Curated Links: 04/15/2024 – How to Manage Windfalls
The Curse of Mental Accounting
Since the conscious mind can only handle a few thoughts at any given time, it’s constantly trying to “chunk” stuff together, to make the complexity of life a little more manageable. Instead of thinking about each M&M, we think about the scoops. Instead of counting every dollar we spend, we parcel our dollars into particular purchases, like paying for a hotel room. We rely on misleading shortcuts because we lack the computational power to think any other way.
https://www.wired.com/2011/02/the-curse-of-mental-accounting/
Source: Wired
The Surprising Link Between Guilt and Overspending: Does It Cause You To Waste Money?
Overspending, followed by guilt, followed by more overspending can become a vicious cycle. However, by confronting one’s guilt rather than avoiding it, one can use it as the fuel necessary to achieve financial responsibility through the pragmatism of careful budgeting and the detoxification of buyer’s guilt.
https://finance.yahoo.com/news/surprising-between-guilt-overspending-does-150108443.html
Source: Yahoo Finance
How to Get Over Spending Guilt
Spending guilt is something that many people experience when it comes to their money. According to a 2019 survey, consumers say they feel guilty about every one in five purchases they make. They spend around $89 every week that they feel guilty for, which totals $277,680 over their lifetime.
https://mixedupmoney.com/how-to-get-over-spending-guilt/
Source: Mixed Up Money
Here’s why lottery winners go broke
Just eight months after winning, he was robbed of $545,000. “I just don’t like Jack Whittaker. I don’t like the hard heart I’ve got,” he said. “I don’t like what I’ve become.”
https://www.cnbc.com/2017/08/25/heres-why-lottery-winners-go-broke.html
Source: CNBC
Why do 70 percent of lottery winners end up bankrupt?
In fact, about 70 percent of people who win a lottery or get a big windfall actually end up broke in a few years, according to the National Endowment for Financial Education.
https://www.cleveland.com/business/2016/01/why_do_70_percent_of_lottery_w.html
Source: Cleveland Press
Curated Links: 04/08/2024 – Tax Deadline: One Final Review
I Made a Mistake on My Taxes
You have many options on how to fix a mistake on your tax return depending on whether you received a notice and the kind of mistake you made.
https://www.taxpayeradvocate.irs.gov/get-help/issues-errors/i-made-a-mistake-on-my-taxes/
Source: Tay Payer Advocate
What Happens If I Don’t File My Taxes?
Though some Americans with low income are technically not required to file tax returns, the IRS generally expects you to submit a return if you meet the earnings criteria.
https://www.forbes.com/advisor/taxes/what-if-you-dont-file-taxes/
Source: Forbes
How the IRS knows you didn't report income
When it suspects a taxpayer is failing to report a significant amount of income, it typically conducts a face-to-face examination, also called a field audit. IRS agents look at a taxpayer's specific situation to determine whether all income is being reported.
https://www.cbsnews.com/news/how-the-irs-knows-you-didnt-report-income/
Source: CBS News
How to Handle an Incorrect 1099 from the IRS
Should there be an error on your 1099 form, it is a bad idea to ignore it. You will save yourself a lot of stress by taking control of the issue.
https://www.taxprofessionals.com/articles/how-to-handle-an-incorrect-1099-from-the-irs
Source: Tax Professionals
Made A Mistake On Your Tax Return? 15 Things You Need To Know
Most folks assume that work for tax professionals tapers off after Tax Day, but for many of us, the pace actually picks up. This is often the time when the tough questions begin. Mistakes are totally fixable. Here’s what you need to know:
Source: Forbes
Curated Links: 04/01/2024 – The Power of Storytelling and Children
The Hidden Truth About Values
Some of the best work parents and grandparents can do to support their children is helping them to deeply fulfill foundational values, find ways to express their focus values, and encourage their aspiration to live more into their higher values – or, to shift this slightly, help them meet their
foundational needs, focus on their current needs, and support their efforts to meet their higher order needs.
https://jehjf.org/hidden-gem-8-the-hidden-truth-about-values/
Source: James E Hughes Foundation
Storytelling Traditions Across the World: Native American
Storytelling is an ancient and intimate tradition between the storyteller and their audience. Over time, how we tell a story has evolved but the key elements have remained unchanged.
https://allgoodtales.com/storytelling-traditions-across-the-world-native-american/
Source: All Good Tales
Family Storytelling and the Benefits for Children
Parents are encouraged time and time again to read stories from books with their young children, as the benefits are many – improved literacy skills, increased school success, parent-child bonding, developing a lifetime interest in reading and more. Yet, everyday family stories may offer some of the same benefits as reading, along with other benefits, too.
https://extension.unr.edu/publication.aspx?PubID=2448
Source: University of Nevada
The role of intergenerational family stories in mental health and wellbeing
Patterns of memory sharing begin early in one’s life, informing relationships, one’s history, and one’s sense of cultural belonging. Memory sharing among families has been the focus of research investigating the relationship between mental health and intergenerational memory.
