The Seven Step Plan for Sudden Wealth

From Recaps Archives- Reposted for our newest members

THE SEVEN STEP PLAN for SUDDEN WEALTH !

Wealth consultant xxxxxxx helps people develop skills to manage life and money when they receive overnight wealth. She has developed seven steps to handling financial windfall after years of working with individuals, families, trusts and foundations.

(1) Realize that you alone are responsible for these funds and your financial well being. Stay involved, read, and learn about financial matters.

(2) Step back take time to emotionally adjust and understand your new situation.

(3) Choose your path. What do you want for your life? Who do you want to be?

(4) Figure out your financial position. How much do you have? What are your current living expenses and what is your income? Is it enough to live on and do what you want to do, as identified in #3?
....

​(5) Slowly and thoughtfully assemble your team of advisors and gatekeepers.

Estate lawyer
Investment Manager
CPA
Wealth Consultant

(6) Create a Financial Plan with your team.

(7) Implement your plan.

Owning Responsibility

Resist the temptation to abdicate control or responsibility for your new found windfall. While it may seem easier at first to hand the funds over to someone or a group and say, “you take care of it”, in the long run, staying involved with your financial health is of paramount importance. Embrace this as an opportunity to learn in a new area.

Seek the advice of others with credentials and expertise, but stay in the decision making process. Use your common sense. Over time, you will be able sort out those you can trust and those whose advice is sound. Seek out and listen to the team you ultimately choose, but stay in the driver’s seat.

Money is like electricity; it can be a powerful source for good or for destruction. Exercise your good judgment. You can handle this if you take care and watch out for certain pitfalls.

Step Back

We recommend that our clients and friends do nothing for three to six months with their funds except put them in an interest bearing highly liquid vehicle. People who have earned money slowly over time have the time to adjust to their changing financial position. Give yourself the same privilege.

Windfall wealth comes with strong emotions. Sometimes we feel guilty, or have mixed feelings about the source of the windfall. Sometimes we have to face our own stereotypes and prejudices about people who have money, now that we do. Emotions and decisions about money are a lethal combination. Chill a little. Give yourself time for your emotions to adjust to your new situation.

Choose your Path

A good use of your “chill time” is to consider what is important in your life. Who do you want to be? How would you like to impact your world? Have you always wanted to quit working or does your work provide a meaningful sense of purpose and social resource for you? Have you wanted more time to serve a cause, help your children with college or return to school yourself?

Now is the time to envision the place you would like to serve in your life. These values should guide your plans for your windfall.

Take Stock of your True Financial Position

The “chill time” is also an excellent time to write out and assess your current financial condition.

List your assets: the amount in your bank accounts, brokerage account, IRA or other retirement accounts, and any real estate you may own.

Make a list of your debts, including credit card, student loan, and mortgage debts.

Go through your checkbook and credit card statement to list exactly how much you are spending, by category, if possible, to sustain your current lifestyle.

List your income, netting out social security, taxes, Medicare expenses, and contributions to retirement vehicles.

Most people find this to be an enlightening exercise and can help them set some immediate priorities. It often provides the reality check needed when facing a large sum of money.

Advisers and Gatekeepers

Assembling a team of advisers is particularly important as these will be the people who guide you through the management of your wealth. You can begin asking the wealthy people you know—your boss, the owner of your company, someone you may know through your place of worship, etc.—about advisers who they work with and trust.

​Most wealthy people hire advisers such as estate attorneys, wealth consultants, and investment or portfolio managers. Get a number of recommendations. Interview these people. Take your time to find people who both have a good professional reputation and who share your values and who you click with.

An investment manager will handle the investing of your assets for the long term to meet your objectives, whether they are for long term growth or income. The investment manager will be familiar with all asset classes, their risk/reward tradeoffs, and understand how they work together in your overall portfolio.

The portfolio manager should be able to explain this to you as he recommends the purchase of stocks, bonds, or other investment vehicles.

An estate planner or wealth consultant should guide you through the planning process to reflect your values and goals, help you ascertain them, recommend an overall plan, budget, will plan, and show you about vehicles like the various kinds of trusts, charitable vehicles, and insurance vehicles that would help you reach your goals with tax efficiency.

The wealth consultant should also be able to advise you on the various ways your assets can be protected from lawsuit, divorce, and other life challenges.

An estate attorney should review your plan and draw up the legal documents.

Your CPA can prepare the needed tax returns and forms to comply with federal and state regulations.

All professionals should coordinate with one another. The wealth consultant can orchestrate the coordination, but always keep you in the decision-making position.

Advisers can also serve as gatekeepers for your assets. Trusts can be set up that restrict the use of funds. Also, they can play the role of “bad guy” in declining requests for loans, hand-outs or funding “investment opportunities” that you do not really want or in which you cannot really afford to get involved.

In this capacity, they provide an excellent solution to a very common problem that most people with funds have: the urgent solicitations of family, friends, or charities who would like you to fund their pet projects.

An adviser can help you sort through the requests and speak on your behalf, if that would make you more comfortable. They may be able to steer you away from making some decisions that are purely emotional and might redound to your long term detriment.

Selecting your team with care requires time, referrals, patience, good questions, and good intuition.

