6 Frugal Habits Money Experts Disagree On

6 Frugal Habits Money Experts Disagree On

Cindy Lamothe  Mon, July 8, 2024  GOBankingRates

There is no end to all of the financial advice you’ll see on the internet. Money influencers will say one thing — and then you’ll promptly read a rebuttal.

If you’re trying to stay on budget, knowing how to spend wisely should be your priority. That’s why it’s important to weigh all sides of an argument and arrive at your own conclusions.

Here are some of the top frugal habits money experts disagree on.

Skipping the Latte

“Some money experts still swear by practices like ‘skip the latte, buy a home’ when today that couldn’t be further from the truth,” said Dan Kroytor, director of TailoredPay.

“Even if you skip the $6 latte you buy daily every day for 10 years, eventually, that amount of money — for example, $21,900 — will still not be enough for a down payment on a home 10 years from now,” he said. “Especially considering real estate is only getting more expensive.”

Kroytor suggested a balance of being frugal and doing things you enjoy. “The argument is whether it’s more important to be economical and frugal instead of doing things we enjoy,” he explained. “While other experts may disagree, I see no reason why we can’t do both. Know your goals, know what’s realistic and then budget for both.”

Buying in Bulk

“Let’s consider the popular frugal habit of buying in bulk to save money,” said Esther Strauss, co-founder of Step By Step Business. “Many financial experts advocate for this approach, citing the lower per-unit cost of items when purchased in larger quantities.

“However, I take a more nuanced stance on this practice,” she explained. “While buying in bulk can indeed be cost-effective for consumables that you use frequently, it can lead to overspending and waste in other scenarios.”

For example, Strauss said buying perishable items, like fresh produce or dairy, in bulk often results in throwing away unused portions that have spoiled. “This negates the savings and contributes to food waste,” she said.

Similarly, Strauss said that bulk purchases of nonperishable items can lead to overconsumption or stockpiling of goods you don’t really need.

“For families in smaller living spaces, storing large quantities of products can also become an issue, leading to clutter and disorganization,” she noted. “My perspective is influenced by observing consumer behavior and the misallocation of resources that bulk buying sometimes encourages.”

Strauss suggested a more balanced approach. “Instead, I recommend a more tailored approach: buy in bulk selectively, focusing on items that you are certain to use and have the space to store efficiently,” Strauss added. This method, she said, ensures that the benefits of buying in bulk are realized without the accompanying pitfalls.

To Read More:

https://www.yahoo.com/finance/news/6-frugal-habits-money-experts-110054778.html

5 Financial Mistakes Millennials Got From Their Parents

5 Financial Mistakes Millennials Got From Their Parents

David Nadelle  Tue, July 9, 2024  GOBankingRates

While only 27% of Americans across all ages say their money-saving habits are “excellent,” a new study found 65% of millennials and Gen Z-ers worry about baby boomers’ impact on their future.

The survey, conducted by OnePoll for National Debt Relief between Aug. 4-8, 2023, found that although younger generations were concerned about the effect older generations’ financial decisions will have on them, 62% of all respondents (split evenly by generation) admit they make poor money decisions sometimes. Almost half (48%) of respondents said their parents influenced their money habits.

With 51% of respondents admitting they have been in debt at some point, and 42% currently experiencing money troubles, the study also found that many Americans are eager to destigmatize “shameful” debt (36%) and are taking responsibility for their bad spending and savings habits.

There’s a lot of guilt and shame people feel when they’re in debt and that needs to change,” said Natalia Brown, chief compliance and consumer affairs officer at National Debt Relief. “The data shows that most of us face challenges with money and that none of us are alone in that.”

Here are the five most common bad money habits that you might have learned from your parents — and ones you need to unlearn as soon as possible — according to the National Debt Relief/OnePoll study:

Writing Off Small Purchases As Insignificant (43%)

It’s easy to make simple purchases that can add up over time, so you have to hold yourself accountable for how you spend your money. Even if it seems like an insignificant purchase, write it down or acknowledge it. Spending even a few extra dollars a week can account for hundreds of dollars a year.

Instead of making impulsive purchases like in-app purchases that give you that quick dopamine hit, give it 24 hours. If you still want (or even remember) to make that purchase, you should buy it.

Gambling (39%)

Gambling can develop into an addiction quickly. When gambling becomes uncontrollable, the problem gambler will spend even more money, attempting and usually failing, to win back their losses.

Regardless of income, those who spend too much on gambling are prone to have overdue bills, max out their credit cards and borrow money. Even low levels of gambling are linked to financial hardship and unemployment, per The Guardian.

If you or someone you know is struggling with a gambling addiction, it’s best to get help so you can start recovering your mental health and your finances. Call 1-800-GAMBLER for more information.

Using Credit To Pay Bills (33%)

Paying your bills with a quick credit card swipe or online payment can be tempting. When credit cards are considered an extension of income, people are often unable to pay the balance off entirely, leading to hefty credit card interest charges and increases in debt.

Credit card debt should always be counted as an expense in your budget. If you find you’re relying on them too much, it might be time to cut them up or consider a credit freeze so that you can curb your spending.

To Read More:  https://www.yahoo.com/finance/news/millennials-boomer-parents-blame-shameful-180041296.html

10 Industries That Are Double Billing You — How You Can Avoid Paying So Much

10 Industries That Are Double Billing You — How You Can Avoid Paying So Much

J. Arky  Tue, July 9, 2024   GOBankingRates

When was the last time you took a good look at your bill to make sure that what you were charged for is the correct amount? You might want to start double-checking the fine print and doing the math yourself since several industries are getting called out for double billing customers.

