Foreigners Own Less US Government Debt—Is That a Good Thing? [Podcast]

Foreigners Own Less US Government Debt—Is That a Good Thing? [Podcast]

Notes From the Field By James Hickman (Simon black)  July 23, 2025

The US owes a LOT less money to China today than it did a few years ago. As recently as three years ago, for example, China held $1.3 trillion worth of US government bonds. Today they’re down to around $750 billion.

In other words, China’s government has decided to cut back on its US dollar Treasury holdings by more than 40% over the past three years.

And at first, that might sound like a good thing— HOORAY! More independence from foreign creditors! America is better off without that Chinese money! Right?

But in reality this is a huge problem. Because it’s not just China.

• Going back to the years before Covid, roughly a third of US debt was owned by foreigner governments and foreign central banks.

• But then federal debt skyrocketed during the pandemic, and US government credibility plummeted. Even the government’s credit rating has been slashed.

• As a result, foreigners across the board began stepping back from Treasury securities.

• Today foreign ownership of US debt is less than 25%, and falling. This is a significant drop in just a few years.

Why it matters:

The US Treasury relies heavily on foreign capital to fund the federal government’s gargantuan (~$2 trillion) deficits. So if foreigners’ appetite to buy US government debt is waning— at a time when federal deficits are exploding higher— where will the Treasury Department come up with the money?

There are essentially two answers. Either (1) the Federal Reserve will “print” the money, or (2) domestic investors within the US economy will buy government bonds and fund the deficit.

But both of those options come at a significant cost.

Consequences of the Fed funding US government deficits:

• In order for the Federal Reserve to buy US government bonds (and essentially fund the government’s annual budget deficit), the Fed must first expand the money supply.

• We often refer to this as “printing money” even though it all happens electronically. The Fed calls it “quantitative easing”, or QE, but it’s all the same thing.

• The consequence of QE is inflation. Serious, serious inflation.

• Think about it— during the pandemic, the Fed’s QE created roughly $5 trillion in new money... resulting in 9% inflation.

• Creating enough money to fund federal budget deficits over the next decade could result in the Fed having to print $15+ trillion. So most likely that’s going to be a LOT of inflation.

Consequences of the US economy funding government deficits:

• American investors, i.e. banks, funds, corporate treasury departments, etc. could also buy more US government bonds in order to offset waning foreign demand.

• But this capital comes at a big opportunity cost

• Any private capital that goes in to the Treasury market means less money available to buy stocks, fund venture capital, or finance real estate mortgages

• The net result is lower stock prices, higher mortgage rates, and slower innovation.

Why China is first to ditch US government bonds:

After sanctions on Russia, which included freezing their Treasury holdings, other countries got spooked — especially China.

• China probably fears becoming the next target of US financial weaponization.

• This may also be an indication that they will eventually invade Taiwan

• So China is hedging: they’re selling their US government bonds and buying literal metric tons of physical gold— driving gold prices to record highs.

The bottom line:

The shrinking foreign appetite for US debt is a glaring red flag. It signals waning confidence in US fiscal credibility and could lead to a capital squeeze at home — or nasty inflation spiral if the Fed fills the gap.

Many Americans might cheer the idea of being less reliant on Chinese or other foreign money. But in reality, foreign investment in government debt is the closest thing to a ‘free lunch’ in economics.

It means that foreigners are financing federal deficits, meaning less inflation at home, and allowing private capital to invest directly in the US economy.

Losing this benefit is a bad thing for America.

You can listen to my full thoughts on the matter in this brief Podcast.

For the audio-only version, check out our online post here.

Finally, you can find the podcast transcript for your convenience, here.

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

https://www.schiffsovereign.com/podcast/foreigners-own-less-us-government-debt-is-that-a-good-thing-podcast-153214/?inf_contact_key=2a6ba1599a555917052563664b72615eb218dc52b043bf6dfa73846fd56e3920

This Is How Most Americans Actually Become Millionaires

It’s Not Glamorous, but This Is How Most Americans Actually Become Millionaires

John Csiszar  Sat, August 9, 2025  GOBankingRates

You may be surprised to find out that about 18% of Americans are millionaires, translating to roughly 25 million individuals, according to a report by Wealth Management USA. And while there are plenty of ways to accumulate a seven-digit net worth, some avenues are more common than others.

