Latest news with #AndrewLatham
Yahoo
6 days ago
- Business
- Yahoo
I Made Over $17K in a Year With These Banking Hacks: Here's How It Works
A Reddit post recently went viral when user, fragydig529, broke down how he invested $50 and made over $17,000 in a year from what he called 'bank churning.' $17,000 sounds like some solid cash. Now what is bank churning? Bank churning essentially just involves opening new bank accounts to financially profit off banks' sign-up bonuses. For instance, a bank may offer a new customer $300 for opening an account if they deposit $1,000. Depending on the bank and the kind of account, the customer may need to keep the account open for 90 days to receive the $300 bonus. Discover More: Check Out: Afterwards, they transfer all $1,300 to the next bank and close the prior account. Rinse, wash, repeat. Quite the loophole. And, yes, it's all legal. 'Bank churning can be a legitimate side hustle if you're organized and know what you're doing,' said Andrew Latham, certified financial planner (CFP) and content director at However, this banking back comes with large caveats. User fragydig529 (let's call him 'Fragy' for short) put in a grueling amount of work to accrue $17,000 in just one year. Let's break down his methods. Typically, an account holder needs a certain amount of money (specific to each bank and account type) direct deposited into an account to qualify for a sign-up bonus. This may either be a lump sum or a series of deposits over a specifically designated time frame. One typically also needs those direct deposits to come through employers or government agencies in order to qualify. Fragy, however, realized the AHC (Automated Clearing House) electronic funds transfer system is outdated and deposits from other banks wound up counting as direct deposits. See where we're going with this? After receiving his sign-up bonus from one bank, Fragy closed his account and rolled his bonus into another newly opened account at a different bank ('like a long train') to serve as his direct deposit. Try This: But when Fragy noticed only certain banks trigger other banks to accept this type of transfer as a qualifying direct deposit, Fragy did extensive research via subreddits to crack the codes. And if no combination of bank-to-bank transfer triggered a sign-up bonus? Fragy did not simply move on to a different bank. He opened a business checking account which, he discovered, always counted as a form of direct deposit. He then 'directed deposited' money from his own business account into his newly opened bank accounts to receive the sign-up bonus. Venmo sometimes counted, too. 'The fun thing is that once your business starts getting bonuses, it's counted as income, too, for the business,' wrote Fragy. 'Which will qualify you for certain lines of credit as the business. So then you start opening business cards and getting those bonuses, as well.' And wait, it gets better. If he didn't have $1,000 (for instance) on hand to qualify for a sign-up bonus at any particular time, he would transfer $250 in and out four times — and, depending on the bank, that counted, too! Finally, he circumvented monthly account fees by scheduling transfers every 20 days. Fragy found checking accounts typically didn't require 60 to 90-day hold periods to qualify for sign-up bonuses — but savings accounts and business accounts did. However, savings and business accounts offer larger sign-up bonuses as a result. So, Fragy stacked them on top of each other: 'I started with $300 bonuses but am doing $5,000 and $1,000 bonuses now, which are slower as most of them are savings bonuses. I usually try to do [three to four] checking bonuses, [two] savings bonuses and [two] business checking at the same time.' He closed each account as soon as he received his bonus because he will become eligible for a new account with another bonus at that same bank 12 months and one day after closing. However, each bank had different terms and conditions — and could charge fees for closing accounts too early. So, Fragy read the fine print to figure out exactly when he could close each account to avoid incurring fees. And, finally, because having too many accounts open at once can result in an EWS (Early Warning System) alert being put on you, Fragy stayed away from banks that were 'Chex sensitive.' ChexSystems is a consumer reporting agency that pulls past banking history to determine account eligibility — but some banks are much more stringent about what they flag than others. If he discovered a specific bank was particularly Chex sensitive to multiple accounts being opened, he either avoided it or waited 90 days after opening his last account before opening a new one. Opening a new bank account may involve running the account holder's credit. So has opening so many accounts negatively affected Fragy's credit score? It has not. This is because only some banks actually run your credit or care about credit scores — most used ChexSystems, a consumer reporting agency that, instead, tracks banking activity. He researched and gravitated toward the banks that used ChexSystems. Additionally, banks sent Fragy 1099's for earnings over $600 and, to keep everything above board-ish, he reported all earnings to the IRS as taxable income. 