.The Federal Reserve Might As Well Use Carrier Pigeons

The Federal Reserve Might As Well Use Carrier Pigeons

Notes From The Field   By Simon Black
August 13, 2019   Spoleto, Italy
 
The Federal Reserve Might As Well Use Carrier PigeonsThe Federal Reserve Might As Well Use Carrier Pigeons

In the early 1760s, Mayer Rothschild began building a banking dynasty that would last for centuries.

The elder Rothschild sent his five sons across Europe to establish banks in cities like Paris and London.

One son, Nathan Rothschild, took the lead and expanded the family’s banking dynasty.

With siblings in different countries, the family now had a trusted network of lenders with whom they could finance large government projects like infrastructure and war.

To quicken the pace of their financial transactions, the brothers used a network of carrier pigeons to send messages to one another across Europe.

This allowed them to quickly react to financial news from other markets. That way they could always be the first in a local market to react to news from abroad.

Bad news in Paris markets could be sent by pigeon to London, where Nathan could sell a stock that would be negatively affected.

Things have gotten a lot faster these days

Scientists have discovered how to accelerate an ion to 99.9999% the speed of light.

The Internet allows us to speak to someone across the globe, instantaneously, anytime of day or night.

We’re even on the verge of commercial space flights. By 2023, SpaceX plans to send a Japanese billionaire around the moon.

And yet, despite all this speed, it can still take several DAYS to send money from one person to another using the traditional banking system.

Rather humorously, the Federal Reserve announced last week that a ‘real time’ payment system would be (hopefully) released in about FOUR YEARS time.

Bear in mind that companies like PayPal that allow for real time payments have been around for 20 years. Cryptocurrencies like Bitcoin have been around for more than a decade.

And now, FINALLY, the Federal Reserve might get around to implementing the same thing.

This is pretty crazy when you think about it. The Fed is supposed to be leading the way in banking; they’re the top regulator and largest central bank in the world.

But they’re hilariously far, far behind the rest of the industry.

Domestic money transfers in the United States rely on the ‘ACH’ payment network to send and receive money.

If your paycheck is direct deposited into your bank account, or mortgage payment automatically deducted, these typically use ACH.

 
ACH payments take 2-3 DAYS to clear. That’s totally insane in this day and age. Seriously, the Rothschilds’ network of carrier pigeons didn’t even take that long.

And if you’ve ever dealt with international financial transactions, you have probably heard of the SWIFT network

SWIFT is a worldwide banking network that allows financial institutions to ‘securely’ send and receive messages about wire transfers and payments.

I’m putting ‘securely’ in quotes because the system has been hacked a number of times. And it runs on pathetically outdated technology. 

As many readers know, I own a bank. And I’ll never forget when we joined SWIFT, they told us that in order to run some of their software we needed to install an obsolete version of Windows that Microsoft stopped supporting years ago.

Seriously? This is the ‘secure’ system that is responsible for trillions of dollars of worldwide financial transactions?

Nearly every major worldwide banking authority is playing a pitiful game of catch-up with non-bank technology companies that have developed vastly superior ways to conduct financial transactions.

Think about it-- nearly every single function of a bank-- deposits, loans, foreign exchange, payments-- can be done better, faster, and cheaper outside of the banking system.

You can hold money in the Blockchain (or even something low-tech like T-bills, which pay 100x more interest than your bank account. Or gold.). You can borrow money from peer-to-peer websites. You can send money with firms like Venmo or TransferWise.  LINK

Banks are becoming useless antiques. And by the time the Federal Reserve has figured out how to make real time payments, I expect the technology at that time will have leapfrogged their best efforts.

Facebook could easily have hundreds of millions of people using its digital currency Libra within 12 months.  LINK

So sending money could become as easy as sending an email, all without using a bank, and three years before the Fed joins the 21st century.

Until tomorrow,

To your freedom and prosperity, Simon  Black,  Founder, SovereignMan.com

.The Key To Successful Investing Is Patience

The Key To Successful Investing Is Patience.
Tanza Loudenback 

​The CEO of a $13 billion investment firm says there's one lesson everyone has to master to build wealth: patienceThe Key To Successful Investing Is Patience

Compound interest is the most important concept to understand about money, Mellody Hobson said.

Mellody Hobson, a co-CEO of Ariel Investments, told the New York Times that the key to successful investing is patience.

