DINARRECAPS8 10/1/19 DINARRECAPS8 10/1/19

When Lying to Yourself Pays Off

.When Lying to Yourself Pays Off

By Charlotte Cowles

The Cut’s financial advice columnist Charlotte Cowles answers readers’ personal questions about personal finance. Email your money conundrums to mytwocents@nymag.com

Some depressing (but unsurprising) news for optimists: We are delusional. Things generally take longer, cost more, and have a higher chance of going awry than we think they will, and there’s not much we can do about it.

We should probably know better than to cling to our unrealistic expectations, but somehow we never learn. This persistent phenomenon (known as optimism bias) afflicts about 80 percent of humans, according to Tali Sharot, a neuroscientist at University College London.

While optimism has its benefits, it’s not exactly great for financial planning. It causes people to underestimate the likelihood that they’ll experience expensive, commonplace setbacks like injury, market downturns, or a leak in the roof.

Almost all entrepreneurs test high for optimism — and most of their businesses fail. And on a larger scale, optimism bias can cost billions: A Harvard study of 33 countries found that most government agencies were overly confident in their budget planning, particularly when times were flush, resulting in large deficits.

DINARRECAPS8 10/1/19 DINARRECAPS8 10/1/19

How To Teach Yourself to Succeed with Money

.Personal Finance 101: How To Teach Yourself to Succeed with Money

Invested Wallet

Personal Finance 101 is the beginning steps you can take to really become self-sufficient with your money. It will include various areas like understanding expenses, creating a budget, saving and investing basics, and more.

Many of these concepts may appear difficult to manage or that you must be highly educated to do so on your own. But you — and anyone — can teach themselves to succeed with money.

You don’t need to be an expert to manage your finances and you can have little to no previous background, but still gain control financially.

Below, I’ll share some of the steps I took to teach myself and hopefully you can apply this to your own personal finances. Will it be easy? No. But it’s certainly not extremely challenging either.

DINARRECAPS8 9/30/19 DINARRECAPS8 9/30/19

The Only Fix Is Taking Matters Into Your Own Hands

.Notes From The Field By Simon Black

September 30, 2019 Bahia Beach, Puerto Rico

The Only Fix Is Taking Matters Into Your Own Hands

On Friday evening, the government here in Puerto Rico made an announcement to local retirees that many of them would have their pensions cut.

Poof. Just like that.

The pension cut is part of a debt restructuring plan to help Puerto Rico emerge from bankruptcy, which they declared in May 2017.

Bankruptcy is complicated, so I’ll explain a bit here.

DINARRECAPS8 9/26/19 DINARRECAPS8 9/26/19

.11 Steps to Make $1 Million Last 30 Years in Retirement

Derek Silva, CEPF® | OCT 02, 2018

The average life expectancy in the U.S. has increased dramatically from about 70 in 1967 to about 80 in 2017. Those who reach age 65 also have a one in five chance of living into their 90s. A longer life is great news. It means you have time to check more off your bucket list.

At the same time, it means you need to plan for a longer retirement. If you retire at 65, a 30-year retirement is quite possible. Even if you save $1 million for your retirement, you have to make sure to budget it out so it lasts.

Here are 11 steps to set yourself up for a happy retirement without draining your savings too soon.

DINARRECAPS8 9/21/19 DINARRECAPS8 9/21/19

.To Gift or Not to Gift

By TRACY CRAIG, FELLOW, ACTEC, AEP®, Partner and Chair of Trusts and Estates Group | Mirick O'Connell September 10, 2019

Sometimes it can be wise (or just pleasurable) to give your assets away while you're still alive.

In estate planning, giving away assets during your lifetime has traditionally been used to help lower estate taxes when you die. However, the federal estate tax exemption amount (the amount under which federal estate taxes do not apply) is currently $11.4 million per person and has been increasing each year due to inflation indexing, so federal estate taxes only apply to 0.1% of people.

The federal exemption amount is scheduled to fall to approximately $6 million (when taking into account future estimated increases for inflation) per person in 2026 (unless Congress changes the law), and even then only about 0.2% of people will be affected.

So, while taking action to avoid federal estate taxes is not necessary for over 99% of the population, there are at least three reasons why gifting may still make sense for you and your family:

DINARRECAPS8 9/13/19 DINARRECAPS8 9/13/19

.‘Is It a Bad Idea to Borrow $1K From My Friend?’