The Plan

Your team will be able to run scenarios to let you know how long your funds will last at various spending rates, so you can prioritize your goals. They can project the funds you need to set aside for retirement, college, or other goals. They will make suggestions on how to best structure your funds to achieve your goals and protect your assets.

This is a good time to set a budget for charitable giving—both for organizations and for family and friends. This kind of plan will help you address solicitations.
Your investment plan will include how much income you need, how much risk you are willing to take for the return you need, and asset classes with which you are comfortable. A large investment plan can often take a year to implement, so you do not need to invest in everything at once.

Implementation

When you are comfortable with your plan and understand it and the trade-offs involved, it is time to implement it. Your advisers should guide you through this process.

​Problems

Now, let’s turn to some of the most common problems that accompany windfall wealth. On our radio show, Cynthia Kostas shared several stories of lottery winners who won millions and ended up on welfare within 10 years.

In her own practice she has observed five major causes of severe and unanticipated loss, which we detail below. One of the overarching vulnerabilities of people who come into money is that they often feel isolated.

They cannot easily share the challenges they face with their friends because their friends cannot really relate, often responding, “Yeah, I wish I had your problems”.

Feelings of isolation often push people to make decisions based on winning friends or approval or proving that they are still nice guys, though wealthy. Here again is where an objective and good adviser can help you sort out the reasons behind your decisions and gently remind you of the objectives, values and priorities you originally set out.

Pitfall #1: Overspending

Everyone has pent-up demand—a wish list—of what they would like to buy if they could afford it. Now is the time to enjoy a luxury that you have been thinking about, like a European vacation, new car, or swimming pool. Such dream items should definitely be included in your initial plan, or budget.

A problem occurs when people think that they are rich and therefore should live out their vision of how a rich person lives. The problem is that this vision is usually an illusion based on Hollywood.

Books like “The Millionaire Next Door” reveal that truly wealthy people live well beneath their means, investing for their future rather than living flamboyantly. Discern between needs and wants.

It is easy to get caught up in our consumer society that tells us things and experiences equate to happiness. In fact, spending is an addiction in our society of plenty. And, like any addiction you need more and more to get less and less satisfaction. This is a common trap into which many folks fall. Some solutions include:

• Consider what brings you satisfaction and what really brings joy into your life. Make a list. Most of the items cannot be bought. Revisit this list when considering your wish lists.

• Remind yourself that there will always be those who spend more than you and those who spend less than you. Living your priorities, not someone else’s is living with integrity.

• Remember God. Appeal to your higher being as you understand him, to guide your values and help you adjust with honor and integrity.

• Stay emotionally independent. Read and engage in activities that nourish and strengthen you. Nourish or engage your spirit. That is where happiness lies.

• Here again, it is your plan and your advisers that can keep you on track. Having taken stock of what you have and what you want to spend it on and how long it will last at different levels of spending provides the reality check that can help you avoid this pitfall.

Pitfall #2: Bad Investment Decisions

Bad investment decisions have been the ruin of many wealth windfalls. People like to talk about their investments and they mostly talk about the good ones. So when talking to successful people, one gets the idea that they are all great investors and it is easy.

Warren Buffet is one of the few investors willing to talk about failures he has experienced because he is confident and wants to learn from them. That is what makes him a good investor.

Most businessmen and successful investors draw on the wealth of 20-30 years of mistakes from which they have learned to get where they are today. Always remember you could be wrong and find investment counselors to back up your position.

Now that you are suddenly wealthy is not the time to start an investment learning curve. Find good people as advisers and invest conservatively.

Pitfall #3: Solicitations from Friends and Relatives

Many times family members will come to you with what they consider to be great business ideas that they have been wanting to try or with legitimate medical needs or financial difficulties such as debt that can be solved with a loan from you. This is a heart-wrenching dilemma because they touch us on a very emotional level.

We suggest that you carefully examine the need that is being presented to you.

Choose which people you consider to be in your innermost circle. Budget some percentage of your windfall to help such cases and stick to the budget so that your own goals do not get subverted by the troubles of loved ones. Family issues are complicated and multi-layered. Consider the following:

• Set aside the dollar amount or percentage of your windfall that you are willing to spend on family members in true need. Stay disciplined to this figure.

• If possible, do not share the news of your windfall with others.

• Do not get caught in the trap of trying to make all things equal. You cannot equalize financial aid to family members any more that you can equalize love.

• Differentiate another’s wants from needs from emergencies. If a relative or friend has an ongoing problem making ends meet, paying a bill will not help them in the long run. They need to make lifestyle adjustments to match their income. This is different from a sudden accident that leads to sudden unemployment.

• Make clear the limits of your help from the beginning.

• Help relatives find other solutions to their dilemmas in addition to or instead of money. What other sources of help are available for their situation? Can you help them budget or find social services?

• Draw a tight circle around your definition of friends that you would include with family members as being worthy of your financial assistance.

• Remember that getting someone in further debt (to you) often is not doing them any favors. A one-time infusion of money often does not provide the solution, but is only a band aid. When the money cannot be paid, or is not paid, relationships are strained, often irreparably.

• Evaluate any business that you are asked to invest in as you would any other investment. One out of every three start up businesses fails within three years. Seek evaluation of the business plan (be sure there is one!) from a professional.

