Currency Trading: Is It Right For Me?

Currency Trading: Is It Right For Me?

Janice Friedman - July 20, 2020

How to Invest Money, Make Money Online, Personal Finance -

Are you looking for your next significant investment? Maybe you’ve recently come into some extra money and want to make it grow. Currency trading could be the right move for you to make. Currency trading on the world’s foreign exchange market is one of the simplest ways for individuals to break into the world of investments. It’s relatively easy to learn, has less risk than many other forms of investment, and practically anyone can do it successfully.

What Exactly Is Currency Trading and How Does It Work?

Currency trading by individuals takes place 24-hours a day online at the foreign exchange market. Also, currency trading takes place at financial centers around the world, so the market is always open for traders. New York, Tokyo, Sydney, and London are a few of the main hubs. If you’re in search of a form of investment that you can micromanage on your own time, in between work and sleeping, trading currency may be right for you.

There are three main “lots” involved with currency trading. Each lot is made up of the base currency of your choice. There is the standard lot, which is 100,000 units of currency. The mini lot, which is 10,000 units of your chosen money. And last but not least, the micro lot, which is 1,000 units of base currency.

The Forex

As mentioned above, currency trading takes place on the Foreign Exchange Market, also known as the Forex market, or FX for short. It is the largest market for investing in the world and continually grows every year. Several trillion dollars worth of trading currency is completed daily on the Forex market.

Until recently most of the currency trading taking place on the FX was done by professionals. Now, with the rise of online currency trading platforms, just about anyone who is interested in trading currency can get involved.

The Forex market appears as somewhat complicated at first glance due to the level of various players and operations taking place. To give you a better idea of how trading on the Forex market works let’s take a look at the major players who’re involved.

Central banks

The central banks of the world are by far the most crucial players of trading currency on the FX. Any actions by the world’s central banks directly influence the economy of their nations. They control the market operations and set the interest rates which dictate the rise and fall of currency rates.

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

https://millionairemob.com/category/personal-finance/

How to Think: The Skill You’ve Never Been Taught

How to Think: The Skill You’ve Never Been Taught
No skill is more valuable and harder to come by than the ability to critically think through problems. And schools don’t teach you a method of thinking. It’s one of those things that can be learned but can’t be taught.  When it comes to thinking and making decisions the mind has an optimal way to be operated. When operated correctly you’ll find yourself with plenty of free time. When operated incorrectly, most of your time will be consumed correcting mistakes.

Good initial decisions pay dividends for years, allowing you abundant free time and low stress. Poor decisions, on the other hand, consume time, increase anxiety, and drain us of energy.

But how can we learn how to think?

For the answer we turn to Solitude and Leadership, a lecture given by William Deresiewicz. The entire essay is worth reading (and re-reading).   https://fs.blog/great-talks/solitude-and-leadership/

Learning How To Think

Let’s start with how you don’t learn to think. A study by a team of researchers at Stanford came out a couple of months ago. The investigators wanted to figure out how today’s college students were able to multitask so much more effectively than adults. How do they manage to do it, the researchers asked?  The answer, they discovered—and this is by no means what they expected—is that they don’t. The enhanced cognitive abilities the investigators expected to find, the mental faculties that enable people to multitask effectively, were simply not there. In other words, people do not multitask effectively.

And here’s the really surprising finding: the more people multitask, the worse they are, not just at other mental abilities, but at multitasking itself.  One thing that made the study different from others is that the researchers didn’t test people’s cognitive functions while they were multitasking. They separated the subject group into high multitaskers and low multitaskers and used a different set of tests to measure the kinds of cognitive abilities involved in multitasking.

They found that in every case the high multitaskers scored worse. They were worse at distinguishing between relevant and irrelevant information and ignoring the latter. In other words, they were more distractible.

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

https://fs.blog/2015/08/how-to-think/

5 Major Money Mistakes To Avoid Once You Turn 60

5 Major Money Mistakes To Avoid Once You Turn 60

Laura Woods   Sun, February 21, 2021

You’ve been working hard your entire adult life and you’re finally nearing retirement. The prospect of having more time to relax and enjoy yourself is exciting, but you’ll need money to do that.

