It’s time to make work-from-home regulations permanent

To meet the overwhelming demand for loans, independent mortgage bankers have quickly adapted to social distancing and remote working via work-from-home models that were previously unimaginable. Through this rapid growth in use of online and digital correspondence, today’s IMBs continue to originate more than half of all new mortgages.

These rapid changes have not been without pause for concern with regard to regulatory requirements and legal statutes as well as enforcement. Many states and regulatory jurisdictions restrict, and in some cases unilaterally prohibit, mortgage workers from conducting their activities outside of the branch office. Fortunately, a patchwork of executive orders, temporary waivers, and do-not-enforce letters have enabled the workforce to continue operating safely from their homes, albeit temporarily. In turn, IMBs have acted responsibly, putting in place policies, processes and protocols to ensure robust managerial supervision over all remote employees and security over confidential and non-public information.

We believe that the move to a remote work model is a long-term, technology-driven transformation which was well underway prior to the pandemic and will continue long after the pandemic. The Community Home Lenders Association took the lead early on this issue, with a letter to the Conference of State Bank Supervisors. Work from home safeguards our workforce as well as our customers and ensures that mortgage credit continues to be available for the housing market. We urge state and federal regulators alike to address these temporary work-from-home flexibilities and to make them formal and permanent.

Our proposal makes the case for smart regulation. Smart regulation does not require that we choose between stronger or weaker sets of rules. Flexibility is appropriate and strengthens compliance. Allow mortgage employees to work from home without requiring their home to be licensed as a branch location. Allow them to work from home without imposing an arbitrary distance requirement to and from a licensed office. Consumers need to be protected as well. Require robust corporate policies and procedures to ensure sound managerial supervision of employees. Require that consumers’ data and private information is kept confidential and secure.

Mortgage servicing requirements by non-banks are another concern. Regulation can be effective without imposing unnecessary compliance burdens or costs on IMBs and ultimately on their customers. The CSBS is in the process of soliciting comments on a proposal to create financial and management requirements for non-bank servicers (often IMBs) in all 50 states. This is in response to the strong growth in servicing by nonbanks in the 12 years since the 2008 housing crisis. It makes sense for CSBS to ensure that the largest servicers are properly regulated. It is the handful of large servicers that have grown quickly that pose the great majority of financial and systemic servicing risk. It also makes sense to close servicing regulatory gaps for non-agency mortgage loans.

However, CHLA is requesting adjustments to this proposal to protect smaller nonbank servicers from new unnecessary burdens. These changes would support the CSBS’s overall goal of closing regulatory gaps in supervision of servicers without impeding the consumers’ access to credit. Smaller IMB lender/servicers primarily originate federal agency loans — GSE, FHA, VA and RHS loans — and are already subject to robust capital, liquidity and corporate management requirements by Fannie Mae, Freddie Mac and Ginnie Mae. The proposed requirements are largely duplicative of existing GSE and Ginnie Mae requirements. Therefore, in its comment letter to the CSBS, CHLA is asking that smaller servicers with de minimis levels of nonagency loans should be deemed in compliance with the new CSBS requirements if they are a Fannie Mae or Freddie Mac servicer (or Ginnie Mae issuer) in good standing.

The letter also asks for state-by-state exemptions from the new requirements in states where a servicer has a de minimis number of loans serviced in that state. CHLA members are typical of smaller community-based lender/servicers; they originate and service loans primarily in one or only a few states, but also originate and service smaller levels of loans in a number of states in proximity to their main state(s) of operation. Without exemptions in states with de minimis servicing volumes, smaller servicers will simply abandon servicing in these states.

Without these changes, the risk is that many smaller servicers will simply exit the servicing business and the servicing industry will be more concentrated, meaning less competition and higher prices and less personalized service. The broader impact would be more concentration of nationwide mega-servicers, leading to more financial and systemic risk exposure.

The choice is not between either more or less regulation. It is how to achieve smart regulation. Smart regulation is the best way to protect consumers and reduce risk, without imposing unnecessary compliance burdens on small lenders and the consumers they serve.

Source: nationalmortgagenews.com

Best Cities to Work From Home in 2021

Best Cities to Work From Home in 2021 – SmartAsset

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Since the onset of COVID-19, remote work has become the norm for many Americans, allowing them to continue to meet some of their expenses while saving where possible. In the late spring of 2020, about half of American workers were working from home, according to two surveys conducted by the National Bureau of Economic Research. Many researchers believe that increased work flexibility and work-from-home opportunities may continue even after the pandemic is over. With that in mind, SmartAsset looked at the best cities to work from home in 2021.