'I've turned it into a game. I don't play games or scroll videos on my phone. So all I do on my phone is keep up with banks and their promos, as well as my accounts,' the Redditor said. 'I also read every terms and condition before I apply and remember them. My friends are always asking me which banks they should do and what they need to do. It's literally so fun to educate people on it.' Hey, if banks routinely harm consumers with high fees, predatory lending and discriminatory practices, good on Fragy for getting his. More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard 10 Cars That Outlast the Average Vehicle Are You Rich or Middle Class? 8 Ways To Tell That Go Beyond Your Paycheck This article originally appeared on I Made Over $17K in a Year With These Banking Hacks: Here's How It Works Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-07-2025
- Business
- Yahoo
I Made Over $17K in a Year With These Banking Hacks: Here's How It Works
A Reddit post recently went viral when user, fragydig529, broke down how he invested $50 and made over $17,000 in a year from what he called 'bank churning.' $17,000 sounds like some solid cash. Now what is bank churning? Bank churning essentially just involves opening new bank accounts to financially profit off banks' sign-up bonuses. For instance, a bank may offer a new customer $300 for opening an account if they deposit $1,000. Depending on the bank and the kind of account, the customer may need to keep the account open for 90 days to receive the $300 bonus. Discover More: Check Out: Afterwards, they transfer all $1,300 to the next bank and close the prior account. Rinse, wash, repeat. Quite the loophole. And, yes, it's all legal. 'Bank churning can be a legitimate side hustle if you're organized and know what you're doing,' said Andrew Latham, certified financial planner (CFP) and content director at However, this banking back comes with large caveats. User fragydig529 (let's call him 'Fragy' for short) put in a grueling amount of work to accrue $17,000 in just one year. Let's break down his methods. Typically, an account holder needs a certain amount of money (specific to each bank and account type) direct deposited into an account to qualify for a sign-up bonus. This may either be a lump sum or a series of deposits over a specifically designated time frame. One typically also needs those direct deposits to come through employers or government agencies in order to qualify. Fragy, however, realized the AHC (Automated Clearing House) electronic funds transfer system is outdated and deposits from other banks wound up counting as direct deposits. See where we're going with this? After receiving his sign-up bonus from one bank, Fragy closed his account and rolled his bonus into another newly opened account at a different bank ('like a long train') to serve as his direct deposit. Try This: But when Fragy noticed only certain banks trigger other banks to accept this type of transfer as a qualifying direct deposit, Fragy did extensive research via subreddits to crack the codes. And if no combination of bank-to-bank transfer triggered a sign-up bonus? Fragy did not simply move on to a different bank. He opened a business checking account which, he discovered, always counted as a form of direct deposit. He then 'directed deposited' money from his own business account into his newly opened bank accounts to receive the sign-up bonus. Venmo sometimes counted, too. 'The fun thing is that once your business starts getting bonuses, it's counted as income, too, for the business,' wrote Fragy. 