What Happens to Your Mortgage When You Die?

What Happens to Your Mortgage When You Die?

Mark Henricks  Mon, April 18, 2022

If you die owing money on a mortgage, the mortgage remains in force. If you have a co-signer, the co-signer may still be obligated to pay back the loan. A spouse or other family member who inherits a house generally has the right to take over the payments and keep the home. Alternatively, terms of a will may direct that the estate’s assets be used to pay off the mortgage, and sometimes a life insurance policy will pay off the mortgage if the original borrower dies. If no one will assume the mortgage and there is no provision to pay it off, the lender may foreclose on the property and sell it. A financial advisor can help you deal with mortgage challenges during the estate planning process.

What Happens to Your Mortgage After Your Death?

Mortgages, unlike most other debts, don’t usually have to be paid back from the estate of a deceased person. With credit cards, car loans and similar debts, family members generally aren’t directly responsible. Instead, debts will be settled with funds from or generated by sales of assets in the estate before anything is distributed to heirs.

When the deceased person was married, the situation is different in community property states. Community property states include Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin. In these states, surviving spouses may be responsible for paying back mortgages as well as other debts assumed by a deceased spouse during the course of the marriage. Note that debts assumed before the start of the marriage are normally not the responsibility of the surviving spouse. The specifics vary significantly from state to state, however.

With a mortgage, only the specific property that secures the loan is affected. Unless the will specifies otherwise, the other assets in the estate can be distributed to beneficiaries through probate rather than being applied to the mortgage.

While the mortgage debt survives the deceased person, the responsibility for paying it back doesn’t automatically transfer to anyone other than a surviving spouse in a community property state, again unless there is a co-signer. If there is a co-signer, that person remains responsible for the mortgage debt after the death of the other co-borrower.

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

https://finance.yahoo.com/news/happens-mortgage-die-150414432.html

The 11 Most Extravagant, Exclusive and Surprising Credit Card Perks

The 11 Most Extravagant, Exclusive and Surprising Credit Card Perks

Don't miss out on these impressive credit card perks.

Cameron Huddleston    Life and Money Columnist Jun 3, 2019

Cash back, free hotel stays and flights are among the more common perks of having a rewards credit card. Certainly, these perks are great — and an easy way to have your credit cards work for you. However, some high-end cards dole out benefits that make you truly feel like a VIP.

To qualify for some of these perks, though, you need to get an excellent credit score. You might also have to pay steep annual credit card fees. Fortunately, not all rewards credit cards come with fees or are quite so exclusive.

A Chance to Meet Mickey Mouse

If you’re a die-hard Disney fan, you can meet some of your favorite characters such as Mickey Mouse if you take advantage of this credit card perk.

“The Disney and Disney Premier Visa cards from Chase offer cardmember exclusive photo opportunities at a private card member location at the Disneyland and Walt Disney World resorts,” said credit card expert Jason Steele. You also get free downloads of your photos.

The cards also let you earn rewards points for purchases that can be redeemed for Disney theme park tickets, Disney movie tickets, resort stays and more. The Disney Premier Visa has a $49 annual fee, but the Disney Visa has no annual fee.

Tickets to the Emmy Awards

You don’t have to be a celebrity to go to the Primetime Emmy Awards. Having the right credit card can get you access. As a Chase Sapphire cardholder, Steele was able to attend the 68th Emmy Awards in 2016.

Chase Sapphire cardholders can use rewards points — or cash — to purchase special events packages, such as the Emmy Awards that Steele attended. The events that are accessible vary from year to year. Some of the current experiences available to Chase Sapphire Reserve cardholders are a 2019 Sundance Film Festival package, tickets to the Rockettes’ Christmas Spectacular at Radio City Music Hall and a pre-show reception with two of the Rockettes. However, the annual fee for the Chase Sapphire Reserve is a hefty $450.

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

https://www.gobankingrates.com/credit-cards/advice/most-exclusive-credit-card-perks/

The Top Purchases You Should Always Make With a Credit Card

The Top Purchases You Should Always Make With a Credit Card

Don't miss out on the perks of using your card in smart ways.

By John Csiszar Apr 18, 2022 Get Credit Advice

Some financial advisors suggest that consumers should never buy anything with a credit card and should only use cash for purchases. The philosophy behind this advice does have some merit, but for those that use credit responsibly, there’s a whole host of benefits. In fact, for some types of purchases, failure to use a credit card can actually be a mistake, as you’d be forsaking various forms of protection and benefits.

