Jun
06
2023
couple on couch with laptop

Prenup vs Postnup: What is the Difference?

By | Budgeting & Goals, money | Comments Off on Prenup vs Postnup: What is the Difference?

While prenups and postnups aren’t as romantic as discussing your honeymoon or your dream house, these agreements can be a financial lifesaver if your marriage were to end.

Both prenups and postnups help determine who would get what if you and your spouse got divorced.

These two varieties of agreements carry some significant distinctions. Depending on your circumstances, one may better suit your relationship versus the other.

Here, you’ll learn some of the key ways prenups vs. postnups differ, as well as how to decide if you and your partner would benefit from getting one.

What is a Prenup?

Short for “prenuptial agreement,” a prenup is a legally binding document set up before a couple gets married — hence the “pre” suffix. Prenups may also be known as “antenuptial agreements” or “premarital agreements,” but the bottom line is, they’re contracts drafted before vows are made.

These contracts typically list each party’s assets, including property and wealth, as well as any debts either soon-to-be-spouse might carry.

It then details how these assets will be divided in case the marriage comes to an end, either through a divorce or the death of a spouse.

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Who Needs a Prenup?

Couples who are getting married for the first time and are bringing little to no assets into the marriage may not need to bother with drawing up a prenup.

However, a prenup can be particularly useful if one spouse is coming into the marriage with children from a previous partnership, or if one partner has a large inheritance or a significant estate, or is expecting to receive a large inheritance or distribution from a family trust.

These types of agreements aren’t just used in case of divorce, but also death, which can be particularly important for couples with children from a previous marriage.

If that partner dies, the prenup can define how much of their wealth should be passed onto their children versus their surviving spouse.

Prenups can also be useful for protecting assets earned and property acquired during the course of a marriage, which, without a prenup, are generally considered “shared ownership.”

If one partner wants to maintain a separate claim to acquired wealth or possessions, a prenuptial agreement makes that possible.

A prenup can also keep a high-earning partner from being required to pay alimony to their partner in the case of a divorce. However, in some states, a spouse can’t give up the right to alimony, and the waiver may not be enforced by a judge depending on the way the prenup is drafted.

In the event of divorce, a prenup can also help protect a spouse from being liable for any debt, such as student loan payments in a marriage, the other spouse brought into the union.

What is a Postnup?

A postnup, or postnuptial agreement, is almost identical to a prenup — except that it’s drafted after a marriage has been established.

They may not be as well known as prenups, but postnups have grown increasingly common in recent years, with nearly all 50 U.S. states now allowing them.

A postnup may be created soon after the wedding, if the couple meant to do so but simply didn’t get around to it before the big day, or well afterwards, especially if some significant financial change has taken place in the family.

Either way, a postnup, much like a prenup, does the job of outlining exactly how assets will be allocated if the partnership comes to an end.

Who Needs a Postnup?

Along with being drafted whole cloth, a postnup can be used to amend an existing prenuptial agreement if there have been big changes that mean the initial contract is now outdated.

And although it’s not fun to think about, if a couple feels they’ll soon be facing divorce, a postnup can help simplify one important part of the process before the rest of the legal proceedings take place.

A postnup, like a prenup, can help separate out assets that would otherwise be considered shared, “marital property,” which can be important if one partner obtains an inheritance, trust, piece of real estate, or other possession they want to maintain full ownership over.

Postnups can also be part of a renewed effort for a couple to commit to a marriage that may be facing some obstacles and challenges.

Prenup vs. Postnup: Which is Right for Your Relationship?

While it may be a difficult conversation to face with your fiance or spouse, creating a prenup or postnup can be an important step to help you avoid both headache and heartache later on.

If you don’t make a prenup or postnup, your state’s laws determine who owns the assets that you acquire in your marriage, as well as what happens to that property in the event of divorce or death. State law may also determine what happens to some of the assets you owned before marriage.

While almost any couple can benefit from a frank discussion of who gets what in the worst-case scenario, here are the situations in which you might specifically want to consider a prenup vs. postnup.

Recommended: How to Switch Banks

When to Consider a Prenup

•   If one or both partners have existing children from a previous partnership, to whom they want to lay out specific inheritances in case of death.

•   If one partner has a larger estate or net worth (i.e., if one spouse is significantly wealthier than the other).

•   If one or both partners want to protect earnings made and possessions acquired during the marriage from “shared ownership.”

When to Consider a Postnup

•   If you intended to create a prenup but ran out of time or otherwise didn’t do so before the wedding.

•   If significant financial changes have made it necessary to change an existing prenup or draft a new postnup.

•   If divorce is looking likely or inevitable, and the couple wishes to streamline the process of dividing marital assets before undergoing the rest of the process.

In all cases, prenuptial and postnuptial agreements can help simplify the division of assets in the case of either death or divorce — and in either of those extremely emotionally charged scenarios, every little bit of simplification can help.

However, prenups are sometimes considered more straightforward, since they’re made before assets are combined to become marital property.

Prenups may be more likely to be enforceable than postnups should one partner attempt to dispute it after a divorce.

Recommended: Budget Tips for Life After Divorce

How to Get a Prenup or Postnup

Here are points to consider:

•   For a prenup or postnup agreement to be considered valid by a judge, it must be clear, legally sound, and fair.

•   Couples looking to save money may be able to use a template to create a prenup or postnup themselves.

•   It may still be a good idea, however, for each partner to at least have separate attorneys review the document before either one signs.

•   If your estate is more complex, you may want to consider hiring an attorney to draft the agreement.

•   Either way, having an attorney review the document will help protect your interests and also help ensure that a judge will deem the agreement is valid.

Recommended: How to Manage Your Money Better

Reducing the Odds You’ll Ever Need to Use that Prenup or Postnup

While creating a prenup or postnup can be a smart move for even the most hopeful and romantic of couples, the ideal scenario is a happily-ever-after that leaves those contracts to gather dust.

Fighting about money is one of the top causes of strife among couples, and one of the main reasons married couples land in divorce court.

For some couples, one way to improve their odds might be waiting until they’ve achieved some measure of financial stability before tying the knot.

Walking into a marriage with a solid personal foundation, such as a well-stocked emergency fund and a well-established retirement account, can help partners feel empowered and able to focus on other important relationship goals.

Financial transparency, starting before and/or early in marriage, can also help mitigate marital tension over money.

To achieve more transparency, some couples may want to consider opening up a joint bank account, either after they tie the knot or before if they are living together and sharing household expenses.

While there are pros and cons to having a shared account, merging at least some of your money can help make it easier to track spending and stick to a household budget, while also fostering openness and teamwork.

For couples who’d rather not share every penny (or explain every purchase), having two separate accounts along with one joint account can be a good solution that helps keep money from becoming a source of tension in a marriage.

The Takeaway

Prenuptial and postnuptial agreements are both legal documents that address what will happen to marital assets if a married couple divorces or one of them dies.

A prenup is drafted before marriage, while a postnup can be drafted soon after or many years into marriage. Both agreements can make divorce or the death of a partner significantly less traumatic and help divide assets in an equitable way.

For both couples who are ready to integrate their finances or want to keep their money separate, opening a Checking and Savings account with SoFi makes things easy. Whether a joint account or not, you’ll spend and save in one convenient place, while earning a competitive annual percentage yield (APY) and paying no account fees.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 4.20% APY on SoFi Checking and Savings.


SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2024 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

SoFi members with direct deposit activity can earn 4.20% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. SoFi members with direct deposit are eligible for other SoFi Plus benefits.

As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.20% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 10/31/2024. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

This article is not intended to be legal advice. Please consult an attorney for advice.

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Jun
06
2023
hands reaching for money

Are You Wasting Money?

By | Budgeting & Goals, money | Comments Off on Are You Wasting Money?

No one sets out to waste money. But sometimes, it can feel as if you have thrown your hard-earned cash right down the drain.

How you spend your cash is, of course, up to you. Some may allot cash towards restaurants or Pilates classes, and that’s okay. As long as it’s a healthy spending habit and it falls within the predetermined budget, who’s to say it’s a bad idea?

But, that said, you may feel you want to cut back a bit on your outflow of funds. How to do so? Not everyone is a budget brainiac. Many people could use some help analyzing where their cash is going and whether that’s a good use of their funds.

So here are some common spending habits where you may be wasting money without even realizing it. Take a closer look, and you may find ways to save.

Recurring Subscriptions

Set it and forget it is great when it comes to automating your personal finances, but it’s less than ideal when it comes to subscription services. 84% of American homes have at least one streaming service subscription, and the average US subscriber has signed up for four services.

On top of streaming entertainment services, plenty of American consumers subscribe to a box service, like Dollar Shave Club, Hello Fresh, or FabFitFun. Whether a person is ready to ditch some monthly services or not, they can try tracking their monthly recurring spending on a spreadsheet, using their bank’s app, or enrolling in a free service, like Trim or Hiatus, to catch those monthly bills.