'Which will qualify you for certain lines of credit as the business. So then you start opening business cards and getting those bonuses, as well.' And wait, it gets better. If he didn't have $1,000 (for instance) on hand to qualify for a sign-up bonus at any particular time, he would transfer $250 in and out four times — and, depending on the bank, that counted, too! Finally, he circumvented monthly account fees by scheduling transfers every 20 days. Fragy found checking accounts typically didn't require 60 to 90-day hold periods to qualify for sign-up bonuses — but savings accounts and business accounts did. However, savings and business accounts offer larger sign-up bonuses as a result. So, Fragy stacked them on top of each other: 'I started with $300 bonuses but am doing $5,000 and $1,000 bonuses now, which are slower as most of them are savings bonuses. I usually try to do [three to four] checking bonuses, [two] savings bonuses and [two] business checking at the same time.' He closed each account as soon as he received his bonus because he will become eligible for a new account with another bonus at that same bank 12 months and one day after closing. However, each bank had different terms and conditions — and could charge fees for closing accounts too early. So, Fragy read the fine print to figure out exactly when he could close each account to avoid incurring fees. And, finally, because having too many accounts open at once can result in an EWS (Early Warning System) alert being put on you, Fragy stayed away from banks that were 'Chex sensitive.' ChexSystems is a consumer reporting agency that pulls past banking history to determine account eligibility — but some banks are much more stringent about what they flag than others. If he discovered a specific bank was particularly Chex sensitive to multiple accounts being opened, he either avoided it or waited 90 days after opening his last account before opening a new one. Opening a new bank account may involve running the account holder's credit. So has opening so many accounts negatively affected Fragy's credit score? It has not. This is because only some banks actually run your credit or care about credit scores — most used ChexSystems, a consumer reporting agency that, instead, tracks banking activity. He researched and gravitated toward the banks that used ChexSystems. Additionally, banks sent Fragy 1099's for earnings over $600 and, to keep everything above board-ish, he reported all earnings to the IRS as taxable income. 'I've turned it into a game. I don't play games or scroll videos on my phone. So all I do on my phone is keep up with banks and their promos, as well as my accounts,' the Redditor said. 'I also read every terms and condition before I apply and remember them. My friends are always asking me which banks they should do and what they need to do. It's literally so fun to educate people on it.' Hey, if banks routinely harm consumers with high fees, predatory lending and discriminatory practices, good on Fragy for getting his. More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard 4 Affordable Car Brands You Won't Regret Buying in 2025 How Far $750K Plus Social Security Goes in Retirement in Every US Region This article originally appeared on I Made Over $17K in a Year With These Banking Hacks: Here's How It Works Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
05-06-2025
- Business
- Yahoo
8 Social Security Mistakes Gen X Needs To Avoid
As Generation X edges closer to retirement, Social Security decisions are becoming more relevant, and possibly more complicated. The choices you make in your 40s and 50s can dramatically affect how much income you'll receive later. Be Aware: Read More: From claiming benefits too early to ignoring tax implications, there are several avoidable mistakes that could shrink your monthly check or leave you financially unprepared. Here are the biggest Social Security pitfalls Gen Xers should avoid, according to financial experts, planners and attorneys. For many Gen Xers, taking Social Security at 62 seems like the default move. But experts warn that this could lock you into lower benefits for life. 'Claiming at 62 might feel like a head start, but it's often a long-term budget killer,' said Andrew Latham, certified financial planner (CFP) at SuperMoney. 'You lock in a permanent reduction, up to 30% less than your full benefit.' While early claiming may be necessary in some situations, such as poor health or lack of income, Dr. Shawn DuBravac, CEO and president of the Avrio Institute, emphasizes the long game: 'Filing too early can put unnecessary pressure on your financial future,' especially with longer life expectancies and the potential for a 30-year retirement. Find Out: Many Gen Xers plan to work part-time or consult in early retirement. But if you collect Social Security before your full retirement age, those earnings could reduce your benefits. 'If you're under full retirement age, Social Security deducts $1 from your benefits for every $2 you earn above a certain limit,' said Ashley Morgan, attorney, tax resolution expert and founder of Ashley F Morgan Law. 'In 2025, that limit is $23,400.' In short: Working while claiming can create a lose-lose situation unless you're strategic. Even self-employment income can come back to bite if you don't track and report it correctly. A surprisingly common misstep? Relying solely on Social Security to cover your retirement. 