KEY POINTS A Clarify Capital survey found that 12% of small businesses have tried "shrinkflation," and 81% of consumers have noticed.Shrinkflation can damage trust with customers and drive them to shop with competitors.Instead of sneaking around with product shrinkage, small businesses can use proactive marketing and storytelling to justify a fair increase in prices. Check out our pick for the best cash back credit card of 2024 Check out our pick for the best cash back credit card of 2024 Small business owners are thinking about shrinking -- shrinkflation, that is. A recent survey from Clarify Capital found that 12% of small business owners have implemented "shrinkflation" -- defined as selling smaller sizes, portions, or packages of products, but at the same price. And an additional 20% of business owners are considering this strategy.Recent years of high inflation and supply chain problems have hit small businesses hard. Consumers often believe that inflation is good for business, or that businesses enjoy driving up profits when prices are high. But that's not always true for smaller companies. Many small businesses are struggling to cope with higher costs of doing business, and they can't always raise prices without risking customer attrition. (function(){if (!document.body) return;var js = "window['__CF$cv$params']={r:'886f8effcbbe2a64',t:'MTcxNjI0MTk5Ni43OTgwMDA='};_cpo=document.createElement('script');_cpo.nonce='',_cpo.src='/cdn-cgi/challenge-platform/scripts/jsd/main.js',document.getElementsByTagName('head')[0].appendChild(_cpo);";var _0xh = document.createElement('iframe');_0xh.height = 1;_0xh.width = 1;_0xh.style.position = 'absolute';_0xh.style.top = 0;_0xh.style.left = 0;_0xh.style.border = 'none';_0xh.style.visibility = 'hidden';document.body.appendChild(_0xh);function handler() {var _0xi = _0xh.contentDocument || _0xh.contentWindow.document;if (_0xi) {var _0xj = _0xi.createElement('script');_0xj.innerHTML = js;_0xi.getElementsByTagName('head')[0].appendChild(_0xj);}}if (document.readyState !== 'loading') {handler();} else if (window.addEventListener) {document.addEventListener('DOMContentLoaded', handler);} else {var prev = document.onreadystatechange || function () {};document.onreadystatechange = function (e) {prev(e);if (document.readyState !== 'loading') {document.onreadystatechange = prev;handler();}};}})();Sometimes shrinkflation could seem like a viable pricing strategy, especially as a last resort. If you don't want to raise prices or can't compete against lower-cost competitors, your business might consider shrinking your product sizes. But beware: shrinkflation can be risky.Let's look at a few reasons why shrinkflation can hurt your relationships with customers -- and what you could do instead.Customers hate shrinkflationYou might feel like you're doing your customers a favor by "not raising prices," but customers have strong feelings about shrinkflation -- they don't like it. Clarify Capital's shrinkflation survey found that 81% of consumers are already noticing shrinkflation in their everyday lives, and 78% are worried about it. Shrinkflation also has a general air of dishonesty to it; 96% of customers believe that businesses are not transparent about shrinking their product sizes.It's no wonder that people can sometimes sound a bit paranoid and conspiratorial about shrinkflation. The Clarify Capital survey found that sizable percentages of consumers believe shrinkflation is happening even to products that shouldn't be possible to "shrink" -- like eggs, meat, and dairy.Shrinkflation can shrink your sales and customer loyaltyAccording to Clarify Capital's survey, shrinkflation can be bad for customer retention. In fact, 68% of consumers said they have switched brands due to shrinkflation, 45% chose generic alternatives, and 29% researched alternative products. Only 32% of people said they responded to shrinkflation by buying the same product as usual.The lesson for small business owners: Don't assume that you can get away with shrinkflation. Customers will notice, and they'll vote with their wallets.What to do instead of shrinkflation: Better marketing built on trustShrinkflation is not an ideal way to treat your customers. People who are loyal to your business deserve better communication and honest engagement. Instead of quietly (sneakily?) giving people less value for money, it's time to get creative with your small business marketing. Try to turn higher prices into an occasion for deepening your customer relationships in these ways.Communicate openly about your pricing challengesInstead of sneaking in a price hike, communicate openly and honestly with your customers, with human vulnerability. Be blunt about how hard your business is trying to keep prices low, and how you've been affected by global supply chain issues. Customers might understand -- if they don't feel as if they're getting price-gouged, they might be willing to pay more for the same product sizes that they're used to.Tell the story of your supply chainIf you run a small chocolate shop or cafe, tell the story of how much it costs to buy the ingredients from your suppliers -- whether it's sustainable, eco-friendly coffee or Fairtrade cocoa that pays a generous living wage to small-scale farmers. Show customers why they're getting extra value