Coping With The Guilt Of Losing Money

Coping With The Guilt Of Losing Money

By  THE INVESTOR 

I accept it’s normal to feel frustrated, angry, or even downright stupid when you lose money on your investments.

But what about guilt?   My portfolio’s fall from its peak value in summer 2007 to a low in October 2008 represents a big loss for a 30-something private investor like me: at least a couple of years of after-tax income in cash terms.  More importantly, the losses meant I had fewer options in October 2008 than the year before. I’d originally begun investing to build up a house-buying war chest for when the over-valued housing market corrected itself.

After several years waiting, house prices were finally falling, but my investments had fallen further.  It was my sister who put it simplest and best, when I explained to her my fate:

“Ah, I see. If only you’d sold all your investments and put the money into a savings account! Now you’d have even more money, and you could buy a cheaper house.”

My sister was a 100% right.

Being told what I did wrong by my sister, who takes no real interest in money, might have hurt my pride. But then my emotional state has taken several turns during the bear market. I’ve felt:

Frustrated:  After half a decade of waiting for property prices to fall and saving as much as 50% of my annual after-tax income, I’d thrown away my ticket to the ball.

Angry:  At the world, and at the markets. What were the chances of a once in a hundred year credit crisis coming along just when I was finally getting ready to buy a house?

Foolish:  If I’d thought property prices would fall so far, how could I have missed the connection with the stock market? Wishful thinking, perhaps?

Guilty:  My family background is not a wealthy one, and the money I’d lost was modestly substantial – more than my parents’ life savings. What was I thinking playing roulette with the market and exposing myself to such losses?

Despite these churning emotions, I didn’t sell up in despair. Instead, I kept buying while shares were cheap. I did what history and the likes of Warren Buffett say you should do – hanging in and even buying when others were fearful.

Time will tell if this faith in the stock market simply compounds my losses or leads to a recovery, but I’m glad I’ve stuck to the rational line.

Here some tips that might help you if you’re also feeling guilty or giving in to bear market despair.

1. Don’t take it personally

The stock market doesn’t know or care that I was saving money for a house, or what I’d given up. The world is a billion times bigger than our own investments, and our good or bad decisions. Market declines of 40% will leave anyone’s portfolio battered. A bear market is not your fault.

2. Accept declines are as inevitable as gains

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

https://monevator.com/coping-with-the-guilt-of-losing-money/

8 Insights Only the Self-Made Super Wealthy Understand

8 Insights Only the Self-Made Super Wealthy Understand

Billionaire Ken Fisher Shares 8 Insights Only the Self-Made Super Wealthy Understand

Wonder what it's really like to strike it rich? Billionaire Ken Fisher explains the perspectives of the self-made wealthy.

 BY KEVIN DAUM  Inc. 500 entrepreneur and best-selling author@KevinJDaum

Not all entrepreneurs are in it for the money, but gaining wealth is certainly among the top motivators for company building. Not surprisingly, having great wealth brings it's own unique responsibilities and circumstances that few get to experience first hand.

I recently had the privilege of interviewing billionaire Ken Fisher, founder, chairman, and CEO of Fisher Investments, best-selling author, Forbes magazine columnist, and No. 225 on the Forbes 400.

 Fisher provided a candid, no-holds-barred look at the perspective of the self-made super wealthy.

Here are his insights.

1. It Isn't Pursuit Of Wealth, But Pursuit Of Passion That Creates Wealth

Focusing on money won't likely get you to the Forbes list like Fisher. He aptly states: "Most people don't get super wealthy by accumulating money. They get super wealthy by following some dream they are passionate about, whether its starting and running a business, or being a rock star musician or a visual entertainer."

He points out that most of the super wealthy overshoot their personal goals, and yet they are still driven by their passion. The super wealthy know that if you pursue your passion, the money will come.

