DINARRECAPS8 5/25/24 DINARRECAPS8 5/25/24

Banking Habits You Should Change in Retirement

Jordan Rosenfeld Sat, May 25, 2024

While retirement is often a time when you finally get to stop thinking so hard about many of the little details in life, there are some you want to stay on top of, like your banking habits.

Some of your pre-retirement banking habits may not be as useful, protective or financially savvy after retirement.

Experts explain some banking habits you might still be doing that you’ll want to change in retirement.

Wealthy people know the best money secrets. Learn how to copy them.

Not Saving More Than Before

Retirees should consider having more money in a bank account than they did while they were working and earning an income, according to Chris Urban, CFP, a retirement planner and founder of Discovery Wealth Planning.

Experts: Banking Habits You Should Change in Retirement

Jordan Rosenfeld Sat, May 25, 2024

While retirement is often a time when you finally get to stop thinking so hard about many of the little details in life, there are some you want to stay on top of, like your banking habits.

Some of your pre-retirement banking habits may not be as useful, protective or financially savvy after retirement.

Experts explain some banking habits you might still be doing that you’ll want to change in retirement.

Wealthy people know the best money secrets. Learn how to copy them.

Not Saving More Than Before

“These days, high-yield savings accounts are a good place to earn a reasonable amount of interest while also having access to your cash. These accounts are a great way to insulate your household from the ups and downs of the financial markets, where your other retirement and investment accounts may be invested,” Urban said.

Learn More: 7 Bills You Never Have To Pay When You Retire

Not Keeping Cash Liquid

Consider taking your spending money from this high-yield savings account and replenishing it in a tax-efficient way from your retirement and/or investment accounts in years when they have performed well, Urban explained.

“Sure, you might have what is referred to as ‘cash drag’ by holding too much in cash; however, in my opinion, retirement is much more about optimizing your overall happiness and life than it is about optimizing for investment performance,” he said.

Holding On to High-Fee Accounts

Retirees should steer clear of accounts with high fees, including maintenance fees, overdraft fees and ATM fees, according to Taylor Kovar, CFP, founder and CEO of 11 Financial.

“These fees can eat into retirement savings over time. Instead, consider switching to fee-free or low-fee accounts to minimize expenses and maximize savings,” he said.

Do your research and shop around different banks and credit unions to find accounts with low or no fees, added Lyle D. Solomon, Esq., an attorney who specializes in personal finance issues such as debt relief, taxes and estate planning at Oak View Law Group. “Don’t hesitate to switch if you find a much better deal elsewhere,” he said.

Using Non-Bank ATMs

Retirees should also be mindful of using non-bank ATMs, which often charge hefty fees for withdrawals, Kovar said.

DINARRECAPS8 5/23/24 DINARRECAPS8 5/23/24

9 Ways To Become Rich If You Were Born Poor

Cindy Lamothe Fri, May 17, 2024,

Growing up with wealth is a privilege that lends financial stability and provides greater opportunities for future success. But what if you weren’t born with a silver spoon in your mouth? It’s hard to fathom going from poor to wealthy in a single lifetime, but according to experts, it’s not some distant fantasy. It isn’t easy either.

“Wealth building for individuals starting from a disadvantaged economic position requires a multifaceted approach, focusing on education, smart financial decisions and leveraging available opportunities creatively,” said Dennis Shirshikov, head of growth at Summer.

“Education, both formal and informal, is a cornerstone. It’s not just about earning degrees but acquiring financial literacy,” he added.

Overall, though, some experts disagree on how best to build wealth — especially when starting from a place of financial insecurity. Some say to invest in education, while others suggest skipping the fancy schools altogether.

9 Ways To Become Rich If You Were Born Poor

Cindy Lamothe Fri, May 17, 2024,

“Education, both formal and informal, is a cornerstone. It’s not just about earning degrees but acquiring financial literacy,” he added.

Below are some ways to become rich if you’re starting out with limited resources, according to the experts.

Capitalize on High Demand Skills or Industries

One strategy, according to Shirshikov, is to capitalize on high-demand skills or industries.

“Whether it’s learning a trade, tech skills or entering emerging markets, aligning one’s skillset with market demands can provide a substantial economic uplift.”

Start a Business

Entrepreneurship also plays a crucial role, Shirshikov continued. “It involves higher risks but offers greater control and higher rewards.

