3 Saving Tips Everyone Should Know

I’m a Financial Pro Who Works With Millionaires: Here Are 3 Saving Tips Everyone Should Know

Gabrielle Olya  Fri, April 7, 2023 GoBankingRates

Many high-net-worth individuals are especially adept at turning their money into even more money. While you may not be a millionaire (yet), many of their tricks of the trade can be used to boost your accounts, too.

GOBankingRates spoke with Vincent Birardi, a CFP and wealth advisor at Halbert Hargrove who works with many high-net-worth clients, to get his insights on the savings tips and tricks of millionaires.

“HNW individuals maximize their savings by capitalizing on opportunities with different accounts to earn the most they can,” he said. “From healthcare to retirement to banking, they are up to date on annual contribution limits while paying attention to small areas to earn that add up to big savings.”

Here are a few of the ways millionaires maximize their savings.

Utilize Money Market and High-Yield Savings Accounts

“Annual interest rates have perked up in recent months in line with actions taken by the Federal Reserve,” Birardi said. “You can find fully liquid money market accounts paying over 4% annually and affording $250,000 in FDIC insurance per Individual account.”

Before opening an account, look for an account that offers the best interest rate, whether it be a high-yield savings account or CD. This will ensure you are earning the highest returns on your savings. Then, keep adding to your savings by automating contributions.

“Flourish Cash and MaxMyInterest are two leading cash management programs that you can use to automate your cash savings process,” Birardi said.

Maximize Annual Retirement Plan Contributions

“A significant upside of those pesky recent elevated inflation levels is that annual contribution limits this year have increased significantly from last year,” Birardi said.

To continue reading, please go to the original article here:

https://news.yahoo.com/finance/news/m-financial-pro-works-millionaires-110015970.html

Who’s Responsible?

Who’s Responsible?

Richard Quinn  |  Apr 7, 2023

CAN WE REALLY EXPECT Americans to be financially literate and act prudently with their money—when they can’t even return a shopping cart to where it belongs, or stop dropping litter wherever they stand?

I was in the grocery store recently and came out to find a shopping cart pushed into the side of my car. I was parked eight feet from the cart corral. Meanwhile, on my last trip to an ATM, the ground was littered with receipts. It looked like a blizzard, which isn’t what you expect in Florida. I couldn’t resist picking them up and looking at them. “Transaction denied” and “insufficient funds,” they read. I guess folks were annoyed at those messages and unaware they had no money in the bank. Surprise?

Then there’s the pseudo-planner. Think of the driver who, upon seeing the sign saying “left lane closed ahead merge right,” waits until the last possible point, thereby causing an even greater traffic jam. Folks show the same skill at anticipating their financial needs. “I’m 59 and I’ve saved $100,000. Can I retire at 60?”

Speaking of drivers, think about the guy who cuts you off while passing on the right. Do you think he plans ahead for retirement and other expenses? How about the drivers who switch from lane to lane in traffic? Do they do the same with their investments?

The fashion aisle at a pet supermarket in Deerfield, Florida

We need to take a holistic approach to our finances, viewing the various parts as interconnected. For instance, if a family lives paycheck to paycheck, should they be shopping in the fashion aisle of the pet store? Or, for that matter, acquiring a new pet, no matter how cute?

To continue reading, please go to the original article here:

https://humbledollar.com/2023/04/whos-responsible/

How Collecting Baseball Cards Can Teach Valuable Life Lessons

How Collecting Baseball Cards Can Teach Valuable Life Lessons

MARCH 21, 2023  Financial Pilgrimage

A few weeks ago, my dad asked me to list a few baseball cards on eBay. The cards were the 2001 rookie cards of Ichiro Suzuki and Albert Pujols. To my surprise, each card sold for several hundred dollars fast. Listing those cards brought back memories of collecting baseball cards as a kid. This article covers three crucial life lessons I’ve taken into adulthood from collecting baseball cards.