As you wrap up your peak earning years and prepare to step away from the workforce, it’s important to make smart money moves that will protect your nest egg. All it takes is one poor financial choice to throw a wrench in your plans — and financial stability — so take the time to make informed decisions.

When faced with a large amount of cash, it can be tempting to share it with loved ones — i.e., your children — or indulge yourself with luxury items. However, this money needs to last your entire retirement, which could span decades. Here’s a look at common financial blunders you don’t want to make as you get older if you want to avoid a major financial setback.

Collecting Social Security Benefits Too Soon

Many people make the mistake of taking Social Security income as soon as they can because it’s available. Others start early because they’re afraid the system will run out of money. Neither approach is the best way to maximize benefits.

“You receive more each month if you wait until your full retirement age, and you can even get increases after that — amounting to roughly 8% per year until you’re 70,” said Justin Pritchard, CFP, founder of Approach Financial, Inc. in Montrose, Colorado.

Having patience can literally pay off.

“Instead of claiming as soon as possible, run some numbers to determine how much you’ll earn if you wait,” he said. “Remember that a surviving spouse who takes over your benefit will be affected by your decision, so choose carefully.”

Cashing Out a Retirement Account

When you retire, you might have the option to keep your retirement savings with your employer or move the money into a retirement account — i.e., an IRA — in your name.

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

https://finance.yahoo.com/news/5-major-money-mistakes-avoid-130054902.html

Wealth Preservation Strategies Of The Rich

Wealth Preservation Strategies Of The Rich

By The Investor

Protecting your wealth for the future

You and I are advised to put our money into simple portfolios and to invest in shares for the long-term for our retirement.   But once the preservation of wealth becomes more important than growing it, other strategies come into play.    The preservation of wealth for the super-rich usually entails:

Wide diversification at the expense of higher returns - Reduced volatility - A focus on real assets such as property and gold - Investment in illiquid and unlisted securities and companies - Paranoia over taxes

In fact, I doubt there’s a rich person in the world getting by with an index tracker, a savings account, and a wodge of Government bonds.

Risky businessmen

Firstly, let’s define the sort of millionaires we’re talking about.

I’m thinking riches well beyond the standard Millionaire Next Door variety. Rather, I’m discussing the sort of people who populate the lower reaches of the Sunday Times Rich List.

Let’s say a net worth greater than £10 million/ $15 million.

Now, not all these very rich people practice the preservation of wealth through diversification. Many self-made entrepreneurs retain a huge slug of the businesses they founded, for example. This makes their net worth very dependent on the day-to-day value of those businesses.

Take Bill Gates. The world’s sometime richest man has diversified into everything from biotech firms to Warren Buffett’s Berkshire Hathaway to Corbis, his digital picture library. Yet despite selling millions of Microsoft shares every quarter, he is still the company’s biggest single shareholder. His 8% holding is worth $17 billion. If Microsoft goes bust, Gates will plunge down the rich list.

The insanely rich like Gates, Warren Buffett and Carlos Slim – the Mexican tycoon who’s currently the world’s richest man – can afford to take their chances. While in percentage terms the wealth tied up in their businesses is huge, the lesser share of money held outside is still enough to ensure a very prosperous lifestyle, whatever happens to their core company.

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

https://monevator.com/preservation-of-wealth/

The Really Obvious Thing We All Forget When Borrowing Money

The Really Obvious Thing We All Forget When Borrowing Money

by THE INVESTOR

Have you ever wondered who you’re borrowing money from when you go into debt?  If you think you’re being given money by a bank or credit card company, think again.  In this piece I’ll explain in one sentence who is really lending you money when you borrow. The rest of the article will explain why it costs you more than you might think to take it.

Borrow now, and have less later

Loans, mortgages and credit cards are mechanisms through which you can borrow money. They don’t give you a penny to spend.  So where does the money come from? When you borrow money, you’re borrowing from your future self.  Loans and credit cards turn the impossible into reality, taking money you’ll have in the future and giving it to you today. It’s an almost magical process that clouds where the borrowed money comes from, and what it actually costs.