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9551165/
Source: PubMed
Movement Building And The Rising Generation Of Wealth
Movements will continue to have a strong audience with young people who receive their social and philanthropic education through voices in media that resonate with their values.
https://www.familywealthreport.com/article.php?id=195901
Source: Family Wealth Report
Curated Links: 03/18/2024 – Replace Limiting Money Beliefs
Are Your Money Beliefs Holding You Back?
Once you’ve identified your patterns of thinking about money, you can begin to examine how changing those beliefs can fundamentally improve your financial situation. Then you will truly be ready to take mindful, deliberate steps to turning resolutions of change into reality.
Source: Forbes
To improve your finances, learn your ‘money script,’ psychologist says
Many people may have heard about the various so-called attachment styles psychologists and sociologists say we display in our closest relationships, such as “anxious attachment” or “avoidant attachment.” It turns out we also tend to follow certain patterns when it comes to our relationship with money.
Source: CNBC
Nine lessons in wealth-building from The Millionaire Next Door
When it comes to retirement planning, adopting the lifestyle of the “millionaire next door” means you can save more toward a lower-priced goal. That's a formula that can help even non-millionaires achieve their retirement goals.
Source: Get Rich Slowly
Role Modeling Is A Superpower To Help Live Your Best Financial Life
A role model is a person whose behavior or success can be emulated by others. According to social learning theory, it is our human nature to learn from observing others’ actions and the resulting outcomes. In other words, it is in our nature to learn from each other. Whether we like it or not, we have role models we look up to and are likely serving as role models to someone in our lives, especially if we have children.
Source: Forbes
15 Ways to Build a Growth Mindset
Want to increase your chances of success? Then develop your growth mindset.
Source: Psychology Today
Curated Links: 03/11/2024 – Tax Efficient Investing
5 Things to Consider About Taxable Municipal Bonds
Taxable municipal bonds may be an attractive option for investors in lower tax brackets, but there are things investors should know before making a decision.
Source: Schwab
Bond Basics: Municipals
Bonds help add diversity to your portfolio and control risk. But they can be complicated. Municipal bonds are lower risk and have some tax advantages.
Source: Kiplinger
Asset Location Can Lead to Lower Taxes. Here's How to Get More Value.
Asset location—choosing where to place your investments based on tax treatment—might seem straightforward. But there are some nuances, and the "ideal" execution depends on your personal situation.
Source: Vanguard
Using Asset Location to Defuse a Retirement Tax Bomb
Investors can set themselves up for lower tax bills in retirement using a strategy few folks are familiar with: asset location. The idea behind it is simple, but implementing it can be a bit tricky.
Source: Kiplinger
What Does It Mean to Be Pre-Tax or Tax-Advantaged?
As you look over an employer’s benefits selections or research retirement accounts, you may see phrases like “pre-tax” and “tax-advantaged.” But what do these terms really mean, and why is it important for you to know the difference? Though they all imply a tax benefit, these statuses carry distinct implications for your wallet.
Source: FINRA
Curated Links: 03/04/2024 – How to Find, Define and Use Your Values
How to Find, Define, and Use Your Values
There’s so much power in understanding what your values are — they can help you make decisions, guide your career, and even live a happier life. Here’s how can you think about your values in an intentional way.
Source: Harvard Business Review
Personal Values: How to Know Who You Really Are
When we are disconnected from our own values—we value playing video games all day yet believe we value ambition and hard work—our beliefs and ideas get disconnected from our actions and emotions. And to bridge that disconnect, we must become delusional, about both ourselves and about the world.
Source: Mark Manson
Value Investing and Values-Based Investing Gain Momentum
Optimizing for wealth creation and positive impact for the future is more accessible now than ever before. As we slay the dragons and escape the bears, it’s possible to run toward a prosperous and sustainable future.
Source: Kiplinger
Let Your Values Drive Your Choices
Life is complex and we are all faced with moments in our personal and professional lives that require us to make a choice without as much information as we need. The default assumption is that we need more knowledge or research in these situations, but often we just need a clear understanding of our values.
Source: James Clear
15 Effective Ways to Discover And Articulate Your Core Values
Some people know and can clearly state the values they hold dear. For others, however, articulating their values isn’t so easy. Coming up with a clear and coherent set of personal values can feel overwhelming; getting guidance on how to work through the process can be helpful.