• Others may not wish to borrow money, but to control your windfall by controlling access to you from friends and advisers. Sometimes they may wish to create a feeling that you are dependent on them. Or, they may want to gain social status through association with you. (“He or she will listen only to me.”)

Beware of anyone who tries to convince you that everyone else who might advise you is an imbecile or a cheat and that they are the only ones that you can trust.

• Of course we all want to help our loved ones when they are in need. All people have emergencies throughout the course of their lives. Being aware of the pitfalls can keep your good intentions from going sour

Pitfall #4: Solicitations from Charities

You will become a target for charitable appeals from organizations that are very professional in their approach. Often, development professionals will build friendships with you with this goal in mind.

You will find these friendships flattering and appealing, so your emotions will be involved, and your attachment to attention will influence you. Of course there will be causes about which you feel passionate. Many of these causes are worthy of your support. Consider the following:

• Prioritize which causes are most important to you. Who will you support this year and next year?

• Determine what dollar amount or what percentage of your income or wealth you are able to give away and still remain a responsible steward to yourself and your family.

• Set criteria for a charitable organization to merit your money. What percentage of their budget goes to the actual cause and what goes to administrative and solicitation costs? Will they work with you on a particular cause you are passionate about, like research for a particular cause, or a building for a particular purpose? Will they remain accountable to you, the donor, for the use of your money? Are they stable? Do they have a long-standing record of keeping their word on the use of donor’s money?

• Stay disciplined to this predetermined plan and criteria.

• Learn to say no. Use the phrase, “this does not fit into my charitable giving plan at this time.”

Pitfall #5: Bad Habits

The other day on the MaxOut Savings Show, wealth consultant Cynthia Kostas shared many stories of lottery winners losing their windfall to gambling habits and drug and alcohol use.

Part of the emotional fallout of windfall wealth is that it brings up issues that are painful for us. People anesthetize their discomfort with drugs or the adrenaline rush of gambling or other habits. This happens so often that it bears mentioning in this column.

Being aware is part of the battle. Seek counseling or other means to support you through the tough issues that sudden wealth often makes you face.

For many people, a financial windfall has been more of a curse than a blessing.

Taking care, thinking through your own motivations and those of others, and seeking professional and experienced guides can help you navigate a shift in financial circumstances to enhance your life.
 
(Dinar Recaps Note: This post is for informational purposes only.  It is not legal, tax or investment advice.  Dinar Recaps advises that everyone should do their own due diligence and seek local Professional tax, legal and/or investment advisers.)

Are You Living Beyond Your Means?

Are You Living Beyond Your Means? The Warning Signs to Watch For
Post From Invested Wallet

Posted in Dinar Recaps Archives on 7/9/2019

In our consumer and debt-heavy society, living beyond your means is all-too-common. And unfortunately for us, it can put us in tricky financial situations.

Considering how easy it is to impulse buy online and use credit cards we end up spending more than we make.

This process has become so normalized, that we overlook the financial dangers and live a lifestyle that can be too expensive for our own good.

While it may seem okay because so many are living beyond their means, it shouldn’t mean you need to endanger your own financial well-being.

Below are a few warning signs you should watch to ensure you are not living beyond your means.

You Notice You are Living Paycheck to Paycheck

78% of full-time workers said they live paycheck to paycheck (CNBC)

Now, this might not signal right away that you are living beyond your means. You might be underpaid, living in an expensive area, or have some other financial circumstances putting you in this situation.

However, a lot of times you may be upgrading your lifestyle or just overspending that causes you to barely squeak by every pay period.

Take a step back, look at your paycheck and see where your money is going every week. You may discover that there are some cutbacks you can do to help you get out of the paycheck to paycheck slump.

I’ve been there before and it’s not fun. Even though I was only making $36,000/year at the time, had I not been overspending on my lifestyle that situation would have been different.

You Have Little Saved or No Emergency Fund

One thing I roll my eyes to in most personal finance articles is when they talk about having an emergency fund. We all should know it’s important to have one and we all do typically want to save money.

To continue reading, please go to the original article at

https://investedwallet.com/living-beyond-your-means/

The Velocity of Money by Virginia Gentleman

From Recaps Archives:  Re-posted for our newest members!!!

From Virginia Gentleman   VELOCITY OF MONEY

I know I don't have to state the obvious...GO HAVE FUN WITH SOME OF YOUR NEW FOUND WEALTH. However, I would like to pass on some words of wisdom.

As we get ready to punch it in, please remember to act like you've been in the End Zone before. Take a deep breath and exhale slowly as you collect yourself with the full intentions of acting with class and integrity.

Respectful treatment of others will be an inherent responsibility of your new status, as well as respectful treatment of your money and assets. You owe this to yourself, your family, your neighbors, and your heirs.

Don't hoard it, and on the other hand, don't waste it or give it all away. Save, invest, and spend wisely.

One of the single best things you can do with a small portion, and in effect a very small portion, is to be more generous over at least the next 18-24 months (or the longer) spending your money locally. What do I mean? The answer is the ‘VELOCITY OF MONEY’.
 
The Velocity of Money is a fairly simple financial concept where a ‘community’ can be positively impacted by the way a group of individuals increase the spending of their money in their economy, and in turn, the ripple effect of that spending as it accelerates throughout that same economy.