2. After A Certain Monetary Threshold, The Desire Isn't For More Wealth, But More Time

There is very little that the super wealthy cannot buy. As the wealth keeps accumulating, spending becomes less of a joy or ambition. "After a certain point," Fisher explains, "there isn't much more you can think of that you want."

What becomes more desirable is time to enjoy life. "The vacation homes, cars, boats, and wardrobes are just more stuff to deal with." Fisher observes. "All that stuff clutters your time usage, so at a certain point, the wealthier you get the more you covet time."

3. Everyone You've Known Forever (Except Your Spouse) Will Think You've Changed

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

http://www.inc.com/kevin-daum/billionaire-ken-fisher-shares-8-insights-only-the-super-wealthy-understand.html?cid=sf01002

What You Should — And Shouldn't — Do If You Win The Mega Millions Jackpot

What You Should — And Shouldn't — Do If You Win The Mega Millions Jackpot, According To An Expert

Kate Murphy·Producer  Updated Fri, August 4, 2023

There’s still a chance — 1 in nearly 303 million – for a lucky winner to score the Mega Millions jackpot, which climbed to an estimated $1.25 billion this week. If won, this jackpot would be the fourth largest grand prize won in the game's history, according to the Mega Millions website.

While securing the golden ticket is all a matter of luck, holding onto one’s newfound fortune after such a windfall requires some strategy. In fact, compared to the average American, lottery winners are more likely to declare bankruptcy within three to five years, due to a lack of financial planning.

Yahoo News spoke to Andrew Lokenauth, a personal finance expert and founder of thefinancenewsletter.com, for some tips on what to do, and not to do, if you are the jackpot winner. Some answers have been lightly edited for length and clarity.

Someone Just Won The Lottery Jackpot, What Should They Refrain From Doing?

Andrew Lokenauth: One: Don't sign the ticket, because once people know who claimed it, everyone is going to be rushing after you. I would say put it in a safe place, and depending on the state you're in, you can claim it anonymously (Delaware, Kansas, North Dakota, Ohio, South Carolina or Maryland).

Two: Don't tell anybody. This leads back into the first point because you could become the victim of robbery, or people can try to extort you.

Go private until things get under control. You'd want to delete your social media or make it private until you figure things out. Legally change your address to a P.O. box. And get a new phone number and email address, because it can be easy to find both online.

What Actions Should Lottery Winners Take?

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

https://news.yahoo.com/what-you-should--and-shouldnt--do-if-you-win-the-mega-millions-jackpot-according-to-an-expert-154711354.html

Why an Accountant Is Worth the Money

Why an Accountant Is Worth the Money

By Max Wong WiseBread

 Anyone who is at all familiar with me knows that my yearly earnings put me squarely in the economic category commonly referred to as the Working Poor. So when I mention that I pay $550 a year for an accountant to help me with my finances, people typically give me that sad look that they reserve for mediocre subway violinists and ugly babies.

And then there's the thick pause in the conversation when the other person decides against asking this question out loud: Um, don't you write about personal finance?

In answer to the silent, questioning looks, and in defense of my financial decisions, there are so many reasons why my accountant is worth the money.

1. An Accountant Is Cheaper Than Therapy

Oh my God. What if I forget something?

I would rather get oral surgery than do my own taxes. My financial life is complicated. I own a rental property. I run two separate businesses out of my home. I got 1099 forms from five different companies last year. I have a grant. I go to school part time. There are so many moving pieces in my life that just organizing my paperwork in preparation for my tax meeting with my accountant stresses me out.

As a reasonably organized person who spends a lot of time thinking about personal finance, I'm in that dicey position of knowing enough to get myself into trouble, but not enough to get myself out. I would rather pay and be sure that my finances are in order than spend hours filing my own taxes and still feel dread.

Additionally, my accountant is available to answer my financial questions all year long. While some accountants bill by the hour, my accountant rolls my calls about health care costs and asset depreciation into that yearly $550 flat fee.

2. They Can Save You Time (and Time Is Money)

I do my taxes once a year. My accountant does taxes all year long and all the livelong day. Guess who's better at doing taxes?

