‘Rich Dad’ Robert Kiyosaki Says the Dollar Is In Trouble

‘Rich Dad’ Robert Kiyosaki Says the Dollar Is In Trouble: What That Means for Your Money

Angela Mae   Sat, September 16, 2023

It’s common knowledge that the value of the U.S. dollar has fluctuated throughout the years. But now, it seems the dollar could be in serious trouble. This could be especially problematic for people who are trying to save money, or who have most of their assets in cash.

A recent post on Rich Dad, which is part of Robert Kiyosaki’s “Rich Dad Company,” details just why the dollar is in trouble, what this could mean for your money, and what to do about it. Here’s the gist of it.

The Gold Standard

Simply put, the gold standard is a system in which a country ties the value of its physical money directly to gold. While it’s no longer implemented in any country today, the U.S. dollar was tied to the gold standard for many years — all the way until 1933. However, it wasn’t until the early 1970s when Richard Nixon was in office that the U.S. dollar fully went off the gold standard.

Once that happened, the dollar was no longer backed by something substantial — in this case, gold. Instead, it became what Kiyosaki called “fake money” or an “IOU.” It also began to lose its value compared to gold. This is also true for the Euro and Japanese Yen.

It’s no secret that Robert Kiyosaki has continued to invest in both gold and silver. Because these resources exist in a finite amount, their perceived value is higher than that of fiat currencies, like the U.S. dollar.

The Dollar: Inflation and Recession

According to Kiyosaki, the dollar’s purchasing power has diminished by almost 95% since 1996 as a result of inflation. Despite slowing demand, the Federal Reserve continues to print more paper money.

The reason why this is problematic for the value of the dollar is simple. With greater supply and less demand, anything is bound to lose value — the dollar included.

Kiyosaki noted that this particular dollar-related trouble began when Ben Bernanke, the previous Chairman of the Federal Reserve, made a choice to try to combat the Great Recession. Bernanke could have chosen to up the production of paper money, which would lead to increased inflation rates and potentially cause the dollar to collapse. Or he could have increased interest rates to try to slow inflation, which could have led to a recession.

In either case, it spells trouble for the U.S. dollar.

The U.S. Dollar Has Limited Time

Many Americans are caught up in trying to save as much money as possible, especially when dealing with the increased cost of living. But if the dollar is already losing value at an alarming rate, this could be disastrous for anyone who’s relying on it to get them through financially.

And, as Robert Kiyosaki pointed out, the U.S. dollar is already “living on borrowed time.”

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

https://finance.yahoo.com/news/rich-dad-robert-kiyosaki-says-170008171.html

5 Financial Mistakes To Unlearn Now

Millennials Say Boomer Parents Are to Blame for ‘Shameful’ Money Habits — 5 Financial Mistakes To Unlearn Now

David Nadelle  Sat, September 16, 2023

While only 27% of Americans across all ages say their money-saving habits are “excellent,” 65% of millennials and Gen Z-ers are worried about baby boomers’ impact on their future, finds a new study.

The survey, conducted by OnePoll for National Debt Relief between Aug. 4-8, 2023, found that although younger generations were concerned about the effect older generations’ financial decisions will have on them, 62% of all respondents (split evenly by generation) admit they make poor money decisions sometimes. Almost half (48%) of respondents said their parents influenced their money habits.

With 51% of respondents admitting they have been in debt at some point, and 42% currently experiencing money troubles, the study also found that many Americans are eager to destigmatize “shameful” debt (36%) and are taking responsibility for their bad spending and savings habits.

“There’s a lot of guilt and shame people feel when they’re in debt and that needs to change,” said Natalia Brown, chief client operations officer at National Debt Relief. “The data shows that most of us face challenges with money and that none of us are alone in that.”

