Questions You Should Ask Any Financial Advisor You Might Hire
.Questions You Should Ask Any Financial Advisor You Might Hire
Aug. 26, 2021 Lindsay Goldwert
One surprising question you should ask any financial advisor you might hire — their answer could be a huge red flag. They often manage your life savings. Be smart about who you hire. Asking the right questions can help you get a financial planner who meets your needs.
Planning your financial life can sometimes be a lot to handle on your own. If you’re paying off your debt, how much should you invest into your Roth IRA? Should you buy a house or keep renting while you build up some liquidity? While not everyone needs a certified financial planner, they can help you get organized and formulate a plan for your money. But how do you know who to trust and whether they’ll be right for what you want to accomplish?
Questions You Should Ask Any Financial Advisor You Might Hire
Aug. 26, 2021 Lindsay Goldwert
One surprising question you should ask any financial advisor you might hire — their answer could be a huge red flag. They often manage your life savings. Be smart about who you hire. Asking the right questions can help you get a financial planner who meets your needs.
Planning your financial life can sometimes be a lot to handle on your own. If you’re paying off your debt, how much should you invest into your Roth IRA? Should you buy a house or keep renting while you build up some liquidity? While not everyone needs a certified financial planner, they can help you get organized and formulate a plan for your money. But how do you know who to trust and whether they’ll be right for what you want to accomplish?
When you meet with a certified financial planner, here are the 15 questions you should ask them to make sure they are trustworthy, experienced and have your best interests at heart.
1. “‘What’s your definition of a financial planner?”
The definition of a financial planner is very broad and can encompass everything the planner helping with everything from investing and retirement, to insurance and taxes. You want to make sure that the financial planner you go with defines their job in a way that aligns with what you will need them to do. Some may only want to deal with your investments, others may take a holistic approach and even get into the nitty gritty with your budget — make sure the planner you hire can do exactly what you need. Use this tool to get matched with a planner who meets your needs.
2. “What are your qualifications?”
When it comes to planning your financial universe, you likely want a certified financial planner (CFP) or, if you want help with taxes, a certified public accountant (CPA). Just because someone says they’re a financial planner doesn’t mean they’ve taken the exams that qualify them to be a certified financial planner or CFP. They may have other licenses, such as the Series 7, that allow them to sell financial products, but that’s not the same.
“Know the difference between an actual qualification designation and what is a list of tests that a person took in order to sell stocks and bonds,” explains Katie Brewer, a Dallas-based certified financial planner and founder of Your Richest Life.
To become a certified financial planner, you must take financial planning educational courses, pass an exam with a historic pass rate of around 60%, adhere to ethical requirements, have 6,000 hours of professional financial planning experience or 4,000 hours of apprenticeship experience and keep up with continuing education. Becoming a CFA also requires rigorous education, exams and more.
“Don’t be shy about asking your financial planner when they received their CFP® mark and how long they’ve been in the business,” explains Brewer. “Trust me, we’re used to it.” You should also double check a CFP’s credentials at CFP.net.
You should also ask other questions like how long they’ve been practicing, what their typical client looks like, and their personal philosophy around financial planning.
To continue reading, please go to the original article here:
The Difference Between Wills And Trusts—What Parents Need to Know
.The Difference Between Wills And Trusts—What Parents Need to Know
Hiranmayi Srinivasan Tue, August 24, 2021
Estate planning is a crucial part of mapping out your family's future. While there are many different components of an estate plan, wills and trusts are an important part of assuring how your assets will be distributed after your death—and to whom. "When someone dies without a will, their assets belong to their estate until the probate process is complete," says Carolyn Yun, CPA and CFP at Hollow Brook Wealth Management LLC in New York. "To ensure that a person's final wishes are met, it's important to get a will drafted," she says.
A will basically directs what will happen to your property after you die. "Most wills will appoint an executor, which is the person that handles the administrative duties of settling your estate," says Emily Cisek, co-founder and CEO of The Postage, a full-service digital estate planning platform. "A trust, on the other hand, is a legal entity that is set up to hold assets for someone's benefit," says Cisek.
