Posts in Advice
10 Things Rich People Know That You Don't

.10 Things Rich People Know That You Don’t

By Jocelyn Black Hodes

As a financial adviser, I have occasionally found myself feeling envious of certain clients. Not because of their wealth — but because they were disciplined and determined enough to do all the right things that enabled them to accumulate their wealth and, in many cases, retire early.

 Despite my expertise, I, like a lot of people, sometimes struggle not to do the wrong things that make being rich, let alone retiring at all, a pipe dream.

 Financially responsible and successful people don’t build their wealth by accident — or overnight. Becoming rich takes serious willpower and long-term vision.

You have to be able to keep your eye on the prize of financial freedom, be willing to sacrifice your present wants for the sake of your future and develop good habits to win. Here are 10 habits you can start putting into practice now.

Start early

 As the old saying goes: The early bird catches the worm…or, in this case, gets to retire in style. The sooner you put your money to work, the more time it has to grow.

  Earning a paycheck, whether you are self-employed or work for a company, means the opportunity to contribute to an IRA, which you should seize ASAP.

  If you’re fortunate enough to get a job with a company that offers a matching contribution to their retirement plan, you need to make it a priority to enroll in the plan as soon as you are eligible. It can be the difference between retiring early and never retiring.

 Think about this: If you invested $10,000 and left it to grow for 40 years, assuming an average return per year of 8%, you would end up with over $217,000. But if you waited 10 years and invested $20,000 — twice as much — you would only end up with just over $200,000.

Whatever your situation might be, saving and investing money today is better than waiting until tomorrow. Start now.

 Automate

 You can be your own worst enemy when it comes to financial success. It’s all too easy to procrastinate and neglect what needs to be done and, meanwhile, give in to temptation and spend more than you should. It’s the perfect recipe for not becoming rich.

 The best way to protect yourself from yourself is to automate your savings.

Read More
AdviceDINARRECAPS8

Is Hiring A Coach Worth The Money?

.Is Hiring A Coach Worth The Money?

(And Do I Need One?)

You’re ready to make a significant change or to improve some part of your life. But you’re struggling to do it on your own. You’re finding it challenging to stay on top of “all the things” to know or with motivation or mindset to reach your goal.

Whether the changes we want to make or the goals we want to achieve are related to our health, career, finances, business, relationships, or some other aspects of our lives – we know it takes effort to make progress.

Striving for achievement, we read articles, download apps, buy books, courses, and products. Following blogs, chatting in forums, joining clubs and organizations, and attending conferences are other ways we might try to move closer to our goals.

large post it notes with coaching words being painted on them

Sometimes you find all the information you need and take action without help from others. But you can probably name at least one important goal you haven’t met – even after trying different ways to accomplish it.

If you suffer from impostor syndrome, are uninspired, would like more guidance, and are ready to move to the next level or make a transformative change, but don’t know where to start -you might consider hiring a coach.

Let’s arm you with some info to help you decide if a coach is right for you. After looking at what a coach does for their client, we’ll dive into:

Why hiring a coach can be a smart decision

When a coach is not the answer

Things to look for in a coach

How to make the most of a coaching experience

What is the Role of a Coach?

Even if you have never played a sport, you know coaches help prepare athletes to meet a goal successfully. The job of a coach is to teach, demonstrate, analyze, encourage, motivate, and more.

Read More
AdviceDINARRECAPS8

Currency Exchange Checklist and Tips for Banking Appointment

.From Recaps Archives

Note: All items on the checklist may or may not apply to your own individual circumstances…some of the items listed may or may not still be applicable at your exchange apt....ask your banker at the time of your appointment.

Bank appointment for Currency EXCHANGE Instructions/Checklist

Bank Name_________________________________________

Bank 800#__________________________________________

“I am calling to schedule a foreign currency exchange”

My name is___________________________________________

My zip code is__________________

My e-mail address is  (If they ask for it)________________________________

I have________________________ IQN/IQD (Iraqi)currency

I have________________________VNN/VND (Vietnamese)currency

I have________________________1000 notes from2000 of IDN (Indonesian)currency

I have_________100Trillion,________50Trillion,_______20Trillionand_______10Trillion
2008 AA notes of ZWN(Zimbabwe)currency

Read More

18 Income Producing Assets Part 2 of 2

.18 Income Producing Assets Part 2 of 2

May 14, 2018 By The Money Wizard

12. Real Estate Investment Trusts (REITs)

Ever dream of being a landlord, but the idea of tenant calls and plumbing fixtures has you running for the hills?

Enter REITs, the stocks of the real estate world. Real Estate Investment Trusts are companies which own, invest in, or manage income generating real estate properties. REITs trade on the stock exchange, and you can purchase them just like you would the share of any other company.

