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Financial Advisors: Here’s How Market Volatility Impacts Investor Psychology

Market volatility is a stressful reality for any investor. But when market turbulence strikes, financial advisors are in a unique position to help their clients anticipate and manage their anxiety around money. All it takes is understanding a little psychology.

And while it’s true that stock markets have improved since the recession in 2008, surveys show that investors and financial advisors still expect volatility to return throughout the next few cycles.

In fact, according to the Eaton Vance Spring 2019 ATOMIX survey, financial advisors consider managing their clients’ relationship to volatility to be one of their major concerns this year.

So what is an advisor to do? To better understand how a client might react to a volatile trend, it might help to think about their deep-rooted feelings about money and how they view their personal control of events.

Research shows that the wealthiest investors — those who make up the richest “one percent” — have a different relationship to investments than the less wealthy: They have what’s known as a heightened internal locus of control.

For the most part, humans either think that they’re in charge of what happens in their life, or they believe that life happens to them (those who believe they’re in control of their life and its outcomes have an internal locus of control).

Having an internal locus of control is associated with higher wealth, and because these people are more likely to take responsibility for the outcomes in their life, the top one-percenters are also more likely to believe in their own abilities to solve problems and achieve goals, make better investment decisions and react more calmly when volatility strikes.

Having an external locus, however, is associated with self-destructive financial behaviors.

Financial advisors can help clients move to a more centered approach by asking thoughtful questions about past financial decisions, and can assist in determining where a client’s locus of control lies.

Dr. Brad T. Klontz, an associate professor of practice in financial psychology at Creighton University Heider College of Business and the cofounder of the Financial Psychology Institute, uses what he calls “money scripts” to help understand investor behavior.

Money scripts are unconscious beliefs about money, which are developed in childhood, and drive financial behaviors as adults. Klontz considers there to be four groups: money avoidance, money status, money worship and money vigilance — and the first three are associated with lower levels of net worth, lower income and higher amounts of revolving credit.

Klontz offers questions that you can ask to determine a client’s unique script makeup.

What’s also encouraging is that, while volatility can be stressful for any investor, recent research shows that volatility can indeed lead to increased adaptability. Yale researchers found that primate brains are more actively learning when a situation is unpredictable than when the situation is easier to predict. This suggests that our brains become more engaged when facing a high-risk-high-return situation, because this is when we absorb new information and adapt for future outcomes with preferred results.

Watch our video above to see how you can leverage your clients’ psychological background to inform and build an investment strategy to help meet their goals.

From iShares:

Championing investor progress has been at the heart of BlackRock iShares’ mission from the very beginning, relentlessly pursuing better ways to invest. That’s why iShares by BlackRock is bringing you Macro Mindset, a series that equips financial advisors with psychological knowledge to enlighten their clients about the myriad factors that come into play when in tricky investment situations. To learn more about why ETFs should be considered in building a strong strategy, visit iShares.com.

Important information about iShares ETFs:

Visit www.ishares.com to view a prospectus, which includes investment objectives, risks, fees, expenses and other information that you should read and consider carefully before investing. Investing involves risk, including possible loss of principal.

Investing involves risk, including possible loss of principal.

Diversification and asset allocation may not protect against market risk or loss of principal.

This information should not be relied upon as research, investment advice, or a recommendation regarding any products, strategies, or any security in particular. This material is strictly for illustrative, educational, or informational purposes and is subject to change.

The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).

Source: Financial Advisors: Here’s How Market Volatility Impacts Investor Psychology

