Inflation Insurance
.Inflation Insurance
John Lim | Aug 23, 2021
ON AUG. 15, 1971, President Richard Nixon made the weighty decision to end the convertibility of the U.S. dollar into gold. By doing so, he drove a stake through the heart of the gold standard, a monetary system which fixed the worth of a unit of money to a specific amount of physical gold. Before that day, foreign central banks were able to exchange $35 for one ounce of gold from the vaults of the U.S. Federal Reserve.
By closing the so-called gold window half a century ago, Nixon ushered in the current era of fiat money. Fiat currencies—which include all currencies in existence today—aren’t backed by anything tangible. Rather, their value depends entirely upon the collective trust of people making transactions in those currencies. If that confidence evaporates, so does the value of that money.
How To Claw Back From the Edge of a Financial Cliff
..How To Claw Back From the Edge of a Financial Cliff
Cynthia Measom Fri, August 20, 2021
The pandemic hit many Americans right where it hurts — in their wallets. “Hitting rock bottom financially is something many people fear — and understandably so,” said Kate S. Mielitz, Ph.D., AFC, an assistant professor of family financial planning at Oklahoma State University. “To reach the point that you are struggling each month, maybe to just put food on the table, or you’re squeaking by but barely … or even have no savings, no accessible credit, no one that you can turn to for short-term or long-term assistance … those are all very scary situations.”
The good news is that once you’ve hit rock bottom, the only way to go is up. Here are some proactive steps you can take if you find yourself peering over the edge of a financial cliff and are overwhelmed with debt.
Even Richer People
.Even Richer People
Posted August 19, 2021 by Ben Carlson
Working in finance is both a blessing and a curse.
The plus side is the industry pays above-average wages and it’s not back-breaking work. Some people in finance do work ridiculous hours but no one comes home with a sore back or blisters on their hands at the end of the day. 1 It’s also a profession you can perform well into old age.
The downsides are more psychological in nature.
There is a lot of money in the world of finance. You’re typically dealing with clients who have amassed vast sums of money. And there are always going to be peers or colleagues in the industry who make more money than you. If you’re addicted to keeping up with the Joneses, the finance industry can be a toxic working environment. There is an endless stream of people with more resources than you.
Are You Worth More Than You Earned
.Are You Worth More Than You Earned
Have you ever wonder how much money you earned over the years? I mean, it has to be a sizeable sum if you’ve been working for a while. I was thinking about this and came up with a natural follow-up question. Are we worth more than what we earned? After all, wealth is what you keep, not what you earn. We have been maxing out our 401k and investing for years. Our net worth is much higher than the average US household. However, I don’t know if it is higher than what we earned over the years. Let’s answer that question today.
This answer isn’t that difficult to find out, but you might be disappointed. It is extremely difficult for your net worth to exceed your cumulative earnings, especially when you’re younger. It gets a little easier as you age because of compound interest, but I’m sure only a small percentage of households can achieve this impressive feat. That’s because saving and investing aren’t enough. You need a lot of time and luck as well. It is not impossible, though.
The Stuff They Don’t Teach You In Books
.The Stuff They Don’t Teach You In Books
Posted July 27, 2021 by Joshua M Brown
Once upon a time, when I knew nothing, I called myself a financial advisor. It’s true, I was giving financial advice. But when I look back to the caliber and quality of that advice from back then to now, it’s astonishing how much I didn’t know.
I was raised in this business to believe that stock and bond and fund selection was the most important aspect of helping investors succeed. We weren’t given a benchmark in terms of what a client succeeding even meant. Was it beating the S&P 500? Looking smarter than the client’s other broker?
Hitting a grand slam in a technology stock? Generating the highest interest and dividend income? I don’t know. The client doesn’t know. “Lets emphasize whichever of these things went well in the next conversation.”
Hanging By A Thread
.Hanging By A Thread
Aug 11, 2021 by Morgan Housel
Abig lesson from history is how chance encounters lead to both magic and mayhem in ways that would have been impossible to predict. No matter what the world looks like today, and what seems obvious today, everything can change tomorrow because of some tiny accident no one’s thinking about.
Let me show you three times history hung by a thread.
Giuseppe Zangara was tiny, barely five feet tall. He stood on a chair outside a Miami political rally in 1933 because that was the only way he could aim his gun across the crowd.
Zangara fired five shots. One of them hit Chicago mayor Anton Cermak, who was shaking hands with Zagara’s intended target. Cermak died. The target – Franklin Roosevelt – was sworn in as president two weeks later.
Within months of inauguration Roosevelt transformed the U.S. economy through the New Deal. John Nance Garner – who would have become president had Zangara hit his target – opposed most of the New Deal’s deficit spending. He almost certainly wouldn’t have enacted the same policies, some of which still shape today’s economy.
Learning About Money Changed My Life — But Not In The Way You’d Think
.Learning About Money Changed My Life — But Not In The Way You’d Think
Whizy Kim Wed, August 18, 2021
Up until a few years ago, I knew less about money than the average person. At least, that’s how it felt. The extent of my financial philosophy was a) try not to spend what you don’t have and b) try to make your student debt vanish. If someone was talking about the state of the economy, I only responded with neutral, noncommittal noises, rather than voice any specific thoughts.
The exchange of money in society was this impossibly intricate machine that a regular person like me could never begin to comprehend. The GDP? Sure hope it’s doing great! Trickle-down economics? Sounds suspect, but if all these economic experts and politicians are saying that tax cuts for the wealthy means we all win, who am I to disagree? Would they really just lie to everyone? (Actually, don’t answer that.)
Why My Husband and I Don't Fight About Money
.Why My Husband and I Don't Fight About Money -- Even With Different Habits
by Christy Bieber | Aug. 17, 2021
Could our technique work for you?
My husband and I tend to have very different spending habits. I am generally much more of a spender than he is, while he has a preference for saving more money. We also have different investing styles, and we both like to spend money on different things.
Despite our very different financial habits, we have had almost no money fights over the decade that we have been married. And the reason for that is our budgeting method.
We have a unique approach to budgeting
11 Basic Money Moves Everyone Should Make During Hard Times
.11 Basic Money Moves Everyone Should Make During Hard Times
Gabrielle Olya Tue, August 17, 2021,
The coronavirus pandemic has taken a major hit on the economy and the personal finances of workers across the country. The national unemployment rate was as high as 14.7% in April 2020. It's down to 5.4% now, but many Americans are still struggling to find jobs that pay them enough to stay afloat.
Whether you've lost your job, are experiencing reduced hours or are among the fortunate Americans who are still employed, here are the money moves experts say everyone should be making right now.
Review Your Budget
It's important to revisit your budget so you know exactly how much money you have coming in and how much you will need to cover essentials."A budget is key to feeling financially secure right now and determining if you can make ends meet," said Tony Drake, CFP and founder of Drake & Associates in Waukesha, Wisconsin.
Why I Talk Openly About My Money Mistakes
.Why I Talk Openly About My Money Mistakes
Nicole Spector Fri, August 13, 2021, 3:00 PM
Americans are very good at spending money, but not so good at talking about it. Sure, people will mention being broke or having just gotten paid. But discussing hard truths about money — like the mistakes we’ve made with spending, or the distinct path we’re on to save more in the years ahead — isn’t normal social conversation.
The subject of money isn’t as forbidden as it was in say, the 1950s, thanks to an escalation of awareness around issues such as pay transparency and the gender wage gap. But it’s still not embraced as a regular part of the conversation. As a March 2020 article in the Atlantic noted, the topic of finances is taboo partly because money (or lack of it) can make us feel bad — and who wants to talk about bad stuff?
20 Worst Money Mistakes People Make in the Name of Love
.20 Worst Money Mistakes People Make in the Name of Love
Don't let finances ruin your romance.
By Andrew Lisa November 17, 2020 Start Saving Now
While it's true that love might not cost a thing, plenty of romances fall victim to money -- or at least to money mistakes. Money and relationships are inseparable, and if you mismanage the former, the latter hardly stands a chance. From secrecy and poor communication to conflicting priorities and plain old bad decisions, some of the best relationship advice helps two people avoid the pitfalls of money mistakes in romance.
Read through to find out if you and your partner are making common money mistakes, and discover how these mistakes can hurt your relationship.