Financially Changed

What's A Recession Anyway?

Mon, 17 Mar 2025 11:20:00 GMT

So You Can Explain It To Your Kids

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Your Old Retirement Plan Called & Wants To Come Home

Sun, 02 Mar 2025 12:05:12 GMT

What Are The Options Available For Your Old Plan?

Retirement planning is all about preparing for the future, but what happens when your old retirement plan from a previous employer is left hanging in the past? If you've changed jobs, you may still have an old 401(k) or another retirement account sitting with your former employer. While it might seem harmless to leave it as is, making the right move can impact your long-term financial health.
So, what are your options? Let’s explore the four smart choices you have when dealing with an old retirement plan.
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1. Leave It Where It Is (If Possible)
The easiest and most hassle-free option is to leave your retirement savings where they are. In many cases, your former employer will allow you to keep your funds in their plan, provided you meet their minimum balance requirement (often around $5,000).
Why Leave Your 401(k) With Your Old Employer?
✅ Lower Fees – Some employer-sponsored plans have lower fees compared to individual retirement accounts (IRAs).
✅ Good Investment Options – If your former employer offers solid investment options with low fees, it might make sense to stay.
✅ Creditor Protection – 401(k) plans offer stronger protection from creditors than IRAs in many states.
Potential Downsides of Leaving It
❌ Limited Investment Choices – Many workplace plans have fewer investment options compared to an IRA.
❌ Difficulty Managing Multiple Accounts – If you change jobs frequently, managing multiple retirement accounts can become a hassle.
❌ Risk of Forgetting About It – The further removed you are from your old job, the easier it is to forget about your account.
Best for:
•    Those who are happy with their current plan’s investment options and fees.
•    Individuals who want the strongest creditor protection.
•    Those who don’t mind managing multiple accounts.
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2. Transfer to Your New Employer’s Plan (If Available)
If your new employer offers a 401(k) or similar retirement plan, rolling over your old account into your new one might be a great option.
Why Transfer Your 401(k) to a New Employer?
✅ Simplification – Consolidating accounts means fewer statements, easier tracking, and better overall management.
✅ Continued Tax Benefits – Your money stays in a tax-advantaged retirement account, avoiding penalties and taxes.
✅ Potential for Employer Match – Some employers allow you to roll in your old 401(k) balance, which might help with company match contributions (though not always).
Potential Downsides of Transferring
❌ Not All Employers Allow It – Some companies do not accept rollovers into their plans.
❌ May Have Higher Fees – Your new employer’s plan may have higher administrative or investment fees.
❌ Investment Limitations – Similar to keeping your old account, your new employer’s plan might not have the best investment choices.
Best for:
•    Those who want to simplify their retirement savings.
•    Individuals whose new employer offers strong investment options with low fees.
•    People who want to keep all their retirement savings in one place.
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3. Cash It Out (Not Recommended for Most People)
You always have the option to cash out your old 401(k), but this is usually the worst choice. Withdrawing your retirement funds early comes with major financial consequences.
Why Cashing Out Is Risky
❌ Taxes and Penalties – If you’re under 59½, you’ll pay a 10% early withdrawal penalty, plus income tax on the entire amount.
❌ Lost Growth Potential – Your retirement savings should grow over time. Cashing out means you miss out on decades of potential growth.
❌ Risk of Spending the Money – Once you take the money out, it’s easy to spend it on non-essential expenses instead of reinvesting it for retirement.
When Cashing Out Might Make Sense
�� Financial Emergency – If you have no other options and absolutely need the money, cashing out might be necessary.
�� Small Account Balances – If your balance is very low (a few hundred dollars), it might not be worth the hassle of transferring.
�� Severe Hardship Situations – Some plans allow penalty-free withdrawals in extreme hardship cases, but taxes still apply.
Best for:
•    People facing extreme financial hardship.
•    Those with a very small account balance.
•    Anyone willing to pay the tax and penalty costs for immediate cash.
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4. Rollover to an IRA (Best Choice for Many People)
Rolling your old 401(k) into an Individual Retirement Account (IRA) is often the best choice for long-term investors. An IRA typically offers more investment choices, lower fees, and greater flexibility than an employer-sponsored plan.
Why Choose an IRA Rollover?
✅ More Investment Options – IRAs typically offer a wider range of stocks, bonds, mutual funds, and ETFs.
✅ Lower Fees – Many IRAs have lower fees compared to some 401(k) plans.
✅ More Control – You get to decide where your money is invested, instead of relying on limited options in a workplace plan.
✅ Continued Tax Benefits – Your money stays in a tax-advantaged retirement account.
Potential Downsides of an IRA Rollover
❌ No Employer Match – Unlike a 401(k), an IRA doesn’t come with employer-matching contributions.
❌ Less Protection from Creditors – In some states, IRAs offer less legal protection from creditors than 401(k)s.
❌ Must Choose a Provider – You’ll need to select a brokerage firm or financial institution to open your IRA, which can take a bit of research.
Best for:
•    Individuals who want more investment control and choices.
•    Those looking to reduce fees.
•    People who don’t need employer match contributions on rolled-over funds.
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Which Option Is Right for You?
The best choice for your old retirement plan depends on your financial goals, job situation, and retirement timeline.
•    If you want simplicity and don’t mind limited options, leaving it with your old employer might work.
•    If your new employer offers a solid plan, transferring to your new 401(k) could make sense.
•    If you want the most flexibility and control, rolling over to an IRA is probably your best bet.
•    If you absolutely need the money, cashing out is an option, but it should be your last resort.
Taking the time to assess your options now can lead to better financial security in retirement. Don’t let your old retirement plan sit idle—make it work for you!
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FAQs
1. What happens if I do nothing with my old 401(k)?
If you leave your old 401(k) untouched, it will continue to be invested. However, you might forget about it, and your former employer could change plan providers, making it harder to track.
2. Can I roll over a 401(k) into a Roth IRA?
Yes, but this is considered a Roth conversion, meaning you’ll owe taxes on the money you move. This can be a smart move if you expect your tax rate to be higher in retirement.
3. How long do I have to roll over my 401(k) after leaving a job?
There’s no deadline to roll over your 401(k), but if your former employer issues you a check, you have 60 days to deposit it into a new retirement account to avoid taxes and penalties.
4. What fees should I watch for when rolling over to an IRA?
Look out for account maintenance fees, investment expense ratios, and trading fees. Many online brokerages offer low-cost or no-fee IRAs.
5. Can I split my old 401(k) into multiple accounts?
Yes, you can roll over part of your 401(k) into an IRA while leaving some in your old or new employer’s plan. However, consider consolidation for easier management.

Why the Cost of Eggs and Gasoline May Skew an Investor’s View of the Current Economy

Mon, 17 Feb 2025 12:21:24 GMT

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I ntroduction

When it comes to assessing the economy, investors often look at key indicators like stock market trends, employment rates, and GDP growth. However, everyday expenses like the cost of eggs and gasoline can have an outsized impact on public perception—and even investor sentiment. While these items may seem minor in the grand scheme of economic indicators, their visibility and direct impact on household budgets can create a skewed view of economic conditions.
Rising prices at the grocery store or gas pump can lead to the belief that inflation is out of control, even when broader economic data suggests otherwise. In this article, we’ll explore how the fluctuating prices of eggs and gasoline can mislead investors and affect their decision-making.
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The Psychology of Everyday Prices

Most people don't check GDP reports daily, but almost everyone notices when the cost of their morning eggs doubles or when they have to pay significantly more at the pump. This is because humans rely on readily available information, a cognitive bias known as the availability heuristic.
• When something is highly visible and affects daily life, people tend to assume it represents the broader economy.
• Investors, who are also consumers, are not immune to this effect. If they see inflationary pressure in food and fuel, they may overestimate overall economic instability.
In reality, food and fuel prices are among the most volatile in the economy, influenced by factors beyond just inflation, including weather patterns, supply chain disruptions, and geopolitical events.
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Why Egg Prices Fluctuate So Wildly

Egg prices can swing dramatically in a short period, making them a poor measure of long-term inflation. Several factors contribute to this volatility:

1. Avian Flu and Disease Outbreaks

A single outbreak of avian flu can wipe out millions of hens, drastically reducing supply and driving up prices.
When the disease is controlled, supply rebounds, and prices drop just as sharply.

2. Seasonal Demand Changes

Demand for eggs spikes during the holiday season and Easter, temporarily driving up prices.
After these peaks, prices often stabilize.

3. Feed and Transportation Costs

The cost of chicken feed, largely driven by corn and soybean prices, significantly impacts egg prices.
Rising fuel prices also increase transportation costs, adding to the price fluctuations.

Because of these factors, egg prices are not a reliable indicator of long-term inflation trends. However, since eggs are a grocery staple, their rising costs can create the perception that the economy is in worse shape than it actually is.
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The Volatility of Gasoline Prices

Few products are as emotionally charged as gasoline. When fuel prices rise, it has an immediate impact on consumers, businesses, and even political sentiment. However, gasoline prices are largely dictated by forces outside the control of domestic policymakers, including:
1. Crude Oil Prices

Gasoline prices are directly tied to crude oil costs, which are influenced by global supply and demand.
Geopolitical events, such as wars or OPEC production cuts, can send oil prices soaring overnight.

2. Refinery and Supply Chain Issues

Natural disasters like hurricanes can damage refineries, leading to short-term price spikes.
Seasonal changes in fuel blends, particularly summer-grade gasoline, often cause prices to rise in warmer months.

3. Market Speculation

Oil traders frequently speculate on supply and demand trends, causing sharp price swings based on future expectations rather than actual shortages.

Because gasoline prices are so visible—posted on giant signs at nearly every street corner—many people assume they reflect broader economic conditions. However, their extreme volatility makes them a poor indicator of long-term economic health.
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How Misleading Prices Can Influence Investment Decisions

Investors, like all humans, are susceptible to emotional decision-making. If they perceive that the cost of essential goods is skyrocketing, they may:

Overestimate inflation risks, leading to panic selling in stock markets.
Assume the Federal Reserve will raise interest rates aggressively, impacting bond and equity investments.
Move assets into perceived "safe havens" like gold or commodities, potentially missing out on broader market gains.

However, basing investment decisions on short-term price fluctuations in eggs and gasoline can lead to missed opportunities. Economic fundamentals, including corporate earnings, employment growth, and consumer spending trends, provide a far clearer picture of long-term trends.
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A More Balanced Approach to Economic Analysis

To avoid being misled by volatile prices, investors should adopt a broader view that includes:
1. Core Inflation Metrics

The Consumer Price Index (CPI) and Core CPI (which excludes food and energy) provide a more stable measure of inflation trends.
The Personal Consumption Expenditures (PCE) Index is another valuable measure that the Federal Reserve closely monitors.

2. Labor Market Health

Low unemployment and steady wage growth suggest a strong economy, even if food and fuel prices are temporarily high.

3. Consumer Spending Trends

Despite rising costs in certain sectors, consumer spending patterns on discretionary items (travel, dining, and entertainment) can indicate economic confidence.

4. Supply Chain Developments

Understanding whether price increases are due to logistical disruptions rather than underlying economic weakness can prevent reactionary investment decisions.

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Conclusion

Egg and gasoline prices are highly visible and emotionally charged, often leading to overreactions about economic conditions. While these costs certainly impact consumer sentiment, they do not always reflect broader economic fundamentals.
For investors, focusing too much on the short-term volatility of these prices can lead to misguided decisions. Instead, a big-picture approach that considers core inflation, labor markets, and corporate earnings will provide a far more accurate gauge of economic health.

The January Barometer and 2018: A Cautionary Tale for 2025 Amid New Trade Tensions

Thu, 06 Feb 2025 18:02:08 GMT

Introduction to the January Barometer

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Financial Challenges Face By Americans in 2024

Fri, 24 Jan 2025 13:48:00 GMT

Will 2025 Be Any Different?

Financial Challenges Faced by Americans in 2024

In 2024, Americans encountered numerous financial hurdles that affected their ability to save and manage their finances effectively. Inflation was a major concern, driving up the costs of essentials like housing, groceries, and utilities, which strained household budgets.

Credit card debt hit record highs, and rising interest rates on credit cards and loans made it more difficult for consumers to pay down their balances. Additionally, many households exhausted the extra savings they had accumulated during the pandemic, leaving them with less of a financial cushion.

Cost of Living Concerns

Two-thirds of respondents reported that the cost of living for the average family in their area was unaffordable. The rising cost of living dominated financial news headlines in the post-COVID-19 world. Many households felt the pinch as inflation reached a 40-year high of 9.1% in June 2022. Although the inflation rate has since moderated (the Consumer Price Index was up 2.7% year over year in November 2024), the high costs of housing, groceries, and other essentials are expected to persist.

Living Comfortably

Only about one-quarter of Americans said they lived comfortably. Most people were unhappy with the cost of living in their area and struggled to pay for necessities while saving for the future. Older Americans (baby boomers, silent generation, greatest generation) were more likely to report living comfortably.

Savings Dissatisfaction

Savings goals vary based on lifestyle, family size, debt obligations, and more. When it comes to satisfaction with savings, the results were mixed. Women were more likely than men to express dissatisfaction with their savings, which may be attributed to financial challenges such as the gender pay gap and higher caregiving responsibilities.

Savings in 2024

About half of Americans reported saving less in 2024 compared to 2023. Despite historically high deposit account interest rates, consumers faced inflation, rising interest rates on debt, record-level education costs, and more.

Optimism Among Younger Generations

With a new year and a new administration, Americans were hopeful about their savings habits in 2025. Younger Americans were more optimistic and more likely to say they would save more this year.

Barriers to Saving

The cost of living was the most significant barrier to saving. Other common obstacles included unexpected bills or expenses, numerous financial obligations, and changes in income or employment status.

Financial Emergency Solutions

In times of financial distress, people have various options to cover their bills. About a quarter of the population would tap into their savings. Others might take on more hours or an extra job. A small portion of younger generations would likely ask family or friends for help, while a similar percentage of both younger and older individuals would put their expenses on a credit card.

Emergency Fund Shortfalls

Experts recommend saving at least three to six months' worth of expenses in an emergency fund. However, many Americans struggled to meet this guideline. About one-third of the population said they would not be able to cover their bills and expenses for even one month if they lost their job or source of income.

Optimism with New Administration

With Donald Trump as president, 60% of Americans were more optimistic about their finances in the coming year. A new administration often brings a new economic agenda, and most Americans expected positive changes.

Let's see what 2025 will bring...

I hope this helps! If you need any further adjustments, feel free to let me know.

Don't Let Yourself Become The Story

Tue, 14 Jan 2025 18:10:28 GMT

We've all known someone who this has happened to...

Do you ever hear stories about people whose lives were turned upside down after a tragedy? Someone who became unexpectedly ill, suffered a disabling accident, or passed away without warning? Often, what follows is an all-too-familiar tale: a family left struggling financially, burdened by medical bills, funeral expenses, or lost income. These stories are heartbreaking—and avoidable.
The truth is, no one wants to imagine the worst happening to them, but preparation is the key to protecting your loved ones from becoming part of these cautionary tales. This article is your guide to understanding why life, disability, and long-term care insurance are essential safeguards. It’s time to ensure that you don’t let yourself become the story.

The Ripple Effects of Tragedy Without Protection Plans

When tragedy strikes a family without a safety net, the effects can be far-reaching. Beyond the immediate emotional toll, the financial impact often compounds the stress, turning a heartbreaking situation into a full-blown crisis.
Financial Strain on Families
Consider a family where the primary breadwinner passes away unexpectedly. Without life insurance, the remaining family members may struggle to cover everyday expenses like rent, groceries, and utilities. The sudden loss of income can force families to dip into savings or take on debt just to stay afloat.
The same applies to long-term disabilities or illnesses. A parent unable to work for an extended period may lose not just their salary but also employer-sponsored benefits like health insurance. Families often resort to maxing out credit cards or taking out loans to cover medical bills and basic living costs.
Emotional Toll of Juggling Finances and Grief
When families are left to scramble for financial resources, it can exacerbate their emotional pain. Instead of focusing on healing or caring for a loved one, they’re consumed with figuring out how to pay the bills. This added pressure can strain relationships, disrupt children’s education, and even lead to long-term financial instability for future generations.
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Life Insurance: A Non-Negotiable Safety Net

What Life Insurance Covers
Life insurance is designed to replace your income if you’re no longer there to provide for your loved ones. Depending on the policy, it can cover funeral expenses, outstanding debts, and everyday living costs. It can also ensure long-term financial security by helping fund college tuition for your children or retirement savings for a surviving spouse.
Real-Life Examples of Families Without Life Insurance
Picture a young family with two children. The father dies unexpectedly in a car accident. Without life insurance, his wife is left to cover mortgage payments, childcare costs, and daily expenses on a single income—or no income at all if she wasn’t working. Stories like this are sadly common, and they underline the importance of preparing for the unthinkable.
How Life Insurance Ensures Financial Stability for Dependents
A good life insurance policy can replace lost income, pay off debts, and provide a financial cushion that allows loved ones to grieve without worrying about money. It’s a vital tool for ensuring that your family can maintain their lifestyle even in your absence.
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Disability Insurance: Protecting Your Income

How a Disability Can Derail Financial Stability
Did you know that 1 in 4 working adults will experience a disability before they retire? Whether it’s an accident, illness, or chronic condition, a disability can disrupt your ability to earn an income. Without disability insurance, many families quickly find themselves in financial jeopardy.
Examples of Families Struggling After Unexpected Disabilities
Consider the story of Sarah, a 35-year-old teacher who suffered a severe back injury. Unable to work for a year, Sarah quickly burned through her savings. With no disability insurance, she was forced to sell her car and borrow money from family members to pay her bills.
Benefits of Having Disability Insurance in Place
Disability insurance acts as a financial lifeline, replacing a portion of your income if you’re unable to work. This coverage allows you to focus on recovery without the added stress of financial hardship. It’s particularly valuable for families with significant monthly expenses, such as a mortgage or tuition payments.
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Long-Term Care Insurance: A Shield Against the Costs of Aging

Rising Costs of Long-Term Care Services
The costs of long-term care are staggering and continue to rise. In the U.S., the average annual cost of a private room in a nursing home exceeds $100,000. Even in-home care can add up to tens of thousands of dollars each year. Without long-term care insurance, families often bear the brunt of these expenses.
Real Stories of Families Forced to Sell Assets to Pay for Care
Imagine an elderly couple who planned to leave their home to their children. When one spouse develops Alzheimer’s, they’re forced to sell their home to cover nursing care costs. Their financial legacy is wiped out, and their children are left with nothing.
How Long-Term Care Insurance Offers Peace of Mind
Long-term care insurance covers expenses like nursing homes, assisted living facilities, and in-home care services. With this coverage, families don’t have to deplete their savings or sell assets to afford quality care. It provides both financial and emotional relief, ensuring that loved ones receive the care they need without undue stress on their families.

The Cost of Skipping Insurance Plans

Myths About Affordability
One of the most common misconceptions about insurance is that it’s too expensive. In reality, skipping coverage can cost far more in the long run. For instance, a modest term life insurance policy can cost less than a daily cup of coffee, yet it offers invaluable peace of mind.
The True Cost of Not Having Coverage
Without insurance, families often end up paying for emergencies out of pocket. This can mean draining savings, going into debt, or even declaring bankruptcy. The financial impact of being unprepared far outweighs the cost of monthly premiums.

How to Start Building a Safety Net

Building a safety net starts with one key realization: the unexpected can happen to anyone, at any time. While it’s uncomfortable to think about, taking proactive steps to prepare can save your family from overwhelming financial and emotional burdens down the road. Here’s how to get started:
1. Assess Your Needs
The first step is understanding your unique situation. Do you have dependents who rely on your income? Are you the primary earner in your household? Consider factors like your family size, current debts (such as a mortgage or student loans), and long-term goals like college tuition for your children. This self-assessment will guide the type and amount of coverage you need.
2. Educate Yourself About Coverage Options
Life insurance, disability insurance, and long-term care insurance each serve specific purposes. Life insurance ensures your family can cover expenses like mortgage payments, daily living costs, and even retirement savings if you’re no longer there to provide. Disability insurance replaces your income if you’re unable to work due to illness or injury, while long-term care insurance covers the cost of extended care services as you age. Research these options thoroughly to understand what works best for you.
3. Set a Budget
Many people avoid insurance because they think it’s unaffordable. However, policies can be tailored to fit almost any budget. Start small if needed. For example, a term life insurance policy is often more affordable than permanent coverage but still offers significant protection.
4. Seek Professional Advice
Insurance can be complicated, so don’t hesitate to consult a financial advisor or insurance agent. These professionals can analyze your financial situation and recommend the right mix of policies to protect you and your family.
5. Compare Providers
Not all insurance policies are created equal. Take time to compare rates, coverage options, and customer reviews for different providers. Websites and tools designed for comparing policies can save time and ensure you’re getting the best deal.
6. Make Insurance Part of Your Financial Plan
Your safety net isn’t just about insurance—it’s about your entire financial picture. Build an emergency fund, pay down high-interest debts, and create a will or estate plan to complement your insurance policies. Together, these components form a comprehensive safety net for your family.
7. Review and Update Regularly
Life changes—whether it’s a new job, marriage, a baby, or even paying off a significant debt—should prompt a review of your insurance coverage. Regular updates ensure your safety net grows and evolves with your needs.

Real-Life Stories: Lessons from Those Who Didn’t Prepare

Real-life stories bring to light the emotional and financial chaos that can follow a lack of preparation. These cautionary tales show just how critical it is to take action before it’s too late.
Take, for example, the story of Mark and Lisa, a couple in their early 50s. They had always planned to get life insurance but kept delaying because they were “healthy” and focused on other financial priorities. When Mark unexpectedly suffered a fatal heart attack, Lisa was left to care for their two teenage children with no financial support. With limited savings, Lisa had to sell their family home to cover mounting debts, forcing her children to move and adjust to a new school at the worst possible time.
Or consider James, a construction worker who experienced a debilitating spinal injury. Without disability insurance, James and his wife were forced to rely on her part-time income while navigating his medical bills. Their savings evaporated within months, and they had to borrow money from friends and family to avoid eviction. This situation could have been avoided with a policy that replaced a portion of James’s income during his recovery.
Another devastating example is the case of Maria, a retired widow who didn’t think she needed long-term care insurance. When she was diagnosed with dementia, her adult children struggled to afford a memory care facility. To cover the costs, they had to sell her home, liquidate family heirlooms, and take on personal loans. These financial struggles created tension among the siblings, turning a challenging situation into a fractured family dynamic.
These stories underscore the importance of securing the right protection plans. Life, disability, and long-term care insurance are not just financial products—they’re tools for preserving stability, dignity, and peace of mind.
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The Emotional Side of Insurance Planning

Talking about insurance can feel heavy, even overwhelming. After all, it forces us to confront uncomfortable topics like death, disability, and aging. But addressing these realities is a powerful act of love and responsibility.
Peace of Mind
When you have insurance in place, you don’t have to carry the weight of “what if?” every day. Knowing your family will be financially secure, no matter what happens, brings incredible peace of mind. You can focus on living in the present, confident that you’ve prepared for the future.
Reducing Stress for Loved Ones
Imagine your family trying to make ends meet while navigating the loss of a loved one or the challenges of a severe illness. Without a safety net, their grief is compounded by financial stress. By planning ahead, you spare them from these burdens. You give them the gift of stability when they need it most.
Breaking the Taboo
Many people avoid discussing insurance because it feels morbid, but these conversations are essential. Talking openly with your family about your plans ensures everyone understands your wishes and knows how to access resources if needed. It turns a difficult topic into a shared commitment to protection and care.
Strengthening Family Bonds
Believe it or not, discussing your insurance plans can bring your family closer. It’s a chance to share your hopes, dreams, and priorities for their future. When everyone is on the same page, it fosters trust and unity.
A Legacy of Responsibility
Planning your safety net is part of building a lasting legacy. It shows your family—and future generations—that you took responsibility for their well-being. This example can inspire others to prioritize financial planning and security in their own lives.

A Call to Action: Protect What Matters Most

It’s easy to put off thinking about life’s uncertainties, but delaying decisions about insurance only increases your family’s vulnerability. You owe it to yourself and your loved ones to take proactive steps today.
Start by asking yourself: If something happened to me tomorrow, would my family be able to maintain their quality of life? Would they have the resources to handle the unexpected without being overwhelmed? If the answer is no—or even “I’m not sure”—it’s time to act.
Protecting your family is not just about finances; it’s about showing your love and commitment to their well-being. Life insurance ensures your loved ones won’t face financial ruin if you’re gone. Disability insurance secures your income if you’re unable to work. Long-term care insurance spares your family from the financial strain of caring for you as you age.
Don’t let yourself be the story of a family left unprotected. Take action today:
•    Review your current financial situation.
•    Research the coverage options available to you.
•    Speak with a trusted financial advisor or insurance professional.
The future is unpredictable, but your response doesn’t have to be. Build a safety net now and ensure your family has the protection they deserve.

Conclusion: Protect What Matters Most

No one likes to think about the possibility of tragedy, but ignoring it won’t make it any less real. By taking the time to build a safety net with life, disability, and long-term care insurance, you’re giving your loved ones the greatest gift: security. You’re ensuring that they won’t have to endure financial struggles on top of emotional pain.
The best time to act is now. Review your needs, explore your options, and take those first steps to protect your family. Don’t wait for the unexpected to strike—be proactive, plan ahead, and ensure that you never become the story of a family left unprotected.

Why Do Resolutions Fail by Mid-January?

Sun, 05 Jan 2025 12:52:37 GMT

How To Avoid The Quitters Day Trap

Have you ever noticed how New Year's resolutions seem to lose their sparkle by the second or third week of January? If so, you’re not alone. Statistics show that most people abandon their resolutions within a few weeks of setting them. But why does this happen? The reasons often lie in how we approach our goals and the mindset we carry into the new year.
One of the biggest culprits is setting unrealistic goals. Many of us feel a surge of motivation on January 1st and decide to aim for major life changes all at once—like losing 30 pounds in a month or working out every single day without fail. While ambition is admirable, these types of goals are often unattainable in such a short period, leading to frustration and eventual burnout.
Another common issue is the lack of a clear plan. Resolutions often start as vague statements like “I want to get fit” or “I’ll save money this year.” Without actionable steps or measurable milestones, it’s easy to lose track of progress or get overwhelmed by the enormity of the goal. Without structure, even the best intentions can falter.
Motivation fades quickly after the excitement of the new year dies down. Motivation is often fueled by novelty, but real change requires discipline and consistency—two traits that are harder to maintain over time. By mid-January, the initial enthusiasm often gives way to old habits, especially if we don’t have systems in place to reinforce new ones.
Social and environmental pressures also play a role. Life gets busy, and as the demands of work, school, or family creep back in after the holiday lull, resolutions take a backseat. Pair this with temptations like junk food or the comfort of skipping the gym, and it’s no surprise that many people give up.
Finally, many people don’t account for setbacks. Whether it’s missing a workout, overspending on a shopping trip, or indulging in an unhealthy meal, one slip-up can feel like a failure. This "all-or-nothing" mindset often leads to abandoning the resolution entirely instead of adjusting the plan.
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Strategies to Overcome Quitters Day
Breaking the cycle of quitting isn’t just possible—it’s entirely within your reach with the right mindset and strategies. Let’s dive into how you can overcome the challenges of Quitters Day and stick to your resolutions long-term.
1. Set Realistic and Measurable Goals
The key to success lies in creating goals that are specific, measurable, achievable, relevant, and time-bound (SMART). For example, instead of saying, “I’ll get fit this year,” try “I’ll exercise for 30 minutes three times a week.” By breaking big aspirations into smaller, manageable steps, you’re less likely to feel overwhelmed and more likely to stay on track.
2. Build Consistent Habits, Not Just Motivation
Motivation is fleeting, but habits are sustainable. Focus on creating daily or weekly routines that make progress automatic. For instance, if you want to eat healthier, prep your meals in advance or stock your kitchen with nutritious options. Building habits takes time, but once established, they become second nature.
3. Accountability and Support Systems
Having someone to hold you accountable can make all the difference. Share your goals with a trusted friend, family member, or even a coach. Better yet, join a community or group with similar objectives. Knowing that someone is rooting for you—or counting on you—can keep you motivated during tough moments.
4. Reframe Setbacks as Learning Opportunities
Setbacks are inevitable, but they don’t have to derail your progress. Instead of viewing a missed workout or a bad day as failure, see it as a chance to learn. What triggered the setback? How can you adjust your approach to prevent it in the future? Remember, growth isn’t linear—it’s a journey filled with ups and downs.
5. Celebrate Small Wins
Big goals take time, so it’s important to recognize and celebrate progress along the way. Did you stick to your exercise routine for two weeks? Treat yourself to something meaningful, like new workout gear. Celebrating small milestones helps reinforce positive behavior and keeps you motivated for the long haul.
6. Focus on the Process, Not Just the Outcome
Instead of fixating on the end goal, shift your mindset to enjoy the journey. For example, if your goal is to write a book, celebrate the act of writing every day rather than stressing about completing the manuscript. When you focus on the process, progress feels more achievable, and the outcome will naturally follow.
7. Leverage Technology and Tools
Apps and tools can help you stay organized and motivated. Habit trackers, fitness apps, and budgeting tools make it easier to monitor progress and stay accountable.
Life happens, and sometimes your resolutions need to evolve. Check in with yourself weekly or monthly to assess progress. Are your goals still realistic? Do you need to adjust your timeline or strategy? Being flexible ensures that your resolutions remain relevant and achievable.
________________________________________
With these strategies, you can break free from the Quitters Day trap and turn your resolutions into lasting change. The key is to approach your goals with patience, self-compassion, and a focus on progress rather than perfection. Change doesn’t happen overnight, but with consistent effort, you’ll be surprised at what you can accomplish.

Budgeting is just like trying to Diet

Mon, 09 Dec 2024 12:23:21 GMT

Why Trying to Budget is Like Going on a Diet (And Why It Often Fails)

Budgeting and dieting are two of the most common self-improvement goals people set for themselves. Both aim to bring about positive changes—whether it's financial stability or better health. However, many find that sticking to a budget is just as challenging as sticking to a diet. Here’s why:
1. Restrictive Nature
Both budgeting and dieting often start with a restrictive mindset. Just as a diet might cut out all your favorite foods, a budget might eliminate all your discretionary spending. This restriction can lead to feelings of deprivation, making it harder to stick to the plan. Over time, the temptation to "cheat" becomes stronger, whether it's indulging in a dessert or splurging on an unplanned purchase.
2. Unrealistic Expectations
Many people set themselves up for failure by setting unrealistic goals. In dieting, this might mean expecting to lose a significant amount of weight in a short period. In budgeting, it could mean expecting to save a large portion of income without considering necessary expenses. When these high expectations aren't met, it can lead to discouragement and abandonment of the plan altogether.
3. Lack of Flexibility
Life is unpredictable, and both diets and budgets need to be flexible to accommodate unexpected changes. A rigid diet plan doesn't account for social events or cravings, just as a strict budget doesn't account for emergencies or spontaneous opportunities. Flexibility is key to maintaining long-term success in both areas.
4. Emotional Factors
Emotions play a significant role in both eating and spending habits. Stress, boredom, and happiness can all trigger overeating or overspending. Without addressing the underlying emotional triggers, it's challenging to maintain a diet or budget. Emotional awareness and coping strategies are essential for long-term success.
5. Short-Term vs. Long-Term Mindset
Both dieting and budgeting often focus on short-term results rather than long-term sustainability. Crash diets and extreme budgeting can lead to quick results, but they are rarely sustainable. A more balanced approach that focuses on gradual, consistent changes is more likely to lead to lasting success.
6. Lack of Support
Having a support system can make a significant difference in achieving goals. Just as people might join a weight loss group or hire a personal trainer, having a financial advisor or joining a budgeting community can provide the encouragement and accountability needed to stay on track.
Making It Work
To make both budgeting and dieting work, consider the following tips:
•    Set Realistic Goals: Aim for gradual progress rather than drastic changes.
•    Allow Flexibility: Build in some room for treats and unexpected expenses.
•    Address Emotional Triggers: Be mindful of how emotions affect your habits and develop healthy coping mechanisms.
•    Seek Support: Surround yourself with people who encourage and support your goals.
•    Focus on Long-Term Changes: Develop habits that you can maintain for life, rather than quick fixes.

