DINARRECAPS8 12/10/24 DINARRECAPS8 12/10/24

What Does It Mean To Have A Plan B?

Notes From the Field By James Hickman (Simon Black) December 10, 2024

What does it really mean to have a Plan B— especially these days?

We’ve used the term Plan B for almost the entire 15 years since I started this business in 2009.

Back then the national debt was really starting to become a major problem. The Federal Reserve was printing trillions of dollars to bail out irresponsible bankers. The economy was on the ropes after the Global Financial Crisis.

Notes From the Field By James Hickman (Simon Black) December 10, 2024

What does it really mean to have a Plan B— especially these days?

We’ve used the term Plan B for almost the entire 15 years since I started this business in 2009.

Plus a guy who told business owners, “You didn’t build that,” had just become President of the United States— and then bizarrely awarded the Nobel Peace Prize.

So the need for a “Plan B” seemed pretty obvious.

Today there is a lot more reason to be optimistic. There’s people coming to power that want to take a wrecking ball to the rot, corruption, and inefficiency that has been plaguing the country for far too long.

Frankly, I’m rooting for them. I’m even willing to pitch in and help. To be frank, I’m not comfortable with a world where China is the dominant superpower.

And there certainly seems to be a real opportunity right now to get the country back on track.

Let’s not be naive though. There are still serious challenges ahead. And the people coming to power have a very narrow window to get things back on track.

But we haven’t had this much reason to be optimistic in quite a while.

This isn’t just about an election or single individual, but rather a clear sign from the entire country, sick and tired of being lectured by out of touch “experts.”

Voters practically demanded a return to sanity and prosperity, even if it means dismantling large chunks of a broken system.

In today’s podcast, we talk about what it really means to have a Plan B in this kind of environment, where there’s reason to be optimistic, yet major challenges remain.

This, after all, is the entire point of a Plan B; to put yourself in a position of strength, and take advantage of great opportunities, while hedging clear and obvious risks.

We talk about that a lot in today’s episode.

We actually start with our CEO Viktorija, fresh off of a Total Access trip to El Salvador, telling us about the VIP treatment our group received from senior levels in both the public and private sector.

Then we transition into things that America needs to get right in short order. And the consequences if this doesn’t happen.

We then discuss the concept of a Plan B, versus having a dangerous “bunker mentality”, and how to think about hedging those risks, both in terms of investments, as well as non-financial solutions.

One of the key ideas is taking steps that make sense, regardless of what might or might not happen int he future. And one example of this is building strong relationships with people who share your values. That’s the whole idea of what “community” is supposed to be.

And this is exactly the type of community that we have developed with our Total Access group.

There are incredible VIP trips, exclusive investment conferences, compelling private investment opportunities, in-depth research, world class discounts, and a whole lot more.

But ultimately, the thing we are most proud of is the community and camaraderie among members.

That is consistently what our Total Access members rate as the biggest benefit to our organization. Many say they have found their tribe.

We usually keep membership closed, and only open up enrollment a few times each year.

To your freedom, James Hickman Co-Founder, Schiff Sovereign LLC

We are doing that right now, and you can check out more about Total Access here.

https://www.schiffsovereign.com/trends/plan_b-151869/

DINARRECAPS8 12/10/24 DINARRECAPS8 12/10/24

What Is A SIM Swap Attack & How You Can Protect Yourself

California man says he lost $38,000 — money meant for his mom — to a SIM swap scam. Here's how you can protect yourself

Danielle Antosz Mon, December 9, 2024 Moneywise

Justin Chan of Carlsbad, California, says a hacker drained $38,000 from his bank account after his phone number was compromised in a SIM swapping scam — and he’s not sure he’ll get the money back.

“This could happen to anybody,” he told ABC 10 News in a story broadcast Nov. 25.

What Is A SIM Swap Attack & How You Can Protect Yourself

California man says he lost $38,000 — money meant for his mom — to a SIM swap scam. Here's how you can protect yourself

Danielle Antosz Mon, December 9, 2024 Moneywise

“This could happen to anybody,” he told ABC 10 News in a story broadcast Nov. 25.

One night in September, Chan says he started receiving odd notifications on his phone and realized it was no longer connected to his cellular network. There were no bars and he was unable to send or receive calls. He now believes he was a victim of SIM swapping, a scam in which criminals take over your phone number.

