12 Life-Changing Millionaire Lessons I Learned From Working with the World’s Richest People

12 Life-Changing Millionaire Lessons I Learned From Working with the World’s Richest People

10. December 2022   Financial Imaginer

Over the years, I’ve had the opportunity to meet hundreds of millionaires and learn valuable millionaire life lessons from them first-hand on and off my job as their wealth manager.  While their backgrounds, lifestyles, and fortunes vary greatly, there are some common traits that all millionaires seem to share.

In this blog post, I will share with you 12 life-changing millionaire lessons that I’ve learned from the world’s richest people.  My goal in sharing these lessons is to “inspire” and help you become the best version of yourself and build a path to financial freedom!

Let’s get started:

1. Investing in Personal Growth:

All millionaires invest heavily in themselves and their personal growth. They understand that growing as a person is a foundation for becoming wealthy and successful. Most wealthy people I’ve come across read a lot, meet with others more often, and usually have found ways how to satisfy their interest in many things to grow.

There is no more profitable investment than investing in yourself.

They invest time, money, and effort in their personal growth continuously.

2. Working Harder and Smarter Than the Average:

Successful millionaires usually work much harder, smarter (!) and longer than average people. This doesn’t mean that they sacrifice their time with family and friends or their health, but rather this is how they structure their life — to get more done in less time.

They don’t work for money and status, but to unlock more time and freedom.

A dream does not become reality through magic; it takes sweat, determination, and hard work.

They understand that hard and mostly smart work will take them further faster while they still maintain balance in their lives. They’ve learned to be very efficient, delegate, and automate as much as possible in their doings and focus on where they are needed the most: Putting the rubber on the ground.

3. Taking Bigger Risks:

The Millionaires I’ve served have developed skills to differentiate between good and bad risks. They understand risks are part of life and are not scared of them. They know that taking risks can open up new opportunities for them.

The biggest risk is not taking any risk.

Wealthy people know when to walk away from an investment or situation if it is no longer beneficial. They are smart in calculating their chances and setting themselves up with the right team around them. Success is about smart risk management, not about wild risk-taking.

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

https://www.financial-imagineer.com/12-life-changing-millionaire-lessons-i-learned-from-working-with-the-worlds-richest-people/

When to Use A Cashier's Check vs. Money Order

When to Use A Cashier's Check vs. Money Order

Andrew J. Dehanb   Tue, January 31, 2023

There are a few options when you need a secure way of paying for something. Sure, cash is king, but not everyone feels safe carrying a thick wad around. Cashier's checks and money orders are two of the more secure options for making a payment. Each comes with its own set of advantages and disadvantages. Let's start by defining cashier's checks vs. money orders and going over their individual pros and cons. Consider working with a financial advisor as you decide where to put your money.

What's a Cashier's Check?

A cashier's check is a check issued and guaranteed by a bank or credit union. Unlike a personal check, a cashier's check comes directly out of the bank's funds instead of your checking account. These checks are more secure than personal checks for both parties as they are fully backed by the bank. That makes them great for large purchases, such as closing costs on a house or buying a car.

To get a cashier's check, you'll need the exact amount, your ID and the recipient's name. You'll be able to order one at your local branch or potentially online. You'll need to pay the bank the amount of the cashier's check, plus whatever fees they may charge. Cashier's check fees may be discounted or waived for certain accountholders. If you do a lot of business with a bank or credit union, it doesn't hurt to ask.

Lastly, get a receipt as proof of purchasing the check. You'll be able to use your receipt to track when the check is cashed.

Pros of Cashier's Checks

Great for large purchases: Cashier's checks are best used for purchases over $1,000.

Are more secure than money orders: Cashier's checks generally have more security features than money orders. And while there are cashier's check scams, there are fewer compared to money orders.

Cons of Cashier's Checks

Higher fees than a money order: A cashier's check can cost between two and 10 times more than a money order.

You must have access to a financial institution that will write your check: This can be a problem if you don't have a checking account, have recently moved or are on vacation.

What's a Money Order?

Cashier's Check vs. Money Order

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

https://news.yahoo.com/cashiers-check-vs-money-order-140001962.html   

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Speed Of Time

Speed Of Time 

23. October 2020 Financial Imaginer

Today I’m celebrating my birthday. I’m turning 41. Translated for you: It means I’m now closer to 50 than to 30 and closer to 60 than to 20. At least that’s what I’m thinking about right now. Also, 41 years means I’ve spent now more time living after the year 2000 than before. Hell, just think about it, 1990 is now further away than 2050.