You might be able to negotiate to get the charges reversed or a partial refund, but at the end of the day, that’s time and money down the drain.

How can you avoid paying so much and not get double billed? It all starts with knowing which industries are notorious for charging customers twice. Here are the ones to be on high alert for so you do not get billed twice over.

Telecommunications

Telecom providers are notorious for hidden fees and erroneous charges, according to David L. Blain, CFA and CEO at BlueSky Wealth Advisors.

“As someone who has audited telecom bills for over 20 years, I’ve found erroneous charges at nearly every company,” said Dylan Cleppe of OneStop Northwest LLC. “Carefully scrutinize your bill each month and question any charge that seems off. Negotiate the best rate upfront, then lock in that rate with a multi-year contract.”

“Carefully review your bills each month for any unwarranted additions like device insurance or data overage fees,” echoed Blain. “Don’t be afraid to call and dispute incorrect charges.”

Insurance

Ben Klesinger, co-founder and CEO of Reliant Insurance Group and Helping Hand Financial, said, “Insurance companies frequently tack on extra fees when policies renew.

“Always ask for an itemized renewal notice and question any charge not clearly tied to your coverage limits or payouts last year. Don’t be afraid to shop [around with] other companies.”

Healthcare

“Healthcare providers may charge separately for facility fees, physician fees and anesthesia — often from different billing groups,” Blain said.

“Healthcare is an industry designed to bill as much as insurers will cover,” Cleppe agreed. “Question costs that seem disproportionate to the services rendered. Check that each provider who treated you is in your insurance network. Out-of-network doctors and facilities will balance the difference [of the bill for you] between their charge and your insurer’s allowed amount.”

Blain advised customers to request “an itemized bill to ensure you’re only paying for services actually received. Ask about insurance network participation for all providers before receiving treatment.”

Car Repair

To Read More:

https://www.yahoo.com/finance/news/10-industries-double-billing-avoid-160023920.html

Social Security Will Run Out Of Money In Nine Years

Social Security Will Run Out Of Money In Nine Years

Notes From the Field by James Hickman/Simon Black   May 7, 2024

Social Security’s annual trust fund report was released yesterday… and, no surprise, the report states very clearly that trust fund balances “are projected to become depleted during 2033.”

Allow me to repeat that: Social Security’s most important trust fund will run out of money in nine years.

This is a fact, not some wild conspiracy theory; remember that the annual report is signed by top government officials including the United States Secretaries of the Treasury, Labor, and Health and Human Services… so the projection is about as official as it can get. But if you dive into the report, you quickly notice that even such a grim forecast may, in fact, be too optimistic.

Many of the key economic assumptions that they make in the report are wildly inaccurate. They assume, for example, that US fertility rate will be as high as 2.1 (i.e. 2.1 children born per woman). But, in reality, the US fertility rate has been falling for decades, and just hit another all-time low of 1.6 last year.

They’re also way off on other assumptions– like economic productivity. They assume (rather optimistically) that productivity growth will average 2%. Last year it was just 1.3%. And in 2022 productivity actually shrank by 1.9%.

They’re also way off-base in their assumptions about inflation, unemployment, and more.

Plus, just like the Congressional Budget Office’s long-term projections about the US economy, the Social Security trustees don’t account for any kind of future emergency, pandemic, recession, depression, war, financial crisis, or debt crisis.

The really ironic part is that the trustees’ assumptions fail to consider the future economic impact of Social Security going bankrupt.

Think about it– when Social Security’s trust funds suddenly run out of money, it’s going to trigger a major crisis in the United States. Clearly this will be disruptive and throw off their rosy economic assumptions. But they don’t account for this either.

Bottom line, Social Security’s demise is, at best, nine years away. And probably sooner.

So, what will happen when Social Security runs out of money?

Remember that 70 million retirees’ monthly benefits are essentially funded from three different sources.

The first source is payroll tax revenue; people currently in the labor force fork over a portion of their wages to pay Social Security benefits.

For decades, payroll tax revenue exceeded the total benefits that Social Security paid. And this surplus was invested into a special trust fund, which now totals trillions of dollars.

And that’s the second source of funding for the program: investment income from the trust fund, while the third source is the trust fund itself.

Again, for most of Social Security’s history, the trust fund was growing, and its investment income was compounding year after year.

But starting in 2021, Social Security’s annual costs have exceeded combined payroll tax revenue and investment income. So, in order to make ends meet, the program had to start dipping into its trust fund.

The fund’s reserves are now falling. And, again, by 2033, the trust fund will be fully depleted. This also means that there will be no more investment income… leaving payroll tax revenue as the sole source to fund Social Security.

Once this happens, the report states that retirees will have to suffer an immediate, substantial cut (roughly 25%) to their promised benefits. And most likely this cut will continue to become worse over time.

It’s not like there aren’t options to fix Social Security. The government could overhaul the program, raise the retirement age, or start allowing private asset managers to generate higher rates of return for the trust funds (while they still have money).

But everyone in government insists that they are not going to touch Social Security. Joe Biden never misses an opportunity to promise that he will veto any attempt to reform the program.

As a matter of fact, Joe Biden released a statement yesterday (after the trustee report was published) saying– literally in the first sentence– that “Social Security remains strong.”

Come again? What report was this guy reading?

