Mainstream Suddenly Realizes Raising Interest Rates In A World Buried In Debt Might Be A Problem

Mainstream Suddenly Realizes Raising Interest Rates In A World Buried In Debt Might Be A Problem

By Tyler Durden  Wednesday, Jan 26, 2022 - Authored by Michael Maharrey via SchiffGold.com,

The Federal Reserve is talking about raising interest rates. But the US economy is buried under piles of debt. I’ve been asking how this is going to work for months. Apparently, the question has finally occurred to the mainstream.

A CNBC article declared, “Fed rate hikes will intensify a global debt crisis, research warns.”

Well, yeah. Duh.

According to the study came from a UK non-profit the Jubilee Debt Campaign, debt payments rose in developing countries by 120% between 2010 and 2021. They are currently at their highest levels since 2001.

The sharp increase in debt payments is hindering countries’ economic recovery from the pandemic, the report suggested, and rising US and global interest rates in 2022 could exacerbate the problem for many lower income countries.”

The study and the CNBC article are really a pitch for debt cancellation, but their narrative swerves into an unpleasant truth for US policymakers. Raising interest rates in a world awash in red ink is going to be a problem. And not just for “developing countries.”

The US government is closing in fast on $30 trillion in debt with no end to the borrowing and spending in sight. The federal government managed to run a deficit in December despite record receipts.

In December alone, the federal government spent $508 billion. The was the highest December spending level ever. Through the first three months of fiscal 2022, the federal government has already spent $1.43 trillion. That’s a record for the first quarter of any fiscal year.

Raising interest rates will drastically increase the cost of servicing all of that debt. And it will increase the cost of borrowing more money for the Biden spending coming down the pike.

In the fiscal year 2020, Uncle Sam spent $345 billion in net interest payments alone, despite near-zero interest rates. The nonpartisan Committee for a Responsible Federal Budget found that even a 2% increase in interest rates would cause net interest payments to rise to a whopping $750 billion. And this estimate was calculated before the passage of the American Rescue Plan and the Bipartisan Infrastructure Bill. That was followed up with a big surge in interest rates on US Treasuries. In other words, $750 billion underestimates the cost.

On top of that, American consumers are buried under debt. Consumer debt jumped 11% year-on-year in November. It was the biggest single-month jump in consumer debt in 20 years. Total consumer debt now stands at over $4.41 trillion. And that doesn’t include mortgages.

Revolving debt – primarily credit card balances – grew by a staggering 23.4% year-on-year in November. That was the biggest increase since 1998.

And that’s not all. Businesses and corporations are also leveraged to the hilt.

The year 2020 set a record for corporate debt issuance with $2.28 trillion of bonds and loans, comprising both new bonds and bonds issued to refinance existing debt.

All of this debt is a feature of the Fed’s loose monetary policy - not a bug.

The Federal Reserve and the US government have built a post-pandemic “economic recovery” on stimulus and debt. It is predicated on consumers spending stimulus money borrowed and handed out by the federal government or running up their own credit cards.

Now, the Fed is threatening to turn off that easy money spigot. How is that going to work? How will consumers buried under more than $1 trillion in credit card debt pay those balances down with interest rates rising?  With rising rates, minimum payments will rise. It will cost more just to pay the interest on the outstanding balances.

Overleveraged companies have the same problem.

And so does the US government.

This does not bode well for an economy that depends on borrowing and spending to sustain itself.

The only reason Americans can borrow money is because the Fed is enabling them. It holds interest rates artificially low. That’s how the economy works. And that’s why I think the Fed will ultimately relent on any move it makes toward tighter monetary policy. As Peter Schiff put it, the Fed can’t do what it’s claiming it will do.

https://www.zerohedge.com/markets/mainstream-suddenly-realizes-raising-interest-rates-world-buried-debt-might-be-problem

7 Mistakes To Avoid If You’re Trying To Build Long-Term Wealth

7 Mistakes To Avoid If You’re Trying To Build Long-Term Wealth

Casey Bond   Tue, January 25, 2022,

If you want to stop living paycheck-to-paycheck, retire comfortably or have a legacy to pass on to your children, there’s no get-rich-quick scheme that can guarantee you reach your goal. Instead, building long-term wealth takes a lot of patience and planning, and it’s important to know these common mistakes to avoid.

1. Not Having an Emergency Fund

When focusing on building long-term wealth, it’s easy to neglect cash reserves, said Nick Vail, a CFP with Integrity Wealth Advisors. However, failing to build an emergency fund can hurt you in the long run.

“It’s like going out and investing in expensive windows and kitchen upgrades while you have cracks in your home’s foundation,” Vail said. “Without proper cash reserves, you’re likely to tap into the wealth you’re trying to build when you’re in a pinch, slowing down your progress.” So before you get too far along in your investing plan, be sure to get your basics taken care of first.

