Author: Young Finances

LaTisha is the founder of Young Finances, which teaches simple finance for millennials. She is a millennial lifestyle and money expert helping clients take an existing skill and turn it into an online business.

What started as a financial blog to hold herself accountable while she paid off debt of over $32,000, transformed into a self-development journey allowing her to create a life by design and not by default.
She encourages her audience to blend smart money habits with a dash of the royal treatment as she believes nothing should be too lavish. Her work has been featured in notable publications including Forbes, Fast Company, and Business Insider.

Categories
Budgeting & Saving

How to Fix Bad Credit?

Wondering how to fix my credit myself? Or how to fix bad credit? There’s no doubt that living in the modern world requires credit. Yes, you can live without a credit card and survive on cash or cashback debit cards.

I know because I did it for over two years as I paid off credit card debt. But what I really wanted to do was improve my credit score immediately.

However, when you are ready to buy a house, you’ll need to get your credit straightened out. In this post I’ll discuss getting a credit repair service as well as what steps you need to take if you decide you want to fix your credit score yourself. You might even be able to fix your credit in just 6 months.

These steps are so easy. Perfect guide for do it yourself credit repair.

Related articles from our approved partners:

How Can I Fix Bad Credit Myself? – 6 MonthCredit Repair Guide

First, watch this video from my friend Dominique over at Your Finances Simplified. He’s going to tell you exactly how to fix your credit.

Watched the video? Good.
Feeling overwhelmed at the next steps?
Yep. I understand.
Let’s take this step by step.

Take a deep breath. People think that having bad credit is the worse thing that can happen. But just calm down. You are taking the first steps which puts you on the right track.

Remember, it’s just money.

No one is going to die. Take control and get back in the driver’s seat!

Fix 1: Check Bad Credit

The first thing you’ll need is your creditor information. Get the most recent credit card statements, loan balances, and installment loan reports along with addresses and phone numbers. I recommend printing everything old-school style. It’s going to come in handy later.

Fix 2: Get a Free Credit Report

Then, take a second to get your free credit report from AnnualCreditReport.com. Each year you are able to pull your credit report for free from the three providers Experian, Equifax, and Transunion.

Optional: Get Your Free Credit Score

You can check an approximation of your credit score for free at Credit Sesame one of our approved partners, but if you are trying to fix your credit, you probably already know your credit score looks a little like this….

bad credit personified

But that’s ok. We’re going to put you on the good foot.

Fix 3: Review your credit report for errors (highlight each error).

You’re getting ready to take charge and stop being a victim. Most people don’t even realize what they could get removed from their credit just because of errors.

What should you look for?

Wait a minute. So, you’re telling me you didn’t watch the video above?

Scroll back up for me right quick and you’ll find out exactly what you should look for.

Or keep reading…

Dispute incorrect names, addresses, SSN, and date of birth via the certified mail.

You will need supporting documentation and letters. You will have to write a dispute letter and include the specifics of the inaccuracies. You want to dispute inaccurate, erroneous, outdated, misleading, and unverifiable information in your credit reports.

Tired of being harassed by your creditors? Maybe you’d prefer that someone else handle all of this for you?

In that case, you might was to work with a credit repair company to improve your credit.


Are you ready to…

  • Remove bankruptcies to rebuild credit?
  • Permanently delete foreclosures and repossessions?
  • Erase debts that were in collection?
  • Completely get credit cards under control?
  • Get approved for loans?
  • Get the best financing on cars and homes?

In that case, check out our partner Lexington Law for more details on how they can help you clean up your credit report.

Finally, fixing your credit permanently also means creating good habits and getting out of debt.

How getting out of debt is like the MTV show, I Used to Be Fat.

I used to watch this TV show on MTV called I Used to Be Fat. The show documents young adults, usually high school seniors and high school graduates who want to lose weight before they start college. Each episode features a different teen. I absolutely LOVE this show. I like seeing the determination and perseverance of these kids, they are really focused on their goals. Most of them thought about quitting along the way but each one makes it to the end and they usually reach their goal.

I was thinking the other day about how the TV show is very similar to a battle with debt. When you’re in debt, it can feel like you’re carrying around a second person, experiencing frugal fatigue, or that you have a spare tire of bills around your waist. I know because I’m working on getting out of debt myself. I realized that there are 3 major points we can learn from the MTV show I Used to Be Fat when trying to take control of our debt.
debt

Improve Your Credit Step 1 – Give Yourself a Deadline

Before the teens even begin a weight loss program, their coach/personal trainer gives them a large tear off number calendar to place on their wall. It has the total number of days until their program completion date, and every day they rip off the next number.

