5 Things You Can Learn From Previous Generations’ Money Mistakes

5 Things You Can Learn From Previous Generations’ Money Mistakes

by Mike Brassfield  Senior Writer  November 22, 2021

Let’s make it clear right off the bat: Your generation is the best generation, OK?  And no matter which generation you happen to belong to, there’s plenty you can learn from the financial mistakes of previous generations, who all behaved in financially unwise ways.

If you’re Gen Z, you can avoid the house-hunting regrets of millennials. If you’re a millennial, you can learn from the credit card disasters of Gen X. If you’re Gen X, there’s still time to avoid repeating the retirement mistakes of the baby boomers. And if you’re a boomer, hey, you already know everything, right?

Kidding, y’all! We’re just kidding! (Full disclosure: The writer of this piece is Gen X, so he doesn’t really matter.)

What can we learn from previous generations’ financial mistakes?

1. Gen Z? Avoid Millennials’ Regrets

If you’re Gen Z, you can avoid the house-hunting regrets of millennials.

A survey of homebuyers in 2017 found that 57% of millennial homeowners surveyed would have done something differently if they got a do-over on the home buying process. More than a quarter — 28% — wished they’d saved more before making the purchase.

It’s easy to automatically sock away some savings with an app like Aspiration. With a digital Aspiration account — a hybrid of checking and savings — you can earn up to 20 times the average interest on your savings balance. (The FDIC reports that the average account earns just .05%.) You also get a debit card that earns you up to 5% cash back on purchases.

You can automatically sock away some savings every payday. It takes five minutes to sign up.

2. Millennial? Avoid Gen X’s Credit Card Hell

So, we’re obviously not going to talk about millennials like, you irresponsible kids and your avocado toast. The fact is, elder millennials are pushing 40 these days. Millennials are middle management now.

So it’s not too late to avoid being sucked into the credit card hell that mauled Generation X so badly. And I say that as a member of Generation X.

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

https://www.thepennyhoarder.com/bank-accounts/generation-money-mistakes/?aff_sub2=homepage

No Such Thing as Enough Money

No Such Thing as Enough Money

By Jacob Schroeder October 27, 2021

How much money is enough?

It’s a philosophical money question that often arises out of discontent. We see someone of substantial means, like a celebrity, live a troubled life. Or, we ourselves experience great fortune yet feel unhappy.  It makes us wonder where the finish line is, the point when you can stop striving for more and settle into a life of satisfaction.

There are some great financial blogs that provide good answers, such as here and here. And then there are a variety of books that tackle this question in their own ways: Ego Is the Enemy, The Last Lecture, the Bible, to name a few.

Another book that resonates with me, perhaps because of its instructive format, is How Will You Measure Your Life? by the late Clayton Christensen.

He comes to the startling realization:

“I had thought the destination was what was important, but it turned out it was the journey.”

That to me is the answer to the question. Though it is, in a way, a non-answer. As with many of life’s mysteries, there is no definitive conclusion.

There is never enough money.   Don’t get me wrong. I don’t mean that you can always use more money to achieve a perfect life. Rather, I mean the exact opposite.  No amount of money will insulate you from suffering.

This week Elon Musk’s wealth jumped by $36 billion in a single day, bringing his net worth close to $300 billion. Yet, even he has experienced some very public setbacks, including the tragedy of losing his first child.

“The race is not to the swift or the battle to the strong, nor does food come to the wise or wealth to the brilliant or favor to the learned; but time and chance happen to them all.” (Eccles. 9:11)

There is no such thing as enough money, as there is no destination of absolute happiness. It’s all about simply having the capacity to notice the truly joyful things along the journey.

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

https://incognitomoneyscribe.com/2021/10/27/no-such-thing-as-enough-money/  

Am I Responsible for Paying Off My Deceased Husband’s Debt?

Am I Responsible for Paying Off My Deceased Husband’s Debt?

Stacy Francis, CFP®, CDFA®, CES™, President & CEO   Sun, November 28, 2021

Losing your spouse is a painful, confusing time, but add to that repeated calls from an aggressive debt collector, and a bad situation suddenly can get even worse. Before you cave into the pressure, take a moment to catch your breath and learn the facts about your rights and responsibilities. You may be off the hook as some debts — including even certain types of credit card charges — are forgiven at death. However, others linger much longer.