Many millionaires start their own business or invest in real estate to earn their riches, while others imply inherit the money. But the number one way that Americans become millionaires is actually within reach of average workers, provided they start early and stick to their plan.

Here’s the “boring” path to riches that doesn’t involve starting a business, investing in real estate or inheriting the money.

Consistent Investing

Want the “easy” way to a million dollars? Continually invest on a regular basis.

According to a report from Morningstar, investors who have $1 million or more in their Fidelity 401(k) accounts consistently invest, typically every two weeks or every month. They don’t trade in and out of aggressive investments, like leveraged ETFs, but instead simply sock away their money on a regular basis into their “boring” investments.

What’s the Secret?

There are a number of reasons why consistent investing is the “easy” path to $1 million. First, regularly adding money to your investments regardless of the market environment ensures that you’ll get an average price. You’ll be buying more stock when prices are low and less when prices are high. You won’t be putting all your money in either at the absolute bottom or at the peak — but since the long-term trend of the market is up, getting that “average” price provides a significant return.

Second, by consistently investing in “boring” options like mutual funds, 401(k) funds or high-quality stocks, you won’t be taking on excess risk. With automated contributions coming out of your paycheck or bank account, you won’t get tempted to chase the latest investment fad, a mistake that costs many novice investors their entire bankroll.

As preservation of capital is half the battle when it comes to building wealth, automatically contributing to relatively “boring” investments can help protect your bankroll over the long run.

The third reason why consistent investing works is a simple one. If you continually add money to your account, you’ll have more money in it.

TO READ MORE:  https://www.yahoo.com/finance/news/no-1-way-americans-become-150405344.html

How To Prevent a Rocky Economy From Derailing Your Financial Goals

How To Prevent a Rocky Economy From Derailing Your Financial Goals

Cindy Lamothe  Wed, August 6, 2025  GOBankingRates

When the economy starts acting up — think rising prices, stock market swings or constant chatter about a possible recession — it’s totally normal to feel anxious.

One survey by Equitable Holdings revealed that only 42% of Americans feel prepared to navigate shifting financial challenges, including potentially higher costs from tariffs, market volatility and lingering recession concerns. When those challenges hit, suddenly, the financial goals you’ve been working toward can feel like they’re slipping out of reach.

But here’s the truth: A rocky economy doesn’t have to derail your progress. With a few grounded strategies and a little flexibility, you can keep moving forward — even when the economic forecast looks a little stormy.

Rethink Inflexible Goals

According to Kevin Huffman, finance specialist, owner and senior contributor at Kriminil Trading, Americans need to focus on flexibility as much as ambition

“The trick is to create a financial plan resilient enough to bend without breaking,” he said.

To get there, he suggested starting by rethinking inflexible goals into more flexible targets like working toward a certain savings threshold by a particular year rather than dwelling on a retirement age. Then, section those goals out in 90-day checkpoints to make course corrections for the unexpected without interrupting your momentum.

Automate Your Good Habits

TO READ MORE:  https://www.yahoo.com/finance/news/prevent-rocky-economy-derailing-financial-102838605.html

13 Ways To Save Money Right Now, According to George Kamel

13 Ways To Save Money Right Now, According to George Kamel

Ashley Donohoe  Thu, August 7, 2025  GOBankingRates

A May 2025 McKinsey & Company survey found that inflation and tariffs topped the list of concerns for Americans, with 32% of respondents having changed their spending and another 31% planning to.

Whether you need to save money out of necessity or just want to progress more quickly toward a goal, you can do so without giving up the essentials or living an extremely frugal life.

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In a recent YouTube video, money expert George Kamel discussed many creative and simple ways to cut costs. Think about which of these strategies might work for you.

Find a Roommate

While you could move to a cheaper place, finding a roommate is an easier cost-saving option. Between splitting the rent and utilities, you could save several thousand dollars each year, with the catch being that you give up some privacy.

Kamel suggested carefully vetting your potential roommate to find a responsible match.

Get Rid of Private Mortgage Insurance

If you bought your house with a conventional mortgage with a low down payment and now have at least 20% equity, you can contact your lender to see if you can stop paying for private mortgage insurance (PMI).

