Thank Uncle Sam
.Thank Uncle Sam
Peter Mallouk | April 20, 2020
TO STAVE OFF the financial impact of COVID-19, the government has unleashed an unprecedented array of stimulus programs, tax law changes and other incentives to encourage economic activity. Result: There’s a slew of financial planning opportunities that can benefit almost all of us. Here are nine of them:
1. Refinance your debts. With the Federal Reserve’s recent rate cut, interest rates are now at their lowest level since 2008. These lower rates will take time to filter through the lending system, but they’ll eventually manifest themselves as lower rates on mortgages, car loans and even credit cards.
Now is a great time to consider refinancing existing loans, especially your mortgage. Indeed, if you have enough equity in your home, you might consolidate some of your higher-cost debt with a cash-out refinancing, using proceeds from your mortgage to pay off, say, your credit card balances.
Is It Better to Borrow From a Bank or Private Lender?
.Is It Better to Borrow From a Bank or Private Lender?
By Tex Freitag
If you’re considering a personal or business loan to get you through a financial hardship, you need to know the difference between a bank and private lender.
Many people need financial help from time-to-time, and most commonly this is in the form of a loan. While there is a myriad of loan types on offer today, two of the most common include a standard bank loan and a private lender loan.
But what is the difference between these two loans and why choose one over the other? Let’s see how private lender differ from bank loans and the pros and cons of each:
How Do Private Lenders Work?
My Life Philosophy: 51 Lessons From 51 Years
.My Life Philosophy: 51 Lessons From 51 Years
By J.D. ROTH 25 March 2020
Happy birthday to me!
Today, I turn fifty-one. Holy cats, that's old! It's also a very, very strange time in this world. Kim and I had planned to celebrate by spending the weekend with my brother somewhere else in Oregon. With the coronavirus crisis in full swing, that's not going to happen. Oregonians have been ordered to stay at home with family unless absolutely necessary. So, we'll celebrate today with the dog and cats.
As I do every year here at Get Rich Slowly, I'm going to commemorate my birthday by sharing some of the most important things I've learned during my time on Earth. These are the core pieces of my life philosophy.
I'm no wiser or smarter than anybody else. And I'm certainly no better. But I am an individual. I'm my own person with my own personal preferences and personal experiences.
Is the Coronavirus Killing Off Cash?
.Is the Coronavirus Killing Off Cash?
By Nancy Scola Politico April 17, 2020
Stores are shuttering all over the United States, and many of those still open are balking at cash. Shoppers are switching orders to Amazon and Walmart.com. Many restaurants that have stayed open won’t take cash, and operate without any contact at all, requiring customers to pay first online.
What once seemed like the oldest, most reliable way of paying now seems fraught: A physical object changing hands, bringing people closer than 6 feet, covered in who knows what.
“Do I want to grab the thing that you were just holding in your hand? No,” says Harvard economist Kenneth Rogoff, who has advocated for a less-cash society, and predicts the crisis “is absolutely going to drive people to prefer credit and debit to cash.”
Or, as one Twitter user, @DonGone5 put it last week, “Still no cash accepted. $10 dollar bill now been in my wallet so long, Alexander Hamilton has shot himself.”
Filling the void, in many cases, are digital payments that are quick, clean and easy. That sudden shift is a huge opportunity for tech firms such as online payments giant PayPal, which also owns the Venmo app.
Getting Comfortable With the Uncomfortable
.Getting Comfortable With the Uncomfortable
April 16, 2020 Banker On FIRE Personal Development 11
Feeling comfortable?
In a way, aspiring to financial independence is all about comfort.
Forgetting what the jam-packed commute feels like. Never having to deal with workplace politics again. Leaving all the money worries behind and spending the rest of your days in a state of pure bliss and relaxation.
If that doesn’t sound absolutely grand, I don’t know what does. That is, until you consider all the thorny patches on the road to this state of hedonistic nirvana.
The most obvious one is spending less than others. In a society where the majority of people are programmed to spend at least as much (if not more) than they make, putting a lid on your spending isn’t easy. There are good reasons for it, too. Humans are social animals. Ever since we emerged as a species, social acceptance played a key role in our survival.
