As explained in Morgan Housel’s book, “The Psychology of Money,” the most important word in building personal wealth is having “enough.” Being content with your standard of living allows you to focus on how you want to spend your time, rather than chasing more dollars. Having “enough” doesn’t mean you don’t have aspirations. It creates… Read more »
Spending what they don’t have works for politicians at the national level (who don’t need to balance a budget). Cutting taxes and/or increasing spending brings home the bacon and provides job security. History is instructive in this regard. Ronald Reagan increased the national debt by 186% while in office, percentage wise higher than debt… Read more »
During your working years, financial incentives tend to make decisions for you. As you age toward retirement, you’re able to make decisions allowing your money to serve you, rather than continuing to be a servant for the money. Just as an unhealthy relationship may string you along with false promises and expectations, many employers… Read more »
It’s no secret the housing market is hot and low rates are part of what’s fueling the fire. According to Bankrate, the average 30-year fixed mortgage rate is currently at 3.33%, while the average 30-year fixed mortgage refinance rate is just behind that at 3.35%. Before rushing into a new loan, here are a few… Read more »
The term “overview effect” was coined in 1987 by author Frank White to describe the intense awe astronauts feel when viewing the earth from space. Astronauts report viewing the earth as incredibly “fragile” and have been documented to see the earth (and life itself) differently upon their return, wanting to protect the earth (and all… Read more »
Preparing your family for what will happen upon your passing is a crucial and often overlooked part of the estate planning process. Along with drafting your estate plan, you may have neglected an important part of the process- communicating your plans. It’s important to communicate your intentions to the implementers of your documents. Typically… Read more »
Is a financial check-up on this year’s spring cleaning list? You’ve tidied the house and put the finishing touches on the landscaping, but don’t forget to review your finances. Add these five items to your list this year: Pay Yourself First Small adjustments can go a long way toward helping to build wealth…. Read more »
President Biden has just announced his proposal for increasing long-term capital gains tax rates (as part of his American Families Plan). The long-term capital gains rate applies to realized gains on stocks held for at least one year, and is currently lower than the tax rate for ordinary income (or wages). For instance, the… Read more »
Have you ever experienced playing with the “house’s money” at a casino? You’re on a hot streak and are willing to take on more risk because you view your winnings as not your money, but the house’s money. Psychologically, it doesn’t feel like it’s yours to lose! The “house money effect,” or “mental accounting”… Read more »