Fannie Mae noted that the typical cost is around 0.58% to 1.86% of your loan amount each year, so you could see significant savings in your mortgage payment.

Bundle Your Utilities

Kamel suggested bundling services through one provider for potential savings. For example, major cable TV companies like Xfinity and Spectrum offer internet, home phone and cellular services in packages. It’s also worth shopping around with a competitor if you already have a bundle that has become more expensive after your promo period expired.

Set Up Automatic Payments

Not only does using autopay help you avoid the costs of late payments, but your provider might even offer a small discount. You’ll often find this perk available for insurance premiums, utility bills and certain loan payments. Just make sure to have the funds available when the payment is due.

Be More Energy-Efficient

TO READ MORE:  https://www.yahoo.com/lifestyle/articles/13-ways-save-money-now-143834993.html

Travel Experts: Don’t Keep Your Money in These 6 Places While Traveling

Travel Experts: Don’t Keep Your Money in These 6 Places While Traveling

Caitlyn Moorhead    Mon, August 4, 2025  GOBankingRates

Though paper money has gone the way of the dodo in many respects, sometimes when you travel you just want some cold hard cash at hand to make life easier. While many people don’t carry cash at all, others have go-to methods of storing their money.

Whether you’re a frequent or casual traveler, it’s important to know where to keep your money so that it doesn’t get lost or stolen while you’re on your trip. Here are six places you should never keep your cash when traveling.

Outer Pockets of Backpacks or Luggage

You should be aware that when it comes to specific areas of storage on your bag or luggage, some are safer than others. For example, the back or outer pockets of your backpacks or luggage compartments are not the best place to keep your money while traveling. Not only do these places lack security, but they’re also easily accessible to pickpockets.

Unattended Hotel Room

Your hotel room might not be as secure as you think. Even if it’s highly rated and in a safe area, you still shouldn’t leave your money out in the open in your room. For instance, try not to leave your card on the side table of your hotel room when you go sightseeing or out for the day. You never want to leave your information or money vulnerable to being easily stolen.

Alternatively, if you want to leave something in your room, opt for hotel room safes, as they are the best go-to choice for locking away passports, cash and valuables. One of the best investments you can make when traveling is in your peace of mind.

In One Place

Unfortunately, savvy thieves know how to spot tourists who can become targets if they know they have money and are ready to use any opportunity to steal it. Be careful when travelling abroad and try to distribute your money across several locations rather than keeping it all in one place.

TO READ MORE:  https://www.yahoo.com/shopping/style/clothing/article/build-the-ultimate-summer-to-fall-wardrobe-with-our-favorite-under-50-staples-213028728.html

This Money Expert Says ‘Savers Are Losers’ — Is He Right? Experts Weigh In

This Money Expert Says ‘Savers Are Losers’ — Is He Right? Experts Weigh In

Dawn Allcot  Tue, August 5, 2025  GOBankingRates

Robert Kiyosaki, finance expert and “Rich Dad, Poor Dad” author, has been known for straight talk about the economy. In a recent tweet, he said, “Savers are losers.”

He pointed out that the U.S. Federal Reserve’s way to avoid economic disaster is to print more money. He listed the 1987 market crash, the 1998 long-term capital management (LTCM) crash, the 2019 repo market seizure, the COVID-19 pandemic and the Silicon Valley Bank failure as examples.

 “It’s not a new crisis….it’s the same crisis getting bigger,” he wrote. Then, he warned, “Stop saving FAKE $. Start saving real gold, silver, Bitcoin. Protect your wealth. America is the biggest debtor nation in history… because of the FED. The Biggest Crash in history is coming….soon.”

Is Kiyosaki Right?

By most economic markers, experts said we are not heading for a recession this year. “As of now, the slight jump in inflation may be tied to tariffs, but there’s nothing in the data suggesting an imminent recession,” said Stephan Shipe, Ph.D., CFA, CFP, a finance professor at Wake Forest University and founder of Scholar Financial Advising.

Even so, inflation causes problems with saving, rather than investing. If your money in the bank is growing only at the national average of 0.38%, according to Federal Deposit Insurance Corporation statistics, but inflation is 2.7%, according to U.S. Bureau of Labor Statistics, you’re losing money. A better choice would be a high-yield savings account delivering returns of around 3%, but even then, you’re just barely keeping pace with inflation.

