Preparing Our Children to Inherit Wealth
.Preparing Our Children to Inherit Wealth
By Muhammad Ali
“The future depends on what you do today” Gandhi
Now this is a vast subject and a complicated one as there are many factors involved as to the amount of wealth transfer that will be left behind, the number of children involved and their age levels.
When you google the topic, you will find many websites related to preparing children for wealth, however, I believe there is a difference between preparing our children for wealth and to inherit wealth.
As I said in a previous article, one of the first things we should do, after RV, is setup our Team and once our children reach the age of maturity (usually around 25 years of age) we will introduce them to the Team.
So our estate planning attorneys and financial advisors are ready, willing, and able to help prepare our children to inherit our wealth. Yet many of these plans will fail even in cases where all the documents are in place. Failure does not mean that our children will not receive the money.
It means that the money may create stress and resentment among siblings and other family members instead of the benefits we may have intended.
Preparing Our Children to Inherit Wealth
By Muhammad Ali
“The future depends on what you do today” Gandhi
Now this is a vast subject and a complicated one as there are many factors involved as to the amount of wealth transfer that will be left behind, the number of children involved and their age levels.
When you google the topic, you will find many websites related to preparing children for wealth, however, I believe there is a difference between preparing our children for wealth and to inherit wealth.
As I said in a previous article, one of the first things we should do, after RV, is setup our Team and once our children reach the age of maturity (usually around 25 years of age) we will introduce them to the Team.
So our estate planning attorneys and financial advisors are ready, willing, and able to help prepare our children to inherit our wealth. Yet many of these plans will fail even in cases where all the documents are in place. Failure does not mean that our children will not receive the money.
It means that the money may create stress and resentment among siblings and other family members instead of the benefits we may have intended.
There have been studies on wealth transfer that show children are not prepared to receive such wealth. Rarely are the failures due to legal, tax, or investment advice.
The failures to prepare our children to inherit our wealth are usually the result of a breakdown in trust and communication among family members. So may be this is where we need to start.
The solution to prepare our children to inherit our wealth is to have open, honest communication about money with our family members before they inherit the assets. This does not mean that they need to know how much money we have or see copies of our financial statements or financial plan.
The key is that our children appreciate the challenging work and sacrifice that was involved in earning and saving the money, in otherwise, all those years of waiting for the RV. We need to pass on our values along with the money.
So the next obvious question would be, how do we pass our values to our children. After doing a lot of reading and research on this subject, I realized there is a simple way we can do this and that's by sharing our RV stories with our children. The years of waiting, the stress, the anxiety of being close and hearing very soon and "this weekend".
The motivation of holding on to the currencies when we could have sold them off to have more food on the table. The sacrifices that we made to buy the currencies and how and where we stored them.
May be, some even lost or had to sell off some of their currencies. May be for some, their RV stories are more serious, with bankruptcies and being evicted and living in their cars for an extended period of time. I have a couple in my group in Malaysia that has debtors who are threatening with legal actions and even threatening with bodily harm, if their money is not returned. These matters are extending to Police reports and courts and what amazes me, these are all family involved issues.
And then there are some others, may be living on budgets and limited choices of meals and/or eating out. Some losing their jobs but still wanting to hold on to their currencies or some not able to buy extra gifts for the children around celebration times.
In some cases, may be tensions between husband and wife over buying the currencies, so whatever the cases may be, we all have stories of hardships and trials of waiting for the RV.
So this is my belief and I believe the best way to teach our children about money is through our RV personal stories. These are the memorable moments and lessons in our lives. Our children will remember the personal beliefs that motivated and drove us to take risks, save, and invest for the future.
It is through an understanding of those transformative moments in the family’s history that our children will begin to appreciate values and develop a feeling of responsibility that comes with their family’s financial success.
And something important to remember as parents we cannot simply impose our beliefs, values, and priorities on to our children. The children should be heard and respected, and they should have a role in shaping the family’s values and philanthropic focus. Consider asking your children questions instead of telling them how they should act or what their financial priorities should be.
Successful wealth transition cannot be built overnight or through a single action or trust document, but instead requires open, ongoing communication and education. It will take time.
And on that note, I will conclude this article.
Thank you and I wish you all the success in your currency exchange.
Muhammad Ali
www.CurrencyExchangePlanner.com
The No. 1 Planning Tool for the Dinar community.
Available in Desktop PC/MAC and Mobile App (Android & IOS) versions
https://www.currencyexchangeplanner.com/article-19-children-and-wealth
5 Financial Tasks To Tackle Now
5 Financial Tasks To Tackle Now
5 Financial Tasks You Should Tackle by the End of 2019
Posted by News Team | Nov 23, 2019 | Personal Finance
A task without a deadline is just wishful thinking.
Sometimes, you can get away with procrastinating. If you never get around to alphabetizing your spices, no one’s life will change. But putting off some tasks could have a huge impact on loved ones.
The close of the year is a good time to set some firm deadlines to make sure you won’t leave a financial mess for people you love if you unexpectedly die or become incapacitated. Consider putting these items on your to-do list with a Dec. 31 due date:
1. Check Your Beneficiaries
If you need convincing that updating beneficiaries is important, consider the case of David Egelhoff, a Washington state man who died two months after his divorce was final in 1994.
Because he had not changed his beneficiaries, his life insurance proceeds and pension plan were paid to his ex-wife rather than his children from a previous marriage. The children sued, and the case went all the way to the U.S. Supreme Court, which ruled in 2001 that the beneficiary designations had to be honored.