131K subscribers
What is Volatility? -The magnitude of the change -It is independent of direction, it refers to the change of ups and downs Why is it Important? -The more volatile the market is, the crazier it gets -Trends are harder to spot when they are more volatile -Swing trading becomes riskier -It is better to stick to day trading during high volatility days or months because you want to lower your risk on those days What to do on High Volatility Days: -Inverse ETFs (e.g. BGZ, SKF, TZA, FAZ) -They are opposite of the market -They are more stable than one specific stock. -Can trade off of 15 minute or 5 minutes charts (day trading charts) #marketvolatility #tradingvolatiledays #volatiledays #understandmarket #stockmarket Posted at: https://tradersfly.com/blog/understan… 🔥 GET MY FREEBIES https://tradersfly.com/go/freebies/ 🎤 SUBMIT A VOICE QUESTION https://tradersfly.com/go/ask 👀 START HERE: FOR NEW TRADERS https://tradersfly.com/go/start/ 🎉 START HERE: OPTION TRADERS https://tradersfly.com/go/start-options/ 📈 MY CHARTING TOOLS + BROKERS https://tradersfly.com/go/tools/ 💻 MY COMPUTER EQUIPMENT https://backstageincome.com/go/comput… 💌 GET THE NEWSLETTER https://tradersfly.com/go/tube/ 🔒 SEE OUR MEMBERSHIP PLANS https://tradersfly.com/go/members/ 📺 STOCK TRADING COURSES https://tradersfly.com/go/courses/ 📚 STOCK TRADING BOOKS: https://tradersfly.com/go/books/ ⚽ GET PRIVATE COACHING https://tradersfly.com/go/coaching/ 🌐 WEBSITES: https://tradersfly.com https://rise2learn.com https://backstageincome.com https://mylittlenestegg.com https://sashaevdakov.com 💌 SOCIAL MEDIA: https://tradersfly.com/go/twitter/ https://tradersfly.com/go/facebook/ ⚡ SUBSCRIBE TO OUR YOUTUBE CHANNEL https://tradersfly.com/go/sub/ 💖 MY YOUTUBE CHANNELS: TradersFly: https://backstageincome.com/go/youtub… BackstageIncome: https://backstageincome.com/go/youtub… 📑 ABOUT TRADERSFLY TradersFly is a place where I enjoy sharing my knowledge and experience about the stock market, trading, and investing. Stock trading can be a brutal industry, especially if you are new. Watch my free educational training videos to avoid making big mistakes and just to continue to get better. Stock trading and investing is a long journey – it doesn’t happen overnight. If you are interested to share some insight or contribute to the community we’d love to have you subscribe and join us!

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How Your Small Business Can Maximize Profit & Minimize Loss With a Financial Plan

As one of the most essential aspects of a business proposal, the financial plan utilizes current financial data to project long-term profits and losses for your company. As a business owner, having a strong financial plan helps you identify potential issues and discrepancies while it’s still early enough to make changes. Having a good financial plan handy also improves your odds of securing funding from banks and other investors by showing you’ve done your due diligence.

Still, first-time entrepreneurs often struggle to create these all-important documents.

Below are five components every financial plan should have, along with suggestions for collecting the necessary data to plan your business’ future.

1. Income statements

Income statements reveal revenue, expenses and profits over a given period of time. Start by making a list of all the costs and expenses associated with running your business. This may include raw materials, suppliers, employee salaries and rent costs. Then record your revenue, which is the money you receive in exchange for providing goods and services. By subtracting your expenses from total revenue, you can determine whether your company can expect to make a profit or suffer a loss.

This information is crucial not only for planning purposes, but it can also help draw potential investors to your business.

While income statements for existing businesses convey data from the past one or two years, startups must instead forecast this information based on their research. When drafting your company’s first income statements, you may need to project profits and losses using information from similar businesses in the area. The goal is to determine if your company can support itself moving forward and make budgetary changes as needed.

2. Cash flow

Cash flow projections estimate the amount of money that will be entering and exiting the business on a regular basis. Determining net cash flow requires simply subtracting cash outflow from cash inflow, which reveals only those funds that are actually available at a given time.

Just as with your income statement projections, you’ll have to create a plan of how you expect your cash to flow based on rational observations, predictions and your own research. Again, while it seems frustrating, compiling a schedule of when cash comes in and out can give you (and investors) insight into how much cash you’ll actually have available to operate your business.