First off, you should know that you are generally not personally responsible for paying off your husband's debts, as any loans would normally be paid off by his estate. This includes credit card debt, student loans, car loans, mortgages and business loans.

According to Marc Zimmerman, trust and estate planning attorney with the Law Offices of Michael A. Zimmerman, "When your husband dies owing a debt, the debt does not go away. Generally, the estate is liable for paying any outstanding debts, and, the named personal representative, executor or administrator will pay debts owed from the money in the estate, not from their own money or that of the surviving spouse.

However, if the surviving spouse inherits certain assets from the deceased spouse through beneficiary designations or joint account ownership, and the estate assets are insufficient to satisfy the creditor claims, the creditors could attempt to make claims against those assets that pass directly to the surviving spouse outside of the probate estate.”

That being said, you may be responsible for certain types of debts. For example, if the debt is jointly owned or you have co-signed a loan, you are obligated to continue to pay this debt. This occurs most often with credit cards, car loans or mortgages. Some states also require you to pay off any medical bills that your spouse incurred before their death.

The State You Live in Can Make a Big Difference

It is essential to understand the laws of your state so that you know where you stand concerning all debts, as some community property states hold you responsible for the debt even if it is not in your name. Community property laws make both spouses equally liable for debts incurred after the marriage has taken place.

There are currently nine community-property states:

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

https://finance.yahoo.com/news/am-responsible-paying-off-deceased-093006243.html

​How the Value of Money Is Determined

​How the Value of Money Is Determined

​Who Decides How Much Money Is Worth

Does the Government Regulate Exchange Rates?

By Kimberly Amadeo  Updated May 23, 2019

 The value of money is determined by the demand for it, just like the value of goods and services. There are three ways to measure the value of the dollar. The first is how much the dollar will buy in foreign currencies. That’s what the exchange rate measures.

 Forex traders on the foreign exchange market determine exchange rates. They take into account supply and demand, and then factor in their expectations for the future. For this reason, the value of money fluctuates throughout the trading day. The second method is the value of Treasury notes. They can be converted easily into dollars through the secondary market for Treasurys.

 When the demand for Treasurys is high, the value of the U.S. dollar rises.

 The third way is through foreign exchange reserves. That is the amount of dollars held by foreign governments. The more they hold, the lower the supply. That makes U.S. money more valuable. If foreign governments were to sell all their dollar and Treasury holdings, the dollar would collapse. U.S. money would be worth a lot less.

 No matter how it's measured, the dollar's value declined from 2000 to 2011. That was due to a relatively low fed funds rate, a high federal debt, and a slow-growth economy.

 Since 2011, the U.S. dollar has risen in value despite these factors. Why? Most of the economies in the world had even slower growth. That made traders want to invest in the dollar as a safe haven. As a result, the dollar strengthened against the euro. It made travel to Europe very affordable.

 How It Affects You

 The value of money affects you every day at the gas pump and the grocery store. That's because demand for gas and food is inelastic. Producers know you have to buy gas and food every week. It’s not always possible to delay purchases when the price rises.

​Producers will pass on any of their extra costs. You will buy it at the higher price for a while until you can change your habits.

 When the price of gas or food goes up, you are experiencing the reduced value of money.

 When the Value of Money Steadily Declines

 Inflation is when the value of money steadily declines over time. Once people expect that prices will rise, they are more likely to buy now, before prices go higher.

​That increases demand, which tells producers they can safely pass on more costs. They drive prices up more, and inflation becomes a self-fulfilling prophecy.

 That's why the Federal Reserve watches inflation like a hawk. It will reduce the money supply or raise interest rates to curb inflation. A healthy economy can sustain a core inflation rate of 2%. Core inflation is the price of everything except food and gas prices, which are very volatile. The Consumer Price Index is the most common measure of inflation.

When It Increases

 Deflation is when the value of money increases. That sounds like a great thing, but it is worse for the economy than inflation. Why? Think about what happened to the housing market from 2007 to 2011.

 That was massive deflation. Prices dropped more than 20%. Many people could not sell their houses for what they owed on their mortgage. Buyers were afraid that the price would drop right after they purchased it. No one knew when prices would turn back up.

 True, the value of money increased. You received more house for the dollar in 2011 than in 2006. But families lost homes. Construction workers lost jobs. Builders went bankrupt. That's what makes deflation so dangerous. It's a fear-driven downward spiral.