Patience leads to compound interest, which is the most important concept to understand about money, Hobson said.

She cited Warren Buffett as an example of a patient investor. The CEO of Berkshire Hathaway once said, "There is nothing wrong with getting rich slowly.".

"Good things come to those who wait" is more than an old English proverb. In the investing world, it's regarded by many as the rulebook for success.

In a recent interview with the New York Times, Mellody Hobson, a co-CEO of Ariel Investments, a Chicago-based investment firm with nearly $13 billion in assets under management, said patience is one of the key ingredients to building wealth.

In fact, it's an integral part of the investing approach at Ariel Investments, where Hobson has worked for nearly 28 years, the Times' David Gelles reported.
 
"We talk about long-term patient investing, and that idea that slow and steady does win the race, that time can be your best friend when it comes to investing," Hobson told Gelles. "That's why we have a turtle as a logo at Ariel."

Hobson, who also serves on the boards of JPMorgan Chase and Starbucks, said "it's never too late" to get started investing, but regardless of where you are and who you are, the same lessons apply.

To continue reading, please go to the original article here:

https://www.businessinsider.com/ariel-investments-ceo-mellody-hobson-build-wealth-patience -advice-2019-7

.Don’t Worry; Be Resilient Reduce Fragility & Vulnerability

Don’t Worry; Be Resilient
Reduce Fragility & Vulnerability
By  Charles Hugh Smith

At some point, absorbing more information about the unsustainability of modern society yields diminishing returns. It becomes emotionally draining and thus counterproductive.

Part of this exhaustion results from recognizing our powerlessness within the Status Quo, where independent thinking and structural innovation are intentionally winnowed out as threats to existing institutions and industries.

Another part arises from the burden of knowing that the supposedly permanent Status Quo is far more vulnerable than generally believed. I have described the psychology of knowing what lies ahead in The Burden of Knowing.

A related factor that is never publicly discussed is the negative impact on our mental health of all the propaganda that we are force-fed by the Mainstream Media (MSM). 

When truth is incrementally undermined by massaged data and behind-the-façade manipulation, we lose faith in key State and media institutions and suffer from a propaganda-induced disconnect between what we see and what is reported as fact.

These 'burdens of knowing' can diminish the small but real joys of the present: work we like, a home-cooked meal, and time spent with our friends and family.

As a result, many smart, well-informed people consciously refuse to dwell on our systemic problems because doing so “is a downer.” These folks hold the perspective that anxiety about the future should not get in the way of the simple pleasures of living.

This attitude can be described as “don’t worry; be happy.” And it certainly makes sense when life is still comfortable and enjoyable.

​But the philosophy of “thinking about the future is a downer, so I live in the present” ultimately rests on a false confidence that the future will take care of itself, regardless of what happens to the large-scale systems of State, finance, and resources.

It overlooks the reality that not all responses to instability or devolution are equally successful. Those who are totally dependent on the Central State and speculation-based markets will have a much more difficult time maintaining their "happy” view if the systems they depend on erode or fail.

Perhaps the wiser response is “don’t worry; be resilient.”  The resilient household can be happy not only in the present surplus of energy, entitlements, goods, and services, but can also thrive in a future where the current surplus of cash, credit, and speculative gains has dried up.   
What is Resilience?

What is resilience?  A dictionary definition is “an ability to recover from or adjust easily to misfortune or change.” In other words, it is on the other end of the response spectrum from fragility, brittleness, and vulnerability.

In terms of individual psychology, resilience can be characterized as being able to roll with the punches, maintaining a positive attitude through difficult times, and focusing on developing successful responses to misfortunes and challenges.

American culture extols individual resilience, and we are taught to think that the individual can overcome anything and everything with the right attitude. But if the Status Quo is vulnerable to disruption on a systemic level, then it is prudent to think of resilience in a systemic way as well.
 

To continue reading, please go to the original article here:

https://www.peakprosperity.com/dont-worry-be-resilient/

.Why Lottery Winners Crash After A Big Win

Why Lottery Winners Crash After A Big Win

CHICAGO, IL - NOVEMBER 28: A Powerball lotter...What happens when your “dreams” come true? We’re always told to be careful what we wish for, and for Powerball lottery winner “Wild” Willie Seeley and his wife Nancy, this advice couldn’t be more appropriate.