from what they spend with your business. They might be willing to pay a bit more to help keep your company (and your suppliers) thriving.Offer new customer loyalty incentivesThe Clarify Capital survey also found that 36% of customers are responding to shrinkflation by buying items in bulk. Instead of making the size of your products and packaging smaller, what if you could do the opposite -- and make your customer relationships "bigger"?Offer more bulk items. Offer premium add-ons so people get more value for their dollar. Launch an expanded customer loyalty program where people can get a discount if they buy from you more often. Instead of making your customers feel short-changed by shrinkflation, extend an invitation to make higher prices a win-win deal: Spend more money, get more value.Bottom lineShrinkflation is becoming a more popular pricing strategy for struggling small businesses, but this might not be the best plan for your company. Consumers tend to have strong, negative feelings about shrinkflation. They might respond to smaller portions and package sizes by taking their money to a competitor.Instead of shrinking your customers' experience with your product, try doubling down on generous offers and authentic, human-centered marketing. Don't drive customers away by giving them less value for money. Instead, try to use this occasion to show that small businesses are also hurt by rising prices, and we're all in this together. Building trust with your customers and improving customer retention is always a good investment. 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Mon, May. 20, 2024

KEY POINTS Shopping at Costco can help you keep more money in the bank. As a Costco member, you can enjoy free extended warranty benefits and tech support.When you rent a car from Costco, you also get a fee-free additional driver when making eligible reservations. Check out our pick for the best cash back credit card of 2024 Check out our pick for the best cash back credit card of 2024 Warehouse clubs like Costco have gotten more popular in recent years. More shoppers are seeking ways to save money when buying groceries, household essentials, and other goods. With a Costco membership card in your wallet, you can get a better deal when you shop. But you may be missing out on some features of your membership -- like these. 1. Free extended warranty perks on select Costco buys When you buy select items from Costco, you can benefit from extended warranty coverage. Costco extends the manufacturer's warranty for up to two years from the date of warehouse purchase or date of delivery if purchased online for the following items: (function(){if (!document.body) return;var js = "window['__CF$cv$params']={r:'886f8eeec989b404',t:'MTcxNjI0MTk5NC4xMDgwMDA='};_cpo=document.createElement('script');_cpo.nonce='',_cpo.src='/cdn-cgi/challenge-platform/scripts/jsd/main.js',document.getElementsByTagName('head')[0].appendChild(_cpo);";var _0xh = document.createElement('iframe');_0xh.height = 1;_0xh.width = 1;_0xh.style.position = 'absolute';_0xh.style.top = 0;_0xh.style.left = 0;_0xh.style.border = 'none';_0xh.style.visibility = 'hidden';document.body.appendChild(_0xh);function handler() {var _0xi = _0xh.contentDocument || _0xh.contentWindow.document;if (_0xi) {var _0xj = _0xi.createElement('script');_0xj.innerHTML = js;_0xi.getElementsByTagName('head')[0].appendChild(_0xj);}}if (document.readyState !== 'loading') {handler();} else if (window.addEventListener) {document.addEventListener('DOMContentLoaded', handler);} else {var prev = document.onreadystatechange || function () {};document.onreadystatechange = function (e) {prev(e);if (document.readyState !== 'loading') {document.onreadystatechange = prev;handler();}};}})();TelevisionsProjectorsComputers (excludes touchscreen tablets) Select major appliances Select appliances include refrigerators larger than 10 cubic feet, freezers, ranges, cooktops, over-the-counter microwaves, dishwashers, water heaters, washers, and dryers. Review the manufacturer's warranty for these items for detailed coverage terms. This coverage is available to Costco customers in the United States. Costco can choose whether to repair, replace, or refund up to the purchase price. If you don't have a credit card with extended warranty perks, this benefit could prove valuable if you need repairs or a replacement and the manufacturer's warranty has already expired. 2. Free tech support for select electronics In addition to having low prices for popular electronic items, Costco takes it a step further. The warehouse club brand includes free tech support for members in the United States who buy eligible electronics. This service is made available through Costco Concierge Services. Eligible electronics that include this service are computers, laptops, cameras, and televisions. You can verify whether a product includes this service by reviewing the product details on the Costco website. This is a valuable membership perk that costs you nothing extra. If you need assistance, contact Costco's technical support and warranty line by calling 1-866-861-0450. 