It is a good idea, when you are paying off debt, to set a deadline for your debt-free date, like 6 months. Setting a deadline is a way of making your goal specific. Every time you look at that calendar or see that date it will push your brain consciously and subconsciously to make it to your ultimate goal, to reduce spending and get out of debt.

Improve Your Credit Step 2 – Check in Regularly with a Coach

Every week, the kids had a weigh in. Their personal trainer was making sure that they were on track with how much weight they were supposed to be losing at each stage in the process. Sometimes they were attempting to lose one pound a day! I never thought that was possible or healthy, but most of the teens actually accomplished it under the supervision of their coach.

If you really want to prioritize your goal of becoming debt free then you really have to give yourself check points. You can enlist the help of a friend or even a debt counselor to help you along the way. Having a good support system can make all the difference.

Improve Your Credit Step 3 – Get Rid of Old Habits and Create New Ones

When one of the teens was at a restaurant with her friends, she ordered a lean meal instead of the greasy french fries that her friends had. The personal trainer also taught her how to cook healthier meals so that she would be able to maintain her new lifestyle change.

Becoming debt-free is not a one-time goal. It has to be a lifestyle change. When I decided to start getting out of debt, I had to first evaluate why I was in debt in the first place. I had to eliminate my habit of impulse spending and replace that habit with a good habit. Now I impulse buy stocks and my portfolio loves it! It’s not easy to change a habit that took years to cultivate, but with a good support system, it is entirely possible.

Are you ready to make a change?

Some of you may be thinking, I’m still young, so why should I care about my credit score? Lots of people have debt and less than stellar credit, but they’re still enjoying a cushy lifestyle. As long as I’m able to buy the things that I want, why should I be concerned? The answer is simple. Life is easier when you have good credit.

Take a look at it this way. Landlords, employers, and lenders need to determine whether they can trust you, and they look at your credit score as an indicator of your financial reputation. You may not think credit affects you greatly, but it does. When you ruin your financial reputation (a.k.a. credit score), it will take you a long time to restore it.

Poor credit affects your ability to rent, buy a car, get a home loan, and even open up accounts. Creditors don’t want to work with people with bad credit because the risk of not getting paid is very high. How can they trust that you will pay them back if you haven’t even paid others? If you’ve already tarnished your credit, here are some tips to help you fix your credit score and reestablish your life.

Improve Your Credit Step 4 – Make Your Payments on Time

This may sound trivial, but we all know that money can be tight, and skipping payments on one bill can help pay for other expenses. But, timely payments are the biggest factor affecting your credit score. Keep a budget, and make sure you have sufficient funds to make your credit card and loan payments on time.

Improve Your Credit Step 5 – Consider Getting a Secured Credit Card

Obviously, it will be very hard to get a regular credit card if you have bad credit. If you don’t qualify for a credit card, you can get a secured card instead. This is when the bank gives you a credit line equal to the deposit you make. If used wisely, a secured card can help nurse your poor credit to better health.

Improve Your Credit Step 4 – Add an Installment Loan

You can improve your score quickly if you show that you can be responsible for both major kinds of credit: revolving (credit cards) and installment (mortgages, auto, student loans, etc.). If you don’t have an installment loan and feel you are ready to handle one, consider adding a small personal loan. Stay away from expensive finance companies and “teaser” deals, and use a company that reports the loan to all three credit bureaus.

Improve Your Credit Step 5 – Avoid the Minimum Payment Trap

Credit cards come with high interest rates. We all know how our $2,000 computer ended up costing $8,168 because we only made the minimum payments at 20% on our credit card. Ouch, that hurts! Keep constant payments on your credit card (and don’t run them up again) and your balances will drop.

Improve Your Credit Step 6 – Use Your Credit Cards Lightly and Check Your Limits

Even if you pay your bills on time and in full each month, having big balances can hurt your score. Try to limit charges to 30% or less of your card’s limit. Lenders typically like to see a big gap between how much you’re charging and your available credit limit.

Improve Your Credit Step 7 – Keep Old Credit Cards

Don’t close out old credit cards. The longer your credit history, the better. Leave the accounts open but once you pay them off, stop using them. Closed accounts tend to bring down your score.

Improve Your Credit Step 8 – Suspend Credit Inquiries

The more credit inquiries you have, the more your credit score drops. Fix your credit and wait a while before allowing your credit to be pulled again.