Although the caveat is always there that you must use your credit responsibly, here’s a list of purchases that you should always consider making with a credit card.

Electronics and Appliances

Depending on the type of card you have, you should always buy appliances and electronics on credit. Beyond any points that you might earn, many credit cards offer extended warranties on purchases of electronics and appliances. For example, if you buy a dishwasher with a one-year manufacturer’s warranty, your credit card company may double that warranty period to two years. Some credit cards also offer damage and theft purchase protection. If your purchase is damaged or stolen within a certain time period, usually 90 to 120 days, your card company will repair it or reimburse you for the purchase, up to certain limits.

Bonus Categories

Credit card issuers operate in a competitive field, and that has benefitted credit card customers immensely. Most rewards cards now offer bonus multipliers in various categories, such as three times points on travel and dining or two times points on groceries. The key to maximizing these bonus points is to pick a card that provides enhancements for things that you normally spend your money on. For example, if you spend a lot of money on groceries and gas, you’ll want to direct that spend toward a card that provides bonus points in those categories.

Airfare

Flights are among the most obvious purchases to make with credit cards. For starters, many rewards credit cards offer additional bonus points for the purchase of flights. However, most travel-oriented credit cards offer many additional perks for flight purchases.

Some cards offer free trip delay or cancellation insurance, while branded cards often grant free baggage privileges for flights purchased using the card. Many travel cards also offer lost luggage insurance, reimbursing you for your bags and their contents if they don’t turn up. Once you begin your trip, some cards offer free access to airport lounges as well.

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

https://www.gobankingrates.com/credit-cards/advice/top-purchases-should-always-make-credit-card/?utm_campaign=1162013&utm_source=yahoo.com&utm_content=9&utm_medium=rss

Not Good With Money? These 5 Expert Tips Are Made for You

Not Good With Money? These 5 Expert Tips Are Made for You

Casey Bond   Mon, April 18, 2022

Being "good with money" means different things to different people. Maybe it's having a lot of savings, zero debt or a big investment portfolio.

For those who don't have those things, it can feel hopeless. The good news: If you consider yourself bad with money, that's probably not the case. You simply need to learn a few basics. So if you'd like to get your finances on track once and for all, consider these tips from money experts.

Normalize Looking at Your Money

One of the major reasons why people don't develop good money habits is because they're ashamed or afraid to know what's really going on. "If, instead, an individual looks at their money regularly, they will be able to see it more objectively," said Kimbree Redburn, an accredited financial counselor and financial coach at Illuminate Financial. "They will notice trends and patterns and will better understand the flow of money into and out of their account."

Redburn suggested setting up a weekly check-in with your money -- 15 to 20 minutes is plenty. "Put the meeting on your calendar and honor it like you would any other commitment," she said. Next, sit down and look over your previous spending for the past week. Ask yourself whether it was in line with what you expected, or if changes need to be made. Then look ahead at the week ahead, and make a plan for covering the bills and other expenses you have coming up.

Try a Zero-Based Budget

To take control of your finances, you need to tell your money what to do and when to do it, explained Eric Bowie, owner and founder of Smart Money Bro. And that requires having a budget. "I recommend a zero-based budget," he said.

This means setting up your budget so that your income minus expenses equals zero. In other words, every dollar you earn has a job to do, whether that's paying a bill, paying down debt or going toward savings and investments. "A monthly budget where all of your money is spent on paper, is the ultimate top-down management of your finances," Bowie added.

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

https://www.yahoo.com/finance/news/not-good-money-5-expert-190017174.html

The Riskiest Places To Swipe Your Credit Card

The Riskiest Places To Swipe Your Credit Card

Scott M. Brodie   Mon, April 18, 2022, 1:00 PM

Credit card fraud has become a constant and pervasive threat, and debit cards aren't immune to being stolen either. The Federal Trade Commission reported 66,090 instances of credit card fraud in 2020. This is why it's so important to know where the risks are, so you can better protect yourself from those looking to steal your information.

ATM Machines

Thieves have been skimming debit (and credit) card information from ATM machines for years, and the innovation of chip cards was partly developed to address this risk. As the credit card industry advances, though, thieves adapt -- and Consumer Reports notes they now have "shimmers" that can read chip-based cards.

