The Five Scary New Rules Of Upside-Down Capitalism
.The Five Scary New Rules Of Upside-Down Capitalism
Notes From The Field By Simon Black
November 20, 2019 San Juan, Puerto Rico
Roughly 23,000 years ago in modern-day Israel, a small tribe of ex-cave dwellers built a tiny village near the Sea of Galilee that may have been one of the earliest agrarian societies in human history.
Archaeologists discovered the site more than thirty years ago.
And they found tens of thousands of well-preserved seeds and agricultural tools, suggesting that the people who lived there planted a great deal of food in the fertile lands nearby.
As historian Will Durant once wrote, “the first culture is agriculture.” And he was right. Civilization as we know it has its foundations in agriculture.
When human beings came out of caves, stopped roaming the wild, and began planting seeds to feed their families and tribes, they were able to produce more food than they consumed for the first time in the history of our species.
And because it only took a handful of people to feed an entire village, everyone else was able pursue other vocations like architecture, science, mathematics, medicine, etc.
The Five Scary New Rules Of Upside-Down Capitalism
Notes From The Field By Simon Black
November 20, 2019 San Juan, Puerto Rico
Roughly 23,000 years ago in modern-day Israel, a small tribe of ex-cave dwellers built a tiny village near the Sea of Galilee that may have been one of the earliest agrarian societies in human history.
Archaeologists discovered the site more than thirty years ago.
And they found tens of thousands of well-preserved seeds and agricultural tools, suggesting that the people who lived there planted a great deal of food in the fertile lands nearby.
As historian Will Durant once wrote, “the first culture is agriculture.” And he was right. Civilization as we know it has its foundations in agriculture.
When human beings came out of caves, stopped roaming the wild, and began planting seeds to feed their families and tribes, they were able to produce more food than they consumed for the first time in the history of our species.
And because it only took a handful of people to feed an entire village, everyone else was able pursue other vocations like architecture, science, mathematics, medicine, etc.
Freed from the daily toil of survival, our ancestors invented trade, commerce, writing, and everything else that fueled progress over the next 10,000 years.
And this simple concept of producing more than you consume has been the foundation of human prosperity for millennia.
It’s also one of the basic principles of capitalism. People who produce and save are supposed to be rewarded. People who irresponsibly go into debt to consume are supposed to be punished.
But not anymore.
Back in 2014, the European Central Bank made history when they pushed interest rates into negative territory.
Literally never before in the history of the world had interest rates been negative. And little by little, those negative rates have been spreading.
A recent report published by the Financial Times showed that 60% of German banks are now passing on that negative interest to their customers.
In other words, if you save money, you have to pay the bank interest. And many banks are now starting to pay customers to borrow money.
To continue reading, please go to the original article here:
https://www.sovereignman.com/trends/the-five-scary-new-rules-of-upside-down-capitalism-26555/
The Seven Deadly Sins Of Personal Finance
The Seven Deadly Sins Of Personal Finance
By J.D. Roth —03 June 2019
I've been reading and writing about personal finance for more than thirteen years. In that time, I've consumed a lot of books about money. Lately, I've found that it's fun to revisit old favorites.
Recently, for instance, I've been re-reading Brett Wilder's The Quiet Millionaire [my review]. It's different than most personal finance books. It's targeted at those who are farther along their financial journeys rather than at those just starting out. Still, there are bits and pieces in The Quiet Millionaire that are applicable to everyone.
...
Ten years ago, I wrote that I particularly like Wilder's list of the seven enemies to financial success (which is my phrase, not his). I still like them. He writes:
If you want to become and stay the quiet millionaire, you must plan and manage your financial way of life…You must be proactive in order to obtain the financial life you want. By doing this, you will overcome the seven major obstacles to financial success.
Wilder is saying that we know there are certain common barriers to wealth. These obstacles arise for everyone. Because of this, it's possible to plan in advance to cope with them. First, however, we have to be able to name these enemies so that we can prepare the proper weapons to fight them.
The Seven Deadly Sins Of Personal Finance
From the Recaps Archives posted on 6/4/2019
The Seven Deadly Sins Of Personal Finance
By J.D. Roth —03 June 2019
I've been reading and writing about personal finance for more than thirteen years. In that time, I've consumed a lot of books about money. Lately, I've found that it's fun to revisit old favorites.
Recently, for instance, I've been re-reading Brett Wilder's The Quiet Millionaire [my review]. It's different than most personal finance books. It's targeted at those who are farther along their financial journeys rather than at those just starting out. Still, there are bits and pieces in The Quiet Millionaire that are applicable to everyone.
Ten years ago, I wrote that I particularly like Wilder's list of the seven enemies to financial success (which is my phrase, not his). I still like them. He writes:
If you want to become and stay the quiet millionaire, you must plan and manage your financial way of life…You must be proactive in order to obtain the financial life you want. By doing this, you will overcome the seven major obstacles to financial success.