Improve Your Credit Step 9 – Get a Goodwill Adjustment

If you have been responsible about paying your credit cards on time, the lender may agree to erase a late payment from your credit history. For more troubled accounts, communicate with your lender about possible options to erase previous delinquencies. If the lender agrees, it will improve your overall record.

Improve Your Credit Step 10 – Check Your Credit Report for Errors

You can check your credit report without negative scoring (once per year, for free) with the three credit bureaus at AnnualCreditReport.com. Make sure to look for any mistakes that could be hurting your score. If you see something wrong, make the effort to have it corrected.

Improve Your Credit Step 11 – Seek Professional Help

If you are overwhelmed with debt and don’t feel you can handle the problem on your own, consider working with a professional debt relief agent. They can help you explore your options and give you guidance on this post

It’s very easy to ruin your credit, but it takes time to build it back up. No matter how bad your credit is, you can take steps to make it better.

Sometimes we mishandle our budget, and we spend more than we should. (You know that you shouldn’t have bought that expensive flat screen TV). And, sometimes we end up in tough financial situations because of things beyond our control. Whether you have experienced job loss, illness, or another type of financial disruption, it’s important to know that you can turn things around.

It may not be easy, but step by step, you will be able to fix your financial situation. Just don’t delay facing the issue. The longer you wait, the harder it is for you to recover.

Categories
Budgeting & Saving

3 Ways to Save Money on College Expenses

There is no doubt that college is a large expense. It requires an investment of time and money. However, your college studies don’t have to break the bank. Here are three simple ways to save money on college expenses.

Shorten Time in College

Decreasing the number of semesters that you are in college is one of the best ways to save money on college expenses. Take more classes each semester or quarter. If you can take just one extra class, that could save you hundreds of dollars over the course of your college career.

If you are not able to take more classes, then choose to take classes during the summers or during mini­sessions. For example, my college offered courses during May­Mester. That is the two weeks between spring classes and fall classes. My brother’s college was set up a bit differently and he was able to take classes back-to-back in quarters.

Borrow Computer Time

These days, much of your coursework will be completed with some sort of online component. I remember a class where we met twice during the semester for a midterm and a final. The remaining class work had to be submitted via an online classroom. With that in mind, you should think about saving money on a desktop.

The most inexpensive way to complete online coursework is through your local public library. However, when the library closes, your access to the computer also ends. Look into inexpensive deals for laptops or desktops. An investment of 300 dollars is certainly worth it when you think about how it helps you to graduation!

Rent College Textbooks

On the first day of classes, the professor typically mentions the required course book. After I researched the price of the textbook, I almost popped a vein. Textbooks can be very expensive! However, I was able to cut costs by renting textbooks. There are many services that will allow you to rent a textbook for a fee. Then, when the semester is over, you simply return the book. You can also look into borrowing the textbook from a friend who has taken the course previously.

Learning to hack your expenses is an informal college class. It won’t be a grade listed on your transcripts, but you will certainly be tested on it in the real world. Figure out where you can trim expenses and make the most of your education dollar.

What about you? How did you hack your college expenses? Is there a suggestion that I missed?

Disclosure: This post was written as part of the University Of Phoenix Versus Program. I’m a compensated contributor, but the thoughts and ideas are my own.

Originally posted 2014-10-16 13:00:51.

Categories
Budgeting & Saving

Millennials & Money: Who does Gen Y Trust?

Picture this: you’re 26 years old and have just received the first significant bonus of your blossoming career. You’re trying to figure out how you might spend the money: should you travel or go on a shopping spree? Take in a weekend music festival with friends? On the other hand, you may be thinking about making a dent in the debt you’ve accumulated—or even considering putting a portion away to benefit your financial future. So, who can you turn to for solid financial advice?

According to Fidelity Investments’ first-ever Millennial Money Study, far too many Millennials (aka Gen Y, born 1980-1989) struggle to answer that question. When asked who they trust most for information on money matters, one third (33 percent) of Gen Y-ers identify their parents as the top choice, but almost one in four (23 percent) indicate they trust “no one” when it comes to advice about money, making it the second most common response. (Note: Watch a video of Millennials sharing their fears and tips on handling their finances.)

Looking for more information on managing your finances? After checking out the posts, videos, and resources offered here at YoungFinances.com, check out Fidelity’s MyMoney website. The web site has tools, videos and a wealth of resources targeted to people at the early stages of their investing lives, helping them tackle financial challenges and build plans for the future.