By keeping accurate cash flow statements as your business matures, you can identify problem areas before they grow too large to contain. For instance, if your projections suggest you need more immediate cash, you can try strategies to help bring it in, such as turning over inventory more quickly or reducing the length of your billing cycle. However you use it, a cash flow’s primary functions are to assess your company’s financial health and help you make business-development decisions moving forward.

Another thing to keep in mind: When calculating your cash flow projection, you won’t be able to use any revenue amounts from unpaid invoices. The reason? That revenue hasn’t been collected yet and thus isn’t available to go in or out. Yes, you may be able to declare the money from unpaid invoices in your revenue projections, but not as cash on hand.

3. Balance sheet

balance sheet provides a snapshot of a company’s assetsliabilities and equity at a given time. As its name implies, a balance is struck between a company’s assets, which equal its liability added to the value of its equity.

First, take time to list all assets, including accounts receivable, savings, inventory and equipment. Next, you should detail all liabilities, such as accounts payable, loan payments and credit card balances. Lastly, you can add up the company’s equity, which may take the form of owner equity, investor shares and earnings from stocks. When you’re finished, check to make sure that the total value of assets equals that of your liabilities plus your equity.

As you may expect, your balance sheet can have a significant effect on your business’ ability to secure the funding it needs to get off the ground. Learn more about how to create a detailed balance sheet to track your startup’s liabilities and equity.

4. Break-even analysis

It’s no secret that startups rarely turn a profit at the onset. If and when your business does cross the threshold from red to black, it will have crossed the break-even point. The break-even point occurs when the expenses of running your business equal the revenue from your products and services. To increase your odds of reaching that crucial turning point, take the time to create a break-even analysis as part of your financial plan.

Along with your company’s fixed and variable costs, the document should include projected prices and account for the value of inflation. Not only does a break-even analysis show potential investors that your company has the potential to succeed, but it also enables you to make better decisions regarding resource allocation. If your break-even point is too high, you may want to consider ways to reduce your cost of business. This might include shopping for new suppliers, increasing prices or even temporarily working out of your home.

5. Financing schedule

Most of us can’t launch a new business entirely on our own. Because loans are an unfortunate fact of life in the startup world, every business plan should include a loan summary and financing schedule. Take note of the types of loans incurred, including interest rates and expected terms as well as securities information. After all, potential lenders want to know that you have a solid plan to pay off existing debts before investing more money in your business venture.

If you’re thinking of starting your own business, then you’ve probably heard the bleak statistics. According to one report, as many as eight in 10 startups fail in the first 18 months. To give your business a fighting chance, you need to have a strong financial plan in place before you launch.

By: April Maguire

Source: How your small business can maximize profit & minimize loss with a financial plan

1.37K subscribers
In this video, Kelly discusses how to maximize profits in business in just three simple steps. By taking advantage of what resources you already have within your company, you can maximize profits and grow your business. Your company can figure out how to improve sales by analyzing what your business is doing so already…and what your business is not doing. By putting these steps into action, you can figure out how to attract customers and increase profits Ask yourself: • When was the last time you last raised profits within your business? Are you getting what you want? • Is your business selling the right kinds of stock including individual packages, group packages, etc. for your services? If not, these kinds of products would bring in money that your company is not seeing already. • Are you engaging with previous customers? If not, these customers are just as important to figure out how to attract customers to your business. Want a quick overview of topics? Check out the time stamps below: 00:49 – Charge what you’re worth to grow your business 1:42 – When was the last time you raised your rates? 2:08 – Consider having reoccurring revenue to maximize profits 2:40 – Fortune is in the follow up! Make it your business growth strategy Learn how to improve your outlook on money but also create more income within your business. Not only will you learn to improve your vision of money but rethink your ideas so you can create new ones. ======================================================== THANK YOU for taking the time to watch these videos!! If you like what you’re watching, comment below to start a conversation! =================================================== To learn more about our program that teaches you how to build and scale your business to create more freedom go to: http://www.KellyRoachCoaching.com/yes ======================================================== Visit the Kelly Roach Coaching online store for products and programs to help you grow your business! http://www.kellyroachcoaching.com/shop ======================================================== **Click Below to SUBSCRIBE for More Videos** https://www.youtube.com/channel/UCwyA… ======================================================== Kelly Roach Business Growth Strategist, Rapid Business Growth Coach, Author, Host of Unstoppable Success Radio http://www.KellyRoachCoaching.com ======================================================== Join the conversation: Facebook: http://www.facebook.com/kellyroachint… Twitter: http://www.twitter.com/kellyroachint YouTube: http://www.youtube.com/kellyroach ====================================================== To learn more about how to grow your business and how to increase sales, watch Kelly’s “How to improve your Money Mindset” video at https://youtu.be/1mo_Fvrgpw4