It can be local, regional, national, and even global. Velocity of money is most effective in a smaller market with the smaller more predictive population of a local economy, and it isn’t just effective, it is fun for the people spending their increased earnings, or in this case, significant returns on an investment. Yep, that is you!
 
Anyone who has ever lived in a small town or Suburban area where a new large company has come in and opened a large facility and hired a large amount of employees has witnessed this phenomenon.

Money gets pumped in and spending from increased disposable income begins to spread out through the entire community finding its way into the wallets of all the inhabitants.

The goal is to spend your money at local establishments on services, appliances, home improvements, food, entertainment, and such.

More precisely on things like tipping an extra 5-15 percent, using a valet to park at the local steakhouse (tipping extra), go hear a local band (put money in the tip jar), buy cheese or pork or beef at a farmers market instead of 2 month old shrink wrapped processed cheese from a Big Box store or grocer, get an extra manicure or haircut (tipping extra!), get your car repaired at the mechanic down that side road instead of Walmart or the Dealer.

Buy those nicer hiking boots ‘Made In America’, get your computer cleaned up by that geek in the shop she set up in the old 7-11 building, buy your lumber from the local milled lumber supplier not the National Chain hardware store, deal with a local community bank or credit union with a substantial portion of your money… you get it now right.

Think about it. You may be spending either the same amount or perhaps an extra 10-20%, and you’re getting the same things… OFTEN WITH THE BONUS OF MUCH HIGHER QUALITY PRODUCTS WHILE GETTING TO KNOW YOUR NEIGHBORS ON MAIN STREET!!!
 
I personally look forward to trying some of the world’s best Craft Breweries in Richmond (tipping generously) and touring some of Virginia’s wineries (tipping generously)… jealous of you Kentucky folks that can tour the best ‘Bourbon’ distilleries on the planet, or you ‘Whiskey’ lovers in Tennessee just outside of Fayetteville down the Admiral Frank B Kelso highway or those in Nashville who can wander in a restaurant and catch a ‘local’ band like Kenny Chesney, lol. Believe it!
 
By doing this the dominoes of positive change begin to fall within your local community. The ripple effect is that the waiters, mechanics, manicurists, hairstylists, valet, carpenter, plumber, artisan cheesemaker, farmer, and others in your community begin to make more money.

And what do they do? They go out and spend more, tip more, consume more. Your local tax authority makes more sales tax revenue and spends it on improvements.

I’m in America, but the Velocity of Money is true in Canada, Great Britain, Iraq, Vietnam, or anywhere. And guess what? Since this is fun stuff you’ll be doing while spending your hard earned money, you will also be wearing a BIG smile.

There is nothing more infectious and quick to spread goodwill than passing on your smile accompanied by kind words. So be wise with your prosperity and have some fun …LOCALLY.

Even pay attention to those companies being loyal corporate citizens to us through the new Trump incentives to stay and manufacture here, and be loyal to them.
 
The fruit you bear will fall from your tree and spread its seeds…

Live and grow in the nine fruits of the Spirit and you will sow the nine fruits…

Love, Joy, Peace, Patience, Kindness, Goodness, Gentleness, Faithfulness, and Self-Control.
 
Take care –Virginia Gentleman

5 Key Lessons Learned in 25 Years of Retirement Planning

5 Key Lessons Learned in 25 Years of Retirement Planning

Smart Insights From Professional Advisers

By Nino Pavan, Investment Adviser, CFP | Financial Designs 7-5-19

Posted in Dinar Recaps Archives on 7/9/2019

After witnessing the accomplishments that retirement savers have achieved, and the mistakes they've made, a few helpful truths become clear.

Like most financial advisers, I’ve spent (and still spend) a good share of my time building on the technical knowledge I need to do my job. The financial industry is always changing, and it’s important to stay on top of new theories, trends and tools.

But after 25 years of working with retirees and pre-retirees, I’ve learned that experience — and a lot of listening — can be every bit as valuable. It helps me to ask the right questions, keep an eye out for potential red flags, and to understand (as well as predict) certain emotions and behaviors.

Helping clients plan for a successful retirement means sharing the lessons I’ve learned during that time. Here are five lessons that stand out:

Don’t Underestimate How Much Income You’ll Need In Retirement

It’s amazing how many people who are in their 50s and 60s don’t maintain a budget or a good idea of how much they spend each month. I get it — it’s tough to list every expense each day to determine where your money is going. But it is possible to take a simpler, more top-down approach.

Start by looking at your earnings minus taxes each month. Then subtract whatever you’re saving in investment and/or savings accounts, or even in a shoebox under the bed. The end result is what you’re spending.

It’s easy to overlook costs that come directly out of your monthly paycheck right now, including health and life insurance or other bills on autopay. And many people don’t count the money they’re giving to their kids, grandkids, church or charities.

Other expenses can just slip by, such as lunches with co-workers or a new pair of shoes. But you’ll likely have similar expenses in retirement — or maybe some new ones if you plan to travel or pursue a hobby. Building a reliable replacement “paycheck” is critical to retirement success, and the planning starts with knowing what you’re spending.