Millennials, do you really trust no one? Or are you just looking for a trustworthy institution?

Originally posted 2014-10-13 16:27:46.

Categories
Budgeting & Saving

Could You Spend 1 Billion Dollars? You Can’t. Here’s Why.

Is it really possible to spend one billion dollars?

I was listening to the latest GrowthEverywhere podcast (discovered earlier this morning via Growth Hackers) where they interviewed Emerson Spartz, a 27 year old middle school dropout. He homeschooled himself, started the number 1 fan site for Harry Potter fans, and today, across his various media properties, garners 160 million monthly page views.

In the interview, he mentions his financial goal. He wants to earn 1 billion dollars by the time he turns 30.

That’s right, 1 billion dollars.

That made me think. Does he want one billion dollars because he needs the money?

Of course not.

At some point, you earn enough money to support yourself, to give, and to buy a few toys.

I believe that his desire to reach one billion dollars is simply a ‘can I do it?‘ goal.

He likely wants to figure out if he has the mindset and mental capability required to earn one billion dollars. He’s already earned one million.

He has an above average mindset.

The mindset required to earn one million dollars is completely different than the mindset required to earn the average American household income of $51,000.

It has to be.

Otherwise, more Americans would be earning one million dollars, right?

But the mindset required to earn one billion dollars is not much different from the mindset to earn one million dollars.

It is simply a three zero difference.

If you think earning one million is impossible and earning one billion is impossible, then figuring out how to earn either one requires roughly the same mental effort, correct?

Impossible = Impossible

If you disagree then I would challenge you to search and find the definition of impossibler.

Exactly. It’s not a word.

So with that in mind, I tried to figure out what Emerson Spartz would do with one billion dollars.

We’ve already established that no one really needs one billion dollars. Heck, people survive everyday under the poverty level.

My fiancé and I agreed that it is not about the money. He even argued that no one could easily spend one billion dollars without wasting money.

I disagreed, stating that I could spend one billion dollars easily.

So he came up with a challenge.

How Would I Spend One Billion Dollars?

The challenge is this. Spend one billion dollars. Every single cent.

The conditions: I have to spend it on myself. No donating, no buying investments, none of that. I mean, if I made one billion dollars the first time, starting from zero, I could certainly make it again.

Donald Trump is living proof. He has been bankrupt and earned it all back and more.

Richard Pryor’s character in the movie Brewster’s Millions faced a similar challenge. He had to spend a $30 million inheritance in 30 days.

 

 

Faced with this challenge, someone who has never had that much money would find it difficult to figure out how to spend it.

I disagree. I think I could spend one billion.

Once I started looking for ways to spend one billion dollars, I realized that I had to dream big. Really big.

Here’s how I would spend one billion dollars.

1) Purchase a home ($125 million)

Could You Spend 1 Billion Dollars? It's Easier Than You Think. | Young Finances

The Maison de L’Amitie is a home in Palm Beach, Florida. I chose it because it is off the coast of Palm Beach, one of the most beautiful areas in Florida. The garage has space for 50 cars. However, I would only need enough space for one.

2) Purchase a diamond encrusted Mercedes Benz ($4 million)

Could You Spend 1 Billion Dollars? It's Easier Than You Think. | Young Finances
This car was rumored to be the possession of Saudi Prince Alwaleed. An article from Business Insider claims that the car is not his. Well, now that I’ve purchased it, it’s mine.

3) Purchase an island. Two to be exact. ($29.5 million + $43.3 million)

 

Could You Spend 1 Billion Dollars? It's Easier Than You Think. | Young Finances
This is a private island off the coast of Greece. It is non-devloped and only a 30 minute speed boat ride to Athens. The listing price is approximately $43.3 million USD. That seems reasonable.

Could You Spend 1 Billion Dollars? It's Easier Than You Think. | Young Finances
This is a private island in the Caribbean sea. It is also an undeveloped island and a part of the US Virgin Islands. The island is only five miles from Cyril E. King International Airport, making it accessible to commercial and private jet air service from around the world. Which brings me to my next purchase.

4) Purchase a jet ($100 million)

Could You Spend 1 Billion Dollars? It's Easier Than You Think. | Young Finances

This jet is on the more conservative side. I could have spent 600 million on an Airbus but I decided to budget my money for the islands. (budget, ha!) This Boeing 757 jet is one that Donald Trump is selling. Obviously I would have to get a new paint job.