Why It Makes So Much Sense To Own REAL Assets
.Why It Makes So Much Sense To Own REAL Assets
Notes From The Field By Simon Black
April 16, 2020 Bahia Beach, Puerto Rico
Earlier this week we talked about why the economic consequences of this pandemic could last a lot longer than what a lot of people expect.
Now, I say all of this from a position of complete ignorance and uncertainty. Nobody knows what’s going to happen next, or how long this pandemic will last.
But to simply expect that everything will return to normal in a few weeks-- and willfully ignore the countless other possibilities-- seems a bit foolish.
Worldwide, the number of deaths from Covid-19 reached 138,000. That’s more than double the number of deaths from 10 days ago. So it’s still growing.
The Seven Stages Of Sudden Wealth
.The Seven Stages Of Sudden Wealth
By Douglas Wolford
The path to wealth is often a slow one, a journey that takes place one step at a time over the course of several decades. But for some people, certain events—receiving an inheritance, selling a successful business, winning the lottery—can create a rags-to-riches experience, seemingly overnight.
When that happens, the results can be both thrilling and confusing. I’ve seen many clients, colleagues, and close friends go through a period—and a process—of adjustment to sudden wealth that, unless anticipated and managed consciously, can be very jarring.
The goal of this primer is to provide a preview of the psychological transformation you, or someone you care about, may encounter when coming to terms with this newfound wealth. And so, with respect to Elizabeth Kübler-Ross, on whose famous model this primer is loosely based, I offer you what I call the Seven Stages of Sudden Wealth.
Income Isn’t Wealth
.Income Isn’t Wealth
John Goodell April 15, 2020
MY WIFE AND I recently read The Ant and the Grasshopper, from Aesop’s Fables, to our youngest daughter. If you recall, the grasshopper mocks the ant for spending all his free time amassing food. But when winter comes, the starving grasshopper begs for assistance—and the ant refuses.
Lately, I’ve been struck by the irony of this parable. As we celebrate the role of physicians in keeping us all safe from a virus, that same virus is slowly starving physicians of their salaries. How am I acutely aware of this bizarre conundrum? I’m married to a family physician.
Before you break out the world’s tiniest violin, allow me to paint a picture of what I and others are witnessing across the nation. The economics are startling, even if the personal finance lessons are a well-worn, cautionary tale.
Are You Living Beyond Your Means?
.Are You Living Beyond Your Means? The Warning Signs to Watch For
Post From Invested Wallet
Posted in Dinar Recaps Archives on 7/9/2019
In our consumer and debt-heavy society, living beyond your means is all-too-common. And unfortunately for us, it can put us in tricky financial situations.
Considering how easy it is to impulse buy online and use credit cards we end up spending more than we make.
This process has become so normalized, that we overlook the financial dangers and live a lifestyle that can be too expensive for our own good.
5 Money Lessons Grandparents Can Teach Their Grandkids
.5 Money Lessons Grandparents Can Teach Their Grandkids
Starting as young as age 3, your grandchildren could reap a lifetime of rewards from these five basic financial skills.
If you are like many grandparents, you like your kids, sometimes, but you LOVE your grandkids. Being a grandparent is a special honor. You have a unique ability to shape your grandkids well beyond just spoiling them with sweets and sending them home.
Given how important financial skills are to succeeding at life, it’s surprising schools don’t teach our children more about money. As a grandparent, however, you can teach your grandkids important financial lessons — and you should! These lessons can leave a positive mark on your grandkids for decades to come.
5 Ways NOT to Gift to Children
.5 Ways NOT to Gift to Children … and 5 Better Ideas
By DANIEL A. TIMINS, ESQ., CFP® | Law Offices of Daniel Timins
Parents who mean well sometimes put their children in a position to blow it.
Giving to children can be a weakness. We often want to help children actualize their financial goals and give them an easier life than we might have had. However, gifting to children can also be a disaster:
We all realize that many children are irresponsible with money, do not have enough life experiences yet to protect it, and are targets of those interested in getting a piece of the money you gave them.
Here are five common and less-than-ideal gifting scenarios, and suggestions you can use to protect your assets: