Can a Power of Attorney Transfer Money to Themselves?
.Can a Power of Attorney Transfer Money to Themselves?
Eric Reed Tue, September 21
For many families with elderly people or engaged in estate planning, power of attorney is essential, especially if the elderly person’s mental abilities are compromised. Having someone who can take care of legal and financial matters can make this part of life far easier.
However, power of attorney is a sweeping grant of authority. Depending on how you structure this grant, a power of attorney can – in some cases – transfer money and property to themselves. However, it is uncommon and only allowed in specific circumstances. Here’s a general overview of this topic. Keep in mind that power of attorney laws vary by state. It’s prudent to consult an attorney before making any decisions.
A financial advisor can help you understand if there are alternatives to creating a power of attorney as you engage in estate planning.
Can a Power of Attorney Transfer Money to Themselves?
Eric Reed Tue, September 21
For many families with elderly people or engaged in estate planning, power of attorney is essential, especially if the elderly person’s mental abilities are compromised. Having someone who can take care of legal and financial matters can make this part of life far easier.
However, power of attorney is a sweeping grant of authority. Depending on how you structure this grant, a power of attorney can – in some cases – transfer money and property to themselves. However, it is uncommon and only allowed in specific circumstances. Here’s a general overview of this topic. Keep in mind that power of attorney laws vary by state. It’s prudent to consult an attorney before making any decisions.
A financial advisor can help you understand if there are alternatives to creating a power of attorney as you engage in estate planning.
What Is Power of Attorney?
Power of attorney is when you assign someone the authority to make legally binding decisions on your behalf. This can mean managing financial assets, making choices regarding medical care, signing contracts and other commitments. A power of attorney can access confidential materials and their decisions are as binding as if you had made them yourself.
Most of the time power of attorney is a limited grant of authority. That is to say, you will give someone power of attorney to do specific things or to act within a specific scope. For example, the IRS ordinarily would not accept taxes filed by a third party; you must file your taxes yourself.
However, assigning power of attorney to your tax preparer gives that person the authority to file your taxes as though you had done so yourself. This is a common practice and lets the tax preparer see a client’s confidential IRS and bank records, as well as filing taxes on the client’s behalf. Such power, however, doesn’t allow the person to sign contracts in your name or sell your car. Their authority is limited to reviewing your finances and filing documents with the IRS.
In some cases you may assign what’s known as general power of attorney. This is one of three types of durable power of attorney (the other two are special power of attorney and healthcare or medical power of attorney). With a general power of attorney, the person can make just about any decisions at all on your behalf while the power of attorney assignment remains valid. People will often make a general assignment to a trusted family member or long-time friend if they are going to be unreachable or incapacitated.
Limits on Power of Attorney Asset Transfers
To continue reading, please go to the original article here:
The US Has 10 Days Before It Defaults On Its Debt
.The US Has 10 Days Before It Defaults On Its Debt – What That Could Mean For You
Georgina Tzanetos Tue, September 21, 2021
The United States has historically been one of the most credit-worthy countries in the entire world. U.S. Treasury bonds are considered some of the safest financial instruments in international markets, and their movements are used as a benchmark for movement within the global economy.
The U.S. is also a debt nation — we all have some form of it, be it with monthly credit cards, student loans and mortgages. It’s hard to think of a world where you can’t just go to a bank and get a mortgage for your first house or open up even a low-limit credit card — but the reality is the U.S. is a privileged place in terms of the free-flowing credit most of its citizens run on.
The US Has 10 Days Before It Defaults On Its Debt – What That Could Mean For You
Georgina Tzanetos Tue, September 21, 2021
The United States has historically been one of the most credit-worthy countries in the entire world. U.S. Treasury bonds are considered some of the safest financial instruments in international markets, and their movements are used as a benchmark for movement within the global economy.
The U.S. is also a debt nation — we all have some form of it, be it with monthly credit cards, student loans and mortgages. It’s hard to think of a world where you can’t just go to a bank and get a mortgage for your first house or open up even a low-limit credit card — but the reality is the U.S. is a privileged place in terms of the free-flowing credit most of its citizens run on.