5) Purchase a yacht ($263 million)

Could You Spend 1 Billion Dollars? It's Easier Than You Think. | Young Finances
This yacht is said to be owned by Russian billionaire, Alisher Usmanov. It is one of the largest yachts in the world and requires a crew of 47 people.

Whew! I’m exhausted. But I’ve only spent $564.8 million! It was really hard for me to figure out how to spend the remaining $435.2 million.

But here is how I would do it.

6) Develop two islands. ($36.5 million X 2)

Now that I have two islands, I have to develop them. I need roads and other infrastructure as well as a resort home to live in when I visit. I’ll also build private resort residences for friends or anyone that is willing to rent them out. This may break one of the rules because it would qualify as an investment property. However, as a condition of purchasing Necker Island, Richard Branson was required to develop a resort so I am going to assume that I have to do the same.
Richard Branson paid $10 million dollars to develop Necker Island. That was in 1978. Using this inflation calculator from the US Bureau of Labor Statistics, I calculated that in today’s money, 10 million dollars is equal to roughly 36.5 million.

7) Hire a private pilot for a 10 year contract term. ($2.1 million)

FindaPilot.com is a service matching pilots to job postings. One job posting listed the monthly compensation for a Boeing 757 pilot operator at $17,460. One year’s salary is really just a drop in the bucket so I extended the term over 10 years. This assumes that the entire compensation package is covered by the contract salary.

Ok, I’m almost tapped out by now. At this point, I’m just looking for ways to get rid of the remaining $360 million.

8) Buy a life for 12 million Candy Crush users ($207.8 million)

How many times have you gotten a request from a friend on Facebook asking you to send them a life in Candy Crush?

I’ve heard the game is addicting.

 

Could You Spend 1 Billion Dollars? It's Easier Than You Think | Young Finances
After the first few requests I blocked the app, but maybe I could finally give them a life. The company reports that approximately 12 million users spend an average of $17.32 a month. I’d be willing to buy a life or power up or whatever it’s called for each of them for one month.

9) Fritter away the remaining funds on unnecessary objects ($152.2 million)

Earlier this year, Oprah raised over $600 million auctioning off some of her most prized possessions. She decluttered and went back to the basics. Oprah is a billionaire but for her, less is more.

Now that I have completed this exercise, I can honestly say, I would have a hard time spending a billion dollars.

Yes, my fiancé was right.

Now I challenge you. Could you really spend one billion dollars? How would you do it?

Was it a fun exercise to try to find ways to spend money?

How are you spending the money you have now? Would your spending habits change if you had a billion dollars?

Originally posted 2014-10-12 15:52:33.

Categories
Career

Choosing the Right Degree for Your Career

Making the decision to attend college is a big one. The costs associated with a college degree could remain with you for several years after you graduate.

With that in mind, you might want to work backwards before choosing a degree. That is, figure out the type of lifestyle you want and how much you need to make to sustain that lifestyle.

For example, when I decided to go back to college after graduating with a Spanish degree, I researched top paying majors. I examined top majors like engineering, accounting, finance, and computer science before I settled on finance. I chose finance because I actually enjoyed learning about how money works and I figured it would help me in my personal finances as well.

According to Think Advisor, the top 10 paying degrees in 2014 are all in engineering. One of the top paying degrees is software engineering. If you have an interest in engineering then your degree choice is simple; it is a top paying degree, and you will probably find it enjoyable.

However, don’t choose a college degree just because it is a top paying field. You will be spending considerable time and money on this degree. Instead, choose a degree that will give you work that you will enjoy as well.

Though it may not be appropriate to simply choose the top paying degree, you could still use this method of working backwards to choosing a major. The Bureau of Labor Statistics has an Occupational Outlook Handbook that includes career information and job descriptions for almost any occupation you could want. It is important to take a bit of time and research your options.

Then, think about your personal skills. Not job skills, but the skills that make you, well, you.

Are you a talker?

Communications skills are necessary for jobs in sales. Are you an even better listener? You could be the top salesperson in your company. Do you find that friends often turn to you for advice? How about a career in counseling? Your personal skills can help you narrow down your degree choices.

Finally, remember that a significant decision like this one, choosing a college major, is one that you have to make for yourself. Think about what is most important to you and go from there. I chose to major in Spanish because I enjoyed speaking the language and learning about the Spanish culture. That has not changed. However, if I could do it all over again, I would likely double major in Spanish and Finance to pair my interests with a high paying degree.

What about you? Have you graduated from college? Are you working in your degree field? Maybe you’re on your way to college now. How did you choose your major?