By understanding the similarities between budgeting and dieting, you can approach both with a more balanced and sustainable mindset. Remember, it's about progress, not perfection.

Watch our Think With A Drink episode for ways to be better at handling your expenses: The Dreaded B Word

Surviving Black Friday Financially

Fri, 22 Nov 2024 11:37:41 GMT

7 Smart Shopping Tips for Black Friday

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8 Money Makes to before the year ends

Mon, 11 Nov 2024 13:27:30 GMT

Completing these financial tasks before year-end can help set you up for financial success in the New Year.

1. Perform a cash flow checkup

Compare your monthly spending amounts with the amount you expected to spend. Did you spend more, less, or about the same?

Recommended viewing: SavingvsSpending

2. Shore up your emergency fund

Maintaining an emergency fund is one of the most important steps you can take to protect the health of your finances.

Why? Something is going to happen; the car will break down or the pet will get sick and without an adequate emergency fund, you might be forced to turn to credit cards or other forms of high-interest debt to pay for that unplanned expense.

To prevent this from happening, experts typically recommend having enough liquid funds to cover at least 3 to 6 months’ worth of living expenses. But if you are self-employed or have an unpredictable income, you may need more.

Recommended viewing: EmergencyReserveAccounts

3. Audit your subscriptions and cancel the ones you don’t use

According to C&R Research, the average consumer spends about $219 per month on subscriptions. However, the same consumers estimated they only spent $86 per month. This subscription creep could be costing you over $2,500 per year without even realizing it.

Do yourself a favor and review your bank and credit card statements to spot subscriptions you rarely use (or even forgot you had) and cancel them.

4. Make health appointments before your deductible resets

Your deductible on an insurance plan is the amount you must pay out of pocket before your insurance provider starts to pay. These deductibles generally reset on Jan. 1.

If you have already reached your deductible for the year, take advantage of reduced health costs and make any outstanding medical appointments by the end of the year.

5. Max out tax-advantaged accounts

Accounts that offer tax advantages, such as 401(k)s, individual retirement accounts (IRAs), and health savings accounts (HSAs), are powerful ways to save and invest. Contributions to these accounts reduce your taxable income, helping you get a bigger refund — or at least, a lower tax bill — when you file.

Recommended viewing: TheRetirementGame

6. Re-evaluate taxable investment accounts

While often not as critical as tax-advantaged accounts, taxable brokerage accounts have benefits. Two of the biggest is the ability to make penalty-free withdrawals at any time and depending on how much you earn you may pay $0 in capital gains tax. Additionally, you often have more freedom in investment selection than you would with a 401(k).

If you invest using taxable accounts through an online brokerage or elsewhere, there are some basic tasks you should do at least once a year. Perhaps the most important is rebalancing, which involves selling investments above your target allocation and buying ones below your target allocation.

7. Pay down high-interest debt

High-interest debt can significantly strain your finances, so reducing or eliminating it can help you start off 2025 on better financial footing.

Fortunately, debt reduction is not all or nothing.

Recommended viewing: TacklingDebt

8. Consider refinancing

If you are currently making monthly payments on a large loan, such as a car loan or mortgage, check your current interest rate against today’s rates. While the recent rate cuts by The Fed have lowered the prime rate, it may or may not influence your rates, but it’s worth a look. Refinancing could save you a lot of money if rates have dropped since your purchase.

3 Paychecks This Month

Mon, 19 Aug 2024 10:01:02 GMT

This is a subtitle for your new post

Here’s a look at when your three-paycheck months will be, based on when you received your first paycheck of the year.

If you received your first paycheck of 2024 on January 5, you’ll receive three paychecks in March and August.

March pay dates: March 1, 14 and 29.
August pay dates: Aug. 2, 16 and 30.

If you received your first paycheck of 2024 on January 12, you’ll receive three paychecks in May and November.

May pay dates: May 3, 17 and 31.
November pay dates: Nov. 1, 15 and 29.

How Do You Budget For a 3-Paycheck Month?

When budgeting, a three-paycheck month means a higher level of income. If you normally make $4,000 per month, it could mean you'll make $6,000. So, what should you do with the extra disposable income?

While a shopping spree can be tempting, consider how that money could improve your overall financial situation. ARIES recommends making the following moves a priority.

Reference: Watch Saving vs Spendin g

Pay Off High-Interest Debt

If you have high-interest debt, your outstanding balance is costing you money every month. An extra paycheck presents a great opportunity to chip away at high-interest credit card bills and loan balances.

Reference: Watch How to Tackle Debt

Build an Emergency Fund

An emergency fund refers to a savings account that’s easily accessible in case of emergencies. Experts recommend that you stock it with enough money to cover three to six months of living expenses. Instead of borrowing and potentially taking on debt, you’ll have funds available.

Reference: Watch Emergency Reserves Made Easy

Invest in Retirement Accounts

By using some of your extra paychecks to contribute to a retirement account like a Roth IRA or 401(k), you can have money working for your future self. And the earlier you start, the better.

Reference: Watch No Pension, No Problem

Consider Other Savings Goals

You can also use your extra paychecks to make progress on other savings goals. If, for example, you’re saving up for a down payment on a house, your child’s college education or even an upcoming vacation, the money could help you reach your goal faster.

Reference: Watch Should I Buy or Lease?

Planning Ahead for Your Extra Paycheck

You probably won’t be able to achieve all of the above goals with two extra paychecks in a year, but the extra money can help you jump a few steps ahead.

2025 Three-Paycheck Months

If your first paycheck of 2025 is Friday, January 3, your three paycheck months are January and August.
If your first paycheck of 2022 is Friday, January 10, your three paycheck months are May and October.

You're Not Feeling So Good Right Now

Mon, 13 May 2024 11:25:28 GMT

And You're Not Alone!

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When being a passive investor can be too passive

Wed, 01 May 2024 11:03:25 GMT

The S&P 500 returned 26.34% last year

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Thought There Would Be A Safe Landing?

Thu, 18 Apr 2024 12:15:18 GMT

Now It Looks Like No Landing At All...

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Why is it so hard to get a cup of coffee?

Wed, 10 Apr 2024 20:51:13 GMT

When a (jobs) report doesn't tell the whole story...

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Got your Wayferers on?

Tue, 26 Mar 2024 21:10:21 GMT

The stock market is so bright that you're gonna need to wear shades...

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Halloween wasn't so scary after all

Wed, 08 Nov 2023 13:55:49 GMT

T he projection was to spend a record 12.2 Billion (that's a lot of candy...)

And it just might bode well for things going forward from here...

We told you last week that the S&P 500 had dipped into correction on Friday, 10/27. A seasonal run from the mid-year high on July 31 that pretty much went streaight downhill from there. The S&P 500 index with October's end just logged its longest monthly streak of declines since March 2020.
A look at traditional year-end seasonal patterns and a strong Halloween suggests that the tides could be turning.
November has been the strongest month for stocks since 1950. The benchmark index has declined for the month just once in the past 11 years, in 2021.
Things already look promising for the market, two trading days into November. The S&P 500 on Thursday climbed 1.9% to log its best one-day gain since April.
Behind the rally? Investors seem optimistic that the Federal Reserve is done raising interest rates this year, after the central bank on Wednesday paused for a second consecutive meeting, leaving the benchmark lending rate at its highest level in more than 22 years.
Right now the projection is roughly 80% expectation that the Fed will hold rates steady again at its December policy meeting.
Also helping stocks run higher is a slide in bond yields after the Fed hit the pause button. The yield on the 10-year US Treasury note fell on Thursday to 4.67%, compared to Wednesday’s close of 4.79%, well below the key 5% level it breached last month. Weaker oil prices — down about 3% this week — may be another supportive factor.
Seasonal patterns bode well beyond this month as the S&P 500 has gained an average 6.7% from November to April since 1990 (for more on this you can check-out our Youtube Channel ' Sell in May & Go Away " episode).
Of course, history is merely a guide, not a crystal ball into the future.
The S&P 500 closed on Friday at 4,358.
Where do you think we'll be at the end of the year?
You can't get a second opinion from the person who set up your plan: Sometimes it helps to have a different perspective on things.

Correction Again, Really?

Fri, 03 Nov 2023 10:16:58 GMT

Hey, Mr. (Fed) DJ - Can you play something else for a change?

After a really lousy go of it last week the S&P 500 dropped into Correction territory...again.

No, your radio isn't busted, it's just the Fed DJ has been blasting out the same old inflationary song for so long now, that eventually the markets were going to catch-up (or drop as the case may be). On Friday the 27th, the S&P 500 officially entered into new correction territory for this year falling just over 10% from the high set on July 31.

What's a Correction & Why Should I care?

A market correction is described as a drop of at least 10% but less than 20% in a stock market index from recent highs. It can be triggered by a number of factors, such as an overbought (overheated) market, negative headlines news, economic shocks, or major negative events. The concern or worry is that a market correction can lead to a Bear Market (a drop of 20% or more).

So, What's It Mean to Me?

Consumer & Investor sentiment can also be a trigger. If suddenly a lot of people feel uneasy about the state of things or how their investments are doing, it can further a pullback or decline. The Federal Reserve Bank not giving clear indication of its course of action can also create unease. This can make some investors to make rash or panicked moves with their finances, depending on their circumstances and financial goals.

The Reality of This Market

On Jan 3, 2022 the S&P 500 hit its all -time high of 4796. While the technical don't look beyond a rolling 52-week year, the reality is that we have been in a correction for most of 2023 (down 10% from the all-time high). Telling you today that we re-dropped into correction felt more like "doom & gloom" or trying to be scary with the headlines heading into Halloween, then actual market worthy information.
However, all of this still bears (no pun intended) watching as nothing feels certain with the markets today.
How are you feeling about things?

You can't get a second opinion from the person who set up your plan: Sometimes it helps to have a different perspective on things.

Inflation is getting serious - it's hitting our beer!

Wed, 12 Apr 2023 12:20:37 GMT

Now it's getting out of control - this is beer we're talking about...

To The FED - Banks are 1 thing, but this my beer!

Fed chief Jerome Powell did his part in helping to stem a banking crisis in March, but he hasn't been able to halt another crisis that has direct implications on us and our show Think With A Drink — stubborn inflation that is driving up the cost of making & distributing beer...the horror!

Recently, Corona and Modelo ( last week’s featured brew on our Saving vs Spending episode) maker Constellation Brands ( STZ ) reported a 15% year-over-year plunge in its beer segment's operating profits for the just-completed quarter. The culprit: across-the-board inflation.

“Benefits from favorable pricing were more than offset by increased COGS [cost of goods sold] driven by higher packaging, raw materials, incremental depreciation, and logistics costs, and increased SG&A [selling, general and administrative] driven by increased headcount to align with the momentum of our beer brands," Constellation Brands said on its earnings release.

Constellation isn't alone in feeling the inflationary sting on beer input costs.

Budweiser giant AB-InBev ( BUD ) saw its operating profit margins fall to 24.6% in its most recent quarter from 25.7% last year, as reported in early March.

Similar to Constellation Brands, Ab-InBev called out elevated levels of inflation.

And guess who is feeling most of this pinch? Us! Big Beer (& let’s be fair little beer too) is trying to offset the nagging input inflation the only way they can at this point, by pushing through price increases onto consumers.

In the fourth quarter of 2022, the average price of a 24-pack of 12 oz. beer went up nearly 8% per Nielsen data.

The at-home beer, ale, and other malt beverages category in the Consumer Price Index report showed a 7% year -over-year jump in February.

If the Fed keeps going like it is, then our only suggestion is to stock up now (we’ve got a lot of shows to do!).

The #1 reason that the banks will fail...

Wed, 05 Apr 2023 13:58:35 GMT

it's your Nana

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How to achieve financial wellness

Wed, 29 Mar 2023 11:51:28 GMT

What the heck is financial wellness anyway?

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When is a bailout not a bailout?

Wed, 15 Mar 2023 14:12:24 GMT

If it walks like a duck then it's probably a bailout...

When is a bailout not a bailout?

Let’s start in Silicon Valley with the biggest bank failure since the 2009 financial crisis. Silicon Valley Bank (SVB) was among the go-to banks for start-ups and biotech companies. It’s growth in recent years was fueled by the cheap money that had been available and started to feel some constraints as the Fed continued to hikes rates to fight persistent inflation.

While Fed officials may have seen some joy knowing the tech industry was feeling some pain, they certainly weren’t hoping to help tip a bank with over $200 billion in assets into insolvency. Make no mistake as this certainly was not all the result of the Fed.

Nearly all of the depositors of the now defunct bank held assets over the insured FDIC limit of $250,000 in their accounts. That insurance was created to end the parade of bank runs that dominated the Depression era.

Now we are being told that the Biden Administration will guarantee all of those deposits. But it’s not bailout?

We feel the Biden administration is being a little disingenuous skirting around using the word “bailout” to describe what’s happening. The President wants Americans to know that the situation is under control — while also insisting on the fairness of the process, both for depositors and for others in the real economy who remember the bank bailouts of 2008. In 2008, the government moved specifically to keep banks from failing, and propped them up with Treasury loans . The Biden administration has been saying that since they’re still planning on firing the heads of SVB, letting investors suffer losses, and not using taxpayer funds, it’s not a “bailout.”

The PLAY: Banks, not just SVB, made some ill-advised bets (and make no mistake, because that is what they were) on purchasing long US Treasuries when interest rates were non-existent. In 2022 when The FED decided to rapidly raise interest rates those long-term holdings took massive hits (the longer the holding period on a bond the more they are inversely affected by rate increases) and a lot of banks, again not just SVB, now find themselves holding huge amounts of government debt that is under water. In order to raise capital the banks need to sell these positions at a loss.

If this happened to you or us, we wouldn’t be made whole by the government…so why does Mark Cuban get a break?

The SPIN: It’s a bank fund that’s aiding SVB and not taxpayer funds. It’s a loan. The government has offered Banks, not just SVB, an option to take a loan and The FED will buy back those under-water treasury notes from the bank, so they will have more liquidity.

But who put the money into the account to create this bank fund in the first place? Kind of feels like that was every US taxpayer. And if they are using my money to prop-up a failed institution, or even the clients of that failed institution, while they may not be going about it in the same manner as they did in 2008…what’s the old adage; “if it walks like duck…”

The ironic twist in this tale is that the CEO of SVB had lobbied for less scrutiny for he and his fellow smaller banks. That they weren’t taking risks like the big banks were in 2008 and so didn’t need the same regulations and stress-test requirements as those banks. Which of course has all those big banks now sitting back & feeling fine, because of the tightened regs, while some regional banks are lining up to grab the bailout, err we mean bank loan offer.

Delivering Financial Education

Wed, 08 Mar 2023 12:54:20 GMT

How Do You Want Your Financial Education Delivered?

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7 Ways to Reduce our Taxes

Wed, 01 Mar 2023 12:09:57 GMT

You're paying em', but can you pay less?

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A very expensive game of chicken with the US Fed

Wed, 22 Feb 2023 13:02:25 GMT

We're spending like there's no tomorrow...

We saved up a lot during the years of the pandemic, and now it appears we are spending it.

Americans have begun financing their new spending habits with credit cards and draining their savings in recent months, as the cost of living soars. Some experts fear that means a spending slowdown—or even a recession. Which if you have been paying attention to us, we'd tell you we are only not in one in name only, because it certainly feels like we're in a recession.

But there's the problem for the Fed - we're spending like there is not tomorrow. And all that spending has created confusion in their minds and that of economists about the "R" word.

U.S. consumers’ credit card balances jumped 7% in the fourth quarter of 2022 to a new record high of $986 billion, a New York Federal Reserve report showed this week. And most estimates show that last year alone consumers spent roughly 30% of the $2.7 trillion in excess savings they built up during the pandemic, with lower-income consumers tapping closer to 50%.

And while you while you’re getting in debt, how’s that rich, old uncle of yours doing?

In fiscal 2021, the average interest rate on federal debt was a record-low 1.605%. But with the Fed raising its policy rate to try to cool off the economy, the U.S. has started paying more to borrow: The average interest rate on federal debt last year ticked up to 2.07%.

And his numbers are in the Trillions of dollars owed.

Even your Uncle Sam is starting to feel some of this pain.

And here's the thing - your dear, old uncle don't like paying a lot on his debt, so he's going to have to do something about it sooner, rather than later.

But we keep spending.

And it's like we are playing a very expensive game of chicken between the average US Consumer and The Federal Reserve Bank. Nothing about this sounds pretty and will probably end badly for all of us.

Why does it Costs more for a Dozen Eggs than a Gallon of Gas?

Wed, 15 Feb 2023 18:48:57 GMT

We're not suggesting you cancel your Easter Egg Hunt plans, but you might want to stock up on those plastic eggs, just in case...

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9 Tips To Save Money Fast

Wed, 08 Feb 2023 12:19:37 GMT

42% of American Adults have less than $1,000 in savings

Whether you’re a home-owner, renting, or living with family members, nearly every American struggles with saving their hard-earned cash. In fact, debt has become a way of life for most of us, ensuring that our savings are eaten away by monthly payments.

But, what is the average American savings?

· As of 2022, 42% of Americans have less than $1,000 in savings.

· The average American savings account balance is $4,500

· A considerable 10% of Americans have no savings. That’s at least 25 million American adults who have no savings at all. And this trend has been made worse by the COVID-19 Pandemic, as a third of Americans say they’re worse off now than they were before 2020..

Saving money can seem like a daunting task, especially if you're living paycheck to paycheck. However, with a few simple changes, you can start saving money fast and improve your financial situation. Here are some tips to get you started:

1. Think of yourself as a bill: After your must-pay expenses; rent or mortgage, utilities, food in the home – put your savings as the next item that needs to get paid, then move on to other discretionary expenses.

2. Make a budget: The first step to saving money is knowing exactly where your money is going. Create a budget and track your expenses so you can see where you can cut back.

3. Cut back on unnecessary expenses: Take a close look at your spending and eliminate any non-essential expenses. This could mean cutting back on dining out, subscriptions, or entertainment expenses.

4. Shop smarter: Take advantage of sales and coupons to save money on groceries and other household items. Consider generic or store-brand items, which can often be just as good as their more expensive counterparts.

5. Reduce energy costs: Simple changes like turning off lights when you leave a room and using energy-efficient light bulbs can add up over time. Unplugging electronics when they're not in use can also save you money on your energy bill.

6. Save on transportation costs: Driving less and carpooling, taking public transportation, or biking can save you money on gas and vehicle maintenance.

7. Cook at home: Eating out can be expensive, so try cooking at home instead. You can save money and have more control over the ingredients you're using.

8. Look for deals: Take advantage of discounts and special offers, whether it's through your workplace, credit card rewards, or online deals.

9. Automate your savings: Set up automatic transfers from your checking account to your savings account so you can save money without even thinking about it.

By implementing these tips, you can start saving money fast and take control of your finances. Remember, small changes add up over time, so don't get discouraged if you don't see immediate results. Just keep working at it and you'll be on your way to a healthier financial future.

What do you call a goal that's always changing? A Wish List.

Wed, 01 Feb 2023 12:07:48 GMT

Stay motivated to keep your goals on track

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If you're using your cat as a heating pad, then we're in a recession

Wed, 25 Jan 2023 13:05:29 GMT

If you're only using your TV as a mirror, then we're probably in a recession...

Recessions are a normal part of the economic cycle, but they can be difficult to predict and even harder to navigate. However, there are several indicators that can signal that an economy is in a recession. In this blog post, we will discuss some of the most common signs that indicate a recession is on the horizon and some of the ways that you may know it's a recession long before The Fed or any economist does.

The usually drabble that is rolled when it comes to deciding we are in a recession -

1. Decrease in gross domestic product (GDP) for two or more consecutive quarters: GDP is the measure of the value of all goods and services produced within a country. A decrease in GDP for two or more consecutive quarters is a strong indicator that the economy is contracting.

2. High unemployment rate: A high unemployment rate is one of the most visible signs of a recession. It means that more people are out of work and are unable to find new employment.

3. Decline in industrial production: A decline in industrial production can signal that businesses are slowing down and cutting back on production. This can be caused by a decrease in demand for goods and services.

If the dishwasher is doubling as a washing machine, then you're probably in a recession...

4. Decrease in consumer and business spending: A decrease in consumer and business spending can signal that people are becoming more cautious with their money. This can be caused by a decrease in income or an increase in uncertainty about the future.

5. Increase in bankruptcies and foreclosures: An increase in bankruptcies and foreclosures can signal that businesses and individuals are struggling to pay their bills. This can be caused by a decrease in income or an increase in interest rates.

6. Decline in stock market prices and a decrease in overall market value: A decline in stock market prices and a decrease in overall market value can signal that investors are becoming more cautious. This can be caused by a decrease in profits or an increase in uncertainty about the future.

If you 401(k) feels like a 201(k), then we're probably in a recession...

7. Increase in the number of delinquencies and defaults on loans: An increase in the number of delinquencies and defaults on loans can signal that people are struggling to pay back their debts. This can be caused by a decrease in income or an increase in interest rates.

8. A decline in the housing market: A decline in the housing market can signal that people are becoming more cautious with their money. This can be caused by a decrease in income or an increase in interest rates.

It's important to note that the experience of a recession can differ between regions and industries. Additionally, not all indicators may be present at the same time during a recession. It's important to keep in mind that the above indicators are just a general guide and should not be used as the only way to determine if a recession is occurring. In any case, it is always good to be prepared and have a plan in place in case of an economic downturn.

Wants vs Needs: Understanding the Difference

183:814504607 (Thomas Alessi) — Wed, 18 Jan 2023 21:32:13 GMT

As Veruka would say, "I want it now..."

In today's consumer-driven society, it's easy to get caught up in the idea that we need to have everything we want. However, the truth is that there is a big difference between wants and needs, and understanding that difference can help us make more informed choices about how we spend our money and live our lives.

At its core, a need is something that is essential for survival. Food, water, shelter, and clothing are all examples of needs. These are things that we cannot survive without. On the other hand, a want is something that is desirable but not essential. A new car, a designer handbag, or a fancy vacation are all examples of wants. These are things that we would like to have, but we can live without them.

It's important to note that there is a grey area between wants and needs. For example, a cell phone can be considered a need in today's society as it is a means of communication and access to information, but it is not essential for survival.

The key to understanding the difference between wants and needs is to be mindful of our consumption habits. By taking the time to think about what we truly need, we can make more informed choices about how we spend our money. This can lead to more financial stability and peace of mind.

It's also important to note that wants and needs can change over time. For example, a luxury car may have been a want in the past, but as one's family expands, it may become a need as it can fit more people.

Ultimately, understanding the difference between wants and needs can help us lead more balanced and satisfying lives. By focusing on our true needs, we can make more meaningful choices about how we spend our time and money, and find fulfillment in the things that truly matter.

Set & Keep Your Financial Goals

183:814504607 (Thomas Alessi) — Wed, 11 Jan 2023 13:08:03 GMT

Steps to take to make your 2023 Financial Goals a Reality!

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Why Do We Make Resolutions?

183:814504607 (Thomas Alessi) — Wed, 04 Jan 2023 20:36:25 GMT

Think about why you want to make that goal...

Every year, millions of people around the world make New Year's resolutions in an effort to improve their lives and achieve their goals. But have you ever stopped to wonder why we make resolutions in the first place?

There are a few reasons why people make resolutions:

1. To improve themselves: Many people make resolutions as a way to set personal goals and work towards self-improvement. Whether it's losing weight, quitting a bad habit, or learning a new skill, resolutions can provide a sense of motivation and purpose.

2. To mark a new beginning: The start of a new year is a natural time for people to reflect on the past and think about what they want to accomplish in the future. Making resolutions can help people feel like they are starting fresh and taking control of their lives.

3. To create a sense of community: Resolutions can be a way for people to connect with others who have similar goals. Sharing your resolutions with friends and family can create a sense of accountability and support, which can help you stay motivated and on track.

4. To feel a sense of accomplishment: Completing a resolution can be a source of pride and accomplishment. Checking items off your resolution list can give you a sense of progress and help you feel like you are making progress towards your goals.

In conclusion, we make resolutions for a variety of reasons, including personal growth, a desire for a fresh start, the opportunity to connect with others, and a sense of accomplishment. Whether you are able to keep your resolutions or not, the act of making them can be a valuable and fulfilling experience.

Financial Goal Tips - Part 2

183:814504607 (Thomas Alessi) — Thu, 06 Jan 2022 15:53:14 GMT

Have Some Fun With Financial Goal Setting

This part 2 of our blog on financial goal ideas to start out the new year and some tips for setting them up. There are so many different financial goals that you can set for yourself sometimes it can be fun to just take a look at all the different things that you can do or choose to focus on different things.

We’re tossing these out in no particular order, in case you are setting goals and wanted some fresh ideas (check out Part 1 for more ideas).

#7 Invest In Yourself

Whether you’ve thought of going back to school or just learning a new skill, we think increasing one’s knowledge is always a great goal to try and set. And it doesn’t necessarily mean going back to school in a traditional sense – could taking some online courses or getting a certification, or maybe just buying a book on a subject you want to learn about. And most importantly, it doesn’t mean spending money. There are plenty of free community classes offered or books at the library (some of you may remember what those actually are), or just doing the research online to gain the information.

#8 The 5 Year Plan

This one is more of a long-term strategy, or if you have already put something in place, then a chance to update or upgrade your original aspirations. The focus is more on larger goals that you would like to achieve on the horizon; change of your current living arrangement, paying off a large debt like a student loan, that type of thing. A good strategy is to build-in smaller goals along the way to help you achieve your 5 year plan.

# 9 Reducing Your Financial Stress

This one goes to the heart of our mission at ARIES Foundation, which trying to help everyone have a better relationship with their money, or in this case, maybe start to repair the relationship you are having with your money. If you haven’t done it already, maybe it’s setting up some or all of your bills on auto-pay. Or talking to your employer about direct deposit. Or your bank about having a portion go directly to an emergency reserve account you have established (see previous goals list). Each of these can be ways to lessen or help lower the stress you are felling regarding your finances.

#10 Get A Will Done

It doesn’t matter who you are, the reality is that you should have a Will: Are you married? You need a Will. Got Kids? You need a Will. Got stuff? Yup, you guessed it, you need a Will. Pretty much anyone with anything needs to have a Will to let those left behind “who’s gonna get your stuff”. And if you have a Will, then make sure it is updated on a fairly regular basis.

Reminder – there are assets that pass without the Will; retirement accounts, life insurance, savings bonds, etc..If you are putting your Will together or just updating an existing one, remember to also review all beneficiary designations on your accounts.

#11 A Side Hustle

Again this is just a thought or idea, but what we have found is that the pandemic has left some of us with more free time than ever before, mainly because we are unable to do a lot of the activities that used to occupy our time. Could some of this newfound free time be used to supplement your current income? Maybe as a way to to help speed up debt reduction or accumulate more savings. There are lots of different types and ways today to add a side hustle or to earn extra income, so if you're creating a goal that requires extra money like paying down debt quicker or building up an emergency fund, then having a side hustle is a great goal to add to your list.

#12 Saving For The Kids

OK, this doesn’t necessarily have to be for your kids, if say, you don’t have children, but could be for any young ones in your life; nieces/nephews, grandkids, etc.. One of the ways you can do this is by opening a 529 college savings plan and depending on where you live this could also mean a tax benefit to you as well. Quick Side Note: If you know a child that is differently-abled or has a disability, then you could add funds to a 529A (ABLE) Account instead (though in the case of ABLE the account would already have to be set up by the child or their guardian

Hopefully you found some of these ideas to be worthwhile. If you ever have questions or need some help, then please feel free to reach out to us, that’ why we’re here: info@ariesfoundation.org

Financial Goal Tips - Part 1

183:814504607 (Thomas Alessi) — Wed, 05 Jan 2022 13:03:51 GMT

6 Ideas for Financial Goals

Financial goal ideas to start out the new year and some tips for setting them up. There are so many different financial goals that you can set for yourself sometimes it can be fun to just take a look at all the different things that you can do or choose to focus on different things.

We’re tossing these out in no particular order, in case you are setting goals and wanted some fresh ideas.

#1 – Getting Rid of High Interest Debt

We here at ARIES Foundation talk about the different ways of paying off debt; some ways work, others don’t. But if we are talking about setting a financial goal to start the new year, then paying off or paying down your debt with the highest interest rate is a good place to begin. We refer to this as the “Math” method. Focus all of your debt payments on the single highest rate first (you pay the minimum on any other debts) until it is paid off. It is a great way to help kick-off (kick-start?) your financial goals this year.

# 2 – Finding & Funding a Big Goal

So what is a big goal? For us it is a goal with a time horizon that is longer than 18 – 24 months. It really can be anything; down payment on a home, an upgrade to your transportation, remodeling your home, or even a dream vacation.

#3 – Create or Increase Emergency

If you’ve watched any of our “Think With A Drink” episodes or read any of our previous blogs then you already know that for us at ARIES Foundation, if you don't currently have an emergency fund we feel that should be Priority #1 on your financial goals list. Now our industry (financial services) stresses that you should have somewhere between 3 – 6 months of expenses in an emergency reserve account. In a perfect world that would be great, but let’s be real, if you don’t have anything set aside today, having several months is going to be a stretch. Start small – shoot for 6 to 8 weeks of expenses first. As it builds up then keep adding to it, but have something set aside for emergency reserves before you head off onto any other financial savings plans.

#4 – Retirement Funding

This can be any number of ways as far as financial goals go; if you are not currently participating in your employer’s plan, then start. If you are participating, then plan to increase the amount you contribute every paycheck. Don’t have access to a retirement at work, then open an IRA and start that way. Don’t need or care about the tax savings from contributing to a retirement account, then open a ROTH IRA instead.

#5 Enjoy Nospendsdays

OK, so we’re having a little fun (say changing Wednesday to Nospendsday), but this one is more of a challenge then a true financial goal. Can you pick out a number days each month and designate them as a no spend day. We feel that trying to get a few no spend days a month is a really good goal and it can help to try to track your spending and keep it under control. Essentially a no spend day is a day where you're not spending any unnecessary money. Clearly if the mortgage or other bills are due, then those get paid, but other type of spending; coffee, snacks, eating out for lunch, etc.. would be a no-go on those specific days.

#6 Know Your Net Worth

We mean from a financial standpoint, not as the truly awesome human being that you are. This can really be thought of as the balance sheet of your financial life; what do you got and how much do you owe. Tracking your net worth as the goes along can almost be like having a scorecard of your overall financial well-being. It is a good way to understand how you are doing and if you are making progress on any of the other financial goals you may have set for yourself.

Why Do Resolutions Fail?

183:814504607 (Thomas Alessi) — Mon, 13 Dec 2021 14:02:33 GMT

This is a subtitle for your new post

Research has shown it is more effective to make resolutions at New Year’s than at any other time of the year.

In fact, one study found that people who made resolutions on

January 1st were 10 times more likely to stick with them 6 months later than

people who made their resolutions at other times of the year.

But now the bad news: even a resolution made at New Year's will

most likely fail, which is why gyms are packed in January, but they start to

clear out by March. Research has found that only around 8% of people can stick

with their resolutions through the end of the year.

So why is this? And, how do we avoid that trap?

Part of the misconception with any planning or goal-setting is that most of us think that in order to make big changes in our lives, that we have to make some sort of really big effort, in order to achieve the goal. Let’s use the example of trying to run a marathon for the first time; you might start out with the plan to run 7 or 8 miles three times a week, that seems kind of proportionate to your goal. In the beginning there will be excitement, which will add to your motivation, so you will do it for the first few weeks. But there comes a time when the excitement wears off and the motivation will start to lag, and running those 7 or 8 miles is going to feel…hard to do and maintain. And what happens? We stop. Or find a reason as to why we can’t continue or go out and do the run today. Being overly ambitious with our goals is one of the ways we fall into the trap of not being able to stick with them and accomplish what we set out to do.

Let’s try and fix this.