 How the Value of Money Has Changed Over Time

 In 1913, money was worth a lot more. A dollar then could buy what $25.64 purchased in December 2018. The dollar lost value slowly. By 1920, it could buy what $13.02 did in 2018. During the Great Depression, money gained in value as a result of deflation.

 A dollar in 1930 could buy what $14.69 did in 2018. By 1950, money had lost some value. A dollar could buy what $10.69 did in 2018. Money has been losing value ever since. In 1970, it could only buy what $6.65 in 2018 terms. By 1990, it was only worth $1.97, also in 2018 terms.

 https://www.thebalance.com/value-of-money-3306108

25 Secrets Elon Musk and Every Other Rich Person Knows

25 Secrets Elon Musk and Every Other Rich Person Knows

Gabrielle Olya   Thu, November 25, 2021

If it seems like the rich know something about money that the rest of us don't, it's probably because they do. There must be some reason the richest 1% of people now hold more than 40% of the world's wealth, according to the Credit Suisse Global Wealth Report. Maybe the rich have certain secrets to accumulating wealth -- but that doesn't mean what they know has to remain a mystery. Learn about strategies that you can use so you can build your own wealth, too.

Spending Must Align With Goals

One of the keys to being rich is having goals, said Michael Kay, president of Financial Life Focus and author of "The Feel Rich Project."

"(The rich) know what they care about," he said. "Maybe it's passing wealth to another generation, maybe it's attaining a particular lifestyle. They are mindful of not wasting resources on things that have no value."

According to Kay, the wealthy tend to spend money only on things they care about. The rest of us can learn from this by setting our own goals and then monitoring our spending to see if it aligns with those goals.

Don't Waste Money To Impress Others

Most rich people don't spend their time and money trying to impress others, Kay said. "They are not in a race. They know they have made it, so their attention is not on what others think." In fact, many wealthy individuals wouldn't have become rich if they had spent their hard-earned money buying things to keep up with others, he added.

Authors Thomas Stanley and William Danko said much the same thing in their 1996 best-seller, "The Millionaire Next Door: The Surprising Secrets of America's Wealthy," writing that a couple of key secrets of the country's richest people are living below their means and rejecting big-spending lifestyles.

Spending money to appear rich before you actually are rich is a surefire way to sabotage your wealth-building goals. So, forget about the Joneses and focus on what matters: accumulating wealth in the coming years.

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

https://www.yahoo.com/finance/news/25-secrets-elon-musk-every-130009427.html

Currency Photocopy Rules

Currency Photocopy Rules - straight from the U.S. Secret Service

KNOW YOUR MONEY
Illustrations of Currency, Checks or Other Obligations
The law sharply restricts photographs or other printed reproductions of paper currency, checks, bonds, revenue stamps and securities of the United States and foreign governments.
For additional illustrations of U.S. currency, visit the Bureau of Engraving and Printing.

U.S. Currency
The Counterfeit Detection Act of 1992, Public Law 102-550, in Section 411 of Title 31 of the Code of Federal Regulations, permits COLOR illustrations of U.S. currency provided:

• The illustration is of a size less than three-fourths or more than one and one-half, in linear dimension, of each part of the item illustrated

• The illustration is one-sided

• All negatives, plates, positives, digitized storage medium, graphic files, magnetic medium, optical storage devices, and any other thing used in the making of the illustration that contain an image of the illustration or any part thereof are destroyed and/or deleted or erased after their final use. ​

Other Obligations and Securities

Photographic or other likenesses of other United States obligations and securities and FOREIGN CURRENCIES are PERMISSIBLE for any non-fraudulent purpose, provided the items are reproduced in BLACK & WHITE and are less than three-quarters or greater than one-and-one-half times the size, in linear dimension, of any part of the original item being reproduced.

Negatives and plates used in making the likenesses must be destroyed after their use for the purpose for which they were made. This policy permits the use of currency reproductions in commercial advertisements, provided they conform to the size and color restrictions.

Motion picture films, microfilms, videotapes, and slides of paper currency, securities, and other obligations may be made in color or black and white for projection or telecasting. No prints may be made from these unless they conform to the size and color restrictions.

Coins

Photographs, printed illustrations, motion picture film or slides of United States and foreign coins may be used for any purpose.

With few exceptions, existing law generally prohibits the manufacture, sale or use of any token, disk or device in the likeness or similitude of any coins of the United States, or of any foreign country, which are issued as money.

