Category: Living
Pros and Cons of Owning an Electric Vehicle
July 15, 2024
Almost 1.2 million Americans went electric in 2023, and according to Kelley Blue Book, electric vehicles are the fastest-growing category in car sales. With states such as California putting forth legislation that will require all vehicles to be electric by 2035 and new federal regulations for all government vehicle acquisitions to be electric the same year, EV sales are expected to remain steady.
“For people thinking about going to EV, just get educated,” says CEO of ChargePoint Rick Wilmer, who operates the world’s largest network of EV charging stations in North America and Europe. “If you understand how it works on a basic level, you should be fine.” So if you’re thinking about owning an EV, here are some pros and cons to going electric.
Depending on how large the battery in your EV is and what your electric rates are, it will still cost you money to charge your vehicle at home, but it should be less than what it would be to fill a gas tank. You can calculate the cost of filling up an EV by multiplying the size of the car’s battery by your home’s electricity rate, which can be found on your electric bill in kilowatt hours (or kWh). Then you could compare that price to how much it would cost to fill up a car with gas and yield the same mileage. If you pay the 2024 national average of 17 cents per kWh and have an EV with a 65-kWh battery, then you would pay $11.05, or $0.17 × 65, to fully charge the car’s battery. At the pump, if you paid this year’s average gas price of $3.35 per gallon, then10 gallons of gas would cost you $33.50. Plus, if you utilize public chargers or have access to other free charging stations, then your gas savings could be even higher. At the end of the day, the amount of money you’ll save on gas will depend on how many miles you drive and the difference between what you’ll pay for electricity versus gas.
EVs have less engine than a traditional gas-powered car, so there are less things that can go wrong. Since there’s no engine, there are also no oil changes or certain routine engine maintenance to take care of. This isn’t to say EVs come without maintenance though. You may need to replace your tires more often due to the heavy battery and regenerative braking, which helps charge the battery every time you use the brakes. EV tires typically wear out 20% faster than a traditional car’s. While the cost of replacing a battery can range from $6,500 to $20,000, many EVs now come with battery warranties of up to eight years or 100,000 miles. Putting your savings on gas on maintenance into a sinking fund may help if you end up needing to replace the battery down the road.
Pro: Better for the Environment
EVs don’t burn gas, and even though the battery makes it more material-intensive than a gas-powered vehicle, the environmental benefits outweigh the initial environmental cost. The greenhouse gas emissions from charging the vehicle are also lower than a gas car’s total emissions, especially when the local power plants are using clean energy sources rather than burning fossil fuels.
Con: Investing in Home Charging
Unless you plan to rely completely on charging your EV in public spaces or you live somewhere that already has charging stations available, you’re likely going to have to install a charging station in your home. In addition to the cost of installing the charging station, your electric bill will be higher. How much higher your bill will be depends on your electric rate, the type of charging system you use, and how often you need to charge your battery at home.
Con: EV Range and Charging Difficulties
An EV’s range is how far a full battery charge will get you. Today, you can buy a new EV with a range between 260 and 400 miles. Even on a full battery though, most EVs won’t take you as far as most gas-powered cars on a full tank. The other downside to having to charge the battery versus filling up at a gas station is that fully charging a battery can take up anywhere between 15 minutes and 12 hours depending on the charging speed. Yet another sticking point to getting where you need to go is that it might be difficult to find charging stations along the way as EVs are still new. You’ll likely have to plan your route around where you can stop and charge up.
Con: The Upfront Cost of Buying an EV
While it’s becoming less expensive to buy EVs, they are still more expensive than your traditional vehicle. According to Kelley Blue Book, the average cost of buying a new EV was $49,507 by the end of 2022. “Buyers expect their vehicles to be affordable. Fully 74 percent of those intending to buy an electric expect their next vehicle to cost less than $50,000,” says Deloitte’s Automotive Research Leader Ryan Robinson. “With the average price of a new vehicle already approaching $40,000, that’s a very narrow band for electrics.” As production increases and technologies improve, EV prices are expected to equalize with conventional cars in the coming years. Also, the cost of buying an EV may be offset by the potential fuel and maintenance savings and the federal tax credit. This year, you may claim a tax credit of up to $7,500 on your 2023 taxes for purchasing an electric vehicle.
Are Hybrids the Middle Ground?
If you’re hesitant to buy an EV, then a hybrid car might be an alternative. Since hybrids use less gas, they are still environmentally friendly and will still cost you less at the pump. Another plus is that since they are self-charging, they don’t require charging stations. Even though skipping out on charging stations is a benefit, they do still have a battery that will eventually cost you to replace. Since you can think of a hybrid as being part traditional, there will also still be maintenance costs. They will also cost you more to buy upfront, because a hybrid uses newer technology just like an EV. If you think you can afford the added costs upfront and possibly replace the battery eventually, then the upsides to hybrids are going to be less emissions, gas savings, and hassle-free battery charging.
