The Seven Deadly Sins Of Personal Finance
The Seven Deadly Sins Of Personal Finance
By J.D. Roth —03 June 2019
I've been reading and writing about personal finance for more than thirteen years. In that time, I've consumed a lot of books about money. Lately, I've found that it's fun to revisit old favorites.
Recently, for instance, I've been re-reading Brett Wilder's The Quiet Millionaire [my review]. It's different than most personal finance books. It's targeted at those who are farther along their financial journeys rather than at those just starting out. Still, there are bits and pieces in The Quiet Millionaire that are applicable to everyone.
...
Ten years ago, I wrote that I particularly like Wilder's list of the seven enemies to financial success (which is my phrase, not his). I still like them. He writes:
If you want to become and stay the quiet millionaire, you must plan and manage your financial way of life…You must be proactive in order to obtain the financial life you want. By doing this, you will overcome the seven major obstacles to financial success.
Wilder is saying that we know there are certain common barriers to wealth. These obstacles arise for everyone. Because of this, it's possible to plan in advance to cope with them. First, however, we have to be able to name these enemies so that we can prepare the proper weapons to fight them.
The Seven Deadly Sins Of Personal Finance
From the Recaps Archives posted on 6/4/2019
The Seven Deadly Sins Of Personal Finance
By J.D. Roth —03 June 2019
I've been reading and writing about personal finance for more than thirteen years. In that time, I've consumed a lot of books about money. Lately, I've found that it's fun to revisit old favorites.
Recently, for instance, I've been re-reading Brett Wilder's The Quiet Millionaire [my review]. It's different than most personal finance books. It's targeted at those who are farther along their financial journeys rather than at those just starting out. Still, there are bits and pieces in The Quiet Millionaire that are applicable to everyone.
Ten years ago, I wrote that I particularly like Wilder's list of the seven enemies to financial success (which is my phrase, not his). I still like them. He writes:
If you want to become and stay the quiet millionaire, you must plan and manage your financial way of life…You must be proactive in order to obtain the financial life you want. By doing this, you will overcome the seven major obstacles to financial success.
Wilder is saying that we know there are certain common barriers to wealth. These obstacles arise for everyone. Because of this, it's possible to plan in advance to cope with them. First, however, we have to be able to name these enemies so that we can prepare the proper weapons to fight them.
The Seven Enemies of Financial Success
According to Wilder, the seven enemies of financial success are:
Lack of discipline. Without discipline, it's difficult to build wealth. In fact, it's impossible to get rich — slowly or otherwise — if you spend more than you earn. The math just doesn't work. Wilder also warns against compulsive spending, and he urges readers to track where their money is going.
Materialism. Stuff will not enrich your life. It's so very easy to find yourself “keeping up with the Joneses”, succumbing to lifestyle inflation. But materialism breeds discontent. Instead, Wilder says, focus on intellectual and spiritual pursuits to obtain fulfillment.’
Debt. Not all debt is bad, of course. A reasonable mortgage on a sensible home is fine. But consumer debt — or a bad mortgage on a big house — is an enemy to financial success. In fact, bad debt may be the biggest enemy to financial success.
Taxes. It's our responsibility to pay the taxes we owe, but we're under no obligation to pay more than that. “It is not unpatriotic to reduce paying your taxes,” Wilder writes. We should instead actively work to keep our tax burden as low as possible.
Inflation. Inflation is wealth's silent enemy. It will not destroy you all at once. But it's always there, nibbling at the corners of your life, consuming a little cash every year. It's impossible to keep inflation completely at bay, but you can learn to mitigate its effects.
Investment mistakes. Poorly structured investment portfolios can be a killer. This enemy is fought through education, through an understanding of diversification and asset allocation, by taking the emotion out of investing.
Emergencies. The final enemy to financial success is the unexpected: unemployment, death, illness, and legal complications. Without a plan for emergencies, you leave yourself at the mercy of the fickle fates. Carry adequate insurance and maintain an emergency fund!