To determine our rankings, we compared 100 of the largest U.S. cities across seven metrics. They span work-from-home flexibility prior to and during COVID-19, along with employment opportunities, poverty rates and housing affordability. For details on our data sources and how we put all the information together to create our final rankings, check out the Data and Methodology section below.

This is SmartAsset’s third annual study on the best cities to work from home. Our 2020 edition can be found here. Note: This year’s methodology was adjusted to account for COVID-19 and its impact.

Key Findings

  • A strong showing from North Carolina. Three cities in North Carolina rank in our top 10: Raleigh, Durham and Charlotte, taking second, sixth and seventh place, respectively. In all three cities, the percentage of people working from home grew by more than 3% between 2014 and 2019, so that even prior to the onset of the COVID-19 pandemic, more than 7% of all three cities’ workforces worked remotely.
  • Mid-sized cities also rank well. With the exceptions of Charlotte, North Carolina and Austin, Texas, all other cities in our top 10 have populations between 240,000 and 500,000. These cities potentially offer residents larger homes and apartments better suited to working from home. In all eight cities, more than 80% of residences have two or more bedrooms and workforces of which more than 7% were remote in 2019.

1. Scottsdale, AZ

Scottsdale, Arizona ranks in the top five cities for four of the seven metrics we considered. Census Bureau data shows that in 2019 about 17.9% of workers did work from home, a 6.7% increase from 2014. Additionally, Scottsdale has the fourth-highest estimated percentage of the workforce who can work from home – at about 37% – and third-lowest 2019 poverty rate – at 6.0%.

2. Raleigh, NC

Like Scottsdale, a high proportion of the workforce in Raleigh, North Carolina worked from home prior to the COVID-19 pandemic. In total, 10.5% of the workforce worked remotely in 2019 – the fourth-highest rate for this metric in our study. Raleigh also ranks in the top quartile of our study for four other metrics: It has the 21st-highest estimated percentage of the workforce that can work from home (31.79%), fourth-largest five-year change in workers working from home (4.3%), 18th-lowest October 2020 unemployment rate (5.3%) and 21st-lowest poverty rate (10.9%).

3. Plano, TX

North of Dallas, Plano, Texas ranks as the No. 3 city to work from home in 2021. It ranks in the top 10% of the study for three metrics: percentage of the workforce who did work from home in 2019 (9.6%), estimated percentage of the workforce who are able to work from home (35.44%) and 2019 poverty rate (7.5%). Additionally, Plano has the 14th-lowest October 2020 unemployment rate, at 5.2%.

4. Gilbert, AZ

Working from home often requires more space, whether that’s a dedicated room or section of a room where one sets up shop. Gilbert, Arizona – one of our best cities to buy an affordable home – has the potential for just that, with a high percentage of residences that have two or more bedrooms. Census Bureau data shows that 96.3% of Gilbert apartments and homes have two or more bedrooms, the highest percentage for this metric in our study. Gilbert also ranks well in our study due to its high percentage of the workforce that worked from home in 2019 (9.5%) and relatively low poverty rate (4.6%).

5. St. Petersburg, FL

With particularly strong low unemployment numbers, St. Petersburg, Florida takes the No. 5 spot. As of October 2020, the greater Pinellas County unemployment rate was just 5.2%, which is 1.5 percentage points below the national average. Remote work has also grown more popular here over the years: The percentage of the workforce working from home grew by 4.6% in St. Petersburg from 2014 to 2019, the third-highest increase in the study.

6. Durham, NC

Durham, North Carolina ranks in the top third of cities across six of the seven metrics we considered, only falling behind for its high poverty rate (15.2%). Durham had the 10th-highest 2014-2019 increase in the study of the percentage of the workforce working from home – and as of 2019, more than 7% of the city’s workforce worked remotely. Taking into account recent changes during COVID-19, we estimate that an additional roughly 25% of the workforce could have telework flexibility.

The October 2020 employment rate in Durham stood at 5.7%. Furthermore, housing costs make up less than 36% of earnings and 86.3% of residences have two or more bedrooms.

7. Charlotte, NC

Charlotte, North Carolina saw the second-largest 2014-2019 increase in the study of the percentage of its workforce working from home, at 4.8%, such that in 2019, 10.0% of workers were remote. Charlotte ranks 23rd-lowest out of all 100 cities for its relatively low poverty rate, at 11.2%.

8. Colorado Springs, CO

Though housing costs as a percentage of earnings are high in Colorado Springs, Colorado, the city ranks in the top quartile of cities for four metrics. It saw the seventh-largest 2014-2019 increase in percentage of workers reporting they worked remotely (3.6%), and it had the 13th-highest percentage of 2019 remote workers (8.5%). Moreover, the city’s 2019 poverty rate is the 12th-lowest overall (9.3%), and it has the 17th-highest percentage of homes and apartments with two or more bedrooms (87.3%).

9. Austin, TX

Working from home was on the rise in Austin, Texas prior to COVID-19. The percentage of workers reporting they worked from home increased by 3.7% over five years, from 7.1% in 2014 to 10.8% in 2019. With that increase, Austin had the third-highest 2019 percentage of the workforce who worked from home across all 100 cities. Employment in Austin has remained strong during COVID-19 relative to other cities. As of October 2020, its unemployment rate was 5.2% – the 14th-lowest of 100 of the largest cities and 1.5 percentage points lower than the national average.

10. Fremont, CA

Fremont, California rounds out our list of the 10 best cities to work from home in 2021. Based on the occupational breakdown of workers, we found that upwards of 35% of Fremont’s workforce could work from home if necessary – a top-10 rate. Apartments and homes in Fremont also generally have the space for working from home. Census Bureau data shows that 87.7% of residences in Fremont have two or more bedrooms – the 13th-highest percentage in our study.

Data and Methodology

To find the best cities to work from home in 2021, we examined data for the 100 largest U.S. cities. We compared those cities across seven metrics:

  • Percentage of the workforce who worked from home in 2019. Data comes from the Census Bureau’s 2019 1-year American Community Survey.
  • Estimated percentage of the workforce who can work from home. This metric was calculated using data from the Bureau of Labor Statistics’ 2017-2018 Job Flexibilities and Work Schedules Survey and the Census Bureau’s 2019 1-year American Community Survey.
  • Five-year change in percentage of the workers reporting they work from home. This is the difference between the percentage of the workforce who worked from home in 2014 and 2019. Data comes from the Census Bureau’s 2014 and 2019 1-year American Community Surveys.
  • October 2020 unemployment rate. Data comes from the Bureau of Labor Statistics and is at the county level.
  • Poverty rate. Data comes from the Census Bureau’s 2019 1-year American Community Survey.
  • Housing costs as a percentage of earnings. This is median annual housing costs divided by median earnings for workers 16 years and older. Data comes from the Census Bureau’s 2019 1-year American Community Survey.
  • Percentage of residences with two or more bedrooms. This includes both owned and rented apartments and houses. Data comes from the Census Bureau’s 2019 1-year American Community Survey.

We ranked each city in every metric, giving a double weighting to one metric – the estimated percentage of the workforce who can work from home – and a full weighting to all other metrics. We then found each city’s average ranking and used that average to determine a final score. The city with the best average ranking received a score of 100. The city with the lowest average ranking received a score of 0.

Deciding Where to Live?

  • Buy or rent? Even if you have the savings to buy a first home, be sure the switch makes sense. If you are coming to a city and plan to stay for the long haul, buying may be the better option for you. Additionally, a home may offer more space for people who do regularly work from home. However, if your stop in a new city will be a short one, renting may make the most sense. SmartAsset’s rent vs. buy calculator can help you see the cost differential between purchasing a home or apartment and renting.
  • Mortgage management. It is important when purchasing a home to know what you’ll pay each month and for how long. To get a sense of what that might look like, check out SmartAsset’s free mortgage calculator.
  • Seek out trusted advice. No matter where you live, a financial advisor can help you get your financial life in order. Finding the right financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with financial advisors in your area in five minutes. If you’re ready to be matched with local advisors that will help you achieve your financial goals, get started now.

Questions about our study? Contact us at press@smartasset.com.

Photo credit: ©iStock.com/

Stephanie Horan, CEPF® Stephanie Horan is a data journalist at SmartAsset. A Certified Educator of Personal Finance (CEPF®), she sources and analyzes data to write studies relating to a variety of topics including mortgage, retirement and budgeting. Before coming to SmartAsset, she worked as an analyst at an asset management firm. Stephanie graduated from Williams College with a degree in Mathematics. Originally from Philadelphia, she has always been a Yankees fan and currently lives in New York.
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Source: smartasset.com

How to Maximize Credit Card Rewards and Earn Cash and Perks

If you’re looking for ways to put some extra cash in your pocket, make sure to take advantage of credit card rewards programs.

Credit card companies and banks make some of their money from the merchant interchange fees that are charged when you use your card.

As an incentive for you to use their cards, many credit card issuers pass some of those funds on to the consumer in the form of credit card rewards.

If you have good credit and the ability and discipline to pay off your credit cards in full each month, you should try to maximize your credit card rewards. Otherwise you may be leaving a lot of money on the table.

