Which credit card offers the best deal? Should you take the cash rebate on the new car or the low interest rate? You are bombarded with confusing financial questions every day. Here are 20 more.
With a traditional IRA, you pay taxes when you withdraw the money. With a Roth IRA, you pay income tax in the year you earned the money, but pay nothing when you withdraw the funds during retirement.
If Bob expects to pay a higher income tax rate when he retires, then he's better off paying income tax now and withdrawing his money tax-free.
Payday loans have notoriously high APRs — above 500 percent in most cases — along with financing charges around $20 per loan. But bouncing a $20 check can cost you up to $50 between the fee charged by your bank and the penalty charged by the store. Plus you have to deposit the $15 to get your account back to zero. That amounts to an APR in the thousands.
APR is called "simple interest," because it takes the monthly interest rate and simply multiplies it by 12. APY is a more accurate reflection of what you would actually pay if you held a balance on a loan for an entire year, because it includes the interest that's compounded monthly and carries over.
A card that advertises an APR of 12 percent actually has an APY of 12.68 percent, while a card with an APY of 12.34 percent really has an APR of 11.69 percent.
IRAs and mutual funds are simply two types of accounts that let you invest in a diversified portfolio of securities within them. They can include stocks, bonds and CDs, so performance of each type varies greatly depending on how the funds are invested.
The rule is to pay down high-interest debt first, because it will cost you more over the life of the loan. And chances are you won't clear 17 percent in the stock market.
The hard truth of investing is that past performance is not an indicator of future performance. In fact, The Wall Street Journal ran a feature showing that professionally managed funds did only marginally better than the ones picked by a dart toss. Index funds, which cost less than loaded funds, at least guarantee you'll make what the market makes.
If you make one extra mortgage payment a year, you will save more than $55,000 in interest, plus you will pay off the loan in 24 years instead of 30.
At the end of the year, dealers are trying to get all of last year's inventory off the lot and boost their sales numbers for the year. Likewise, you are more likely to get a good deal at the very end of any month, when sales reps are trying to qualify for bonuses.
Savings account have notoriously low interest rates. Instead of letting her $2,000 collect dust in the bank, Sally should use that money to pay down a handsome chunk of her debt, which is growing by leaps and bounds every month.
The dead of winter is the best time to make an offer on a house because few other buyers are actively looking. Also, the owners just received their credit card bill for Christmas and can use the money.
If you exchange dollars you lose money to service charges, and if you use your credit card, you will be generally be charged a foreign transaction fee of 3 percent per purchase. The best bet is to use your ATM card. You will probably be charged $2 per withdrawal, but if you limit withdrawals by going big each time, you'll save money over the other options.
Airline ticket prices fluctuate with demand for open seats. More people want to fly on Fridays and Mondays (especially business travelers), but demand for Wednesdays is generally lighter. One huge exception is the Wednesday before Thanksgiving!
"Buy one, get one free" is the equivalent of a 100 percent discount, which is the same as two 50 percent discounts.
The U.S. bought Alaska from Russia in 1867 for $7.2 million, or 2 cents per acre. The Louisiana Purchase of 1803 ran around $15 million, or 4 cents per acre.
The cash rebate plus your down payment lower the principal of the loan to $13,000. Even at 6.99 percent, your monthly payment will be $12 lower per month than opting for the lower APR on a principal of $15,000.
Through rigorous testing, the FDA assures that all approved generic drugs have the same active ingredients and the exact same effectiveness as their brand-name competitors.
You'd have to charge quite a bit to the card for that $100 to pay for itself. If you charged $7,000, you would receive $105 in "cash back" rebates, which is just $5 more than the annual fee.
Monty Hall (born Monty Halperin) hosted the popular game show from 1963 to 1976.