2. Ignoring the Power of Compound Interest

Saving money is great, but to really grow your wealth over time, it’s necessary to invest. In fact, money invested wisely will generally double every seven to 10 years thanks to compound returns, according to Scott Alan Turner, a CFP and consumer advocate.

“The problem is at the beginning, it’s pitifully slow,” he said. That’s because it takes just as long for $50 to double to $100 as it does $500,000 to $1,000,000. But Turner noted, you can’t get to $1,000,000 without first saving $50. “Patience grows wealth.”

3. Waiting Until You Make More Money To Start

It can be hard to set aside money for far-off goals such as retirement. Plus, many people inflate their lifestyle as their income grows. So it can be tempting to keep putting off investing until you have an even higher salary. “Bigger apartments, nicer cars, eating out at better restaurants — people never seem to make enough because they consistently blow it year after year,” Turner said.

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

https://news.yahoo.com/7-mistakes-avoid-trying-build-193823478.html

Cheat Sheat from Fleming-Appointments, Terms, Rate Definitions and more......Good for Newbies

Occasionally Dinar Recaps will be posting Exchange Tips and information from our archives for our newest readers that may be helpful for you at our exchange appointments and Post RV. Not all questions or information may apply to you and your personal situation…..Take what you like and leave the rest:  Some you may want to save for your own personal records! We hope all our dreams come true very soon ~ Your Dinar Recaps Team

This was originally posted on May 21, 2021….Procedures may have changed since then……consider everything a rumor until we are at the banks….

Cheat Sheet for Appointment with Supplemental Information, Fleming (Rev. 5.21.2021)

The information in this document is based on the most recent information available. It is not intended to be the authority on the GCR/RV or appointment process.

It is expected that there may be changes once final instructions are received.

This information is based on exchanges/ redemptions done in the USA. Each country will have its own process and information should be available for all once notifications have been issued.

The redemption/exchange process is streamlined and will be easy and straightforward. The appointment will only be about 15-20 minutes. You will be in and out quickly.

The current understanding (and subject to change) is there will be a “Safe Web Link” or 800# sent to those who purchased currency/bonds online with a registered dealer. This would include: Banks, Travelex, Great American Coin or with the aggregating sites (example: Dinar Recaps, Dinar Chronicles et al). Currently there are approximately 2 million email addresses.

Emails should be coming from Wells Fargo, HSBC, Chase, Bank of America and possibly Fifth Third.

If you do not receive an email, the information will be posted on aggregating sites and/or with those who provide RV Intel.

If you receive an email directly, you may forward it to anyone you gifted currency and/or bonds.

If you received as a gift, you may get the email forwarded to you.

Follow the instructions provided in the email.

You may be asked to verify who you are by answering questions based on publicly available information. This process is similar to when you apply online to open a bank account or a loan.

You may be required to electronically sign an NDA (Non-Disclosure Agreement). Read carefully so you understand what you are agreeing to. The NDA is to protect you. Print a copy for your records and for future reference. At the appointment, you will be signing a paper copy of the NDA.

You may be given an 800# or a unique 800# to schedule an appointment. The number may be to a specific location or you will be giving your Zip Code, to be directed to the closest location.

When you call you may be asked if you have Zim, Currency or both. This is because not all locations will be able to redeem Zim. NEVER say how much you have, and they cannot legally ask.

Remember that bonds (Zim) is redeemed, and Currency is exchanged.

You are free to redeem anywhere inside the United States. You are not required to exchange in your home state. It is recommended that if you live in a small town, that you go far enough from home, so you are not recognized. This is for your safety. There are no restrictions if you want to go to another state. You cannot go to another country to exchange. If you are a US citizen living abroad, check with place of exchange on what options you have available to you.

What to bring to appointment:

2 picture IDs – driver’s license, passport, government ID or anything with your picture

2 recent utility bill statements – this verifies your address

If homeless or no permanent address explain this at appointment.

Social Security card and/or Birth certificate. These may not be necessary, but bring especially if you have no picture ID.

If you have a bank account with a Tier 1 bank (HSBC, Chase, WF, Bank of America) bring your account number and routing number (a blank check will have that info.).

If you have a trust, bring the cover and indemnification pages (notarized pages). You may bring the entire trust, but they should only need copies of those pages.

Currencies/Bonds – Separate by country and denomination, large to small, facing in same direction. Place each currency into a small plastic bag.

If you have a lot of currency, recommend you create a tally sheet of how much of each currency/bond you have.

On day of appointment dress professionally. Do not dress to a point that you are uncomfortable.

Allow yourself plenty of time. Know where you are going and where to park if in a large city/urban area. Do not use Uber or Lyft type services. You might consider hiring a professional security company for transportation if safety is a concern.

Do not share with anyone purpose of your appointment or what you are doing.

Make a list of anything that you need in the first 10 days. Do you have any emergency needs like housing or medical, etc.

