The 7 Worst Things You Can Do If You Owe the IRS

The 7 Worst Things You Can Do If You Owe the IRS

December 6, 2023   By  Jennifer Taylor  GoBankingRates

You’re in debt to Uncle Sam. This probably isn’t a great feeling, but you have to face it.

Maybe you have the money to pay your tax bill or perhaps you don’t. If not, you have many options, so don’t take any of the following.

Using a Credit Card To Pay Your Taxes

Charging IRS debt to your credit card might be easy in the short term, but doing so can be a costly choice.

“The IRS interest rate changes quarterly, but it’s hovered around 8% in recent years,” said Brad Paladini, tax attorney and owner of Paladini Law, a tax law firm. “Credit card interest is usually around 22%, meaning that if a taxpayer uses a credit card to pay their taxes, they are paying almost three times as much in interest than if they paid the IRS directly.”

Failing To Stay in Compliance With the IRS

“The IRS is usually very willing to arrange a resolution for past-due tax debt, whether it be an installment agreement, an offer in compromise or hardship status,” Paladini said. “But the IRS requires that the taxpayer remain ‘current’ with the taxes.”

Going forward, he said this means you’ll need to file all returns on time and pay all future taxes on time.

“If the taxpayer fails to do so, she’ll default whatever arrangement was made with the IRS,” he said.

Ignoring the Problem Until It’s Too Late

“Taxpayers will know there’s an outstanding tax debt, but will ‘bury their head in the sand’ and ignore it,” Paladini said. “Eventually, the IRS will wipe out their bank accounts or garnish their wages to recoup their money.”

If it comes to this, he said it will be much harder to try and resolve than if you had proactively reached out to the IRS to settle it.

Not Understanding Your Options

If you owe money to the IRS, Paladini said, you have six payment options, including an installment agreement, offer in compromise, currently non-collectible status, penalty abatement, innocent spouse relief and bankruptcy.

“Each of these options has separate requirements,” he said. “Trying to navigate that path on your own can be extremely difficult.”

If you need help navigating what’s best for your unique situation, he said you should reach out to a tax professional.

To Read More:

https://www.gobankingrates.com/taxes/tax-laws/worst-things-you-can-do-if-you-owe-irs/?utm_term=related_link_1&utm_campaign=1267849&utm_source=yahoo.com&utm_content=2&utm_medium=rss

The 6 Smartest Things to Do With Your Tax Refund

The 6 Smartest Things to Do With Your Tax Refund

By  Vance Cariaga  February 13, 2024 GoBankingRates

Getting a tax refund can be exciting. It feels a little like getting a year-end work bonus in the middle of spring. Fun as it can be, it’s important to keep in mind that there are smart things you can do with that refund — and not so smart things.

Rather than blow the refund on something you don’t really need, you should put it to use in a way that can bolster your financial situation.

With the 2024 tax season underway, you might be looking forward to a refund from the IRS or your state tax agency. How you use it depends on your own personal situation, but here are six of the smartest things to do with your tax refund.

1. Pay Down Debt

If you’re carrying debt, one of the best things you can do with a tax refund is put it toward that balance. This is especially true of credit card debt, which carries high interest rates that keep carrying over to the next payment cycle when you don’t pay off the entire balance.

Credit cards can stretch out small purchases into ongoing loans by keeping borrowers on the hook for as long as possible, making minimum payment every month while they rack up interest charges.

If you don’t have any credit card debt to pay down, consider using the tax refund to get ahead on car or student loan payments. The extra cushion could come in handy in the future.

2. Open a High-Yield Savings Account

Tempting as it might be to splurge on luxuries with your tax refund, one of the smartest things you can do is put it in a high-yield savings account where it can grow. Even better? High-yield savings accounts are offering some of the best interest rates in years.

One of the top options is Milli Bank, a mobile bank with a savings account that pays 4.75% Annual Percentage Yield, as of Feb. 29, 2024. There are no monthly service fees or minimum balance requirements with a Milli account, and all deposits are FDIC insured.

Milli also offers a goal-oriented savings product called Jars. Milli Jars allow you to personalize your savings goals and set aside funds directly toward them, helping you visualize your progress. Opening a Milli account and growing your money faster with 4.75% APY is one of the smartest things you can do with your tax refund.