Let’s say you want to buy a new computer. You have three choices:

Save up to pay for it - Borrow the money - Steal the money, or the computer

Option 3 is the cheapest, but it has practical, moral, and spiritual consequences.  Option 1 requires you to live within your means, save the difference, and delay owning a PC until you can afford it. You may even buy a cheaper PC so you can own one sooner.  If you don’t like waiting and you don’t like compromise, you’ll probably go for option 2.

In some households, option 2 is the standard choice. Such people regularly borrow money to buy everything from the groceries to their summer holidays.  Borrowing might be done via: A credit card - A personal loan - Adding to the debt in your mortgage - Using a doorstep lender - A hire/purchase arrangement

All these options have advantages, costs, and consequences. Smarter borrowers shop around for the cheapest method. Others take the first loan that comes along. Finding the cheapest way to borrow is a subject for another article.  The key point is that all these methods have the same common structure: You borrow money - You must repay it 

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

https://monevator.com/the-really-obvious-thing-we-all-forget-when-borrowing-money/

Coping With The Guilt Of Losing Money

Coping With The Guilt Of Losing Money

By The Investor

I accept it’s normal to feel frustrated, angry, or even downright stupid when you lose money on your investments.

But what about guilt?

My portfolio’s fall from its peak value in summer 2007 to a low in October 2008 represents a big loss for a 30-something private investor like me: at least a couple of years of after-tax income in cash terms. More importantly, the losses meant I had fewer options in October 2008 than the year before. I’d originally begun investing to build up a house-buying war chest for when the over-valued housing market corrected itself.

After several years waiting, house prices were finally falling, but my investments had fallen further.  It was my sister who put it simplest and best, when I explained to her my fate:

“Ah, I see. If only you’d sold all your investments and put the money into a savings account! Now you’d have even more money, and you could buy a cheaper house.”

My sister was a 100% right.

Being told what I did wrong by my sister, who takes no real interest in money, might have hurt my pride. But then my emotional state has taken several turns during the bear market. I’ve felt:

Frustrated: After half a decade of waiting for property prices to fall and saving as much as 50% of my annual after-tax income, I’d thrown away my ticket to the ball.

Angry: At the world, and at the markets. What were the chances of a once in a hundred year credit crisis coming along just when I was finally getting ready to buy a house?

Foolish: If I’d thought property prices would fall so far, how could I have missed the connection with the stock market? Wishful thinking, perhaps?

Guilty: My family background is not a wealthy one, and the money I’d lost was modestly substantial – more than my parents’ life savings. What was I thinking playing roulette with the market and exposing myself to such losses?

Despite these churning emotions, I didn’t sell up in despair. Instead, I kept buying while shares were cheap. I did what history and the likes of Warren Buffett say you should do – hanging in and even buying when others were fearful.  Time will tell if this faith in the stock market simply compounds my losses or leads to a recovery, but I’m glad I’ve stuck to the rational line.  Here some tips that might help you if you’re also feeling guilty or giving in to bear market despair.

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

https://monevator.com/coping-with-the-guilt-of-losing-money/

How People Learn to Become Resilient

How People Learn to Become Resilient

By Maria Konnikova   February 11, 2016

Perception is key to resilience Do you conceptualize an event as traumatic or as a chance to learn and grow

What Matters Is The Intensity And The Duration Of The Stressor

Norman Garmezy, a developmental psychologist and clinician at the University of Minnesota, met thousands of children in his four decades of research. But one boy in particular stuck with him. He was nine years old, with an alcoholic mother and an absent father. Each day, he would arrive at school with the exact same sandwich: two slices of bread with nothing in between. At home, there was no other food available, and no one to make any.

Even so, Garmezy would later recall, the boy wanted to make sure that “no one would feel pity for him and no one would know the ineptitude of his mother.” Each day, without fail, he would walk in with a smile on his face and a “bread sandwich” tucked into his bag.

The boy with the bread sandwich was part of a special group of children. He belonged to a cohort of kids—the first of many—whom Garmezy would go on to identify as succeeding, even excelling, despite incredibly difficult circumstances.

These were the children who exhibited a trait Garmezy would later identify as “resilience.” (He is widely credited with being the first to study the concept in an experimental setting.) Over many years, Garmezy would visit schools across the country, focussing on those in economically depressed areas, and follow a standard protocol.