The Difference Between Wills And Trusts—What Parents Need to Know
Hiranmayi Srinivasan Tue, August 24, 2021
Estate planning is a crucial part of mapping out your family's future. While there are many different components of an estate plan, wills and trusts are an important part of assuring how your assets will be distributed after your death—and to whom. "When someone dies without a will, their assets belong to their estate until the probate process is complete," says Carolyn Yun, CPA and CFP at Hollow Brook Wealth Management LLC in New York. "To ensure that a person's final wishes are met, it's important to get a will drafted," she says.
A will basically directs what will happen to your property after you die. "Most wills will appoint an executor, which is the person that handles the administrative duties of settling your estate," says Emily Cisek, co-founder and CEO of The Postage, a full-service digital estate planning platform. "A trust, on the other hand, is a legal entity that is set up to hold assets for someone's benefit," says Cisek.
It's a good idea to have both. "People should definitely have both documents—in addition to a power of attorney and advanced healthcare directives," says Jala Eaton, a licensed attorney in California and a certified trust and financial advisor. But there are points where the two differ, that are important to be aware of. Here are the main differences between trusts and wills—so you can be better informed while making your plan for the future.
Everyone should have a will—it's a basic estate planning document that is effective after your death.
No matter what, you should have a will. Again, a will is where you can name your beneficiaries (who gets your assets) and is the only document where you can appoint legal guardians for any minor children you have.
While there are different types of wills, a simple will is a list of your assets and possessions and what you want to happen to them. "These are the easiest types of wills to create," says Cisek. Other types of wills include: a testamentary will, where the beneficiaries receive assets after they meet a certain condition, like age or marriage; a joint will for married couples; and living wills, which dictate what you want to happen in your last days, such as with medical care.
While wills are effective after someone's life, a trust can be used during their lifetime. A living or revocable trust allows the trustor to make changes to it, as they are usually the trustee as well. "A revocable trust provides maximum control over assets," says Cisek. "However, those funds must be reported as income," she adds. The income in an irrevocable trust, on the other hand, can't be taxed—but you also cannot make any changes to it once it's set.
To continue reading, please go to the original article here:
https://www.yahoo.com/lifestyle/difference-between-wills-trusts-parents-164059212.html
The Twelve Biggest Personal Finance Mistakes People Make Over and Over Again
.The Twelve Biggest Personal Finance Mistakes People Make Over and Over Again
Trent Hamm Founder & Columnist Last Updated: August 13, 2020
As I’ve mentioned before, I get tons of email from people describing the personal finance problems in their lives, commenting critically on things I’ve written, and offering up their own stories of success. Not only that, as The Simple Dollar has become more and more popular, I’ve had more and more opportunities to talk about personal finance with people face to face.
What amazes me is that I see most of the same problems pop up time and time again. Sure, the specifics of the story change, as do the severity of the situation, but these same twelve items come up in almost every story I hear about financial problems. Even worse, quite often multiple items from this list appear in the same tale of woe.
The Twelve Biggest Personal Finance Mistakes People Make Over and Over Again
Trent Hamm Founder & Columnist Last Updated: August 13, 2020
As I’ve mentioned before, I get tons of email from people describing the personal finance problems in their lives, commenting critically on things I’ve written, and offering up their own stories of success. Not only that, as The Simple Dollar has become more and more popular, I’ve had more and more opportunities to talk about personal finance with people face to face.
What amazes me is that I see most of the same problems pop up time and time again. Sure, the specifics of the story change, as do the severity of the situation, but these same twelve items come up in almost every story I hear about financial problems. Even worse, quite often multiple items from this list appear in the same tale of woe.
I’m not immune to them, either. At the time of my own financial meltdown, I was guilty of the majority of these things. It was only due to a commitment to fixing my financial situation that I was able to overcome these mistakes and set them right.
Here they are, the twelve biggest mistakes I witness and hear about time and time again.
Concern rarely extends beyond the next paycheck or two.
These are the people who live from paycheck to paycheck. Their next paycheck or two will cover the immediate bills. If there happens to be some money left over, it’s spent on frivolous things. These are the people who are constantly hitting the ATM to check their debit card balance so they know how much they have to spend or the people who juggle credit cards that are maxed out. The only thing that matters is the next paycheck and the brief breathing room that it provides.
What’s the solution? The best way for people in this situation to begin to escape is to set up an automatic savings plan of some sort. The automatic savings plan would scrape a small amount of money out of that checking account each week and put it somewhere safe. The point isn’t so much to build up savings (although that’s very useful and valuable), but to slowly wean yourself from spending everything that you bring in.
Only one person in the family knows where the money goes.
Most families have one person that’s largely in control of managing the money – and that’s fine. It can be very useful to have a family “accountant” – a person that manages the checkbook, makes sure the bills are paid, and so on. This can actually be a very good thing, particularly if one person in a family is particularly detail-oriented.
The problem occurs when this leads to financial atrophy in the family, where no one but the person running the checkbook knows where the money goes or is involved in the decision-making process. While it can be very easy to just let that person run things, it can be very dangerous, too. That person might not be saving appropriately for family goals, might be leveraging credit card use in order to allow everyone to keep spending as they are, and so on.
What’s the solution?
To continue reading, please go to the original article here:
5 Strategies To Protect Your Wallet From A Federal Debt Ceiling Disaster
.5 Strategies To Protect Your Wallet From A Federal Debt Ceiling Disaster
Sigrid Forberg Fri, August 27, 2021, 5:30 PM
The clock is ticking for Congress to reach a deal on the national debt ceiling — and if it can’t, the impact on Americans' pocketbooks could be disastrous.
Lawmakers have until Sept. 30 to either raise or suspend the country's debt limit. If the two political parties can't get their act together — and it's rare for them to unite on anything these days — the government won't have the legal ability to borrow more money and could default on its financial obligations.
Even just the possibility of a default can toss the country into chaos. A debt ceiling impasse in 2011 caused Standard & Poor's (S&P) to downgrade the country’s credit rating by a notch to AA+, which led to significant market volatility that year.
5 Strategies To Protect Your Wallet From A Federal Debt Ceiling Disaster
Sigrid Forberg Fri, August 27, 2021, 5:30 PM
The clock is ticking for Congress to reach a deal on the national debt ceiling — and if it can’t, the impact on Americans' pocketbooks could be disastrous.
Lawmakers have until Sept. 30 to either raise or suspend the country's debt limit. If the two political parties can't get their act together — and it's rare for them to unite on anything these days — the government won't have the legal ability to borrow more money and could default on its financial obligations.
Even just the possibility of a default can toss the country into chaos. A debt ceiling impasse in 2011 caused Standard & Poor's (S&P) to downgrade the country’s credit rating by a notch to AA+, which led to significant market volatility that year.
A debt limit debacle could rock your finances, by making the cost of a mortgage refinance and many other things more expensive. Here are five ways to protect yourself.
1. Shore up your emergency savings
If the debt ceiling isn’t raised, the U.S. could run out of cash to pay Social Security, Medicare and Medicaid, public service salaries and even tax refunds.
One big lesson we've learned from the COVID crisis is to be prepared for the unexpected.
An emergency fund will offer you peace of mind that whatever happens, you’ll have enough cash to float your family for a few months or up to a year. And if you don’t need the money, it’ll be there for the next crisis.
But don't just stash your reserve in a standard checking or savings account that might pay abysmal interest of 0.01%. Look around for a high-yield savings account that will offer better returns.
2. Refinance your mortgage now
If it merely appears that the country might default on its debt, lenders may be less keen to take on risks. That would mean higher borrowing costs for everyone, even if a free peek at your credit score shows that yours is looking pretty good.
A debt ceiling disaster could lift mortgage rates, which have been at historic lows throughout the pandemic. If you're a homeowner and haven't refinanced yet, you probably shouldn't put it off much longer.
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/5-strategies-protect-wallet-federal-213000311.html
How to Keep Your Emergency Fund Safe
.How to Keep Your Emergency Fund Safe, Accessible and Away From Temptation
Georgina Tzanetos Fri, August 27, 2021,
Keeping extra money around in cash is always a good idea — but it depends on where you keep it. The old under-the-mattress strategy is never a good idea and with the ease of modern-day banking, a traditional savings account might not be as well.
Banking apps can see your hard-earned savings transferred into an active checking account with a few swipes, and the money used for things other than you intended. A traditional savings account can be useful for things like saving for a home, travel or college savings, all of which can ebb and flow with changing goals and circumstances.
