Iraq Economic News and Points To Ponder Thursday Evening 9-5-24

Awareness Leaflets About Buying The Dollar

 September 05, 2024    Based on the supervisory and supervisory role of this bank, it was decided that all electronic payment service providers direct all their agents to publish clear awareness leaflets inside their headquarters .. For more, click here   https://cbi.iq/static/uploads/up/file-172552761480088.pdf  https://cbi.iq/news/view/2665     

The Sri Lanka Dollar Dilemma Is An Example
 
Economical 09/04/2024   Yasser Al-Metwally      Many countries, or rather countries with emerging or emerging economies, share the phenomenon or characteristic of the fluctuation of dollar exchange rates and other effects on their economies and their exposure to financial and economic crises periodically.

Of course, the size and extent of the impact of exchange rate fluctuations is different from one country to another, depending on the strength of its economy.
 
The rate of impact in rentier countries that rely on oil as a main source of their resources is relatively less and adopt a fixed exchange system, whether in an international currency such as the dollar or pegged to a basket of currencies.
 
Unless oil prices decline, here countries may have equal influence, and it may sometimes be in favor of non-oil countries, depending on how their balances of payments are affected.
 
The main indicator of the size of the effect is the rate of inflation occurring in a country, and some may be surprised that the
 
decline in oil prices may be to the benefit of non-rentier countries that depend on the volume of their exports of their other domestic products.
 
Here I give an example of this phenomenon.
 
When oil prices rise, the Turkish economy is affected by this due to its impact on production costs, which leads to the absence of some products on the one hand.
 
On the other hand, we find that during the outbreak of the Russian-Ukrainian war and the imposition of the blockade on Russia, Russia was forced to reduce oil prices. Oil to compete and obtain revenues.
 
Turkey was among the countries to which Russian oil was supplied, in addition to China and others.
 
There was a recovery in the Turkish economy at that time, which led to a reduction in the costs of Turkish production of goods.
 
Promises from the beginning on the subject of the problem of the dollar and the fluctuation in its exchange rates, because the exchange rate process of these countries is linked to the dollar, which made them suffer from the presence of more than one exchange rate outside the state’s pricing system.

Here, a number of economists advise the necessity of changing the exchange system and trying to find exchange rates for the basket of currencies (that is, for each foreign currency in the components of the basket and with a specific relative weight according to the commercial areas with which the country is linked externally) in order to eliminate or reduce the parallel prices and bring them to a state of balance with the price. Official exchange.
 
These solutions prompted the BRICS group to attempt to get rid of the dollar’s ​​dominance in global trade financing, and it is continuing this project.
 
It has achieved modest results from cooperation, especially in the field of settling cash payments through its currencies, and it is hoped that it will be able to break the monopoly of the dollar in the long term.
 
There is Sri Lanka's experience.
 
How Was It Able To Control The Exchange Rate?
 
Sri Lanka has limited dealing in the dollar exclusively in banks and has prohibited its use and even its carrying, as
 
it is a legal violation of the dollar of unknown origin and is held accountable by law, that is, with a strict monetary policy against (dollarization), as that country has been able through it to achieve stability in the exchange rate and keep it away from the problems of dollarization and deal with the internal economy in two currencies, one of which is subordinated. For a foreign monetary system.
 
Other than that, some countries are trying to achieve a balance between the official and parallel prices through the process of regulating imports, preventing the entry of many goods that do not affect the citizen’s livelihood, and postponing personal desires, such as preventing the import of cars and luxury items for a while, and
 
this is what is allowed by the laws of the World Trade Organization.
 
That is, postponing the import of some goods to address the country's economic situation.
 
The bottom line is that the issue of currency exchange rate fluctuation is a global phenomenon that is not limited to a specific country, and everyone is trying to address it in their own way.    https://alsabaah.iq/102146-.html   

The Central Bank Of Iraq Reveals The Mechanism For Terminating The Electronic Platform

 September 04, 2024

    The electronic platform for external transfers managed by the Central Bank of Iraq began at the beginning of 2023 AD as a first stage to reorganize financial transfers in a way that ensures proactive control over them instead of subsequent control through the Federal Reserve auditing daily transfers.

This was an exceptional measure as the Federal Reserve does not usually undertake to do this.

 A gradual shift towards building direct relationships between banks in Iraq and accredited foreign correspondent banks has been planned, with an international auditing company mediating this to pre-screen remittances before they are implemented by the correspondent banks.

     During the year 2024 and until now, 95% of the transfer process has been achieved from the electronic platform to the direct correspondent banking mechanism between it and the Iraqi banks.

This means that only about 5% of it remains within the platform, which will be transferred using the same mechanism before the end of this year and according to the plan..