Personally, I’ve invested in Vanguard’s REIT Index fund (VGSLX) for several years, which has yielded between 3-4% in that time. The coolest part? With the purchase of one share, I’m suddenly the landlord of residential rentals, commercial real estate, public storage units, and everything in between.

By law, REITs have to distribute over 90% of their earnings to shareholders, which can lead to some seriously high dividend rates. You have to be careful though, as high yielding REITs tend to be extremely volatile.

Want to get really crazy with it? You could buy REITs using 20% of your own money and 80% borrowed money. This approach does a decent job replicating the same leverage experienced when buying a rental property with a 20% downpayment.

Around this time, it’s important to remember the gold rule of finance – there’s no such thing as increased returns without increased risk.

13. Farmland

Generating income through farmland investments

You don’t have to be a farmer to profit off farmland.

39% of all farmland in the United States is rented or leased, so if you can’t grow an ear of corn to save your life, you still have a chance to get a little agricultural with your income streams.

By purchasing a piece of agricultural real estate, you can then rent out your land to farmers looking to expand their operations. This allows the farmers to maintain their capital for other uses, while you collect monthly or quarterly rent checks.

Of course, you can’t just buy a random piece of real estate and hope to start growing crops on it. (Sorry, your backyard garden in city limits won’t cut it.) In fact, the land’s soil conditions have to be right for commercial crop production, and nearly all farmable real estate is already accounted for. In fact, premier pieces of farmland, like high quality cropland in the middle of Iowa’s corn belt, can sell for $10,000 per acre.

Read More
AdviceDINARRECAPS8

18 Income Producing Assets Part 1 of 2

.18 Income Producing Assets Part 1 of 2

18 Income Producing Assets to Generate Serious Passive Income

May 14, 2018 By The Money Wizard

What’s the key to building wealth?   Multiple income streams.

At least that’s what millionaires will tell you. 65% of them have at least three income streams, and nearly 1/3 have 5 or more income streams.

So if you’re still tied to your day job, and you’re serious about reaching financial freedom, then ditch the cars, jewelry, and luxuries. Instead, let’s look into spending our money on the ultimate status symbols: income producing assets.

There is no lower, middle, or upper class. There is the investor class and the people who have to work for a living.”

I’ve always had a special fascination with idea of money flooding in from all directions. I don’t know why, but any time I hear of somebody making money in some oddball way, my eyes light up, and I file it under “Great idea! Life Goals…”

Sure, working your way towards a really high paying salary is cool, I guess. But transforming yourself into a business mogul, with money flowing in from all your different successful ventures? Now that’s winning the money game…

Over the years, this little fascination has left me with more ideas than I know what to do with. Unfortunately, I don’t have unlimited cash to invest in all these possibilities. (yet!? maybe!?) So, in case you’ve got more money laying around than you know what to do with, allow me to introduce…

The Official Money Wizard List of Income Producing Assets

Oh, and before we get too deep into this, no matter which asset you’re invested in, I continue to recommend Personal Capital. Their free software automatically tracks the performance of your income producing assets, including monthly cash flow, annual return, and even free fee analysis. All in one, easy to use dashboard.

The result? Your investment tracking becomes almost as easy the money you’re getting from all your income producing assets.

Read More
AdviceDINARRECAPS8

‘Is It a Bad Idea to Borrow $1K From My Friend?’

.‘Is It a Bad Idea to Borrow $1K From My Friend?’

By Charlotte Cowles

I got laid off a few months ago and I’m still looking for a new job. I’ve been getting by with random work (babysitting mostly), but I’ve finally hit a point where I don’t think I’ll make rent this month.

I can’t ask my parents for help (they’re not in great financial shape either), and at this point, I think my best bet is to borrow money from a friend.

Her family seems well off, so I don’t think I’d be putting her in a tough spot. I also know she lent another friend money a little while ago. I just have no idea how to ask her, and I don’t want it to hurt our friendship.

 If she gave me a loan, ideally around $1,000, I could have some breathing room to search for a good job. How do I go about this? Or is there another, better option that I don’t know about?

If you borrow rent money from a friend — or anyone, really — it will be awkward. Just because your friend can afford to spare some cash doesn’t mean she’s comfortable being in that position. And what if she turns you down? She’ll feel guilty for saying no, you’ll regret asking, and you’ll still be broke.

When I polled some financial experts, they all agreed: It’s generally not a great idea to get into a borrower-lender relationship with friends or even family members. “I’ve seen it ruin friendships, or at least seriously damage them,” says Kristin O’Keeffe Merrick, a financial adviser.

“If one of my clients wants to lend money to a loved one, I always tell them to go into it with no expectation of being paid back.