Source: Forbes
Curated Links: 02/26/2024 – What You Need to Know About Education Trusts
What is a Trust Fund? Everything You Need to Know
Trusts can offer financial protections, tax benefits, and even long term support to loved ones -- making them an invaluable tool in Estate Planning. That being said, Trusts have complex legal structures that can make them challenging to understand. Learning more about Trusts can be intimidating, but it is a necessary step in the Estate Planning process.
Source: Trust & Will
Secret Tax Benefits of an Education Trust Fund
If you have children in paid-for education, or will do in the future, then an educational trust might help alleviate some of the pressure of these costs, but also save you on tax, too.
Source: Money Magpie
Building an Education Trust
Whatever trust you choose, remember that it’s always better to have an escape hatch, in case there’s an unexpected emergency, a tax-code change, or cash left over after beneficiaries finish their education.
Source: Penta
Funding Education? Consider A Trust Instead of A 529 Plan
For those who are so fortunate as to be burdened with potential estate tax issues, there may be a more advantageous approach that can both fund future educational costs, as well as reduce the donor’s potential future estate tax.
Source: Barrons
Curated Links: 02/26/2024 – What You Need to Know About Education Trusts
What is a Trust Fund? Everything You Need to Know
Trusts can offer financial protections, tax benefits, and even long term support to loved ones -- making them an invaluable tool in Estate Planning. That being said, Trusts have complex legal structures that can make them challenging to understand. Learning more about Trusts can be intimidating, but it is a necessary step in the Estate Planning process.
Source: Trust & Will
Secret Tax Benefits of an Education Trust Fund
If you have children in paid-for education, or will do in the future, then an educational trust might help alleviate some of the pressure of these costs, but also save you on tax, too.
Source: Money Magpie
Building an Education Trust
Whatever trust you choose, remember that it’s always better to have an escape hatch, in case there’s an unexpected emergency, a tax-code change, or cash left over after beneficiaries finish their education.
Source: Penta
Funding Education? Consider A Trust Instead of A 529 Plan
For those who are so fortunate as to be burdened with potential estate tax issues, there may be a more advantageous approach that can both fund future educational costs, as well as reduce the donor’s potential future estate tax.
Source: Barrons
Curated Links: 02/19/2024 – Kick Off Tax Season with Confidence
‘Buyer beware.’ Anyone can call themselves a tax preparer. Here’s how to find a qualified professional
There’s a staffing shortage in the accounting industry, and it’s not too early to lock in a tax preparer for next season. If you need someone with specialty expertise, such as the employee retention tax credit or cryptocurrency taxes, it may take longer to find a qualified match. But vetting is always important, experts say.
Source: CNBC
How to File Taxes This Year: 2024 Tax-Filing Guide
Whether you're a first-time filer or just need help learning how to file taxes on your own, here's a quick guide that covers how, when and where to file your return this year.
Source: NerdWallet
Seven red flags that your tax preparer is a fraud
“It’s important for taxpayers to be vigilant and, if possible, double-check their preparer’s work just to make sure that refund isn’t too good to be true,” said Ciaran McEvoy, a spokesman for the U.S. attorney’s office in Los Angeles.
Source: Washington Post
Should I do my own taxes or hire a pro? Here's how to decide.
Since most people's financial situations change every year, whether to do your own taxes or hire an accountant is a question worth asking annually. The flowchart below can help you make a quick decision, but keep reading for more detailed guidelines.
Source: Business Insider
How to Find a Reputable Tax Preparer Near You
For some people, annual taxes are easy to do on their own. But for those who have started a business, taken on freelance work or received unemployment benefits, it can be much more complicated. That’s where a qualified, local tax preparer can help.
Source: US News
Curated Links: 02/12/2024 – Dialing In Your Post-Employment Retirement Plans
Beyond the 4% Rule: How Much Can You Spend in Retirement?
How much can you spend in retirement without running out of money? The 4% rule is a common rule of thumb, but we think you can do better by finding your personalized spending rate.
Source: Schwab
How To Create The Exact Life You Want
What is behind this process is believing, again and again, every day, that you are a creative being, that you can will the life you want into being and make it a reality.
Source: Forbes
8 Steps to Make Sure You Don't Go Broke in Retirement
You've worked hard your whole life to be able to enjoy retirement. Once you enter that phase, the goal is to make sure your money lasts as long as you do. To that end, here are some things you can do to drastically increase the odds that you won't run out of money.
How Thinking About 'Future You' Can Build a Happier Life
We should think more about whom we'll be in the future – because doing so has profound consequences for our health, happiness and financial security.
Source: BBC
6 Factors Affecting Your Retirement Health Care Costs
Average health care costs, even with Medicare, could surpass $5,000 per year, according to a model we developed in partnership with Mercer Health & Benefits.* And although costs vary substantially from person to person, it's possible to estimate what yours might be—and then plan for them.
Source: Vanguard