Access to his cell service wasn’t the only thing Chan says he lost. A letter shared with ABC 10 News shows three wire transfers totaling $38,000 from a Bank of America account.

“I’ve never wired money out of Bank of America,” he said. “It’s just been money that’s been sitting there waiting for my mom to use as rent, as funds, as food, as utility payments.”

The bank initially denied his fraud claim, Chan says, and he’s worried he may never be able to recover the funds.

What Is A SIM Swap Attack?

A SIM swap is a type of fraud where scammers trick a mobile carrier into transferring a victim’s phone number to a device they control. This can be done by calling the company and impersonating the victim, which Chan claims happened to him.

“I told them that, ‘This is not me. Why did you switch the phone line over?’ And they basically said, ‘We have verification.’ And I asked them, ‘What kind of verification did you have?’ And they said, ‘We had the last four digits of your credit card.’ And I thought, ‘That was not me, and why would you do that?’” Chan said.

Once fraudsters gain control of a person’s phone number, they can intercept calls and texts, including two-factor authentication codes, which can give them access to a victim’s financial accounts. This scam often coincides with gathering a victim's personal details, which are used to help gain access to accounts.

DINARRECAPS8 12/9/24 DINARRECAPS8 12/9/24

6 Financial Moves You Should Make By Dec. 31: Wills, Trusts, Iras, More

Daniel de Visé, USA TODAY Sun, December 8, 2024

We’re nearing the end of 2024. So it's an especially good time to assess what financial moves you should make before the clock runs out. Luckily, financial planners spend the final weeks of the year thinking about just such things.

Back in 2023, we asked several experts for their thoughts, and we made a list of six key financial steps to take by Dec. 31. Readers responded, so we reached out to the same experts again this year, along with one or two new ones, to see if their advice had changed. The answer: Not really.

6 Financial Moves You Should Make By Dec. 31: Wills, Trusts, Iras, More

Daniel de Visé, USA TODAY Sun, December 8, 2024

Here are their suggestions, which include bolstering retirement savings, tweaking insurance coverage and seeking savvy tax shelters.

Update Beneficiaries On 401(K), Life Insurance Policy

A typical investment account or life insurance policy requires you to name beneficiaries, the loved ones who will get the money upon your demise. For many of us, beneficiary designations function as an estate plan: they’re legally binding and dictate what happens to a large portion of your assets.

Some people don’t get around to naming beneficiaries. Births, deaths and family feuds can change the estate-planning landscape. The end of the year is a good time to take stock.

“I suggest making sure your beneficiaries are up to date on your investment accounts,” said Colin Day, a certified financial planner in St. Louis.

“It might not be the first thing people think of, but you will be surrounded by loved ones during the holiday season,” Day said. “It's a great reminder that you love and support these people, and you want to make sure your hard-earned dollars will get to them if something were to happen.”

Review Estate Plan And Insurance Coverage

More broadly, the year’s end is a good time to review your estate plan, powers of attorney and insurance coverage, said Paul Mendelsohn, a certified public accountant in Livingston, New Jersey.

“Do you have life insurance, long-term disability insurance and long-term care insurance?” Mendelsohn said. If not, should you consider getting them? Long-term care insurance, perhaps the least-known of these three, helps cover the costs of assisted living and nursing homes.

Keep in mind, Mendelsohn said, that if one spouse has an insurance policy through work, “it does not cover the other spouse.”

If you haven’t done so recently, “schedule a meeting with an estate planning attorney to create or update your will, health care directives and other legal documents,” said Niv Persaud, a certified financial planner in Atlanta.

Make Charitable Donations And Gifts

DINARRECAPS8 12/8/24 DINARRECAPS8 12/8/24

8 Common Mistakes Retirees Make With Their Social Security Checks

Jordan Rosenfeld Sun, December 8, 2024 GOBankingRates

Beginning to take Social Security benefits can be an overwhelming process for retirees since there are lots of rules and regulations, often tucked into the fine print, so to speak.

It’s easy to make choices, or fail to, that can have a negative impact on your Social Security checks in big and small ways.

Here are some common mistakes retirees make with their Social Security checks so you can hopefully avoid them.

8 Common Mistakes Retirees Make With Their Social Security Checks

Jordan Rosenfeld Sun, December 8, 2024 GOBankingRates

Beginning to take Social Security benefits can be an overwhelming process for retirees since there are lots of rules and regulations, often tucked into the fine print, so to speak.