Here are the five most common bad money habits — and ones you need to unlearn as soon as possible — according to the National Debt Relief/OnePoll study:

1. Writing Off Small Purchases As Insignificant (43%)

It’s easy to make simple purchases that can add up over time, so you have to hold yourself accountable for how you spend your money. Even if it seems like an insignificant purchase, write it down or acknowledge it. Spending even a few extra dollars a week can account for hundreds of dollars a year. And resist the urge to make impulsive buys or in-app purchases.

2. Gambling (39%)

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

https://finance.yahoo.com/news/millennials-boomer-parents-blame-shameful-180041296.html

Thinking Holistically About Finances To Avoid Bad Habits

Thinking Holistically About Finances To Avoid Bad Habits

Sam Ro·Contributor  Sun, September 17, 2023

Stocks ticked lower last week with the S&P 500 shedding 0.2% to close at 4,450.32. The index is now up 15.9% year to date, up 24.4% from its October 12 closing low of 3,577.03, and down 7.2% from its January 3, 2022 record closing high of 4,796.56.

I spent the past week at FutureProof and Excell, two leading industry conferences for financial advisors. I like attending events like these because I inevitably meet people I’d probably never cross paths with under normal circumstances. That means I get exposed to a wide array of views, some of which might affect the way I think about things. One topic that came up in many of my conversations was holistic thinking.

When you think about your financial situation holistically, you realize it isn’t characterized just by the assets you hold in your portfolio, but also the industry in which you work.

For example, you may be a young professional with a little bit of savings conservatively invested in a broadly diversified S&P 500 index fund. But if you work at a VC-backed startup and it’s your only source of income, then you are far more financially exposed to speculative risk than your 401(k) statements might suggest.

Speaking more broadly, it’s always treacherous to consider any piece of data in isolation. In the markets and the economy, there almost isn’t enough context to take into account when considering specific metrics.

The richer you get, the less you need to save

One unsettling metric that often gets misinterpreted and taken out of context is the personal saving rate — the percentage of disposable income that’s saved, not spent — which has been trending below pre-pandemic levels over the past two years.

Does a low saving rate mean households are going broke as they use more of their incomes for spending instead of saving?

The short answer is no. As we’ve discussed repeatedly at TKer, household finances are quite strong. People have money.

In fact, a declining saving rate may be a reflection of household finances getting even stronger. 

Renaissance Macro’s Neil Dutta recently reviewed the historical relationship between the personal saving rate and net worth. His findings were a bit counterintuitive.

"From the 1980s to 2000s, there was a pretty neat and clean relationship: as net worth rose relative to income, the household saving rate declined," Dutta observed in a September 8 note. "This made sense as households saw rising asset values as a low risk form of wealth creation. When you are ‘loaded,’ you have less reason to save."

This relationship broke down in the wake of the global financial crisis.

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

https://finance.yahoo.com/news/thinking-holistically-about-finances-to-avoid-bad-habits-142415994.html

Maybe It’s Time For Plan B To Become Plan A

Maybe It’s Time For Plan B To Become Plan A

Notes From the Field By Simon Black  September 13, 2023

The top two headlines in today’s Wall Street Journal say it all:

The first one is “US Inflation Accelerated in August as Gasoline Prices Jumped”.

And the second explains that “Exploding Budget Deficits” are here to stay.

These are technically two different stories about two separate issues. But I’ll show you how they’re related, and how they point to the same conclusion: higher inflation is not going away.

The first story talks about the latest inflation numbers. No one who has visited a grocery store or gas pump over the past few months should be surprised-- fuel prices are higher, and inflation has risen.

And ultimately this is a story about the rising cost of energy.

Remember that energy is one of the most important commodities in the world. Full stop. Every single activity in our modern world-- driving to work, browsing the Internet, heating a home, manufacturing new iPhones, mining copper, farming soybeans, etc. requires energy in some form-- gasoline, electricity, propane, etc.

And this means that cheap energy is critical to keeping inflation low.

Yet energy demand increases every year, for two key reasons:

First, there are obviously more people in the world each year. And rising global population means more energy demand.