My accountant is a virtuoso with a calculator. She can hit the keys with the speed and precision of a concert pianist. Doing your own taxes isn't rocket science. That said, my father-in-law is actually a rocket scientist and even he uses an accountant! Why? Because it's cheaper for him to outsource his tax chores to a professional, so he can use the time he saves to make money doing something he enjoys.

My accountant also enjoys reading up on the latest changes in the tax code. Reading changes to the tax code is something I am sure that I don't want to do even once, never mind making it a yearly tradition.

Because she stays on top of her game, she is able to help me make the best choices about how and when to spend and save money.

3. They Can Recommend Legal Loopholes to Save You Money

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

https://www.wisebread.com/14-reasons-why-an-accountant-is-worth-the-money?ref=seealso

Magnitude Matters

Magnitude Matters

Rand Spero  |  HumbleDollar

WHY DON’T WE spend our time and energy on financial issues that have the greatest impact? We’ll drive to a more distant gas station to save 10 cents a gallon, but fail to do all the maintenance needed to extend the life of our car. What lies behind this sort of behavior? The savings from getting the best price per gallon is concrete and immediate, while maintaining our car is long term and abstract. It’s simply easier to focus on the 10 cents. I have a relative who stayed at a $500-a-night luxury hotel in downtown Boston. He emailed me to bring him water when I visited, because the hotel charges $5 per bottle.

Yes, the hotel is pushing the envelope with its water bottle charge, but my relative claiming he won’t pay “on principle” seems like a stretch. Such “injustices” occur when we have concrete price expectations, while we happily tolerate other, much higher costs.

Deciding on a college is a huge investment of time and money. Yet as my family dashed from one campus visit to the next, I wondered if we were being good consumers. Were we prioritizing colleges based on which tour guide captured the interest of our daughter?

Perhaps we needed to slow down and do more extensive research. When my daughter decided to apply early decision to a nearby university, we suggested she visit the school a second time. She spent a full day talking to students and sitting in on classes, and came back enthused. It proved to be a good fit.

The importance of considering the financial magnitude of a decision became apparent when I went house shopping with a friend. He was moving into town for work and wanted to get settled quickly.

As we raced between showings, one desirable property stood out. There was a crowd at the open house and the broker indicated it would move fast.

 All bids would be accepted by Sunday evening and the winner would be announced the next day. My friend got caught up in the frenzy and wanted to know what bid might be needed “to win it.”

It struck me as amusing that we had spent just 45 minutes looking at the desired house for sale. I asked my friend how much time he would spend looking at a high-priced sweater. He proudly indicated that he was a bargain shopper.

My friend added that, if he were going to pay a lot for an item of clothing, it had better be worth it. Yet soon he could be obligated to spend hundreds of thousands of dollars for a house, initiating this decision after spending less than an hour.

Want to make better purchasing decisions? Try asking these five questions:

What dollar amount are you actually spending or saving?

Are you sidetracked by focusing on low-cost items that are more easily understood?

Do you cite “principle” to defend fretting over small expenditures?

On big ticket items, have you established clear criteria before purchasing?

Have you allocated time and energy that’s appropriate, given the financial magnitude of a decision?

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

https://humbledollar.com/2020/01/magnitude-matters/

Stop Budgeting Like the Middle Class and Do What the Rich Do Instead

Stop Budgeting Like the Middle Class and Do What the Rich Do Instead

Angela Mae Wed, August 2, 2023 

A lot of people believe all they need to do to become wealthy is to earn more money or to save what they do have. This isn’t all that surprising, considering how many people subscribe to the idea that their income directly corresponds to their wealth.

But what many people who are considered “middle class” don’t realize is that earnings are just one part of the bigger picture. The people who achieve true wealth are those who know how to spend and invest the money they earn in ways that will benefit them in the long run.