That could change in the next 10 days. During President Donald Trump’s presidency, the national debt climbed over $8 trillion largely fueled by massive tax cuts and emergency pandemic spending. The Biden administration, thus far, has increased the county’s debt by about another $3.5 trillion with the American Rescue Plan stimulus relief bill and other economic recovery efforts during the ongoing pandemic.
The government fiscal year ends Sept. 30 and a new budget will need to be agreed on in order to fund the spending that has already happened.
How The Government Funds These Big Spending Bills
Using this year as an example, the government essentially took out a $3.5 trillion loan against itself in order to pay for things like stimulus payments, business relief, etc. Now, it is time to pay that loan back — this is done in the form of bonds. The government agrees on a certain level, or debt ceiling, of debt to issue in the form of Treasury bonds. These bonds are then sold into the open market at monthly auctions held by the Treasury itself. This, plus taxes you pay, raises the revenue needed for things like government spending.
To continue reading, please go to the original article here:
https://news.yahoo.com/us-10-days-defaults-debt-162711207.html
A Different Way To Think About The Evergrande Collapse
.A Different Way To Think About The Evergrande Collapse
Notes From the Field By Simon Black September 21, 2021 Bahia Beach, Puerto Rico
On the evening of June 9, 1772, Alexander Fordyce was drunk out of his mind when he came stumbling home to his wife. As Fordyce was a widely respected London banker and senior partner at the firm Neale, James, Fordyce, and Down, this behavior was uncharacteristic… and his family was rightfully worried. The next morning Fordyce was gone. He had fled across the English Channel to France. And then the news struck-- his bank had gone bust and was closing its doors.
By itself this shouldn’t have been a big deal; it was only one guy, and one bank. But Fordyce hadn’t simply made some bad investments with his own money. Nor had he simply made bad investments with his depositor’s money. Fordyce had borrowed HEAVILY, from just about everyone, and made a number of spectacularly terrible investments.
A Different Way To Think About The Evergrande Collapse
Notes From the Field By Simon Black September 21, 2021 Bahia Beach, Puerto Rico
On the evening of June 9, 1772, Alexander Fordyce was drunk out of his mind when he came stumbling home to his wife. As Fordyce was a widely respected London banker and senior partner at the firm Neale, James, Fordyce, and Down, this behavior was uncharacteristic… and his family was rightfully worried. The next morning Fordyce was gone. He had fled across the English Channel to France. And then the news struck-- his bank had gone bust and was closing its doors.
By itself this shouldn’t have been a big deal; it was only one guy, and one bank. But Fordyce hadn’t simply made some bad investments with his own money. Nor had he simply made bad investments with his depositor’s money. Fordyce had borrowed HEAVILY, from just about everyone, and made a number of spectacularly terrible investments.
Fordyce’s borrowings had become so vast, in fact, that when he defaulted it nearly brought down the entire financial system.
Stock prices crashed. Banks shuttered. Financial markets in foreign countries, including the Netherlands, took a big hit.
And the British Government passed the Tea Act in order to raise tax revenue, stabilize the economy, and help the East India Company’s recovery.
The Tea Act proved to be wildly unpopular in the colonies, leading to the infamous Boston Tea Party… which was a major precursor to the American Revolution.
Now, I’m not saying that Fordyce caused the American Revolution. The Revolution would have probably taken place eventually, even without Fordyce’s catastrophic stupidity.
But it is incredible how a single event can trigger a widespread chain reaction with such far-reaching consequences.
Yesterday we saw a tiny glimpse of this; stock markets around the world collectively had a minor hissy fit in response to news that a Chinese property developer-- Evergrande-- would default on its colossal debt.
Investors were afraid that an Evergrande default would ripple through the financial system and cause a chain reaction of failures, just like what happened with Fordyce’s default in 1772, and Lehman Brothers in 2008.
Now, I do have to say that, based on the the information we have about Evergrande, fears about this specific issue are overblown.
Evergrande has roughly $300 billion in liabilities. Even if that entire amount goes to zero, it’s a small fraction of the Chinese banking system’s $5+ trillion in capital.