Disclosure: This post was written as part of the University Of Phoenix Versus Program. I’m a compensated contributor, but the thoughts and ideas are my own.

Originally posted 2014-10-09 13:00:56.

Categories
Budgeting & Saving

What Should I Do With My Old 401k?

How long have you been with your employer? And how long do you plan to stay there? As a millennial, you may have a feeling of restlessness. An article from Forbes argues that job hopping is the new normal for millennials. And the most recent data released by the Bureau of Labor Statistics states that employees tend to stay with their current employer an average of 4.6 years.

If you have been with your company for a few years, you are probably thinking of that next step. It is important to continue to grow your career and stretch yourself in the process. You may decide to continue your education and go back to college or start a professional certification. Maybe you are thinking of taking some time off to travel and discover what you truly have a desire to do. It is possible that you’ve realized that you can support yourself with your side hustle and you are ready to become a full time entrepreneur.

Free Money

During your time with your employer you have likely contributed to the retirement plan. If your company offers a match program for retirement contributions, you likely contributed to take advantage of the free money.

Staying with your employer? Click here to watch why free money should make you dance.

Now that you are thinking of leaving, you wonder, “What happens to all of that money in my 401(k)?”

Don’t panic.

It’s your money. And you can take it with you.

And that’s where the Rollover IRA comes in.

The Rollover IRA

As an avid reader of Young Finances, you’ve heard of the Roth IRA and the Traditional IRA. You know that IRA stands for Individual Retirement Account and that it is a savings vehicle designed to help you save for retirement. You know that you will need to designate a beneficiary and that I have a preference when it comes to tax free money.

But I have yet to mention the Rollover IRA.

A Rollover IRA, also known as rollover, is simply a transfer of funds from a retirement account such as a 401 (k) into a Traditional or Roth IRA.

Let’s assume that you have already left your job. Starting a rollover will allow you to move assets from a 401(k) at your old employer into a brand spanking new IRA, Traditional or Roth. In essence, you would contact the administrator that holds your 401(k) and let them know that you want to rollover. They would close out your 401(k), cut you a check and you have 60 days to deposit that into an IRA account that you open.

The Rollover Tax Question

Of course, when dealing with retirement distributions, you have to consider the tax implications. Let’s see what the Internal Revenue Service has to say about it.

Will taxes be withheld from my distribution?

IRAs: IRA distributions paid to you are subject to 10% withholding unless you elect out of withholding or choose to have a different amount withheld. Withholding does not apply if the distribution is paid directly to another IRA trustee.

Retirement plans: A retirement plan distribution paid to you is subject to mandatory withholding of 20%, even if you intend to roll it over later. Withholding does not apply if you roll over the amount directly to another retirement account. A distribution sent to you in the form of a check payable to the receiving plan or IRA is not subject to withholding.

Well there you have it. Directly from Uncle Sam himself.

Tax withholding can be avoided if you roll over the distribution from a retirement plan directly to another retirement account.

You may also be thinking, why should I roll over?

Why not take the distribution, pay the tax penalty and buy a yacht to travel the world?

When you roll over a retirement plan distribution, you generally don’t have to pay tax on it until you withdraw it from the new plan. By rolling over, you are saving for your future and your money continues to grow tax-free.

If you want to allow your money to grow tax-free then a rollover may be right for you.

Ready to Rollover Your IRA?

I’ve discussed Betterment here at Young Finances several times. I have a Roth IRA with them and a few sub accounts dedicated to travel, long term investing and a recent investing challenge. I like them because they provide an easy way to invest with low costs. Betterment portfolios are customized based on your personal preferences and risk tolerance and they work around the clock optimizing returns at every level of risk.

It’s free to roll over 401(k) assets or an IRA to Betterment. There are no trading costs and portfolios contain cost-efficient index funds.

They make things easy.

To transfer your 401(k) assets, the direct rollover method is used which prevents any withholding or tax consequences.

Betterment also provides a rollover concierge to you and they are available to speak to your current 401(k) or IRA provider to make sure the transition of assets is completed smoothly.

Not rolling over? Open a Betterment account today and get a month free.

Something that could take days and tons of paperwork is made easy with Betterment. Instead of an overwhelming, time-consuming process, Betterment takes steps to ensure your money is put to work in an optimized portfolio as soon as possible.


Now that you know how easy it is to roll over, what job will you look for next? Or would you rather take a year to travel the world?

Originally posted 2014-10-06 06:00:58.