Gas Stations

Gas stations are a haven for credit card thieves, as the pumps see a lot of customers and often receive minimal supervision. As a result, thieves have ample opportunity to install skimmers and sometimes tiny cameras that capture PIN numbers. The problem is so bad, the Secret Service has gotten involved. The agency found almost 200 skimmers at 400 gas stations during a crackdown in 2018.

Mobile Vendors

While there are many trustworthy mobile vendors who are trying to earn an honest living, there also can be thieves who pose as such vendors. At festivals, fairs, concerts and other events, attendees sometimes don't know whether a vendor is legit or uses a card skimmer. This can leave your card susceptible.

Dining Establishments

While some restaurants now swipe your card in a visible location, many still run cards in the back of the house where you can't see it. Should an establishment or individual server be unscrupulous, they could swipe your card through a skimmer and charge more than just your meal.

Chain Retailers

Large chain retail stores might seem like safer places to use a credit card because they have more resources to invest in security. The number of people who swipe cards at retailers makes them especially promising targets for thieves, though, and some have managed to get through the security measures in place. Target, TJX -- which operates T.J. Maxx and Marshall's -- and others have had data breaches involving cards.

Online Retailers

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

https://www.yahoo.com/finance/news/riskiest-places-swipe-credit-card-170001180.html

We May Be Entering The ‘Down Phase’ Of The Economic Cycle

We May Be Entering The ‘Down Phase’ Of The Economic Cycle

Notes From the Field By Simon Black  April 18, 2022

On June 29, 1914, Emperor Franz Joseph of Austria-Hungary sat quietly while his ‘experts’ debated what to do next. The Emperor’s son and heir, Archduke Franz Ferdinand, had just been assassinated the previous morning in Sarajevo. And there was still much they didn’t know. 

Some of the Emperor’s ministers suggested they demand a criminal investigation into the assassination in order to gather all the facts. Others recommended immediate military mobilization. Other advisors argued that Austria-Hungary should seek support from its allies, and others suggested they deliver a firm ultimatum.

But the 84-year old Emperor was too distraught to engage in the conversation, so most of the decision-making was left to the ‘experts’.

These were men with decades of experience in diplomacy and foreign relations. Yet most of them were making terrible assumptions and gross miscalculations.

Similar misguided conversations were taking place across Europe, as high-ranking government officials in Britain, France, Russia, and Germany debated how to respond to the assassination.

Some were obsessed with appearing strong, while others fretted about public opinion. And nearly every action they took escalated the crisis further. Experts always know best...

By the middle of July these ‘experts’ had engineered an unavoidable conflict, and war finally broke out on July 28, 1914.

The war itself would last for more than four years; and it was one of the most brutal and hellish ever waged.

But more broadly, the war marked the beginning of a multi-decade era of conflict, suffering, and hardship.

Over the next 30+ years, the world saw the rapid spread of Socialism. Hyperinflation in the Weimar Republic. The rise of Nazism and outbreak of the second war. And the Great Depression-- where ‘experts’ once again did all the wrong things and made a bad situation much worse.

(Even the Federal Reserve acknowledges this; former Fed chairman Ben Bernanke once remarked in a 2002 speech, “Regarding the Great Depression, you’re right. We did it. We’re very sorry.”)

Obviously it wasn’t all chaos; there were ups and downs throughout this period. In the late 1920s, for example, many major economies were booming.

But in general, the period of history from the start of World War I in 1914, until the end of World War II in 1944, was dominated by painful economic conditions.

And then everything started to change. Once World War II was finally over, the US entered a new multi-decade period-- but one that was characterized by growth and prosperity instead of economic pain.

From 1945 through the late 1960s, the US economy grew quickly. The stock market boomed. Inflation was low. Unemployment was low. Interest rates were low.

1952 is a great example. By December of that year, the S&P 500 had posted an annual gain of roughly 12%. The US economy had grown 6.9%. Inflation was just 0.90%. Unemployment was 2.7%. And mortgage rates hovered around 4%.  Those are pretty fantastic economic conditions, and they are indicative of the era.

Certainly there were periods of crisis and instability-- the social chaos of the 1960s, wars in Korea and Vietnam, etc. But, in general, prosperity abounded for roughly 25 years.

Then the 1970s came, and everything changed again. Inflation surged and quickly became stagflation. There were energy shortages. Unemployment soared.

And the stock market performed dismally. In fact, when adjusted for inflation, the S&P 500 lost 42% during the 1970s, and wouldn’t surpass its 1968 record high until 1994!

Even into the 1980s when the US economy started growing again, unemployment remained elevated above 7%. And mortgage rates soared as high as 18%.

It was a difficult time to say the least. But then conditions reversed again.

1995 was the start of the Dot-com boom, and another multi-decade era. Just like 1945-1970, this one was characterized by low inflation, low unemployment, low interest rates, and strong stock market returns.

Obviously there were plenty of ups and downs from this period as well-- including the dot-com bust, 9/11, and the Global Financial Crisis in 2008.

But in general the period from 1995 until ~2020 enjoyed a tremendous amount of good fortune.

What I’m essentially describing here is how economic prosperity tends to move in very long-term cycles. They usually last for decades.

Obviously during each phase in the cycle there are variations; 1914 through 1945 was a period of general suffering, for example, even though the economy boomed in the 1920s.

But overall these cycles alternate between prosperity and hardship, up then down.

We’ve been in the ‘up’ phase of the cycle for several decades. And I believe we are transitioning to the ‘down’ phase.

Just like in 1914, many of our ‘experts’ today have engineered an inescapable situation.

They may be well-meaning, but the confluence of their devastating public health policies, monetary policy, trade policy, anti-Capitalist economic policies, etc. has driven inflation to record levels.

They want us to believe they have everything under control. They want us to believe that if we just sit tight, then they’ll fix it and everything will go back to normal.

This is a total farce. Many key inflation drivers (including conflict, long-term demographic trends, and major shifts in global manufacturing) are chronic issues that aren’t going away anytime soon.

And with inflation lingering, people will start tightening their belts. Many have already begun to do so.

This means that discretionary consumption will decline, which makes recession inevitable. Combined with already high inflation, this ultimately means stagflation.

More broadly, it may signal a new economic era-- the down phase in the cycle-- characterized by tougher conditions: higher interest rates, higher inflation, and slower growth.

These ‘down’ phases are a natural and critical part of the economic life cycle. Boom times cannot last forever. They never have.

Just as mother nature clears its own overgrowth, economies require a natural correction of their excesses. That’s what a down phase really is.

So don’t panic-- the world isn’t coming to an end. And there will always be opportunities to prosper for intelligent, independent-minded people.

In the last down cycle during the 1970s, for example, some of the today’s most formidable companies were founded, including Apple and Microsoft. Employees and investors alike minted millions. The next down phase will be no different.

The important thing for now is to recognize that a major shift may be upon us-- and it could very well last for years to come.

Simon Black,  Founder, SovereignMan.com

https://www.sovereignman.com/investing/we-may-be-entering-the-down-phase-of-the-economic-cycle-35168/

25 Things To Sell When You’re Ready To Retire

25 Things To Sell When You’re Ready To Retire

Gabrielle Olya  Sat, April 16, 2022  GOBankingRates

Many people downsize in retirement as a way to cut back on expenses and make their lives simpler. For some, this means relocating to a smaller home or a retirement community. For others, this can just mean getting rid of stuff they no longer use anymore.

If your retirement planning includes downsizing, there are numerous things you can sell to clear out clutter and add some extra funds to your retirement nest egg.

Your Home

One of the key things you need to figure out when planning for retirement is where you want to live. This might entail selling your current home, which for most people is their most valuable asset. You can use the funds to buy a smaller place or put the money toward rent and deposit any leftover money into savings. Downsizing your home can not only save you money, but it also can save time and effort because you have a smaller property to maintain.

Work Clothes

When you're out of the working world, you no longer need to wear business attire in your everyday life. Hold onto one suit for weddings and other special occasions and sell the rest. You can sell your clothes online on sites like Poshmark and thredUP, or sell them at your local consignment shop.

Exercise Equipment

If you downsize your home, you might no longer have room for exercise equipment. But even if you plan to stay at your current house, you might consider selling your treadmill or stationary bike because of other exercise options available to you. For example, you might have the SilverSneakers senior fitness program included in your Medicare Advantage Plan, which lets you visit select gyms and take fitness classes for free. In this case, there's no need to hold onto equipment that you can turn into cash instead.

Your Car

Even if you're done paying off your car, it can still be a major expense between gas, insurance, maintenance and repairs. If you and your partner each own a car, consider selling one of them. Even if you only have one car, it might be cheaper to sell it and get around using rideshare services or public transportation.