U.S. Postage Stamps, Foreign Postage Stamps and Revenue Stamps

Printed illustrations of United States and foreign stamps are permissible for any non-fraudulent purpose. Black and white illustrations of uncanceled United States and foreign postage stamps are permissible in any size.

Color illustrations of uncanceled United States and foreign postage stamps must be less than three-fourths or more than one and one-half times the size of the genuine stamp.

Cancelled United States and foreign postage stamps may be of any size whether the illustrations are in color or black and white.

Note: Canceled U.S. and foreign postage stamps must bear an official cancellation mark, i.e., the stamps must have been used for postage. Also, the plates and negatives, including glossy prints, of any United States or foreign obligations must be destroyed after their final use for the purpose for which they were made.

Printed illustrations of United States and foreign revenue stamps are permissible in black and white only. There are no size restrictions for revenue stamps.

http://www.secretservice.gov/money_illustrations.shtml

Currency Reporting Info

U.S.Customs and Border Protection Currency Reporting

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 an aggregate 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 report with U.S. Customs and Border Protection.

This report is called the Report of International Transportation of Currency or Monetary Instruments, FinCEN Form 105.

Furthermore, if you receive in the United States, currency or other monetary instruments in an aggregate amount exceeding $10,000 (or its foreign equivalent) at one time, which has been transported, mailed, or shipped to you from any foreign place, you must also file a FinCEN Form 105. ​

This form can be obtained at all U.S. ports of entry and departure or on the Web at
www.fincen.gov/fin105_cmir.pdf.

Monetary instruments include:

1) U.S. or foreign coins and currency;

2) Traveler checks in any form;

3) Negotiable instruments (including checks, promissory notes, and money orders) that are either in bearer form, endorsed without restriction, made out to a fictitious payee, or otherwise in a form that the funds can be transferred to another person;

4) Incomplete instruments (including checks, promissory notes, and money orders) signed, but with the payee’s name omitted; and

5) Securities or stock in bearer form or otherwise in a form that the funds can be transferred to another person.

However, the term “monetary instruments” does not include:

1) Checks or money orders made payable to the order of a named person which have not been endorsed or which bear restrictive endorsements;

2) Warehouse receipts; or

3) Bills of lading.

Reporting is required under the Currency and Foreign Transaction Reporting Act (PL 97-258, 31 U.S.C. 5311, et seq.), as amended. Failure to comply can result in civil and criminal penalties and may lead to forfeiture of your monetary instrument(s).

U.S. Customs and Border Protection ports can be located at - LINK

www.cbp.gov/xp/cgov/toolbox/ports/

U.S. Customs and Border Protection
Washington, D.C. 20229

CBP: Securing America’s Borders

Please visit the U.S. Customs and Border Protection Website at - LINK
www.cbp.gov

CBP Publication No. 0000-0503 Revised June 2006

Currency Reporting -- LINK

https://search.usa.gov/search?query=currency+reporting&op=Search&affiliate=cbpgov

Private Jet vs. First Class Flight: An Overveiw and Comparison

Private Jet vs. First-Class Flight: An Overview and Comparison

Posted in Travel by Marco Tadesse

Whether it’s a business trip or a vacation, a chartered jet allows you to maximize your time at your destination and minimize the number of hours you spend traveling.

On the other side, first class travel is also a lavish way, even though it involves dealing with airport safety and other commercial flight inconveniences. So what helps determine whether flying first class or chartering private jets is better for you? If you can afford only one, there is no reason to consider both alternatives so let the economic factor out of the way. A private jet is a little more priced than a first-class seat which can run from $800 to thousands of dollars.

On-demand charter service price depends on the plane size, Light Jets start at $2,800 per hour. Mid-Size Jets start at $3,800 per hour. Super Mid-Size Jets start at $4,500 per hour. Large Cabin Jets start at $6,500 per hour.

On a commercial aircraft, you are essentially renting a seat. You rent two seats and pay double the price if you want to take someone with you. If you plan on to take a group of eight with on the two-hour journey from Atlanta to Vegas, you’re paying close to $8,000. Where you fly first-class on an eight-person business jet. On the other side, you fly first-class on a eight-person private jet for that same price.

KEY TAKEAWAYS 

If you’re flying abroad, first class might be a bit cheaper than a private jet.

Private aircraft may be more economical for business executives whose time is as precious as capital.