5 Financial Tasks To Tackle Now
5 Financial Tasks You Should Tackle by the End of 2019
Posted by News Team | Nov 23, 2019 | Personal Finance
A task without a deadline is just wishful thinking.
Sometimes, you can get away with procrastinating. If you never get around to alphabetizing your spices, no one’s life will change. But putting off some tasks could have a huge impact on loved ones.
The close of the year is a good time to set some firm deadlines to make sure you won’t leave a financial mess for people you love if you unexpectedly die or become incapacitated. Consider putting these items on your to-do list with a Dec. 31 due date:
1. Check Your Beneficiaries
If you need convincing that updating beneficiaries is important, consider the case of David Egelhoff, a Washington state man who died two months after his divorce was final in 1994.
Because he had not changed his beneficiaries, his life insurance proceeds and pension plan were paid to his ex-wife rather than his children from a previous marriage. The children sued, and the case went all the way to the U.S. Supreme Court, which ruled in 2001 that the beneficiary designations had to be honored.
You’re typically prompted to name beneficiaries when you sign up for a 401(k) or other retirement account. Beneficiaries also are usually required when you buy annuities or life insurance. You often can check and change beneficiaries online, or you may need to call the company to request the appropriate form.
2. Review Pay-On-Death Designations
You may not have been required to name beneficiaries when you opened your checking account or a non-retirement investment account. Instead, financial institutions may offer a “pay on death” option.
This allows you to name a beneficiary who can receive the money directly. Otherwise, the account typically has to go through probate, the legal procedure to distribute your property after you die.
Some states also have “transfer on death” options for vehicles and even real estate. Like pay-on-death accounts, these options allow you to pass property directly to heirs without the potential delays and costs of probate.
Beneficiaries can be added to vehicle registrations in Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Illinois, Indiana, Kansas, Maryland, Missouri, Nebraska, Nevada, Ohio, Oklahoma, Texas, Vermont and Virginia, according to self-help legal site Nolo. To add or change a beneficiary, you apply for a certificate of car ownership with the beneficiary form.
Transfer-on-death deeds for real estate are available in Alaska, Arizona, Arkansas, California, Colorado, District of Columbia, Hawaii, Illinois, Indiana, Kansas, Michigan, Minnesota, Missouri, Montana, Nevada, New Mexico, North Dakota, Ohio, Oklahoma, Oregon, South Dakota, Virginia, Washington, West Virginia, Wisconsin and Wyoming, according to legal site RocketLawyer.
To add or change a beneficiary, the deed must be submitted to the appropriate county recorder.
To continue reading, please go to the original article here:
Your Life or Your Money
.Your Life or Your Money
By Anna Von Reitz
We all need to understand that FRN's are not your money. Never were. Federal Reserve Notes are I.O.U.'s that belong to the Federal Reserve. They are private script, just like when you (might) give someone an I.O.U.
They are responsible for paying it, but with what?
They haven't used actual money since 1933.
They've just passed debts around "as" money, and passed off their debts as your debts, as the "presumed" co-signers purportedly backing it.
They've inflated this currency 98% and this whole past month, they poured another trillion "dollars" of debt into the stock market, to prop it up at "your" expense.
This serves to further in-debt your family and bail out the corporations and banks at your expense. It also devalues whatever serves as currency yet some more, which shows up as inflation of prices at the gas pump and food stores and everywhere else.
We've seen close to a 30% price increase for many food items here in Alaska in the past three months alone. Nobody is talking about it, but, if you are paying attention or living on a limited income, you are feeling it and your discretionary income is evaporating. Worse, the value of any savings or retirement you have is evaporating, too.
Their excuse for propping up the stock market at your expense is that they have invested heavily in all these corporations "for" you, using your money. So now they are throwing more of your money at these corporations and at the stock market, also "for" you, when in fact those stocks are grossly overvalued already and the money markets and pension funds --- which they also invested in "for" you --- are based on "derivatives" and phony electronic titles and so-called "mortgage backed securities"---which are also bogus.
We have, unknown to us, been living in the Land of Oz for almost a century.
So, here's the picture: we are the actual, factual primary creditors of these banks, but they are pretending that we and all our earthly assets are instead "donated collateral" backing their debts in a commonwealth (communist) system of government that is in fact foreign to us.
Your Life or Your Money
By Anna Von Reitz
We all need to understand that FRN's are not your money. Never were. Federal Reserve Notes are I.O.U.'s that belong to the Federal Reserve. They are private script, just like when you (might) give someone an I.O.U.
They are responsible for paying it, but with what?
They haven't used actual money since 1933.
They've just passed debts around "as" money, and passed off their debts as your debts, as the "presumed" co-signers purportedly backing it.
They've inflated this currency 98% and this whole past month, they poured another trillion "dollars" of debt into the stock market, to prop it up at "your" expense.
This serves to further in-debt your family and bail out the corporations and banks at your expense. It also devalues whatever serves as currency yet some more, which shows up as inflation of prices at the gas pump and food stores and everywhere else.
We've seen close to a 30% price increase for many food items here in Alaska in the past three months alone. Nobody is talking about it, but, if you are paying attention or living on a limited income, you are feeling it and your discretionary income is evaporating. Worse, the value of any savings or retirement you have is evaporating, too.
Their excuse for propping up the stock market at your expense is that they have invested heavily in all these corporations "for" you, using your money. So now they are throwing more of your money at these corporations and at the stock market, also "for" you, when in fact those stocks are grossly overvalued already and the money markets and pension funds --- which they also invested in "for" you --- are based on "derivatives" and phony electronic titles and so-called "mortgage backed securities"---which are also bogus.