 

12 Things You Should Do To Save Money In October

1

In today’s world, it’s more important than ever to prepare for your financial future.

And one of the easiest ways to add to your nest-egg is to simply cut your biggest household expenses and save more of your hard earned money.

We often forget some of the golden rules to saving that our parents taught us. Here’s a quick list of things you can do to save on bills in 2019. No matter your circumstance, there’s something here that everyone can use like cutting down your mortgage bill and save on utilities.

1. Take Full Advantage Of These Tax Deductions

Owning a home can be very lucrative. Seriously, owning a home can not only give you a cheaper monthly payment than renting but in many cases, the tax benefits make the decision a no-brainer.

Here are a few of the larger deductions that you need to be sure to take:

Interest you pay on your mortgage: If you own a home and don’t have a mortgage greater than $750,000, you can deduct the interest you pay on the loan. This is one of the biggest benefits to owning a home versus renting–as you could get massive deductions at tax time. The limit used to be $1 million, but the Tax Cuts and Jobs Act of 2017 (TCJA) reduced the limit and made some clarifications on deducting interest from a home equity line of credit.

Property taxes: Another awesome benefit to owning a home is the ability to deduct your property taxes. Before TCJA, the rules were a little more flexible and you were able to deduct the entirety of your property taxes. Now things have a changed a bit. Under the new law, you can deduct up to $10,000. The deduction for state and local income taxes was combined with the deduction for state and local property taxes, too.

Tax incentives for energy-efficient upgrades: While most of the tax incentives for making energy-efficient upgrades to your home have gone away, there are still a couple worth noting. You can still claim tax deductions on solar energy–both for electric and water heating equipment, through 2021. The longer you wait, though, the less money you’ll get back. Here’s the percentage of equipment you can deduct, based on time of installation:

Between January 1, 2017, and December 31, 2019 – 30% of the expenditures are eligible for the credit
Between January 1, 2020, and December 31, 2020 – 26%
Between January 1, 2021, and December 31, 2012 – 22%

2. Use Government Rebates To Get Solar Panels And Slash Your Energy Bills

Warning: Do not pay your next energy bill until you read this…

This is the 1 simple truth your power company doesn’t want you to know. There is a new policy in 2019 that qualifies homeowners who live in specific zip codes to be eligible for $1,000’s of Government funding to install solar panels. Has your power company told you that? Of course not. They hope homeowners don’t learn about this brilliant way to reduce your energy bill tremendously!

When homeowners check whether they qualify many are shocked that subsidies and rebates can cover a lot of the costs associated with installation so it greatly reduces the amount you’ll have to pay. Many may qualify for $0 down! Soon, you could be on your way to significantly reducing your electric bill in a matter of weeks.

Smart homeowners are setting out to do their own research and determine whether this new program lives up to its reputations. Over and over again, many are reporting back on their findings, with the most exciting part being that they are now able to save $1,000s a year on their own energy bill.

Estimate Your New Power Bill >>

3. Install CFLs or LED Lights Where You Can

New lighting technology has really come a long ways. Now although they do cost more than traditional incandescent bulbs, CFL and LED bulbs can last for years without having to replace them. You don’t even need to replace every bulb in the house at once. Even swapping just your four or five most-used light bulbs can save you $45 or more a year!

CFL vs. LED

CFLs, which use a quarter of the energy of incandescent bulbs and last for years, are the next cheapest option after traditional bulbs. But they also have some drawbacks: They take a while to warm up to full brightness, and they also contain a small amount of mercury.