Wilder is saying that we know there are certain common barriers to wealth. These obstacles arise for everyone. Because of this, it's possible to plan in advance to cope with them. First, however, we have to be able to name these enemies so that we can prepare the proper weapons to fight them.
The Seven Enemies of Financial Success
According to Wilder, the seven enemies of financial success are:
Lack of discipline. Without discipline, it's difficult to build wealth. In fact, it's impossible to get rich — slowly or otherwise — if you spend more than you earn. The math just doesn't work. Wilder also warns against compulsive spending, and he urges readers to track where their money is going.
Materialism. Stuff will not enrich your life. It's so very easy to find yourself “keeping up with the Joneses”, succumbing to lifestyle inflation. But materialism breeds discontent. Instead, Wilder says, focus on intellectual and spiritual pursuits to obtain fulfillment.’
Debt. Not all debt is bad, of course. A reasonable mortgage on a sensible home is fine. But consumer debt — or a bad mortgage on a big house — is an enemy to financial success. In fact, bad debt may be the biggest enemy to financial success.
Taxes. It's our responsibility to pay the taxes we owe, but we're under no obligation to pay more than that. “It is not unpatriotic to reduce paying your taxes,” Wilder writes. We should instead actively work to keep our tax burden as low as possible.
Inflation. Inflation is wealth's silent enemy. It will not destroy you all at once. But it's always there, nibbling at the corners of your life, consuming a little cash every year. It's impossible to keep inflation completely at bay, but you can learn to mitigate its effects.
Investment mistakes. Poorly structured investment portfolios can be a killer. This enemy is fought through education, through an understanding of diversification and asset allocation, by taking the emotion out of investing.
Emergencies. The final enemy to financial success is the unexpected: unemployment, death, illness, and legal complications. Without a plan for emergencies, you leave yourself at the mercy of the fickle fates. Carry adequate insurance and maintain an emergency fund!
To continue reading, please go to the original article here:
https://www.getrichslowly.org/?s=7+deadly+sins+of+personal+finance++++++
What Does It Take To Get Rich?
.What Does It Take To Get Rich?
Hillary Hoffower Dec. 29, 2018,
A researcher who studied more than 600 millionaires found the same 2 qualities helped them get rich
According to a researcher who studied more than 600 millionaires, to build wealth, you need two qualities: resilience and perseverance.
These qualities are characteristics of those who can afford to retire early and entrepreneurs who become self-made millionaires.
It takes conscious effort to develop resiliency and perseverance.
What does it take to get rich?
It may seem like building wealth is impossible, but it takes two qualities that anyone can develop to do it: resilience and perseverance.
That's according to Sarah Stanley Fallaw, coauthor of " The Next Millionaire Next Door: Enduring Strategies for Building Wealth" and the director of research for the Affluent Market Institute.
A follow-up to the 1998 bestseller " The Millionaire Next Door," written by her father, Thomas J. Stanley, and William D. Danko, the book provides updates and new studies on Stanley's original research on millionaires. Stanley Fallaw's findings are based on a survey of more than 600 millionaires in America conducted between 2015 and 2016.
"To build wealth, to build one's own business, to ignore critics and media and neighbors, you must have the resolve to keep pursuing your goals past rejection and pain," Stanley Fallaw wrote.
What Does It Take To Get Rich?
Hillary Hoffower Dec. 29, 2018,
A researcher who studied more than 600 millionaires found the same 2 qualities helped them get rich
According to a researcher who studied more than 600 millionaires, to build wealth, you need two qualities: resilience and perseverance.
These qualities are characteristics of those who can afford to retire early and entrepreneurs who become self-made millionaires.
It takes conscious effort to develop resiliency and perseverance.
What does it take to get rich?
It may seem like building wealth is impossible, but it takes two qualities that anyone can develop to do it: resilience and perseverance.
That's according to Sarah Stanley Fallaw, coauthor of " The Next Millionaire Next Door: Enduring Strategies for Building Wealth" and the director of research for the Affluent Market Institute.
A follow-up to the 1998 bestseller " The Millionaire Next Door," written by her father, Thomas J. Stanley, and William D. Danko, the book provides updates and new studies on Stanley's original research on millionaires. Stanley Fallaw's findings are based on a survey of more than 600 millionaires in America conducted between 2015 and 2016.
"To build wealth, to build one's own business, to ignore critics and media and neighbors, you must have the resolve to keep pursuing your goals past rejection and pain," Stanley Fallaw wrote.
She added: "Millionaires and other economically successful Americans who pursue self-employment, decide to climb the corporate ladder, or strive to create a financial independence lifestyle early do so by perpetually pushing on."
She cites an example of multimillionaire Alan DeMarcus, who started at his uncle's HVAC business at age 14. After two and a half years in college, he quit school once he landed a sales role at his uncle's business.
The company eventually went bankrupt, but Alan had enough resilience and perseverance to build a successful refrigerant-recovery business in the middle of the 2008 recession. He eventually sold the business, and he's now worth between $8 million and $10 million.