If you’ve been living with a middle class mindset and want to make a change, you might need to take a moment to consider the behaviors or actions that keep you from becoming rich. Here are some of the most common things people in the middle class tend to do that the rich do not — and things the rich consistently do to maintain their wealth.

The Rich Invest While the Middle Class Do Not

The middle class tend to save their money, while the wealthy invest theirs.

Robert R. Johnson, Ph.D., CFA and professor of finance at Heider College of Business at Creighton University, gave a historical look at the stock market.

“From 1926 through 2022,” he said, “the stock market provided returns that far exceeded treasury bills or treasury bonds. According to data compiled by Ibbotson Associates, large capitalization stocks — think S&P 500 — returned 10.1% compounded annually. Over that same time period, long-term government bonds returned 5.2% annually and T-bills returned 3.2% annually.

“To put it in perspective,” he added, “a dollar invested in the S&P 500 at the start of 1926 would have grown to $11,535 (with all dividends reinvested) by the end of 2022. That same dollar invested in T-bills would only have grown to $22.05. That same dollar invested in long-term government bonds would have only grown to $130.89. It pays to invest and not simply save. And it’s not a close call.”

Justin Albertynas, CEO of RatePunk, added, “Wealthy individuals also prioritize long-term investing strategies. They are more likely to hold onto their investments, benefiting from compound growth over time. According to a study by Spectrem Group, 75% of millionaires in the US attribute their wealth to long-term investing.”

Middle Class Individuals Rarely Have Multiple Income Streams

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

https://finance.yahoo.com/news/stop-budgeting-middle-class-rich-150019991.html

Rich People Do These 4 Things to Stay Wealthy (& So Can You)

Rich People Do These 4 Things to Stay Wealthy (& So Can You)

Wola Odeniran, CEPF® Thu, August 3, 2023

Advisors often work with high-net-worth clients and are able to understand the expectations wealthy clients have about managing their finances. The good news is that some of those takeaways can be applied to clients who are not high-net-worth individuals.

Read on to understand four lessons advisors can take from high-net-worth clients – and how they can be applied to any client.

Almost Everyone Needs an Estate Plan

Estate-planning practices apply to every client, no matter their tax bracket, says Renee Fry, co-founder and CEO of Gentreo, a company that provides estate-planning document services.

“Financial advisors should take the example of their high-net-worth clients and apply estate-planning principles to all their customers, regardless of income bracket,” Fry says. “Every person has an estate, regardless of their income level, and thus, everyone should have a plan in place to ensure that their assets are distributed according to their wishes.”

Proper planning can help advisors build a bigger client base. “By doing so, advisors can help ensure their client’s financial security, build long-term trust and differentiate themselves from their competitors,” Fry says.

Outside Advice Is Valuable, Even When Clients Are Knowledgeable

Some clients may be titans of business or professional heavyweights, which has helped them benefit financially. “But that doesn’t mean that they know how to budget, how much insurance to have, how to invest or what to do with their wealth in terms of estate and charitable giving,” says Amy Jo Lauber, a certified financial planner and founder of Lauber Financial Planning.

Lauber also says that non-high-net-worth clients, especially those looking to improve their financial situation, often have more financial awareness than those who are wealthy.

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

https://www.yahoo.com/finance/news/4-lessons-advisors-learn-high-170850089.html

Ten Rules for Asset Protection Planning

Ten Rules for Asset Protection Planning

By Jay Adkisson

Start early, keep it simple, and don’t try to hide stuff from your creditors.

There’s a gambling saying that goes something like, “If you want to be a winner, you have to walk away from the table a winner.” One time-honored method of reaching this result is to systematically take your chips off the table as you win them, so that your potential for losses stays small.

Asset protection planning is all about taking chips off the table in good times, so that you still can walk away from the table a winner no matter what happens in bad times. Those who worry the most about asset protection are those who are the most likely to get sued; think obstetricians and, more recently, real estate investors here.  But average folks often get caught up in difficult situations, and thus if you have something to protect then the topic of asset protection should at least cross your mind. ...