Consider Dipping A Toe Into The Retirement Waters Instead Of Diving In Headfirst

To continue reading, please go to the original article here:

https://www.kiplinger.com/article/retirement/T037-C032-S014-5-key-lessons-from-25-years-of-retirement-planning.html

Gratitude is More Than Attitude

Gratitude is More Than Attitude

Posted from Dinar Recaps Archives on 12/25/2018

Gratitude is More Than Attitude
By Lisa White

Gratitude…it’s one of the words that we use over and over to express our appreciation for what we have in our lives whether it’s tangible or intangible. We are taught to have an “attitude of gratitude” as a way of good living.

To be seen as not grateful is to be seen as selfish and greedy. Feeling gratitude makes us happy! It sends positive energy into the world. Who wouldn’t want to be in an “attitude of gratitude”?

But, what if gratitude was more than just an attitude? What if gratitude was just the beginning of a mindset of living gratefully?

It’s one thing to express gratitude. It’s another to “live” gratitude.

What does living in gratitude mean?

​Well, to me, living in true gratitude is a constant mindset of being grateful and then showing through our actions that we are willing to nurture, protect and be stewards of that for which we are grateful.

Gratitude means nothing if we express thanks one minute and then turn around and damage, hurt or ruin what we’ve been given.

Being grateful means taking actions and changing behaviors to live the “promise of our thanks”.

​What does that look like? Well, ask yourself these questions.

If you are grateful for your friends and family, what actions do you take on a daily basis to not judge or criticize? Do you let bygones be bygones? Do you still have expectations about the way they “should” be?

If you are grateful for the air we breathe, then what do you do to make sure that it stays clean? Do you protest the forms of energy that pollute our air? Do you drive everywhere instead of taking public transit, walking or riding a bike when possible?

To continue reading, please go to the original article at

https://omtimes.com/2014/01/gratitude-attitude/

5 Lies You’ve Been Told About Generational Wealth

5 Lies You’ve Been Told About Generational Wealth
By Pavithra Mohan

From the Recaps Archives, originally posted on 7/20/2019

From TNT --  Ify: This Article explains why RayRen continues to say NOT to gift large monies but to Educate your children, grandchildren... Article on Generational Wealth:

Here’s what you have wrong about people who inherit money.
5 Lies You’ve Been Told About Generational Wealth

The markers of generational wealth are manifold, from the promise of a good education to the security of homeownership. Wealth begets further wealth, but not always through inheritance of assets.

“Much of the transmission of wealth to the next generation goes through these earlier life processes, such as supporting children’s education, supporting their ability to purchase a home, or to get married,” researcher Fabian Pfeffer wrote in a recent study at the University of Michigan. “All of these—education, homeownership, marriage—in turn help you accumulate wealth.”

But the extent to which family money helps future generations retain and build on their wealth—or acquire financial literacy—is less marked than you might imagine. Here are some of the commonly held misconceptions about the beneficiaries of generational wealth.

1. Their Wealth Lasts Many Generations

We don’t have to look further than one Donald Trump to see how wealth can trickle down and set up future generations for success. But generational wealth is actually harder to maintain than America’s richest families might lead you to believe: About 70% of wealthy families lose their wealth by the second generation, and 90% do by the following generation.

One reason that happens is the next generation may not be equipped to manage the money they inherit. But it’s also that family wealth can be diluted as it is divided amongst children, especially if each has a different stance on how to invest or manage the family finances. (Think of the family jockeying on Succession.)

Some financial experts even recommend that—not unlike businesses—families come up with a “mission statement” to establish financial values and goals, in an effort to preserve wealth across future generations. 

2. Their Parents Talk To Them About Money

You might think parents with money share their financial know-how with their offspring. But that’s not necessarily the case. “Some parents don’t want their kids to feel like they have a huge landing pad or that they may not need to work,” says Emily Green, a financial adviser at Sallie Krawcheck‘s investment platform, Ellevest.

“A lot of times, they don’t talk to them about money at all.” That can mean parents not only don’t disclose how much their kids stand to inherit but also don’t necessarily offer guidance on how they should spend and invest their money.

“I find that a lot of them get to their thirties, forties, maybe even fifties and still don’t really know anything about money,” Green says. Sometimes, even financial advisers make assumptions about people who have money—presuming, for example, that they are well-versed in investing. In truth, the folks who inherit tens of millions of dollars may know less about money, and especially investing, than someone who saved a million dollars.

To continue reading, please go to the original article at

5 lies you’ve been told about generational wealth

.The Key To Successful Investing Is Patience

The Key To Successful Investing Is Patience.
Tanza Loudenback 

​The CEO of a $13 billion investment firm says there's one lesson everyone has to master to build wealth: patienceThe Key To Successful Investing Is Patience

Compound interest is the most important concept to understand about money, Mellody Hobson said.

Mellody Hobson, a co-CEO of Ariel Investments, told the New York Times that the key to successful investing is patience.

Patience leads to compound interest, which is the most important concept to understand about money, Hobson said.

She cited Warren Buffett as an example of a patient investor. The CEO of Berkshire Hathaway once said, "There is nothing wrong with getting rich slowly.".

"Good things come to those who wait" is more than an old English proverb. In the investing world, it's regarded by many as the rulebook for success.

In a recent interview with the New York Times, Mellody Hobson, a co-CEO of Ariel Investments, a Chicago-based investment firm with nearly $13 billion in assets under management, said patience is one of the key ingredients to building wealth.