The truth is you're much better off if you pick small targets

that you can hit consistently. In James Clear's book "Atomic Habits"

he presents the idea that if you can get just 1% better every day at something,

it will take a minimum amount of effort, but over time the effects will

compound, sort of like the concept of compound interest. The author proposes

the two-minute rule: 'pick something that you can do in just two minutes'. That

way you can't say you don't have the time, or it will take too long to do. Once

that habit sticks, then you can try to extend it and overtime you build up the

momentum to accomplish what you set out to do.

One of the biggest problems that most of us face is that they are often too vague. The most common resolutions every year are to lose weight, exercise more, and to eat better.

The problem is that these goals so nondescript that it's hard to

know if you're making progress, and it becomes really easy to regress into your

old habits. Goal-setting and the science behind it says your goals

(resolutions) need to be specific AND, you need to write them down. People who

write down their goals are 40% more likely to achieve them. That is pretty

significant just by taking that step of putting pen to paper.

The other important piece is being able to track your progress.

It should be in an obvious and very visual way. Whether you have a calendar, spreadsheet, or online tool that you can use, it needs to be something that helps you see that you are making progress to your goal.

Healtcare in Retirement

183:814504607 (Thomas Alessi) — Mon, 06 Dec 2021 16:24:35 GMT

Medicare - It Ain't Free

Planning for healthcare costs in retirement. One of the biggest misconceptions that people may have when it comes to healthcare costs in retirement is about Medicare, specifically with the notion that Medicare is free. Which unfortunately, is not true.

So what should you be aware of when it comes to planning for health care costs in retirement?

First, and most importantly, is that Medicare is not free. You probably have been hearing or seeing the open enrollment ads that say $0 or very low-cost for premiums. These are for private Medicare Advantage Plans, not Medicare Part B. There is a big difference between zero premium (the ads) and zero cost (what you will eventually end up paying).

The costs add up. A fully loaded Medicare Advantage Plan, one that includes a prescription drugs and other supplemental coverages is not uncommon for a retiree to be paying somewhere near $500 or more per month (all-in). Adding that up over the average life expectancy for a couple who's turning 65 years old, that comes out to roughly $387,000 over the course of their retirement.

$387,000!

Let’s break it down a little or at least clear up some of that Medicare confusion. Medicare Part A is free. It covers hospitalization, but with a deductible ($1,556 in 2022). The base cost for Medicare Part B in 2022 will be $172 per month (subject to earnings surcharges). Medicare Part D is for prescription drugs. If you choose an advantage plan (Medicare Part C) then it will include prescription drug coverag). If you choose a Medigap Policy (supplemental coverage) then you will need a Part D Plan.

Those plans that are clogging your mailbox, inbox, TV and radio are Advantage Plans (Medicare Part C) and operate more like your regular health insurance coverage; You will have co-pays, deductibles, and co-insurance costs, all of which add up over time (that’s how we get to the $500/month all-in number).

What can you do?

One of the most efficient strategies available today is the HSA (Health Savings Account). An HSA is not use-it-or-lose-it like a Flex Savings Account (FSA). The HSA allows you to contribute pre-tax, but you do not have to use it. The money grows in the account and if taken out for qualifying reasons then the money is tax-free. And if you can just hold-off tapping into the HSA Account until after you retire, then the qualifying reasons can be to pay for some of those “other” medical expenses in retirement: co-pays, deductibles, co-insurance, etc..And it is all paid out tax-free! So if your employer has an HSA Health Insurance Plan available, then it is definitely something that should be considered when trying to plan out how you are going to be paying for healthcare and assisted coverage in retirement.

Got Questions? Ask Us. We Can Help WIth That!

The ARIES Foundation for Financial Education, Inc is a nonprofit dedicated to the mission of trying to help everyone have a better relationship with their money. Contacft us to learn more: i nfo@ariesfoundation.org

Estate Planning Documents

183:814504607 (Thomas Alessi) — Wed, 17 Nov 2021 19:11:53 GMT

4 Must-Have Estate Documents

Today's lesson is about some simple estate planning documents that it would benefit you to get these done now. We have clients coming in to us, generally in their 60s, and a lot of them turning 65, and talking to us about Medicare and then they subsequently hire us to do some financial planning, and most people either don't have these documents, they don't have them completely, or they certainly did them back when they were had small children and they haven't updated them since that time. Let's talk about these documents, what they are and why you need them. The first and most obvious one that everyone should have is a WILL. If you're to die without a WILL (technical term intestate), that's problematic, see you actually have a WILL, it's just your state that you reside in has has done it for you. A person that dies intestate creates unnecessary hassles and delays, and in some cases the stuff you wanted to go to someone may end up with someone else.

The thing about a WILL is that it doesn’t have to be real

sophisticated, but it does need to specify who gets what, who's going to take

care of my property or sell it, and that kind of thing. There needs to be

an Executor. Once you have that in place, or have an attorney put one in place

for you, then part of the goal is to try and keep as much out of your WILL as

possible. This is done by using properly completed beneficiary

designations, or on the financial accounts using what's called transfer on

death. It does sound a little ironic – make or keep an updated WILL, but then

do everything you can to pass assets without using it.

Now of the 4 documents, only one of them is for after you

die, the other 3 cease in effect upon your death. The #2 document is a (durable)

power of attorney or financial power of attorney, different states and

jurisdictions refer to it as something else. Essentially you are designating

somebody to conduct your business affairs while you are still alive. They

can sit down with the people and signa

contract or pay bills on your behalf. Durable refers to making those

decisions if you become incapacitated. Ideally this person is younger

than you, so that when you're in your 80s they are still able to act on

your behalf.

If you are in your 80s now then we suggest having someone

who is 20 years 30 years younger than you, like family; son, daughter, niece, nephew

or someone that you consider a very trusted person. This should be someone that

you can count on, in a sound mind, that's trusted, that's going to act on

your behalf. You should consider having more than just one person, because the

person you choose may predecease you.

#3 is a HEALTH CARE POWER OF ATTORNEY or PROXY (again depending on the state where you live) A HEALTH CARE POWER OF ATTORNEY or PROXY is different from a regular power of attorney as it just allows a person to make health care decisions on your behalf, like whether they're going to do surgery or not, whether they're going to have some type of therapy, what your living setting is, whether you can stay home and use utilize home health care, or you need to go to an assisted living or a nursing home. Having somebody that has the legal authority to act for health care decisions is extremely important. It does not need to be the same person as your DURABLE POWER OF ATTORNEY, but it can be. This will all depend on you and the people you know, who may be good with these types of decisions and who would be better suited with handling all of your financial details.

#4 HIPAA RELEASE now most people have already done this. “I

already signed that” or “my doctor had me do this”, well yeah, you did, but

that’s just for your doctor, for you as the patient. Are you married? Does your spouse

have the ability to talk to the doctors on your behalf? What about their

doctors? Can you talk to them on your spouse’s behalf? The answer is probably

not. A HIPAA RELEASE gives the person blanket authorization, so if

you were helping one of your parents and bringing them in to the doctor’s

office for a check-up or procedure, then you could go up to the counter to

handle the intake, etc.. your parent wouldn’t have too.

So that's the 4 documents that you need, as we mentioned you

don't need to pay a huge sum of money to have these created. But they are

important and every family should have them.

Got Questions? Ask Us. We Can Help With That!

info@ariesfoundation.org

Dementia Conversations

183:814504607 (Thomas Alessi) — Mon, 15 Nov 2021 15:58:52 GMT

What To Do When A Loved Keeps Asking To Go Home

How To Deal With A Loved One With Dementia Who Asks To Go Home

Maybe you have a loved one with dementia who lives in a nursing home, or an assisted living community, or a group home and they are constantly asking you to bring them home. You may also be in the situation where your loved one lives with you and they're constantly asking you to leave or go home, or it's even possible that your loved one with dementia is actually still living at home, yet continues to ask to go home. If any of those situations sound familiar to you, then it's important to understand that your loved ones requests to go home often have more to do with fear, anxiety, frustration, and discomfort rather than the literal translation of them wanting to go home.

A request to go home often times has more to do with a feeling, rather than a place, so the first word of advice is to please try not to take it too personally. If your loved one is living with you and they're constantly asking to go home, we know this can be unsettling and hard to hear, but often it is a feeling that your loved one is trying to convey rather than an actual place your loved is seeking to get to.

Making the decision to put your loved one in a facility or home of any type comes with a lot of effort, a lot of thought, and when your loved one's asking you to go home every time you visit or every time you call, that can be especially heartbreaking. It also comes with a lot of guilt, which can cause a family to second-guess whether or not they made the right decision.

So What Can You Do?

Try to explore your loved ones request to go home a little bit deeper. Consider asking your loved one questions;

· tell me about your home?

· what's your favorite part of your home?

· what you do in your home?

At some point in the conversation you're going to have find a window of opportunity to try to redirect them, so if your loved one with dementia starts talking about how they really loved gardening at their home, then you can start talking about what kinds of things did they like to garden? Flowers or vegetables? What was their favorite snack or drink while they were gardening, and then eventually lead them around to giving them a snack or drink, so that you're taking them off the topic of moving to a different place. You will then need to gently redirect the conversation onto something else.

The conversation might go something like this, if say, your loved says they missed gardening, then you might start the conversation with:

“What did they like to garden? What are their favorite snacks and vegetables, speaking of snacks, let's have a snack right now”

Then give them a snack. This approach may even give you some ideas and insights into what specifically they're missing from their home, if in fact they really are missing the actual home, so if your loved one starts to bring up how they miss gardening this might prompt you to bring over an indoor pot of herbs, or an indoor pot of tomato plants, something that the two of you could grow together. It’s important to keep your ears perked for anything your loved one mentions that you might be able to incorporate into their current living environment to help make them feel more comfortable.

What Not To Do

Whatever you do, you want to avoid the pitfall of trying to explain to your loved one all of the reasons why they're not living at their home, or worse, trying to convince them that they are at home, but they are not understanding that they are home. These type of actions usually tend to lead to arguments or disagreements, and that is absolutely what we are trying to avoid. You want to try to redirect them. Explore with some questions instead. Try to get behind some of the anxiety and fear that might be causing them to want to go home in the first place, which leads to another tip, and it has everything to do with comfort.

Sometimes there is nothing that can be done about where your loved one is living. Your loved one might have to stay living exactly where they are. Instead of listing off all the reasons why they have to stay there;

· it's too dangerous

· there a safety risk

· they can't live alone

· their house was sold

Instead you want to try to focus on the emotion behind their request; loss of control, feeling scared, having to deal with an unfamiliar environment, or just not being comfortable with any of their surroundings. These are the things that we're going to try to focus on helping them, deal with;

For example, instead of saying your house was sold - you might try instead saying something like – “you miss your home I wish things were different, but I'm so happy to have you here with me.” “I like having you around”, or if you know or you think that they're asking to go home because they're scared you can say something like, “I know it's scary, but I'm going to be right here with you.” Then knowing what you know about what soothes your loved-one, try giving them something to soothe them; a snack, a stuffed animal, a dress, or even a simple hug.

Remember It’s All About Them

This is focusing on how the request to go home has a lot more to do with feelings of anxiety, fear, confusion, and a lack of control rather than the true literal message of wanting to go home. Remember your loved ones discomfort probably is rather a reach out than a literal request to go home. Exploring with your loved one what going home means to them and not being afraid to get into that discussion about their memories of home, can eventually give you a goal to redirect the conversation, and may even give you some ideas of how to make their current living environment a little more reflective of what that home would be like for them.

Finally we discussed how comforting your loved one by responding to their emotions rather than their requests and offering them something to soothe them can be a nice approach to handling this request. Notice how none of the options have anything to do with listing off your rationale and reasoning for why your loved one's living where they are, or for explaining to your loved one that their memories is so bad they don't realize that they are living at home. These kind of explanations are just going to lead to more arguments and frustration, both on your part and with your loved one.

It's An On-Going Conversation

Understand that your specific responses and your approach to your loved one asking to go home is something that is likely going to need to change over time. You are probably going need to mix it up as your loved ones disease progresses, so just keep an open mind, be creative and try different approaches. Try to never take the requests by your loved one to want to go home personally. We know that it can feel hurtful. Realize that even with having these approaches, it doesn't mean that your loved one's never going to ask to go home again. Dementia by definition oftentimes comes with pretty significant memory impairment, so just because your loved one asks to go home again, it doesn't mean that your way of responding to them isn't working. It just means that they just might need to be comforted again.

Having These Conversation Is Not Easy.

Need Help? Reach out to us.

info@ariesfoundation.org

Life Insurance Q & A on Term Coverage

183:814504607 (Thomas Alessi) — Wed, 10 Nov 2021 18:42:12 GMT

What Is Term Insurance and How Does It Work?

What is Term Life Insurance and How Does It Work?

Term life insurance, which is sometimes referred to as pure life insurance ensures a payment of a death benefit, if the policyholder dies within a specific period of time. If the agreed upon term period expires and the policyholder is still alive, then no death benefit is paid. Should the policyholder discontinue the policy (not pay the premiums) then the coverage will also expire, which would mean that no death benefit would be paid.

Who is term life most suited for? Young parents, who may be eligible for large amounts of coverage for a reasonably low cost. People seeking temporary life insurance as a placeholder until they are able to decide how much permanent coverage should be in place. The premiums you pay for the term life insurance are mainly based on the value of the policy, which is also known as the payout amount or the death benefit. Some factors that directly influence premiums;

Age
Health
Gender
Medical History
Occupations and Hobbies
Family History
Driving Record

Most term life insurance policies expire before paying the death benefit, in fact, the stat is less than 2% of all death benefits out last year were from term life insurance policies. So the overall risk to the insurance company is lower than that of a permanent life insurance policy. However, if do you die during the agreed upon term of the insurance policy then the insurance company will pay the death benefit. This is also otherwise known as the face value of the policy to the beneficiaries of your policy. A beneficiary can be a person or an entity (trust or charity). Upon the death of the insured the benefit is paid as a non-taxable death benefit to the person(s) or non-entity named and it may be used by them for any purpose. With families the funds are usually available to help settle any outstanding consumer or health care debts, funeral costs, or even pay off a mortgage debt

One thing we stress to all policy holders is to make sure that you have informed your family or advisors about the term life insurance policy and who to contact in the case of your passing away, so they can access the death benefit available to them. A death benefit may remain unclaimed, if the beneficiaries do not have clear instructions on how to make a claim or who to contact to access the dollars available to them. Remember - if you die after the term insurance has already finished then there will be no payout for the beneficiaries. Term life policies have no value other than the guaranteed death benefit

Term life insurance comes in several flavors including convertible, increasing, mortgage and return of premium, each one of these types targets a specific need for potential customers:

CONVERTIBLE TERM allows the term insurance policy which typically has a limited number of years to be converted to a permanent life insurance before it expires. It does not require the policy holder to do a medical exam nor are any health conditions considered when the term policy is converted. A typical term life policy allows the insurance company to refuse to renew your coverage at the end of the policy's term or require a medical exam to continue the coverage.

INCREASING TERM allows the increase of death benefit as the time goes forward the premiums do increase with increasing the death benefit but it allows the insured party to pay lower premiums early in life when they have a lot of bills and expenses then increase it when they have a better financial standing the other benefit of an increased term is that the policyholder does not need to qualify for another policy at an older age to get a higher death benefit

MORTGAGE TERM which is sometimes referred to as the decreasing term is the exact opposite of the increasing term it's done in a way that the death benefit amount decreases over time this is to match the death benefit with the decrees of the policy holder's outstanding mortgage amount the idea is that you don't need as much life insurance if you have less mortgage debt but the word decreasing may deceive some people as the premiums are smaller than the normal term insurance but do remain constant over the entire term even as the death benefit declines

RETURN OF PREMIUM (ROP). If you live to the end of the term then the insurance company will pay you back all of the money you spent on the insurance. This sounds like a good deal, since we already explained that less than 2% of term policies pay-out a death benefit. However, there are a few warning signs to look at before deciding on this type of policy;

1) The premium tends to be much higher than in a standard term policy

2) If you decide to cancel the coverage before the end of the term, more than likely there will be no money refunded to you

3) There are very few companies that will write this type of insurance anymore, so getting comparison rates or options can be limiting.

Let's go over the main points we mentioned- Term insurance is a type of life insurance that provides coverage for a specific number of years. If the insured dies within that specified period, then a death benefit is paid to the policy beneficiary(s). If the policy term expires while you are still alive then no death benefit will not be paid. There are several types of term insurance policies that provide different benefits based on the different needs of potential policyholders.

Got Questions? Ask Us. We Can Help With That!

Want to see if you can coverage without going through all that “icky” stuff; needles, blood work, etc…Just click on the link below and answer a couple of questions and you’ll find out how easy getting life insurance should be:

https://agent-quote.bestow.com/b54a592c

Life Insurance Q & A

183:814504607 (Thomas Alessi) — Mon, 08 Nov 2021 16:38:46 GMT

5 REASONS TO CONSIDER HAVING LIFE INSURANCE

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Why Credit Matters

183:814504607 (Thomas Alessi) — Wed, 29 Sep 2021 12:09:56 GMT

Why Having Good Credit Is Important

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Why Credit Matters

183:814504607 (Thomas Alessi) — Mon, 27 Sep 2021 11:30:55 GMT

Ways To Build Up Your Credit Score

Does having a higher credit score really matter? Well, let's take a look at some of the things having a higher credit score could do for you.

By having better credit, then it is more likely that not only would you be likely to get approved for the following, but also it may impact how much you would be paying for:

Mortgage
Apartment lease
Auto loan
Personal loan
Credit card

Here are some suggestions and ideas that you can take to start improving your score.

1) Pay All Bills on Time

There is a formula that goes into calculating a credit score, but of all the factors your payment history carries the most weight. This represents how consistently you pay your bills on time, and being late even a few times can drop your score.

Note: If you have outstanding debt, then it is important that you make every payment by its due date. Staying current on your obligations helps raise your score, even if you can't get your debt paid off for a while.

But it's not just your debt payments you need to stay current on. Pay your "must-pay" expenses; rent &utilities for one, but if you medical bills, and then any other expenses that could go into collections if you ignore them or fall behind.

2) Remove Errors From Your Credit Reports

You have three different credit reports — one from each major reporting bureau (Experian, Equifax and TransUnion). But those credit reports may not be consistent, and may not all be correct.

Credit report errors aren't uncommon.

Whether you had an old debt that got squared away, but still shows as outstanding, or weird circumstances like someone with the same name having a debt that gets associated with your history (it happens!).

It's important to check your credit report for errors and resolve any you find. Unfortunately you may have to go to each credit bureau separately to get mistakes corrected. The way it works is you report an error and they let you know how to remedy the problem. Sometimes it may be with the credit bureau directly, but in other cases, you may need to reach out to the original creditor. You're entitled to at least one free copy of your credit report per year from each bureau, so take advantage of that.

3) Pay Off Existing Credit Card Debt

The average U.S. consumer had $5,525 in revolving credit card debt as of 2021. If your credit card balances are in that ballpark, they could be destroying your credit score.

A big factor in calculating credit scores is utilization, or the extent to which you're using your available credit. Your utilization ratio needs to be 30% or below to improve your credit score. If you owe close to $5,500 on your credit cards and your total credit limit is $10,000, that's a utilization ratio of over 50% — not good.

To improve that ratio, you need to put an action plan in place to pay down the debt. At ARIES Foundation we talk about using 1 of 2 methods; Math* or Momentum*

Another option that might make sense is consolidating your credit card debt that could make it a lot more affordable to pay off. A balance transfer could make sense depending on the situation (0% APR for a period of time).

You can also look at consolidating your debt via a personal loan. With a personal loan, you can borrow money for any reason. In this case, you'd borrow enough to pay off your credit card balances, then repay your personal loan in installments. A personal loan generally charges less interest than a credit card (the exception is a 0% introductory rate card, but those intro rates only last for so long). It also won't count toward your credit utilization ratio, because it's an installment loan, not a revolving credit loan.

4) Piggyback on Other People's Good Credit

Another factor in calculating a credit score is length of credit history. In this regard, being younger can work against you. If you've only been working and paying bills for a handful of years, you won't have the same credit history as someone with accounts in good standing for a decade or longer.

On the other hand, you can ask to be an authorized user on a family member's credit card that's been open for many years. That way, you benefit from that person's long-standing credit history.

Bottom Line: Don't Ignore Your Credit Score

Got Questions? Ask Us. We Can Help With That.

The ARIES Foundation for Financial Education, Inc is a nonprofit dedicated to the mission of trying to help everyone have a better relationship with their money.

Visit our website: www.ariesfoundation.org

Check out our videos on Youtube : www.youtube.com/channel/UC8XA1to8IHXsqsrGfWfRaHA

*MATH & MOMENTUM are 2 paydown strategies that the ARIES Team utilizes to teach individuals different ways to take control of your outstanding debt.

Want to learn more about debt control then shoot us an email: info@ariesfoundation.org

Social Security Issues

183:814504607 (Thomas Alessi) — Mon, 27 Sep 2021 10:56:50 GMT

Are There Fixes for Social Security?

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Student Loan Crisis

183:814504607 (Thomas Alessi) — Mon, 20 Sep 2021 13:12:33 GMT

How Did We Get Here & Who's To Blame?

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Can I Work & Collect Social Security?

183:814504607 (Thomas Alessi) — Mon, 20 Sep 2021 13:12:16 GMT

4 Scenarios to help you understand working & collecting

When it comes to Social Security benefits one of the top questions that we get asked at the ARIES Foundation is “Can I work and still collect Social Security?”

On the face of it, it would seem like working while collecting social security should be something that anybody would be able to do, after all most people have contributed more to social security then they have their own 401k retirement plan. However, the social security administration does put restrictions on how much you can earn while collecting your social security benefits. There are a lot of complexities and rules on what you can and can’t do, but I think we can break it down into 4 concepts for working while collecting social security. the four points of the compass as we call them when you work and you collect social security

Earnings Limits

Type of Income Generated

What Happens the Year you File

What Happens at Full Retirement Age (FRA)

EARNINGS LIMITS The social security administration sets earning limits for any year you are working and collecting prior to your FRA ($18,960 in 2021), if you exceed these limits you have to give back part of the funds that you've received at a clip of $1 back for every $2 earned over the limit. In the calendar year of your Full Retirement Age (author’s note: FRA is 67 for anyone born after 1960) that number jumps to $50,520 and the penalty is $1 for every $3 over the limit. If you wait to your FRA to collect then there are no earnings limits. You can earn as much as you want and still collect your full benefit amount.

TYPES OF INCOME

What counts as earnings or income; wages, when they're earned as an employee, if you own a business, then the business earnings when they're received. Note: if you make a contribution to a retirement plan and that amount is included in gross wages that also counts as income for the purposes of the limits. What isn't counted? Government benefits , investment earnings, interest income, pension payments, annuity payments, and capital gains from the sale of securities.

4 SCENARIOS

Scenario #1 - you continue to work full time while collecting social security
Scenario #2 - you're working part time
Scenario #3 - what happens in your year of full retirement, if you have been receiving benefits for a while certainly before the year of full retirement
Scenario #4 – how does it look in the year of full retirement, if you file during that year

Let’s assume that you are currently age 63 and you started taking social security last year at age 62.

Scenario #1 -You earn $30,000 a year and your cap is $18,960 per year, so

you're over your cap. The overage is $11,040 (30,000-18,960). Since you have

attained FRA yet, your benefits are reduced by one dollar for every two dollars

earned over that limit. Your benefits will be reduced by 50% of $11,040.

Remember it’s $1 for every $2 over the limit.

$11,040/2 = $5520/12 = $460.

$460 is how much will be deducted from your monthly social security benefit as a penalty.

Ex. If your monthly benefit was $1500 - $460 = $1,040 is what you would receive.

So what happens when you first file for your social security benefits. Using the example above let's add the following assumption – you turn 62 on the 27th of August.

You begin drawing your benefits on the 1 ^st of September,

again using an annual salary of $30,000 per year then you would have earned

approximately $20,000 so far. The earnings limit is $18,960 (monthly that

equals $1580) First, any earnings prior to your starting benefits Do Not Count

against you, but you still have to do some math. Convert your limits to a

monthly basis – that’s the $1580, then your monthly income ($30,000/12 =

$2500). So you end up over the limit by $920, so the penalty will be applied to

your monthly benefit.

Scenario #2 - instead of working full time you change to a part-time job, but the rest of your details remain the same; age 62, born on 8/27.

You start drawing benefits starting on 9/1 but because you have

moved to a part-time position your income is now $1500/month. For any month

that you earn less then the monthly limit ($1580) you are eligible to collect

all of your benefit amount. If you happen to work more in a month for whatever

reason, seasonal, holidays, etc..then if you be over the limit for that month.

Scenario #3 – You are collecting in the year of your FRA. For

this example we’ll say that FRA is at age 66. You have earnings of $92,000 and

let’s make your date of birth 11/1. And you started collected at age 65 and

have a benefit of $1580 per month.

The annual earnings limit is now $50,520. Again, break it down

into a monthly amount ($4,210). Do the same for your monthly earnings ($7,667) The

overage is $7,667 - $4,210 = $3,457. But because you are in the year of your

FRA your benefits are reduced by $1 for every $3 (instead of $2) of the monthly

limit. The calculation will give you a reduction of $1,152 on your monthly

benefit.

$1,580 - $1,152 = $437 social security benefit in the year of FRA

Scenario #4 – Obtaining FRA. Once you reach your Full Retirement Age (born in 1964 it is 66. Born 1955 -1959 add 2 months for each year away from 1954. Born 1960 or after it is 67) there are no limits on your earnings. You can earn as much as you want and still collect your full benefit amount.

Now there are other factors that come into play besides penalties, taxes and surcharges that can affect your benefit amounts as well, but that we will discuss in our next blog post.

Got Questions? Ask Us. We Can Help With That!

Reach out to us at info@ariesfoundation.org

Or on Instagram: http://instagram.com/aries4financial

Check out our Twitter Page: https://twitter.com/aries_education

Subscribe to our Youtube Channel: https://www.youtube.com/channel/UC8XA1to8IHXsqsrGfWfRaHA

Social Security Taxation

183:814504607 (Thomas Alessi) — Wed, 01 Sep 2021 15:04:39 GMT

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Social Security Claiming

183:814504607 (Thomas Alessi) — Mon, 30 Aug 2021 20:42:13 GMT

Step-by-Step to get your My Social Security Account

How do I get a My Social Security Account?

It's very important in the world of senior benefits to have access directly online to what your benefits are going to be in the future, even if you've not yet applied, and to be able to do things like change your direct deposit information, request a new social security card, or sign up for Medicare Part B. All of these things can be done on your My Social Security Account.

We’re going to walk through step by step how to sign up for your social security account online and it may seem a little tricky and a little intimidating, since the Social Security will pull up details form your credit report to ask you about – it’s all in the name of protecting your identity, but still it does a little scary when they ask you “what color was your 2002 Toyota Camry (or something similar). Where it sometimes gets confusing is you may be like “I never had a 2002 Camry” well there is an answer (none of the above) and you can move on. All the system is trying to is validate that you are who you say you are, so that in the future they will know that it’s you signing onto your My Social Security Account.

Obviously, the reason for this is that the worst thing that could ever have happen was for someone to be able to access your My Social Security Account and make changes without you knowing. That is why it is important to not only go through the process yourself and validate your account, but to also add the extra layer of security as well (more on that later).

Even if you have not begun to access your Social Security yet, you can still use the website to get estimates of your future benefits and verify the accuracy of your earnings. Note - verifying your earnings is very important because Social Security bases your future benefits on your lifetime earnings. Sometimes it is necessary to request a replacement Social Security card which you can do through the site without having to visit a local Social Security office. Once you start receiving benefits you can easily use your account to manage and get instant proof of your benefits:

• you can change your address and phone number

• start or change your direct deposit information

• request a replacement Medicare card

• get a copy of your SSA 1099 for tax purposes

To create an account you must; be at least 18 years, of age have a Social Security number, a valid US mailing address, and an email address. In 2017 Social Security implemented an additional step to sign into your account- a one-time security code to your cell phone or email address to complete your sign-in. Note: if you don't have an email account you'll need one before you create your my social security account.

To get started you visit the My Account at Social Security website (https://www.ssa.gov/myaccount/), then select sign in or create an account. You should the Terms of Service page next and after reading this information select the box that says “I agree” to the Terms of Service and select next to continue.

The next page is where you enter your first name, middle initial, and last name as shown on your social security card. Then just follow along with your social security number, date of birth, home address and phone number. Important - add an extra level of security to your account by selecting the option “yes”, which prompts you to choose an extra security verification option. Select next to proceed to secure your identity. Again, you will be asked several personal questions to which only you should know the answer (see previous details) Once you have answered the questions you move on to creating a username and password and provide your email address.

To create your username it must consist of 8 to 20 letters and/or numbers and it cannot contain your social security number or your full name. The password must be a minimum of 8 characters and contain at least one uppercase letter one lower case letter one number one symbol and must begin with either a letter or a number. You will then be given an opportunity to select password reset questions to help you, if you forget your username, or password in the future. The last step in this process is to choose how you want to receive the one-time security code. It will be sent each time you sign in, so you must provide a cell phone number that can receive text messages, or use the email address you registered to receive the security code. Hit the “next” button and the code will be sent to you (either text or email whichever method you choose) You have 10 minutes from the time you hit “next” to enter the security code in the box on the screen that says enter the security code “here”.

Once you've completed all of these steps you'll receive a message that says congratulations you successfully created an account. A reminder – every time that you try to sign in you will use two steps to access your account. You must enter your username and password and then you must enter the security code that Social Security will send to you…It is a New Code Every Time!

Got Questions? Ask Us. We Can Help With That!

The ARIES Foundation for Financial Education, Inc is nonprofit dedicated to helping everyone have a better relationship with their money. Visit www.ariesfoundation.org or email us i nfo@ariesfoundation.org .

New Scams in 2021

183:814504607 (Thomas Alessi) — Wed, 18 Aug 2021 13:18:40 GMT

Meet the New Scam, Same as the Old Scam

NEW SCAMS IN 2021

It certainly seems like that the pandemic and shutdown did nothing to slow down the con artists and fraudsters out there, in fact, it feels like there are more and more scams popping up every week. Let’s take a look at some of the ones that have been showing up on our radar recently.

CAR WRAP SCHEME

This one at first glance seems legit after all there are people driving around with ads on their cars all the time, but really this is another take on the “fake check scam”. What will happen is you'll either see some kind of job posting, or an email might come into your box, or you may even see an advertisement for something that claims to be able to pay you to just drive your car around. And the idea is that you'll answer this ad and they'll say, "Yeah, all you have to do is put an advertisement car wrap logo on your car, drive around like you normally would, and we'll pay you several hundred dollars a week for that.”

How It Works - They send you a check (it’s bogus) and tell you to deposit it into your account and then use the money to purchase the car wrap from their “specialist”. The payment will be done in either a wire transfer or a money order, something that is not reversible. Once the bank realizes the check is fraudulent they will reverse the money, which means you lose the deposit plus whatever was sent to the specialist.

Alert - Always be wary of any company that says, we're going to send you a check and you go and use that to buy something.

FAMILY IN TROUBLE SCAM

While these have been around for awhile, it seems that they are popping up more and more here in 2021. In this con, you'll get a phone call claiming to be a relative of yours, and they're in some kind of emergency that requires you to give them money.

This is often like they're away, as in out of town on vacation and they had a mishap or just got arrested.

How It Works – The person calling claims to be a friend or a relative and in they need money. The most common one is help to make bail. Usually the target is an elderly person and the scammer will pretend to be a grandchild. The pitch, "Oh grandpa, grandma, I'm in jail. I need a bail," followed by, "Please don't tell mom and dad. They'll be so mad. Please just send the money over now, and I'll sort it out and then tell them." It's always very urgent. They need the money now. Maybe the hearing is tomorrow and they need the money for a lawyer, or they need to get out of jail now, because it’s scary being in jail, that sort of thing. And while you think I would know my grandson or granddaughters voice, these scammers are more clever than you may think. I saw one post where someone questioned why they sound different. They're like, "You don't sound like my grandson." And they said, "Oh, well, I broke my nose while being arrested, and that's the reason I sound different."