Second, per-capita energy demand is also on the rise; in other words, the average individual around the world consumes more and more energy each year.

It’s pretty easy to understand why. In the US, for example, primary energy consumption is about 88.2 MWh per person per year. (A MegaWatt-hour, or Mwh, is a unit of measurement for energy).

That’s about 5x more than the global average, according to the US government’s Energy Information Administration.

So as lesser developed economies (like India) grow and become more advanced, their per-capita energy consumption rises dramatically.

And this is what’s actually happening; per-capita energy consumption rose more than 7% in India last year. In Indonesia it rose nearly 20%.

So global energy demand is clearly on the rise. And with very few exceptions, this trend has been very steady for the past several decades.

Energy supply, on the other hand, is a troubling story.

The #1 source of new energy supply growth over the past ~15 years has been shale oil in the United States. Shale created an American energy bonanza, propelling the US to triple its oil production in less than a decade and surpass Saudi Arabia as the #1 oil producer in the world. It’s all thanks to shale.

But those shale fields are quickly becoming depleted. This isn’t some crazy conspiracy theory or hidden secret-- the shale oil CEOs have been very public about their peak production.

Given that US shale oil accounted for virtually ALL the growth in energy supply over the past ~15 years, the depletion of these shale fields means there could be quite a bit of stagnation in oil supply.

It doesn’t help that other major producers like Saudi Arabia have also reached peak production. Again, this isn’t a conspiracy theory; Saudi Arabia’s Crown Prince “MBS” stunned the world last year when he said that his country didn’t have the capacity to increase its oil output.

The result of these future supply and demand imbalance issues should be pretty clear: higher energy prices.

And, again, since energy is a major factor in nearly everything-- food, fuel, manufacturing, etc., higher energy prices will cause higher inflation.

In theory this is an easily fixable problem. It’s not like energy companies don’t know how to explore, drill, and produce. And there are still places in the world (like Venezuela) that have vast, untapped oil reserves.

Unfortunately there’s an army of fanatics who are doing everything they can to block energy companies from producing more… including idiot protesters who literally glue themselves to the pavement or interrupt sporting events with glitter bombs.

The US government never misses an opportunity to frustrate and obstruct oil companies. They deny permits, they pass costly regulations, they impose punitive taxes, and they regularly demonize the industry.

Moreover, powerful investors like Larry Fink have forced banks and funds to deny much-needed capital to the energy sector, which reduces new discoveries and future production.

These same fanatics also willfully reject other obvious energy solutions like nuclear power, while clinging to the mythology that inefficient solar technology-- which requires a 9-year old child in the Congo to mine cobalt with his bare hands in toxic conditions-- will save the world.

Nothing goes up or down in a straight line, and gasoline prices will certainly go through periods where they rise and fall. But over the next several years, the current trajectory is pretty clear: energy will remain expensive. And that means higher inflation.

The second story in the Wall Street Journal this morning was about government spending.

And while there are some states in the US which routinely achieve exemplary fiscal results, politicians at the national level have absolutely no clue how to live within their means.

The federal budget deficit for Fiscal Year 2023 (which closes in 17 days on September 30th) will reach approximately $2 trillion. And as the Journal points out, there is no end in sight.

Annual spending on mandatory entitlement programs like Social Security and Medicare will reach a whopping $3 trillion over the next several years. And yet politicians from both parties insist that those programs will not be cut.

Simultaneously, gross interest on the debt could rise to $2 trillion annually within the next five years if interest rates remain at current levels.

This means that annual deficits will keep rising… and this is highly inflationary. Everyone alive has experienced first hand how excessive government spending over the past couple of years has contributed to nasty, stubborn inflation problems.

But it’s even more important to understand that the US government NEEDS inflation to stay alive. At $33 trillion (and rising), the US national debt is simply too large at this point. And their only realistic option is to keep inflation in the 5-6% range, and repay the debt with increasingly worthless dollars.