Furniture

If you plan to move to a smaller home, it's a good idea to sell off bulkier furniture pieces that you'll no longer have room for. You can sell furniture through Craigslist or Facebook Marketplace, or to a consignment shop or used furniture store.

Decorative Items

Holiday decorations and other decor items might be taking up space you won't have if you downsize to a smaller home. Consider holding a yard sale to get rid of any miscellaneous decor items that you no longer want or need.

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

https://www.yahoo.com/finance/news/25-things-sell-ready-retire-190001511.html

Warren Buffett's 12 Best Quotes In a New Interview

Warren Buffett's 12 Best Quotes In a New Interview

Theron Mohamed  Fri, April 15, 2022,

Warren Buffett applauded Elon Musk, MacKenzie Scott, and Jerome Powell in a new interview. The Berkshire Hathaway CEO reflected on his age, his legacy, and the main drivers of his success. Buffett commended Bill Gates and Melinda French Gates for devoting time and money to philanthropy. Warren Buffett praised Tesla CEO Elon Musk, billionaire philanthropist MacKenzie Scott, and Federal Reserve Chair Jerome Powell during a Charlie Rose interview released on Thursday.

The 91-year-old investor and Berkshire Hathaway CEO also discussed his legacy, how old age has affected him, and why he admires Bill Gates and Melinda French Gates.

Here are Buffett's 12 best quotes from the interview, lightly edited for length and clarity:

1. "You don't need to be a genius in what I do, that's the good thing about it. I'm a bright guy who's terribly interested in what he does, so I've spent a lifetime doing it, and I've surrounded myself with people that bring out the best in me."

2. "I know I'll win over time. That doesn't mean I'll beat everybody else, or anything like that. But the game is very, very, very easy if you have the right lessons in your mind about what you're buying." (Buffett emphasized that stocks are pieces of businesses, not wagers to be monitored day by day.)

3. "We have a successor in place, but he's not warming up. I'm in overtime but I'm out there."

4. "Jay Powell matched Paul Volcker in terms of doing things that needed to be done that day." (Buffett was referring to the Fed chair moving quickly to save the US financial system when the pandemic took it to the "brink of chaos" in March 2020.)

5. "It isn't like the 50 richest guys in the country can say, 'I'm just going to eat everything.'" (Buffett argued that while Henry Ford, Thomas Edison, and Steve Jobs amassed large fortunes, they also shared their inventions, improving the lives of millions of people).

6. "Elon is taking on General Motors and Ford and Toyota, and all these people who've got all this stuff, and he's got an idea and he's winning. That's America. You can't dream it up. It's astounding."

7. "I am a decaying machine that still feels wonderful. I can't add a group of numbers remotely as fast as I used to be able to. I can't remember sometimes why the hell I walked up the stairs. I forget names so easily. I can't read as fast as I used to read. I can't hear as well, I can't see as well, my balance isn't as good. But it doesn't interfere with my happiness, my work, anything."

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

https://finance.yahoo.com/news/warren-buffett-praises-elon-musk-092324460.html

7 Money Skills It’s Never Too Late To Learn

7 Money Skills It’s Never Too Late To Learn

Heather Taylor   Wed, April 13, 2022,

No matter what age you are, there are basic money skills that will always be beneficial in your life. From spending less than what you make to determining the best way to pay off your debt, these skills can increase your overall financial literacy and create a healthy relationship with money.

Budgeting

Budgeting is often considered the cornerstone of personal finance advice. Amy Maliga, financial educator at Take Charge America, said it's never too late to get in the habit of planning and following a budget.

Creating a budget allows you to figure out how much money you have coming in every month and the source of this income. Once you know how much money is coming in, you can start tracking and figuring out your expenses. Keep an eye out for fixed expenses (expenses that stay the same every month like rent or a mortgage), variable expenses (expenses that change each month such as groceries or utilities) and periodic expenses (expenses that happen once a year like back-to-school shopping).

Tracking expenses through a budget allows you to see the areas where you may be spending too much money and where there may be opportunities for saving or investing your money. You may also strategize how you can live within your means and plan for the future with the help of a budget. Maliga said that understanding exactly how much money you have coming in, going out and where it's going is the cornerstone of effective money management.

Wise Spending Habits

It's never too late to learn about spending. From reducing everyday expenditures to embracing a passive saving mindset, wise spending habits are a key component of financial literacy.

Britt Williams Baker, co-founder of Dow Janes, said a money skill many underestimate is the importance of learning to spend less than what you make.