Meanwhile, LEDs are more expensive. However, they’re getting cheaper all the time, and they are easily the best lighting option available: They light up instantly, are efficient as CFLs, produce a warm glow without getting hot to the touch, and can last for decades.

4. Automate Your Thermostat

One of the easiest things you can do to instantly start saving money on your heating and cooling bills is to get an automated thermostat. These smart thermostats will learn when you are home and make sure the home is at a comfortable setting during those hours.

You may even be able to get a rebate from your utility provider for installing one of these in your home. It’s a win-win!

5. Make A Grocery List

You ever go to the grocery store when you’re hungry and find yourself checking out with way more than you intended? We call this “Hunger Shopping” and it’s quite dangerous to your wallet!

Before going to get groceries, make a list of groceries that you need for the upcoming week. That way, you only buy what you’re intending to use and the amount that will get thrown away from being expired is kept to a minimal.

6. Buy in Bulk

One of the easiest things you can do to instantly start saving money is to buy in bulk! Retailers often give a MUCH better deal on products such as paper towel, toilet paper, detergent, etc if you buy in bulk.

This might seem like an obvious one, but we often forget how much money we waste by not buying in bulk.

7. Want a Patio? Consider Concrete Over Pavers

Building a patio can add great value to your home, as well as creating enjoyable outdoor living space for you and your family. But patios can come at a great cost.

When we decided to add a patio to our home, we looked at the different surface options carefully. Although many landscapers would recommend pavers over concrete because of their durability over time, we decided that the cost savings was more important to us. We personally love the clean look of concrete as well.

Now one thing to remember with concrete is that it WILL crack eventually. But if you have a good concrete crew, it should be prepped right where the cracks are minimal. So we expect to see cracks, but are hopeful that it will be minimal.

8. No Life Insurance? You’ll Want To Use This Brilliant Life Insurance Trick

If you don’t have life insurance, you better read this.

It’s not something any of us like to think about or plan for. But when the worst happens, it’s essential to know your family and loved ones are covered financially. That’s why it’s essential to have a life insurance. A good life insurance policy can help cover the cost of a mortgage, childcare costs and safeguard your family from inheriting any debts you might have.

 

But the sad truth is, a shocking number of Americans do not have a life insurance policy and their family is at financial risk if the worst should happen.

There is a service that is now allowing users to get free life insurance quotes from some of the top insurance companies out there. People are shocked at how cheap an excellent policy is after requesting their free quotes. But the reality is, life insurance rates are at a 20-year low and thanks to new program policies you could qualify for a great new policy at an extremely affordable price.

To get your free quote today, click below and complete a few questions (about 60 seconds). Once you’re done, you will be presented with choices and rates you never thought possible (no login required). Enjoy your savings!

Get Your Free Quote Now >>

9. Give Your Air Conditioner Some Space

Just like we need to breathe, your air conditioner needs space where it’s getting air easily. Many AC units are surrounded by shrubs that can restrict the airflow it needs to run efficiently. Take a few minutes this weekend and do the following:

Trim up any bushes that are are touching the unit so there is at least 1 foot of clearance

Clean up the ground for any loose debris or leaves

If the outside of the unit has a lot of debris clogging it up, consider having a professional service and clean it out

10. New Auto Insurance Policy

Here’s what auto insurance companies don’t want you to know…and what thousands of consumers are quickly learning about their current auto insurance plan:

If you’re paying more than $63 per month for auto insurance, this auto insurance comparison tool can help you check to see if you’re overpaying in a few minutes. This is something every driver should be doing every 6 months or so to ensure that they are getting the best deal.

 

Insurance companies are always competing to win your business, but if you turn a blind eye and keep the same policy in place for a long period of time, your rates might have increased. By checking rates, drivers saved an average of $531 per year with a new policy.

So do yourself a favor and do a quick comparison by filling out a short form (about 4 minutes). This is a fast way you can start saving on your auto bills.