'Another common misstep is assuming Social Security benefits alone will be enough. It likely won't be,' said Dr. DuBravac. 'Delaying benefits and building diversified income streams through other retirement like IRAs or [401k plans] can lead to significantly greater financial stability down the road.' William Connor, certified financial advisor (CFA,) CFP and partner at Sax Wealth Advisors agreed: 'Social Security should be viewed as one piece of a multi-pronged approach to retirement income.' Social Security benefits are calculated based on your 35 highest-earning years. If there are mistakes or gaps in your earnings history, your future checks could take a hit. 'Gen Xers should create an account with the Social Security Administration and review your earnings history,' said Connor. 'Inaccurate records can lead to reduced benefits.' Ashley Morgan echoed this: 'Previously, the SSA mailed out earning reports. Now, you have to go online and check yourself. Getting errors fixed is much easier sooner than later.' If you're self-employed and routinely deduct business expenses to lower your tax bill, you may also be shrinking your future Social Security benefits without realizing it. 'Your Social Security benefit is based on your taxable income,' said Morgan. 'So writing off too much may reduce the income you're reporting to the SSA, and thus, your future payout.' Worse, if you don't report that income within three years, you may not get Social Security credit for it at all. Whether you've been married, divorced or widowed, spousal and survivor benefits can be a lifeline. But many Gen Xers don't realize they're eligible. 'Generally, if your spouse is fully retired and you've reached full retirement age, you may qualify to collect half of their benefit or the full amount as a survivor,' said Morgan. This is especially valuable for stay-at-home parents or those with lower lifetime earnings. Even divorcees could qualify if the marriage lasted 10 years or more and they haven't remarried. With frequent headlines about Social Security's future, it's easy to assume the program will be 'bankrupt' by the time Gen X retires. But that assumption can lead to poor decisions, like early filing out of fear. 'While Social Security does face long-term funding issues, it seems unlikely that the program will be eliminated,' said Connor. 'Gen Xers should plan for a potential reduction — say, 70% of projected benefits — but not assume the entire system will collapse.' Yes, Social Security income can be taxed both at the federal and possibly state level. 'Up to 85% of your benefits can be taxable if your combined income is above a certain threshold,' said Connor. 'High-income Gen Xers need to start thinking now about tax-efficient portfolio withdrawals to reduce the hit.' Dr. DuBravac also warns that without a coordinated drawdown strategy, you could end up paying more taxes than necessary, especially during your highest-earning years. 'Many Gen Xers still believe there is considerable time before they need to focus on retirement planning,' said Connor. 'But waiting reduces options.' Now is the time to run scenarios, check your earnings record, coordinate your retirement accounts, and get a Social Security strategy in place that fits your health, lifestyle and income plans. After all, Social Security isn't just a check. It's a decision that can impact your financial future for decades. More From GOBankingRates Surprising Items People Are Stocking Up On Before Tariff Pains Hit: Is It Smart? 3 Reasons Retired Boomers Shouldn't Give Their Kids a Living Inheritance (And 2 Reasons They Should) This article originally appeared on 8 Social Security Mistakes Gen X Needs To Avoid
Yahoo
05-06-2025
- Business
- Yahoo
8 Social Security Mistakes Gen X Needs To Avoid
As Generation X edges closer to retirement, Social Security decisions are becoming more relevant, and possibly more complicated. The choices you make in your 40s and 50s can dramatically affect how much income you'll receive later. Be Aware: Read More: From claiming benefits too early to ignoring tax implications, there are several avoidable mistakes that could shrink your monthly check or leave you financially unprepared. Here are the biggest Social Security pitfalls Gen Xers should avoid, according to financial experts, planners and attorneys. For many Gen Xers, taking Social Security at 62 seems like the default move. But experts warn that this could lock you into lower benefits for life. 'Claiming at 62 might feel like a head start, but it's often a long-term budget killer,' said Andrew Latham, certified financial planner (CFP) at SuperMoney. 'You lock in a permanent reduction, up to 30% less than your full benefit.' While early claiming may be necessary in some situations, such as poor health or lack of income, Dr. Shawn DuBravac, CEO and president of the Avrio Institute, emphasizes the long game: 'Filing too early can put unnecessary pressure on your financial future,' especially with longer life expectancies and the potential for a 30-year retirement. Find Out: Many Gen Xers plan to work part-time or consult in early retirement. But if you collect Social Security before your full retirement age, those earnings could reduce your benefits. 'If you're under full retirement age, Social Security deducts $1 from your benefits for every $2 you earn above a certain limit,' said Ashley Morgan, attorney, tax resolution expert and founder of Ashley F Morgan Law. 'In 2025, that limit is $23,400.' In short: Working while claiming can create a lose-lose situation unless you're strategic. Even self-employment income can come back to bite if you don't track and report it correctly. A surprisingly common misstep? Relying solely on Social Security to cover your retirement. 'Another common misstep is assuming Social Security benefits alone will be enough. It likely won't be,' said Dr. DuBravac. 'Delaying benefits and building diversified income streams through other retirement like IRAs or [401k plans] can lead to significantly greater financial stability down the road.' William Connor, certified financial advisor (CFA,) CFP and partner at Sax Wealth Advisors agreed: 'Social Security should be viewed as one piece of a multi-pronged approach to retirement income.' Social Security benefits are calculated based on your 35 highest-earning years. If there are mistakes or gaps in your earnings history, your future checks could take a hit. 'Gen Xers should create an account with the Social Security Administration and review your earnings history,' said Connor. 'Inaccurate records can lead to reduced benefits.' Ashley Morgan echoed this: 'Previously, the SSA mailed out earning reports. Now, you have to go online and check yourself. Getting errors fixed is much easier sooner than later.' If you're self-employed and routinely deduct business expenses to lower your tax bill, you may also be shrinking your future Social Security benefits without realizing it. 'Your Social Security benefit is based on your taxable income,' said Morgan. 'So writing off too much may reduce the income you're reporting to the SSA, and thus, your future payout.' Worse, if you don't report that income within three years, you may not get Social Security credit for it at all. Whether you've been married, divorced or widowed, spousal and survivor benefits can be a lifeline. But many Gen Xers don't realize they're eligible. 'Generally, if your spouse is fully retired and you've reached full retirement age, you may qualify to collect half of their benefit or the full amount as a survivor,' said Morgan. This is especially valuable for stay-at-home parents or those with lower lifetime earnings. Even divorcees could qualify if the marriage lasted 10 years or more and they haven't remarried. With frequent headlines about Social Security's future, it's easy to assume the program will be 'bankrupt' by the time Gen X retires. But that assumption can lead to poor decisions, like early filing out of fear. 'While Social Security does face long-term funding issues, it seems unlikely that the program will be eliminated,' said Connor. 'Gen Xers should plan for a potential reduction — say, 70% of projected benefits — but not assume the entire system will collapse.' Yes, Social Security income can be taxed both at the federal and possibly state level. 'Up to 85% of your benefits can be taxable if your combined income is above a certain threshold,' said Connor. 'High-income Gen Xers need to start thinking now about tax-efficient portfolio withdrawals to reduce the hit.' Dr. DuBravac also warns that without a coordinated drawdown strategy, you could end up paying more taxes than necessary, especially during your highest-earning years. 'Many Gen Xers still believe there is considerable time before they need to focus on retirement planning,' said Connor. 'But waiting reduces options.' Now is the time to run scenarios, check your earnings record, coordinate your retirement accounts, and get a Social Security strategy in place that fits your health, lifestyle and income plans. After all, Social Security isn't just a check. It's a decision that can impact your financial future for decades. More From GOBankingRates Surprising Items People Are Stocking Up On Before Tariff Pains Hit: Is It Smart? 3 Reasons Retired Boomers Shouldn't Give Their Kids a Living Inheritance (And 2 Reasons They Should) This article originally appeared on 8 Social Security Mistakes Gen X Needs To Avoid Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-05-2025