It’s easy to make choices, or fail to, that can have a negative impact on your Social Security checks in big and small ways.

Here are some common mistakes retirees make with their Social Security checks so you can hopefully avoid them.

Taking Benefits Too Early

Many retirees decide to start collecting Social Security benefits as soon as they reach the minimum age of 62, often without fully understanding the long-term implications of beginning benefits.

“Claiming benefits early can lead to permanently reduced monthly payments,” said Christopher Stroup, CFP and owner of Silicon Beach Financial. “Claiming your benefits at age 62 can result in decreased benefits upwards of 25% to 30% versus waiting until full retirement age.”

Moreover, Ray said, just because you postponed taking it at 62, for example, doesn’t mean you have to keep waiting until you’re 67. You can take it at any time in between and receive the prorated amount.

Not Understanding the Timing

A related aspect of this, according to Patrick Ray, senior vice president at Wealth Enhancement Group is not understanding the timing between when you file and when you first start receiving your checks.

The Social Security Administration gives people roughly a three-month window from application to first receiving your checks. Ray explained that he works with many retirees that leave their work payroll upon retirement, which means they’re no longer getting a paycheck, and often misinterpret the timing of when they’ll get their first checks.

“So if someone decides to retire in June, they probably should start the process in April as it turns out because that does not happen overnight.”

Not Factoring in Spousal Benefits

Some retirees overlook the potential benefits that could be available through spousal claims, Stroup said.

“A spouse can claim benefits based on their own earnings record or up to 50% of the other spouse’s benefit if it’s higher. For couples where one spouse has significantly higher earnings, failing to strategize around spousal benefits can result in missed opportunities,” he explained.

Not Understanding the Tax Implications

DINARRECAPS8 12/7/24 DINARRECAPS8 12/7/24

Suze Orman: 3 Things You Should Never Do When Buying Gifts This Holiday Season

Gabrielle Olya Sat, December 7, 2024 GOBankingRates

The holiday shopping season tends to be an expensive one. This year, the average American plans to spend around $528 on holiday gifts — an amount that could be budget-blowing for some. As many Americans are prepared to spend hundreds of dollars on gifts, money expert Suze Orman is cautioning against going financially overboard.

“Are you going to give yourself the best possible holiday gift this year? … I am talking about not overspending on gifts — when you spend more than you can afford out of a sense of love or obligation,” Orman wrote in a recent blog post

Suze Orman: 3 Things You Should Never Do When Buying Gifts This Holiday Season

Gabrielle Olya Sat, December 7, 2024 GOBankingRates

“Stop it, right now,” she continued. “You need to put yourself in the equation. I want to remind you of one of my guiding principles: True generosity is when a gift is as kind to the giver as the recipient.”

With this in mind, Orman shared three things you should not do when buying gifts this holiday season.

Charging Gifts You Can’t Afford on a Credit Card

Buying gifts with a credit card can allow you to earn cash back or points, but it’s never a good idea to do so if you won’t be able to pay the balance in full.

“The average interest rate on credit cards right now is more than 22%,” Orman wrote. “That is painful just to write. It is insanely difficult — on top of expensive — to owe that much on an unpaid credit card balance.”

Using Buy Now, Pay Later

Americans are predicted to spend a record $18.5 billion using third-party buy now, pay later (BNPL) services for holiday purchases — an 11.4% increase from last year’s holiday season, according to Adobe Analytics. While using BNPL may be more popular than ever, Orman cautioned against utilizing these services.

“It’s common now when you arrive at the e-checkout for an online purchase to be offered what seems like such a nice deal: you don’t have to pay the full amount but can chunk it out into four interest-free payments,” Orman wrote. “I get the allure of these BNPL offers, but I think they can be dangerous traps.

DINARRECAPS8 12/7/24 DINARRECAPS8 12/7/24

6 Signs You’re More Financially Savvy Than the Average American

Vance Cariaga Fri, December 6, 2024 GOBankingRates

There’s no magic formula to being financially savvy, but there is nuance to being good with money. It’s mostly a mix of planning, common sense, your credit score, commitment and a little cost-of-living calculus. People who actively build a financial blueprint they can follow — budget included — are prepared for the future and manage their money in a way that builds wealth.

So how do you stack up? Are you savvier than the average American? Here’s a look at several signs you’re on the right path.

6 Signs You’re More Financially Savvy Than the Average American

Vance Cariaga Fri, December 6, 2024 GOBankingRates

So how do you stack up? Are you savvier than the average American? Here’s a look at several signs you’re on the right path.