He would set up meetings with the principal, along with a school social worker or nurse, and pose the same question: Were there any children whose backgrounds had initially raised red flags—kids who seemed likely to become problem kids—who had instead become, surprisingly, a source of pride? “What I was saying was, ‘Can you identify stressed children who are making it here in your school?’ ” Garmezy said, in a 1999 interview. “There would be a long pause after my inquiry before the answer came.

If I had said, ‘Do you have kids in this school who seem to be troubled?,’ there wouldn’t have been a moment’s delay. But to be asked about children who were adaptive and good citizens in the school and making it even though they had come out of very disturbed backgrounds—that was a new sort of inquiry. That’s the way we began.”

Resilience presents a challenge for psychologists. Whether you can be said to have it or not largely depends not on any particular psychological test but on the way your life unfolds. If you are lucky enough to never experience any sort of adversity, we won’t know how resilient you are. It’s only when you’re faced with obstacles, stress, and other environmental threats that resilience, or the lack of it, emerges: Do you succumb or do you surmount?

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

https://www.newyorker.com/science/maria-konnikova/the-secret-formula-for-resilience

What Is A Wealth Advisor And Are They Worth It?

What Is A Wealth Advisor And Are They Worth It?

Ideally, it’s safe to say that a majority of people would love to have a personal fortune that may require working with a wealth advisor.  And if you have reached a point in your life where you need help with your assets and wealth, then you have reached a status that many others dream about!  But having a massive net worth and more money can come with even more responsibilities you might be unsure about. Even if you know finances and investing quite well, you should consider an expert to help you maintain your fortune.

That’s where a wealth advisor can be your trusted financial partner. Their goal is to ensure your needs are met and that you are set up successfully for now and the future.

But what do wealth advisors do exactly? What should you look for if you need one?

Wealth Advisors are financial consultants for clients who are already affluent. Their job entails providing high-net-worth individuals with strategic advice and action for their finances, including the use of tax-advantaged accounts, estate planning, and risk management.

Instead of managing the day-to-day finances of their clients like financial advisors would, wealth advisors are focused on nurturing and protecting what is already available.

If you are lucky enough to build a high-net-worth, protecting the wealth is going to be key to maintaining your lifestyle and protecting your family for generations to come. Wealth accumulation is just the beginning, as wealth management is what’s really necessary in order to continue financial independence.

The job title of “wealth advisor” is also just another label and category of a financial advisor. And this title does not require specific certifications or education, but good wealth advisors will hold various certifications.

Would you want someone helping and managing your millions without proper experience? I’d hope not!

How much do Wealth Advisors make?

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

https://investedwallet.com/what-is-a-wealth-advisor/

This Free Gift From The Government Is Going To Expire In A Few Years

This Free Gift From The Government Is Going To Expire In A Few Years

Notes From The Field By Simon Black

February 18, 2021  Miami, Florida

In the early first century AD, in the final years of his reign, the Roman emperor Augustus imposed a new tax on his subjects called the vicesima hereditatium.  In Latin this means literally “twentieth of inheritance”, and in effect it was a 5% tax (i.e. 1/20th) on money and property that was inherited after someone died.

Augustus exempted close relatives from paying the tax-- so someone’s children, for example, didn’t have to pay. But everyone else had to fork over a piece of the action to the Roman state.  Subsequent Roman emperors modified the law; Trajan, a second century AD emperor, created a ‘floor’ for the tax, so that anyone who inherited below a minimum amount wouldn’t have to pay.

And, as you can imagine, the tax rate rose over time.

Rome wasn’t the first civilization to come up with an estate or inheritance tax; there’s evidence going all the way back to ancient Egypt that the Pharoahs taxed the property of the dead.

And these days, estate and inheritance taxes remain a perennial favorite of bankrupt governments who are in need of cash.

To them, the only good wealthy person is a dead wealthy person, and there’s nothing they love more than stealing the assets of dead rich people.

After all, the political consequences are minimal: dead people don’t cast ballots (unless they’re voting for Joe Biden.)

The mere concept of a death tax is pretty offensive when you think about it. They tax you when you earn. They tax you when you save. They tax you when you spend. And they even tax you when you die.

But like all taxes, there are always ways around it.

