.Chocolate Cake Investor Or Broccoli Investor — Which One Are You?

Posted by TEBI on February 10, 2022 By Patrick Geddes

We all know from experience that rational thoughts often lose out to primal cravings. If someone handed you a plate of chocolate cake and a plate of broccoli right now, which would you instinctively reach for? As PATRICK GEDDES explains in his new book Transparent Investing, you face this same tension as an investor — between the part of your brain that longs for the sweet, satisfying allure of beating the market versus the rational and wise part that chooses the boring solution offering better results. You also face an uphill battle against an industry that makes more money selling you the finance equivalent of chocolate cake. Just because the evolution of our brain has left some blind spots doesn’t mean we’ve somehow lost our ability to reason or make good decisions. Yet documented biases like the illusion of control set us up for behavioural patterns that aren’t ideal for decision-making.

.Pros and Cons of Living in a State With No Income Tax

John Csiszar Fri, February 11, 2022

Every U.S. citizen is responsible for paying federal income tax, and some taxpayers also must pay a separate state income tax. As of 2022, just nine states don’t impose any additional income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming.

At first glance, it might seem as if there’s no reason to live in a state with income tax, as it simply adds an additional financial burden to your budget. But there are both pros and cons to living in a state that has no income tax.

.The Savvy Investor’s Guide to the Capital Gains Tax

Chris Thompson, CEPF® Fri, February 11, 2022, 11:19 AM·11 min read

If you make money from just about any source, you’re likely to find Uncle Sam nearby. It’s true of money you earn from a job, and it’s true of money you earn from investments – whether that’s stocks, real estate or collectibles. Any profit you earn from selling an investment is known as a capital gain, and the tax on this form of income is called the capital gains tax. Depending on how long you’ve held the asset before selling it, you’ll be taxed at either the short-term or long-term capital gains rate. In this article we’ll explain how the capital gains tax works, the difference between long- and short-term capital gains, the rates you’ll pay on the federal and state levels, and how to minimize the tax impact on your investments.

.The Money Decisions People Most Regret

Neil Irwin Sat, February 12, 2022, 7:31 AM·1 min read

In this article: Daniel H. Pink American business writer

When it comes to financial decisions, it's easy to have regrets. How many people wish they hadn't sold their Amazon stock in the dot-com crash, for example, or coulda-shoulda-woulda bought bitcoin in 2013?

Yes, but: That isn't the type financial regret that is most common, Daniel H. Pink, author of a new book on regret, tells Axios. Pink collected regrets of 16,000 people in 105 countries for The Power of Regret — and the financial regrets people have fall most often into two buckets.

.Ask an Advisor: Do I Really Need a Trust?

Tanza Loudenback, CFP® Mon, February 7, 2022,

I retired a few years ago and have a will and power of attorney, a reasonably good-sized net worth, mutual funds, annuities, cash, a home with no mortgage and a long-term health policy. I’ve read about trusts, but I’m still not clear on the pluses and minuses of setting one up. Why is that better than just the will and power of attorney? – Michael

I think many people ignore trusts because they seem elite. But you don’t have to be a multi-millionaire to set one up. Reader, it sounds like you’ve already created a solid estate plan with a will and a power of attorney. But these tools on their own, and without a larger plan, have limitations. Here’s why it might still make sense to get a trust. A financial advisor can help you create a financial plan that leaves a legacy to your heirs.

.4 Ways To Tame Financial Stress And Save For Retirement

Elizabeth Ayoola of NerdWallet Tue, February 8, 2022

Maybe you feel like you don’t earn enough. Or you don’t understand how investing works. Or maybe you can’t organize your finances. These are factors that can lead to financial stress and set back your retirement savings.

A lack of assets and money management challenges are contributing factors to high levels of financial anxiety and stress, according to a 2021 report called Financial Anxiety and Stress Among U.S. Households from the FINRA Investor Education Foundation and Global Financial Literacy Excellence Center.

.These Are the Receipts To Keep for Doing Your Taxes

By Barri Segal February 3 2022

Gathering and saving receipts and tax documents is an important part of filing taxes and receiving your refund quickly. Whether you take the standard deduction or itemize deductions, most people filing their 2021 taxes in 2022 will be happy they took the time to prepare when the IRS deadline rolls around.

Review which receipts to keep for taxes — the information below will help to make tax preparation less painful and ensure you take all of your eligible deductions.

.How Long To Keep Tax Records: Can You Ever Throw Them Away?

Michael Keenan Sat, February 5, 2022,

Once you’ve submitted your tax return to the Internal Revenue Service each year, the last thing you probably want to think about is how to store your tax records. But making these arrangements is essential to protect yourself in the event of a future IRS audit.

The general rule is to keep your tax records for three years, but there are several important exceptions for when you might need to keep your tax records for a longer period as a taxpayer. Read on to learn how long to keep your tax records and when you can safely dispose of them.

.Money Isn’t Everything

Last updated on February 5, 2022 by One Frugal Girl

I type the phrase “money isn’t everything” into my keyboard. Then I stare at the words in disbelief. Is that statement true? We often think of the world in terms of black and white. Ideas are true or false, and people are good or evil, but the truth is rarely this straightforward. Most things exist in the gray space in between, and money is one of those examples.

Money Is Everything

Money isn’t everything, but money is a lot of things. I can’t live in a cozy, warm house, feed myself, or put clothes on my back without money. I also can’t pay for higher education or classes to improve my skills.

.7 Things You Should Never Pay for With Cash

Jennifer Taylor Wed, February 2, 2022, 7:00 AM·5 min read

Some people charge everything to a credit card to rack up rewards points, but that isn’t your style. When possible, you prefer to pay with cash. Maybe you’ve ditched the plastic as a way to curb overspending, avoid credit card fraud or simply because you prefer to shop off the grid. However, despite the many good reasons to pay with cash, it isn’t always the best choice.

Not sure what types of purchases warrant leaving the cash in your wallet? Here’s a look at seven common payments that should always be made with a different form other than cash.