You Seek Out the Highest APYs and Best Interest Rates

It doesn’t take much effort to find the best savings account interest rates — a simple internet search will deliver all the info you need to better reach your long-term goals. Even so, a lot of U.S. consumers settle for rates as low as 0.01% APY when they can score rates at or above 5.0% APY.

GOBankingRates consistently researches to find the best high-yield savings accounts available and here are some current recommendations:

Bask Bank Interest Savings Account

Betterment Cash Reserve Account

BMO Alto Online Savings Account

Bread Financial High-Yield Savings Account

FNBO Direct High-Yield Online Savings Account

GO2bank High-Yield Savings Account

Milli Savings Account

Salem Five Direct eOne Savings Account

You Take the Time To Plan and Budget

Making a financial plan and establishing a monthly budget might be the two most important traits of financially savvy people. Your financial plan should encompass both long- and short-term goals and include everything from leisure activities and investment goals to major purchases such as a house or car.

In contrast, your budget should center on current living expenses and day-to-day items. Here are six steps you can take to make sure you set the right budget and stick to it:

DINARRECAPS8 12/6/24 DINARRECAPS8 12/6/24

Warren Buffett: 6 Tips on How To Get Rich

Cindy Lamothe Thu, December 5, 2024 GOBankingRates

There is some advice that stands the test of time, and that is certainly what we can glean from one of the most successful investors in history — Warren Buffett.

He’s imparted a lot of wisdom over the years when it comes to both money and life in general. Below is a deep dive into some of his best advice when it comes to building wealth and achieving financial success.

Warren Buffett: 6 Tips on How To Get Rich

Cindy Lamothe Thu, December 5, 2024 GOBankingRates

There is some advice that stands the test of time, and that is certainly what we can glean from one of the most successful investors in history — Warren Buffett.

Start Investing Young

According to Buffett, the nature of compound interest is that it behaves like a snowball. And the trick is to have a very long hill — which means either starting very young or living to be very old. “If I were getting out of school today and had $10,000 to invest, I’d start by going right through companies,” he said, when it came to researching where to invest.

He recommended focusing on smaller companies that would be working with smaller sums and would likely have more of a chance that something is overlooked.

“You have to buy businesses,” he urged, “or little pieces of businesses called stocks. And you buy them at attractive prices and buy into good businesses.” He said this advice will be the same even 100 years from now.

Be Ready When Opportunity Comes

“The biggest mistakes are the ones that actually don’t show up. They’re mistakes of omission, not commission,” Buffett explained.

In his own life, he noted that he never lost a great deal of money on any one investment. “But it’s the things that I knew enough to do that I didn’t do. We have missed profits of as much as $10 billion that I knew enough to do that I didn’t do.”

He calls these missed opportunities: “There have been other investments where I did know enough to make that decision, and for one reason or another, I didn’t do it or I did it on a small scale.”

Learn the ‘Language of Business’

“If you’re interested in business, I definitely think you ought to learn all the accounting you can by the time you’re in your early 20s,” said Buffett, noting that accounting is the language of business, and you have to know the limitations of that language, as well as all other aspects of it.

He also advises that people work in a number of businesses. “There’s nothing like seeing how a business operates to build your judgment in the future,” he expressed, saying it’s important to understand what kinds of things are very competitive and what things are less competitive.

If you’re interested in investments, Buffett recommends doing a lot of reading. “I would talk business with people who are in business and find out what they think makes their operation tick or any problems and why. I just think you just kind of sop up every place you can.”

Focus on Overlooked Opportunities

“If I were working with a small amount of money, the universe would be huge compared to the universe of possible ideas I work with now,” said Buffett.

DINARRECAPS8 12/5/24 DINARRECAPS8 12/5/24

Half of Americans Feel Safer Holding Cash Over Other Investments

Half of Americans Feel Safer Holding Cash Over Other Investments. Are They Right?

Laura Bogart Wed, December 4, 2024 GOBankingRates

These days, you can get the lowdown on virtually any kind of investment delivered right to your fingertips. You can Google information about stocks and instantly find articles, YouTube tutorials and explainers galore. Then there are the TikTokers sharing their stock picks. Or, if you really needed to, you could always ask Alexa — not the device, but your cousin, the financial advisor.