These qualities are also exemplified by those who build enough wealth to retire early.
To continue reading, please go to the original article here:
https://www.businessinsider.com/qualities-that-help-build-wealth-resilience-perseverance-2018-12
How to Protect Your Finances in Case of a Recession
.How to Protect Your Finances in Case of a Recession
By Emily Guy Birken November 12 2019
According to the financial news sector, it seems probable that we're headed toward a recession. Grim-faced economists think our current historic economic expansion is headed for a fall, and the news of a looming recession couldn't feel scarier.
There's good news and bad news about these opinions. The good news is that no one has a crystal ball, which means even the savviest of economic forecasters can't possibly know what our economy will do in the future. However, we do know that certain financial trends cannot go on indefinitely. (Remember in 2007 when we all thought housing prices could only ever go up? We learned the hard way in 2008 that nothing keeps growing forever.)
So how can you prepare for a recession that may or may not happen in a time frame you can't predict? Thankfully, there are a number of actions you can take today to protect yourself, and your finances.
Bolster Your Emergency Fund
Financial experts recommend that everyone build an emergency fund that could cover three to six months' worth of expenses. Your emergency fund can get you through a period of unemployment until you land your next job.
However, losing your job during a recession could be a little more dire than losing it at any other time. When the economy as a whole has taken a hit, it can be much more difficult to find another employer who is hiring. This is why the median unemployment length during the recession was more than 25 weeks (nearly six months), whereas the current median length of unemployment is just over 9 weeks.
How to Protect Your Finances in Case of a Recession
By Emily Guy Birken November 12 2019
According to the financial news sector, it seems probable that we're headed toward a recession. Grim-faced economists think our current historic economic expansion is headed for a fall, and the news of a looming recession couldn't feel scarier.
There's good news and bad news about these opinions. The good news is that no one has a crystal ball, which means even the savviest of economic forecasters can't possibly know what our economy will do in the future. However, we do know that certain financial trends cannot go on indefinitely. (Remember in 2007 when we all thought housing prices could only ever go up? We learned the hard way in 2008 that nothing keeps growing forever.)
So how can you prepare for a recession that may or may not happen in a time frame you can't predict? Thankfully, there are a number of actions you can take today to protect yourself, and your finances.
Bolster Your Emergency Fund
Financial experts recommend that everyone build an emergency fund that could cover three to six months' worth of expenses. Your emergency fund can get you through a period of unemployment until you land your next job.
However, losing your job during a recession could be a little more dire than losing it at any other time. When the economy as a whole has taken a hit, it can be much more difficult to find another employer who is hiring. This is why the median unemployment length during the recession was more than 25 weeks (nearly six months), whereas the current median length of unemployment is just over 9 weeks.
Now is an excellent time to add to your emergency fund. Start an automatic transfer to your savings account with every paycheck, and look for other ways to beef up that fund.
If you don't have an emergency fund that could handle a lengthy unemployment, there's no need to panic. Remember: anything you can put away will be helpful if you do find yourself with a pink slip. (See also: 7 Easy Ways to Build an Emergency Fund From $0)
Create Your Plan B Budget
Another proactive step to take is to map out what would change about your spending habits if you were to lose your job or take a pay cut. Going through your current budget and identifying the items you could cut can help reassure you that your emergency fund will weather a loss of income.
You could even challenge yourself to make some small cuts now and see if you miss your former expenditures. That can free up some extra money (more for the emergency fund!) and help you feel more in control of your spending now and in the future.
Attack Your Credit Card Debt
If you're carrying a balance on your credit cards, now is a good time to get aggressive with your payoff plan. Carrying debt into a recession could make for an overwhelming burden if you experience a pay cut or a layoff. You'd hate to find yourself unable to pay your credit card bills — and have to deal with debt collectors — when you're already feeling financially stressed. (See also: The Fastest Way to Pay Off $10,000 in Credit Card Debt)
Go To The Doctor
The cost of health care can be prohibitively expensive, even for Americans with health insurance. According to a recent Bank of America Workplace Benefits Report, 53 percent of American employees have skipped a medical appointment, a test or procedure, or purchasing medication in order to save money.
To continue reading, please go to the original article here:
https://www.wisebread.com/how-to-protect-your-finances-in-case-of-a-recession?ref=relatedbox
How Well Have You Prepared For Your Currency Exchange?
.How Well Have You Prepared For Your Currency Exchange?
#12 By Muhammad Ali
We have all read on Dinar Recaps, the statistics of those who have acquired sudden wealth and how long that wealth lasted. The results are not good. Most lose their wealth, their newly acquired assets and possibly are filing for bankruptcy within 3 to 5 years of receiving it.
The problem with most people, especially when it comes to money, they do not plan ahead or they do not plan at all.
Will we be a part of these statistics? The sad truth is, YES for about 80% of the people, they will be part of these statistics, and only about 20% will be able to preserve their wealth for more than 5 years or more.