In fact, it's an integral part of the investing approach at Ariel Investments, where Hobson has worked for nearly 28 years, the Times' David Gelles reported.
 
"We talk about long-term patient investing, and that idea that slow and steady does win the race, that time can be your best friend when it comes to investing," Hobson told Gelles. "That's why we have a turtle as a logo at Ariel."

Hobson, who also serves on the boards of JPMorgan Chase and Starbucks, said "it's never too late" to get started investing, but regardless of where you are and who you are, the same lessons apply.

To continue reading, please go to the original article here:

https://www.businessinsider.com/ariel-investments-ceo-mellody-hobson-build-wealth-patience -advice-2019-7

.Don’t Worry; Be Resilient Reduce Fragility & Vulnerability

Don’t Worry; Be Resilient
Reduce Fragility & Vulnerability
By  Charles Hugh Smith

At some point, absorbing more information about the unsustainability of modern society yields diminishing returns. It becomes emotionally draining and thus counterproductive.

Part of this exhaustion results from recognizing our powerlessness within the Status Quo, where independent thinking and structural innovation are intentionally winnowed out as threats to existing institutions and industries.

Another part arises from the burden of knowing that the supposedly permanent Status Quo is far more vulnerable than generally believed. I have described the psychology of knowing what lies ahead in The Burden of Knowing.

A related factor that is never publicly discussed is the negative impact on our mental health of all the propaganda that we are force-fed by the Mainstream Media (MSM). 

When truth is incrementally undermined by massaged data and behind-the-façade manipulation, we lose faith in key State and media institutions and suffer from a propaganda-induced disconnect between what we see and what is reported as fact.

These 'burdens of knowing' can diminish the small but real joys of the present: work we like, a home-cooked meal, and time spent with our friends and family.

As a result, many smart, well-informed people consciously refuse to dwell on our systemic problems because doing so “is a downer.” These folks hold the perspective that anxiety about the future should not get in the way of the simple pleasures of living.

This attitude can be described as “don’t worry; be happy.” And it certainly makes sense when life is still comfortable and enjoyable.

​But the philosophy of “thinking about the future is a downer, so I live in the present” ultimately rests on a false confidence that the future will take care of itself, regardless of what happens to the large-scale systems of State, finance, and resources.

It overlooks the reality that not all responses to instability or devolution are equally successful. Those who are totally dependent on the Central State and speculation-based markets will have a much more difficult time maintaining their "happy” view if the systems they depend on erode or fail.

Perhaps the wiser response is “don’t worry; be resilient.”  The resilient household can be happy not only in the present surplus of energy, entitlements, goods, and services, but can also thrive in a future where the current surplus of cash, credit, and speculative gains has dried up.   
What is Resilience?

What is resilience?  A dictionary definition is “an ability to recover from or adjust easily to misfortune or change.” In other words, it is on the other end of the response spectrum from fragility, brittleness, and vulnerability.

In terms of individual psychology, resilience can be characterized as being able to roll with the punches, maintaining a positive attitude through difficult times, and focusing on developing successful responses to misfortunes and challenges.

American culture extols individual resilience, and we are taught to think that the individual can overcome anything and everything with the right attitude. But if the Status Quo is vulnerable to disruption on a systemic level, then it is prudent to think of resilience in a systemic way as well.
 

To continue reading, please go to the original article here:

https://www.peakprosperity.com/dont-worry-be-resilient/

.Why Lottery Winners Crash After A Big Win

Why Lottery Winners Crash After A Big Win

CHICAGO, IL - NOVEMBER 28: A Powerball lotter...What happens when your “dreams” come true? We’re always told to be careful what we wish for, and for Powerball lottery winner “Wild” Willie Seeley and his wife Nancy, this advice couldn’t be more appropriate.

The Seeleys are calling their $3.8 million win a “curse.” Their complaints? They have been bombarded by the media for interviews, and family members – many they’ve never heard of — have hit them up for loans and financial favors.

“There are days I wish we were back to just getting paid every two weeks,” Willie Seeley confessed in an NBC News interview.

There is nothing unusual about their complaints. This is what commonly happens with lottery winners, and often, with other recipients of sudden wealth from lawsuits, sports contracts or even inheritances.

But don’t count out the Seeleys just yet. There is hope they won’t face the same fate as $315 million Powerball winner Andrew “Jack” Whittaker who said “I wish I’d torn that ticket up,” after being robbed, losing his granddaughter to a drug overdose, being sued, and finding respite from the pressure by drinking, attending strip clubs and gambling.

As a sudden wealth financial advisor for over 15 years, I’ve had the chance to work with many clients who have received a windfall, and I’ve noticed there are predictable patterns – patterns of thinking and behaving that can explain how a multimillion dollar lottery winner can call her money a curse just a month after winning.

Immediately before or right after a sudden wealth event such as winning the lottery, many clients experience an almost out-of-body feeling. I refer to this as the honeymoon stage of sudden wealth.

To continue reading, please go to the original article at
http://www.forbes.com/sites/robertpagliarini/2013/12/11/5-rules-if-you-play-an-office-lottery-pool/

.What Is a Payable on Death Account

From the Recaps Archives originally posted on 7/25/2019

What Is a Payable on Death Account (and Do I Still Need a Will if I Have One)?
Jessica Sillers Jul 16, 2019

When you login to your bank account online, you might notice an option to choose a beneficiary. Generally, this is someone who’d inherit your bank account after your death. The official name is a “payable on death” or POD account.

Easy enough. Enter your beneficiary’s name and contact info: Done. So, if you go this route, do you still need a will? Isn’t it easier to just type in your beneficiary’s name and be done with it?

The short answer is that, when done right, most people would benefit from both a payable on death designation and a last will and testament. POD accounts are better for quick cash for people handling your final affairs or counting on money for bills, while your will lets you get into clearer detail about the more nuanced aspects of settling your estate.

What Is a ‘Payable on Death’ or ‘Transfer on Death’ Account?

POD and TOD stand for “payable on death” and “transfer on death,” respectively. (TOD would be more likely to apply to assets such as a house.)

Most types of financial accounts—such as savings and checking accounts, CDs and investment account—let you name a POD beneficiary.

If you die, this person would inherit the money without going through probate (the often-lengthy process of executing a will). Generally, all he or should would need is ID and a copy of the death certificate. That’s generally ready in a matter of days to a few weeks after a death.

TOD is somewhat less common than POD, but some states will let you designate someone to inherit property like a house outside of probate. To set this up, you’d need to prepare a special deed and record it with the appropriate state or county office.

You can set up a POD beneficiary for a joint account with your spouse, as well. If you die, the account would go to your spouse first, and then to the POD beneficiaries after your spouse’s death.

You can also name multiple POD beneficiaries. Talk to an advisor at your bank if you want to assign a different proportion other than an even split. Ditto if you want to choose an alternate beneficiary in case your primary beneficiary is not around. It’s also worth searching your state’s law on whether a POD account would still pass to your (ex-)spouse if you divorce.

To continue reading, please go to the original article at
https://meetfabric.com/blog/payable-on-death-accounts

Dinar a Scam???????

From Recaps Archives

Dinar a scam?????

We've all heard investing in the dinar is a scam:

If there is a scam going on, it is the dream stealers trying to rob you of hope.

If there is a scam going on, it's the US govt, Iraqi govt and others holding back info ... delaying ... the inevitable. But post RI you'll be praised for your insight into this investment by the nay-sayers. (Hindsite investors).

You want an example of a scam? Play the lottery. The odds of winning are astronomically against you. That scam plays on the hopes of the un-informed, or desperate, seeking great rewards without understanding the odds. Governments make unimaginable dollars preying on lottery ticket buyers.

Whereas investing in the dinar, we can attempt to track international politics and become somewhat educated on our investment. We are talking the currency of a resource rich country torn by a former dictatorship, war and civil unrest. In time, this will RI/RV happen. Maybe not when we expect it, and maybe not in the manner we expect it, but the value of the Iraqi dinar will rise.

 And eventually, we will see our financial rewards. But with the lottery, as those little balls keep tumbling, the odds of winning never get any better, and you never gain any additional insight on what numbers to pick, and you have to keep buying more tickets for a fresh "chance to win."

We've all heard it's risky:

Bunk. The most you can lose in dollars, is the amount invested, and that is only if you actually lose your dinar. That is right ... if you misplace the currency. After all, most currency sales sites have a buy-back policy, right?

Does your financial planner or 401K manager have such a policy? 'Fraid not.

You want to talk risky? Buy into the stock market, without educating yourself. And what can you really learn from a prospectus? And remember, most financial planners are commissioned salespersons. Ask them if they make their living on their commissions, or on the results of the products they invest their clients money into. You'll be shocked by this scam.

Let's say you timed the market well, and bout General Dynamics a few years ago at about $35/share. And now it is about double that. Forget trading fees, ... you doubled. So if you had purchased 5 shares, for $175, you would now have ~$350. Remember these numbers. Double your money in the stock market ... but limited realization in terms of dollars gained, but the limited number of dollars invested initially. 100% rate of return in one year.

How about SSI? Counting on this for retirement supplement, now that's another risky government scam. 'Nuff said.

\How about Real Estate? Let's compare it to purchasing dinar. Build a spec house for 200,000 and try to market it for 300,000. That is a 2:1 ratio. Or buy a foreclosure house. Say EFMV $150,000 purchased at auction for $100,000, plus holding costs and closing costs, so max realized gain is maybe $50,000 - again a 2:1 ratio.

But you may hold longer than anticipated, (more expense) and lower your selling price and only make $25,000 - now you’re at a ratio of say 5:1. That is saying that for every $5 invested, you only made $1. If in the example, you are upside down in real estate, you've invested 150,000 and got out at 125,000. Now you have lost $25,000. Now compare that to the dinar. In the dinar, you only risk what you invest, and to that I take you back to buy-back policies. Further, you did not have to start with a $100,000 investment to try to gain $50,000.

How about buying an estate property below EFMV, and needing to sit on it for three years before reselling it. Even if a profit is gained, the rate of return annualized needs to be divided by three. And was there a positive or a negative cash flow on that property for the three years you held it? Again, compare that to the dinar. The only argument against the dinar here is that the amount invested was stagnant while you held it.