Technically, asset protection planning is the debtor’s side of creditor-debtor law. While creditors are concerned about the strategies and techniques of collection, debtors are interested in the strategies and techniques for protecting their most valuable assets from potential creditors.

But in this calculation, it is not just about protecting assets but also about making sure that one does not end up in jail for contempt or bankruptcy fraud for engaging in the process.

Keeping in mind the law school adage that “General rules are generally inapplicable”, the following 10 rules should always be kept in mind when you try to take your chips off the table.

1. Start Planning Before A Claim Arises

Many things you can do will effectively provide asset protection before a claim or liability arises, but few things will afterwards. That’s because what you do after a claim rises could be undone by “fraudulent transfer” law.

Moreover, the point at which a claim arises is earlier than a layman might think—it is, for example, usually much earlier than when a demand letter or a process server shows up at the door.

2. Late Planning Usually Backfires

Asset protection planning after a claim arises is apt to make matters worse; think of it as getting a flu shot while you have the flu, and the shot itself making you even more woozy.

 It is a common misconception that the only thing a judge can do is to unwind a fraudulent transfer, leaving a debtor who unsuccessfully tried late planning no worse off than if he had done nothing.

To the contrary, both the debtor and whoever assisted in the fraudulent transfer can become liable for the creditor’s attorney fees, and the debtor can lose the hope of getting a discharge in bankruptcy.

3. Asset Protection Planning Is Not A Substitute For Insurance

Asset protection planning should not be a substitute for liability and professional insurance, but rather should supplement insurance.

It is a myth that asset protection plans invariably scare away plaintiffs, and an asset protection plan doesn’t pay legal fees to defend against a lawsuit.

Insurance also supplements asset protection planning, since it can help a debtor survive a claim a fraudulent transfer claim. If you get sued, let the insurance company pay to defend it and pay to settle it — that’s what you’re paying the premiums for. 

4. Personal Assets Are For Trusts; Business Assets Are For Business Entities

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

https://www.forbes.com/sites/jayadkisson/2011/07/13/ten-rules-for-asset-protection-planning/?sh=5b0cf8d33889

Post RV Tips & Suggestions

Post RV Tips & Suggestions

From OOMF  By Just Da Truth  (Repost From Our Archives)

While there are numerous ways to prepare for the RV I feel this will assist you in preparation for that most awesome day. When you see RV in big letters on your favorite currency forum, , or when you hear me scream hallelujah from wherever you are in the world…that is when you will know that glorious day has arrived. But will you be ready?

Prepare: I realize many of you have done your research on how to invest, donate, and spend your money (Lord knows we have had plenty of time to do that, LOL) but time should also be allocated to how you are going to receive your investment.

Preparation is not a huge task and I believe it is essential.

Many of us have our dinar stuffed in the sock drawer, safe deposit box at the bank, or maybe even locked in the pages of your Bible but when that day arrives for you to exchange your currency there are a few things you should consider. Here are some simple steps and advice…

Give thanks: First and foremost hit your knees!

Keep Quiet: On the day you discover your investment has RV’d your first reaction is to scream with excitement and to tell the world. Think of your safety and your family’s safety first. Handle your affairs as quiet as possible.

Even though this event trumps all events you could ever post on Facebook and Twitter…it is better not to tell anyone about this particular event.

Identification: If you decide to use a bank or your currency trader at time of exchange both are going to ask for 1 to 3 different forms of identification.

Make sure your id’s are current. You will likely use your driver’s license, passport, credit cards, student ID, work ID, and/or a utility bill.

Banking: If you are dealing with small banks, go straight to the VP or upper management. If your bank has a foreign currency exchange department immediately ask for the VP or President of the department.

With larger national  banks, go to their Private Banking or equivalent division for customers with great wealth. I think you get the point I am trying to make…

If the new exchange rate is considerably higher and you have several dinars to exchange you will be dealing with a high amount of cash in exchange. This step will only move the process along and further protect your asset.