But it can be challenging to navigate the world of credit card rewards. Hundreds, if not thousands, of different credit cards exist, and the type and amount of rewards vary with each card.

There are three main kinds of rewards card offers available:

  • Bank and credit card points: Chase Ultimate Rewards, American Express Membership Rewards, etc.
  • Airline miles and hotel points: Delta SkyMiles, Hilton Honors points, etc.
  • Cash back: Straight cash that can be redeemed either as statement credits or checks mailed to you.

How to Maximize Your Credit Card Rewards

You have three different ways to maximize any credit card rewards program:

  • The sign-up bonus or welcome offer: Many cards offer a large number of miles or points as a welcome bonus for signing up and using the card to make purchases totaling a specific amount within a specified time period.
  • Rewards for spending: Most rewards credit cards offer between one and five points for every dollar you spend on the card. Some cards offer the same rewards on every purchase, while others offer a greater reward for buying certain products.
  • Perks: Simply having certain credit cards can get you perks like free checked bags on certain airlines, hotel elite status or membership with airline lounge clubs and other retail partners.

Usually, the rewards for signing up are much higher than the rewards you get from ongoing spending, so you may want to pursue sign-up bonuses on multiple credit cards as a way of racking up rewards.

Consider a card like the Chase Sapphire Preferred, where you can get 60,000 Ultimate Rewards points for spending $4,000 in the first three months of having the card. That means that while you’re meeting that minimum spending requirement, you’re earning 15 Ultimate Rewards points per dollar. Compare that to the one or two points you’ll earn with each dollar of spending after meeting the minimum spending. You can see the difference.

Other than getting the welcome bonus offers for signing up for new credit cards, another great way to maximize your rewards is by paying attention to bonus categories on your cards. Some cards offer a flat 1 or 2 points for every dollar you spend.

How Applying for Credit Cards Affects Your Credit Score

It’s important to be aware of how applying for new credit cards affects your credit score.

Your credit score consists of five factors, and one of the largest factors is your credit utilization.

Credit utilization is the percentage of your total available credit that you’re currently using. If you have one credit card with a $10,000 credit limit and you charge $2,000 to that card, then your utilization percentage is 20%. But if you have 10 different cards, each with $10,000 credit limits, then that your credit utilization percentage is only 2%.

Since a lower credit utilization is better, having multiple credit cards can actually help this part of your credit score.

New credit — how recently you’ve applied for new credit cards — accounts for about 10% of your credit score. When you apply for a new credit card, your credit score usually will dip 3-5 points. However, if you’re conscientious with your credit card usage, your score will come back up in a few months.

What to Watch Out for When Using Credit Card Rewards

While it’s true that careful use of credit cards can be a boon, you should watch out for pitfalls.

The first thing is to make sure that you have the financial ability, discipline and organization to manage all of your credit cards. Missing payments and paying credit card interest and fees will quickly sap up any rewards you might earn.

Another thing to be aware of is the psychology of credit card rewards. It can be easy to justify additional spending because you’re getting rewards or cash back, but remember that buying something that you don’t need in order to get 2% cash back is a waste of 98% of your money.

The Best Credit Cards to Get Started

Before signing up for a new credit card, it’s best to pay off your existing cards first — otherwise the fees and interest will quickly outweigh any rewards you earn.

If you’re ready to start shopping rewards offers, here are five credit cards to consider. Note that these introductory offers are subject to change:

  • Chase Sapphire Preferred – The Sapphire Preferred card earns valuable Chase Ultimate Rewards and currently offers 60,000 Ultimate Rewards if you spend $4,000 in the first three months. It comes with a $95 annual fee.
  • Capital One Venture Rewards – The Capital One Venture Rewards is offering 100,000 Venture miles, which can be used on any airline or at any hotel. It also comes with a $95 annual fee.
  • Barclays American AAdvantage Aviator Red – With the AAdvantage Aviator Red card, you’ll get 50,000 American Airlines miles after paying the $99 annual fee and making only one purchase.
  • American Express Hilton Honors – If you’re looking for a hotel card, consider the no-fee Hilton Honors card, which comes with a signup bonus of 80,000 Hilton Honors points after spending $1,000 in three months. There is no annual fee.
  • Bank of America Premium Rewards – The Bank of America Premium Rewards card comes with a bonus of 50,000 Preferred Rewards points (worth $500) after spending $3,000 in the first three months. The card has a $95 annual fee.

The Bottom Line

The best credit card is the one that gets you the rewards that help you do what is most important to you.

If you’re looking to maximize travel credit, then pick an upcoming trip and figure out what airline miles and hotel chain points you’ll need. Then pick the credit cards that give those miles and points. If you want to maximize your cash back, look for a card with a good signup bonus that either offers cash back or bank points that can be converted into cash.