I spent my Saturday nights as a pre-teen trading baseball cards with friends. My best friend lived three houses up the street and was my leading trading partner. We often had sleepovers with wrestling videos, video games, and an all-out baseball card exchange.

Yes, I was (and still am) a huge nerd.

Important Skills Learned from Collecting Baseball Cards

While going through my old collection, I came across the crown jewel of most baseball card collections from the early 90s, a Ken Griffey Jr. 1989 Upper Deck rookie card. First, it makes me feel super old that Ken Griffey Jr. has been retired for more than ten years (well, he’s pretty much been retired since 2000 when he left Seattle).

Even though most of the cards in what’s left of my collection are worthless, it got me thinking about all of the lessons I learned from collecting baseball cards as a youngster.

Collecting cards taught me how to negotiate with friends and vendors at a young age. It also taught me how to make what seemed like tough and sometimes emotional decisions. As silly as it sounds, I used to get very attached to cards in my collection. Last but not least, it helped estimate the future value of an asset.

Even my decision to major in finance was somehow driven by collecting baseball cards. My mom used to say, “You should be a stockbroker; it’s like trading baseball cards only with stocks!” While this didn’t make much sense then, I can see the connection now. Baseball cards are an asset with a present value based on various factors. The goal is to predict the asset’s future value to maximize return.

Below are a few lessons I learned from collecting baseball cards as a kid.

Negotiation Skills

As a kid, I spent a decent amount of time searching the local newspaper for baseball card shows.

Baseball card shows were usually held at hotels or conference centers, and the rooms were filled with overweight middle-aged men. Tables were set up in large conference rooms with people looking to buy, sell, and trade baseball cards. Some vendors sold individual cards, others sold boxes or packs, and some were a mix of both.

My preparation for baseball card shows would involve the meticulous process of building my “selling binder.” This binder would include the baseball cards I wanted to sell to baseball card show vendors.

This put me in situations as a 10-13-year-old where I negotiated the sale of my prized baseball cards with grown adults who had much more experience dealing than I did. As you can imagine, they often tried to take advantage of my youth and lack of experience with lowball offers.

Becoming a solid negotiator only comes with experience. Walking up to someone three times my age and trying to strike a deal was sometimes intimidating. However, those skills learned at a young age have transitioned to many different aspects of my life.

To continue reading, please go to the original article here:

https://financialpilgrimage.com/heres-what-i-learned-from-collecting-baseball-cards/

How Your Bank Is Funding Climate Change

How Your Bank Is Funding Climate Change

By Kara

Did you know that just four US banks are responsible for one quarter of fossil fuel financing over the last six years?

I think we can all agree that being you know instigators of global climate collapse is not a good look for any of these banks. But it’s also not a good look for any of us who might be using these banks. Now, you may be thinking, look, I don’t spend my weekends fracking for oil in the Gulf of Mexico. I’m not up there trying to drill in the Arctic reserve, like, how did I get drawn into this fossil fuel mess? Well, it’s a little thing called fractional reserve banking.

What is fractional reserve banking?

Fractional reserve banking allows banks to lend out up to 90% of the money that you put into that bank to anyone they damn well, please, and they’re doing this so they can make some money off of it. Banks are, to quote the iconic group TLC, creepin, and trying to keep it on the down low. Banks go around sneaking behind our back to lend out money to these fossil fuel companies, all while knowing that these companies are destroying life on Earth, like the banks know that. And to our faces, these banks are pushing out sustainable campaign after sustainable campaign to try and appeal to us as consumers.

This is known as financial greenwashing. And literally every major bank is doing it. Why are banks doing us so dirty? Well, turns out banks don’t make that much money off of the money that we as consumers put into the bank. They make their money by lending out your money and some of their money, things like mortgages, car loans, personal loans, that’s the bank lending out money to a variety of people in places, and then they make money on the interest that they get from those loans.

But banks also invest billions of dollars into other companies, businesses like Chevron, or Exxon or Occidental Petroleum Corp, all three of which Chase Bank has given a ton of money to in the last few years. In fact, between 2016 and 2020, Chase Bank, Citibank, Wells Fargo and Bank of America funneled more than $412 billion to expanding fossil fuel extraction and use banks are talking out of both sides of their mouth to us. And honestly, I’m over it.

How your bank is funding climate change

Can we avoid climate catastrophe?

The IEA is the gold standard of climate science. And in 2021, they released a report called Net Zero by 2050. And this is basically a roadmap to avoiding total climate catastrophe. The report said, and I’m paraphrasing here, “Hey, world, listen up.

To continue reading, please go to the original article here:

https://bravelygo.co/how-your-bank-is-funding-climate-change/?utm_source=rss&utm_medium=rss&utm_campaign=how-your-bank-is-funding-climate-change

THE WISDOM OF THE ADDICT

THE WISDOM OF THE ADDICT

April 6, 2023 · by The Escape Artist ·

“Dr Anna Lembke MD points out that recovered addicts are heros because they managed to successfully navigate dopamine dynamics— which is something that almost everyone else, addict or not, grapples with in our modern world & we don’t even realize.”

Professor Andrew Huberman

I’ve been reading a bunch of Quit Lit (books about recovery and addiction) recently and I tell you…those guys are onto something.  The recovered addict has a hard-won wisdom that eludes the rest of us.

Recovered addicts are an edge case for negotiating and taming desire. Recovered addicts have learned to be okay…no, better than okay…with less. Recovering addicts have chosen minimalism and it has saved their life.

The recovered addict takes nothing for granted. The recovered addict has looked deep into The Abyss and stepped back from the brink. They know how close they came in the past and how close they may come again in the future.

You’re worried about “giving up your treats”?? You don’t think there is any scope to cut out any spending / distractions / addictions / behaviours from your life??

The recovered addict has thought deeper about the trade-offs in spending and consumption than any of the rest of us mortals.

The recovered addict has learnt the hard way that sometimes our “treats” are a trap. They learned that their favourite habit was quietly killing them (or perhaps it was the obstacle that was stopping them getting to the next level?).

Quit Lit is an oasis of wisdom (and this book is my personal favourite).

In a world of internet clickbait and information overload, wisdom becomes the scarcest and most valuable commodity. Wisdom is the key to long term survival and staying in the money game.

Let’s be honest…we are cheating a little bit here because we are observing the world of hardcore addiction from a safe distance. When lived up close and personal the world of the (unrecovered) addict is not wise, not glamorous and probably not much fun whatsoever.

They say we should learn from our mistakes – and that’s true – but what if we could learn from other people’s mistakes as well?

The Nerd reads endless books but takes no action. The recovered addict has internalised their learning and acted upon it. They have not just read about Monk Mode, they have seen the hearse get backed up and they have smelt the roses. The recovered addict has changed their life.

The recovered addict lives in the present: they are no longer trapped in their past. They made a clean break and the years in their life will forever be marked BC / AD (before crisis and after addiction??).

The recovered addict takes pleasure in getting through each day, one at a time. They no longer obsess about a future that is beyond their controllable time horizon.

The recovered addict does not fret about The News. They do not fret about whether their portfolio went up or down today because they know (and I mean they truly know) the difference between what they can control and what they can not.

To continue reading, please go to the original article here:

https://theescapeartist.me/2023/04/06/the-wisdom-of-the-addict/

Find Financial Freedom: 5 Simple Tips for a Stress-Free Life

Find Financial Freedom: 5 Simple Tips for a Stress-Free Life

APRIL 6, 2023  Financial Pilgrimage

Reducing financial stress in your life is easier said than done. Even if you have the best intentions, it can be challenging to make progress. Fortunately, making progress is possible and probable when you have the right tips to guide you.

There’s no one size fits all solution to reducing financial stress in your life. Instead, your approach depends mainly on your financial circumstances, such as how much money you have saved, your monthly expenses, and your short and long-term goals.

