I Just Received A $10M Inheritance What Should I Do?

I Just Received A $10M Inheritance  What Should I Do?

Christy Bieber  Sun, August 18, 2024  Moneywise

I'm 31, single and just received a $10M inheritance from a parent I didn't know I had — what should I do?

A caller to "The Ramsey Show" experienced a shocking twist when his mom showed up on his doorstep to tell him the two of them had just inherited a fortune — but the news also delivered a major curveball.

"A family friend who she’s known for a long time passed away," the caller told co-hosts George Kamel and John Delony. "This individual left my mother and myself in his will, and according to the lawyer who's handling the estate, it’s worth between $10 million and $14 million."

That sounds like a good thing, but there was more to come. As the caller explained: "In the will, he’s designated me as his son. I’ve never met this man, never met him before in my life."

Talk about a life-changing moment. Not only does the caller have some emotional issues to deal with, he also has to figure out what to do with his share of sudden wealth.

Understanding The Details

Receiving a multimillion-dollar inheritance can be overwhelming to anyone, especially when it's unexpected. The first key thing to do is to understand the details of what this means for your finances.

In this particular situation, the caller explained he wouldn't just be handed the money.

"We won’t necessarily be able to collect the liquid cash," he said. Instead, the money is being kept in a trust and will be doled out over time. "Me and my mom are splitting the dividends, the interest, and whatever income that trust brings in.”

The caller says the trustee, who was the deceased man's lawyer, estimates the average income would be $500,000 a year.

Obviously, this is a complicated way of receiving an inheritance, so the first thing The Ramsey Show co-hosts recommended was talking to a lawyer.

https://www.yahoo.com/finance/news/im-31-single-just-received-113500654.html

4 Things You Don’t Know About Your Money

I’m a Financial Expert: 4 Things You Don’t Know About Your Money

Laura Beck   Fri, August 16, 2024   GOBankingRates

You might think you’ve got a handle on your finances, but there’s probably a thing or two you don’t understand.

GOBankingRates spoke with financial experts to uncover some surprising truths about money that many people overlook. Carlos Rodriguez, director of financial planning at Edelman Financial Engines, pointed to EFE’s 2023 Everyday Wealth in America report, which indicated that 46% of Americans cite personal finances as their top source of stress. That emphasizes the importance of effective financial management for overall well-being.

From investment strategies to the power of small savings, these insights could change the way you think about your hard-earned cash. Here are four things you (probably) don’t know about your money.

Earning passive income doesn't need to be difficult. You can start this week.

Being Too Conservative Can Cost You Big Time

If you’re the type to keep your money tucked safely away in a savings account, you might want to reconsider.

Robert R. Johnson, Ph.D., CFA, professor of finance at Creighton University’s Heider College of Business, has some eye-opening data to share.

“Being conservative with investments over time is extremely costly,” he said. “From 1926 through 2023, government bonds earned an average return of 5.1%. One dollar invested in government bonds at the beginning of 1926 would have grown to $133 by the end of 2023.”

Sounds pretty good, right? Well, hold onto your hats. Johnson continued, “Over that same time period, large stocks (think S&P 500) earned 10.1% compounded annually. That same dollar invested in an index of large cap stocks would have grown to $14,568 by the end of 2023.”

That’s not a typo, folks. We’re talking about a difference of over $14,000 from a single dollar. As Johnson put it, “A 5% annual difference in returns results in an astronomical difference in terminal wealth.”

You Can’t Save Your Way to Wealth – You Need To Invest

If you think squirreling away money in a savings account is your ticket to wealth, think again. Johnson busts this common myth wide open.

“One of the biggest money myths is that you can save your way to wealth,” he said. “The wealthy save and invest. The middle class, too often, simply save. Unfortunately, it isn’t enough that people simply save. That is a necessary condition for building wealth, but not a sufficient condition for wealth accumulation.”