Alert – Always good practice not to answer any phone call from a number you don't recognize, just let it go to voicemail (if it’s important they’ll leave a message) but at least verify the story somehow before wiring any money.

CUSTOMER SUPPORT SCAM

This one specifically involves 2 major corporations; Apple & Amazon and is a take on the fake order confirmation scam you may have heard of in the past.

In the past this was a phishing thing; you’d get an email alert about an order to your account and in order to cancel you need to click here. This takes the concept up a level – now it’s done with robocalls. The message may be, "This is Amazon support, and this is alerting you to an unauthorized purchase of an iPhone for a thousand dollars. Press 1 to talk to customer service to cancel this." And of course, if you pick up and you're like, "Oh, I didn't order that," so of course you press 1.

How It Works – The person will be super supportive in trying to help you get the order cancelled, but of course all they are trying to do is get your credentials. "Oh, to cancel this, we need your original credit card info," anything like that. But just note that it's a scam.

You can listen to a sample audio clip from the FTC website here , so you can an idea of what this might sound like. An unauthorized purchase of an iPhone XR 64 gigabytes for $749 is being ordered from your Amazon account. To cancel your order or to connect with one of our customer support representative, please press one or simply stay on the line. So that's just one example for Amazon, but apparently Apple is another target scammers are using.

Alert - If you get one of these phone calls, never call the number that they tell you, or press the contact button – Just Hang Up! Because if they hear you press the number, then they know now that it's a live working number and then that may be added to a list and you'll start getting even more and more spam calls. If you are concerned it might be real then we suggest you go to Amazon or Apple's official website and contact them through the official number listed on the website, not some number that a phone call gives you, because it could be fake.

PACKAGE SCAM

This is a new take on the fake order scam mentioned earlier, except in this case the scammers are actually sending out text messages, which may be personalized using your name (which they obtain from data list brokers) and it will go, "Oh (your name) you have a package waiting from USPS or from Amazon, click this link to find out more and how to receive it.” But then if you do click the link, it's going to take you to what looks like a login page for Amazon, Apple or whoever’s website the package is supposed to be from.

How It Works - It's a phishing page and they're going to immediately steal your credentials and then use it to order from your real account and to try and take your money that way.

Alert – Don’t click the link. Even if you know it's a scam and you're curious what the website's going to look like, don't do it, because they definitely have trackers on those links to know who is clicking the links and who's not. And the next thing you know is that you will be getting more & more e going to start to get even more text message spam because they know you're a working number.

INCOME SCAMS

Due to COVID and the shutdown over the past year these scams have become much more prevalent, so much so that the FTC has started a new campaign to spread awareness, called Operation Income Illusion, to let people know that these scams are becoming more common. These scams come in all sorts of shapes and sizes. Note – the car wrap scam we wrote about earlier was basically a form of this. Usually it is an ad, or email, or even a posting on social media about “Work From Home”. Regardless of the pretext they use to get your attention, they will try to take your money in a variety of ways.

How It Works – Usually it’s based on the fake check scam we described earlier. The job may require you to buy something in order to do the work – let’s say it’s a specific type of printer. Either you’ll be asked to buy it upfront from their supplier, or worse, they’ll send you a check to cover the cost, either way you never get anything out of it.

Alert – If they are making claims that they will reimburse you for your purchase or wanting you to buy from a specific vendor, then beware. It’s best to do a little more due diligence before getting involved with the company.

STIMULUS SCAMS

Scammers are relentless and the coronavirus relief and stimulus checks seemed to open more ways for them to try and take advantage of people.

How It Works - A common tactic is for scammers to contact you, whether it's email, text message, phone call, whatever, and they'll say, “Congratulations your eligible to get your stimulus check of $XXXX, whatever. Here’s all you need to do to get your claim…”

And then they’ll go about trying to steal your money or your ID in any number of ways. An example might be, "Hey, your coronavirus check is ready. We just need your bank information to deposit it. Maybe your bank account number or your bank login." Or something like, "Did you know to receive this round of stimulus money you're going to have to sign up to even be eligible? We noticed you haven’t signed up yet.” And then they give you a link to some website, of course, that is going to either steal your information and use it to steal your identity, or they might, again, steal your bank login, stuff like that.

Alert - If you're curious about whether or not you're eligible to get some kind of stimulus or when, it's always best to just stick to official websites, either your local state government or the official IRS website for details. The government isn’t going to call you about your stimulus check!

WHAT SCAMS HAVE YOU SEEN?

Reach out to us at the ARIES Foundation for Financial Education, Inc and let us know if you have been approached with any of these or other scams infor@ariesfoundation.org

Protecting Your Identity

183:814504607 (Thomas Alessi) — Mon, 16 Aug 2021 14:13:14 GMT

10 Rules to help protect your identity

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Get More FInancial Aid

183:814504607 (Thomas Alessi) — Mon, 09 Aug 2021 14:33:34 GMT

5 Steps TO Getting More FInancial Aid

As the price of a college education continues to soar, most American families find themselves unable to save or put away enough money to meet the rising cost needs. Consider that the average cost for tuition and fees at an out-of-state public university is now nearly $26,000 per year, according to The College Board. For private schools, tuition and fees average $36,000.

For students who haven't earned a scholarship, then need-based financial aid can play a vital role. The key to receiving a generous package rests largely on the Free Application for Federal Student Aid form, better known as the FAFSA. This is the document that schools use to determine federal aid, including Federal Direct Loans and Pell Grants. Many institutions also use it to decide whether students are eligible for any of their own scholarship funds.

Much of the time, parents don’t give the FAFSA much thought before the deadline. By understanding how the form works, however, you’ll have a better chance of meeting the aid criteria. It’s also important to look beyond the form itself and realize that finding the right school can be just as important to your aid prospects as what you put in the document.

Here are some basic steps for ensuring that you get the best combination of grants, loans, and work-study programs possible.

1. DON’T DELAY

Perhaps the easiest move you can make is to fill out the FAFSA as early in the year as possible. That’s because many federal loans and grants are awarded on a first-come, first-served basis. Even if the university has a much later deadline, it helps to submit the document as soon after Oct. 1 (the new, earlier FAFSA filing date) as possible.

Don’t put this off as waiting can hurt your chances of obtaining any available funds.

2. REDUCE TAXABLE INCOME

The FAFSA is the main tool universities rely on to determine the applicant’s “expected family contribution” (EFC)—essentially this is the money that the college or university estimates the student and the student's parents can put toward tuition and other expenses. All else being equal, a lower EFC will result in greater need-based financial aid.

When calculating the family’s portion of expenses, the biggest factor is its income level. Needless to say, it helps to keep the amount of taxable income as low as possible in the base year.

Author’s Note: In part due to the 2021 Consolidated Appropriations Act, beginning in July 2023 the term "student aid index" (SAI) will replace EFC on all FAFSA forms. In addition to some changes in the way the SAI is calculated, the change attempts to clarify what this figure actually is—an eligibility index for student aid, not a reflection of what a family can or will pay for postsecondary expenses.

How can a family accomplish this feat without hurting itself in the short term? One way is to postpone the sale of stocks and bonds if they generate a profit, as the earnings will count as income. That also means holding off on early withdrawals from your 401(k) or IRA. Besides, ask your employer if you can defer any cash bonuses to when they won’t have a negative impact on your child’s financial aid.

3. BETTER IN YOUR NAME THAN THEIRS

If you’ve been putting money away for your children’s college education over the years, you’ll be in much better shape when they graduate from high school. But all that saving does have a small catch—some of that money will be included in your EFC. One important aspect to realize about the FAFSA is that schools anticipate students will contribute more of their assets toward higher education than parents will.

Consequently, your application will fare much better in most cases if any college savings accounts are in a parent’s name. So if you set up a Uniform Gift to Minors Act (UGMA) account for your child to avoid gift taxes, you could be hurting your chances of need-based aid. You’re often better off emptying these accounts and putting the money into a 529 College Savings Plan or a Coverdell Education Savings Account. Under current rules, these are both treated as a parent’s asset, as long as the student is classified as a dependent for tax purposes.

4. DON”T ASSUME – FILE ANYWAY

Having a substantial family income doesn’t always mean that financial aid is beyond your reach. It’s important to remember that the needs-analysis formula is complex. According to the U.S. Department of Education, factors such as the number of students attending college and the parents' age can affect your award. It’s always a good idea to fill out the FAFSA just in case.

Keep in mind, too, that some universities won’t offer their own financial aid, including academic scholarships, if you don’t fill out the FAFSA first. Don’t assume that FAFSA is only for low- and middle-income families often closes the door to such opportunities.

5. IT’S MORE THAN JUST FAFSA

While the FAFSA is a vital tool in determining need-based aid, some families actually put too much emphasis on the document. The fact is, most financial-aid counselors have the authority to use resources as they see fit. The expected family contribution usually plays a big role, but it may not be the only factor they’ll consider.

The more an institution values the student’s skills and experiences, the more likely it is to woo them with an attractive aid package. The key is to look for colleges representing a good fit and reach out to the financial aid office about your child’s prospects for grants or federally subsidized loans.

GOT QUESTIONS? ASK US. WE CAN HELP WITH THAT!

Reach out and ask for our guidebook on “ Save 1000s on The Cost of College” to see how we might be able to help you and your child reach their higher education goals.

Money Personalties

183:814504607 (Thomas Alessi) — Wed, 04 Aug 2021 17:37:42 GMT

At ARIES Foundation our mission is trying to help everyone have a better relationship with their money, however when it comes to establishing financial health, one thing most people fail to consider is their money personality type or their approach and emotional responses to money.

Part of our concept is the idea that we all have our own beliefs and emotions when it comes to dealing with money, and that these feelings are mostly shaped by our individual life experiences (e.g., passed down from our parents or influenced by our current situations). Most people will share traits from a combination of many types, not just one, but usually there is one trait that is more dominant or the driver for most of our money behaviors.

Identifying which type(s) you fall under, and understanding the pitfalls of each, can significantly improve your relationship with money. It can help you do things like spend less on impulse purchases, be better about budgeting, invest wisely and ensure you are on the way to achieving your financial goals.

1. Money Pack Rat

Some signs that you might have this trait:

• You constantly put money away, sometimes with no actual end goal in mind.

• You believe saving money is the only way to feel more secure in life.

• You’re very frugal. (Friends will often come to you for advice on which finding low cost items, which point cards are worth it, or when to buy plane tickets at the lowest price.)

Pitfalls : Some Money Pack Rats are so afraid of losing money that they go their entire lives without spending any of what they worked so hard to save. For example, they might choose to skip out on hobbies or activities that could bring them happiness and purpose.

ARIES advice : It’s all about moderation; learn to find a balance between saving money and enjoying life. If you have a plan for your future and how you can use your savings to get there, then it may give you the freedom to be able to enjoy some of your money today.

2. The Spendthrift

Signs you might be a Spendthrift:

• You tend to spend money on things you don’t necessarily need.

• You have an outgoing personality and love treating people to something special, sometimes for no particular reason.

• You are an emotional spender, when in distress, your solution is to spend, especially for immediate gratification.

Pitfalls: Even if they have large amounts of debt, a Spendthrift will often continue going on shopping sprees. They sometimes will try to hide large purchases from friends and family. Most times they are spending beyond their means, which can put them at risk of bankruptcy and other debt proceedings.

ARIES advice : Creating a budget plan will help you see things from a different perspective. Remind yourself that spending without really needing (emotional buying) often means we are sacrificing money for future savings, things like saving for retirement or education or even paying off debt.

3. The Money Hustler

Some signs that you might have this trait:

• You believe that earning more money is the secret to happiness.

• You focus most of your time & energy on trying to make as much money as possible.

• You derive pleasure from the approval and recognition from other people for your financial success.

Pitfalls: While having the Money Hustler trait is not necessarily a bad thing and it does usually mean the person is on a strong path to achieving financial freedom, they can also start down a negative road by neglecting important relationships to prioritize growing their wealth (e.g., choosing to work on weekends over spending time with loved ones).

ARIES Advice : Recognize that there’s more to life than money. And if you do have a sizeable amount of wealth, give it purpose by helping others, whether that means donating to an important cause or treating yourself to that family vacation you’ve been talking about for years.

4. The Money Hippie

Signs you might be a Money Hippie:

• You rarely think about money (and just the idea of creating a budget makes you nauseous).

• In extreme cases, you believe that money is inheritably bad or evil.

• You feel strongly that money shouldn’t influence important decisions in life.

Pitfalls: Many people who are indifferent to money feel they only need a modest amount of money to be happy, which is definitively a healthy mindset. But things can get ugly if they’re not responsible with their finances (e.g. depending on a partner or spouse to do the work for them).

ARIES Advice: It’s not about having a budget, it’s about knowing where you are spending your money. Even if you are financial comfortable it’s still healthy to know things like where your money is going, what your monthly expenses are, and where you stand on debt. Doing all these things can save you a lot of financial stress in the future.

5. The Roller Coaster

Signs that you might be a Roller Coaster:

• You share common traits between Savers and Spenders.

• You start out saving a lot of money, but then give into spending impulses out of nowhere.

• When you do use your savings, you might spend on things you don’t need or will rarely use.

Pitfalls: It can be emotionally exhausting when the pendulum swings from compulsive saving to compulsive splurging. Roller Coasters often end up stressed and disappointed in themselves for working so hard to save money, only to lose it so quickly.

ARIES Advice : Like Spendthrifts, Roller Coasters rarely put a lot of thought into what they’re spending on once they’ve decided to splurge. Before any big purchase, take a break (24 -48 hours) before buying the item, imagine how you might feel the following week or month ahead. Don’t lose sight of your financial goals.

6. The Gambler

Signs you might be a Gambler:

• You share common traits between Money Hustlers and Spendthrifts.

• The thrill of risk and promise of reward is a pleasure unto itself that you can quickly get lost in.

• You gamble or take risks with your money sometimes for the purpose of escaping boredom.

Pitfalls : Gambling comes in many forms beyond just betting or going to a casino. Some Gamblers take risks with their investments as well, sometimes putting either their own retirement money or children’s college in jeopardy

ARIES Advice : The goal is to be sure with the financial risks you take. Balance and security are essential to have, so start by setting aside monthly savings before engaging in any risk-taking decisions.

7. The Worry Wort

A Worry Wort might have these traits:

• It doesn’t matter how much money you have — you’re constantly worried that you’ll lose it at any given moment.

• You lack confidence in your abilities to achieve financial freedom.

• Your underlying fear is that you are going to run out of money.

Pitfalls : It’s smart to be aware of what could happen if you don’t prepare for your future. But letting worry and anxiety eat away at your happiness in the present moment is never a good thing.

ARIES Advice : Seek positivity around money conversations. Work on understanding where your financial worries are coming from, whether that means talking to a financial advisor or a money coach.

Got Questions? Ask Us. We Can Help With That!

The ARIES Foundation for Financial Education, Inc is a nonprofit dedicated to the mission of trying to help everyone have a better relationship with their money. Want to learn more about how you can be better with your finances? Contact info@ariesfoundation.org or visit our website: www.ariesfoundation.org

Budget & Cash Flow Strategies

183:814504607 (Thomas Alessi) — Mon, 02 Aug 2021 12:14:40 GMT

Budget vs Cash Flow - Is There A Difference?

What Is Cash Flow Planning?

In simple terms, “cash flow” refers to all forms of cash and assets that come and go from anyone. Companies value cash flow because it offers a clear distinction between what they owe and what they’re earning. It can also be particularly beneficial for individuals, especially when planning a budget.

When it comes to this type of financial planning, a cash flow plan can come in two basic variations: business and personal. Although things work similarly in each context, the end goal is often different. These differences are rooted in the fact that businesses are aiming to gain profits, whereas individuals are usually looking to make ends meet and have some leftover money for their savings.

Personal Cash Flow Planning

Individuals and families should create a cash flow plan to ensure that they can properly support their spending needs on a regular basis, while also creating a fund for emergency reserves. One of the biggest risks that individuals without a cash flow plan face is the possibility of going into debt to cover their needs & expenses. A Cash flow plan is a great way to help everyone get a handle on the best way to allocate income between savings and spending.

Example

Let's take the Jake Family, which has a monthly income of $6,000. Between their "must-pay" expenses; mortgage, insurancfes, car payments, groceries and other daily costs, the family usually spends around $4,500, giving them a positive cash flow of $1,500. However, the family’s oldest son will need $10,000 to pay for her semester at college next year. A cash flow plan can help the family determine what they will be able to set aside and what their financial situation will look like over the upcoming months and year ahead.

Cash Flow Planning & Budgeting

As you might expect, cash flow planning and budgeting often go hand in hand. Whether you’re a business, an individual, or a family planning out how your cash flow is going to match your spending needs, is in direct correlation with having a budget. Think of a cash flow plan as being focused on your long-term finances, while a budget is much more helpful on a micro or day-to-day scale. Budgets also lend themselves to the formulation of a plan for finding where you can save for the future and retirement.

Budgeting involves being prepared for what lies ahead. On the other hand, spending money recklessly without the guidance of a budget could quickly put you and your family in a bad spot. While cash flow is worth calculating monthly, as in the example of the Jake Family, it is good to be fully aware of your financial limitations more regularly. In the example, the introduction of a major purchase would be unlikely to fit into their current cash flow plan. However, through budgeting and other similar tactics, they could manage to make these goals more attainable.

Bottom Line

Cash flow plans for both businesses and individuals are an important step in ensuring financial stability and longevity. They also go along with budgeting as a way to help people (and businesses) stay on top of their finances in both the short and long term.

GOT QUESTIONS? ASK US. WE CAN HELP WITH THAT!

The ARIES Foundation for FInancial Education, Inc . is a nonprofit dedicated to the mission of trying to help everyone have a better relationship with their money. If you need help, or just want to get started, then reach out to us and we'll see what we can do to get you going info@ariesfoundation.org . You can also visit our website to learn more about we do: www.ariesfoundation.org

Talking To Someone About Dementia Symptoms

183:814504607 (Thomas Alessi) — Wed, 28 Jul 2021 12:05:27 GMT

6 Tips To Start The Conversation On Dementia With A Loved One

For most of us the idea of broaching the subject of possible warning signs of dementia with a loved one is difficult, but for adult children with their parent it can feel overwhelming according to Alzheimer’s Association “...people are worried about hurting a family relationship or… upsetting people that they care about.”

The Association also says that broaching the topic early helps everyone. "When you know what you’re dealing with upfront, then you can plan. The person [with dementia] can have a voice in what happens next."

If someone you care about is showing the early warning of dementia symptoms, it is important to have the talk with him or her as soon as possible.

Here are 6 tips for talking with someone you love about dementia:

1. It's Gonna Zig When You Want Zag

Realize it probably isn't going to go as you planned. You may have all the best, but your loved one may not be open or willing to discuss the changes you have noticed. They may get angry or defensive. Don’t try to force the conversation. Take a break, especially if the conversation gets heated, and plan to revisit with them at another time. If you are still having troubles with your loved one and they are refusing to listen or get help, then it is probably time to seek out a medical professional.

2. Go With Your Gut

Meaning if you are seeing some of the early warning signs - don't wait. Have the conversation as early as possible. I t’s important to say something before more symptoms occur. The conversation and sommunication will be at It’s best when cognitive functioning is at its highest.

3. You're There To Help

Offer your support. Understand that t his may be a scary situation for your loved one and the idea of going to a doctor to discuss the changes can feel overwhelming for them. Let your loved one know that you are there for whatever support that they may need and can accompany them on visits to the doctor. Stay steadfast in showing your support throughout the diagnosis in the days and months that follow.

4. Openers To Get Them Talking

Here are some different ways to the conversation started:

Recently I started thinking about my own long-term care plans and I was wondering if you have any ideas or tips for me?
How are you feeling? I was wondering if you’ve noticed same changes in your behavior that I’ve noticed?
Would you want me to tell you if I noticed any concerning changes in your behavior?

5. Be Ready For Some Pushback

Realize there may be gaps in their self-awareness. Someone experiencing the signs of early dementia may not see the symptoms in themselves. Be prepared that your loved one may show signs of confusion, denial and withdrawal.

6.Who Else Should Attend

Before you begin think about who else should be with you having the conversation. Is there a certain family member or close friend who can positively influence your loved one? Consider asking that person to be with you in the capcity of emotional support for your loved one.

HAVE QUESTIONS? ASK US. WE CAN HELP WITH THAT!

The ARIES Foundation for Financial Education, Inc is a nonprofit dedicated to the mission of trying to help everyone have a better relationship with their money. Contact us at info@ariesfoundation.org to get answers on caring for a loved one with early warning signs of dementia. Or visit our webiste www.ariesfoundation.org

Warning Signs of Diminished Capacity

183:814504607 (Thomas Alessi) — Mon, 26 Jul 2021 15:26:49 GMT

5 Signs To Watch For With Financial Capability

Most of us probably think we know what to look for when a loved one is showing the signs of diminished capacity. But have you ever studied the subtle signs that should serve as red flags for you? Now is the time to learn more. There are too many elderly out there who are among us to ignore the probability that some of them will be too impaired to handle their financial decisions safely.

Indicators of diminished capacity will not always be so obvious to you, particularly if you are interacting with a an aging loved one, especially in a situation where you m ight be dong most of the talking or directing the conversation. While you may be asking them some specific questions, whether they involve a real estate matter, a legal transaction or case or accounting matter, and you could miss the signs that the individual is beginning to develop cognitive problems. If you are asking things in such a way, like “Do you understand?” or "Does that make sense?" and they answer is “yes” that is not a way to test whether they really did understand or not. You will need to do more, and ask a little more in-depth, if any warning sign pops up when interacting with an aging loved one.

Cognitive problems could be developing even if the individual is able to answer most of your questions. You won’t spot cognitive decline unless you are looking for the subtle signs that tell you that they are not quite as sharp as you’d like. If you probe a bit more, you may find that the person lacks the judgment to do what you is being asked or needed of them to do. Or, they may not be able to appreciate the financial impact of a decision they are being asked to make. Things could go wrong if you do nothing or ignore some of these red flags.

When a person is impaired, they can be easily manipulated. They may also fear being “found out” that their memory is as bad as it really is and they may be trying to hide the fact. A person left to their own devices in this situation could make dangerous choices or certainly become subject to financial abuse by others.

What should you look for in terms of possible diminished financial capacity in your client?

Here are warning signs:

1. Short Term Memory Loss : Have they missed some appointments recently? Could they not recollect a recent conversation or phone call that you had with them?

2. Disorientation : this may be about time or place. Are they unsure about what day it is or where they live or are located?

3. Communication Problems : a lack of ability to state what they want to say or articulate a thought. Is the person unable to find the words?

5. Lack of Mental Flexibility : inability to plan: When a person becomes fixated on an idea and you can’t dissuade them with logic. When the person can’t look ahead at the consequences of what they are doing now. This is certainly an indicator of a potentially bigger problem.

6. Calculation Problems : they may say they know the math but can they do the math? If you go to lunch, do they have trouble with the calculating the tip or making change?

If you see any one of these signs, proceed with caution. You must explore the problem more deeply and not just dismiss it as “(so&so)’s getting old”. If your loved one is impaired, their diminished capacity, especially when dealing with finances could expose then to some very bad sitautions or consequences.

GOT QUESTIONS? ASK US. WE CAN HELP WITH THAT!

The ARIES Foundation for Financial Education, Inc. is a nonprofit dedicated to helping everyone have a better realtionship with their money. And dealing with a loved one who is showing some of the warnings signs is a very difficult relationship to be in, for them and sometimes for you. You can reach us info@ariesfoundation.org or visit our webiste to learn more www.ariesfoundation.org

Life Insurance - Who's got you covered?

183:814504607 (Thomas Alessi) — Wed, 21 Jul 2021 15:13:05 GMT

I'm All Set, I've Got Life Insurance Through My Employer

Benefit Plans Are Essential

The insurance coverage(s) provided through your employer sponsored benefit plans are important pieces of your financial plan. Think of them as the building blocks of your financial “house” (savings & investments). Without these critical coverages in place, then all it would take is one accident, or illness, or worse death, and all that you have built (up) could come tumbling down.

It Is Temporary

We are going to stick with the renting vs owning analogy with this. The benefits provided with your employer are just that – with your employer – meaning that if you leave your job, for whatever reason, then it is more than likely (deflategate-speak again) that your coverage will stay with your employer as well. The insurance coverage(s) that you and your family are relying on for protection can suddenly be taken away should you no longer be employed. Which is kind of like renting your protection plans instead of having actual ownership of your coverage.

Hope Is Not A Solution

And where does that leave you and your family? Without protection. Until you land another job. But what if that employer doesn’t have the same the type of benefits available, or limits how much coverage you can obtain? Now what? Now there are cracks in the foundation of your financial house and you had better figure a way to get them filled-in asap, otherwise you could find yourself (or your family) one small fall away from having all that you have accumulated taken away by an accident, or illness, or worse, leaving your family unprotected should you die.

Unfortunate Reality

The problem with most insurance coverage, but especially with life, disability & long-term care is that you have to qualify for the policy. And the simple truth is that – while you may be able to make yourself healthier in the future; lose weight, eat right, stop smoking, et.. You will never be younger thatn you re today. So what happens if at that time “down the road” we decide that we should have our own coverage, or worse, we need it because our employer no longer offers it, and now we can get it (health) or it’s too expensive (age + health).

Analyze & Review

Take the time to do a little overview in to exactly what options and coverages are available through your employer sponsored plans. Review what you have, or wouldn’t have should you leave the job tomorrow. Author’s Note: While you are at it we suggest you also do a review of all your designated beneficiaries for any of these employer. You’re looking at the coverage, checking the beneficiaries is just good practice. Are there areas of coverage that will leave you or your family unprotected should you no longer be employed. If the answer is yes, then it is time to consider filling in some of those “cracks” by obtaining your personal policies.

NEED HELP? ASK US. WE CAN HELP WITH THAT!

That's why we founded ARIES Foundation in the first place, to try and help everyone have a better relationship with their money. If you have questions about insurance, or the types of coverages available, then reach out to us: info@ariesfoundation.org . Or you can visit our webiste: www.ariesfoundation.org

Life Insurance Explained

183:814504607 (Thomas Alessi) — Mon, 19 Jul 2021 12:30:39 GMT

Term vs Perm: It's kind of like renting versus owning

Let's start with the simple premise that no matter who you are, that your life has significant, whether that value is to your family, or to your community, or both. The question is how do you replace that value if you are no longer around anymore?

One of the tools available to do this is life insurance.

Life insurance gives you the ability to help protect your financial worth, while making sure that your family continues to thrive after you're gone. After you slice through the haze & confusion that the industry provides you will find that there are only 2 types of policies in the world: Term Life Insurance and Permanent Life Insurance.

You figure this would be simple, right? Maybe, maybe not. Let's break them down from a high-level overview first:

TERM - It covers your life for a period of time (the term). That can be 1 year, 5 years, all the way up to 40 years, though there are age limitations on who can qualify for certain term coverage lengths. If you die during the term of coverage then your beneficiaries receive the death benefit amount. If you die after the term has expired then the Insurance Company gets to keep all your money. It's inexpensive, builds no cash value, and is there for peace of mind (at least while you are under the "term" period).

PERMANENT - It's there for the rest of your life. And unlike Term Coverage, which only benefits if you pass away during the "term" length, this coverage does not go away until you do. Spoiler Alert: We all pass way at some point. Which means the Insurance Company has to have the money available to pay your claim. It really is simple math - it costs more because they you are going to die.

So how do you decide which option is right for you?

We like to use the analogy of renting or owning a home when trying to compare the 2 these 2 different types of life insurance contracts. When you are renting a home, then you pay an established amount every month to live there until your lease is up. Once your lease ends, then you have a decision to make on whether or not you want to renew for another contract period, at which time it may be more expensive, or worst-case scenario, youa re unable to renew the contract, which would leave you without any coverage. The money you spend to rent is less than the cost of owning or buying a house, but it does not build equity for the future.

Term Insurance is similar to renting. You pay a premium based on your contract, and once that contract is up, you no longer have access to the benefit.

When you agree to buy a home with a mortgage, then you agree to pay a monthly fee for the lifetime of your loan. The mortgage payments that you make can build equity in your home over time, and once you've paid the mortgage off, then the property is yours.

Permanent Insurance is similar to buying a home. You enter into an agreement to purchase the amount of death benefit that you want, and then you pay a fixed premium for the life of the contract. As long as you pay your premiums, like a mortgage, then you own the benefit for life. A permanent policy can accumulate cash value (just like equity in a home) over the course of the contract.

In some cases this is not an either/or situation as you don't have to choose one or the other, as these policies can be used in tandem to protect you through the stages of life; Term Insurance for short-term protection; home mortgage, childcare, etc.., while Permanent can provide for the bigger picture; inheritance, retirement, etc..

GOT QUESTIONS? ASK US. WE CAN HELP WITH THAT!

The ARIES Foundation for Financial Education, Inc is a nonprofit dedicated to helping everyone have a better relationship with their money. Visit our webiste to learn more and see how we may be able to help you: www.ariesfoundation.org

Do I Need More Than A Will?

183:814504607 (Thomas Alessi) — Mon, 19 Jul 2021 12:30:37 GMT

Saving vs Spending

183:814504607 (Thomas Alessi) — Mon, 19 Jul 2021 12:30:34 GMT

Trying to find the balance: Do I spend for today or save for tomorrow?

The battle that we wage Should I spend money today (to enjoy life) or save for the future?

This is a common dilemma faced by most people.

The amount of money you have is (sadly) limited. Naturally, you have to decide whether to use it to spend on things today or to save it for the future.

People have thousands of reasons for not saving for the future. Some will say that they don’t make enough money to save – which is acceptable if true. Others cant stop spending money as according to them, life is so uncertain and therefore its better to live for today and deal with future… in future.

On the other hand, there are many who save a lot. At times, they end up saving a little too much. Result? They have big bank balances or portfolios. But sadly, they are unable to enjoy their lives optimally.

So spending today vs. saving for tomorrow – What is right here? Or is it even worthwhile to contemplate about taking sides here?

How can one enjoy life today while saving for tomorrow?

This is not an easy question to answer.

Why Spending Today is important?

Now this question may seem strange coming from a financial advisor.

But it is important to not shortchange your life today. What is the use of having saved up crores of rupees without any rhyme or reason?

A relative of mine has a young daughter (with no plan for more children). He went to the extent of saying that given his high income, he saves much less than what he can actually save.

That’s because at the end, his daughter will get married and he doesn’t want to be remembered as an ultra-rich father-in-law who saved a lot.

��

Interesting way of looking at things.

To put it simply (and as my wife once told me), we should not screw up a very long journey for the sake of a distant goal. It may really not be worth it.

Take for example a person who works very hard, sacrifices his family life, his passions, saves a lot of money and doesn’t spend much. At the end of the day, he will be very rich. And when he dies, even then too. But what is the point of being the richest person in graveyard?

saving vs spending

People constantly regret not having lived their lives to the fullest.

Why Saving for Tomorrow is Important?

Now before I move forward, please understand that by ‘saving’, I don’t mean ‘not spending‘. These are two very different things.

And you will find countless examples of people who don’t have much savings despite their best efforts to not spend money. It can be frustrating.

I have no doubt (and neither should you) that savings is important. Even if people close to you need some convincing.

It doesn’t feel good at first but its necessary. Just like exercising or going to the gym. It hurts at first but pays handsomely later on.

Saving is necessary because one day in future, you will stop earning (retirement). You will then have to have a big pool of saving from which you can withdraw money to survive in your retired life.

And mind you… most of you reading this won’t die early or the day after retirement. �� Thanks to our doctor friends, most will live for atleast a couple of decades after retiring. So you do need a lot of money for your non-earning years. And you can’t depend on your children to be your retirement fund. Its that simple.

That is not all.

Retirement is not the only financial goal.

There are several other important financial goals lined up on your way to retirement.

Children’s education, their marriage, your house purchase, car purchase, a foreign trip, etc. All these require money and most times, a lot of it.

You can’t fulfill the fund requirements for these goals from regular income alone. You need to save for these goals and allow your savings to grow on their own. That is how you will find the money you need to achieve these goals.

So saving today is necessary. Period.

