🧟 Protect Yourself From A “Zombie Mortgage”

Stat Of The Day

11%

RIP, summer Fridays? According to a recent survey, just 11% of workers say their employer offers this perk, where you get to check out early at the end of the week (or not report to work at all). That’s down from 55% in 2019. As CNBC reports, while summer Fridays are on the decline, work-from-home Fridays (or perhaps work-from-the-beach Fridays?) are becoming more popular. The question is…does your employer know?

Busting the Top 10 Investing Myths

It’s no secret…women’s wealth is growing and we’re investing in the stock market in larger numbers than ever before. A 2023 study by Fidelity found that 60 percent of women are invested in the stock market, up from just 44 percent in 2018. Michele Cagan, author of "Stock Market 101," wants to see that number get even higher.

This week on the HerMoney Podcast*, Cagan, who has spent her career as a CPA and financial mentor, breaks down the top 10 misconceptions surrounding investing.

One of them? Investing is too risky and you’d be better off putting your money in a high-yield savings account. "Investing is actually not risky. It's trading that's risky, and those aren't the same thing," Cagan says. "Investing has some risk attached to it, but when you don't invest, you're also putting your money at risk because the purchasing power of your money goes down over time."

Listen in to hear the 9 other myths that could be holding you back from growing your money.

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This Week In Your Wallet

Home swapping (à la a little rom-com called "The Holiday") is becoming increasingly popular as travelers look to save cash. "After years of pandemic quarantine, many 20- and 30-something travelers yearn for what they deem to be an authentic experience: staying at places longer, discovering neighborhoods off the beaten path and trying to live like a local," explains The Washington Post. Saving money isn’t the only benefit. Home swappers say doing so can provide peace of mind while you’re away. "With apartment swaps, there’s a little more sense of community," home swapper Valerie Hamerling tells the Post. "You both have skin in the game. You’re taking care of someone else’s space, while they’re taking care of yours." Sign us up!

Beware the ‘zombie mortgage.’ "These aren’t creatures from the underworld, but mortgages that homeowners forgot about or lenders said they would write off, but didn’t, only to reappear years later," The New York Times reports. A recent investigation showed that in New York State alone, there were more than 100,000 second mortgages where lenders began the process of foreclosure. Experts say these zombie mortgages, which originated during the housing bubble years of 2004 to 2008, are rising from the dead due to record-high home prices. "Rising property values build equity into a property, enabling a secondary mortgage holder to make money even after the first mortgage holder is paid," reports the Times. Luckily, there are things you can do to protect yourself.

There’s still time to take advantage of higher savings and bond rates…but the clock is ticking. "As the Federal Reserve moved to tame inflation and raised interest rates over the past two years, the returns on bonds and other savings vehicles surged," The Wall Street Journal reports. "Many people took advantage of the rising rates, but many others didn’t." According to the FDIC, consumers have $1.75 trillion being held in commercial banks, where for example, the average savings account earns just 0.45% per year. "Even savers with a small balance should contemplate moving money," reports the WSJ. "If you have $500, for example, it would earn $2.25 in a year from an average account, compared with $22.50 in one that paid 4.5%."

Things That Save You Money

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Before you throw out that pineapple peel, check out this list of the best ways to use leftovers from Upworthy. One of our faves? Freezing bread heels to make bread pudding. As for that pineapple, think tea.

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It’s an age-old question…is it better to rent or buy? Luckily, there’s a calculator that can give you an actual answer. Check it out.

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This summer is expected to be hot, hot, hot. Save on your air conditioning bill with these tips from CNET. One example…a little change in temp can make a big difference. "You can save 10% a year on your cooling bills by setting your thermostat just 10 to 15 degrees Fahrenheit higher for 8 hours each day," they report.

Ask Jean

Today's question comes from Beth. She writes: I am looking to save money by buying a secondhand phone for my teens. Where can I purchase a used cell phone?

First off, good for you, Beth! Far too often parents go the route of buying a shiny new smartphone for their teens…only to have it go missing or get damaged. When it comes to buying a secondhand phone, you do have a few options:

eBay: An oldie but a goodie when it comes to resale sites. Before you bid though, make sure to check the seller’s ratings.

Amazon Renewed: This little corner of the Amazon world features refurbished devices that are all backed by a guarantee. For example, here’s an Apple iPhone SE for $99. Yes, it’s an older model, but it's significantly cheaper than the $429 you’d pay for one that’s brand-spanking new.

Swappa: Swappa is a tech resale company that’s been around since 2010. On Swappa, you buy directly from other users. Payments are made via PayPal, which provides a level of protection in case something goes wrong–for example, the item you receive isn’t as described.

Gazelle: Gazelle purchases used tech directly from consumers. They inspect and certify items, then list them for sale. Gazelle also offers a 30-day return policy.

It’s also worth checking manufacturer sites for the bigger name cell phone brands, like Apple and Samsung. As you shop around, be sure to do your research. Know the value of what you’re buying and don’t overpay. Good luck!

Submit your questions to Jean here.

More For You To ♥

📣 Let’s address a crucial topic—and one of our hot-button issues here at HerMoney–women outliving their retirement savings. It’s a huge problem, but it’s one ParityFlex™, the multi-year guaranteed annuity² available from Gainbridge®, is designed to fix. Learn more here.**

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*The HerMoney podcast is proudly sponsored by Edelman Financial Engines. Unlock your wealth potential with our sophisticated wealth planning. Continue your journey at EdelmanFinancialEngines.com. Sponsored by Edelman Financial Engines – Modern wealth planning. All advisory services offered through Financial Engines Advisors L.L.C. (FEA), a federally registered investment advisor. Results are not guaranteed. AM3579878.

HerMoney is not a client, agent, representative or affiliate of EFE.Edelman Financial Engines ("EFE") is a sponsor of the "HerMoney with Jean Chatzky Podcast," created by HerMoney Media. Inc. ("HerMoney") and provides cash compensation to HerMoney Media. HerMoney receives a sponsorship fee from Edelman Financial Engines depending on the number of podcast downloads, as measured by the end of the calendar year. The sponsorship fee is paid on a quarterly basis each year. In turn, HerMoney also provides promotional deliverables regarding EFE on the HerMoney podcast, newsletter, and social media channels. Due to this sponsorship arrangement, HerMoney has an incentive to endorse EFE and its services.

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² Withdrawals are taxed as ordinary income and, if taken prior to age 59 1/2, there may be a 10% federal tax penalty. Withdrawals may result in a surrender charge or a market value adjustment (MVA) and excess withdrawals may result in a reduction of future payments under the guaranteed lifetime withdrawal benefit. Guaranteed Lifetime Withdrawal Benefit provided so long as your account value hasn’t gone to $0 due to excess withdrawals. Annual Percentage Yield (APY) rates are subject to change at any time, and the rate mentioned may no longer be current. Please visit Gainbridge.io for current rates, full product disclosures and disclaimer. ParityFlexTM, a multi-year guaranteed annuity, is issued by Gainbridge Life Insurance Company in Zionsville, Indiana.