The Seeleys are calling their $3.8 million win a “curse.” Their complaints? They have been bombarded by the media for interviews, and family members – many they’ve never heard of — have hit them up for loans and financial favors.

“There are days I wish we were back to just getting paid every two weeks,” Willie Seeley confessed in an NBC News interview.

There is nothing unusual about their complaints. This is what commonly happens with lottery winners, and often, with other recipients of sudden wealth from lawsuits, sports contracts or even inheritances.

But don’t count out the Seeleys just yet. There is hope they won’t face the same fate as $315 million Powerball winner Andrew “Jack” Whittaker who said “I wish I’d torn that ticket up,” after being robbed, losing his granddaughter to a drug overdose, being sued, and finding respite from the pressure by drinking, attending strip clubs and gambling.

As a sudden wealth financial advisor for over 15 years, I’ve had the chance to work with many clients who have received a windfall, and I’ve noticed there are predictable patterns – patterns of thinking and behaving that can explain how a multimillion dollar lottery winner can call her money a curse just a month after winning.

Immediately before or right after a sudden wealth event such as winning the lottery, many clients experience an almost out-of-body feeling. I refer to this as the honeymoon stage of sudden wealth.

To continue reading, please go to the original article at
http://www.forbes.com/sites/robertpagliarini/2013/12/11/5-rules-if-you-play-an-office-lottery-pool/

​.How To Avoid High-Income Lifestyle Creep

How To Avoid High-Income Lifestyle Creep
By  Poor Swiss

Posted in Dinar Recaps Archives on 7/13/2019

My personal goal is to become financially free as soon as possible. As a software engineer in Switzerland, I am earning about $130,000 per year, and, lifestyle creep is one of the toughest parts of my life.

With my salary, I am viewed as a high-income earner. And, people think that earning a high-income makes it easier to become financially free.

And in many ways, it does.

But, most high-income earners are not financially free and a lot of them are not even wealthy.

Americans more credit card debt than savingsThe main reason for that is lifestyle creep, and in this post, I’m going to spill the beans about how I battled with the devastating phenomenon as well as how I’m avoiding its grasp!

And more importantly, how high-income earners can overcome lifestyle creep and achieve their own version of financial freedom!

Lifestyle Creep
Let’s start at the beginning: what is lifestyle creep?

As people earn more, they have a tendency to spend more. This means that even though you earn more money each money, you are not saving more. In other words, you aren’t acquiring additional wealth. At least, not much.

This is as simple as that. But it has a large impact on their finances.

Lifestyle creep – also known as lifestyle inflation, is the main reason why many high-income earners are not wealthy. In fact, many high-income earners are less wealthy than some low-income earners.

To continue reading, please go to the original article at

How to avoid high-income lifestyle creep

.How to Be the Executor of an Estate

How to Be the Executor of an Estate

Posted in Dinar Recaps Archives on 7/26/2019

How to Be the Executor of an Estate: Duties & Responsibilities
Beth Braverman Jun 4, 2019

Dealing with the aftermath of the death of a loved one can be an incredibly emotional time. That said, it’s also a very important time financially, for you and for other people named in this person’s last will and testament.

If you’ve been named the executor of an estate, duties include making sure all of your loved one’s belongings are collected and distributed in accordance with their wishes. Being named an executor of a will is a big honor, but it’s also a big responsibility.

Follow these steps to make the process go as smoothly as possible.

1. Find the Will Naming You Executor of the Estate

Start by finding the original will. “There’s only one original document, or there should be,” says Mari Galvin, a partner at the law firm Cassin & Cassin, who specializes in estate planning. “That’s presented to the court to be verified as the true wishes of the decedent, done according to the statutes.”

The deceased person’s attorney will typically have the will. If this person didn’t have a lawyer, or you don’t have their lawyer’s contact information, check file cabinets, safe deposit boxes and desk drawers.

Once you find the will, keep it in a safe place where you’ll have continuing access to it. If there’s no will, a probate court will appoint an executor to administer the will in accordance with the state law. If you’ve been named executor but don’t want to do the job, the court will appoint someone else.

2. Secure the Property

If your loved one has left behind an empty home, it’s important to make sure that the property is protected. Remove any tangible items of value and change the locks on the doors. That way you’ll ensure no one can enter the property without your permission..

You’ll also want to forward any mail to yourself, and update the insurance company that the property is now vacant. If damage occurs to the property while it’s in probate, the executor of the will could be liable for the costs if she hasn’t taken reasonable steps to protect it.