They may have more options when it comes to banking, and have a better grasp of the disclosure and security procedures in the bank.

It would also be beneficial, if you know your banker, to have his/her name and phone number ready in case there is a technical challenge wiring the funds.

If not, have the banks phone number and address readily available…go ahead and log into your contacts in the cell phone.

Also, research your own bank options, banking fees, bank account features, return rates, FDIC insurance, NCUA insurance, etc.

If you are utilizing the services of a currency trader make sure you have all the needed account numbers that the exchange office will require in order to wire funds to your bank of choice. So you will need your bank name, bank account, routing number, and wire transfer numbers. Also add the phone number and address into your cell phone for quick access.

Contingency Plan: Lets say you plan to go to your local bank to cash in your dinar. You find out there is something you are not too familiar with or maybe…they do not offer a currency exchange service.

If they are going to ship your Dinar out-of-state (out of your sight) for 3 or 4 days, the cash in spread is too high, etc etc. What do you do?

Do some calling around before you leave to see what services your institution offers. Ask about the rates and if there will be a delay for the money to be deposited into your account.

Take a preventive measure today by writing down a list of banks near your home, next major city, or an adjacent state that you can contact if a problem with your initial bank arises.

Depositing your Cash: Regardless of the method you use to exchange your dinar into dollars you will likely deposit a large sum of cash into a bank account. If you are in the United States banks are required to report to the IRS any single deposit exceeding $9,999.99. This is to identify potential criminals dealing in fraud, theft, or even terrorism.

Furthermore, funds deposited in the amount of $10,000 or more can be “frozen”by the bank or by the bank on behalf of the IRS if the deposit appears“suspicious”. These frozen funds can by tied up to 10 days or until you can provide valid proof where these funds originated.

There are suggestions on how to avoid your bank account from being frozen but none will guarantee you will not wait to have access to your funds. Banks can hold wired funds, checks and cashier checks until funds are honored by the issuing  institution. Much like a second party check each bank has a “clearing”period based on different transaction types.

Prior to making the deposit (especially if it is a large deposit) talk with the manager and explain the situation as an investment payout. You may need validation of some kind such as a written statement. This may avoid the IRS from being directly involved and shorten the time frame you will have access to your entire deposited funds.

Please discuss this with your banker, attorney, and/or CPA for further clarification and understanding.

“Walking” out with your money: If you were cashing a check for a few thousand dollars it is likely the banker would place your bills in a zipper bag and let you walk out the door.

However, if you ask to walk out with lets say a few hundred thousand dollars be prepared to wait.

Banks refrain from having large bulks of cash on hand for security purposes and most transactions are electronic.

However if you desire to have “cash” be prepared to make a request anywhere from 24 to 72 hours prior to your withdrawal in order for the bank to make arrangements.

Trusts, LLC, and Other Legal Entities: There are many ways to suggest how to set up your financial portfolio. Some have suggested to set up a trust(s), some have suggested establishing a LLC. Some just plan on cashing in as a single person.

However you decide to set up your arrangement make sure all of the legal documents are close by so that you can refer to them, if need be.

If you desire to open a bank account under a Trust, LLC, etc. these documents will be required. See bank accounts above.

Be careful of online offers and Dinar forums offering trust advice or assistance. Do you research…you don’t know who these people are..Don’t send anyone funds prior to a thorough investigation. Call the Better Business Bureau for advice.

Wills: I realize this sounds morbid but it is essential. I hate to say it but here is a scenario…you cash in and deposit $1 million in your bank account. On the way out of the bank you do your best impression of the Snoopy dance.

Not watching where you are going you come face to face with a large RV…not revaluation but a recreational vehicle! Your RV came twice that day…first to make you wealthy and the second time to meet your maker. So what happens to your $1 million?

This is why it is essential to draw up a will. Even a simple notarized will is better than nothing. Easy wills are found at places like Office Depot…some are free online as well.

Tax: The ugliest three letters ever made up. But it is something we all will deal with. Don’t try to avoid it as you will find yourself regretting you ever did. Its better to place a certain percentage aside allocated just for taxes and never touch it!

These percentages have been quoted all across the spectrum but whatever you decide to allocate..remind yourself not to spend it till you decide to send that check to Uncle Sam.

My advice would be to look up the phone numbers of local CPA’s, CPA/Tax Attorney’s and have their numbers available to make appointments with them post RV.

Get their advice and reconcile their thoughts. Once you pick someone you are comfortable with he/she can walk you through the needed forms and steps.

Of course, choosing a CPA or a Tax Attorney is not that simple…so keep your ears open for a well-qualified person to handle your taxes.

I understand some are saying their are methods to avoid paying taxes on currency exchange. Listen! Be Smart! Get the advice of a tax professional and don’t end up owing money or perhaps be under investigation.

Don’t be fooled…the IRS follows every transaction at banks so just be cautious and pay your taxes.

Post RV Investments: The only advice I can give you here is to… get advice.

Seek the services of a financial consultant, go to the library, Google everything that comes to mind. I will admit that just about any financial advisor that exists would likely roll of out of his chair in laughter if he heard about this investment pre-RV but I would also place a handsome bet that he or she would want your business when you are in search of advice post-RV.

Do your due diligence before you spend money. Don’t be afraid to get second opinions and ask around.

This kind of blessing will likely never happen like this again so be wise.

Also..Be wary of fellow dinar investors asking you to partner with them in an investment. Just because they are a fellow investor doesn’t mean they have your best interest at heart. Be Smart!

Donations/Tithe: I think it is imperative we should all give back, pass it forward, and donate. But do your homework and give your money to honest charities. It’s shameful to think that people make up fraudulent organizations and never spend donations instead they line their greedy pockets. Give to organizations that are close to your heart.

Tithe to your church. The tax man is going to take a chunk of your wealth you might as well offset the tax man by giving those funds to something meaningful and worthwhile.

Document Everything; This can’t be emphasized enough. If you are fortunate to gain a large sum of wealth remind yourself to treat your accounts appropriately and be careful not to let others mishandle your money.

You may have more money than you ever had before but that doesn’t mean you will always have it. Keep records, bank statements, receipts, contracts, agreements, etc.

If you hire a financial advisor be actively involved with your account and have understanding of what your advisor is doing with your money. Also, be aware of all of the fees advisors charge for their services.

After all how many times have you heard of celebrities discovering they are broke because they trusted someone else with their money?

Debt: When the RV occurs you will have been blessed with a sudden amount of wealth. No matter how small or large the sum of your return find it in yourself to reduce your personal debt.

Pay off the mortgage, pay off the credit cards, pay off the installment loans, pay off the student loans, pay it all off. Stop being a slave to debt and avoid at all costs reentering into a lifestyle of owing a creditor.

Pay yourself: There is nothing wrong with spending money on yourself. Take a vacation, buy a car, pay off some bills, go to the mall. Withdraw some “fun”money but take the rest and let the interest and dividends accrue.

Remember to buy smart: Many of us have lived modestly most of our lives and with a sudden amount of cash in the bank your buying potential could be endless. But remember to be smart when making purchases.

Sure you can afford a 10,000 sf house but remember the taxes, utilities, and cost to maintain the home. Sure you can afford a Ferrari, Lamborghini, and a Porsche but remember the maintenance cost associated with these high end cars. Enjoy your wealth…learn to keep it.

Loose Lips, Sinks Ships: Its sad but true…the minute you have money in your bank account will be happy. But if friends and family that are non-dinar investors hear of your recent influx of wealth they are going to want a piece of your pie.

I am sure you are going to want to help your friends and family but do it under your own will and not because of their solicitation. Be quiet and serve your fortune to those with gratitude and need.