To Read More:

https://www.gobankingrates.com/smartest-things-to-do-with-your-tax-refund-2102723/

6 Things You Should Never Do With Your Tax Refund

6 Things You Should Never Do With Your Tax Refund (Do This Instead)

March 4, 2024 by  Vance Cariaga GoBankingRates

There’s nothing like a tax refund to give your finances an immediate shot in the arm. Depending on the size of the refund, it could be used to wipe out your credit card debt or help you build an emergency fund. Unfortunately, many people blow their refunds on something frivolous that does nothing to strengthen their finances.

The best way to look at your tax refund is as an opportunity to grow your wealth, rather than a free pass to spend money. When you complete your tax return and find that you are due a refund, consider it a return on the hard work you put in during the previous year.

One of the smartest moves you can make is to invest the money in a high-yield savings account. This is an especially good move right now, with banks and credit unions offering their highest annual percentage yields in years.

One of the best savings options is Milli Bank. Milli is a mobile-only bank owned by FNBO whose savings account pays a 4.75% APY, as of Feb. 29, 2024. That’s more than 10 times the national average interest on a savings account.

There are no monthly service fees or minimum balance requirements with the Milli Savings account, and all deposits are insured by the FDIC.

Putting your tax refund into a savings account with a high APY means the money works for you, helping you build wealth for the future or cover emergency expenses when the need arrives.

Now that you know one of the smartest ways to use your tax refund, here are some things you should never do with it.

1. Buy a Second Car You Don’t Need

It might be tempting to put your entire refund into a down payment on a second car you’ve always wanted, but it’s a mistake, if you don’t really need one. Cars lose much of their value the moment you drive them off the lot. Putting yourself into a deeper financial hole with a monthly car payment — along with the cost of maintenance  — can potentially set you back for years.

2. Splurge on a Vacation

Unless the rest of your finances are in great shape, it’s likely a mistake to blow your tax refund on a pricey vacation. Look at it this way: If you invest your refund in an asset that can grow your money, the return you get might pay for a future vacation. The best part is, you still have the principle safely tucked away.

3. Spend It At a Casino

There’s a reason casinos make so much money — the odds are firmly in their favor. Hitting the slot machines or blackjack tables might be fun (at least for a while), but they can drain your tax refund in a hurry. There are much better ways to spend your refund.

To Read More :

https://www.gobankingrates.com/taxes/refunds/things-you-should-never-do-with-your-tax-refund/?utm_term=incontent_link_6&utm_campaign=1267849&utm_source=yahoo.com&utm_content=9&utm_medium=rss

4 Surprising Things the IRS Already Knows About Your Finances

4 Surprising Things the IRS Already Knows About Your Finances

Sean Bryant  Thu, April 11, 2024

For many Americans, the IRS and the tax filing process may seem complicated and mysterious. What does the IRS already know about you and your finances, and what can they find out?

It turns out, the IRS has the ability to see a surprising amount of your personal information. However, the IRS is likely to seek out personal information only if your tax return signals something suspicious.

Keep reading as we explore what the IRS already knows about you and your finances.

Reported Financial Records

This might not be a huge surprise to many people, but most of the time, the IRS already knows what your tax return will be before it’s even filed. The reason is because they’ve already received copies of your W-2 and 1099 forms.

Your W-2 reports all your previous year’s wage income, while your 1099s list income from freelancing, stock dividends and interest. By law, your employers must submit these documents to the IRS before January 31.

Non-Reported Financial Records

During an audit, the IRS may request additional financial records you have not already supplied. If you refuse or don’t provide them by the IRS deadline, the IRS can summon the records directly from your bank or financial institution. You can contest the summons if you can prove that the IRS already has the information, that the summons isn’t for a legitimate purpose, or that the information is irrelevant to the current matter.

“You are mistaken if you think that the IRS knows the details of your income alone. They also have insights into your financial accounts,” says Wayne Bechtol, Senior Tax Accounts at Fiona. “Earning more than $10 from a bank account during the year requires the bank to report it to the IRS on Form 1099-INT. Plus, your dividends and stock sales are reported through 1099-DIV and 1099-B. Thus, the IRS has details of your investment accounts. Additionally, payments through merchants like PayPal is also visible to the IRS because of reporting through Form 1099-K.”

Social Media Postings

Postings on social media, like Facebook or X (formerly Twitter), can be accessed by the IRS. Even tweets from years ago can be used as evidence that you misled or committed tax fraud.

Once something is out there on social media, it can be found.

Emails

The American Civil Liberties Union has IRS documentation that reveals that the IRS believes it has the legal authority to open private emails without people’s knowledge and sometimes even without a warrant. Don’t assume your emails are private just because they are not published publicly.