We have, unknown to us, been living in the Land of Oz for almost a century.
So, here's the picture: we are the actual, factual primary creditors of these banks, but they are pretending that we and all our earthly assets are instead "donated collateral" backing their debts in a commonwealth (communist) system of government that is in fact foreign to us.
The Land of Oz.
The truth is easy to ascertain. We have literally millions of Witnesses. Nobody outside the environs of Washington, DC, was ever told what was going on. Not only were we not told a word about any of this, we were deliberately misled and lied to and coerced under color of law. By our own employees.
To make things more interesting, the criminals in back of all this fraud and racketeering, sought bankruptcy protection in 2009, and as a result, in 2011, all the "Federal Reserve Notes" became utterly worthless, backed by nothing at all but the good faith of Congress --- the same rogues that created the situation in the first place.
Please bear in mind that Federal Reserve Notes are NOT "United States Dollars" nor "United States Notes", either. You must pay attention -- close attention -- to what you are holding in your hands. And in your bank accounts.
So, there you are, misidentified as a Municipal "citizen of the United States", on the hook as the "presumed" co-signer for all these debts, and according to them, all your assets should be forfeit to their creditors, most especially, the Communist Chinese.
Enter two factions of the "US" military and a Wild Card ---- one faction, the Municipal DOD, is happy to see America overrun and sacked for debts it doesn't owe, because the alternative is paying their own debts. They and their endlessly criminal US NAVY are on our backs, as if it were our fault that their Roman Government is led by criminals and schmucks.
The Territorial Department of Defense is stuck in the middle, having a contract and obligation to defend us. That's the second military faction.
And then, there's the Wild Card. This is basically one man, who they shafted many times too often. He has, all by himself, locked down the hard asset accounts of the world and nothing that they can do is of any avail.
There they are, wiggling like dying bugs, or vampires, an encrypted computer program straight through their hearts, trying to convince us after all that has gone on, that digital "currency" is the way to go.
If it were, they wouldn't be in the position they are in, would they? Held captive by a single computer geek.
Digital currency is just more fiat-on-speed, having even less connection with reality. We would be better off conducting business using plastic clothes pins as tokens. At least such objects have actual substance and a practical use.
To continue reading, please go to the original article here:
https://inteldinarchronicles.blogspot.com/2019/11/anna-von-reitz-your-life-or-your-money.html
How to Protect Your Finances in Case of a Recession
.How to Protect Your Finances in Case of a Recession
By Emily Guy Birken November 12 2019
According to the financial news sector, it seems probable that we're headed toward a recession. Grim-faced economists think our current historic economic expansion is headed for a fall, and the news of a looming recession couldn't feel scarier.
There's good news and bad news about these opinions. The good news is that no one has a crystal ball, which means even the savviest of economic forecasters can't possibly know what our economy will do in the future. However, we do know that certain financial trends cannot go on indefinitely. (Remember in 2007 when we all thought housing prices could only ever go up? We learned the hard way in 2008 that nothing keeps growing forever.)
So how can you prepare for a recession that may or may not happen in a time frame you can't predict? Thankfully, there are a number of actions you can take today to protect yourself, and your finances.
Bolster Your Emergency Fund
Financial experts recommend that everyone build an emergency fund that could cover three to six months' worth of expenses. Your emergency fund can get you through a period of unemployment until you land your next job.
How to Protect Your Finances in Case of a Recession
By Emily Guy Birken November 12 2019
According to the financial news sector, it seems probable that we're headed toward a recession. Grim-faced economists think our current historic economic expansion is headed for a fall, and the news of a looming recession couldn't feel scarier.
There's good news and bad news about these opinions. The good news is that no one has a crystal ball, which means even the savviest of economic forecasters can't possibly know what our economy will do in the future. However, we do know that certain financial trends cannot go on indefinitely. (Remember in 2007 when we all thought housing prices could only ever go up? We learned the hard way in 2008 that nothing keeps growing forever.)
So how can you prepare for a recession that may or may not happen in a time frame you can't predict? Thankfully, there are a number of actions you can take today to protect yourself, and your finances.
Bolster Your Emergency Fund
Financial experts recommend that everyone build an emergency fund that could cover three to six months' worth of expenses. Your emergency fund can get you through a period of unemployment until you land your next job.
However, losing your job during a recession could be a little more dire than losing it at any other time. When the economy as a whole has taken a hit, it can be much more difficult to find another employer who is hiring. This is why the median unemployment length during the recession was more than 25 weeks (nearly six months), whereas the current median length of unemployment is just over 9 weeks.
Now is an excellent time to add to your emergency fund. Start an automatic transfer to your savings account with every paycheck, and look for other ways to beef up that fund.
If you don't have an emergency fund that could handle a lengthy unemployment, there's no need to panic. Remember: anything you can put away will be helpful if you do find yourself with a pink slip.
Create Your Plan B Budget
Another proactive step to take is to map out what would change about your spending habits if you were to lose your job or take a pay cut. Going through your current budget and identifying the items you could cut can help reassure you that your emergency fund will weather a loss of income.
You could even challenge yourself to make some small cuts now and see if you miss your former expenditures. That can free up some extra money (more for the emergency fund!) and help you feel more in control of your spending now and in the future.
Attack Your Credit Card Debt
If you're carrying a balance on your credit cards, now is a good time to get aggressive with your payoff plan. Carrying debt into a recession could make for an overwhelming burden if you experience a pay cut or a layoff. You'd hate to find yourself unable to pay your credit card bills — and have to deal with debt collectors — when you're already feeling financially stressed.
To continue reading, please go to the original article here:
https://www.wisebread.com/how-to-protect-your-finances-in-case-of-a-recession?ref=relatedbox
The 3 Things To Build Wealth
The 3 Things To Build Wealth
By Steve Adcock
In December, I celebrated my two year anniversary of early retirement from full-time work. In 2016, I quit the rat race at 35 to pursue projects that I actually cared about (imagine that!).
Without the relatively comfortable full-time paycheck.
It’s been an amazing ride. I’ve learned a ton about freedom and what it really means to control every second of your day. Believe it or not, it’s not quite as cut-and-dry as many people believe.
I’ve written about my story a lot, and I’m as transparent as I can possibly be. We’re not your rags to riches story.
Both my wife and I enjoyed a solid upbringing as children. Neither of us struggled through college or to find a job. We both earned highly-marketable degrees and made good money in the technology sector.
In fact, we pulled down a combined $250,000 in our last years working.
We know how to build wealth, and those techniques enabled us to quit full-time work pretty damn early. We’re both in our 30s and we’re proud of what we’ve accomplished.
How did we manage to build so much wealth? It’s simple, though not necessarily easy. And, it generally takes a lot fo time. Let me explain.
How to build huge wealth in 2019
First, let’s set the record straight about high incomes.
If you believe that earning a big salary is the only way to build massive wealth, then you’re wrong.
Just. Plain. Wrong.
The 3 Things To Build Wealth
By Steve Adcock
In December, I celebrated my two year anniversary of early retirement from full-time work. In 2016, I quit the rat race at 35 to pursue projects that I actually cared about (imagine that!).
Without the relatively comfortable full-time paycheck.
It’s been an amazing ride. I’ve learned a ton about freedom and what it really means to control every second of your day. Believe it or not, it’s not quite as cut-and-dry as many people believe.
I’ve written about my story a lot, and I’m as transparent as I can possibly be. We’re not your rags to riches story.
Both my wife and I enjoyed a solid upbringing as children. Neither of us struggled through college or to find a job. We both earned highly-marketable degrees and made good money in the technology sector.
In fact, we pulled down a combined $250,000 in our last years working.
We know how to build wealth, and those techniques enabled us to quit full-time work pretty damn early. We’re both in our 30s and we’re proud of what we’ve accomplished.
How did we manage to build so much wealth? It’s simple, though not necessarily easy. And, it generally takes a lot fo time. Let me explain.
How to build huge wealth in 2019
First, let’s set the record straight about high incomes.
If you believe that earning a big salary is the only way to build massive wealth, then you’re wrong.
Just. Plain. Wrong.
It makes us feel better to believe that we’ll never be able to retire early without a huge income, but that’s just not true. The truth is a high-income job often comes with a set of assumed requirements that keep high-income earners churning on the hamster wheel for years.
You might be surprised at how many high income earners still live paycheck to paycheck just to maintain their high income job.
The strategies that I’m about to talk about apply to anyone – with any level of income. Big incomes or small, building wealth ultimately comes down to a small set of insanely basic principles.
Principle #1: Invest Your Cash
Nobody ever got rich just by “saving money“. Those articles about how to save money by ordering water instead of a soft drink in restaurants? Yeah, that’s nonsense. That’s not how we build wealth.
Wealthy people build wealth by devoting years of their life to investing their cash in appreciating assets.
Wow. Okay, what does this mean? It means we’re not just putting our money in a bank. That only makes banks rich. Instead, we’re placing additional value on our cash by investing it in assets that gain value over time.
Historically, the stock market builds serious wealth for investors. This chart from Macro Trends shows how the Dow Jones has performed over the years. Over time, Wall Street investors tend to build wealth because their investments appreciate. They go up in value as this chart demonstrates.
Others, like Chad Carson, invest in real estate to build wealth. Real estate investors buy properties to rent to companies and/or families.
In whatever way you choose to save your money in 2019, investing your cash in appreciating assets builds wealth over time.
How much should you invest? There isn’t a one-size-fits-all approach.
I always encourage new investors to talk to a financial advisor to develop an investment strategy that works best for them. But if you’re looking for high-level advice:
If you don’t have an emergency fund, start one now. The immediate goal is to build up at least three months of living expenses to account for an unexpected job loss or health issue.
Take advantage of company-sponsored 401ks. Many companies match contributions made by their employees. This is free money. And, 401ks reduce your taxable income. Talk to your company about investment opportunities. They might even provide free financial advisor services.
To continue reading, please go to the original article here:
The Five Scary New Rules Of Upside-Down Capitalism
.The Five Scary New Rules Of Upside-Down Capitalism
Notes From The Field By Simon Black
November 20, 2019 San Juan, Puerto Rico
Roughly 23,000 years ago in modern-day Israel, a small tribe of ex-cave dwellers built a tiny village near the Sea of Galilee that may have been one of the earliest agrarian societies in human history.
Archaeologists discovered the site more than thirty years ago.
And they found tens of thousands of well-preserved seeds and agricultural tools, suggesting that the people who lived there planted a great deal of food in the fertile lands nearby.
As historian Will Durant once wrote, “the first culture is agriculture.” And he was right. Civilization as we know it has its foundations in agriculture.
When human beings came out of caves, stopped roaming the wild, and began planting seeds to feed their families and tribes, they were able to produce more food than they consumed for the first time in the history of our species.