Yet, despite the abundance of investment information, a survey conducted by Empower suggests that cash still reigns supreme. Roughly 52% of people surveyed preferred to keep cash instead of exploring other investments.

Half of Americans Feel Safer Holding Cash Over Other Investments. Are They Right?

Laura Bogart Wed, December 4, 2024 GOBankingRates

At first glance, this information seems eye-popping. Can more than half of respondents really prefer stashing money in their wallets over growing it through investments? And is that even wise?

The answers are, unsurprisingly, more complicated than you might think.

Cash Can Feel Like a Safeguard Against Uncertainty

Safety is the name of the game when it comes to Americans’ passion for cash. About 49% of survey respondents said they felt safer holding cash compared to other investments. This anxiety is fueled by uncertainties in the market, particularly fears of a looming recession.

But everyday worries about being caught unprepared in an emergency also contribute to the “cash is king” mentality. About 69% of respondents said they carried cash for emergencies, while 59% appreciated the quick accessibility of being able to pull out cash — like Superman rushing out of a phone booth.

Interestingly, survey respondents showed equal enthusiasm for carrying cash as a safeguard for peace of mind and for its reliability, with 39% of people agreeing on both counts.

Your Passion for Cash Doesn’t Have to Mean Zero Growth

DINARRECAPS8 12/4/24 DINARRECAPS8 12/4/24

7 Key Signs You’ve Reached Financial Freedom

Caitlyn Moorhead Tue, December 3, 2024 GOBankingRates

Achieving financial freedom is a goal many aspire to, but how do you know when you’ve truly passed that financial finish line?

This concept goes beyond just having a hefty bank balance in your savings account; it’s about living life on your own terms. Whether you have just started investing or have been consistently adding to your retirement accounts, how you reach your short-term or long-term financial goals has many paths.

Financial advisors have an array of methods you should try such as developing passive income streams, diversifying your investment portfolio or even moving your savings to where you can earn the highest interest rates. No matter what financial advice you take, determining when you reach financial freedom will feel differently depending on your ultimate goals.

7 Key Signs You’ve Reached Financial Freedom

Caitlyn Moorhead Tue, December 3, 2024 GOBankingRates

Achieving financial freedom is a goal many aspire to, but how do you know when you’ve truly passed that financial finish line?

Here are seven key signs that indicate you’ve reached financial freedom and how you can recognize them when you do.

You Live Comfortably Within Your Means

Living within or beneath your means is the bedrock of financial freedom. This doesn’t imply scrimping and saving but rather spending wisely in alignment with your income or when your income increases. When you’re financially free, your lifestyle doesn’t strain your finances.

You can comfortably afford your living expenses and occasional luxuries and still have money left over without surviving paycheck to paycheck. This balance is a clear sign that you’re financially comfortable and managing your resources effectively.

You Have No High-Interest Debt

High-interest debt, like credit card balances, can be a major obstacle on the road to financial freedom, especially when it can so easily spiral.

If you’ve reached a point where you’re not necessarily debt-free but free from paying high interest, it’s a significant milestone. It indicates not only that you’ve managed past debts well, but also that you’re likely making prudent financial decisions to avoid future high-interest liabilities.

You Have a Robust Emergency Fund

An emergency fund is your financial safety net, designed to cover unexpected expenses or financial shocks like medical emergencies or job loss.

Having a substantial emergency fund that can cover several months of living expenses is a clear indicator of financial freedom. It means you’re prepared for life’s uncertainties and can handle a multitude of financial scenarios without derailing your stability or spiraling into debt.

Your Investments Are Growing

DINARRECAPS8 12/3/24 DINARRECAPS8 12/3/24

Is The US Banking System In Trouble?

December 2, 2024 Notes From the Field By James Hickman (Simon Black)

In the year 1157, the Republic of Venice was engaged in a bitter trade war with its arch rival the Byzantine Empire.

While the rest of Europe was barely surviving thanks to the stupidity of their centrally planned feudal economies, Venice was a place where anyone, even the most illiterate peasant, could work hard, take some risks, and become fabulously wealthy.

In short, it was the medieval America. And unsurprisingly its economy was booming.

Is The US Banking System In Trouble?

December 2, 2024 Notes From the Field By James Hickman (Simon Black)

In the year 1157, the Republic of Venice was engaged in a bitter trade war with its arch rival the Byzantine Empire.

In short, it was the medieval America. And unsurprisingly its economy was booming.

Trade was the bread and butter of the Venetian economy. Venice had the fastest ships, the boldest captains, the shrewdest merchants, and by far the best legal and economic system.

In the other corner was the Byzantine Empire, a superpower in decline. Even the emperor at that point was more of a figurehead as nearly everything in the economy was controlled by incompetent career bureaucrats.

Even despite its decline, however, the Byzantine Empire still controlled regional trade in the Black Sea and Eastern Mediterranean. And Venice dominated trade in the Western Mediterranean.

It was only natural that the two-- a rising power versus a declining power-- would lock horns in a trade war.

Bear in mind that medieval trade wars were not what we think of today. In our modern era, a trade “war” is mostly harsh words, barbed tweets, and now potentially tariffs.

A thousand years ago, a trade war was almost an actual war-- naval battles, piracy, wanton slaughter… pretty much standard medieval warfare short of a full-blown ground invasion.

And like any war, a trade war was expensive.

So, in the year 1157, rather than raise taxes, the Venetian government launched a special loan program from its citizens. Participation was pretty much mandatory. But the basic idea was that, unlike taxes, the government would pay back the money, with interest.

Investors were issued paper certificates as a guarantee of repayment. And since nearly everyone in Venice had paper certificates (since the loan was mandatory), merchants and bankers began trading certificates to settle transactions.

The government loan certificates had essentially become a financial security-- and even a form of money. And the world’s first real bond market was born.

These days bonds are considered a boring, ‘safe’ investment. And most individual investors seldom bother to even learn about the bond market, let alone actually buy any bonds.

After all, bonds aren’t nearly as sexy as the stock market.

But bonds are still a critical piece of the global financial system. And just like in medieval Venice, bonds are almost a form of money, i.e. large corporations, banks, and governments consider bonds a “cash equivalent”.

Banks in particular are massive hoarders of bonds. When you make a deposit at your bank, most of the time they use that money to buy bonds.

That’s because, again, bonds are considered safe and boring. Especially US government bonds. And banks are supposed to be safe and boring.

But a serious problem started to creep into this ‘safe and boring’ asset class around ten years ago.

You might recall back during the 2008 financial crisis, central banks around the world printed tons of money and slashed interest rates to zero.

Governments also started spending like crazy in an effort to bail out their economies, and most of them went very deeply into debt.

The US national debt was $9.5 trillion just prior to the 2008 financial crisis. Barely three years later it had risen to $15 trillion.

But because interest rates were so low, most of that $5 trillion in new debt had a yield of roughly 1%.

And it was America’s commercial banks (along with insurance companies) which bought up a huge portion of those 1% yielding bonds.

Well, eventually the economy emerged from its crisis… so the Fed began to hike interest rates. But in doing so they created a huge problem for banks.

If there’s one thing to understand about bonds, it’s this: bond values fall when interest rates rise.

Think about it-- the banks bought trillions of dollars’ worth of bonds during the financial crisis. And their bonds were locked in a ~1% yield.

When rates suddenly rose to 2%, the value of the banks’ 1% bonds obviously fell. After all, why would a bond with a 1% fixed yield be worth the same as a new bond that pays 2%?

So, the new, higher rates caused the banks’ bond portfolios to suffer huge losses. Some banks were even heading towards insolvency. But they used a bunch of clever accounting tricks to hide their losses and pretend that everything was fine.

I first wrote about this nearly ten years ago and predicted that some banks will fail as a result.

Fortunately for the banks, the interest rate hikes were short-lived. By 2019 the Fed reversed course and started cutting rates. Then came the pandemic, and rates once again went to zero.

You’d think the banks would have collectively breathed a sigh of relief, learned from their mistake, and vowed to never load up on low-yield bonds ever again.

Yet the opposite happened. Banks bought trillions of dollars’ worth of US government bonds throughout 2020-2021 with yields as low as 0.01%. Crazy.

Today bond yields have risen to more than 4%... and, SHOCKER, the same effect has taken place: banks’ bond portfolios have suffered enormous losses.

The FDIC recently reported the total ‘unrealized’ bond loss to be over half a trillion dollars. That’s a lot.

The US banking system as a whole has enough equity to cover that loss. But individually, many banks do not.

In fact, this is precisely the reason that Silicon Valley Bank (among others) failed in 2023. So if rates don’t fall dramatically (or worse-- rates go up), then we could see more banks fail.

