7 Little Changes That’ll Make Your Money Last for Generations

I’m an Advisor to Wealthy Families: 7 Little Changes That’ll Make Your Money Last for Generations

Ken Eyler CEO, Aquilance  Sun, August 20, 2023

You may have heard of the third-generation curse, which causes 90% of wealthy families to lose their money by the third generation. But some individuals manage to deplete their wealth even sooner, especially if they came into a lot of money quickly.

For instance, athletes, entertainers, executives and entrepreneurs who achieve runaway success after years of financial hardship may suddenly find themselves with seven-figure bank accounts and no idea how to carefully spend and manage their money.

The same thing can happen to people who inherit a lot of money. In fact, money mismanagement is one of the primary factors in the third-generation curse if sound financial values and solid money management strategies weren’t passed on through the generations.

Many of these families did not start off wealthy, and had already developed sub-optimal money habits by the time they became wealthy. Often, it’s hard to change those habits that have been formed over a lifetime. But when you have money, you, unfortunately, become a target. Your behavior needs to change if you want to preserve your wealth.

GoBankingRates spoke to Ken Eyler, CEO of Aquilance, a financial administration company focused on bill pay, bookkeeping, and complex entity and investment reporting for wealthy families. He shared with us seven tips to preserve generational wealth, whether you are a new heir, a social media influencer who hit it big, or an entrepreneur who’s struggled for years before finding that business idea that set you up for life.

Tighten Your Security Profile

As an advisor to high-net-worth and ultra-high-net-worth families, I often encounter those who make easily avoidable mistakes with their fortunes. Many of these families did not start off wealthy, and had already developed sub-optimal money habits by the time they became wealthy.

I see security as one of the biggest vulnerabilities for families. One of the common pitfalls are folks who were accustomed to posting about their travels on social media, especially if they first made it big in the public eye.

But when they are traveling on private jets and leaving their multimillion-dollar homes, they open themselves up to threats when they reveal their whereabouts. My recommendation is to post after the fact instead of in the moment. Also, take seriously the importance of anonymity when checking into hotels or visiting tourist attractions.

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

https://finance.yahoo.com/news/m-advisor-wealthy-families-7-203337535.html

3 Simple Steps You Must Take to Shield Yourself from Identity Theft

3 Simple Steps You Must Take to Shield Yourself from Identity Theft

How to fortify your identity against the growing threat of fraud.

by Abigael Good  August 16, 2023

Identity thieves can cause a lot of stress — not to mention damage — if they get access to your personal information. In fact, in a recent GBR survey, 58% of Americans said having their identity stolen would be catastrophic.

Even if you don’t have that same level of concern about identity theft, there are still three key steps you should take to protect yourself. “Rather safe than sorry” is the name of the game.

1. Reset Your Passwords

If you’re concerned about identity theft, the first step is to go through your passwords for all important accounts, from your email to your bank, and make sure they are all different from each other.

If you reuse passwords, it is easy for a hacker to gain access to your login information for just one site and use that knowledge to wreak havoc on your identity. You may be extremely vulnerable if you have been mindlessly repeating the same password, or similar passwords, across accounts.

If you need help keeping track of your new, unique passwords, you can use a password manager. Password managers are secure sites where you can store all your logins, so you only need to remember the login to your manager to access all the rest. Of course, make sure your password manager login is extremely strong and not a duplicate of any other account’s login.

2. Sign Up For Alerts

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

https://www.gobankingrates.com/how-to-shield-from-identity-theft-1863382/?utm_source=yahoo.com&utm_term=related_link_2&utm_campaign=1241554&utm_content=4&utm_medium=rss

7 Reasons You Should Update Your Bank Account Password ASAP

7 Reasons You Should Update Your Bank Account Password ASAP

Jacob Wade  Fri, August 18, 2023

According to a recent survey by GOBankingRates, 17% of Americans have never changed their bank account passwords.  This means the money parked in those accounts could be vulnerable to online thieves. With massive data breaches becoming a common trend, phishing scams and fraud schemes running rampant online, and password cracking software becoming more sophisticated, it’s important to stay up to date on securing your financial accounts.