“I’ve observed several cases where individuals from modest backgrounds have started their own businesses in fields as varied as cleaning services to tech consultancies, scaling these ventures into substantial wealth over time.”

The key, he says, lies in starting small, minimizing initial costs and gradually expanding as the business generates revenue.

Focus on Getting a Good Education

“The key to building wealth for people starting from scratch is to focus on getting a good education and developing valuable skills,” said Joe Chappius, financial planning and tax expert at TaxClimate.com.

“This builds you a solid foundation that will open doors to better job opportunities and higher income for you later on.”

Melanie Musson, finance expert with Clearsurance, agrees.

“Take a class and read some books. When you don’t grow up rich, you miss out on the lifestyle learning you get just by living in a wealthy household. So, to make up for that, you have to take the initiative to educate yourself.”

DINARRECAPS8 5/22/24 DINARRECAPS8 5/22/24

The Fed Is Already Insolvent. Here’s How We Think This Plays Out

Notes From The Field By James Hickman ( Simon Black ) 5-22-24

On Tuesday, September 15, 1992, the two most powerful financial officials in the British government held an urgent meeting that night to review their plan for when the markets opened the next morning.

The tone of the meeting must have felt frantic… even desperate… because the value of the British pound had been falling for weeks.

Investors and speculators were rapidly losing confidence in the UK government, mostly due to the ridiculous “Exchange Rate Mechanism” (ERM) which essentially pegged most European currencies to the German Deutschemark.

Rational investors viewed the ERM as an almost comical impossibility.

Germany’s economy was light years ahead of everyone else. Germany had vastly higher productivity, far greater savings, low inflation, high growth, and much more responsible monetary policy.

The Fed Is Already Insolvent. Here’s How We Think This Plays Out

Notes From The Field By James Hickman ( Simon Black ) 5-22-24

The tone of the meeting must have felt frantic… even desperate… because the value of the British pound had been falling for weeks.

Rational investors viewed the ERM as an almost comical impossibility.

Germany’s economy was light years ahead of everyone else. Germany had vastly higher productivity, far greater savings, low inflation, high growth, and much more responsible monetary policy.

So, to even pretend that a country like Italy or even Britain could fix its exchange rate to the Deutschemark, i.e. to essentially mirror Germany’s economic performance-- was a total joke.

Britain joined the Exchange Rate Mechanism in October 1990. Prime Minister Margaret Thatcher had spent years trying to keep Britain out of the ERM, viewing it as giving up national sovereignty.

But Thatcher was about to retire. And the new batch of leaders insisted that pegging Britain’s economy to Germany was the way forward.

Their experiment didn’t even last two years. By the summer of 1992, inflation in Britain was more than 3x Germany’s. Plus, Britain had a major budget deficit.

Financial speculators correctly recognized, given the massive disconnect between the British and German economies, that Britain would not be able to maintain its fixed exchange rate with the Deutschemark.

So, traders began short selling the British pound, i.e. betting that the value of the pound would fall because the British government would devalue its currency.

The sell-off reached a crisis on September 15th, when the head of Germany’s central bank suggested to the Wall Street Journal that weaker countries (like Britain) would have to devalue their currencies.

That’s what led the British Chancellor of the Exchequer and head of the Bank of England-- the two most powerful policymakers in British government finance-- to meet that evening.

They knew that the German central bank’s comments would encourage even more traders to dump the British pound. So, the two men pledged to do ‘whatever it takes’ to defend the pound and defeat the speculators.

It didn’t work.

The following morning on September 16th, the Bank of England did everything it could. They raised interest rates, they bought back pounds, they bought government bonds, they made all sorts of outlandish promises.

But speculators didn’t believe any of it. They could see the numbers, and they knew that the Bank of England simply didn’t have the financial resources to maintain such an unrealistic exchange rate.

One of those speculators was George Soros, who famously bet $10 billion against the British pound… far exceeding the Bank of England’s financial resources

By the end of that day, the British central bank had exhausted its capital and was essentially bankrupt. The British government had to bail them out to the tune of 3 billion pounds, and then announce that they were formally leaving the ERM-- proving the speculators right.

This is an important story to understand, because it’s likely that something similar may happen to the Federal Reserve and US dollar over the next several years.

The Federal Reserve is already insolvent.