Yes, birthdays get me thinking “about time” every single time. And I like it. Because time flies.

The speed of time is exactly 365.242189 days per year!

Is this fast? Is it slow? Well, that’s where it gets interesting, you see:

It depends!

What’s for sure is this: Time moves forward and forward only.

The past five years I kept thinking of ways how to “slow down” time in my life. We’ve experimented a lot with life and “this time around” I’m happy to write a blog post to share my findings and thoughts with you.

Hope you too can slow down time in your life!

Today is the oldest you’ve ever been.

And the youngest you’ll ever be again.

Five years ago, on my 36th birthday my dad called me. He was 72.

He said:

First: “Congrats, you’ve already reached half my age!”

Second: “You’re catching up!”

Last: “Beware, the second half goes faster…”

Like so many other lessons I could learn from my dad:

This sunk in.

Deeply.

While I appreciate every single day that is given to me, it’s terrifying how fast time actually flies.

Where did all the time go? Tomorrow isn’t promised.

The fair part of it is: It’s the same for everyone.

Nobody has figured out how to stop – or even reverse – time.

Time keeps flying no matter what you do.

Besides eliminating Time Bandits in your life, there are many more things you can do!

Create your own life progress-bar t-shirt at NAS daily, it shows how many % of your life as vs. your life-expectancy have passed already. [no affiliate link]

Time is Relative

The futurist Peter Diamandis once said, “The faster you move, the slower time passes, the longer you live.” At first sight, this quote simply explains Einstein’s relativity theory.

But there’s more to it than meets the eye.

Let’s take the relativity theory apart and apply the findings to enrich our lives!

What does “time is relative” mean? It simply means that depending on the perspective of an observer, the passage of very same amount of time is perceived differently. I fully appreciated this meaning once we started living in Singapore.

Singapore is located almost at the equator. Every day you got about the same amount of sunshine and darkness. Further, every day, year around, the weather will be mostly the same. There is no more seasonality in Singapore as for in places where you take notice of spring, summer, autumn, or winter.

Due to missing seasonality, every day looks and feels the same. Lack of weather stimulating our brains will make perceived time speed up. It will get hard to “archive” your memories according to a season. For me in the beginning it felt like living “out of time”.

While this concept can be well explained with seasonality or the lack of it, it also works with your personal life experience.

Think of it like this: The older you get, the more you’ve experienced life, the less “interesting” or “new” normal experiences or habits will be for your brain. As a result, given no new stimulations, your brain will switch into autopilot and cruise-control through your ordinary life. Your brain zooms out!

Remember when you were a kid, how did waiting for Christmas feel? Waiting those 25 days through December? It took an eternity! On one hand our brain has a relativity function, so let’s say when you’re a five year old, your total accrued life experience is merely (5 x 365) 1,825 days, hence, waiting 25 days translates to a relatively long time as compared to your accumulated total. Once you’re turning 41 like me today, the brain has 14,965 days to put 30 days in relation to.

The older you get, the more you’ve seen and experienced, the easier it will get for your brain to essentially put your life on FASTFORWARD – if you stick to your current habits!

Have you ever watched the movie “Click” with Adam Sandler?

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

https://www.financial-imagineer.com/speed-of-time/

The Eight-State Suicide Pact Is Advancing Quickly...

The Eight-State Suicide Pact Is Advancing Quickly...

January 30, 2023  By Simon Black

By the early 300s AD, ancient Rome’s population was in significant decline.  Modern historians haven’t nailed down a precise number for Rome’s population— and estimates vary— but the clear consensus is that population peaked in the first or second century AD, and then began a rapid fall.

We know the reasons why. Roman citizens were sick and tired of the corruption, inflation, taxes, crime, social decline, constant chaos, etc. and they sought greener pastures elsewhere.

Bear in mind that this was happening at a time when the barbarian invasions had already begun. Every year there were more and more border incursions from the Goths, Alemanni, etc., many of whom stayed and settled in Roman territory.

This is important to understand; even though Rome was gaining population from these migrant tribes, its overall NET population was still declining.

This means that the number of Roman citizens leaving must have been staggering.

But Emperor Diocletian decided to put a stop to all of it, and in the late autumn of 301 AD, he proclaimed his infamous Edictum De Pretiis Rerum Venalium, or Edict on Maximum Prices.

In addition to setting strict wage and price controls on EVERYTHING across the empire (in an absurd attempt to ‘fix’ inflation), Diocletian also ordered for taxes to increase... AND for everyone to be tied to the land.

No one could leave. No one could quit their job. All occupations were made herediatry, so children had to follow their parents’ profession. It was essentially the start of the feudal system.

Naturally Diocletian’s decree did not have its desired effect. Despite the emperor imposing the death penalty on anyone who did not comply, Roman citizens flouted the rules, and the population declined even more.

It’s hard to not think of this story when reading about the nascent suicide pact being discussed between several of the most ultra-progressive, high tax US states.

Earlier this month, the states of California, Connecticut, Hawaii, Illinois, Maryland, Minnesota, New York and Washington each introduced bills to impose state-level wealth taxes on residents.

This is not a coincidence. Politicians are deliberately coordinating with their counterparts in other states to ensure that the legislation passes in ALL of the eight states.

As one state senator put it, they are working together to ensure they don’t “get pitted against each other.”

Heavens forbid there’s actually competition among the states to reduce their tax rates and attract the most productive talent and businesses. That would be unthinkable.

So instead they’re all signing up for a terrible, destructive idea so that they can all be anti-competitive at the same time. It’s genius!

But of course, these people are totally delusional.

These are the states who, like Ancient Rome in the first and second centuries AD, have already been losing a LOT of people.

California has said bye bye to hundreds of thousands of residents over the past few years since the start of the pandemic.

This isn’t a huge number in terms of the state’s overall population. The problem is, though, that a huge percentage of these people fleeing California are wealthy, high-income earners.

In other words, California is losing some of its most valuable taxpayers.

Remember that the top 1% of taxpayers in California pays roughly FIFTY PERCENT of the state taxes. So losing even a few hundred thousand people can be devastating to the state budget.

Ditto for some of the other states who have joined this suicide pact, like New York and Connecticut.

In fact Census Bureau data show these eight states are among those with the fastest declining populations. And those who leave tend to be higher-earning taxpayers. So their state budgets are being gutted.

It’s also clear that the people who leave aren’t going to other high-tax, ultra-progressive states. Californians aren’t leaving en masse so they can live in New Jersey or Illinois.

Instead, they are moving to low tax, low regulation states like Nevada, Idaho, Texas and Florida. And this new wealth tax movement will likely cause an even greater exodus.

Of course, California has a plan for that too. If its wealthier citizens decide to leave, California’s government will simply continue to enforce the tax even AFTER people relocate to another state. Not even Diocletian thought of that!

(Naturally that would be completely illegal, and the State of California’s petty arrogance will be eviscerated by the Supreme Court at some point down the road.)

It’s not just individuals; businesses are also relocating out of these states. A report from the Hoover Institute found that Texas was the number one destination, attracting at least 114 businesses which were previously based in California from 2018-2021.

Obviously this business migration trend is going to have an even deeper impact on California’s state tax revenue.

But, just like Diocletian, they’re willfully taking a bad situation and making it much worse. Rather than simply stop the destructive behavior that’s making everyone want to leave in the first place, the politicians are doubling down and giving people even more incentive to relocate.

It’s hard to imagine that such a level of incompetence could actually be real. And yet it is.

Fortunately this is a very easy problem to solve.

First, it’s important to recognize that, whatever these politicians promise, their so-called wealth tax is NOT just for the ultra-wealthy.

Perhaps at first it will only affect $50MM+ households. But like nearly all taxes, it will eventually find its way down to the professional class, then upper middle class, etc.

Remember that even the original income tax was first meant to only hit the ultra-wealthy.

But soon the thresholds were lowered and the tax brackets expanded to cast a very wide net.

Same with the Alternative Minimum Tax; it was initially passed as a tax on a handful of people. Today it ensnares millions.

Wealth taxes will likely be no different. The tax base will expand, the tax rates will increase, and before you know it, it will be part of your annual tax ritual. Never underestimate the potential creep of a new tax.

Second, also recognize that where you live ought to be a deliberate decision. Obviously everyone has a personal choice to make. But it’s an important decision, affecting everything ranging from potential wealth taxes, to how your children are being educated (indoctrinated).

It makes sense to examine your values and priorities, and then make a decision about the best place to be. Prioritization is important. No place is perfect. No place will tick every single box on your list. But you will likely find somewhere that matches the most important priorities, plus a few nice-to-have’s.

If taxes and freedom are priorities, you might see a significant boost by moving to another state where your values are shared.

There’s also the possibility of moving abroad, which can often have an even larger impact on lifestyle.

And although US residents are taxed on their global income, you can use the Foreign Earned Income Exclusion to make $120,000 in 2023 without owing taxes to the US. When you double that for married couples, and add in the housing benefit, you’re at roughly $250,000+ in nearly tax-free earnings.

You could also consider going to Puerto Rico— a US territory that sets its own tax rates.

In Puerto Rico you could cut your income tax rate to 4% and your capital gains to 0%. Those who qualify, and meet some other conditions, will owe nothing to the federal government. In many cases you don’t even have to file a federal return anymore.

Even if you’re not ready to go... or you have certain constraints in your life preventing a move at this time, it at least makes sense to consider where you might go just in case you need to make that decision down the road. Do the research and analysis now. It will make life much easier in the future.

To your freedom,  Simon Black, Founder  Sovereign Research & Advisory

https://www.sovereignman.com/trends/the-eight-state-suicide-pact-is-advancing-quickly-145533/

Price and Value

Price and Value

February 2022  Financial Imaginer

When it comes to price and value, most people think that they are one and the same.

This could not be further from the truth.

In this blog post, we will discuss why there is always a difference between price and value, and why this is so important in the world of business. We will also cover how different markets work, and how you can become a better investor by understanding this concept.

A fool knows the price of everything and the value of nothing.

Two Sides of a Coin

Did you ever wonder why people transact and exchange goods, services, and work at a certain price? Who gets to decide how much something is worth? Why do we even have price tags in the first place? If price and value were the same, then it would be easy to know what something was worth.

Price is just one of the factors to consider when evaluating value.

For a better understanding of how people determine price and value, we got to look at some examples that show why price and value are not always the same thing. This will lead us to the concept of supply and demand.

Trust me, understanding these concepts will help you make better decisions in your life as an investor, an employee, or a business person.

Price is what you pay, value is what you get.

We know that markets exist because there are always buyers and sellers ready to transact if the price is acceptable to both sides. This creates supply-and-demand dynamics where prices fluctuate based on factors such as scarcity or desirability. Prices always aim to find an equilibrium where the quantity demanded by buyers is equal to the quantity supplied by sellers.

This is the so-called macro perspective. However, on a 1:1 basis, it gets more complicated than that. It gets very subjective.

How much do you think this tree is worth?

Each and every one of us does have a different view about how much something should be worth.

The intelligent investor is a realist who sells to optimists and buys from pessimists.

In most markets, price and value are not always in line with each other. The price of a good or service is usually based on what the buyer is willing to pay. The value is then determined by what the seller thinks it’s worth. In some cases, like when there is a lot of competition for a product or service, prices may be lower than the perceived value. In other cases (like rare collectibles), prices may be higher than the perceived value.

This creates tons of opportunities for merchants, business people, and investors.

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

https://www.financial-imagineer.com/price-and-value/

Why is it so Essential to Learn Money Skills?

Why is it so Essential to Learn Money Skills? 

August 2021   By Financial Imaginer

Do you know how to take care of money? Did you learn about money in school? From family? From friends? Have you ever wondered how some people seem to have more money than others? Some even have more than they would ever need. This is not just because they’re lucky, it’s because they’ve learned how to take care and manage their money!

If you want to feel confident about your financial future, then there are some things you can learn about money. I can be your teacher. If you invest your time to improve your financial literacy, I promise you here and now this will be one of the best decisions of your life!

This article aims to show you how the first steps to a better life must be to improve your financial literacy. Why earning, saving, and investing more money are the key to a better life.

Are you ready to learn how it all goes together and take control of your financial future?

Get yourself a cup of coffee or tea first.

Let’s get started!

Financial Imagineer merchandise is now available in the shop.

Learn How to Make Money Work for You

The best time to get started learning money skills is when you’re a child, the second-best time is right now!

It’s time to learn how money works and how you can make the most out of it.

Most people work very hard for their money, but why not become the person that makes its money work very hard for yourself? Work on becoming the latter!

Invest in Your Financial Literacy

Before you get started investing into capital markets, invest in your own financial literacy. There are a lot of things you can learn about money. And yes, it isn’t always easy. However, it’s also not rocket science!

What is Financial Literacy?

Financial literacy is the knowledge how money works. It’s the combination of skills and attitudes needed to make sound financial decisions and participate in the full range of money management activities throughout life.

In short: the knowledge and skill to make money work for You!

Understanding how money works helps not only financially but also emotionally.

Once you know how to make money work for you, the next steps will become easier: from budgeting to saving to investing.

The Most Important Investment of Your Life

Would you start playing Monopoly without understanding the rules of the game?

I guess not.

Poor people know how difficult it can be just to pay all their bills each month or how hard it might be to daydream about saving enough money for retirement while staying stuck in the hamster-wheel. Going round and round in circles but not really making any advancements or progress. This is exactly like playing Monopoly only relying on the money you get once you cross Start…

Monopoly; learn how to play before getting started!

Don’t go through life only collecting your stable pay-check every time you pass by “START”, level-up!

But why go through your life if you wouldn’t even play a boardgame this way?

It’s so simple, one of the most important things you should invest in your life is to understand the “rules of the game” – of YOUR life!

The fact that you’re reading this blogpost is an indicator that you’ve got appetite to learn the rules and improve your financial literacy.

Make learning how to money your new priority!

Understand how Money Works in Your Life and how it affects you emotionally

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

https://www.financial-imagineer.com/learn-money-skills/

8 Auspicious Money Traditions to Welcome The Chinese New Year of the Rabbit

8 Auspicious Money Traditions to Welcome The Chinese New Year of the Rabbit

21. January 2023 By Financial Imaginer

The Chinese New Year of the Rabbit is just around the corner and with it comes a time for celebration, family, friends, and of course – Money.  The new year is all about new beginnings, fresh starts, and building your fortune!   My wife is from Taiwan and by now we’ve almost enjoyed 20 Chinese New Year celebrations together in Taiwan, Singapore, and Switzerland. I always enjoy celebrating and immersing myself in Chinese New Year festivities and thought it was time to share and explore these beautiful traditions in the form of a blog post.

Always welcome the new morning with a new spirit, a smile on your face, love in your heart, and good thoughts in your mind.

Let’s dive in together and find out how to bring in good luck and riches during the year of the rabbit!

1. Chinese New Year Red Envelopes

Red envelopes are a special kind of envelope given to children during Chinese New Year. Inside the envelope is money, which is meant to bring good luck and happiness. Red envelopes are also given as gifts to family and friends, as a way to wish them good luck for the coming year.

The amount of money in the envelope is usually small, like some coins or paper money. This symbolizes the sharing of good fortune and is thought to bring even more luck and happiness!

The amount of money being gifted in red envelopes is important! While it’s also “the more, the marrier”, it is believed that giving specific amounts, lucky numbers, can bring more abundance and luck for the receiver. The numbers 8 and 6 are two of the most auspicious numbers.

恭喜發財，紅包拿來 – Gōngxǐ fācái hóngbāo ná lái！

Show generosity by giving away red envelopes with money inside during Chinese New Year celebrations!

2. Spend Money to bring Good Luck and Prosperity

People will often go on shopping sprees to buy new clothes, jewelry and other items in order to make sure they look their best during this time of celebration. Some also look at buying new items as a form of investing: New clothes or jewelry will bring fortune!

The idea behind this comes from embracing the abundance mindset within. This tradition is supposed to work a bit like “money karma“:

The more money you spend, the luckier and wealthier you will get.

Disclaimer from my side: It’s important to keep your spending in check!

Even if it might not be a “good investment”, new items will make you appear renewed, fresh, and ready for a new year full of new opportunities!

3. Pay off Debts before Chinese New Year

People use Chinese New Year as an opportunity to pay off any lingering debts in order to start the new year on a good financial footing. They pay off any existing debts before the Chinese New Year starts.

While you ought to do this before Chinese New Year, some also pay off debts with money that has been gifted during Chinese New Year.

This further symbolizes the new beginning and getting rid of old baggage.

4. There’s no Number 4 during Chinese New Year

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

https://www.financial-imagineer.com/chinese-new-year/

How Much Land Does a Man Need?

How Much Land Does a Man Need?

February 2022 Financial Imaginer

How much land does a man need? This is the question Leo Tolstoy asked himself after realizing that chasing more and more in life would never lead to happiness. In his classic book of the same name, he delves into a tale of a farmer who is rushing through life aiming to accumulate increasingly more land.

The story starts with how a farmer’s wife had a visit from her sister from the big city.

While they were sitting at the table, his wife started to talk – and compare their lives:

“I would not change my way of life for yours, we may live roughly, but at least we are free from anxiety. You live in better style than we do, but though you often earn more than you need, you are very likely to lose all you have. It often happens that people who are wealthy one day are begging their bread the next. Our way is safer. Though a peasant’s life is not a fat one, it is a long one. We shall never grow rich, but we shall always have enough to eat.”

The elder sister from the big city replied:

“Enough? Yes, if you like to share with the pigs and the calves! What do you know of elegance and manners? However much your good man may slave, you will die as you are living – on a dung heap – and your children the same!”

The farmer’s wife shockingly defended herself:

“So what, of course, our work is rough and dirty. But, on the other hand, it is sure; and we need not bow to anyone. But you, in your towns, are surrounded by temptations; today all may be right, but tomorrow the evil one may tempt your husband with cards, wine or women, and all will go to ruin. Don’t such things happen often enough?”

All the time, the farmer was listening and chopped in:

“Busy as we are from childhood tilling mother earth, we peasants have no time to let any nonsense settle in our heads. Our only trouble is that we haven’t enough land. If I had plenty of land, I shouldn’t fear the Devil himself!”

This is just the beginning of this great and valuable story and already all the ingredients for the big question of why “how much is enough in life” is such an essential question are on the table.

Let’s dig in.

1. The Grass Isn’t Always Greener on the Other Side

When we’re not content with what we have, we tend to look at others and compare ourselves with them. “Why does he/she have more than me?” We see the grass as being greener on the other side, but is it?

Chances are that others simply show you their life’s highlight reel but if you take a closer look, you’ll realize that the grass isn’t that green.

“Comparison is the thief of joy.”   Theodore Roosevelt

When we compare ourselves with others, how can we ever be happy? When will enough ever be enough? At some point, you just have to stop looking around and focus on your own life!

 We will always find something to long for – be it material things like money, cars, better clothes or houses – or non-material things like fame, recognition from others, or even love.

But how often do we realize when enough is enough?

How often are we content with what our lives are like now?

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

https://www.financial-imagineer.com/how-much-land-does-a-man-need/

How To Protect Yourself From These 4 Banking Scams That May Target You

How To Protect Yourself From These 4 Banking Scams That May Target You

Gabrielle Olya   Sun, January 29, 2023

There are many benefits to keeping your funds in a bank account, but one of the main reasons many people keep their money at a bank rather than under the mattress is the added security this provides. However, some scammers have come up with clever ways to access your bank account information or to get you to send them money from your secure accounts.

Here’s a look at some of the most common banking scams — plus, how you can avoid becoming a victim.

Phishing Scams

Phishing is a type of scam that targets consumers by sending them an email or text that appears to be from a well-known source, such as their bank. These messages will often ask you to click on a link or enter personal financial information, which the scammer can then use to access your accounts.

For emails, you can often tell these are fraudulent by looking at the sender address. If it is from a Gmail, Hotmail, AOL or Yahoo account or includes a bunch of numbers or letters, you can be certain it is not from your bank.

However, if you receive a text or email that appears to be from your bank but you’re unsure of its legitimacy, it’s best to double-check by contacting your bank directly.

“Locate a number for the business that you know is legitimate, such as the number on the back of your credit card, to determine if they’re the ones reaching out to you,” said Chip Kohlweiler, senior vice president of security at Navy Federal Credit Union.

Avoid clicking on any links you receive in an email or text message that seems suspicious, and do not provide any sensitive information to the sender.

Some financial institutions, including Navy Federal, do use text messages to verify suspicious purchases. However, those texts will never request personal information,” Kohlweiler said. “Check with your financial institution to see if it offers SMS text banking or mobile alerts — that way you can identify the difference between a real message and a scam.”

‘Vishing’ Scams

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

https://news.yahoo.com/protect-yourself-4-banking-scams-130018963.html

What the U.S. Debt Ceiling Limit Means for Your Finances

What the U.S. Debt Ceiling Limit Means for Your Finances

By  Brian Martucci  January 23, 2023

The U.S. government is in danger of intentionally defaulting on its debt obligations for the first time in its history.

The Biden Administration and the House of Representatives, which is controlled by Republicans and led by Speaker Kevin McCarthy, must agree to raise the country’s legal borrowing limit — known as the debt limit or debt ceiling — by early June 2023. If they don’t, the government won’t be able to fund its operations, and financial markets will absolutely freak out. That, in turn, could have far-reaching (and very bad) consequences for your personal finances.

What Is the Debt Limit?

First, a quick review of what the debt limit is and the situation we find ourselves in today.

The debt ceiling is the maximum amount the United States government can borrow to fund its obligations. It’s currently $31.381 trillion.

The debt limit is set by law. No one can raise it unilaterally, not even the President of the United States. The only way it can increase is through Congressional authorization. That is, Congress has to pass a law saying “We are raising the debt limit from x dollars to y dollars.”

One common misconception about the debt limit is that raising it automatically puts the federal government deeper into debt by authorizing new spending. Were this true, not raising the debt ceiling would be a great way to control the size of the federal government.

In reality, Congress must raise the debt limit so that the government can pay bills it has already agreed to pay: Social Security checks, Medicare reimbursements, veterans’ healthcare, military service members’ salaries, and on and on. Congress choosing not to raise the debt ceiling is akin to a business owner deciding not to pay her employees or a homeowner telling his mortgage servicer to stuff it.

But because this misconception is so prevalent, it’s tempting for politicians to use the debt ceiling as leverage in negotiations over future government spending. That’s what happened in 2011, when House Republicans successfully used the threat of default to get the Obama Administration to agree to spending controls, and what’s happening again in 2023.

In the summer of 2011, the government came within hours of defaulting before White House and Congressional negotiators finally hammered out and passed an agreement to raise the debt ceiling. The mere threat of default spooked financial markets and chilled demand for U.S. government bonds, sending yields higher.

Since a wide range of consumer and business credit products yoke their interest rates to U.S. bond yields, this temporarily increased rates on mortgages, auto loans, personal loans, and more — hitting consumers and business owners right in the wallet.

Why Does the Debt Limit Exist?

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5 Tips To Help You Safely Pass on Your Wealth

5 Tips To Help You Safely Pass on Your Wealth

Andrew Lisa   Fri, January 27, 2023

It’s hard to imagine that anyone looks forward to planning how their stuff will be divvied up after they die. But taking the time to ensure a smooth transfer of wealth could be your final act of selflessness — and your posterity will certainly be grateful for your efforts.

“Having a well-thought-out plan prepared in writing by an estate planning attorney is essential,” said estate planning and wealth transfer attorney Robert E. Kabacy of Kell, Alterman & Runstein, L.L.P. “Without a plan, even though statutes define how an estate is handled, heirs are sometimes left with questions.”

Questions are just the start of what can go wrong if you neglect to make arrangements.

A poorly planned transfer of wealth can saddle your beneficiaries with high fees, unnecessary tax obligations and, worst of all, foster infighting, resentment and prolonged legal battles among your heirs.

The good news is that a little bit of planning can prevent all of those unfortunate outcomes and enshrine your legacy for generations to come.

If Nothing Else, Write a Will

The most basic tool in the wealth-transfer process is a will, which provides a record of your wishes. Without one, the state — and your heirs — are left guessing.

“A will is used to designate how you want your assets distributed to your surviving loved ones upon your death,” said estate planning attorney Tim Hurban of Hurban Law. “If you die without a will, state law governs how your assets are distributed, which may or may not be in line with your wishes.”

Create a Written Inventory of Your Assets

Every will is only as good as the chronicling of assets that goes with it.

“The single most important thing you can do to insure that your wealth is passed onto your loved ones is to keep an inventory of your assets somewhere,” said Tim Hewson, CEO and co-founder of U.S. Legal Wills. “In your will, you typically refer to ‘my estate,’ and it is the responsibility of your executor to gather up that estate and distribute it to your beneficiaries according to the instructions in the will.”

The problem, according to Hewson, is that executors often have no idea what or where your assets are. That’s why it’s crucial to create a detailed record that includes the information, account numbers, logons and passwords needed to access them.

“A generation ago, our parents may have had two bank accounts and a monthly statement sent to them in the mail,” Hewson said. “Today our assets are distributed all over the place, including in online accounts.”

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

https://news.yahoo.com/pass-wealth-according-experts-120011191.html