To continue reading, please go to the original article here:
https://www.getrichslowly.org/?s=7+deadly+sins+of+personal+finance++++++
The Treasury Department is in Desperate Need of A Sucker
.The Treasury Department Is In Desperate Need
Notes From The Field By Simon BlackJuly 30, 2019 Vilnius, Lithuania
The Treasury Department is in desperate need of a sucker
Ten years ago, at the peak of the global financial crisis, the Board of Trustees which oversees Social Security in the United States issued a stark warning:
They projected that Social Security’s enormous trust funds would completely run out of money in 2039.
Naturally nobody paid attention. Back in 2009 the economy in shambles, so focusing on a future economic crisis that was more than three decades away was a low priority.
And for the past decade, the US government has continued to ignore its Social Security problem.
But it’s become much worse.
The Treasury Department Is In Desperate Need of A Sucker
Posted in Dinar Recaps Archives on 7/30/2019
Notes From The Field By Simon Black
July 30, 2019 Vilnius, Lithuania
The Treasury Department is in desperate need of a sucker
Ten years ago, at the peak of the global financial crisis, the Board of Trustees which oversees Social Security in the United States issued a stark warning:
They projected that Social Security’s enormous trust funds would completely run out of money in 2039.
Naturally nobody paid attention. Back in 2009 the economy in shambles, so focusing on a future economic crisis that was more than three decades away was a low priority.
And for the past decade, the US government has continued to ignore its Social Security problem.
But it’s become much worse.
Ten years later, the Board of Trustees now projects that Social Security’s primary trust fund will run out money in 2034.
That’s five years earlier than they projected back in 2009. And it’s only 15 years away.
Now, 15 years might seem like a long time. But take a minute to grasp the magnitude of this problem:
According to the US government’s own estimates, Social Security and Medicare combined are underfunded by $100 TRILLION.
$100 trillion is literally more than FIVE TIMES the size of the entire US economy. And this giant fiscal chasm is actually growing.
The big problem for Social Security is that tax revenue is no longer enough.
Every worker who is legally employed in the United States currently pays roughly 15% of his/her wages each month to help fund Social Security and pay benefits to retirees.
But there are now so many people receiving Social Security benefits that all the payroll tax revenue is no longer enough.
Social Security also derives a portion of the income it needs to pay benefits from the investment returns on its $3 trillion worth of assets.
Problem is-- Social Security is forbidden by law to invest in anything EXCEPT United States government bonds.
Most countries who have large Sovereign Wealth Funds or Pension Funds have the latitude to invest that capital in a variety of asset classes.
I personally know several national pension fund and sovereign wealth fund executives in Europe and Asia, and they typically buy a wide variety of assets-- real estate, private equity, stocks, bonds, etc., with a target annualized return of between 6% to 8%.
To continue reading, please go to the original article here:
https://www.sovereignman.com/trends/the-treasury-department-is-in-desperate-need-of-a-sucker-25425/
To your freedom and prosperity, Simon Black, Founder, SovereignMan.com
Do's and Don'ts When You Increase Your Income
Do's & Don'ts When You Increase Your Income
2 Things You Should Do (and 1 You Shouldn’t) When You Increase Your Income
Team Member Blog, Consumerism to Frugalism
Most of you would like to increase your income.
Whether you’re looking to make a career move, change companies, start a business, or simply move up in your current situation, making more money is likely one of the major factors in your job decisions.
Here at Money Saved is Money Earned, we know money isn’t everything and you shouldn’t live just for money. However, we also know that money plays a major factor in your ability to live the way you want.
Do's & Don'ts When You Increase Your Income
From the Recaps Archives originally posted on 7/11/2019
2 Things You Should Do (and 1 You Shouldn’t) When You Increase Your Income
Team Member Blog, Consumerism to Frugalism
Most of you would like to increase your income.
Whether you’re looking to make a career move, change companies, start a business, or simply move up in your current situation, making more money is likely one of the major factors in your job decisions.
Here at Money Saved is Money Earned, we know money isn’t everything and you shouldn’t live just for money. However, we also know that money plays a major factor in your ability to live the way you want.