These two points together-- energy and government spending-- paint a very clear picture of why inflation will likely remain higher for a long time.

And there are other forces as well which will contribute to higher inflation-- geopolitical conflict, rising taxes, anti-capitalist “Bidenomics”, etc.

Again, these are all fixable problems. But the people in charge seem to have neither the competence nor desire to fix problems. They usually just make things worse.

Even when someone slaps them in the face with an obvious warning, they ignore it. When Fitch downgraded the US government’s credit rating last month, for example, the President and Treasury Secretary were genuinely bewildered; they found it incomprehensible that analysts wouldn’t have 100% confidence in their administration.

These people have a dangerous reality distortion field, and they’re clearly blind to the glaring dangers on the horizon.

Ever since I launched Sovereign Man back in 2009, I’ve been writing about the need to have a Plan B, just in case some of these risks come to fruition.

Yet when the risks are this obvious, and the people in charge so incompetent, it’s time to think about Plan B becoming Plan A.

To your freedom,   Simon Black, Founder   Sovereign Man

https://www.sovereignman.com/trends/maybe-its-time-for-plan-b-to-become-plan-a-148159/

Despite 70% of Millionaires Using a Financial Planner, One-Third May Outlive Savings — Here’s Why

Despite 70% of Millionaires Using a Financial Planner, One-Third May Outlive Savings — Here’s Why

Vance Cariaga  Wed, September 13, 2023

Having net assets of $1 million or more doesn’t carry the same aura of extreme wealth that it used to, but it’s still a pretty tidy sum of money — especially considering that the average retirement savings in the United States is less than $90,000. Even so, a significant percentage of millionaires worry that the wealth they’ve built up won’t be enough to last their lifetimes, according to a report from Northwestern Mutual.

Northwestern’s 2023 Planning & Progress Study, based on a poll of 2,740 U.S. adults, found that one-third of millionaires surveyed think it’s possible they could outlive their savings. In this case, “millionaire” means you have more than $1 million in investable assets.

Nearly half of millionaires (47%) say their financial planning still needs improvement. That’s the case even though 42% consider themselves “highly disciplined” planners, which is more than twice the percentage of the general population.

Odder still, 70% of wealthy Americans work with a professional financial advisor — and yet one-third still worry about running out of money in retirement.

Wealthy Americans May Not Be Convinced They’ve Got the Right Financial Planner On Board

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

https://finance.yahoo.com/news/despite-70-millionaires-using-financial-192517792.html

Different Ways to be Rich

Different Ways to be Rich

By  Ben Carlson  - A Wealth of Common Sense

It’s estimated only 5% of people in the United States are millionaires.

 So if we’re using millionaire-status as a way to gauge wealth in this country, a lot of people are never going to get to the point where they’re considered “rich.”   But there are plenty of other ways to live a wealthy life that extend beyond how much money you have in the bank or your portfolio. And even those with a lot of money may not be considered rich when you look at other areas of their life.

Here are some ways to be rich in this day and age that go beyond money:

 You have a job you enjoy. If you work a 9-5 job that means roughly 50% of your waking hours during the week are spent in the office, with your colleagues or at your place of employment. Many people put in even more hours than this.   So if you hate your employer, boss, co-workers, or career path that can be an enormous drag on your well-being.

 Simply enjoying what you do, who you do it with, and the company you do it for can make for a supremely richer life than the alternative. It would be nice to pair a fulfilling career with a high paycheck but most people never find the former even if they receive the latter.

Being in control of your own time. A big paycheck is always nice but the impact wears off when you’re forced to deal with a stressful work environment, co-workers you don’t care for, or work you’re not appreciated for.

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

https://awealthofcommonsense.com/2019/08/different-ways-to-be-rich-in-2019/

Can You Lose Money In A Money Market Account?

Can You Lose Money In A Money Market Account?

Ben Luthi   Updated Mon, Sep 11, 2023

Money market accounts act as a hybrid between a checking account and a savings account, offering higher interest rates and flexible access to your funds — albeit with some limitations.