According to its most recent annual financial statements, the Fed has just $51 billion in equity, versus a whopping $948 billion in mark-to-market losses. This means the Fed is insolvent by roughly $900 billion.

This is a big problem. Remember that the Fed is still a bank, i.e. it has financial obligations, liabilities, and depositors that it needs to pay.

For example, commercial banks like JP Morgan and Bank of America have deposited a total of $3.4 trillion of their customers’ money, i.e. YOUR money, with the Fed. And the Treasury Department holds another $700 billion deposit at the Fed.

The Fed owes money to foreign governments. They owe trillions of dollars from repurchase agreements to banks and businesses across the global financial system.

So, yeah, the insolvency of the Federal Reserve is a pretty big deal. Yet, at least for now, no one is saying a word about it.

But just like the Bank of England in 1992, sooner or later, someone is finally going to say something… and do something… about the Fed’s insolvency.

There’s a good chance that means betting against the dollar… just like speculators bet against the pound three decades ago. And that would ultimately reduce the value of the dollar, increase inflation, and trigger a new ‘Bretton Woods’ agreement in which the US dollar is no longer the world’s reserve currency.

George Soros became known as “The Man Who Broke the Bank of England”. (Though given his malign proclivity to fund progressive activists, he is known by several other names in my household, none of them reverent).

Within the next several years there could be some Chinese or Russian financier who becomes known as “The Man Who Broke the Fed”.

This isn’t sensational. The Fed is already insolvent by $900+ billion, according to its own financial statements. Social Security is insolvent. The US government is insolvent by tens of trillions… and they further anticipate the national debt to grow by $20 trillion over the next decade.

These are facts, not fantasies.

And this is why it makes so much sense to hedge these risks by owning real assets which are scarce, valuable, and uncorrelated to the US dollar.

Gold is a great example. And as we’ve argued before, even though it’s already near its all-time high, we believe it can go much higher from here.

Here’s Why I Regret Being So Extreme Saving Money

I’m a Super Saver: Here’s Why I Regret Being So Extreme Saving Money

G. Brian Davis Sat, May 18, 2024

Most people spend too much and save too little of their paycheck. But it’s possible to go too far in the opposite direction.

While saving more money helps you build wealth and passive income streams, and possibly reach financial independence at a younger age, extreme savings and frugality come with a cost. Before budgeting for a high savings rate, beware of the following pitfalls.

Missed Experiences with Loved Ones

Life is meant to be shared. Sometimes that means spending money to share experiences with your family and friends.

“In their relentless pursuit of savings, I’ve seen many people sacrifice cherished experiences, personal growth opportunities, and meaningful connections with loved ones,” said Abid Salahi, co-founder of FinlyWealth. “One particular client of mine, driven by an insatiable desire to save every penny, missed out on attending important family events and cultivating hobbies.”

I’m a Super Saver: Here’s Why I Regret Being So Extreme Saving Money

G. Brian Davis Sat, May 18, 2024

Most people spend too much and save too little of their paycheck. But it’s possible to go too far in the opposite direction.

Missed Experiences with Loved Ones

Life is meant to be shared. Sometimes that means spending money to share experiences with your family and friends.

Instead of being exclusively focused on saving, he advised, “Prioritize quality time with loved ones, engage in hobbies and activities that bring you joy, and cultivate a mindset of abundance rather than scarcity.”

Tolls on Personal Relationships

Missing out on shared experiences aside, hardline stances can impact your personal relationships.

Carl Rodriguez of NX Auto Transport has seen it firsthand. “One lesser-known downside to extreme frugality is the potential impact on relationships. Saving aggressively can sometimes lead to conflicts with friends or family members who have different spending habits or expectations.”

That proves especially true for your romantic relationships, where your finances intertwine with another person’s. “It’s important to find a balance and communicate openly about financial goals to avoid strain on relationships.”

Lack of Investment in Your Children

The better experiences and education you provide your children, the more likely they are to grow into successful, balanced, intellectually curious adults. But don’t let your desire to save money interfere with being present for your kids.

Mado Eldemrdash from Tireonway.com weighs his own regrets about investments in his children. “I worry it has affected my children, the quality of schools and clubs we’ve sent them to. All these financial behaviors can impact our quality of life and may affect my children’s professional futures.”