I’d be much more concerned about Evergrande’s impact on China’s notoriously overleveraged ‘shadow banking system’, and their high-risk ‘wealth management products’. But we’ll save that for another time.
What I take away from the Evergrande collapse is the reminder about how seemingly innocuous events can have a major impact on global financial markets. Especially now.
Stocks, bonds, real estate, and many commodities are at/near all-time highs, some with valuations that are completely absurd.
Today, the Price/Earnings ratio for a typical S&P 500 company is nearly 50% higher than before the pandemic.
Companies’ revenues and profits are essentially the same as they were in January 2020. Yet stock prices are substantially higher.
The situation is so ridiculous that even an analyst who works at S&P wrote earlier this month: “This Market Is Nuts”.
In an environment like this, when asset prices already boggle the imagination, it doesn’t take very much for some seemingly irrelevant event, like an Evergrande default, to spark a global sell-off.
This is why I’ve been giving so much thought lately to the idea of ‘uncorrelated assets.’
Because if the proverbial bubble ever bursts, it’s going to have a substantial impact on most major asset classes. But uncorrelated asset classes wouldn’t be as affected.
Typically, ‘uncorrelated assets’ are thought of as being uncorrelated to the stock market; in other words, a boom or bust in stocks would have zero impact on an uncorrelated asset.
But I’ve been giving serious thought to assets that are essentially uncorrelated to central bank policy.
This turns out to be a really difficult thing to find.
Central bank policy is what influences the vast majority of asset prices; when banks print money (as they have printed vast trillions of dollars over the past 18 months), asset prices rise.
This is precisely what we’re seeing today.
Stocks, bonds, real estate, commodities, etc.-- the prices of these asset classes are all heavily influenced by whether or not central banks are printing money.
And while nothing can be completely insulated by central bank policy, there are some assets that are less influenced by it, i.e. ‘undercorrelated’.
I believe carbon credits are one example, especially in the voluntary market. The price of carbon credits is driven more by social trends, corporate responsibility policies, and government regulation, than by central banks.
Central banks’ interest rate policies will impact whether some carbon capture projects are able to obtain funding.
But project finance is only one factor in supply; regulatory bureaucracy is a far greater hurdle to overcome than whether interest rates are 2% or 6%.
Another example is water rights. Again, while cheap interest rates may encourage more water projects, the availability of water rights is ultimately determined by government policy and social trends, not by central bankers.
Agriculture can also be an undercorrelated asset.
Major products like corn, wheat, soy, coffee, etc. which have exchange-traded futures contracts are extremely susceptible to central bank policy.
But other products, like fruits and nuts, which don’t have exchange-traded futures contracts are much more influenced by traditional supply and demand fundamentals, rather than by monetary policy.
High quality technology IP (which can cut costs or increase productivity) can also be undercorrelated to central bank policy.
There are others to consider, and we’ll explore this concept further in a future letter… including whether gold and cryptocurrency may be undercorrelated.
To your freedom, Simon Black, Founder, SovereignMan.com
https://www.sovereignman.com/investing/a-different-way-to-think-about-the-evergrande-collapse-33516/
Can a Power of Attorney Change a Will?
.Can a Power of Attorney Change a Will?
Eric Reed Fri, September 17, 2021, 12:53 PM
Power of attorney is one of the most important legal forms for estate and elder care planning. Along with wills and trust documents, it is a critical document for arranging one’s affairs. A power of attorney cannot change a properly written will. However, such a person can make many changes to the assets surrounding that estate.
Here is how it works. Estate planning can get complicated, quickly; working with a financial advisor goes a long way to simplifying the challenge. Estate planning can get complicated, but working with a financial advisor is one of the best ways to clarify and even simplify the challenge.
Can a Power of Attorney Change a Will?
Eric Reed Fri, September 17, 2021, 12:53 PM
Power of attorney is one of the most important legal forms for estate and elder care planning. Along with wills and trust documents, it is a critical document for arranging one’s affairs. A power of attorney cannot change a properly written will. However, such a person can make many changes to the assets surrounding that estate.