It's technically possible to lose money in a market account, but not in the same way you can lose money in an investment account. Depending on the terms of your money market account, you could lose value to fees and inflation.  If you're considering putting your money in a money market account for short-term savings goals, here's what you should know.

What is a money market account?

A money market account is a type of deposit account that you can use for short-term savings. Like a checking account, a money market account typically allows you to access your funds through a linked debit card, paper checks, or an ATM card.

At the same time, money market accounts often provide higher interest rates than traditional savings accounts, although they also usually come with the same monthly withdrawal limits. If you withdraw money more than six times in a month, you may incur a fee with each additional withdrawal.

Money market accounts may have steep deposit requirements and even charge a monthly fee, though you may be able to get the charge waived if you maintain a minimum balance. Your interest rate may be flat regardless of your balance, or you may be offered tiered rates based on your balance.

Can you lose money in a money market account?

Unlike an investment account subject to risk, you won't lose money in a money market account due to investment losses. However, there are other ways your account balance can decrease over time or lose value in the long run:

You can lose money to fees: If your account charges a monthly fee that you can't get waived, or you end up dealing with other fees, such as excessive withdrawal penalties, your account balance could drop if the fees exceed the interest you earn in the account.

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

https://finance.yahoo.com/personal-finance/can-you-lose-money-in-money-market-account-182341738.html

This Unique Loophole Exempts 100,000 Americans from Taxes

This Unique Loophole Exempts 100,000 Americans from Taxes

Notes From the Field By Simon Black  September 11, 2023

By the late 1800s, the South Pacific island chain of Samoa faced an existential crisis. After squabbles between German, British, and American forces over the previous decades, Germany had taken the western islands of Samoa, and asserted its unpopular control over the people.

The eastern islands, however, were controlled by the United States with a lighter touch. And these Samoans had a good relationship with US merchants involved in the island’s coconut trade.

But rival Samoan factions still fought amongst each other.

High Chief Mauga was a prominent leader on the island of Tutuila which included the Pago Pago harbor— a site that was strategically important to the US Navy.

High Chief Mauga calculated that by aligning with the United States, his island would be protected from German aggression and internal strife.

And that’s why he was among the chiefs who signed The Deed of Cession of Tutuila, on April 17, 1900.

Importantly, this agreement protected Samoan autonomy and property. And it specifically made American Samoans US “nationals”— a status later solidified by the passage of the Samoa Act of 1929.

Now, there is a bizarre legal distinction between being a US citizen and being a US “national”.

To this day, as US nationals, Samoans are issued US passports and can travel globally just like any US citizen. Samoans can also visit, live, and work within the United States. They cannot, however, vote in federal elections or hold certain public offices.

This makes American Samoans distinct among the inhabitants of other American territories such as Guam and Puerto Rico who are born US citizens.

To clarify, all US citizens are also considered nationals. But not all US nationals are US citizens. Strange, right?

Today, between 50,000 to 100,000 American Samoans globally enjoy this unique status. And I say “enjoy” because being a US national and not a US citizen comes with a huge benefit:

US nationals are NOT subject to the United States’ policy of taxing citizens on their worldwide income, no matter where in the world they live or earn money.

It’s true that other US territories can set their own tax policy for bona fide residents to follow. That is why living in Puerto Rico is such a great option for Americans to legally reduce their tax rate.

But if Puerto Rican born citizens move off the island, whether to the United States mainland or overseas, they will owe taxes to the IRS because they are still US citizens.

But this is not the case for American Samoans. As US nationals, they are not subject to worldwide taxation while living in American Samoa, or anywhere else.

Sure, if an American Samoan as a US national lives in, say, California, he or she will pay all the applicable federal and state taxes, just like any other US resident.

However, if they leave the United States, they stop being subject to IRS jurisdiction altogether. That means US nationals (who are not citizens) can have a tax-free and reporting-free life if they move to one of the many countries with no income tax, or a territorial tax.

And again, that’s a critical distinction from US citizens, who remain under Uncle Sam’s tax jurisdiction no matter where they live.

Now, I’d love to tell you that there’s an easy way you could swap your US citizenship for US nationality. So far we haven’t found one... but we’re still looking.

There is, however, a way for some people to create this benefit and set their future children up to be US nationals.

Most people won’t qualify; if you’re a US citizen and have lived in the United States for at least one continuous year at any time during your life, then even if you have children born in American Samoa, they would inherit your US citizenship.

If, however, you are one of the approximately 9 million “accidental Americans” globally who were born with US citizenship but have never actually lived in the US, then technically you could have a child in American Samoa... and that child would become a US national (NOT a citizen).

In addition, non-Americans could also make this work.

Children born in American Samoa to non-American citizens also become US nationals but not citizens.

There are still challenges...

For example, American Samoa only allows non-Americans to visit for 30 days at a time. It is possible, however, to extend this another 30-days with a local sponsor, or up to a year if you enroll in the local community college, or get a job on the island— they are somewhat desperate for certain qualified professionals.

Naturally we realize that this is a unique situation that will apply to only a handful of people.

But this is just one of many obscure legal quirks that we routinely uncover in our research that can be used to reduce taxes, expand your living options, or pursue other global opportunities.

The point is that having a broad understanding of these sorts of policies can open up doors all throughout the world.

And when you’re forming a strategy to live your life by your own design, it pays to be armed with this sort of knowledge.

To your freedom,  Simon Black, Founder   Sovereign Man

https://www.sovereignman.com/international-diversification-strategies/this-unique-loophole-exempts-100000-americans-from-taxes-148152/

Time is Money, Quiet Wealth: An Asset Protection Strategy

Time is Money, Quiet Wealth: An Asset Protection Strategy

By The Sovereign Investor  Updated on Nov 12, 2021

I’ve never worn a watch. I flatter myself that’s because of a high school Latin teacher/lacrosse coach named Thurber who, when asked why he didn’t, responded that “a man who wears a watch worries too much about time.”

That quote has always stuck with me. Its philosophical brevity is almost Hellenic.

My real reason for going watch-less is simpler, however. I have a hard enough time keeping track of my keys, wallet, eyeglasses and anything else I need during my daily journey to worry about a watch as well.

In fact, I’m pretty sure the only watch I ever owned was one that had belonged to my grandfather, that my Dad gave me when I was about 5 — what was he thinking? — that I promptly dropped and broke.

My relationship with timepieces, in other words, is Thurberesque in another way entirely.

But there are people for whom watches are an asset protection strategy …

Watching the Big Money on Lake Geneva

Last week in Lausanne, Switzerland, auction house Phillips sold 164 watches by makers such as Rolex, Patek Phillippe, Longines and Piaget. All were from the 20th century, the oldest from the ‘20s, but many made as recently as the 1990s.

The sale prices impressed me for two reasons. First, who knew that someone would deem a simple wristwatch to be worth almost $5 million? Apparently someone does. A 1927 Patek Philippe Stainless Steel Model 130 fetched that much. There were several $1 million-plus items as well, and dozens made it into six figures.

The second thing that struck me about the auction results was that in almost every case, the sale price significantly exceeded the pre-auction estimate, sometimes significantly. The lucky seller of the 1927 Patek Philippe doubled his or her hoped-for gains, whilst the prior owner of a 1969 Piaget Montre-Manchette 9850 in 18-carat yellow gold got five times what Phillips thought he or she would.

I’m no expert on watches, but clearly, there’s more to these things than telling the time. The values reflected in the Phillips auction derive from a combination of outstanding craftsmanship, rarity, and an artistic je ne sais quoi that watch aficionados must surely understand. The 1931 Longines Lindbergh Hour Angle in silver, to the right, is clearly a gorgeous example of human creativity.

Quiet Wealth: An Asset Protection Strategy

My colleagues and I often refer to items like these watches as “quiet wealth” — an asset protection strategy quite unlike conventional stocks, bonds, metals and other financial instruments.

Quiet wealth is largely synonymous with collectibles, such as stamps, coins, fine wines, historical artifacts and similar rarities. But they can also include such little-known items as comic books (a Jeff Opdyke favorite) and vintage guitars (my personal weakness).

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

https://www.valuewalk.com/quiet-wealth/ 

Building Wealth

Building Wealth

By Dennis Friedman    HumbleDollar

 I’VE BEEN READING about how people aren’t saving enough money, and how almost half of all Americans carry a balance on their credit cards. Looking to be more financially prudent? Here are 10 pointers on how to build wealth and gain financial security over your lifetime:

 1. Save—for a reason. Saving money is the key to building a substantial portfolio. One secret to being a good saver: Have something worthwhile to save for. It might be homeownership or early financial independence.

Whatever it is, write it down and post it where you can see it every day. That constant reminder will keep you on the right track—and help you get in the habit of saving money.

2. Invest in stocks. This is another crucial component of building wealth. My advice: Buy broad-based U.S. and international stock index funds. You’ll capture the stock market’s results at low cost, and that’s proven to be a winning strategy over the long haul.

 3. Attend an affordable college. Education debt is a problem for many young Americans. You need to find a quality college that won’t leave you in too big a financial hole.

According to research from the College Board, it takes an average 12 years to recoup the cost of a bachelor’s degree.

n other words, by then, you typically have earned enough to recover the cost of the college degree, plus the lost income from the time you were out of the workforce while studying.

Use that 12 years as a guideline in choosing a college. Will it take you far longer to recoup your costs? You may want to find a less expensive college.

 4. Invest early. Take advantage of compounding by investing as much as possible at a young age. If you do this, you won’t have to save as much to meet your financial goals.

What about the need to build up an emergency fund that’ll cover six months of living expenses? You might fund a Roth IRA—and have it do double duty, both acting as an emergency fund and starting you on long-term investing.

You can withdraw your contributions from a Roth at any time for any reason, with no taxes or penalties owed, provided you don’t touch the account’s investment earnings.

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

https://humbledollar.com/2019/06/how-to-build-wealth/

5 Common Banking Habits That Aren’t Actually Good for Your Finances

5 Common Banking Habits That Aren’t Actually Good for Your Finances

Megan Mostyn-Brown    Sat, September 9, 2023

Bad habits are hard to break. But if you’re going to break any bad habit this year, break a bad banking habit. Irresponsible banking can cost you money. Lots of money. In fact, according to the Consumer Financial Protection Bureau (CFPB), from 2019-2020 Americans spent almost $28 billion in banking fees alone. Ditching these common practices can boost your bank account by saving you money.  

Paying Overdraft and Non-Sufficient Funds Fees

Everyone’s had at least one moment in their life when their bank account has hit zero. If you’ve opted into your bank’s overdraft protection, you’ll be able to continue to make purchases with your debit card without sufficient funds.

But know this: Even if you do have overdraft protection your bank may not allow it to be used when writing checks or using automatic bill pay. If you don’t have overdraft protection your bank may decline your purchase. In all of these scenarios, you can be charged a fee, either an overdraft fee or a non-sufficient funds (NSF) fee.

Both overdraft and NSF fees will run you around $34, according to the CFPB. While this may not seem like a lot of money, if you continually overdraw your account the number of fees you accrue can add up. The best way to avoid these fees is to budget your money.

If that’s not possible, the FDIC suggests linking your checking and savings account so that you can move money from one to the other when you risk overdrawing. You’ll still incur a fee for moving the money, but it won’t be as high as the fee you would be charged for overdrawing the account.

Paying ATM Fees

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

https://finance.yahoo.com/news/5-common-banking-habits-aren-170012578.html