If family members or others ask about specific items in the home, it’s your legal responsibility to inventory everything first. If any creditors are owed money from the estate, they should get paid first, even if other distributions are explicitly outlined in the will. Otherwise, you might end up without enough cash on hand to settle outstanding debts, Galvin says.

To continue reading, please go to the original article at

://meetfabric.com/blog/executor-of-estate-duties-will

.What Is a Payable on Death Account

From the Recaps Archives originally posted on 7/25/2019

What Is a Payable on Death Account (and Do I Still Need a Will if I Have One)?
Jessica Sillers Jul 16, 2019

When you login to your bank account online, you might notice an option to choose a beneficiary. Generally, this is someone who’d inherit your bank account after your death. The official name is a “payable on death” or POD account.

Easy enough. Enter your beneficiary’s name and contact info: Done. So, if you go this route, do you still need a will? Isn’t it easier to just type in your beneficiary’s name and be done with it?

The short answer is that, when done right, most people would benefit from both a payable on death designation and a last will and testament. POD accounts are better for quick cash for people handling your final affairs or counting on money for bills, while your will lets you get into clearer detail about the more nuanced aspects of settling your estate.

What Is a ‘Payable on Death’ or ‘Transfer on Death’ Account?

POD and TOD stand for “payable on death” and “transfer on death,” respectively. (TOD would be more likely to apply to assets such as a house.)

Most types of financial accounts—such as savings and checking accounts, CDs and investment account—let you name a POD beneficiary.

If you die, this person would inherit the money without going through probate (the often-lengthy process of executing a will). Generally, all he or should would need is ID and a copy of the death certificate. That’s generally ready in a matter of days to a few weeks after a death.

TOD is somewhat less common than POD, but some states will let you designate someone to inherit property like a house outside of probate. To set this up, you’d need to prepare a special deed and record it with the appropriate state or county office.

You can set up a POD beneficiary for a joint account with your spouse, as well. If you die, the account would go to your spouse first, and then to the POD beneficiaries after your spouse’s death.

You can also name multiple POD beneficiaries. Talk to an advisor at your bank if you want to assign a different proportion other than an even split. Ditto if you want to choose an alternate beneficiary in case your primary beneficiary is not around. It’s also worth searching your state’s law on whether a POD account would still pass to your (ex-)spouse if you divorce.

To continue reading, please go to the original article at
https://meetfabric.com/blog/payable-on-death-accounts

.Ideas For Those Who Have More Money Than They Can Spend

Ideas For Those Who Have More Money Than They Can Spend

A Few Ideas for Those Rich People Who Have More Money Than They Can Spend
What should you do if the only asset you lack is imagination?
By Harry Cheadle

From Left: Bobby Murphy, Evan Spiegel, Rupert Murdoch, And David H. Koch At Some Time 100 Thing In 2014. Photo Illustration Based On A Photo By Larry Busacca/Getty Images For Time

Axios reported on Thursday that "wealthy people and corporations have so much money they literally don't know what to do with it." According to the outlet, a combination of low interest rates (making it easy to borrow from banks) and globalization (driving down labor costs) have fueled a Scrooge McDuck-style rise in corporate profits since the 2008 financial crisis.

At the same time, in a story familiar to generations of Americans, economic gains have disproportionately gone to the world's ultra-rich, who have also recently benefited from policies like Donald Trump's tax cut last year, which rewarded the wealthy and corporations.

And rather than using those windfalls to raise salaries for workers (lol) or even just spend on consumer goods, these entities are either buying back their own stock, sitting Smaug-like on piles of cash, or blowing it on dubious investments. From Axios:

Wealthy households and individuals are pouring money into asset managers, betting on companies that lose $1 billion a year, bonds from little-known Middle Eastern republics, and giving hot Silicon Valley start-ups more venture capital than they can handle…

But even that hasn't been enough to account for all the new money. The top 1 percent of U.S. households are holding a record $303.9 billion of cash, a quantum leap from the under $15 billion they held just before the financial crisis.