“Given the government’s massive money printing today and foreseeable future, the fiat currencies are devalued consistently through time. The U.S. dollar’s purchasing power is cut by half every 15 to 20 years,” explained CK Zheng, co-founder and chief information officer of ZX Squared Capital.

Technically, savers are losers in that they could end up losing purchasing power over time due to inflation. But even so, finance experts like Suze Orman and Dave Ramsey recommend some funds in an easily accessible, liquid savings account for small emergencies like car or home appliance repairs. “The truth of the matter is 75% of the people in the United States do not have at least $400 in savings for an emergency,” according to Orman in a recent GOBankingRates article

If you don’t have any high-interest debt, according to the Ramsey Solutions blog, you should strive to save three to six months’ worth of living expenses in an emergency savings account.

Should You Put Money Into Alternative Assets?

TO READ MORE:  https://www.yahoo.com/finance/news/money-expert-says-savers-losers-141608997.html

How To Save Thousands If You Want To Buy A Car

How To Save Thousands If You Want To Buy A Car

Moneywise  Sun, August 3, 2025

US car market bankrupting Americans — and it’ll only get worse.

The U.S. car market faces a perfect storm that is rapidly engulfing ordinary car owners across the country. The clearest warning sign is the rising rate of auto loan borrowers who are falling behind on their monthly payments.

As of January this year, 6.6% of subprime auto borrowers were at least 60 days past due on their loans, according to a report by Fitch Ratings.

This is the highest rate since Fitch started collecting this data in the early 1990s. And things are not expected to get better. The report says the subprime segment of the auto loan market faces a “deteriorating outlook” for the rest of 2025.

This is especially alarming given the scale of the auto loan market. As of the first quarter of 2025, households carried  $1.64 trillion in auto loan debt — surpassing both the $1.18 trillion in credit card debt and the $1.63 trillion in student loan debt, according to Debt.org.

Here’s how cars transformed from symbols of freedom to symbols of unsustainable, toxic debt.

How did we get here?

The foundation of today’s crisis was laid five years ago during the pandemic. Supply chain disruptions and factory closures created strange dynamics that pushed car prices higher.

In January 2022, 80% of new car buyers paid more than the manufacturer’s suggested retail price, or MSRP, according to Edmunds. Used car prices were rising faster than new car prices at the time, according to Cox Automotive.

In other words, car buyers paid too much for their cars.

Now, values have declined while many owners have seen a steady rise in interest rates. This shift has pushed many car owners underwater on their purchase.

In fact, one-in-five vehicle trade-ins near the end of last year had negative equity of $10,000 or more, according to Edmunds. The situation is grim, and the outlook is just as bleak.

What comes next?

While the auto market is dealing with rising interest rates and dropping prices, it’s now also facing the additional challenge of President Donald Trump’s trade war.

TO READ MORE:  https://finance.yahoo.com/news/us-car-market-bankrupting-americans-142900117.html

How Much Money Would Your Kid Have at Retirement If You Invested $5 a Month From Birth?

How Much Money Would Your Kid Have at Retirement If You Invested $5 a Month From Birth?

Peter Burns  Sun, August 3, 2025   GOBankingRates

It’s obvious that those who start saving early end up with a lot more for retirement. But, what if you started saving for your kid from the moment they were born? Putting a small amount away each month, even as little as $5, would amount to $60 saved per year. By the time they reach full retirement age of 67 (for most), you will have $4,020 saved up. This number isn’t very impressive on its own, but if you take advantage of compound interest, you’ll be looking at a much higher number.

Compound interest is when you earn interest on an investment and, over time, earn interest on the interest you’ve already earned. For example, if you invest $100 and earn 5% interest on it each year, you’ll earn $5 your first year. At the beginning of the second year, you’ll have $105. When you earn 5% on your new amount, you’ll make $5.25 and go into your third year with $110.25. As time goes on, the amount you earn from interest balloons even if you don’t add any more to the initial amount.

So, if you invested $5 for your kid each month, would they have thousands or millions by the time they retire? We used 67 as full retirement age since that’s what it currently will be for future retirees. Here’s what the numbers look like.

