Why is it so Essential to Learn Money Skills?
Why is it so Essential to Learn Money Skills?
August 5 2021 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!
Why is it so Essential to Learn Money Skills?
August 5 2021 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!
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
To continue reading, please go to the original article here:
How to Avoid Financially Destructive Revenge Spending
How to Avoid Financially Destructive Revenge Spending
4. March 2023 Financial Imaginer
It’s no secret that revenge spending has become a [post-pandemic] phenomenon, as people try to make up for what they believe they might have missed out on during the pandemic. People are playing catch-up, trying to even the score on their deferred consumption. However, while revenge spending can be cathartic and temporarily rewarding, it can also have serious financial consequences if not managed properly.
Revenge spending can take many forms:
Such as catching up for yourself, getting even with your partner or family, or simply YOLO’ing your way through life.
How to Avoid Financially Destructive Revenge Spending
March 4 2023 Financial Imaginer
It’s no secret that revenge spending has become a [post-pandemic] phenomenon, as people try to make up for what they believe they might have missed out on during the pandemic. People are playing catch-up, trying to even the score on their deferred consumption. However, while revenge spending can be cathartic and temporarily rewarding, it can also have serious financial consequences if not managed properly.
Revenge spending can take many forms:
Such as catching up for yourself, getting even with your partner or family, or simply YOLO’ing your way through life.
Unfortunately, revenge spending doesn’t just lead to heightened inflation across the globe but it can also lead to serious financial consequences if not managed properly. It could even destroy potential generational wealth in families.
In this article, we’ll explore the implications of revenge spending and provide some tips on how to overcome it.
Are you ready to talk about revenge spending?
What Is Revenge Spending?
Revenge spending is a phenomenon characterized by impulsive and often excessive spending in an attempt to make up for what people believe they may have missed out on.
It is essentially an act of attempting to fill emotional voids with material items or experiences.
Revenge spending can take form in expensive vacations, luxury purchases, extravagant dates, etc., and it has become increasingly popular over the past year [mainly due to the uncertainty caused by the pandemic].
“This attitude can fuel a habit: “revenge spending,” which, as the name says, is shopping to get back at someone or something that wrongs us — like a job layoff, slumping economy, relationship strife, even a global trauma like the pandemic.”
Dr. Juli Fraga
Revenge spending has both short and long-term implications for not just individuals but for entire economies as well.
Inflation anyone?
Revenge spending can contribute to inflationary pressures in an economy [if it goes unchecked] especially when such expenditures are not backed by income stability or wealth.
In addition, revenge spending also has long-term implications for affected individuals.
It can turn into monetary downward spirals!
Post Pandemic Revenge Spending
In the past two years, revenge spending has become some sort of “post-pandemic phenomenon” that has been popping up around the world.
People are indulging in revenge spending on all kinds of things in an attempt to catch up on what they believe to have missed out on during the pandemic.
It’s almost like the big Marshmallow Test unwind!
To continue reading, please go to the original article here:
The Money Lessons Grief Teaches Us
The Money Lessons Grief Teaches Us
By Kara
I recently I lost my grandmother. It’s been a really hard time and it’s really sad. But today, I don’t want to talk about her. I actually want to talk about how my pursuit of financial independence and frugal living has impacted my ability to grieve.
We don’t make space for grief in the U.S.
There is no federal law that guarantees paid time off for bereavement, including funeral time. Right now it’s a sad time, nationally speaking. 1,117,054 Americans have died from COVID. And 72% of Americans either know someone who died from COVID or was hospitalized because of COVID.
The Money Lessons Grief Teaches Us
By Kara
I recently I lost my grandmother. It’s been a really hard time and it’s really sad. But today, I don’t want to talk about her. I actually want to talk about how my pursuit of financial independence and frugal living has impacted my ability to grieve.
We don’t make space for grief in the U.S.
There is no federal law that guarantees paid time off for bereavement, including funeral time. Right now it’s a sad time, nationally speaking. 1,117,054 Americans have died from COVID. And 72% of Americans either know someone who died from COVID or was hospitalized because of COVID.
Several of our peer nations, including France, Japan, and New Zealand all do have guaranteed paid time off for grieving. But here in the United States, only three states guarantee that same thing.
The Fair Labor Standards Act, the foundation of US labor policy, does not require employers to provide paid leave, including vacation time, to convalesce or time to plan or attend a funeral. In the United States, just three states have passed their own policies. Oregon requires employers to provide 12 unpaid weeks of leave, two of which can be used for bereavement after the death of a family member. Illinois offers two weeks of unpaid bereavement leave, but only after the death of a child.
Maryland recently extended its flexible leave act to require that employers who offer paid leave allow it to be used for bereavement. So even the states that do offer this don’t really offer it right. It’s under very specific circumstances that you are allowed to have mostly unpaid time off to feel sad after the loss of a family member or a loved one.
Since I work for myself, I took four days completely off work after my grandma passed. And that’s a luxury that most Americans do not have. It’s a luxury that I have only because of the fact that I do work for myself and the specific ways that I’ve structured my business.
Frugality has helped me have time to grieve
If you’re more of a visual learner or want to hear more, I talk about my upbringing and my road to FIRE in this video:
https://www.youtube.com/watch?v=313sjuPK8NA
To continue reading, please go to the original article here:
What Is a Power of Appointment For a Trust or Will?
What Is a Power of Appointment For a Trust or Will?
Ashley Kilroy Sat, April 1, 2023
Establishing a trust or will is vital to a well-designed estate plan; you might even use both. However, even the best estate plans can't anticipate changes in the future or head off new tax legislation. Fortunately, a power of appointment can help your beneficiary take control of your estate to minimize taxes and keep the property from falling into the wrong hands. Here's how it works.
Consider working with a financial advisor if you need help setting up an estate plan or managing inherited money.
What Is a Power of Appointment For a Trust or Will?
Ashley Kilroy Sat, April 1, 2023
Establishing a trust or will is vital to a well-designed estate plan; you might even use both. However, even the best estate plans can't anticipate changes in the future or head off new tax legislation. Fortunately, a power of appointment can help your beneficiary take control of your estate to minimize taxes and keep the property from falling into the wrong hands. Here's how it works.
Consider working with a financial advisor if you need help setting up an estate plan or managing inherited money.
What Is a Power of Appointment?
A power of appointment is an ability a grantee or beneficiary receives from the grantor or creator of a trust. The power of appointment allows the beneficiary to change a trust in specific ways in specific contexts. For example, a grandparent might place his or her assets in a trust and give their grandchildren the power of appointment over the trust once the grandparent passes away.
In addition, a power of appointment affects irrevocable trusts – which, as the name implies, are not easy to change. Fortunately, a power of appointment means beneficiaries can modify a trust within the boundaries the trust's creator sets.
Types of Powers of Appointment
There are two types of powers of appointment: general and limited. General power of appointment allows the appointed individual to change and direct the trust however he or she wishes. In essence, a general power of appointment gives over complete control of the trust, and the person who has that power can allocate the trust's assets how that person sees fit.
On the other hand, a limited or special power of appointment has boundaries the holders must follow.
Powers of Appointment and Ownership
Depending on appointment type and state law, powers of appointment have varying effects on ownership. For example, your state's laws may allow you to immediately own property within the trust as the holder of a general power of appointment. However, such ownership also exposes the property to your creditors.
Therefore, if you're in debt or serious financial trouble, the ownership you receive through a power of appointment could mean losing the property altogether. That said, state law may prohibit creditors from seizing the property until the power holder dies. On the other hand, a limited power of appointment typically doesn't grant property ownership.
Power of Appointment Tax Treatment
A power of appointment can affect your tax circumstances, even if you don't exercise the power. Specifically, tax law declares that a general power of appointment designated after Oct. 21, 1942, will add the related trust's value to the power holder's estate upon that person's death. As a result, a general power of appointment usually exposes a trust to federal estate taxes.
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/power-appointment-trust-130014490.html
The 8 Most Eye-Opening Money Attractions in the U.S.