What To Do About It

If you are worried about the IRS accessing your personal information, there are some things that you can do about it. Always file truthful and accurate tax returns, know what is public and what is private, don’t post any contradicting information online, and keep track of legitimate deductions.

File Truthful and Accurate Tax Returns

To Read More Click LINK:

https://www.yahoo.com/finance/news/4-surprising-things-irs-already-110101452.html

4 Money Lessons From High-Net-Worth People That You Need Right Now

4 Money Lessons From High-Net-Worth People That You Need Right Now

Wola Odeniran, CEPF®  Tue, April 25, 2023

Advisors often work with high-net-worth clients and are able to understand the expectations wealthy clients have about managing their finances. The good news is that some of those takeaways can be applied to clients who are not high-net-worth individuals.

Read on to understand four lessons advisors can take from high-net-worth clients – and how they can be applied to any client.

If you are looking to grow your financial advisory business, check out SmartAsset’s SmartAdvisor platform.

Almost Everyone Needs an Estate Plan

Estate-planning practices apply to every client, no matter their tax bracket, says Renee Fry, co-founder and CEO of Gentreo, a company that provides estate-planning document services.

“Financial advisors should take the example of their high-net-worth clients and apply estate-planning principles to all their customers, regardless of income bracket,” Fry says. “Every person has an estate, regardless of their income level, and thus, everyone should have a plan in place to ensure that their assets are distributed according to their wishes.”

Proper planning can help advisors build a bigger client base. “By doing so, advisors can help ensure their client’s financial security, build long-term trust and differentiate themselves from their competitors,” Fry says.

If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.

Outside Advice Is Valuable, Even When Clients Are Knowledgeable

Some clients may be titans of business or professional heavyweights, which has helped them benefit financially. “But that doesn’t mean that they know how to budget, how much insurance to have, how to invest or what to do with their wealth in terms of estate and charitable giving,” says Amy Jo Lauber, a certified financial planner and founder of Lauber Financial Planning.

Lauber also says that non-high-net-worth clients, especially those looking to improve their financial situation, often have more financial awareness than those who are wealthy.

“I find people who are living paycheck-to-paycheck are much more aware of their financial situation because they need to be,” Lauber says.

 Index Funds Can Be a Foundation for Client Portfolios

“You do not have to have millions of dollars to own a piece of the largest 500 stocks in America,” says Stephen Maggard, CFP with Abacus Planning Group. “Putting $1,000 into an index fund that tracks the S&P 500 will spread your dollars among America’s 500 largest public companies. And it’s not expensive to do.”

Non-high-net-worth clients have the opportunity to take advantage of index funds that have affordable expense ratios, Maggard says. “These funds are a great way to capture market returns without paying an arm and a leg.”

Combining Money With Financial Planning Is Powerful

https://finance.yahoo.com/news/4-lessons-advisors-learn-high-170850089.html

What Does Your Personality Type Say About How You Handle Money?

 What Does Your  Personality Type Say About How You Handle Money?

The Traits of 5 Money Personality Types: What Does Yours Say About How You Handle Money?

Laura Bogart  Wed, April 10, 2024 GoBankingRates

Sometimes, money is more than money. The way you think about it (or don’t think about it), prioritize it (or don’t prioritize it), spend it (or don’t spend it), and save it (or don’t save it) can reflect aspects of your personality.

Learning more about the various personality types around money – and where you fall into the spectrum – can be a first step in healing, or strengthening, your relationship to money.

Financial experts and professionals encounter people with different personalities around money – sometimes within mere hours.

So, GOBankingRates talked to experts about some unique personality types around money to get a sense of their strengths and areas of healing.

The Compulsive Saver

One of the most common personalities Taylor Kovar, CFP, the founder and CEO of 11 Financial and the CEO of The Money Couple has observed that money is a compulsive saver.

Compulsive savers align with a drive to seek security in money.

“They prioritize stability and security, often opting for low-risk investments and maintaining a sizable emergency fund,” said Kovar. “They are cautious spenders, preferring to save rather than spend impulsively, reflecting their desire for financial safety and peace of mind.”

The Anxious Planners

As a trauma-informed finance professional at the Money Mindset Hub, Alejandra Rojas encourages her clients to consider how their childhood circumstances shaped their adult relationships with money.

She said that people always anticipating what could go wrong with their money and waiting for the other shoe to drop might be primed to expect the worst-case scenario from their youth.

“The way our parents or caregivers managed money plays a crucial role in shaping our financial habits today,” said Rojas. “For instance, growing up in a family that constantly struggled with money might lead someone to be very cautious with their finances, always looking to hold tight to money because they’ve learned to view money as a scarce resource.”