But what if you feel like…

Let’s Spend Money Now. Will save MORE later. Does this work?

It might work. But here is the practical difficulty here.

Lets say that when you are young, you decide to spend money freely and save later. But since your parents were pushing you hard to save something, you decide to save 5-10% of your income to show respect to them.

But saving just 5-10% of your income also equates to the fact that you are permitting yourself to spend 90-95% of your income!

saving 10 percent

And so with each annual increase in your income, you are continuously raising your lifestyle costs too.

Now when you say that later on in life, you will start saving more (and it better be a lot more as this proof shows), it will be difficult for you to downgrade your lifestyle expenses.

And its quite possible that inspite of saving much more later on, your savings turn out to be woefully inadequate because spending and lifestyle costs have increased so much.

So if saving is so important…

Then why do Most People avoid saving for the Future?

Maybe its because of how we humans have evolved from the animals.

In the book Art of Thinking Clearly, the author points towards a human bias that is similar to animals:

Animals will never turn down an instant reward in order to attain more in the future. You can train rats as much as you like; they’re never going to give up a piece of cheese today to get two pieces tomorrow.

As humans, we give more weightage to the present than to the future. At the cost of better options in future, most of us chose less better options today. That is a reality. And that is why people find it tough to save for future.

There was a famous experiment that was conducted to highlight people’s ability (or rather inability) to delay gratification. In this experiment, which was called the Marshmallow experiment, children were given a choice between:

A small prize (1 cookie) that they can have right now

A bigger prize (2 cookies) later on

And the results were interesting. Have a look at this video:

Or if you can’t see the video above, click here for the direct link to video.

Balancing the Two

Being on the extremes can be glamorous. But its not sustainable.

You can’t just keep spending without going bankrupt sometime in future. And you also can’t keep saving everything without screwing up your normal life.

So as far as I think, balancing the two is what we should aim for.

How you will achieve that balance depends on your actual situation. There is no one fixed right answer here. In addition to saving and spending, there might also be a 3rd option in many people’s case – prepaying loans.

But somewhere between spending 100% and saving 100% (both theoretical), there is a sweet spot where you can live well today and also save reasonably well for tomorrow.

balancing saving and spending

And the easiest way to do it is to…

Decide on your ‘YES’ to know when to say ‘NO’

Confused?

Previous sentence highlights that if you are clear about what you really want in the short and long term (lets call them your real financial goals), it will be easier for you to stay focused and spend accordingly.

Take an example from your childhood. If you had an examination tomorrow, you will not spend your time fooling around today. You will sit and study. Or in many cases, you will be forced to study. ��

So in reference to spending vs. saving debate, if you know what you are saving for and how important it is for you achieve it, you will spend accordingly.

It will help you stay on track.

For example, you want to make a large down payment for your house after 3 years. Now if you are reasonable, you will do everything in your capacity to save as much money as possible in next 3 years for the downpayment. Most people in that situation will not go out every weekend for parties and spend thousands of rupees.

Repeating again:

You need to decide on your ‘YES’ to know when to say ‘NO’

So once you know your Big YES (i.e. save for your dream home’s downpayment after 3 years), you will know when to Say NO (i.e. spending money recklessly on parties).

And by doing that, you are not depriving yourself if you don’t spend money on parties. On the contrary, you will be depriving yourself of what you really want (house), if you spend money on parties.

Delaying gratification is not a happy experience to start with. But the trick is to put in place strategies that can help you do that. Because doing that is the only option to achieve your goals by balancing today’s spending against saving for tomorrow.

I am not asking you to save everything.

I am also not asking you to not save anything.

But take some time out and have a hard look at your spending habits.

Certainly, there will some fixed expenses that you just can’t wish off. But apart from those, spend on things that are truly important. It might mean cutting back in other areas today to save for tomorrow. But there will always be better things in future that are worth that trade-off.

It is possible to save wisely and live a good life simultaneously. And even before you decide about taking sides on saving vs spending debate, sit down and think deeply about what you really value.

Do I Need A Will?

183:814504607 (Thomas Alessi) — Mon, 05 Jul 2021 14:46:32 GMT

Who Needs A Will Anyway?

WHO NEEDS A WILL?

We know what you're thinking; I'm young and single---I don't need a Will, right? Maybe. Here's a quick look at who needs a will and who can get away without one (for now).

What does a Will really do?

If you pass away and have a Will: Your property and assets will be distributed according to your wishes.

If you pass away and don’t have a will: State law governs who gets your property and assets—this is called “dying intestate.” Usually, your spouse and/or children will take priority and inherit your stuff, but that’s not necessarily true.

If you don’t have a spouse or kids, then it gets a little more complicated.

When do you need a Will?

There’s a lot of debate among professionals about who needs a Will. And while you can make the argument that it’s always better to have a will, here are the specific categories of people who need (and who don’t need) a Will.

ARE YOU MARRIED? You need a Will.

If you are married, then you need a will because your spouse is someone who is so closely tied to you that it’s important for you to put in writing whether she or he gets your assets upon your death. Traditionally, your spouse would likely inherit your things, even if you die without a will, but you shouldn’t leave that up to chance. Additionally, if you want anyone other than your spouse to receive any of your assets, you would need to specify who and what they would receive as part of your Will.

DO YOU HAVE KIDS? You need a Will.

If you have kids, you need a Will because your kids are likely to inherit your things if you die intestate, after your spouse, but not necessarily. This means that if you want your kids to inherit after your spouse, then you need to put that in writing, because otherwise it is the court or State law that makes the decision. Additionally, if you don’t want one of (or any of) your kids to inherit, then that needs to be documented in writing as well. Regardless of which you are leaning , it’s very important that you have a Will in place so that the decision is being made by you, not the state. Another reason why a Will is important is if you have minor children (under 18) because you name an executor of your estate and a guardian of your children. The executor is responsible for distributing your assets, and the guardian is responsible for raising your children. Who you name as executor and as guardian is critically important to how your children inherit and how they are raised. You can (and should) change your Will over time. For example, if you have two kids, create a Will, then ten years later, have another kid, you will need to update your Will to include your third child.

DO YOU HAVE A POSITIVE NET WORTH? You need a Will.

If you are single, with no kids, but you do have a positive net worth, ie. you have more assets than debt, then you should have a Will. Getting more detailed that if you have assets that exceed, let's say $100,000 or more, then you should be looking at a living trust, which goes into effect right after it’s signed. When you have assets that need to be distributed when you die, it’s almost always easier on your family to have a Will or a Trust in place. When it comes to death, clarity is the operative word.

ARE YOU YOUNG, SINGLE, BROKE with NO KIDS? You don’t need a will (yet).

Your Will directs the distribution of assets, and if you don’t have many assets to distribute then you may be okay without a Will. For example, Jeanie is single, she doesn’t have any kids, is 28 years old, and has a lot of student loan debt. Jeanie really doesn’t need a Will yet, because she doesn’t have dependents and she doesn’t have assets.

I f you get married, have kids, or come into assets (money or property), then it’s a good idea to get a Will.

HOW TO SET UP A WILL

You need to take some time and think about your situation. How do you want your stuff handled? Again, if you have minor children then who will be responsible for them? Creating a Will raises a lot of questions, for this reason the ARIES Foundation recommends reaching out to an estate attrorney who can help guide you through some of these concerns. Because when it comes to estate planning and deciding the things you have to decide, you’ll want to get advice from a knowledgeable team. At the end of the day, making a mistake isn’t worth it. The better prepared you are, the better your wishes will be carried out. This way you have full control around these important decisions while you are alive and can learn about all the differences between, for example, Wills (which go into effect when you die) and living trusts (which go into effect immediately after they’re signed).

SUMMARY

A Will is a legal document that dictates the distribution of assets when you die. If you die without a Will, state law governs.

You definitely need a Will if you are married, have kids, or have a lot of assets.
You may not need a Will if you are young, single, childless, and broke.
A Will is not something you should draft yourself.

GOT QUESTIONS? ASK US. WE CAN HELP WITH THAT!

ARIES Foundation for Financial Education, Inc. strongly recommends reaching out to a professional, whether that is for legal concerns, tax help, or investment advice to get your questions answered. Don't have a professional to talk too? We are here to help guide you and connect you to a professional who can answer your questions.

IRA Mistakes To Avoid

183:814504607 (Thomas Alessi) — Wed, 30 Jun 2021 12:11:46 GMT

Required Minimum Distributions(RMDs) & What To Do

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IRA Mistakes To Avoid

183:814504607 (Thomas Alessi) — Mon, 28 Jun 2021 11:44:37 GMT

SECURE ACT Changes to IRAs You Should Know...

The SECURE Act took effect Jan. 1. The changes to IRA provisions, set forth below, may impact any number of types of IRA (e.g., traditional, Roth, inherited, deemed, Simple and SEP).

Post-Death Minimum Required Distributions Accelerated—Elimination of the Stretch IRA

New Rules: In general, distributions after death of the IRA owner must be made by the end of the tenth calendar year following the year of death. However, payments can be made over the beneficiary’s life expectancy, if the beneficiary is (1) a surviving spouse, (2) a disabled or chronically ill individual (or certain trusts for such persons), (3) a beneficiary no more than ten years younger than the IRA owner, or (4) a minor child of the IRA owner (generally, until the child reaches majority). (The existing rules appear to still apply for nondesignated beneficiaries.)

Straight Talk - Uncle Sam wants his share and now he knows he will get it within 10 years of your passing.

E liminate Age Limit on IRA Contributions (and Deductions)

New Rule: There is no longer an age limit on traditional IRA contributions, nor an age limit on deductions for such contributions. The Act also provides for rules for coordinating the impact on qualified charitable distributions (QCD) for post 70-1/2 contributions. Specifically, it provides that the exclusion from income for a QCD is reduced (but not below zero) by the excess of (1) aggregate amount of post age 70-1/2 deductions allowed, less (2) aggregate amount of such reductions counted in the prior years.

Straight Talk - We're living and working longer than ever before, also that we want to help others as well.

Lifetime Minimum Required Distributions Delayed

New Rule: Age 70-1/2 is replaced with age 72.

Straight Talk - The withdrawal rate went up, so you'll have to take a higher % at 72 now then you did before, but you get to hold for an extra year or so.

Tax Relief for Withdrawals for Child Birth and Adoption Expenses

New Rule: IRA (and employer plan) withdrawals of up to $5,000 for child care and adoption expenses incurred within a year following birth or legal adoption are not subject to the 10% additional early withdrawal tax under Code section 72(t). These amounts may also be recontributed back to the plan or IRA subject to certain limitations.

Increased IRA Withholding Notice Penalties

New Rule: The penalty is increased to $100 per failure, with a maximum annual penalty of $50,000.

Straight Talk - Big Brother will be watching to make sure you take your RMD with more scrutiny

Expanded Definition of IRA Compensation to Include Foster Care Payments

New Rule: Foster care payments that are excludible from income under Code section 131 (called “difficulty of care” payments) are counted as eligible IRA compensation for purposes of the nondeductible IRA contribution limit.

Expanded Definition of IRA Compensation to Include Graduate School Stipends and Fellowships

New Rule: Amounts includible in income and paid to aid individuals in their pursuit of graduate or postdoctoral study or research are counted as eligible compensation for IRA purposes.

GOT QUESTIONS? ASK US. WE CAN HELP WITH THAT!

The ARIES Foundation for Financial Education, Inc is a nonprofit dedicated to the mission of trying to help everyone have a better relationship with their money. Understanding the changes and rules that govern your investments and investing strategies is one part of that relationship. Reach out and see if we can help you info@ariesfoundation.org or visit our website www.ariesfoundation.org

Taking Your Dream Vacation

183:814504607 (Thomas Alessi) — Wed, 23 Jun 2021 11:50:51 GMT

Safety Steps When You Go Away

Yay - You're Going Away!

But before we pack up the station wagon and take the family out on the "Holiday Road", let's make sure we are prepared. Travel safety begins before you even leave the house. From making sure your home is secure to brushing up on travel restrictions wherever you're going. As with anything, having a plan will set you up for (travel) success.

Secure Your Home Before You Go

Give your house that lived-in look. Statistics show that burglaries tend to rise in the summer months, which is peak vacation time for most of us. And thieves know the best time to strike is when your home is vacant.

Here are some steps you can take to tighten security before you leave.

Tell a neighbor your travel plans. Ask them to help keep an eye on your property and alert you if there is any suspicious activity.
Lock all your windows and doors. Don’t forget about doors leading to the garage or second-story windows.
Depending on how long you will be away consider having your newspaper and mail delivery stopped. A stack of mail and newspapers are signs that nobody's home. You can temporarily stop delivery by contacting your newspaper carrier and the United States Post Office.
If you don't use a landscape company, then maybe find a neighborhood kid who can take of it for you while you are away. An overgrown lawn or unshoveled walkway is a dead giveaway that no one's at home.
Don't post your travel plans on social media (save all those photos for when you return)—if a burglar spots your post, it can turn your home into a target.

Travel Safety For The Whole Family

Everyone is different including you and the members of your family. Make sure you have taken everyone into consideration- things like age or ability when planning your trip. Make sure everyone who's traveling with you is safe and comfortable with these family safety travel tips.

Travel safety tips for kids and babies

Bring a car seat. Whether you're driving or flying, youngsters that require a car seat need to have one during vacation. If you're flying and have a lot of stops, it might make sense to invest in a lightweight car seat that's easy to move from plane to plane. And make sure your car seat is FAA approved.
Pack sanitizing wipes. Wipes make it easy to disinfect anything your child touches (including themselves) when you're on the go. Wipe down chairs, tables, airplane trays, and toys—especially if you have a little one that likes to stick everything in their mouth.
Consider a GPS tracker. It doesn't take a pandemic to make us panic if we lose sight of a child in an unfamiliar or crowded place. Make things easier on your blood pressure and safer for your little one with a kids GPS tracker that lets you keep an eye on that tiny wanderer no matter where they go.
Snacks - some healthy, some not, no matter where you go or for how long inevitably someone in your crew is going to get hungry or thirsty, which is a sure-fire step to being cranky. And nobody wants to travel with anyone who is cranky.

Safety Tips For Air Travel

Airports are full of people, all rushing to catch a plane or make a connection. Here are some travel tips to help you safely navigate the airport anytime you decide to fly.

Watch your bags. You need to keep a close eye on your luggage at all times, even once you board the plane.
Team up. If you’re traveling alone, try to find someone in line to befriend. This is someone who could watch your luggage while at the counter or going through security.
Protect your laptop. When going through security, put your laptop on the x-ray belt last. This way, your laptop will come out after your carryon luggage and hopefully about the time you are cleared. You don’t want your laptop in the open for too long.Store your carry-on nearby. On the airplane, if you don’t put your luggage under the seat in front of you, put it in the overhead bin across the aisle from you. You’ll be able keep an eye on your bag during the flight to ensure nobody is opening your luggage.
Don't be shy. If you see an empty row or end up next to someone who's sneezing or coughing a lot, ask if you can move to a different seat. This is no time to hesitate. It's perfectly acceptable for you to look out for your own health.

Be Road Trip Ready

Maybe air travel isn't your thing, or you are still a little about COVID-19, so you rplan is to hit the highway this year. Here are some tips to help you stay on the road with your vacation this year.

Water. We might sound like a broken record, but you need to stay hydrated even when you’re not out climbing a mountain or frolicking on the beach. And, if your car breaks down or overheats, extra stores of water can be a lifesaver. For drinking, make sure to restock water regularly so plastic and other toxins don’t leach in.
First Aid. Make sure your travel first aid kit is in tip-top shape with basics like antibacterial ointment, bandages, gauze, and an emergency blanket.
Car Seats. Before you hit the open road, give your baby car seats and booster seats a safety check. Make sure child restraints are installed correctly and double-check that everyone still has the proper protection for their weight and height.
Fire Extinguisher. You’re never going to miss having a fire extinguisher in your car until you need one. Be prepared to stop a small blaze from growing out of control with a car fire extinguisher. Look for one with a secure mounting bracket for safe travel.
Pet Restraints. Kiddos aren’t the only ones who need to be secured in a moving vehicle. Make sure your four-legged friends can travel safely too. Whether you choose a buckle-in harness or tie down a crate in the back, don’t pull out of the driveway without the right car safety setup for your fur babies.

While On Vacation

You’ve successfully navigated the airport and now you’ve landed safety at your destination. Don’t relax on safety just yet. Whether at a theme park or at a fancy resort, there are a few safety precautions that you can take to make sure you're as safe as possible.

Stay off social media (or limit the shares to family & friends only). You don’t want to be tipping criminals off by sharing too much information on your social networks. Refrain from posting photos, status updates, or “checking in” while on vacation. Even if you have the highest security settings on Facebook and Twitter, your personal information could still be seen by unwanted eyes.
Tell friends and family at home your itinerary. It’s a good idea to tell family and friends about your plans. Always let someone know when you’re expected to be back and what route you’re planning to take.
Keep cash and credit cards in separate places. Never carry your credit cards, cash, and passport at the same time. You’ll want to keep some cash in your wallet, and then stash the rest in a pocket or money pouch. If you have a safe in your hotel room, leave the majority of your cash there and only bring what you’ll need for the day.
Make a copy of your passport. You’ll want to make two copies of your passport. Leave one copy at home with a trusted friend or family member and take another copy with you. When you go out sightseeing, take the copy with you and leave the original in a hotel safe until you are ready to travel again.
Do a security sweep of your hotel room. Always keep your hotel door locked and never answer it for someone you don’t know. If you can, try to get a room near the front desk or the elevator.

CORONAVIRUS Concerns

Travel can increase your risk of getting infected or spreading COVID-19 to others. Don't let the coronavirus ruin your getaway. Even with the easing of the spread it isstill a good idea to t ake some steps before you leave to minimize your risk during vacation.

Check coronavirus trends. Find out if coronavirus infections are spreading both where you're traveling from and at your destination. This can help you decide what risk you may pose to others and the risk they may pose to you.
Research coronavirus restrictions. See if the city, county, or state where you're going has any restrictions on visitors.
Stock up on essentials. Make sure you have plenty of hand sanitizer and face masks. We recommend carrying a ziplock or other reusable bag where you can easily store and retrieve face coverings, sanitizing wipes, and hand sanitizer. This way, if you have to take off your mask, you won't lay it on a surface or throw it in a pocket or bag. It also makes it easier to sanitize your hands without touching everything in your bag.

GOT QUESTIONS? ASK US. WE CAN HELP WITH THAT!

The ARIES Foudnation for Financial Education,Inc. is a nonprofit trying to help everyone have a better relationship with their money. Check out our website www,ariesfoundation,org to learn more, or you can visit our Youtube Channel to see some of our past "Think With A Drink" episodes https://www.youtube.com/channel/UC8XA1to8IHXsqsrGfWfRaHA

Taking Your Dream Vacation

183:814504607 (Thomas Alessi) — Mon, 21 Jun 2021 13:03:56 GMT

5 STEPS TO GET YOU TO YOUR DREAM VACATION

Let's face it, everybody has some place that they dream of going. Right now it may be nothing more than a spot on your bucket list (if you have one). And we know that for some of us the thought of being able to afford to travel to whatever exotic place you want to go, seems very, very far away (financially though it could be in actual miles as well). But have no fear, here are some steps and strategies to get you started and on your way.

#1 - DECIDE WHAT YOUR DREAM VACATION LOOKS LIKE

This starts with where you want to go, of course. But also, how you want to travel and what your priorities are. If you plan to stay in hotels and eat all your meals out, then you will have to account for a higher budget than if you rent apartments and take advantage of the local markets to cook your meals.

r African safaris for example offer a wider range of pricing than you might expect, depending on which country you choose, how many days you go, and what level of comfort you can deal with (or without). Also consider things like, will you travel on your own or with a tour group? Should you pay someone to help you plan it?

#2 -GET A HANDLE ON WHAT IT'S GOING TO COST

Once you’ve created a plan, do some calculations. A few simple searches online will give you ballpark numbers for the main expenses of your dream trip. You are trying to get a handle on the range of prices for flights, hotels, vacation homes, activities and rental cars. Then factor in food, ground transportation and incidentals. Of course you should always add-in a cushion for unexpected costs as well.

One you have a solid ballpark figure for the total cost of this dream vacation, you can determine how much you’ll need to save per month to get there.

he amount you can reasonably put aside each month will most likely determine the target date for your trip. Also consider how disciplined you are and how long you can cut back on other things for this one trip.

Here’s a breakdown of calculations you for the same $5,000 trip spread over one, two and three years:

1 year: $5,000 / 12 = you need to save $416.67 per month

2 years: $5,000 / 24 = you need to save $208.33 per month

3 years: $5,000 / 36 = you need to save $138.89 per month

Once you see how much you’ll need to set aside and how long it will take, you might decide to move up your departure date by saving more aggressively or rethinking parts of the trip.

#3- NOW LOOK TO TRIM SOME OF THE EXPENSES

As stated above, being flexible about when you go on your dream vacation can help with your savings, but also being creative and seeking some variations could open up increased cost reduction while offering up some incredible places you’ve never even considered.

For example, in Europe, London is a sought after and more expensive tourist destination. VRBO lists two-bedroom apartments two to ten miles from the center of London for less than $150/night. Other, smaller cities in Europe may offer equally beautiful and historic attractions with a much lower price tag. You can cut down on your costs by, say visiting pricey major cities for a few days and then moving on to smaller, less crowded cities where the sites are great but food and lodging are cheaper.

#4- HOW YOU GOING TO BE SAVING

Yes, ARIES Foundation is always going to come back to savings strategies. It is after all in our DNA. But it is important no matter what savings goal you are trying to achieve. Because until you know what you are spending, you really can't be saving. And if you are trying to save for this dream vacation, then it means you have to take a look at waht youa re spending your money on now. And if you need to make changes...where will you cut back?

It’s best to tackle this as a family so you’re all on board and can keep each other on track.

Some of the more obvious expenses to cut out or cut back on include
Cell phone service (live with less data)
Cable or streaming services (maybe you don’t need Netflix and Prime.
Dining out (once a month instead of once a week)
Buying instead of bringing lunch to work and school
Clothing
Magazine and other subscriptions
Gym memberships
Interim vacations
Kids’ afterschool and summer activities

#5- THINK ABOUT TRAVEL REWARDS

OK, so we here at ARIES Foundation are no fans of using plastic, but it is a reality that we all live with, so in this case, let's look for a travel-rewards card that helps you along with extras like bonus points at sign-up, double points for everyday purchases like groceries and gas and maybe even travel discounts. Many cards allow you to stretch your rewards further when you book hotels and airfare through their websites or agents.

There are also destination or travel specific cards; airlines, hotels, Disney, etc. Before choosing one, make sure the airline has an ample choice of flights or the hotel family has brands you like for your destination.

If you’re getting geared up for a dream vacation, it might make sense to go all-in, using the travel rewards card for all your charged expenses for awhile. Sometimes, multiple adults in the family can take out their own travel cards, earning the sweet sign-up bonus points; just make sure you’ll be able to pool them when the time comes.

Red Flag Warning - Don’t just be buying stuff to get more points; you’re defeating the purpose if you are making purchases that you cannot afford to pay off immediately, you'd be better off simply saving the money instead.

GOT QUESTIONS? ASK US. WE CAN HELP WITH THAT!

The ARIES Foundation for Financial Education, inc is a nonprofit dedicated to helping everyone have a better relationship with their money. Visit our webiste: www,ariesfoundation..org to learn more and see how we can be of help to you and your family.

Creating A Paycheck In Retirement

183:814504607 (Thomas Alessi) — Mon, 14 Jun 2021 18:05:50 GMT

Begin WIth A Positive Mindset And Plan For Flexibility

Don’t Fall for the Law of Scarcity

Even the most optimistic person can develop a limiting mindset upon entering retirement, regardless of how much money they have accumulated. What is a limiting mindset? It basically means that you see resources and opportunities as scarce in nature. "I only have so many pennies to spend, so I can't part with any of them."

When scarcity-minded people get their last paycheck, it's cue the worry syndrome. They think, “That’s all I have! I’ve got to hold on to it.” They see their income and savings abruptly stop and realize that whatever is in their accounts has to last....Forever! Worst case scenario, they enter a never-ending spiral of fear. Fear can seep into every decision they make. They rethink vacations. They rethink eating out. They rethink hobbies and personal enjoyment activities. A limiting mindset can zap away every single amazing plan you had for your retirement.

It’s not that frugality is a bad thing (far from it!), but you’ve got a life to live my friend, especially if you have been putting off living that life saving for your retirement. And I bet that you want that living to happen while you’re still healthy enough to enjoy it. Right?

No matter how you’ve done withl building up your savings over the years, setting up a system to keep the concept of a paycheck perpetuating can help you make the most of the only retirement you’ll ever have (At least that is what we hope for everyone). You might have more than enough money in retirement to pay for all the things that you want to do, but without a system or plan to guide you, then you may not ever know it. By the time you reach the point years down the road and realize that you will not run out of money, it is too late.

Typically when this happens, people have already wasted their early retirement years—what we call the "Go-Go" years —and what happens is we find ourselves in the "Slow-Go" or "No-Go" phase when we are are now too old or frail to really enjoy their money. They have less energy, cannot do as much, and their health might not be so good.

Unfortunately, It’s not that uncommon for these people to pass away with more money left over than they ever expected. Their irrational frugality turned them into hermits and kept them from the life they worked so hard, for so long, to reach.

It doesn’t have to be this way. All you need to do is put a plan in place to create clarity ahead of time.

Plan a Reliable Systematic Withdrawal Strategy.

The first step in recreating a retirement paycheck is to plan how you will pay for your lifestyle. In the past, calculating your annual retirement withdrawals was a simple math equation. First, you figured out how much money you had saved. Then, you divided that amount equally based on how long you believed you would live. Voila! That’s your yearly withdrawal amount. Then came the 4% Rule, which said you can withdraw 4% of your assets for income to last your lifetime. Alas, it is not that simple. Bot of these equations become more one-dimensional and have proven to be antiquated in their thinking. Life is just not linear like that. So why do so many financial advisors and planning software tools rely on linear equation when it comes to retirement analysis.

A better way is to plan a systematic withdrawal strategy that accounts for the way we actually spend money in our actual lives during retirement. Maybe you take a huge, expensive family vacation every three years. Maybe you have to buy a new car two years from now. Or maybe you have to pay for a wedding next year or anticipate having some large medical expenses. No matter the specifics, it is just not practical to expect that you will spend the same amount every year. Let’s account for that when determining your annual withdrawal amounts.

Create a Flaexible Retirement Plan to Manage Money in Retirement.

With a flexible retirement plan, you don’t have a set withdrawal ratio each year. You withdraw a paycheck based on what you expect to spend each year. Some years you may have a 10% withdrawal rate. Others, you will only withdraw 2%. Forget about simply selling stocks when you need money—a dangerous plan with the level of uncertainty in the market these days anyhow. And having different buckets to withdraw that income to offset any such declines in any single portfolio or holdings value. If you’re financially ready for retirement, implementing a system to recreate your paycheck can give you the confidence to make the most of your most active years.

GOT QUESTIONS? ASK US. WE CAN HELP WITH THAT!

The ARIES Foundation for Financial Education, Inc is a nonprofit dedicated to the mission of trying to help everyone have a better realtionship with their money. Follow us on social media or catch any of our updates on our Youtube Channel.

The Secret Cost of Pets

183:814504607 (Thomas Alessi) — Wed, 09 Jun 2021 17:45:54 GMT

Should You Have Pet Insurance?

IS PET INSURANCE WORTH IT?

Pet insurance is definitely worth it if you have a pet from a breed with a predisposition to chronic illnesses. Generally, the younger your pet when you obtain the insurance, the lower the premiums and deductibles will be. Pet insurance can also be a good idea if can’t afford the thousands of dollars that an emergency could potentially cost. It's a way to avoid the agonies of economic euthanasia, which the New York Times defines as "the necessity of putting a pet down because the owner can’t afford treatment."

Getting insurance for your pet could potentially cost you more than it’s worth if it has a pre-existing condition (most companies don’t cover these), has the above-mentioned predispostion to chronic illness, or is an elderly pet. If you have a house pet that only lives indoors and is generally healthy then you may never need the insurance. When considering which plan to purchase, you’ll want to look at the differences in premiums, deductibles, and coverage.

WHAT ARE THE PROS AND CONS OF PET INSURANCE?

Pros:

Peace of mind - insurance virtually guarantees you won’t have to make a life-and-death decision for purely economic reasons
Emergency care - insurance can defray the expenses
Long-term health issues - though most companies won’t cover pre-existing conditions, and some may also reset their coverage annually, insurance can make it easier for you to manage the costs of a recurring condition

Cons:

Cost - pet insurance can get very expensive in terms of premium, especially if you have a multi-pet household. However, this can still make sense per pet, and many companies offer multi-pet discounts.
Coverage - most pet insurance plans don’t cover regular check-up costs such as preventive health care, dental, or vaccinations
Pre-existing conditions - pet insurance companies don’t cover pre-existing conditions, so if your pet has an expensive existing condition, you will still have to pay for all the associated treatment yourself

HOW TO CHOOSE THE RIGHT PET INSURANCE:

DEDUCTIBLES

Pet insurance deductibles are the amount of money you have to pay out of pocket before the insurance coverage applies. Just like insurance plans for humans, petcare comes with a wide variety of deductibles, copayments, and premiums.

Usually, pet insurance companies require that you pay your pet’s bills upfront and wait for reimbursement, but some companies have programs that pay vets directly.

It’s important to remember that a low deductible means premiums will probably be higher, and conversely, if you’re okay with a higher deductible, your premiums will likely be lower.

Generally, deductibles can be tracked two different ways:

Annually - one payment per year, no matter how many incidents your pet may have. This is best if your pet is accident-prone or lives primarily outside, which can expose it to more risky situations.
Per-Incident - a deductible is applied for each incident that requires veterinary care. For example, if your dog gets hit by a car, and you have a $100 deductible, that’s all you’ll pay at that time, regardless of how many visits the situation requires. Three months later, your dog eats a whole bag of candy and you have to rush him to the vet. That’s a separate incident, and you have to pay your $100 deductible, before your insurance kicks in.

CO-PAYMENTS

Co-payments are a percentage of the claim settlement amount that you have to pay each time your pet gets a particular type of health care service. If your plan has this option, this means you’ll pay the co-pay percentage in addition to the deductible.

For example, if your dog has to have an emergency procedure which costs $1,000, your deductible is $500, and you have 0% co-pay—you’d pay the $500 deductible, and the insurer would cover the rest.

If, however, you had a 10% copay, then you’d pay the $500, and 10% of the remaining $500, for a total of $550. The insurance would cover the remaining $450.

HOW DOES REIMBURSEMENT WORK?

Most pet insurance companies require that you pay your vet bill upfront, and then they reimburse you according to your coverage, usually between 70-90%. This is the reverse of the copay.

It’s important to make sure that the reimbursement is based on your final total costs, and not on the quote that vets generally give you before commencing treatment. Be sure to read the fine print carefully to be sure exactly what is covered and what isn’t.

Another thing to watch out for with your plan’s reimbursement is whether they have a ceiling.

Some companies are unlimited, whereas others allow you to choose between $5K, $8K, $10K or $15K. A higher ceiling will result in significantly higher premiums, though.

PET INSURANCE PREMIUMS EXPLAINED

Pet insurance premiums are the amount of money that you’ll pay every month for your pet’s coverage.

Insurance companies will look at many factors to determine this, including your pet’s age, breed, size, degree of coverage, and deductible amount. Where you live is also factored in, to account for differences in vet care costs.

When considering your monthly premium, if the amount seems a bit high, check if it’s because you’re also paying for extras like wellness coverage or emergency hospital boarding.

It’s best not to choose a plan solely based on the lowest or highest price, but to read the fine print carefully and consider exactly what you’d be paying for. If it ends up being more than one or two dollars a day, odds are you’re being charged for things you don’t necessarily need.

In the end, it comes down to your budget and a combination of the following factors:

Your pet’s lifespan
Number of vet visits
Number of emergencies
Insurance coverage

However, purchasing health insurance for your pet can also save you a lot of money and anxiety. Without the security of pet insurance, even a small thing like a limp can make you think more about the health of your bank account than your pet’s wellbeing.

GOT QUESTIONS? ASK US. WE CAN HELP WITH THAT!

The ARIES Foundation for Financial Education, Inc is nonprofit dedicated to helping everyone have a better relationhsip with their money. Visit us at www.ariesfoundation.org to learn more.

Charitable Gifting Part 1

183:814504607 (Thomas Alessi) — Wed, 09 Jun 2021 17:45:47 GMT

Charitable Gift Annuities

This week is all about donors. And today is about charitable gift annuities. if you're thinking that a charitable gift annuity might be right for you, or you’ve been thinking about ways you can make donations, then let’s spend a little time going over the basic of how donors set up charitable gift annuities with non-profit organizations. Why doing so is important, not only for the charity, but also for the donors as well. Charitable gift annuities are really effective planning tools both for non-profit organizations and for donors like you before I get into the details of a charitable gift.

What exactly is a charitable gift annuity?

Basically, it's an agreement between a donor and a non-profit. The donor makes a charitable donation, and in exchange for that donation the nonprofit agrees to send the donor payments for life. Let’s say you set up a charitable gift annuity when you're 65. You will receive regular payments of a fixed amount throughout your entire lifetime. This is an income that you cannot outlive. Donors who set up charitable gift annuities can take an immediate federal tax deduction in the year that the charitable annuity is established. Also, a portion of the payments that you receive from the non-profit organization is tax-free. If you have donated appreciated securities to make the charitable gift agreement then you may also be able to avoid some capital gains tax and defer the remainder of that capital gains tax.

if there's a particular organization that you want to support with a deferred charitable gift annuity we here at ARIES Foundation always recommend that you seek out the help of a professional, whether for legal, tax or investment advice, since there can be many different benefits and possible tax implications, both positive and negative tax depending on your age, the size of the gift, and when you want to start the stream of payments. Specifically, if that stream is going to be for a single life or for 2 individuals. The other concern is the type of assets you put into the charitable annuity.

There are distinct factors that come into play when establishing the annuity; Amount of the gift and Age annuity payments begin. A small gift (say $10,000 -$20,000) established to begin at age 50 will be a lot lower than for donor who is at age 90. How long the payments will go (lifetime expectation) determines the monthly income that is generated. The larger the donated amount then the higher the stream of payments will be. Generally the charity will end up with 40% - 50% of the donated amount once the donor(s) have passed away.

GOT QUESTIONS? ASK US. WE CAN HELP THAT!

Join us on Thursday, April 22 at 6:30 PM for this week’s edition of THINK with a DRINK as we discuss all the ways that you can do good, help support your favorite charity or cause, and get a boost at the same time.

https://us02web.zoom.us/meeting/register/tZAqfuuhpj4tHd3KcG9xY3PWkaBjzXFnRC4X

Networking: 5 Tips to Help You Networking

183:814504607 (Thomas Alessi) — Wed, 09 Jun 2021 17:45:45 GMT

Think 5 When It Comes to Networking

5 TIPS TO HELP YOU BE MORE EFFECTIVE AT NETWORKING

In 2019 (prior to COVID) I went to over 90 in-person networking events. 90! If you travel back in time some 20+ years ago when I started in financial services I couldn't fathom even going to 1. Why? The idea of walking into a room full of strangers nauseated me. So much so that I chose to do cold-calling to try to get new clients instead of networking. Talk about banging your head against a wall. I have put together some simple steps and thoughts to help you be better at networking, or at least to give it a try and see what happens.

Networking Tip #1 - TAKE THE PRESSURE OFF

I fell for a lot us there is this undo pressure that if we are going to a networking event that I ahve to come away with people who will do business with me, or buy my stuff, or hire me, depedning on what it is you do or offer. Initially as you are going or trying to convince yourslef to go, think of them instead as people and not prospects. Block out the whole "can I sell to thsi person" or "this guy isn't in my clientele" and just think I am going to meet some new people at a networking event and it will hopefully relieve some of your stress about attending a networking event in the first place.

Networking Tip #2 - GO WITH A GOAL

We reccommend 5, as in I am going to make 5 connections when I go to this netwokring event. Treat it like a game. I must make at least 5 connections before I can end the game. Once you do, then you are free to leave, wehter that takes you 30 minutes or 2 hours. Having a number will help you as you pilot your way around a networking room or event and keep you moving toward your goal.

Networking Tip #3 - DON'T GET STUCK

A lot of us have a fear that no one will tak to us. That we go to a networking function and we will be left standing all by ourselves looking and feeling like an outcast. Then a miracle happens - someone talks to us - hallelujah! We get so thrilled to be in a conversation that we don't want it to end. And then you get stuck. Networking events are not the place for deep conversations, it's a general get-to-know-ya, decide if a follow up for a more meaningful conversation is warranted, and then move on. Remember your networking goal to help keep you moving. You can't keep meeting new people if you are only taking to 1 person all night.

Networking Tip #4 - ASK ABOUT THEM

Easiest way to start a conversation with someone you don't know is to ask them what they do for a living, or in the case of networking "What brings you to this event..." Let them talk. Don't worry if you don't get to tell your story, that's what following up is for. If the person seems interesting or someone that you might want to connect with later on, then ask if it is OK to follow up. Get their card or email and let them you will be reaching out to set up a time to chat and learn more about them and what they do. Author's Note; I always use "chat". It feels more relaxed and less formal, but that's just me.

Networking Tip#5 - BE A CONNECTOR

Maybe you already are or maybe you're not. But this is more of a reverse mind-set. Whenever I meet a person at a networking event I am always thinking of someone else I can introduce them too, or a service provider I know that could be a benefit to their business. Help others. Yes, maybe nothing will come from it, but you'll ultimately feel better about yourself for doing it and there is power in doing good.

That's our Tips for Networking, hopefully you found it to be helpful and informative. If you ever have any questions, then feel free to reach out to us www.ariesfoundation.org or info@ariesfoundation.org .

Networking: 3 Ways To Start A Conversation

183:814504607 (Thomas Alessi) — Wed, 09 Jun 2021 17:45:43 GMT

Here Are 3 Ways To Open A Conversation With Anyone

The question we get asked often is "How do I start a conversation at a networking event?" or "how do I start a conversation at a bar?", or maybe "How do I start a conversation at a party?"

We spoke in our last blog post about trying to take the pressure off in going to a networking event and this is another one of those thoughts for trying to take the pressure off. See sometimes we get locked into thinking, by that we mean that we have all these things floating around in our heads, and when the moment comes for us to speak, well there's way too much going on, and we freeze up and you say nothing. I find it much easier if you've got 3 concepts that you can take with you anywhere, so it just becomes reflexive and you actually will speak up and you'll get in the conversation and maybe meet some cool people.

CONVERSATION #1 "GOOGLE BRAIN"

OK so it sounds a little silly, but think about it, where do you go to get your info today? Technology, right? And one of those places is Google. If you want to know how to get from point A to point B, you go to Google. If you want to know what restaurant is really good in your area, juat type it into Google. The point is that we go to our tech. This first tip; is that instead of turning to our cellphone to ask Google or Siri a question, turn to the person that you don't know and ask them instead. This works even better if it is aquestion that you have been thinking about or ruminating over for some time.

Example: Maybe it's your first time to place or the area where the event is being held. You can turn to someone and ask if they know a good (restaurant, bar, coffee shop) in the area. Do they in the area and what's it like? Then w e can start really conversing witha back and forth; "How do you like it here? What's your favorite thing?" Wwhen you ask them a feeling question When you get down to how they're feeling, that's when the ping pong starts back and forth and now we're talking about how to keep the conversation going, flowing and interesting rather than how to get it started in the first place so that is why Google Brain can be so effective.

CONVERSATION #2 "TWITTER ME"

Unlike Google where we go to ask questions Twitter is more about making statements, which is great, except that for most of us we are trying to come up with something creative or provactive to say, and most of the time we are back to being stuck with thoughts in our heads instead of words coming out of our mouths. And for most us the difficulty here is "Okay, what do I say?

It shouldn't be an off remark, like "Gee it's hot ourtside", or "this is a neat place". You need to put some feeling into the statement you are making that will help engage someone in talking to you.

"Man, I don't know if I can take anyore of this snow. I am getting tired of all the cold weather"

"Wow, I have never been here before, this place is pretty cool"

If you turn to someone and offer them a statement with someof your feelings in it then they will generally offer a reaction or a follow up statement of there own. And then guess what - you are in a conversation.

CONVERSATION #3 - "GREAT TO SEE YOU"

That said, there is one more thing that you can use and this one is more of a line and it works really well in closed social settings like bars, corporations, like any sort of an area, so bars, corporations, universities, friend groups if you're at a party with someone any sort of thing where these people do kind of have a reason to speak to one another you're expected to be social and this one is you just walk up to someone you say, "Hey, I don't think I've met you yet.

I'm..." say your name and you stick your hand out for a handshake.

Or if you in a corporate or netwrok setting where everyone is wearing a name tag then just try

"Hi (name on tage) its' great to see you" This works wonders because it sub-communicates amazing things. First off, it sub-communicates that people are supposed to be mingling here and maybe we have met before at some point. Second, it sub-communicates that you are a social person since you're starting the conversation. They will follow you, stick your hand out right away and they'll reflexively shake your hand and follow it up with

"What brings you here (today, tonight)?"

That's going to get the conversation going so I don't overthink or make it more complicated than it needs to be. Getting and going to events should be the hardest part, once you're there, relax and enjoy, and have some fun atarting conversationa and making conncetions.

QUESTIONS? ASK US. WE CAN HELP WITH THAT!

Check out the ARIES Foundation for FInancial Education, Inc our blog posts https://www.ariesfoundation.org/blog to learn more about about how we might be able to help you.

Divorce & Special Needs

183:814504607 (Thomas Alessi) — Wed, 09 Jun 2021 17:45:41 GMT

Divorce & Special Needs - 3 THings to Consider

5 Things to Consider When Divorce Involves a Special Needs Child

Custody, Visitation & Support Considerations and a divorce action can be complicated. However, when a child has special needs, those concerns and the decisions that have to be made are all the more important. Parenting is challenging. Parenting following a divorce is very challenging, and parenting a specials needs child after divorce is monumentally challenging. The ability to work together as co-parents is all the more important when you are parenting a special needs child.

CONSIDERATION #1

First, you need to consider that while many divorcing parents will only have to truly co-parent on a daily basis until their children reach adulthood, you may be co-parenting on a daily basis for the rest of your natural life. While some special needs children will go on to live independent lives, many will not. It will be important for the two of you to work together to assist each other in the care of your child from day-to-day care, to doctor's appointments, Specialist appointments, Counseling, Independent living skills training. As well as appointments and commitments.

You will have to put your differences aside.

CONSIDERATION #2

There are times when you will need the other parent to provide respite care for you. Everyone needs and sometimes deserves a break, and neither of you should feel guilty about asking for that support. Also, don't use the others need for self-care and time off to berate and belittle the other parent.

CONSIDERATION #3

Be careful how you structure any child support awards your child may qualify for through SSI and medicaid. If the child support is not structured properly, then your child could lose his or her medicaid eligibility. While this may not matter today because your child may be covered on your health insurance, it could become a big deal later on when the child is no longer eligible to be covered on your health insurance plan.

CONSIDERATION #4

Creating a Supplemental Needs Trust (SNT). It is important that if you plan to estbalish or fund a Special Needs Trust that you seek out the help of a professional attorney who specializes in working with special needs trusts in the divorce process. This is in addition to your divorce attorney, so your child will always maintain benefit eligibility.

CONSIDERATION #5

Remember when trying to establish visitation, time-sharing arrangements or other schedules that the consideration of what i best for the needs of the child come first. It may seem like a good idea to allow for overnight visits during a school week, but that may not always work well for your child. Some special needs children have incredible difficulty with changing routines and schedules it's not about you or what you want it is about making sure that the schedule works for your child first and for you second.

Always put your children's needs before your own This is true in every custody case but even more so when your child has special needs.

GOT QUESTIONS? ASK US. WE CAN HELP WITH THAT!

Join us on Thursday, May 6th for our weekly webinar series as we discuss relevant questions on Divorce & SPecial Needs with our guest Attorney Robert Withrow of Rico, Murphy, Diamond & Bean LLP. You can register here:

www.ariesfoundation.org/events

SELL IN MAY & GO AWAY (Part 1)

183:814504607 (Thomas Alessi) — Wed, 09 Jun 2021 17:45:40 GMT

WASH YOUR HANDS & (please) TOUCH YOUR 401(k)

WASH YOUR HANDS & TOUCH YOUR 401(k)

Around this time last year as all of us were settliong in to the beginnings of the pandemic we were parrying the CDC's catchphrase of "Wash your hands and don't touch your face" by trying to give a little guidance and advice to our clients that they should "Wash their hands and don't touch their 401(k)s". While COVID-19 may not have been something that anyone could have predicted (we'll hold off on any judgements on this front as to whether the US was prepared, or took appropiate measures in the beginning). The market collapse that followed was not a surprise. It had been coming for awhile, and what is still amazing is that it took a global economic shutdown to end the longest & strongest bull run on record.

And then the market did something amazing, it not only got up off the mat, but basically wiped out any losses in a historically quick turnaround and has gone on to soar to new heights. In April it felt like new highs were set on an almost daily basis.

What that all means is that your portfolios, specifically your retirement accounts (if you had listened to us and not touched them last year) have also probably seen major gains. But gains where? Depedning on the allocation strategy in your account some of your holdings may have way out-performed the rest of the investments in your account. And while yes this is good as it means there is more money in your total account, it may not be good from a performace standpoint going forward, because now you have added more risk to your portfolio, whether you meant to or not.

TAKE THE SEASICKNESS OUT OF YOUR ACCOUNT

There are choppy waves ahead in the financial markets. And all that growth that has occured in your portfolio may be weighted to 1 or 2 of your assets, which means they now make up way more of your total allocation then you intended. So what can you do? REBALANCE! Figure out what your original risk strategy was, usually this is what you are doing for ongoing contributions from your paycheck. Example: I have 4 funds that I contribute to every week from my paycheck and the money is distributed equally, so 25% each. Go into your account profile and look at your current asset allocation mix. Does each fund hold 25% of the portfolio? Our guess is probably not. So you need to sell what has done good (this is what we mean by "touching" your 401k) to reduce it back down to 25% and then use the proceeds to buy the other fund(s) that has lagged behind (fund not at 25% per our example). Another way of saying this is "Buy Low & Sell High"

BUT WHEN SHOULD I DO IT?

That's the question. There are 3 KEY INDICATORS to be watching to get a sense of what is to come. What are they and why do they matter? Join us on Thursday, MAY 13th at 6:30 PM as we go over these 3 KEYS and other factors in our latest THIRSTY for knowledge THURSDAY "SELL IN MAY & GO AWAY.

You can sign up here: https://www.ariesfoundation.org/events

Preparing For A Major Purchase

183:814504607 (Thomas Alessi) — Wed, 09 Jun 2021 17:45:34 GMT

7 QUESTIONS TO HELP YOU PREPARE

7 Questions to Ask Yourself Before You Make a Big Purchase

It's important to make sure that you're financially ready to make a large purchase--and that it fits in your budget. Everyone hass a different ideda of what qualifies as a big purchase and it depends on several factors from your household income, to the amount of debt you have, or even how much you have in your retirement savings.

When considering making a large purchase, ask yourself these questions before making a committment or signing any paperwork.

1. Can I Pay Cash For The Item?

Obviously we are not talking about buying a home or even an automobile, but for all other items then you should abide by the rule of trying to pay cash. If you can afford to pay cash for all or most of the item—while still maintaining a balance in your emergency fund— then you should be okay purchasing the item. Not needing to pull emergency fund money means that the purchase should not adversely affect your current monthly budget. If you do not have the cash on-hand, or you will be emptying out your emergency reserve funds, then consider holding off on buying, at least until you have a high percentage (more than 50%) saved up to make the purchase. For a home or auto then shoot for at least 25% of the purchase price as a downpayment.

2. Do I Really Need This Item?

Take a step away for a moment, relax, deep breath, and ask yourself the question. By asking if you need the item helps you think about whether you really need it, or if it is something that you simply want to have—a luxury purchase. If it is a luxury purchase, be sure that you can afford it and that you can pay cash for it. If it is a true need, then you need to determine why you need it and when. For example, you may need to buy a car, since yours needs frequent repairs (Need). But buying a top-of-the-line flat-screen TV (Want) just to have it, is a purchase that can be delayed. Determining if the purchase is a want or a need can help you to prioritize it in your budget.

3. If You Do Need the Item, Do You Need It Right Now?

If you do need the item, but you do not currently have the cash for it, is there any way you can do without the item for a short time? For example, if your dryer has stopped working and you need to purchase a new one, can you hang your clothes out to dry, or use your local laundromat while you save up for a new dryer? You may also be able to borrow the item from a friend or family member while you are saving up to purchase one of your own. You can also set up a sinking fund to help you save up the costs.

4. Can You Find a Used One that Will Work?

Looking for used items is a great way to save money on a big purchase. You can buy lawnmowers, refrigerators, freezers, and almost any other item used for a fraction of the cost of a new item. Often you can buy professional-grade appliances and tools this way and end up with a better quality item at a lower price. Take time to research your items to determine if it's a good purchase.

5. Is It Worth the Investment to Purchase the Higher-Quality Product?

It may be worth the money to spend extra to get the top of the line product that will hold up to wear and tear and last longer. For example, you can purchase an average vacuum cleaner at a store for anywhere from $50-$80, but these vacuums often break after a year or two. If you purchase a more expensive vacuum for $500 with a five-year warranty, you may end up saving more money than if you bought a cheaper vacuum and had to replace it a year or two later. This quality issue is especially real if you can purchase the expensive vacuum on sale.

6. When Does the Item Usually Go On Sale?

There are cycles of sales in retail. If you can wait a month for two, you might save a bundle by waiting for the sale. For example, the best time to buy a lawnmower is in October when stores are discounting them to make room for winter items. Specific holidays can bring sales as well, often retail stores will have Memorial Day and Labor Day sales. And there is always Black Friday and the holiday season. Normally just before the Super Bowl is a time when large screen televisions go on sale.

7. Have You Done Your Research?

When you purchase a big-ticket item, you should take the time to research the reviews and issues related to the product thoroughly. You should find a product that has the features you want at the best value. It is always important to go in with a spending cap or budget in mind as well.

GOT QUESTIONS? ASK US> WE CAN HELP WITH THAT!

The ARIES Foundation for FInancial Education, Inc is a nonprofit dedicated to the mission of trying to help everyone have a better relationship with their money. Visit www.ariesfoundation.org to learn more.

The Secret Cost of Pets

183:814504607 (Thomas Alessi) — Wed, 09 Jun 2021 17:45:32 GMT

It Costs How Much To Own A Pet?

The Realities Of Owning A Pet

OK, so cats and dogs have been friends with humanity for tens of thousands of years, and in the early days the relationship was fairly mutually beneficial, the animals got a safer life with plenty of scraps to eat in exchange for keeping predators and vermin away from homes. Today it's much more of a one-way street - Americans spend more than 60 billion (yes, that's a "B") dollars a year on our furry friends. That's a lot of kibbles & bits.

Understanding The Cost

According to a recent survey 98% of cat and dog owners significantly underestimated the lifetime cost of their pet by a wide margin. The majority of respondents thought it would be less than $6,500. 12% of those owning a dog or cat stated that they expected to pay less than $650 for the pets entire life! These people know that animals need food right? Just kidding, but clearly they were not adding things up correctly. So how much does it cost to own a pet? The ASPCA estimates that the average lifetime cost is around $15,000 for dogs and $12,500 for cats. And the ASPCA estimate does not take into consideration things like property damage or boarding. A more expansive study done in Great Britain put the numbers even higher, which may sound surprising for some, but it makes sense once you start itemizing everything. Take for example, the owner of a mid-sized dog, after the initial cost of adoption, baying and neutering, then other purchases like crates, bowls, colalrs, leashes and toys. You then have to expect outlays for food, medical bills, grooming, and let's not forget treats.

It All Adds Up

For the owner above the average annual outlay is probably going to be somewhere between $800 - $1500 year. If the average life of a dog is 12 years then you are looking at a conservative lifetime cost of over $10,000. And that doesn't even include anycosts associated with emergency medical visits. Most people considering a new pet probably don't think of it as being as expensive as a new car or a down payment on a house, but clearly it can impact your finances. However there can be a positive impact on your life as well. Many health studies have found a relationship between pet ownership and improved mental and physical well-being. People who own a dog or cat tend to make fewer visits to the doctor and have lower rates of depression. Children who grow up with animals in the house tend to have stronger immune systems making them less susceptible to viruses and allergies. Even seniors who care for pets actually tend to live longer than those who don't, but that doesn't mean you can't still be cost conscious while being a pet owner. Have you considered adopting versus buying? Not only would you be helping alleviate the widespread problem of animal homelessness, but shelter dogs and cats tend to have fewer health problems. What about fostering a pet? This is a great way to determine if being a pet owner is for you, but the shelter may pay for the medical costs and some of your other expenses may be tax-deductible.

Cut Down On The Costs?

Some people purchase pet health insurance as a way to cut down on medical costs, but most plans will not save you money on routine vet bills, just rare procedures like surgery. If you have a purebred dog many plans will specifically not cover the conditions your breed is prone to experience. Our suggestion is a separate pet emergency expense account (this is not to be confused with your emergency reserves fund), so should something happen to your pet you do no tfind yourself in the situation of having to make the very difficult choice between care or going into debt. We are not saying that you should feel bad about spending money on your pets. Our pets make us happy and happiness is a good reason to spend money, but keeping track of how much you're spending will help you make better financial plans for the whole family.

GOT QUESTION? ASK US. WE CAN HELP WITH THAT!

The ARIES Foundation for Financial Education,Inc is a nonprofit dedicated to helping everyone have a better relationship with their money. Visit us at www.ariesfoundation.org or shoot us a question at info@ariesfoundation.org

Creating Wealth at Different Ages

183:814504607 (Thomas Alessi) — Wed, 26 May 2021 13:13:45 GMT

Wealth Building at Different Ages

Building Wealth at Different Ends of the Age Spectrum

Think about what your life was like 5 or 10 years ago. It probably looked a little different then it does now, right? Maybe you were still in school, or you weren't married yet and didn’t have any kids. You might even have had a different job and salary.

Now let’s talk about the future: What do you want for yourself and your life, say 10 or 15 years from now? That’s a lot to try and take in! But let's face it - a lot can happen in a decade or more, and what you do right now—no matter what age or stage of life you’re in—it can have a huge impact on where you will be 10 years from now.

Here’s a look at ways to create wealth at the beginning or end of your career timeline and ways that you can maximize your savings potential.

Building Wealth in Your 20s

You’re a millennial. Rretirement feels a lifetime away, because it is (technically it is probably two lifetimes) and you're thinking what does that have to do with you? A lot, actually. Because you have the most opportunity when it comes to retirement. There should be no stopping you when it comes to building wealth because you have the one thing other generations don’t:time, and for once it is actually on your side.

Here’s a scenario: Let’s say you begin investing $200 a month at age 24. But your friends, who bought new cars and took dream vacations on credit cards, delay saving for retirement until age 34 while they pay off their debt. At age 64, you’d have around $1.7 million in retirement savings. However, your friends would only have $560,900. That 10-year head start makes you a million dollars richer!

If you’re in your 20s, you’ve got a great opportunity to create a solid foundation for your future. Don’t waste it!

Ways to start building wealth in your 20s:

Steer clear of debt. If you have debt, use our debt momentum model to knock it out of your life as fast as you can—student loans included. If Sallie Mae is hanging on your couch, as her to leave ASAP.

Live below your means. Just say no to things you can’t buy with cash! Overspending every month can dramatically impact your ability to save for retirement. Raise your standard of living slowly. This is not the time to grow leaps and bounds in houses or cars. Paid-for clunkers and small apartment rentals will do just fine while you secure your financial footing.

Budget like you mean it —because your future depends on it. A monthly budget details where every dollar goes. Make sure your budget accounts for all your spending and include things like food, clothing, housing, bills and savings. Plus, a budget ensures you’ll have the money for the things that are important to you, like fun time and retirement savings.

Start early. As you can see in the example above, it doesn’t take a lot of money to build a million-dollar retirement—as long as you start early! The earlier you can begin, the better! Even if it is say $50 a month or 1% of your salary. Getting started is the biggest step. That’s a wealth-building habit that will pay off not just in dollars, but in opportunities for you down the road.

Building Wealth in Your 50s

Here's a reality check for you - more than of half of working baby boomers aren’t currently saving for retirement, and to make it worse, most of these boomers have no plans to begin saving at all.

You need to take advantage of the retirement savings opportunities that come with age. If you don’t, you will probably face a serious financial crisis in your retirement years. So, if you find yourself in your 50s with little or no savings, it is the time to do some serious catching-up.

Some options include:

Look to the annual catch-up provision available. If you are turning 50 this year or over age 50, you can invest an additional $1,000 in an IRA for a total of $7,000 each year. If you are a participant in a company 401(k) then you can add an additional $6,500 for a total of up to $26,000. These can be a seerious boost to your account balances!

Think about ways to downgrade your lifestyle. If you have children and they are getting ready to spread their wings, go to college and start their careers, you may be on your way to becoming an “empty nester” sometime in your 50s. Now might be a good opportunity to look at downgrading your house (do you really need four bedrooms?) or look for other areas where you can cut expenses so you can put more money toward retirement.

Health insurance. The likelihood of needing medical care increases with age, so be sure to keep at least basic medical insurance coverage at all times. One major health crisis could set you back financially and delay your ability to invest more for retirement.

As you reach your late 50s, you might want to start thinking about what you want to do about Social Security. You can claim retirement benefits as early as age 62 or as late as 70. Delaying your claim will increase your monthly benefits. If you can wait until your full retirement age, you'll receive more money each month.

GOT QUESTIONS? ASK US. WE CAN HELP WITH THAT!

The ARIES Foundation for FInancial Education, Inc. is a nonprofit dedicated to trying to help everyone have a better relationship with their money. Want to learn about ways to create wealth? Visit us: www.ariesfoundation.org to learn more and see how we may be able to help your money relationship get on a better track.

CREATING WEALTH

183:814504607 (Thomas Alessi) — Mon, 24 May 2021 13:15:54 GMT

7 Thoughts for Creating Wealth

Building wealth comes in many different forms, if you plan on a slow & steady accumulation then setting up a savings plan and investing $50 to $100 per month into a Roth IRA. But that is a long, slow ride that takes a lot of time and discipline to succeed. And while yes, it’s great as a long-term strategy, it’s not going to make a difference in the short-term. And a lot of us need to see changes or increases sooner rather than later to keep us interested and motivated. So waht can you do?

It's always a good idea to talk to several professional investors to see what has worked for them. The best question you can ask any financial professional is how they are investing their money – it will speak volumes.

Let's step back for a moment. You might be thinking: "How in the world can I learn and do all this stuff? Is it even possible?"

Don't think that you have to do everything. Instead, focus on a few things and do them well. It all starts by investing in yourself. Listen to podcasts, read books, take millionaires out for lunch (yes, you buy).

As you make it a habit to find ways to better yourself, you'll also find new potential ways to build wealth faster than ever. Everyone does it differently, and nobody will do it exactly like you. You're unique and you'll find a way. Just give yourself a chance! You will be gald when you give yourself a chance.

Great wealth builders focus on both saving money and earning more.

What we are pointing out here is the gap between your expenses and your income. Expenses should always be lower than your income. The larger that gap, the more wealth you can accumulate.

Let’s face it, you can’t invest unless you have money to invest. If you’re currently living beyond your means and have no additional money to put to work for you, you’ll never build wealth.

LOWER YOUR EXPENSES

1. Save on Vehicles

2. Save on Shelter

3. Don't Buy Stuff You Don’t Need

4. Save a Percentage of Your Income

EARN MORE MONEY NOW

5. Work Hard Now

6. Invest in Your Education

7. Invest in Yourself and Your Marketing

Win or learn, never lose.

GOT QUESTIONS? ASK US. WE CANHELP WITH THAT!

The ARIES Foundation for FInancial Education, Inc. is a nonprofit dedicated to the mission of trying to help everyone have a better relationship with their money. Visit our website www.ariesfoundation.org to learn more and see how we can be of help to you.

Negotiating Skills

183:814504607 (Thomas Alessi) — Fri, 21 May 2021 14:30:46 GMT

3 Tips to Improve your Negostiating Skills

How can you improve your negotiation skills? Even if you hate to negotiate. Even if you are afraid to get started with it. Even if you have no idea where to begin. We will share 3 TIPS to help you get started.

TIP #1 - TRY TO SEE THINGS FROM THE OTHER SIDE

Before you sit down and try to negotiate with someone you should try to take the perspective of the person you're negotiating with. This is based off a research study done by Columbia business School professor and negotiation expert Adam Galinsky where he found some interesting insights behind what helps people close a deal.

Here's what went down. They got together a 154 undergraduate students and broke them into three groups. Each group was given different directions on how to approach the sale of a gas station. The first group, (the control group), was told to just negotiate the sale. The second Group, (the empathy group), was told to imagine how the other person was feeling. And the third group, (the perspective taking group), was told to imagine what the other person was thinking. What happened? 54% of the empathy group struck a deal, which compared with the 39% of the control group was a significant increase, but what about the perspective taking group? They struck a deal 76% of the time!

So that means when you want to negotiate the close of a deal take the perspective of the person you're talking to. Try to think where he's coming from, what is going on inside of his head? Why is he looking to make a deal in the first place? Can you align his incentives with your own?

TIP #2 - ALWAYS ASK FOR MORE THAN YOU REALLY WANT

Let's say you are negotiating a job offer and you really want a five thousand dollar increase in your salary. What should you do? Don't ask for five thousand dollars. Ask for ten thousand dollars and a week's vacation.

Why? Asking for more than you really want gives you the opportunity to make sacrifices while you're negotiating. After hearing your offer the hiring manager is probably going to say you're asking for too much. But that's okay you've got five thousand dollars and a week's vacation worth of wiggle room. You can sacrifice that extra money and vacation time, meet the hiring manager in the middle and agree on that five thousand dollars salary increase. Which is what you really wanted anyway. So if you're negotiating your salary, a client contract, or anything really ask for more than you're willing to take. Get it?

TIP #3 - SAYING NO IS NOT YOUR FAULT

Here's the deal. When you take responsibility for the no you're positioning yourself as the foe and the other person could get defensive and that's no good. However, when you pass the blame to someone else you take on a different role. Instead of being the enemy you're actually working with the person you're talking to find a common resolution. Be the good guy.

Let's say you are trying to hire a worker or someone to fill a position, but the person wants more than you have been given to pay them. How can you handle that? "Sorry, but I have been strict guidelines by the people in charge that his is as high as I can go for the job/salary etc... If it was up to me I would, but unfortunately it is not up to me. If you can do it for this amount then we cna move forward." In this case you are positioning yourself as a friend with the boss or business as the person to blame. You put yourself on the same side as the person you are negotiating with, which gives them the sense that you are on their side in trying to work out a deal.

There are 3 Tips that you can use to become a master negotiator;

See Things From Their Side
Always Ask For More
Saying No Is Not Your Fault

GOT QUESTIONS? ASK US. WE CAN HELP WITH THAT!

The ARIES Foundation for Financial Education, Inc is nonprofit dedicated to the mission of trying to help everyone have a better relationship with their money. Visit us at: https://www.ariesfoundation.org/ to leaqrn more, or shoot us an email and we are happy to answer your questions: crichardson@ariesfoundation.org

SELL IN MAY & GO AWAY (Part 2)

183:814504607 (Thomas Alessi) — Wed, 12 May 2021 11:53:35 GMT

LETTING GO OF A GOOD THING

EVERYBODY LOVES A WINNER

Sometimes having a little too much, especially when it comes to investments isn't always a good thing. We tend to want to stick with something that is doing well, but is that a suitable approach?