There are steps you can take, for example, to dramatically reduce your income tax (i.e. the taxes you pay when you earn). You can maximize tax efficient retirement contributions, move to a lower tax state, take advantage of Puerto Rico’s extraordinary tax incentives, etc.

You can take steps to reduce taxes when you save-- for example, establishing a robust retirement account like a solo 401(k), or a foreign structure like a Maltese pension plan.

Similarly, you can take completely legal steps to ensure the government doesn’t confiscate your assets once you’ve passed away.

And frankly now is the best time to think about doing this if you’re in the Land of the Free.

This isn’t just for older people. In fact, thinking about estate tax is especially true right now IF YOU’RE YOUNG!

First-- some background.

Just like the Roman Empire under Emperor Trajan, the US federal government has a wealth limit, below which your ‘estate’ is not subject to any tax after you pass away.

But those limits vary from year to year.

2001, for example, was a terrible year to die.

That’s because the estate tax exemption back in 2001 was just $675,000. And the net value of your estate over that amount was taxed at a whopping 55%.

Over time, the exemption went up. And after the tax reform of 2017, the estate tax exemption is now $11.7 million per person, $23.4 million per couple.

Let’s be honest: that’s a lot of money. And most people will think, “Big deal, I’m worth less than $23.4 million, so I don’t even need to think about estate tax.”

But just remember that the $23.4 million exemption is set to expire in 2026, at which point the exemption drops back down to $6 million per person.

Again, though, you might think, “But I’m worth less than $6 million, so I still don’t need to think about estate tax.”

But consider the following:

A) The Bolsheviks who have invaded the media and political establishments LOVE the idea of taxing dead people.

And as the US national debt continues to rise, and the Bolsheviks continue spending unbelievable amounts of money on everything from the Green New Deal to Universal Basic Income (aka ‘Covid Relief’ in disguise), they’re going to need more funding sources.

So it’s totally possible they could whip the estate tax exemption back down to a MUCH lower level.

B) States also have estate and inheritance taxes.

Even if the federal exemption level doesn’t change, bear in mind that states have different limits and taxes too.

For example, Rhode Island’s estate tax exemption is much lower-- around $1.5 million. Washington state’s estate tax maxes out at 20%, and Nebraska’s top inheritance tax rate is 18%.

C) This matters even more if you’re young.

If you’re a broke 20 year old, you might think that making a few million bucks sounds impossible. Don’t underestimate yourself. Life is long and full of opportunity. And as crazy as the world is, talented people of integrity will always be able to create value and build wealth.

I know it’s a difficult exercise when you’re young, but if you think 70+ years down the road, you could easily find yourself having achieved far more financial success than the estate tax exemption.

So taking steps now while the exemption is high makes a lot of sense.

And that’s the entire point: right now the exemption is far greater than most people’s level of wealth, which makes it a golden opportunity to think about estate planning.

For example, setting up a properly structured domestic trust is a great option to consider.

Through a trust, you could still essentially retain control over your assets, but move them out of your taxable estate forever.

Here’s an example: Imagine you’re starting a new business. On day 1, your business is essentially worthless. So you set up a perpetual, revocable trust in South Dakota and move, say, 40% of the shares into your trust.

In time, your business becomes successful and ultimately worth $15 million.

But since 40% of it is held in the trust, at the time of your passing, you -personally- would only own 60% of the shares, i.e. $9 million.

Depending on what the exemption level is at that time, hopefully many decades from now, you may or may not owe estate tax.

But the 40% of the shares that your trust holds, worth $6 million, is completely free of estate tax, presuming the trust is properly structured.

This is one way to shield at least a portion of your assets from estate tax.

It makes sense to consider moving appreciable assets into a trust. You might want to think twice before putting depreciating assets (like a car) into a trust.

But putting shares of a well-managed business, cryptocurrency, or real estate, into a trust, means that as those assets appreciate in value, ALL of it can be shielded from estate tax.

Again, even if you’re well below the exemption level, it makes sense to think about doing this. Because the Bolsheviks could decide tomorrow morning that they want to yank the exemption back down to a much lower level.

Right now, for most people, the current $23.4 million is enormous. They’ve given everyone the opportunity to move (in practical terms) virtually unlimited assets out of our taxable estates.