When working with clients who have anxiety around money for any reason, Rojas encourages them to see their past issues with money as old memories and learn how to separate deeper emotions from those memories.

The Strategic Planners

One of the healthier personality types around money is the strategic planner, who applies logic and care to their finances without catastrophizing. According to Kovar, while strategic planners seek security with their money, they emphasize methodical and disciplined financial planning.

“They set clear financial goals, create detailed budgets, and regularly review their progress,” he said. “They prioritize long-term financial security and are willing to make sacrifices in the present to achieve their goals, reflecting their desire for stability and control.”

The Big Spender

To Read More Click the LINK:

https://news.yahoo.com/finance/news/traits-5-money-personality-types-190007682.html

Americans Don’t Understand Inflation — This Is How It Actually Affects Your Money

Americans Don’t Understand Inflation — This Is How It Actually Affects Your Money

Cynthia Measom   Wed, April 10, 2024 at 10:00

Inflation — it’s a word you hear frequently, but do you really understand what it means?

What most people know about inflation is that it makes things more expensive. A simple definition of inflation is that it’s the increase in the cost of goods and services over a time period in an economy, which is usually expressed as a yearly percentage. Inflation rates are measured by price indexes, including the consumer price index by the Bureau of Labor Statistics and the personal consumption expenditures price index from the Bureau of Economic Analysis.

The main effects of inflation are better interest rates for savings accounts and higher costs of living, but there are several more nuanced effects to watch out for as you manage your money. Increasing your understanding about the different types of inflation and how they could impact your life both positively and negatively can help you make better financial decisions, especially when it comes to protecting your money now and in the long run.

Inflation Can Be Confusing

According to GOBankingRates’ 2024 Financial Literacy Survey, out of all current hot money topics — inflation, interest rates, Social Security and taxes — 38% of Americans find inflation to be the most confusing. Here’s a breakdown of the percentage of each age group that finds inflation most confusing:

18- to 24-year-olds: 29%

25- to 34-year-olds: 42%

35- to 44-year-olds: 41%

45- to 54-year-olds: 45%

55- to 64-year-olds: 35%

65 and over: 32%

Overall, respondents ages 18-24 and those 65 and over — members of the youngest and oldest age groups — find inflation to be less confusing than the other age groups. Respondents ages 45-54 find inflation to be the most confusing of all generations, followed people who are 25-34. Additionally, 40% of women versus 35% of men said that inflation was the most confusing of current hot money topics.

How Inflation Affects Your Money

Not all outcomes of inflation are bad. In fact, maintaining a healthy rate of inflation is good for the economy. Here are some of the positive and negative effects of inflation:

Positive: You’ll Get Better Savings Account Rates

Investors with short-term goals might invest in a high-interest savings account if they think they would need access to their funds in the near future. If this sounds like you, your short-term savings could get a boost because increasing inflation often prompts the Federal Reserve to raise interest rates, and banks, in turn, often raise the rates they pay on savings deposits. So you could benefit from a better return on money sitting in your cash or savings account.

Negative: Borrowing Becomes More Expensive

But those aren’t the only rates banks raise. When the Federal Reserve raises interest rates, it makes it more expensive for banks to borrow money from one another. These increased rates are then passed on to individual and business borrowers. The bottom line is that higher inflation means higher interest rates on the money you borrow — and less money in your pocket.

Negative: You’ll Pay More for Stuff

With inflation, prices of pretty much everything start to rise. Medical care and prices for prescription drugs could increase, and your rent could also go up. And unless your paycheck goes up at least as much as the inflation rate, you’ll be trying to pay for the increased costs of items on the same income, so inflation can be tough on the wallet — especially during hyperinflation.

To Read More Click Link:

https://news.yahoo.com/finance/news/americans-don-t-understand-inflation-140003599.html

America’s Biggest Bank Sounds the Alarm Bell

America’s Biggest Bank Sounds the Alarm Bell

Notes From the Field By James Hickman (Simon Black) April 8, 2024

Jamie Dimon, the CEO of JP Morgan Chase, did not open his annual shareholder letter with rosy language about the state of the world, or even enthusiasm about his bank’s record profits.

Instead, he describes “yet another year of significant challenges” including the war in Ukraine, war in the Middle East, extreme tensions with China, higher food and energy prices, turmoil in the banking sector, outrageous government deficits, and even major risks with the Federal Reserve’s monetary policy.

Dimon writes that “America’s global leadership role is being challenged outside by other nations and inside by our polarized electorate,” and that this is a “time of great crises”.