If you are redeeming Zim, make a 3-6-month budget. Budget does not include existing debt. Zim proceeds will be placed into a structured payout. Structured payouts take approximately 3 months to set up. By having a budget, you can have funds available for living expenses during that 90-day window.

It is expected that close of appointment that you will receive a debit card with 1-2% of Zim proceeds. Unless you have a large amount of currency you should have access to those funds the same day or within 24-36 hours. Large currency holders may have to put a portion of their funds into a structured payout.

Rates on currencies are based on Street rate, International and Contract rate. Not all currencies have a Contract rate. You can ask if there is one. You will want to know if there are conditions for receiving the contract rate and what they are. *See supplemental information for definitions.

The Redemption Centers will have a default package. This package includes rates, fees, services and benefits/perks. The default rate will be the International rate. If this is agreeable, you simply will follow through on signing all documents.

Leave with copies of all signed documents and any business cards.

Banks are reporting that there will not be time to create a skeleton trust at appointment. If possible, set up appointment for immediately after exchange to meet with a trust attorney or Trust Co. representative to have a trust created. Be prepared to have a unique trust name picked out. Also, who your beneficiaries will be and a successor trustee (person who will take over for you should you not be able to manage duties). Trust name should not be something associated with you directly.

When you get to the actual exchange process:

They will run your currency/bonds through the DE LaRue machine. This machine counts and verifies the authenticity of your currency.

If you do not like what is being offered, you can ask if any portion is negotiable.

You may be asked what you plan to do with funds. If you are redeeming Zim, the expectation is that you would do humanitarian projects, but is not required. At end of this document is a list of projects that you can choose from to support if you wish. (No longer 80/20 requirement on the Zim)

Historically, they have been looking for the following things in projects:
i. Projects are global in nature – start local and grow outward
ii. Job creation
iii. Duration – multigenerational
iv. Improves economy and helps businesses impacted by Covid

The best way to talk about your projects is to explain a problem and then how you want to fix it. Example: Homelessness – want to build safe affordable housing.

Your project should be typed up in a 1-3-page format with bullet points. This just makes it easy for them to read. Attached at end of this document is a cover sheet for your project. A copy of your project write up will be left at Redemption Center.

If you do not like the default package (rates, fees, services and perks) you may be able to request to talk to someone about what you plan to do and why you need something different than being offered. You may be given a Safe Keeping Receipt (SKR). This is where your currency/Bonds are recorded, and you are given the SKR. You will then work with a Trust company and/ or Wealth Manager to assist with negotiations and preparing the needed information.

Discuss what fees they are charging for exchange. It may be that the fees have been calculated in the rates. It is ok to ask if you can negotiate fees. In many cases, you may be further ahead to just pay the fees. This is something you can ask about. The same is true for services and perks.

If all is agreeable, sign and get copies.

 Remember that any agreements can be rescinded within 72 hours/3 days by law. You may ask if that time can be extended to allow you time to meet with professionals and to come back and renegotiate in your best interests.

You may want to open a new bank account for each currency and/or bond you are redeeming/ exchanging. These accounts will be under trust account name if you have one.

Each person will be (allegedly)  given a US Treasury Account and be in the QFS.

You can take your spouse to appointment or not. You do not want to take anyone who is not familiar with this process as they may end up slowing everything down with too many questions.

Below are some questions to ask and some may not be necessary under the new QFS:

a. Do the funds from each currency/bond need to be in separate accounts?
b. What about fund protection: Does FDIC still apply, or do I need a Lloyds or Cdars Insurance for amounts over $250,000? Is this something they can assist with?
c. I have been told that these transactions are non-taxable, if not, should that not be true, will you provide in writing that I will have access to the funds to pay taxes.

Ask for a full explanation of what the CAP’s and restrictions are and how they work. How are they scaled and what are the benchmarks for restrictions to be removed?

Read everything they give you including the NDA. If you do not understand, ask until you do. OR if you feel you need help, ask if there is an attorney available who can help.

Be respectful – they are not trying to trick you or deceive you.

Discuss Bank Perks – on the private banking side there are perks that you can request. Understand that you will be paying for them. They typically are tiered – so the more AUM (assets under management) you have, the more options you have.

Let them know you are aware that there will be a number of essential tasks to be addressed in the next 10-15 days. Tell them you will be needing help in setting appointments and managing those tasks. Ask if they can provide you with someone who can help.