Compare Auto Insurance Rates >>

11. Veterans Get a Massive Discount at Lowes

All active military and veterans are entitled to get a 10% discount on all in-store purchases at Lowe’s.

To make it even better, Lowe’s extends this offer to their spouses! Need new tools? How about new appliances? How about a kitchen remodel? Lowe’s carries a variety of things, so take advantage of this incredible discount!

12. Born Before 1985? Get $3,000/year Taken Off Your Mortgage With The Government’s New “Enhanced Relief” Program

Banks Don’t Want Homeowners Knowing This

Still unknown to many is a brilliant Government Program called the Freddie Mac Enhanced Relief Refinance Program (FMERR) that could benefit millions of Americans and reduce their payments by as much as $3,000 per year! You could bet the banks aren’t too thrilled about losing all that profit and might secretly hope homeowners don’t find out before time runs out.

 

So while the banks happily wait for this program to end, the Government is making a final push and urging homeowners to take advantage. This program is currently active but could be shut down at any given time in 2019. But the good news is that once you’re in, you’re in. If lowering your payments, paying off your mortgage faster, and even taking some cash out would help you, it’s vital you act now and see if you could qualify for FMERR or a better rate in today’s marketplace.

Source: https://article.expense-cutter.com/save-big-this-year-with-these-useful-tips-fbvlm

334K subscribers
It’s not about how much money you earn. It’s what you do with the money that matters. In this video, I’m going to show you a business strategy on how to manage your money. I’m not gonna tell you what to invest in. That’s not my role. Here are the best ideas of what the best professionals do to manage their money. Learn more from Tom LIVE at the next Summit event: https://tfi.media/2UC21rg ———— I hope you got some helpful tips and new ideas from this video. To ensure you don’t miss all my FREE training videos all you have to do is sign up here with your email: http://bit.ly/TomFerry-VideoTraining Get a FREE copy of my new book: http://bit.ly/2Bblstw Download FREE Agent Scripts and Resources: http://bit.ly/2iDEjpJ Tom Ferry Coaching: http://bit.ly/2eP8UlA Tom Ferry Events: http://bit.ly/2gQBjbD Join Tom’s VIP List: http://bit.ly/2sMb73n ————- Connect with me on my other social channels: Website – http://TomFerry.com Facebook – http://facebook.com/TomFerry Twitter – http://twitter.com/TomFerry YouTube – http://youtube.com/CoachTomFerry Instagram – http://instagram.com/TomFerry Podcast – http://soundcloud.com/CoachTomFerry

 

Here’s Why This 44-Year-Old’s Happiness Grew After She Abandoned Early Retirement

When Lisa first learned about the financial independence, retire early (FIRE) movement she was stunned that so many people, often younger than her, could possibly save enough to retire. Reading the blogs and first-person stories invigorated her. She wanted to follow suit. It changed the way she and her husband spent money. They cut out restaurants, wore old clothes and avoided coffee shops, funneling all the extra cash into paying down debt and building retirement funds.

“It really did motivate us,” Lisa said.

But as someone who has worked in the pharmaceutical industry for a number of years, she never had a huge problem with her job. The more Lisa saved, though, the more she felt annoyed at going to work. The more she saved, the more she wanted to watch HGTV before bed. The more she saved, the more she couldn’t understand why she should walk around in a coat with holes in it simply to prove that she was good with money.

The whole effort “made me unhappy,” said Lisa, who asked to only use her first name since she’s still working full-time. That’s why, four years after starting her FIRE goal of retiring young, Lisa and her husband decided to abandon the ‘retire early’ portion of their savings plan. Instead, she’s decided to focus on financial independence, but also not worry if they want to eat out on a Friday night.

Today In: Money

There’s a fine line between frugality and feeling guilty over every dime that you spend in order to save a little bit more. Those that enter FIRE often ignore that line during the accumulation phase, saving as much as possible without regard to how it makes them feel today while sometimes sacrificing their health or well being. But it’s not a feat for everyone. For Lisa, this excessive frugality only became a hindrance to life.