If you haven’t changed your bank account password, here are seven reasons to do it today.

You Use the Same Password for Other Accounts

Most people have been guilty of this. With so many accounts moving online, it’s easy to use the same password over and over again. But this is a mistake that hackers want you to make, especially with your financial accounts.

Using the same password for multiple accounts puts you at more risk. If there is a data breach for any of your online accounts, hackers now have access to your password for that account. The first thing they will do is attempt to use this same username/password combo for multiple types of accounts, including your bank account.

If you have no other protections in place, they can quickly drain your accounts, leaving you with no money and no recourse. Always use unique passwords for each online account.

Be Real — It’s Been a While

While you don’t necessarily need to change your password every month, if you haven’t changed your bank account password in a few years, it might be time to mix it up. With data breaches across major companies, it is likely that an old password of yours might have been compromised. This can be quickly remedied with a password change for each of your financial accounts.

A good rule of thumb is to update your password every two years. Research from the Federal Trade Commission suggests that mandatory password changes aren’t as effective as just setting a strong password in the first place. But changing your password every few years can help keep your passwords protected from data breaches.

Your Password Is Saved In Your Browser — and Is Easier To Access

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

https://finance.yahoo.com/news/7-reasons-bank-account-password-190018206.html

5 Best Money Moves To Make Before Retiring

5 Best Money Moves To Make Before Retiring

James Holbach  Mon, August 14, 2023

How To Be Wealthy in Retirement: Experts Share the 5 Best Money Moves To Make Before Retiring

Retirement. Imagine it. Dropping out of the rat race forever, enjoying the time you have left — being with your family, pursuing the hobby you could never make time for, finally taking that dream vacation.

Unless you were born rich — and if you were, you probably wouldn’t be reading this — you know it’s not going to happen without a lot of saving and planning. You’ve seen the generic advice everywhere. Max out your 401(k), cut your expenses, go back to school so you can make more — but there are a million paths to financial security, and some of them might surprise you.

Here are five real-world examples of people that made smart moves that allowed them to enjoy a worry-free retirement.

Downsizing

Dennis Shirshikov, head of growth at Awning, shared the story of Tom and Lisa, who were able to secure a very comfortable retirement by significantly downsizing their lifestyle.

“As their retirement neared, they opted to downsize their lifestyle significantly. They sold their five-bedroom house in the city and bought a smaller, but comfortable, two-bedroom home in a quieter suburb. This not only reduced their living costs but also provided them with a considerable amount of cash from the sale, which they put into diversified investments.

“Now, they live comfortably off the income generated from their investments, and they’ve even had the chance to indulge in regular travel, something they’ve always dreamed of.”

Investing In Rental Properties

Shirshikov also related the story of retired school teacher Sarah, who achieved her retirement dream by investing in rental real estate.

“Instead of choosing to put her money in typical retirement accounts like a 401(k), she opted for a more unconventional approach.  By the time she retired, she had a portfolio of five rental properties, each providing a stable monthly income. To make it even more hassle-free, she engaged a property management company to deal with the daily operations. Now, in her retirement, she enjoys a steady stream of income that more than supports her lifestyle.”

Never Stop Working — Sort Of

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

https://finance.yahoo.com/news/wealthy-retirement-experts-share-5-130030640.html

Top 10 Rules To Put You On The Fast Track To Making Your First Million

Top 10 Rules To Put You On The Fast Track To Making Your First Million

K.E. Gold  Thu, August 17, 2023

Do Not Wait On People To Find You': Patrick Bet-David Offers His Top 10 Rules To Put You On The Fast Track To Making Your First Million

Patrick Bet-David’s biography reads like a classic American success story.