Safety: Lets just be honest. There are some cruel people in this world and they will do anything they can to harm you or your family in order to obtain a portion of your wealth.

This refers back to being quiet. Fly under the radar. Live as normal as you can. Enjoy your life but be aware of your surroundings and the people you invite into your life.

Enjoy your life: Money does not buy happiness. Some of the richest people in history were the most miserable. Let the happiness in your life result from living your life right, spending your wealth of time with your family, and being debt free.

Now that you are rich avoid falling into the temptation the desire to become wealthier.

Don’t let money be a driving force in your life. It is perfectly fine to invest and protect your wealth just don’t allow it to consume your life.

These are just a few tips and suggestions. This is my soul my opinion and I am not a financial consultant, CPA, lawyer, and in no capacity have the power to give financial or legal advice however I am a concerned investor that wants all of us to be informed.

The Biggest Truth In Personal Finance

The Biggest Truth In Personal Finance

By J.D. Roth Get Rich Slowly

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.

There are only two sides to this wealth equation — earning and spending — but a disproportionate amount of financial advice focuses on the one factor, on spending, and that's too bad. Sure, frugality is an important part of personal finance. And if you're in a tight spot and/or have a high income and still struggle, then cutting expenses is an excellent choice. But the reality is, you won't get rich — slowly or otherwise — by pinching pennies alone.

The Biggest Lie in Personal Finance

Recently at his excellent blog, Of Dollars and Data, Nick Maggiulli wrote about the biggest lie in personal finance. What is that lie? He writes:

While there are lots of people who are in financial trouble because of their own actions, there are also lots of people with good financial habits who just don’t have sufficient income to improve their finances.

That’s why the biggest lie in personal finance is that you can be rich if you just cut your spending. And the financial media feeds this lie by telling you to stop spending $5 a day on coffee so that you can become a millionaire.

With charts and graphs and data, Maggiuli demonstrates that the problem facing people with low incomes isn't their spending — it's their earning. If you're living at the poverty line — currently $26,200 per year for an American family of four — you're not going to escape through thrift. Thrift is an emergency measure, a stopgap. It's a bandage on a major wound.

Here's the bottom line:

If you're poor and hope to be not poor, your attention should be focused on increasing income, not on cutting costs. Your expenses are likely already very low.

If you have an average household income — currently $63,179 according to the U.S. Census Bureau — your path to building wealth will probably include both frugality and income enhancement.

If you have a high income but still struggle to make ends meet, your attention should absolutely turn to cutting costs. You need to rein in your lifestyle. But you won't accomplish this with frugality; you'll do this by optimizing the big stuff.

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

https://www.getrichslowly.org/the-biggest-truth-in-personal-finance/#more-238978

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.

 (Of course, the more complicated your finances, the more you’ll benefit from working with a financial planner who can help you navigate your specific situation.)

 1. Protect Yourself Against the Unexpected

 Before working on almost any other long-term financial goals, you’ll probably want to have at least three to six months’ worth of expenses in a liquid account that you can access in case of emergencies.

 “An emergency fund gives you the ability to stay on track no matter what your other goals are,” says Rich Ramassini, a Certified Financial Planner and senior vice president at PNC Investments. This is true even if you have credit card debt. “Let’s say you want to aggressively pay down your credit cards, but your car breaks down and you need a $2,000 repair. If you don’t have an emergency fund, guess where that money is coming from?”

 Bonus: Rising interest rates mean that you save money in an online savings account and it should earn at least a small return.

 Helping to protect against the unexpected also means making sure that you have adequate insurance coverage. That often includes health insurance, auto and home (or renters) insurance, life insurance and disability insurance.

 Although insurance premiums can put a dent in your cash flow, they tend to be relatively cheap compared to the expenses you’d face in a worst-case scenario without such coverage.

2. Start Saving for Retirement

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

https://meetfabric.com/blog/prioritization-financial-goals-short-term-long-term