How to Keep Your Emergency Fund Safe, Accessible and Away From Temptation
Georgina Tzanetos Fri, August 27, 2021,
Keeping extra money around in cash is always a good idea — but it depends on where you keep it. The old under-the-mattress strategy is never a good idea and with the ease of modern-day banking, a traditional savings account might not be as well.
Banking apps can see your hard-earned savings transferred into an active checking account with a few swipes, and the money used for things other than you intended. A traditional savings account can be useful for things like saving for a home, travel or college savings, all of which can ebb and flow with changing goals and circumstances.
One thing that should never be touched though is a true emergency fund, the kind of money you will need if, let’s say, a global pandemic all of a sudden upends world order as you know it and you need sustained cash.
A good answer is a high-yield savings account. Its biggest benefit — a higher interest rate than a traditional savings account — is not the only reason opening one up is a good idea. High-yield savings accounts are the only accounts of their kind where money is almost as liquid as a regular savings account, but more restricted.
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/keep-emergency-fund-safe-accessible-114211592.html
Is Having Multiple Bank Accounts a Good Idea?
.Is Having Multiple Bank Accounts a Good Idea?
100-Level (Novice) | Everyday Money Updated August 23, 2021
When it comes to bank accounts, is too much of a good thing too much? Should you have more than one or two bank accounts? And should they be at different banks? The more bank accounts you have, the more time it takes to track and manage them. But there are advantages to having multiple accounts. Read on to decide if having more than one bank account can be useful for you.
How many bank accounts should I have?
It’s an excellent idea for most people to have at least two bank accounts: a checking and savings account. And when you link your savings account to your checking account, transfers are a piece of cake. To keep things simple, you might want checking and savings accounts at the same bank.
Is Having Multiple Bank Accounts a Good Idea?
100-Level (Novice) | Everyday Money Updated August 23, 2021
When it comes to bank accounts, is too much of a good thing too much? Should you have more than one or two bank accounts? And should they be at different banks? The more bank accounts you have, the more time it takes to track and manage them. But there are advantages to having multiple accounts. Read on to decide if having more than one bank account can be useful for you.
How many bank accounts should I have?
It’s an excellent idea for most people to have at least two bank accounts: a checking and savings account. And when you link your savings account to your checking account, transfers are a piece of cake. To keep things simple, you might want checking and savings accounts at the same bank.
Linked accounts with one routing number make managing your money easier. And some banks offer overdraft protection and cover a checking shortage with funds from your connected savings account. Yet, there are some reasons you might want multiple accounts (perhaps at different institutions).
Below are a few of those reasons:
You want a checking or savings account separate from the joint account with your partner.
You’re self-employed and need a business account separate from your personal funds.
You want to take advantage of the perks offered by different banks.
You don’t want to have all your money in one bank.
The Pros and Cons of Owning More Banking Accounts
Let’s look at the pros and cons of having multiple accounts, so you can decide if it’s right for you.
Pros: Why have a number of bank accounts
To track different savings goals. You might want to use multiple bank accounts for targeted savings goals. Keeping each savings goal separate makes it easier to manage and stay motivated.
To continue reading, please go to the original article here:
Avoiding Common Mistakes in Estate Planning
.Avoiding Common Mistakes in Estate Planning [Tips & Checklist to Help You Avoid Them]
200-Level (Intermediate) | Estate Planning | Relationships & Money August 23, 2021
We all make mistakes, some big, some small. The good news is we can learn and recover from most if not all of them before it’s too late. When it comes to family, finances, and medical care in terms of estate planning, people make several frequent errors.
These often made blunders include not having an advance health care directive or powers of attorney, failing to name a guardian for minor children, not titling real estate correctly, and forgetting to name or update a beneficiary on a life insurance policy, retirement plans, or other financial accounts after major life events.
Below you’ll find an excerpt from our new book Estate Planning 101, with 20+ common estate planning mistakes and tips to avoid them (plus an estate planning checklist to keep you on track). Being aware of these often made missteps or omissions will help you do proper planning, and steer clear of them-or identify any you’ve already made. If you can raise your hand for any, it’s time for corrective actions.