Dan Miller is a contributor to The Penny Hoarder.

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Source: thepennyhoarder.com

DoorDash vs. UberEats: Which App Is Right For Your Next Side Gig?

For better or worse, apps like DoorDash and Uber Eats have disrupted the food-delivery industry. Since their launch in 2013 and 2014 respectively, restaurants across the country have outsourced delivery services to independent drivers who use the apps to make extra cash.

During the pandemic, these services have seen demand like never before. For customers, the apps make ordering food from just about any restaurant as easy as opening their smartphones. For drivers, it’s almost as easy to land a delivery job hawking food from local eateries.

But before you download your next job, take some time to review the key differences between DoorDash and Uber Eats so that you can make the most of your delivery gig.

DoorDash vs Uber Eats: The Top Food Delivery Apps Duke It Out

The general premise of the two apps is almost identical: Customers place food orders at local restaurants. The apps alert drivers in the area with the order details. The first driver to accept the order picks up the food and drops it off to the customer. Simple enough, right?

Several differences are worth noting, though. Some minor and some major. We took a deep dive into those differences, looking at pay, vehicle and job requirements, available locations, driver reviews and more to help you make an informed decision before you start delivering.

And if it’s too close to call, you can always sign up for both to see which one suits you better.

Round 1: App Reviews

A woman looks at what's offered on Uber Eats.
Chris Zuppa/The Penny Hoarder.

Because the apps are so popular, they’ve amassed more than 4.1 million driver reviews. Both companies require their drivers to use different apps than customers, a huge perk when trying to get a sense of drivers’ perspective. Worker reviews from Glassdoor are also included.

DoorDash Driver (Dasher) Reviews

Feedback from Dashers is overall mixed, but there’s a clear preference for the iOS version of the app. Trends in negative reviews across all platforms show that many drivers have trouble with glitches and crashes, especially Android users, and that the nature of the work takes a toll on their vehicles. Many negative reviews mention that DoorDash’s strict performance metrics are a hassle.

Workers reviewed DoorDash more than 760,000 times.

App Store (iOS) review: 4.7 out of 5.
Google Play (Android) review: 3.3 out of 5.

Glassdoor review: 3.7 out of 5.

Uber Driver Reviews

More than 3 million drivers reviewed Uber. A caveat worth noting is that Uber has one driver app. That means it’s hard to get the opinions of only Uber Eats drivers because general Uber app reviews are mixed in. Overall, reviews are positive.

Trends in negative delivery reviews on Glassdoor indicate GPS issues and trouble contacting customer service. Several drivers mentioned problems with promotion and surge pay (bonus pay during in-demand times). Negative reviews regarding vehicle wear-and-tear are common.

App Store (iOS) review: 4.6 out of 5.

Google Play (Android) review: 3.8 out of 5.

Glassdoor review: 3.9 out of 5.

Round 2: Job and Vehicle Requirements

A woman drives for Uber.
Carmen Mandato/ The Penny Hoarder

To become a Dasher or Uber Eats driver, you have to meet a baseline of requirements. Some are vehicle related and some are age and experience related.

DoorDash

To qualify as a Dasher you must be at least 18. Dashers need to have a valid driver’s license. There are no car requirements, but auto insurance is required. In some markets you can make deliveries on scooters, bicycles and motorcycles.

Uber Eats

To make automobile deliveries, the minimum age requirement is based on your local jurisdiction, plus at least one year of driving experience. Vehicles must be no more than 20 years old. Drivers must be properly insured and can use bikes and scooters in certain markets. The age requirements are higher for those who prefer two wheels — 18 for bicycles and 19 for scooters.

Round 3: Sign-Up Process

Becoming a delivery driver for DoorDash and Uber Eats is simpler than landing a part-time job. You can complete the entire process from your smartphone or computer.

DoorDash

You can sign up to become a Dasher on the driver app. You’ll have to consent to a background and motor vehicle check (and pass both). They could take as little as a few days, but err on the side of a week or two.

After passing the checks, you’ll need to select what type of “orientation” you want. The pandemic paused in-person orientations. Depending on your market you may need to request an “activation kit” instead. Receiving your activation kit may take an extra couple of weeks, according to driver reviews.

The activation kit includes a Dasher manual, a hot bag and a credit card, which is used to pay for orders. Once you receive and set up the card through the app, you can start accepting orders.

Uber Eats

For drivers new to Uber, you can sign up on the website or through the driver app. Because of the stricter vehicle requirements, the application requires more detailed information on your ride. A background check is also required, which may take three to five business days to process.