The 8 Most Eye-Opening Money Attractions in the U.S.
By Dr Penny Pincher
Some of my most memorable vacations have centered around money — and didn't require spending much of it at all. I had my photo taken next to a $1 million stack of bills at Binion's on a recent trip to Las Vegas. Another memorable experience was visiting the Bureau of Engraving and Printing in Washington, D.C. to see millions of dollars of being printed on the production floor.
If you get excited about money, check out these unique attractions across the U.S.
The 8 Most Eye-Opening Money Attractions in the U.S.
By Dr Penny Pincher
Some of my most memorable vacations have centered around money — and didn't require spending much of it at all. I had my photo taken next to a $1 million stack of bills at Binion's on a recent trip to Las Vegas. Another memorable experience was visiting the Bureau of Engraving and Printing in Washington, D.C. to see millions of dollars of being printed on the production floor.
If you get excited about money, check out these unique attractions across the U.S.
1. U.S. Mint
See the coin manufacturing process up close by taking a free tour at the Philadelphia and Denver facilities of the U.S. Mint. Learn about the process of minting coins from the design to the striking of coins. You'll be able to see how billions of coins are produced each year, and learn the history of coin-making. (See also: Where Are They Now? The Forgotten Dollar Bills (and Coins))
2. Binion's Gambling Hall and Hotel
Get a free souvenir photo of yourself standing next to $1 million in cash at Binion's Gambling Hall and Hotel in Las Vegas. Stop by to have your photo taken and come back about an hour later to pick up your free printed copy. It's pretty incredible to see that much cash up close.
3. U.S. Treasury
The main building of U.S. Treasury is the third oldest building in Washington, D.C. and has been renovated to preserve its impressive Greek Revival architecture. Some historical highlights at the U.S. Treasury include the offices of Salmon P. Chase, Secretary of the Treasury during the Civil War, and the offices used by President Andrew Johnson following Abraham Lincoln's assassination. The stately marble Cash Room has been restored to appear as it was at Ulysses S. Grant's inaugural reception in 1869. You can tour all of these sites by setting up a reservation ahead of your visit.
4. Wall Street
If your travels take you to New York City, check out the attractions of Wall Street, an area of New York City that has been focused on finance for over 200 years. Highlights include:
New York Stock Exchange: On the corner of Wall Street and Broad Street
Federal Hall National Memorial: On the corner of Wall Street and Broad Street
Museum of American Finance: Located at 48 Wall Street
You can take self-guided tours on foot, or there are other tour options available for free or under $40. (See also: 6 Confidence-Inspiring Facts About the Stock Market)
To continue reading, please go to the original article here:
How to Organize Your Tax Documents for Your Accountant
How to Organize Your Tax Documents for Your Accountant
January 7, 2023 Last Updated on March 8, 2023 by Carolyn
Though this post is directed at US taxpayers, It still should be useful to non-US taxpayers but keep in mind that form references such as 1099’s, Schedule C and US tax rules may not apply. Investment advice published here is of a general nature only as disclosed here.
You have received all your tax slips (w-2’s, 1099’s, etc.), and you have records of your other income and expenses, but now what? How do you organize your tax documents so that your accountant can prepare your taxes with ease?
How to Organize Your Tax Documents for Your Accountant
January 7, 2023 Last Updated on March 8, 2023 by Carolyn
Though this post is directed at US taxpayers, It still should be useful to non-US taxpayers but keep in mind that form references such as 1099’s, Schedule C and US tax rules may not apply. Investment advice published here is of a general nature only as disclosed here.
You have received all your tax slips (w-2’s, 1099’s, etc.), and you have records of your other income and expenses, but now what? How do you organize your tax documents so that your accountant can prepare your taxes with ease?
Hiring a Professional Accountant
This may be a bit biased considering I am a professional accountant but hiring a professional to prepare your income taxes can be a really smart idea.
Not only can it save you a lot of time preparing your taxes in lieu of doing it yourself in Turbo Tax or Tax Act ( many people tell me it takes them 8-10 hours to prepare their own returns) but it can actually save you money and give you peace of mind that you haven’t missed something.
It’s a tax professional’s job to know what deductions you are eligible for and to provide tax planning advice to maximize deductions and minimize income tax liability.
A good accountant will get to know you, your family, and your business so they can spot potential deductions whether it be that your eldest has started university and might have tuition credits or perhaps you have undertaken home renovations and can take advantage of some energy credits. Expect to answer some questions and be perturbed if you’re not asked any!
What Your Tax Preparer Needs to Know
How to Organize Your Tax Documents for Your Accountant?
First of all, be aware that just because you’ve hired an accountant to prepare your taxes doesn’t absolve you of any tax preparation work.
Gone Are the Days of Handing over A Box Full of Receipts
Gone are the days of plunking a shoebox full of receipts on your accountant’s desk and saying “call me if you have any questions”. Do this and you will most surely be shown to the door. Continue reading to find out how to organize your tax documents for your accountant.
Most accountants don’t want to see any receipts at all. What they do want to see is a summary of income by type as well as a summary of deductions by type, followed by another page with a detailed list of those same income and deduction items, whose totals ties into the figures listed on the summary.
Income
I recommend listing out all income reported on forms in this order: W2s, 1099-int, 1099-div, 1099-r, SSA-1099, 1099-B, 1099-G and K-1s. Use 2 columns, one for taxable income, and one for federal tax withheld ( if you have state tax withheld add a 3rd column).
If you have rental income or self-employed income list the income and expenses on a separate page and then just list the property address or business name on your summary and cross-reference to the detailed schedule.
Rental Income and Expenses
You need to separately list income and expenses for each rental property you own. Income will include all rent received including last month’s rent deposits but not damage and pet deposits.
Expenses that you might have include:
To continue reading, please go to the original article here:
https://tucandream.com/how-to-organize-your-tax-documents-for-your-accountant/
How to Stop Being Broke: Change Your Money Mindset
How to Stop Being Broke: Change Your Money Mindset
March 14, 2023 Last Updated on March 23, 2023 by Carolyn
How to Stop Being Broke?
Are you tired of living paycheck to paycheck, and having nothing to show for it? You have a good-paying job but still, it’s a financial squeeze to get through the month and make ends meet. You want to stop being broke but don’t know where to start. More than likely. it’s your money mindset that’s keeping you broke. Before you can change your money mindset you need to know what exactly it is.
What is Money Mindset?
Let’s start with what money mindset is not. For many people who hear the phrase “money mindset” an image of a person like Charles Dickens “Ebenezer Scrooge” counting his coins pops into their head, a person obsessed with money. This is not what money mindset is.
How to Stop Being Broke: Change Your Money Mindset
March 14, 2023 Last Updated on March 23, 2023 by Carolyn
How to Stop Being Broke?
Are you tired of living paycheck to paycheck, and having nothing to show for it? You have a good-paying job but still, it’s a financial squeeze to get through the month and make ends meet. You want to stop being broke but don’t know where to start. More than likely. it’s your money mindset that’s keeping you broke. Before you can change your money mindset you need to know what exactly it is.
What is Money Mindset?
Let’s start with what money mindset is not. For many people who hear the phrase “money mindset” an image of a person like Charles Dickens “Ebenezer Scrooge” counting his coins pops into their head, a person obsessed with money. This is not what money mindset is.
Money mindset is your personal relationship with money; how you feel about it, your beliefs about money, and its role in the world.
Believe
Believe..positive thoughts will yield positive outcomes (image by Nini kvaratskhelia of Unsplash)
Your money mindset is somewhat akin to the law of attraction, how you feel and relate to money will dictate whether you have no money, just enough money, or an abundance of money. Being an extreme left-brain type I’d love to say the path to financial success is to simply work hard and spend less, but sadly this is not the truth, money mindset comes into play and it’s amazing how much it controls the outcome.
Different types of Money Mindsets
Scarcity Mindset VS Abundance Mindset
I’m sure you’ve noticed that some people are inherently spenders while others are savers. These spending habits aren’t related to having an abundance of money or lack thereof, they are a reflection of that person’s individual money mindset.
There are basically two basic types of money mindsets: scarcity mindsets and abundance mindsets. These can be further broken down into different sub-types. Do you identify with any of the following scarcity mindsets? Don’t worry, identifying the problem is the first step in your journey to stop being broke.
Scarcity Mindsets
Scarcity mindsets are based on the belief that there are limited resources in the world, and if someone takes more, you’ll get less. This mindset cultivates fear, jealousy, and selfishness.
I Have Enough Mindset
This is the mindset; “I’m comfortable with what I have. I can pay my bills, I have a roof over my head, why do I need more?”
This kind of mindset is dangerous, it’s a mindset of avoidance. You will never have more than enough and the loss of a job, or a sudden emergency expense, can push you over the edge where you don’t have enough.
Money more than likely causes you stress after all you believe, “ money is the root of all evil”.
Money Grows on Trees Mindset
My husband used to justify additional expenses by saying “I’ll just shoe another horse” (he was a horseshoer). The problem is did he really just shoe another horse? No, he didn’t actively go out and look for another horse to shoe. If not reined in, he had a habit of spending every dollar twice.
This is the “money grows on trees” mindset, I can always earn another dollar so it’s OK to spend it today. It can also be considered a debt mindset or a spenders mindset. You try to buy happiness, and instead, end up with debt and stress.
This mindset will most likely get you into a lot of financial trouble.
“Never spend your money before you have it.” –Thomas Jefferson
To continue reading, please go to the original article here:
How To Be Proactive About Protecting Your Savings Account
Banking 2023: How To Be Proactive About Protecting Your Savings Account
Heather Taylor Wed, March 29, 2023
With recent bank failures headlining the news cycle, many customers might be worried about their funds. The good news is there is a lot of protection provided to banking customers, no matter the dollar amount of your financial assets. Here are a few proactive steps you can take to protect your savings account and insure your deposits.
Review FDIC Coverage and Resources
Banking 2023: How To Be Proactive About Protecting Your Savings Account
Heather Taylor Wed, March 29, 2023
With recent bank failures headlining the news cycle, many customers might be worried about their funds. The good news is there is a lot of protection provided to banking customers, no matter the dollar amount of your financial assets. Here are a few proactive steps you can take to protect your savings account and insure your deposits.
Review FDIC Coverage and Resources
You might have noticed the fine print for your bank states it is FDIC insured. What does this mean?
Glen Goland, CFP and senior wealth strategist at Arnerich Massena, said FDIC (Federal Deposit Insurance Corporation) coverage has ensured depositors for 90 years that their funds would be available. This is regardless of what is happening in the financial world or to one’s bank.
FDIC coverage applies to up to $250,000 in deposits. This is per depositor, per insured bank. Different coverage amounts are afforded to trusts and other legal entities.
For those who want to insure their deposits, Goland recommends visiting FDIC: Resources. The resources page provides a listing of ownership categories and applicable coverage amounts. Goland said this should give banking customers a sense of how much coverage they have and how much may be outside this coverage and at risk.
Open Accounts With More Institutions or Put Assets in an Investment Portfolio
There are a few moves banking customers can make if they are holding more than $250,000 in bank deposits.
Goland recommends opening accounts with multiple institutions. This can help keep deposits under the $250,000 threshold. Banking customers also can look into using a Cash Management Account (CMA), which functions like a traditional bank account but spreads your deposits across several partner banks for additional protection.
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/banking-2023-proactive-protecting-savings-190439034.html
I Love How Everyone Pretends The Bank Crisis Is Over...
I Love How Everyone Pretends The Bank Crisis Is Over...
March 29, 2023 Simon Black Sovereign Man
Practically on cue, politicians began their public hearings yesterday about the recent banking crisis.
This was so predictable; every time there’s a major crisis, Congressmen book a committee meeting to express their shock and outrage. They pass new laws to prevent a future crisis. Then their new laws fail to work properly, so they hold another public hearing to express more outrage.
This is the cycle of political problem solving, and yesterday was no exception.
I Love How Everyone Pretends The Bank Crisis Is Over...
March 29, 2023 Simon Black Sovereign Man
Practically on cue, politicians began their public hearings yesterday about the recent banking crisis.
This was so predictable; every time there’s a major crisis, Congressmen book a committee meeting to express their shock and outrage. They pass new laws to prevent a future crisis. Then their new laws fail to work properly, so they hold another public hearing to express more outrage.
This is the cycle of political problem solving, and yesterday was no exception.
The Senate Banking Committee summoned key officials from the Federal Reserve, FDIC, and US Treasury Department. And the tone was quite angry.
Senators were flummoxed that their thousands of pages of banking legislation had once again failed to provide adequate protection to the US financial system. And they were looking for someone to blame.
This, too, quite predictably, fell along partisan lines. The people on the left somehow found reason to blame everything on Orange Man, while describing bank regulators as “gutsy” and “courageous”. It was bewildering.
Most absurd was how the officials in the hot seat (who, again, represent the primary bank supervisors in the United States) managed to avoid any culpability whatsoever.
The Fed’s Vice-Chairman for Banking Supervision admitted that his agency’s supervisors had rated SVB as a poorly managed bank. And the Fed was further aware of several material weaknesses in SVB’s risk compliance.
They acknowledged that they had advanced knowledge of the banks’ problems.
They acknowledged they should have done something about it. They acknowledged they had the tools and authority to do something about it.
Yet they did absolutely nothing… and somehow ended up being praised as gutsy and courageous.
It’s natural to blame the bank executives for making such idiotic decisions with their customers’ money. But culpability is not mutually exclusive. It’s not either/or. And the regulators had a major role to play in this crisis.
Not only did they escape culpability at yesterday’s hearing, but the regulators even managed to pat themselves on the back for their swift and decisive response to the crisis.
After SVB’s failure a few weeks ago, government officials invoked what’s known as the “systemic risk exception”. This exception essentially gives them sweeping power to deal with a crisis by whatever means necessary.
And all the key officials unanimously agreed that SVB, First Republic Bank, etc. posed systemic risk, and that justifies the massive bailout response.
Isn’t it interesting, though, that “systemic risk” only seems to apply to banks?
You never heard these officials say that baby formula shortages pose systemic risk. Or that inflation itself is a systemic risk. Or that dwindling US oil production is a system risk.
Yet whenever the banks and their somnambulant regulators fail, they call it “systemic risk” and pull out all the stops to save them.
Energy companies, on the other hand, which produce the very thing that all economic activity requires, are tossed out in the cold and demonized at every available opportunity by the President of the United States. It’s bizarre logic.
The biggest falsehood of yesterday’s hearing, however, was the continued insistence by all that “our banking system is strong and resilient”. Coincidentally they presented zero evidence to support that assertion.
In fact most evidence would support the opposite conclusion-- that there are still a number of major problems in the banking system.
The FDIC itself reported that banks across the US have a total of $620 billion in unrealized losses; this is due primarily to the steep decline in bond prices, which are a result of the Federal Reserve’s aggressive interest rate increases.
And bear in mind that the FDIC’s estimate was before the most recent rate hikes. So the updated estimate on unrealized losses right now is most likely higher than $620 billion.
But risks in the banking system go way beyond these unrealized bond losses.
Commercial real estate is an obvious one; Fed data show that banks across the US have loaned out nearly $3 trillion of their customers’ money against commercial property, including office space. Other estimates go up to $5.5 trillion including commercial mortgage-backed securities.
But thanks to new, pandemic-related remote work policies, companies across the US are using less space.
Moody’s Analytics recently reported office utilization rates at roughly 50% of pre-pandemic levels based on security-badge swipe data at office buildings.
Workers simply aren’t showing up to the office like in the past, and office occupancy rates have been steadily deteriorating as a result.
Office vacancy now stands at 12.5% nationwide according to the National Association of Realtors. That’s about a third worse than in 2019.
To make matters worse, the economy is slowing, which will likely trigger additional cuts in office space.
All of this is bad news for banks. They have trillions of dollars of exposure to a rapidly declining commercial real estate market, so even a small increase in loan defaults could spark another panic.
The Wall Street Journal recently reported that estimates of total unrealized bank losses right now, including commercial loans, is a whopping $1.7 TRILLION. That’s the vast majority of all bank capital in the United States… so this is still an enormous problem.
But everyone keeps playing the same chorus again and again: “the banking system is strong, the banking system is strong.”
Even sophisticated Wall Street investors have joined the sing-along, given that bank stocks are once again on the rise.
As of this morning, shares of financially uncertain banks with enormous unrealized losses are now trading at fairly rich, double-digit valuations as measured by Price/Earnings and Price/Free Cash Flow metrics.
(Meanwhile, valuations of high quality, well-managed real asset businesses in the energy, mining, agriculture, and productive technology sectors are tiny by comparison.)
Everyone seems happy to close their eyes and pretend that the crisis is over despite so much evidence to the contrary.
To your freedom, Simon Black, Founder Sovereign Man
https://www.sovereignman.com/trends/i-love-how-everyone-pretends-the-bank-crisis-is-over-146615/
How The Glorification Of Struggle Is Both A Symptom And Cause Of Financial Trauma
How The Glorification Of Struggle Is Both A Symptom And Cause Of Financial Trauma
Addressing the "Got It Out The Mud" Mindset Rahkim Sabree Mar 17
Recently I was asked for feedback on the ‘got it out the mud’ mindset and how that ties into financial trauma.
See nepotism: - nep·o·tism - the practice among those with power or influence of favoring relatives, friends, or associates, especially by giving them jobs.
Somehow the devaluing of credibility, experience, and expertise of others is easier when we know that they had help. We hear the stories of those who received a loan, an inheritance, or were put in a position to be successful via education or some role at a company.
How The Glorification Of Struggle Is Both A Symptom And Cause Of Financial Trauma
Addressing the "Got It Out The Mud" Mindset Rahkim Sabree Mar 17
Recently I was asked for feedback on the ‘got it out the mud’ mindset and how that ties into financial trauma.
See nepotism: - nep·o·tism - the practice among those with power or influence of favoring relatives, friends, or associates, especially by giving them jobs.
Somehow the devaluing of credibility, experience, and expertise of others is easier when we know that they had help. We hear the stories of those who received a loan, an inheritance, or were put in a position to be successful via education or some role at a company.
My story is not unique. The odds in so many instances have been statistically against me.
I’m the product of two teenage parents
I grew up experiencing poverty
My parents didn’t have a college education
I was less than one degree of separation from gang violence
So when *I* discuss poverty and overcoming, I’m telling the story of my life not to glorify it, but to demonstrate what’s possible for someone to beat those odds. But my success is also tied into a lot of sacrifice, pain, sometimes resentment, and a pressure to perform for myself, my family, and my greater community at large. It’s also the result of an intangible or spiritual form of nepotism where relatives, friends, associates, teachers, coaches, etc. have breathed life into me, my potential, and my dreams.
Although I may joke with a line from the famous Drake song “I started from the bottom now I’m here,” there never truly was a bottom for me to start from as I stand on the shoulders of those who sacrificed and came before me. I don’t believe anyone is truly self made, some just apply what is it they were given in different ways.
Status Does Not Equal Wealth
When we look at this fascination with achieving status we tend to automatically assume that someone is doing well financially. They make an effort to be seen—in designer, in the foreign cars, on vacation to exotic locations, drinking expensive alcohol, etc. The portrayal of success via these elaborate demonstrations become exponentially more impressive when tied into this narrative of having started from nothing or ‘getting it out of the mud’, which can entice onlookers to wonder what did they do to get all of that?
It feeds a fantasy lifestyle that also makes those onlookers prime targets for being taken advantage of through the lifestyle marketing into doing whatever needs to be done to make that fantasy a reality.
Behind the scenes however, that status may not be tied into real wealth—that is, wealth already present. The wealth comes from those who will willingly hand over their own money to fund these lavish lifestyles in an attempt to emulate or achieve them for themselves.
The Nepotism Baby
Curiously, those who didn’t necessarily start from the bottom are met with a sort of disdain. They are deemed “unrelatable” and terms like “trust fund baby” or “born with a silver spoon” are used as insults rather than celebratory feats.
To continue reading, please go to the original article here:
New IRS Report Provides Fascinating Glimpse Into Your “Fair Share”
New IRS Report Provides Fascinating Glimpse Into Your “Fair Share”
March 28, 2023 Simon Black, Founder Sovereign Man
Every year the IRS publishes a detailed report on the taxes it collects. And the statistics are REALLY interesting. A few weeks ago the agency released its most recent report. So this is the most objective, up-to-date information that exists about taxes in America..
This is important, because, these days, it’s common to hear progressive politicians and woke mobsters calling for higher income earners and wealthier Americans to pay their “fair share” of taxes. But this report, directly from the US agency whose job it is to tax Americans, shows the truth:
New IRS Report Provides Fascinating Glimpse Into Your “Fair Share”
March 28, 2023 Simon Black, Founder Sovereign Man
Every year the IRS publishes a detailed report on the taxes it collects. And the statistics are REALLY interesting. A few weeks ago the agency released its most recent report. So this is the most objective, up-to-date information that exists about taxes in America..
This is important, because, these days, it’s common to hear progressive politicians and woke mobsters calling for higher income earners and wealthier Americans to pay their “fair share” of taxes. But this report, directly from the US agency whose job it is to tax Americans, shows the truth:
The top 1% of US taxpayers paid 48% of total US income taxes.
And that’s just at the federal level, not even counting how much of the the local and state taxes the wealthy paid.
Further, the top 10% paid nearly 72% of total income taxes.
Meanwhile, the bottom 40% of US income tax filers paid no net income tax at all. And the next group, those making between $30-$50,000 per year, paid an effective rate of just 1.9%.
(Again, this is not some wild conspiracy theory; these numbers are directly from IRS data.)
But the fact that 10% of the taxpayers foot nearly three-fourths of the tax bill still isn’t enough for the progressive mob. They want even more.
The guy who shakes hands with thin air, for example, recently announced that he wants to introduce a new law that would create a minimum tax of 25% on the highest income earners.
But the government’s own statistics show that the highest income earners in America— those earning more than $10 million annually— paid an average tax rate of 25.5%. That’s higher than Mr. Biden’s 25% minimum.
So he is essentially proposing an unnecessary solution in search of a problem.
I bring this up because whenever you hear the leftist Bolsheviks in government and media talking about “fair share”, they always leave out what exactly the “fair share” is.
The top 1% already pay nearly half the taxes. Exactly how much more will be enough?
Should the top 1% pay 60% of all taxes? 80%? At what point will it be enough?
They never say. They’ll never commit to a number. They just keep expanding their scope.
Elizabeth Warren, for example, quite famously stopped talking about the “top 1%” and started whining about the “top 5%”. And then the “top 10%”.
She has already decided that the top 5% of wealthy households should not be eligible for student loan forgiveness or Medicare.
And when she talks about “accountable capitalism” on her website, Warren calls out the top 10% for having too much wealth, compared to the rest of households.
Soon enough it will be the “top 25%” who are the real problem...
Honestly this whole way of thinking reminds me of Anthony “the Science” Fauci’s pandemic logic on lockdowns and mask mandates.
You probably remember how reporters always asked “the Science” when life could go back to normal... and he always replied that it was a function of vaccine uptake, i.e. whenever enough Americans were vaccinated.
But then he kept moving the goal posts. 50%. 60%. 70%. It was never enough. And there was never a concrete answer.
This same logic applies to what the “experts” believe is the “fair share” of taxes which the top whatever percent should pay.
They’ll never actually say what the fair share is. But my guess is that they won’t stop until 100% of taxes are paid by the top 10% ... and the other 100% of taxes are paid by the other 90%.
To your freedom, Simon Black, Founder Sovereign Man