3 Things NOT To Ask Your Financial Adviser To Do For You

‘We cannot do that.’ 3 Things NOT To Ask Your Financial Adviser To Do For You

Alisa Wolfson   Sun, May 1, 2022,

Financial planners can be integral to your financial success, but you shouldn't cross certain lines.

A financial adviser can do a lot of things — provide advice to help you manage your finances, execute trades on your behalf, create holistic financial plans based on your short- and long-term goals. But plenty of clients ask them to do more than that. 

Grace Yung, a certified financial planner at Midtown Financial Group, says she’s had clients ask her to log into their accounts at other institutions. “I appreciate the trust, but we cannot do that for clients. We cannot have access to client passwords at other institutions or even share passwords within our firm,” says Yung.

Along those lines, you can’t ask your broker to do something called “selling away,” in which a broker sells you securities that are not held or offered by the brokerage firm that employs him or her.

Asking your financial adviser for legal advice is another no-no, unless he or she is also an attorney, says Arielle Jacobs-Bittoni, chartered financial analyst at Refresh Investments. She’s had clients ask about estate planning issues, but because she’s not a lawyer, she’s ill-equipped to provide advice. Instead, clients should seek out an estate planning attorney who can handle the legal aspects of financial planning.

You also can’t ask them to do something that would violate their ethical oath, adds Jacobs-Bittoni. CFP professionals agree to be a fiduciary by always acting in the best interest of their clients, so “you can’t ask them to act in a way that may cause a conflict of interest,” says Jacobs-Bittoni.

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

https://www.marketwatch.com/picks/we-cannot-do-that-3-things-not-to-ask-your-financial-adviser-to-do-for-you-01636397634?siteid=yhoof2

8 Statistics That Reveal Major Money Problems in the US

8 Statistics That Reveal Major Money Problems in the US

Cynthia Measom   Wed, April 27, 2022,

When it comes to financial literacy, many Americans are struggling. From carrying perpetual credit card debt to taking out payday loans with astronomical interest, people are making bad decisions daily that contribute to their financial detriment.

To uncover just how serious the issue is, GOBankingRates researched statistics from the 2021 Financial Literacy and Preparedness Survey, which was conducted online within the United States by The Harris Poll on behalf of NFCC and Wells Fargo, as well as other statistical sources.

Here Are Eight Concerning Statistics On Financial Illiteracy In The U.S.

62% of Americans Say They Are Worried About Their Finances

According to the NFCC/Wells Fargo survey, the majority of Americans have financial concerns and many are experiencing increased worry about meeting basic household expenses, making debt payments on time, having enough money for emergencies or being able to save for future goals than they were a year ago. Of course, inflation will only serve to increase their worries.

Only 44% Follow a Budget

Following a budget allows you to track and control your money, which can lead to greater financial success. However, less than half of Americans have a budgeting plan in place, according to the NFCC/Wells Fargo survey.

38% of Households Carry Credit Card Debt From Month to Month

According to the NFCC/Wells Fargo survey, although half of Americans are carrying credit card debt, 38% are carrying the same amount of debt from month to month.

"Too often people will use credit cards to pay for everything but neglect to pay off the balance before the end of the month," said consumer analyst Julie Ramhold with DealNews. "In some cases, this is their only option to buy things like food or pay for utilities. But in many cases, people look at credit cards as a buy now, pay later option -- that is, buy whatever they want now and then just pay off the debt over time."

She added, "In truth, the better thing to do is if you're using the credit card for purchases that aren't necessities, make sure you have the funds to pay for them otherwise; then you can put them on your card but pay off the balance before it has a chance to accrue interest."

23% Say They Are Not Saving for Retirement

While two-thirds of the general population are saving for retirement, over one-fifth are saving nothing, according to the NFCC/Wells Fargo survey.

Retirement is the last dog at the bowl for most people," said Cyndie Martini, CEO and founder of Member Access Processing. "Because retirement always seems to be in the far distance, it is the last thing that most people save for. Other expenses take precedent over saving for retirement. At the same time, costs for the retired, including the cost of medical insurance and retirement communities is rising."

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

https://news.yahoo.com/8-statistics-reveal-major-money-210002934.html

10 ‘Normal’ Money Habits That Are Actually Harmful

10 ‘Normal’ Money Habits That Are Actually Harmful

Andrew Lisa  Wed, April 27, 2022

Just because you get into the habit of doing something doesn't mean it's good for you -- and gnawed-on fingernails and cracked knuckles aren't the only proof. Some of the worst habits that tend to die the hardest show up not only on people's bodies but in their financial lives as well.