Just like about anything else that you deal with, can it be detrimental to have too much of a good thing? The answer is usually a resounding YES! And while this may seem counterintuitive (though just think about having excess wine or desserts), over time the preformance of a particular asset can shift a portfolios intent -and its risk profile. There is a funky term for this; "Risk Creep", and it happens when a portfolio has its risk profile shift over time.

DECIDING WHEN TO ALLOCATE INVESTMENTS

There are several factors at play in this; time horizon of the holding, risk tolerance, and specific goal. Next, the individual holdings are selected that pursue the overall objective. If each of them had the same hypothetical return, that balance - "allocation" - would remain steady for a period of time. But as we discussed in our last blog, that's generally not how it works, and over time the portfolio bears little resemblence to the original strategy. Rebalancing is the process of restoring the portfolio to its original risk profile. Remember, asset allocation is an approach to help manage investment risk.

TWO WAYS TO REBALANCE

Method #1 - Use New Money. If there is on-going contributions to your account, like a 401(k), then consider using the new money that is being added to purchase the holding(s) that are underperforming. Ex: Let's say your Bond allocation has dropped from 40% down to 30% of your total portfolio. You would then direct new money going in to purchase more of the Bond position(s) to increase its portion back up to 40% of the total allocation.

Method #2 - Sell The Winners (when to let go). In this scenario you are selling a portion of the holdings that have outperformed expectation and using the proceeds to buy the underperforming asset(s). As we pointed out in Part 1 of this blog posting when you complete this transaction you are ironically "Selling high & buying low".

Tax Note: If you are doing this with a non-retirement account then there could be potential tax consequences involved. At the ARIES Foundation we always strongly suggest that if you hve questions on any subject, especially taxes, that you seek out the help of a professional before making any decisions.

Peridoically rebalancing your portfolio is a strong investment decison regardless of makret conditions. One suggestions is to pick at least one day of the year to schedule a time to review your allocation; Your Birthday, Your Anniversary (so you remember it), then make the determination as to whether or not any changes should be made.

GOT QUESTIONS? ASK US. WE CAN HELP WITH THAT!

Shoot us an email at info@ariesfoundation.org and we are happy to try and help. Or you can visit our website www.ariesfoundation,org to learn more

What's In Your (Bitcoin) Wallet?

183:814504607 (Thomas Alessi) — Fri, 16 Apr 2021 15:18:16 GMT

How Do Cryptocurrency Wallets Work, Anyway?

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What is Cryptocurrency?

183:814504607 (Thomas Alessi) — Mon, 12 Apr 2021 13:45:40 GMT

You Can't Help But Hear The Hype on Bitcoin

It is very difficult today not to have heard of Bitcoin. And by now you've probably seen the hype it has had over the last few weeks reaching all-time highs, and then boom! it starts dropping and loses $1,000s of dollars within minutes, only to have it rebound right back and start hitting a new all-time high a few days later. Approximately 10 years ago 10,000 bitcoins were used to buy 2 pizzas...Now one coin is worth over $60,000!

But what is Bitcoin really? It is a new form of currency known as cryptocurrency or crypto for short, however it's not like everyday paper money that were used too. It is a form of digital currency invented by a mysterious person known as Satoshi Nakamoto. The goal was to create a peer-to-peer system for online payments (peer-to-peer means that it's decentralized and works independent of any financial institution) Think of it like this - when you go into a coffee shop to buy a latte with your bank card, you don't actually give any money to the cafe owner the bank does. When you use digital currency there's no banks, no entities, or governments that control it, eliminating the need for a middleman.

So where do Bitcoin and other Cryptos come from? They are mined, but not in a traditional sense as you might be thinking with a pickaxe underground, instead they are done with computing complex mathematical equations. Once the equations are solved then new bitcoins are generated or mined. The term mining is commonly used because like our mineral resources, there's only a limited number of bitcoins out there, in the case of Bitcoin that number is around 19 million .

But there's more - see miners don't just generate new bitcoins, they use their computers to verify transactions and prevent fraud. It is done 24 hours a day, every day! By collecting all transactions made during a set period into a list called the block, it's the miners job to confirm those transactions and write them into a general ledger. This ledger kind of resembles a huge, giant, universally accessible spreadsheet, so instead of one person controlling everything, there are thousands of computers around the world connected to a network. These computers then all come to an agreement on which transactions are actually valid.

So how does it do all this? By using something called blockchain. Think of it like this, if bitcoin is email then blockchain is the Internet. iI's a whole ecosystem, but taht is a blog for anopther day. The other important consideration is that mining Bitcoin is very costly. You have to factor in the hardware components and the power needed to run that equipment, which would make it almost impossible for an individual to try mining Bitcoinwith any real success. What you have innstead are Bitcoin farms around the world that are dedicated to mining, processing, and verifying transactions.

An individual can invest in a farm and get a small percentage of the returns. Alternatively Bitcoin can be traded on some exchanges or marketplace where you may buy or sell your crypto in exchange for regular currencies.

Do you think Bitcoin is going to revolutionize how we use and think about money, or is it all just hype?

Join us on April 15 for our next THINK With A DRINK as we dive into all your questions about Cryptocurrencies and other Alternative Investments. Register here: https://us02web.zoom.us/meeting/register/tZcpdOqgrz0qGNHiO5h_O3DHaLtrvYyzdJci

Life Insurance

183:814504607 (Thomas Alessi) — Wed, 07 Apr 2021 18:43:19 GMT

5 THINGS ABOUT WHOLE LIFE INSURANCE

Are you struggling to figure out if whole life insurance is a good product for you to buy then here are five benefits to help you make that decision benefit

#1 CONTROL - is control when you have a whole life insurance product you are signing a contract between yourself and the insurance company. Essentially this is a private contract between you and the insurance company which is a huge benefit for you, because that means you are in complete control. Which unlike other financial products out there you may, or may not have that level of direction of what happens with your account. That includes being able to access it and use it however, whenever you wish. One of our adages is that you don't lose money until you lose control of it, so a nice aspect of whole life insurance is that you maintain control throughout your entire life.

#2 CASH VALUE -every single time that you make your premium payment cash value accumulates inside your policy. Now there are 2 ways for you to access this cash value; through a withdrawal or through a loan. If you decide to use the loan feature to access your cash value then you do not disturb the compounding inside this policy. This is kind of cool, if you think about it, it is kind of like being in two places at the same time. You can use the loan to accomplish many things; pay off debt, offset market volatility, pay down or eliminate outstanding debt. You are able to do all these things and not disturb the compounding when you take a loan. You can also do a withdrawal but through a withdrawal you reduce the cash value inside your policy.

#3 DIVIDENDS -these are a non guaranteed portion of your contract premium. If your policy is provided by a mutual insurance company, then you could possibly be paid a dividend each year, Now a dividend is at the end of the year when the insurance company is profitable and they've paid all of their expenses whatever is left is returned back to the policy owners in the form of a dividend. For IRS reporting purposes these funds are classified as nontaxable, so you are not taxed on these dividends. Which is kind of amazing because you don't have to do anything, just own a policy and you are able to share in the profits of that company through the forms of a dividend benefit

#4 RIDERS -are additional features and benefits that can be added to your policy for your specific needs. There is a terminal illness rider, if you elect this option with your whole life insurance policy and you're diagnosed with a terminal illness a portion of your death benefit can be utilized to take care of your medical expenses. This rider is similar to the chronic illness rider and if you are diagnosed with the chronic illness then a portion of your death benefit can be utilized to take care of your medical expenses while you're still living. Another one is disability waiver, if you get disabled then the company will continue to pay your premiums for the rest of your life. For comparison check and see if your 401(k) plan has this feature. The answer is Not!

#5 TAXES - because you put in after-tax dollars into a whole life insurance policy the cash value grows at a tax-free rate now what did this mean for you all the years that you have your whole life insurance policy you are not going to be taxed on any of that growth nor the cash value that you utilize as long as you request a loan and the nice thing about adding after-tax dollars into your whole life insurance policy is the fact that you know where taxes are right now you have no idea what taxes are going to be in the future.

Now you know the five benefits of whole life insurance do you know how to use your policy because you can actually use it right now today while you're living by accessing the cash value inside your policy because the thing that you need to know is that you can use your policy right now today and you don't have to wait years in order to access your cash value.

GOT QUESTIONS? ASK US. WE CAN HELP WITH THAT!

Reach out to us at crichardson@ariesfoundation.org or visit our website www.ariesfoundation.org to learn more.

Divorce

183:814504607 (Thomas Alessi) — Mon, 22 Mar 2021 18:07:55 GMT

Being Financially Prepared For A Divorce

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PUA & TAXES

183:814504607 (Thomas Alessi) — Mon, 15 Mar 2021 16:50:36 GMT

The American Rescue Plan and Filing PUA Taxes

Here’s how it affects PUA:

Pandemic Unemployment Assistance (PUA) now runs through the week ending September 4, 2021.

Do I automatically get the extension?

You can or will depending. The best thing to do is to continue to file your weekly certifications. You should see the additional money show up soon in your account balance. We expect delays, but the new funds should automatically be added to your account.

Will I still get the $300 extra each week?

Yes, the Federal Pandemic Unemployment Compensation (PUC) program will continue to provide an extra $300 per week until the week ending September 4, 2021. All you need to do is continue filing your weekly certifications to receive these extra benefits. They will be paid at the same time as your weekly PUA benefits.

Do my PUA benefits count as taxable income for 2020?

Yes, you do have to report your PUA benefits as earned income when you file taxes. You will get a 1099-G form in the mail that lists your income from PUA, PUC, and the Lost Wage Assistance program from the end of the summer (the previous extra $300 per week). Note: If you didn't receive a 1099-G don't panic, either add the income on your 1040 or go online and print out a blank form.

As part of the American Rescue Plan, the federal government will forgive income taxes on up to $10,200 in benefits per person, as long as your gross income was less than $150,000. That means if you and a spouse both collected unemployment benefits, the government will forgive taxes on up to $20,400.

What if I’ve already filed my taxes?

You can file an amended return to claim the $10,200 exemption, but we recommend waiting until the Internal Revenue Service (IRS) gives more guidance on what to do if you’ve already filed your taxes and need to amend your return. We recommend reaching out to a professional if you have questions on delaing with tax concerns.

Should I wait to file my taxes?

We recommend waiting to file your taxes until after the Internal Revenue Service (IRS) has issued more guidance about how to get the tax forgiveness for up to $10,200 in unemployment benefits when filing your taxes.

GOT QUESTIONS? ASK US. WE CAN HELP WITH THAT!

Join us on Thursday, March 18th at 6:30 PM for another THIRSTY for knowledge THURSDAY webinar on PUA & TAXES: what to know on how you owe

www.ariesfoundation.org/events to register and learn more

Renting vs Buying A Home

183:814504607 (Thomas Alessi) — Fri, 26 Feb 2021 20:40:08 GMT

Pro's & Con's and Which Makes Sense for You

Is buying a home right for you? Should I rent or buy a home? It’s not an easy question to answer, and there’s a lot to take into account when weighing such a big decision. Regardless of your financial situation, renting and buying each come with a set of benefits and drawbacks. A monthly rent check covers most of your housing expenses in one payment.

When you buy, not only do you have a monthly mortgage, but you also have other costs that go along with owning —like maintenance, homeowners insurance, and repairs. And, if renting is less expensive, it could help you free up some money to save for other things. Renting also gives you the flexibility to easily move when your lease is up. As with anything else, renting has its downsides. For starters, you have less control over your living environment.

If you rent, you’d have to get your landlord’s approval for some changes, like painting your kitchen. Financially, there are cons, too. Namely, your rent can go up or your landlord may not offer you a new lease, which could lead to moving costs. Of course, buying has its pros, too. You can pretty much do whatever you’d like with your space —if you want to recreate the ’70s, there's nothing stopping you.

Plus, there are many financial benefits of buying, both in the short term and in the years to come, offering you a chance to make a significant investment in your future.

For instance, depending where you live, you might find it’s actually more affordable to buy a home than rent. And, if you have good credit, you may get a low interest rate, which could help make for a more affordable monthly mortgage payment. Another big plus is the ability to potentially deduct mortgage interest paid to lower your taxes. A tax expert can help you see how much you might be able to save.

With each payment, you chip away at the loan’s balance, helping to build equity in your home. Equity is the difference in the appraised value of your home compared to what you owe on your mortgage. You may also build equity if the value of your home increases. One of the benefits of building up equity is that, down the road, you may be eligible for a home equity line of credit —which can be used for a lot of things like paying for unexpected expenses, renovation, education, or consolidating and paying off higher-interest-rate loans. But there are cons to buying, too.

What happens if your water heater goes kaput? Well, if you own, that usually means having to lay out a good chunk of change. Or, let’s say you’ve been offered your dream job three states away. You’d likely have to sell or rent your place before you move. Now, consider that you'll need to be prepared with a down payment and some extra funds for closing costs.

For the down payment, ideally, you’d put down at least 20% of the cost of the home you’re buying.

That can get you a better interest rate and spare you from paying for private mortgage insurance —an added expense lenders typically require to protect themselves, in case you default. However, if saving 20% for a down payment seems daunting, you may have other options, including government-sponsored loans. On top of a down payment, you’ll also need cash on hand to cover closing costs and unanticipated expenses. Your mortgage lender will provide you with an estimate of your closing costs.

In addition to all of those considerations, costs for both renting and buying can vary wildly depending on what real estate market you’re looking into. So, start by asking yourself the following questions, and be honest.

Do you feel you need to save more for a down payment? Could changing conditions affect your job security? Is home maintenance something you want to avoid?

Would a mortgage prevent you from saving for other things? Do you need to build or rebuild your credit? Are you planning to move in the near future? Now, if you answered yes to any of those questions, renting should be a serious consideration, at least for now, because buying isn’t always the right fit for everyone.

In the end, deciding to buy a home is a personal decision, and only you can choose when and if it’s right.

Since it’s a very expensive and important purchase, you owe it to yourself to consider all of your options. Once you do, your answer to the question, “To own or not to own?” will become a lot clearer.

GOT QUESTIONS? ASK US. WE CAN HELP WITH THAT!

Visit our website to learn more about what we do www.ariesfoundation.org

MISSED THIS WEEKS WEBINAR?

You can watch the world premiere on Sunday at 6:30 PM on our YouTube Channel

https://www.youtube.com/channel/UC8XA1to8IHXsqsrGfWfRaHA

Paying For Your Phone WIth A Plan

183:814504607 (Thomas Alessi) — Tue, 23 Feb 2021 22:53:38 GMT

EVEN A LITTLE DEBT ADDS UP QUICKLY...

BUYING YOUR PHONE ON A PAYMENT PLAN

When you buy your phone on a paymnet plan you are putting yourself in debt. Let's say you buy a $1,000 phone and you paid the tax upfront, you now owe $1,000, even if that's split up over 24 months. And for fun, let's say last year you bought the new iPhone 11 Pro for $1000 on a plan and it's only 42 dollars a month. Now the newe iPhone 12 is here and your provider has a trade-in program where you could trade in your newest phone and get the latest and greatest phone and keep the same payment plan. And you've been doing this year, over year, over year, and you know what happens? You never end up owning any of these phones. You're just borrowing them or renting them, and every single time you literally get no value out of the phone. so you pay for twelve months you put half the phones value and then you trade it in and you get the next phone or you trade it in you get a credit towards the next phone but you never own the phone at no point have you paid the phone off and this is inherently the problem

See whenever you are buying things using credit cards or payment plans the mindset is usually, I'll pay it off eventually. But you are not thinking about it in the best way. If you thought about things in terms of the way that businesses do, then anything that does not appreciate in value is considered a loss of income, or bad debt. So when you buy a phone for $1000 and the next year it is now only worth $400 or $500, then you've paid all this money and you actually lost money. When you invest in depreciating assets like a phone, or a tablet, or a computer you invest your money in something that's depreciating. Now I know we all use mobile phones and computers to make money, but we don't need the newest gadget to do that. An iphone 10 does the job the same as an iphone 12.

If you had just kept your phone instead and had no payment, you would just have your monthly bill to pay for using the cellphone service. Which woul also mean that you did not have the extra $42 a month payment for your new phone. Wouldn't that be wonderful! Imagine what you could do or pay off wiht that extra money each month. This starts the trend for us. If we can nip it here, then we can move on and tackle other types of debts that we accrue. See while we think we are gaining more stuff in our lives, what we are actually doing is putting ourselves deeper in debt. In our opinion the right way to grow your wealth is being patient and buying things with cash. Don't put down the bare minimum and carry a large debt balance...So you have to drive an older model car, or not have the newest and shiniest cell phone, or move into a smaller home until you can afford a larger one. The best way to do any of this buying is to save up and be able to either A) Pay Cash or B) Put down a large deposit (more than 50%) it will go a long way to helping you lead a less stressful (at least from a financial point of view) life. Maybe even declutter your life a little. Think about it. How much money you owe other people, how many times you've bought stuff on credit, or went into debt over a materialstic thing?

And maybe, just maybe, you may find that haveing less stuff isn't such a bad thing. That maybe it can be a positive thing. Because if we really look at our lives and how we are living, sometimes we are trying to compensate or make up for things just by buying stuff...But are you really happy? you need to answer that question for yourself, but I say is don't use debt, or set aside funds in your budget so that you can afford it. There is a very simple rule to follow: if you don't have the money today, and you have to use a credit card to afford it, then don't buy it. Have patience and wait. Build us some savings or a down payment and then buy it, even if it is last year's iphone.

Got Questions? Ask Us. We Can Help WIth That!

ARIES FOundation for FInancial Education, Inc is a nonprofit dedicated to the mission to help everyone have a better relationship with their money. Vist our site www.ariesfoundation.org to learn more about what we do.

Is Cash Really Still the King

183:814504607 (Thomas Alessi) — Mon, 22 Feb 2021 15:35:48 GMT

Cash vs. Credit - Who Wins This Battle?

This is to be a 5 Round Challenge

In this corner we have the reigning long-time king of the ring - CASH, In the other corner we have the new up-and-comer CREDIT. We will be judging each round and then announcing the overall winner based on 5 criteria; Acceptability, Safety, Anonynmity, Rewards, and Credit Score

ROUND 1 - Acceptability OK, so it is universally understood that most places will take cash; Franklin, Grant, and Jackson, just about everyone accepts cold-hard cash as a form of payment for all debts, whether they be public or private, no matter where your journey leads you one thing you can count on in life is that everyone wants money. But what if we are away someplace the dollar isn't accepted? Sure it's easier to pay with credit, but those transaction fees add up, plus remember you had better not forget to call your credit card company before your trip as they could flag your overseas spending as fraudulent and lock your account. Of course, there are those mom-and-pop restaurants or local tour guides that may not even accept cards, so it's always prudent to keep cash on hand.

That bring us to portability & convenience. A credit card takes up very little of your wallets real estate as compared to all those coins and bills, and swiping is super convenient, but depending on the size of the purchase it can slow down the transaction which isn't so pleasant for customers behind you in line. Also, there is the fact that some merchants are particular about which cards they accept and which ones they won’t. This creates a potential dilemma that now I need to have a variety of different cards on hand. To make matters worse some merchants go the cash-only route to avoid paying fees to the card companies at all well that seals it the fact that you can pay for pretty much anything with physical currency. Round 1 goes to Cash in terms of acceptability

ROUND 2 – Safety No matter who you are or where you are going, having large amounts of cash on you at all times isn't exactly the wisest behavior. Flashy shows of wealth can attract the wrong attention and if that money is stolen or lost, then it is probably gone for good. Credit cards arrive armed with various forms of purchase protection written into their policies, or at the very least, they have such programs available to their customers that way the victim is not on the hook for unauthorized purchases. However, stolen credit cards and identity theft can create chaos in our lives, even with the credit card company protocols in place, it can take a while to recover from all the damages you may suffer from identity theft. Even with all of that the use of plastic has become too prevalent and persuasive in our society nowadays, especially with the availability of debit cards and ATMs to access your cash when you really need too. Round 2 goes to Credit by a narrow margin

ROUND 3 - Anonymity Clearly for those who prefer to remain “off the radar” using cash is the only way to go. I won’t go further with the Safety threat as detailed in Round 2, but there is also the concept of not leaving a paper trail behind. And we’re not talking just talking about from a safety point of view, we’re talking about Big Brother, or more accurately, Big Corporation, watching over all of your purchases. Ever been online and looked at an item to then only have ads for that item start popping up online all around you? Kind of a creepy feeling. And yes, you are being watched every time you make a purchase online. Round 3 winner is Cash by a wide margin

ROUND 4 - Rewards There are benefits to using cash, sure, but let's discuss the potential rewards; Paying for something immediately, for example an expensive dinner, or a pair of concert tickets, prevents you from potentially having to pay interest down the road, but only if you are not paying the debt off at the next billing date. You may get a discount if you're paying for a large purchase in cash, but that's about it. Credit cards offer many incentives including reward points or even cash back. The downside to this, of course, is the interest that you have to pay over time for the purchases. But if you're able to keep track of your spending, have savings available, and always pay on time, then using a credit card to gain those additional rewards may be the way to go. Round 4 goes to Credit but with a warning for the judges

ROUND 5 – Credit Score In case you were not aware you might be surprised at just how many aspects of your life your credit report can affect, because it's not just about whether a bank will lend you money. So before we start judging this round let’s look at just what a credit score is anyway? It is a number that represents how trustworthy you are in terms of paying off your debt. There are many factors that determine the score; like how many credit cards are in your name, if you carry a balance on those cards, and by how much you pay down your debt every month. Your score partly depends on your account balances versus your credit limits, if you never charge anything then you aren't showing lenders whether you're trustworthy or not. In that case your credit score could go down, or simply disappear altogether. Banks may even close your credit cards, if you have zero balance and never charge anything, and that would make things difficult for you. Because down the road you are probably going to want to make some large purchases; A Car, Home, etc…and trying to do that with no, or very low credit can be problematic and more expensive Round 5 goes to Credit as well, but only from the long view standpoint

Our Winner: Credit Cards Ultimately credit cards are a necessary evil. They're an important building block to help you establish credit, meaning that in the future you'll be able to secure a mortgage to buy a house, or get a car loan to buy a new ride. Cash may be king, but by a score of 3 to 2 our judges give this battle to Credit

GOT QUESTIONS? ASK US. WE CAN HELP THAT!

On Thursday, February 25th at 6:30 PM we will be going over this, but also how buying versus renting affects alot of the decisions we ar emaking on a daily basis. Visit our website:

www.ariesfoundation.org/events to REGISTER and learn more

Talk To Your Kids About Money (Part 3)

183:814504607 (Thomas Alessi) — Fri, 12 Feb 2021 13:21:14 GMT

LEAD BY EXAMPLE

As a parent, I believe, that the number 1 goal we have for our children is that they grow up to be healthy and responsible adults. That we have taken the time to teach them good values, the difference between right & wrong, and to be a productive member of society

AND THEN IT COMES TO MONEY & FINANCES

THis is where things get a little squirrelly. See, while we are trying to instill in them all of these ideas and teach them to be good people, they are also watching us, and learning from some of the things that we do (or don't do) as well. And a lot of us just don't have good habits when it comes to our money:

1. We Don't Talk About It - Research shows that people would rather talk about just about anything before they discuss their finances. Not to put blame out there, but most of this can be traced to our parents, if they didn't discuss finances, or what things cost, or if there were money troubles, then evitably we won't either.

2. We Get Stressed - Not having a handle on how money is being spent, or that there ends up being too much month at the end of my money, can create anxiety about finances. Kids can sense that and not wanting to experience the stress or worry can carry with them into adulthood, so they won't want to deal with money.

3. I'm Not Good WIth Money - The reality is that handling money is hard, because even though Money may seem like Math. Money isn't Math. Math is math. Numbers and figures and 1 + 1 = 2. Money, however, is emotional. The problem that most people run into when handling finances is that they try to treat their money like it's math, without taking into consideration how they actually "feel" about money. This gets us back to #1 and talking about money. Until we understand or figure what drives our realtionship with our finances, we unfortunately, will probably cvontinue to spiral around without making much headway in turning things around.

START MAKING SMALL CHANGES

Yes, pun intended based on the name of our blog, but you don't have to try and do a major overhaul to how you handle your finances to impact how your children will be with money. Next time you are in a store and they want you to buy them something, go through what it costs. Put it in the cart, but before you get to the check-out line, pull over and ask them about the item; "Why do they want it?", "Do they really need it?", "Would they rather have this now, or something else they had mentioned in a week or 2?".

CHECK OUT OUR LATEST VIDEO

Sunday Night at 6:30 PM we premiere HOW TO TALK TO YOUR KIDS ABOUT MONEY on our YouTube Channel. This is a pure highlights only of our webinar from last night and will touch on these and other points to try and help you, so then you can show your children, how to have a beter relationship with their money.

GOT QUESTIONS? ASK US. WE CAN HELP WITH THAT!

The ARIES Foundation for Financial Education, Inc is a nonprofit dedicated to helping everyone have a better relationship with their money. You can follow us on Facebook, Twitter, Instagram, or Youtube.

Visit www.ariesfoundation.org to learn more.

Social Security Claiming

183:814504607 (Thomas Alessi) — Wed, 10 Feb 2021 21:13:02 GMT

AT WHAT AGE CAN I CLAIM SOCIAL SECURITY?

The body content of your post goes here. To edit this text, click on it and delete this default text and start typing your own or paste your own from a different source.

Talk to Your Kids About Money (Part 2)

183:814504607 (Thomas Alessi) — Tue, 09 Feb 2021 17:14:22 GMT

HELPING YOUR CHILD BE SMART WITH MONEY

We all know that the earlier you start learning a language, the easier it will be to master it. Learning any foreign language at the age of 4 is much easier than at the age of 40. The same applies to managing your money. The younger we begin discussing the value of money the more lilkely they will grow up with a better appreciation for handling it.

3 LESSONS

Lesson 1: Allow your children to work. It is very important for your children to understand that money comes from work. - Not from mom and dad's wallet. The more your children understand the principle of cause and effect, and what can be achieved, the easier it is to get them to grasp the concept. At a very young age, you can start teaching them the relationship of work with money. They can tidy up the game room, take out trash, and collect clothes for washing. There are a million things to do. Just make sure it matches their ages. Don't let your five-year-old mow the lawn.

And pay them for what they accomplish. Let your children know that in the real world you will not get cash without working. You will only make money when you work. From there you can let them buy whatever you want with the money they have earned.

Lesson 2:, Allow your kids to make mistakes in using their own budget. Many adults make mistakes and it costs them dearly because when they were young they were not put in a position to make mistakes in simple things. Today's tears will prevent crying later. K ids will inevitably make some stupid choices with their money. They'll spend it on things that they wish a week later that they never bought. As their parent, you'll sometimes need to allow them to make that mistake and suffer from its consequences. It is the way they learn.

Lesson 3:Teach your kids how to make saving a habit by helping them create a system for their money. How many adults you know are saving regularly and steadily? But here is a basic financial fact, the A: If you don't save money, you won't have money. Teach your children that saving is the first thing they need to do when making money. And spending is what you do with whatever is left after the money has been saved someplace else. One of the reason that so many people get in trouble with credit cards and debt is that they have not learned this lesson. Take the time to teach them this, as it will pay dividends for them in the future.

The amount they save will depend on what they want to buy. It is better for them to learn how to save money now - while they are being supported, rather than wind up in the situation of having to continue to support them later on for longer than you planned. So get started today and begin helping your kids become fluent in the language of money and how to deal with it.

GOT QUESTIONS? ASK US. WE CAN HELP WITH THAT?

The ARIES Foundation for Financial Education, Inc is a nonprofit dedicated to the mission of Helping Everyone Have A Better Relationship With Their Money.

Visit us www.ariesfoundation,org to learn more

Talking to Kids About Money (part 1)

183:814504607 (Thomas Alessi) — Mon, 08 Feb 2021 14:56:17 GMT

At What Age Should I Start The Conversation?

Research shows that kids can start learning about money as early as Age 3 and the more often you have those conversations with them the better they fare later in life, so let's get things started.

WHY 3?

Here's what they can do at age 3; they can count and they are able to learn. By age 4 the concept of shopping takes hold; the idea that you can shop, you can exchange money for different things. Around age 5 or 6 they learn that you can't leave the store without paying for things.

VALUE OF MONEY

Sometime around age 7 a chilod will start to develop the idea of value, so a younger kid will think I want those five pennies and older kid will understand a nickel is the same thing. As early as age 8 or 9 a child will grasp the concept of the future, and saving for things down the line, and that's where it gets really interesting.

3 JARS

Kids need visual aids to help them grasp a concept, unfortunately for most of us we don't have money hanging around anymore, not with direct deposit and debit cards, so we need to be a little creative in coming up with a way to help them see how money works. We suggest using 3 jars on the child's dresser or window sill;

1. Saving

2. Spending

3. Giving

Then you as a parent can tell them how you want them to allocate the money that they have and you've got to help them focus on their goals. You can't just say "save money" that doesn't make any sense to a kid. What you should do instead is to say save for something, and then help them track their progress. Use a chalk or whiteboard as a kind of growth chart, which accomplishes two things; helps them with the visualization, but also with addition & counting skill.

YOU BUY IT, YOU OWN IT

On last rule for parents to try and follow; If they are buying something with their money, and then they decide they wanted something else instead, don't bail them out. Make them stick with the item they choose. Example:You bring your child to the store and they buy Reese's peanut butter cups, but when you get back to the car they suddenly decide they want a Snickers bar. Make them understand they bought the Reese's peanut butter cups an dnext time they can choose Snickers or something else. IT is important for them to understand the cost and permanence of buying something.

GOT QUESTIONS? ASK US. WE CAN HELP WITH THAT!

Join us this Thursday, February 11th at 6:30 PM as we discuss this topic and how to help your children have a better relationship with their money. You can always catch the video highlights on our YOUTUBE CHANNEL as the premiers are Sundays at 6:30 PM.

Visit www.ariesfoundation,org to learn more.

Time Value of Money

183:814504607 (Thomas Alessi) — Wed, 03 Feb 2021 16:17:25 GMT

The Opportunity Cost of Money

TIME VALUE OF MONEY

For most of us this tends to cause our eyes to glaze over whenever someone starts to go into the details around this subject. It breaks down into 2 parts;

PART A - The money you have today is worth than the money you have tomorrow. When we are talking about buying power, because inflation increases the prices (cost to us) of stuff in the future. So your doillar buys more in the present time than it will in the future. And that is unfortunate for all of us. So we need to take steps to make sure, or at least try to preserve, that our spending power is the same tomorrow as it is today. It is why the funds you have in the bank are actually losing money. Not for today, but since the interest it is earning is not keeping up with inflation, then those dollars will be buying less for you in the future.

PART B - Is where the compunding of interest (the plus side of the ledger for us) comes into play. Or making our money work For Us (not against - see bank interest above), so that our buying will not only be maintained, but possibly increased in the future. Of course, some of this growth involves RISK. It is far more important to understand how much you are willing to risk in an investment then how much of a RETURN you might achieve. Each factor must be carefully considered against the other.

OPPORTUNITY COSTS

OK, so this one sounds a little "heady", but really the focus is about the choices we make when we spend. Opportunity cost is defined as the cost of pursuing one alternative versus another. For example, if you were going to spend $800 to upgrade your cellphone, the opportunity cost would be that you would not be able to buy anything else with or invest that $800. It's the differnce between the cost and the benefit of each decision you make. In this case, you could spend $800 on a new phone or you could invest the same $800 and try to grow the funds. In 5 years, the phone may be worth $100 and the $800 investment could be worth $1100 (at a 6% rate of return). The opportunity cost of buying the phone is the long-term benefit that you will receive if you did not buy the phone and invested it. Technically, the opportunity cost is not limited to the cost of investing the money, but also includes any other opportunity you could spend the money on (investing, buying something else, saving the money, etc). By carefully evaluating your alternatives and by weighing the opportunity cost of each decision, you can vastly increase your long-term wealth.

IT'S ALL ABOUT BALANCE

Being able to live your life today, but also saving, so you can enjoy your life later on as well. Trading off between wanting Growth(return) versus how much I am willing to lose (risk). Understanding how the dollars that I spend today will impact and offset my ability to purchase tomorrow.

GOT QUESTIONS? ASK US. WE CAN HELP WITH THAT!