While we should live within our means, most people would make very different choices if money wasn’t an option. Having said that, money should never be the end goal.
What’s really at the heart of the drive for more money is the desire for more freedom and power: over our life and the choices we make about it, as well as our ability to influence the world in the ways we care most about.
Money is nothing more than the means to an end.
Unfortunately, most of us will not win the big lottery, start a billion dollar company, or inherit millions. This means that while our incomes may increase over time that increase will likely be gradual, and may come in the form of step or merit-based raises, bonuses, or commissions.
However, most people find themselves spending money as fast as they make it, gradual increase or not.
With these points in mind, what SHOULD you do if you find your income increasing?
Luckily, we’re here to help.
Here are 2 things you should do when you increase your income and 1 you shouldn’t.
Things You SHOULD Do :
Pay off Debt
We know we play this tune like a broken record, but paying off your debt as fast as you can is one of the most effective ways of having Money Earned through Money Saved.
In fact, paying off debt is second only to not accruing debt in the first place!
The reason paying off debt as soon as possible is so impactful is because of interest.
Essentially, any loans you have you will pay interest on, which gives the lender extra incentive for loaning the money in the first place.
The trick with paying off debt at a faster pace than your loan term lies in the fact that any extra you pay goes directly toward the loan balance and not to interest.
Thus, making extra payments lowers your overall balance, which lowers the interest paid, which lowers the total amount you will pay to the lender.
Depending on the size of the loan and how much extra you put toward it, the impact on the total you pay can be quite astounding.
For instance, making extra payments on a mortgage could save you upwards of $30,000 in interest and several years on the life of the loan!
Not only does paying down your debt help you to save on interest and shorten the life of the loan, having less debt helps you maintain financial flexibility.
Say your car dies and you need another one, or you get in an accident (heaven forbid) and have medical bills. What if you get laid off or get sick and need to miss work?
If your debt to income ratio is maxed out you’ll be hard-pressed to get more credit no matter how great your credit score is or how much you make.
This is why it’s so important to focus on paying down any debt you do have as fast as possible and to try and keep it paid down. Not only will you be saving on interest and getting out from under loans faster, you’ll be able to handle any unknowns that may come up that could require you to accrue more debt.
Long story short, if you increase your income one of the first things you should do with that money is to pay down your debt.
To continue reading, please go to the original article at
13 Easy Ways To Trick Yourself To Save Money
13 Easy Ways To Trick Yourself To Save Money
By Ryan
If you have trouble saving money each month and always seem to go over your budget, try some of these helpful tips and tricks to save more money!
Saving money is definitely not as fun as spending money. Before I successfully changed my spending habits, I learned a few tricks to save money even when I didn’t want to. If you are trying to pay off debt or saving for retirement or a vacation, all of these tips will help you get there faster!
#1. Use Cash For Everyday Expenses
You should have a monthly grocery budget. At the beginning of each month, take out that money in cash and leave your cards at home when you go to the store. Creating a list and shopping with cash will help you stick to your budget if you know you don’t have a credit card to fall back on.
From the Recaps Archives originally posted on 4/30/2019
13 Easy Ways To Trick Yourself To Save Money
By Ryan
If you have trouble saving money each month and always seem to go over your budget, try some of these helpful tips and tricks to save more money!
Saving money is definitely not as fun as spending money. Before I successfully changed my spending habits, I learned a few tricks to save money even when I didn’t want to. If you are trying to pay off debt or saving for retirement or a vacation, all of these tips will help you get there faster!
#1. Use Cash For Everyday Expenses
You should have a monthly grocery budget. At the beginning of each month, take out that money in cash and leave your cards at home when you go to the store. Creating a list and shopping with cash will help you stick to your budget if you know you don’t have a credit card to fall back on.
I also recommend using Clicklist or any other online shopping method. I wrote an article about how my wife and I save a ton of money using Frys Pickup by shopping online and picking up our groceries from the store. Read more about it here: How Frys Pickup (formally Click List) Saves Me Money
For the cash technique, you can use this strategy for any other budgeted item you have. You can use cash and leave the cards at home when you go to a restaurant, movie theater, etc. Force yourself to stay on your budget.
#2. Pay Your Savings First Each Month
You should have a budget set up for the beginning of each month. In theory, you know how much money you are able to spend and how much you plan to save. Instead of spending money all month and saving whatever is left, reverse the process.
When you receive your first paycheck of the month, automatically move a certain amount of money from your checking account to your savings account. Many banks can do this for you automatically if you set it up for a certain amount. If you automatically move $25 dollars over initially, you know you have at least saved that much.
Force yourself to lower your spending rather than your saving. By reversing your money management order, you can more easily achieve your savings goals.
Digit is a mobile app that will assist you with this process as well. Digit is a service that looks at your spending and transfers money into a savings account automatically. If you would like to try it for free for 30 days, click my link here.
I To continue reading, please go to the original article here:
https://arrestyourdebt.com/13-easy-ways-trick-yourself-save-money/
The Signs That Signal You Are Too Obsessed With Making Money Now
The Signs That Signal You Are Too Obsessed With Making Money Now
Post From Invested Wallet
Making Money NowMaking money is something I’ve been working on quite a bit the last few years to better my financial health.
Yet, at times I also found myself becoming a bit too obsessed with making money now and the pursuit of wanting to get rich. I think it’s a natural feeling for many in our society.
However, I’ve been fortunate enough to catch myself and ensure I do not make it my entire life either.
Life is short and anything can change in an instant. So while money is important to our lives, it should not be all that matters..
The Signs That Signal You Are Too Obsessed With Making Money Now
From the Recaps Archives originally posted on 5/30/2019
The Signs That Signal You Are Too Obsessed With Making Money Now
Post From Invested Wallet
Making Money NowMaking money is something I’ve been working on quite a bit the last few years to better my financial health.
Yet, at times I also found myself becoming a bit too obsessed with making money now and the pursuit of wanting to get rich. I think it’s a natural feeling for many in our society.
However, I’ve been fortunate enough to catch myself and ensure I do not make it my entire life either.
Life is short and anything can change in an instant. So while money is important to our lives, it should not be all that matters.
Below are a few signs that might signal you are becoming too obsessed with making money or getting rich fast.
All You Talk About Is Money
That’s rich coming from a personal finance nerd like me, right? (That’s rich, get it? #MoneyPuns)
As much as I do think about money, it’s not something I talk about constantly to everyone in my life. It can be a touchy subject to some, plus there is plenty to talk about and connect with others about.
If you find that every word you speak or conversations lead to making money, getting rich, or how much you’re making, try to find ways to dial it back. You shouldn’t have money on your brain 24/7.
You Stress Yourself Out Trying to Get Rich
Money is stressful and managing personal finances can be too. But if your obsession with getting rich and chasing the almighty dollar is stressing you out, you may be too obsessive.
I’m all about working hard and chasing financial independence, but if it is affecting your mental and physical well-being, it’s time to re-evaluate your goals.
Ask yourself, “Is trying to make money or get rich worth the toll it has on my body and mind?”
You Jump On Every Money Making Idea
Since making money now is a heavy priority, anytime some new way to make money comes up you’re the first one to jump on it.
There is nothing wrong with wanting try something new, but it can become a problem if you never see something through and jump to the next thing right away.
By doing this, you aren’t putting 100% of your focus on something and can get frustrated when it doesn’t work out. This can take a serious toll on your mind.
To continue reading, please go to the original article here:
10 Lessons from Benjamin Franklin's Daily Schedule that will Double Your Productivity
.TNT: LounDebnc: 10 lessons from Benjamin Franklin’s daily schedule that will double your productivity
Benjamin Franklin is best remembered as one of the Founding Fathers of the United States, but he achieved much more in his lifetime.
During Franklin’s 84 years alive, he invented the lightning rod, made significant discoveries in physics and population studies, wrote best-selling books, composed music and played the violin, harp and guitar at a high level, founded many civic organizations, including the University of Pennsylvania, and much more.