So what should the imagination-poor rich people do with all of those commas? A few suggestions:

To continue reading, please go to the original article at

A Few Ideas for Those Rich People Who Have More Money Than They Can Spend

61 Possible Questions to Ask at Your Exchange Appointment

61 Possible Questions to Ask at Your Exchange Appointment

Posted at Dinar Recaps Archives on 7/7/2019

Note: .These may be a good starting point to take with you when you go to exchange. Not all of these questions may apply to everyone...Just use what you believe fits your own personal circumstances~ Thank You

EXOGEN : WHICH QUESTIONS FROM THIS LIST WILL YOU ASK AT YOUR EXCHANGE APPOINTMENT?

DO YOU KNOW WHAT ANSWERS YOU WANT TO HEAR FROM BANKERS WHEN YOU ASK THEM THESE QUESTIONS AT YOUR EXCHANGE APPOINTMENT?

(DO YOU KNOW THE CORRECT ANSWERS TO THESE QUESTIONS ONCE YOU ASK THEM TO THE BANKER?

IS THIS PART OF YOUR PLAN AND STRATEGY?

Questions:

1. WHAT TYPE OF BANK ACCOUNTS DO YOU HAVE AVAILABLE?

2. WHAT IS THE FDIC COVERAGE ON THIS ACCOUNT?

3. CAN YOU EXPLAIN TO ME HOW THE FOLLOWING BANK ACCOUNTS OPERATE?

A. NON INTEREST BEARING ACCOUNTS

B. MULTI CURRENCY ACCOUNTS

C. MULTIPLE CURRENCY ACCOUNTS

D. (THE DIFFERENT TYPES AVAILABLE)

E. INTEREST BEARING ACCOUNTS

4. WHAT AMOUNT AM I REQUIRED TO LEAVE IN EACH ACCOUNT?

5. WHAT OTHER PRODUCTS AND SERVICES WILL BE PROVIDED TO ME TODAY WITH THESE ACCOUNTS?

6. WHAT ARE THE FEES ASSOCIATED WITH THESE BANK ACCOUNTS?

7. DOES YOUR BANK HAVE A WEALTH & TRUST DIVISION SEPARATE FROM THE RETAIL SIDE OF THE BANK?

8. I NEED SOME CERTIFIED CHECKS MADE PAYABLE TO (abcd) CAN YOU ASSIST ME?

9. HOW MUCH CASH CAN I TAKE WITH ME WHEN THIS APPOINTMENT IS COMPLETED?

NOTE: LIMITED CASH AND A CERTIFIED CHECK IS WHAT WE RECOMMEND

10. IF I COME BACK TO EXCHANGE MORE WILL I HAVE THIS SAME RATE?

11. WHAT PRODUCTS & SERVICES WILL THE WEALTH MANAGEMENT TEAM PROVIDE?

12. EXPLAIN TO ME HOW THE SWEEP PROCESS WILL WORK?

13. WHAT ARE THE ADVANTAGES & DISADVANTAGES OF THESE ACCOUNTS?

14. WILL LOANS AND LINES OF CREDIT BE PROVIDED?

15. IS THIS ACCOUNT ACTIVE TO RECEIVE BANK WIRES NOW? (EXPLAIN THE PROCESS)

16. WHAT PRODUCTS & SERVICES WILL COME WITH THE WEALTH MANAGEMENT TEAM?

17. PLEASE GO OVER ALL OF THE DOCUMENTS WITH ME I WILL BE SIGNING?

18. TELL ME A LITTLE BIT ABOUT THE HISTORY OF THIS BANK?

19. HOW ARE MY DEPOSITS PROTECTED AGAINST BANK COLLAPSE, GOVERNMENT THEFT, AND BANK THEFT?

20. WHAT KIND OF INTEREST RATES WILL I BE LOOKING AT?

21. WHAT TYPE OF CREDIT CARDS AND DEBIT CARDS DO I QUALIFY FOR NOW?

22. WHAT ARE MY CHECKING & SAVINGS ACCOUNT OPTIONS?

23. IF I HAVE QUESTIONS TOMORROW WHO DO I NEED TO CONTACT?

23. DO YOU HAVE A BUSINESS CARD?

24. IS THIS CURRENCY EXCHANGE TAXABLE AND WHAT IS THE RATE OF THE TAX?

25. WILL THIS TRANSACTION BE REPORTED TO FINCEN?

26. TELL ME ABOUT YOUR ONLINE BANKING (NOTE: WE DO NOT ADVISE ONLINE BANKING)