And if you had the amount of your dinar purchase in a CD right now, could you get 2% return? I doubt it. And to get 2% you're probably looking at a 5 year hold. 'Nuff said.

We've all heard negative news soundbites:

The few soundbites I've heard were so trite, they were laughable. That's not journalism ... it's sensationalism, not credible research. It's been the blind leading the blind.

What about how long we have to wait for the RI to exchange.

If you are in an employer based retirement system, how long do you have to work, in terms of years, before you become retirement eligible? And what kind of return do you get? Do you know how to track it? Have you done your homework there? Now that might be a risky investment ... a lifetime.

Oh, you don't have an employer based retirement system? Okay. Then look into your Roth or traditional IRA or other "paper assets" in your portfolio. What did you say? You don't have a portfolio? Or did I just hear you say your portfolio was cut in half in the past two years, as well as your annual earnings? Wow. That was a risky investment, ... very risky.

We've all heard it's an pyramid scheme:

Go to work tomorrow to your JOB (just over broke). I'm all for capitalism. I believe in rewarding those that take the calculated risks, those that create jobs for others, those that stabilize local economies. But when you look at the company ladder, well, there is your pyramid at it's best.

There are the nay-sayers that say the only ones making money on the dinar are the sellers, Well, time will reveal the truth on that point of contention.

So let's talk dinar.

100,000 dinar mailed overnight from Some Currency sellers was about $140, + 24 UPS fee, + $1 for the money order = $165 invested. This is a relatively small amount to invest in anything.

Presently the rate is about $1=1170 IQD, or $0.0008547/dinar (less than 1/10th cent per dinar). But with shipping, etc, ~= $0.000165 (a triffle above 1/10th cent per dinar.) So we'll call it $0.001 = 1/10th cent per dinar.

If/when there is an Re-V/I/D, look at the numbers. We've heard lows of 1IQD at $0.86 to highs of $3.86. For easy math, I'm just using RV at 1 IQD = $1. That means you $165 investment is now worth $100,000, pretax. Okay, you'll have some expense to exchange ... minimal in big scheme, but may take your total investment to say $500. So you turn $500 into $99,500 (pretax).

You did not have to risk investing 1,000,000 to make a potential 100,000, or $125,000 to make $25,000.
. Better yet, you were not excluded from the opportunity to make this $100,000 because you lacked the $1,000,000 in cash or credit to invest.

And if the increase in the dinar on the currency exchange boards is a gradual float, and not a spike from an RI (not saying this is likely) you will have to decide for yourself when to cash in. But in this scenario, all it needs to do is increase to 1 IQD = 1 penny, and you have a ten fold return on investment, grossing $1000 on a $165 investment. Have your financial planner or realtor or banker deliver that return! Not gonna happen.

Still skeptical? Stay with the gradual float. At a dime, cash in on 25,000 dinar note. Gross $2500 - $165 + fees and tax so say you clear $2000 How is that for a rate of return? Initial investment of $165, net $2000, but n0pot done yet ... still holding 75,000 IQD and you're "playing with house money." The rate of return calculated on any gain, is infinite ... because you already made more than your initial investment on the first cashout.

 Now who cares if you have to wait a few years for a float to reach $3.00+. So $3.22 x 75,000IGD = $241,500 (pretax) is pure profit. Understand i am not an advocate of a gradual float, and favor an RI, but wantedd to include it in this post, for the negative nellies to chew on as a worst case scenario. I'll take that return!

Compare the dinar to CDs. No comparison.

Compare the dinar to IRAs/MFs/stocks/bonds, etc. No comparison

Compare the dinar to the lottery. No comparison. How can I say that? In the lottery, the numbers predicate the number of winners, typically one, if any per drawing. But with the dinar, all that exchange are winners. Thus, again I say, no comparison.

Compare the dinar to real estate. I've had great returns and can even mathematically show you infinite rates of return, but for the vast majority of people, real estate transactions returns vs the returns on the dinar investment, well ... no comparison.

 Further, how many across the globe are in trouble financially as we speak, because they thought their home was their biggest asset, only to now realize that their mortgage and over-leveraging is eating them up, both financially, and emotionally.

Compare the dinar to pension plans. Took you 20, 25, 30, 35, etc years of your life, and you can only receive pension payments as alloted, under someone elses discression. So, ... no comparison.

I'll conclude with these thoughts.

For the negative nellies that say you were scammed when you bought into the dinar investment, with the $165 they did not invest, they may have purchased them something else.

Lets say they bought dinner and a movie for two, or some clothes they'll only wear a few times ... So when your investment is eventually worth (Example only) $99,500 pretax, I hope they enjoyed the dinner, movie and clothes that now cost them ~ $99,500.

And I'm not done yet. Let's say you pay your taxes and tithes, and then pay off your remaining mortgage, freeing up that $650/mo payment for the next 180 months of your life. Look at how much "not buying dinar" now cost the negative nellies.

So I'm willing to give up a night out with my wife and new shoes. In fact, the reward potential in my household said ... what else can we postpone pre=RI, ... to not have to postpone life any longer?

If you followed all the way through this post, thanks for reading. I needed to vent.

I needed to take the frustrations of listening to negative vibes and multiply that with negative reasoning, to produce a positive outcome.

Anonymous