He went on with a few charts and thoughts about the bank’s business and financial performance over the last year… and then dedicated most of the remaining 57 pages of his letter to the serious problems which face the world.

His observations are wide-reaching-- from the decay of social cohesion to the prospect of war and higher inflation, to the serious potential for a reset of the Bretton Woods system (which made the US dollar the world’s reserve currency).

Frankly the letter almost reads as a manifesto written by someone who is completely fed up with government incompetence and positioning himself to run for office. I can’t agree with everything he says, but it’s obvious that his ideas are balanced and well thought out.

There are a few points in particular worth repeating.

1. Keep it in perspective; the world is not coming to an end

“If you read the newspaper from virtually any day of any year since World War II,” Dimon writes, “there is abundant coverage on wars — hot and cold — inflation, recession, polarized politics, terrorist attacks, migration and starvation. As appalling as these events have been, the world was generally on a path to becoming stronger and safer.”

This is absolutely a true statement. It’s easy to get caught up in the negativity while missing the abundance of growth and opportunity.

In the year 1918, most people probably thought that the world was coming to an end. The Great War was at its peak, economies were faltering, inflation was surging, rationing and shortages were everywhere… and then the Spanish flu popped up and killed tens of millions of people.

Bleak times indeed. And yet the next century was the most prosperous in human history… despite a very bumpy path along the way.

This is similar to where we are today. Yes, Inspired Idiots have caused a gigantic mess. But the general trajectory of the human species is still improving.

2. That said, long-term risks should not be underestimated. Especially for the West.

Dimon finds that there is “too much emphasis on short-term, monthly data and too little on long-term trends”, and he talks about inflation as a great example.

Economists and investors tend to be almost singularly focused on monthly inflation reports in an effort to divine if and when the Federal Reserve will cut interest rates.

They’re entirely missing the point, Dimon writes. Month by month, and even year by year, inflation numbers could vary wildly. But if you look at the big picture, you’ll see substantial evidence for future inflation.

We’ve been writing about this for a long time. In fact, since inception we’ve only been focused on long-term trends… and we see these as highly inflationary.

Similar to our view, Dimon understands how “ongoing fiscal [deficit] spending, remilitarization of the world, restructuring of global trade, capital needs of the new green economy, and possibly higher energy costs in the future” are all inflationary in the long run.

The inflation might not show up next month or next quarter, but he believes (as do we) that the coming years are full of “persistent inflationary pressures”.

There are also significant risks to the current US-led global order; America’s influence is waning, and Dimon writes that the “international rules-based order established by the Western world after World War II is clearly under attack by outside forces, somewhat weakened by its own failures [and] confusing and overlapping regime of policies.”

As part of this, he talks about the distinct possibility for a reset of the post-WW2 financial system (known as Bretton Woods) that anointed the US dollar as the global reserve currency. He puts it succinctly: “we may need a new Bretton Woods.”

We’ve been writing about this for years; the dollar’s decline is a long-term trend, but for us, it’s an obvious one. You cannot run multi-trillion-dollar deficits each year and still expect to be the world’s economic superpower.

It’s notable that even someone like Dimon can see this coming.

3. These problems are still solvable.

We’ve written extensively that the problems facing the US and the West are still solvable. For now. But every year that the problems continue to be ignored brings the country closer to a point of no return... where there is no way out but default.

Dimon is not shy about offering up suggestions, many of which we have written about in the past. He talks about border security, streamlining sensible regulations, and economic policies which prioritize growth.

“Unfortunately,” Dimon writes, “the message America hears is that the federal government does not value business — that business is the problem and not part of the solution.”

“There are fewer individuals in government who have any significant experience in starting or running a company, which is apparent every day in the political rhetoric that demonizes businesses and free enterprise and that damages confidence in America’s institutions.”

He says he finds it “astounding that many in Congress know what to do and want to do it but are simply unable to pass legislation because of partisan politics”.

He goes on to list a multitude of government failures and the “staggering number of policies, systems, and operations that are underperforming”, including pitiful public schools, broken healthcare, infrastructure woes (especially the energy grid), terrible immigration policy, Social Security’s looming insolvency, and more.

Dimon states very clearly that the federal government “needs to earn back trust through competence and effective policymaking.”

True statement. But I’m not holding my breath. Because in related news, the White House just announced that Joe Biden is working on yet another way to forgive student debt for 30 million Americans.

He doesn’t seem to care that the Supreme Court already rejected his previous effort to forgive student debt, saying he did not have the legal authority.