To Read More:  https://www.yahoo.com/finance/news/m-financial-expert-4-things-170009313.html

Ramit Sethi’s Most ‘Brutally Honest’ Money Advice That Can Impact Your Wallet

Ramit Sethi’s Most ‘Brutally Honest’ Money Advice That Can Impact Your Wallet

Peter Burns  Wed, Aug 14, 2024,  GOBankingRates

When it comes to the topic of money management, suggestions can get complicated quickly. Sometimes, the best financial advice is blunt and straightforward, even if it is a bit uncomfortable to hear.

In a recent video, Ramit Sethi, personal finance expert and New York Times bestselling author of “I Will Teach You To Be Rich,” got frank and gave direct lessons that can help you improve your finances.

Earning passive income doesn't need to be difficult. You can start this week.

You’re Not Unique

It’s true that no two people are the same. However, when it comes to personal finance, people have a lot in common. By following basic guidelines, most people can improve their financial situation regardless of how much they make and how much debt they have.

It’s Not About Your Morning Routine

Social media has brought an onslaught of creators explaining exactly what you must do in the morning to make yourself rich. While getting the most out of your morning is important, what you do won’t amount to more savings. The most important thing is to be intentional with your time and figure out what works best for you.

Don’t Blame Inflation

Inflation has become a common scapegoat for individuals with poor financial habits. Rather than blaming inflation, take accountability for your actions. Start keeping a budget and tracking your spending to make a real difference. Then, invest the money you save from cutting your expenses to counter inflation.

Don’t Try To Time the Market

People new to investing will try to execute the age-old adage: buy low, sell high. The advice is correct if you’re trying to profit, but predicting when low and high occur can amount to substantial losses. Sethi said you should ride out market fluctuations by keeping your money in the market long term. Instead of waiting for the market to dip down so you can buy shares, you should invest a bit of your income each month.

Focus on the Right Things

People often focus on the wrong things when they try to get their finances in order. These include things like getting the right finance app, buying the cheaper drink at a restaurant and deciding which budgeting category to put expenses in. While these decisions can help, prioritizing the bigger picture is more important. Focus on being consistent and following the right financial rules to succeed.

You Probably Can’t Afford It

To Read More: https://finance.yahoo.com/news/ramit-sethi-most-brutally-honest-150021157.html

4 Shrewd Ways to Protect Your Wealth

4 Shrewd Ways to Protect Your Wealth

By Marina Benitez   August 1, 2024  GoBankingRates

Keep your money where it belongs — secure and working for you.

Wealth isn’t about how much money you make, but how much you keep. Whether you’re just starting out or have already built a comfortable nest egg, protecting your wealth can feel like a never-ending game of whack-a-mole. From market fluctuations to unexpected expenses, there’s always something trying to chip away at your hard-earned money.

But don’t worry; we’ve got some clever and easy-to-implement strategies to keep your money right where it belongs — secure and working for you.

1. Protect Your Portfolio With Precious Metals

If the past few years have shown us anything, it’s that disruptions to the market can come out of nowhere. Between the pandemic, supply-chain issues and bear markets, a lot of people’s retirement savings felt the impact. 

That’s why it can be a smart idea to look for ways to protect your retirement savings from the unpredictable. For a lot of people, investing in precious metals is a way to diversify and protect their investments.

One way to do this is with a precious metals IRA through a company like American Hartford Gold. Precious metals often outperform other investments in a volatile market, and their value tends to rise with inflation, making them an effective hedge during uncertain economic times.

Opening a gold or silver IRA is easy, and you can roll over funds from existing retirement accounts. Or you can buy gold and silver directly from American Hartford Gold’s collection.

Worried you may need to sell your precious metals in the future? American Hartford Gold offers buyback commitment and will purchase your assets back from you at the highest price. Plus, American Hartford Gold has an A+ rating with the Better Business Bureau.

Want to diversify and safeguard your investments by adding gold and silver to your portfolio? It’s easy to get started here and get your free guide. 