From the way people budget to the way they spend, save and invest, minor sins are easy to come by. Like so many bad habits, some people don't even realize they're making money-related mistakes at the time. Or they realize it but find it hard to change.

The following money habits have been normalized over the years but are still just as harmful as ever.

Not Following a Basic Budget

In 2020, a survey from Intuit/Mint found 65% of people had no idea how much money they had spent the month before. Perhaps unsurprisingly, younger adults were the least likely to keep track of their spending. No matter your age, your financial goals both big and small will die on the vine if you don't know how much money you're bringing in, how much you're spending, where you're overspending and the percentage of income that you're saving -- if you're saving at all.

Ignoring Your Credit Until It Matters

Despite the widespread availability of free apps such as Credit Karma and free credit trackers that come with most bank accounts and credit cards, plenty of people still ignore their credit for most of the year. They check in only when they're up for big purchases or loans, often finding that their scores are a whole lot lower than they had imagined or that there are mistakes on their reports that they could have corrected before the damage was done.

The truth is your credit is important 365 days a year. It affects the rates you'll pay, not only for mortgages and auto loans, but for things like insurance and utilities. It also impacts whether employers see you as hireable or whether landlords will take you on as a renter.

Knowing what's in your credit report is the first step to managing your credit. By tuning out, you're accepting a more expensive life.

Carrying a Balance on Your Credit Card

According to Lending Tree, a little more than half of America's credit card users carry a balance on their accounts -- which is exactly what banks want them to do. When you pay your statement balance in full every month, you pay only as much as is needed to cover your purchases.

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

https://news.yahoo.com/10-normal-money-habits-actually-200013138.html

A Bank Teller Reveals Secrets and Debunks Banking Myths

A Bank Teller Reveals Secrets and Debunks Banking Myths

Katherine Muniz   Updated: Apr 28, 2022

Bank secrets revealed and debunked by an unnamed bank teller at a major bank on bank practices, teller capabilities, and consumer money moves.  We all know what a visit to a bank branch will bring. Average consumers have no clue what goes on behind the glass windows of their bank's local branch.

We talked to one bank teller from a major bank and he debunked some myths, as well as shared a couple secrets of his own.

Does it really take three days for checks to clear and post to your account?

No -- It all depends on a person's credibility and the type of check it is. For instance, payroll checks usually clear right away, and so do checks deposited by customers with an ample amount of cash in their account. Sometimes a portion of the check clears right away, and the rest clears in the next few days. The teller we spoke with said he has no knowledge of how the percentage is determined, as it is set by a system.

Debit card loss and theft are not as well-protected as credit card theft.

True. Some banks will cover all the fraud-ability charges, such as Bank of America. However, typically the protection is less than that of a credit card, so if you're concerned, contact your bank and inquire about all the loss and theft protection coverages available to you.

The only bank staff that can work at the teller window are tellers.

False -- It all depends on the bank and their protocol. For instance, at this particular teller's bank, assistant managers have to work at the window but that doesn't mean they always do if they're feeling lax... particularly at his branch. Another example is at Chase, where bankers are cross-trained as tellers.

The bank is allowed to pull money from your deposit if you owe overdraft loans or fees.

True.

Calling a representative or going in person to your branch to resolve a problem will be better than filling out forms online.

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

https://www.mybanktracker.com/banking/faq/bank-teller-reveals-secrets-138688

The Things People Say About Money

The Things People Say About Money

And What to do About It — So Your Voice is Heard

Sherry Parks   Mar 7

 I remember it as clearly as if it happened yesterday. I was right in the midst of my accounting career and was working my way up the ladder. At that point, I had already received several pay increases and promotions.

 I was out shopping with my mom and I don’t remember exactly what we were talking about, but I do remember my mom’s words. She came out with this zinger:  

​“If you can’t live on $25k per year, then something is wrong with you”. Let me tell you, this wasn’t in the 70’s or 80’s.  This was in the 2000’s. A time when the average annual income was between $45 and $50k.

I chose to ignore her statement. I was already making more than double that amount and I wasn’t prepared to share that with my mother. In fact, I was a little bit afraid of telling her.

​What would she expect of me? What would she think of me? What would her judgments of me and my lifestyle become?  This is one conversation that has never left me. Not because it was a big emotional scene. Not because I received specific judgment on me personally. I think it was because I needed to remember that moment.