Below is a list of possible tasks and list of professionals for short term and long term.

a. Establish primary irrevocable trust and any additional trusts or structures. Basic trust components may include:
i. Complex
ii. Non-grantor
iii. Discretionary
iv. Spendthrift
v. Asset protection
b. Meet with Security and Risk management team
c. Wealth Management Team
d. Attorneys and CPAs
e. Establishing short- and long-term priorities
f. Education for self and family – ask what time frame is for completion

There will be a number of decisions that will need to be made post-exchange appointment including meeting with or hiring professionals to assist you. The list below is intended only as a guide.

a. Accounting / Tax
b. Acquisitions
c. Administrative Assistant
d. Art/Advisory Collection
e. Asset Management
f. Aviation Safety Training
g. Brand Identity / Web Design
h. Charity / Philanthropy
i. Compliance / Oversight
j. Concierge
k. Consultancy
l. Precious Metals
m. Digital Privacy / Cyber Security
n. Education Consultancy / Private Tutor
o. Employee Screening
p. Hiring Advisors / Human Res. Search Team
q. Events/ Lifestyle Management
r. Family Office / Software Solutions
s. Family Video Biographies
t. Genealogy / Family History
u. Governance Specialists
v. Home Entertaining / Party Service
w. Ind. Wealth Mgmnt
x. Insurance
y. Interior Design/ Consultancy
z. Intern. Foreign Exchange
aa. Legal
bb. Medical / Health
cc. Mobile/ Telecomm
dd. Private Banking Adv/instructor
ee. Multi-Dimensional Governance
ff. Family Office
gg. Public Relations/ Comm
hh. Private Aircraft Mgmt/Charter
ii. Property / Hotel / Comm &Res
jj. Security / Risk Mgmt
kk. Security / Protection Services
ll. Succession Estate Planning
mm. Training / Wealth Transition Adv
nn. Trust/Fiduciary
oo. Venture Capital Investments
pp. VIP Travel

Supplemental Information
Many are new to this and often terms are used incorrectly, switched, or interchanged. It is more important that you understand what terms mean when you get to your appointment.

DEFINITIONS

Tier 1 Bank: Tier 1 banks are those that hold the highest assets. They include: include: HSBC, Wells Fargo, Chase, Bank of America.

Full-Service Banks: Banks that offer a full range of services including a foreign exchange department. Credit Unions are not usually Full-Service.

Types of Rates:

Front screen/Street Rate: This is the rate you see when you look to purchase or sell currency. The buy rate is higher than the sell rate and the bank always includes a fee. The fee includes the bank portion and the UST portion.

International Rate/ Back Screen/ Default: This is the rate that is used for trading. It is higher than the front screen/street rate. Example: Street rate per million Dong: $1180. International rate: $470,000. To receive international/default rated does require that you sign an NDA. This protects you and the bank.

Contract Rate: This is a rate that is agreed to between countries. Any contract rate is a written agreement between two parties. When you hear “contract rates” associated with the RV, it is often being misused.

Unless you have a written agreement with another, you do not have a contract rate.

If you negotiate for something different than the default, then you will be signing a written agreement and that would be your contract rate.

In the context of the US, it has written agreements with other countries, specifically Iraq and Vietnam.

With Iraq, it is sometimes referred to as “contract for oil”. This is an agreement between governments. The US holds Iraqi Dinar and will receive that contract rate.

Not all currencies have contract rates.

Currently, if you hold Zim, contract rates will not be available. This is because you will receive more from the Zim than you will with a contracted currency rate.

NDA – Non-disclosure agreement

The NDA is a written agreement between two parties that specifies what cannot be disclosed or shared. Usually there is a time limit, 90 days +. As relates to the RV, you are agreeing to not discuss what rate you received for your currency and Zim. The RV transaction is a private transaction. The UST does not want you talking to the public about your private transaction.

If you choose not to sign an NDA, you will go with the public (Tier 5) and will receive Street Rate.

Who can participate? Generally speaking, you can participate in the RV if you are not and have not participated in gangs, legalized crime, murder, human trafficking etc. If you are unsure, make appointment and ask when you get there.

RV Tiers:
T1 = Governments
T2 = Military, those who put this together, groups
T3 = Humanitarian Organizations/Groups and SKR groups
T4 = Internet group – those who follow what is going on with the RV
T4A = Individuals with SKRs, now part of T3
T4B – Individuals, Internet Group
T5 = Public

SKR: Stands for Safe Keeping Receipt. This is where someone who is licensed and authorized to be a Paymaster (usually an attorney) represents a group of currency holders (were originally done prior to Zim being in the offering). They sign a contract and agree to a specified rate. There are not and have not been any new SKR groups for several years.

Prosperity Packages: These cover a very wide area. Includes funds from large trusts such as St. Germain, Rodriguez, Heritage and Mitterrand Trusts will be used to assist the Common Man and help with some debt relief.

Adjudicated Packages: These are lawsuits where plaintiffs won the legal cases. The largest are: CMKX, Native American Claims, Farm Claims, and others. You will know if you are already a part of these.

CMKX: A diamond mine that oversold stock with the help of the SEC. They were sued by key stockholders and won – often referred to as an Adjudicated Package.

Farm Claims: Lawsuit that involved farmers who were unfairly taken advantage of by bankers. They sued and won.

