Money Tips Network

While small businesses are struggling to keep their doors open during the pandemic, some are turning to their insurance policies to help them stay afloat. But there’s one problem. Standard business interruption policies don’t cover COVID-19.

“An exclusion for pandemic-caused losses — Exclusion of Loss Due to Virus or Bacteria — has been incorporated into standard business interruption policies since 2006, following the SARS outbreak,” says Mark Friedlander, the Director of Corporate Communications for the Insurance Information Institute.

This week, we’re looking at reader questions about investing and retirement, including 529s, Roth IRAs and more.

1. When should retirement investments be low-risk?
2. Is passive investing bad?
3. 529 or Roth IRA?
4. How to invest for a down payment
5. Books to read about investing
6. Are collectibles an investment?

Q1: When should retirement investments be low-risk?

When do you think a person should start being safer with their retirement investments?
– Adam

Home equity loans are often promoted by banks and other financial institutions as a great solution to your short-term financial problems. It seems so simple — you use the value of your home to quickly get  money that you can use for whatever it is you’re wanting to do with it. Travel? Paying off other debts? Home improvements? You name it, a home equity loan is pitched as the solution. This is particularly true at the current moment when home equity loan interest rates are at record lows, but before you fill your coffers with a home equity loan, consider the drawbacks and questions you need to ask yourself.

A home equity loan is not devoid of risk

Home equity loans are often presented as creating minimal risk for the person taking out the loan. You simply sign on the dotted line, get a big pile of cash to do whatever it is you’re intending to do, and then you pay it off with a series of relatively small payments over the coming years.

There’s a lot to figure out in your 20s as you transition to independence — but we’d argue that money management is one of your top priorities. The education system doesn’t always do a great job preparing young adults to understand fiscal responsibility (and frankly, without the right teacher, finance can be pretty dull.)

As the COVID-19 pandemic tanks the economy into a recession, it’s more important than ever to be financially aware at an early age. Don’t stress too much — your 20s are all about slip-ups and going back to the drawing board. But in this economy, let’s avoid these eight money mistakes if we can.

In recent weeks, Biden has unveiled a series of proposals to restart the stalled U.S. economy, which has seen a sharp downturn due mainly to the COVID-19 pandemic. More than 30 million people in the United States were collecting unemployment benefits as of the first week of July. The economy added nearly five million jobs in June, but that progress may be short-lived due to the recent surge in COVID-19 cases across the country.

Several factors determine the cost of your auto insurance, including your driving record, credit score, claims history, age, location, years of driving experience, gender and coverage types. While many of these factors are beyond our control, some of them we can influence. Your credit score is one of these.

Compare Affordable Car Insurance Rates

Save money on auto coverage with our simple comparison tool.

If you’re a boater, you know the joys of spending an afternoon out on the water, but you also know the costs that are inherent in the experience. Boating — whether you’re a commercial fisherman or have a family boat — is expensive. Although boat insurance isn’t a requirement in the U.S., it is a great idea to have a policy to cover your investment. Boat insurance can help pay for repairs and liability insurance if necessary.

Farmers has been selling auto insurance to American vehicle owners since 1928, initially to farmers who needed protection for their equipment and machinery but it slowly expanded to include all types of drivers by the mid-20th century. Today, Farmers is the seventh largest auto insurer in the country, offering policies that are known for their tailored coverage options and plethora of discounts. We wanted to see if Farmers is holding its own in a modern and rapidly changing auto insurance industry, so we evaluated the provider using our SimpleScore method that compares customer satisfaction, available discounts, additional coverage, online tools and accessibility.

Compare Affordable Car Insurance Rates

Save money on auto coverage with our simple comparison tool.

In late 2019, a headline in The Hill trumpeted the fact that women made up the majority of the workforce.

What a difference a little more than six months makes. A recent LaborIQ analysis conducted by ThinkWhy noted that, according to the Bureau of Labor Statistics May 2020 numbers, women’s unemployment rate stood at 14.3% versus 11.9% for men.

Why? The COVID-19 pandemic has driven many women out of the workforce through layoffs, furloughs and voluntary departure due to child care duties at home. The headlines have gone from women as a workforce majority power to women who are losing workforce gains.