$5 per Month

For most people, it’s relatively easy to set aside $5 each month for savings. If you put down an initial $5 investment and then start putting that same amount each month into a fund that earns 7% and compounds monthly for your child, it would start to add up and look like this:

• Year 1: $67.32

• Year 5: $365.05

• Year 10: $875.47

• Year 20: $2,624.83

• Year 30: $6,140.44

• Year 40: $13,205.62

• Year 50: $27,404.26

• Year 60: $55,938.70

• Year 67: $91,719.74

With a compounding interest of 7% each month, you effectively add $87,694.74 of interest to the $4,025 that you actually set aside. Not bad for a $4,025 investment spread out over 67 years.

$15 Per Month

While having around $92,000 isn’t bad, it’s not enough for retirement. The median amount that retirees have saved by the time they’re in their 60s is $539,068. Let’s see what happens when the savings amount increases to $15 under the same conditions. Here’s how the math breaks down:

TO READ MORE: https://www.yahoo.com/finance/news/much-money-kid-retirement-invested-130205712.html

7 Valuable Lessons About Saving Money

7 Valuable Lessons About Saving Money

Sean Bryant GOBankingRates

Growing up with frugal parents, I was often the kid who was teased for having secondhand clothes, not going on vacations, and bringing generic-branded food to school. However, now that I am an adult, I am very thankful for the valuable lessons my parents taught me about saving.

It has shaped my views on money, spending, saving and finances in general. While many of my friends have struggled with debt or excessive consumerism, I have never had to face these issues.

Within this article, I’ll go through some of the valuable life lessons my frugal parents taught me about money.

Distinguishing Needs From Wants

Growing up with frugal parents taught me the valuable skill of distinguishing between my needs and wants. While my friends were often caught up in the latest trends and fads, my parents refused to buy every item I asked for. Instead, they emphasized the importance of prioritizing needs, like a new winter coat, over wants, like the newest toy.

This is something that I have carried through to my adulthood. Now, I try to focus on essential expenses and cut back on frivolous spending. This has helped me make informed financial decisions and avoid unnecessary debt.

How To Budget

I also learned how to budget and the importance of budgeting. I observed my parents tracking what they spent and saved as a child. They were careful not to spend more than they could afford.

If they had a goal, they saved towards it. This early exposure to budgeting taught me how to set my own clear financial goals and how to allocate resources according to those goals.

“Children in frugal households witness budgeting as a regular activity,” said Jake Claver, CEO of Syndicately. “This exposure naturally ingratiates the concept of budgeting in their daily lives.

It becomes less of a chore and more of an integral part of their financial routine. By learning to allocate resources and plan expenses from a young age, children are better equipped to manage their finances effectively as adults.”

Delayed Gratification

Delayed gratification is a lesson I was more reluctant to learn as a child but one I am now thankful for as an adult. When there was something that I wanted to buy, my parents encouraged me to wait and to think about the purchase and what it would mean in terms of longevity, monetary value, and the value I placed on the item. They then encouraged me to save my money and if I still wanted to purchase the item later, I could.

TO READ MORE: https://finance.yahoo.com/news/grew-frugal-parents-7-valuable-000019101.html

4 Simple Money Habits From Mark Cuban That Could Transform Your Life

4 Simple Money Habits From Mark Cuban That Could Transform Your Life

Peter Burns  Sat, July 26, 2025   GOBankingRates

For those trying to build wealth, Mark Cuban is a perfect example of how to get it done. From living in a shabby apartment with roommates to currently having a net worth of $6 billion, Cuban has made smart money moves that paid off big.

While some of the moves he made to get to where he is were complex, he used a lot of simple strategies as well. Here are four of Cuban’s most helpful money habits that can help you improve your finances.

Don’t Use Credit Cards

When asked about credit cards, Cuban has repeatedly said, “If you use your credit cards, you do not want to be rich.” It’s a valid point, as credit cards have left many in crippling debt. In 2024, the average consumer debt from credit cards was $6,730 per person. Adding a high interest rate to that amount each month can quickly derail any attempts you’re making to build wealth.

Cuban said the best way to invest is to pay off your credit cards and then cut them up. Currently, the average credit card interest rate is around 20%. As Cuban explained, if you pay off your credit card, you’ve just earned that amount of interest back instead of continuing to pay it.