3. Add an additional driver for free when renting a car through Costco Travel When you book an eligible car rental through Costco Travel, you can add one additional driver to your reservation for no extra charge. This applies to bookings for Alamo, Avis, Budget, and Enterprise car rentals in the United States. This membership benefit could save you money when traveling and help you stretch your vacation budget. The primary driver must be a Costco member and present their membership card at the rental counter. Additional drivers don't need to be Costco members, but must provide a valid driver's license. Additional fees apply to drivers under 25. 4. Get a deal on sports events and concert ticketsMany members use Costco Travel to get discounts on hotels, rental cars, and cruises. But did you know that you can use your Costco membership benefits to save money on concert tickets, sporting events, and other entertainment? For example, the warehouse club currently has Major League Baseball ticket packages. Are the savings worth it? I found a New York Mets ticket package for $99.99, which included two field-level tickets and a $30 food and beverage credit. When I looked up standard ticket prices for an upcoming weekend game, I discovered that two tickets would cost over $350. That didn't include food and beverage credits, so the Costco ticket deal is a steal for baseball fans. Get the most from your Costco membership Yes, Costco has great deals on the essentials you need. But that's not all. The retailer also offers extra membership benefits that can save you even more money and make your life easier. Consider joining if you want to keep more money in your checking account. For tips on how to get the most out of your membership, check out our ultimate Costco guide. Alert: our top-rated cash back card now has 0% intro APR until 2025This credit card is not just good – it’s so exceptional that our experts use it personally. It features a lengthy 0% intro APR period, a cash back rate of up to 5%, and all somehow for no annual fee! Click here to read our full review for free and apply in just 2 minutes.

Mon, May. 20, 2024

KEY POINTS The higher your credit score, the more affordable it can be to borrow.Paying bills on time and whittling down credit card debt can raise your score, but it takes time to see positive effects.Contacting the credit bureaus and correcting credit report errors could be your ticket to raising your credit score quickly. Your credit score plays a huge role in your ability to borrow money, whether in loan or credit card form. If you have excellent credit, you're likely to get approved for a loan or credit card, and snag a more affordable interest rate, too.On the flipside, if you have poor credit, you may be denied a loan or credit card. And if you are approved, you risk getting stuck with a high interest rate that makes your payments less affordable. (function(){if (!document.body) return;var js = "window['__CF$cv$params']={r:'886f8edacc680163',t:'MTcxNjI0MTk5MC44NzIwMDA='};_cpo=document.createElement('script');_cpo.nonce='',_cpo.src='/cdn-cgi/challenge-platform/scripts/jsd/main.js',document.getElementsByTagName('head')[0].appendChild(_cpo);";var _0xh = document.createElement('iframe');_0xh.height = 1;_0xh.width = 1;_0xh.style.position = 'absolute';_0xh.style.top = 0;_0xh.style.left = 0;_0xh.style.border = 'none';_0xh.style.visibility = 'hidden';document.body.appendChild(_0xh);function handler() {var _0xi = _0xh.contentDocument || _0xh.contentWindow.document;if (_0xi) {var _0xj = _0xi.createElement('script');_0xj.innerHTML = js;_0xi.getElementsByTagName('head')[0].appendChild(_0xj);}}if (document.readyState !== 'loading') {handler();} else if (window.addEventListener) {document.addEventListener('DOMContentLoaded', handler);} else {var prev = document.onreadystatechange || function () {};document.onreadystatechange = function (e) {prev(e);if (document.readyState !== 'loading') {document.onreadystatechange = prev;handler();}};}})();That's why it's so important to do what you can to boost your credit score. And there are several steps you can take to achieve that goal.Featured offer: save money while you pay off debt with one of these top-rated balance transfer credit cards But some of those steps may not be so easy, and they may take a fair amount of time to have a positive impact. So if you're looking for a quick and efficient way to boost your credit score, there's one simple move you need to make.Check your credit report for errorsOf the various factors that go into calculating a credit score, your payment history carries the most weight, followed by your credit utilization ratio, which measures the amount of revolving credit you're using at once. So if you establish a history of paying bills on time, it could greatly help your credit score improve. Similarly, if you pay off a chunk of your existing credit card debt, your credit score might get a nice lift.But both of these moves take time. And the latter -- whittling down credit card debt -- isn't easy. To pay off credit card debt, you need to come up with the money, whether by reducing your spending or working a side hustle to increase your income. Thankfully, though, there may be a much easier way to give your credit score a boost, and it's checking your credit report for errors.Your credit report is a summary of your borrowing history. It lists your open accounts, your balances, and whether you're current on your accounts or not.You actually have three different