From there, subscribers can decide what stays and what goes. What might be worth the cost based on frequency, or what is worth canceling because they didn’t even realize they were signed up. For instance, you might decide to save on streaming services and reduce the number of subscriptions you have on that front.

Food Expenses

Buying groceries is an essential part of budgeting, but it’s one everyone should keep an eye on. Purchasing too many groceries, or creating food waste can be a big wasted expense. The average American throws away 219 pounds of food a year, and the average U.S. family of four will throw away $1,500 worth of food in a year. Meal planning and buying only what’s needed can help spend less on food and reduce waste, too.

But, groceries aren’t the only area where money is wasted on food. The average home in America spends nearly plenty on food away from home, which includes home delivery.

Dining out is great for special occasions, and, yes, ordering in makes sense sometimes, too. But eating even a few more meals at home a week can lead to some serious long-term savings.

Recommended: How Much Should I Spend on Groceries a Month?

Small Impulse Buys

When a purchase is one click away, buying things on impulse becomes almost automatic. It makes ordering new pens or purchasing a latte on the way to work easy, and many of us rationalize the purchase because it’s only a dollar or two.

But a dollar or two adds up faster than most of us think. According to one recent survey, the average American can spend as much as $300 a month on impulse purchases.

Impulse spending ranges dramatically from shopper to shopper, but curbing it can look the same across the board. Try implementing the 30-day rule on most purchases. That means letting something sit in a digital shopping cart for 30 days before determining if it’s worth purchasing.

Slowing down the buying cycle can help separate want from need and prevent purchases that are forgotten moments after the transaction.

Recommended: How to Prevent Shopping out of Boredom

Unreturned and Unused Items

Some of us leave cash sitting on the floor of our closets. Ordering clothing and other items online has become fast and seamless, but when something doesn’t meet our expectations, returning it becomes a chore. So we let it sit.

Obviously, summoning your energy to deal with unwanted items and return them is one solution. But here’s another: Buyers with a closet full of unworn clothes (some of which are probably just sitting there because you got tired of them) can try to recoup some of the money spent by finding places to sell your stuff. These can range from local consignment shops to online marketplaces like Poshmark or Depop.

Transportation Costs

Transportation costs are a necessity in budgeting. But, many of us don’t account for the true cost of transportation, whether that’s fees associated with parking, or the occasional Uber ride.

Owning a car comes with additional expenses, such as gas, insurance, and maintenance, not to mention parking expenses, which can add up quickly.

Moves to make include figuring out how to save on gas, DIY-ing some simple car maintenance jobs, and opting for public transportation when possible.

Get up to $300 when you bank with SoFi.

No account or overdraft fees. No minimum balance.

Up to 4.20% APY on savings balances.

Up to 2-day-early paycheck.

Up to $2M of additional
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Bank Fees

Many Ameicans might not even realize how much they’re being charged simply for accessing their money. The average bank overdraft fee is around $35. If a person isn’t paying attention, they could overdraw multiple times before realizing what they’ve done and end up with a negative balance.

Some banks will even charge customers just for holding an account with them. The cost of these service fees vary, but average to more than $5 per month.

Finally, ATM fees can take a chunk out of a customer’s account in moments. When someone chooses to use an ATM outside of their bank’s network, they’ll pay $4.66, on average, each time they withdraw money.

The Takeaway

There are ways to reduce the amount of money you may be wasting, from finding a better budget to cutting down on food and car costs, to lowering the bank fees you are paying.

That last one is where SoFi can help. WIth a SoFi Checking and Savings online banking account, you’ll pay no account fees, which can help keep your savings growing. Plus, you’ll have access to a network of over 55,000 fee-free ATMs globally.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 4.20% APY on SoFi Checking and Savings.


SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2024 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

SoFi members with direct deposit activity can earn 4.20% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. SoFi members with direct deposit are eligible for other SoFi Plus benefits.

As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.20% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 10/31/2024. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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Jun
06
2023
colorful pie charts mobile

9 Ways to Improve Your Financial Life

By | Budgeting & Goals, money | Comments Off on 9 Ways to Improve Your Financial Life

Making it in life, in a financial sense, isn’t a matter of winning the lottery or saving pennies like a miser. Rather, like many goals, it can depend on developing good daily habits.