27. WHAT IS THE COST TO EXECUTE TRADES, , BONDS, ETC?

28. WHAT TYPE OF ADDITIONAL INSURANCE CAN I PLACE ON MY MONEY VIA PRIVATE BANKING & WEALTH MANAGEMENT

29. IS THERE AN EXCHANGE WINDOW IF I HAVE MORE CURRENCY TO EXCHANGE?

30. IS MY MONEY PROTECTED AGAINST DEVALUATION OF THE USD?

31. TELL ME ABOUT YOUR BANK PERKS?

32. ARE THERE ANY STIPULATIONS WITH THE CONTRACT RATE? (IF AVAILABLE)

33. WHAT ARE THE STIPULATIONS WITH THE STREET RATE?

34. WHAT ARE THE KEY POINTS OF THE NDA (IF APPLICABLE)

35. CAN I CONTACT MY ATTORNEY BEFORE I SIGN THESE DOCUMENTS?

36. IF I DO NOT TAKE THIS APPOINTMENT WILL MY RATE CHANGE?

37. WHAT ARE THE STIPULATIONS WITH THE MARKET RATE?

38. CAN YOU SHOW ME THE RATES ON THE SCREEN PLEASE?

39. CAN I HAVE A COPY OF THE DOCUMENTS FOR MY LEGAL TEAM
TO REVIEW?

40. WILL THE RATE DROP IF I COME BACK TO EXCHANGE MORE CURRENCY?

41. IF I HAVE MORE CURRENCY CAN I COME BACK AND EXCHANGE AT SAME RATE?

42. IF I HAVE MORE CURRENCY ARE THERE DIFFERENT RATE TIERS?

43. ARE THERE ANY TIME LIMITS ON RATES OF EXCHANGE?

44. CAN YOU EXCHANGE INTO LOWER DENOMINATIONS?

45. IS THERE AN EXPIRATION ON THE LARGE NOTES?

46. IS THERE A CAP ON THE AMOUNT I CAN EXCHANGE WITH YOUR BANK?

47. CAN YOUR BANK ASSIST ME WITH RESERVES/LAYAWAYS AND HOW
DOES THAT PROCESS WORK?

48. CAN I EXCHANGE WITH MY LLC, IBC OR TRUST?

49. AM I EXCHANGING INTO NEW TREASURY NOTES?

50. IF I USE AN MCA (Multi Currency) ACCOUNT WILL MY CURRENCY STAY IN THE
CURRENCY OR CONVERT TO USD.

51. WHAT IS THE INSURANCE COVERAGE ON MY DEPOSITS?

52. AM I EXCHANGING INTO FEDERAL RESERVE NOTES OR TREASURY NOTES?

53. CAN YOU EXPLAIN YOUR BANKS BASEL STATUS & HOW DID YOUR BANK RATE IN BANK STRESS TESTS?

54. HOW MUCH DOES YOUR BANK HAVE IN DERIVATIVES?

55. HOW WOULD YOU RATE AND COMPARE YOUR BANK TO OTHER INSTITUTIONS?

56. HOW HAVE THE NEW OCC REGULATIONS, VOLCKER RULE, DODD FRANK, & BASEL REQUIREMENT IMPACT YOUR BANK?

57. CAN YOU EXPLAIN TO ME HOW YOUR FINCEN REPORTING WORKS?

58. WHAT TYPE OF ACCOUNT ARE THESE FUNDS GOING INTO AND I DO NOT WANT TO COMINGLE DIFFERENT CURRENCIES AND WOULD LIKE SEPARATE ACCOUNTS FOR EACH CURRENCY?

59. WHAT IS THE DIFFERENCE IN A CURRENCY EXCHANGE AND A CURRENCY INVESTMENT WITH YOUR BANK?

60. WHAT OTHER OPTIONS ARE AVAILABLE IF I DECIDE TO EXCHANGE MORE CURRENCY AND IS MY EXCHANGE RATE NEGOTIABLE

61. PLEASE SHOW ME THE RATES CURRENTLY ON YOUR BANK SCREEN BEFORE I EXCHANGE..

Suze Orman Says These Are The Biggest Money No-Nos

Suze Orman Says These Are The Biggest Money No-Nos
MoneyWise        Esther Trattner   

From the Recaps Archives originally posted on August 6, 2019

Suze Orman Says These Are The Biggest Money No-Nos

Best-selling author, TV host and personal finance guru Suze Orman has been inspiring Americans for decades to make better money moves and avoid serious financial mistakes.