- Business
- Yahoo
Don't Check Your Stock Portfolio on Mondays
If you've ever peeked at your investment portfolio on a Monday morning and felt your stomach drop, you're not alone. For You: Find Out: Mondays have a reputation for being volatile on Wall Street, and it's not just because people are groggy from the weekend. Financial experts agree that checking your portfolio on Monday can stir up unnecessary stress and, worse, lead to rash investment decisions. Here's why it's smarter to wait, and how long-term investors can use this insight to stay calm and committed. Unlike the markets, the news cycle doesn't take weekends off. From corporate earnings leaks to geopolitical events, information builds up over the weekend and is quickly digested by investors come Monday. The result? Market overreactions. 'Monday can typically be a chaotic one. With the markets closed over the weekend, the news continues to give out information that investors break down, and it can lead to swings on Monday,' explained Chad Gammon, CFP and owner of Custom Fit Financial. 'Checking your portfolio on a Monday is like stepping on the scale after a weekend; you probably won't like what you see,' added Andrew Latham, CFP with SuperMoney. 'But it's mostly bloat that disappears by midweek if you stick to your plan.' That makes Monday one of the worst days to judge your portfolio's true health. One or two red numbers might not mean your financial goals are in jeopardy. It may just mean that the market is reacting to the latest headlines. 'Mondays are known for market jitters, and there's even something called the Monday Effect, where stocks often dip or behave erratically at the start of the week, possibly due to weekend news or nerves, or companies releasing bad updates after markets close on Fridays,' said Nicole Carlon, CFP, CDFA, of WiseOak Wealth, LLC. 'Whatever the reason, checking your portfolio on a Monday can give you an unnecessarily negative picture,' she added. Be Aware: Frequent portfolio check-ins may seem responsible, but they can backfire, especially if you're doing it on a day like Monday, when emotions and volatility are high. 'Checking in frequently on your portfolio can lead to some emotional reactions that hurt you financially in the future with impulse decisions,' said Gammon. 'You should consider reviewing your investments on a monthly or quarterly basis at the most to help avoid impulse decisions.' 'I've seen people panic over a red Monday screen, only to watch things bounce back within a day or two,' added Carlon. 'If you're investing for the long haul, reacting to early-week swings can do more harm than good.' The key? Don't panic. The stock market has natural ups and downs, which are often exaggerated early in the week. Stick to your strategy instead of reacting to temporary turbulence. Interestingly, there's no one-size-fits-all when it comes to portfolio check-ins. Some investors actually benefit from seeing daily swings. 'This may sound counterintuitive, but some clients check their portfolios daily. This actually alleviates some of their fears, since they get comfortable with the day-to-day swings,' explained Jake Falcon, CRPC, founder and CEO of Falcon Wealth Advisors. 'If you only check it on Mondays, it can actually induce more fear.' But whether you check it frequently or on a structured schedule like quarterly reviews, the real danger comes from acting on emotion. 'We encourage clients to focus on their financial plan, not the headlines. Your portfolio is a tool to help you reach your goals,' said Falcon. 'Most importantly, we advise our clients to not let their emotions dictate their investment decisions. This is where having a trusted advisor can make all the difference.' Carlon added that it's important to check on your investments intentionally. 'Set time aside every few months to review your portfolio in the context of your long-term goals, not in response to a single rough morning. In the meantime, use Mondays for things like reviewing your budget or setting financial goals, not stress-scrolling your account.' Unless you thrive on stress, Mondays are probably the worst day to check your portfolio. Between weekend news reactions and emotional market swings, you're more likely to make impulsive decisions that derail your long-term goals. So what should you do instead? Develop a review habit that works for your mindset and stick to a sound investment plan. More From GOBankingRates Surprising Items People Are Stocking Up On Before Tariff Pains Hit: Is It Smart? The New Retirement Problem Boomers Are Facing This article originally appeared on Don't Check Your Stock Portfolio on Mondays
