INSURANCE

A defined-benefit plan, commonly known as a traditional pension plan, is a retirement plan funded by an employer that calculates employee benefits based on a formula that takes into account several factors, including age, employee’s salary, and length of employment. Defined-benefit pension plans, which still exist in some public-sector jobs, were common in the private sector up until about 40 years ago. As time passed, most companies found maintaining a defined-benefit plan too costly. Currently, only 15% of private-sector workers have access to a defined-benefit plan, according to the U.S..Bureau of …

If you can’t accept the risks of the stock market, you need to decide on the best place to keep your money while maximizing earnings. Many look to high-yield savings accounts (HYSAs) and certificates of deposit (CDs) as options. Both offer safe and somewhat lucrative ways to grow savings with minimal risk. But which is right for you? The following breakdown will help you determine which is best for your current situation and savings goals. What is a high-yield savings account (HYSA)? A high yield savings account is a savings account …

A personal loan can be a great way to pay for a home renovation project, fund a big expense, pay for a family vacation, or just cover unexpected costs that crop up. You can also use a personal loan to consolidate credit card debt and other outstanding balances, both to simplify repayment and save yourself money. Applying for a personal loan can be a quick process, especially if you apply online, but there are some documents you’ll probably need to provide as part of the process. Here’s a look at how …

A money order is a financial instrument that allows you to pay bills or reimburse friends and family without having to write a check or use cash. You can get one from a bank, but you don’t need a bank account to use it. Many people use money orders as an alternative to cash or checks as a safe, secure way to make payments. If you need to purchase a money order or someone has given you one as payment, it helps to know a little about how they work. How …

According to a recent report by SafeHome.org, about 55% of renters have insurance. However, a survey from the report finds that 16% of renters who don’t have a policy say they are likely to buy one in the coming 12 months. If you’re buying renter’s insurance for the first time, you may be relieved to know that it’s fairly easy to buy. It’s also fairly affordable: the national average rental insurance policy costs around $15 per month. Best ways to get renter’s insurance To make sure you get the optimal policy …

Checking accounts lie at the center of our financial lives, acting as the primary account where paychecks and other funds come in and where bills and other expenses exit. Like a security checkpoint at an airport, everything passes through no matter where it’s going to or coming from. Because checking accounts are so important, it’s critical to understand how they work and how to use one to meet your financial needs. Here’s a closer look at checking accounts and how to pick the best one for your financial situation. How checking …

If you’re like many homeowners, a sizable percentage of your budget goes toward your home loan each month. A mortgage refinance could help make those payments more manageable by lowering your interest rate, changing your loan term, or eliminating mortgage insurance. You could also tap your home equity with a cash-out refinance, which lets you borrow more than you owe while pocketing the difference. Whether you’re looking for the best mortgage refinance rates—or the best cash-out refinance mortgages—it’s helpful to know how long the refinance process might take. Here’s what to …

Savers who want to earn the most interest on their money should look at the best high-yield savings accounts. With interest rates on the rise, savers are earning higher rates in HYSA than they have in more than a decade. These accounts offer the functionality of traditional savings accounts but receive a much higher interest rate to grow your balances. Many of these accounts have no opening balance or minimum balance requirements, so they are open to every type of saver. Learn more about how to choose your savings account, how …

Certain alternative investments—such as hedge funds, private equity, and venture capital—aren’t available to anyone with an investment account. This is because they’re generally not registered with the U.S. Securities and Exchange Commission (SEC). If you’d like to invest in these things, you’ll likely need accredited investor status first. However, you can’t just sign up to become an accredited investor. You’ll first need to meet specific SEC-established requirements. Here’s what to know about accredited investors, how to become one, and the kinds of assets in which you can invest once you have …