Latest news with #debtFree
Yahoo
04-07-2025
- Business
- Yahoo
Going into Debt To Build a Credit Score? George Kamel Says You Don't Have To ‘Play the Game'
Your credit score is considered a reflection of your financial health. However, George Kamel has a different mindset. In a recent YouTube video, the Ramsey personality explained why he believes credit scores aren't actually important. In fact, he's actually credit invisible, meaning he doesn't have a credit history with any of the three major reporting agencies. 'The credit score is an ingenious way for lenders to lure you deeper into their web of debt, while convincing you that you're doing great with money,' he said. 'And this little game has caused so many people to fall for debt traps and held them back from building true wealth.' Consider This: For You: Kamel said many people believe they need to play the 'credit score game' — i.e., working to earn a higher credit score to have access to more debt, to buy things they can't afford, but this isn't the case. In fact, he said you don't actually one at all. GOBankingRates breaks down what Kamel means by opting out of the credit score 'game,' and if it's possible to live without worrying about one. 'You can live your life without a credit score,' he said. 'In fact, living without it can help you build wealth faster.' Personally, Kamel said that's what happened to him. 'When you decide to pay off all of your consumer debt and cut up your credit cards, you will take back control of your greatest wealth building tool — your income,' he said. 'And with that comes the welcome disappearance of your precious credit score.' If you're truly committed to putting debt in your rearview mirror, he said you won't need a credit score. In fact, he said the best credit score is actually not having one at all. Explore More: As of the third quarter of 2024, the average credit card utilization ratio in the U.S. was 29%, according to Experian. Given this, the idea of having zero debt and not relying on credit at all might sound appealing. However, not having a credit score can make some aspects of life more complicated. For example, if renting a home or leasing equipment — i.e., a wireless modem or a cable box — you might have to pay a higher security deposit, according to Experian. Additionally, if you were to find yourself in a situation where you needed an emergency loan, obtaining one could be tricky. Of course, this might not matter to you. If, like Kamel, you feel the benefits of being credit invisible outweigh any potential drawbacks, this could be the right move for you. More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard 10 Unreliable SUVs To Stay Away From Buying Warren Buffett: 10 Things Poor People Waste Money On This article originally appeared on Going into Debt To Build a Credit Score? George Kamel Says You Don't Have To 'Play the Game'
Yahoo
29-06-2025
- Business
- Yahoo
Telos (TLS) Secures Defense Deals as B. Riley Sees Undervalued Cyber Play
Telos Corporation (NASDAQ:TLS) is one of the 10 best debt-free IT penny stocks to buy. Recent developments indicate that Telos Corp (NASDAQ:TLS) continues to build on its strengths in secure communications and cyber governance, even as the stock faces pressure following a recent downward revision in its price target. An engineer in front of a complex network security system, monitoring for potential threats. Around mid-May, a B. Riley analyst lowered his price target on Telos to $3.75 from $4.50, while maintaining a Buy rating. The analyst highlighted that the company's Q1 results exceeded consensus on both revenue and adjusted EBITDA. The company also reaffirmed its full-year guidance. According to him, the stock's decline after results appear more of an overreaction and doesn't reflect the company's improving fundamentals. He also believes that this decline undermines the fact that Telos anticipates a stronger performance in the second half of 2025. Meanwhile, Telos secured two key government contracts, in the first two weeks of June, that reinforce its relevance in national security-focused IT solutions. The first is a $3.7 million contract renewal with the U.S. Air Force Intelligence Community for continued use of its Xacta platform. This extension allows the Air Force to automate and manage cyber compliance across sensitive networks, an area where Telos has built a solid track record. Additionally, Telos was awarded a $14 million, five-year contract from the Defense Information Systems Agency (DISA) to support the Organizational Messaging Service (OMS). Through its Automated Message Handling System, Telos will continue providing secure and efficient message delivery across the Department of Defense, allied military partners, and federal agencies. These contract wins highlight Telos' established relationships with defense clients and its ongoing role in managing mission-critical communication infrastructure. Telos Corporation (NASDAQ:TLS) delivers cybersecurity, secure mobility, and identity management solutions to government and commercial clients. While we acknowledge the potential of TLS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Best Tech Stocks to Buy According to Billionaires. Disclosure: None.
Yahoo
24-06-2025
- Business
- Yahoo
My job is offering me a payout. Should I take a $61,000 lump sum or $355 a month for life?
When I leave my job would I be better off taking a $61,000 lump sum to roll over into an existing IRA or, instead, take $355 a month for life? I'm 49 and have no debt except for a mortgage with $56,000, and I'm currently working full-time and receiving a $2,400-per-month military pension. My current net worth (assets minus liabilities) is $350,000. My S&P 500 investments have roughly doubled every seven years. What should I do? Planning Ahead A U.S. strike on Iran wasn't enough to rattle markets on Monday. Here's what might change that. Israel-Iran clash delivers a fresh shock to investors. History suggests this is the move to make. Treasury yields are falling as investors now see a possible July interest-rate cut by the Fed I'm 75 and have a reverse mortgage. Should I pay it off with my $200K savings — and live off Social Security instead? Here are the overlooked ways to play AI, crypto and quantum trends, says this tech investor Related: I'm 51, earn $129K and have $165K in my 401(k). Can I afford to retire when my husband, 59, draws Social Security at 62? The good news is that you're not living from paycheck to paycheck, nor will you be in retirement, so this lump sum or monthly payment won't make you or break you, and you have done the one thing millions of Americans dream of doing: reducing their debt so it will be nonexistent by the time you retire. Your letter is the equivalent of a protein ball: It's short, especially judging by many detailed letters I receive, but it's packed with healthy news. Your savings, pension and paid-off home when you retire will leave you with a lot of financial freedom in your 60s and beyond. For one person, $355 a month will give them the ability to put food on the table. For another person, it's merely the price of a high-end gym in Manhattan. Put more bluntly, one person's full stomach is another person's toned abs. Given your savings and $2,400-per-month military pension, you probably belong to the latter category. I'm assuming you'll get the money when you leave your job at 65. If you were looking at a retirement where you needed every last penny and you were unwilling to take any risk, you would probably opt for the payment. But given your solid financial situation and risk tolerance, you would be better off taking the lump sum and investing it in the stock market rather than taking a $355 monthly payment. Sure, you would have to wait until you were 79 before you would come out ahead with your $355-a-month income, but that doesn't account for the toll inflation would have taken on those monthly payments. Are you prepared to wait that long? Over those 14 years, you would also be depriving yourself of the ability to invest that $61,000. Given that it takes 10% return for your investment to double every 7.2 years, you'd have roughly $122,000 at 72 and $244,000 at 79. If you were to leave your job and take this money this year my answer would, more or less, be the same. It's a case of the tortoise (compounding) beating the fox (monthly income). If you invested the lump sum now — and you're getting 7%-10% interest on your principal investment and on the interest you earned on that principal — you'd have $200,000 when you retired. With the monthly payment, you'd have almost $77,000. There are, of course, no guarantees if you invest. The market goes up over time, but it is unpredictable, as we have seen over the last 50 years. The S&P 500 SPX fell 18% in 2022, gained 26% in 2023, rose another 25% in 2024. It took more than five years for the market to recover from the 2008 financial crisis, which was caused in part by predatory and subprime lending in the mortgage market and lax financial regulation. Over the last five years, we've had a worldwide pandemic that sent the stock market tumbling (although they returned to pre-COVID levels 10 months later), a new administration that has cut a swathe through the prior administration's policies in just six months and charted a different course from all previous Republican and Democratic administrations in modern times by redefining the postwar Western alliance, and introduced sweeping tariffs. The socio-economic outlook is currently uncertain. Others would call it volatile or highly unpredictable. Investors are anxiously, one presumes, waiting to see what action, if any, Iran takes after the U.S. bombed Iran's nuclear sites over the weekend. There is a war in Ukraine and increasing instability in the Middle East, and economists continue to debate the effect of President Donald Trump's tariffs on U.S. prices and the broader economy. You'd have less ability to access your $61,000 investment, but you can afford to let your money grow over time, while resisting the temptation to pull your investment when the going gets rough, as many people contemplated during the market turmoil in April. You can also afford to wait to collect your Social Security benefits until you reach the age of 70, thereby maximizing your benefits. You're looking at a bigger payday than a monthly gym membership. Related: 'It might be another Apple or Microsoft': My wife invested $100K in one stock and it exploded 1,500%. Do we sell? Previous columns by Quentin Fottrell: My sister and her husband died within days of each other. Their banks won't let me access their safe-deposit boxes. What now? 'I'm 68 and my 401(k) has dwindled to $82,000': My husband committed financial infidelity and has $50,000 in credit-card debt. What now? I'm 75 and have a reverse mortgage. Should I pay it off with my $200K savings — and live off Social Security instead? The U.S. bull market is intact — and a key signal is coming from Tel Aviv, says this strategist My cousin died before claiming his late father's $2 million estate. Will I get it? 'I'm at my wit's end': My niece paid off her husband's credit card but fell behind on her taxes. How can I help her? 20 oil stocks passing a quality screen as investors wonder what Iran will do next Two ETFs that have beaten value stock indexes with this simple approach 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
21-06-2025
- Business
- Yahoo
4 Secrets of the Truly Wealthy, According to Dave Ramsey