If you’re unsure of buying an electric vehicle, another solution may be to lease one and see if the EV life is right for you. Otherwise, as long as you think you can reduce the upfront costs of transitioning to an EV, the savings on maintenance and gas over time are appealing, while you would also be doing your part in reducing emissions. At Insureyouknow.org, you may store and access all of your financial information and vehicle maintenance records easily so that if you’re considering going electric, the transition can be seamless.
Navigating the Impact of Recent Real Estate Legislation
April 15, 2024
During March of this year, the National Association of Realtors (NAR) reached a settlement agreement to resolve a series of lawsuits that had to do with the practice of tying. Tying involves the home seller’s agent setting a commission rate for that homebuyer’s agent if they help facilitate a sale. According to the NAR, 90 percent of the homes on the market in the United States are sold this way as they are listed on the Multiple Listing Service (MLS).
Each year, Americans pay $100 billion in real estate agent commissions. If the settlement is accepted, the new terms may lower the amount agents can collect in home transactions. Since the proposed rules may change how U.S. homes are bought and sold, the new terms are important for realtors and potential homebuyers to understand.
The Problem With Tying
MLSs aren’t new, as the first MLS began in the late 1800s as a way for real estate agents to share information about the properties they were trying to sell. In exchange for the sharing of information, the agents agreed to compensate other brokers who helped them sell their properties. Today, more than 800 MLSs exist where agents list their properties. Sellers benefit from this arrangement because of increased exposure of their properties, while buyers benefit because they receive a database of nearly every home on the market.
The practice of tying, when the buyers’ agent is offered a commission for facilitating the sale of another agent’s property listing, has been shown to reduce competition and drive-up closing fees. Under tying, the commission the buyer’s agent will receive is determined before that agent can actually provide any services to the buyer. This can make it difficult for the home’s buyer to negotiate closing fees as well as require the home’s seller to offer higher commissions in order to sell their home.
Because real estate agents earn their income through these commissions, they are widely known to practice steering, which involves directing their clients toward homes that offer the best possible commissions for themselves. Since only one in 600 MLSs allow their agents to publish the commission they offer to buyers’ agents, buyers are generally unaware of these agreements between agents. The lack of transparent commission agreements makes it difficult for a buyer to know if their agent is steering them away from certain properties.
What the NAR Agreement Would Entail
If the proposed NAR settlement is approved, there will be two significant changes to prevent tying. First, MLSs will not be permitted to display commission rates. Commissions however can still be negotiated through real estate professionals off-MLS. Second, real estate agents will have to explicitly agree to the exact services they’ll provide their clients through written agreements, which will be known as a Buyer Representation Agreement and will include the agreed upon compensation for the realtor. If the changes are accepted, they will go into effect mid-July. Because of this, many realtors are suggesting those who are currently looking to buy to close by the end of June in order to avoid these proposed changes to the homebuying process.
Nearly every realtor who is a NAR member is covered in the agreement, and every member would have to abide by the proposed changes if the settlement is approved. Any members of HomeServices of America would not be covered due to ongoing court cases, as well as any brokerage firms with residential transaction volume above $2 billion in 2022. Any realtor who is unsure if they are involved in the changes or have questions moving forward are urged to get their information from the NAR’s facts.realtor.
What to Know About Traditional Commission Rates
The typical U.S. sales commission rate for real estate agents is five-to-six percent, which are among the highest in the world. But agents have been advertising low-to-zero percent commission rates to appeal to buyers for years. This isn’t because they’re foregoing their profit, but because they’re rewording their commission rate as “buyer credits.” Buyer credits can already be seen offered on many listings and are determined as the buyer sees fit at closing. In other words, commission rates and agent profits have already been negotiated outside of the MLSs for some time now. That’s why many futurists predict that these new guidelines will affect the future of real estate very little.
Because agent compensation will become a negotiation, many predict increased competition among agents, which the practice of tying had reduced for some time. “Fees have been a bit rigid,” said San Diego Real Estate Professor Dr. Norm Miller. “So it is about time we see more price competition on the fee side.” At the average U.S. home price $420,000, a six percent agent commission would be $25,200. If that six percent rate is reduced by half to three percent due to agent competition, then the price to sell or buy a home could be reduced to $12,600. Clearly, that could make buying a home more affordable for many.
The Future of Real Estate
If the settlement is approved, the practices of tying and steering will likely end. Hopefully, homebuyers will be able to better negotiate the amount of commission their agent will receive or choose alternative forms of payment, such as paying by the hour or a flat fee. Homebuyer’s should also be less pressured to list their home through MLSs or use an agent at all. All of this could result in lower costs of housing transactions, but the full extent isn’t clear.
The overall effect on the economy is difficult to predict. The NAR settlement agreement would benefit middle-class families who have a large share of their wealth invested in housing. Because consumers typically share a small amount of their gains in wealth, the benefit to middle-class homeowners who sell their property is unlikely to make an influence on consumer demand. Other economists predict that the process of buying a home could involve more upfront costs if real estate agents begin foregoing commission rates, which could potentially make it less feasible for lower-income and first-time buyers to acquire property.
If you’re in the market for buying a home, the expected changes due to the impending NAR settlement may end up affecting you very little. Besides being able to negotiate your agent’s fees and services upfront, very little is expected to change as a result of the new guidelines. At the end of the day, if you decide to use an agent when buying or selling a home, you’ll want to choose a professional you trust, regardless of these changes. Insureyouknow.org will prove to be a valuable tool in the homebuying process, as you can store all of your financial information and agreements in one easy to access place.
Looking after Elderly Parents Remotely
March 1, 2024
Taking care of loved ones without being close by is a challenge. Whether you live a long drive away from aging parents or in another state, long-distance caregiving can become emotionally exhausting. If that sounds like you, know that you are not alone. Nearly 15 percent of caregivers live an average of 450 miles away. If you have recently found yourself looking after your parents from a distance, then here are some simple strategies to help you along the way.
Evaluate Your Strengths and Outsource the Rest
Be honest with yourself about your strengths. Maybe you’re comfortable handling finances but not as comfortable determining medical needs. Pinpointing the areas of need that you’ll be most suitable for is the first step in delegating the rest. You may have siblings who live closer to your parents and are willing to accompany them to their doctor’s visits. Other helpful skills include organization and communication, which could be utilized to organize schedules and communicate with medical professionals and caregivers. Once you determine what you’ll be best at handling, then you can begin to make plans to fill in the gaps.
Create a Team for Support
Speak with the rest of your family and close friends about who can help with your parents’ care. Coordinating with everyone to determine what each person is willing to do will help everyone be on the same page and turn creating a care plan into a team effort. Even if you don’t have any other siblings or family members who are able to help, then you should still meet with your parents and include them in their own care planning. For instance, ask them what you can do that will be most helpful. It’s important to remember that you don’t have to handle everything alone and to try and outsource anything you need help with as much as possible.
Establish Access to Information
Once you determine who the primary caregivers will be and who needs to be in charge of what, then it’s time to make sure those people have access to the appropriate information. Make sure that the person designated to handle bill-paying and account management on behalf of your parents has the ability to do so. Establishing the rights to have medical information released to caregivers as well as decision-making rights is another imperative. This can also be a legal issue down the road, so making sure that you or another trusted party is the power of attorney, who is appointed to make financial and medical decisions, will need to be determined.
Revisit Living Arrangements
Sometimes a loved one’s health requires them to be closer to you. If it’s possible to relocate to where they live or have them move in with you, then that may be something worth exploring. If it’s not possible to live together, then senior living communities have the upside of being able to provide 24/7 care. Many older people don’t require full-time care though, so if relocation isn’t feasible, then hiring a home care aide or personal care assistant is another option.
Schedule Regular In-Person Visits
If you cannot live close to your parents, then making plans to see them will accomplish several things. First, you’ll instantly alleviate some of the caregiver guilt you may be experiencing just by knowing when you’ll be able to visit them next. Second, you’ll be able to check on them in-person, as you may not have an accurate assessment of their condition and needs from a distance. “It’s hard keeping a handle on their health, how they’re doing, physically, mentally, psychologically and emotionally, when you’re not there,” says Amy Goyer, AARP’s family and caregiving expert. “Isolation is a big thing and they can tell you, oh, I’m doing fine and everything on the phone, but is that really what’s happening?”
Lastly, but most importantly, you’ll be able to spend some much-needed quality time with your parents when visiting. If you are not the primary caregiver, then coordinate with them on when the best time to visit is and offer them a break. Plan in advance what you can do when you’re there to help out. Then speak with your parents about what they would like to do with you during your visit. Since visits can go by quickly, especially when there is so much to do, set priorities ahead of time about what’s most important once you’re there.
Remain Connected When You’re Apart
Schedule regular phone calls with your parents and ask for updates from their caregivers. With their permission, you may even choose to attend their telehealth visits and doctor’s appointments virtually. “The frequency of contact is dependent on the type and level of care needed,” says Iris Waichler, author of Role Reversal, How to Take Care of Yourself and Your Aging Parents. “It should be a collaborative decision, if possible, rather than a unilateral mandate from the caregiver.”
Regular communication can keep your bond with your parents strong, as long as it remains an enjoyable experience for all of you.
Take Care of Yourself as Well
Caregiving can come with a heavy emotional load. It will become just as important to check in with yourself in your new role as caregiver. “Caregivers may often feel like they can do more and this can cause ruminating thoughts,” says Brittany Ferri, geriatric care occupational therapist. “In this instance, they may benefit from practicing positive self-care and self-talk along with their loved one to keep the lines of communication open while relieving stress.”
It’s hard to be a good caregiver, when you’re running on empty, so taking care of yourself as well is just as important as taking care of those depending on you. Show yourself compassion, make sure you’re recharging, and be kind to yourself.
Insureyouknow.org
While it can be a challenge to care for your parents from a distance, that doesn’t mean it’s not manageable. By planning ahead and creating a care team, you can make sure your parents are cared for even when you can’t be close at all times. Insureyouknow.org can help you compile care plans, schedules, financial information, and medical records all in one place. Then you can rest easy that you have a plan set in motion, ensuring that your parents will be well-taken care of.