We know this opportunity is set to end in a few years. And they could change the rules and end this exemption much sooner than that.

So it really makes sense to think now about the future while the window of opportunity is wide open.

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

https://www.sovereignman.com/trends/this-free-gift-from-the-government-is-going-to-expire-in-a-few-years-30899/

36 Things That Are Worth the Money

36 Things That Are Worth the Money

These are the products and experiences worth splurging on.

By Jaime Catmull November 4, 2020 Savings Accounts 101

It’s always tempting to look for the best deal, but some things are simply worth splurging on — even if you’re on a budget. As you decide when to spend and when to save, consider where quality matters to you and which experiences are on your to-do list.  I spoke to financial experts and business leaders to get insight into their thoughts on the best ways to spend money. Some of these recommendations — like international travel — might not be realistic now, in the middle of a pandemic, but they’re still worth keeping in mind for the future.  These are the purchases experts say you won’t regret.

Hiring a Virtual Assistant

Anthony Clervi, managing partner at Una, said investing in a virtual assistant can be “invaluable.” Hiring an efficient assistant to take care of administrative tasks enables you to focus more on the aspects of your work that need your attention and could help shave hours off your workweek.  Virtual assistants typically cost an average of about $16 an hour, according to PayScale.

Working Out With a Personal Trainer

Personal trainers cost an average of $26 per hour, PayScale reports. This might seem like an unnecessary expense, but personal trainers can help you meet fitness goals that you might not be able to achieve on your own — and you can’t put a price on your health. The benefits of hiring a trainer include a personalized workout, detailed instruction, motivation, accountability, a variety in your workouts and efficiency, according to Livestrong.

“Hiring a fitness coach is absolutely worth the investment and here’s why: If you’re Batman, your physical body is your Batmobile, which means it’s the vehicle that not only allows you to move and perform optimally as a human being, but keeps you feeling confident and attractive when you look in the mirror each day,” said Andrew White, co-founder of IVRY Fitness. “We pay for tons of things in life that function purely for our own entertainment, so why not flip the script and invest in yourself?”

If a personal trainer is out of your budget, do the next best thing and join a gym.

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

https://www.gobankingrates.com/saving-money/savings-advice/things-worth-money/?utm_campaign=1049483&utm_source=yahoo.com&utm_content=5

Americans’ Biggest Financial Regrets

 Americans’ Biggest Financial Regrets

Laura Woods  Last updated: Feb. 16, 2021

The old saying often rings true — hindsight is 2020. Everyone makes mistakes, and many of these blunders involve money. Many financial decisions seem like a good idea in the moment, but a few weeks, months or even years later, you realize they weren’t the best choice.  A 2019 survey conducted by Policy Genius highlights Americans’ biggest financial regrets of the decade. If you’ve ever made a major purchase you regret or opted to spend money when you should’ve been saving — admit it, you have — you’re not alone.

The good news is, financial mishaps can be corrected. If you’re willing to make meaningful changes, you can get yourself out of an uncomfortable financial situation. This might involve making tough sacrifices and/or working extra hours, but it’ll be worth it in the end.

Here’s a look at the top financial regrets, along with advice to help make the problem a thing of the past.

1. Credit Card Debt

Credit card debt can easily creep up on you. Whether you need to swipe the plastic to pay an unplanned expense or get tempted by something fun — i.e., an expensive pair of shoes or a big screen TV — racking up unpaid balances adds up fast.  One-quarter (25.1%) of people ages 35 and up cite incurring credit card debt as their biggest regret of the decade. Slightly lower, 21.5% of people ages 18 to 34 share this sentiment.

How To Tackle Credit Card Debt

If you have credit card debt, you’re in good company. Consumer credit card debt reached a record-high of $829 billion in 2019, according to Experian. Additionally, retail credit card debt totaled a record-breaking $90 billion.

Now is the time to stop being weighed down by credit card debt. If you’re ready to take action, total up all of your balances, so you know where you stand. Then decide if you’d like to take the avalanche approach — paying the highest interest cards first — or the snowball approach — paying the lowest balance first.

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

https://www.yahoo.com/finance/news/americans-biggest-financial-regrets-130036807.html