How can you take action with your new marketing plan?

To have a successful business, you need a well-thought-out marketing plan to promote your products or services. Although making a few social media posts or blasting a few promotional emails may seem simple enough, disjointed marketing efforts not only confuse your target audience, but can ultimately harm your business. This guide will help you create a marketing plan for your business, and outlines all the components necessary to achieve your goals.

What is a marketing plan?

A marketing plan is a strategic road map for how you communicate (online and offline) with your target audience to successfully promote your products or services. Depending on your goal, marketing plans can be extremely basic or highly detailed.

According to Molly Maple Bryant, vice president of marketing at Vibrent Health, a marketing plan is not simply a list of things you want to accomplish. Instead, it should list the outcomes you seek — measurable and contextual, like the pipeline you’re developing, or leads you’re generating — and it should explain the high-level strategies you will use to achieve those outcomes. Developing strategies can be complicated, but they make a major difference in keeping you on track and avoiding diversions, also called scope creep.

“Once you have an agreed-upon plan, you are able to compare any incoming requests against your strategies to determine ‘Yes, this adheres to my strategy so we can add it,’ or ‘No, this sounds good in theory, but it doesn’t adhere to our agreed-upon strategy, so we won’t adjust resources,’” Bryant told us.

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Types of marketing plans

There are several different types of marketing plans you can use based on certain strategies that make sense for your organization. Your business will likely need a combination of the following marketing plans to create an effective, comprehensive marketing strategy:

• Advertising plan
• Branding plan
• Content marketing plan
• Customer acquisition plan
• Direct marketing plan
• Email marketing plan
• Public relation plan
• Print marketing plan
• Reputation management plan
• Retention plan
• Search engine optimization plan
• Social media marketing plan

Tip

Depending on your product positioning, niche marketing plans like influencer marketing or video marketing can be incredibly effective.

Why is it important to have a marketing plan for your business?

A marketing plan is a crucial resource for any small business because it helps you identify the market needs your product or service meets, how your product is different from competitors, and who your product or service is for. Marketing plans also serve as a road map for your sales strategy, branding direction and building your overall business. This is important for successfully conveying your brand messaging to your target audience.

A marketing plan:

Makes your company more effective

The importance of strategic marketing planning is supported by Nielsen’s research, which found that marketers who align their goals with business outcomes and measure success with metrics like lead conversions, cost per lead and return on ad spend are significantly more effective than those only focusing on media metrics such as views or clicks.

Designing a marketing plan for your company is more than just metrics though; it forces you to sit down and do the math about your business goals and how to realistically fulfill them. When you look at your growth outcomes, you can delve further to determine what it will take to get to those numbers.

Bryant offered the following example: “Need $100,000 in revenue? How many sales is that? If 10, what’s your close rate? Let’s say 10 percent from lead to closed deal. Now you have a metric to start with — to get to 10 sales, we need 100 leads. Where will they come from, and what strategies will you use? The plan helps you put it all on paper so you can map out resources and tactics later with a lot of preparation and realism,” said Bryant.

Helps your company focus on goals

When analyzing outcomes and resources, you can save time and avoid scope creep by focusing only on strategies that are relevant to your marketing plan. A marketing plan helps you think realistically about your strategies, gets your stakeholders on the same page and holds your marketing team accountable for their decisions.

“When everyone’s tasks and goals are laid out for the stakeholders and company partners to see, it is much easier for the entire team to feel at ease about reaching sales goals and allowing the marketing team the space and freedom needed to execute work without constant supervision,” said Cassady Dill, digital marketing consultant and owner of Ethos Agency.

Fosters communication 

A marketing plan provides an easy guide for future marketing managers and team members to understand and implement, according to Dill. That is why it is essential to create a plan that will easily be understood by your entire team, executives and outside departments. 

What are the key elements of an effective business marketing plan?

A marketing plan should be customized to fit your business; however, Dill said, all marketing plans contain five essential functions:

• Your business goals
• Key metrics (how you quantify and measure success)
• Strategies (an overview of implementation and how that will achieve goals)
• A plan (the details of execution and the human resources, departments and software that will be involved)
• Reporting (what reports of progress will include and/or look like)

We broke down those five functions into 10 actionable categories to help you create a marketing plan that is unique and effective for your business.

1. Executive summary

The executive summary is a great place to give the reader of your plan an overview of your business’s mission or goals, as well as the marketing strategy you’re looking to employ. An executive summary is often written after you’ve completed the rest of the marketing plan, to ensure it covers all the important elements of your plan. If the executive summary is the only part of your marketing plan that someone reads (which is highly possible), you want to be sure they understand the most crucial details.

2. Mission statement

The mission statement, not to be confused with a vision statement, is a statement that encompasses your company’s values and how they relate to your overall goals as an organization. Here are some good questions to get you thinking:

• What does your company do?
• What’s important to your company?
• What would your company like to do in the future?
• What is your brand identity?
• What’s your company culture?
• How does your company benefit customers, employees and stakeholders?

3. Target markets

Identifying your target market is one of the most important parts of your marketing plan. Without a defined target audience, your marketing expenses will be wasted. Think of it like this: Some people need your service or product but don’t know it exists yet. Who are those people?

Here are some other questions to help you brainstorm your target market:

• What is the demographic of your customers (gender, age, income, education, etc.)?
• What are their needs and interests?
• What’s their psychographic profile (attitudes, philosophies, values, lifestyle,etc.)?
• How do they behave?
• What are some existing products they use?

4. Products and services

In this section, don’t just list what your product or service is. Think critically about what you have to offer your customers and what that value proposition means to them.

• What do you make or provide for customers?
• What are your customers’ needs?
• How does your product or service fulfill customers’ needs?
• What value do you add to your customers’ lives?
• What type of product or service are you offering?

Did You Know?

Marketers that use multiple channels are more competitive and report better outcomes, according to HubSpot’s 2025 State of Marketing Report.

5. Distribution channels

At this point in your report, you should transition your thinking into actual marketing theory and practices. Distribution channels are the avenues you’ll use to reach a prospective customer or business. Think of all current and potential sales channels on which your specific target audience is active. One distribution channel that works great for one organization may be useless to another. For example, one company may host their website for free on a site like HubSpot and solely rely on that as their sales channel, while another company may have a whole team of people using Pinterest to drive sales. [Learn how the best CRM systems can help track your marketing leads based on various distribution channels.]

Examples of sales channels include the following:

• Website(s)
• Retail
• Mobile text message marketing [Learn about the Best Text Message Marketing Services]
• Social media
• Email
• Resellers
• Print (newspapers, magazines, brochures, catalogs, direct mail)
• Broadcast (TV, radio)
• Press releases
• Trade shows, product demonstrations, event marketing

6. Competitive profile

One of the major aspects of your marketing plan is developing your unique selling proposition (USP). A USP is a feature or stance that separates your product or service from competitors. Finding your USP is all about differentiation and distinguishing your company as a sole proprietor of one type of good or service. Conduct a competitive analysis to identify your competitive profile and how you stack up against the competition. It is important to remain unbiased when conducting this analysis.

Here are some ideas to consider:

• What’s your USP?
• Who are your competitors? What do they offer?
• What are the strengths and weaknesses of your competition?
• What needs of the market (or customer) are not being served? What can you do to meet those needs?

Bottom Line

If you are creating your USP for the first time, here are seven surefire strategies to help you stand out from the competition.

7. A pricing strategy

Consider pricing when drafting your marketing plan. Developing the right pricing strategy helps you better market your product. Think about your current and projected finances when developing a long-term marketing strategy that is realistic and beneficial for your business. Here are some key questions to ask yourself about your pricing:

• What are reasonable margins to make a profit and cover production costs?
• Is there a market for products or services at your projected price point?
• Are you willing to sacrifice profit margins in return for a greater market share?
• What are your marketing and distribution costs?

8. Marketing objectives

Consider your objectives when developing a marketing plan. This aspect of your plan should involve specific goals related to market penetration and revenue targets. Be sure to keep your marketing objectives on-brand with your business. Here are some things to consider:

• Sales quotas
• Number of new customers gained
• Customer retention percentages
• Revenue targets
• Market penetration
• Brand awareness
• Website traffic

FYI

Setting SMART (Specific, Measurable, Achievable, Relevant, Time-bound) objectives helps foster a company’s success. Clear metrics allow marketing efforts to guide measurable business outcomes.

9. Action plans

With all of the above items outlined, determine what steps need to be taken to enact your marketing plan. This includes determining the proper steps, setting goals, breaking down responsibilities and establishing an overall timeline.

It’s also important to brainstorm potential roadblocks your business could face and some solutions to overcome them. Your research is useless if you don’t have an actionable plan that can be realistically implemented to carry out your ideas.

10. Financial projections

This last step allows you to establish a realistic marketing budget and better understand your marketing plan from a cost perspective. In addition to setting a budget, consider the overall return on investment as well. Here are some other financial projections to consider:

• Cost of implementation
• Cost to produce product or service
• Existing and projected cash flow
• Projected sales
• Desired profit margin on projected sales

What is a template for creating a successful marketing plan?

The internet is full of useful tools, including paid and free marketing plan templates, to help you build a successful marketing plan.

Whether you are looking for a free template generator to build a new marketing plan or a benchmarking tool to evaluate your current strategies, several great resources are available. Keep in mind that the best marketing plan for your business will be a customized one.