After the background check clears and your application is approved, you’re free to start taking orders. No orientation or additional equipment is needed.

If you’re a current rideshare driver for Uber, it’s easy to start delivering with Uber Eats. You simply opt in to Uber Eats orders through the driver app and start delivering without any additional screening.

Round 4: Pay and Tipping

The two apps handle pay a little differently, both in how you get paid and how you pay for customers’ orders when you pick them up. Neither company offers guaranteed wages (unless you live in California).

DoorDash

As of Fall 2019, the company switched to a payment model where Dashers earn a higher base pay per order in addition to keeping 100% of their tips. Previously, a customer’s tip would subsidize the Dasher’s base pay.

Dashers report earning between $11 and $15 an hour depending on location, but those earnings aren’t guaranteed. Pay is based on how many orders you accept per hour and how much customers tip you. DoorDash pays weekly through direct deposit, or you can access your earnings early through Fast Pay, for $1.99.

When picking up orders, you may be required to pay for the order using the company red card from your activation kit.

Uber Eats

Depending on your location, you can expect to earn $11 to $14 an hour on average. Again, those wages aren’t guaranteed because your earnings are based on orders and tips. With Uber Eats, you pocket 100% of your customers’ tips. You get paid weekly via direct deposit, or you can pay a fee to access your earnings early through Instant Pay for 50 cents.

You won’t be involved in the payment process for food orders. Partner restaurants are reimbursed directly by Uber.

Round 5: Available Locations

People walk alongside a lake and tall buildings.
Aileen Perilla/ The Penny Hoarder

This one’s easy. Both services are available in most big cities in all 50 states.

Previously, DoorDash and Uber Eats ran driver support centers in major metro areas of most states. In 2020, many of these centers closed due to the coronavirus. Some still exist, but neither company offers a comprehensive, public list of remaining locations.

Final Round: Additional Perks

Promotional offers are popular with both DoorDash and Uber, but they’re temporary and vary by location. Aside from sign-up bonuses and referral codes, here are a couple perks that are here to stay.

DoorDash

A few perks unique to DoorDash include grocery delivery options, automatic insurance coverage and health care services.

After you’re screened and accepted as a Dasher, you can choose to deliver food in any city where DoorDash operates, meaning there are no hard location requirements. The company also launched grocery delivery services in some Midwest and West Coast areas.

Dashers also get supplemental auto insurance and occupational accident insurance for accidents or injuries that fall outside your current auto insurance. The insurance plan covers up to $1 million in medical costs, a weekly payment of $500 for disabilities and $150,000 to dependents for fatal accidents. Coverage is automatic. There are no deductibles or premiums.

While DoorDash doesn’t offer health insurance, the company does partner with Stride Health, which provides free health care advising and assistance to Dashers who need help finding affordable insurance plans.

Uber Eats

Uber Eats drivers get a variety of discounts and may be eligible for Uber Pro perks.

All Uber drivers receive discounts for vehicle maintenance and phone service plans. Uber also partners with Stride Health to provide health plans and tax advice. Drivers automatically receive supplemental auto insurance, which covers up to $1 million in damages. There’s a $1,000 deductible before benefits pay out.

Uber Pro perks have recently expanded to all of Uber’s markets across the U.S. Only top-rated drivers receive Pro perks like tuition and gas reimbursement, and the program is designed for Uber drivers primarily, not Uber Eats drivers.

If you drive for both Uber and Uber Eats, your food deliveries may apply to Uber Pro, but Uber-Eats-only drivers aren’t eligible.

Final Decision in DoorDash vs Uber Eats

Ding! Ding! It was an even match-up. Uber Eats and DoorDash were neck and neck throughout. No knockout punches. A good few jabs by DoorDash’s insurance coverage and grocery options and a couple of hooks by Uber’s overall ratings and ability to switch to ridesharing.

The decision goes to our judges. (That’s you.)

Adam Hardy is a staff writer at The Penny Hoarder. He covers the gig economy, remote work and other unique ways to make money. Read his ​latest articles here, or say hi on Twitter @hardyjournalism.

Source: thepennyhoarder.com

Dear Penny: How Do I Save for Retirement on a Teacher’s Salary?

Dear Penny,

I’m 51 years old and don’t have a large nest egg. I’m a single parent with three kids. I’m a second career middle school teacher, so there is not a lot of money left over each month. 

How much money should I be saving to be able to retire in my 70s? Where should I invest that money?

-B.

Dear B.,

You still have 20 years to build your nest egg if all goes as planned. Sure, you’ve missed out on the extra years of compounding you’d have gotten had you accumulated substantial savings in your 20s and 30s. But that’s not uncommon. I’ve gotten plenty of letters from people in their 50s or 60s with nothing saved who are asking how they can retire next year.

