You’ve Worked a Lifetime to Build Your Wealth. Here’s How to Keep It!
.You’ve Worked a Lifetime to Build Your Wealth. Here’s How to Keep It!
Michael Torney, CFP®, JD, LLM (Taxation), Senior Adviser Sat, August 20, 2022
The first half of 2022 was one of the worst starts for the S&P 500 since 1970. Many investors saw their portfolios decline by 15% or more during the first six months. On top of that, bonds – usually a safe haven for investors – also experienced a significant decline.
For investors nearing retirement, there is a good lesson here. The skills required to build wealth are different than those required to keep wealth. Just as you had a goal to build your wealth, now you need a goal and skill set to maintain it.
You’ve Worked a Lifetime to Build Your Wealth. Here’s How to Keep It!
Michael Torney, CFP®, JD, LLM (Taxation), Senior Adviser Sat, August 20, 2022
The first half of 2022 was one of the worst starts for the S&P 500 since 1970. Many investors saw their portfolios decline by 15% or more during the first six months. On top of that, bonds – usually a safe haven for investors – also experienced a significant decline.
For investors nearing retirement, there is a good lesson here. The skills required to build wealth are different than those required to keep wealth. Just as you had a goal to build your wealth, now you need a goal and skill set to maintain it.
To accomplish this, everyone needs a plan to address the following:
Their goals for wealth in retirement.
A spending and investment plan.
Executing the plan and adapting to any changes.
The Why of Your Wealth
This first step is the most important one. An individual or couple needs to determine their priorities, including how they will enjoy the wealth they have built. Most people not only want to maintain their current living standard, but also spend money on new activities and exciting adventures while continuing to support their adult children and grandchildren.
Here are some of the common ways people choose to spend their wealth, which will allow us to develop a financial plan to meet them:
Additional travel and vacations.
Contributing to a grandchild’s 529 college education plan.
Donating more money to local charities.
Purchasing a second home.
Leaving a sizable inheritance for adult children and other family members.
Making a Budget, with Room to Spare
With your goals laid out, the second step is developing a plan to pay for these items while also protecting your portfolio. Unfortunately, the trap some wealthy retirees fall into is thinking their assets – even if they have millions of dollars – will sustain them no matter what.
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/ve-worked-lifetime-build-wealth-083005253.html
Future Historians May Call This The ‘Crisis Of The 21st Century’
.Future Historians May Call This The ‘Crisis Of The 21st Century’
Notes From The Field By Simon Black August 22, 2022
In the year 210 AD, after two decades of constant warfare, Roman Emperor Septimius Severus was finally satisfied: he had conquered nearly the entire known western world.
This was the year that the Roman Empire reached its maximum territory-- approximately 5 million square kilometers, stretching from Morocco to Georgia, from southern Scotland to western Iran.
Future Historians May Call This The ‘Crisis Of The 21st Century’
Notes From The Field By Simon Black August 22, 2022
In the year 210 AD, after two decades of constant warfare, Roman Emperor Septimius Severus was finally satisfied: he had conquered nearly the entire known western world.
This was the year that the Roman Empire reached its maximum territory-- approximately 5 million square kilometers, stretching from Morocco to Georgia, from southern Scotland to western Iran.
Plus Rome controlled absolutely everything in and around the Mediterranean. They controlled the Black Sea. They controlled the Nile and Danube Rivers. They controlled the Silk Road.
In short, Rome controlled virtually every known trade route in the world, and this gave them extraordinary economic power.
But it came at great cost: It’s expensive to wage war. It’s even more expensive to maintain a huge empire.
And in order to pay for it all, Septimius Severus resorted to heavily debasing the Roman currency. The purity of the denarius silver coin plunged from 83.5% down to just 55% during his rule.
Severus died the following year in 211, at which point his son Caracalla became emperor after murdering his own brother.
Caracalla was legendary for his cruelty, brutality, and poor decisions. He executed many of Rome’s most productive citizens, doubled tax rates, and debased the currency even further.
Caracalla was eventually slain by one of his own soldiers. But Rome’s string of bloodthirsty, maniacal emperors was just getting started.
By 218 AD, for example, the new Emperor Elagabalus completely ignored the duties of his office because he was so obsessed with his own sexuality.
Elagabalus reportedly offered to give away half of the Roman Empire as payment to any surgeon who could turn him into a woman, and he used to regularly prostitute himself at local brothels around Rome.
He too, was assassinated.
In fact political assassinations were becoming so commonplace in Rome that it was almost remarkable when an emperor died of natural causes.
In 238 AD, for example, Rome had SIX different emperors in a single year, with each plotting the murder of his predecessor.
Throughout the entire third century, in fact, Rome had a total of 35 different emperors. Only one is certain to have died of natural causes. Most were murdered by rivals.
By mid-century, Rome was in full-blown crisis. In fact historians today actually call this period the “Crisis of the Third Century”.
The political turmoil caused deep distrust in institutions; the Emperors themselves were typically corrupt, depraved, incompetent, or all of the above, and Romans lost all confidence in their government.
Moreover, the currency had been debased so severely that inflation was rampant across the empire.
The government was routinely failing to secure its borders, and various foreign tribes began flooding into Roman territory, causing severe disruptions to trade and agricultural production.