Currency Basket: Originally there were a few baskets with different countries’ currencies revaluing approximately six months apart. There are 22 currencies that are scheduled to go initially.

Once all currency are asset backed, that currency will be exchanged at 1:1 and it will not matter if it is a Mexican Peso or a Dinar. The RV is about creating a level playing field. Not all currency rates will rise in value and some will fall.

List of currencies:
• US
• UK
• Kuwait
• Canada
• Mexico
• Russia
• China
• Venezuela
• Iranian Rial
• IRAQ
• Indonesia Rupiah
• Malaysia

• Vietnamese
• Brazil
• Saudi Arabia
• Qatar
• United Arab Emirates
• Turkey
• Afghanistan
• India
• Libya
• Japan

If you do not have a project but wish to help, below is list of 15 categories of projects from which you can choose. Each category is associated with an Executive Order (EO). You can look up the EO to learn what the focus is. This will help if you do not have an existing project.

• Infrastructure – (There are 5 EOs related to infrastructure. One is #13807 8/15/2017 – Review purpose and what is needed)
• Energy
• International and American business
• Security
• Violence and criminals
• American Indians, refuges and pacific islanders
• Housing
• Technology and space
• Agriculture, oceans, water
• Health
• Spiritual
• Terrorists
• Education
• Financial and money
• Veterans

Project Cover Sheet
Name of Project
Name of Submitter
Phone number
Email Address
Date of Submission
Description of the project – give as much detail as possible. (If you have a plan or outline prepared, attach this form to front of that plan)

What Is Asset Protection Planning?

What Is Asset Protection Planning?

Rosemary Carlson   Thu, January 13, 2022,

Asset protection planning is the process of building barriers around your assets, whether those assets are personal or business, to keep them safe from litigation, creditor claims, seizure and burdensome taxes. It’s a vital and completely legal component of both financial planning and estate planning. There are a number of key tools you can utilize to accomplish the goal of protecting your assets. A financial advisor can help you structure and organize your assets so that they are more likely to achieve your financial goals.

What Is Asset Protection Planning?

Contrary to what many people think, asset protection planning is not just for the wealthy. The estates of anyone, in any income group, can be sued or suffer from hefty taxation. These strategies can mitigate the effect of creditor claims and other issues on your wealth.

If you want and need to protect your assets, you have to be proactive. It’s too late to employ asset protection strategies after a child is hurt on your property and the child’s parents sue you or you are at fault in a serious car accident. You want to set up an asset protection plan before any of these things happen to you.

While many people can benefit from setting up an asset protection plan, not everyone can. If you have a lot of debt and few assets and you are subject to a lawsuit, it may be better to take bankruptcy than set up an asset protection plan. That’s because it’s only worth it if you have significant assets, though some events cannot be protected against. These include tax liens, mechanics liens, alimony judgments and child support claims.

Who Should Have an Asset Protection Plan?

Anyone can put an asset protection plan into place. A plan benefits the following people the most:

While even those with a modest net worth should at least consider asset protection, it’s especially important for anyone with a significant amount of assets.

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

https://finance.yahoo.com/news/asset-protection-planning-190756416.html

Why You Should Put Your House in a Living Trust

Why You Should Put Your House in a Living Trust

Virginia Duan  Mon, January 10, 2022

Part of being a responsible homeowner is having a proper estate plan in place. After all, considering the home is generally the largest asset most people own, it's prudent to ensure this asset is passed to the people you wish to leave it to. Just as you protect your finances from debt or use home security to protect your belongings, estate planning with a living trust can be a way to provide your loved ones with a legacy and inheritance.

For instance, do you know what will happen to your house if you and/or a co-owner were to die? Did you know that even if your will gives the kids your house, it can be held up for a long time thanks to probate law? Also, if you're in an LGBTQ+ family or have special needs, there are often unique circumstances to consider and account for while estate planning.

Read on for the benefits of putting your home in a living trust—and what common mistakes to avoid.

John Bessler

What Is A Living Trust?

Like a will, a living trust is a legal document that can be a vital tool for planning and distributing your assets to loved ones. Active as soon as it is created, a living trust assigns a trustee to manage certain assets—such as your house—on behalf of the future beneficiary. It can be either revocable or irrevocable.

A revocable trust means you can change the terms or control of the assets in the trust at any time. This is great for flexibility, but your assets still count as part of your estate when you die. An irrevocable trust allows your assets to no longer be counted as part of your estate, but you sacrifice some rights to control your trust and the assets held in it.

Portia M. Wood, a California-based generational wealth planning attorney, explains that the kind of trust you use depends on your unique situation. "It's based on three things: your family structure, your asset levels, and your goals," she says, "and then understanding exactly how your trust works as it relates to those three things."

How Much Does A Living Trust Cost?