Avoiding Common Mistakes in Estate Planning [Tips & Checklist to Help You Avoid Them]
200-Level (Intermediate) | Estate Planning | Relationships & Money August 23, 2021
We all make mistakes, some big, some small. The good news is we can learn and recover from most if not all of them before it’s too late. When it comes to family, finances, and medical care in terms of estate planning, people make several frequent errors.
These often made blunders include not having an advance health care directive or powers of attorney, failing to name a guardian for minor children, not titling real estate correctly, and forgetting to name or update a beneficiary on a life insurance policy, retirement plans, or other financial accounts after major life events.
Below you’ll find an excerpt from our new book Estate Planning 101, with 20+ common estate planning mistakes and tips to avoid them (plus an estate planning checklist to keep you on track). Being aware of these often made missteps or omissions will help you do proper planning, and steer clear of them-or identify any you’ve already made. If you can raise your hand for any, it’s time for corrective actions.
Whether you’re 18 or 118, you need at least some basic estate planning documents. Prioritize the essentials of an estate plan as a part of your overall life plan.
Learn from others’ errors, so you don’t make any yourself. Or at least have time to fix any already incurred. Before it becomes too late.
Tips for Getting It Right the First Time
An estate plan that’s full of mistakes might cause more harm than good. Make sure you read all legal documents thoroughly and correct any errors you find before signing them.
Misspelled names or incorrect addresses, accidentally omitting an heir, or gifting the wrong asset to a beneficiary can happen. While you can easily fix those types of mistakes when caught, they may cause lots of grief when they’re not.
Common Mistakes in Estate Planning
Here is a list of frequent estate planning mistakes people make, followed by a checklist to use when doing yours. While neither is an exhaustive list, they can help you avoid errors and track necessary steps as you strategize and put your plan into play.
• Not planning at all! You’re headed in the right direction by reading this book. Now you need to put in the work.
• Planning but not implementing. Without a will, power of attorney, and advance directives, your state determines who manages your affairs and how your property’s distributed. To have your final wishes known and followed, create those legal forms at a minimum.
• Not doing any other financial planning. Estate planning is just one part of a more extensive financial planning process. Not putting time and effort into other areas could put your finances at risk.
• Focusing too narrowly on individual assets. Because specific items in your estate vary over time, consider leaving heirs a percentage of your estate’s value instead of giving them assets individually. This eliminates the need to revise your will every time significant investments change.
To continue reading, please go to the original article here:
https://womenwhomoney.com/avoiding-common-mistakes-in-estate-planning/
How A Baby-Faced CEO Turned A Farmville Clone Into A Massive Ponzi Scheme
.Fraud on the Farm: How A Baby-Faced CEO Turned A Farmville Clone Into A Massive Ponzi Scheme
By Paul Benjamin Osterlund 20 July 2021 • Turkey
Farm Bank let players make money, while supporting real farms. Then the CEO vanished with $80 million.
Fraud on the Farm: How a baby-faced CEO turned a Farmville clone into a massive Ponzi scheme
On November 21, 2019, 25-year-old Recep Ataş stepped onto a shooting range in the Istanbul suburb of Başakşehir. He fired several rounds at the target, before suddenly aiming the weapon directly against his heart and pulling the trigger. The single shot killed him.
The next day, Ataş’ father told local media that his son was depressed — a large bank loan loomed over him. The money Ataş had borrowed evaporated after he’d invested it in Farm Bank, a smartphone app similar to the once-popular Facebook game Farmville. But unlike Farmville, Farm Bank had a real-world twist.
Fraud on the Farm: How A Baby-Faced CEO Turned A Farmville Clone Into A Massive Ponzi Scheme
By Paul Benjamin Osterlund 20 July 2021 • Turkey
Farm Bank let players make money, while supporting real farms. Then the CEO vanished with $80 million.
Fraud on the Farm: How a baby-faced CEO turned a Farmville clone into a massive Ponzi scheme
On November 21, 2019, 25-year-old Recep Ataş stepped onto a shooting range in the Istanbul suburb of Başakşehir. He fired several rounds at the target, before suddenly aiming the weapon directly against his heart and pulling the trigger. The single shot killed him.
The next day, Ataş’ father told local media that his son was depressed — a large bank loan loomed over him. The money Ataş had borrowed evaporated after he’d invested it in Farm Bank, a smartphone app similar to the once-popular Facebook game Farmville. But unlike Farmville, Farm Bank had a real-world twist.
Launched in 2016, Farm Bank was billed as a way for players to “win as they play, and have fun as they win,” and encouraged them to invest in what they thought was actual livestock and agricultural land. Spurred on by friends and relatives, who claimed to have received returns on their investments, thousands of people rushed to put their money in Farm Bank. In actuality, Farm Bank was a smartphone-based pyramid scheme.
At first, users paid real money for the upkeep of virtual chickens, sheep, bees, and cattle, earning cash back in the game by keeping the animals alive. Players were also given a small cut of the profits for bringing in new players.
Riding high on the good publicity, Farm Bank soon went one step further, launching real-life farms. A local religious leader, a district governor, and a local mayor attended one farm’s opening ceremony in 2017.
The fanfare surrounding these grand openings were little more than PR stunts — the few animals on display weren’t actually being raised with Farm Bank investors’ money — but it all spoke to just how influential the game had become. Advertisements for the game featured stars such as the famous TV actor Mehmet Çevik and depicted expansive farms with actual livestock.
Farm Bank went on to weave a complicated, meta-business model: in 2017, the company began setting up deli franchises across Turkey. Franchisees paid Farm Bank about $30,000 (100,000 lira) to open shops that sold sausage, cheese, butter, honey, and other goods emblazoned with the Farm Bank logo — suggesting that the produce had come from the company’s livestock. It did not.
To continue reading, please go to the original article here:
https://restofworld.org/2021/farmbank-turkey-scam-jail-time/
How Long Will The US Dollar’s Dominance Last?
.How Long Will The US Dollar’s Dominance Last?
Notes From The field By Simon Black August 25, 2021 Bahia Beach, Puerto Rico
301 AD was a big year for the Roman Empire.
That was the year that, amid spiraling inflation, Emperor Diocletian issued his Edict on Maximum Prices, essentially fixing prices of just about everything across the Roman Empire.
The price of wheat, a day labor’s wages, a quart of olive oil, transportation rates-- everything was established by the Emperor’s edict, and enforced under penalty of death. Diocletian’s edict infamously didn’t work, and the empire plunged into even more severe inflation.
How Long Will The US Dollar’s Dominance Last?
Notes From The field By Simon Black August 25, 2021 Bahia Beach, Puerto Rico
301 AD was a big year for the Roman Empire.
That was the year that, amid spiraling inflation, Emperor Diocletian issued his Edict on Maximum Prices, essentially fixing prices of just about everything across the Roman Empire.
The price of wheat, a day labor’s wages, a quart of olive oil, transportation rates-- everything was established by the Emperor’s edict, and enforced under penalty of death. Diocletian’s edict infamously didn’t work, and the empire plunged into even more severe inflation.
The other big event of 301 AD was the introduction of the solidus gold coin, roughly 4.5 grams of nearly pure gold.
And while the Romans had a history of debasing their other coins, like the silver denarius and sesterce, the government actually did a pretty good job maintaining the value and purity of the gold solidus.
Even hundreds of years later, after the western empire in Rome had fallen to the barbarians, and imperial power was concentrated in Byzantium, the gold solidus was still approximately as pure as it was in the early 300s.
That’s an extraordinary track record for currency stability. Confidence in the gold solidus was so high, in fact, that various tribes and kingdoms around the world used the coin for trade and savings.
This became a source of pride for the Byzantine Empire; Justinian I, who ruled in the mid 500s, stated that the solidus was “accepted everywhere from end to end of the Earth,” and that it was “admired by all men in all kingdoms, because no kingdom has a currency that can be compared to it.”
It wasn’t until the mid 11th century, more than seven centuries after the introduction of the solidus, that an Emperor began to debase the currency.
Just like Hemingway described going bankrupt, the debasement of the solidus was gradual… then sudden.
Emperor Constantine IX, who ruled from 1042 to 1055, reduced the gold purity down to 87.5%. His successor brought it down to 75%. By the end of the century it had been reduced to just 33%.
The rest of the world took notice. The Byzantine Empire’s political, economic, and military power were waning. And with the rapid debasement of the solidus, international traders looked for other options.