Rising powers in the region-- namely the Kingdom of Alemannia-- even began conducting raids in the Empire and directly engaging the Roman military. Rome suffered a number of embarrassing military defeats, shattering its reputation as a strong, invincible superpower.
Oh, and there was also a massive pandemic in the year 249. (Stop me when this all sounds familiar).
It was known as the Plague of Cyprian, and it caused even more widespread economic devastation.
In particular, the pandemic caused major labor shortages, and nearly every industry struggled to find enough workers.
So naturally the imperial government stepped in and started forcing people into government service. They needed more soldiers to enforce their ridiculous edicts, and more tax collectors to steal people’s money. And this made the labor shortages even worse.
Rome was essentially in a period of nasty stagflation. The currency was constantly losing value, prices were rising, and the economy was shrinking.
Trust was at an all-time low, social divisions were extreme, civil war was commonplace, corruption reigned, and people felt like the situation was hopeless.
It was around this time that the Empire literally began to split apart. By 270, in fact, what used to be known as the Roman Empire had actually divided into three distinct regional empires. And it appeared that the once-dominant superpower was no more.
But that’s also when a former soldier named Lucius Domitius Aurelianus became emperor of the new, smaller, regional Roman Empire.
He is known to history as Aurelian, and his top priority upon assuming power was reunifying the Empire.
His military victories were nothing short of astonishing; within just a few years, Aurelian had reconquered nearly all of the Roman territory that had been lost during the Crisis of the Third Century.
He also took steps to reform the currency, heal social divisions, eliminate corruption, and slash the government budget.
Aurelian only ruled for about five years (before he, too, was murdered by rivals). But his actions were so successful in helping to end the crisis that he was given the title Restitutor Orbis-- Restorer of the World.
Rome eventually did fall. But without Aurelian, it would have all probably ended in 270 AD.
In just five years he managed to implement enough reforms to keep the western empire going for another two centuries.
Centuries from now, future historians may look back on this time as America’s “Crisis of the 21st century”.
When you think about it, so far this century the US has endured the 9/11 attacks, the War on Terror, the Global Financial Crisis, a complete breakdown of trust, extreme social divisions, chaos at the border, cancel culture, Big Tech censorship, the COVID-19 pandemic, the rise of China, humiliation in Afghanistan, war in Europe, record high debts and deficits, inflation, stagflation, and much more.
It looks eerily similar to Rome’s Crisis of the Third Century. And I know for many people it seems hopeless. But it’s not.
The 1970s was another extremely dark period in the United States which included stagflation, crime, political corruption, energy crisis, hostages in Iran, and the constant threat of war with the Soviet Union.
It was a horrible time. But nothing unifies voters and focuses their minds on the right priorities like shared suffering.
And so in 1980, voters threw all the bums out and brought in a new government that, within a few years, tamed inflation, cut taxes, reduced the size of government, strengthened the military, and set much better conditions for economic prosperity.
(I’d actually encourage you to watch Ronald Reagan’s brief remarks during his very first press conference in 1981, summarizing his administration’s mission.)
If we’re being intellectually honest, government bears the bulk of the responsibility for most of the problems we’re facing today. So theoretically, a better, more responsible government has the power to arrest the decline and move things in the right direction once again.
And there is substantial historical precedent for this turnaround thesis; Aurelian is just one example.
But it would be a major affront to our basic human dignity to capitulate all responsibility for our lives to politicians. And frankly I think this is a huge problem.
Too often people believe that they don’t have control over their own lives, and that things will only start to improve once the ‘right’ people have been elected.
Sure, it’s possible that a better, reform-minded government may emerge from this Crisis of the 21st Century.
But the reality is that no one needs to wait for an election, or for some politician to ride to the rescue.
Most of us as individuals lack the authority or resources to fix national problems on a grand scale. But we absolutely have the power, and a multitude of tools at our disposal, to set ourselves up for success.
For example, we know Social Security’s major trust funds will run out of money in about 10 years, causing the program to make drastic cuts to its benefits.
But we also have a number of tools available to fix this problem for ourselves-- like setting up a robust retirement structure and channeling side-income into tax-advantaged investments.
We know taxes are on the rise and likely to rise more. But we also have completely legal ways to reduce them.
We may be facing certain domestic risks at home. But there are nearly 200 other countries in the world where we can set up our own personal safe havens.
We can certainly hope the Crisis of the 21st Century ends with voters coming together and electing a responsible government.
But in the meantime, there are countless steps that anyone can take to improve their own lives which don’t require any politician to save the day. Rather, all that’s needed is a little bit of education, and the will to take action. That’s what a Plan B is all about.
To your freedom, Simon Black, Founder, SovereignMan.com
8 Best Financial Lessons My Partner Taught Me
.8 Best Financial Lessons My Partner Taught Me
GoBankingRates Jennifer Taylor Thu, August 18, 2022
Your special someone is an amazing person who has improved your life in more ways than one -- including financially. Maybe you were decent at managing money before you met them, but they helped you become even better or perhaps your finances were a mess until they stepped in.
No matter the situation, you received at least one valuable financial lesson from them that changed the way you view money. Now that you're a more responsible spender, less stingy or better at putting money aside for savings, you'd like to share your experience with others.