Well, that depends. Generally, the up-front costs for a living trust will be more expensive than setting up a will or doing nothing at all. As with much of estate planning, costs for setting up a living trust vary by state and region—as well as complexity and customization.

"The savings do not occur until later," says California attorney Jonathan C. Watts. "And a wealthy family with a complicated estate can expect to pay much more than a young person who just bought her first house."

Why Your House Should Be In A Living Trust Versus A Will

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

https://www.yahoo.com/lifestyle/why-put-house-living-trust-111837037.html

Bonds – The Ultimate Guide

Bonds – The Ultimate Guide: What Is A Bond, How Bonds Work, And Why They’re In The News So Much!

November 15, 2021

Have you noticed that bonds are all the rage all of a sudden? Sure, when it comes to stocks, all the hoopla makes sense. They’re all over the place from one minute to the next! But bonds are the slow-moving cousin of stocks. So why all this interest?

Well, bonds are pretty fascinating once you start to understand them and today you’ll learn just how deep the bonds rabbit hole goes.

We’ll learn what bonds are, how to invest in bonds, types of bonds including savings bonds, why and when you might want to invest in bonds, and how well do bonds perform.

What is a bond?

Bonds are called “fixed income instruments” but that’s economics jargon. In real-people terms bonds are loans given to other people, but unlike a loan you would give a friend, bonds are nicely packaged up so that they can be traded around easily.

They have well spelled-out terms, like payback dates, payback value, terms in case the borrower goes bankrupt and interest payments.

Since they are nicely packaged and well spelled out, these bonds can be traded to bond experts or even traded around on the stock market by the click of a button.

Also unlike a loan you might give to a friend, these loans are usually given out by huge companies or governments who are willing to go through the effort of making them. Then since these entities are very large the loans are usually quite a bit safer than one you might give to a friend.

Bond Definition

A bond is a chunk of debt issued by a company or government to individual investors. Bonds return the full principal and a fixed interest amount called a coupon to the investor at the end of the bond’s maturity, or as regular payouts called dividends.

How to invest in bonds?

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

https://fiveyearfireescape.com/bonds/

If You Have This Much Money, You Should Have a Financial Advisor

If You Have This Much Money, You Should Have a Financial Advisor

Patrick Villanova   Wed, January 5, 2022,

A couple meets with their financial advisor. A recent survey found that those with more than $1.2 million in household assets report significantly higher levels of happiness when working with a financial advisor compared to those without an advisor.

Money can’t buy happiness directly, but it seems like paying a financial advisor sure can help.

A new survey found people with more than $1.2 million in household assets report higher levels of happiness when working with a financial advisor compared to those who don’t have an advisor. The finding is part of Herbers & Company’s inaugural Consumer Financial Behaviors Study, which polled 1,000 consumers across the U.S.

A financial advisor can help you manage assets and plan for retirement. Find a trusted advisor today.

“As individuals move past $1.2 million of assets, those who work with financial advisors rapidly increase in happiness, while those without advisors rapidly become less happy,” wrote Sonya Lutter, the certified financial planner (CFP) and licensed therapist who authored the study.

Herbers & Company is a consultancy firm that specializes in helping independent financial advisory firms grow their businesses.

How Happiness is Measured

A recent survey found that those with more than $1.2 million in household assets report significantly higher levels of happiness when working with a financial advisor compared to those without an advisor.

A recent survey found that those with more than $1.2 million in household assets report significantly higher levels of happiness when working with a financial advisor compared to those without an advisor.

To quantify a respondent’s level of happiness, the survey presented each consumer with a list of 43 questions concerning his or her daily behaviors and interactions. The survey also pinpointed four core principles of happiness – fulfillment, intention, impact and gratefulness – and gauged how much respondents identify with each.

All participants in the survey have at least $250,000 in household assets.

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

https://news.yahoo.com/much-money-financial-advisor-215030637.html

11 Steps to Writing a Will

11 Steps to Writing a Will

Emma Kerr   Tue, January 4, 2022, 10:54 AM

Most people should have a will, but it's rarely the most significant estate planning document an individual holds.

Many of a typical household's assets, such as retirement accounts, can be transferred outside of a will by naming beneficiaries, and documents such as the financial and medical powers of attorney can be more powerful in determining the outcome of an estate.

Still, having a poorly written or out-of-date will can be costly and derail an otherwise well-planned estate. Wills are also particularly important for individuals with dependent children; the will serves as the best means to name guardians for children in the event of the death of both parents.

Experts typically advise individuals to get the basic estate planning documents in order around the time they are married or buy a home, for example, and revisit the will regularly with special emphasis on this process around the time of retirement. Get started and complete your will in 10 simple steps:

1. Find an Estate Planning Attorney or Use a Do-it-Yourself Software Program

Individuals or families with relatively simple financial situations may be able to use an online, reputable software program to complete their wills. Some software programs to consider include:

-- Quicken WillMaker & Trust   -- Fabric   -- LegalZoom

Many situations, however, will require an estate planning attorney.