With all this in mind, let’s examine five tips for reducing financial stress in your life:

Create a Comprehensive Budget

This is where it all starts. You can’t make critical financial decisions unless you know what you’re up against. A comprehensive budget outlines your income and expenses, which gives you the knowledge needed to make more informed and confident decisions.

You can create a budget using an app, software application, or pen and paper. The approach you take doesn’t matter. As long as it’s comprehensive and accurate, you have everything you need in this regard. You will then find it easier to follow the other tips.

Slowly Pay Down Your Debt

In a perfect world, you’d have all the money you need to pay off your debt. But in reality, you know this is not the circumstances you’ve been dealt with. So, don’t get too far ahead of yourself. Instead, take your time and get into the frame of thinking that slow and steady will win the race.

Know how much debt you have and how much you can contribute to paying it monthly. You can then create a plan for making progress in a reasonable period. Knowing where the finish line makes it easier to take one step at a time.

Shop Local and Online Sales

Why pay full price for items when you don’t have to? Both local and online sales can help you save. And best yet, you don’t have to give up anything regarding quality.

Take, for example, a situation where you’re shopping online for a new generator. Rather than buy the first one you see, search the keyword string “generators for sale” to unearth the best deal.

To continue reading, please go to the original article here:

https://financialpilgrimage.com/reducing-financial-stress/

The Gold Awakening

The Gold Awakening

April 4 2023  Simon Black  Sovereign Man

Letter from the Editor:

If you do any investing, especially in commodities, then you’ve likely heard the name Marin Katusa.

Several of our subscribers, in fact, have spoken very highly of his research, having made money the last time we shared a few of his findings.  That’s why I’m doing the same this week. Marin has a knack for timing. And right now, gold is at $2,020/oz.  This letter came across our desk this morning, so I’m passing it along to you in case this is the kind of opportunity you’d like to consider. It’s long, but I’d encourage you to read all the way through.  Caveat – as with any kind of investing, there is risk involved. But part of our job is to share opportunities we find with you.

Read on and see if you agree with his assessment of where the puck is going…

In freedom,  Simon Black  Founder, Sovereign Man

****

Friends,   I’m asking you to spend a few minutes of your time reading until the very end.

What's about to unfold in the global financial markets could be referred to as "the golden bull market of the century."

You'll likely be bombarded with headlines about how economic instability and soaring inflation are propelling the price of gold to unprecedented heights.

We predict that investors will flock to precious metals in search of a safe haven, driving the price of gold to levels never seen before.

Central banks will scramble to increase their gold reserves, while ordinary citizens will turn to the yellow metal as a hedge against the eroding value of their hard-earned money.

But you'll be ahead of the game.

As you'll discover, there is nothing surprising at all about the coming gold boom. In fact, it's been years in the making.

The stage has been set for a massive shift in global wealth, and those who recognize the signs early will stand to profit immensely.

Not the mainstream media. Not your financial advisors. And not the governments.

No one is going to tell you what you need to know to protect yourself, to grow your wealth, and to seize this once-in-a-lifetime opportunity.

That's why I urge you to take a moment and breathe before the golden bull market that's about to take the world by storm.

While the rest of the world scrambles to catch up, you'll already be reaping the rewards…

These same forces are at work across the globe, putting everyone's financial future at risk…

They point to a major shift in the way we invest, save, and provide for the safety of our families.

There's a very real chance that we'll witness a global financial revolution…

Forcing investors to rethink their strategies and flee to the safety of gold and other precious metals.

It's important for you to know what's going to happen. So first and foremost, you can prepare.

But, it's also important to remember that a massive bull market like this is going to make a lot of money for a lot of people.

Some of the world's most successful investors and financial experts have already begun positioning themselves for this historic event – and you can join them.

In the wealthiest nations in the world, markets don't experience historic bull runs by accident…

INFLATION: THE SILENT WEALTH KILLER

Let me just start with this, so you'll know how serious I am about these predictions…

As you may know, inflation has been steadily rising for years now, eroding the purchasing power of currencies across the globe. Central banks have continued to print money at unprecedented rates, leading to a dangerous devaluation of fiat currencies.