It doesn’t mean she’s giving up saving. Or now, suddenly, going to rack up credit card debt. Instead, Lisa, who blogs about her experience at Mad Money Monster, is reevaluating her life again, figuring out what to keep and what to ignore when it comes to her financial independence (FI) strategy.

Abandoning Her Great Health Care Wasn’t An Option

As they saved, one factor that grew increasingly concerning was the health and welfare of her mom. “My mother depends on us for help for basic living expenses,” Lisa said. She expects to care for her mother as she grows older. While Lisa was making strides paying back debt under the FIRE plan, she had to spend $2,000 on her mother’s dental expenses.

Usually that cost comes out of pocket, and they expect to have to do the same with vision care and some other wellness needs.

This unknown complicated their financial picture. But also Lisa sees her mom’s situation, and then recognizes her luck with her current health care plan, which she describes as “really good.” The idea that she would walk away from that plan, simply so she could retire early – she’s about 60% of the way to her original FIRE mark – she now views as “selfish.” And she’s not comfortable with some of the other options out there for health care coverage, including the public markets or health shares.

“For me to walk away from that [healthcare] would be kind of dumb,” Lisa added.

Keeping A High Savings Rate

Despite rejecting the idea of early retirement at this point in her mid-40s, she’s made great strides in reshaping her financial situation.

When she learned about FIRE, her and her husband had just walked away from buying a large, expensive home that would have put them in a tricky financial predicament. They thought they needed the big house because that’s what people did after getting married. Instead of getting the house, she’s paid off her student loans, two cars and some credit card debt. The family has also invested in two single-family hoes, which they rent out, covering the mortgages.

At the peak of their saving they stashed away about 70% of their income. Now it’s closer to 50%. Still a strong level, but not with early retirement as the goal.

Lisa’s realization that there’s little desire to retire before traditional age has given her the freedom to build wealth for other purposes. She has the financial knowledge now and she’s using it to provide a large inheritance for her daughter one day.

“I want to build legacy wealth for my family,” she said. She has no problem staying at her job to grow that wealth.

But she’s also in a much more secure position, whenever her job does go away.

She’s Not Deprived Of Time

Often when people say they want to retire in their 30s or 40s they have dreams of traveling across the world, seeing new sights and meeting new people. That’s not the case for Lisa. “I’m so content with and entrenched in the adult family life,” she said.

She doesn’t demand much more travel than the summer vacation her family already goes on. Meanwhile, her husband, who works in the film industry, never wants to retire because he’s already found a job he would do even if he didn’t have to work.

“I feel like [we’re] not being deprived of time,” said Lisa.

And now that she has clarified her goals, it makes going into work much easier.

Follow me on LinkedIn. Check out my website.

I’ve written about personal finance for Fortune, MONEY, CNBC and many others. I also authored The Everything Guide to Investing in Cryptocurrencies.

Source: Here’s Why This 44-Year-Old’s Happiness Grew After She Abandoned Early Retirement

21.4M subscribers
‘Time poor’ is the catch-cry of our era, and yet end-of-life retirement means we have an average of two decades of feeling time rich to look forward to… when we’re old. In this talk, Lacey shares how combining financial independence and mini-retirements is one way to bring that time rich feeling into our youth.  Lacey Filipich started her entrepreneurial journey with a hair wrap stall at 10 years old. Today, she is the co-founder and director of two successful businesses; Money School and Maker Kids Club. Between hair wraps and start-ups, Lacey graduated as valedictorian from the The University of Queensland with an Honours degree in Chemical Engineering. She moved to Australia’s ‘wild west’ to begin her career in mining, rising quickly through the ranks. A health scare and her sister’s suicide opened Lacey’s eyes to the world beyond work, leading her to redesign her life and take five mini-retirements in the next five years. This was achievable because of Lacey’s financial position: she started investing at 19 and now earns a passive income. Lacey considers herself time rich: able to choose if, when, where, how, on what and with whom she works. Her story is one of many in the Financially Independent Retiring Early (FIRE) movement supporting the idea that end-of-life retirement is optional. This talk was given at a TEDx event using the TED conference format but independently organized by a local community. Learn more at https://www.ted.com/tedx

Free Money for Everyone Sounds Great, But Finland Proves Basic Income is a Bust

Universal basic income experiments and other plans that seek to distribute free money seem wonderful considering so many people struggle to make ends meet because of their limited incomes. In the U.S., many legislators have called for federal and or/state governments to trial these economic policies. One recent proposal actually calls for people to receive money from the government even if they are unwilling to work……….