And because it only took a handful of people to feed an entire village, everyone else was able pursue other vocations like architecture, science, mathematics, medicine, etc.
The Five Scary New Rules Of Upside-Down Capitalism
Notes From The Field By Simon Black
November 20, 2019 San Juan, Puerto Rico
Roughly 23,000 years ago in modern-day Israel, a small tribe of ex-cave dwellers built a tiny village near the Sea of Galilee that may have been one of the earliest agrarian societies in human history.
Archaeologists discovered the site more than thirty years ago.
And they found tens of thousands of well-preserved seeds and agricultural tools, suggesting that the people who lived there planted a great deal of food in the fertile lands nearby.
As historian Will Durant once wrote, “the first culture is agriculture.” And he was right. Civilization as we know it has its foundations in agriculture.
When human beings came out of caves, stopped roaming the wild, and began planting seeds to feed their families and tribes, they were able to produce more food than they consumed for the first time in the history of our species.
And because it only took a handful of people to feed an entire village, everyone else was able pursue other vocations like architecture, science, mathematics, medicine, etc.
Freed from the daily toil of survival, our ancestors invented trade, commerce, writing, and everything else that fueled progress over the next 10,000 years.
And this simple concept of producing more than you consume has been the foundation of human prosperity for millennia.
It’s also one of the basic principles of capitalism. People who produce and save are supposed to be rewarded. People who irresponsibly go into debt to consume are supposed to be punished.
But not anymore.
Back in 2014, the European Central Bank made history when they pushed interest rates into negative territory.
Literally never before in the history of the world had interest rates been negative. And little by little, those negative rates have been spreading.
A recent report published by the Financial Times showed that 60% of German banks are now passing on that negative interest to their customers.
In other words, if you save money, you have to pay the bank interest. And many banks are now starting to pay customers to borrow money.
To continue reading, please go to the original article here:
https://www.sovereignman.com/trends/the-five-scary-new-rules-of-upside-down-capitalism-26555/
The Seven Deadly Sins Of Personal Finance
The Seven Deadly Sins Of Personal Finance
By J.D. Roth —03 June 2019
I've been reading and writing about personal finance for more than thirteen years. In that time, I've consumed a lot of books about money. Lately, I've found that it's fun to revisit old favorites.
Recently, for instance, I've been re-reading Brett Wilder's The Quiet Millionaire [my review]. It's different than most personal finance books. It's targeted at those who are farther along their financial journeys rather than at those just starting out. Still, there are bits and pieces in The Quiet Millionaire that are applicable to everyone.
...
Ten years ago, I wrote that I particularly like Wilder's list of the seven enemies to financial success (which is my phrase, not his). I still like them. He writes:
If you want to become and stay the quiet millionaire, you must plan and manage your financial way of life…You must be proactive in order to obtain the financial life you want. By doing this, you will overcome the seven major obstacles to financial success.
Wilder is saying that we know there are certain common barriers to wealth. These obstacles arise for everyone. Because of this, it's possible to plan in advance to cope with them. First, however, we have to be able to name these enemies so that we can prepare the proper weapons to fight them.
The Seven Deadly Sins Of Personal Finance
From the Recaps Archives posted on 6/4/2019
The Seven Deadly Sins Of Personal Finance
By J.D. Roth —03 June 2019
I've been reading and writing about personal finance for more than thirteen years. In that time, I've consumed a lot of books about money. Lately, I've found that it's fun to revisit old favorites.
Recently, for instance, I've been re-reading Brett Wilder's The Quiet Millionaire [my review]. It's different than most personal finance books. It's targeted at those who are farther along their financial journeys rather than at those just starting out. Still, there are bits and pieces in The Quiet Millionaire that are applicable to everyone.
Ten years ago, I wrote that I particularly like Wilder's list of the seven enemies to financial success (which is my phrase, not his). I still like them. He writes:
If you want to become and stay the quiet millionaire, you must plan and manage your financial way of life…You must be proactive in order to obtain the financial life you want. By doing this, you will overcome the seven major obstacles to financial success.
Wilder is saying that we know there are certain common barriers to wealth. These obstacles arise for everyone. Because of this, it's possible to plan in advance to cope with them. First, however, we have to be able to name these enemies so that we can prepare the proper weapons to fight them.
The Seven Enemies of Financial Success
According to Wilder, the seven enemies of financial success are:
Lack of discipline. Without discipline, it's difficult to build wealth. In fact, it's impossible to get rich — slowly or otherwise — if you spend more than you earn. The math just doesn't work. Wilder also warns against compulsive spending, and he urges readers to track where their money is going.
Materialism. Stuff will not enrich your life. It's so very easy to find yourself “keeping up with the Joneses”, succumbing to lifestyle inflation. But materialism breeds discontent. Instead, Wilder says, focus on intellectual and spiritual pursuits to obtain fulfillment.’
Debt. Not all debt is bad, of course. A reasonable mortgage on a sensible home is fine. But consumer debt — or a bad mortgage on a big house — is an enemy to financial success. In fact, bad debt may be the biggest enemy to financial success.
Taxes. It's our responsibility to pay the taxes we owe, but we're under no obligation to pay more than that. “It is not unpatriotic to reduce paying your taxes,” Wilder writes. We should instead actively work to keep our tax burden as low as possible.
Inflation. Inflation is wealth's silent enemy. It will not destroy you all at once. But it's always there, nibbling at the corners of your life, consuming a little cash every year. It's impossible to keep inflation completely at bay, but you can learn to mitigate its effects.