But what most people don't realize is that this is just the tip of the iceberg.

Behind the scenes, there's a much more sinister force at work – one that has the potential to trigger a worldwide financial restructuring. And when that day comes, there will be only one safe haven left standing: GOLD.

There’s also surging demand from emerging markets. And the decline of traditional currencies is just the beginning.

The world is in for an economic storm, and many investors will be caught off-guard.

The Most Important Chart Right Now

Pay attention. This is the single most important chart in the world right now:

IF this is the beginning of a VIOLENT move upwards, commodities are about to get very expensive...

You’ll see that, relatively speaking, commodities are the cheapest they have ever been compared to the S&P 500. There’s nowhere to go but UP.

You might be thinking, “Yeah, but it feels like gold is already pretty high at $2020+/oz.” But by all metrics, the gold bull market remains at historic lows.

Gold Could Go Vertical, Fast

If you’ve been following precious metals for a long time, one thing’s for sure, the gold market has always moved in cycles. Going from dramatic boom to overnight bust, and eventually back again.

So far in this “boom,” gold has barely risen 20 percent from its floor. That’s not even close to the minimum required to qualify for a true “bull market” over the past century.

The smallest gold run-up in the past 90 years was 45 percent — more than twice the current gain. Every other rally was far, far bigger:

From 1972–1974, the rally yielded a 100 percent gain.

From 1978–1980, another 100 percent gain.

Then from 2007–2010, a 67 percent increase in the price of gold.

As you can see from the chart, when gold is ready to rise, it takes off.

Every single one of the years in the date ranges above saw an increase of more than 20%. That’s how you know the gold rally has barely just begun.

2023 is Inflation Versus the World

Central banks will do everything they can to fight it… and get their economies back on the growth track. And you just saw the Fed raise rates 25bps, a move that stunned the markets and sent the Dow Jones dropping 500 points.

Meanwhile…

According to MarketWatch: “Goldman Sachs says it’s the beginning of a structural bull market in commodities.”

And the Wells Fargo Investment Institute wrote, “After a decade of poor performance… commodities look poised to outperform other assets (possibly for a decade or more)… a new bull supercycle.”

My take? I rarely, if ever, agree with mainstream finance. But in this case, I called it three years ago: We are still very, very early in this gold and resource “supercycle” market, the likes of which the world has never seen before.

With gold prices spiking in short order the past 2 weeks, it has more than just regular precious metals investors paying attention.

The Crowd is Paying Attention

The number of mining companies in the S&P 500 will increase, which means an increase in the flow of capital into the sector.

At the end of the Cold War, there were 20 mining companies in the S&P 500. Today there are only 2.

Sure, you could buy gold bullion…

It’s independent of government-controlled financial systems. Your money will be relatively protected from currency wars.

Sure, you could buy gold-backed ETFs, they offer a little more leverage, and can give you some quick profit when gold starts to rise. But when gold starts going up, gold stocks tend to go up a lot.

Tomorrow, you’ll find out why I love this corner of the resource market and show you examples of the high-risk, high-reward nature of gold stocks.

Tomorrow, I’m releasing a brand-new report – called PROJECT GOLD RUSH.

Where I’ll reveal details about one of the most exciting gold projects I’ve ever seen in my life.

I’m going for the bulls-eye.

Regards,  Marin Katusa   Chairman, Katusa Research

P.S. (From Marin) Mark your calendars for tomorrow to see my special report on PROJECT GOLD RUSH. You don’t want to miss this.

https://www.sovereignman.com/blog/

Can a Trustee Remove a Beneficiary From a Trust?

Can a Trustee Remove a Beneficiary From a Trust?

By Rebecca Lake, CEPF®  Tue, April 4, 2023

Creating a trust as part of your estate plan is something you might consider if you'd like to ensure that your assets will be managed according to your wishes after you're gone. When you establish a trust, you'll need to name a trustee to manage assets and one or more beneficiaries who can receive them. Can a trustee remove a beneficiary from a trust? Generally speaking, no, but there are other scenarios when a beneficiary can be removed. For help with your estate plan, consider talking to a financial advisor who has estate planning expertise.

Trustee vs. Beneficiary Rights and Responsibilities

A trust is a legal arrangement in which one person, called a grantor, transfers the management of assets to someone else. That someone else is called a trustee.

It's the trustee's job to manage the assets in the trust according to the terms and conditions set down by the grantor. They do so on behalf of one or more beneficiaries. A trust beneficiary is an individual or entity who benefits from the trust.

So, say you want to set up a trust on behalf of your three children. You could name your brother as the trustee and include specific directions about when your children would be entitled to receive assets from the trust. For instance, you might specify that they can't get their inheritance until they reach a certain age or get married.

The trustee is obligated to follow your directions to the letter because they have a fiduciary duty to do so. Fiduciary duty requires trustees to act in the best interests of beneficiaries at all times.

Technically, a trustee can also be a beneficiary but that's not common. It may not be wise either if you'd like there to be some separation of rights and responsibilities between your trustee and your beneficiaries.

Can a Trustee Remove a Beneficiary From a Trust?

To continue reading, please go to the original article here:

https://finance.yahoo.com/news/trustee-remove-beneficiary-trust-130016549.html

How Financial Literacy Changes Once You’re Retired

How Financial Literacy Changes Once You’re Retired

John Csiszar  Tue, April 4, 2023

Financial literacy covers a wide range of topics, from budgeting and saving to investing and planning for retirement. Once you retire, however, financial literacy broadens to include scenarios that may not have been as relevant during your working life. For example, income typically drops in retirement, while expenses may remain the same or even rise, depending on the type of lifestyle you lead and the condition of your general health. Financial Literacy Month is a great time for both seniors and those about to retire to review their planning and make sure they're prepared for the changes encountered in retirement.

Here are seven topics that are important to understand if you want to avoid any financial landmines in retirement.

Social Security

From the time you start receiving your first paychecks, you've been paying into the Social Security system. But as you approach retirement, it's time to start planning your Social Security withdrawal strategy instead. Before you hit retirement, it pays to maximize your income in any way possible, as your Social Security payout is based in large part on how much you earn during your working career.

You'll also want to sit with a tax or financial advisor and determine whether you should initiate your payments early, at full retirement age or as late as age 70.

Medicare

Medicare is a health insurance program for seniors, but it's a complicated system with various parts. To use it effectively, you'll have to become literate on how it works. In a nutshell, Medicare consists of two original parts, A and B, which cover hospital and medical expenses, respectively. Part B requires a monthly premium. You can also add Part D if you require prescription drug coverage.

Medicare Advantage, also known as Medicare Part C, is an alternative to Original Medicare that is run by a private company. As the choices can get complicated, you'll likely need to speak to an expert to get financially literate when it comes to Medicare. Note that neither Original Medicare nor Medicare Advantage are likely to cover care outside of the United States.

Required Minimum Distributions

Just like you've paid Social Security taxes your whole working career, hopefully you've done the same in terms of contributions to your retirement plans. But you can't keep your money in those accounts forever. At a certain point, accounts like traditional IRAs and 401(k) plans require you to begin taking annual distributions to avoid a steep 50% penalty tax.

Congress granted a slight reprieve by extending the time at which you must begin RMDs to April 1 following the year you turn 72. Note that as Roth IRAs are funded with after-tax contributions, you're never required to take minimum distributions from them.

Stimulus 2023: Updates To Know Now

Taxes

If you work at a salaried job, your life can be pretty simple when it comes to taxes. Generally, your employer will take out the requisite taxes from your paycheck and all you'll have to do when you file your taxes is include your W-2 information.