If they’re comfortable with never seeing that money again, then it’s okay to extend the loan.” Think of this from your friend’s perspective. If, for whatever reason, you never repaid her, would it cause her serious hardship? If the answer is yes, you shouldn’t risk it.

Alternatively, what happens if you take years to repay her? It’s possible that she’ll hold the favor over your head or judge the way you spend money. I know a woman who loaned money to her brother to buy a house, and she says it was hard to watch him make “frivolous” purchases (new sheets, drinks with friends) while she waited two years for him to pay her back.

“I wish we’d been more formal about defining the terms,” she says. “Then I probably wouldn’t have been so anxious about being taken advantage of.” She never told him how she was feeling — just quietly stewed — and money remains a sore spot between them.

No one wants to feel like their personal relationships are transactional. Friendship math — the soft, intimate back-and-forth of giving and taking that happens between people who care about each other — is not numerical, and paying your friend back may not be as simple as cutting her a check.

Read More
Advice, Misc.DINARRECAPS8

"I’m Finally Making Money, But It Doesn’t Feel Great"

.I’m Finally Making Money, But It Doesn’t Feel Great’

By Charlotte Cowles

The Cut’s financial advice columnist Charlotte Cowles answers readers’ personal questions about personal finance. Email your money conundrums to mytwocents@nymag.com

 Dear Charlotte,

For the first time in my life, I’m making a really good salary, and so is my husband. We’ve always been very careful with money. We both maxed out our 401(k)s and IRAs even when we made tiny starting salaries.

We have a healthy emergency fund and an investment account that we filled in our 20s. We have no children, a mortgage with a cheap monthly payment, and healthy parents who support themselves.

Now that we have all these extra funds, we could be saving a lot more, but instead we spend it on fun vacations and nice clothing. I went from a ten-year-old reliable Japanese car to a Tesla, and a random thrift-store purse to a super-nice one from France.

I’m a painter (not my day job) and have bought so much paint on sale that I could probably never buy paint again. Before I even got out of bed yesterday, I spent $450 on a warehouse sale from this brand I’ve become obsessed with. I buy clothes on Instagram constantly.

It’s like now that I have all this extra money, I feel like I’ve become this whole new person I don’t recognize. How can I go back to being someone who’s fine with mismatched plates and thrift-store items, instead of this trend follower with a perfect house filled with nice shit that doesn’t matter?

I understand why you miss your old life. It feels good to live simply and to work toward larger financial goals. The problem, it seems, is that you never really envisioned the life you’d lead once you actually accomplished those goals and had money to spare. Now that your discipline has paid off — you’ve not only attained financial stability, but actual wealth — you don’t know what to do with it.

Your spending feels wild and out of control because you identify as someone who usually shows more restraint. It sounds like you’re struggling to reconcile that responsible part of yourself with the one who wants to live a little — and now has the means to do so.

Read More
Misc., AdviceDINARRECAPS8

The Important Thing About Money That Has Nothing To Do With Money

.The Important Thing About Money That Has Nothing To Do With Money

June 25, 2019  Values: The Overlooked Part About Money You Need to Get Right

Recently on Instagram I saw a group of friends clinking drinks on a trip and felt a pang–I wish I could do that. Not the traveling part. It’s the traveling with the multiple people part that I suck at.

You see, I’m a Vacation Ruiner. The larger the group, the greater the damage.

If you invite me on your trip I can guarantee that there will be a tempo mismatch–what everyone wants to do at a relaxed pace I’ll want to fly through. And when people want to go to a museum I’ll undoubtedly show up in waders ready to go fishing. My presence will create an unmistakable tension that will ensure you have a terrible time on a trip you’ve spent thousands of dollars on and hours planning.

On my first group trip, one of my friends quietly cancelled the rest of the trips we had planned.

And on the second trip, nobody said a word the entire three-hour car ride home.

It didn’t take long before I realized I was the common denominator.

In case you think I’m a jerk for no reason, let me explain: Everyone’s got something that drives their behavior. Later I realized what it was about the trips that turned me into an awful travel companion.

Group trips stifled things that I value very very much: independence, exploration and the opportunity to problem solve on my own. Being able to do things how I want and when I want. When you think about it that way, six people on a trip with only one car was a disaster in the making. And when I look back even to my childhood, it’s crazy how my values have driven so many of my decisions:

From getting mad at a teacher for trying to help me pick out a holiday card. To being banned from field trips in high school, because I ran off from the rest of the group. Then after college avoiding a full-time job for three years. (Like really, who does that?)

Have you noticed something like that in yourself? A value that you hold so strongly to the core, that it steers everything you do?

Read More
AdviceDINARRECAPS8