"May the Odds be ever in your favour!" Some of you will remember that from the Hunter Games movie series.
Unfortunately the odds will not be in our favour unless we plan and work towards it.
In my Currency group, here in Malaysia, I hear so many times, that after RV, they want to travel around world, sail around the world, help all their friends and families, buy properties in real estate, buy land, buy cars, donate to so and so charity... and the list goes on and on.
How Well Have You Prepared For Your Currency Exchange?
By Muhammad Ali
We have all read on Dinar Recaps, the statistics of those who have acquired sudden wealth and how long that wealth lasted. The results are not good. Most lose their wealth, their newly acquired assets and possibly are filing for bankruptcy within 3 to 5 years of receiving it.
The problem with most people, especially when it comes to money, they do not plan ahead or they do not plan at all.
Will we be a part of these statistics? The sad truth is, YES for about 80% of the people, they will be part of these statistics, and only about 20% will be able to preserve their wealth for more than 5 years or more.
"May the Odds be ever in your favour!" Some of you will remember that from the Hunter Games movie series.
Unfortunately the odds will not be in our favour unless we plan and work towards it.
In my Currency group, here in Malaysia, I hear so many times, that after RV, they want to travel around world, sail around the world, help all their friends and families, buy properties in real estate, buy land, buy cars, donate to so and so charity... and the list goes on and on.
As for me, I want to buy a submarine...hahahaha, but that's another story.
The fact is there is something on the above list that is of interest to all of us.
So after listening to my group members, I play devil's advocate with them and ask them. Ok it's great that you want to do so much and help so many but the question is, after you do all this and buy all of that, how much money will you have left over? And how long will that balance last you?
Then the silence comes in and three words from their month. "I don't know."
So that started my path to create the Currency Exchange Planner software.
Frankly and in my opinion it is the best planning tool ever created for the Dinar community. There is absolutely nothing like it available.
You can keep track of your Dinar, Rial, Dong, Zim and/or Rupiah exchanges. Enter in the expected rate of exchange along with the number of notes you have and presto, instantly see your Net Worth.
It has planning features for Debt, Charity, Family Gifting and Future purchases as well as Gold and Silver purchases. Enter all of your existing debts and the net worth updates on the fly.
Enter in all the charities you wish to donate to and family members you want to gift to and again see the new balance update instantly. And then the 'Dream' tab as I call it, your Future purchases, land, houses, yachts and boats..submarines.., cars, properties, traveling, what tickles your fancy and see how much money you will have left over.
Then the Gold and Silver planning - Plan B, as I call it. Your purchase of physical gold and silver as your back up in case of rainy days ahead.
So after, all is send and done it will tell you the balance of your exchanged money. So now you can either think that Yes, my plans are feasible or now it's time to do some thinking and re-adjusting of numbers.
A new feature that I recently added, is the CEP will even project how many years this balance can last you. This is a cool feature. Now you can see in numbers, black and while from the left over balance, if you were to live on $xxx amount a month, how many years or generations the money will last you. Of course there are other factors to consider like inflation and such, however it is still a cool feature to see.
I have always told my group that, after you exchange, you will be buying or giving and the money will be going out the door. It is imperative that you have money coming in or with simple mathematics, Money = Out will soon be Money = 0.
Sooner or later, the money will run out and you all know what that means, back to square one. I can feel some of you cringing your teeth at that thought. God, forbid we ever have to go back to J.O.B. (Just Over Broke).
So I added an Investment planning section that you can allocate a budget for investments. Then you can see the profit results in yearly and monthly form.
For example, a fixed deposit in Malaysia will earn 4.77% p.a. so we can set aside an amount of our exchanged funds that we can have money coming in every month. There are other forms of banking investments such as Bonds and Treasury Bills that can give us a guaranteed investment return. You can discuss these with your wealth managers.
I also added several guides on investing, setting up bank accounts and pre and post RV security tips.
So I truly believe that my Currency Exchange Planner will be of great benefit to all of you.
The software is available in both Mobile App and Desktop PC versions.
So thank you for reading my article and I wish you all the best on your exchanges.
My website is www.CurrencyExchangePlanner.com I have more details and pictures.
Any questions, please contact me at currencyexchangeplanner@gmail.com
Thank you, Muhammad Ali
https://www.currencyexchangeplanner.com/article-13-have-you-prepared
The 4 Worst Kinds of Debt to Have in 2019
.The 4 Worst Kinds of Debt to Have in 2019
By Holly Johnson
Experts often say that debt can only be considered "good" if it's attached to an appreciating asset. Borrowing money to purchase a home that should rise in value over time is usually considered a smart move, for example. A business loan can also be a net positive provided the funds are used to help you become more profitable over the years.
On the flip side, there are plenty of kinds of debt that just aren't worth it — especially if the amount you owe is more than you can handle or your interest rate is absurdly high.
If your goal is building wealth and enjoying a life free of financial stress, your best bet is avoiding debts that make getting ahead harder than it has to be. Here are some of the worst offenders.
Student Loans
Student loans can be a net positive for your life if you borrow as little as you can and parlay your degree into a profitable career. And since federal student loans tend to come with low fixed interest rates, student debt doesn't have to ruin your life.
But what happens if you overpay for school — or if you borrow a ton of money but never graduate?
Far too many students have found out the hard way just how unforgiving student debt can be. For starters, it's nearly impossible to discharge student loans in bankruptcy, so you're probably stuck with your student loans until you pay them off — no matter how long it takes.
The 4 Worst Kinds of Debt to Have in 2019
By Holly Johnson
Experts often say that debt can only be considered "good" if it's attached to an appreciating asset. Borrowing money to purchase a home that should rise in value over time is usually considered a smart move, for example. A business loan can also be a net positive provided the funds are used to help you become more profitable over the years.
On the flip side, there are plenty of kinds of debt that just aren't worth it — especially if the amount you owe is more than you can handle or your interest rate is absurdly high.
If your goal is building wealth and enjoying a life free of financial stress, your best bet is avoiding debts that make getting ahead harder than it has to be. Here are some of the worst offenders.
Student Loans
Student loans can be a net positive for your life if you borrow as little as you can and parlay your degree into a profitable career. And since federal student loans tend to come with low fixed interest rates, student debt doesn't have to ruin your life.
But what happens if you overpay for school — or if you borrow a ton of money but never graduate?
Far too many students have found out the hard way just how unforgiving student debt can be. For starters, it's nearly impossible to discharge student loans in bankruptcy, so you're probably stuck with your student loans until you pay them off — no matter how long it takes.
The high cost of higher education also means students are stuck borrowing more and more for a basic college degree. A report from College Board noted that, on a national level, even a public, four-year degree cost students an average of $21,370 per year for the 2018-19 school year when you add in room and board. That means it costs nearly six figures to earn a Bachelor's degree — and that's if you choose an in-state, public school.
If you find yourself struggling with student loan debt, consider looking into alternative payment plans like income-driven plans or refinancing your student loans with a private lender. (See also: Should You Refinance Your Student Loans?)
Credit Card Debt
Credit card debt is another wealth killer that can make it significantly harder to get ahead in life. Not only is credit card debt unsecured by any sort of asset, but the average credit card interest rate is now over 17%. That means that, no matter what you purchased on your credit card or how unnecessary it was, you could be paying out the nose to carry that debt from year to year.
If you're struggling with credit card debt, the first thing you should do is stop using credit cards. Then create a plan to pay down debt, possibly using the debt snowball or debt avalanche method.
You can also use a balance transfer credit card to secure 0% APR for a limited time, but this strategy only works if you have the discipline to quit using credit cards as a crutch. (See also: The Fastest Way to Pay Off $10,000 in Credit Card Debt)
Payday Loan Debt
Payday loans are meant to be short-term loans that help you get to the next payday, and they're mostly targeted at consumers with poor credit. But since they charge high fees and interest rates as high as 400%, these loans can trap you in a situation where you have to get one payday loan after another to pay your bills.
To continue reading, please go to the original article here:
https://www.wisebread.com/the-4-worst-kinds-of-debt-to-have-in-2019
Count the Cash
.Count the Cash
Jonathan Clements | November 16, 2019
When we think about portfolio building, we tend to think first about stocks. They’re our engine of investment growth—and the source of endless anxiety. Indeed, to make stock market investing palatable, we take all kinds of precautionary measures, including diversifying broadly, adding bonds, throwing in cash, purchasing gold and goodness knows what else.
But maybe we have this all wrong. Perhaps, instead, we should start with cash: how much we currently have in safe, liquid investments, how much we expect to receive in the years ahead and how much we’ll need in the near future. Once we have a handle on our cash situation, we’re free to invest the rest of our portfolio as we wish—including potentially stashing much or all of our money in stocks.
Sitting pretty. How much cash should we hold? In addition to a modest sum in our checking account to cover the next month’s bills, we should all hold some cash or cash-like investments, whether we’re in our 20s or our 80s. This money might sit in a savings account, certificates of deposit or a high-quality short-term bond fund.
Think of it as comfort cash. It can ease our worries, knowing we have a backstop if we have a surprisingly expensive month—and it can help us avoid the financial anxiety suffered by four out of 10 Americans, who apparently either couldn’t cover a $400 unexpected expense or, to do so, would need to borrow or sell possessions.
Count the Cash
Jonathan Clements | November 16, 2019
When we think about portfolio building, we tend to think first about stocks. They’re our engine of investment growth—and the source of endless anxiety. Indeed, to make stock market investing palatable, we take all kinds of precautionary measures, including diversifying broadly, adding bonds, throwing in cash, purchasing gold and goodness knows what else.
