><p class="" style="white-space:pre-wrap;">Employers are required to act in your best interest when it comes to investments.</p></li><li><p class="" style="white-space:pre-wrap;">Federal laws grant you broad protection against creditors.&nbsp;</p></li></ul><p class="" style="white-space:pre-wrap;">It's important to note that not all employers allow you to roll over from a previous employer, so you should always check.</p><p class="" style="white-space:pre-wrap;">The process for rolling an old 401(k) into a new one is simple. When you start your job (or have a guarantee of employment), contact the 401(k) administrator at your new employer. They will be able to give you a new account address for your new 401(k). You can then provide this address to your old employer, and they will perform a direct rollover.</p><p class="" style="white-space:pre-wrap;"><a href="https://www.linkedin.com/in/rahuldotiyer/">Rahul Iyer</a></p>

How to Roll over a 401(k)

<p class="" style="white-space:pre-wrap;">Mortgage rates are at all-time lows. Homebuyers and homeowners are seeing interest rates they’ve never seen in their lifetime with 15-year rates as low as 2.6% and 30-year rates at 3%. Whether you’re buying your first home or refinancing an existing home, it’s easy to want to jump on board right now. Most people opt for the 30-year loan because of its affordability but with today’s low rates, many are choosing the 15-year loan to snag that below 3% interest rate.</p><p class="" style="white-space:pre-wrap;">Don’t. Here’s why.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">15-Year Loans Have High Payments</h3><p class="" style="white-space:pre-wrap;">The low interest rate on 15-year loans is great, but the principal payments are much higher. You cut the term in half, which means paying a lot more principal each month in order to pay the loan off in full on time.</p><p class="" style="white-space:pre-wrap;">The higher payment could be a huge financial burden that you aren’t ready to handle. While it may be fine right now, what happens if you lose your job or have a financial crisis and can’t afford the higher payment any longer?</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Take the 30-Year Mortgage</h3><p class="" style="white-space:pre-wrap;">It sounds counterintuitive to take a longer-term mortgage with a higher <a href="https://www.lendtable.com/news-and-blog/compound-interest-vs-simple-interest-whats-the-difference">interest</a> rate, but there are reasons</p><ul data-rte-list="default"><li><p class="" style="white-space:pre-wrap;">You can more comfortably afford the 30-year payment. With 15 extra years to pay the principal, you have much lower and often, more affordable payments.</p></li><li><p class="" style="white-space:pre-wrap;">The interest rates aren’t that much higher. While it sounds better to have a 2.65% interest rate versus 3%, the difference isn’t mind-blowing, but the stress of the higher payment can be.</p></li><li><p class="" style="white-space:pre-wrap;">A 30-year loan is easier to get. You don’t have to worry as much about your <a href="https://www.investopedia.com/terms/d/dti.asp">debt ratio</a> or income. 30-year loans have more relaxed guidelines and are easier for most people.</p></li></ul><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Get the Best of Both Worlds</h3><p class="" style="white-space:pre-wrap;">Here’s where the method to the madness starts. You take out a 30-year loan. You are obligated to make 30-year payments, but you may also make 15-year payments.</p><p class="" style="white-space:pre-wrap;">This is why it makes sense to take the 30-year term. You get the best of both worlds. If you can’t afford the 15-year payment, you are only obligated to make the 30-year payment. If you do, you won’t get hit for a late payment and <a href="https://www.lendtable.com/news-and-blog/5-factors-that-affect-your-credit-score">damage your credit</a>.</p><p class="" style="white-space:pre-wrap;">If you have a great month, few months, or year, you can make 15-year payments for as long as you want. If you can afford it for the entire term, then you pay the loan off 15 years early. But if you can’t afford it, you aren’t in hot water trying to figure out how to make your required mortgage payment to avoid foreclosure.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Choose the Term that’s Right for You</h3><p class="" style="white-space:pre-wrap;">Think about your term carefully. Don’t jump at the 15-year term because of the low rates – all rates are low right now. If you’re unsure about your income, financial security moving forward, or just want the reassurance of a smaller payment, choose the 30-year term and know that you have the option to make the 15-year payment whenever you want.</p><p class="" style="white-space:pre-wrap;"><a href="https://www.linkedin.com/in/rahuldotiyer/">Rahul Iyer</a></p>

Forget 15-year Mortgages, Choose a 30-year Mortgage - Here's Why

<p class="" style="white-space:pre-wrap;">You’re in over your head in <a href="https://www.lendtable.com/news-and-blog/the-dangers-of-credit-card-debt">credit card debt</a>. What do you do?</p><p class="" style="white-space:pre-wrap;">If you keep making the minimum payments you’ll get nowhere and it will cost you a lot of money in interest – we’re talking thousands of dollars in interest. But how do you make heads or tails out of your debt and figure out a way out?</p><p class="" style="white-space:pre-wrap;">Use one of the two most popular <a href="https://www.lendtable.com/news-and-blog/4-proven-strategies-for-paying-off-debt">debt payoff methods</a> – debt avalanche or the debt snowball method.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">What is the Debt Avalanche Method?</h3><p class="" style="white-space:pre-wrap;">The debt avalanche method focuses on your credit card interest. Its goal is to pay off the highest interest credit cards first. This method saves you the most money but takes longer to see any progress.</p><p class="" style="white-space:pre-wrap;">If you aren’t the type of person that needs ‘quick wins,’ it’s a great way to pay off your credit card debt.</p><p class="" style="white-space:pre-wrap;">Here’s how it works:</p><ol data-rte-list="default"><li><p class="" style="white-space:pre-wrap;">Put your credit cards in order of APR highest to lowest (don’t focus on the balance)</p></li><li><p class="" style="white-space:pre-wrap;">Make the minimum payment to each credit card</p></li><li><p class="" style="white-space:pre-wrap;">Any extra money you have to pay toward your credit card debt pay to the first credit card in line (the highest APR)</p></li><li><p class="" style="white-space:pre-wrap;">Keep paying the extra money to the highest APR credit card until you pay it off in full</p></li><li><p class="" style="white-space:pre-wrap;">Take the extra money and add it to the next credit card in line in addition to the minimum payment you already make</p></li><li><p class="" style="white-space:pre-wrap;">Keep going until you create an avalanche and pay off all credit card debt</p></li></ol><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">What is the Debt Snowball Method?</h3><p class="" style="white-space:pre-wrap;">The debt snowball method focuses on your <a href="https://www.lendtable.com/news-and-blog/6-reasons-to-use-a-credit-card">credit card</a> balances, not the interest. This method gives you ‘quick wins’ because you’ll focus on the credit card with the lowest balance first. If you thrive on motivation and need the ‘little wins’ to keep you going, the debt snowball method may be a better choice.</p><p class="" style="white-space:pre-wrap;">Here’s how it works:</p><ol data-rte-list="default"><li><p class="" style="white-space:pre-wrap;">Order your credit card debt by balance smallest to largest (don’t focus on the APR)</p></li><li><p class="" style="white-space:pre-wrap;">Make the minimum payment to each credit card</p></li><li><p class="" style="white-space:pre-wrap;">Pay any extra money you have toward the first credit card in line (the lowest balance)</p></li><li><p class="" style="white-space:pre-wrap;">Keep paying the extra money to the lowest balance credit card until you pay it off in full</p></li><li><p class="" style="white-space:pre-wrap;">Take the amount you paid to the first credit card and add it to the next credit card in line (in addition to the minimum payment)</p></li><li><p class="" style="white-space:pre-wrap;">Keep going until you create a debt snowball and are out of consumer debt</p></li></ol><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">The Debt Avalanche and Debt Snowball Method Work Great</h3><p class="" style="white-space:pre-wrap;">Choose the method that resonates with you the most. They are both great programs to help you get out of debt but choose the one you’ll use most consistently, as that is the key.</p><p class="" style="white-space:pre-wrap;">Use the method that you’ll stick to and won’t give up when you aren’t seeing results as fast as you’d hoped. You didn’t get into credit card debt overnight and you won’t get out of it that quickly either. Patience, consistency, and flexibility are the keys to getting out of credit card debt for good.</p><p class="" style="white-space:pre-wrap;"><a href="https://www.linkedin.com/in/rahuldotiyer/">Rahul Iyer</a></p>

Avalanche Method vs. Debt Snowball Method

<p class="" style="white-space:pre-wrap;">A <a href="https://www.lendtable.com/news-and-blog/the-benefits-of-a-401k-everything-you-need-to-know">401(k)</a> plan offers the opportunity to create wealth and secure a comfortable lifestyle after retirement. <a href="https://crr.bc.edu/briefs/why-are-401k-ira-balances-substantially-below-potential-2/">Research</a> conducted by the Center for Retirement Research at Boston College found that the average 60-year-old had less than $100,000 in retirement savings in 2019 when they should have been at $360,000. In this article, we will discuss some 401(k) mistakes that you should avoid.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Failing to Maximize the Employer Match</h3><p class="" style="white-space:pre-wrap;">Most companies that offer a 401(k) plan also offer a <a href="https://www.lendtable.com/news-and-blog/5-best-companies-for-401k-match-in-2020">401(k) match</a>. Anqi Angie Chen from Boston College shared that more than 30% of workers contribute below the matching opportunity offered by their employer. Increasing your contributions to maximize your employer’s match may seem a bit frightful. You can decide to increase your contributions annually until the 401(k) match gets to the <a href="https://www.lendtable.com/news-and-blog/what-can-i-do-after-maxing-out-my-401k">maximum</a>.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Inconsistency in Contributions</h3><p class="" style="white-space:pre-wrap;">Missing a few contributions can have a significant impact on your retirement savings in the long run. When you do not contribute regularly, you will miss out on the opportunity of capitalizing on compound interest. Missing contributions of $57,000 can result in an opportunity cost of $100,000. It is important to make saving for your retirement a habit. If you are unemployed, try to put some money into an individual retirement account even if you are only able to contribute $10 or $20.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Withdrawing from Your 401(k) When It is Not Absolutely Necessary</h3><p class="" style="white-space:pre-wrap;">Generally speaking, withdrawing from your 401(k) plan before you get to 59 ½ years old will result in you having to pay taxes and an early withdrawal penalty. This penalty is 10% of the sum withdrawn. Under the recently passed CARES Act that is geared towards helping people to withstand the financial storm that is accompanying the pandemic, you can withdraw without facing this penalty and taxes if you do so within their criteria. While this is in place, it does not mean that everybody should do it. If you have other options, capitalize on those.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Failure to Consistently Increase Contributions</h3><p class="" style="white-space:pre-wrap;">Many fail to consistently increase their contributions. This is an issue because if you do not get your contributions to a certain level, you may not have enough to maintain your lifestyle after retirement. The recommended contribution is 15% to 20% of your income. Bear in mind that this also includes the amount that your employer will contribute to match your contributions. A simple strategy to get to the suggested contributions is to increase your contributions by 1% each year.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Conclusion</h3><p class="" style="white-space:pre-wrap;">The report from the Center for Retirement Research at Boston College tells a story. While we do not know the individual cases that make up the average figures, we do know that many who are behind in their savings got to that point because of some of these mistakes. Keep these in mind and do all in your power to avoid slipping up. By diligently managing your retirement savings account you will secure a better life for yourself after retirement.</p><p class="" style="white-space:pre-wrap;"><a href="https://www.linkedin.com/in/rahuldotiyer/">Rahul Iyer</a></p>