Join us tomorrow night for our weekly THIRSTY for knowledge THURSDAY where will go over different ideas and actions steps that you can take to help you be more balanced as you try to achieve a better relationship with your money.

Visit www.ariesfoundation.org/events to learn more

Annuities Are Bad

183:814504607 (Thomas Alessi) — Tue, 02 Feb 2021 20:02:27 GMT

Actually it should be phrased "Are Annuities Bad"?

Annuities are bad, at least that's what everyone says...right?

Let's start with what an annuity is: An annuity is a series of payments made at equal intervals for a set period of time. What are examples of an annuity? Social Security is one. Pension Plans are another. Neither of these things sound bad, in fact, they sound pretty good to have in your retirement plan.

Then why do they have such a "bad" rap?

There are many different types of annuities available and all of them are issued by Insurance Companies, so depending on who is doing the "dissing" or promoting, you will get a biased view. And all annuities then get lumped into the same "bad" basket;

Deferred Income - see above examples. You give your money to an insurance company who then promises to pay you out a monthly benefit for a set period of time.

Fixed - Just like a CD. Interest is guaranteed for a set period and then is either rolled over to a new contract or liquidated just like at the bank.

Fixed Indexed - Adding a component to the above (Fixed) that allows limited participation to a stock market index return without the downside exposure. Of course, the upside return is severely limited.

Variable - money is invested in mutual funds or ETF (exchange traded funds). There are no upfront sales loads and the growth is tax-deferred.

( Author's Note: The tax deferral can be a positive or a negative depending on the situation. Where as

regular investments held for more than a year fall under Capital Gains, any distributions from

annuities are taxed as ordinary income, which can be problematic in our retirement years.

But I heard annuities were expensive?

It depends on the type you are using. Variable Annuities have a platform fee they call M&E (mortality and expense) that can be as high as 1.5%. Then add on the investment costs (usually .50% - 1.15% depending on the provider) and you are looking at north of 2% in fees. Toss on a rider or two and you could be looking at a whopping 3 - 4% in fees every year! Now you get where some of the bad rap is coming from.

But most of the other annuities have no fees, or costs, and come with guarantees; interest rate, set period of payments, etc...

So What Can an Annuity do?

Creat a lifetime income stream similar to Social Security or a Pension so that you can live comfortably in retirement knowing you will never outlive your money. They are now one of the only ways left (thanks to the SECURE ACT) to defer your RMD (erequired minimum distributions) so you can possibly pass them to the next generation.

So...Are Annuities Bad?

Yes: If you are trying to compare them to Equities or use strictly as an investment only tool.

No: When payouts are guaranteed and used as a planned income source.

Want to Learn More?

Check out our Youtube Channel: https://www.youtube.com/channel/UC8XA1to8IHXsqsrGfWfRaHA

On Wednesdays at 11:30 as we add our latest educational video and this week it's on Annuities

You can also visit our website: https://www.ariesfoundation.org as well

GIVE IT TO ME NOW!

183:814504607 (Thomas Alessi) — Mon, 01 Feb 2021 16:41:23 GMT

Every Decision Is A Retirement Decision

DELAYED GRATIFICATION

That really is the question that drives everything when we are talking about Saving, and we don't care what youa re saving for; new home, upgrade your car, education or retirement. Can I hold off and not spend today, so that I will be avble to benefit in my future years? Or must I persist, like Ms. Veruca Salt in Willy Wonka & The Chocoloate Factory and sing, "Give It To Me (rrright) Now!".

Making Change(s) is Hard

183:814504607 (Thomas Alessi) — Fri, 29 Jan 2021 20:23:32 GMT

Habits Are Hard To Break

Change, in any form, is a process, and it ain't easy. It is even more challenging when we are dealing with a long-standing belief or habit. Then trying to change can become downright painful, even crippling, when we are dealing with things that havwe an emotional hold on us. And make no mistake...

And money is one of those things.

See, money isn't math. It's not just numbers and figures. Math is math. Money is much more complex, and it brings with it a lot of emotional factors, and we all have a different mechanism when it comes to money. But usually we are lef to sort things out All On Our Own! People would rather talk to someone else about anything, even their sex life, then discuss their money or finances.

Which only adds to the complexity that is the reality of sitting down and looking at your finances. This is a bugaboo that gets people all the time. Too often we are worried, but unsure of wha to do or where to go for help. Forget about actually seeking someone out or turning to a friend for help. It can be very overwhelming and adds to the stress and anxiety. But there are ways to get better with your money; having a budget, tracking what you spend, and putting a goal of something to be saving for are all ways to ovecome some of the problems that we have with dealing with our money.

But it all comes back to change.

Change your thinking. Change the way you spend or think about saving.

You cannot be saving until you know what you are spending. So the first thing you need to do is get a handle on what you spend, but also how you spend, and last, but most importantly...why you spend. We talk about delaying a purchase, or "cooling off" so we can adjust and ask, "Do I Really Need This Item - Today?" Once you are able to begin to understand that part of handling your money, then you can start the process of making adjustments in your finances.

Missed our webinar this week on Saving & Spending. Watch the World Premiere of the highlights from our presentation on Sunday Night on our Youtube Channel

https://www.youtube.com/channel/UC8XA1to8IHXsqsrGfWfRaHA

Got Questions? Ask Us. We Can Help With That!

ARIES Foundation for Financial Education, Inc is a nonprofit dedicated to trying to help everyone have a better relationship with their money.

7 Steps to Build A Better Budget

183:814504607 (Thomas Alessi) — Wed, 27 Jan 2021 14:11:26 GMT

You Cannot Save Until You Know What You Spend

My belief has always been that there are 3 kinds of people when it comes to having a budget; the first knows exactly where everything is spent. They have spreadsheets and trackers and can tell you exactly where they stand. Person #3 has no idea; money comes in, money goes out, there is no plan or worry about what's ahead. And then there is person #2, who thinks they are a 1, but really acts more like person #3.

Where do you stand?

No matter where, or which number may be a fit for you, we want to give you some ideas to help get your budget started, or be better prepared with the one you are using.

1. It's An On-Going Process

The best way to set yourself up for budgeting success is to understand that budgeting is an ever-evolving strategy you will use to live your life financially fit. Instead of thinking of budgeting as a one-time or occasional chore, it’s better to think of it as something that needs to be done on a regular basis, much like doing your laundry.

Like financial goals, your laundry is an ongoing responsibility that cannot be avoided, ignored or forgotten without some serious problems cropping up. Getting your head wrapped around that when you begin your brand new budget that you are committing to a regular and ongoing process will help you maintain your budget, which is far more important than just creating one.

2. Know What Your Income Is

For anyone who receives a salary from a traditional employer, this part will be very simple. You’ll just need to take a look at your most recent pay stub to see how much you earn per paycheck. You can then multiply that by number of times your paid (26 or 52) and divide by 12 to get a monthly figure.

However, if you work as a freelancer, have side hustles, earn hourly pay or overtime or rely on tips or commission, it isn't as easy to calculate your monthly income. We suggest using an averaging process of the last 3 or 6 months of earnings. This can give you a geeral idea of how much you earn on an average monthly basis.

3. Must Pay Expenses

We refer to these as "hard dollar" costs. Those items that need to be paid in order for on-going living expenses. Most people have a basic sense of their fixed, or recurring, expenses. For instance, you know exactly how much you pay for your rent or mortgage each month. However, some of these expenses can be variable, like groceries, or medications, car repairs, which makes it harder to track. For variable expenses, it’s a good idea to calculate the monthly average over the last 12 months. (If there are expenses that don’t come up monthly, add up the total annual amount you have spent and divide that amount by 12 to determine your monthly average.)

4. Pay Yourself First

We've talked about treating yourself like a bill, so you had better have "YOU" as a line item in your budget. And contributing to building up your Emergency Reserves Bucket (see "What's In Your Buckets?" ) should be objective numero uno. Add in if you plan to also contribute to a retirement plan, or make debt repayments, then add those in as well.

5. Discretionary Spending

What we refer to as "soft dollar" expenses. Here is usually where our plans or budget go sideways. What we allocate for this spending typically is the one that gets away from us, usually really, really quickly. Think of these items as all the "fun" stuff we spend our money on. Which is fine, unless we don't know how much or how often we are spending and what that "fun" is really costing us (see "Track Your Figures" ). This can be an eye-opening experience for some, especially those who have never really looked at what is being spent on a weekly basis for; coffee, snacks, or even lunch. Take the time and get a handle on what you are spending for soft dollars on a regular basis.

6. Compare & Refine

Just because you've put all of your numbers together doesn't mean you're done. Now you need to review the whole picture. You need to compare your expenses to your income. If the expense number is lower than or equal to your income number, then your budget is balanced. In that case, you are ready to implement your budget.

If, however, your expenses are higher than your income, then you need to adjust your spending. You can do this by playing with your "soft dollar" or variable expenses. Understand that the idea about adjustments is that you should focus on the discretionary spending or variable spending (such as your grocery budget) before you reduce or modify the Pay Yourself First line items. This will help ensure you reach the important financial milestones that matter to you.

7. Take Action & Track

If you have a balanced budget, you’re ready to put your plan into action. Start spending and saving based on the budget you have created. Implementing your new budget is about more than just keeping your spending limits in mind, however. Remember this is an ever-evolving process, so keeping track of your spending to identify any weak spots is key. There are many ways to track, but if you are just starting we recommend to begin with a pen and paper for a short period and then transfer to a spreadsheet or app. As you implement and track your budget, you’ll notice patterns over time. These will help you make changes as needed to your budget and figure out what is important to you.

Got Questions? Ask Us. We Can Help With That!

The ARIES Foundation for Financial Education, Inc. is a nonprofit oprganization dedicated to the mission of trying to help everyone ahve a better relationship with their money.

Learn more www.ariesfoundation.org

5 Ways to Save Money

183:814504607 (Thomas Alessi) — Tue, 26 Jan 2021 19:45:55 GMT

Ways to help you save more money

Sometimes the hardest thing about saving money is just getting started. These are a couple of our favorite ways to save money. Hopefully you will be able to try a couple, or all of these steps to help you develop a simple and realistic strategy, so you can plan to save for any of your financial goals...whatever they may be!

RECORD YOUR EXPENSES

There's an app for that! Yes, but our belief is that it isn't as effective as actually putting pen to paper to write exactly what you spend. Take a week. Write it down every time you spend a dime. Make sure you stay true and be accurate as it will help you get a handle on where, and what you are spending your money on. This is not an easy exercise, but one that yields great results.

TIP: If you are using an app or software tool like Mint, then just make sure that it is tracking all of your expenses or a way for you to include anytime you use or pay with cash as well.

BUDGET FOR SAVING

The target is to be saving between 10% - 15% of your of your income. Remember these funds should be allocated to different "buckets":

Bucket #1 - Emergency Reserves

Bucket #2 - Opportunity Funding

Bucket #3 - Long Term Goals

You should have at least 6 - 8 weeks of living expenses in the bank. If you don't then most of your savings should be allocated to filling up Bucket #1. Bucket #2 is saving for a major purchase (car, home, college) or to pay down a debt. Bucket #3 is retirement. While funding into Bucket #3 is important, it should not take away from funding Buckets 1 & 2 first. Ocne they are full then additions can go to Bucket #3.

REDUCE YOUR SPENDING

We always say don't sweat the nickels & dimes, don't get caught up in trying to trim down every single thing that you spend money on. Instead, look at the larger line items in your budget, those that are not "hard" dollars items like rent or mortgage, utilities, or car insurance. Review your "soft" or recreational spending and go through any memberships, or subscriptions, or items that while you may enjoy them, you could probably do without for the time-being.

TREAT YOURSELF LIKE A BILL

You're great at paying your bills every month, but not so great at making sure that money goes into your bank accounts as well. You need to automate your savings. Participating in a retirement account through work is one way of diong this, but it also doesn't add anything to our bank statement. If you don't have direct deposit - Get It! - then go to you rbank and have a portion set aside to your savings (Bucket #1)

SET SMALLER GOALS

Maybe it's just getting a new phone or taking a vacation, but setting up a small, short-term goal can have a big impact on your morale and be a big boost to helping you stay on track. If you struggle to save then this should be something low to start; add $200 to my savings in the next 90 days, or maybe that new outfit or shoes, or something that tells your brain, "I did it!" and you can do it again. And again. And again.

Got Questions? Ask Us. We Can Help WIth That!

Learning to play nice with your money is not an easy thing to do, especially if you have been pulling in oppostie directions for many years. Our goal is to help everyone have a beter relationship with their money.

Visit www.ariesfoundation.org to learn more.

Change Your Spending Habits

183:814504607 (Thomas Alessi) — Mon, 25 Jan 2021 22:18:10 GMT

7 Steps to Change Your Spending Ways

Here are 7 ways that you can impact the way your spend, or steps that you can take to help manage or change some habits you may developed when it comes to parting with your money:

1. CASH ONLY

Credit, and especially ATM cards, make it very easy for us to overspend, but you can't use them if you don't have them...on you. We know, this is like asking a teenage to go without their cell phone, but just try it for 1 or 2 days a week. See if having that "ready plastic" was what was casuing you to have a little less self-control with your spending.

2 .SET A BIGGER GOAL

Sometimes we can lose sight of what we are blowing our money on; lattes, snacks, etc...so the suggestion is to make sure that you have something you are trying to save for, like a vacation, or upgrading your mode of transport, or maybe just trying to save up to pay off a debt. When you start to reach for the item 9or find yourself walking into Dunks) then remember the goal you are trying to achieve.

3. SHOP WITH A LIST

We went to the store with a certain item in mind to buy, so how come I came with 5 other things as well? This is helpful when going to the grocery store or places like Target, where we can get distracted and wind up with more than we needed or intending to get in the first place.

4. DON'T GRAB A CART

Speaking of both types of stores above, try to only use a cart when we have a lot of stuff on our list. The bigger the cart we use the move stuff is going to fit inot it! So try to go with a handbasket or go without. You are less likely to add more items if you don't have someplace to put them.

5. SURVEY YOUR SELECTION

Before you head to the register just pull off to the side and take a look at what's in your cart. Cross-check with your list. Did we really need another box of Coco-nutties this week? It doesn't hurt to give everything a once-over before proceeding to the registers.

6. COOLING OFF PERIOD

Whatever the new gadget or gizmo that you may have been salivating over, instead of rusing out or going online to purchase it, take a breather, institute a 1 day waiting period before you buy. This will give you a chance to reconsider, go back and revisit Step 2, decide if you need it, and don't just really, really Want It!

7. WANTS vs. NEEDS

Which brings me to delayed gratification and being able to hold-off, or wait, or not purchase that new doohickey today, so you can achieve whatever goal you are trying to obtain. We are doing whole webinar on this subject on Thursday, Feb 4th, because it is that important.

GOT QUESTIONS? ASK US. WE CAN HELP WITH THAT!

Are you and your money not on the same page? Need some boundaries or groundrules to decide who is actually in charge? Visit our website www.ariesfoundation.org.

Our mission is trying to help everyone have a better relationship with their money.

What's In Your Buckets?

183:814504607 (Thomas Alessi) — Wed, 20 Jan 2021 15:52:37 GMT

The 3 Functions of Your Money in Retirement

What's In Your Buckets?

When you are in retirement there are only three (3) things that your money is there to do;

Generate Income
Provide Liquidity
Leave A Legacy

That's it! And I know this sounds simplistic, but the problem that most retirees face is trying to make the same dollar (or asset) accomplish different things. Remember - you can't spend a dollar today and expect to have it available for tomorrow.

Which is where the buckets come in ( Author's Note: My visual has always been buckets, some people like bags, or pools, but mine has always been buckets)

In getting prepared for retirement you need to be segmenting, or planning to segment, your assets to address each of the 3 concerns separately:

Income fills the tank and make the car run

Liquidity needs to be on-hand in case something goes wrong or breaks down

And what are you leaving behind for a Legacy : a collectible or a clunker?

Now there is a 4th bucket to Consider

As I mentioned in my previous post, "Speedbumps", the pothole that eveyone chooses to ignore is Assisted or Skilled Nursing Care in Retirement. If you haven't planned or set aside funds in a separate bucket to handle this contingency, then which of your other buckets are you willing to sacrifice to take care of this expense?

The ARIES Foundation for Financial Education, inc is a nonprofit dedicated to the mission to Help Everyone Have A Better Relationship With Their Money. Got Questions? Ask Us. We Can Help With That!

www.ariesfoundation.org

Speed Bumps on your Retirement Journey

183:814504607 (Thomas Alessi) — Tue, 19 Jan 2021 20:25:35 GMT

There are plenty of potholes to avoid along your way...

Once you have your figures & numbers firmed up, and you've poltted out a course for whn you will be retiring. The next step is to make sure that you will stay on course. And just like when you are planning any other type of trip you need to be aware of any hazards that lie ahead that could stall your progress or send you off the road entirely.

What are those potentail pitfalls?

Social Security Claiming for one: For most pre-retirees the Full Retirement Age (FRA) for social security is 67. If you claim before FRA then you will receive a reduced benefit. Claim before you are finished working and your benefits are subject to a possible reduction penalty.

Medicare: Available at age 65, but what if you plan or are forced to retire early? Then you must obtain your own health insurance coverage until you become eligible for Medicare. once you are eligible the premium for Part B is deducted from your Social Security benefits.

Taxes: All the money you saved in your retirement accounts to generate income in your retirement years is now taxable, and if you are not careful, this can be a painful lesson to learn. The IRS views the funds being withdrawn from a 401(k) or IRA as income since it is taxed. Since it is income then Social Security will also view it as income as well, and if you more icnome then allowed then the government will tax your Social Security benefits. At least 50% of it, but it could be as much as 85%!

A Triple Whammy!

So the money in your retirement gets taxed. OK, I'm onboard since I knew it was a pre-tax contribution, but now you're telling me that 85% of my Social Security could be taxed as well? But wait, it actually gets worse, because now that becomes income too adn then they will stack on capital gains, even earnings from Municipal Bonds (not totally tax-free) and if that crosses a certain threshold then you get hit with a Medicare Premium Increase. Phew! And if some of that income needs to be replaced? Where is it coming from? You guessed it - the retirement account and now I have more taxable income which could then push me into an even higher tax bracket, which in turn could take away more of my principal that I was counting on to last the rest of my life!

The Pothole Everyone Ignores

Assited or Skilled Nursing Care: The latest statistics show that 70% of the people over the age of 65 will need some kind of assisted care. And a portion of that population will need significant support and some of those will last for more than five (5) years. Don't dismiss these stats. This needs to be addressed as part of your plan otherwise you could be headed for disaster.

Tomorrow: What's In Your Buckets?

Rules that need to be followed for money in retirement. How to think about your funds and be prepared for any hazards that may lay on the road ahead.

Got Questions. Ask Us. We Can Help With That. We are the ARIES Foudnation for FInancial Education, Inc a nonprofit dedicated to trying to help everyone have a better realtionship with their money.

www.ariesfoundation.org

#1 Retirement Question is the Wrong Question

183:814504607 (Thomas Alessi) — Mon, 18 Jan 2021 16:34:42 GMT

WHEN?

The #1 questions that is asked of anyone planning or thinking about retirement is "When do you want to retire" or it may be re-phrased as "At what age do you want to retire". While this question is a consideration, it is definitely not the most important question to ask.

That question is HOW? As in "How are you going to retire?" . What type of lifestyle? Where are you going to live? And of course, most importantly, How are you going to pay for this? See, you can't plan for when, or even how, until you are sure of all of your numbers. And by "your numbers" we mean your cash flow analysis, so that you have a solid grasp of all of your expenditures. Because until you know what you are spending there is no way to safely estimate how to make the money last in retirement.

The Reality Check With Your Numbers

So you have to spend some time getting a handle on exactly what those figures are, and by exactly, we don't mean a "good guess", or maybes or a future hypothetical. No! These have to be solid, so don't just gloss-over this part. Take some time and really dive into your expenses and get a very good grasp on the reality of your numbers.

Failing to Plan is Planning to Fail

Otherwise what you are dealing with is HOPE. Now there's nothing wrong with Hope, except when it comes to air travel and financial planning, as in "I hope we're gonna make it". Taking the time to get this step right will help make all the difference in any plan that you are trying to achieve.

Want to learn more? Join us on Thursday, 1/21 at 6:30 PM for the next THIRSTY for knowledge THURSDAY as we discuss this and other steps you can take to make sure that you are completely ready to take the journey on what will be the longest vacation fo your life.

Visit www.ariesfoundation.org/events to register and learn more

Tomorrow's Blog Post : Other Factors to Consider - Social Security Claiming, Health & Assisted Care Needs, Taxes, and how all of these can derail or waylay even the best laid plans for your Road Trip.

Got Questions? Ask Us. We Can Help With That!

Our mission is to help everyone have a better relationship with their money. If you and your money aren't on the same page yet, or need a little friendly intervention to help you get back together, then reach out to us and see how we can be of some assistance: crichardson@ariesfoundation.org

Market Predictions - #trendcasting

183:814504607 (Thomas Alessi) — Fri, 15 Jan 2021 13:53:22 GMT

US Treasuries Flashing A Warning Sign?

Last night in our first Thirsty for knowledge Thursday of the New Year we the state of the state of the financial markets and where we see things headed from here. It was a little bit of looking back to see what's ahead with a little forecasting, some predicitons, and a little juju from a Magic 8 Ball in with what we call "Trendcasting".

And one of those trends discussed was on the current state of the 10 year US Treasury

On 1/6/2021 the yield on the 1o year US Treasury closed above 1% for the first time since March of last year. This was not momentous, and nothing that should incite enthusiasm or caution. However, the yield has continued to climb up by 20 basis points (a basis point is 1/100 of a percent) from the beginning of the year.

This could be a warning sign

Maybe just a blinking yellow light at this point, but if the yield continues to climb and goes up another 20% then we could be looking at something more concerning, let's call it a flashing yellow light at that point. Because the spread between the 2 year yield (Federal Reserve Bank has great influence over this number) to the 10 year yield is widening as well, and that can influence; inflation, housing, and the economy overall. So while it may seem like a littel deal right now, keep an eye on those treasury yields as we move forward to help with your investing decisions.

Have Questions? Ask Us. We Can Help That!

On Sunday night we will premiere the highlights form this weeks webinar, The state of the State of the Financial Markets on our Youtube Channel. Want to watch the whole episode? Just go to the events page at www.ariesfoundation.org. And join us next Thursday night for the next episode of Think With A Drink as we discuss PRE-RETIREE CHECKLIST

Our mission is trying to help everyone have a better relationship with their money.

We Could All Use A Little Change

183:814504607 (Thomas Alessi) — Tue, 12 Jan 2021 17:59:26 GMT

What To Expect For The Markets In January

U.S. Markets

A tumultuous year ended on a positive note as stocks rose in December, spurred by the rollout of multiple COVID-19 vaccines and the signing of a new fiscal relief bill.

The Dow Jones Industrial Average, which lagged all year, picked up 3.27 percent. The Standard & Poor’s 500 Index gained 3.71 percent, and the Nasdaq Composite tacked on 5.65 percent.1

Vaccines Take Center Stage

Investors were buffeted by news of rising infections and new lockdowns even as they kept a close eye on the start of vaccine distribution in the U.K., which some observers referred to as “the beginning of the end” of the coronavirus pandemic.

Boost from the Stimulus Package

Much like November, stocks rallied when Congress made progress on the new fiscal stimulus bill but pulled back as talks seemed to stall. After some posturing, President Trump signed the new law, which helped stocks surge in the final week of trading.

All Eyes on the Election

As investors grappled with these headline issues, markets also saw several new and secondary equity offerings, including two high-profile technology initial public offerings (IPOs) during the month. This year, companies raised over $167 billion in IPOs, blowing past the record of $107.9 billion set in 1999.2

Sector Scorecard

The majority of industry sectors posted gains in December, including Communication Services (+2.35 percent), Consumer Discretionary (+2.18 percent), Consumer Staples (+0.10 percent), Energy (+3.97 percent), Financials (+4.45 percent), Health Care (+2.30 percent), Industrials (+0.12 percent), Materials (+1.58 percent), and Technology (+5.14 percent). The Real Estate (-1.04 percent) and Utilities (-1.69 percent) sectors lost ground.3

What Investors May Be Talking About in January

After the November election, markets rallied due to initial tallies that seemed to point to a potentially divided government, which historically has been a positive for the equity markets.4

However, with Georgia’s special election determining control of the Senate, investors may get insight into the future legislative agenda of the incoming Biden administration.

T I P O F T H E M O N T H

Check your credit report annually for errors. Under federal law, you are entitled to a free annual credit reports from the big 3 credit reporting agencies (Equifax, Experian, and TransUnion) each year.

World Markets

International stocks enjoyed a strong month of performance, with the MSCI EAFE Index gaining 5.24 percent.5

Vaccine optimism and an exit agreement between the European Union and the U.K. helped power the markets.

Germany gained 3.22 percent while the United Kingdom picked up 3.10 percent. France lagged a bit, tacking on 0.60 percent.6

Pacific Rim markets also enjoyed a solid month. The Hang Seng Index rose 3.38 percent and the Nikkei tacked on 3.82 percent.7

Indicators

Gross Domestic Product: The final read on third quarter GDP was revised higher, from 33.1 percent to 33.4 percent.8

Employment: Nonfarm payrolls rose by a disappointing 245,000 in November. The unemployment rate ticked lower, falling from 6.9 percent to 6.7 percent. The labor-force participation rate was 61.5 percent, which is an improvement from April’s low but remains at a historically low level.9

Retail Sales: Retail sales fell 1.1 percent in November, showing a slowdown in consumer spending amid economic lockdowns and continued uncertainty. October’s retail sales number was revised downward, from an increase of 0.3 percent to a decline of 0.1 percent.10

Industrial Production: Rising for the seventh consecutive month, industrial output picked up 0.4 percent in November, powered by a 0.8 percent leap in manufacturing.11

Housing: Housing starts reached a nine-month high, rising 1.2 percent in November.12

Existing home sales declined 2.5 percent in November. It was the first decline in six months.13

New home sales slumped 11.0 percent compared to last month, but were 20.8 percent higher than in November 2019.14

Consumer Price Index: Prices of consumer goods and services rose by 0.2 percent in November, leaving the year-over-year inflation rate at 1.2 percent.15

Durable Goods Orders: Durable goods orders rose by 0.9 percent, marking the seventh consecutive month of gains.16

The Fed

In its last meeting of 2020, the Federal Open Market Committee (FOMC) detailed its plan to continue purchasing $120 billion in Treasury and mortgage-backed securities.17

Fed officials said that they will continue the program until they see substantial progress toward meeting its inflation and employment goals. Officials at the Fed have indicated that achieving such goals may not happen for years.17

Want More? Join Us on Thursday January 14th at 6:30 PM for THIRSTY for knowledge THURSDAYS as we'll take a look at what's ahead and where we see thingsw going in 2021.

Register Here: https://us02web.zoom.us/meeting/register/tZIsf-ihqDIrEtZpsZAD5nwYyfzKxkpr_HaQ

The Markets This Week

183:814504607 (Thomas Alessi) — Mon, 11 Jan 2021 17:09:46 GMT

The Financial Review for Week of January 11

THE WEEK ON WALL STREET

Shrugging off COVID-19 infections and the disruption at the Capitol on January 6, stocks powered higher to kick off a new year of trading.

The Dow Jones Industrial Average gained 1.61%, while the Standard & Poor’s 500 increased by 1.83%. The Nasdaq Composite index, which led throughout 2020, picked up 2.43%. The MSCI EAFE index, which tracks developed overseas stock markets, rose 1.45%.1,2,3

FIREWORKS TO START THE NEW YEAR

Stocks got off to an inauspicious start amid the stuttering pace of vaccine distribution and concern that the economic recovery might take longer than anticipated. Uncertainty over the looming Senate runoff election in Georgia added to the broad retreat that marked the first day of 2021 trading.

From there markets turned higher, aided by firming oil prices with subsequent support provided by the Georgia Senate election results, which lifted hopes of additional fiscal stimulus. Stocks managed through political unrest mid-week, with banks, economically sensitive stocks, and technology shares leading the way.

The yield on the 10-year Treasury rose above 1% for the first time since March as investors fled bonds in anticipation of new federal borrowing.4

Stocks touched all-time highs on the final trading day, capping a strong week of performance.5

EMPLOYMENT PICTURE

The U.S. economy lost 140,000 jobs in December, confirming fears of economic slowdown brought on by a resurgence of COVID-19 infections.

Not surprisingly, it was restaurants and bars that saw the greatest job losses, with the larger hospitality sector accounting for nearly all the job losses last month. Meanwhile, November job creation was revised upward, from 245,000 to 336,000.6

To help put the pandemic in perspective, December’s job report capped the worst year for job losses since the tracking began in 1939. The unemployment rate remained unchanged at 6.7%.7

T I P O F T H E W E E K

When it comes to couples and money, a strategy is better than an assumption. Discuss your financial goals together and stick to the approach you make to pursue them.

THE WEEK AHEAD: KEY ECONOMIC DATA

Tuesday: Job Openings and Labor Turnover Survey (JOLTS).

Wednesday: Consumer Price Index (CPI).

Thursday: Initial Jobless Claims.

Friday: Retail Sales, Consumer Sentiment, Industrial Production.

Source: Econoday, January 8, 2021

The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.

THE WEEK AHEAD: COMPANIES REPORTING EARNINGS

Tuesday: KB Home (KBH).

Thursday: Blackrock (BLK).

Friday: JPMorgan Chase (JPM), Citigroup (C), PNC Financial (PNC).

Source: Zacks, January 8, 2021

Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.

WANT TO KNOW MORE? JOIN US ON JANUARY 14th at 6:30 PM for THIRSTY for knowledge THURSDAYS and our webinar: A STATE OF THE STATE OF THE FINANCIAL MARKETS: What's in store for 2021?

Visit: www.ariesfoundation.org/events to register and learn more

Is 2021 Off To A Good Start?

183:814504607 (Thomas Alessi) — Sun, 10 Jan 2021 16:47:30 GMT

If You Thought That 2020 Was Bad...

You Would Think That 2021 Has It Easy

Let's face it - 2020 sucked; There was a global pandemic, quarantines, a market crash (and yes I can use that term as it was a more than 30% decline at one point), and most of us had to get used to wearing masks everywhere we went.

I don't think I'm overstepping when I say how everyone, and I mean everyone, feels about 2020: "buh-bye, seeya - wouldn't want to be ya, good riddance, and not for nothing, but hope we never hear from you again".

You would think that with all this mishigas going on that it wouldn't be a hard act to follow, that 2021 should be a shoo-in for Best Year Ever! just by following the misery that was 2020.

But how is 2021 doing so far?

• The job loss for December was higher than expected and more than 10 million Americans are out of work: https://www.upi.com/Top_News/US/2021/01/08/US-loses-140K-jobs-in-December-unemployment-steady-at-67/4871610115244/

• We witnessed civil unrest on Capitol Hill that left many of us speechless and appalled

• COVID-19 cases continue to spike to new heights and there is even a new strain spreading in the US (OK, so maybe that one is on 2020, but the spread is more prevalent in the new year: https://www.msn.com/en-us/money/markets/dow-drops-383-points-as-covid-19-cases-surge/ar-BB1ct81q

• And now the Government is controlled by One Party , which could lead to an increase in spending and an overhaul of the taxes you pay (this is not intended as any type of political commentary, but we are projecting to the future and how the markets may be impacted by these and other events)

I don't know about you, but suddenly those rose colored glasses I was wearing to welcome in the New Year, now don't seem so rosie.

But It Ain't All Bad, Is It?

Fortunately the answer is no, atleast for now. The markets dropped to open the New Year, but rebounded to end the first week in the positive (S&P 500 +1.88%). The Bond Market also got in on the act as the yield on the 10 year treasury closed over 1% for the firsst time since March 2020.

It's Still A Long Way To Go

But if you want to hear more than join us on Thursday, January 14th at 6:30 PM as we kick-off our weekly webinar series, THIRSTY for knowledge THURSDAYS with A State of the State of the Markets: A Financial Review. Visit our website www.ariesfoundation,.org/events to register and learn more.