It’s pathetic that the cost of university education is so high… especially given how many degrees in an AI-world are useless. Plus many universities these days are just hotbeds of radicalization. It hardly seems worth taking on $80,000 of debt for such a dubious outcome.

But nevertheless, taxpayers have footed the bill for college and loaned out over $1 trillion to students across the country.

This is a basic tenet of capitalism (which Mr. Biden claims to embrace): debts have to be paid.

But because this guy’s poll numbers are so pathetic-- especially with young people-- he’s trying to score points by canceling their debts.

Well, canceling student debt means that taxpayers will lose hundreds of billions in loans that they made. So rather than taking steps to strengthen America’s balance sheet, the President is once again violating the law to make the balance sheet worse… all to improve his image among young voters.

This is hardly a way to restore trust in government. So again, I’m not holding my breath.

Dimon’s letter is worth the read if you have the time. You might not agree with everything he says, but it is rather telling that the CEO of the country’s largest bank is speaking so plainly about obvious risks.

It’s another reminder of why it makes so much sense to have a Plan B.

To your freedom,

James Hickman (Simon Black)  Co-Founder, Schiff Sovereign LLC

https://www.schiffsovereign.com/trends/americas-biggest-bank-sounds-the-alarm-bell-150673/

How To Switch Banks: An Easy Step-By-Step Guide

How To Switch Banks: An Easy Step-By-Step Guide

Follow these steps for switching banks painlessly.

Bob Haegele  Thu, April 4, 2024

Switching banks might seem like a daunting task. It means creating new accounts, updating automatic payments, and getting accustomed to your new bank’s policies and features. Even so, switching banks is sometimes necessary — and it could help you save money.

How? Perhaps other banks have lower fees or pay higher interest rates on their accounts. For instance, according to the Federal Reserve, the average national deposit rate on savings accounts was just 0.47% as of March 18, 2024. However, some high-yield savings accounts pay over 5% APY.

Whether you’re looking to switch due to better rates, lower fees, or some other reason, this guide will cover all the steps you need to take.

How to switch banks

The process of switching banks isn’t difficult if you follow the right steps. Here’s how to make the switch.

Step 1: Research Financial Institutions

If you’re thinking about switching banks, you probably already have one or two in mind. However, you should clearly understand why you plan to switch. Are you switching due to higher interest rates, lower fees, or better security? This will help guide your research so you can target banks with the right features.

Once you know why you want to switch, look into local banks, credit unions, and online banks. During your search, target financial institutions with features that motivate you to switch. Some banks may offer new customer promotions that offer a small reward for opening an account.

Step 2: Open Your New Account

Once you are ready to open your new account, gather the documentation you need to apply. This might include your driver’s license or passport for identity verification, proof of address, and Social Security number.

Based on your needs, decide which type of account you will open, such as a checking or savings account. Most banks and credit unions let you apply online, but you might also decide to open an account in person.

Fill out the form with all necessary information and submit it. Barring any issues, your new account will be open right away.

Step 3: Transition Automatic Payments And Deposits

An important step we don’t always consider is transferring your automatic payments and deposits to your new account. If any of these transactions fail, you could accidentally overdraft or delay an important payment.

First, make a list of all your automatic payments and transfers. These might include rent or mortgage payments, utilities, streaming services, and direct deposits from your employer. Don’t forget about automatic transfers that happen less often, like quarterly insurance premiums or annual dues.

Then, update your automatic transfers by visiting the provider’s website or app and updating your account with the new bank account information. The change may sometimes take one or two billing cycles to take effect.

Step 4: Transfer Your Money

https://news.yahoo.com/finance/personal-finance/how-to-switch-banks-185937891.html

Why Saudi Arabia’s Futuristic City Is A Sign Of Major Inflation To Come

Why Saudi Arabia’s Futuristic City Is A Sign Of Major Inflation To Come

Notes From the Field   By Simon Black/James Hickman  April 3, 2024

[Important Reminder: In case you missed our announcement from January 24, Sovereign Man has merged with Peter Schiff's media group. We are now called Schiff Sovereign, and our founder (Simon Black) has dropped the pen name and is now writing under his real name, James Hickman.]

Did you hear about the new streamlined tourist visa to Saudi Arabia? I’m sure you’re standing in line for it already.

No? Me neither.

I was actually stationed in Saudi Arabia for a while when I was in the Army… and, the most unique ‘tourist’ attraction, at least for non-Muslims, is a place we used to call “Chop Chop Square” where they would do the public beheadings and dismemberments of convicted criminals.