According to the 44-year-old businessman, when he was 10 years of age he and his family fled turmoil in Iran and settled in the U.S. He joined the military after high school and then went to work for a couple of financial services companies before launching PHP Agency, an insurance sales, marketing and distribution company. He’s also an author and content creator through his media brand Valuetainment, which boasts millions of followers on YouTube.

Don't Miss

36% of millionaires say it’ll ‘take a miracle’ to retire amid rising costs and a shaky market — here are the best shock-proof assets to grow your nest egg

Commercial real estate has outperformed the S&P 500 over 25 years. Here's how to diversify your portfolio without the headache of being a landlord

Super-rich Americans are snatching up prime real estate abroad as US housing slumps — but here's a sharp way to invest without having to move overseas

Bet-David is well-positioned to offer advice on how to make millions of dollars, an ability that may not be as rare as people think. Today, there are about 22 million millionaires in the U.S., or about 8.8% of the adult population, according to research from online recruitment company Zippia. Globally, there are about 62.5 million millionaires.

In a recent video, Bet-David shared 10 rules on how to get to that first $1 million quickly.

1. Say 'Yes'

The key to success at the beginning is networking. Bet-David says he knew he was one client away, one contact away, one relationship away from making his first million. By saying yes to meeting with a lot of people, he increased his odds of finding the right deal.

2. 'Follow One Religion'

Do not get caught up in every lesson or tip from every author or influencer on how to bring in customers, Bet-David advises. Choose a strategy, or “a religion,” as he calls it, and stick to it.

“Drive that philosophy until you create momentum,” he said.

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

https://finance.yahoo.com/news/not-wait-people-patrick-bet-100000477.html

Why We Think Gold Companies Can Go 10X In The Coming Boom...

 Why We Think Gold Companies Can Go 10X In The Coming Boom...

Notes From the Field By Simon Black

With a current annual budget deficit of $1.6 TRILLION – set to hit $2 trillion by the time the fiscal year ends in September – the US Federal Government is putting drunken sailors everywhere to shame.

At the end of the 2019 fiscal year (just before Covid-1984 hit), the US national debt was $22.7 trillion. Today, it’s nearly 50% greater: $32.7 trillion. And it keeps growing each year.

Just yesterday, our founder, Simon Black, explained that most of the US national debt was accumulated over the past ~15 years, when interest rates were super low. The Treasury Department got accustomed to being able to borrow for less than 1%.

In fact, as late as August 2021, the average interest rate that the US government was paying on its national debt was just 1.45%.

But now interest rates are MUCH higher. The government is now paying an average interest rate of 2.8%, almost twice as high as just two years ago.

The national debt is so high, though, that even 2.8% is too expensive for the US government.

This fiscal year (which ends on September 30, 2023), the Treasury expects to spend a whopping $864 billion just paying interest on the national debt. Again, that’s with an average rate of just 2.8%.

The real problem for the federal government is that roughly 75% of the debt will mature over the next five years. And as their current debt comes due, they’ll pay it back by issuing NEW debt at a HIGHER interest rate.

This means that the government’s average interest rate that it pays on the national debt could rise to 5% over the next five years.

Including all the new debt they project to accumulate over that period of time, this means that the government would have to spend $2 TRILLION of taxpayer money, each year, just to pay interest.

And frankly, paying an average 5% interest on the national debt is still pretty low given US financial history.

The average rate was 5% as recently as 2007. In 2001 it was nearly 7%. And throughout much of the 1980s, rates were in the double digits. So forecasting a 5% average interest rate on the national debt within five years is totally reasonable.

Remember too that, in addition to paying interest, “mandatory” spending on entitlement programs like Social Security and Medicare will hit $3 trillion in a few years.

This means that Social Security, Medicare, and Interest on National Debt could soon exceed 100% of the US government’s tax revenue.

This looming fiscal crisis will fast become a mainstream issue. And politicians will predictably react by raising your taxes sky high to pay for their incompetence.

Simon anticipates the Federal Reserve to try to bail out the government… by slashing interest rates back to 0% and printing trillions of dollars to buy US Treasury bonds.

The consequence, of course, will likely be more inflation.

Why buying gold – and gaining portfolio exposure to it – makes a lot of sense in 2023

As longtime readers of Sovereign Man will know, all of the above is exceptionally bullish for gold.

Now, gold can be a lot of things. It can be a great asset protection tool. It can be a great speculation. It can be a great way to pass on wealth to your kids.

But gold also has a 5,000 year track record as a reliable hedge against inflation and a range of systemic risks.

Most people suffer to some degree from normalcy bias; this is the belief that tomorrow will be very similar to today. Yet the past few years have shown that the world can become radically different… overnight.

And it is precisely during these kinds of Black Swan events and sudden system shocks that physical gold can be an invaluable asset. This is one of the reasons why gold predictably went through the roof during the pandemic.

Yet now that the dust has settled on the pandemic, few people are thinking about buying gold.

In fact, gold prices have remained pretty flat since 2022. An even better example is that many gold-related businesses (including mining companies) are currently trading at ludicrously cheap levels.

But when you consider the obvious risk of a major financial crisis in the US over the next five years, you don’t need to be a gold bug to appreciate gold’s significant potential upside…

It should also be noted that central banks were extremely active buyers of the metal in 2022, buying at a speed not seen since 1967. (Central banks’ purchasing behaviors are a key driver of gold price increases.)

Karl Bagga, the editor of our investment newsletter The 4th Pillar, (which is focused on real assets) believes that we are in the early stages of a significant bull market for gold.

Simon agrees. In fact, he’s argued a few times why gold could trade at $5,000+ in the coming years, up from around $1,900 per ounce today.

How YOU Can Cash In On The Coming “Gold Rush”...

Many investors who consider investing in gold automatically buy into an ETF (exchange-traded fund). Simon has written before that these gold ETFs carry substantial hidden risk which most investors won’t notice… unless they do what Simon does, and actually read all the legal disclosures.

That’s why, at Sovereign Man, we far prefer owning physical gold over ETFs. But more on that another time.

Rising gold prices also present tremendous upside for mining companies and related businesses, including:

Mining royalty companies

Mining financial services providers

Gold millers and refiners

Mining services companies

As well as technology and service providers for mining and complementary sectors…

These are the exact kinds of companies that regularly feature in the page of The 4th Pillar (4P), our real asset focused investment letter.

For example:

One of the recently featured companies from Karl’s research in The 4th Pillar is a gold-related business that specializes in drilling, site work, and processing.

It’s a “picks and shovels” business rather than a mine itself. So the company makes money from a gold mining boom, but without the same downside risk.

The business has been performing exceptionally well, has very little debt, and is generating record revenue with very strong profitability. And yet, with a price-to-earnings ratio (PE) of just 4.5, the stock is incredibly cheap right now.

Another example from Karl’s research is a gold ore processor; this is a company that purchases raw gold (i.e. rock ore) from small miners, processes it in bulk, then sells the processed gold to a large refiner.

Being an ore processor will position them for enormous gains in the coming gold boom; their business – already very profitable – will likely grow even more dramatically over the next few years, resulting in a big win for investors.

In the meantime, the company is already paying its investors a healthy dividend. Plus, they have zero debt and tons of cash on the balance sheet. Yet it also currently trades at a laughable 5.5x valuation.

The Bottom Line

Gold miners and gold production companies offer excellent opportunities to make serious profits from the coming boom in gold prices. And that opportunity exists right now because, for whatever reason, investors are largely ignoring the entire sector.

That’s probably not going to last.

Good investing,

Simon Black & Sovereign Man Editorial Team

To find out more, click here.

I’m Rooting For Gold To Go To Zero. Too Bad It Won’t

I’m Rooting For Gold To Go To Zero. Too Bad It Won’t

Notes From the Field By Simon Black  August 15, 2023

By the time Wang Mang seized the imperial throne of China’s Han dynasty in the year 9 AD, he had already been a long-standing politician and government bureaucrat with decades of experience.

Not that Wang’s experience was especially helpful to the people of China.

As a seasoned politician, Wang’s biggest skills were setting up his opponents, cheating his way to the throne, and coming up with terrible ideas to destroy prosperity.

China’s Han dynasty had once been the pinnacle of civilization, most likely even surpassing the grandeur and wealth of the Roman Republic and ancient Greece. But Wang was one of the key figures who helped tear it down.

As emperor he was a total disaster. Wang had a thing for social and economic justice… so he imposed a bunch of idiotic land reforms to reduce inequality and form a more egalitarian society.

Instead of the ‘justice’ that he had envisioned, agricultural production plummeted and a lot of people went hungry.

Failing to see his error in judgment, Wang Mang doubled down by nationalizing entire industries, which only stifled investment and entrepreneurship.

Soon the Chinese economy was in the dumps. Prices soared. So the Emperor then (naturally) hatched the genius idea of imposing severe price controls… resulting in even more shortages and economic hardship.

He then tried to fix the shortages by taking over the labor market and essentially try to control what everyone did and where they worked.

But Emperor Wang wasn’t quite finished with his crusade for justice. He tried to pay for his mistakes by severely debasing the currency… which caused even more inflation and social unrest.

Wang Mang’s story is one of how complete and total incompetence results in disastrous consequences for an entire nation. History has witnessed countless other examples… and we’re seeing it play out again in our own time.

Today’s incompetent leadership is just as bad as Wang Mang; as I spelled out in yesterday’s missive, the US government has lost all ability to live within its means. They have spent trillions of dollars on their perverted ‘justice’ programs and environmental crusades.

Spending has gotten so bad that a $2 trillion yearly deficit is NOTHING anymore. Yet the continued accumulation of these deficits has created a gargantuan national debt.

As I mentioned yesterday, MOST of US national debt will mature over the next several years. Since the Treasury Department clearly does not have the money to pay back $25+ trillion in debt, their only option will be to issue NEW debt to pay off the old debt.

The problem, of course, is that the new debt comes with MUCH higher interest rates… and I explained that simply paying interest on the debt could exceed $2 trillion within the next five years.

On top of that, mandatory entitlement spending like Social Security and Medicare will hit $3 trillion. This means that just paying for Social Security/Medicare, and interest on the debt, could exceed 100% of tax revenue.

This scenario is potentially just five years away. At that point, it will be almost impossible for investors to have confidence in US government bonds.

US government bonds have long been considered the safest asset in the world. But if the Treasury Department has to blow $2 trillion just to pay interest, investors will quickly start looking for other safe havens. And one of those will be gold.

Think about it: there’s (currently) $32+ trillion in total US government bonds. This is MUCH larger than the gold market. So if even a small fraction of that US debt were to flow into gold instead, the gold price would go through the roof.

But there’s another scenario to consider, which frankly I think is more likely: the Fed steps in to save the US government.

One of the key reasons why the US government is in trouble (aside from their horrific spending habits) is that interest rates are so much higher than they used to be.

So the Fed can help the government out by slashing interest rates back down to 0%, which will make it affordable for the US government to finance its debt.

But this would come at a consequence; if the Fed slashes rates back down to zero, this would almost certainly result in another nasty bout of inflation… which would also mean higher gold prices.

So either scenario is bullish for gold.

Of course these two scenarios don’t even scratch the surface of all the political, financial, and economic problems in the US.

For example, there are still major risks lurking in the US banking system, including the fact that the Federal Reserve itself is hopelessly insolvent.

Social Security has less than a decade until it needs a bailout to the tune of tens of trillions of dollars.

And there’s also the likely possibility of the US dollar losing its dominance as the global reserve currency, likely this decade.

Gold should perform extremely well in any of these scenarios.

So in what scenario does gold NOT do well?

Well, gold does poorly in the “everything is just fine” scenario.

The war ends. Sensible politicians reign in spending. China plays nice and stops threatening to invade Taiwan. Economic growth goes through the roof. Inflation falls due to high levels of productivity and relative peace. Global trade booms.

As I’ve written before, this scenario is completely achievable, presuming competent leaders were in charge. And I’m really rooting for it.

In this scenario, gold would become a pointless relic… but I would happily welcome that outcome because everything else would be fantastic.

Unfortunately that scenario is unlikely… because the world is being run by a bunch of morons like Wang Mang.

If you feel like the trend in the world is more stupidity, more war, more socialism, more bad leadership, then you really ought to consider owning gold. In my view, a $5,000+ gold price is a pretty conservative estimate of where things go from here.

To your freedom,    Simon Black, Founder  Sovereign Man

https://www.sovereignman.com/trends/im-rooting-for-gold-to-go-to-zero-too-bad-it-wont-148054/

3 Ways to Pass Down a Home

3 Ways to Pass Down a Home

April 9, 2023  Estate Planning

The pros and cons of different methods for leaving a home to your heirs.

When it comes to estate planning, a family home can be among the most valuable—and complicated—assets to pass down.

"It's perfectly natural to want to see a cherished home stay within the family," says George Pennock, director of tax, trust, and estate at Schwab Wealth Advisory, Inc. "But you need to think about not only your own needs and wishes but also those of your heirs."

For example, your child may love the family home and all the memories that go with it, but do they actually want to live there? If you have multiple heirs, is it realistic for them to co-own the property, or will such an arrangement create conflict?

You also need to consider the role the house will play in your later years. "Do you plan to stay in the home, or is it possible you may need or want to move at some point?" George asks. "All of this factors into how—and whether—you transfer the property to your kids."

With that in mind, here are three ways to pass along a home to your heirs—both during and after your lifetime.

1. Sell it

If you're looking to move or put your home's equity to use elsewhere, selling the home to a child or other heir could be a good option. Doing so removes the property from your taxable estate and establishes a new cost basis—meaning the capital gains on any future sale will be calculated using the value of the home on the date of the transfer rather than your original purchase price.

Although you might be tempted to sell the home at a low price, be careful not to go below its fair market value. Otherwise, the difference between the sale price and the market value could be subject to gift taxes.

2. Gift it

As generous as it is to gift a home to an heir during your lifetime, it could have negative tax repercussions. That's because such a gift counts toward your lifetime gift tax exemption.

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

https://www.schwab.com/learn/story/3-ways-to-pass-down-home?cid=29090689|6316021|187962617|356606035

If You’re Not Thinking About Real Assets, You’re Going To Get Left Behind

If You’re Not Thinking About Real Assets, You’re Going To Get Left Behind

Notes From the Field  By Simon Black   August 14, 2023

“Scary” is the word that the Wall Street Journal used this weekend to describe the looming financial crisis in the US.  They said bluntly, “Washington has laid the seeds of a crisis that Wall Street can no longer ignore.”

I’ve been writing about this for 14 years; back then, it was highly controversial... almost conspiratorial... to suggest that the US government was in deep financial trouble. Today it’s front page news in the most prominent financial publication in the world.

To give you an idea of the problem, we can once again look at the government’s own data:

According to the Treasury Department’s most recent report from July 31, they’ve taken in $3.69 trillion in tax revenue so far this fiscal year.

Yet they’ve spent nearly $1.8 trillion on Social Security and Medicare, $726 billion paying interest on the debt, almost $900 billion on the military and veterans benefits.

In short, there’s only $284 billion left over for everything else in government. National parks. Homeland Security. The light bill at the White House. And $284 billion doesn’t go very far anymore.

Bear in mind that these people have spent (rather ominously) $666 billion so far this fiscal year just on “income security” alone, which is basically welfare and food stamps.

That’s why the budget deficit is already $1.6 trillion; by the time the fiscal year ends in September, it will probably be around $2 trillion... which is a complete train wreck by any standard.

Even worse is that this isn’t a one-off bad year. A $2 trillion deficit is actually a pretty good year for these people.

Before COVID, at the close of the 2019 Fiscal Year, the US national debt was $22.7 trillion. Today it’s nearly 50% greater, at $32.7 trillion. And it grows leaps and bounds every year.

The scariest part of the problem is that most of the US national debt was accumulated over the past 10-15 years (and especially the last 3-4 years) when interest rates were historically low.

That’s why the average interest rate on US government bonds back in, say, August of 2021, was just 1.45%. Rates were super low back then, and the government could borrow for almost nothing.

Today it’s a different story. All of the new debt that the Treasury Department borrows today carries much higher rates, upwards of 5%.

And this is an enormous problem for the US government: MOST of the current national debt will mature over the next five years.

But since Uncle Sam doesn’t have $32 trillion lying around, they won’t be able to pay that money back. Instead, they’ll refinance the debt by issuing new bonds to pay back the old bonds. Frankly it’s a bit of a Ponzi scheme.

But the new debt they issue won’t be at the ultra-low rates of the past. The government will have to pay whatever the current interest rates are— perhaps 5% or more.

And if the average interest rate on US government debt rises to 5% over the next few years, then they would have to spend a whopping $2 trillion just to pay interest each year.

On top of that, the annual bill for Social Security and Medicare would reach roughly $3 trillion.

Think about it— JUST paying interest, plus Social Security and Medicare, would exceed ALL federal tax revenue.

The US government will find itself in a position where they’ll need to borrow money and go deeper into debt just to fund the military, let alone everything else the government does.

Again, I’ve been writing about this for 14 years, so this analysis and conclusion is nothing new for long time readers.

But this looming fiscal crisis is very quickly becoming a mainstream issue. This means you’ll start seeing it more in the news... which will compel politicians to say something.

Their knee jerk reaction will be to raise taxes... which conforms to the rising popularity of socialism. For some reason there are still growing numbers of people who foolishly believe that high taxes and government spending create prosperity.

The other thing that is almost inevitable is that the Federal Reserve will start slashing interest rates again. No Fed Chairman wants to be held responsible for bankrupting the federal government. The only way to push this crisis further down the road is by returning to historically low rates.

So we can probably expect a reduction in interest rates, simply to bail out the federal government. And this would most likely lead to sustained, higher inflation.

In theory this is all fixable. America still has time to solve its gargantuan challenges. But time is rapidly running out.

And it’s for this reason why I’ve written for so long about having a Plan B... because, based on the government’s current trajectory, they’re just making things worse.

One key element of a Plan B in my opinion is considering real assets.

A real asset is a valuable resource that requires hard work, talent and ingenuity to produce, and cannot be conjured out of thin air by politicians or central bankers.

Real assets are scarce. They have universal value. And they are productive, or can at least be put to productive use.

Gold is an obvious example. It takes a lot of effort to produce an ounce of gold, and gold can be put to productive use. Most of all, central banks cannot conjure it out of thin air like they can print trillions of dollars.

This is the case with most commodities as well.

However some commodities are far more valuable and in-demand than others. Agriculture and energy, for example, are the most important resources in the world and will always be in demand.

Productive technology is also an important real asset; anything that makes the world better, faster, and cheaper has value (which is a key distinction from ‘consumer technology’, which just involves swiping and scrolling and wasting time).

Real assets are important because, historically and logically, they tend to perform extremely well in a fiscal crisis. People start looking for safe havens— and the best safe havens in a crisis are quality, valuable, scarce resources.

The time to be thinking about this is now; even though the fiscal crisis is completely obvious, most people are ignoring it... and hence ignoring real assets.

For now this is a huge benefit to investors, because many real assets (including many commodities, commodity-based businesses, productive technology) have never been cheaper.

So there are a number of bargains out there that could protect your wealth down the road in the event that America’s fiscal crisis continues to unfold.

To your freedom,   Simon Black, Founder   Sovereign Man

https://www.sovereignman.com/investing/if-youre-not-thinking-about-real-assets-youre-going-to-get-left-behind-148040/

The Worst Thing To Do After Coming Into A Ton Of Money

The Worst Thing To Do After Coming Into A Ton Of Money: Buy A New House, Says An Advisor To The Ultrawealthy

Alicia Adamczyk  Mon, August 14, 2023

Those lucky enough to benefit from the Great Wealth Transfer or another windfall, heed this financial advisor’s advice: Think twice (or five times) before buying that dream vacation home. You may come to regret it.

That’s according to Paul Karger, cofounder and managing partner of wealth advisory firm TwinFocus, which manages over $7 billion for ultrahigh-net-worth families. Karger advises all of his clients—who range from centimillionaires to billionaires—to wait six months to a year before making any big purchases when they come into sudden wealth. Give your emotions time to even out.

But the advice is applicable to anyone who receives an inheritance, is retiring, or, say, wins the Mega Millions’ record $1.58 billion jackpot. Though it can be tempting to go on a spending spree, any large purchase like a home needs to be thought through—even if you think you can easily afford it. There are plenty of unknown costs; they’re called money pits for a reason.

“I’ve seen clients purchase large homes in faraway locations that they ultimately realize they will not use frequently and end up being a major ongoing financial burden that took several years to sell,” Karger tells Fortune.

It may sound like a nice problem to have, but Karger is serious, and mostly referring to second or third homes. There isn’t as big a market for these pieces of real estate as there is for primary residences, especially since the pandemic, and they can be extremely expensive—and illiquid. That can lead to trouble down the line, especially if you’re not prudent with the rest of your wealth. Though you may be able to afford to buy the home, there are plenty of monthly or annual upkeep costs that need to be accounted for ahead of time.

Of course, homes aren’t the only possible bad investments out there.

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

https://finance.yahoo.com/news/worst-thing-coming-ton-money-155429933.html

What To Know If You Deposit More Than $10K Into Your Checking Account

What To Know If You Deposit More Than $10K Into Your Checking Account

Angela Mae   Mon, August 14, 2023

If you plan to deposit $10,000 or more into your checking account, there are a few things you should consider first. By law, banks have to report deposits that exceed a certain amount.

Not only that, but many bank accounts come with maximum deposit restrictions. You may also be subject to certain fees when making such a large deposit. If you frequently make large deposits, you should also watch out for any potential scams or fraudulent activity. But even if this is a one-time thing, it’s still important to know about these factors and how they might affect you.

Banks Must Report Large Deposits

“According to the Bank Secrecy Act, banks are required to file Currency Transaction Reports (CTR) for any cash deposits over $10,000,” said Lyle Solomon, principal attorney at Oak View Law Group. CTRs typically include the name of the individual, their account number, Social Security number and taxpayer identification number — all of which are verified and recorded by the bank.

Banks must file CTRs to the Financial Crimes Enforcement Network (FinCEN), which is part of the U.S. Department of the Treasury. Some banks will do this manually, while others will automate the process.

“The creation of a CTR does not mean that your account will be frozen, nor that the Men in Black will be visiting your home,” said Herman (Tommy) Thompson Jr., CFP, ChSNC, ChFC certified financial planner at Innovative Financial Group. For banks, it’s considered standard procedure and isn’t a cause for concern if the deposit is legitimate.

These procedures exist to help prevent money laundering, counterfeit deposits and similar financial crimes from occurring. By requiring banks to report deposits of $10,000 or more, the government can more easily keep track of monetary transactions. As long as your deposits are legitimate, you won’t have anything to worry about.

Structuring Is Illegal

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

https://news.yahoo.com/finance/news/know-deposit-more-10k-checking-130016900.html