Money – We Need To Talk About It
.Money – We Need To Talk About It
December 4, 2019 By Machinist
Let’s talk about money.
There are few things that people avoid talking about more than money, yet we probably spend most of our time in pursuit of money. We could all benefit from a better understanding of it, but sadly, we are mostly left to find our own way with money. We rarely even have the chance to learn from other’s experience, so we are bound to repeat the same mistakes.
I get it; there are some good reasons not to talk about money. We think that letting people know how much money we have or how much we earn will complicate our relationships and interactions.
Strangely, even though we don’t want people to know our financial situation, most people spend a lot of time and effort trying to appear as though they have more money than they actually do.
I’m not sure how this deception makes interactions any more comfortable. Maybe people inflate their perceived financial status in an effort to avoid having to interact with people of their own income level.
Americans More Worried About Running Out Of Money Than Dying
.Americans More Worried About Running Out Of Money Than Dying
Conventional retirement plans Retirement Consideration Top 10 Countries In Terms Of Retirement Worry
By: Jacob Wolinsky Mar 6, 2020
Did you know that 58% of people worry about running out of money in retirement – compared to only 20% who are worried about dying! For April, Stress Awareness Month, financial security expert Pamela Yellen, a two-time New York Times best-selling author, discusses:
People With Savings In Conventional Retirement Plans Are Worried
When it comes to Americans’ top worries, 72% report feeling stressed about money, and nearly 22% say they experience extreme stress about their finances, according to the American Psychological Association. Financial stress is closely linked to health issues including anxiety, depression, insomnia and more, Pamela notes.
Decades-Old Investment Wisdom From Albert Einstein
.Decades-Old Investment Wisdom From Albert Einstein
Notes From The Field By Simon Black
March 3, 2020 Bahia Beach, Puerto Rico
Albert Einstein is rumored to have said that “Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it.”
These days interest rates are near zero. The average savings account currently pays .09% interest per year, according to the FDIC.
So over the course of a decade, saving $100 with compound interest would give you a grand total of $109.37.
But at the same time, the opposite force is working against us. Inflation currently stands around 2.5%. And that compounds too.
What $100 can buy now will cost $102.50 next year. After ten years, assuming inflation stays the same, it will cost $128.
So just by saving $100 for ten years, you’ve lost $18.63 of real value.
The Curse of a High Income
FEBRUARY 20, 2020 BY MACHINIST
.The Curse of a High Income
The Income Curse
Regardless of income level, the vast majority of people spend very nearly everything they earn, if not more. Most people know that living paycheck-to-paycheck is a problem. What they may not realize is that the higher their income, the bigger this problem actually is. Common sense tells us that more income is always better, but that’s not always true. If you have a high income and are spending it all, then you might be in serious trouble with limited options.
Consider the following scenario and think about who is financially more secure? Who is wealthier?
Introducing Bob and Bill
Bob earns a salary of $50k per year. He owns his 10-year-old Toyota Camry outright, makes the mortgage payment on his comfortable home, and is still able to save $5k each year in his 401(k) account.
Bill earns $250k per year and leases a new Land Rover every two years. He lives in a very nice house with a pool and a beautifully landscaped yard. Bill is also saving $5k per year toward retirement.
Bob and Bill both consider themselves responsible personal financiers. Neither one has any credit card debt and both are careful to keep some money saved for unexpected expenses. In fact, Bob has $10k in the bank, and Bill has $20k.
7 Common Money Conflicts in Marriage and How to Solve Them
.7 Common Money Conflicts in Marriage and How to Solve Them
By Eileen Ambrose, Senior Editor
From Kiplinger's Personal Finance
You and your spouse probably have different approaches to finances, but you can still live financially happy ever after.
The McClanahans had to step up their communication and teamwork to overcome their debt problems.
Aja and Kelvin McClanahan got married in 2004 knowing that each brought debt to the union. But they didn’t talk numbers before the wedding, and when they added it all up later, the Chicago newlyweds had a shock: Together they owed $60,000, most of it in the form of student loans.
Then, when the couple had a child within the first year of marriage and Aja wanted to stay home with their newborn, she launched her own business—a translation agency—using credit cards to finance start-up costs. The idea didn’t pan out, and she wound up with another $20,000 in debt.
Quiet Wealth: An Asset Protection Strategy
.Quiet Wealth: An Asset Protection Strategy
Time is Money: An Asset Protection Strategy
Diversified Investments
I’ve never worn a watch. I flatter myself that’s because of a high school Latin teacher/lacrosse coach named Thurber who, when asked why he didn’t, responded that “a man who wears a watch worries too much about time.”
That quote has always stuck with me. Its philosophical brevity is almost Hellenic.
My real reason for going watch-less is simpler, however. I have a hard enough time keeping track of my keys, wallet, eyeglasses and anything else I need during my daily journey to worry about a watch as well.
In fact, I’m pretty sure the only watch I ever owned was one that had belonged to my grandfather, that my Dad gave me when I was about 5 — what was he thinking? — that I promptly dropped and broke.
My relationship with timepieces, in other words, is Thurberesque in another way entirely.
But there are people for whom watches are an asset protection strategy
Negative Interest Rates In The US Are Virtually Guaranteed Now
.Negative Interest Rates In The US Are Virtually Guaranteed Now
Notes From The Field By Simon Black
March 4, 2020 Bahia Beach, Puerto Rico
On October 19, 1987, the US stock market suffered the worst crash in its more than 200 year history, dropping more than 23% in a matter of hours.
It wasn’t just in the United States, either. More than 20 major stock markets around the world, from London to Hong Kong to Australia, fell by similar amounts.
And economists estimate that stocks worldwide lost roughly $1.7 trillion of value (approximately 10% of global GDP at the time) during the October 1987 crash.
The next morning on October 20th, the Federal Reserve announced that they would do whatever it takes to support the economy.
Great Depression 2.0
.Great Depression 2.0
The Final Wake Up Call By Peter B Meyer
The Necessity Of A Free Market For Each Individual Economic Actor
An economy is geared to produce for real demand. But for decades it has been misled by artificially low interest rates to produce for a level of demand that doesn’t in reality exist. This deception can go on for a very long time. But, eventually, some form of adjustment must take place – usually a recession restores order by reducing both production and consumption. If it goes on for too long, or to a too great an extent, as it did in Germany in the late ’20s, economic activity becomes disorganised, which actually started The Great Depression 1.0.
The stimulus is working, they said. The problem is not that anyone believes this, but just that everyone believes in it. It is duped group thinking on a massive scale. Markets are not mathematical, nor mechanical; they’re ethical. Their purpose is not to make people wealthy, but to make them wise. If they purely were mathematical, one would be able to anticipate price movements with computers and PhDs in math. Many have tried it, but so far as known none has ever really succeeded.
Probate 101: What You Should Know
.Probate 101: What You Should Know About Probate (or Avoiding Probate)
By Jessica Sillers — Sep 3, 2019
When you’re grieving, a complicated legal and financial process is the last thing you want to deal with. But often, that’s exactly what happens when families go through the probate process after losing a loved one.
Understanding the probate process can help keep you from getting caught by surprise.
Who takes charge of a will after someone dies? What happens if someone dies without a will? Is there any way to avoid a lengthy probate process and pile of legal paperwork?
We’ll break it down for you.
The Biggest Truth In Personal Finance
.The Biggest Truth In Personal Finance
By J.D. Roth February 18 2020
For the past six weeks, I've been hard at work writing my “introduction to financial independence and early retirement” project for Audible and The Great Courses. It's been challenging — and fun — to rework my past material for a new audience in a new format.
Naturally, I'm emphasizing two important points in this project: profit and purpose.
I believe strongly that you need a clear personal mission statement in order to find success with money (and life).
I also believe that the most important number on your path to financial freedom is your personal profit, the difference between your income and your spending. (Most people refer to this number as saving rate. I prefer the term “personal profit” because it's, well, sexier.)
That last point is important.
Too many people want magic bullets. They want quick and easy ways to get out of debt and build wealth. They believe (or hope) that there's some sort of secret they can uncover, that somehow they've missed. Well, there aren't any secrets. Money mastery is a combination of psychology and math. And the math part is so simple a third-grader could understand it. Wealth is the accumulation of what you earn minus what you spend.
Financial Goals: Your Prioritization Guide
.Financial Goals: Your Prioritization Guide
Beth Braverman
You already know the most basic principle of personal finance--spend less money than you make. Once you’ve got that covered, however, figuring out how to achieve all your financial goals at once can feel overwhelming.
Should you direct any extra cash toward paying off your student loans or saving for retirement? Building an emergency fund or chipping away at credit card debt?
As you grow your family and advance in your career, there may be even more competing goals, such as buying a house, saving for your kids’ college education or taking a dream vacation.
In general, this is how you might think of prioritization for your financial goals, from the most to the least important.