If you make small, incremental shifts in how you manage your money, you could grow your net worth significantly. Some of the moves to make can involve reviewing and trimming your recurring bills, bumping up your savings contributions a notch, and other simple changes.

While you may not see your savings double overnight, you can get on a path to growing your wealth. Here are some ideas that can help put you on the road to a better financial life.

1. Reviewing Monthly Expenses

One of the simplest ways to improve your financial health is to take a closer look at exactly where your money is going each month.

Consider tracking expenses for a month or so, and then making a list of how much you’re currently spending monthly on essential and non-essential items.

You may want to list them in order of priority, and then look for places where you could potentially pair back, or, in some cases, completely eliminate the expense.

This might involve canceling inactive memberships and unused subscriptions, and/or re-evaluating your cell, cable and car insurance plans (do you have more bells and whistles than you need? Could you get a better deal elsewhere?).

Or, you might decide to cook more, and get takeout less often, or make fewer trips to the mall.
Another way to knock down recurring bills is to do a little haggling. Sometimes all it takes is a phone call to get a provider to give you a better deal or to lower your rate.

For instance, if you see a promotion going on from a competitor, you can always ask your company if they can apply that rate to your account.

You can also call up a hospital to negotiate a medical bill.

Recommended: Are you financially healthy? Take this 2 minute quiz.💊

2. Trying a 30-Day Spending Freeze

One quick way to change your spending habits is to put yourself on a one-month spending freeze, during which you avoid buying anything that isn’t a must. You may identify some ways and reasons you are overspending and be able to scale back.

If that seems too challenging, you might want to pick a single category (such as clothing or shoes) or a specific store to stay away from for 30 days.

To help stay motivated, you might keep track of the money you didn’t spend during your freeze and then put it to use paying down debt, starting an emergency fund, or saving for a downpayment on a home or other short-term financial goal.

This can result in more money in the bank (or fewer bills) at the end of the month.

And once you start seeing the payoff of not giving in to impulse buying, you may find yourself spending less even after the freeze is over.

Recommended: How to Stop Compulsive and Impulsive Shopping

3. Automating Every Bill

Automating your finances not only makes your life easier, it can help boost your financial wellness.
Setting up automatic withdrawals from your bank account to pay all of your bills helps ensure those bills get paid on time. And, when it comes to improving your financial life, paying bills on time can have a pretty significant impact.

For one reason, it helps you avoid paying interest and late-payment fees.

It could also help maintain your credit score. That’s because a significant portion of your credit score is based on payment history. In fact, it’s weighted more than any other factor.

Having a good credit score is important because it can help you qualify for the best interest rates on credit cards and loans, including a home mortgage.

Get up to $300 when you bank with SoFi.

No account or overdraft fees. No minimum balance.

Up to 4.20% APY on savings balances.

Up to 2-day-early paycheck.

Up to $2M of additional
FDIC insurance.


4. Putting an Extra 1% Towards Retirement

Even if you think you can always plan for retirement later, the sooner you start, the easier it is, and the more you’ll have when you do retire.

If you’re not yet maxing out your 401(k) contribution at work (which takes money out of your paycheck before taxes), you may want to increase it by just 1%.

You likely won’t notice the difference in your paycheck. But given the power of compounding interest (when your short- or long-term investments earn returns, those returns get reinvested and start to earn returns as well), that small increase can net more significant gains over time.

You may want to set up a timeline for when you want to bump it up another percentage point after you’ve gotten used to the 1%.

If you don’t have a 401(k) at work, you may want to look into opening an individual retirement account (IRA), keeping in mind that there are limits on how much you can put into retirement savings each year.

5. Paying in Cash

What is it about plastic that can make your brain think you’re not really spending money?

One way to curb unnecessary or mindless spending is to leave your credit cards at home and only carry the amount of cash you have budgeted to spend that day, or week.

When you can literally see your money going somewhere, you may find yourself becoming much more intentional in the way you spend it.

It can also be more difficult to get into debt when using cash, which could, in turn, pay off later by helping you avoid high interest credit card payments.

Recommended: Guide to Lowering Your Credit Card Interest Rate

6. Creating Multiple Income Streams

You may not be able to snap your fingers and get a raise at work, but it might be possible to increase your income in other ways. A low-cost side hustle could be the answer.

For example, is there a way to turn one of your hobbies, skills, or interests into some extra funds?

Maybe a favorite local business could use some help managing their social media account or designing or writing copy for their website.

Babysitting a neighbor’s kids, cleaning houses, walking dogs, or running errands for an older person are also options.