Private aircraft offer more personal accommodations than first-class flights to travelers.

If you travel solo, first-class tickets will probably be less expensive than chartering a seat on a Private jet. A private jet may be less expensive for larger groups than purchasing several first-class tickets

Private Jet 

For customers in the top tier of flight travel, private jets are available to meet all their personalized needs.  A surprising amount of businesses, professionals and individuals use private aviation for travel. While first-class air travel still has many advantages, private jet flights have several distinct advantages and amenities over commercial airlines.

Modern private jets are consistently becoming roomier and more sophisticated than the best first class cabins on the market. On a private jet, the comfort is increased dramatically thanks to spacious cabin areas, bespoke catering and top of the line amenities.

But of course, convenience and luxury are improved at a cost. That being said, some private jet charters companies are finding more inexpensive methods to make private travel more affordable.

First Class 

While flying first class on a commercial aircraft offers several amenities, its not at same level—or personalization—of flying privately.

Check-in, screening and customs facilities are typically much faster if your flying on a first class , but after all, you are still on a commercial flight and have to arrive several hours prior to your flight. First class passengers also must finagle with busy airport terminals, safety queues and lengthy walks across terminals. Although you are invited first to board, but you still required to wait for other passengers to board before you depart.

Commercial aircraft are mostly limited to large airports because of their size. Travelers also must account for driving time, if the location they are going to is outside the metropolitan area.

Private Jet clients can also take pets— golf clubs, skis and other large items which do not fit readily on commercial planes. The risk of losing these items on in the baggage claim process is also avoided.

Private Jet vs. First Class Comparison

Price: Private Jet vs. First Class Cost

The first big difference between first class and private jet is, when you fly on a private jet, you charter an entire jet. When you fly first class, you only charter a seat. Chartering an aircraft is understandably costlier than just a single seat. However, the price per seat is less on a private jet for many routes. Therefore, the price difference operates in your favor when you fill all seats on the flight. This particularly applies to flights less than 2 hours, where small to mid-sized aircraft can be chartered. If your flying internationally, you’ll need a larger aircraft with a bigger range, which equates to a more expensive charter.

Businesses use private jets on a regular basis as the cost is beneficial. When teams of individuals or clients have to travel, they get a better deal because the costs of a private charter are divided by the number of people that fly.

Comfort: First Class vs. Private Jet Charter

Comfort really depends on the aircraft and airline. With more room, less individuals and lots of facilities, one of the main attraction to private jet charter is undoubtedly its comfort. While the first class has a variety of advantages, such as additional legroom and food, a private jet flight takes it up a level with personalization.

Despite private jet preconceptions, flying first class tends to be as luxurious as an executive jet.

However, because of the luxury nature of their industry, private jets have additional benefit. Whether it’s catering or entertainment on board, you can request various sort of amenities. As you are the only passenger, you will always receive VIP service. Above all, you can select an airplane best suited for your requirements.

First Class vs. Private Jet Charter – Who has the better experience?

Private jets generally depart from private terminals and airport FBOs. You can breeze through security, be on your flight in short amount of time. At most airport FBOs you can drive onto the runway and board the jet. It is an exclusive experience, as it is a private terminal. No queue and no waste of time, no need to go through crowds or no far-flung terminal gates. And if perhaps your delayed, a private jet will wait for you.

First class passengers have a similar airport experience to economy class passengers. Of course there is a swanky lounge to wait in and prioritized check in, but everything else is very similar, including the need to arrive two hours before departure. When flying on a private jet you don’t need a lounge to wait in, because there isn’t any waiting time.

It’s easy to imagine that the airport experience is improved at a private terminal versus a commercial terminal. But the key difference is the time saved. Airport FBOs have expedited systems that can save you upwards of one hour for every flight. And that’s just for take off. Land at a private airport and you save additional time.

Comparing First Class Flight vs. Private Jet in Business Experience

Intensive business schedules often mean visiting multiple destinations in one day or week. To optimally do this you need a dedicated aircraft. With private charters, scheduling is extremely flexible, enabling you to make adjustments that accommodate any overrunning or cancellations. If you have to regularly reschedule then a private charter is best suited for you, as commercial flight schedule is fixed.

While some airlines implemented business cabins, this characteristic has always been an integral features of private jets. So when traveling as a team or traveling with clients, private jets give you a chance to re-group or de-brief. Since its private, you can proceed your discussions without interruption. Ultimately you can get business done and optimize every moment in the day.