Neglected Personal Development

DINARRECAPS8 5/21/24 DINARRECAPS8 5/21/24

9 Reasons Banking In-Person Is More Financially Savvy Than Banking Online

I’m a Bank Teller: 9 Reasons Banking In-Person Is More Financially Savvy Than Banking Online

Laura Beck Fri, May 17, 2024

Most of us do our banking completely online now. It’s just a fact of the digital age — when you can deposit a check right into your bank’s mobile app, what’s the point of trekking to a branch? However, veteran bank teller Rachael P. says we shouldn’t abandon in-person banking entirely.

“There are still plenty of advantages to physically going into a branch,” Rachael shared. “Sure, digital banking is easy. But something can be lost when you have zero human interaction with your bank.”

While digital banking is booming, she believes making an effort to head into branches periodically can actually pay financial dividends. Here are the nine reasons you should consider in-person banking over banking online, according to a bank teller.

*************

I’m a Bank Teller: 9 Reasons Banking In-Person Is More Financially Savvy Than Banking Online

Laura Beck Fri, May 17, 2024

Catch Errors and Fraud Faster

“Something just feels more official when you’re looking at physical statements and documents rather than numbers on a screen,” Rachael said. “It makes it easier to identify errors, missing funds or potential fraud right away rather than just scrolling past it.”

Speaking to a real person can facilitate quicker resolution as well.

Tap Into Professional Expertise

“At the end of the day, we’re trained financial professionals who understand banking, regulations and money management inside and out,” she stated. “Sure, that internet chat rep seems friendly. But you’ll get way deeper insights by actually talking to someone face-to-face.”

Negotiate Better Rates and Fees

You’d be surprised what a teller or personal banker can do if you simply ask politely. Whether it’s lowering fees, getting a better interest rate or waiving penalties, simply walking into a branch gives you way more flexibility than online interactions.

Build Relationships and Get Personalized Service

“When you bank in person, we get to know you as a real individual,” Rachael explained. “Not just an account number. That allows us to treat you as a person and provide much more personalized service tailored to your specific needs and situation.”

Ask Questions More Easily

DINARRECAPS8 5/19/24 DINARRECAPS8 5/19/24

An Economist’s Rule for Making Tough Life Decisions

Quartz Sarah Todd

"Whenever you cannot decide what you should do, choose the action that represents a change."

“You must change your life,” Rainer Maria Rilke exhorts readers in the final line of his poem “Archaic Torso of Apollo.” It’s a surprise-twist ending, meant to capture the sudden nature of epiphanies. Having spent the entire poem contemplating the beauty of an ancient Greek statue, Rilke practically reaches through the page to shake readers by the shoulders, urging us to transform ourselves—to use our rapidly-dwindling time on Earth as wisely as Apollo’s sculptor did.

But changing your life is a big deal. It takes a lot of work and emotional energy. And it’s often very difficult to predict if a dramatic turn will actually make us happier and more fulfilled, or if it will be the biggest mistake ever and we’ll shrivel up into little raisins of regret.

An Economist’s Rule for Making Tough Life Decisions

Quartz Sarah Todd

"Whenever you cannot decide what you should do, choose the action that represents a change."

So we waffle over whether or not to quit a job, change careers, start a business, or go back to school, weighing endless pros and cons. In behavioral economics, this phenomenon is known as status quo bias. People are generally predisposed to favor sticking with their current circumstances, whatever they may be, instead of taking a risk and bushwhacking their way toward a different life.

That’s an instinct we should fight against, according to the findings of a new study by Steven Levitt, University of Chicago economist and Freakonomics co-author, published in Oxford University’s Review of Economic Studies.

The study asked people who were having a hard time making a decision to participate in a randomized digital coin toss on the website FreakonomicsExperiments.com. People asked questions ranging from “Should I quit my job?” to “Should I break up with my significant other?” and “Should I go back to school?” Heads meant they should take action. Tails, they stuck with the status quo.

Ultimately, 20,000 coins were flipped—and people who got heads and made a big change reported being significantly happier than they were before, both two months and six months later.

“The data from my experiment suggests we would all be better off if we did more quitting,” Levitt said in a press release. “A good rule of thumb in decision making is, whenever you cannot decide what you should do, choose the action that represents a change, rather than continuing the status quo.”

Do more quitting may sound like strange advice in the midst of a pandemic that’s mauling the labor market. Those lucky enough to still have a stable income and health insurance may be quite sensibly wary of jettisoning those things for the great unknown.