"There are so many rules that come into play," says Patrick M. Simasko, an elder law attorney in Mount Clemens, Michigan. "They can't make it to the lawyer or they go onto LegalZoom, which is great, and they prepare their own documents, go to a website, download the will or they download trusts or different forms. But they don't know how to fill them out right, sign them right, notarize them right, so they don't mean anything."

Hiring an attorney to create basic estate planning documents may cost a few thousand dollars, while an online software program can cost $100 or less. However, experts warn that improperly prepared documents can be costly down the road.

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

https://www.yahoo.com/news/11-steps-writing-155440227.html

6 Signs You May Want To Ditch Your Financial Adviser

‘This is a red flag.’ 6 Signs You May Want To Ditch Your Financial Adviser

Alisa Wolfson   Wed, January 5, 202

How to know when it’s time to leave your financial adviser.

Like with many relationships, your relationship with your financial adviser might not be working. But how do you know it’s time to head for the hills? We asked certified financial planners and finance experts the things to consider before firing your current financial adviser and hiring a new one.

You’re not that comfortable sharing personal details with them

“Your adviser should be someone who you’re comfortable sharing your financial goals with and count on to act in your best interest,” Tiffany Lam-Balfour, investing spokesperson at NerdWallet says. And money is often tied up in emotional things that can be hard to talk about — maybe you want to save for infertility treatments or worry you can’t pay for a funeral or a home health aid— so it’s essential you can share those kinds of things, with confidence, with your financial adviser.

There are conflicts of interest

When you first hired the adviser, did you get into how they were paid? If not, do it now, and look out for an adviser who isn’t incentivized to work in your best interest.

“If you feel like your advisor has conflicts of interest, that they are not providing advice and recommendations in your best interest, or that you don’t have a strong partnership together, you might consider seeking an adviser that better fulfills your needs,” says Amy Richardson, certified financial planner with Schwab Intelligent Portfolios Premium. This guide (questions 3 -5) will help you understand how your adviser is being paid.

You’re not getting a prompt return phone call

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

https://www.marketwatch.com/picks/this-is-a-red-flag-6-signs-you-may-want-to-ditch-your-financial-advisor-01633625163?siteid=yhoof2

The Imbecile King Who Put His Foot On The Gas Pedal

The Imbecile King Who Put His Foot On The Gas Pedal

January 3, 2022 Notes From The Field By Simon Black

Charles II was only three years old when he became the supreme ruler of the Spanish Empire in 1665. But anyone who took just one look at the child knew they were all doomed.

Charles had come from a long line of prominent European nobles known as the Habsburgs-- a family so exclusive that they frequently married one another in order to keep their blood line ‘pure’.

Genetic defects abounded at as result. 

Charles II inherited some of the worst of these genetic defects; his father and mother were uncle/niece. And his grandparents were first cousins.

So it comes as no surprise that Charles II was deformed, spindly, weak, constantly sick, and partially paralyzed. He was also referred to by his contemporaries as the ‘imbecile king’ for his slow-witted stupidity.

Spain had been the dominant European superpower only a century prior to Charles II. It had vast colonies all over the world, a terrifying army and navy, and unimaginable wealth.

But history proves that an Empire’s wealth and power never last forever.

And even well before Charles II took the throne, Spanish rulers were already running everything into the ground.

One clear lesson from history is that empires tend to be extremely expensive… especially when you’re the dominant superpower, and all of your rivals are constantly waging war against you.

Spain was no exception. Their empire was extremely expensive to administer, and they were routinely engaged in costly wars.

The emperors were forced to borrow a lot of money to pay for these wars. And Spain’s debt became so vast that the government defaulted at least SEVEN TIMES between the mid 1500s and mid 1600s.

Desperate to make ends meet, the government also hiked taxes to exorbitant levels, including imposing a 14% sales tax. (Somewhere the governor of California is taking notes…)

The government also predictably began rapidly expanding the money supply and debasing its own currency… resulting in one of the worst long-term episodes of inflation in all of human history up to that point.

Spain’s Emperors also began interfering heavily in trade and commerce; they passed rules granting special monopolies to favored businesses, essentially killing off competition, and they inserted extreme government bureaucracy into some of the most important industries like shipping and mining.

It wasn’t long before economic and trade activity began to shrink as a result of these policies.

Between 1600 and 1700, in fact, Spanish shipping volume from the New World had declined by an astonishing 75%.

Part of this decline was because of emerging social trends.

In the early 1400s and early 1500s, the seas were teeming with Spanish explorers-- Cortes, Pizarro, de Soto, Ponce de Leon, etc. These men were regarded as national heroes in Spain, and international trade was considered a highly respected industry.

By the mid 1600s, however, trade, commerce, and production had all fallen out of favor. Traders and industrialists were viewed with suspicion instead of esteem. 

The economies in cities like Valencia, which had once been famous for its factories and high quality products, quickly decayed. And suddenly Spain found itself importing most of its goods and services from its chief rivals-- France, England, and the Netherlands.

Meanwhile the Spanish Inquisition was busy killing off thousands of intellectuals… and condemning tens of thousands more to life imprisonment.

Their crime? Expressing independent thought that differed from the official narrative.

Spain’s message to the world was clear: freedom of thought had no place in the Empire. So anyone capable of innovation stayed as far away as possible.

And as a final point, Spain had suffered a series of embarrassing military defeats from the late 1500s through the mid 1600s, including the Spanish Armada’s humiliating loss to the English in 1588.

Suddenly the rest of Europe realized that Spain was not invincible. The Empire was bankrupt, economically weak, socially decayed. And its military had been embarrassed.

Remember-- this was already the situation BEFORE 1665.

And that’s when Charles II took the throne.

In other words, a weak, mentally incompetent fool was put in charge of an Empire that was already in serious decline… and whose chief rivals were rising rapidly.

You don’t need a PhD in European History to figure out how that movie ended: the situation became much worse under Charles II.

And within a few decades, Spain would go on to lose a major war against its rivals that struck the final blow to its dominance.

That’s when the torch was passed, and France became the dominant superpower. Eventually the UK surpassed France, then the United States surpassed the UK.

This cycle has been taking place for more than 5,000 years. Empires rise and fall. Economies rise and fall. And no nation holds the top spot forever.

It’s not hard to understand why.

When an economy is on the rise, people are hungry. They work hard. They save money. They’re focused on the future.

Governments run lean budgets and spend responsibly. They maintain a sound currency.

Once an economy has reached its peak, however, priorities change. Hard work and saving are no longer prized social values. People become more focused on consuming in the present, rather than investing in the future.

Debt levels skyrocket. Government spending balloons. Regulations soar. Prices rise.

Little by little, a nation chips away at the very values and institutions that made them powerful to begin with.

If fiscal responsibility has made the nation wealthy, they begin printing record sums of money, engineering inflation, and taking on mountains of debt.

If capitalism has made the economy prosperous, they cheer socialism.

If personal freedom and self-reliance have created a strong society, they embrace totalitarianism, intolerance, and censorship.

Not to mention, there always seems to be some rival, rising power lurking, ready to take advantage of the situation… and some weak leadership like Charles II who hits the gas pedal on the way towards the precipice.

This story is as old as human civilization. And while the exact circumstances today are different, the themes are very similar.

To your freedom,

Simon Black,  Founder, SovereignMan.com

The Imbecile King who put his foot on the gas pedal | Sovereign Man

Be Curious

Be Curious

Jan 3, 2022 by Ted Lamade  Managing Director at The Carnegie Institution for Science

There is a great scene in the first season of Ted Lasso in which the show’s antagonist, Rupert Mannion, challenges Lasso to a game of darts. After seeing him make a few poor throws, Mannion is confident that it is easy money. The two play and Mannion appears to be on the verge of winning with Lasso needing two “triple 20s” and a bullseye on his final three shots. Then, just before he throws his darts, Lasso turns to Mannion and says in his Southern drawl,

“You know Rupert, guys have underestimated me my entire life. It used to really bother me, but then one day I was driving my little boy to school and saw a quote by Walt Whitman painted on a wall that said, ‘Be curious, not judgmental’. I liked that. See all those fellas who belittled me, none of them were curious.

They thought they had everything figured out. So, they judged everything* and everyone*. And then I realized that their underestimating me had nothing to do with it…..because if they were curious, they would have asked questions. Questions like, ‘Have you played a lot of darts Ted?’ Which I would have answered, ‘Yes sir. Every Sunday afternoon at a sports bar with my father from age 10 until I was 16 until he passed away’.”

Lasso proceeds to drill all three shots and wins the game (watch the scene on YouTube if you have a minute). In short, a hustler got hustled because he wasn’t curious enough. He made judgements based on incorrect assumptions and didn’t ask the right questions

Being curious is one of life’s most underappreciated qualities. It’s an admission that you don’t have it all figured out. It means you’re willing to listen and learn. Most importantly, it often differentiates the good from the great.

The Innovators

Ted Lasso is a work of fiction, but this concept of curiosity is not. Look no further than what Walter Isaacson said was the most common trait he observed in the people he wrote about in his book “The Innovators”.

“Curiosity. Pure, passionate, and playful curiosity about everything. Steve Jobs was curious about calligraphy and coding, while Da Vinci was curious about art and anatomy. They wanted to know everything about everything that was knowable. Ben Franklin wanted to know about science, the humanities and poetry. Even Einstein wanted to understand Mozart at the same time that he studied general relativity.

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

https://www.collaborativefund.com/blog/be-curious/