Investment mistakes. Poorly structured investment portfolios can be a killer. This enemy is fought through education, through an understanding of diversification and asset allocation, by taking the emotion out of investing.
Emergencies. The final enemy to financial success is the unexpected: unemployment, death, illness, and legal complications. Without a plan for emergencies, you leave yourself at the mercy of the fickle fates. Carry adequate insurance and maintain an emergency fund!
To continue reading, please go to the original article here:
https://www.getrichslowly.org/?s=7+deadly+sins+of+personal+finance++++++
What Does It Take To Get Rich?
.What Does It Take To Get Rich?
Hillary Hoffower Dec. 29, 2018,
A researcher who studied more than 600 millionaires found the same 2 qualities helped them get rich
According to a researcher who studied more than 600 millionaires, to build wealth, you need two qualities: resilience and perseverance.
These qualities are characteristics of those who can afford to retire early and entrepreneurs who become self-made millionaires.
It takes conscious effort to develop resiliency and perseverance.
What does it take to get rich?
It may seem like building wealth is impossible, but it takes two qualities that anyone can develop to do it: resilience and perseverance.
That's according to Sarah Stanley Fallaw, coauthor of " The Next Millionaire Next Door: Enduring Strategies for Building Wealth" and the director of research for the Affluent Market Institute.
A follow-up to the 1998 bestseller " The Millionaire Next Door," written by her father, Thomas J. Stanley, and William D. Danko, the book provides updates and new studies on Stanley's original research on millionaires. Stanley Fallaw's findings are based on a survey of more than 600 millionaires in America conducted between 2015 and 2016.
"To build wealth, to build one's own business, to ignore critics and media and neighbors, you must have the resolve to keep pursuing your goals past rejection and pain," Stanley Fallaw wrote.
What Does It Take To Get Rich?
Hillary Hoffower Dec. 29, 2018,
A researcher who studied more than 600 millionaires found the same 2 qualities helped them get rich
According to a researcher who studied more than 600 millionaires, to build wealth, you need two qualities: resilience and perseverance.
These qualities are characteristics of those who can afford to retire early and entrepreneurs who become self-made millionaires.
It takes conscious effort to develop resiliency and perseverance.
What does it take to get rich?
It may seem like building wealth is impossible, but it takes two qualities that anyone can develop to do it: resilience and perseverance.
That's according to Sarah Stanley Fallaw, coauthor of " The Next Millionaire Next Door: Enduring Strategies for Building Wealth" and the director of research for the Affluent Market Institute.
A follow-up to the 1998 bestseller " The Millionaire Next Door," written by her father, Thomas J. Stanley, and William D. Danko, the book provides updates and new studies on Stanley's original research on millionaires. Stanley Fallaw's findings are based on a survey of more than 600 millionaires in America conducted between 2015 and 2016.
"To build wealth, to build one's own business, to ignore critics and media and neighbors, you must have the resolve to keep pursuing your goals past rejection and pain," Stanley Fallaw wrote.
She added: "Millionaires and other economically successful Americans who pursue self-employment, decide to climb the corporate ladder, or strive to create a financial independence lifestyle early do so by perpetually pushing on."
She cites an example of multimillionaire Alan DeMarcus, who started at his uncle's HVAC business at age 14. After two and a half years in college, he quit school once he landed a sales role at his uncle's business.
The company eventually went bankrupt, but Alan had enough resilience and perseverance to build a successful refrigerant-recovery business in the middle of the 2008 recession. He eventually sold the business, and he's now worth between $8 million and $10 million.
These qualities are also exemplified by those who build enough wealth to retire early.
To continue reading, please go to the original article here:
https://www.businessinsider.com/qualities-that-help-build-wealth-resilience-perseverance-2018-12
How to Protect Your Finances in Case of a Recession
.How to Protect Your Finances in Case of a Recession
By Emily Guy Birken November 12 2019
According to the financial news sector, it seems probable that we're headed toward a recession. Grim-faced economists think our current historic economic expansion is headed for a fall, and the news of a looming recession couldn't feel scarier.
There's good news and bad news about these opinions. The good news is that no one has a crystal ball, which means even the savviest of economic forecasters can't possibly know what our economy will do in the future. However, we do know that certain financial trends cannot go on indefinitely. (Remember in 2007 when we all thought housing prices could only ever go up? We learned the hard way in 2008 that nothing keeps growing forever.)
So how can you prepare for a recession that may or may not happen in a time frame you can't predict? Thankfully, there are a number of actions you can take today to protect yourself, and your finances.
Bolster Your Emergency Fund
Financial experts recommend that everyone build an emergency fund that could cover three to six months' worth of expenses. Your emergency fund can get you through a period of unemployment until you land your next job.
However, losing your job during a recession could be a little more dire than losing it at any other time. When the economy as a whole has taken a hit, it can be much more difficult to find another employer who is hiring. This is why the median unemployment length during the recession was more than 25 weeks (nearly six months), whereas the current median length of unemployment is just over 9 weeks.
How to Protect Your Finances in Case of a Recession
By Emily Guy Birken November 12 2019
According to the financial news sector, it seems probable that we're headed toward a recession. Grim-faced economists think our current historic economic expansion is headed for a fall, and the news of a looming recession couldn't feel scarier.
There's good news and bad news about these opinions. The good news is that no one has a crystal ball, which means even the savviest of economic forecasters can't possibly know what our economy will do in the future. However, we do know that certain financial trends cannot go on indefinitely. (Remember in 2007 when we all thought housing prices could only ever go up? We learned the hard way in 2008 that nothing keeps growing forever.)
So how can you prepare for a recession that may or may not happen in a time frame you can't predict? Thankfully, there are a number of actions you can take today to protect yourself, and your finances.
Bolster Your Emergency Fund
Financial experts recommend that everyone build an emergency fund that could cover three to six months' worth of expenses. Your emergency fund can get you through a period of unemployment until you land your next job.
However, losing your job during a recession could be a little more dire than losing it at any other time. When the economy as a whole has taken a hit, it can be much more difficult to find another employer who is hiring. This is why the median unemployment length during the recession was more than 25 weeks (nearly six months), whereas the current median length of unemployment is just over 9 weeks.
Now is an excellent time to add to your emergency fund. Start an automatic transfer to your savings account with every paycheck, and look for other ways to beef up that fund.
If you don't have an emergency fund that could handle a lengthy unemployment, there's no need to panic. Remember: anything you can put away will be helpful if you do find yourself with a pink slip. (See also: 7 Easy Ways to Build an Emergency Fund From $0)
Create Your Plan B Budget
Another proactive step to take is to map out what would change about your spending habits if you were to lose your job or take a pay cut. Going through your current budget and identifying the items you could cut can help reassure you that your emergency fund will weather a loss of income.
You could even challenge yourself to make some small cuts now and see if you miss your former expenditures. That can free up some extra money (more for the emergency fund!) and help you feel more in control of your spending now and in the future.
Attack Your Credit Card Debt
If you're carrying a balance on your credit cards, now is a good time to get aggressive with your payoff plan. Carrying debt into a recession could make for an overwhelming burden if you experience a pay cut or a layoff. You'd hate to find yourself unable to pay your credit card bills — and have to deal with debt collectors — when you're already feeling financially stressed. (See also: The Fastest Way to Pay Off $10,000 in Credit Card Debt)
Go To The Doctor
The cost of health care can be prohibitively expensive, even for Americans with health insurance. According to a recent Bank of America Workplace Benefits Report, 53 percent of American employees have skipped a medical appointment, a test or procedure, or purchasing medication in order to save money.
To continue reading, please go to the original article here:
https://www.wisebread.com/how-to-protect-your-finances-in-case-of-a-recession?ref=relatedbox
How Well Have You Prepared For Your Currency Exchange?
.How Well Have You Prepared For Your Currency Exchange?
#12 By Muhammad Ali
We have all read on Dinar Recaps, the statistics of those who have acquired sudden wealth and how long that wealth lasted. The results are not good. Most lose their wealth, their newly acquired assets and possibly are filing for bankruptcy within 3 to 5 years of receiving it.
The problem with most people, especially when it comes to money, they do not plan ahead or they do not plan at all.
Will we be a part of these statistics? The sad truth is, YES for about 80% of the people, they will be part of these statistics, and only about 20% will be able to preserve their wealth for more than 5 years or more.
"May the Odds be ever in your favour!" Some of you will remember that from the Hunter Games movie series.
Unfortunately the odds will not be in our favour unless we plan and work towards it.
In my Currency group, here in Malaysia, I hear so many times, that after RV, they want to travel around world, sail around the world, help all their friends and families, buy properties in real estate, buy land, buy cars, donate to so and so charity... and the list goes on and on.
How Well Have You Prepared For Your Currency Exchange?
By Muhammad Ali
We have all read on Dinar Recaps, the statistics of those who have acquired sudden wealth and how long that wealth lasted. The results are not good. Most lose their wealth, their newly acquired assets and possibly are filing for bankruptcy within 3 to 5 years of receiving it.
The problem with most people, especially when it comes to money, they do not plan ahead or they do not plan at all.
Will we be a part of these statistics? The sad truth is, YES for about 80% of the people, they will be part of these statistics, and only about 20% will be able to preserve their wealth for more than 5 years or more.
"May the Odds be ever in your favour!" Some of you will remember that from the Hunter Games movie series.
Unfortunately the odds will not be in our favour unless we plan and work towards it.
In my Currency group, here in Malaysia, I hear so many times, that after RV, they want to travel around world, sail around the world, help all their friends and families, buy properties in real estate, buy land, buy cars, donate to so and so charity... and the list goes on and on.
As for me, I want to buy a submarine...hahahaha, but that's another story.
The fact is there is something on the above list that is of interest to all of us.
So after listening to my group members, I play devil's advocate with them and ask them. Ok it's great that you want to do so much and help so many but the question is, after you do all this and buy all of that, how much money will you have left over? And how long will that balance last you?
Then the silence comes in and three words from their month. "I don't know."
So that started my path to create the Currency Exchange Planner software.
Frankly and in my opinion it is the best planning tool ever created for the Dinar community. There is absolutely nothing like it available.
You can keep track of your Dinar, Rial, Dong, Zim and/or Rupiah exchanges. Enter in the expected rate of exchange along with the number of notes you have and presto, instantly see your Net Worth.
It has planning features for Debt, Charity, Family Gifting and Future purchases as well as Gold and Silver purchases. Enter all of your existing debts and the net worth updates on the fly.
Enter in all the charities you wish to donate to and family members you want to gift to and again see the new balance update instantly. And then the 'Dream' tab as I call it, your Future purchases, land, houses, yachts and boats..submarines.., cars, properties, traveling, what tickles your fancy and see how much money you will have left over.
Then the Gold and Silver planning - Plan B, as I call it. Your purchase of physical gold and silver as your back up in case of rainy days ahead.