Here is how it works. Estate planning can get complicated, quickly; working with a financial advisor goes a long way to simplifying the challenge. Estate planning can get complicated, but working with a financial advisor is one of the best ways to clarify and even simplify the challenge.
What Is Power of Attorney?
Power of attorney is when you assign someone the authority to make legally binding decisions on your behalf. This can mean managing financial assets, making choices regarding medical care, signing contracts and other commitments. A power of attorney can access confidential materials and their decisions are as binding as if you had made them yourself.
Most of the time power of attorney is a limited grant of authority. That is to say, you will give someone power of attorney to do specific things or to act within a specific scope. For example, the IRS ordinarily would not accept taxes filed by a third party; you must file your taxes yourself.
However, assigning power of attorney to your tax preparer gives that person the authority to file your taxes as though you had done so yourself. This is a common practice and lets the tax preparer see a client’s confidential IRS and bank records, as well as filing taxes on the client’s behalf. Such power, however, doesn’t allow them to sign contracts in your name or sell your car. Their authority is limited to reviewing your finances and filing documents with the IRS.
In some cases you may assign what’s known as general power of attorney. This is one of three types of durable power of attorney (the other two are special power of attorney and healthcare or medical power of attorney).
With a general power of attorney, the person can make just about any decisions at all on your behalf while the power of attorney assignment remains valid. People will often make a general assignment to a trusted family member or long-time friend if they are going to be unreachable or incapacitated.
Power of Attorney Cannot Change a Will
To continue reading, please go to the original article here:
How To Help Someone Who’s Struggling Financially
.How To Help Someone Who’s Struggling Financially
Laura Woods Mon, September 20, 2021
Someone you know is in the midst of financial hardship, and you’re not about to sit back and watch them struggle. You want to intervene, without overstepping, but you’re not sure what that looks like.
Approximately one-quarter (27%) of U.S. adults are frequently concerned about paying their bills, according to a 2021 survey conducted by the Pew Research Center. Additionally, 19% worry almost every day about paying their rent or mortgage, while 18% are anxious about their ability to buy enough food for their household.
Clearly, the person you know is not alone with their money issues, but thanks to you, a reprieve may soon be headed their way.
How To Help Someone Who’s Struggling Financially
Laura Woods Mon, September 20, 2021
Someone you know is in the midst of financial hardship, and you’re not about to sit back and watch them struggle. You want to intervene, without overstepping, but you’re not sure what that looks like.
Approximately one-quarter (27%) of U.S. adults are frequently concerned about paying their bills, according to a 2021 survey conducted by the Pew Research Center. Additionally, 19% worry almost every day about paying their rent or mortgage, while 18% are anxious about their ability to buy enough food for their household.
Clearly, the person you know is not alone with their money issues, but thanks to you, a reprieve may soon be headed their way.
However, before you make a commitment to help, Marcy Keckler, senior vice president, marketing and financial advice strategy at Ameriprise Financial, advised assessing your own situation, making sure you’re still able to reach financial goals, such as saving for retirement.
Additionally, she encouraged you to get on the same page regarding the financial assistance.
“You should determine if you are giving a gift or providing a loan,” she said. “Making sure this is clear and agreed upon before support is given will likely protect the relationship in the future.”
Keckler emphasized the importance of clear communication, as money can be a sensitive topic among friends and family.
“Honest and open communication is key to avoiding misunderstandings that could harm your relationship down the line,” she said.
As for how to broach the subject, Jodi RR Smith, president of Mannersmith Etiquette Consulting, based in Marblehead, Massachusetts, said to wait and see if the person experiencing financial difficulties brings it up.
“It could be they are not ready or do not wish to talk about the situation,” she said. “Next, provide space for them to discuss — ‘Pat, it is great to see you. I heard some rumblings and wanted to check in to see how you are doing…'”
However, if you don’t get very far with this approach, know when to stop.
“Do not presume they wish to talk about the situation with you,” she said. “And that is their choice, you need to respect their privacy.”