8 Best Financial Lessons My Partner Taught Me
GoBankingRates Jennifer Taylor Thu, August 18, 2022
Your special someone is an amazing person who has improved your life in more ways than one -- including financially. Maybe you were decent at managing money before you met them, but they helped you become even better or perhaps your finances were a mess until they stepped in.
No matter the situation, you received at least one valuable financial lesson from them that changed the way you view money. Now that you're a more responsible spender, less stingy or better at putting money aside for savings, you'd like to share your experience with others.
This is great, because your partner's savvy financial advice also can have a positive impact on plenty of other people. Hearing how their advice helped you can inspire others to make changes they've been putting off or didn't even realize they were capable of achieving.
Or, perhaps you're the one who imparted the financial wisdom that changed your partner's life. Regardless, sharing these tips with others -- and listening to money advice from other couples -- is a great way to pay it forward, while also learning a few things yourself.
Ready to get inspired? GOBankingRates spoke with eight people about the financial lessons their partners taught them -- and vice versa. Here's what they had to say.
Investing Can Be Fun
When the pandemic made its debut in 2020, John McGowan, founder at Mandala Financial Advisors, had just launched his own registered investment company.
"The gravity of what was happening weighed on me, as I was investing my clients' hard-won assets," he said. "One day, I walked into my partner's office and discovered he was day-trading stocks that were essentially 'on sale' and whose prices were volatile as all heck."
McGowan said his partner was basing his trading decisions on instincts, instead of fundamentals -- investing small dollar amounts, as a precaution -- and having a great time doing so.
"He taught me there's a reason they call it 'playing' the stock market," he said. "Let's not forget it can be fun even in the most serious of times."
Buy Nice or Buy Twice
To continue reading, please go to the original article here:
https://news.yahoo.com/8-best-financial-lessons-partner-190001244.html
The New Global Digital Currency That Will Shock The Whole World
.The New Global Digital Currency That Will Shock The Whole World
midmessfair Mid Mess Fair 14th Aug 2022
There is a huge international market of both digital products and physical goods. It is very easy to create, print any paper or any digital number software that can called as “money”. The only problem is how can you persuade other to get them accept your idea and your new currency money.
Now let’s look at the current whole banking finance industry to find the loophole, weakness first before finding a real solution, method to defeat it.
The New Global Digital Currency That Will Shock The Whole World
midmessfair Mid Mess Fair 14th Aug 2022
There is a huge international market of both digital products and physical goods. It is very easy to create, print any paper or any digital number software that can called as “money”. The only problem is how can you persuade other to get them accept your idea and your new currency money.
Now let’s look at the current whole banking finance industry to find the loophole, weakness first before finding a real solution, method to defeat it.
Here is the list weakness of the banking industry:
– There is too much fee especially when using bank card for any kind of transactions.
– The international transactions often take 2 to 6% fees, which are too much.
– Lack of privacy, personal information protecting.
Is that possible to defeat all credit debit card company in the online internet world?
Yes, very doable !
In order to have a new global digital currency system that will get accept by the public people, then there are 3 major policies that must be fair and good enough:
1. How the digital money being printed, issued, distributed, managed.
2. How the entire new digital currency system running, operating.
3. How to have a fair exchange rate with the real fiat money.
Technology is not the issue, there are many different way to get the jobs done.
It is also not about centralize or decentralize or anonymous.
The number 1 issue is the currency exchange rate between the digital money with the real fiat money paper (the connection with daily life national government backed money).
The simple answer is have fixed exchange rate for both the seller and buyer, and that fixed exchange rate will have direct link to the national government fiat money rate.
How to use, take the fiat money rate?
You can use the top 3, 4 or 5 highest value currency on the market.
Or the most popular, stable currency on the market.
Example:
Top 3 highest value currencies: Kuwaiti Dinar, Bahraini Dinar, Omani Rial.
Top 5 most using currencies: US Dollar, Euro, GBP, CAD, Australia Dollar.
Then you can have the average value number of them.
As of this writing in August 2022:
To continue reading, please go to the original article here:
Breaking Points
.Breaking Points
Collaborative Fund Jul 31, 2022 by Ted Lamade
Guest post by Ted Lamade, Managing Director at The Carnegie Institution for Science
Two weeks ago, Mitt Romney wrote an opinion piece in The Atlantic titled, “America Is in Denial”. The piece highlights numerous potentially “cataclysmic events” facing the nation, namely droughts out west, inflation, rising debt levels, profligate government spending, melting ice caps, illegal immigration, and the events of January 6th. Interestingly though, Romney argues that the most significant threat is actually not the events themselves, but rather Americans’ refusal to address them.
The question is why?
Breaking Points
Collaborative Fund Jul 31, 2022 by Ted Lamade
Guest post by Ted Lamade, Managing Director at The Carnegie Institution for Science
Two weeks ago, Mitt Romney wrote an opinion piece in The Atlantic titled, “America Is in Denial”. The piece highlights numerous potentially “cataclysmic events” facing the nation, namely droughts out west, inflation, rising debt levels, profligate government spending, melting ice caps, illegal immigration, and the events of January 6th. Interestingly though, Romney argues that the most significant threat is actually not the events themselves, but rather Americans’ refusal to address them.