Source: Free Money for Everyone Sounds Great, But Finland Proves Basic Income is a Bust

South Korean financial watchdog sticks to the decision of banning ICO

A new update has emerged from the South Korean financial authority, the Financial Services Commission (FSC). The financial regulatory decided to maintain the ban enforced towards ICOs, based on the findings of the Financial Supervisory Service (FSS). Started September last year, the FSS conducted a survey to 22 enterprises in the country that had launched ICOs, on which they only received feedbacks from 13 of them………..

Source: South Korean financial watchdog sticks to the decision of banning ICO

IRS Announces 2019 Tax Rates, Standard Deduction Amounts And More – Kelly Phillips Erb

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The Internal Revenue Service (IRS) has announced the annual inflation adjustments for more than 60 tax provisions for the year 2019, including tax rate schedules, tax tables and cost-of-living adjustments. These are the numbers for the tax year 2019 beginning January 1, 2019. They are not the numbers and tables that you’ll use to prepare your 2018 tax returns in 2019 (you’ll find them here). These are the numbers that you’ll use to prepare your 2019 tax returns in 2020.If you aren’t expecting any significant changes in 2019, you can use the updated numbers to estimate your liability. If you plan to make more money or change your circumstances (i.e., get married, start a business, have a baby), consider adjusting your withholding or tweaking your estimated tax payments………….

Read more: https://www.forbes.com/sites/kellyphillipserb/2018/11/15/irs-announces-2019-tax-rates-standard-deduction-amounts-and-more/#c14542820814

 

 

 

 

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New Documentary To Show How Far People Go For Financial Independence – Tom Anderson

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Scott Rieckens has the zeal of a convert. The 35-year-old first heard about the FIRE (financial independence, retire early) movement in February 2017. Now he is finishing a documentary, Playing With FIRE, which follows his frugal journey from beachy Coronado, Calif., to affordable Bend, Ore., with his wife, Taylor, and their 2-year-old daughter. Along the way, Rieckens, a former creative director and partner in a video production company, sought the advice of other extreme savers who have left their day jobs in their 30s or 40s to spend the rest of their lives pursuing exciting work and leisure…..

Read more: https://www.forbes.com/sites/tomanderson/2018/10/17/playing-with-fire-scott-rieckens/#41a78e6d7edc

 

 

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Cryptocurrency TOP Secrets – Learn How To Buy & Sell on The Explosive Cryptocurrency Markets

When it comes to investing in cryptocurrencies, there are some things that don’t get discussed nearly enough. These things can either help grow and scale your cryptocurrency portfolio, or they could lead you to financial ruin and frustration. Due to the huge amount of content that is posted about cryptocurrencies on a daily basis, it can be hard of the best of times to hone in on the most important developments and cut through the noise…….

Read more: https://e-moneybook.com/crypto-secrets/

How This Teacher Left The Classroom And Built A Million Dollar Education Business – Robyn D. Shulman

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Did you know that nearly one out of five public school teachers hold down a second job during the school year? According to EdWeek, half of teachers with second jobs currently work in a role outside of education, and 5% of teachers take on a second teaching or tutoring job outside of their school districts. Some teachers work 60 hours a week, and then take on second gigs. Across the country, teachers are renting out their homes across the country. In fact, according to a new study from Airbnb, one in 10 Airbnb hosts, or approximately 45,000 people who use the service are teachers……

Read more: https://www.forbes.com/sites/robynshulman/2018/09/19/how-this-teacher-left-the-classroom-and-built-a-million-dollar-education-business/#30afc8212d8c

 

 

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