Social Security is, by definition, NOT strong. The trust fund is indisputably going to run out of money in nine years. But this guy is just living on another planet. He refuses to acknowledge reality, he refuses to fix the problem, and he promises to prevent other people from fixing the problem.

Now that’s leadership.

I find it remarkable, though, how many other ‘experts’ are falling in line behind the President.

Even the Wall Street Journal, which is supposed to be a conservative-leaning paper, published an article this morning to say that Social Security’s rapidly depleting trust funds are no big deal… because Congress can always just “choose” to continue funding the program.

Uh… with what money? The budget deficit is already $2 trillion per year. So, if Congress “chooses” to continue paying out 100% of Social Security benefits after 2033, it will all be funded with more debt.

The Journal then suggests that such spending “could also mean the U.S. deficit continues to grow at a pace economists find alarming, potentially weighing on the performance of the economy.”

Could? Potentially? In what reality does multi-trillion-dollar deficit and a fully depleted Social Security trust fund NOT weigh on the US economy?

It’s astonishing how few people want to acknowledge the reality. Social Security will run out of money. Benefits are at risk. And the only way to ‘save’ the program is more debt… which means more inflation, more risk to the dollar’s global reserve status, and more consequences down the road.fmay

That said, Social Security is a perfect example how to think about a Plan B. It is a known and obvious risk: the program will almost certainly run out of money.

But if you know this is going to happen down the road, you can take steps now to secure your retirement– like setting up tax-advantaged retirement accounts to set aside more money in an extremely tax efficient way.

It’s the same with inflation, the national debt, and the dollar; when you can make a very strong case for rising prices and decline in the dollar’s global reserve status in the future, there are ways to mitigate those risks today.

Real assets like gold, energy, uranium, and other critical minerals, plus the companies that produce them, will likely be fantastic investments in a debt-ridden, inflationary environment. And it just so happens that many of them are trading at ridiculously cheap prices right now.

(Subscribers to our premium investment research– check out your most recent edition which features an extremely well-managed, debt-free, highly profitable real asset producer that pays a nearly 9% dividend. Yet its stock sells for a laughably low, single Price/FCF multiple.)

Bottom line, there are completely logical and rational ways to solve these problems and mitigate these risks on your own. Don’t wait for Joe Biden to do it.

https://www.schiffsovereign.com/trends/social-security-will-run-out-of-money-in-nine-years-150811/

Why The Dollar Will Lose Its Status As The Global Reserve Currency

Why The Dollar Will Lose Its Status As The Global Reserve Currency

Notes From the Field  By James Hickman / Simon Black

By the early 400s, the Roman Empire was coming apart at the seams and in desperate need of strong, competent leadership. In theory, Honorius should have been the right man for the job.

Born into the royal household in Constantinople, Honorius had been groomed to rule, practically since birth, by the finest experts in the realm. So even as a young man, Honorius had already accumulated decades of experience.

Yet Rome’s foreign adversaries rightfully believed Honorius to be weak, out of touch, divisive, and completely inept.

He had entered into bonehead peace treaties that strengthened Rome’s enemies. He paid vast sums of money to some of their most powerful rivals and received practically nothing in return. He made virtually no attempt to secure Roman borders, leaving the empire open to be ravaged by barbarians.

Inflation was high. Taxes were high. Economic production declined. Roman military power declined. And all of Rome’s foreign adversaries were emboldened.

To a casual observer it would have almost seemed as if Honorius went out of his way to make the Empire weaker.

One of Rome’s biggest threats came in the year 408, when the barbarian king Alaric invaded Italy; imperial defenses were so non-existent at that point that ancient historians described Alaric’s march towards Rome as unopposed and leisurely, as if they were “at some festival” rather than an invasion.

Alaric and his army arrived to the city of Rome in the autumn of 408 AD and immediately positioned their forces to cut off any supplies. No food could enter the city, and before long, its residents began to starve.

Historians have passed down horrific stories of cannibalism– including women eating their own children in order to survive.

Rather than send troops and fight, however, Honorius agreed to pay a massive ransom to Alaric, including 5,000 pounds of gold, 30,000 pounds of silver, and literally tons of other real assets and commodities.

(The equivalent in today’s money, adjusted for population, would be billions of dollars… similar to what the US released to Iran in a prisoner swap last year.)

Naturally Honorius didn’t have such a vast sum in his treasury… so Romans were forced to strip down and melt their shrines and statues in order to pay Alaric’s ransom.

Ironically, one of the statues they melted was a monument to Virtus, the Roman god of bravery and strength… leading the ancient historian Zosimus to conclude that “all which remained of Roman valor and intrepidity was totally extinguished.”

Rome had spent two centuries in the early days of the empire– from the rise of Augustus in 27 BC to the death of Marcus Aurelius in 180 AD– as the clear, unrivaled superpower. Almost no one dared mess with Rome, and few who did ever lived to tell the tale.

Modern scholars typically view the official “fall” of the Western Roman Empire in the year 476. But it’s pretty clear that the collapse of Roman power and prestige took place decades before.

When Rome was ransomed in 408 (then sacked in 410), it was obvious to everyone at the time that the Emperor no longer had a grip on power.

And before long, most of the lands in the West that Rome had once dominated– Italy, Spain, France, Britain, North Africa, etc. were under control of various Barbarian tribes and kingdoms.

The Visigoths, Ostrogoths, Vandals, Franks, Angles, Saxons, Burgundians, Berbers, etc. all established independent kingdoms. And for a while, there was no dominant superpower in western Europe. It was a multi-polar world. And the transition was rather abrupt.

This is what I think is happening now– we’re experiencing a similar transition, and it seems equally abrupt.

The United States has been the world’s dominant superpower for decades. But like Rome in the later stage of its empire, the US is clearly in decline. This should not be a controversial statement.

Let’s not be dramatic; it’s important to stay focused on facts and reality. The US economy is still vast and potent, and the country is blessed with an abundance of natural resources– incredibly fertile farmland, some of the world’s largest freshwater resources, and incalculable reserves of energy and other key commodities.

In fact, it’s amazing the people in charge have managed to screw it up so badly. And yet they have.

The national debt is out of control, rising by trillions of dollars each year. Debt growth, in fact, substantially outpaces US economic growth.

Social Security is insolvent, and the program’s own trustees (including the US Treasury Secretary) admit that its major trust fund will run out of money in just nine years.

The people in charge never seem to miss an opportunity to dismantle capitalism (i.e. the economic system that created so much prosperity to begin with) brick by brick.

Then there are ubiquitous social crises: public prosecutors who refuse to enforce the law; the weaponization of the justice system; the southern border fiasco; declining birth rates; extraordinary social divisions that are most recently evidenced by the anti-Israel protests.

And most of all the US constantly shows off its incredibly dysfunctional government that can’t manage to agree on anything, from the budget to the debt ceiling. The President has obvious cognitive disabilities and makes the most bizarre decisions to enrich America’s enemies.

Are these problems fixable? Yes. Will they be fixed? Maybe. But as we used to say in the military, “hope is not a course of action”.

Plotting this current trajectory to its natural conclusion leads me to believe that the world will enter a new “barbarian kingdom” paradigm in which there is no dominant superpower.

Certainly, there are a number of rising rivals today. But no one is powerful enough to assume the leading role in the world.

China has a massive population and a huge economy. But it too has way too many problems… with the obvious challenge that no one trusts the Communist Party. So, most likely China will not be the dominant superpower.

India’s economy will eventually surpass China’s, and it has an even bigger population. But India isn’t even close to the ballpark of being the world’s superpower.

Then there’s Europe. Combined, it still has a massive economic and trade union. But it has also been in major decline… with multiple social crises like low birth rates and a migrant invasion.

Then there are the energy powers like Russia, Iran, Saudi Arabia, and Indonesia; they are far too small to dominate the world, but they have the power to menace and disrupt it.

The bottom line is that the US is no longer strong enough to lead the world and keep adversarial nations in check. And it’s clear that other countries are already adapting to this reality.

Earlier this month, for example, China successfully launched a rocket to the moon as part of a multi-decade mission to establish an International Lunar Research Station.

By 2045, China hopes to construct a large, city-like base along with several international partners including Russia, Pakistan, Thailand, South Africa, Venezuela, Azerbaijan, Belarus, and Egypt. Turkey and Nicaragua are also interested in joining.

This is pretty remarkable given how many nations are participating, even if just nominally. Yet the US isn’t part of the consortium.

This would have been unthinkable a few decades ago. But today the rest of the world realizes that they no longer need American funding, leadership, or expertise.

We can see similar examples everywhere, most notably in Israel and Ukraine. And I believe one of the next shoes to drop will be the US dollar.

After all, if the rest of the world doesn’t need the US for space exploration, and they can ignore the US when it comes down to World War 3, then why should they need the US dollar anymore?

The dollar was the clear and obvious choice as the global reserve currency back when America was the undisputed superpower. But today it’s a different world.

Foreign nations continuing to rely on the dollar ultimately means governments and central banks buying US government bonds. And why should they take such a risk when the national debt is already 120% of GDP?

In addition, Congress passed a new law a few weeks ago authorizing the Treasury Department to confiscate US dollar assets of any country it deems an “aggressor state.”

While people might think this is a morally righteous idea, the reality is that it will only turn off foreign investors. Why should China, Saudi Arabia, or anyone else buy US government bonds when they can be confiscated in a heartbeat?

All of this ultimately leads to a world in which the US dollar is no longer the dominant reserve currency. We’re already starting to see signs of that shift, and it could be in full swing by the end of the decade.

Schiff Sovereign   James Hickman/Simon Black   https://www.schiffsovereign.com/about/

https://www.schiffsovereign.com/trends/why-the-dollar-will-lose-its-status-as-the-global-reserve-currency-150843/

Some Thoughts On America For Her 248th Birthday

Some Thoughts On America For Her 248th Birthday

Notes From The Field by James Hickman  (Simon Black Sovereign Man) July 3, 2024

When the 56 delegates to the Second Continental Congress ratified the Declaration of Independence 248 years ago tomorrow, they were creating much more than a nation. They were giving birth to an idea.

America, at its core, is an idea. And it’s one that ranks as one of the greatest innovations in the history of human civilization, right up there with the wheel, the steam engine, the printing press, and the Internet.

The idea of America wasn’t born in 1776, however. By then it had already evolved over thousands of years.

The ancient Greeks embraced individual liberty, direct democracy, and a respect for the rule of law.

The Roman republic further refined Greek democracy and developed a more professional legal code. The early Roman Empire embodied peace through strength, ushering in nearly two centuries of geopolitical stability and economic prosperity under the Pax Romana.

The later Byzantine Empire fused Greek and Roman ideas with Judeo-Christian values. And by 1000 AD, the Republic of Venice– borrowing from Rome’s republican form of government– infused an early form of capitalism to this model.

The Dutch republic of the 1600s refined the concept of a powerful, free, capitalist society even further, as did philosophers like Rousseau, Montesquieu, John Locke, and Adam Smith.

So, when the Founding Fathers wrote the Declaration of Independence (and subsequently the US Constitution), they didn’t have to start from scratch; they drew from a rich, 2,000-year intellectual heritage of the giants who came before them.

This means that America is ultimately a composite of the very best ideas that human civilization ever had to offer— and the combined concept was then elevated to unprecedented heights.

Nothing is perfect, and America wasn’t either.

But based on this idea, the United States became the world’s largest economy in less than a century and the dominant global superpower about 80 years later. That is an unparalleled achievement which no other superpower in human history has come close to matching.

It’s also worth pointing out that the majority of the world’s most important innovations, from airplanes and air conditioning to cell phones and chocolate chip cookies, were either born or perfected in America.

Again, none of this is an accident. America’s success is the deliberate outcome from combining the best ideas from 2,000+ years of human civilization… plus some disciplined execution and a little bit of luck.

Obviously, America has weathered challenges as well. The Civil War. The Great Depression. The turmoil of the 1960s.

But its foundation of economic potential, plus a baseline of social cohesion and shared values, have always allowed the nation to overcome… and for the idea of America to persist.

The country is now at an undeniable crossroads, and it’s not just about a single election.

There are obvious signs of national decline: rising inflation, mounting debt, diminished global standing, a loss of government dignity, and stinging embarrassments like the shameful withdrawal from Afghanistan.

Even the idea of America itself is on the ropes; there are powerful forces within government, media, and the education system who seek to redefine America’s core principles.

Capitalism has been demonized and reinvented. Individual liberty has given way to a radical woke ideology. And the concept of limited government is almost a punchline at this point.

Still, there is a plausible scenario in which America’s best days are ahead.

If politicians embrace the principles that originally fueled the country’s prosperity—such as capitalism and laissez-faire productivity—America could experience an economic boom not seen since the Industrial Revolution.

By cutting taxes, slashing anti-capitalist regulation, and embracing the free market, the increase in productivity could be staggering.

This boom would lead to increased tax revenue, i.e. funds which could rebuild the military, secure the southern border, save Social Security, curb inflation, balance the budget, and chip away at the national debt.

As China buckles under the consequences of its central planning and upside-down demographic pyramid (brought on by its idiotic “One Child policy”), the United States could easily reassert its global primacy.

The dollar’s status as the global reserve currency would be unquestioned, and the world could see a new era of global peace and prosperity.

This is not a pipe dream. It’s a genuine possibility.

The other possibility is that the government does nothing to arrest America’s decline.

The debt continues to spiral further out of control. Rising deficits trigger painful inflation. Excessive regulation stifles economic growth, leaving the economy stagnant and performing far below its full potential.

Individuals are constrained by politicians’ incessant and debilitating rules about how to live, what to buy, and what to drive. The social fabric continues to tear apart with idiotic mandates, censorship, wokeness, gaslighting, and a hatred for capitalism.

Unfortunately, that is the road the country is presently on. Yes, it can be fixed. They can change directions. And we certainly hope that happens.

But as we used to say in the military, hope is not a course of action. That’s why we have a Plan B.

Having a Plan B is not being negative or pessimistic. It’s certainly not irrational. And it’s not unpatriotic.

The fierce individuality to NOT bow down to circumstances is exactly what has allowed America to persevere so many times before.

And taking sensible steps to preserve, protect, and defend what you have worked so hard to achieve in life is about as core of an American value as it gets.   

James Hickman 

James Hickman (aka Simon Black) is an international investor, entrepreneur, and founder of Sovereign Man. His free daily e-letter Notes from the Field is about using the experiences from his life and travels to help you achieve more freedom, make more money, keep more of it, and protect it all from bankrupt governments.

More Articles By James Hickman

https://www.schiffsovereign.com/trends/some-thoughts-on-america-for-her-248th-birthday-151123/

Why Your Checking Account May No Longer Be Free

Why Your Checking Account May No Longer Be Free

Ana Altchek  Fri, July 5, 2024    Business Insider

Chase Bank's boss warned that new federal fee caps could make everyday banking more expensive.

Marianne Lake said the bank is planning to pass the pain of their lost profits on to customers.

Some new costs may be placed on now-free services like checking accounts and financial tools.

Everyday banking might be about to get more expensive for consumers.

Marianne Lake, the CEO of consumer and community banking at Chase Bank, said federal regulations to cap overdraft and late fees would take a bite out of the company's bottom line.  And she warned that making up that loss would be passed on to consumers, according to a report from The Wall Street Journal.

Lake said the changes would be "broad, sweeping, and significant," the report said.

Some of those costs would be tacked onto services that have been free so far, like checking accounts and financial planning tools, the report said.

Business Insider reviewed a Chase presentation that covered the expected impact of proposed regulations. The presentation estimated that two out of three consumers would have to pay a fee for checking accounts if the cap went through.

Lake also said those impacted will be the ones "who can least afford to be" and credit access will also be more challenging.

Some of the regulations include a proposed $8 cap on late credit card payment fees and a $3 cap for overdrafting bank accounts. The limit is part of President Joe Biden's crackdown on hidden fees.

The Consumer Financial Protection Bureau estimated that about 45 million people are charged credit card late fees annually, and the change could save those people up to $220 a year.

TO READ MORE: https://www.yahoo.com/finance/news/jpmorgan-warns-86-million-customers-150827155.html

JPMorgan Warns 86 Million Customers They Might Have To Start Paying For Their Bank Accounts

Chris Morris   Fri, July 5, 2024

Chase Bank customers could see some additional charges in the not too distant future.

The Wall Street Journal reports the country’s biggest retail bank is warning that it might begin charging customers for their accounts. That would impact some 86 million customers.

The potential charges, says Marianne Lake, CEO of consumer and community banking at JPMorgan, are a result of new regulatory rules that cap overdraft and late fees. Lake says Chase will be passing along those increased expenses to customers, which would put an end to now-free services such as checking accounts and wealth management tools. And she says she expects other banks will follow suit.

This story was originally featured on Fortune.com

TO READ MORE: https://www.yahoo.com/finance/news/jpmorgan-warns-86-million-customers-150827155.html

7 Expenses That Will Drain Your Retirement Savings the Fastest

7 Expenses That Will Drain Your Retirement Savings the Fastest

Casey Bond  Fri, July 5, 2024

You’ve spent a good portion of your life working and saving for retirement. Once you reach that milestone, you want to feel confident that your nest egg is big enough to cover your needs in your golden years.

As you retire, it’s important to anticipate some of the costs eating into your savings. Here are seven expenses that can drain your retirement savings — and how to plan for them.

Healthcare

Even with Medicare, out-of-pocket healthcare expenses can be significant, according to Taylor Kovar, certified financial planner and CEO at The Money Couple and Kovar Wealth Management. “This includes prescriptions, surgeries, and long-term care costs,” said Kovar.

One estimate by HealthView Services Financial finds that a healthy 65-year-old couple who retired in 2021 will likely spend between $156,208 and $1 million on healthcare costs during retirement, depending on where and how long they live.

How To Plan: Kovar said it’s a good idea to have a health savings account (HSA) or a similar fund specifically for medical expenses. “Regularly reviewing your health insurance and considering supplemental insurance can also help mitigate these costs,” he added.

Homeownership

If you own a home, that can be another source of major expenses that eat into retirement funds. “As homes age, significant repairs like roof replacements or plumbing issues become more frequent,” Kovar said. From 2016 through 2020, Americans aged 65 and older spent an average of $16,880 per year on housing-related costs, according to the Bureau of Labor Statistics.

How To Plan: Kovar recommends setting aside a home maintenance fund and conducting regular home inspections to help anticipate and spread out these costs.

Inflation

Inflation can significantly impact your future savings, since you’ll need to take larger withdrawals to make up for the higher cost of living, according to Jeff Busch, partner and investment advisor representative at Lift Financial. “This can be particularly troublesome if your portfolio is made up of fixed income strategies that can’t keep up with inflation by increasing income over time,” said Busch.

How To Plan: To mitigate inflation, Busch said you may want to invest a portion of your portfolio in stocks that have historically provided better returns than bonds and cash. In general, he added, maintaining a diversified portfolio can be a big help in the long run.

Adult Children (and Their Children)

From student loans to cell phone bills, many retirees find themselves financially assisting their adult children or even their grandchildren. A study by Merrill Lynch found that in 2018, 79% of parents were providing financial support to their adult children, contributing a combined total of $500 billion annually.

How To Plan: Kovar said it’s essential to set boundaries and have open financial discussions with family to ensure this support doesn’t derail retirement plans.

To Read More:

https://www.yahoo.com/finance/news/7-expenses-most-likely-drain-170042871.html

9 Surprising Items Professional Movers Won't Move

Did you know movers won't handle your nail polish remover? Seriously. Here's what your movers won't move under any circumstances.

Dan Thorp-Lancaster  Wed, July 3, 2024

Professional movers will pack and transfer just about anything in your home, but they won't even touch some things. Federal regulations limit moving companies from handling anything deemed hazardous. That includes common household items such as nail polish remover.

Here's a list of other things you'll have to make alternate plans for before you move. You could squirrel some of them away and take your chances, but movers may make you sign a document to state you won't move any of the following items.

Potentially hazardous items you'll need to move yourself

Batteries

You may think your batteries are harmless, but they have the potential to become little, toxic fire starters. Sitting in the back of a hot truck can cause them to combust, so movers will avoid transporting them. Even if they don't start a fire, heat and punctures can cause batteries to leak, leaving toxic chemicals in their wake.

Gas, nail polish remover, and other flammable liquids

If you keep gas or oil in your garage for lawn equipment, you'll have to move it yourself. For the same reason as batteries, flammable liquids are a no-go in hot trucks where they can leak and catch fire. Even nail polish remover is a hazard, so sweep your home for flammable liquids and securely transport them yourself or properly dispose of them.

Ammunition and explosives

It should probably go without saying, but we'll write it anyway: your movers won't handle explosives. And while they will sometimes move unloaded firearms, ammunition is prohibited. If you're crossing state lines, check the local laws and regulations for how to legally transport guns and ammunition.

Corrosive chemicals, poisons, and cleaning products

Toxic chemicals can easily leak during the moving process. Not only is this a health hazard to your movers, but corrosive chemicals can damage the rest of your belongings or the moving truck. Your movers will also refuse to handle household cleaning products because of their potential to form a toxic gas when combined.