The question is why?
Romney believes it is due to our “powerful impulse to believe what we hope to be the case — We don’t need to cut back on watering, because the drought is just part of a cycle that will reverse. With economic growth, the debt will take care of itself. January 6th was a false-flag operation.”
You may or may not agree with Romney’s causes for concern, but for the moment let’s assume that at least a few have merit. If so, why do people so rarely act before a crisis occurs? Why do we instead choose to bury our heads in the sand and hope for the best?
The answer is actually quite simple — no one knows when something will break. It could be imminent or many years away. No. One. Knows. As a result, people tend to push the throttle until it does.
History is full of examples. It’s why governments don’t reform until it’s too late, real estate developers believe there is always room for one more building….theirs, the Federal Reserve is almost always late to “pull the punchbowl away” during an economic expansion, and why so many investors rarely de-risk in the later stages of a bull market.
The trouble is that when things do eventually break, they tend to break more suddenly and quickly than anyone had imagined. It happened to the Soviet Union with the fall of the Berlin Wall in the late 1980’s, real estate developers in the early 1990’s, dot.com companies in the late 1990’s, banks and homeowners in the late 2000’s, energy companies in the mid 2010’s, and many investors over the past year, especially those focused on high growth tech, crypto, and ESG.
During these moments, confidence and clarity evaporates and is replaced by pessimism and doubt. People once viewed as oracles and geniuses morph into scapegoats and know-nothings. Endless opportunities filled with sky high potential become toxic. Hope turns to despair.
To continue reading, please go to the original article here:
20 Ways You’re Throwing Away Money and How to Fix It
.20 Ways You’re Throwing Away Money and How to Fix It
Tweak your habits to keep more money in your pocket.
GoBankingRates -- By Sabah Karimi Aug 2, 2022
You probably don’t realize all the ways you’re wasting money and leaving free money on the table — and these little missteps can add up to big dollar losses. Fortunately, once you’re aware of these bad money behaviors, you can take steps to change them. Making small tweaks to your lifestyle and spending habits could pay off in a big way.
Keep reading to find out the costly money mistakes you’re making — and how to stop making them so you can keep more money in your wallet.
20 Ways You’re Throwing Away Money and How to Fix It
Tweak your habits to keep more money in your pocket.
GoBankingRates -- By Sabah Karimi Aug 2, 2022
You probably don’t realize all the ways you’re wasting money and leaving free money on the table — and these little missteps can add up to big dollar losses. Fortunately, once you’re aware of these bad money behaviors, you can take steps to change them. Making small tweaks to your lifestyle and spending habits could pay off in a big way.
Keep reading to find out the costly money mistakes you’re making — and how to stop making them so you can keep more money in your wallet.
1. Paying Checking Account Fees
It’s your money – you shouldn’t be charged to use it. If you really want to take your money further and save, look for a checking account with no fees so your money stays where it belongs — in your account. An excellent option is the T-Mobile MONEY Checking Account with zero account fees. That’s right, no account fees, including no overdraft fees.
The Un-carrier looks for ways to ease pain points everywhere, and big banks fit the bill. T-Mobile MONEY is built to be mobile-first so you can do all the things you need to do every day with your checking account right from the app – make mobile check deposits, set up direct deposit, pay bills, send a check and pay with a mobile wallet. There are no monthly account fees, no overdraft fees, and no transfer fees, plus no fees at over 55,000 in-network Allpoint® ATMs1 worldwide and no fees from T-Mobile for using out-of-network ATMs.
Not to mention, T-Mobile MONEY customers earn industry-leading interest and can get paid up to two days early with payroll direct deposit2.
2. Trying To Time the Stock Market
When stocks are on the rise, it’s tempting to think you’re smart enough to know when to get in and out to make a killing. But this move is one of the worst mistakes rookie investors make.
Experts say it’s nearly impossible to do this correctly every single time. After all, you need to be right twice — when you get out of the market and when you get back in.
3. Paying Full Price for Gas
Even though gas prices aren’t at their highest, you might not be taking advantage of free ways to drive the bill down further, such as by using rewards credit cards for cash back. Make sure to pay off your balance every month to avoid interest charges or late fees that’ll eat up any rewards you earned. You can also use the GasBuddy app to find the lowest gas prices in your area.
4. Not Using a High-Interest Banking Account
To continue reading, please go to the original article here:
The US Is About To Go Full Louis XVI
.The US Is About To Go Full Louis XVI
Notes From the Field By Simon Black August 8, 2022
On September 3, 1783, after nearly a year of excruciating back-and-forth negotiations, all sides had finally gathered together in Paris to sign a historic peace agreement. It was a pretty important peace deal. Because the Treaty of Paris, as it is now known, is what formally ended the American Revolution, and when Great Britain legally recognized the United States as an independent nation.
The treaty was signed in Paris because France had been a major supporter of the US war effort. And just as soon as the ink was dry, French King Louis XVI ordered his finance minister to prepare an accounting of exactly how much money France had spent on US independence.
The US Is About To Go Full Louis XVI
Notes From the Field By Simon Black August 8, 2022
On September 3, 1783, after nearly a year of excruciating back-and-forth negotiations, all sides had finally gathered together in Paris to sign a historic peace agreement. It was a pretty important peace deal. Because the Treaty of Paris, as it is now known, is what formally ended the American Revolution, and when Great Britain legally recognized the United States as an independent nation.
The treaty was signed in Paris because France had been a major supporter of the US war effort. And just as soon as the ink was dry, French King Louis XVI ordered his finance minister to prepare an accounting of exactly how much money France had spent on US independence.
The result was nothing short of astonishing—more than 1 billion livres.
To put that number in context, the French Treasury’s entire annual revenue only amounted to around 200 million livres.
So they had basically sunk FIVE YEARS worth of their tax revenue fighting someone else’s war.
Granted, Britain was still one of France’s main rivals. And the French did not care for British King George III.
But the American War was simply too costly, and France had already been on very shaky financial footing well before this point.
Louis XIV had nearly bankrupted the country a century before. His successor, Louis XV, had to drastically slash expenses and could barely hang on financially.
Then, in 1774, just prior to the American Revolution, Louis XVI became king at a time that France was rapidly deteriorating.
You’d think that with so much economic turmoil at home that he would have focused on his own national interests… and, in lieu of money, weapons, and ships, he would have instead sent the royal thoughts and prayers to America.
But no. Lucky for the United States, Louis XVI courageously fought the American Revolution down to the very last French taxpayer.
Only after the war did Louis finally take stock of the situation and realize the truth: America was in a much better position. Britain was bruised but still powerful. Yet his own France was nearly bankrupt and desperately in need of cash. Not exactly a win/win.
Louis XVI was King, but his powers were limited; he was beholden to the legislature, called the Estates-General, and he couldn’t simply decree new taxes without their consent.
The King did, however, control the tax collectors. And Louis made sure they had every authority to coerce, harass, and intimidate money out of French citizens.
French tax collectors had the authority to walk right into people’s homes unannounced, conduct surprise inspections to look for hidden wealth, and walk away with whatever money or property they felt would satisfy the peasant’s tax bill.
This is actually a pretty common theme throughout history: governments that are on the ropes routinely resort to plundering the savings of their citizens.
Several ancient Roman emperors, in fact, from Diocletian to Valentinian III, famously sent ruthless tax collectors to harass their citizens and steal their wealth. Several ancient Chinese dynasties did the same thing. So did the declining Ottoman Empire.
Significantly ramping up tax collection efforts is typically a hallmark of an economy and empire in decline.
So we can’t be too surprised that, in its latest legislative bonanza, the US government is setting aside $80 billion for IRS tax collection efforts.
They’re calling the bill, of course, the Inflation Reduction Act. This is pure comedy—the legislation will do no such thing. Why would inflation, which in part was caused by excessive government spending, magically dissipate because of more government spending? It’s ludicrous.
But inflation aside, front and center in the legislation is $80 billion in funding for the IRS, primarily to step up its tax collection and enforcement efforts.
To put that number in context, the annual budget for the IRS is about $12 billion. So, even though the $80 billion will be leaked out over a period of several years, it constitutes a major increase in the IRS budget.
The entire idea is based on a bizarre notion known as the ‘tax gap’. This is the difference between the amount of tax the government collects, versus the amount the government thinks they should collect.
In other words, the tax gap represents how much they believe people are cheating. And the estimates vary wildly, from $100 billion per year to a whopping $1 trillion per year.
Frankly these numbers have always seemed to me like they were completely made up. No one has explained how they actually come up with such estimates. They just barf up some number and pretend that it’s true.
Obviously there are a whole lot of hardcore tax cheats out there, stealing and defrauding the system. But that’s not why the IRS is receiving an $80 billion boost.
This money will go to hire a small army of tax inspectors who will fan out across the nation on a giant fishing expedition that will ensnare countless middle class Americans and small businesses.
Certainly they’ll catch a few cheats along the way. And they may even find a few bucks to close that mythical ‘tax gap’.
But at what cost?
One of the biggest problems with the US economy right now is that it’s so much more difficult to produce goods and services.
Over the past few years, the people in charge have put up endless road blocks and obstacles for small business.
They vanquished the labor market and made it all but impossible to find workers. They destroyed the supply chain. They engineered historically high inflation. They came up with a myriad of costly new environmental and public health rules.
On top of that they constantly create new rules and regulations, many of which step far beyond the government’s authority.
(Last year, for example, the CDC Director decided in her sole discretion that she controlled the entire $10+ trillion US housing market.)
23% of full-time workers today require a government license to do what they do, according to the US Department of Labor. Even being a hairdresser is full of red tape and costly bureaucracy.
This new threat of widespread tax audits is going to be yet another obstruction to Americans’ productivity…. at a time when the economy desperately needs maximum focus.
Inflation is raging because there is a serious, global imbalance between the supply and demand of goods and services.
Specifically, demand is too strong because they doled out trillions of dollars in free money. And supply is weak because nearly every single government policy makes it harder for people to produce (which is yet another hallmark of empires in decline).
Now, on top of everything else, there is a very high likelihood of being harassed by the tax authorities.
Audits are incredibly unpleasant, costly, and time-consuming. Even if all of your accounts are in order and you’ve done nothing wrong, a tax audit monopolizes a tremendous amount of time and money.
It’s debilitating. Say goodbye to actually running your business, growing sales, or spending time with your family on nights and weekends… and say hello to preparing for your tax audit.
Your time will now be spent digging up receipts, finding old contracts, and trying to recall specific details of trivial decisions you made years ago.
Plus you’ll most likely have to pay outside experts to assist with the process, like CPAs and attorneys. And naturally the government does not reimburse you for such expenses. But at least you’ll get to deduct them… from your taxes.
In the end, after endless financial scrutiny, the government may conclude that you owe them a few bucks because of some undocumented deduction from several years ago. So you write them a check for some trivial sum… after having spent countless hours and effort taken away from your productivity.
The cost/benefit just doesn’t compute. And that’s why healthy, prosperous nations don’t engage in such absurd activities. They don’t need to.
Taxes ultimately represent the government’s ‘slice’ of an economic pie. So when a country is prosperous and an economy is strong, the government’s slice continues to grow because the overall economic pie is constantly getting bigger.
But nations in decline don’t see it this way. For them, the pie is shrinking. So they think the only way to increase their slice is to go after other people’s crumbs.
History shows this is absolutely the wrong move. Raising tax rates, inventing new taxes, and recruiting armies of tax collectors only makes the pie shrink even more.
Their efforts, instead, should be focused on making the pie bigger. But they don’t think that way.
Bear in mind this is all brought to you by the same people who are shoveling your tax dollars out the door to Ukraine $50 billion at a time. It’s very ‘Louis XVI’ of them.
All of these trends—the cannibalistic surge in tax authorities, the anti-productive regulations, the economic scarcity mentality—are all hallmarks of an empire in decline.
The situation is NOT terminal. It is NOT irreversible. But it is reason enough to have a Plan B.
To your freedom, Simon Black, Founder, SovereignMan.com
P.S. Looking for solutions to safeguard your prosperity and freedom? Our step-by-step Plan B guides and library of actionable strategies are ON SALE - this week only. Click here to learn more.
https://www.sovereignman.com/trends/the-us-is-about-to-go-full-louis-xvi-36091/
7 Levels of Financial Freedom
.7 Levels of Financial Freedom: How To Work Your Way Up, According to Experts
GOBankingRates Andrew Lisa Sat, August 6, 2022
Whether you’re living to work, drowning in debt, struggling to save, overspending, or existing from paycheck to paycheck, you’re all too familiar with the invisible chains of financial stress. The answer, of course, is financial freedom, but with so many bills and so little money left over at the end of the month, how could anyone get from here to there?
Grant Sabatier — a self-made millionaire and golden child of the FIRE movement — has created a roadmap that he says can bridge the gap between financial servitude and financial independence. There are seven levels, and if Sabatier is right that most Americans are already at the second level, you only have six more rungs to climb.
7 Levels of Financial Freedom: How To Work Your Way Up, According to Experts
GOBankingRates Andrew Lisa Sat, August 6, 2022
Whether you’re living to work, drowning in debt, struggling to save, overspending, or existing from paycheck to paycheck, you’re all too familiar with the invisible chains of financial stress. The answer, of course, is financial freedom, but with so many bills and so little money left over at the end of the month, how could anyone get from here to there?
Grant Sabatier — a self-made millionaire and golden child of the FIRE movement — has created a roadmap that he says can bridge the gap between financial servitude and financial independence. There are seven levels, and if Sabatier is right that most Americans are already at the second level, you only have six more rungs to climb.
Level 1: Clarity
Step one is to assess and clarify. It’s time to take inventory of where you are financially and develop a clear picture of where you’d like to be. That means checking your credit and revisiting your bank and credit card accounts. You’ll also have to do the unpleasant job of gathering your bills and tabulating your monthly expenses.
You do have to do it, but if you keep up with it after that, you’ll only have to do it once.
“In order to take control of your finances during these changing times, as well as get a hold of your spending and investments, it’s important to create a financial plan,” said Radu Tyrsina, CEO and founder of Windows Report and Reflector Media. “To successfully manage your financial progress you need to be able to track your net worth, spending, and investments in order to get a larger view of where you stand.”
Level 2: Self-Sufficiency
When you clear this level, you’re standing on your own two feet. You’ve moved out of your parents’ house and you’re off any public assistance you’d been relying on to get by.
It’s important to note that self-sufficiency and financial independence are two different things. At level 2, you’ll probably be living paycheck to paycheck, struggling with debt, or both, but you’re no longer dependent. Although it might not feel like it, you’re finally in control of your own destiny.
Level 3: Breathing Room
To continue reading, please go to the original article here:
https://news.yahoo.com/7-levels-financial-freedom-way-130121143.html
How To Get Your Finances in Shape in 12 Months
.How To Get Your Finances in Shape in 12 Months
GOBankingRates Jennifer Taylor Fri, August 5, 2022
Whether you’re buried in credit card debt, haven’t started saving for retirement or don’t currently have an emergency fund, you’re committed to turning things around.
Of course, knowing where to start isn’t always easy — especially if you’re planning to work toward several financial goals.
When it comes to which goals to set for the year, you’ll of course need to consider your unique situation. However, Mark Henry, founder and owner of Alloy Wealth Management, a wealth management firm based in Charlotte, North Carolina, shared six common financial objectives to get you started.
How To Get Your Finances in Shape in 12 Months
GOBankingRates Jennifer Taylor Fri, August 5, 2022
Whether you’re buried in credit card debt, haven’t started saving for retirement or don’t currently have an emergency fund, you’re committed to turning things around.
Of course, knowing where to start isn’t always easy — especially if you’re planning to work toward several financial goals.
When it comes to which goals to set for the year, you’ll of course need to consider your unique situation. However, Mark Henry, founder and owner of Alloy Wealth Management, a wealth management firm based in Charlotte, North Carolina, shared six common financial objectives to get you started.
1. Save More Money
No matter how much money you earn, Henry said finding ways to save more money by the end of the year should be your top priority.
“If you make $3,000 a month, and can find a way to save 10% of your income a month for ten years, eventually, even without a raise, you will have one year’s salary in the bank,” he said. “During that time, with compounding interest, you will have five years’ worth of your salary saved.”
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2. Focus On Retirement Savings
When facing competing savings priorities — i.e., saving for your children’s college expenses or saving for retirement — Henry advised putting aside money for your own retirement first.
“A good retirement salary is equal to your working salary after taxes and what money you set aside for savings,” he said. “In most cases, people want to do more in retirement because now they have the time to do the things they’ve wanted to do their entire life, and they need more money to sustain a new lifestyle.”
3. Don’t Let Money Control Your Life
It might sound counterintuitive for a financial goal, but Henry said money should enrich your life — not control it. “Most of us thrive on instant gratification,” he said. “But when it comes to finances, gratification comes when you take control of your life and the power you get when you wake up and realize you have cash in the bank.”
To continue reading, please go to the original article here:
https://news.yahoo.com/finances-shape-12-months-143117526.html
9 Money Moves You Should Make This Week
.9 Money Moves You Should Make This Week
GOBankingRates Jordan Rosenfeld Fri, August 5, 2022
It's easy to let our finances go on autopilot when we have so many other responsibilities and tasks keeping us busy in any given week. Yet finances don't just improve on their own -- getting to a place of financial stability or independence takes attention and conscious steps. Steps that you can make this week can make a huge difference in your financial picture, now and into the future.
Here are 9 money moves you should make this week -- your future self will thank you for it.
9 Money Moves You Should Make This Week
GOBankingRates Jordan Rosenfeld Fri, August 5, 2022
It's easy to let our finances go on autopilot when we have so many other responsibilities and tasks keeping us busy in any given week. Yet finances don't just improve on their own -- getting to a place of financial stability or independence takes attention and conscious steps. Steps that you can make this week can make a huge difference in your financial picture, now and into the future.
Here are 9 money moves you should make this week -- your future self will thank you for it.
Automate Deposits to Savings and Investment Accounts
If you have a savings account and a retirement account that you put money into sporadically or only when it comes in, consider setting up regular automated deposits into these accounts. Not only does this make you less likely to splurge when money comes in, a phenomenon known as "present bias," according to CNBC, it guarantees that these accounts will grow steadily and with minimal effort.
Add To or Plan For an Emergency Fund
It might seem funny to put aside money that you hope never to have to use, but that's pretty much what an emergency fund is. However, the way life is, you're almost inevitably going to have an unexpected payment for something that breaks down, for potential job loss or expenses that crop up related to your children. While expert advice varies on how much you should have in such a fund -- many experts recommend three to six months worth of expenses -- you can start one at any time with any amount of money.
Set a Savings Goal
If you set a saving goal, you're more likely to put money away, according to Investopedia. Even if you aren't sure what you'd like to save toward, consider creating a savings account for such things as vacations, holiday gifts, college funds or just add to your emergency fund. Setting a savings goal can also help you budget better, as you look for ways to squeeze out that amount from your current spending.
Increase Your Contribution to a Savings or Investment Account
If you're currently putting away a minimal amount into savings or investment accounts, consider increasing your contribution and automating it. Particularly for retirement accounts, the more money you put in now, the more money you are likely to earn by the time you actually retire. According to CNBC, increasing your deposit amount by just 1% over 20 or 30 years can make a sizable difference. But you can also pad up savings accounts quickly with even a slight increase in your deposit amount.
Maximize Tax Deductions
To continue reading, please go to the original article here:
The Best Tax Deal in the Eastern Hemisphere
.The Best Tax Deal in the Eastern Hemisphere
Notes From the Field By Simon Black August 3, 2022
One of the most important elements of a Plan B is to legally reduce your tax rate. Depending on where you live, the government routinely confiscates up to half of your hard-earned income.
At best, this money is wasted and squandered— for example, the billions of dollars of military equipment left in Afghanistan, or billions in fraud taken through PPP Covid loans. At worst, it is actively used against you— for example, the Justice Department targeting parents justifiably angry at their local school board.
By finding legal ways to pay less, you do your part to deprive the beast of its power, which feels good and does make a difference. More importantly, you reclaim your own money to do with as you please.
The Best Tax Deal in the Eastern Hemisphere
Notes From the Field By Simon Black August 3, 2022
One of the most important elements of a Plan B is to legally reduce your tax rate. Depending on where you live, the government routinely confiscates up to half of your hard-earned income.
At best, this money is wasted and squandered— for example, the billions of dollars of military equipment left in Afghanistan, or billions in fraud taken through PPP Covid loans. At worst, it is actively used against you— for example, the Justice Department targeting parents justifiably angry at their local school board.
By finding legal ways to pay less, you do your part to deprive the beast of its power, which feels good and does make a difference. More importantly, you reclaim your own money to do with as you please.
We’ve written extensively about Puerto Rico’s tax incentives offering a 4% corporate tax rate for qualifying businesses, and 0% on investment income. As a US territory free to set its own tax laws, it is the best tax-saving option for Americans, who owe taxes to Uncle Sam no matter where they live or earn income in the world.
However, Puerto Rico is not for everyone. Maybe you are on the other side of the world, and don’t want to relocate to Puerto Rico. Or perhaps you don’t like the tropical climate, or the Caribbean lifestyle.
In that case, you might want to consider the Republic of Georgia— the “Puerto Rico of Europe” when it comes to tax savings.
Georgia is located on the intersection of Europe and Asia, but the former Soviet state considers itself European.
A couple years back, to attract foreign investment, Georgia implemented a tax regime that allows certain people to pay as low as a 1% income tax rate on revenue.
Freelancers and digital nomads can often qualify by registering as an Individual Entrepreneur, and applying for Small Business Status.
For example if you’re a blogger, software developer, e-book author, virtual assistant, or create digital products, you’d likely fit the bill.
But there are restrictions. Consultants of any kind, such as tax advisors, do not qualify. Neither do those in the medical, architectural or legal professions, currency exchange operators, or gambling businesses.
And if you’re an employee of a foreign company, this will not work for you either.
But for those who qualify, it typically only takes a couple days to set up. Plus, Georgia makes it easy for foreigners to obtain a one year residency visa in the country.
Americans can certainly use these tax advantages too. Even though you will still owe US taxes, while living outside the US you can take advantage of the Foreign Earned Income Exemption to earn $112,000 tax free in 2022. Plus, taxes aren’t the only savings Georgia offers. We rate the country as “dirt-cheap” in our cost of living index. https://www.sovereignman.com/cost-of-living-index/
But a lot has changed in the region recently. So last week, I caught up with a friend of Sovereign Man’s named Lucas who had moved to Georgia to benefit from the tax savings.
I wanted to know what had changed since we heard from him in a Sovereign Man: Confidential Case Study last year. Since the Russian invasion of Ukraine in February, Georgia has seen a massive influx of Ukrainians and Russians fleeing the war, and Russia repression.
For Georgia, a country of just six million, the influx of upwards of 100,000 residents in the span of a few months caused quite the shock. Lucas said that the most obvious change was rising housing costs.
Many of the Russian newcomers have considerable means and come from more expensive cities like Moscow or St. Petersburg. Since many are still working remotely, they could afford to bid up rent prices.
Lucas and his partner previously found a good deal on an amazing apartment. They paid the equivalent of about $1,000 per month for a 150 square meter (roughly 1,600 square feet) apartment in a great location in the nation’s capital Tbilisi.
Now he has seen smaller, ground-floor apartments with no view go for $2,000 per month.
When Lucas’ apartment was sold recently, he and his partner decided it was time to move on from Georgia, rather than look for another place in an inflated market.
However that’s not because they soured on Georgia. Lucas says he would still recommend it for the right type of person. But it was never their long-term plan to stay in Georgia.
Contributing to the decision was that Lucas felt they did not have a solid Plan B in the event Russian aggression turns southward. Russia already invaded Georgia in 2008, so it is not outside the realm of possibility.
Lucas also felt that it was hard to find good workers, like repairmen and housekeepers, who paid attention to detail and took pride in their work.
In addition, power and water outages were becoming more frequent, (it really does sound like Puerto Rico) which he never experienced his first year in Georgia.
However Lucas also had plenty of praise.
Even with rising prices, Georgia is still extremely inexpensive by Western standards.
He loved that in Georgia, there seems to be an app for everything— you can easily hire people for all sorts of services, such as food/ goods delivery and odd jobs.
When he first moved to Georgia, the tax program was just being established, and there was a lot of confusion and bad advice.
But now he feels the program is well-established. Expats can find good tax and law firms, along with other groups and service providers dedicated to providing support for foreigners.
Lucas feels like Georgia may be the final stop on many digital nomads’ travels, where they decide to finally settle down and establish some stronger ties. He has seen an influx of families, including new moms and dads who can afford to hire a nanny in Georgia.
For the right person, Georgia’s tax and cost of living savings are worth considering.
If you want more information on how to qualify for the 1% tax rate, Sovereign Man: Confidential members can read our detailed Alert on Georgia’s program here, which also includes information about residency.
And you can check out the Case Study we wrote on Lucas’ experience here.
If you want access to these reports, and our full library of Alerts, Monthly Letters, Case Studies, and Black Papers, join Sovereign Man: Confidential today.
To your freedom, Simon Black, Founder, SovereignMan.com