One of Dave Ramsey's most consistent pieces of financial advice is that wealth-building isn't necessarily tied to how much money you make, but rather how you manage what you have. Many people assume that earning a higher income automatically leads to wealth, but Ramsey points out that a disciplined approach to spending and saving is far more important. Find Out: Read Next: Truly wealthy people live below their means and when they do spend money, they don't advertise it. Essentially, saving consistently is more important than the size of your paycheck or what you splurge on. Known for his no-nonsense approach to personal finance, Ramsey has helped millions of people get out of debt and take control of their financial futures. But what separates those who simply earn a good living from the truly wealthy? According to Ramsey, 'When you quit worrying about what people think and you're actually living life for you and your family — that causes you to make completely different purchases and live a completely different lifestyle.' Here are key principles that truly wealthy people understand and practice consistently. The wealthy don't leave their financial futures to chance. They create a plan, stick to it and regularly review it, which doesn't leave a lot of wiggle room for extravagant purchases like designer clothing. Think about some of the billionaires you see in the news — many aren't dressing like a million bucks even though they have more than a billion bucks. Ramsey would recommend taking baby steps toward building an emergency fund, paying off debt or investing for retirement well before you spend thousands of dollars on pants or shoes. The truly wealthy know where their money is going each month and it's not hanging in their closet. For You: Ramsey is a strong advocate for long-term investing and wealth-building strategies. However, once someone has grown their wealth to be in a place where they are considered rich, they tend not to advertise how much they have or are spending. Some of the most lavish and luxurious expenses can include trips the wealthy take, but the truly wealthy don't let you know about those. Ramsey said, 'They enjoy nice vacations but they seldom post them for you to see on Instagram because they didn't take you on vacation. They wanted to go on vacation.' Generosity is a hallmark of the truly wealthy, and giving often brings even more fulfillment than financial success. However, that doesn't mean they spend everything they can afford to during the holiday season. Ramsey noted, ' The Christmas presents around the tree are very reasonable,' when referring to what the truly wealthy spend on presents. Showing people you care or being generous doesn't necessarily come with an expensive price tag. When it comes to giving to your children, generational wealth may be more the goal than how many presents are under the tree. True wealth comes from a long-term perspective and avoiding debt, which means big expenses such as luxury cars should be avoided when possible. 'The car that they drive is understated and the valet is seldom impressed until he gets the tip. It's usually a used Camry, a nice used Honda or a nice old pickup truck of some kind,' Ramsey said. This long-term perspective includes avoiding debt as much as possible, because, as Ramsey has said, 'Debt is a thief.' The wealthy understand that having a reliable car they don't have to make payments on goes much further down the financial road than other flashier options. The bottom line is that the truly wealthy aren't simply people with high incomes or luxurious lifestyles. They are individuals who consistently practice discipline, intentionality and long-term thinking in their financial lives. They understand that true wealth comes from wise decisions, which means anyone can build lasting wealth and live a financially peaceful life if they put their mind to it. More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 How Much Money Is Needed To Be Considered Middle Class in Your State? 6 Popular SUVs That Aren't Worth the Cost -- and 6 Affordable Alternatives This article originally appeared on 4 Secrets of the Truly Wealthy, According to Dave Ramsey Sign in to access your portfolio
Globe and Mail
05-06-2025
- Business
- Globe and Mail
The best time to make a lump-sum mortgage payment, according to the experts
Being mortgage free can seem like a distant goal when the outstanding balance is in the hundreds of thousands of dollars and most of your regular payments are going toward paying interest. But if you can afford it, financial experts say making additional lump-sum payments can help speed your path to being debt free. 'Making lump sum payments on your mortgage is a pretty powerful strategy to save on your interest and become mortgage free a lot sooner,' says Patty Hopper, a mobile mortgage specialist at Vancity in North Vancouver, B.C. By making a lump-sum payment on your mortgage in addition to your regular payments, you reduce the outstanding balance. This saves you cash in the long run because you'll no longer be paying interest on that amount. Hopper said a lot people don't have the extra cash flow to make an extra payment, but if you're lucky enough to receive a bonus at work or a tax refund, that can be used to make a lump-sum payment once a year. 'Any little bit is going to save you interest,' Hopper said. When mortgage rates were less than two per cent, the case for using extra cash to make additional payments instead of investing that money in hopes of making more than you were paying in interest was hard to make. But with higher interest rates combined with volatile stock markets, the case for trying to do better by investing the money versus the sure thing of paying down additional debt and saving on interest is harder to make. Mengdie Hong, a senior financial planner at RBC in Ottawa, said you want to compare your mortgage rate and expected return on the investments. 'In simple words, if your mortgage rate is higher than what you expect from your investment ... it may be best to allocate this excess cash to the mortgage, but if your expected return is noticeably higher than the mortgage, you may want to invest,' Hong said. Making lump-sum payments on your mortgage can also help keep any rise in your payments in check if you face a higher interest rate upon renewal, because your outstanding balance will be lower. And if you find yourself selling your home before you've fully repaid your loan, you'll end up with more cash in hand because of the lower amount you owed. 'You've got more cash on hand to make your next purchase or to move forward in the next leg of your journey,' Hopper said. The size of any lump-sum payment aren't without restrictions, which will vary between lenders. How much you can repay early and how often will be laid out in the documents you signed when you took out the loan. Both Hong and Hopper say extra payments on your mortgage shouldn't be made in isolation and must be considered as part of your overall financial plan. The status of your emergency fund, RRSP, RESP and TFSA contributions, and other debts all need to be considered. Hong said if you have other, higher-interest debt, such as outstanding credit card balances, that may be where you want to be making extra payments. 'So before you apply this lump sum, you may want to review all the debts that you have,' she said. Hong says paying down your mortgage and becoming debt-free sooner feels great, but you don't necessarily want to do it at the expense of flexibility. 'We always want to have flexibility and options in our financial plan,' she said.