Soon the rising Italian city states, particularly Venice and Florence, began minting their own gold coins; Italy was rapidly becoming the dominant economic power in Europe, so their ducats and florins became widely accepted, essentially replacing Byzantine coins for international trade.
Throughout history, in fact, reserve currencies have routinely changed, just as frequently as power and wealth shift.
For example, the Spanish real de ocho was the dominant reserve currency for hundreds of years, just as the Spanish Empire was the dominant power in the world.
But eventually Spain’s wealth and power waned, and the real de ocho was replaced. The Dutch guilder dominated European trade in the 1600s and 1700s, just as the Netherlands’ wealth and power soared. Yet they were displaced by the British Empire and pound sterling in the 1800s and early 1900s.
Both the United States and the US dollar have held this status for the last 80 years. And at the moment this is still the case.
History, however, is very clear on this point: wealth and power shift. Reserve currencies change. And it would be foolish to assume that this time is different.
Reserve currencies hold their status because the rest of the world has confidence-- confidence in the soundness of the currency, confidence in the power and prestige of the country that issues it.
But let’s be honest: the rest of the world is probably not brimming with confidence in the United States right now.
They’re looking at this shameful, disgraceful catastrophe in Afghanistan and wondering, “Is this seriously the world’s dominant superpower?”
But it’s more than Afghanistan. It’s endless deficits. It’s ridiculous spending initiatives that pay people to stay home and NOT work. It’s rising inflation thanks to the continued erosion of the US dollar.
None of these inspires confidence.
It was nearly 1,000 years ago when foreign traders began looking for new options after they lost confidence in the solidus, and in the Byzantine government.
Today there are already international banks, multinational businesses, and foreign governments that are starting to diversify out of the US dollar.
This is a major change. It’s not something that will happen overnight; like the solidus debasement, it will happen gradually… then suddenly.
There will be small milestones and minor events that take place over a period of many years. A lot of it has already happened.
But the end result will be a sharp decline in the US dollar’s market share of global reserves. And for anyone holding US dollars, that’s going to mean a LOT more inflation.
If you want to learn more about this, I’d encourage you to listen to our Freedom Podcast today; we discuss reserve currencies, the rise of a Chinese alternative, and even potential future conflict with China.
You can download and listen here.
To your freedom and Prosperity,
Simon Black, Founder, SovereignMan.com
The Difference Between Wills And Trusts
.The Difference Between Wills And Trusts—What Parents Need to Know
Hiranmayi Srinivasan Tue, August 24, 2021
Estate planning is a crucial part of mapping out your family's future. While there are many different components of an estate plan, wills and trusts are an important part of assuring how your assets will be distributed after your death—and to whom. "When someone dies without a will, their assets belong to their estate until the probate process is complete," says Carolyn Yun, CPA and CFP at Hollow Brook Wealth Management LLC in New York. "To ensure that a person's final wishes are met, it's important to get a will drafted," she says.
A will basically directs what will happen to your property after you die. "Most wills will appoint an executor, which is the person that handles the administrative duties of settling your estate," says Emily Cisek, co-founder and CEO of The Postage, a full-service digital estate planning platform. "A trust, on the other hand, is a legal entity that is set up to hold assets for someone's benefit," says Cisek.
The Difference Between Wills And Trusts—What Parents Need to Know
Hiranmayi Srinivasan Tue, August 24, 2021
Estate planning is a crucial part of mapping out your family's future. While there are many different components of an estate plan, wills and trusts are an important part of assuring how your assets will be distributed after your death—and to whom. "When someone dies without a will, their assets belong to their estate until the probate process is complete," says Carolyn Yun, CPA and CFP at Hollow Brook Wealth Management LLC in New York. "To ensure that a person's final wishes are met, it's important to get a will drafted," she says.
A will basically directs what will happen to your property after you die. "Most wills will appoint an executor, which is the person that handles the administrative duties of settling your estate," says Emily Cisek, co-founder and CEO of The Postage, a full-service digital estate planning platform. "A trust, on the other hand, is a legal entity that is set up to hold assets for someone's benefit," says Cisek.
It's a good idea to have both. "People should definitely have both documents—in addition to a power of attorney and advanced healthcare directives," says Jala Eaton, a licensed attorney in California and a certified trust and financial advisor. But there are points where the two differ, that are important to be aware of. Here are the main differences between trusts and wills—so you can be better informed while making your plan for the future.