Live Below Your Means

Even after Cuban had made millions, he was careful with his money. When he was just coming into his wealth, he read a book called “How to Retire by the Age of 35,” which told him to live like a student and save as much as he could. He then called his broker and told him to invest his money as if he were a 60-year-old, despite his young age. Cuban said he was worried that he would lose that money and wanted to live off of it for a long time.

Living below your means involves spending less than you earn. This will keep you out of debt and let you put more money toward your savings and investments. You can live below your means through careful planning and intentional spending.

TO READ MORE:  https://www.yahoo.com/lifestyle/articles/4-simple-money-habits-mark-121814224.html

3 Key Signs You’re Losing Money By Saving Too Much

3 Key Signs You’re Losing Money By Saving Too Much

Andrew Lisa  Sat, July 26, 2025  GOBankingRates

Saving money is essential, but saving too much in a traditional savings account could be quietly costing you. If you’ve already maxed out your 401(k) contributions, built a robust emergency fund that exceeds the recommended three to six months of living expenses, and still have cash piling up, it might be time to rethink your strategy.

While it’s great to be financially cautious, over-saving can mean missing out on better returns and long-term growth. Not sure if you’re overdoing it? Here are three key signs that your savings account might be too full — and what you can do to make your money work harder for you.

Your Emergency Savings Is Overstuffed

Building an emergency fund is a smart financial move, but there is such a thing as saving too much. The general rule of thumb is to set aside three to six months’ worth of living expenses. But once you’ve hit that target, continuing to stuff your emergency fund can be a waste.

“Having excess cash beyond an emergency fund can mean missing out on potential returns from investing,” said Fluent in Finance founder, Andrew Lokenauth. “The opportunity cost of playing it too safe with savings can be substantial over decades.”

So, how much is enough? It depends on your lifestyle and income stability. According to Christopher Stroup, a certified financial planner (CFP) with Abacus Wealth Partners, dual income households can typically aim for three months of expenses. On the other hand, single-income earners or those with variable income should aim for six months for added financial security.

Once you have a solid emergency cushion in place, you should consider putting your excess money towards other investments.

You’ve Maxed Out Your Retirement Accounts

If you consistently have money left over after maxing out your IRA, 401(k) and other tax-advantaged retirement accounts each year, it may be time to put that money elsewhere. Saving for the future and your retirement is crucial, but you could be losing purchasing power to inflation over time as your cash earns little interest.

As accredited financial counselor and founder of Retire Certain, Camille Gaines explained, even the most high-yield savings accounts lose value to inflation over time. Instead, try putting that extra money somewhere it can do more for you, like in a money market account.

“Safe money market accounts that do not fluctuate in value can be seen as a good alternative to keeping money in a savings account that pays little interest and has a negative real return after inflation,” said Gaines. “More than two months’ worth of living expenses in a savings account is too much given the ability to earn around 5% from easily accessible money market accounts.”

Money market accounts — not to be confused with money market funds — deliver yields that are typically higher than standard deposit accounts with some checking account features like bill pay and limited monthly check writing. By redirecting your surplus cash into more productive accounts, you can earn more on your money over time.

Your Savings Are Growing, But So Is Your Debt

TO READ MORE:  https://www.yahoo.com/finance/news/5-key-signs-keeping-too-140047713.html

What Every Millionaire Can Learn From Jimmy Buffett’s Mistake

$275M Inheritance Fight: What Every Millionaire Can Learn From Jimmy Buffett’s Mistake

Angela Mae  Tue, July 22, 2025   GOBankingRates

Renowned singer-songwriter Jimmy Buffett died in September 2023, leaving behind a $275 million estate. The bulk of Buffett’s assets went into a marital trust with his widow, Jane Slagsvol, as the main beneficiary. Slagsvol is a co-trustee, along with Buffett’s long-time business manager, Richard Mozenter.

Unfortunately, there’s been a massive legal dispute between Mozenter and Slagsvol over that trust. Specifically, Slagsvol is petitioning to remove Mozenter as co-trustee for three primary reasons.

The first is that he’s failed to generate enough income with the trust’s investments. The second is that he hasn’t kept her abreast of the trust’s various investments, expenses and income. And the third is that, according to her, Mozenter has been “openly hostile” and appears to be working against her best interests.

According to Slagsvol, the trust is estimated to receive less than a 1% return rate — not enough to cover her annual expenses. Along with this, Mozenter received $1.7 million in trustee fees in 2024.

In response to all this, Mozenter also seeks to remove Slagsvol as co-trustee.

If you’re a millionaire, you could learn a few things from the way Jimmy Buffett handled his estate so you don’t make the same mistake.

Choose Your Trustees Carefully

When you have a massive estate, it’s crucial that you choose your trustee — or trustees — carefully. It’s not always enough to pick someone you’ve known for a long time or who you’re married to.

“Choose your trustee like you’d choose a CEO; someone trustworthy, financially literate and emotionally neutral. If you don’t have that person within the family, appoint a professional or corporate trustee,” said Craig Parker, assistant general counsel at Trust & Will and a California state bar-certified specialist in estate planning, trust and probate Law.

With larger, complex estates, having co-trustees can be a good strategy. But you’ll want to make sure they trust one another and work well together. If all else fails, you could name a trust protector who will step in if either trustee can no longer perform their role.

Be Extremely Clear With Your Estate Plan

The importance of being clear with how you want your assets managed and doled out can’t be understated. While Buffett might have believed choosing his wife and business manager as co-trustees was enough, anything that’s left unclear can lead to major legal battles down the road.

“Clear, detailed estate planning is essential. That means establishing a comprehensive trust, updating it regularly and communicating intentions openly with beneficiaries,” said Parker. “Clarity reduces conflict; vagueness invites it.”

TO READ MORE:  https://www.yahoo.com/finance/news/275m-inheritance-fight-every-millionaire-160124796.html

7 Frugal Money Habits That Could Destroy Your Finances

7 Frugal Money Habits That Could Destroy Your Finances

Cynthia Measom   Wed, October 16, 2024  GOBankingRates

If you find yourself constantly looking for ways to save every single penny, you might be overlooking the bigger picture. Frugality, while an admirable trait, can lead you to make choices that might seem smart in the short term but actually cost more in the long term regarding finances, time and quality of life.

 “Letting the concept of frugality take over life so you are neglecting the bigger picture for small savings can backfire,” said Allison Sanka, accredited financial counselor, financial coach and principal and founder of Journey Financial Wellness. “That immediate dopamine hit of saving a few cents that makes you feel like you’re making progress towards your financial goal — like paying off debt or saving — can actually cost more if you do the math.”

Here are seven frugal habits that aren’t actually good for your finances.

Driving Miles to Different Stores To Get Good Deals

Sanka said that while the savings you might gain by driving from store to store to save a few dollars on sale items versus shopping once a week at one store might seem like a good idea, it’s not. Instead, she said any savings will likely be wiped out when you figure in the cost of your time, gas and wear-and-tear on your vehicle.

Driving To Another Town To Save on Gas

Sanka also said that driving to the next town to save 10 cents a gallon on gas could be more costly than the savings. For example, if your car holds 15 gallons, and you need 14 gallons to fill it up, you’ll save $1.40. Arguably, that could add up to over $140 over the course of the year if you fill up a couple of times a week, but you also have to think about whether that savings is worth your time, gas expenditure to get there and back and the wear-and-tear on your car.

Totally Depriving Yourself of Something You Enjoy

“You will not get rich by not ever buying a $4 coffee and depriving yourself of something you enjoy from time to time,” Sanka said. “Again, it’s about balance; instead of coffee out every day, try buying coffee as a treat on Monday mornings to get you going for the workweek. Then you can look forward to it as a treat.”

Buying Stuff Only Because of the Low Price

Sanka said that focusing on the low cost of an item instead of the need is a mistake that’s not good for your finances. “I see people in the frugal community buying things simply because they’re 75% off or they have a coupon for it (sometimes a marketing tactic to get you to spend) even if it’s not a need,” she said. “If you spent $5 on something you don’t really need, you spent $5 too much.”

Buying Items in Bulk When You Don’t Really Need Them

TO READ MORE:  https://www.yahoo.com/finance/news/7-frugal-habits-aren-t-110109306.html