But maybe we have this all wrong. Perhaps, instead, we should start with cash: how much we currently have in safe, liquid investments, how much we expect to receive in the years ahead and how much we’ll need in the near future. Once we have a handle on our cash situation, we’re free to invest the rest of our portfolio as we wish—including potentially stashing much or all of our money in stocks.
Sitting pretty. How much cash should we hold? In addition to a modest sum in our checking account to cover the next month’s bills, we should all hold some cash or cash-like investments, whether we’re in our 20s or our 80s. This money might sit in a savings account, certificates of deposit or a high-quality short-term bond fund.
Think of it as comfort cash. It can ease our worries, knowing we have a backstop if we have a surprisingly expensive month—and it can help us avoid the financial anxiety suffered by four out of 10 Americans, who apparently either couldn’t cover a $400 unexpected expense or, to do so, would need to borrow or sell possessions.
How much comfort cash should we keep? It’s partly about sleeping at night, but also partly about being prepared for financial emergencies. That’s an especially big issue for those in the workforce, because the big financial emergency is getting laid off.
What about retirees? Because losing their job is no longer a risk, arguably they need little or no emergency money. But they may still need a heap of cash for another reason: to cover their spending needs in the years ahead.
Coming in. As a rule of thumb, money we’ll spend over the next five years should be out of stocks and riskier bonds. Instead, it should be invested in nothing more daring than a short-term bond fund. So how much cash do you need from your portfolio over the next five years?
For many folks, the answer will be zero—because they have enough cash coming in from elsewhere. If you’re in the workforce, your spending over the next five years will likely be more than covered by your paycheck, and thus there’s no need to hold anything more than comfort cash. Ditto for retirees who can cover their entire living costs with Social Security, plus any pension, annuity and rental income. For both these groups, investing heavily in stocks could make sense, provided they have the tenacity to stick with their holdings through the inevitable market turmoil.
The case for investing heavily in stocks is especially strong for those in their 20s and 30s, and not just because they have a long investment time horizon. A digression: There was a rather tedious debate in the 1990s about whether stock market returns are mean reverting.
If they are, periods of bad returns will be followed by stretches of good performance, and thus long-term stock investors with diversified portfolios should eventually get rewarded. But if markets aren’t mean reverting and instead performance is totally random, there’s no assurance stocks will deliver the highest return, no matter how long we hang on.
To continue reading, please go to the original article here:
After RV Security
.After RV Security
#8 By Muhammad Ali
I have said many times to my group here in Malaysia, that you will need to be security minded after the RV.
You don't need to worry much about the guy who holds a gun to you in the streets because he only wants what is in your wallet.
There are two other people who are more dangerous to your security.
The first is the person that approaches you with a suit and tie. He will come to you with a grand looking proposal. Complete with all the reports and location maps and finance plans.
However, it will all be bogus. He is not after what’s in your wallet but about 80% of your bank account. The think is with this type of person, he will meet with you face to face.
The next person that you need to be even more cautious is a person whom you will probably never ever meet. The Hacker. Now he will go after your entire bank account.
After RV Security
By Muhammad Ali
I have said many times to my group here in Malaysia, that you will need to be security minded after the RV.
You don't need to worry much about the guy who holds a gun to you in the streets because he only wants what is in your wallet.
There are two other people who are more dangerous to your security.
The first is the person that approaches you with a suit and tie. He will come to you with a grand looking proposal. Complete with all the reports and location maps and finance plans.
However, it will all be bogus. He is not after what’s in your wallet but about 80% of your bank account. The think is with this type of person, he will meet with you face to face.
The next person that you need to be even more cautious is a person whom you will probably never ever meet. The Hacker. Now he will go after your entire bank account.
He could be sitting in a boat in the middle of the Mediterranean on his notebook and satellite internet connection or maybe sitting right across from you in a crowded restaurant.
And how did he hack you? Maybe thru your debit card or maybe through something that you carry around with you everywhere you go, yes your phone.
For expert hackers, they can gain access to your bank accounts and more thru your phone.
So you need to start to learn how they can hack your phone and how to prevent it from happening.
In my Currency Exchange Planner software, I give a special guide on setting up bank accounts using Master Accounts and Sub Accounts. This is how I plan to setup my bank accounts after RV.
I hope my article brings awareness and helps you to protect your bank account after RV.
Any questions please send me an email to currencyexchangeplanner@gmail.com
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Click on this link and this blog will explain to you how hackers can take control of your phone and how you can protect yourselves.
Http://www.theretirementcafe.com/2019/08/how-to-secure-your-online-financial_6.html
Thank you so much, Muhammad Ali
Personal Lessons Learned Since The 2008 Financial Crisis
.Personal Lessons Learned Since The 2008 Financial Crisis
By Financial Samurai
On September 15, 2008, Lehman Brothers went bust. I remember this day clearly because I made a $200 side bet with my friend over the weekend that the US government would bail them out. To my surprise, the US government didn’t rescue Lehman, and the stock cratered that Monday and never recovered.
Despite all the economic devastation, I wish I could rewind time. I’d rather be 31 than 41, simply because I love life and want to live as many years as possible.
The period between 2008 – 2018 was the most exciting 10 years of my life. Here are some of the lessons I have learned since the financial crisis.
Lessons Learned Since The 2008 Financial Crisis
1) It’s really hard to go all-in, even when you know you should. Despite telling myself over and over again that we were in the buying opportunity of a lifetime, I couldn’t convince myself to invest much more than my usual 401(k) maximum because my world was falling apart.
A couple dozen friends had been laid off, including my best friend at the time, who worked at Lehman. I feared I might be next and would need as much cash as possible to hold me over just in case.
Personal Lessons Learned Since The 2008 Financial Crisis
By Financial Samurai
On September 15, 2008, Lehman Brothers went bust. I remember this day clearly because I made a $200 side bet with my friend over the weekend that the US government would bail them out. To my surprise, the US government didn’t rescue Lehman, and the stock cratered that Monday and never recovered.
Despite all the economic devastation, I wish I could rewind time. I’d rather be 31 than 41, simply because I love life and want to live as many years as possible.
The period between 2008 – 2018 was the most exciting 10 years of my life. Here are some of the lessons I have learned since the financial crisis.
Lessons Learned Since The 2008 Financial Crisis
1) It’s really hard to go all-in, even when you know you should. Despite telling myself over and over again that we were in the buying opportunity of a lifetime, I couldn’t convince myself to invest much more than my usual 401(k) maximum because my world was falling apart.
A couple dozen friends had been laid off, including my best friend at the time, who worked at Lehman. I feared I might be next and would need as much cash as possible to hold me over just in case.
In 2005, I had taken a $1,200,000 mortgage to buy a single family home. I already had around $380,000 in mortgage debt from the first property I bought in 2003. With property prices in San Francisco falling along with the stock market, bankruptcy was a very real possibility if I had lost my job.
Therefore, I built a significant CD portfolio with most of my excess cash instead. The best 5-year and 7-year rates were at 4.25% at the time, so I decided that was where most of my savings went.
The only things I did right were keeping my job and not selling any real estate or stocks in the middle of the downturn.
Events leading up and through the 2008 financial crisis
See: Your Risk Tolerance Is An Illusion: Just Wait Until You Lose A Lot Of Money
2) Chaos is a great motivator. I had been putting off starting Financial Samurai since 2006, but once the financial crisis hit, I decided to finally launch in the summer of 2009. If I got laid off, I needed a backup plan.
I also decided it was time to get married. I had known my wife since college, and she would be turning 28 in 2008. For some reason, 28 always stuck in my head as the perfect age for her to get married. Further, I had also wanted to focus on my career until 30 to see how far I could get.
The difficult times of 2008 made me want to hold onto her even more. I could lose everything, but I couldn’t lose her. Relationships were more important than money back then, and they are more important than money today.
3) You gain a tremendous amount of confidence and expertise in 10 years. Previously, I’d always been embarrassed to ever say I was an expert in anything. But once I turned 32, I felt I had developed some expertise in the Asian Equities market. And now that I’m in my 10th year building Financial Samurai, I have no problem believing and saying I have expertise in digital media.
Because of this experience, I also no longer fear financial ruin. If Financial Samurai shuts down and all my passive income goes away, I know I can get a job back in finance, fintech, or online marketing. The base pay would range between $150,000 – $250,000 + stock, and my family would be fine.
Age discrimination is no longer a fear either. Instead, you realize experience makes you incredibly valuable. Once you’ve been able to earn income by yourself for so many years, nothing will stop you from living the life you want.
To continue reading, please go to the original article here:
https://www.financialsamurai.com/personal-lessons-learned-since-the-2008-financial-crisis/
The 10 Most Valuable Financial Lessons I Learned in 2018
.The 10 Most Valuable Financial Lessons I Learned in 2018
By Trent Hamm Updated on 01-10-19
Getting Started
Each year, during the period between Christmas and New Year’s, I sit down and look over what happened during the past year, what I can learn from that, and what I can apply from that to the year to come.
I usually come up with a big handful of life lessons during that review, things I learned from situations in my life that didn’t quite go as I liked. What went wrong? Where did I go wrong? What can I do better?
These life lessons spread across all spheres of life and usually number in the dozens. I tend to literally make a list of them as I review the year as a way to figure out how to do better in the coming year.
Among the lessons I learned in the past year were 10 that have real personal finance implications, though some tend to branch over into other spheres of life. I thought it might be valuable to share those lessons, along with what I hope to do differently going forward.
Lesson #1: If the stock market is scaring you in terms of your future, you’re either not invested appropriately or don’t know what you’re invested in.
The 10 Most Valuable Financial Lessons I Learned in 2018
By Trent Hamm Updated on 01-10-19
Getting Started
Each year, during the period between Christmas and New Year’s, I sit down and look over what happened during the past year, what I can learn from that, and what I can apply from that to the year to come.