Why Choose to charter a Private Jet Over First Class when it come to Flight Duration?

This is the biggie, especially for business travelers. Commercial flight schedules are restricted by a hub and spoke model. So while there are many options for flying New York to Los Angeles, or between other major US cities, reaching smaller destinations often requires a layover. With a charter flight you can fly anywhere, anytime. This becomes increasingly important when you need to reach multiple destinations in a single day or week.

Total Time

With private jet travel, the time you save is not saved in the air. In a Boeing 747 or medium-sized private jet, the flight time between Los Angeles and New York is relatively the same. It’s the time saved on the ground that makes all the difference with that kind of routing. You can show up ten minutes’ prior to your flight vs two hours. Disembark in 10 minutes versus 30 from the airport. Contribute on the time saved thanks to flexibility and easy rerouting of a private jet; then note the difference in flight duration when commercial schedules are unable to meet your needs.

Private jets can transform how you travel by saving flexibility and time. It can originally seem costly to travel on a private jet, however, take into the importance of time, the cost wont seems outlandish.

https://coastprivate.com/private-jet-vs-first-class-flight-an-overview-and-comparison/

Experts From A World That No Longer Exists

Experts From A World That No Longer Exists

Nov 10, 2021 by Morgan Housel

The biggest risk to an evolving system is that you become bogged down by experts from a world that no longer exists. The more evolution you have, the more you should expect that expertise has a shelf life.  That’s always been the case and will always be. It’s just hard to accept because people need experts to trust and experts want to hold onto beliefs that were hard-fought to learn.  Some expertise is timeless. A few behaviors always repeat. They’re often the most important things to pay attention to.

But most things evolve, and evolve faster than people’s beliefs. It’s a tricky thing that leads to a long history of older generations whose success came from understanding the new rules of their era not recognizing that the rules may have changed again.

Investor Dean Williams once said, “Expertise is great, but it has a bad side effect. It tends to create an inability to accept new ideas.” 

If you appreciate how much the world evolves you can appreciate how important that advice can be.

Henry Ford was a tinkerer. He revolutionized the factory floor by letting his workers experiment, trying anything they could think of to make production more efficient.

There was just one rule, a quirk that seemed crazy but was vital to the company’s success: No one could keep a record of the factory experiments that were tried and failed.

Ford wrote in his book My Life and Work:

I am not particularly anxious for the men to remember what someone else has tried to do in the past, for then we might quickly accumulate far too many things that could not be done.

That is one of the troubles with extensive records. If you keep on recording all of your failures you will shortly have a list showing that there is nothing left for you to try – whereas it by no means follows because one man has failed in a certain method that another man will not succeed.

That was Ford’s experience. “We get some of our best results from letting fools rush in where angels fear to tread.” He wrote:

Hardly a week passes without some improvement being made somewhere in machine or process, and sometimes this is made in defiance of what is called “the best shop practice.”

They told us we could not cast gray iron by our endless chain method and I believe there is a record of failures. But we are doing it. The man who carried through our work either did not know or paid no attention to the previous figures … a record of failures – particularly if it is a dignified and well-authenticated record – deters a young man from trying … I cannot discover that any one knows enough about anything on this earth definitely to say what is and what is not possible.

The important thing is that when something that previously didn’t work suddenly does, it doesn’t necessarily mean the people who tried it first were wrong. It usually means other parts of the system have evolved in a way that allows what was once impossible to now become practical.

To continue reading, please go to the original article here:
https://www.collaborativefund.com/blog/experts/

3 Things I Learned In The Last Speculative Bubble

3 Things I Learned In The Last Speculative Bubble that explain why I'm not going hog wild in this one…

Henry Blodget  Mon, November 22, 2021

Goldman said fears of a bubble are overblown

I was Wall Street's top-ranked internet analyst during the dot-com era.

Detailed below are the three main lessons I've learned about bubbles during my career — and how I'm handling the latest ones in stocks and crypto.

Many market gurus believe we're in the middle of one of the biggest speculative bubbles in history. I think they're right. But I'm not betting the farm on it.

I was an internet-stock analyst during the dot-com bubble two decades ago, so I have some firsthand experience with financial bubbles. I've summarized the experience here, along with my subsequent run-in with the SEC.