Everyone should have a will—it's a basic estate planning document that is effective after your death.
No matter what, you should have a will. Again, a will is where you can name your beneficiaries (who gets your assets) and is the only document where you can appoint legal guardians for any minor children you have.
While there are different types of wills, a simple will is a list of your assets and possessions and what you want to happen to them. "These are the easiest types of wills to create," says Cisek. Other types of wills include: a testamentary will, where the beneficiaries receive assets after they meet a certain condition, like age or marriage; a joint will for married couples; and living wills, which dictate what you want to happen in your last days, such as with medical care.
While wills are effective after someone's life, a trust can be used during their lifetime. A living or revocable trust allows the trustor to make changes to it, as they are usually the trustee as well. "A revocable trust provides maximum control over assets," says Cisek.
To continue reading, please go to the original article here:
https://www.yahoo.com/lifestyle/difference-between-wills-trusts-parents-164059212.html
What Are Financial Milestones and Why Is It Important To Reach Them?
.What Are Financial Milestones and Why Is It Important To Reach Them?
Andrew Lisa Mon, August 23, 2021
No matter your age, you might feel like you’re falling behind financially and missing the mark of where you’re supposed to be at your particular stage of life — but “supposed to be” is different for everyone. The good news is, there are a few universal financial milestones that just about anyone should aim for if they care about funding a full life and an independent retirement. Here are a few of the big ones.
Have an Active Brokerage Account in Your 20s
If you’re young today, congratulations. You’re holding every investor’s greatest weapon — time. The high costs of brokerage accounts used to price regular people out of investing, even when they were in their prime earning years. But today, there aren’t a lot of good excuses not to have money in the stock market — even for 20-somethings.
What Are Financial Milestones and Why Is It Important To Reach Them?
Andrew Lisa Mon, August 23, 2021
No matter your age, you might feel like you’re falling behind financially and missing the mark of where you’re supposed to be at your particular stage of life — but “supposed to be” is different for everyone. The good news is, there are a few universal financial milestones that just about anyone should aim for if they care about funding a full life and an independent retirement. Here are a few of the big ones.
Have an Active Brokerage Account in Your 20s
If you’re young today, congratulations. You’re holding every investor’s greatest weapon — time. The high costs of brokerage accounts used to price regular people out of investing, even when they were in their prime earning years. But today, there aren’t a lot of good excuses not to have money in the stock market — even for 20-somethings.
Free brokerage accounts with no fees, no minimums and no commissions are now the rule, not the exception. If you’re new to the workforce, you probably don’t have much money to spare, but by throwing whatever you can whenever you can at a simple investment like an index-tracking ETF, you can turn a pittance into a plethora. You don’t need a lot of money or investing experience. You have time, the greatest tool of all. Just kick in your spare change and let the years and the power of compounding do the rest.
Be One of Those ‘Well-Qualified Buyers’ You Keep Hearing About in Your 30s
When they rattle off the 0% financing/$0 down offers on the car commercials you see on TV, the small print says that they’re talking only to the most highly qualified buyers. Those are the people with excellent credit, which, according to Experian, means their credit scores all start with the number 8.
The FICO credit scoring system goes up to 850, and those with scores of 800 and above get the lowest rates and the best deals when they take out loans and finance purchases. If you’ve paid your bills on time every time, kept your debt low in relation to your credit, applied for credit sparingly, and avoided legal judgments and bankruptcies for your recent adult life, 800 is within reach by your 30s. If not, now is the time to get started with good financial habits.
Have Three Times Your Salary Saved for Retirement in Your 40s
There is no hard-and-fast rule for how much to save for retirement by each decade of life, but Fidelity’s readiness ladder of progression is one of the most widely cited models in the industry. By age 30, Fidelity suggests having the equivalent of your annual salary saved for retirement. By 40, it becomes three times your annual salary — if you earn $50,000 a year, that’s $150,000 in retirement savings. If you do that, difficult as it may seem, the next step is within reach — six times your annual salary by 50, followed by eight times by 60 and 10 times by 67.
Have Your End-of-Life Affairs in Order in Your 50s
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/financial-milestones-why-important-reach-171850361.html