     Thus, some expectations about possible effects on the exchange rate and transfer operations are unfounded,

because the process will not happen suddenly or in one go at the end of this year,

 but rather it was already achieved during the past period with effort and careful follow-up, except for what remains of a small percentage that will be completed during the period. The next few.

     The Central Bank of Iraq confirms that trade with the United Arab Emirates, Turkey, India, and China represents about 70% of Iraq’s foreign trade as (imports), which prompted the Central Bank of Iraq to find channels for transferring the currencies of the euro, the Chinese yuan, the Indian rupee, and the Emirati dirham, via Correspondent banks are accredited in those countries,

 and (13) Iraqi banks have already begun conducting transfer operations with a pre-audit mechanism that has been agreed upon and approved, in addition to transfers in the dollar currency.

     With the provision of channels for personal transfers for legitimate purposes and foreign purchases through electronic payment channels and international money transfer companies, cash sales to travelers, and payment of cash dollars for incoming transfers to the destinations and purposes specified in the Central Bank’s published instructions.

     The Central Bank of Iraq stresses that it has placed external transfer operations and meeting requests for the dollar on sound paths and consistent with international practices and standards and the law on combating money laundering and the financing of terrorism.

     He explains that providing the aforementioned channels for all purposes with the official price of the dollar makes this price the true indicator of economic practices, which is proven by the reality of price stability and control of inflation,

and any other price that is traded outside of those channels is considered an abnormal price that those who practice non-fundamental or illegal practices resort to.

 Those who stay away from official channels in their dealings and bear the additional costs alone by purchasing at a higher price than the official price in order to deceive others about the difference between the official price and others.      Central Bank of Iraq    https://cbi.iq/news/view/2664

For current and reliable Iraqi news please visit:  https://www.bondladyscorner.com/ 

Three Key Trends That Will Shape the Future of America

Three Key Trends That Will Shape the Future of America

Notes From the Field By James Hickman / Simon Black  September 5, 2024

You wouldn’t be especially impressed by someone’s insight if they told you that the world today is full of turmoil. That’s obvious— from wars and cultural clashes to cost of living crises and a pervasive sense of negativity.

More impressive is that William Strauss and Neil Howe predicted that the 2020’s would be like this nearly three decades ago in their 1997 book, The Fourth Turning.

According to their theory, societies move through cycles approximately 80-100 years long, with each cycle divided into four distinct "turnings." These phases mirror the seasons, with the Fourth Turning representing the harsh winter—a period of upheaval and transformation.

Strauss and Howe predicted that the next Fourth Turning would begin in the mid-2000s, ignited by a crisis that would set the stage for significant societal change.

The 2008 global financial crisis marked the beginning of this period. Since then, governments and central banks have been in a constant state of crisis management, employing measures like low interest rates and increased government spending to prop up the faltering system.

Today, as Strauss and Howe foresaw, this phase is characterized by a collapse of trust in institutions that have dominated since the start of the current cycle, just after World War II.

From the media, to government bodies like the justice system and Federal Reserve, to global organizations like the UN and IMF, these institutions are increasingly viewed as ineffective, obsolete, or downright harmful.

Historically, Fourth Turnings are marked by intense turbulence, often culminating in major conflicts or transformative events, such as the Great Depression leading to World War II, or in the cycle before that, the American Civil War.

While history doesn’t have to repeat itself exactly, the growing dissatisfaction across the developed world is palpable. Issues like healthcare costs, immigration, and rising inequality fuel a sense that society is no longer functioning as it should.

This widespread discontent often leads to political upheaval. As voters lose faith in current leaders, new political movements and parties gain traction.

But none of these ‘saviors’ are going to win by promising to cut spending.

Until their hand is absolutely forced, politicians will continue to borrow and spend as much as they can in a desperate attempt to cling to power. But to be fair, the public is also to blame— they largely demand it.

As Howe writes in the sequel to the Fourth Turning which he published last year:

“Like addicts acquiring tolerance, policy-makers have backed themselves into a corner: The public braces itself for the dark hour when the Fed can no longer ease and Congress can no longer borrow no matter how badly the economy founders.”

This scenario highlights three key trends that are likely to shape the future:

1. Huge Deficit Spending

The US deficit reached nearly $2 trillion in 2023, a historic high outside of wartime or national emergency.

In theory there is no limit to the level the deficit can reach. After all, the US Government can issue the debt and the Federal Reserve can buy it all.

But the problems show up in the value of the US dollar. Not just against other currencies— other governments are devaluing their currencies in the same way. Instead, the value of what a dollar is worth, in terms of real goods and services that people need to buy, is diminished.

The Fed is acting right now as if the inflation problem is licked. But, given the trajectory of future deficit spending, we are really just in the opening stages of a larger, wider inflation problem.