She'll be the first to tell you that what you don't do with your money may be even more important than what you do with it.

Here are 22 major money don’ts — straight from the expert.

 Don't be too quick to buy a home

Invest your extra money to buy your dream home -- when you're ready

Homeownership is part of the American dream — but buying one before you're able can lead to financial disaster.

"Sometimes it makes sense to own a home," Orman tells CNBC.com. "And sometimes, depending on where you live, it makes sense to simply rent."

That's particularly true if you're in an expensive city. Instead of pouring a lot of money into property, Orman says why not invest in the stock market? That way, you can grow your savings — maybe into a down payment on that home of your dreams.

You're new to investing? You might try an automated investment service, which will automatically adjust your portfolio to protect you from market turbulence.

2. Don't lease a car

Financing a car or buying a used car is better than leasing 
In Suze Orman's words, you should "you should never, ever ever ever, lease a car."

If you lease, you'll sink your money into several years' worth of car payments and be empty-handed when the lease term is done.

Financing is a better option, but Orman says if it will take longer than three years to pay off the car, then it’s out of your price range. (You certainly don't want to consider one of today's seven-year car loans.)
 
Buying a used car is another way to go. Models that are just a few years old will have great safety specifications and the same audio-visual tech as a new car, at a fraction of the price.

3. Don't co-sign a loan

When a friend or family member in need asks you to co-sign a loan, Orman says the only correct response is to turn them down.

As she puts it: "Don’t be afraid to say 'no to others and say 'yes' to yourself."

When you co-sign a loan, you become legally responsible for paying back the money. Life is unpredictable, and if anything happens to prevent the borrower from repaying the loan, you’ll be on the hook to make the payments.

Plus, if the borrower is so much as late on a few payments, your credit score can take a hit.

4. Don't take Social Security too soon

Our favorite financial guru advises Americans to avoid early retirement for a very good reason: It's worth it to delay taking Social Security until age 70.

"Every year you wait between your normal retirement age and 70, Social Security will add a guaranteed 8% to your eventual monthly payout," she writes, in AARP The Magazine.

She says delaying Social Security until you reach 70 will give you a monthly benefit more than 75% percent higher than what you'll get if you start at 62.

"Living well into your 80s and beyond is no longer some rare event," Orman says — and you want to make sure your resources will last as long as you do. 5. Don't sell stocks when markets are bad

When stocks are hurtling lower, investors tend to drop investments fast. This is a bad idea, says Orman.

Instead of dumping stock, she advises that you just keep investing the same amount of money each month, regardless of what the market is doing. Using this strategy, a bad month for the market becomes a good month to invest.

"I wish for 2008 again," she tells Yahoo Finance, referring to the year of the big market meltdown. "That’s when the fortune was made. That’s when you could buy stocks for pennies on the dollar."

If you train yourself to hold on tight through market dips, you’ll continue to build a solid portfolio with long-term earning potential.

To continue reading, please go to the original article here:

https://finance.yahoo.com/news/suze-orman-says-biggest-money-142928266.html

​What is Financial Literacy?

​What is Financial Literacy?

Posted in Dinar Recaps Archives on 7/27/2019

What is Financial Literacy?
By JJ

Do you feel like you are financially literate?

Do you know what financial literacy is?

If not, that’s okay.

The goal of this post is to help you to understand what financial literacy is and why you should care about it.

Let’s break it down.

Let’s start with the word literacy. When someone is ‘literate’ it means they have the knowledge and skills that are necessary to read and write.

When someone is ‘financially literate’ it means they have the knowledge and skills that are necessary to make well informed decisions about their personal finances.

A Definition Of Financial Literacy

The Organization for Economic Co-operation and Development (OECD) and it’s International Network on Financial Education (INFE) define financial literacy as:

“A combination of awareness, knowledge, skill, attitude and behaviour necessary to make sound financial decisions and ultimately achieve individual financial wellbeing.”

People who are financially literate are able to effectively do things such as:
Make a budget
Save money (for a car, house, retirement etc.)
Pay off (or avoid) student loans
Use a credit card
Achieve financial stability
Etc….

People who lack financial literacy often find themselves in the following situations:
Unable to make a budget
Unable to save money
Unable to pay off their student loans
Drowning in credit card debt
Living pay check to pay check
Etc….

You get the picture.

To continue reading, please go to the original article here:

http://thefinancialgraduate.com/what-is-financial-literacy/