How did Franklin achieve so much more than his contemporaries, given he had the same 24 hours each day to get things done? The answer to this question lies in Franklin’s daily schedule.
From the Dinar Recaps Archives originally posted on 6/2/2019
TNT: LounDebnc:
10 lessons from Benjamin Franklin’s daily schedule that will double your productivity
Benjamin Franklin is best remembered as one of the Founding Fathers of the United States, but he achieved much more in his lifetime.
During Franklin’s 84 years alive, he invented the lightning rod, made significant discoveries in physics and population studies, wrote best-selling books, composed music and played the violin, harp and guitar at a high level, founded many civic organizations, including the University of Pennsylvania, and much more.
How did Franklin achieve so much more than his contemporaries, given he had the same 24 hours each day to get things done? The answer to this question lies in Franklin’s daily schedule.
Here’s how it works, including 10 lessons that will double your productivity this week.
Create a list of values to live by
Before putting pen to paper on his daily schedule, Franklin created a list of virtues to live by.
He referred to these as his 13 virtues: a list of values designed to help guide his daily schedule.
Here’s the list of Benjamin Franklin’s 13 virtues:
1. Temperance: Eat not to dullness and drink not to elevation.
2. Silence: Speak not but what may benefit others or yourself. Avoid trifling conversation.
3. Order: Let all your things have their places. Let each part of your business have its time.
4. Resolution: Resolve to perform what you ought. Perform without fail what you resolve.
5. Frugality: Make no expense but to do good to others or yourself: i.e. Waste nothing.
6. Industry: Lose no time. Be always employed in something useful. Cut off all unnecessary actions.
7. Sincerity: Use no hurtful deceit. Think innocently and justly; and, if you speak, speak accordingly.
8. Justice: Wrong none, by doing injuries or omitting the benefits that are your duty.
9. Moderation: Avoid extremes. Forebear resenting injuries so much as you think they deserve.
10. Cleanliness: Tolerate no uncleanness in body, clothes or habitation.
11. Chastity: Rarely use venery but for health or offspring; Never to dullness, weakness, or the injury of your own or another’s peace or reputation.
12. Tranquility: Be not disturbed at trifles, or at accidents common or unavoidable.
13. Humility: Imitate Jesus and Socrates.
Even though this saves time upfront, it wastes valuable time, willpower and energy, that could’ve been spent working on important tasks straight away.
To avoid this problem, Franklin made sure to clean up his work space and put things back in order before leaving the office each day.
This ensured that Franklin had enough willpower each morning, to tackle the tedious tasks in the long day ahead.
To continue reading, please go to the original article here:
8 Insights Only the Self-Made Super Wealthy Understand
.From the Dinar Recaps Archives originally posted on 6/3/2019
Billionaire Ken Fisher Shares 8 Insights Only the Self-Made Super Wealthy Understand
Wonder what it's really like to strike it rich? Billionaire Ken Fisher explains the perspectives of the self-made wealthy.
BY KEVIN DAUM Inc. 500 entrepreneur and best-selling author@KevinJDaum
Not all entrepreneurs are in it for the money, but gaining wealth is certainly among the top motivators for company building. Not surprisingly, having great wealth brings it's own unique responsibilities and circumstances that few get to experience first hand.
I recently had the privilege of interviewing billionaire Ken Fisher, founder, chairman, and CEO of Fisher Investments, best-selling author, Forbes magazine columnist, and No. 225 on the Forbes 400.
Fisher provided a candid, no-holds-barred look at the perspective of the self-made super wealthy.
Here are his insights.
From the Dinar Recaps Archives originally posted on 6/3/2019
Billionaire Ken Fisher Shares 8 Insights Only the Self-Made Super Wealthy Understand
Wonder what it's really like to strike it rich? Billionaire Ken Fisher explains the perspectives of the self-made wealthy.
BY KEVIN DAUM Inc. 500 entrepreneur and best-selling author@KevinJDaum
Not all entrepreneurs are in it for the money, but gaining wealth is certainly among the top motivators for company building. Not surprisingly, having great wealth brings it's own unique responsibilities and circumstances that few get to experience first hand.