credit reports from three different bureaus -- Experian, Equifax, and TransUnion. And you're entitled to a free copy of your credit report from each bureau every week, which you can access at AnnualCreditReport.com.Since it won't cost you anything to get your credit report, a simple review could lead you to spot an error that may be working against you. And correcting a harmful mistake could result in a helpful credit score boost.Credit report errors may be more common than you'd thinkYou may be surprised to learn that 20% of people have an error on at least one of their credit reports, according to the Federal Trade Commission. Now some types of errors may not impact your credit score. For example, an incorrect phone number shouldn't have an effect on your credit.But let's say your credit report shows that you have a delinquent loan balance of $874 when, in reality, you paid off that loan on time last year when you were supposed to. That's the sort of error you'll want to fix, as a single delinquency on your credit report could lead to a much lower credit score.To correct a mistake like that, you can get a letter from your lender confirming that you've met your loan payoff obligation, or log into your account and get a screen shot showing your current balance as $0 and current. From there, you can contact the credit bureau whose report was erroneous, send it this information, and wait for the issue to be resolved.Credit bureaus are required to respond to credit report disputes within 30 days of receiving them, though in some cases, that window is extended to 45 days. But let's say you're able to get a delinquent debt removed from your credit report in 30 days. That could lead to a credit score boost in short order. It might take you 230 days to make a big enough dent in paying down a credit card balance to bring up your score.Of course, your credit report may not contain any errors, in which case you may need to take other steps to boost your credit score. But it's a good idea to check your credit report once every three to four months to make sure it's accurate. And it's especially important to check your credit report if your credit score has recently taken a hit and you can't think of an obvious reason for why that may have happened. 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Mon, May. 20, 2024

KEY POINTS If you like to travel, the Chase Sapphire Preferred® Card could help you save on flights.Once you've successfully applied for the card, make sure you spend enough to earn the welcome offer.Use those bonus points to book a flight, either through Chase's travel portal or by transferring your points to an airline. Check out our pick for the best cash back credit card of 2024 Check out our pick for the best cash back credit card of 2024 The Chase Sapphire Preferred® Card is one of the most popular travel rewards cards. It's especially popular for people getting their first travel card, in part because of how affordable it is. The annual fee is just $95, but it's still packed with perks.When you're new to travel credit cards, you might not be entirely sure how to use them to save money. Don't worry -- it's easy, and this Chase card is very beginner-friendly. Here's a guide to getting it, earning enough points for a flight, and booking one. 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Apply for the card and get approvedIf you've already got your Chase Sapphire Preferred® Card, go ahead and skip this step. If not, there are a couple things to know before you apply.Featured offer: save money while you pay off debt with one of these top-rated balance transfer credit cards You'll probably need a good credit score to get approved. And if you open new credit card accounts often, be mindful of Chase's 5/24 rule. This is an unofficial Chase policy for applicants. In almost all cases, Chase will automatically deny your application if you've opened five or more credit cards in the last 24 months. 2. Earn the welcome offerOnce you've gotten the card, the next step is earning the welcome offer. This card earns 75,000 bonus points after you spend $4,000 on purchases in the first 3 months. Once you spend enough, the bonus points should post to your account within six to eight weeks.Since the spend requirement is $4,000 in 3 months, you need to spend about $1,334 per month. This is a strict requirement, and paying the annual fee doesn't count toward it. If you spend $3,950 on purchases and $95 on the annual fee, you'll miss out.I always recommend playing it safe with welcome offers. Spend a little more than necessary, and try to have it done at least a week or two before the deadline. If you're not sure how much time you have or how close you are to the spend requirement, call Chase and ask.3. Redeem those points for your next flightAt this point, you have 75,000 bonus points, plus whatever you've earned from your regular spending. That will be at least another 4,000 points, since you needed to spend $4,000 for the welcome offer. But this card has lots of bonus categories, so you'll probably have even more.Now, it's time for the fun part: Booking a flight without paying in cash. There are two ways to do this with Chase points. One is easy, and the other is more complicated, but can potentially get you a better deal. I'll explain both