2. Get Matched With A Financial Advisor for Free

If you’re not already wealthy, getting a financial advisor probably sounds expensive and out of reach. That’s why we like a company called Unbiased. They’ll match you with a financial advisor in your area — for free.

https://www.gobankingrates.com/shrewd-ways-to-protect-your-wealth-2410428/?costid=863&utm_source=yahoo.com&utm_campaign=1281154&utm_term=media_link&pub_inventory=v1&utm_content=5&utm_medium=rss

6 Mistakes People Make at the Bank During a Recession

I’m a Banking Expert: 6 Mistakes People Make at the Bank During a Recession

J. Arky  Tue, August 13, 2024   GOBankingRates

Economic ups and downs still have lots of people worried about a potential recession. During times of downturn, many people become hyper-focused on the markets, jobs and their own personal finances tied up in banks.

While there might be some desire to move money around or take it out of financial institutions altogether, that could actually end up doing more harm than good on both a macro and micro level.

GOBankingRates reached out to banking experts to understand the six mistakes that people make at the bank during a recession. Here is what we found out below, and you can also check out why a recession is worse for your wallet than inflation.

Failing To Review Your Financial Goals

Just because there is a recession does not mean you don’t have financial goals, nor any way of working on achieving them. Do not lose sight of your future when it comes to your money.

“One of the most common yet frequently overlooked mistakes during a recession is not re-evaluating your financial goals,” said Adam Garcia, founder of The Stock Dork. “Most people will carry on saving, spending as well as investing just like they were used to before the economy went down.”

He continued, “However, it is better to be cautious in times like these. Review your financial plan by focusing on liquidity and debt reduction rather than aggressive growth or luxury purchases if possible. This should ensure you are grounded and do not go through tough times when sources of income become unpredictable.”

Not Having a Safety Net for Your Account

Running your account into the red can be dangerous, particularly during a recession.

“Overdrafting an account might seem like a small error, but during a recession it can have severe consequences,” Garcia explained. “If you overdraw often enough, those fees add up quickly and may hurt your credit score thus making it hard for you to get loans or credit cards when they would be most useful to you.

“To avoid this scenario, consider putting aside a small emergency cushion in checking or linking it to a savings account for automatic transfer purposes. In case of overdrawing, call your bank immediately so that you could tell them what landed you in such a position. Many banks offer courtesy fee waivers if it’s a rare occurrence or due to an exceptional circumstance,” suggested Garcia.

Failing To Recognize Interest Rate Changes

During times of economic turmoil, interest rates can change. If you have a loan or credit card connected to your bank, not taking note of these fluctuations can put you in dire financial straits.

“Central banks usually adjust interest rates during recessions leading to fluctuations that affect savings and loan repayments directly. Therefore, one of the mistakes that people make is not paying attention to these changes,” Garcia said.

“If interest rates drop, it might be an excellent opportunity to refinance high-interest loans or mortgages,” he added. “Conversely, if you notice interest rates rising, you should consider locking in lower rates for savings accounts or certificates of deposit (CDs). Taking the initiative regarding interest rates can save you a lot in the long run.”

Stopping Automatic Payments

Money tends to become tight during a recession, but nevertheless, there are bills to pay. If you have automatic payments turned off, consider turning them back on again.

To Read More:  https://www.yahoo.com/finance/news/m-banking-expert-6-mistakes-143116946.html

How Much Cash Should I Have On Hand?

How Much Cash Should I Have On Hand?  It Might Be Less Than You Think

Ivana Pino ·Senior Writer  Tue, August 13,  Yahoo Personal Finance

According to an analysis by Capital One, 47.8% of American adults make no cash purchases in a typical week. And in the U.S., an estimated 87.4% of all transactions are cashless.

With card and digital payments emerging as the primary payment methods for most consumers, you might wonder how much cash you should keep in your wallet — if any at all.

Here’s a look at the benefits and drawbacks of carrying cash, and how to go about deciding how much you should keep on hand.

How Much Cash Should I Have On Hand?

Cash may no longer be king, but it’s not obsolete by any means. There are instances when paying in cash might be more beneficial than using a debit card, credit card, or digital wallet. For instance, many small businesses prefer cash and may even offer a small discount because it saves them the fees associated with credit card transactions.

Experts say it’s common for most Americans to carry $20 or $30 in cash. Ultimately, however, the amount of cash you should have on hand depends on your unique financial situation.