I recently had the privilege of interviewing billionaire Ken Fisher, founder, chairman, and CEO of Fisher Investments, best-selling author, Forbes magazine columnist, and No. 225 on the Forbes 400.
Fisher provided a candid, no-holds-barred look at the perspective of the self-made super wealthy.
Here are his insights.
1. It isn't pursuit of wealth, but pursuit of passion that creates wealth.
Focusing on money won't likely get you to the Forbes list like Fisher. He aptly states: "Most people don't get super wealthy by accumulating money. They get super wealthy by following some dream they are passionate about, whether its starting and running a business, or being a rock star musician or a visual entertainer."
He points out that most of the super wealthy overshoot their personal goals, and yet they are still driven by their passion. The super wealthy know that if you pursue your passion, the money will come.
2. After a certain monetary threshold, the desire isn't for more wealth, but more time.
There is very little that the super wealthy cannot buy. As the wealth keeps accumulating, spending becomes less of a joy or ambition. "After a certain point," Fisher explains, "there isn't much more you can think of that you want."
What becomes more desirable is time to enjoy life. "The vacation homes, cars, boats, and wardrobes are just more stuff to deal with." Fisher observes. "All that stuff clutters your time usage, so at a certain point, the wealthier you get the more you covet time."
3. Everyone you've known forever (except your spouse) will think you've changed.
There is a common belief that wealth changes everyone, and not always for the better. Fisher says, "Only you will know that you haven't changed; that passionate drive to follow dreams does not change."
Fisher explains it this way: "Everyone's perceptions of change are as though they are seeing the clock at a few different hour points in your evolution, as opposed to seeing it as a continuous sweeping minute hand that doesn't change."
To continue reading, please go to the original article here:
8 Critical Personal Finance Numbers You Need to Know
.8 Critical Personal Finance Numbers You Need to Know
Post From Money Saved Is Money Earned
Do you know your financial status?
If not, you’re not alone. A recent Gallup poll found that only 32% of Americans have a household budget.
Furthermore, a recent Bankrate survey found that 55% of Americans don’t think their financial situation will improve this year, with 44% who think their situation will stay the same and another 12% saying they think their situation will get worse.
While you may feel your financial situation won’t improve, you are guaranteeing it won’t improve if you don’t know where you stand or if you’re actively ignoring your finances.
Like any path taken in life, you need to know where you’re starting so you know how far you’ll need to go before you reach your destination.
Every journey has a beginning, and you must know yours.
8 Critical Personal Finance Numbers You Need to Know
:Posted at Dinar Recaps Archives on 7/10/2019
Post From Money Saved Is Money Earned
Do you know your financial status?
If not, you’re not alone. A recent Gallup poll found that only 32% of Americans have a household budget.
Furthermore, a recent Bankrate survey found that 55% of Americans don’t think their financial situation will improve this year, with 44% who think their situation will stay the same and another 12% saying they think their situation will get worse.
While you may feel your financial situation won’t improve, you are guaranteeing it won’t improve if you don’t know where you stand or if you’re actively ignoring your finances.
Like any path taken in life, you need to know where you’re starting so you know how far you’ll need to go before you reach your destination.
Every journey has a beginning, and you must know yours.
It’s important to be able to accept the things you did know, didn’t know, or ignored that have impacted your current financial situation. Only then can you build an effective financial plan.
You can start your journey any place or any time, but more importantly, start now.
Here are 8 critical personal finance numbers you need to know no matter where you are on your financial journey.
1. After-Tax Income
The first critical personal finance number you need to know is your after-tax income.
This means you must know what money you’re actually putting in your pocket every month (net) as opposed to your overall income (gross)
For those that are salaried, simply look at your paycheck to see what money you’re taking home every month.
After-tax income will be harder for those with a variable income or who freelance, but close estimations can still be made. Plus, if you’re income is variable it’s important to know how much it varies when making other financial decisions so you don’t overstretch yourself.
Knowing how much money you actually have to allocate is the first step in taking control of your financial situation.
Check out 2018 Tax Changes You Need to Know for more information about tax brackets and other important tax laws.
2. Monthly Expenses
Once you know how much money you have coming in you need to determine how much money you have going out. You also need to make sure you’re covering all your necessities and not overspending for non-essentials.
They only way to truly know what’s going out each month is to build a budget.
Many think of a budget as restrictive, but really it’s simply a way to track what you’re spending each month and on what. Once you know how much money is going out and for what, you can make changes based on your goals if needed.
Even those who have good cash flow must still have a general idea of their budget if they want to maintain their finances. After all, 33% of those making $50k-$100k live paycheck-to-paycheck, and 25% of those making $150k are in the same predicament.
There are five major sections to a basic budget. They are:
Income
Fixed Expenses
Variable Expenses
Debt Payment
Balance
Once you know how much money is coming in and going out each month, you can begin to make goals and to tweak your finances to meet those goals.
To continue reading, please go to the original article at
https://www.moneysavedmoneyearned.com/8-critical-personal-finance-numbers-you-need-to-know/
Finding a Financial Advisor or Planner
.From the Recaps Archives, originally posted on 6/3/2019
Finding a Financial Advisor or Planner
By Troy Segal Updated Jun 3, 2019
If it's ever occurred to you how complex and vital 'getting it right' is when it comes to saving, investing, maximizing the value of your wealth and planning for a safe, comfortable retirement, you've probably asked yourself if you should employ a financial planner or advisor.
Similarly, if you've felt the pressure of deciding on a big investment, such as a home or education—or felt overwhelmed with the financial details after a wedding, the birth of a child, divorce, death of a spouse, or major illness—you've probably wondered about finding someone to advise you.
From the Recaps Archives, originally posted on 6/3/2019
Finding a Financial Advisor or Planner
By Troy Segal Updated Jun 3, 2019
If it's ever occurred to you how complex and vital 'getting it right' is when it comes to saving, investing, maximizing the value of your wealth and planning for a safe, comfortable retirement, you've probably asked yourself if you should employ a financial planner or advisor.
Similarly, if you've felt the pressure of deciding on a big investment, such as a home or education—or felt overwhelmed with the financial details after a wedding, the birth of a child, divorce, death of a spouse, or major illness—you've probably wondered about finding someone to advise you.
Services of Advisors and Planners
According to a 2019 CNBC and Acorns Invest survey, over a third of Americans don't have a good understanding of what a financial advisor actually does. That figure balloons to 46% for Millennials.
So what kind of services do financial advisors and planners provide? Broadly, they can help you manage your financial life using a variety of strategies and products to both manage your wealth and improve your financial habits.
Types of Financial Advice
Not all financial advisors are the same. Some specialize in certain practice areas, types of clients, income levels, investment strategies, and products. Some work with clients all over the country, while others focus on clients in their town.
Some can help you with your taxes, insurance needs, or estate planning and others will focus on retirement planning. There are advisors for the younger client and some specialize on retirees. You can find a planner to help with life stages planning, estate distribution strategies, and business planning.
From managing every aspect of your personal or business financial life to simply suggesting directions, there are specialized professionals available to help.
Reasons to Seek Financial Advice
You may need an advisor for many reasons. For example, perhaps you just received a considerable sum of money from a relative who died or a windfall from the state lottery. As a person goes through different stages in life, their need for a financial professional will change.
erhaps you just had a baby and want to ensure their future in case the worst happens. Many parents seek help for college savings for children and setting up estates that can convey wealth to future generations.
The approach to investing at or during retirement is different than that of a young worker. As you near retirement your risk tolerance level will change, and your style of investing should change as well. Perhaps your company is offering a too-good-to-resist early-retirement package, and you want to make sure the money lasts.
Any of these events (and many others) could naturally trigger the desire for some professional help in managing your financial affairs.
To continue reading, please go to the original article here:
https://www.investopedia.com/updates/find-financial-advisor-planner/
.Private Banking and Private Bankers
.Philanthropy 101
Giving money away can be just as complicated as making it.
Private bankers help spread the wealth.
Private bankers help clients to guard their wealth; they also hold their hands when it’s time to give some of it away.
“Many times clients are interested in donating, but they don’t really have the people to sit down and have a dialogue with,” says Nicholas Stonestreet, head of Trust & Wealth Structuring at Merrill Lynch International Private Client Group. “It’s a really important part of private banking.”
Stonestreet encourages his staff to ask clients about their philanthropic intentions. Like therapists exploring personal problems, charity experts at private banks can help donors think through their altruistic inclinations and motives.
From the Dinar Recaps Archives originally posted on 6/4/2019
Philanthropy 101
Giving money away can be just as complicated as making it.
Private bankers help spread the wealth.
Private bankers help clients to guard their wealth; they also hold their hands when it’s time to give some of it away.
“Many times clients are interested in donating, but they don’t really have the people to sit down and have a dialogue with,” says Nicholas Stonestreet, head of Trust & Wealth Structuring at Merrill Lynch International Private Client Group. “It’s a really important part of private banking.”
Stonestreet encourages his staff to ask clients about their philanthropic intentions. Like therapists exploring personal problems, charity experts at private banks can help donors think through their altruistic inclinations and motives.
Will the client get more out of giving while still alive or after death? Some may want a foundation to carry on their legacy forever; others may want the bequest spent out at some point.
The tax implications of giving are a frequent concern. Though the U.S. leads the world in tax breaks for charitable giving, other countries are catching up.
In recent years the U.K. has improved its Gift Aid plan, introduced in 1990 to allow charities to reclaim basic-rate tax (now 22%) on one-time cash donations of at least £250 ($390), by eliminating the minimum amount and allowing income tax deductions to those donating stock.
This year Canada indefinitely extended legislation that halves to 25% the amount of capital gain subject to tax for gifts of public securities made directly to charities.
Private bankers will help structure a donation to maximize the writeoff, selecting the best asset and even seeing to the completion of the transaction. Sometimes an offshore trust is advantageous for tax or other reasons; private banks have always known the score there.
As philanthropy becomes more widespread on the giver end, so too are receivers becoming more active. Banks can set up a screening service for pleas and proposals from would-be beneficiaries.
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7 Biggest Mistakes People Make When Choosing a Financial Adviser
.From the Recaps Archives, originally posted on 5/30/2019
7 Biggest Mistakes People Make When Choosing a Financial Adviser
Matt Wiley | APR 26, 2019
Choosing a financial adviser is a big decision.
Being aware of these seven common blunders when choosing an adviser can help you find peace of mind, and avoid years of stress.
...
1. Hiring the First Adviser You Meet
While it’s tempting to hire the adviser closest to home or the first adviser in the yellow pages, this decision requires more time. Take the time to interview at least a few advisers before picking the best match for you.
From the Recaps Archives, originally posted on 5/30/2019
7 Biggest Mistakes People Make When Choosing a Financial Adviser
Matt Wiley | APR 26, 2019
Choosing a financial adviser is a big decision.
Being aware of these seven common blunders when choosing an adviser can help you find peace of mind, and avoid years of stress.
1. Hiring the First Adviser You Meet
While it’s tempting to hire the adviser closest to home or the first adviser in the yellow pages, this decision requires more time. Take the time to interview at least a few advisers before picking the best match for you.
2. Choosing an Adviser with the Wrong Specialty
Some financial advisers specialize in retirement planning, while others are best for business owners or those with a high net worth. Some might be best for young professionals starting a family. Be sure to understand an adviser’s strengths and weaknesses - before signing the dotted line.
3. Picking an Adviser with an Incompatible Strategy
Each adviser has a unique strategy. Some advisers may suggest aggressive investments, while others are more conservative. If you prefer to go all in on stocks, an adviser that prefers bonds and index funds is not a great match for your style.
To continue reading, please go to the original article here:
https://article.smartasset.com/mistakes-when-choosing-financial-advisor/?utm_source=taboola&utm_medium=cpc&utm_campaign=tab__falc_content_famistakes&utm_term=580&utm_content=203587794