Aside from that, Saudi Arabia has virtually nothing to offer tourists. At least for now.

But over the past few years the government has set itself on a path to building massive futuristic cities and giant resorts in an effort to bring tourists and diversify its economy-- including a recently streamlined visa process.

But to me, this screams of desperation… because it means that Saudi Arabia’s oil industry is in serious trouble.

As recently as just a century ago, what we know as ‘Saudi Arabia’ today was just a bunch of nomadic tribes roaming the desert who were constantly at war with one another.

Then one day a tribal leader named Abdulaziz Ibn Saud rose to power, a bit like Genghis Khan, and conquered everyone else. And in 1932, he declared himself sole ruler of the newly established Kingdom of Saudi Arabia.

Initially he wasn’t King of much at all; Saudi Arabia was mostly just a desert backwater in the early 1930s.

But things began to change quickly when a major oil discovery was made in early March of 1938. And over the years, Saudi Arabia’s prominence in the world grew dramatically.

By 1970, Saudi Arabia had overtaken the United States as the world’s #1 oil producer, with daily output more than tripling over the course of that decade to roughly 10 million barrels per day.

Ever since then there has been almost a Homeric mythology that Saudi Arabia has a sort of inexhaustible ocean of oil, and they could just turn on a spigot and fill up millions of barrels.

But that’s simply not true.

In fact, more than 40 years later, Saudi Arabia produces less oil today than they did in 1980. And there has long been speculation that Saudi oil reserves might actually be running low.

Not long ago, in fact, the Saudi government announced that they would make investments in their oil infrastructure to increase their maximum production capacity to 13 million barrels per day… but nothing further.

In other words, they set a hard ceiling for how much oil they were capable of producing, essentially shattering the mythology of their infinite oil capacity.

Then, just two months ago, they reversed their plans, and announced that their maximum drilling capacity would be 12 million barrels, and not 13 million.

Both of these should have been taken as obvious indicators that Saudi Arabia’s oil reserves are well past their peak… and that they know it.

But there is perhaps no greater indicator than the Saudi government’s desperate attempt to give its economy a gigantic sexy makeover.

For example, Saudi Arabia is building a ski resort in the desert mountains... where it occasionally dips below freezing in the winter. Then there’s Neom, the futuristic megapolis planned for the coast of the Red Sea featuring flying cabs and an artificial moon.

Then there’s The Line, a city stretching for 170 kilometers across the desert. And of course there’s the Red Sea Project, a luxurious resort the size of Belgium.

The more Saudi Arabia launches these sorts of projects, the more obvious it becomes that they are running out of oil and are desperately trying to diversify their economy while they still have time.

The fact that Saudi Arabia even started selling off small pieces of its state-owned oil company, Saudi Aramco, back in late 2019 is another indicator.

They could have IPO’d in 1988… or 2005… or any other time. But they didn’t. It seems like they know they’re in decline, and they’re trying to monetize the mythology of their oil reserves while they still can.

Now, Saudi Arabia isn’t going to run out of oil anytime soon; rather, the larger point is that supply and demand fundamentals will likely lead to much higher oil prices in the future.

And this is very inflationary.

Oil is the most important energy commodity in the world, and so its price influences the price of just about everything. If oil prices spike, then it’s not just the price of gasoline that goes up.

The cost of operating data centers with racks of servers and GPUs will increase. Food costs will increase. Manufacturing costs will increase. Virtually everything will increase in price.

Energy prices, like just about all prices, are ultimately about supply and demand. And the demand side is pretty easy to see— it will most likely continue increasing as emerging economies and global population grow.

Yes, there may be a time off in the future where oil is no longer necessary. But that’s still a long way out. Because guess what critical commodity you need to produce solar panels and wind turbines? Oil.

Meanwhile, on the supply side, it’s clear that one of the world’s biggest oil producers is in decline. At a minimum, they won’t be able to increase production commensurate with the increase in demand. And they’ve flat out admitted to that.

Meanwhile, another of the world’s biggest oil producers, the United States, is going out of its way to obstruct oil companies.

They create special taxes to penalize them. They refuse to follow the law and auction off concessions. They never miss an opportunity to demonize them.

Even in the financial industry, bankers and investors deprive the industry of the funds necessary for exploration. Hedge funds have taken over the Boards of major oil companies and forced them into inefficient green energy projects.

The United Nations hosts entire summits about phasing out oil production.

And let’s not forget about the fanatics who vandalize art museums and glitter bomb public sporting events to demand that the world “just stop” producing oil.