2. Increasing Conflict

The intensity of global conflicts has escalated, particularly following Russia's invasion of Ukraine. This has accelerated a shift away from global trade and cooperation, as countries prioritize securing their own supply chains and others try furiously to develop parallel financial systems that leave them less vulnerable to the whims of US foreign policy.

This retreat from global integration is likely to increase tensions and create further instability.

3. Potential Monetary Resets

All of this leads to the potential for a monetary reset— typical during a Fourth Turning. The value of the reserve currency is being continuously debased and its status as a reserve currency can leave others vulnerable to the imposition of sanctions or even confiscation of their assets. That’s not sustainable.

There are so many possible permutations of how this could all play out that it’s difficult to say exactly what a global financial reset would look like right now.

But it would almost certainly mean the loss of the dollar’s global reserve status.

That is exactly why we always advocate having a Plan B, a solid backup plan to provide great optionality in tumultuous times.

That’s why we started Schiff Sovereign: Premium, a highly educational, month-by-month guide that is designed to help you navigate the world from a position of strength, both personally and financially.

In Schiff Sovereign Premium, we focus on what we think will work well amidst all the uncertainty, regardless of the sequence of events that occur.

It includes both Plan B strategies (such as maintaining your freedom of movement, and legally reducing your tax bill), as well as compelling investment research.

Our investment thesis focuses on real assets— the world’s most critical, valuable, and useful resources, as well as the businesses which produce them.

Real assets are a beneficiary of the huge debasement of currency that we are seeing. And right now, with central banks across the world starting to cut interest rates again, we should see that trend accelerate.

Gold in particular has already responded to the impending injection of liquidity that lower interest rates will bring, reaching all time highs on multiple occasions this year.

Gold mining stocks, however, haven’t yet followed suit... but are primed to do so. (In July’s issue, we explained why, and released research on two well-positioned companies in the gold mining industry.)

Commodities are also a beneficiary of the unfortunate trend of increasing conflict across the world. Not only are war-time economies typically inflationary, they also require a huge amount of industrial commodities.

But the chronic underinvestment in commodity supply over the past decade has set the stage for potential shortages. As these issues come to the fore, both prices and investment in production are likely to rise— a great opportunity for investors.

But even if these trends don’t play out exactly as expected, investing in companies that control some of the world’s most valuable real assets—especially including critical energy resources like natural gas and uranium—has very little downside.

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

https://www.schiffsovereign.com/trends/three-key-trends-that-will-shape-the-future-of-america-151390/

6 Ways You Can Tell If a Recession Is Coming (And What To Do)

I’m an Economist: 6 Ways You Can Tell If a Recession Is Coming (And What To Do)

Laura Beck   Tue, September 3, 2024    GOBankingRates

Most people are worried about the economy, and the dreaded word “recession” is on many people’s lips. But how can you tell what’s actually happening and what’s not worth worrying about?

GOBankingRates spoke to economists and financial professionals to get the inside scoop on what’s going on in America right now. Here are six ways to tell if a recession is coming and what you can do about it.

Current Economic Outlook

Michael Faulkender, former assistant secretary for economic policy at the U.S. Department of Treasury and currently the dean’s professor of finance at the University of Maryland, provided a measured perspective.

“I do not think a recession is coming but I do think the recent slowdown will continue. There are parts of the economy that are not growing — manufacturing and housing are still struggling,” he outlined. “Other parts like healthcare and government spending are still expanding. The outcome is overall anemic growth, but not yet decline. What the economy looks like one to two years from now depends mightily on the economic policies implemented following the election.”

However, Albert “Pete” Kyle, distinguished university professor at the University of Maryland’s Robert H. Smith School of Business, offered a more cautious view.

“Altogether, risks are tilted towards a recession coming either later this year or next year, but it is not as obvious that this will occur as it was in 2007 or 2000,” he said. “Currently, there are some stresses in the banking system. Banks and non-bank investors are sitting on bad loans related to commercial real estate, particularly shopping malls and commercial office space. These stresses are significant. Compared to the 2008 financial crisis, they are better recognized and probably not as severe.”

Kyle also pointed out another concerning factor — the stock market.

“The stock market is currently at a very high level as a multiple of GDP,” the professor shared. “While earnings are strong, it is not clear whether for how long these high earnings will continue into the future. If there is a decline in corporate earnings, stock prices could fall a great deal.”

Professor Jonathan Ernest of Case Western Reserve University offered a more optimistic perspective. “Currently, the labor market has remained relatively strong, the rate of inflation has decreased, and GDP continues to grow year-over-year. None of these measures would traditionally signal an imminent recession.”

6 Key Recession Indicators

Given these differing views, what signs should we be watching for? Here are six key indicators highlighted by our experts.