 I’ve already shared that I made a decision as a teenager that I wasn’t going to live in constant struggle with money. You can read more about that here. I was clear that $25k per year wasn’t enough.   I was determined to feel good about money and that meant that more would have to flow into as well as back out of my life in order for me to have ease with money.  And that decision moved me to a place where what my mom’s personal belief about money didn’t matter. I was secure in my belief that money could and would be easy for me.

 But here’s the thing, we all have family or even friends who say things about money that could potentially keep us stuck.

​Fear of judgement.

Fear of loss of loved ones.

Fear that we won’t fit in anymore.

Fear that we will leave them behind.

 When we hold onto those fears, we do stay stuck. When we listen to what they say and buy into their beliefs, those things can hold us back and keep us from truly experiencing what we want for our money and our lives. Today, I’m sharing a few of my favorite tips for helping you to lean into your own beliefs and create the life you want.

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

https://medium.com/thrive-global/the-things-people-say-about-money-1370963a2fbb

If Money Could Talk - By Greg Habstritt

If Money Could Talk - By Greg Habstritt

 A Powerful Perspective You’ve Never Heard Before –  "If Money Could Talk"

Most people think they know me.   They don’t.  I am not what most people think I am. I am not the paper in your wallet, or the coins that jingle in your purse. I am not quietly sitting in your bank account, hoping to be used one day.  You cannot see me, feel me or touch me. I am an idea. I am energy.

I’m neither good nor evil. I am only what you decide that I am, and I fulfill the role that you create for me.

I don’t care how smart you are, where you live, what you do, or where you come from.  All I care about is your energy.

Your energy decides what thoughts you have, and therefore your thoughts will determine the relationship you have with me.   

I have very simple needs, and simple rules.  I am infinite.

I have no limits, except for those you place on me with your mind. There is no limit to the energy in the world, and because I am simply energy, I cannot be restricted or controlled.

I crave abundance.

I am attracted to those who think without restrictions, who like to think big. When you believe there is enough of me to go around, I am naturally magnetized by that thinking.

I despise scarcity.

Because there is no limit to me, I avoid those who think from a win/lose or scarcity perspective. Those who believe I am in short supply, or difficult to receive, will find that very reality, because I choose to avoid those who think small.

I love value.

What magnetizes me most is the creation of value in the universe. I move to places where value is created, because creation is energy. If you wish to attract me into your life, focus on creating value for others, and I will appear.

I avoid entitlement and complacency.

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

http://museologies.blogspot.com/2011/10/if-money-could-talk.html

The Relative Value of Money

The Relative Value of Money

By Kevin From Financial Panther

There’s a concept that I’ve been thinking about over the past couple of years, especially as I’ve made this transition from a full-time, professional, real job, to a quasi-fake job as a blogger and gig economy worker. It has to do with a concept you could call the relative value of money.

When I think about what that means, it’s basically the idea that money you earn from one activity might be worth more to you personally compared to the money you earn from another activity.

In fact, it might be worth so much more to you that you’ll opt to spend your days earning money in that manner even if it means you’re making less money from an objective standpoint. This concept has really come into clearer focus to me over the past few years and I think it helps explain why I’ve made a lot of the work decisions I’ve made.

One of the weird things I’ve done consistently over the past few years is doing pretty low-level side hustles using sharing economy and gig economy apps. From an objective standpoint, it really didn’t make much sense for me to do all of this stuff.

At the peak of my lawyer career, I was making $300 or more per day from my salary, obviously more than enough to live very comfortably. And yet, even though I made all of this money, I still chose to spend my spare hours doing silly things like delivering food to people on my bike and selling stuff I found in the trash.

The common criticism I’d get was that doing this stuff was a waste of my time. The better use of my time would be to focus on my job and continue to progress in my legal career. Eventually, I could try to become a partner somewhere or just do something to continue to increase my salary, or at least to increase my prestige.

In truth, that’s probably what I should have done, at least if we’re looking at pure numbers. I could obviously make much more money as a lawyer than I could from all of the stupid things I was doing. But the few bucks I made doing my random gig stuff felt so much more valuable and rewarding to me compared to any dollar I earned from my regular paycheck.

The thing I’ve learned to value more and more is control over my life. I suspect that’s something a lot of people on the path to financial independence value too. The money I made from my day job, however, was the exact opposite of control over my life. I had to be at the office at a certain time, do things that other people told me to do, and basically, plan my life around my job. It made me feel trapped.

A dollar might have the same objective value no matter how you choose to earn it. But how you personally value that dollar is another matter. I think that’s worth thinking about.

Thinking About The Relative Value Of Money

One of the podcasts I listen to pretty regularly is Tropical MBA, which I highly recommend you listen to if you’re the entrepreneurial type looking for some help and motivation.

This quote from a recent episode basically hit on exactly what I’ve been feeling over the past few years:

Would you rather be . . . relatively “poor” and own all your time? Or have a job, make decent money, but own none of your time? I’d pick selling cars on Craigslist and making $2000 or $3000 a month living in an apartment doing whatever I want when I wake up any day, any lifetime.

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

https://financialpanther.com/the-relative-value-of-money/

How To Never Worry About Money Again

How To Never Worry About Money Again

The No-Sweat Way to Protect Yourself From Financial Disaster By laura goldstein

Building a bigger rainy-day fund may feel daunting. Start by breaking it down into manageable chunks.

That nagging feeling that a bit of bad luck—a medical emergency or a layoff—could derail your finances is widely shared. A new survey from the American Psychological Association found that 54% of people rated paying for unexpected expenses a very or somewhat significant source of stress.

And people across the income spectrum tend to be underprepared. A Pew Charitable Trusts analysis finds middle-income households typically have the equivalent of 20 days of income to tap, and even high earners have just 52 days. Building a bigger rainy-day fund may feel like a daunting task, given all your expenses and savings goals, but you can start by breaking it down into manageable chunks.

Do It One Essential Expense at a Time

Aim to cover three months of one regular bill, like your mortgage, suggests RBC Wealth Management financial adviser Darla Kashian. Then move on to three months of utilities, then car payments, and so on.

This approach gives you the satisfaction of crossing one more potential problem off your list. Once you’ve hit three months of all essentials, make your new goal doubling your account to get to six months.

Why so long? “When things get rough, your emergency fund enables you to make good choices, where you don’t have to rush into a job you don’t want or dip into a credit card,” says Certified Financial Planner Board consumer advocate Eleanor Blayney.

Get It Out of Your Hands

Looking at your budget may help you find places to trim, but for big savings goals it may be easier and more sustainable to simply stash money away with each pay-check, just as you do with your 401(k), and live on what’s left. Set up automatic deposits to a separate account just for your emergency money.

Any employer that offers direct paycheck deposit can allow you to split the money between multiple accounts. Many banks will also allow you to give your accounts a nickname to match your goal—make this one “emergency” or even “Don’t touch this!” as a little extra reminder of how important this fund is for you.

Make It a Little Bit Inconvenient

To add another speed bump between you and your cash stash, consider opening an account at a bank other than the one you use for your everyday money. Ally, one of MONEY’s Best Bank picks, has a high-yield savings account that doesn’t include a debit card or checking.

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

http://money.com/money/collection-post/3938823/save-money-emergency-fund/

The Ten Commandments Of Personal Finance

The Ten Commandments Of Personal Finance
From The Retirement Manifesto By fritz@theretirementmanifesto.com

Is it possible that there are some basic principles upon which your personal finance journey should be built?  It turns out there are. I’ll warn you in advance – you may not like some of them.  Just as THE Ten Commandments guide us away from our personal nature which is sometimes tempted to do things which seem fun at the time, but lead to long term harm, these “Personal Finance Commandments” can guide you away from doing things which will bring harm to your long term financial goals.

In full transparency, I didn’t come up with the original list.  That honor goes to this article from MoneyStepper, which I just read tonight.  I liked the concept and the guidelines presented so much,  I’ve decided to build on the original article with original thoughts of my own, including the “10 Commandments” title.

 In my quest to “Help People Achieve A Great Retirement”, I think there’s a lot of room to share some of the best concepts I come across in my heavy reading on personal finance topics.  This one’s a good one, and worth my effort to build upon the concept.

Strive to achieve as many of these commandments as you can, and you’ll be well on your way toward financial independence.  Break them, and suffer the consequences.

I.  Keep Your Housing Costs Under 25% of Your Net Income

Personally, I like these “rule of thumb” guidelines to help you decide how much of something you can afford.  When you’re shopping with a realtor, or talking to a banker, they often attempt to “stretch” you to a ratio that’s higher than you should really undertake.  So, look at your last paycheck. 

How much went into your bank account?  If you rent, your rent should be less than 25% of your monthly NET pay (after taxes).  Ditto on your mortgage payment.  If you’re spending more than the 25% “commandment”, consider downsizing, or seek out a job with higher pay.

II.  Keep Your Mortgage Under 2.5 Times Your Annual Salary

Interesting that the first two “Commandments” focus on housing costs.  Appropriate, given the cost of the roof over your head is the highest expense you’ll incur in your personal finance journey.  Manage it carefully, and don’t buy “too much” home.  If you’re making $50,000/year, your home should be worth $125k or less.

III.  Don’t Buy A New Car Unless You’re A Millionaire

I LOVE this one.  Bottom line:  buying a new car is stupid (yes, I said Stupid!).  It depreciates immediately, and it’s expensive. It’s one of the worst personal finance decisions you can make. Don’t “Buy New”! 

After a few months, it’s “just a car”.  Within a few years, if you’re like most people, you’re “itching” for another one.  AVOID the materialism – focus on the function.  My wife and I have bought used cars for years, and paid cash for all but our first one. 

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

http://www.theretirementmanifesto.com/the-ten-commandments-of-personal-finance/

How to Find Your Money ‘Why’

How to Find Your Money ‘Why’

By Katherine Fusco

There are lots of reasons to spend money, some good, some bad, most compelling. Of course, this is by design. Not spending money, though… that’s a trickier thing. The reasons not to spend—or to save, if you’d like to put it more positively—are often vague, rooted in a fuzzy sense of what one should do.

When people are tired or temptations are especially aggressive (hello, holiday season!), the vague I should pay off my debt crumbles in the face of beautiful store displays or delicious scents wafting from strategically open bakery doors.

More than this, advertising often appeals to our sense of self, frequently tying products to concepts or feelings that we truly believe in. How many bath bombs have been purchased on credit cards in the name of self-care? How many unused vitamins and supplements under the name of wellness?

Pink things for breast cancer awareness? Maybe an embarrassment of water bottles and reusable bags under the name of environmentalism, even though the environmental thing would be shopping less overall?

Against all these compelling, ego-supporting reasons to shop, the vague “adulting” calls to save more and spend less don’t stand a chance.

Just as advertisers know to tap into your sense of self through fairly specific identity appeals—Are you a dog-loving hiker? Here’s a four-wheel drive station wagon—you can also meet your own financial needs by developing your own money mantra, or “why.”

The importance of considering our feelings and values when it comes to money has gained traction in the field of economics. As the journal Applied Economics reports, “individualized cultural values measures do indeed explain part of the financial behaviour of households.”

 Becoming more concretely aware of cultural, familial and personal values might thus be an important key to better personal finance.

Here are a few techniques to use for getting in touch with your money “why”:

1. Tap Into Your Core Values

What’s most important to you? Unlike with the next two exercises, you’re allowed to be a bit vague here. You might find yourself naming things like “beauty,” “health,” “community,” “family” or even something grander like “justice.”

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

https://www.success.com/how-to-find-your-money-why/

Risk Is What You Don’t See

Risk Is What You Don’t See

Jan 14, 2020 by Morgan Housel

Harry Houdini was more than an escape artist. Anything that made people gasp interested him and was something he would try. One of his famous tricks was letting big men punch him in the gut as hard as they could. Houdini – an amateur boxer before becoming a magician – said he could flex his muscles in a way that could absorb any blow. The stunt matched what people loved about his escapes: the idea that his body could conquer physics.

One day in 1926 Houdini was resting in his dressing room after a performance when a group of students from McGill came in to visit. One of the students, Jocelyn Gordon Whitehead, asked, “Is it true, Mr. Houdini, that you can resist the hardest blows struck to the abdomen?”

Without warning he then began slamming his fist into Houdini.

Arthur Conan Doyle’s book The Edge of Unknown writes:

Houdini stopped him suddenly in the midst of a punch, with a gesture that he had had enough.

Houdini immediately after stated that he had had no opportunity to prepare himself against the blows, as he did not think that Whitehead would strike him as suddenly as he did and with such force, and that he would have been in a better position to prepare for the blows if he had arisen from the couch for this purpose.

A day later Houdini was doubled over with abdominal pain. His appendix was ruptured, almost certainty from Whitehead’s blows.

And then Harry Houdini died.

The riskiest stuff is always what you don’t see coming.

Risk is complicated, which is why we’re not great at dealing with it. It’s more than just something bad happening. How risky something is depends on whether its target is prepared for it. A big event people have time to prepare for can be handled without much fuss. A smaller one out of the blue can be deadly.

Houdini – who buried himself under six feet of dirt in a straight jacket and dug himself out weeks before he was killed by a student’s jab – learned this the hard way.

It’s also something we should remember when thinking about the economy and our investments.

The biggest economic risk is what no one’s talking about, because if no one’s talking about no one’s prepared for it, and if no one’s prepared for it its damage will be amplified when it arrives.

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

https://www.collaborativefund.com/blog/risk-is-what-you-dont-see/