Or, you might consider taking up a gig with flexible hours, such as driving for Uber or another rideshare company, delivering food, helping people with small tasks, or personal shopping through one of the many on-demand service apps.

7. Saying “No” to Monthly Fees

Unless you’re looking very closely at your bank statements each month, you might not even be aware of the fees your bank may be charging every month for your checking or savings accounts.

These could include service fees, maintenance fees, ATM fees (if you go outside their network), minimum balance fees, overdraft/insufficient funds fees, and transaction fees. Over time, those little dinks can make a major dent in your account.

If you notice that you’re getting hit with one or more bank fees, you may want to consider shopping around for a less expensive bank or switching to an online-only financial institution.

Because online financial institutions typically don’t have the same overhead costs banks with physical branches do, they generally offer low or no fees.

8. Making Savings Automatic

To start a savings routine, consider opening up a high-yield savings account or checking and savings account, and then setting up automatic, monthly transfers from your checking account into this saving account.

By having a set amount automatically transferred every month, you won’t have to think about (or remember to manually make) this transaction — it’ll just happen.

It’s perfectly okay to start small. Even small deposits of $20 or so will add up.

Before long you may have enough for an emergency fund (i.e., three- to six-months worth of living expenses just-in-case), a down payment, or another savings goal.

9. Knocking Down Debt

Having too much debt can hurt your chances of achieving financial security.

That’s because when you’re spending a lot of money on interest each month, it can be harder to pay all of your other expenses on time, not to mention grow your savings.

Getting rid of debt can have long-range consequences as well.

If you can lower your credit utilization ratio, which shows the amount of available credit you have, you could help establish or maintain your credit scores. And that, in turn, could make it easier to qualify for lower-interest loans and credit cards in the future.

While knocking down debt may seem like a mountain to climb, choosing a simple debt reduction strategy may help.

•   Since credit card debt typically costs the most in interest, you might consider chipping away at these debts first, and then move on to the debt with the next-highest interest rate, and so on.

•   Another approach is to pay the minimum toward all your accounts and then pay any extra you can afford toward the debt with the smallest balance. When that debt is wiped out, you can move on to the next smallest balance, and so on.

If you can qualify for a lower interest rate, another option might be to take out a personal loan that consolidates all those high-interest debts into one more manageable payment.

The Takeaway

Making it financially doesn’t necessarily mean bringing in a huge paycheck or coming into a windfall (although those things don’t hurt).

Financial wellness is more about being able to live within your means while saving. Making a few incremental changes, such as putting just 1% more of your paycheck into your 401(k), or siphoning off an extra $100 into a savings or checking and savings account each month, can slowly but surely help you build your net worth.

Taking steps to improve your financial well-being can be simple with the right information and tools. With a SoFi Checking and Savings online bank account, you can track all your spending and saving with a single dashboard. It’s also easy to set up automatic transfers to savings accounts for different goals, all while earning competitive annual percentage yield (APY).

Not a fan of fees? SoFi Checking and Savings doesn’t have any account fees, plus withdrawing cash is fee-free at the Allpoint Network of 55,000+ ATMs worldwide.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 4.20% APY on SoFi Checking and Savings.


SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2024 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

SoFi members with direct deposit activity can earn 4.20% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. SoFi members with direct deposit are eligible for other SoFi Plus benefits.

As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.20% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 10/31/2024. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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What Do Investment Bankers Do?

What Do Investment Bankers Do?

By | Growing Wealth, invest, Investing | Comments Off on What Do Investment Bankers Do?

Investment banking is a specialized area of the financial services industry that focuses on aiding governments, corporations and other entities to raise capital and complete mergers and acquisitions. The term “investment banker” refers to an individual who works for an investment bank that offers these services.

Investment banking is typically considered to be a prestigious career, and becoming an investment banker can be lucrative for those willing to complete the necessary education and training.

What Is an Investment Banker?

Investment bankers work for investment banks, which are effectively middlemen between entities that need capital and entities that provide it. In simpler terms, investment bankers help their clients to expand and grow their businesses or operations.

Another way to think of an investment banker is as a financial advisor to governments, corporations, and other businesses. As part of their professional duties, they may guide clients in making financial decisions that directly or indirectly affect their bottom line.

Investment bankers are most often associated with Wall Street, though they work in cities throughout the world. Some of the largest investment banks in the United States include Goldman Sachs & Co., Morgan Stanley, J.P. Morgan, Bank of America Merrill Lynch, and Blackstone.


💡 Quick Tip: All investments come with some degree of risk — and some are riskier than others. Before investing online, decide on your investment goals and how much risk you want to take.

What Do Investment Bankers Do?

Investment bankers play an important role in helping companies achieve their financial goals. When a corporation is planning an upcoming expansion project, for instance, its board may turn to an investment bank for help. An investment banker can analyze the company’s financial situation to determine the best way to meet its needs.

In terms of the specific tasks an investment banker may carry out, that depends largely on the type of clients they work with.

Assisting With Initial Public Offerings

Investment bankers can play a critical role in helping clients secure capital. Depending on the client, this can be done through a variety of means, including the launch of an initial public offering (IPO).

An initial public offering, or IPO, allows private companies to offer shares of its stock to the public for the first time. The investment banker assists by creating a prospectus explaining the details of the IPO, marketing it to potential investors, and navigating Securities and Exchange Commission (SEC) compliance rules.

Investment bankers are key to whether the company’s IPO is a success. They help determine the initial price of the offering, which is critical. Pricing too high could scare off investors, while going too low could undercut their client’s profits.

Bond Issuance

Government agencies and corporations often use bonds as a fundraising tool. For example, if a city government needs money to improve local roads they might issue a municipal bond to fund the project. Investors purchase the bonds on the bond market, giving the government the capital it needs to complete the road updates. Investors can hold onto the bond and earn interest on it, or they can sell it to another investor.

As with an IPO, an investment banker’s role in issuing bonds may include preparing the bond issuance documents, setting a price, submitting it to the SEC for approval, and marketing the bond to investors to raise capital.

Recommended: Federal Reserve Interest Rates, Explained

Equity and Debt Financing

Equity and debt financing are two other ways that companies can tap into funding. With equity financing, companies raise capital by selling an ownership share in the business. Venture capital and private equity are common examples of equity financing.

Debt financing involves taking out loans or lines of credit, without giving up ownership stakes. An investment banker can help companies assess which type of financing makes more sense for their business model, and help them work through the process of securing the funding.

For example, investment bankers may work with startups to pitch angel investors, while they might help more established companies compare and select loan options.

Mergers and Acquisitions

Another common task that investment bankers assist companies with is mergers and acquisitions. In a merger, two companies enter into an agreement to become a single business entity. Each company is treated as an equal in the transaction. An acquisition, on the other hand, involves one company purchasing another.

In either type of arrangement, companies may use investment bankers to oversee the process. This could involve negotiating the terms of a merger or acquisition and reporting the details of the transaction to the SEC to ensure compliance. When a company considers an acquisition, investment bankers can also help identify and vet potential targets.

Recommended: What Happens to a Stock During a Merger?

Investing and Asset Management

While investment bankers’ duties primarily revolve around raising capital for their clients, there are other services they may perform. This can include things like:

•   Investment research and analysis

•   Buying and selling securities

•   Offering advisory services

•   Asset management

These services are similar to what a personal financial advisor might offer their clients.


💡 Quick Tip: Distributing your money across a range of assets — also known as diversification — can be beneficial for long-term investors. When you put your eggs in many baskets, it may be beneficial if a single asset class goes down.

How to Become an Investment Banker

If you’re interested in a career in investment banking, there are a few things to know. In terms of education, a bachelor’s degree is typically a minimum requirement for most investment banker jobs. Though some investment banks may look for candidates that have earned a higher degree of education, such as an MBA or a graduate-level degree in finance.

Aside from education, there are certain skills that may help you be successful as an investment banker. Those include:

•   Ability to perform under pressure

•   Good communication skills

•   Solid marketing skills

•   Firm grasp of financial markets and modeling

•   Strong attention to detail

Depending on your responsibilities, you may also need a securities license. That may include completing one of more of the following licensing exams:

•   Series 7 General Securities Representative Qualification Examination (GS)

•   Series 79 Investment Banking Representatives Exam

•   Series 63 Uniform Securities Agent State Law Exam

Before you can take these exams, you first have to be employed and sponsored by a FINRA-member firm or other self-regulatory organization member.

Taking and passing the Securities Industries Essentials (SIE) Exam could help improve your chances of being hired as an intern or junior employee. That process begins early, with many banks hiring summer interns more than a year ahead of the start of the program.

How Much Do Investment Bankers Make?

Investment bankers generally earn above-average salaries. Even at the entry level, it’s possible to make $100,000 or more, and salaries for top Wall Street bankers can easily range into the millions or tens of millions. But investment banking is one of the hardest jobs on Wall Street. So, if you’re not prepared to routinely work 100-hour weeks or constantly be on-call for your clients, it may not be the job for you.

The Takeaway

Investment bankers work primarily with institutional investors, governments and corporations rather than individual investors. But you can still benefit from the work investment bankers do behind the scenes indirectly.

Investment bankers may work in a variety of roles, such as helping facilitate IPOs, or mergers and acquisitions. It can be a lucrative career path, too, but generally requires a graduate-level education, and additional licensing.

Ready to invest in your goals? It’s easy to get started when you open an investment account with SoFi Invest. You can invest in stocks, exchange-traded funds (ETFs), mutual funds, alternative funds, and more. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).

For a limited time, opening and funding an Active Invest account gives you the opportunity to get up to $1,000 in the stock of your choice.

Photo credit: iStock/fizkes

SoFi Invest®

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

SoFi Invest encompasses two distinct companies, with various products and services offered to investors as described below: Individual customer accounts may be subject to the terms applicable to one or more of these platforms.
1) Automated Investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser (“SoFi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC.
2) Active Investing and brokerage services are provided by SoFi Securities LLC, Member FINRA (www.finra.org)/SIPC(www.sipc.org). Clearing and custody of all securities are provided by APEX Clearing Corporation.
For additional disclosures related to the SoFi Invest platforms described above please visit SoFi.com/legal.
Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Probability of Member receiving $1,000 is a probability of 0.028%.

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federal reserve seal

What Is Monetary Policy?

By | mortgage, Terminology | No Comments

Monetary policy is how a central bank or similar government organization manages the supply of money, interest rates, and overall economic growth.

In the U.S. the central bank is known as the Federal Reserve. The Fed has a dual mandate: first, to maintain stable prices, and second, to promote full employment.

Read on to learn more about monetary policy and the integral role that the Fed plays.

Overview of Fed Monetary Policy

The U.S. Federal Reserve sets the level of the short-term interest rates in the country, which then has an impact on the availability and cost of credit. We’ll discuss how the short-term rates the central bank sets has a direct impact on a key interest rate for banks.

The Fed also has an indirect effect on longer-term interest rates, currency exchange rates, and prices of bonds and stocks, as well as other assets. Through these channels, monetary policy can influence household spending, business investment, production, employment, and inflation.

A country’s economy sometimes experiences inflation, which is when the prices of goods and services overall are rising. The central bank can use monetary policy to tame inflation, mainly by raising interest rates, as it has in 2022 and 2023.

In rare instances, the economy may have been in a period of deflation when overall prices have fallen. Then the central bank typically responds by loosening monetary policy, either by lowering interest rates or using the more extreme measure of buying assets directly. A sharp period of deflation occurred after World War I, as well as during the first several years of the Great Depression.

What Is the Fed Funds Rate?

The Federal Reserve System has a committee, the Federal Open Market Committee (FOMC), which meets several times a year to review key economic factors. The FOMC watches for signs of recession or inflation. It then sets what’s called the federal funds rate — what banks charge one another on an overnight basis.

It may seem counterintuitive that banks would loan money to each other, but here’s why they do. Banks are required to meet the reserve requirement set by the Fed. This is the least amount of cash a bank must have on hand, either in its own vault or in one of the regional Fed banks.

For example, during the housing bubble of 2008, the Fed lowered the federal funds rate to 0.25% to encourage banks to lend. This was part of the Fed’s strategy to mitigate the financial crisis. In contrast to that rate, in 1980, the federal funds rate was 20%, the highest in our nation’s history.

Rates set by the Fed have an impact on the overall financial market. For example, when rates are low, it’s less expensive and easier to borrow, which can boost the market’s liquidity. Overall, when rates are low, the economy grows. When high, it typically retracts.

Recommended: Federal Reserve Interest Rates, Explained

How Monetary Policy Can Affect You

If a bank doesn’t have enough to meet its reserves, it borrows the funds from a bank with excess cash. The lending bank can benefit financially because it would earn interest in the amount of whatever the federal funds rate is that day.

This system helps ensure that each bank has enough cash on hand for its business needs that day, and it also caps that bank’s lending ability because the bank needs to keep a certain amount of cash on hand, rather than lending it out.

Then, banks can decide to set their prime interest rates, or the rates that they charge their best customers — those who are considered low risk. So, if the federal funds rate goes up, your bank may decide to charge a higher interest rate on loans — if it goes down, a lower rate.

Moves made by the Fed can have a significant impact on ordinary people’s personal finances. As the federal funds rate changes, it’s likely that banks’ prime rates will change in response — which in turn affects what consumers are likely to be charged on mortgage loans, car loans, personal loans, credit cards, and so forth.

This can affect consumers who owe money on a variety of loan types, but this is often more the case for people who have short-term variable interest rate loans. As the federal funds rate and the prime interest rates at banks go up or down, so can the monthly loan payment. In addition, a credit card rate could be tied to the prime rate plus a certain percentage.


💡 Quick Tip: Did you know that opening a brokerage account typically doesn’t come with any setup costs? Often, the only requirement to open a brokerage account — aside from providing personal details — is making an initial deposit.

Famous Fed Decisions

If you want information in significant detail, you can see meeting minutes from the Federal Reserve going back to 1936. You can also see the entire history of rate changes since 1954.

An entire book could be written about Federal Reserve policies and the Great Depression — a decade-long, deep economic downturn when production numbers plunged and unemployment figures skyrocketed. It’s been acknowledged that mistakes the Fed made contributed to this economic disaster.

During this time period, the Fed was largely decentralized, and leaders disagreed on how to address the growing economic challenges. Some policies were implemented that unintentionally hurt the economy. The Fed raised interest rates in 1928 and 1929 to limit securities speculation, and economic activity slowed. The Fed made the same error in judgment in 1931, on the brink of the Great Depression.

In 1973, President Richard Nixon stopped using the gold standard to support the U.S. dollar. When inflation rates tripled, the Fed doubled its interest rates and kept increasing them until the rate reached 13% in July 1974. Then, in January 1975, it was significantly dropped to 7.5%.

This monetary policy didn’t effectively address the inflation, and in 1979, then Fed Chairman Paul Volcker raised rates and kept them higher to end inflation. This might have contributed to the country’s recession, but the inflation problem was solved.

Recommended: History of the Federal Reserve

Monetary Policy vs Fiscal Policy

Both monetary policy and fiscal policy are tools government organizations use to manage a nation’s economy. Monetary policy typically refers to the action of central banks, such as changes to interest rates that then affect money supply.

Meanwhile, fiscal policy typically refers to tax and spending by the federal government. In the U.S., fiscal policy is decided by Congress and the presidential administration.

For instance, when the Covid-19 pandemic wrought havoc on the U.S. economy, forcing many businesses to shut down, U.S. fiscal policy generated stimulus packages that included supplemental unemployment benefits, stimulus checks, and small-business loans. These measures were intended to prop up the economy during a difficult time.


💡 Quick Tip: Newbie investors may be tempted to buy into the market based on recent news headlines or other types of hype. That’s rarely a good idea. Making good choices shouldn’t stem from strong emotions, but a solid investment strategy.

The Takeaway

Monetary policies are a key way that central banks try to influence a country’s economy. The main tools that central banks, like the U.S. Federal Reserve use are interest-rate levels and money supply.

On a macroeconomic level, monetary policy can be a powerful, important way to fend off recessions or tame inflationary pressure. On a microeconomic level, the monetary policy interest rates that a central bank sets also affect loans that everyday consumers take from their banks.

Understanding how monetary policy works can help investors gauge the future of economic growth and consequently, the direction of financial markets. Central bank decisions and interest-rate changes have an impact on the prices of bonds, stocks and commodities — all of which can play into investors’ long-term plans.

Ready to invest in your goals? It’s easy to get started when you open an investment account with SoFi Invest. You can invest in stocks, exchange-traded funds (ETFs), mutual funds, alternative funds, and more. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).

For a limited time, opening and funding an Active Invest account gives you the opportunity to get up to $1,000 in the stock of your choice.

SoFi Invest®

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

SoFi Invest encompasses two distinct companies, with various products and services offered to investors as described below: Individual customer accounts may be subject to the terms applicable to one or more of these platforms.
1) Automated Investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser (“SoFi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC.
2) Active Investing and brokerage services are provided by SoFi Securities LLC, Member FINRA (www.finra.org)/SIPC(www.sipc.org). Clearing and custody of all securities are provided by APEX Clearing Corporation.
For additional disclosures related to the SoFi Invest platforms described above please visit SoFi.com/legal.
Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform.

Probability of Member receiving $1,000 is a probability of 0.028%.

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