In a future article, I'll explain why I'm in the bubble camp. But here, I'll just share three things I learned last time that explain why I'm not going all-in in either direction this time around.

1. No one knows what will happen, including your favorite market gurus.

Back in the 1990s, I got to know some of the most sophisticated professional investors in the world. As I talked with them, and learned from them, I realized that one of my long-held assumptions about Wall Street was wrong.

I had assumed that, somewhere, there were some investors who were so smart and well-informed that they knew what was going to happen.

Instead, I learned that no one knows what is going to happen.

Some investors' guesses are more sophisticated and better informed and reasoned than others, but they're still guesses. No one actually knows.

Why does this matter?

It matters because it's important to remind yourself that your favorite market gurus don't know what will happen. Not George Soros. Not Warren Buffett. Not Ray Dalio. Not your crypto-zealot buddy or your trusted financial advisor. So don't put too much stock in what anyone says or thinks will happen. They don't know.

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

https://finance.yahoo.com/news/3-things-learned-last-speculative-172200078.html

13 Really Common Money "Facts" That Actually Aren't Facts At All

13 Really Common Money "Facts" That Actually Aren't Facts At All

Mon, November 22, 2021,

A lot of us don't get a great financial education from our families or in school, which can make figuring out all our money stuff pretty tricky. And as if it's not already hard enough, there's also a lot of misinformation out there.  To help you sort out the actual facts from the fiction, I rounded up 13 common money myths, plus what you actually need to know:

1."You Don't Need To Worry About Investing For Retirement Until Your 40s."

Nope, nope, nope. In fact, the earlier you can start putting money away for retirement, the better, thanks to the magic of compound interest. This is when you earn interest on your investments and then earn more interest on top of that interest. And the sooner you start investing for retirement, the more time your money has to grow.

So if your workplace offers a tax-advantaged retirement plan like a 401(k), it's a good idea to take advantage. If your employer doesn't offer this benefit, you can always open an IRA (individual retirement account) on your own to get your nest egg started. Even if you're only able to contribute a little bit at first, it can really add up over time.

2."Saving Small Amounts Of Money Isn't Really Worth It."

I get it. It can be really discouraging to compare experts' recommended savings amounts with your own low (or nonexistent) balance. But having even $100 saved can help a little bit in an emergency. Every dollar that you're able to put away is another dollar that you won't have to pay back with interest when an unexpected car repair or vet bill comes along.

One way to help yourself save is by putting your savings in an account that helps you grow your fund. Many experts recommend high-yield savings accounts because they'll pay you more in interest than the typical savings account. But my personal favorite place to keep my emergency fund is Yotta. It's a prize-linked savings account where you can win money every week from their lottery-style drawing.

So far this year, I've won about $100 from my Yotta account (and that's a whole lot more than the 10 cents or so that I'd get from a regular savings account). Plus, they make it really easy to start and stop recurring deposits so you can automate your saving habit and make adjustments when life happens.

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

https://www.yahoo.com/lifestyle/13-called-money-facts-totally-041602944.html

Considerations About Passing an Inheritance to Children

Considerations About Passing an Inheritance to Children

By Stephanie Powers Updated June 24, 2021

Reviewed By Ebony Howard   Fact Checked By Katrina Munichiello

Deciding whether to leave an inheritance for your children impacts the amount you save, the retirement plans you choose, and how you take qualified retirement plan distributions. However, beyond your desire to leave some wealth to your children (or not), there are some essential personal financial issues to consider.

KEY TAKEAWAYS

Whether to leave an inheritance for your children impacts your retirement plans, how much you save, and your retirement plan distributions.

Before deciding to leave an inheritance, personal financial issues should be considered, including your income needs and potential healthcare costs.

Retirees can risk running out of money in retirement and should consider any tax implications of establishing an inheritance.

Establishing a trust or gifting assets to loved ones can be effective ways to transfer assets, but there are rules and limitations.

Consider Your Income Needs

Some retirees give away their retirement savings without considering their own income needs. Before you make gifts to others, it's important to assess how much you need to spend on yourself. Retirement calculators such as those available from AARP can help you determine how much you need to save and how much you can withdraw each year once you retire.

Be sure to take into account the impact of inflation and taxes and maintain a diversified portfolio of growth and income investments that can help your portfolio keep pace with inflation.

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

https://www.investopedia.com/articles/pf/08/inheritance-for-children.asp