By Charlotte Cowles

I got laid off a few months ago and I’m still looking for a new job. I’ve been getting by with random work (babysitting mostly), but I’ve finally hit a point where I don’t think I’ll make rent this month.

I can’t ask my parents for help (they’re not in great financial shape either), and at this point, I think my best bet is to borrow money from a friend.

Her family seems well off, so I don’t think I’d be putting her in a tough spot. I also know she lent another friend money a little while ago. I just have no idea how to ask her, and I don’t want it to hurt our friendship.

If she gave me a loan, ideally around $1,000, I could have some breathing room to search for a good job. How do I go about this? Or is there another, better option that I don’t know about?

DINARRECAPS8 9/10/19 DINARRECAPS8 9/10/19

.Why America’s Families Are Struggling Financially

The finances of Americans may not be as good as they look from the outside.

Despite optimistic metrics like a nine-year-long bullish, if volatile, stock market, higher than expected job and wage growth, and consumer confidence levels nearing record highs, millions of Americans continue to struggle, a study released last week from financial consultancy nonprofit the Center for Financial Services Innovation (CFSI) found.

Only 28% of Americans are considered “financially healthy,” according to a CFSI survey of more than 5,000 Americans. “Financial health enables family stability, education, and upward mobility, not just for individuals today but across future generations,” the CFSI says. “Many are dealing with an unhealthy amount of debt, irregular income, and sporadic savings habits.”

Dinar Recaps 20 9/10/19 Dinar Recaps 20 9/10/19

."Financial Advisors and What They Do" Posted by MRiles at TNT

.TNT:

MRiles: Essential Questions for a Financial Advisor

By Wendy Connett Updated Jun 25, 2019

Choosing the right financial advisor is, in essence, taking the time to invest in what should be a long-term professional relationship that keeps your financial health and future on the right track. The search should go well beyond referrals from colleagues, friends and family and an emphasis on investment performance.

In fact, investors should dedicate as much effort as they would to finding a medical professional with whom they trust their physical well-being. The right financial advisor will provide the professional help needed to reach long and short-term financial goals.

The following are questions that should be asked when choosing a qualified financial advisor. If they can’t or avoid answering them keep looking.

For advisors, being able to answer these questions may be the difference between whether or not a potential client decides to choose you over a competitor.

DINARRECAPS8 9/7/19 DINARRECAPS8 9/7/19

.How to Use the Compounding Technique to Reach Success

How to Use the Compounding Technique to Reach Success

By Sim Campbell

Imagine this: a wealthy man gives you two choices. He will gifts you a million dollars in liquid cash right now…or a penny doubled every day for 30 days. Which one would you choose?

“I’d take the million…gimme, gimme, gimme!”

I can see you salivating right now. But…not so fast.

Wouldn’t you rather consider the penny?

“C’mon. It’s just a penny.”

Ah… that’s where you’re wrong.

DINARRECAPS8 9/6/19 DINARRECAPS8 9/6/19

.15 Personal Finance Rules to Live By

The following is a guest post from Marc at VitalDollar.com.

Have you ever wondered what separates those who are successful financially with those who are not? Have you felt like your income should allow you to live a much more comfortable life than what you are experiencing?

Personal finance doesn’t have to be complicated. There are a few basic rules that you should follow, and if you do that, everything else falls into place.

This article covers some of the most basic and most powerful financial rules that should impact your everyday life.

1. Spend Less Than You Earn

Arguably, the most important financial rule is to spend less than you earn. Regardless of how much money you make, it’s impossible to get ahead if you’re spending it all. Even worse, you could be going backward and accumulating debt if you’re spending more than you earn.

DINARRECAPS8 9/6/19 DINARRECAPS8 9/6/19

.8 Common Causes of Debt — And How to Avoid them

By Tim Lemke

Debt plagues millions of Americans every day. It is such a common problem that many of us don't even think twice about what we owe, or how we landed in such a predicament.

The simplest explanation is that debt happens when you spend more than you earn. But it's not actually that simple when real life steps in. Unexpected events, bad planning, and even a decision to pursue an education can leave you facing big debt that may take years to pay off.

By understanding some of the main causes of debt, we can make better financial decisions in avoiding it. Let's take a look at some of the worst offenders.

1. Medical expenses

Medical costs have long been one of the leading causes of bankruptcy in the United States. Even those with health insurance are not immune to medical debt. An illness, injury, or health condition can cause bills to quickly accumulate.