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/help-someone-struggling-financially-110242222.html
You’re Suddenly Rich — So How Do You Handle Your Money Now?
.Opinion: You’re Suddenly Rich — So How Do You Handle Your Money Now?
Published: Sept. 18, 2021 By Fritz Glasser and Meghan Railey
The job of managing, protecting and passing on your net worth can be daunting. When you suddenly come into a lot more money because of an inheritance or other windfall, the lifestyle changes and associated financial decisions can be overwhelming. The reality of having to manage, protect, and pass on your net worth can be daunting, leading to the natural question: “Where do I begin?”
Here are four tips to help you begin managing, protecting, and increasing your wealth more effectively:
Opinion: You’re Suddenly Rich — So How Do You Handle Your Money Now?
Published: Sept. 18, 2021 By Fritz Glasser and Meghan Railey
The job of managing, protecting and passing on your net worth can be daunting. When you suddenly come into a lot more money because of an inheritance or other windfall, the lifestyle changes and associated financial decisions can be overwhelming. The reality of having to manage, protect, and pass on your net worth can be daunting, leading to the natural question: “Where do I begin?”
Here are four tips to help you begin managing, protecting, and increasing your wealth more effectively:
1. Decide who is your one trusted advisor—then build a support team around that person. Oftentimes, crowdsourcing advice can be counterproductive, resulting in poor decision-making. You should take the time to identify your one trusted advisor and build a team of other professionals around him or her.
Frequently, the newly wealthy have previously been working with one professional, such as an accountant, financial advisor or insurance broker, and continue relying on that same professional as their primary source of advice.
But this is often the wrong approach. Depending on how someone became rich, that person may no longer be the right professional to navigate the complex decisions that are now at hand. For example, some accountants might be competent at filing tax returns and ensuring clients adhere to tax regulations, while others might excel at more proactive tax planning.
Therefore, first-generation stewards of substantial wealth need to determine the specialties of various accountants and other financial professionals, including what type of client they typically serve. If you match their core client profile, then they might be a good fit to help guide you through the complex decision tree associated with newfound wealth.
However, just because a professional claims to have done something before doesn’t mean they have actually done so in reality. Ask them: “How many tax returns have you filed for people in a similar situation to my own?” “How many times have you done this for other clients, and what were the outcomes?” Don’t be afraid to ask these questions as part of the due diligence process.
In addition, you need to ask yourself some questions. Be deliberate about the role you want your advisor to play. Do you want your trusted advisor to take the lead on all decision-making, or only certain matters? Where should you and your advisor’s respective time be focused?
To continue reading, please go to the original article here:
Iraqi News: Traveling with Iraqi Dinars Worth Over $10,000 USD
.Iraqi News Traveling with Iraqi Dinars Worth Over $10,000 USD
Edu Matrix: Sep 19, 2021
Iaqi News Traveling with Iraqi Dinars worth over $10,000 into or departing from the United States; The law, the consequences for IQD Investors
US Custom and Border Protection US LAW ON CARRYING CURRENCY INTO OUR OUT OF THE US Hi guys: Sandy Ingram here: I am traveling this week from Mexico to Miami and then to a Caribbean Island. This is a part of my “slowly traveling the world” agenda while waiting for the Iraqi Dinar to do something.
Iraqi News Traveling with Iraqi Dinars Worth Over $10,000 USD
Edu Matrix: Sep 19, 2021
Iaqi News Traveling with Iraqi Dinars worth over $10,000 into or departing from the United States; The law, the consequences for IQD Investors
US Custom and Border Protection US LAW ON CARRYING CURRENCY INTO OUR OUT OF THE US Hi guys: Sandy Ingram here: I am traveling this week from Mexico to Miami and then to a Caribbean Island. This is a part of my “slowly traveling the world” agenda while waiting for the Iraqi Dinar to do something.
This trip will put me one step closer to Europe, and Turkey where I want to see what’s going on with the revalue for myself. I will upload again on Sunday, September 26th, UNLESS there is breaking news then I will arrange my travel to accommodate a Breaking News story.