To continue reading, please go to the original article here:

https://finance.yahoo.com/news/financial-literacy-changes-once-retired-110012547.html 

New Government Report Says Social Security Will Be Broke In 10 Years

New Government Report Says Social Security Will Be Broke In 10 Years

April 3, 2023  Simon Black  Sovereign Man

Paris. Such a romantic city.  Sip coffee at a sidewalk bistro, while you take in the wafting smell of burning rubber from the street fires.  Take a picture with the Eiffel Tower, as you dodge incoming tear-gas canisters.  Enjoy the ambiance as you stroll the alleys between 5,600 metric tons of garbage currently rotting on the sidewalks.

See, the sanitation workers’ union is one of several currently on strike in Paris.

They and over a million protesters have lit fires in the streets, destroyed property, and sparred with riot police over the past weeks.

All in an effort to stop the government from raising the retirement age from 62 to 64 by 2030. (Or from 57 to 59 for professions considered dangerous, such as garbage collectors.)

Like essentially all Western countries, France’s population is aging. And the retirement system depends on more workers paying into the system than retirees collecting.

In 1950, four French workers were paying for just one retired French pensioner.

Today, the ratio is less than two workers for each retiree— and by 2040 it could be about 1:1.

Now, it’s understandable that people are angry over broken promises.

But the public refuses to understand or accept basic financial realities.

They exist in a world where all this stuff is free, and they simply shouldn’t have to worry about things like saving for retirement.

And of course, France is far from unique. It is simply a mild preview of the social chaos that is coming to the US...

Three days ago (last Friday March 31st) the Board of Trustees for Social Security released its annual report.

According to the report, Social Security has been paying out more than it takes in since 2021, and “Social Security’s total cost is projected to be higher than its total income in 2023 and all later years.”

And at that rate, “reserves become depleted in 2033, one year earlier than projected in last year’s report.”

So the situation is actually getting worse.

Keep in mind these aren’t some random fringe economists writing this. The Board of Trustees of Social Security include, for example, US Treasury Secretary Janet Yellen.

So what happens when Social Security’s trust funds run out of money?

Well, the program won’t disappear entirely; there will still be incoming payroll tax revenue to partially fund the program (FICA taxes that are paid by workers).

But just like the situation in France, there simply aren’t enough workers in the system to keep paying full benefits to the program’s 51+ million retirees

This means that, even factoring in payroll tax revenue, Social Security recipients are going to have to take an enormous cut in their monthly benefit of around 25%.

And that might be wildly optimistic; in their annual report the Social Security lists the key assumptions of their projections... and those assumptions look like they could be grossly incorrect.

For example, the agency assumes that inflation in the US will return to 2%-3%, and basically stay there forever. Fat chance.

They also assume that the US fertility rate (which is a critical indication of the number of future taxpayers) will be 2.0; this is another outrageously bad assumption, given that the US fertility rate hasn’t consistently been above 2.0 since the late 1960s!

The trustees are clearly making bad assumptions... so even when they say the trust fund will run dry in 2033, but that they’ll still be able to make roughly 3/4 of the payments, the reality is likely much, much worse.

But right now, with all these obvious problems rapidly approaching, politicians are promising voters that they WON’T touch Social Security.

Even the ones talking about balancing the budget vow not to touch Social Security...

(To balance the budget without touching the sacred cows of Social Security, Medicare, and Defense would require cutting 85% of ALL other federal spending.)

Of course, reality is reality, and places like France show us the inevitable outcome:

*The retirement age will go up

*Benefits will be cut substantially

*Payroll taxes will increase

We might also expect the same, or worse, reaction as in France— massive protests, strikes, riots, property destruction, and social chaos.

And all that will do nothing.

Because there are really two institutions which Americans could realistically expect to solve this problem:

One, the US government, currently saddled with $31.5 trillion of debt and rapidly increasing, with a total net worth (assets versus liabilities) of NEGATIVE $34 trillion.

Two, the Federal Reserve, which last year reported ‘unrealized losses’ of more than $330 billion against just $42 billion in capital, making it completely and totally insolvent.

So there are really only two plays left to make...

The US government could raise taxes to cover the gap.

The Federal Reserve could print money to cover the gap, creating massive inflation.

Without responsible leadership willing to make tough decisions, this is their default option.

There are a few takeaways here.

1. Prepare to fund a portion of your own retirement.

Between inflation and benefit cuts, you simply cannot rely on the promises the government has made to you about your retirement.

It’s probably not going away entirely, but you should consider Social Security as a supplement to your retirement, and not the primary source. You certainly won’t be any worse off if by some miracle Social Security manages to pay the full benefits.

2. Prepare for a future with higher taxes.

And take every legal step at your disposal to reduce what you owe.

3. Prepare for a future with higher inflation.

Again, the government’s inevitable solution is to go deeper into debt, and print the money to fund it. As we’ve already seen, more money printing means more inflation.

That doesn’t necessarily mean inflation will be at 10-15% levels for years to come. But it probably won’t be the 2% average we’ve gotten used to over the past two decades.

The good news is you can control your own fate by having your own retirement funds, which puts you in the driver's seat.

And at the same time, you can lower your taxable income significantly by, for example, contributing to a Traditional 401(k) retirement account.

As of 2023, you can contribute up to $22,500 per year, or $30,000 per year if you're over 50.

For those who are self employed, earn money through a side businesses, or own a business without any employes, using a Solo 401(k) is even more beneficial.

In 2023, the tax-free limit for contributions rises to $66,000 (or $73,500 for those age 50 and older) because you can make both the employer and employee contributions.

A self-directed Solo 401(k) also provides a wider range of investment options such as real estate, foreign investments, private equity, and more.

And this barely even scratches the surface of the options you have available to shore up your retirement, beat inflation, and legally reduce your tax rate.

You don’t have to protest, or vote harder. You simply have to understand the magnitude of the problem, and use the tools at your disposal to fix it.

To your freedom,  Simon Black, Founder  Sovereign Man

After SVB, are you worried about that your bank could be the next one to collapse suddenly?

Download our new FREE 28-page report entitled "How To Tell If YOUR Bank Is Safe". Packed with eight steps you can take to ensure your money is safe today, it's essential reading for these uncertain times.

https://www.sovereignman.com/trends/new-government-report-says-social-security-will-be-broke-in-10-years-146647/

Why is it so Essential to Learn Money Skills?

Why is it so Essential to Learn Money Skills?

August 5 2021  Financial Imaginer

Do you know how to take care of money? Did you learn about money in school? From family? From friends? Have you ever wondered how some people seem to have more money than others? Some even have more than they would ever need. This is not just because they’re lucky, it’s because they’ve learned how to take care and manage their money!

If you want to feel confident about your financial future, then there are some things you can learn about money. I can be your teacher. If you invest your time to improve your financial literacy, I promise you here and now this will be one of the best decisions of your life!

This article aims to show you how the first steps to a better life must be to improve your financial literacy. Why earning, saving, and investing more money are the key to a better life.

Are you ready to learn how it all goes together and take control of your financial future?

Get yourself a cup of coffee or tea first.  Let’s get started!

Learn How to Make Money Work for You

The best time to get started learning money skills is when you’re a child, the second-best time is right now!  It’s time to learn how money works and how you can make the most out of it.

Most people work very hard for their money, but why not become the person that makes its money work very hard for yourself? Work on becoming the latter!

Invest in Your Financial Literacy

Before you get started investing into capital markets, invest in your own financial literacy. There are a lot of things you can learn about money. And yes, it isn’t always easy. However, it’s also not rocket science!

What is Financial Literacy?

Financial literacy is the knowledge how money works. It’s the combination of skills and attitudes needed to make sound financial decisions and participate in the full range of money management activities throughout life.

In short: the knowledge and skill to make money work for You! Understanding how money works helps not only financially but also emotionally. Once you know how to make money work for you, the next steps will become easier: from budgeting to saving to investing.

The Most Important Investment of Your Life

To continue reading, please go to the original article here:

https://www.financial-imagineer.com/learn-money-skills/