So, we have rising demand coupled with policies that restrict supply. The end result, predictably, has been rising oil prices, which are now hovering around $85-$90.

This is one of the reasons why the inflation numbers remain high; again, expensive energy impacts core inflation.

I write a lot about why we think the future is inflationary, and a lot of it has to do with the tidal wave of debt and government spending.

But that’s just one source of inflation. Higher energy prices are another.

Like the debt problem, however, the energy problem is also solvable. There’s plenty of oil in the world-- the issue is just misguided policy. There are also other technologies (like nuclear) which can provide abundant, cheap, clean energy.

 There doesn’t seem to be much appetite among the environmental fanatics who enjoy complaining, but not actually solving any problems.

Now, one way to offset this oil cost inflation is to own shares of the oil companies themselves; and right now, several of them that are very cheap since it’s apparently not socially acceptable to own them.

In our investment research newsletter the 4th Pillar, we highlighted a highly profitable oil producer that is practically debt-free, and trading at a very attractive Price/Earnings ratio of just 3.4.

The company was able to turn a strong profit when oil prices were low, and they’re positioned to do extremely well as oil prices go higher.

Of course, no one can be happy about the prospect of future inflation.

But there are solutions. And if you understand what’s likely coming, you can take steps now to reduce the impact or even potentially benefit from inflation.

To your freedom,  James Hickman  

Co-Founder, Schiff Sovereign LLC

PS. I mentioned an oil company we have researched for our investment research newsletter the 4th Pillar. So far, we have added three to our portfolio. But oil isn’t the only critical real asset we discuss.

We’ve also detailed gold miners, iron works, shipping companies, agriculture, and so many more vital investments that make the world go round.

They all have something in common— they are great investments to guard against, or even benefit from, inflation, and they are all trading at extremely low valuations.

You can learn more about the 4th Pillar here.

https://www.schiffsovereign.com/trends/why-saudi-arabias-futuristic-city-is-a-sign-of-major-inflation-to-come-150337/

3 Times You Should Never Ask For $100 Bills at the Bank

I’m a Bank Teller: 3 Times You Should Never Ask For $100 Bills at the Bank

Andrew Lisa  Wed, April 3, 2024  GoBankingRates

According to data intelligence firm SAS Analytics, $100 bills account for 34% of paper currency in circulation in the U.S. and 82% of its value.

In short, most of our paper money is in hundreds — by a mile — but that doesn’t mean there’s never a bad time to walk into a bank branch and ask for one.

Whether you need a fresh, crisp C-note to put in a birthday card, a wedding envelope or just to stash in your emergency cash pile at home, you’ll want to pick your moment.

Here’s what you need to know.

A Note About the Curious, Cumbersome and Crime-Fueling C-Note

The Wall Street Journal and the New Republic are among several publications that have recently reported on a peculiar monetary irony. Although the $100 bill is far and away the most common note — it surpassed even the ubiquitous $1 bill in 2016 — it’s the least commonly used, by far.

ATMs don’t stock hundreds, many retailers don’t accept them and the mere sight of one makes register clerks reach for the counterfeit-detection pen. Look in your wallet. It’s likely you’re not holding any hundreds, and neither is the vast majority of upright citizens.

Bye, Bye, Benjamin?

As part of a longstanding campaign to stop printing and even recall existing $100 bills, the New Republic wrote, “Benjamins are the favorite currency of criminals and almost no one else.”

Rich tax evaders, corrupt foreign officials, money launderers, counterfeiters and other bad actors hoard them, but the law-abiding masses rarely use them except for overseas travel or special occasions.

As far back as 1976, an economist named James Henry called for an end to the $100 bill in an article in The Washington Monthly because — even nearly a half-century ago  — it was the preferred currency of organized crime and tax evaders almost exclusively. In 1945, the Treasury stopped printing $500 and $1,000 bills; and, in 1969, it recalled all remaining $1,000 bills, $5,000 bills and $10,000 bills because of their overwhelming prevalence in money laundering.

That leaves just the mighty C-Note at the top of the hill.

In short, there’s no bill quite like the Benjamin, and asking a bank for one isn’t like asking for any other denomination. Here’s when to avoid doing so.

Avoid Peak Banking Hours

Michael Ashley is a financial planner and the founder of the personal finance site Richiest, but he spent years as a bank employee at Wells Fargo and Citi, two of the largest financial institutions in the country and the world.

To Read Full Article Go Here:

https://news.yahoo.com/finance/news/m-bank-teller-3-times-170019553.html