Yield Curve Inversion and Steepening

Abe Askil, CEO at Titan Capital Managers, pointed to a historically reliable indicator.

TO READ MORE: https://news.yahoo.com/news/finance/news/m-economist-6-ways-tell-170258745.html

Regulation D And Savings Account Withdrawal Limits – Here’s What Changed

Regulation D And Savings Account Withdrawal Limits – Here’s What Changed

Matthew Goldberg  Tue, September 3, 2024   Bankrate

Key takeaways

Regulation D sets reserve requirements for banks and credit unions, and it previously limited the amount of certain types of withdrawals and transfers consumers could make to six.

During the coronavirus pandemic, the limitation was lifted.

Some financial firms now allow consumers to make more than six withdrawals and transfers from deposit accounts while others have maintained the pre-2020 rule.

While banks historically limited the number of transactions that customers could make each month in savings and money market accounts, a pandemic-era rule change means you may now have easier access to your funds.

Regulation D, or Reg. D, is a Federal Reserve Board rule that previously limited withdrawals and transfers to six each statement cycle. The Fed revised the rule, but many banks have maintained the six-transaction limit. Others have increased the number of allowable withdrawals and transfers.

What is Regulation D?

Reg. D imposed reserve requirements on a bank’s deposits and other liabilities, with the purpose of implementing monetary policy, according to the Federal Reserve. In March 2020, reserve requirements at banks were reduced to zero percent and they’ve remained at zero for more than three years.

Reg. D also restricted the frequency of certain types of withdrawals and transfers you could make from a savings deposit account during a statement cycle. Banks no longer have to limit the number of certain withdrawals from a savings deposit account to six, but most do still restrict withdrawals on these accounts.

How Has Regulation D Changed?

In April 2020 — as Americans began to navigate the economic fallout from the coronavirus pandemic — the Fed deleted the six certain transfer or withdrawal limits from the definition of savings deposit accounts via an interim final rule.

Some banks took the Fed up on the rule change by eliminating the withdrawal limits. American Express National Bank, for example, previously allowed nine withdrawals per statement cycle, for example. Now, it doesn’t have withdrawal limits on its savings account.

The Fed’s move was termed an interim final rule, which is issued when there’s good cause to skip issuing a proposed rule, says Scott Birrenkott, assistant director of legal at the Wisconsin Bankers Association.

Still, the proposal isn’t yet set in stone.

“The Fed still hasn’t issued a final rule,” Birrenkott says. “So, some banks are still waiting for that final piece to kind of see. I know that some banks are curious whether that might change or something might be reversed, because it can be a big step to adjust all of their policies and procedures.”

Types Of Transactions Impacted By Reg. D

TO READ MORE:  https://www.yahoo.com/finance/news/regulation-d-savings-account-withdrawal-195856860.html

High-Yield Savings Account Vs. Treasury Bill: Which Is Right For You?

High-Yield Savings Account Vs. Treasury Bill: Which Is Right For You?

Sarah C. Brady·Contributor  Updated Tue, September 3, 2024  Yahoo Personal Finance

Both can be a great option for your savings, depending on your goals.

It was not too long ago that low-risk investments like Treasury bills were the underdogs of the financial world. While T-bills provide a safe place to store your savings while earning a fixed interest rate, they were simply not worth the low returns they offered — especially when compared to the flexibility of savings accounts.

Then, in 2022, something unusual happened: Interest rates started increasing, and they just kept on shooting upward, until the rates on some T-bills, and even savings accounts, passed 5%.

In 2024, anyone who wants to earn a competitive rate on their short-to-mid-term savings would be wise to consider both as options. Which one is best for you: A high-yield savings account or Treasury bill? The answer mainly depends on when you need your money back.

What is a high-yield savings account?

A savings account is a bank account designed to help you save money. These accounts typically earn more interest than checking accounts do, and they're very low risk since most banks insure your deposits up to $250,000.

The downside? Most savings accounts don’t pay much; the national average savings account rate is just 0.46% today. You might earn more interest by leaving your money in a time-bound account like a T-bill or CD, or by investing in the market. Inflation is also likely to outpace your earnings on a savings account.

One way to maximize what you earn on your savings is to use a high-yield savings account (HYSA). These accounts work just like traditional savings account, except they can offer rates as high as 5% APY or more.

See our picks for the 10 best high-yield savings accounts available today>>

What is a Treasury bill?

Buying a Treasury bill is sort of like making a loan to the U.S. government. T-bills pay you guaranteed interest based on the length of time you invest your money. Rates currently range from 4.23% to 5.27% with terms of four to 52 weeks. You can sell a T-bill before the maturity date, but you'll lose some of the interest you would have earned otherwise.

TO READ MORE:

https://www.yahoo.com/finance/personal-finance/high-yield-savings-account-vs-treasury-bill-140005833.html

Here’s Why Having 2 or 3 Bank Accounts Isn’t Enough

Here’s Why Having 2 or 3 Bank Accounts Isn’t Enough, According to Money Expert Martin Lewis

Vance Cariaga   Mon, September 2, 2024  GOBankingRates

Although there are vast differences in the amount of wealth Americans have amassed, one thing almost everyone has in common is a banking relationship. Nearly 96% of U.S. households have a checking or savings account at a bank or credit union, according to the latest FDIC data.

Research from Consumer Affairs showed that the average consumer had a total of 5.3 accounts across financial institutions as recently as 2019, though many have only one or two.

More Bank Accounts Could Mean Better Money Management

If you belong to the latter group, then financial guru Martin Lewis recommends adding more accounts. Lewis, founder of the UK-based MoneySavingExpert website, recently said on his podcast that you might benefit from having 10 accounts or more, The Express reported. He compared savings accounts to a “tower of champagne glasses” where you fill one glass and then move on to the next.

“The perfect way to save is you pour your money into the account that pays the most,” Lewis said. “It might be tax-free, it might be because it only allows a small amount. Once you fill that, you trickle down to the next level then trickle down to the next level.”

He conceded that this system is not necessarily for everyone — mainly because it requires hard work to stay on top of it.

“The biggest sin in savings is that most decent rates only last for a year or so and then you have to be on top of it to ditch and switch when it ends,” Lewis added. “It’s only for the type of people who will be constantly on top of it, maybe even modelling it through a spreadsheet to manage it well. Most people want a simpler solution with two, three, maybe four accounts at most but not going into 10 different accounts.”

TO READ MORE:  https://www.yahoo.com/finance/news/why-having-2-3-bank-200019928.html

Every Senior Discount in America

Every Senior Discount in America

We’ve gone through and researched every company in America to see which ones offer discounts to seniors and retirees. Use our searchable database next time you’re stopping in at a store or restaurant to see if they offer an additional 10-50% off what you’re purchasing!

TO READ MORE: https://retirehub.org/every-senior-discount/

16 Things Financial Advisors Never Do With Their Money

16 Things Financial Advisors Never Do With Their Money — and You Shouldn’t Either

Jennifer Taylor  Sat, August 31, 2024   GOBankingRates

Financial advisors to help clients manage their money. As financial experts, they can offer advice on everything from investing to smart spending habits — but it can also be helpful to know what money moves they would never make themselves.

GOBankingRates spoke with a few financial advisors to find out what they would never do with their money. Here’s what they had to say.

Ignore It

“Ignoring your money doesn’t make problems go away, nor does it lead to wealth,” said Christopher D. Musick, CFP, CKA, founder and financial planner at Purpose Financial Planning.

To be intentional with his cash flow, he sets time aside to budget monthly.

“I plan for how much is coming in, and what’s going toward spending, saving, giving, taxes and debt,” he said.  “I also review my accounts regularly, including my investments.”

Use Consumer Debt

“I don’t take on debt to afford my lifestyle,” Musick said.

He said doing so isn’t sustainable.

“Car loans leave you in debt and paying interest on a depreciating asset,” he said. “Carrying credit card debt is even worse, as it often has higher interest rates and is typically used to fund immediate consumption, leaving you with nothing to show for that debt.”

He said consumer debt works against building wealth.

“It takes away from your net worth and constrains your future cash flow,” he said.

Invest My Emergency Fund

“I don’t want to worry about stock market volatility in the midst of an emergency,” Musick said. “My emergency fund is in a high-yield savings account (HYSA), but other options include things like CDs or money markets.”

He said he wants his emergency fund to be liquid, accessible and guaranteed to be there when he needs it.

Forget Taxes

“The last thing I want is to get surprised by a big tax bill in April,” Musick said.

Instead, he keeps a close watch on his earnings throughout the year to ensure he’s withholding enough taxes and determine if estimated taxes are necessary.

“I also look for tax-planning strategies that may help me lower what I owe in taxes now or in the future,” he said.

Keep It All for Myself

TO READ MORE:  https://news.yahoo.com/news/finance/news/16-things-financial-advisors-never-160030886.html

Car Dealers Hate When You Ask These 3 Questions

Car Dealers Hate When You Ask These 3 Questions

Cynthia Measom   Updated Fri, August 30, 2024   GOBankingRates

Buying a car can be stressful. Dealers may use tried-and-true tactics to push you into a quick sale, but knowing the right questions to ask can put you in the driver’s seat.

According to Mark Beneke, co-owner of Westland Auto Sales in Fresno, California, some questions potential buyers ask might make a dealer uncomfortable because they can reveal more about the vehicle’s true condition and history. Here are three questions that some car dealers dislike — and why they’re so important for you to ask.

Can I Take the Vehicle to My Mechanic To Inspect?

Why Ask: Beneke said that a third-party mechanic can provide an unbiased assessment of the car’s condition, potentially uncovering issues the dealer might have overlooked or may not take care of as part of their process. “This will also give you some insight into the attitude of the dealership and their confidence in their work,” he added.

Why Dealers Avoid It: Beneke explained that if a dealer is aware of issues with the car or isn’t confident in the quality of the work they provide, they might be hesitant to allow you to take the car to your own mechanic.

How Long Has the Vehicle Been on the Lot?

Why Ask: “Most dealerships buy their inventory through a form of credit line, so for each day that the vehicle sits on the lot, they are paying and losing the potential to buy and sell other vehicles,” explained Beneke. “Because of this, they may be more willing to negotiate the price to move the inventory.”

TO READ MORE: https://www.yahoo.com/finance/news/car-dealers-hate-ask-3-130004635.html

The Four Biggest Mistakes People Make When Buying A New Car

Edmunds: The Four Biggest Mistakes People Make When Buying A New Car

Josh Jacquot  Updated Thu, August 29, 2024

Car buyers have more tools than ever to get the right vehicle at the right price. Still, mistakes can happen quite easily. Often, car buyers get blinded by emotion or rushed timing. Edmunds’ experts reveal the four biggest mistakes car shoppers often make and offer tips to avoid them.

Trading in a Vehicle with Negative Equity

Being upside down on a trade-in vehicle is occurring with increasing frequency. According to a recent Edmunds report, nearly one in four consumers who financed a new vehicle purchase with a trade-in during the second quarter of 2024 were underwater on their prior car loan.

“Upside down,” “underwater” and “negative equity” are interchangeable terms for a bad situation: All three mean that the car owner owes more on the loan than the vehicle is worth. Not only has the number of upside-down trade-ins grown since 2022, but so has the amount owed on those loans.

If, for example, you are $5,000 upside down on your current vehicle and decide to trade in this car and buy a new one, you will have to pay the price of the new car plus the $5,000 you owe on the current car. Your monthly payments will be much higher because you’re rolling over what you owe on your old car to the loan on your new one.

The best financial solution is to keep your current car longer and continue paying off its loan. Waiting might be challenging — you want that new car, we get it — but if you can at least ensure your trade-in value equals your loan amount, you won’t have to pay extra for the new vehicle purchase.

Rushing Into a Vehicle Purchase

There can be legitimate reasons to expedite a vehicle purchase. Perhaps your vehicle was totaled in an accident, or maybe it broke down and it’s not worth paying to fix. Either way, you’ll need a new car right away. But many shoppers don’t think about doing valuable research beforehand.

There will be new and unfamiliar automotive features and technologies worth knowing about, especially if it’s been a while since you bought a new car. If you take your time, you’ll also be able to get several quotes before you commit to a deal and have time for a vehicle inspection if it’s a used car.

Even if you need to replace your car quickly, it’s often better to find alternative transportation while you research a new vehicle purchase. Renting a car for a few days might cost a few hundred dollars, but that’s better than picking the wrong vehicle or getting suckered into a bad deal.

TO READ MORE:  https://www.yahoo.com/finance/news/edmunds-five-biggest-mistakes-people-112528264.html

5 Types of Financial Advisors — and How To Choose the Right One for You

Boomers: Here Are 5 Types of Financial Advisors — and How To Choose the Right One for You

Kellan Jansen   Thu, August 29, 2024  GOBankingRates

We all need financial guidance from time to time. But the type of advice you need can depend on your age. Baby boomers, for example, often need support with stretching their funds in retirement and creating spending plans.

 If you’re part of this generation and looking for a financial advisor, your search should reflect your goals. This article will lead you through a process that will get you to the right match.

The 5 Types of Financial Advisors

First, it’s worth reviewing how financial advisors earn money from their clients. There are a few different pricing models, and the one you choose could impact the kind of advice you get.

For instance, if an advisor earns a commission on every trade you make and then recommends an unusually large number of trades, that’s a red flag. You might not spot something like that if you ignore how your advisor makes their money.

With that in mind, there are five main types of advisors, based on Securities and Exchange Commission regulations.

Fee-only: These advisors are paid based on the assets they manage for you. They may charge a percentage of those assets, an hourly rate or an annual fee.

Commission-based: These advisors earn a commission based on the products they sell you but may not charge you much, if anything, directly.

Fee-based: These advisors charge fees based on the assets they manage and may still earn a commission.

Registered investment advisors: These firms generally charge an annual account fee or a percentage of assets invested.

Robo-advisors: These automated online platforms offer low-cost investing advice and earn money through various account and trading fees.

You can find financial expertise across each of these pricing models. However, if you want your advisor’s incentives to align fully with your own, it’s a factor to consider.

How To Choose a Financial Advisor as a Boomer

The baby boomer generation spans 18 years, from 1946 to 1964. That means the youngest boomers are nearing retirement, while the oldest may have already been retired for a decade.

Given this gap, it’s no surprise that even people within the boomer generation have substantially different financial needs. However, with the right process, you’ll end up with a great advisor regardless of your needs. Here’s how to get there.

1. Define Your Goals

TO READ MORE:

https://www.yahoo.com/finance/news/boomers-5-types-financial-advisors-140038347.html

4 Key Concepts and Strategies From a Finance Professor

Wealth Management 101: 4 Key Concepts and Strategies From a Finance Professor

Cindy Lamothe   Tue, August 27, 2024   GOBankingRates

For most people, managing finances is not the funnest thing in the world. Maybe that’s why you’ve likely postponed it up until now.  And maybe you’re truly interested in making a change but all of the financial jargon out there makes your head swim. How do you get started? What are the basics?

Thankfully, experts understand the challenge and are ready to break it down for you. Below, Robert R. Johnson, Ph.D., CFA and professor of finance at Creighton University‘s Heider College of Business, outlines some of the key concepts and strategies to know when it comes to wealth management.

Start With Limiting Debt

According to Johnson, people would be well served to realize that debt extinguishment should be a priority.

“To quote Albert Einstein, ‘Compound interest is the eighth wonder of the world. He who understands it, earns it. He who doesn’t, pays it.’

Johnson added, “People can put their financial house in order by reducing debt and acquiring assets that grow in value over time.”

He said the fastest way to improve your net worth is to obtain more assets that compound in value (e.g., stocks and CDs) and reduce your debts and interest payments.

“Typically, one should pay down the highest interest rate debt first,” he said. “And that is generally high interest rate credit card debt.”

Understand Not All Debt Is Bad

“Not all debt is bad,” Johnson said. “Some experts would contend that student loans are bad debt, but I disagree. I would categorize modest student loan debt as being good debt.”

In his opinion, student loans get a bad rap.

“There is no doubt that the system has been abused and that some students have accumulated a mountain of debt and have earned degrees that simply won’t provide the earning power to pay that debt back.”

But, used judiciously — and to earn degrees that truly build your human capital and earning power — Johnson said student loans can be essential bridges to career success.

Mortgage debt also can be considered good debt. Johnson cautioned against comparing mortgage interest against investment interest, because mortgage interest is tax deductible.

TO READ MORE:  https://www.yahoo.com/finance/news/wealth-management-101-4-key-170229585.html

How Genghis Khan Is Driving Your Grocery Bill Higher

How Genghis Khan Is Driving Your Grocery Bill Higher

Notes From the Field By James Hickman / Simon Black August 27, 2024

Over eight hundred years ago, in what is now northwestern China, the Uyghur people— long before they were carted off to internment camps by the Communist Party— ruled their own independent kingdom, known as Qocho.

Then, in the year 1209, Genghis Khan sent diplomatic emissaries to Qocho. The message was clear: the Great Khan wanted to avoid a bloody military campaign, and he proposed a peace offering instead.

Genghis Khan’s deal was simple: the Uyghur people would keep their rulers, their infrastructure, their religion, and their customs. Their soldiers would live. Their buildings would not burn. Their women would not be touched. They would even be granted a high degree of autonomy.

And in exchange, they would provide the Mongol Empire with administrative support, as the Uyghurs were famously adept in governance and literacy.

The Uyghur ruler, recognizing the military strength of the Mongols and the benefits of an alliance, voluntarily accepted these terms, avoiding destruction.

Genghis Khan is generally known to history as a butcher and conqueror. But he was also a fairly skilled diplomat; he understood that it was far better to talk and settle matters peacefully than to go to war.

Through peaceful negotiation, lives could be spared, resources conserved, and vital economic assets preserved— not just for his own empire but also for the kingdoms he sought to absorb. This meant more tax revenue for him, and prosperity for everyone.

Fast forward to the present day, and Genghis’s namesake— Federal Trade Commission (FTC) Chair Lina Khan— has taken the opposite approach. She wants to go to war... which in our modern era means lawsuits. She has no interest in diplomacy, discussion, or compromise; she just wants to sue businesses and take them to court.

Bear in mind, the FTC was created in 1914, back when a handful of huge companies wielded monopolistic control over key industries in America. So the government set up the FTC to protect consumers from being squeezed by these powerful monopolies.

But a century later, Genghis Khan is using the vast powers of her office to wage war on legitimate business... and even capitalism itself.

A few months ago, for example, Genghis decided to ban “non-compete” clauses from employment contracts. This is one of the fundamental principles of capitalism: a voluntary agreement between an employer and employee to protect a company’s investment and intellectual property.

But Genghis Khan wouldn’t hear of it. So she banned non-competes, even though she had absolutely no legal authority to do so. And this is typical of her— she just invents whatever authority she wants.

Another example we talked about a few months ago— Genghis filed a lawsuit against two major grocery store chains (Albertsons and Kroger) to prevent them from merging.

Her claim is that the merger will harm labor unions, though she offers absolutely no reasonable explanation or evidence to support this assertion.

More importantly, her job is to protect CONSUMERS.... not labor unions. But here we have it again: Genghis Khan has once again invented new authority for herself to be the Protector of Unions... even though Congress never tasked her with that mission.

The whole thing is so absurd, in fact, that the FTC has no reason to suspect that the merger of these two grocery store chains will harm anyone at all. If anything, consumers should benefit.

The supermarket industry is extremely competitive, with traditional grocers now having to compete with tech companies, co-ops, farmers' markets, delivery apps, big-box warehouses like Costco, and even Walmart and Amazon.

For Albertsons and Kroger, it’s clear that a merger makes sense; it helps them optimize their cost structure, achieve greater efficiencies, and thus deliver savings in the form of lower prices to consumers.

And lowering prices isn’t some altruistic act by these companies; lower prices will make them more competitive.

But Genghis Khan has no understanding of how capitalism works. In the sentiment of her fellow Marxists, she views capitalism as a zero-sum game, best encapsulated by AOC’s false logic: “No one ever makes a billion dollars. You take a billion dollars.”

This way of thinking is completely false. Sure, 1,000 years ago when the real Genghis Khan was conquering the world, economics was indeed a zero-sum game. Nations got richer by plundering their neighbors, and individuals became wealthier by taking from others.

But that’s not what modern capitalism is about. It’s not a zero-sum game. Capitalism is about making the pie bigger. It’s about value creation. It’s about making everyone better off— workers, customers, investors, even the government that collects tax revenue. Everyone wins.

But FTC Chair Genghis Khan acts like it’s still the year 1209. She doesn’t understand modern economics or the value creation principles of capitalism. So her tendency is to engage in warfare— not with soldiers on the battlefield, but with lawyers in a courtroom. Albertsons and Kroger never had a chance.

For example, the FTC initially howled that the combined Albertsons and Kroger company would have too many locations. OK fine. So the companies promised to sell off a percentage of their stores, and they even found a buyer.

Then the FTC claimed there wouldn’t be enough stores, and competition would suffer.

“Damned if I do, damned if I don’t.” Again, the companies never had a chance. There’s no satisfying Genghis Khan. She doesn’t want to talk. She doesn’t want a solution. She just wants to go to war.

The hearing started yesterday, and both sides showed up to court ready to fight. I’m keeping my fingers crossed that the case is quickly dismissed, or that reason prevails in court.

Either way, it’s not a great outcome. If Genghis wins, food prices are likely to rise. But even if she loses, she’ll just find some other business to attack, or some other pillar of capitalism to assault.

In Genghis’s mind, lawfare is always and everywhere the answer. And somehow we are all supposed to become more prosperous because of it.

That’s capitalism in the 21st century, folks: the federal government will sue its way into prosperity.

Unfortunately, Genghis Khan is not isolated in her way of thinking. In fact, one of her biggest cheerleaders is none other than Kamala Harris, who has applauded this lawsuit for taking on “corporate greed.”

This is the sad lie they always use try to explain inflation; rather than acknowledge that their own policies and profligate spending have led to higher prices, they blame greed. And promise to sue their way to lower prices. It’s genius.

And it’s not just Kamala either— Joe Biden, Elizabeth Warren, AOC, Bernie Sanders, and a whole bunch of other very vocal supporters (surprisingly from both parties) are all on board with this idiotic approach.

It represents an obvious risk to prosperity and success. And that is something that should be factored into the long term planning of anyone who wants to build anything of value in America.

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

PS-

This doesn’t mean it’s impossible to build or maintain wealth in America. But in this type of environment, there are certain steps that are necessary to take in order to make sure you can come at the problems these people cause from a position of position of strength.

That’s why we started Schiff Sovereign: Premium, a highly educational, month-by-month guide that is designed to help you navigate the world from a position of strength, both personally and financially.  Click here to learn more.

https://www.schiffsovereign.com/trends/how-genghis-khan-is-driving-your-grocery-bill-higher-151339/