I like that you’re already planning to work longer to make up for a late start. But here’s my nagging concern: What if you can’t work into your 70s?

The unfortunate reality is that a lot of workers are forced to retire early for a host of reasons. They lose their jobs, or they have to stop for health reasons or to care for a family member. So it’s essential to have a Plan B should you need to leave the workforce earlier than you’d hoped.

Retirement planning naturally comes with a ton of uncertainty. But since I don’t know what you earn, whether you have debt or how much you have saved, I’m going to have to respond to your question about how much to save with the vague and unsatisfying answer of: “As much as you can.”

Perhaps I can be more helpful if we work backward here. Instead of talking about how much you need to save, let’s talk about how much you need to retire. You can set savings goals from there.

The standard advice is that you need to replace about 70% to 80% of your pre-retirement income. Of course, if you can retire without a mortgage or any other debt, you could err on the lower side — perhaps even less.

For the average worker, Social Security benefits will replace about 40% of income. If you’re able to work for another two decades and get your maximum benefit at age 70, you can probably count on your benefit replacing substantially more. Your benefit will be up to 76% higher if you can delay until you’re 70 instead of claiming as early as possible at 62. That can make an enormous difference when you’re lacking in savings.

But since a Plan B is essential here, let’s only assume that your Social Security benefits will provide 40%. So you need at least enough savings to cover 30%.

If you have a retirement plan through your job with an employer match, getting that full contribution is your No. 1 goal. Once you’ve done that, try to max out your Roth IRA contribution. Since you’re over 50, you can contribute $7,000 in 2021, but for people younger than 50, the limit is $6,000.

If you maxed out your contributions under the current limits by investing $583 a month and earn 7% returns, you’d have $185,000 after 15 years. Do that for 20 years and you’d have a little more than $300,000. The benefit to saving in a Roth IRA is that the money will be tax-free when you retire.

The traditional rule of thumb is that you want to limit your retirement withdrawals to 4% each year to avoid outliving your savings. But that rule assumes you’ll be retired for 30 years. Of course, the longer you work and avoid tapping into your savings, the more you can withdraw later on.

Choosing what to invest in doesn’t need to be complicated. If you open an IRA through a major brokerage, they can use algorithms to automatically invest your money based on your age and when you want to retire.

By now you’re probably asking: How am I supposed to do all that as a single mom with a teacher’s salary? It pains me to say this, but yours may be a situation where even the most extreme budgeting isn’t enough to make your paycheck stretch as far as it needs to go. You may need to look at ways to earn additional income. Could you use the summertime or at least one weekend day each week to make extra money? Some teachers earn extra money by doing online tutoring or teaching English as a second language virtually, for example.

I hate even suggesting that. Anyone who teaches middle school truly deserves their time off. But unfortunately, I can’t change the fact that we underpay teachers. I want a solution for you that doesn’t involve working forever. That may mean you have to work more now.

Robin Hartill is a certified financial planner and a senior editor at The Penny Hoarder. Send your tricky money questions to [email protected].

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Source: thepennyhoarder.com

9 Financial Strategies for Padding Your Bank Account in Case 2021 Goes Sideways

So, you thought 2020 was bad? Just wait!

OK, we’re kidding. Obviously, 2021 should turn out way better than 2020 did, right?

There’s no way it could be worse, right?

Right?

Welllllllll… we hate to sound like pessimists, but if there’s one thing life has taught us, it’s that things can always get worse.

Maybe COVID’s sequel shows up. Maybe the economy crashes again. Maybe our weird politics get even weirder. Maybe aliens land in Times Square.

Just in case, we’ve got some proactive moves you should make to protect your bank account in case things go south. Before the next crisis gets going, let’s get started with the protective measures:

1. Save Up An Emergency Fund

This past year has taught us the hard way that everyone should have an emergency fund. You need a place where you can safely stash your savings away — but still earn money on it.

Under your mattress or in a safe will get you nothing. And a typical savings account won’t do you much better. (Ahem, 0.06% is nothing these days.)

But a debit card called Aspiration lets you earn up to 5% cash back and up to 16 times the average interest on the money in your account.

Not too shabby!

Enter your email address here to get a free Aspiration Spend and Save account. After you confirm your email, securely link your bank account so they can start helping you get extra cash. Your money is FDIC insured and they use a military-grade encryption which is nerd talk for “this is totally safe.”

2. Stop Overpaying for Stuff

Your bank account will be in better shape in 2021 if you stop overpaying for things. For instance, wouldn’t it be nice if you got an alert any time you’re shopping on Walmart and are about to get ripped off?