“Ultimately, you should design a marketing plan that best serves the needs of your team as you see fit,” Dill said. “Don’t force yourself into a plan that doesn’t fit your team. Use templates to shorten the workload time, but then adjust it for a more custom plan.”

Here are some tools and templates to get you started:

• Free marketing plan template: business.com has developed a free template that is fully customizable based on the needs of your business. Each section provides in-depth explanations, examples and resources to help you create an impressive marketing plan.
• Smart Insights: In addition to offering marketing plan templates, some companies, like Smart Insights, offer marketing benchmarking templates to help you evaluate your strategy performance. These are accessible with a free Smart Insights membership.
• GERU: Similarly, GERU offers a funnel-planning, profit-prediction and simulation tool to help you assess mock business ideas and simulations. This can help you identify weak points in your marketing strategy that need improvement. Although GERU requires users to sign up for a paid account, you can access a free trial to test it out.

Tip

Use free tools and templates to help create your marketing plan.

What mistakes should you avoid when creating your marketing plan?

When creating an effective marketing plan, you need to avoid falling for common missteps and mistakes. For starters, failing to identify any of the 10 actionable categories above is an obvious mistake.

Here are some other key mistakes to avoid:

• Setting unrealistic budgets: Underestimating the costs of marketing activities or setting an unrealistic budget can limit your ability to execute your plan effectively. Marketing can be expensive, so it’s important to fully understand the estimated cost and budget before building a marketing strategy that you can’t afford.
• Focusing on quantity over quality: “More” doesn’t always mean “better” if you are posting on irrelevant marketing channels or your efforts are bringing in unqualified leads. Prioritizing the quantity of marketing activities over their quality can lead to superficial engagement and a lack of meaningful results.
• Not testing campaigns: Launching large campaigns without testing can lead to wasted resources if the messaging or tactics don’t resonate as expected. Test out your new campaigns to ensure they achieve your intended goal.
• Ignoring customer feedback: You may be tempted to ignore negative feedback, but disregarding customer comments and failing to address their concerns can lead to negative perceptions of your brand. Instead, use customer feedback to improve your product and marketing efforts.
• Overpromising and underdelivering: Setting unrealistic expectations in your marketing messages that your products or services can’t fulfill can damage your brand’s reputation.
• Ignoring seasonality and trends: Failing to account for seasonal trends and market changes can result in missed opportunities for timely marketing efforts.
• Not reviewing and updating your plan: A rigid marketing plan that doesn’t allow for adjustments in response to market feedback and changing conditions can hinder your success. A marketing plan should be a living document that is regularly reviewed and updated to reflect changes in the market and your business’s goals.

Avoiding these mistakes and missteps can help you create a more effective and successful marketing plan that drives results for your business.

How can you take action with your new marketing plan?

Before you dive into marketing plan templates, it’s important to understand how to think about a marketing plan.

A good marketing plan targets who your buyers are, establishes the service or product you are offering, and determines your unique selling proposition. From here, you will tackle the marketing planning process and develop the best way to get your product in front of buyers who want your product or service.

Dill created a simple four-step process for how small businesses can take action with creating a marketing plan.

1. The first step is to hold a marketing meeting with all the marketing team and executives or stakeholders. This gives them time to offer questions, concerns and criticisms you haven’t thought of so you can go back to the board room and revise your strategy or plan.
2. Next, add a timeline to all your tasks and assign team members and all the help you’ll need to execute that plan.
3. Once your plan is in action, hold weekly check-ins in person or by email to keep everyone on track.
4. Share a weekly progress report with all parties involved and execs to ensure you are moving in the right direction.

In addition to drafting your own plan, you can work with a digital marketing agency or use internet marketing and pay-per-click management services to leverage your online presence.

Once you’ve established a general road map, update it annually. Developing an evolving marketing plan sets your business up for continued success because it allows you to prepare for the unexpected and establish a connection between your brand and your audience.

Thinking about selling your house? To get the best price, you need your home to stand out. Making the right updates can greatly increase its attraction to buyers. In this guide, we will look at ten important strategies to improve your home for a successful sale. From boosting curb appeal to adding smart home features, these tips will attract buyers and raise the value of your property. Let’s get into the details!

10 Key Strategies to Enhance Your Home for Sale

• Focus on improving curb appeal. This will help attract prospective buyers.
• Modernize the kitchen. It is a key area for many home buyers.
• Give the interiors a fresh coat of paint. This offers a quick change.
• Update lighting fixtures. This can create a modern feel.
• Refinish hardwood floors to add value to your home.
• Revamp bathrooms for a fresh look.
• Make improvements to energy efficiency. This attracts eco-conscious buyers.
• Declutter and organize spaces. This shows the home’s full potential.
• Use professional staging to highlight the home’s best features.
• Invest in smart home features for more appeal and functionality.

1. Prioritize Curb Appeal Upgrades

Creating a warm and welcoming outside look is important for making your home more appealing. Begin by cutting back bushes, adding bright planters, and keeping your lawn in good shape. A fresh coat of paint on the front door and shutters can make a big difference. You can also upgrade your mailbox and house numbers for a small cost to boost the overall appearance. Keep in mind that the first impression is key for how others feel about your home. These simple changes can change how people see the value of your property.

2. Modernize the Kitchen Space

Upgrading your kitchen can really help sell your home. You can modernize it by changing old fixtures, adding a fresh coat of paint, and thinking about energy-efficient appliances. This way, you can attract prospective buyers. A stylish and useful kitchen will make a lasting first impression and increase the value of your home.

3. Refresh the Interior with Paint

Choosing the right paint colors can change a space. It can make it look more inviting to buyers. Neutral colors like soft greys and warm beiges allow buyers to imagine their own style. New paint gives rooms a clean and modern look. It also hides any old scuffs or marks, showing that the property is well taken care of. Making sure all the colors in the house work well together can also make the space feel bigger and more connected. This boosts the overall charm of the home.

4. Update Lighting Fixtures

• Upgrade your home’s lighting fixtures to unlock its potential.
• Modern options can improve the feel of your space while matching your décor.
• Brighten up dark areas and show off important features. This creates a warm atmosphere that appeals to potential buyers.
• Choosing energy-efficient lights can attract buyers who care about the environment and increase the value of your home.
• New fixtures will not just look good; they show that you care about keeping your home well-maintained.
• Use stylish lighting updates to present your home in the best way possible.

5. Refinish Hardwood Floors

Refinishing hardwood floors can greatly improve the look of your home. This change can impress potential buyers. It also adds a bit of elegance and can boost the value of your property. By updating your floors, you enhance the visual appeal and create a lasting impression. Many buyers desire hardwood floors, making this a smart choice to gain more attention for your listing. Upgrade your floors to display the beauty and warmth of your space.

6. Revamp the Bathroom

Revamping the bathroom is important when selling a house. Prospective buyers really like updated bathrooms. A fresh and modern bathroom can boost the appeal and value of your home. You can make small changes like adding new fixtures, a fresh coat of paint, and updated accessories to create a big impact. Making the bathroom feel like a spa can help make a lasting first impression on potential buyers. Revamping your bathroom is a good investment with a high return in selling your home.

7. Enhance Energy Efficiency

Consider making your home more energy-efficient. You can do this by upgrading insulation, sealing drafts, and installing energy-efficient windows and appliances. These changes can attract eco-friendly buyers. They will also help you save on utility bills, which can make your property more appealing. Buyers like homes that have lower energy costs and a smaller carbon footprint. This makes energy efficiency a smart investment. It can help your home stand out in a tough market. Focusing on energy efficiency upgrades can have good financial and environmental effects on your home’s appeal.

8. Declutter and Organize Rooms

Keeping your space clean is important to attract potential buyers. Removing clutter and organizing each room can make the area look bigger and more welcoming. Taking out personal items and extra furniture helps buyers imagine their own things in the house. Think about using neutral colors and creating a smooth flow from room to room. When spaces are organized, they not only show the property’s potential but also give a calm feeling to guests, which boosts the overall charm of your home.

9. Stage Your Home Professionally

Highlight your property’s charm by getting help from a professional stager. Their design skills can make your spaces more appealing to potential buyers. By carefully placing furniture and decorations, they can emphasize the best parts of your home and downplay any flaws. Professional staging not only makes your home look better, but it also shows off what each room can really do. In the end, this investment can help your home sale happen faster and be more successful.

10. Invest in Smart Home Features

Investing in smart home features can make your property more attractive to home buyers who like technology. Adding smart thermostats, lighting systems, security cameras, and voice assistants can improve how well your home works and how modern it looks. These features provide convenience and show the home’s innovative style, which could help you sell it for a higher price. Smart home technologies keep up with current market trends, appealing to many prospective buyers who want a modern and efficient place to live.

Maximizing Your Investment

Cost-effective updates that pay off can really boost the value of your home. If you time your upgrades based on the current market, you can make the most of your investment. Knowing the local market helps you make smart, small changes for a higher sale price. Look at the size of your home, energy costs, and competitive rates to help with your choices. A good realtor can give you advice on the listing price and what financial offers to expect. This can lead to a successful house sale.

Cost-Effective Updates That Pay Off

Think about affordable updates to improve curb appeal, like new paint and modern fixtures. These changes can increase your home’s value and attract buyers without spending too much money. Simple updates, such as changing lighting and clearing out clutter, can impress prospective buyers a lot. Focus on smart updates that make your home look better while sticking to a reasonable budget.

Timing Your Upgrades for Market Trends

To get your home ready for sale, it’s important to time your upgrades well. Pay attention to what buyers like right now. This could be energy-saving features, smart home tools, or modern styles. When you update your home to match what the current market wants, you can sell it faster and for a good price. Keep an eye on trends in real estate. This can help you make smart choices that boost the value and attractiveness of your home. Being ahead of the game can make your property stand out.

Preparing for the Market

Before you sell your home, it’s important to get it ready for the market. Think about getting a pre-sale inspection. This helps you find and fix any problems early. Also, knowing your financing choices for home improvements can help you a lot. Make sure any updates you do fit with what buyers want right now. By timing your upgrades well and keeping your home in great shape, you can draw in more buyers and possibly ask for a higher price. Being well-prepared is very important for a successful home sale.

The Importance of a Pre-Sale Home Inspection

A pre-sale home inspection is important for finding problems that might scare off buyers. This step lets sellers fix issues before they list the home. This leads to easier talks and possibly higher offers. By finding hidden problems, sellers can gain trust with prospective buyers and show that they are honest. Fixing issues early can help make the selling process easier and avoid any surprises later. Taking this step shows that the seller cares about a good deal, which can make buyers feel more confident.

Navigating Home Improvement Financing

Understanding home improvement financing is important when you plan to sell your house. Look into different funding options like home equity loans and personal loans. Find out which choice is best for your money situation. Think about how these financing choices can affect the value of your home. Make sure they fit within your budget. Getting advice from highly qualified professionals in real estate and finance can help you make good financial decisions for your home improvement projects.

Marketing Your Upgraded Home

Crafting a good listing description and using social media and virtual tours are important for selling your upgraded home well. A clear description that shows its best features can attract prospective buyers. Using social media for virtual tours offers a better way for people to experience your home, reaching more viewers. Having strong pictures taken by a professional photographer can make your home look more appealing online. These marketing methods are key to sparking interest and making a successful sale.

Crafting a Compelling Listing Description

Crafting a good listing description is very important for getting the attention of prospective buyers. You should show off the unique features of your home and why it is valuable. Use nice language to help buyers imagine living there. It’s also good to include words that help people find your listing online. Share important details like the location, amenities, and recent upgrades. A great description can really help to get more interest and make your property stand out in a crowded market. Use this chance to highlight the best parts of your home and attract interested buyers.

Leveraging Social Media and Virtual Tours

In today’s world, using social media and virtual tours is very important when you want to sell your home. You can use sites like Facebook, Instagram, and YouTube to show off your property with pretty pictures and virtual tours. Virtual tours let potential buyers look at your home from anywhere. This makes it easier and faster to sell. By talking to potential buyers on social media, you can create interest and draw in more people to see your listing.

Conclusion

Maximize what your home can offer with some smart upgrades. This can help attract prospective buyers. Start by improving curb appeal. You can also modernize important areas in your home. Highlight energy efficiency and consider home staging to make a great impression. Keep up with local market trends and invest in updates that give you good value for your money. Write a strong listing description. Using social media for marketing can also help you sell your home better. Remember, presentation is key when selling your home.

Frequently Asked Questions

What are the top improvements that increase home value?

Improve the value of your home by making it more attractive from the outside. Work on curb appeal upgrades, modernize the kitchen, and refresh the indoor spaces with a new coat of paint. Look into updating lighting fixtures, too. These important changes can greatly boost the market value of your home.

How much can you spend without running out of money? The 4% rule is a popular rule of thumb, but you can do better. Here are guidelines for finding your personalized spending rate.

You’ve worked hard to save for retirement, and now you’re ready to turn your savings into a paycheck. But how much can you afford to withdraw from savings and spend? If you spend too much, you risk being left with a shortfall later in retirement. But if you spend too little, you may not enjoy the retirement you envisioned.

How the 4% retirement rule works

One frequently used rule of thumb for retirement spending is known as the 4% rule. It’s relatively simple: You add up all of your investments and withdraw 4% of that total during your first year of retirement. In subsequent years, you adjust the dollar amount you withdraw to account for inflation. By following this formula, you should have a very high probability of not outliving your money during a 30-year retirement, according to the rule.

For example, let’s say your investment portfolio at retirement totals $1 million. You would withdraw $40,000 in your first year of retirement. If the cost of living rises 2.5% that year, you would give yourself a 2.5% raise the following year, withdrawing $41,000, and so on for the next 30 years.

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The 4% rule assumes you withdraw the same amount from your portfolio every year, adjusted for inflation

While the 4% rule is a reasonable place to start, it doesn’t fit every investor’s situation. A few caveats:

• It’s a rigid rule. The 4% rule assumes you increase your spending every year by the rate of inflation—not on how your portfolio performed—which can be a challenge for some investors. It also assumes you never have years where you spend more, or less, than the inflation increase. This isn’t how most people spend in retirement. Expenses may change from one year to the next, and the amount you spend may change throughout retirement.
• It applies to a specific portfolio composition. The rule applies to a hypothetical portfolio invested 50% in stocks and 50% in bonds. Your actual portfolio composition may differ, and you may change your investments over time during your retirement. We generally suggest that you diversify your portfolio across a wide range of asset classes and types of stocks and bonds, and that you reduce your exposure to stocks as you transition through retirement.
• It uses historical market returns. Analysis by Schwab Asset Management projects that market returns for stocks and bonds over the next decade are likely to be below long-term historical averages. Using historical market returns to calculate a sustainable withdrawal rate could result in a withdrawal rate that is too high.
• It assumes a 30-year time horizon. Depending on your age, 30 years may not be needed or likely. According to Social Security Administration (SSA) estimates, the average remaining life expectancy of people turning 65 today is less than 30 years. We believe that retirees should plan for a long retirement. The risk of running out of money is an important risk to manage. But, if you’re already retired or older than 65, your planning time horizon may be different. The 4% rule, in other words, may not suit your situation.
• It includes a very high level of confidence that your portfolio will last for a 30-year period. The rule uses a very high likelihood (close to 100%, in historical scenarios) that the portfolio would have lasted for a 30-year time period. In other words, it assumes that in nearly every scenario the hypothetical portfolio would not have ended with a negative balance. This may sound great in theory, but it means that you have to spend less in retirement to achieve that level of safety. By staying flexible and revisiting your spending rate annually, you may not need to target such a high confidence level.
• It doesn’t include taxes or investment fees. The rule guides how much to withdraw from your portfolio each year and assumes that taxes or fees, if any, are an expense that you pay out of the money withdrawn. If you withdraw $40,000, and have $5,000 in taxes and fees at year-end, that’s paid from the $40,000 withdrawn.

Beyond the 4% rule

However you slice it, the biggest mistake you can make with the 4% rule is thinking you have to follow it to the letter. It can be used as a starting point—and a basic guideline to help you save for retirement. If you want $40,000 from your portfolio in the first year of a 30-year retirement, increasing annually with inflation, with high confidence your savings will last, using the 4% rule would require you to have $1 million dollars in retirement. But after that, we suggest adopting a personalized spending rate, based on your situation, investments, and risk tolerance, and then regularly updating it. Further, our research suggests that, on average, spending decreases in retirement. It doesn’t stay constant (adjusted for inflation) as suggested by the 4% rule.

How do you determine your personalized spending rate? Start by asking yourself these questions:

1. How long do you want to plan for?

Obviously you don’t know exactly how long you’ll live, and it’s not a question that many people want to ponder too deeply. But to get a general idea, you should carefully consider your health and life expectancy, using data from the Social Security Administration and your family history. Also consider your tolerance for managing the risk of outliving your assets, access to other resources if you draw down your portfolio (for example, Social Security, a pension, or annuities), and other factors. This online calculator can help you determine your planning horizon.

2. How will you invest your portfolio? 

Stocks in retirement portfolios provide potential for future growth, to help support spending needs later in retirement. Cash and bonds, on the other hand, can add stability and can be used to fund spending needs early in retirement. Each investment serves its own role, so a good mix of all three—stocks, bonds and cash—is important.

We find that asset allocation has a relatively small impact on your first-year sustainable withdrawal amount, unless you have a very conservative allocation and a long retirement period. However, asset allocation can have a significant impact on the portfolio’s ending asset balance. In other words, a more aggressive asset allocation may have the potential to grow more over time. The downside is that the “bad” years can be relatively worse than with a more conservative allocation.

Asset allocation can have a big impact on a portfolio’s ending balance

Assumes a constant asset allocation, a 75% confidence level, and withdrawals growing by a constant 2.37% over 30 years. Assumes a starting balance of $1 million. Confidence level is defined as the number of times the portfolio ended with a balance greater than zero. See the disclosures below for a summary of the Conservative, Moderately Conservative, Moderate, and Moderately Aggressive asset allocations and return assumptions. The example is hypothetical and provided for illustrative purposes only. It is not intended to represent a specific investment product, and the example does not reflect the effects of taxes or fees. 

Remember, choosing an appropriate mix of investments may not be just a mathematical decision. Research shows that the pain of losses exceeds the pleasure from gains, and this feeling can be amplified in retirement. Picking an allocation you’re comfortable with, especially in the event of a bear market, not just the one with the greatest possibility to increase the potential ending asset balance, is important.