But dig a little deeper, and Levitt’s suggested rule of thumb for decision-making turns out to be decidedly evergreen, and may even have added significance in current upheavals of the Covid-19 era. We’re biased toward upholding the status quo, but it’s a bias that hurts us.

Flip a Coin, Make a Change

There are plenty of caveats to this experiment, which collected data over the course of a year beginning in 2013. For one thing, as Levitt explains, the subject pool wasn’t at all random.

To Read More: LINK

DINARRECAPS8 5/18/24 DINARRECAPS8 5/18/24

The Latest Social Security Trustees Report Spurs Angst About The Program's Solvency

Kerry Hannon·Senior Columnist Yahoo Finance Fri, May 17, 2024

Amid uncertainty around Social Security, here's what financial advisers are telling clients

Social Security isn’t shattered, but it’s shaky.

The new report on Social Security, which predicts that the combined retirement and disability trust fund reserves will go broke in 2035, has put more Americans on edge, especially those nearing retirement who are worrying about how much in benefits they can expect.

The 2024 Social Security and Medicare trustees report projects insolvency one year later than last year’s estimate. That scarcely brighter outlook stems from the strong economy and wage growth, which has ramped up payroll tax payments that fund the program. For now, low unemployment has meant that more workers are adding to the program, even while a rising number of baby boomers begin to tap their benefits, the trustees said.

The Latest Social Security Trustees Report Spurs Angst About The Program's Solvency

Kerry Hannon·Senior Columnist Yahoo Finance Fri, May 17, 2024

Amid uncertainty around Social Security, here's what financial advisers are telling clients

Social Security isn’t shattered, but it’s shaky.

The potential depletion of the fund does not, however, translate to an empty till. There will still be money to pay benefits at that stage — though only 83% of what’s been promised to current and future beneficiaries. In other words, without a fix, beneficiaries could see a 17% cut in benefits.

“Congress is painting itself into a corner on fixing Social Security’s pending insolvency,” Mary Johnson, a Social Security and Medicare policy analyst, told Yahoo Finance. “Failure to act on the program in time would lead to automatic benefit cuts.”

How widely would that cut be felt? The program paid nearly $1.4 trillion in benefits last year to about 67 million Americans. For about half of seniors, Social Security provides at least half of their income, and for about 1 in 4 seniors, it accounts for at least 90% of income.

There are several solutions to fix the shortfall, including ratcheting up payroll taxes that fund the program, currently 12.4% split evenly by employees and employers. Other proposals include raising the retirement age for younger workers or lifting the cap on how much of a person’s income is subject to the Social Security tax. For 2024, the Social Security tax limit is $168,600.

Will Social Security be there for you?

One of people’s greatest retirement fears is a reduction in or elimination of Social Security in the future, according to research from the Transamerica Center for Retirement Studies. Seven in 10 people are concerned that Social Security will not be there for them when they’re ready to retire. And nearly 1 in 3 people rely on or expect to rely primarily on Social Security.

I talked to several experts about the advice they’re giving their clients on planning for Social Security as part of their retirement income. Here’s what they said:

1. Assume a reduced benefit

DINARRECAPS8 5/16/24 DINARRECAPS8 5/16/24

7 Secret Perks of Having a High Credit Score

Adam Palasciano Wed, May 15,

In an economy highlighted by sky-high interest rates for auto and home loans, having a good credit score has probably never mattered more.

According to the Consumer Financial Protection Bureau, a credit score is a prediction of your credit behavior, such as how likely you are to pay a loan back on time, based on information from your credit reports.

If your credit score is lacking, you might want to consider ways to boost it as soon as you can. Why? Because having a high credit score comes with some sweet financial perks.

Best Perks of Having a High Credit Score

Here are seven secret perks of having a high credit score, according to RedRoofRipon and Equifax:

7 Secret Perks of Having a High Credit Score

Adam Palasciano Wed, May 15,

In an economy highlighted by sky-high interest rates for auto and home loans, having a good credit score has probably never mattered more.

If your credit score is lacking, you might want to consider ways to boost it as soon as you can. Why? Because having a high credit score comes with some sweet financial perks.

Best Perks of Having a High Credit Score

Here are seven secret perks of having a high credit score, according to RedRoofRipon and Equifax:

Access to lower interest rates: A high credit score will translate into favorable interest rates on auto loans and mortgages. If you’re in the market for a new car or to buy your first home, the status of your credit score is the first thing you’ll want to be concerned about. Even a difference of just 1% can save you thousands (if not tens of thousands) of dollars over the life of a sizable loan.

More favorable loan terms: A high credit score can also mean more favorable loan terms. These can be lower down payment requirements and extended repayment periods, depending on what your lender offers.

Higher credit limits: Since a higher credit score shows that you’re more likely to pay back your loans without an issue, some financial institutions and lenders will be glad to offer you higher credit limits. This can be for an auto loan or mortgage — or even a higher spending limit on your credit card.

More likely to be approved For rentals: Renting an apartment comes with certain financial approvals from the landlord. To guarantee you’ll be a responsible paying tenant for the duration of a lease, landlords will often run credit checks before you can sign. The higher your credit score, the more likely you’ll be approved to move in.

Loans can be approved faster: Sometimes, a higher credit score means you won’t have to wait very long for your loan or credit card application to be approved. Since a higher score is indicative of your ability to pay your bills on time and in full, there usually isn’t a need for the lender to take a closer look at your finances before approving.

DINARRECAPS8 5/15/24 DINARRECAPS8 5/15/24

5 Simple, Effective Ways To Set Yourself Up for a Financially Secure Future

Gabrielle Olya Tue, May 14, 2024

One of the easiest ways to set yourself up for a financially secure future is to contribute to your workplace retirement savings account — but many women are not doing this. In fact, only 52% of women participate in 401(k) plans, and the average 401(k) account balance for men ($89,000) is 50% greater than that of women ($59,000), according to Bank of America’s 2023 Financial Life Benefits Impact Report.

This means they may also be leaving free money on the table if their employers offer matching contributions. Given the unique financial challenges that women face — including the gender pay gap and a longer life expectancy resulting in a need for more retirement savings — we should be doing all we can to maximize retirement accounts to ensure we’re on track for a secure financial future.

In this “Financially Savvy Female” column, we’re chatting with Julie Virta, CFP, senior financial advisor for Vanguard’s Personal Advisor Services, about how women can set themselves up for a financially secure future.

5 Simple, Effective Ways To Set Yourself Up for a Financially Secure Future

Gabrielle Olya Tue, May 14, 2024

What are some ways women can maximize an employer-sponsored retirement account?

Vanguard research has shown us that savings rates, diversification, costs and the ability to remain disciplined and focused on long-term investment outlook are key factors that can give participants the best chance for success.

We recommend that participants build up to the recommended savings rate of 12-15% by first trying to meet their employer match (if applicable), and then increasing by 1% annually until they achieve the desired savings rate, which is a combination of employee and employer contributions.

For context, we found that annual automated savings rate increases result in participants saving 20-30% more after three years than employees without automatic increases. If an employer plan does not offer this, participants can consider increasing their savings rate annually on their own.

To note, when switching jobs, a rollover is an option to pursue, as they likely come with flexible investment choices and no tax consequences. We recommend marking your calendar as quickly as possible to see when you can start contributing to the new plan.

What should women do if they do not have access to an employer-sponsored account? How should they decide between traditional and Roth IRA?

In deciding between a Roth and traditional IRA, employees should factor in their current and anticipated tax brackets. When the marginal tax rate stays the same, the Roth and the traditional IRA will generate the same after-tax withdrawal values, even though Roth taxes are paid at the time of contribution (as contributions are made with after-tax dollars) and traditional IRA taxes are paid at the time of withdrawal.

DINARRECAPS8 5/15/24 DINARRECAPS8 5/15/24

5 Ways The Rockefellers Created Generational Wealth

The Rockefellers Are Still One of the Richest Families of All Time — 5 Ways They Created Generational Wealth

Dawn Allcot Sun, May 12, 2024

Only 10% of family wealth makes it to the third generation, according to a landmark Williams Group wealth consultancy study reported by Reuters in 2015. But a handful of families throughout history have managed to buck this “third generation curse” to create a legacy that has lasted for centuries. Among the best known are the Rockefellers.

How John D. Rockefeller Built His Wealth

John D. Rockefeller was one of the most famous business moguls of the 19th and early 20th centuries, building his family’s fortune through the Standard Oil Company. His company controlled 90% of the U.S. refineries and pipelines at a time when a need for oil was increasing thanks to the introduction of internal combustion engines and growing demands for electricity, according to History.