That’s exactly what a free service called Capital One Shopping does. (No need to be a Capital One customer to use it!)

Capital One Shopping’s free alerts can be added to your browser. Before you check out, it’ll check other websites, including Amazon, Target, eBay and others to see if your item is available for cheaper. It will also show you coupon codes, set up price-drop alerts and even let you see the item’s price history.

Let’s say you’re shopping for a new TV. You’re ready to check out, and you assume you’re getting the best price. Here’s when Capital One Shopping will pop up and let you know if you’re about to overpay. It will even automatically apply any known coupon codes to your order.

So far, Capital One Shopping has saved users more than $70 million.

You can get started with Capital One Shopping in just a few minutes to see if you’re overpaying online.

3. Get Paid Every Time You Buy Toilet Paper

Grocery shopping was never exactly pleasant. But these days, it’s a downright struggle. Fighting crowds; keeping six feet of space — just buying toilet paper is a feat. Shouldn’t you have something to show for it?

A free app called Fetch Rewards will reward you with gift cards just for buying toilet paper and more than 250 other items at the grocery store.

Here’s how it works: After you’ve downloaded the app, just take a picture of your receipt showing you purchased an item from one of the brands listed in Fetch. For your efforts, you’ll earn gift cards to places like Amazon or Walmart.

You can download the free Fetch Rewards app here to start getting free gift cards. Over a million people already have, so they must be onto something…

4. Knock $540/Year From Your Car Insurance in Minutes

Car insurance is another thing you shouldn’t overpay for in 2021. When’s the last time you checked car insurance prices?

You should shop your options every six months or so — it could save you some serious money. Let’s be real, though. It’s probably not the first thing you think about when you wake up. But it doesn’t have to be.

A website called Insure.com makes it super easy to compare car insurance prices. All you have to do is enter your ZIP code and your age, and it’ll show you your options.

Using Insure.com, people have saved an average of $540 a year.

Yup. That could be $500 back in your pocket just for taking a few minutes to look at your options.

5. Stop Paying Your Credit Card Company

If things go south financially, the last thing you want to be saddled with is credit card debt. And the truth is, your credit card company doesn’t really care. It’s just getting rich by ripping you off with high interest rates. But a website called AmOne wants to help.

If you owe your credit card companies $50,000 or less, AmOne will match you with a low-interest loan you can use to pay off every single one of your balances.

The benefit? You’ll be left with one bill to pay each month. And because personal loans have lower interest rates (AmOne rates start at 3.49% APR), you’ll get out of debt that much faster. Plus: No credit card payment this month.

AmOne keeps your information confidential and secure, which is probably why after 20 years in business, it still has an A+ rating with the Better Business Bureau.

It takes two minutes to see if you qualify for up to $50,000 online. You do need to give AmOne a real phone number in order to qualify, but don’t worry — they won’t spam you with phone calls.

6. Cut Your Food Budget by Planning Ahead

Even if you’re gainfully employed and not in imminent danger of being evicted, you’re probably struggling with bills like most of us are. Groceries are a huge part of everyone’s budget these days, so they’re a big target for savings.

Try preparing for the week ahead with some meal planning. This goes beyond just making a shopping list. Real meal planning helps you save money because it helps you use what you buy, preventing food and money waste. It also prevents you from spending extra cash on emergency lunches or late-night takeout.

First, figure out how many meals you’re responsible for making every week. If it’s just you, your answer might be 21: seven breakfasts, lunches and dinners. If you have a family, count meals per person — a dinner for three people counts as three dinners, even if you all eat the same thing.

Now figure out how much food you’ll need to buy to make it until your next grocery trip. If you buy the same items repeatedly, you know which ones to stock up on when they go on sale. Stocking up on sale items also helps you freeze meals for the future. If there’s a way to buy in bulk and prep the foods you eat the most often, do it!

7. Add $225 to Your Wallet Just for Watching the News

It’s been a historic time for news, and we’re all constantly refreshing for the latest updates. You probably know more than one news-junkie who fancies themselves an expert in respiratory illness or a political mastermind.

And research companies want to pay you to keep watching. You could add up to $225 a month to your pocket by signing up for a free account with InboxDollars. They’ll present you with short news clips to choose from every day, then ask you a few questions about them.

You just have to answer honestly, and InboxDollars will continue to pay you every month. This might sound too good to be true, but it’s already paid its users more than $56 million.

It takes about one minute to sign up, and start getting paid to watch the news.

Mike Brassfield ([email protected]) is a senior writer at The Penny Hoarder. He’s got his game face on and is ready for 2021, come hell or high water.

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Source: thepennyhoarder.com