Pressurized gas cylinders

If you or a loved one has ever used an oxygen tank, you probably know how dangerous they are. The potential hazards from a puncture or leak, stray spark, or excessive heat aren't worth the risk of loading them into a moving truck. This is also true for other pressurized containers like propane tanks, fire extinguishers, hairsprays, and anything else that can pose a fire or projectile risk.

Live plants and animals

https://www.yahoo.com/lifestyle/common-household-items-movers-wont-move-190007904.html

Why So Few People Feel Secure About Money — Even When They Have Lots of It

Why So Few People Feel Secure About Money — Even When They Have Lots of It

And why the neighbors of lottery winners are often worse off.

Sean Kernan  June 21, 2024·

I’m not rich by any means. But I’ve done well enough to be comfortable, mostly because I saved aggressively early in my career. Yet I still feel like I’m only a stone’s throw from being in poverty, which is slightly irrational.

I remember having no money and having to budget until my next paycheck or risk groveling to my parents for help. It wasn’t a good life. And it still feels like yesterday, even though so many years have passed. Sadly, many people feel this way.

And to some extent — this stress can be constructive. It can mitigate risky spending. You’ll certainly never catch me with problematic expensive hobbies. But I wish I could feel more at ease about my station in life. Many of my friends are in this same psychological boat too. My buddy Brian is a software engineer, who has been making north of $180K per year — for years on end — while living in a low-cost area, and he’s still as cheap as he’s ever been.

So why are we like this? How do we level up and counteract this financial anxiety?

The origins of the problem

People tend to downgrade their financial standing. For example, per a survey by the financial firm Ameriprise Financial, only 13% of American millionaires classify themselves as wealthy. Even among those who had more than $5M in total assets — many still said they didn’t feel rich.

These weren’t people living in Silicon Valley, where $5M only gets you a shack. These were everyday people from all around the United States — still feeling underfunded.

Part of this is because of the disappearance of pensions — and fear that we’ll live on our savings and social security to get us through to old age. Both of my grandfathers had pensions, with one of them having two full separate pensions (military and government). But we are now the 401K generation — in a system that is more stressful than ever.

Why do people who have so much still feel sad about their financial standing?

Elizabeth Dunn, psychology professor at The University of British Columbia, and co-author of Happy Money: The Science of Happier Spending, looked into this very question. She found that social comparison, in particular, drives much of our financial dissatisfaction.

How we compare our income to others of similar age, education, and region of residence, greatly shapes our self-perceptions and satisfaction. Unsurprisingly, those who compared themselves to groups of higher income, tended to be less happy and more anxious about money.

Unfortunately, a majority of people tend to do upward comparisons. The severity of this impact was most notable: “The income of the reference group is about as important as one’s own income for individual happiness.”

It pains me to admit it: I’m 100% a victim of this statistic. I often watch videos of lavish mansion tours on YouTube, despite knowing the likelihood of me ever owning such a property is slim (unless I somehow write the next iteration of Atomic Habits). But I still enjoy oohing and aahing over the stunning architecture, classy furniture and paintings hanging on the walls. It’s entirely possible this admiration is only heightening my anxiety about money.

Yet I know as well as you that the person in that mansion isn’t likely to be happier than the rest of us. Within a year of becoming rich, or facing tragedy, the vast majority of people return to their baseline happiness.

What’s most telling is that winning the lottery can significantly impact your neighbor’s wellbeing. One study in Canada found that as the magnitude of someone’s lottery winnings went up, their neighbors odds of financial distress and borrowing increased alongside it.

To Read More:

https://www.yahoo.com/lifestyle/story/why-so-few-people-feel-secure-about-money--even-when-they-have-lots-of-it-212029309.html

Are You Rich? Here's What Americans Think You Need To Be Considered Wealthy

Are You Rich? Here's What Americans Think You Need To Be Considered Wealthy

Jeannine Mancini   Tue, Jul 2, 2024,

Bill Gates Was The 'World's Richest Man' For A Record 18 Years. His Secret To Success? 'Saving Like A Pessimist, Investing Like An Optimist'

Bill Gates, co-founder of Microsoft and one of the most influential figures in the tech industry, is renowned for his business acumen and unique approach to financial management. After dropping out of college at 19, Gates cofounded Microsoft with Paul Allen, transforming it from a small startup into a global tech giant.

In the United States, the concept of being rich is often a subject of discussion, curiosity and, sometimes, aspiration. Charles Schwab's 2023 Modern Wealth Survey provides insights into this topic, revealing that the average American equates being wealthy with a net worth of approximately $2.2 million.

Although the most recent data from the Federal Reserve reveals the average American household is a millionaire with a net worth of $1.06 million, looking at the median or midpoint value portrays a more accurate picture. Based on the October report from the Federal Reserve, the median net worth of U.S. households overall is $192,900.

But how spot-on are Americans’ perceptions of wealth?

Top 2% wealth: The top 2% of Americans have a net worth of about $2.472 million, aligning closely with the surveyed perception of wealth.

Top 5% wealth: The next tier, the top 5%, has a net worth of around $1.03 million.

Top 10% wealth: The top 10% of the population has a net worth of approximately $854,900.

These figures illustrate a dramatic wealth gradient in the U.S., indicating a substantial increase in net worth needed to move from the top 10% to the top 2%.

Understanding Wealth Beyond Numbers

Wealth is not solely about the figures in your bank account or investment portfolio; it's also about how you perceive and use your resources. Here are some tips and perspectives to understand and potentially achieve wealth.

Savings and spending habits: Being able to save, that is, spending less than you earn, is a foundational aspect of accumulating wealth. Establishing robust financial habits like budgeting and goal-setting can pave the way to wealth, regardless of the specific dollar amount.

Living below your means: In a world where consumerism is rampant, living below your means is a key principle. This might involve cutting unnecessary expenses, like reducing monthly subscriptions or dining out less frequently. Such habits not only bolster savings but also prepare you for financial emergencies.

Affording desires: The ability to save and spend wisely often leads to the capacity to afford what you desire, whether it is a new vehicle or a vacation. Achieving financial goals is a strong indicator of wealth.

Life goals over money: Wealth is not just about accumulating money but also about fulfilling life aspirations. Whether it's running a business, becoming debt-free or saving for retirement, having a clear vision is crucial.

Preparing for retirement: A key aspect of being wealthy is having a solid retirement plan. This involves understanding how much to save and starting early to build a financial foundation for the golden years.

https://finance.yahoo.com/news/bill-gates-worlds-richest-man-155055431.html

5 Biggest Money Mistakes When Retiring in the Midwest

5 Biggest Money Mistakes When Retiring in the Midwest

Gina Hagler  Mon, July 1, 2024

Retiring with little to no savings is a situation that even Americans who made the effort to save can find themselves in. Creating a nest egg is the important first step, but there are a number of ways that you can end up poorly managing it — before and after retiring.

Some of the universal mistakes include taking on too much risk or withdrawing too much, too soon. While the Midwest is attractive to retirees for its relative affordability, retiring still requires careful planning.

If you’re retiring in the Midwest, these are the biggest areas of concern through which you could slip up, according to Johnson Wealth and Income Management.

Retiring Too Early

A Bureau of Labor Statistics survey found that the average boomer-aged worker in Iowa switches jobs roughly 12 times, while a Federal Reserve Bank of Minneapolis survey recently indicated that workers are struggling to find jobs that offer higher wages and stronger benefits among the rising cost of living.

It’s recommended to not change jobs or leave the workforce without fully assessing the options you have available. You could end up losing out on 401(k) employer contributions and stock options without remaining employed for a certain period of time.

Not Accounting for Taxes

If you have a 401(k), traditional IRA or other tax-deferred account, you need to be mindful that taxes will eat a portion of your balance. If your tax bracket will be higher post-retirement, a Roth IRA or Roth 401(k) is a good idea so that your withdrawals will be tax free. If your tax bracket will be lower, opt for a traditional IRA or 401(k) so you pay lower taxes after retiring.

South Dakota is a Midwestern state with no personal income tax. This contributes to it being seen as a good place to retire, according to Travel + Leisure, but don’t forget that you still have to consider the overall tax burden (i.e., property taxes).

Not Considering Future Healthcare

To Read More:

https://finance.yahoo.com/news/5-biggest-money-mistakes-retiring-190108821.html

I Grew Up Rich: 6 Money Lessons I Learned After I Lost It All

I Grew Up Rich: 6 Money Lessons I Learned After I Lost It All

G. Brian Davis  Sat, June 29, 2024

An oft-cited statistic states that 70% of wealthy families lose their riches by the second generation, and 90% lose them by the third.

Why? Because the first generation earns it, the second generation spends it and the third finds itself back at square one.

It turns out that earning money and shepherding money long term require two different skill sets. All too often, no one in any of those three generations learns how to protect and grow wealth long term.

“I grew up in a wealthy family where my grandfather was the chairman of the largest textile processing mill in our city,” explained Muhammad Ali, sales director at George Digital. “Our business, established in the 1950s, was a significant player in the industry from 1970 to 2001 … However, our fortunes drastically changed, and by 2012, my father’s income dwindled to just $300 a month.

“In 2013, amidst our financial crisis, I developed an interest in programming. Unfortunately, we couldn’t afford a laptop, and we had to live with my grandparents, along with my father’s brothers and their families. This challenging period taught me several invaluable lessons about money and resilience.

“Eventually, I was the first person among my grandfather’s children and grandchildren to get a chance to study in the U.S.

“Here are some key money lessons I learned after losing it all.”

Diversify Your Income Streams

“Our family focused solely on the textile business, and when it failed, we had no backup.

“In 2015, I came across Russell Brunson’s book ‘DotCom Secrets,’ which sparked my interest in an online business. By September 2016, Adam C. Miller introduced me to the world of digital marketing. Despite the lack of resources and guidance, I persevered, slowly learning about digital PR … I also delved into local SEO (search engine optimization) and e-commerce business models.

“After our family’s textile business shut down, there was no one to restart the hosiery textile business. However, years later, I decided to reignite this passion to continue my family legacy and started Molani Enterprises, a textile sourcing and trading company. Alongside my ventures in PR and e-commerce, reviving the textile business was a way to honor my family’s history and rebuild our presence in the industry.”

Maintain a Financial Cushion

Everyone needs an emergency fund. Whether you keep two months’ or two years’ worth of living expenses in it depends on how stable your income and expenses are, but you need that cash cushion to carry you through the inevitable nasty surprises that life throws at you.

“Always keep cash savings to cover basic living expenses and emergencies. This reserve should not be touched for business investments. This lesson was crucial for me, as I witnessed bad financial decisions during our business downfall, where more money was sunk into a failing enterprise.”

Seize Opportunities

They say that when an opportunity knocks at your door, it does so dressed up like work.

To Read More:

https://www.yahoo.com/finance/news/grew-rich-6-money-lessons-210008891.html