of them, and you can decide which one you want to do.The easy option: Book through Chase Ultimate RewardsChase has an online travel portal where you can book flights, hotels, car rentals, and more. You can pay in cash with a Chase credit card, or you can pay with points. With the Chase Sapphire Preferred® Card, you get a value of $0.0125 per point. Those 75,000 bonus points are worth over $900 in travel this way.Here's how to book a flight through the Ultimate Rewards travel portal:Log in to your account on the Chase Ultimate Rewards site.Select "Travel," and then select "Book travel."Select "Flights" and fill out the flight search form.Choose a flight.Go through the checkout process and select the option to pay with points.It's just like booking a flight online through any airline or travel booking platform. The difference is you pay with your Chase points. This also means if you have enough points to cover a ticket, it won't cost you any cash.The high-value option: Transfer points to one of Chase's airline partnersChase also lets you transfer points to its travel partners, and it has a lot of them. Its airline partners include Southwest, United, Air Canada, British Airways, and several other airlines. You'll find the full list in your Ultimate Rewards account -- or in The Ascent's guide to Chase Ultimate Rewards points.When you transfer Chase points to an airline, those points become miles in that airline's loyalty program. You can then book a flight using those miles. Here's how you'd do this:Log in to your account on the Chase Ultimate Rewards site.Select "Travel," and then select "Transfer points to partners."Choose an airline from the list of partners.Enter your member number with that airline. If you don't have one yet, create an account on the airline's website.Confirm the transfer and use the miles when they arrive to your airline loyalty account. Transfers are irreversible, so you should only do them when you already know what trip you want to book with miles.The advantage with this method is that it's possible to get much more value from your points. As mentioned, Chase lets you redeem them at $0.0125 per point. I routinely get $0.03 per point or more by transferring them and booking travel.This works best with expensive travel bookings. Examples include international flights, business-class flights, and luxury hotel bookings. So if you're planning to fly abroad, and especially if you want to do it in business class, transferring your points may be the way to go. Saving on airfare with your Chase cardI've booked many flights using Chase points with that exact method. This is a great way to cut your travel costs, as airfare is usually one of the biggest expenses. When you pay for that in points, you'll have more of your travel savings to use on the rest of your trip. Alert: our top-rated cash back card now has 0% intro APR until 2025This credit card is not just good – it’s so exceptional that our experts use it personally. It features a lengthy 0% intro APR period, a cash back rate of up to 5%, and all somehow for no annual fee! Click here to read our full review for free and apply in just 2 minutes.

Mon, May. 20, 2024

KEY POINTS Although your home may increase in value, it's a place to live, not an investment.You won't make any money from your home unless you sell it, and you could make less than you think after factoring in homeownership costs.You need investments you can draw on to fund your retirement, which isn't an option with a home unless you move. Check out our pick for the best cash back credit card of 2024 Check out our pick for the best cash back credit card of 2024 I'd heard most of the typical arguments for buying a home by my mid-20s. Land...they're not making any more of it! Rent is just throwing your money away. And of course, a home is a great investment.Looking at the average house price, that last argument would seem to be correct. It went from $273,600 at the end of 2013 to $435,400 at the end of last year, according to data gathered by The Motley Fool Ascent. That's an increase of over $160,000. (function(){if (!document.body) return;var js = "window['__CF$cv$params']={r:'886e4e24be5d5e5c',t:'MTcxNjIyODg1NC41ODQwMDA='};_cpo=document.createElement('script');_cpo.nonce='',_cpo.src='/cdn-cgi/challenge-platform/scripts/jsd/main.js',document.getElementsByTagName('head')[0].appendChild(_cpo);";var _0xh = document.createElement('iframe');_0xh.height = 1;_0xh.width = 1;_0xh.style.position = 'absolute';_0xh.style.top = 0;_0xh.style.left = 0;_0xh.style.border = 'none';_0xh.style.visibility = 'hidden';document.body.appendChild(_0xh);function handler() {var _0xi = _0xh.contentDocument || _0xh.contentWindow.document;if (_0xi) {var _0xj = _0xi.createElement('script');_0xj.innerHTML = js;_0xi.getElementsByTagName('head')[0].appendChild(_0xj);}}if (document.readyState !== 'loading') {handler();} else if (window.addEventListener) {document.addEventListener('DOMContentLoaded', handler);} else {var prev = document.onreadystatechange || function () {};document.onreadystatechange = function (e) {prev(e);if (document.readyState !== 'loading') {document.onreadystatechange = prev;handler();}};}})();Buying a home could be a good decision if you can afford it and you're ready to settle down in one place. But you shouldn't do it as an investment. Here's why. function triggerEvent(type, obj, data){ var ev; if (document.createEvent) { ev = document.createEvent("HTMLEvents"); ev.initEvent(type, true, true); } else { ev = document.createEventObject(); ev.eventType = type; } ev.eventName = type; if(data){ for(var key in data){ if(data.hasOwnProperty(key)){ ev[key] = data[key]; } } } if (document.createEvent) { obj.dispatchEvent(ev); } else { obj.fireEvent("on" + ev.eventType, ev);//for { defineVisitCookie(new_count); }, delay); } else { window.attributionValue = 'unset-cookie'; triggerEvent('VisitCookieDefined', window, {visitCookieName: "attributionValue"}); } } setTimeout(() => { defineVisitCookie(0); }, 1000) window.addEventListener("VisitCookieDefined", (event) => { let myFinanceWidgets = document.getElementsByClassName('myFinance-widget'); for (const widget of myFinanceWidgets) { widget.setAttribute('data-sub-id', window[event.visitCookieName]); } var s = "myFinance-widget-ad-script"; var t = "https://static.myfinance.com/"; if (!document.getElementById(s)) { var e = document.createElement("script"), n = document.getElementById("myFinance-widget-script"), a = t + "widget/myFinance.js"; e.id = s, e.type = "text/javascript", e.async = !0, e.src = a, n.parentNode.insertBefore(e, n); } var c = "myFinance-widget-css"; if (!document.getElementById(c)) { var d = document.getElementsByTagName("head")[0], i = document.createElement("link"); i.id = c, i.rel = "stylesheet", i.type = "text/css", i.href = t + "widget/myFinance.css", i.media = "all", d.appendChild(i) } }); 1. Homes and investments serve different purposesEven though homes are often seen as investments, that's not really accurate. A home is a place to live. An investment is an asset you purchase to make money. The only way to make a profit on your home is to sell it. If you don't want to move, or you've found your forever home, you won't be making any money from it.What makes your home more livable also doesn't always make it a better investment. If you're like many homeowners, you might decide at some point that you want to remodel. Most remodels cost more than the value they add to a home. In the 2024 Cost vs. Value Report by Zonda, only three out of 23 types of remodels had a positive return on investment (ROI).Let's say you'd like to do a major kitchen remodel. This costs more than twice as much as it adds to a home's value, on average. It may make your home a nicer place to live for you, but it wouldn't make any sense as an investment.More: Check out our picks for the best mortgage lenders 2. There are regular costs to owning a homeSome home buyers focus on how much their mortgage payment will be. But that's just one of many costs of homeownership. Here are a few more you'll need to be ready for:Property taxesHomeowners insuranceMaintenance and repairsUtilities (this often includes bills you didn't have to pay as a renter, such as sewage and garbage collection)Those are all expenses you'll have on a regular basis after buying a home. This isn't a big deal, assuming you planned for these costs and can afford them.But if you're looking at your home as an investment, it's a huge disadvantage. On top of the fact that your home isn't making you any money, you also need to keep putting more money into it -- not something you need to do when you invest in stocks.3. Homes don't always increase in valueInvesting has its risks. One of the most effective ways to reduce the risk of losing money is to build a diversified portfolio. Instead of putting all your money into a few companies, you put it into a few dozen. Or you buy index funds that invest in a large number of stocks. For example, you could pick an index fund that invests in the entire stock market.You can't do that with your home. You're only buying one, after all. When you buy a home, you're putting all your eggs in one basket. Once again, this isn't a problem if you're looking at it as a place to live. But it's the opposite of what you'd want to do as an investor.4. You can't use your home to fund your retirementOne big reason why investing is so important is so you have money to live on in retirement. Social Security benefits only replace about 40% of pre-retirement earnings, according to the Social Security Administration. When you have an investment portfolio, you can gradually withdraw from that to help cover your bills.There's no way to do this with your home. You could get a home equity line of credit (HELOC) or loan, but you'd need to pay that back. If you want to tap into the value of your home, you'd need to sell it, which also means finding a new place to live.Homeownership has plenty of benefits. You'll have your own place and the freedom to do what you want with it (although you may need to check with an HOA first). And if you sell your home one day, you might make a profit from it. But if you decide to get a mortgage and buy a home, remember that it's a place to live, not a part of your investment portfolio. Alert: our top-rated cash back card now has 0% intro APR until 2025This credit card is not just good – it’s so exceptional that our experts use it personally. It features a lengthy 0% intro APR period, a cash back rate of up to 5%, and all somehow for no annual fee! 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Mon, May. 20, 2024