Rockefeller had amassed a net worth of nearly $900 million by 1912, according to Smithsonian Magazine. That’s equivalent to about $28 billion in today’s dollars and a staggering sum by 1912 standards.

5 Ways The Rockefellers Created Generational Wealth

The Rockefellers Are Still One of the Richest Families of All Time — 5 Ways They Created Generational Wealth

Dawn Allcot Sun, May 12, 2024

How John D. Rockefeller Built His Wealth

Ultimately, the Supreme Court ordered the dissolution of the Standard Oil Trust, declaring it in violation of antitrust laws. The move broke Standard Oil into a number of businesses that used the Standard Oil name. Subsequent mergers created oil and gas industry leaders like ExxonMobil and Chevron.

The Rockefeller family’s name and wealth live on — And so do its philanthropic efforts, including $500 million John Rockefeller personally gifted to charities.

The Rockefeller Family Today

The Rockefeller family is 200 members strong and has a cumulative net worth of $10.3 billion, according to Forbes. The wealthiest and most prominent family member of this century, David Rockefeller, was the world’s oldest billionaire at 101 years old, with a net worth of $3.3 billion when he died in 2017.

How the Rockefellers Created Generational Wealth

What did the Rockefeller family do right that so many other families fail to implement?

Accounted for Every Dollar

Whether your net worth measures in the seven figures or you’re living paycheck to paycheck, every dollar without a specific job is in danger of being wasted. The Rockefellers have a team of financial managers to ensure that every dollar is put to good use, leveraging their money to make more money.

Established a Family Office

The Rockefellers were the first family to establish a full-service single family office in the U.S., according to Deloitte. The Rockefeller Global Family Office manages all facets of the family’s wealth, investments and business dealings.

Created Irrevocable Trusts

The Rockefellers use irrevocable trusts, which heirs cannot easily change, to ensure that money gets passed on as it should, according to Barrons. An irrevocable trust removes assets from your taxable estate, which means your heirs might not pay tax on that money. An irrevocable trust can also protect those assets from lawsuits or creditors, which can provide a benefit if you are a high-profile personality or in a high-risk career where you might get sued.

Leveraged Legal Tax Avoidance Strategies

DINARRECAPS8 5/13/24 DINARRECAPS8 5/13/24

7 Unforeseen Financial Obligations You Take On When You Retire

John Csiszar Mon, May 13, 2024

Once you retire, you want your financial life to be as uneventful as possible. If you’re like most retirees, you’ll be living on a combination of investment income and Social Security benefits, and that income will be relatively fixed and predictable.

This means that unexpected financial obligations can cause serious distress, as it might be hard to find a way to pay for them without going into debt. To avoid falling into this situation, it’s best to plan ahead and build a bigger emergency fund before you retire so that none of these expenses send you into a financial tailspin.

General Healthcare Expenses

It’s a fact of life that at least statistically, healthcare expenses rise as you age. The problem in terms of budgeting for retirement is that there’s no way to know just how high those costs will go. For this reason, it’s best to head into retirement expecting these so-called “unexpected” healthcare costs and to budget on the high side if at all possible.

7 Unforeseen Financial Obligations You Take On When You Retire

John Csiszar Mon, May 13, 2024

General Healthcare Expenses

Elderly Parents

Even if you retire at 65, it’s entirely possible that your parents are still alive, and it’s also possible or even probable that they will need your assistance in some way. Oftentimes, this assistance comes in the form of financial aid. If you’re already struggling to live on your retirement budget, having to take care of your elderly parents might be enough to break the bank.

As you approach retirement, however, you’ll likely have a good idea of how much financial support you might have to provide for your elderly parents, and it’s important to incorporate this into your budget, if possible.

Long-Term Care

In addition to rising general healthcare expenses, many retirees will have to plan for long-term care. Research shows that up to 70% of adults 65 and older will need long-term care in their lifetimes, so it’s definitely an expense you should anticipate could arise after you retire. The national average median cost for long-term care ranges from $2,058 for adult day health care to $9,733 for a private room in a nursing home, according to Genworth.

Although it’s hard to budget for large expenses, knowing they are coming can help in the planning process. One of the avenues you might consider is getting long-term care insurance before you need it.

Adult Children

https://finance.yahoo.com/news/7-unforeseen-financial-obligations-retire-120029536.html