So after, all is send and done it will tell you the balance of your exchanged money. So now you can either think that Yes, my plans are feasible or now it's time to do some thinking and re-adjusting of numbers.
A new feature that I recently added, is the CEP will even project how many years this balance can last you. This is a cool feature. Now you can see in numbers, black and while from the left over balance, if you were to live on $xxx amount a month, how many years or generations the money will last you. Of course there are other factors to consider like inflation and such, however it is still a cool feature to see.
I have always told my group that, after you exchange, you will be buying or giving and the money will be going out the door. It is imperative that you have money coming in or with simple mathematics, Money = Out will soon be Money = 0.
Sooner or later, the money will run out and you all know what that means, back to square one. I can feel some of you cringing your teeth at that thought. God, forbid we ever have to go back to J.O.B. (Just Over Broke).
So I added an Investment planning section that you can allocate a budget for investments. Then you can see the profit results in yearly and monthly form.
For example, a fixed deposit in Malaysia will earn 4.77% p.a. so we can set aside an amount of our exchanged funds that we can have money coming in every month. There are other forms of banking investments such as Bonds and Treasury Bills that can give us a guaranteed investment return. You can discuss these with your wealth managers.
I also added several guides on investing, setting up bank accounts and pre and post RV security tips.
So I truly believe that my Currency Exchange Planner will be of great benefit to all of you.
The software is available in both Mobile App and Desktop PC versions.
So thank you for reading my article and I wish you all the best on your exchanges.
My website is www.CurrencyExchangePlanner.com I have more details and pictures.
Any questions, please contact me at currencyexchangeplanner@gmail.com
Thank you, Muhammad Ali
https://www.currencyexchangeplanner.com/article-13-have-you-prepared
The 4 Worst Kinds of Debt to Have in 2019
.The 4 Worst Kinds of Debt to Have in 2019
By Holly Johnson
Experts often say that debt can only be considered "good" if it's attached to an appreciating asset. Borrowing money to purchase a home that should rise in value over time is usually considered a smart move, for example. A business loan can also be a net positive provided the funds are used to help you become more profitable over the years.
On the flip side, there are plenty of kinds of debt that just aren't worth it — especially if the amount you owe is more than you can handle or your interest rate is absurdly high.
If your goal is building wealth and enjoying a life free of financial stress, your best bet is avoiding debts that make getting ahead harder than it has to be. Here are some of the worst offenders.
Student Loans
Student loans can be a net positive for your life if you borrow as little as you can and parlay your degree into a profitable career. And since federal student loans tend to come with low fixed interest rates, student debt doesn't have to ruin your life.
But what happens if you overpay for school — or if you borrow a ton of money but never graduate?
Far too many students have found out the hard way just how unforgiving student debt can be. For starters, it's nearly impossible to discharge student loans in bankruptcy, so you're probably stuck with your student loans until you pay them off — no matter how long it takes.
The 4 Worst Kinds of Debt to Have in 2019
By Holly Johnson
Experts often say that debt can only be considered "good" if it's attached to an appreciating asset. Borrowing money to purchase a home that should rise in value over time is usually considered a smart move, for example. A business loan can also be a net positive provided the funds are used to help you become more profitable over the years.
On the flip side, there are plenty of kinds of debt that just aren't worth it — especially if the amount you owe is more than you can handle or your interest rate is absurdly high.
If your goal is building wealth and enjoying a life free of financial stress, your best bet is avoiding debts that make getting ahead harder than it has to be. Here are some of the worst offenders.
Student Loans
Student loans can be a net positive for your life if you borrow as little as you can and parlay your degree into a profitable career. And since federal student loans tend to come with low fixed interest rates, student debt doesn't have to ruin your life.
But what happens if you overpay for school — or if you borrow a ton of money but never graduate?
Far too many students have found out the hard way just how unforgiving student debt can be. For starters, it's nearly impossible to discharge student loans in bankruptcy, so you're probably stuck with your student loans until you pay them off — no matter how long it takes.
The high cost of higher education also means students are stuck borrowing more and more for a basic college degree. A report from College Board noted that, on a national level, even a public, four-year degree cost students an average of $21,370 per year for the 2018-19 school year when you add in room and board. That means it costs nearly six figures to earn a Bachelor's degree — and that's if you choose an in-state, public school.
If you find yourself struggling with student loan debt, consider looking into alternative payment plans like income-driven plans or refinancing your student loans with a private lender. (See also: Should You Refinance Your Student Loans?)
Credit Card Debt
Credit card debt is another wealth killer that can make it significantly harder to get ahead in life. Not only is credit card debt unsecured by any sort of asset, but the average credit card interest rate is now over 17%. That means that, no matter what you purchased on your credit card or how unnecessary it was, you could be paying out the nose to carry that debt from year to year.
If you're struggling with credit card debt, the first thing you should do is stop using credit cards. Then create a plan to pay down debt, possibly using the debt snowball or debt avalanche method.
You can also use a balance transfer credit card to secure 0% APR for a limited time, but this strategy only works if you have the discipline to quit using credit cards as a crutch. (See also: The Fastest Way to Pay Off $10,000 in Credit Card Debt)
Payday Loan Debt
Payday loans are meant to be short-term loans that help you get to the next payday, and they're mostly targeted at consumers with poor credit. But since they charge high fees and interest rates as high as 400%, these loans can trap you in a situation where you have to get one payday loan after another to pay your bills.
To continue reading, please go to the original article here:
https://www.wisebread.com/the-4-worst-kinds-of-debt-to-have-in-2019