When determining the right amount to carry in your wallet, consider how often you use cash and for what types of expenses. Do you prefer to save up cash for big-ticket purchases, or do you mainly rely on cash for smaller transactions such as tipping?

Either way, it’s best to minimize the amount of cash you keep on hand. For one, cash isn’t insured against loss unless it's deposited in a bank, making it vulnerable to damage, loss, or theft. Plus, physical cash doesn’t have the opportunity to earn interest or grow in value. And over time, inflation reduces the purchasing power of cash.

That said, you do want to ensure your spending money and emergency savings are “liquid.” For money that you expect to need in the near future, consider depositing it in a federally insured bank account, such as a checking account or high-yield savings account. This allows you to generate interest, which helps protect your purchasing power and increase your wealth over time, while also maintaining easy access to the funds.

Pros And Cons Of Carrying Cash

Having some cash in your wallet can be helpful when you find yourself in a situation where a merchant or retailer doesn’t accept cards or digital payments. But there are definitely downsides to carrying cash too.

Here are some of the major pros and cons of cash to consider when evaluating how much you should keep on hand.

To Read More:  https://www.yahoo.com/finance/personal-finance/how-much-cash-should-i-have-on-hand-164855098.html

5 Steps I Now Take To Protect My Money

5 Steps I Now Take To Protect My Money

I Recovered Financially From Identity Theft: 5 Steps I Now Take To Protect My Money

Cynthia Measom  Mon, Aug 12, 2024  GOBankingRates

When Marissa was a single woman in her 40s, she was going through some medical challenges that required several surgeries and treatments.

“Between procedures, consultations and follow-ups, I found myself writing checks more often, mainly to hospital billing departments, specialist offices and pharmacies,” she explained. “I had trusted that my financial transactions were secure and stayed focused on my recovery, wanting to get back to a normal life.”

Little did she know that she was about to experience a new challenge: a stolen identity.

How the Identity Theft Happened

Marissa said that she was glancing through her bank statements — something she had been putting off for a couple of months — and noticed a check that didn’t look familiar. It was written at a retail store in a state she had never even visited.

“I had so many medical payments going out, and my mind was often scattered with everything going on, but this stood out like a red flag, because I had only written checks connected to my medical expenses,” Marissa said. “I panicked and began combing through my statements, checking every line, every check and every payment. I found out checks in my name were being written all over the country — some at retail stores, others at restaurants, even a few at high-end boutiques.”

That’s when she realized her worst fears: her identity had been stolen.

“I immediately contacted my bank, and they confirmed it,” Marissa said. “Someone had somehow gained access to my checking account and was forging checks they had created in my name with my account number. I thought I had always been cautious and careful with my information, but it hadn’t been enough.”

After reporting the theft to the authorities and closing her compromised accounts, Marissa  began to piece together what might have happened. She concluded it had to be from the checks she had written in connection with her medical bills.

Later, the person responsible was arrested by authorities, and it was determined it was an employee of the hospital billing department where Marissa had received treatment.

How Marissa Protects Her Money Now

After her identity was stolen, here are the steps Marissa has taken to help protect her money.

To Read More:  https://finance.yahoo.com/news/recovered-financially-identity-theft-5-160005704.html

My Estranged Sister Wants To Borrow Money From Me

My Estranged Sister Wants To Borrow Money From Me — But I Don’t Feel Comfortable With That. What Should I Do?

Christy Bieber   Sun, August 11, 2024 Moneywise

Estrangement among family members is hardly uncommon — and money matters can often make the situation worse.

According to research cited by the American Psychology Association (APA), 27% of Americans over age 18 are currently estranged from a relative. Of that cohort, 10% reported an active estranged from a parent or sibling.

Coping with these consequences can be difficult under the best of circumstances. But what happens when your estranged relative — for example, a sister who is in dire financial straits — reaches out and asks you for help? An already tense situation can become even messier.

If you find yourself in a similar situation, there are a few things to consider before giving a response.

Put your financial security first

While offering financial help to an estranged relative may mend the rift, the more likely outcome could just spell more trouble.