I travel with a limited amount of Iraqi Dinars. It would be just my luck for the currency to reinstate while I am traveling and I get pulled out because I have over $10,000 cash on me. Another currency, yes, but still worth $10,000 that is a no-no.
Always remember you can never fly out of or into the United States with $10,000 or more in cash in your procession without declaring it. Let me repeat that. You can travel with any amount of cash that you choose, however, ALL amounts over $10,000 MUST BE DECLARED.
If you put it in the luggage you check-in, the airlines could lose your luggage and your investment would be gone. The risk is too great, and if you put it in your carry-on, the operator of the x-ray machine at the airport will see it. So, I follow the rules.
The worst thing that could happen is for you to successfully get the cash out of the United States only to lose it to unscrupulous airport workers in another country.
Now, here is what the US Customs and Border Protection says: https://help.cbp.gov/s/article/Articl... It is legal to transport any amount of currency or other monetary instruments into or out of the United States. However, if you transport, attempt to transport, or cause to be transported (including by mail or other means) currency or other monetary instruments in a combined amount exceeding $10,000 (or its foreign equivalent) at one time from the United States to any foreign country or into the United States from any foreign country, you must file a FinCEN Form 105 (“Report of International Transportation of Currency or Monetary Instruments”) with U.S. Customs and Border Protection.
So you see I can travel with well over $10,000 worth of Iraq Dinar if it just happened to revalue while I was traveling. BUT what do you think would happen if I filled out the FinCEN Form 105? That’s right. I would immediately become a person of interest to the Department of Treasury.
This is why you see blog posts and articles saying you cannot travel with over $10,000 cash. You can. But TAKE MY PROFESSIONAL TAX ADVICE:. You don’t want to.
That is the equivalent of walking into your bank to deposit $10,000 cash. Before you can start your car and get out of the parking lot, the process to notify the IRS is already in motion.
The reason for disclosure has to do with the Currency and Foreign Transactions Reporting Act. This law was put in place to help detect and prevent money laundering. If you do not declare the cash and airport security finds the money, you could lose the money.
This goes for most countries around the world, regardless if it is law or not. Now here is the most important fact in this whole conversation: You are only required to disclose amounts over $10,000 when traveling to or from the United States.
For domestic flights, you can carry as much cash as you like. People fly to Miami and catch a cruise ship all the time with cash tucked away in their suitcases. However, I wouldn’t try this either, the ex-ray machine operator could still pinpoint your cash when going through TSA airport security.
Strategies for How to Avoid Inheritance Taxes
.Strategies for How to Avoid Inheritance Taxes
Ben Geier, CEPF® Thu, September 16, 2021
How to Avoid Inheritance Taxes
When a loved one dies, there are a lot of things to worry about, from planning the funeral to dealing with your own emotions. As is often the case though, money is a major part of the calculus of life when dealing with a recently deceased family member.
When they pass, your family will have to deal with their money, assets and debts. And if they have a large enough estate, you’ll potentially have to worry about the estate and inheritance taxes. There are things you can do now, though, that will limit the amount of money ultimately subject to these taxes, so that your family can use more of your wealth to build their own lives. For help with the estate tax or any other financial planning issues, consider working with a financial advisor.
Strategies for How to Avoid Inheritance Taxes
Ben Geier, CEPF® Thu, September 16, 2021
How to Avoid Inheritance Taxes
When a loved one dies, there are a lot of things to worry about, from planning the funeral to dealing with your own emotions. As is often the case though, money is a major part of the calculus of life when dealing with a recently deceased family member.
When they pass, your family will have to deal with their money, assets and debts. And if they have a large enough estate, you’ll potentially have to worry about the estate and inheritance taxes. There are things you can do now, though, that will limit the amount of money ultimately subject to these taxes, so that your family can use more of your wealth to build their own lives. For help with the estate tax or any other financial planning issues, consider working with a financial advisor.
Understanding the Differences Between Estate Taxes & Inheritance Taxes
First things first, make sure you know the difference between the estate tax and the inheritance tax. The estate tax, sometimes called the “death tax,” is money taken by the government from the estate of a recently deceased person before it’s passed on to their family, friends and other beneficiaries. There is a federal estate tax, while a number of states also levy their own estate tax.