Overall, we find that the relative downside risk is small across different asset allocations, further illustrating the conservativeness of the rule.

3. How confident do you want to be that your money will last?

Think of a confidence level as the percentage of times in which the hypothetical portfolio did not run out of money, based on a variety of assumptions and projections regarding potential future market performance. For example, a 90% confidence level means that after projecting 1,000 scenarios using varying returns for stocks and bonds, 900 of the hypothetical portfolios were left with money at the end of the designated time period—anywhere from one cent to an amount more than the portfolio started with.

We think aiming for a 75% to 90% confidence level is appropriate for most people, and sets a more comfortable spending limit, if you’re able to remain flexible and adjust if needed. Targeting a 90% confidence level means you will be spending less in retirement, with the trade-off that you are less likely to run out of money. If you regularly revisit your plan and are flexible if conditions change, 75% provides a reasonable confidence level between overspending and underspending.

4. Will you make changes if conditions change?

This is the most important issue, and one that trumps all of the issues above. The 4% rule, as we mentioned, is a rigid guideline, which assumes you won’t make adjustments to spending or your investments as conditions change. You aren’t a math formula, and neither is your retirement spending. If you make simple changes during market downturns, like lowering your spending on a vacation or reducing or cutting expenses you don’t need, you can increase the likelihood that your money will last.

Putting it all together

After you’ve answered the above questions, you have a few options.

The table below shows our calculations, to give you an estimate of a sustainable initial withdrawal rate. Note that the table shows what you’d withdraw from your portfolio this year only. You would increase the amount by inflation each year thereafter—or ideally, re-review your spending plan based on the performance of your portfolio. (We suggest discussing a comprehensive retirement plan with a financial advisor who can help you tailor your personalized withdrawal strategy. Then update that plan regularly.)

We assume that investors want the highest reasonable withdrawal rate, but not so high that your retirement funds will run short. In the table, we’ve highlighted the maximum and minimum suggested first-year sustainable withdrawal rates based on different time horizons. Then, we matched those time horizons with a general suggested asset allocation mix for that time period.

For example, if you are planning on needing retirement withdrawals for 20 years, we suggest a moderately conservative asset allocation and an initial withdrawal rate between 5.3% and 5.9%.

However, you may want to leave a legacy or would feel more confident with more money in the account to cushion against unexpected expenses. In such cases, you may prefer choosing a higher confidence level (90% vs. 75%) and a lower annual withdrawal amount (closer to 5.3%). The decision is a trade-off between spending more or potentially having a higher ending balance, but this is a decision only you can make based on your preferences and goals.

The table is based on projections using future 10-year projected portfolio returns and volatility, updated annually by Schwab Asset Management. The same annually updated projected returns are used in retirement saving and spending planning tools and calculators at Schwab.

Choose a withdrawal rate based on your time horizon, allocation, and confidence level

This table uses Schwab Asset Management 2026 10-year long-term return estimates and volatility for large-cap stocks, mid/small-cap stocks, international stocks, bonds and cash investments. Schwab Asset Management updates its return estimates annually, and withdrawal rates are updated accordingly. See the disclosures below for a summary of the Conservative, Moderately Conservative, Moderate, and Moderately Aggressive asset allocations. The Moderately Aggressive allocation is not our suggested asset allocation for any of the time horizons we use in the example. The example is hypothetical and provided for illustrative purposes only. It is not intended to represent a specific investment product and the example does not reflect the effects of taxes or fees. Past performance is no guarantee of future results.

Again, these spending rates assume that you will follow that spending rule throughout the rest of your retirement and not make future changes in your spending plan. In reality, we suggest you review your spending rate at least annually.

Planning time horizon	Asset allocation	Initial withdrawal rate (for a 75% to 90% confidence level)
30-years	Moderate	4.2% to 4.8%
20-years	Moderately Conservative	5.8% to 6.3%
10-years	Conservative	10.6% to 10.9%

Here are some additional items to keep in mind:

• If you are regularly spending above the rate indicated by the 75% confidence level (as shown in the first table), we suggest spending less.
• If you’re subject to required minimum distributions, consider those as part of your withdrawal amount.
• Be sure to factor in Social Security benefits, a pension, annuity income, or other non-portfolio income streams when determining your annual spending. This analysis estimates the amount you can withdraw from your investable portfolio based on your time horizon and desired confidence, not total spending using all sources of income. For example, if you need $50,000 annually but receive $10,000 from Social Security, you don’t need to withdraw the whole $50,000 from your portfolio—just the $40,000 difference.
• Rather than just interest and dividends, a balanced portfolio should also generate capital gains. We suggest using all sources of portfolio income to support spending. Investing primarily for interest and dividends may inadvertently skew your portfolio away from your desired asset allocation and may not deliver the combination of stability and growth required to help your portfolio last. 
• The projections above and spending rates are before asset management fees, if any, or taxes. Pay those from the gross amount after taking withdrawals.

Stay flexible—nothing ever goes exactly as planned

Our analysis—as well as the original 4% rule—assumes that you increase your spending amount by the rate of inflation each year regardless of market conditions. However, life isn’t so predictable. Remember, stay flexible, and evaluate your plan annually or when significant life events occur. If the stock market performs poorly, you may not be comfortable increasing your spending at all. If the market does well, you may be more inclined to spend more on some “nice to haves,” medical expenses, or on leaving a legacy.

Bottom line

The transition from saving to spending from your portfolio can be difficult. There will never be a single “right” answer to how much you can withdraw from your portfolio in retirement. What’s important is to have a plan and a general guideline for spending—and then monitor and adjust, based on your circumstances, as necessary. The goal, after all, isn’t to worry about complicated calculations about spending. It’s to enjoy your retirement.

The ultimate productivity hack is saying no.

Not doing something will always be faster than doing it. This statement reminds me of the old computer programming saying, “Remember that there is no code faster than no code.”

The same philosophy applies in other areas of life. For example, there is no meeting that goes faster than not having a meeting at all.

This is not to say you should never attend another meeting, but the truth is that we say yes to many things we don’t actually want to do. There are many meetings held that don’t need to be held. There is a lot of code written that could be deleted.

How often do people ask you to do something and you just reply, “Sure thing.” Three days later, you’re overwhelmed by how much is on your to-do list. We become frustrated by our obligations even though we were the ones who said yes to them in the first place.

It’s worth asking if things are necessary. Many of them are not, and a simple “no” will be more productive than whatever work the most efficient person can muster.

But if the benefits of saying no are so obvious, then why do we say yes so often?

Why We Say Yes

We agree to many requests not because we want to do them, but because we don’t want to be seen as rude, arrogant, or unhelpful. Often, you have to consider saying no to someone you will interact with again in the future—your co-worker, your spouse, your family and friends.

Saying no to these people can be particularly difficult because we like them and want to support them. (Not to mention, we often need their help too.) Collaborating with others is an important element of life. The thought of straining the relationship outweighs the commitment of our time and energy.

For this reason, it can be helpful to be gracious in your response. Do whatever favors you can, and be warm-hearted and direct when you have to say no.

But even after we have accounted for these social considerations, many of us still seem to do a poor job of managing the tradeoff between yes and no. We find ourselves over-committed to things that don’t meaningfully improve or support those around us, and certainly don’t improve our own lives.

Perhaps one issue is how we think about the meaning of yes and no.

The Difference Between Yes and No

The words “yes” and “no” get used in comparison to each other so often that it feels like they carry equal weight in conversation. In reality, they are not just opposite in meaning, but of entirely different magnitudes in commitment.

When you say no, you are only saying no to one option. When you say yes, you are saying no to every other option.

I like how the economist Tim Harford put it, “Every time we say yes to a request, we are also saying no to anything else we might accomplish with the time.” Once you have committed to something, you have already decided how that future block of time will be spent.

In other words, saying no saves you time in the future. Saying yes costs you time in the future. No is a form of time credit. You retain the ability to spend your future time however you want. Yes is a form of time debt. You have to pay back your commitment at some point.

No is a decision. Yes is a responsibility.

The Role of No

Saying no is sometimes seen as a luxury that only those in power can afford. And it is true: turning down opportunities is easier when you can fall back on the safety net provided by power, money, and authority. But it is also true that saying no is not merely a privilege reserved for the successful among us. It is also a strategy that can help you become successful.

Saying no is an important skill to develop at any stage of your career because it retains the most important asset in life: your time. As the investor Pedro Sorrentino put it, “If you don’t guard your time, people will steal it from you.”

You need to say no to whatever isn’t leading you toward your goals. You need to say no to distractions. As one reader told me, “If you broaden the definition as to how you apply no, it actually is the only productivity hack (as you ultimately say no to any distraction in order to be productive).”

Nobody embodied this idea better than Steve Jobs, who said, “People think focus means saying yes to the thing you’ve got to focus on. But that’s not what it means at all. It means saying no to the hundred other good ideas that there are. You have to pick carefully.”

There is an important balance to strike here. Saying no doesn’t mean you’ll never do anything interesting or innovative or spontaneous. It just means that you say yes in a focused way. Once you have knocked out the distractions, it can make sense to say yes to any opportunity that could potentially move you in the right direction. You may have to try many things to discover what works and what you enjoy. This period of exploration can be particularly important at the beginning of a project, job, or career.

Upgrading Your No

Over time, as you continue to improve and succeed, your strategy needs to change.

The opportunity cost of your time increases as you become more successful. At first, you just eliminate the obvious distractions and explore the rest. As your skills improve and you learn to separate what works from what doesn’t, you have to continually increase your threshold for saying yes.

You still need to say no to distractions, but you also need to learn to say no to opportunities that were previously good uses of time, so you can make space for great uses of time. It’s a good problem to have, but it can be a tough skill to master.

In other words, you have to upgrade your “no’s” over time.

Upgrading your no doesn’t mean you’ll never say yes. It just means you default to saying no and only say yes when it really makes sense. To quote the investor Brent Beshore, “Saying no is so powerful because it preserves the opportunity to say yes.”

The general trend seems to be something like this: If you can learn to say no to bad distractions, then eventually you’ll earn the right to say no to good opportunities.

How to Say No

Most of us are probably too quick to say yes and too slow to say no. It’s worth asking yourself where you fall on that spectrum.

If you have trouble saying no, you may find the following strategy proposed by Tim Harford, the British economist I mentioned earlier, to be helpful. He writes, “One trick is to ask, “If I had to do this today, would I agree to it?” It’s not a bad rule of thumb, since any future commitment, no matter how far away it might be, will eventually become an imminent problem.”

If an opportunity is exciting enough to drop whatever you’re doing right now, then it’s a yes. If it’s not, then perhaps you should think twice.

This is similar to the well-known “Hell Yeah or No” method from Derek Sivers. If someone asks you to do something and your first reaction is “Hell Yeah!”, then do it. If it doesn’t excite you, then say no.

It’s impossible to remember to ask yourself these questions each time you face a decision, but it’s still a useful exercise to revisit from time to time. Saying no can be difficult, but it is often easier than the alternative. As writer Mike Dariano has pointed out, “It’s easier to avoid commitments than get out of commitments. Saying no keeps you toward the easier end of this spectrum.”

What is true about health is also true about productivity: an ounce of prevention is worth a pound of cure.

The Power of No

More effort is wasted doing things that don’t matter than is wasted doing things inefficiently. And if that is the case, elimination is a more useful skill than optimization.

I am reminded of the famous Peter Drucker quote, “There is nothing so useless as doing efficiently that which should not be done at all.”

In today’s world, feeling secure at home isn’t just a priority. It’s a fundamental requirement. But here’s the unsettling truth: in the U.S., a home is broken into approximately every 25 seconds, according to FBI data. Nevertheless the alarming statistics, there is good news: we now have more control over the security of our homes than ever before. With smart home security benefits, you can preservation your family, your property, and your possessions in the best possible way.

Imagine waking up and telling your phone to start the coffee, dim the lights, or adjust the heat; smart home systems make that kind of accommodation a reality. But accommodation isn’t the only advantage of these systems. The security features of smart home automation are what virtually make it powerful. The advantages of a home security system that connects to a smart hub are far greater than those of an exponential alarm system.

With these systems, you can instigation in on your home from somewhere, set up automatic fire alerts, and create a secure environment by making it harder for intruders to go incautious. Let’s take a closer look at how these systems work and why they are changing the game when it comes to defending our homes safely.

1. Protecting Your Home from Intruders

Preventing burglaries is a primary motivation for implementing smart home security systems. It has previously been demonstrated that the installation of cameras, motion detectors, and alarms deters criminal activity. Notwithstanding, it can be antecedently enhanced with a smart security system.

For example, smart cameras let you stream live events from your computer or phone in addition to recording video. So even if you’re miles away, you’ll get an immediate alert the moment someone offers to break in. Plus, you’ll get immediate alerts sent right to your phone or smart device, so you can respond speedily if something’s up. When your alarm picks up on a break-in, it can instantly contact local law enforcement, increasing the chances of hearing the intruder before they get away.

The capability to distantly lock or unlock doors is an additional profitability feature. Using your phone, you can speedily lock the front door if you realise you forgot to do so while at work. In order to allocate an additional degree of security and comfort, definitive systems even let you install “smart locks” that will unconsciously lock doors when you leave.Also read: How To Void A Check? A Step-By-Step Guide (In The Right Way)

2. Automating Fire and Carbon Monoxide Safety

The scope of security extends beyond burglaries. One often overlooked advantage of a smart home system is its ability to catch signs of fire or carbon monoxide early, conceivably saving lives before danger intensifies. Many smart home security systems let you link smoke and carbon monoxide detectors, adding a corresponding layer of protection for your household. Even if you’re not home, your system can instantly ping your phone if it detects smoke or carbon monoxide, giving you an important heads-up. That way, you are able to jump into action or get help on the way before the circumstance spirals out of control.

To inform you in the event of a fire, definitive systems can also be connected to astute lights or thermostats. For instance, if there’s a fire and you need to escape, your system can unconsciously light up the path by turning on your home’s lights when the smoke alarm sounds, guiding your family cautiously out. By automating these systems, safety procedures are guaranteed to be followed even in the event that you are unable to react or are unsettled.

3. Remote Monitoring for Ultimate Peace of Mind

Smart home automation lets you instigation in on your home no matter where you are, giving you peace of mind when you’re away. Actual time home monitoring is possible from any location, whether you’re on vacation, at work, or just running errands.

A mobile app can be used to penetrate security cameras, providing you with an actual-time view of your property at all times. Even preferable, you can move the camera to integument different parts of your house or zoom in. You can see and talk to someone at your front door with an astute doorbell camera, whether or not you are there. When you are predicting a package or need to know who’s at the door before opening it, this feature can be concretely useful.

Another necessary component of supporting a relationship with your family is remote monitoring. You can easily pop in virtually during the day to see how your kids or vulnerable loved ones are doing, offering reassurance without being obtrusive. Additionally, a lot of systems let you create virtual “zones” where you can compose particular monitoring rules, like sending out alerts when someone enters or leaves a definitive area. By doing this, you can preserve the security of your house unaccompanied by having to check on it repeatedly.Also read: What Is Cognition’s New AI-Software “Devin AI” All About? (Complete Guide)

4. Automating Your Home’s Security Features

The consolidated coalescence of all your security characteristics into a single system is one of the most astute features of smart home automation. Instead of juggling several gadgets, you can link your lights, door locks, alarms, and cameras to one central smart hub. That way, you can remain on top of your home’s security without switching between apps or devices; it is all correct there in one place.

This coalescence also makes intelligent automation possible. For example, you can program your lights to turn on and off at distinct times to create the illusion that someone is home even when you’re not. This may serve as a discouragement to burglars searching for unoccupied houses. Smart thermostats can automatically coordinate the temperature when you are not home, ensuring energy is conserved. This way, your home stays convenient when you return, without wasting power while you are elsewhere. Most smart security systems also offer remote diagnostics and customer support, which makes troubleshooting any issues simple if you are ever unsure if your system is functioning as it should.

5. Energy Savings with Security System Integration

The ability to lower your bills and save energy is another unannounced benefit of smart home security systems. By connecting your security system with smart devices like lights, blinds, and thermostats, you can construct routines that run automatically. This not only illuminates daily life but also helps cut down on diminutive energy. Your system can, for instance, personally turn off lights when no one is home or convert your thermostat according to your day-to-day schedule.

Notwithstanding these energy-saving features enhance the overall smart home experimentation, they might not have a direct effect on your home’s security. Furthermore, they help you live a more eco-friendly lifestyle by lowering the total energy consumption in your house.

6. Improving Communication with Neighbours and Authorities

A lot of smart home systems also come with tools that vindication you to communicate better with your neighbours and local government. Some systems let you create programs similar to neighbourhood watches, in which you and your neighbours can commutation alerts regarding questionable events or activities in the neighbourhood.

You can alert your neighbours to be on guard, for example, if your camera notices anything strange. In a similar vein, your security system can notify local authorities in the event of an emergency, guaranteeing prompt assistance.Also read: Explained: Most Popular Sanrio Characters Across The World + (Fun Facts!)

Conclusion

The first image that pops into people’s heads when they think of home security is generally a sturdy lock or a blaring alarm. Thanks to the advancement of smart home tech, we’re no longer limited to just deadbolts and alarms now protection can be motivated, intelligent, and personalized. The benefits of smart home security systems are numerous and increase those of traditional systems, ranging from automating fire safety and intercepting burglaries to offering real-time monitoring.

With a smart home security system that links all your devices, you can take monitoring of your home’s safety right from your phone. It not only makes your property more protected, but also gives you the peace of mind that everything’s under watch even when you’re away. As technology continues evolving, home security is stepping into a new epoch, one that’s not just smarter, but seamlessly connected and built for real-world efficiency.

Key takeaways

• Wire transfers, third-party apps, ACH transfers and checks can all move money between banks.
• Wire transfers are fastest but most expensive, while ACH transfers are free but slower.
• Third-party apps like Zelle often balance speed and cost for everyday transfers.
• Your choice depends on how quickly you need the money and what fees you’re willing to pay.

Moving money between banks is something most people need to do at some point. Maybe you’re paying rent to a landlord who banks elsewhere, sending money to family or transferring funds between your own accounts at different institutions.

The good news? You have several options, each with different speeds, costs and convenience levels. Wire transfers can move money in hours but cost around $25. ACH transfers take longer but are typically free. Third-party apps like Zelle sit somewhere in the middle.

What are bank-to-bank transfers?

A bank-to-bank transfer moves funds from an account at one financial institution to another. Banks call these “external transfers” since the money leaves their system entirely.

You can typically set up these transfers through your bank’s website, mobile app by phone or at a branch. The process involves providing the recipient’s banking details and specifying how much to send.

What you need to know about your recipient before sending money

You’ll likely be required to input the recipient’s bank routing number and account number, at the very least. For some services, like Zelle, you will only need the person’s phone number or email address. Before clicking send on a transfer, double and triple-check the recipient’s information (even if that recipient is you).

What you need before transferring money

Before sending money, gather the recipient’s information. For most methods, you’ll need their bank routing number and account number. You can find routing numbers on checks or by searching online for “[Bank Name] routing number.”

For services like Zelle, you only need the person’s phone number or email address that’s linked to their bank account.

Double-check all information before hitting send. Bank transfers are hard to reverse once they’re complete.

Factors to consider when choosing a transfer method

Your priorities will determine which transfer method works best for your situation.

• Speed matters most when you’re making time-sensitive payments like rent due today or emergency funds for family. Wire transfers and some third-party apps can move money within hours or minutes.
• Cost matters most when you’re making routine transfers or sending large amounts where percentage-based fees add up. ACH transfers are typically free, making them ideal for non-urgent moves.
• Convenience matters most when you’re transferring money regularly. Having the recipient’s phone number is easier than looking up their routing and account numbers every time.
• Security matters most when you’re sending large amounts or dealing with unfamiliar recipients. Traditional bank channels offer more fraud protection than newer apps.

4 ways to transfer money between banks

1. Wire transfers

A wire transfer is one of the fastest ways to transfer money electronically from one person to another through a bank or a nonbank provider such as Wise (formerly TransferWise).

To send a wire, you’ll need the recipient’s full name, address, bank routing number and account number. Most banks let you set up wires online, by phone or at a branch.

The downside? Cost. Banks charge an average of $25 for outgoing domestic wires, according to Bankrate’s latest fee survey. International wires cost even more, often $40-50 plus currency conversion fees. Wire transfers also can’t be sent on weekends or bank holidays, and they’re nearly impossible to reverse once sent.

2. ACH transfers

Then there are Automated Clearing House (ACH) transfers. These move money through a network that processes billions of transactions annually.

ACH transfers typically take 1-3 business days and are usually free. You can set them up through your bank’s website or app using the recipient’s routing and account numbers.

Many banks now offer same-day ACH for a small fee (usually $5-10), which can get money there within hours rather than days.

The Federal Reserve processes ACH transfers in batches rather than individually, which is why they take longer than wires but cost much less.

3. Third-party companies and mobile apps

Banks aren’t the only option for sending money. PayPal, MoneyGram, Zelle, Venmo, and other third-party companies are also considerations. Transfers can take seconds or a few days, depending on the method selected.

Zelle is built into most major banks’ apps and websites. It can send money in minutes using just a phone number or email address (here’s how). Most transfers are free, and there’s no separate app to download if your bank supports it. Check out our beginner’s guide to using Zelle to learn more.

PayPal works with or without a bank connection. Free bank transfers take 1-3 business days, while instant transfers cost 1.75% of the amount sent.

Venmo (owned by PayPal) is popular for splitting bills and casual payments. It includes social features but has lower transfer limits than some alternatives.

Cash App offers instant transfers for a 1.5% fee or free transfers that take 1-3 business days.

Each service has different limits, fees and features. Zelle typically has the highest daily limits ($2,500-5,000 depending on your bank), while others may limit you to $3,000 per week or less.

4. Write a check

Checks might seem old-fashioned, but they’re still useful for certain situations. You can write a check and mail it, deposit it through mobile banking or deliver it in person. Here’s a guide on how to write a check.

Cashier’s checks offer more security for large amounts since they’re guaranteed by the bank. Money orders work similarly but are available at grocery stores and other locations beyond banks.

Check clearing times vary but typically take 1-2 business days for local banks and up to five days for out-of-state institutions. Banks may place holds on large checks or deposits from new accounts.

What are the benefits of external bank transfers?

External bank transfers allow you to transfer funds between banks or send funds to another person without having to visit a branch or ATM.

• Account optimization: You can keep high-yield savings at online banks while maintaining checking accounts at local branches for easy access.
• Bill paying flexibility: Send money to landlords, contractors or family members regardless of which bank they use.
• Emergency access: Quickly move money when you need funds in a specific account.
• Business needs: Separate personal and business banking while still moving money between accounts as needed.

Compare savings account rates and find the best options for your money with Bankrate’s best high-yield savings accounts.

Transferring money between your own accounts

If you have accounts at multiple banks, you have several options for moving your own money around.

Most banks let you link external accounts for ACH transfers. This process typically involves providing the other bank’s routing and account numbers, then verifying small test deposits. Zelle can work for self-transfers if both banks support it and you use the same phone number or email for both accounts.

Lower-tech options include writing yourself a check or withdrawing cash from one bank to deposit at another, though these methods have obvious limitations for large amounts.

The best transfer method depends on your specific needs, but having the right bank accounts makes any transfer easier. check out Bankrate’s best checking accounts to find the right option for you.

Bottom line

Moving money between banks is easier than ever, whether you need same-day delivery or can wait a few days to save on fees. Wire transfers offer speed for urgent needs, ACH transfers provide free options for routine moves and third-party apps balance convenience with reasonable costs.

With the right approach, you can move money efficiently while minimizing costs and maximizing convenience.

The best strategy is to avoid fees altogether

What Is a Traditional Economy?

When you’re already experiencing financial hardship, getting hit with overdraft fees can be devastating, both emotionally and financially. Even when you aren’t facing hard times, an overdraft fee is a nuisance.

Banks may limit the number of overdraft fees they charge in a single day, but even then, the fee can get quite expensive, particularly for people who overdraft regularly. Frequent overdrafters average around 11 overdraft or insufficient funds fees (NSF), according to a 2020 study from research firm Oliver Wyman, and overdraft and NSF fees generate $17 billion annually for banks.¹

You have options for waiving overdraft fees, though, especially if you don’t routinely overspend your checking account. With a better understanding of when banks charge them, you may be able to avoid future overdraft fees. On the rare occasion that you overspend, knowing how to speak to your bank can reduce or even eliminate overdraft fees.

What Are Overdraft Fees?

Your bank charges an overdraft fee when it pays for a transaction even though you don’t have enough money in your account to cover the transaction. Overdrafts can happen if you write a check or swipe your debit card for more than the amount you have available in your checking account. Having multiple transactions hit your account on the same day can also put you at risk of incurring multiple overdraft fees.

Note

The median overdraft fee of the top 50 banks by market share is $34, according to the Consumer Financial Protection Bureau.²

In some cases, the bank may return the transaction to the merchant and charge you a non-sufficient funds or insufficient funds fee instead of covering the purchase for you and charging an overdraft fee.

How Do Overdraft Fees Work?

Overdraft fees can be quite expensive, costing close to $40 each occurrence, depending on your bank. The fee doesn’t have to come as a surprise. Some banks let you enroll in alerts that will notify you by text, email, or mobile notification if your account is overdrawn. You may also spot the fee when you’re checking your transaction history online or reading through your billing statement. Your online account may note the transaction that triggered the overdraft fee.

Overdraft fees are charged per transaction, which means your bank could hit you with multiple fees on the same day if you have several transactions posted to your account after you’re overdrawn. Depending on the bank, you could end up with nearly $200 in overdraft fees in a single day.³

Note

Your bank may limit the number of overdraft fees you’re charged in a single day, which keeps you from being charged an excessive amount of overdraft fees.

Overdraft Fees by Bank

The majority of banks big and small charge overdraft fees, though the amount and maximum number of fees they charge per day varies.

Bank	Overdraft Fee	Max Fees Per Day
Ally Bank	$0	N/A
Bank of America	$35 on transactions over $1	4
Capital One	$0	N/A
Chase	$34	3
Citi	$34	4
Citizens Bank	$37, and an additional $30 fee on the fifth, eighth, and 11th day an account remains overdrawn	5
Truist	$36	6

How To Get Overdraft Fees Refunded

If you’ve been charged an overdraft fee, you may be able to get it refunded with just a few steps as long as you’re not a repeat offender.

Call Your Bank

Once you notice an overdraft fee has been charged, give your bank a call. You can find the number quickly on the back of your debit card or the bank’s website, or in your mobile app.

Make Your Request

Let the bank know that you’d like to have the overdraft fee waived. You can say something like, “I noticed I was charged an overdraft fee on [date] and I’d like to have it removed.”

It may help to give the bank some background on what led to the overdraft. For instance, your pay was delayed, a bill was processed sooner than you expected, or you’ve been experiencing financial hardship.

Use Your Bank History

If you’ve otherwise been a good bank customer and have avoided overdraft fees so far, bring this up. For instance, you can say, “I’ve been a good customer for several years and overdrafting is not common for me. Is there something you can do?”

Be Polite

Remember, you’re asking the bank to do you a courtesy. Asking nicely goes a long way. Avoid getting angry, even if the customer service rep isn’t budging on waiving the fee.

Tips for Avoiding Overdraft Fees

Banks may be less willing to waive your overdraft fee if you’ve made overspending a habit. There are some ways you can avoid overdraft transactions, saving yourself hundreds of dollars in fees and eliminating the stress of asking for fees to be waived.

• Deposit or transfer funds before the cutoff time: Depositing enough money to cover the pending transactions can prevent you from overdrafting your account.
• Look for a bank that doesn’t charge overdraft fees: They may still process overdraft transactions but won’t charge you a fee for it.
• Sign up for bank balance alerts: These alerts notify you if your account balance drops below a certain amount, which can let you know you need to make a deposit before that day’s deposit cutoff time.
• Sign up for overdraft protection. This feature transfers money from a linked bank account or credit card to prevent overdraft. Some banks still charge a fee for overdraft protection transfers, but this is typically lower than an overdraft fee.

Note

Overdraft transfers from a credit card may be treated as a cash advance, which typically involves paying a cash advance fee and a higher interest rate than you would for purchases. Cash advance transactions don’t have a grace period for avoiding finance charges—interest starts on the transaction date.

Malpractice insurance is a critical policy that all those working in the medical industry should have.

Proving malpractice

Professionals are expected to perform their services properly and with sufficient expertise. Clients and patients assume someone with a professional designation has the knowledge and resources to do the job right. Sometimes, however, a professional, such as a doctor or lawyer, makes an egregious mistake that causes significant harm to a patient or client. That is called malpractice.

When a professional commits malpractice, the patient or client may sue to recover financial compensation to ameliorate some of the harm that has been done. It’s then up to a court to decide if a mistake was made, if it rises to the level of malpractice and, if so, what the penalty should be. Malpractice awards are often hundreds of thousands of dollars, and they can even climb into the millions. Because the stakes are high, malpractice insurance is a necessity.

What is malpractice insurance?

Malpractice insurance is a liability insurance policy for healthcare or legal professionals. When errors happen while executing professional services and the professional is deemed at fault, malpractice insurance pays the penalty so the professional doesn’t have to pay for claims out of their pocket.

Who needs malpractice insurance?

Malpractice insurance is for legal and healthcare professionals.

Malpractice insurance for legal professionals

In the legal profession, malpractice insurance covers mistakes an attorney might have made in handling a client’s case. Typically, only attorneys are covered by malpractice insurance. Law firms, however, may have an umbrella insurance policy that covers all its employees, including paralegals and administrative staff. 

Solo lawyers, however, need their own malpractice insurance policies. “When it comes to legal malpractice insurance, many people don’t realize just how vulnerable attorneys can be to claims of negligence, errors or ethical breaches,” said Stephen Wagner, managing partner and co-founder at Wagner Reese LLP. “For instance, a malpractice lawsuit could spawn if a lawyer misses a critical filing deadline, such as a statute of limitations, causing a client to lose out on their right to pursue financial compensation for their case. Other malpractice issues arise when an attorney provides incorrect legal advice that results in a client suffering financial harm, if the attorney fails to respond to court deadlines which harms a client’s case or if the attorney fails to keep the client advised of the status of a matter.”

Malpractice insurance for healthcare professionals

In healthcare, doctors, surgeons, nurses, physical therapists and specialists can obtain malpractice insurance. Medical malpractice insurance pays claims when patients assert that a healthcare professional hurt them in some way due to negligence or harmful treatment. An example of medical malpractice is if a surgeon operated on a patient while drunk and caused severe harm. 

“If a medical practice is hit with a malpractice claim and they have insurance, the first step is to notify their insurer,” Wagner said. “The insurance company will typically assign an attorney to handle the defense, cover legal fees and, if necessary, negotiate a settlement. If the case goes to trial, the insurer will provide legal representation and pay damages up to the policy limits.”

When a medical practice doesn’t have malpractice coverage, the financial implications can be catastrophic. “Without malpractice insurance, however, the situation becomes far more dire,” Wagner said. “The practice has to pay for its own defense, which can quickly add up to hundreds of thousands of dollars. If they lose the case, they must also pay any settlements or judgments out of pocket. For smaller practices, that financial burden can be enough to force them out of business.” 

Malpractice policies are specific to the industry they cover and have crucial exclusions and terms. It’s critical to read policy documents carefully before buying a policy.

FYI

Other professionals, such as accountants, general contractors and financial advisers, would obtain professional liability insurance instead of malpractice insurance.

Types of malpractice policies

There are two types of malpractice policies. Both cover the same things when your business gets sued; the difference is how that coverage is applied in relation to when the claim is made.

Claims-made malpractice insurance

Claims-made coverage requires the policy to be active when the claim is made. A healthcare provider or attorney who had a lapse in coverage could still add a retroactive date of coverage. 

“A claims-made malpractice policy covers claims only if both the alleged incident and the claim occur while the policy is active,” said Loren Schwartz, a partner at Rouda Feder Tietjen and McGuinn. “If coverage lapses, past incidents won’t be covered unless the attorney purchases ‘tail coverage.’”

Suppose a doctor accidentally had a policy lapse and didn’t have coverage from Oct. 1 through Dec. 31. In that case, they could get a policy starting Jan. 1 with a retroactive coverage date beginning Oct. 1. That would provide the needed coverage for the period when they were uninsured. Retroactive dates require an added premium, but ensuring coverage is in place is often worth it.

A claims-made policy may also have an extended reporting period, such as six months after the policy’s lapse date. The extended reporting period would cover claims made during the policy’s effective period but reported after the policy lapses.

Tip

Legal malpractice insurance is always claims-made instead of per-occurrence.

Per-occurrence malpractice insurance

A per-occurrence policy is more expensive because it allows claims to be made anytime, whether or not the policy is active at the time of the claim, as long as the date that the claim-related activity occurred was during the coverage period. 

If a policy has coverage from Jan. 1, 2025, to Dec. 31, 2025, for example, a claim could be made on April 1, 2027, as long as the incident regarding the claim happened in 2025 during the coverage period.

Patients or clients sometimes do not make claims immediately after an incident because they are unaware of the problem. They may only be informed of an error in practice in a follow-up with another provider, thus creating a malpractice claim. As a result, Schwartz said, it can be worth the extra expense upfront for more extensive coverage. “In legal and medical fields, claims-made policies are more common, but per-occurrence coverage offers long-term security, making it more desirable for professionals wanting broader protection,” he said.

What does malpractice insurance typically cover?

Malpractice insurance covers the mistakes a medical or legal professional may make during regular business operations. Medical claims may have to do with misdiagnosis, surgical errors, medication errors, childbirth-related injuries and other mistakes made by medical professionals. Some Health Insurance Portability and Accountability Act (HIPAA) violations are also covered. 

For lawyers, malpractice insurance usually covers mistakes made while representing a client in a case. Policies may have different definitions of “legal services,” so it is important to read the policy documents carefully to understand your coverage. One policy may include only legal services a client paid for, for example, while another policy may also cover pro bono services.

What malpractice insurance covers	What malpractice insurance doesn’t cover
Defense, expert witness, legal, arbitration and settlement costs	Intentional wrongdoing
Punitive and medical damages	Illegal acts

Malpractice insurance won’t cover claims arising from sexual misconduct or physical abuse. If the claims are determined to be unfounded, however, the insurance will pay for the defense of the claim.

How much does malpractice insurance cost?

Since medical or legal mistakes often lead to settlements in the hundreds of thousands ― if not millions ― of dollars, malpractice insurance tends to be expensive. Malpractice costs vary widely depending on the profession and the type of practice involved. Schwartz said specialties such as neurosurgery, obstetrics and gynecology, orthopedic, and cardiothoracic surgery tend to come with the highest premium price tag. 

“Medical disciplines with the highest malpractice insurance premiums tend to be those with high-risk, high-stakes procedures,” he said. “These fields have higher claim rates and larger settlement amounts due to the potential for life-altering outcomes. On the other hand, lower-risk specialties, such as psychiatry, pathology and family medicine, typically see lower premiums since they involve fewer invasive procedures and lower malpractice claim frequencies.”

Medical malpractice insurance costs

Across medical specialties, annual malpractice insurance premiums average between $4,000 and $12,000, but that varies widely from state to state and across specialties. The range of costs reflects the risk each profession represents. Nurses, for example, are less likely to be sued than the doctor who oversees the nurse. Thus, there is less risk. Nurses could still be named in a lawsuit, however, and they aren’t covered by a doctor’s malpractice policy.

Here are a few examples of medical malpractice premiums:

• General practitioners: General practitioners’ policies average around $7,500 per policy year, but they can be more than $50,000 in some locations. 
• Surgeons: Surgeons often pay much more, averaging between $30,000 and $50,000 per year, but some policies exceed $100,000. 
• OB-GYNs: Premiums for obstetricians/gynecologists ― one of the specialties with the most frequent malpractice suits filed ― can be $200,000 or more per year.
• Nurses: Nurses pay less than other medical professionals, with policies that can be lower than $100 per year. 

Legal malpractice insurance costs

Costs for attorneys vary depending on the type of law they practice and whether they’ve had previous claims. On average, legal malpractice insurance costs between $1,200 and $3,500 per year. Attorneys in riskier practice areas pay between $3,000 and $10,000 per year. Risky practice areas include securities, intellectual property, personal injury, and trusts and estates. 

Paralegals may also carry malpractice insurance, although they are less likely to be sued than attorneys.

How much malpractice coverage is enough?

Basic malpractice insurance may not be enough. Remember that claims could result in settlements of millions of dollars. How does a professional determine the right amount of insurance to get? 

First, understand that policies come in various coverage amounts.

• Medical coverage: Smaller medical malpractice insurance policies start with $100,000 to $300,000 in coverage. That may be enough for a nurse or physical therapist, but most doctors need more. A doctor should have a minimum of $1 million in coverage, but even that could be inadequate.
• Legal coverage: The minimum coverage for legal malpractice insurance is around $100,000, but that may not be sufficient. A small law firm may get a malpractice insurance policy with $1 million in coverage. Depending on the number of attorneys in the firm and the area of practice, however, that may not be enough to pay for all claims. The typical maximum limit is $10 million.

To ensure adequate coverage, research the prevailing limits in your area for your profession or specialty. You should have those limits at a minimum. Some professionals will buy even more coverage, but remember that if you have more coverage than anyone else, you become a deep-pocketed target in a lawsuit that names multiple defendants. Some states also cap awards, so you may not need to extend coverage beyond the award limits. 

Still, it can be extremely beneficial to invest in supplemental malpractice coverage, depending on the nature of your practice’s work. Schwartz noted that add-ons, such as cyber liability protection, defense cost and reputation management coverage can serve as vital safeguards for your practice. “These enhanced policies provide a layer of financial and professional security that can mean the difference between a temporary setback and permanent damage to a practice,” Schwartz said. 

Both legal and medical professionals can benefit from investing beyond the most basic malpractice policy, Wagner advised. “Having higher coverage limits in an umbrella policy can be vital in cases where settlements or jury awards exceed minimum policy limits,” he said. “Many policies also include defense cost coverage, which helps pay for legal representation.”

Bottom Line

Talk to others in your profession who have dealt with claims to understand how much coverage you realistically need and the business insurance costs you’ll face.

Where can I purchase malpractice insurance?

You can purchase individual or group policies from a private insurance carrier. For medical professionals, medical risk retention groups can also provide coverage at a discounted rate to those in the group. 

Some employers have a policy that covers an entire entity, such as a hospital or law firm. That type of policy may cover some individual risk, but check with human resources to ensure that you have the coverage you need. Most doctors and specialists will have their own policies to protect their interests as a separate entity from the hospital or medical group they work with. Some lawyers may also have an individual policy covering legal work outside the firm.

When shopping for insurance, compare prices among various providers to ensure that you get the best coverage for the best price. Remember to compare policies apples to apples for each quote you get, and ensure that each one has the same coverage limits. See if a deductible applies and, if so, how much it is.

Proving malpractice

A patient or client can file an insurance claim anytime. Sometimes claims are made out of frustration and vindictiveness. Some are outright fraudulent. To get a settlement or a judgment from the professional or their insurance carrier, the plaintiff must prove malpractice occurred.

• Proving medical malpractice: To prove medical malpractice, the medical plaintiff must demonstrate that the doctor or other medical provider violated the general standard of care of the patient. The standard of care is an industry-approved level of care and protocol. The plaintiff and their attorney must prove a breach of protocol, prove that the error caused physical or emotional injury and provide evidence that the medical professional caused it.
• Proving legal malpractice: For legal malpractice, a plaintiff must prove there was an attorney-client relationship and that the lawyer committed one or more negligent acts that caused damage to the client. Usually, that means proving that if the lawyer had not made the specific mistake, the client would have won the case but instead lost due to the mistake.

What Is Bond Insurance?

Bond insurance is a type of insurance policy that a bond issuer purchases that guarantees the repayment of the principal and all associated interest payments to the bondholders in the event of default. Bond issuers will buy this type of insurance to enhance their credit rating in order to reduce the amount of interest that it needs to pay and make the bonds more attractive to potential investors.

Bond insurance is sometimes also known as financial guaranty insurance.

Key Takeaways

• Bond insurance protects bondholders from default by the issuer by guaranteeing repayment of principal and sometimes interest.
• Issuers of bonds that purchase this type of insurance can receive a higher credit rating on those bonds as a result, making them more attractive to some investors.
• Bond insurance is most commonly seen among municipal bonds and asset-backed securities.

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Understanding Bond Insurance

The rating of a debt instrument takes into account the creditworthiness of the issuer. The riskier an issuer is deemed to be, the lower its credit rating and, thus, the higher the yield that investors expect from investing in the debt security. Such issuers are faced with a higher cost of borrowing than companies that are estimated to be stable and less risky. In order to obtain a more favorable rating and to attract more investors to a bond issue, companies may undergo a credit enhancement.

Credit enhancement is a method taken by a borrower to improve its debt or creditworthiness so as to obtain better terms for its debt. One method that may be taken to enhance credit is bond insurance, which generally results in the rating of the insured security being the higher of the claims-paying rating of the insurer and the rating the bond would have without insurance, also known as the underlying rating.

Bond insurance is a type of insurance purchased by a bond issuer to guarantee the repayment of the principal and all associated scheduled interest payments to the bondholders in the event of default. The insurance company takes the risk of the issuer into account in order to determine the premium that would be paid to the insurer as compensation.

Tip

In 2020, the largest bond insurers included Assured Guaranty, followed by Build America Mutual, MBIA, Ambac, and Syncora Guarantee.¹

Other Considerations

Bond insurers generally insure only securities that have underlying ratings in the investment-grade category, with un-enhanced credit ratings ranging from BBB to AAA. Once bond insurance has been purchased, the issuer’s bond rating will no longer be applicable and instead, the bond insurer’s credit rating will be applied to the bond instead by notching it higher.

By design, bondholders should not encounter too much disruption if the issuer of a bond in their portfolio goes into default. The insurer should automatically take up the liability and make any principal and interest payments owed on the issue going forward.

Bond insurance typically is acquired in conjunction with a new issue of municipal securities. In addition, bond insurance can be applied to infrastructure bonds, such as those issued to finance public-private partnerships, non-U.S. regulated utilities, and asset-backed securities (ABS).

Owning a boat is an exciting, rewarding experience. However, just like any investment, it comes with responsibility. It’s up to you to be protected while you’re out on the water.

Fortunately, boat insurance can help you do just that. Although boat insurance is not mandated in many circumstances, forgoing it is risky. Below, we’ll explore the major risks of not having boat insurance and how to avoid them.

What are the Financial Risks of Being Uninsured?

You may be financially liable for damage caused to other people and their property in the event of an accident. The financial risks of an uninsured boat include: 

• Liability for Accidents & Injuries: If you cause a boating accident and don’t have boat insurance, you’ll be personally liable for injuries and property damage to other parties and their boat. Medical bills, repairs, and potential legal fees can quickly add up and take a toll on your finances.
• High Out-of-Pocket Repair Costs: Without a boat insurance policy, you’ll have to cover all repairs on your own.
• Theft or Total Loss: If your uninsured boat unexpectedly gets stolen or destroyed, you’ll have to replace or repair it.

Read Next: How Much Does Boat Insurance Cost?

Legal and Regulatory Risks to Being Uninsured

Whether or not boat insurance is mandatory depends on factors like your state, marina, and whether you have a boat loan. Becoming familiar with the legal criteria for your unique situation is essential. 

• State & Marina Requirements: Some states require boat insurance for specific vessels or activities. Also, many marinas ask for proof of coverage so that you can dock or store your boat in their facilities. 
• Loan & Lender Requirements: If you’ve financed your boat, your lender may mandate an insurance policy.

How Boat Insurance Protects You on the Water

Boat insurance adds an essential layer of protection, helping you feel more confident and prepared every time you head out on the water.

• Collision with Another Boat: If your boat collides with another vessel and you’re at fault, you’ll be personally responsible for the damages. Boat insurance can also come in handy if your boat gets hit by an uninsured boat.
• Environmental Damage Liability: As a boat owner, you’re liable for clean-up and other expenses from fuel or oil pollution or contamination caused by your vessel. With no boat insurance, you’ll have to cover them out-of-pocket.
• Emergency Towing Costs: Things may not go as planned, and you might find yourself stranded in the water after an accident or breakdown. Unless you have specialized towing coverage like Sign & Glide®, you’d have to foot the bill for towing.

How to Avoid These Risks

These tips can help you reduce the risks of boating so you can protect your boat and finances. 

• Understanding Affordable Insurance Options: Boat insurance is affordable. While your premiums will depend on your location, the type of vessel you have, and the policy you choose, you may save money with basic coverage and discounts.
• Customizing a Policy for Your Needs: The ideal boat insurance plan should provide the coverage you need at a price you can afford. As you consider your options, consider your budget, boat value, and risk tolerance.
• Taking Action Before an Accident Happens: Since an accident or another unforeseen event, such as a fire, theft, or severe weather, can happen when you least expect it, year-round coverage is worthwhile. Otherwise, you may be forced to pay out-of-pocket damages because your policy has expired.

Once you invest in boat insurance, you and your crew can relax and make the most of your time on the water. Having a policy can protect your finances and ensure you’re prepared for any incident that might come your way. Get a quote today to explore your options and begin enjoying the carefree boating experience you deserve