In fact, a LendingTree study of more than 1,000 American adults found that nearly a third of respondents who lent or borrowed money from a family member reported negative consequences.

If you aren't close with your sibling, as an example, this rift in your relationship will likely only increase the odds that they won't live up to their end of the deal. You could find yourself losing money in the long run or encounter damaged credit if you co-sign for them.

In fact, more than a third of the lenders in the study have not been paid back, with 24% regretting their decision to loan money to their relative or friend.

Unless you're in a healthy financial position and have a genuine desire to provide a gift outright with no expectation of payback, avoid entangling your finances with an estranged relation.

Even if you do decide a gift is the right move, you may want to consider the reasons for their monetary request and whether you'll end up resentful about the interaction at a later date.

If they have a tendency to mismanage their money and are likely to be struggling financially again within a short amount of time, you’re likely going to be feeling worse about the situation than if the estranged relative had experienced an unexpected income loss, for example.

Because the stakes are high, proceed with caution when making your decision.

Offering to help in other ways

https://finance.yahoo.com/news/estranged-sister-wants-borrow-money-110900300.html

4 Reasons You Should Withdraw Your Savings Right Now

I’m a Bank Teller: 4 Reasons You Should Withdraw Your Savings Right Now

July 25, 2024 by  Angela Mae GoBankingRates

Roughly 95% of Americans have either a checking or savings account, according to the Federal Deposit Insurance Corporation (FDIC). For many people, a savings account is a great place to keep extra money for a major life event, like a wedding or home purchase, or emergencies.

Savings accounts are generally FDIC-insured up to $250,000, meaning your money is protected against bank failure. The funds are also still accessible but separate enough from your checking account to where you’re less likely to use them for everyday expenses.

Still, as useful as savings accounts can be, there is a right time to withdraw the funds. If you’re thinking about withdrawing the money from your savings account, here’s when you should do it — and when you shouldn’t.

You Need Extra Cash To Cover Something Planned

“Typically, the biggest reasons people withdraw their savings are to cover a bill, to make a purchase, home repairs, for vacations or for birthdays and holidays such as Christmas,” said Arielle Torres, an assistant branch manager at Addition Financial Credit Union.

These are all sound reasons to withdraw the funds.

Say you’ve been saving up for a down payment and are ready to close on your new home — that’s a good time to draw from your savings. Upcoming trips and major home repairs, ideally those that are planned out, are also valid reasons.

You might also want to withdraw from your savings account to cover debts, especially high-interest ones that are draining your monthly cash flow. If possible, wait until you have an emergency fund. Then, once you have the funds available, pull from your savings to pay off that debt

You’re Dealing With an Emergency

One of the clearest signs that you should withdraw from your savings account is in the event of unavoidable emergencies, said Torres. Common emergencies include surprise medical bills, a broken down car, necessary home repairs and layoffs at work — basically, anything that wasn’t planned and can’t be covered with your regular income or budget.

Ideally, you’ll have a separate emergency fund for this and won’t have to touch your regular savings account. But if you don’t and you need the money, your savings account is a good alternative. It’s also a better option by far than having to turn to high-interest credit cards or loans to cover the emergency expense.

To Read More:

https://www.gobankingrates.com/saving-money/savings-advice/im-a-bank-teller-reasons-you-should-withdraw-your-savings-right-now/?utm_term=related_link_3&utm_campaign=1280587&utm_source=yahoo.com&utm_content=4&utm_medium=rss

US Families Are 'Woefully Under Prepared' For The Great Wealth Transfer

US Families Are 'Woefully Under Prepared' For The Great Wealth Transfer

Maya Benjamin   Sun, August 11, 2024  Yahoo Finance

The greatest intergenerational wealth transfer in history is underway, and people are unprepared, according to Michael Pelzar, head of investments at Bank of America Private Bank.

"Nearly half of wealthy families don’t have the most basic elements of estate planning in place,” Pelzar said. “What that means is that families are woefully underprepared for that wealth transfer that’ll be taking place.”