"Whether you're 25 or 55, if you still spend more than you make each month, you'll never be able to save. And until you start to save, you can't do anything else -- like invest, buy a house, or build wealth," Williams Baker said.

The best way to learn how to spend less than what you make is by tracking expenses. (This shares similarities with creating and keeping a budget.) Williams Baker recommends paying attention to every dollar that comes in and out of your life. Write down your paycheck and every expense. Then, tally it up at the end of the month. Was it negative or positive?

"If you're going into debt every month, you have to find a way to eliminate your expenses or increase your income. That's the first step to being able to save and that's a lesson that you need to learn at any age," Williams Baker said.

Strategic Credit Card Usage

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

https://www.yahoo.com/finance/news/7-money-skills-never-too-120022076.html

Yes, It Is Possible To Fix This. But Don’t Hold Your Breath

Yes, It Is Possible To Fix This. But Don’t Hold Your Breath

Notes From The Field By Simon Black  April 11, 2022

On the morning of September 2, 1715, Philippe d’Orleans prepared for an impossible task.  King Louis XIV had just died the day before after a painful struggle with gangrene, leaving his five-year old great grandson to inherit the throne.  Philippe had been appointed regent the week prior, meaning that he would rule France until the boy king came of age and could take the throne.

But Philippe knew the situation in France was grim. 

Louis XIV’s lavish spending and penchant for endless warfare had left the kingdom completely bankrupt; the French national debt was so large that its interest payments alone exceeded the government’s annual tax revenue.

Taxes were already high, stifling economic development. Inflation was rising. Food was in short supply. Corruption was rampant. Social divisions were raging.

Most of all, people were angry. The King that had ruled over them for seven decades had ruined their lives, and there was hardly a single household in France that hadn’t lost a loved one to one of Louis XIV’s wars.

They hated him for it. Most French peasants celebrated his death, and some spat at his coffin as the funeral procession passed.

Philippe wasted no time, and he began making widespread reforms immediately.

He started with dramatic cuts in government spending, including pruning the new King’s personal budget to almost nothing. He vastly reduced the size of the French army, and he scaled back public welfare.

He also eliminated many taxes, cut the ones that remained, and greatly simplified the process of paying them.

Philippe fired thousands of government bureaucrats who were getting rich by clogging up the system, and he took steps to stamp out corruption.

He sought peace with France’s former adversaries, traded with everyone, and established new relations with rising powers (like the Russian Empire).

He reversed Louis XIV’s policies of censorship, and he advocated for national unity and tolerance.

It wasn’t just empty words; Philippe released prisoners from the Bastille who had been arrested of political crimes. And he even set a personal example by graciously smiling when he was occasionally lampooned in the press-- something that would have been unthinkable only a few years before.

Philippe’s reforms were far from perfect, and there were a number of terrible ideas (like the ill-fated Mississippi Company bubble of 1720).

But overall the reforms worked. And he didn’t even need to do anything complicated. Rather, his primary strategy was to remove as much government as possible, avoid conflict, and let freedom prevail.

Sadly, though, the prosperity didn’t last. Philippe died in 1723, just a few months after the boy king was crowned Louis XV.

At first the new ministers kept up Philippe’s policies. But in time, France returned to the old ways of corruption, intolerance, persecution, and war… all of which ultimately resulted in a bloody revolution in 1789.

Philippe’s story does show, however, that it’s possible to fix even the worst economic and public finance disasters, as long as the government gets out of the way and stops making the problem worse.

It would be nice to see that approach today in the West, and especially the US. But leadership can’t seem to stop making things worse.

First off, they’re addicted to deficits; even though the US national debt rocketed past $30 TRILLION this year, the government still hasn’t found the motivation to balance the budget and live within its means.

The White House’s most recent budget proposal for next year shows a deficit of “only” $1.8 trillion. And they’re actually bragging about this like it’s a major accomplishment.

And it was only a few months ago that the most senior officials in the federal government, including the Speaker of the House and the President himself, insisted that their multi-trillion dollar ‘Build Back Better’ bill would “cost nothing”.

They even went on TV multiple times to make this ridiculous assertion, almost as if they wanted to leave no doubt of their economic illiteracy.

They clearly have zero understanding of the problems; they blame inflation, for example on “corporate greed”, and have decided to ‘fix’ inflation by having powerful government agencies harass the private sector.

They actually believe they’re fixing high oil prices by depleting the Strategic Petroleum Reserve, as if dipping into your emergency savings is a credible alternative to new production.

And they see every problem as an opportunity to create more regulations.

So, contrary to Philippe d’Orleans, they clearly have no intention of getting out of the way. Quite the opposite-- they’re taking a bad situation and making it much worse. And it’s time to get rational about this.

For starters, inflation will likely continue to rise.

After all, we cannot expect them to fix a problem that (a) they do not understand, and (b) they keep making worse.

And most likely it’s only a matter of time before inflation, along with global supply chain madness, pushes much of the world into recession.

They’re not going to be able to fix that either. They don’t have the tools.

They’re already $30 trillion in debt with a $1.8 trillion deficit in their supposedly ‘scaled-back’ budget. Fighting a recession would mean the government dumps trillions more into the economy-- money they clearly don’t have.

The Federal Reserve, meanwhile, has few options. Interest rates are already near zero, so they don’t have much room to fight a recession by cutting rates. Besides, any interest rate cut would only risk making inflation worse.

It’s not a great situation. But it is fixable; Philippe d’Orleans showed what could happen if you get out of the way and let freedom prevail. It’s not rocket science:

Stop creating disincentives to work, produce, and trade. Stop creating fanatical regulations. Stop dismantling capitalism in the name of social justice. Stop fomenting conflict. Stop trying to invent new taxes.

Just stop. And let people live their lives.

But it’s doubtful they’ll ever take this approach. And that’s why it’s so critical to have a Plan B.

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

https://www.sovereignman.com/trends/yes-it-is-possible-to-fix-this-but-dont-hold-your-breath-34865/

Here’s How Much Cash You Need Stashed if a National Emergency Happens

Here’s How Much Cash You Need Stashed if a National Emergency Happens

Jaime Catmull   Sun, April 10, 2022   GOBankingRates

You've probably heard time and again that it's important to have a rainy day fund set up "just in case" something unexpected were to happen. But we're now at a time when having an emergency fund is more vital than ever.

The coronavirus pandemic was a prime example of how something unexpected can have devastating effects on the economy at large and on an individual level, too. While we all hope the worst of it is over, here's how to be prepared in case it's not -- plus how to set up a fund for unexpected future national emergencies. 

Why You Need a National Emergency Fund

Part of being prepared for any contingency, big or small, is having a reserve of emergency cash at your disposal at all times. When you can't rely on accessing your funds electronically, you'll need some legal tender to buy food, gas or other necessities.

"Whether it's Mother Nature or some other disaster out of your control, you always want to be prepared by having some emergency cash on hand," said Annalee Leonard, an investment advisor representative and president of Mainstay Financial Group. "Banks and ATMs may not be up and running for days after a strong storm. I recommend my clients have three to five days' worth of spending money, just in case."

How To Decide How Much To Save

To decide how much to save for an emergency fund, you'll need to ask yourself a couple of questions:

How much will I need for an extreme catastrophic event?

How much can I afford to save?

"It's wise to have a small amount of physical cash at home for the truest of emergencies when banks are not operating," said Priyanka Prakash, managing editor at Fit Small Business, a company that finds the best small-business software, services and financing options.

Aim To Save $2,000

"Individuals should be prepared to pay for essential or non-discretionary expenses out-of-pocket," said Brett Tharp, CFP and financial planning education consultant at eMoney Advisor. "Temporary lodging or shelter, fuel, food, water and necessary medications fall into this category. This will differ for each person depending on their level of preparedness or perception of how likely a catastrophic event might be.

"Two-thousand dollars should cover those costs. "The rule of thumb I advise my clients is to keep $1,000 to $2,000 in cash in case banking operations are shut down due to a national emergency or catastrophe," said Gregory Brinkman, president of Brinkman Financial in Tulsa, Oklahoma.

There's No 'Magic Number' for How Much To Save in Your Emergency Fund

Despite these suggestions and what some other experts might advise, though, there's no magic amount you should have nestled away in your emergency fund. The answer for how much you should save for an emergency situation is that you should do what feels right to you.

No matter the amount, an emergency fund is absolutely necessary — so make it a priority to build one. Even if you can't afford to save much, it's better to save something rather than nothing, Prakash said. So if you can only afford to set aside $1,000 for an emergency fund, that's better than not saving at all.

The Cost of an Emergency Kit

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