The inheritance tax, meanwhile, is levied on money after it has passed on to an heir. Money can be subject to both inheritance and estate taxes. There is no federal inheritance tax, but a number of states levy inheritance taxes.
The rules for these inheritance taxes vary from state to state. Sometimes the inheritance tax only applies based on the state the heir lives in, though it can also matter what state the person who died was living in as well. Even what state the property, like a house for example, you inherit is in can affect the situation.
There are plenty of strategies to decrease both types of taxes.
Inheritance Tax Avoidance Strategies
If you think you’ll be getting an inheritance when a loved one dies, the first thing you should do is check the laws in both the state you live in and the state they live in. If neither of them levy an inheritance tax, you’re in the clear. Whenever your loved one dies, there will be nothing for you to worry about. There may be an estate tax to deal with, but you’ll pay nothing on any money you actually receive.
If there is an inheritance tax to consider, though, there are some things you can do to decrease your tax burden. Keep in mind that some of these steps will require advance planning and cooperation with the person leaving you the inheritance. So if you believe you’ll be getting an inheritance, think ahead and talk with your family member about the most efficient way to transfer money.
To continue reading, please go to the original article here:
https://news.yahoo.com/strategies-avoid-inheritance-taxes-202050790.html
How to Overcome Financial Problems
.How to Overcome Financial Problems
By Claire Tak Updated June 4, 2021
Some of the links included in this article are from our advertisers. Read our Advertiser Disclosure.
It keeps you up at night, it’s the constant mental burden that causes you stress and anxiety. Money problems — it can feel impossible to solve and according to a Stress in America survey, two-thirds of respondents say it’s their number one reason they worry.
In a recent Well Kept Wallet survey of 1,000 consumers asking how financially stable they are, 40 percent admitted to not even having a savings account. Plus, 38 percent said they don’t have a monthly budget.
This problem is indicative to some of the challenges facing Americans today, why they fall into such financial binds, can’t seem to save money, and live a debt-free life.
How to Overcome Financial Problems
By Claire Tak Updated June 4, 2021
Some of the links included in this article are from our advertisers. Read our Advertiser Disclosure.
It keeps you up at night, it’s the constant mental burden that causes you stress and anxiety. Money problems — it can feel impossible to solve and according to a Stress in America survey, two-thirds of respondents say it’s their number one reason they worry.
In a recent Well Kept Wallet survey of 1,000 consumers asking how financially stable they are, 40 percent admitted to not even having a savings account. Plus, 38 percent said they don’t have a monthly budget.
This problem is indicative to some of the challenges facing Americans today, why they fall into such financial binds, can’t seem to save money, and live a debt-free life.
Reasons Why People Face Money Problems
It’s easy to assume that those who face challenging financial situations is because they’re irresponsible and perpetually overspend on their credit cards. While this is sometimes the case, many times money problems occur because of sudden debt and very little to no savings to remedy the situation. Medical bills are the no. 1 reason for bankruptcy. It’s not uncommon for a family member to suddenly get sick and not have enough health insurance to cover the costs, or worse, not have any insurance at all.
This was exactly what happened to a friend of mine. She injured her leg during a ski accident and as a result, found herself suddenly facing $55,000 of debt. She didn’t have health insurance at the time and the aftermath of the accident required several surgeries. This was over five years ago and she’s still paying for that debt.
Other times, money difficulties arise from a failed small business or loss of a job.
Abusing Credit Cards
Other times, the problems are completely preventable and caused by a lack of saving, budgeting, and understanding how to properly manage money.
Try Googling “how to get out of debt” and you’ll see tons of stories about people making drastic changes to get out credit card debt that they quickly racked up without even realizing it.
Keeping Up With Your Peers
To continue reading, please go to the original article here:
15 Secret Places to Hide Money Around Your Home
15 Secret Places to Hide Money Around Your Home
By Deacon Hayes Updated September 2, 2021
Sometimes you want to have cash around the house so that it easy to access, however, you don’t want just anyone to be able to find it. Perhaps you have found your own hiding places over the years, but are they as safe as you would like them to be?
Here is a list of some of the best places to hide money around the house. Some of the hiding spots are free while others are products that you can purchase that blend into any houses decor.
15 Secret Places to Hide Money Around Your Home
By Deacon Hayes Updated September 2, 2021
Sometimes you want to have cash around the house so that it easy to access, however, you don’t want just anyone to be able to find it. Perhaps you have found your own hiding places over the years, but are they as safe as you would like them to be?
Here is a list of some of the best places to hide money around the house. Some of the hiding spots are free while others are products that you can purchase that blend into any houses decor.
Free options for hiding money
Since I am all about saving money, I thought I would start with mentioning the free options.
1. Inside a tennis ball
When was the last time you looked for a tennis ball canister to find some money? Never would be my guess.
Slice an opening just big enough to be able to slide bills in and out. Then place the ball back in the canister with the regular tennis balls.
Of course, if you don’t have other sporting equipment it might appear strange if you have just a collection of tennis balls.
2. On the bottom of a dresser drawer
You might think this is too obvious and that the money will be found easily. That might be true if you just placed the money at the bottom of your sock drawer.
Instead, tape an envelope underneath the drawer. People could rummage through your socks all day long and they will never find your envelope.
3. Inside of a Pen
Did you know that can hide money inside of a pen? Yep, you can roll up a $100 bill around the inner part of the pen, then put it back together.
Not only is your cash hidden, but you have a perfectly good working pen as well. Just make sure you don’t let anyone borrow it or you may be out one hundred bucks.
To continue reading, please go to the original article here:
How You Feel About Money
.How You Feel About Money
Posted September 14, 2021 by Michael Batnick
There is one thing that trumps everything else when it comes to how you feel about money. It doesn’t matter how much you make. It doesn’t matter how much you’ve saved. It definitely doesn’t matter where interest rates are. The thing that most influences how you feel about money is how you grew up around money.
I’ve been thinking about this while listening to Ramit Sethi’s podcast. Ramit sits down with a couple in every episode where one or both partners feel anxious about money. The kicker is that in most situations, these people make a nice living. Each story is a little different, but it seems like they all have one thing in common. They faced financial hardships as a child.
How You Feel About Money
Posted September 14, 2021 by Michael Batnick
There is one thing that trumps everything else when it comes to how you feel about money. It doesn’t matter how much you make. It doesn’t matter how much you’ve saved. It definitely doesn’t matter where interest rates are. The thing that most influences how you feel about money is how you grew up around money.
I’ve been thinking about this while listening to Ramit Sethi’s podcast. Ramit sits down with a couple in every episode where one or both partners feel anxious about money. The kicker is that in most situations, these people make a nice living. Each story is a little different, but it seems like they all have one thing in common. They faced financial hardships as a child.
A listener sent us a post on the Bogleheads forum, I’m 70 years old and I can’t spend my savings.
He says, “I can’t spend money without feelings of anxiety. It’s really painful.”
He then goes on to list a bunch of big-ticket purchases he makes. He even seems to feel good about them:
Daughter needed new car – $16,000, done earlier this year.
Furniture – last week my wife said I want to replace all our furniture with some really nice stuff. Will probably cost $15-$20,000 minimum. I said great, let’s do it.
But he doesn’t feel good about any of this. In fact, “none of this makes me happy,” he says. “Every expenditure is accompanied by moderate anxiety.”
I should point out that there is no financial reason for his anxiety. He has a $6 million portfolio and a $1 million house. Later in the post he gets to the root of the problem, saying:
I think I know where this comes from – my father (a big influence on me) was born in 1920. His father died in 1932 (think about it ….). My father was extremely frugal, and he never invested as single penny in the stock market. Growing up in the 1920/1930s he distrusted it 100% for the rest of his life.
You’re not rich if you’re afraid to spend your money. This person needs help, and clearly, it’s not with his finances.
To continue reading, please go to the original article here:
https://theirrelevantinvestor.com/2021/09/14/how-you-feel-about-money/