401(k) Mistakes to Avoid

<p class="" style="white-space:pre-wrap;">If you were <a href="https://www.lendtable.com/news-and-blog/cashing-out-a-401k-due-to-covid-19">impacted by COVID-19</a> and lost your job (or lose your job any other time), you likely earn unemployment benefits. While the money is a nice way to bridge the gap between jobs, it’s important to know that it’s not ‘free money,’ you will owe taxes on it.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Unemployment Benefits are Income</h3><p class="" style="white-space:pre-wrap;">Regular unemployment benefits (the coverage anyone receives when they lose their job) has always been considered income. This means you owe taxes, but not the same taxes you’d pay if you were employed.</p><p class="" style="white-space:pre-wrap;">As an employee, you pay <a href="https://www.irs.gov/taxtopics/tc751">Social Security and Medicare taxes</a> on top of your regular income taxes. When you’re unemployed, you only pay the federal income taxes, not the Social Security and Medicare taxes.</p><p class="" style="white-space:pre-wrap;">However, your state may charge taxes on your unemployment benefits too. Some states don’t charge state tax, so if you’re lucky enough to live in Alaska, Nevada, Florida, South Dakota, Washington, Texas, or Wyoming you don’t have to worry about it, otherwise, you’re on the hook for state taxes too.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Paying Taxes on your Unemployment Benefits</h3><p class="" style="white-space:pre-wrap;">You have a few options when paying taxes on your unemployment benefits.</p><p class="" style="white-space:pre-wrap;">The easiest is to have the taxes withheld. When you apply for unemployment benefits, the system usually asks if you want taxes withheld. If you agree to have the taxes withheld, your state’s unemployment office will withhold the funds and disburse them accordingly. This takes the burden off you, as it should cover most or all of your tax liability depending on how the state withholds them.</p><p class="" style="white-space:pre-wrap;">If you don’t want the taxes withheld, you should pay quarterly estimated taxes. On the IRS website, use the tax withholding calculator to determine how much you may owe. Send the allotted amount into the IRS quarterly. You can make your payments online.</p><p class="" style="white-space:pre-wrap;">Making quarterly payments helps avoid underpayment penalties which the IRS charges if you don’t pay your taxes on time (as you earn the funds).</p><p class="" style="white-space:pre-wrap;">If you don’t withhold or pay estimated quarterly taxes, you’ll owe the full amount when you file your taxes. This is the most expensive way to manage your taxes because you’ll likely pay a late payment penalty on top of the taxes you owe. If you choose this option, make sure you <a href="https://www.lendtable.com/news-and-blog/the-basics-of-budgeting">put money aside</a> monthly as you receive your income so you aren’t stuck with a large bill you can’t afford.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Unemployment during COVID</h3><p class="" style="white-space:pre-wrap;">If you received unemployment benefits during the pandemic, you may have received an additional $600 for a brief period. Those funds are also fully taxable, but your state may or may not have withheld taxes on them.</p><p class="" style="white-space:pre-wrap;">The bottom line is make sure you are aware of your tax liability on the money you earn from unemployment. Treat it just like the money you’d receive from an employer and make sure you pay your taxes on time. It’s never pleasant getting a large tax bill at the end of the year, so plan accordingly to ensure you don’t get an unpleasant surprise. &nbsp;&nbsp;</p><p class="" style="white-space:pre-wrap;"><a href="https://www.linkedin.com/in/rahuldotiyer/">Rahul Iyer</a></p>

Do you Pay Taxes on Unemployment Benefits?

<p class="" style="white-space:pre-wrap;">A <a href="https://www.lendtable.com/news-and-blog/what-is-a-health-savings-account">health savings account</a> helps you save money for medical expenses tax-free. It’s like the medical cost equivalent of a retirement account when it comes to tax savings.</p><p class="" style="white-space:pre-wrap;">As long as you use the money you put aside for qualified medical expenses, you pay no taxes on the funds. It’s a win-win.</p><p class="" style="white-space:pre-wrap;">Like any other tax-advantaged accounts, there are rules. Here’s how it works.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">What is an HSA?</h3><p class="" style="white-space:pre-wrap;">A health savings account is a tax-advantaged savings account that helps you pay for your medical expenses.</p><p class="" style="white-space:pre-wrap;">You may contribute up to $3,550 for an individual or $7,100 for a family per year. You must have a high deductible insurance plan to qualify, which means at least a $1,400 deductible for individuals or $2,800 deductible.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">How Health Savings Accounts Work</h3><p class="" style="white-space:pre-wrap;">The easiest way to get a Health Savings Account is through your employer. If they offer it, they’ll automatically transfer the funds from your pay and transfer it to your HSA. The funds are transferred before taxes, which lowers your tax liability.</p><p class="" style="white-space:pre-wrap;">The money sits in your HSA, earning <a href="https://www.lendtable.com/news-and-blog/compound-interest-vs-simple-interest-whats-the-difference">interest</a>, or getting invested (depending on the type of account). If you have a medical bill, including co-insurance, a co-payment, or out-of-pocket expense, you pay it with your Health Savings Account funds. Your plan will provide you with either a debit card or checkbook to make the payments.</p><p class="" style="white-space:pre-wrap;">If your employer doesn’t offer an HSA, you may open one yourself at any broker offering the program. Rather than your employer transferring the funds, though, you’ll be responsible for the transfer. You’ll pay taxes on the money when you get paid but may deduct your contributions on your tax returns each year.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Rolling Over your HSA Funds</h3><p class="" style="white-space:pre-wrap;">Your HSA funds never expire. If you don’t use the money you contributed this year, it remains in your account and rolls over to the next year. You can keep rolling the funds over as needed, even into retirement.</p><p class="" style="white-space:pre-wrap;">While you can’t contribute to your Health Savings Account once you’re on Medicare, you can continue to use the funds to pay your medical expenses.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">What are Qualified Expenses?</h3><p class="" style="white-space:pre-wrap;">You may use your HSA funds for just about any health expenses except your premiums. In addition to the normal health-related costs we discussed above, you may also use them for:</p><ul data-rte-list="default"><li><p class="" style="white-space:pre-wrap;">Vision services</p></li><li><p class="" style="white-space:pre-wrap;">Dental care</p></li><li><p class="" style="white-space:pre-wrap;">Chiropractor services</p></li><li><p class="" style="white-space:pre-wrap;">Acupuncture</p></li></ul><p class="" style="white-space:pre-wrap;">The only ‘medically’ related expense you can’t use the funds on are over-the-counter drugs that you can buy without a prescription.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Take Advantage of a Health Savings Account</h3><p class="" style="white-space:pre-wrap;">If you have an HSA at your disposal, take advantage. Everyone has medical expenses and if you have a high deductible, it can help offset your medical expenses and help you save money on taxes.</p><p class="" style="white-space:pre-wrap;">It’s a win-win for you, helping make your medical care more affordable while taking the sting out of having a <a href="https://www.healthcare.gov/glossary/high-deductible-health-plan/">high deductible health insurance plan</a>, which even group insurance plans often include. Healthcare is expensive, but with an HSA it can be more affordable.</p><p class="" style="white-space:pre-wrap;"><a href="https://www.linkedin.com/in/rahuldotiyer/">Rahul Iyer</a></p>

How do Health Savings Accounts Work?

<p class="" style="white-space:pre-wrap;">Medical bills get expensive, especially as you get older. If you have a <a href="https://www.healthcare.gov/high-deductible-health-plan/hdhp-hsa-information/">high deductible insurance plan</a>, you may wonder how you’ll afford the bills and pay your insurance premiums.</p><p class="" style="white-space:pre-wrap;">Enter the Health Savings Account – a tax-advantaged way to save for your medical expenses.</p><p class="" style="white-space:pre-wrap;">If you don’t have one yet, read on to learn why you should consider it.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">How Does an HSA Work?</h3><p class="" style="white-space:pre-wrap;">You may open an HSA through your employer (if they offer one) or find one yourself through a broker. As long as you have a qualifying health insurance plan with a high deductible as determined by the IRS, you’re eligible for an HSA.</p><p class="" style="white-space:pre-wrap;">In 2020, the IRS considers a high deductible insurance plan one with a $1,400 individual deductible or $2,800 family deductible. If your insurance plan meets this requirement, you may take advantage of a Health Savings Account.</p><p class="" style="white-space:pre-wrap;">You may contribute pre-tax funds to your HSA. The funds stay in the account until you need them for qualified medical expenses. You’ll receive a debit card for the account to pay your medical bills. The allowed expenses include co-insurance, co-pays, and out of pocket expenses, but not insurance premiums.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">The Tax Advantages of the Health Savings Account</h3><p class="" style="white-space:pre-wrap;">The benefit of the HSA comes down to the tax savings. Like retirement fund contributions, you make HSA contributions pre-tax if you have an account through your employer. Your employer automatically deducts the contributions from your pay before withdrawing taxes.</p><p class="" style="white-space:pre-wrap;">If you open your own account, you may deduct the contributions (up to $3,500 for individuals and $7,100 for families) on your taxes when you prepare them.</p><p class="" style="white-space:pre-wrap;">No matter where you hold your account, the funds grow tax-free and if you use the money on qualified medical expenses, your withdrawals are tax-free too. In other words, you pay no taxes on the income you use to contribute to your medical expenses.</p><p class="" style="white-space:pre-wrap;">You may invest the funds in <a href="https://www.lendtable.com/news-and-blog/stocks-bonds-and-mutual-funds-explained">stocks, mutual funds, or ETFs</a>, based on the options your sponsor offers. Make sure the <a href="https://www.lendtable.com/news-and-blog/what-fund-types-are-offered-in-401ks">investment vehicles</a> you choose are low-cost and low-risk to preserve your funds.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Rolling Over HSA Funds</h3><p class="" style="white-space:pre-wrap;">Any funds you contribute to your Health Savings Account, but don’t use that year may be rolled over. You may continue to roll the funds over year over year until age 65. Once you are over 65-years old and enrolled in Medicare, you are no longer eligible for an HSA account for new contributions.</p><p class="" style="white-space:pre-wrap;">If you have unused funds in your account, though, you may use the funds after age 65 to cover your out-of-pocket medical expenses. You never lose the use of the funds.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Take Advantage of Your Health Savings Account Benefits</h3><p class="" style="white-space:pre-wrap;">If you have a high deductible insurance plan through your employer or even the marketplace, take advantage of the benefits HSAs offer. You’ll get the tax advantages and have money available to cover your medical expenses without the worry of how you’ll cover your medical bills. It can be a great help during stressful times!</p><p class="" style="white-space:pre-wrap;"><a href="https://www.linkedin.com/in/rahuldotiyer/">Rahul Iyer</a></p>

What is a Health Savings Account?

<p class="" style="white-space:pre-wrap;">Schools focus on the ‘book smarts’ kids need but often overlook the importance of teaching kids about money. They leave that up to the parents. It’s a big job to take on, but it’s also one of the most important lessons you can teach your children.</p><p class="" style="white-space:pre-wrap;">Children are never too young to learn about money. Tailor your lessons to their age, teaching them what they can understand and always up-leveling your ‘lessons’ as they age.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Talk about Money Often</h3><p class="" style="white-space:pre-wrap;">Don’t make money a secret or an ‘adult topic.’ Let kids hear about money too. Teach your kids the value of a dollar. Help them learn how money works.</p><p class="" style="white-space:pre-wrap;">A good visual, especially for young kids is to set up three clear glass jars, one each for saving, giving, and spending.</p><p class="" style="white-space:pre-wrap;">Each time your child earns or <a href="https://www.lendtable.com/news-and-blog/why-you-should-give-your-kids-money-now-and-not-in-your-will">receives money (including gifts)</a>, split the money into thirds, and let him/her see the money add up in each jar. Only let him/her spend the money in the ‘spend’ jar, while the savings grow and the giving he/she can decide who to give to.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Help your Child Avoid Impulse Buys</h3><p class="" style="white-space:pre-wrap;">No matter how much money stacks up in your child’s ‘spend’ account, don’t let him/her fall for those impulse buys – it’s a bad habit.</p><p class="" style="white-space:pre-wrap;">If it’s a large purchase (for children this means anything over $5 or $10), encourage him/her to wait 24 – 48 hours. If they still want it and/or talk about it, then you can talk about how they’ll pay for it. If they don’t bring it, you just saved your child and yourself money. This is a skill they can take within them into adulthood.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Talk about the Dangers of Credit Cards</h3><p class="" style="white-space:pre-wrap;">If you have a habit of swiping plastic (even if it’s a debit card), your children see this and think it’s okay to charge. When they hit 18-years old, they’ll get bombarded with credit card offers and think it’s okay to take them.</p><p class="" style="white-space:pre-wrap;">Start teaching them early on that credit cards aren’t the answer and that <a href="https://www.lendtable.com/news-and-blog/the-dangers-of-credit-card-debt">credit card debt</a> is dangerous. Talk about credit card interest, how it accrues, and how making only minimum payments makes a purchase cost much more than its original cost.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Teach your Child how to Budget</h3><p class="" style="white-space:pre-wrap;">As soon as your child understands basic math, you can teach him/her about <a href="https://www.lendtable.com/news-and-blog/the-basics-of-budgeting">budgeting</a>. As your child gets into the teen years and has expenses, like car insurance, gas, and spending money to go out with friends, help him/her learn how to budget.</p><p class="" style="white-space:pre-wrap;">Keep it simple, but start the habit now so when he/she is out on their own, budgeting will feel like a normal part of life and not something else they have to learn as they enter adulthood.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Teach your Kids About Money Daily</h3><p class="" style="white-space:pre-wrap;">You can’t talk about money too much with your children. Giving them the knowledge needed to stay debt free, in control of his/her money, and how to save are the best lessons you can provide a child as they enter the world as adults.</p><p class="" style="white-space:pre-wrap;"><a href="https://www.linkedin.com/in/rahuldotiyer/">Rahul Iyer</a></p>

How to Teach your Kids About Money

<p class="" style="white-space:pre-wrap;">It’s an age-old question. Should you save before you pay down <a href="https://www.lendtable.com/news-and-blog/what-is-debt-and-how-to-handle-it">debt</a>?</p><p class="" style="white-space:pre-wrap;">It sounds logical that you should save first, this way you’re prepared for an emergency. But what about your debt? The interest that keeps accumulating can cause financial ruin. What’s the right answer?</p><p class="" style="white-space:pre-wrap;">Do both. Here’s how.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Set up a Basic Savings Account First</h3><p class="" style="white-space:pre-wrap;">You need an emergency fund or an account you can lean on when disaster strikes. No one knows when or how it will happen, but we all know life happens.</p><p class="" style="white-space:pre-wrap;">Without some type of emergency fund, you could find yourself in even deeper waters. Without money to cover the emergency, you have to use your everyday funds. Then what? How do you pay your bills?</p><p class="" style="white-space:pre-wrap;">Before you know it, you’re swimming in debt and can’t do anything about it. Instead, save $500 - $1,000 in an emergency fund first, then move on to <a href="https://www.lendtable.com/news-and-blog/4-proven-strategies-for-paying-off-debt">paying off your debt</a>.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Paying off Debt</h3><p class="" style="white-space:pre-wrap;">Once you have enough to cover a basic emergency, focus on your high-interest debt. Any debt with an interest rate over 15% is high.</p><p class="" style="white-space:pre-wrap;">Put any extra funds you have toward these debts right away. Pay the balance down as quickly as you can to avoid paying excessive interest charges.</p><p class="" style="white-space:pre-wrap;">Once you have your debts ‘under control’ you can split your funds between savings and paying off debt.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Saving and Paying Down Debt</h3><p class="" style="white-space:pre-wrap;">Once you’ve established your baseline, budget both savings and paying down debt each month. A good plan is the 50/30/20 budget. With this plan, 50% of your income covers your ‘required expenses’, 30% covers your wants or luxuries, and 20% covers your debt and savings.</p><p class="" style="white-space:pre-wrap;">If you bring home $7,000 a month, that means you should use around $1,400 for savings and debt pay off.</p><p class="" style="white-space:pre-wrap;">Here’s a way you can use it:</p><ul data-rte-list="default"><li><p class="" style="white-space:pre-wrap;">Max out your employer match contribution in your 401K (figure out the monthly amount you should contribute to max it out yearly)</p></li><li><p class="" style="white-space:pre-wrap;">Contribute to your IRA or taxable investment account</p></li><li><p class="" style="white-space:pre-wrap;">Pay down debts (pay more than the minimum payment required)</p></li><li><p class="" style="white-space:pre-wrap;">Put money in your high-yield savings account</p></li></ul><p class="" style="white-space:pre-wrap;">You can play with the numbers as you see fit, but make sure you always max out your employer’s match on your 401K, otherwise it’s like giving away free money. How you manage your funds from there depends on your circumstances, goals, and how much money you have.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Saving Before Paying Down Debt</h3><p class="" style="white-space:pre-wrap;">It’s kind of like the old adage, ‘what came first, the chicken or the egg?’ Saving before paying down debt is right in some circumstances, but not always. If you save too much and leave your debt unpaid, you’ll never realize the same rate of return.</p><p class="" style="white-space:pre-wrap;">For example, if your credit card has a 19.99% interest rate, you will never match that rate of return no matter where you saved or invested, so you get the best rate of return by paying your debt down. Do this cautiously, ensuring you have enough money saved for that impending emergency and you’ll <a href="https://www.lendtable.com/news-and-blog/5-ways-to-stay-out-of-debt">put yourself in a good position</a>.</p><p class="" style="white-space:pre-wrap;"><a href="https://www.linkedin.com/in/rahuldotiyer/">Rahul Iyer</a></p>

Should I Save Before I Pay Down my Debt?

<p class="" style="white-space:pre-wrap;">When you hear the word ‘inheritance’ you likely think of money you leave your <a href="https://www.lendtable.com/news-and-blog/how-to-teach-your-kids-about-money">kids</a> when you die. But what if you could leave it now, while you are alive? Wouldn’t you rather see your kids enjoy your money?</p><p class="" style="white-space:pre-wrap;">What if now were a more ideal time because they are in their younger adult years and could benefit from a windfall that would set them up for the future?</p><p class="" style="white-space:pre-wrap;">There’s a lot of factors that go into whether or not you should give your kids money now or in your will, but the bottom line is that most of the time, an early inheritance is worth it.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Waiting Might be too Late</h3><p class="" style="white-space:pre-wrap;">If you keep the money you intend to give to your children until you die, they may be in a position that they don’t need it. Not that anyone turns money down, but wouldn’t you rather gift it to them when they do need it?</p><p class="" style="white-space:pre-wrap;">Whether your children are in college and need money for grad school, want to make a down payment on a house, or want to change careers – these are all good times to give them money to help them grow and better their future. If you wait until you die and you live past the average life expectancy of 79 years old, chances are your children will be financially set.</p><p class="" style="white-space:pre-wrap;">Isn’t there more value in seeing them grow their future using the funds you provided?</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Your Kids can Skip Probate</h3><p class="" style="white-space:pre-wrap;">There’s nothing more frustrating than dealing with <a href="https://www.investopedia.com/terms/p/probate.asp">probate</a> after a loved one dies. The process while typically short has the potential to last a few years. That’s a few years your beneficiaries are without the funds and without you.</p><p class="" style="white-space:pre-wrap;">If you give an early inheritance, they skip probate and the money goes straight to them. As long as you stay within the $11.58 million gift limit, you don’t have to worry about your children getting taxed.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">You get to Watch your Kids Enjoy It</h3><p class="" style="white-space:pre-wrap;">Perhaps most important is the enjoyment you get to see in your children when they receive the money. Whether you give it to them as cash or you spend it in other ways, such as taking them on a luxurious trip, helping them pay for post-secondary education, or even helping them buy a house, you get to see the joy they create with the help of the funds you provided.</p><p class="" style="white-space:pre-wrap;">&nbsp;</p><h3 style="white-space:pre-wrap;">Be Careful When you Give your Kids Money Now and Not in Your Will</h3><p class="" style="white-space:pre-wrap;">Make sure you’re thinking long-term before you give your kids money now. Do you have enough in your <a href="https://www.lendtable.com/news-and-blog/are-you-missing-out-on-retirement-money-1-in-4-workers-are-making-a-big-mistake">retirement savings </a>to cover your expenses for the rest of your life? If you’re still on the younger end, you may need more money than you anticipate. Think through the costs and plan for the worst case scenario so you don’t put yourself in a financial bind just to see your kids enjoy the funds.</p><p class="" style="white-space:pre-wrap;"><a href="https://www.linkedin.com/in/rahuldotiyer/">Rahul Iyer</a></p>

Table Talk

Maximize your retirement planning

Join The Lendtable Family