Bank of America is one of the naughty banks with nearly $90 billion in losses from higher interest rates. That’s over a third of the bank’s total equity.

This means that Bank of America is not insolvent; but at some point, the regulators could force them to reinforce their balance sheet by suspending their dividend and raising more capital. This is likely a big reason why Warren Buffett dumped so much Bank of America stock.

(Bizarrely, since reporting massive bond losses in their most recent quarterly report, Bank of America’s stock price has shot up nearly 20%. The same thing happened with Silicon Valley Bank’s stock in 2023.)

But, again, while there’s currently still enough capital in the US banking system as a whole to fend off a major crisis, there’s a MUCH bigger problem lurking-- and I’ll write to you about this soon.

In the meantime, if you’d rather avoid the mess entirely, definitely consider short-term T-bills in Treasury Direct (it’s like having a four-week CD), or dollar-pegged tokens like USDC.

There’s also the option of a foreign bank account in a financially secure jurisdiction, which includes the added benefit of asset protection and diversification.

To your freedom, James Hickman Co-Founder, Schiff Sovereign LLC

PS- Banks are marketed as pillars of security, but in reality represent significant risk to your hard earned money. In the upcoming Monthly Letter for Schiff Sovereign Premium subscribers, we uncover the cracks in the banking system and explain how these challenges are affecting both individual banks and the system at large.

More importantly, we provide actionable strategies to safeguard your wealth—and even grow it—despite these uncertainties.

https://www.schiffsovereign.com/trends/is-the-us-banking-system-in-trouble-151833/

DINARRECAPS8 12/2/24 DINARRECAPS8 12/2/24

How Much Money Can I Give Without Worrying About Taxes?

Eric Reed SmartAsset Sun, December 1, 2024

How Much Money Can I Give My Daughter and Her Husband Without Worrying About Taxes?

Perhaps your daughter recently got married and you want to help her and her husband start their new life. Or maybe they suddenly find themselves in need of financial assistance and turn to you for help.

Fortunately, the IRS allows you to give away a certain amount of assets – from real estate and stocks to cold hard cash – free of taxes every year. In 2024, you can give away up to $18,000 per individual and not have to pay taxes on the transfer. In fact, you’ll only trigger taxes in 2024 if you’ve given away more than $13.61 million throughout your life beyond that annual exclusion. In 2025, those limits are set to change.

How Much Money Can I Give Without Worrying About Taxes?

Eric Reed SmartAsset Sun, December 1, 2024

How Much Money Can I Give My Daughter and Her Husband Without Worrying About Taxes?

Understanding the ins and outs of strategic gifting can be important, especially for the wealthy. Speak with a financial advisor today.

What Is The Gift Tax?

A gift is any unilateral transfer of money or property. This means that you give someone assets without receiving either fair value or any value in return. The term “fair value” applies to when you give someone an asset in exchange for payment significantly below its market price. It applies to any kind of transaction so, for example, giving someone real estate, a low-interest loan or access to an income stream would all apply. The classic gift is to simply give someone cash while receiving nothing in return.

There are several exceptions to what the IRS considers a taxable gift. For example, money given to a claimed dependent does not constitute a gift, nor does paying someone’s tuition. However, outside defined exceptions, any unilateral or below-market transfer is considered a gift.

When you make someone a large enough gift, it becomes taxable. The IRS taxes applicable gifts at between 18% and 40% depending on the size of the transfer. You, as the gift giver, pay this tax. Due to the gift tax’s exemptions, it also generally applies only to the very wealthy. But if you need additional help navigating and planning for the gift tax, consider working with a financial advisor.

Gift Tax Exemption

Broadly speaking, the purpose of the gift tax is to prevent people from avoiding estate taxes by simply giving away all their money before they die. As a result, the gift tax only applies to transfers that exceed two fairly high caps.

The first cap is called the annual exclusion. This is the amount of money that you can give away every year without triggering the tax. The annual exclusion is set on a per-recipient basis, meaning that it applies separately to each person to whom you give a gift, and there is no limit to the number of people you can give gifts to under this exemption. In 2024, the annual exclusion limit was $18,000 for individuals and $36,000 for married couples. In 2025, it increases to $19,000 and $38,000, respectively.

The second cap is called the lifetime exemption. This is the amount of money that you can give away throughout your lifetime – and after your death – without triggering either gift or estate taxes. The lifetime exemption is set on a per-donor basis, meaning that all of your gifts/estate collectively apply.