Baby boomers alone are projected to pass down over $68 trillion over the coming years. However, Pelzar explained that nearly half of wealthy families do not have the necessary preparations in place, such as a will, power of attorney, or healthcare proxy, to allow for easy inheritance.

“When problems arise with wealth transferring from one generation to the next, it’s when communications have broken down or have not taken place," Pelzar said. "People aren’t educated on the value of trust and their benefits."

Older Americans Set To Pass Along Trillions In Assets Chart:   LINK

Christina Lecholop, a certified financial planner at CAPTRUST, attributed this lack of action on estate planning to the "expanding and complex" investment universe, a shift in the definition of retirement, a changing understanding of careers, and the geopolitical climate.

"People tend to delay because of uncertainty," Lecholop said. "There's a lot of headlines. There's a lot of noise that can tell people not to take action when I think that they should. And while that's all a very real consideration to pay attention to, it's important to also get started, and when people hold on, they miss out on the opportunities."

Lecholop emphasized the benefits of working with a professional to help understand finances and establish goals and priorities that help dictate investment decisions.

To Read More:   https://www.yahoo.com/finance/news/us-families-are-woefully-underprepared-for-the-great-wealth-transfer-154037080.htm

Dave Ramsey’s Top 26 Tips That Will Save You From Financial Disaster

Dave Ramsey’s Top 26 Tips That Will Save You From Financial Disaster

Gabrielle Olya  Thu, Aug 8, 2024

When it comes to personal finance, money expert Dave Ramsey is known for having your financial health in mind.

Whether you’re buying your first car or want to start saving for retirement, following Ramsey’s strategic tips can empower you to kick bad money habits to the curb and develop the necessary skills to comfortably reach your goals.

Put yourself on the right track for financial success with his 26 best money tips:

1. Gain Control of Your Money

If you’re unsure how to start fixing your financial situation, Ramsey recommends taking control of your money.

Gaining control of your money starts by making a financial plan. Ask yourself what you want for your finances and how your money can take you where you need to go.

2. Set a Budget and Give Every Dollar a Name

A big part of gaining control over your money is creating and sticking to a budget, which Ramsey highly recommends. Those who have a monthly budget can control their money and reach their financial goals, whether that means paying off debt, buying a home or investing for retirement.

Before each month begins, Ramsey said you need to give every dollar a name. These names may include buying groceries, making a mortgage or rent payment or contributing to your emergency fund, just to name a few. Every dollar in your budget should have an assignment as this is a big part of effectively managing your money.

3. Save $1,000 in a Starter Emergency Fund

The first of Ramsey’s 7 Baby Steps is to save $1,000 for your starter emergency fund.

Typically, emergency funds are advised to have between three to six months’ worth of expenses. However, Ramsey recommends getting started with this smaller buffer fund to help cover any unforeseen expenses that may come with everyday life.

Having a starter emergency fund gives you peace of mind in knowing you have enough money to pay for these emergencies and will not need to resort to going into debt to cover costs.

4. Use the Debt Snowball Method To Pay Off Debt

Step two in Ramsey’s 7 Baby Steps is to pay off all of your debt. You can get a jump on eliminating debt using Ramsey’s debt snowball method.

How the debt snowball works is you start by paying off debt with the smallest balance. Once this piece of debt has been repaid, you work your way up, or snowball, to repay debt with the biggest balances. Debt snowball comes with plenty of psychological wins, like gaining confidence that your quick wins will allow you to confront your worst debts and pay them off in full.

5. Work a Side Hustle

Even if you carefully budget and work a good full-time job, you might find you need a way to earn extra money to reach your financial goals.

Ramsey recommends working a side gig to earn extra cash and fulfill goals like paying off debt or building your starter emergency fund. You might decide to drive rideshares, sell gently used items on platforms like Facebook Marketplace, or offer tutoring services.

6. Do Not Invest Until Your Debt Is Paid Off

This tip is often considered a bit controversial, but it is one that Ramsey firmly stands by.

To Read More:

https://finance.yahoo.com/news/dave-ramsey-top-26-tips-150051659.html