I usually come up with a big handful of life lessons during that review, things I learned from situations in my life that didn’t quite go as I liked. What went wrong? Where did I go wrong? What can I do better?
These life lessons spread across all spheres of life and usually number in the dozens. I tend to literally make a list of them as I review the year as a way to figure out how to do better in the coming year.
Among the lessons I learned in the past year were 10 that have real personal finance implications, though some tend to branch over into other spheres of life. I thought it might be valuable to share those lessons, along with what I hope to do differently going forward.
Lesson #1: If the stock market is scaring you in terms of your future, you’re either not invested appropriately or don’t know what you’re invested in.
This is something I did right this year, but the bumps in the stock market reminded me of the panic I felt in 2008 when I watched my retirement balance fall by 40%. I didn’t change anything back then, but I was often sick to my stomach about it and my instinct kept screaming to run away from the risk.
But then… things recovered. Between 2008 and 2018, my retirement accounts tripled in value.
The stock market is swooning again, but this time I don’t have the butterflies. Why?
First of all, I recognize that the stock market will rebound. The entirety of the American economy is not going to disappear in a puff of smoke. There are millions of Americans out there every day working hard and innovating, and that’s where the value of the stock market comes from. This is a correction, like every other, not an apocalypse.
Second, I recognize that the stock market is only a place for individual investors to put their money if they have long term goals. If you’re going to use that money within the next ten years, it shouldn’t be in the stock market.
Over a period of more than ten years, it will enjoy several years of growth and multiple corrections, which is enough time for that investment to start to approach the long term average annual return of a stock market investment, somewhere between 7% and 10% depending on how you calculate it. I have nothing in the stock market that I intend to use within the next ten years.
I’ve honestly barely paid any attention to the ongoing correction. It’s just another good sized correction, like 2008, like 2001, like 1992, like 1987, and so on. It’s part of having investments in stocks – every several years, the stock market corrects itself.
If you know this and you still feel the butterflies, one of two things are happening. One, you’ve got too much risk – you have money in stocks that you’re going to need within 10 years. You fix this by moving such money out of stocks.
Two, you’re looking at the trees and can’t see the forest – the success of long-term investments is judged over the long term, not over a few months.
To continue reading, please go to the original article here:
https://www.thesimpledollar.com/the-ten-most-valuable-financial-lessons-i-learned-in-2018/
One of the Toughest Things to Master for Your Financial Health
.One of the Toughest Things to Master for Your Financial Health
Invested Wallet
When it comes to your life, you want to stay physically and mentally healthy. And this also applies to your personal finances, which is commonly called your financial health.
While your physical and mental health is far superior to your financial health, it’s still crucial to work on this too. And as I know and you may too, finances can cause some serious stress.
That financial stress can then put a toll on your body, mind, and relationships.
Yet, when it comes to your personal finances and financial well-being there is one area that is critical to master: self-control. The challenge is, it might be the toughest thing to be consistent with throughout your lifetime.
What is Financial Health?
Before we get into how self-control affects your financial health, I think it’s important we are all on the same page on the definition.
Financial health is the term used to describe your own personal finances and how healthy it is. This includes things like how well your saving, what you put away for retirement, how little debt you have, etc.
There is a bit more to it than that, but for the sake of this post, we’ll keep it that simple.
One of the Toughest Things to Master for Your Financial Health
Invested Wallet
When it comes to your life, you want to stay physically and mentally healthy. And this also applies to your personal finances, which is commonly called your financial health.
While your physical and mental health is far superior to your financial health, it’s still crucial to work on this too. And as I know and you may too, finances can cause some serious stress.
That financial stress can then put a toll on your body, mind, and relationships.
Yet, when it comes to your personal finances and financial well-being there is one area that is critical to master: self-control. The challenge is, it might be the toughest thing to be consistent with throughout your lifetime.
What is Financial Health?
Before we get into how self-control affects your financial health, I think it’s important we are all on the same page on the definition.
Financial health is the term used to describe your own personal finances and how healthy it is. This includes things like how well your saving, what you put away for retirement, how little debt you have, etc.
There is a bit more to it than that, but for the sake of this post, we’ll keep it that simple.
Why Self-Control Matters to Your Financial Health
As I mentioned in the introduction, I think self-control is one of the toughest things to master for your financial health.
Your ability to control certain desires or urges with your money, can really determine your overall financial stability and results in the long-run.
It’s also incredibly challenging, especially if you are just starting to take control of your personal finances.
I see a need for discipline and self-control in four key financial areas:
Spending
Tax Refunds
Getting a Raise
Investing Money
Below, I’m going to dive into each area and why self-control plays a major role.
Also, I’m now going on five years of working on my financial health, and sometimes I still struggle in these areas too. It’s an ongoing practice to master self-control in your finances, but the rewards can certainly be life-changing.
Spending
For your financial health to really be awesome, you have to get your spending under control. But not only that, you need to continue to resist the urge to spend over time.
To continue reading, please go to the original article here: