Category Archives: Financial Independence

From an early age, Ansa knew she had the potential to turn challenges into opportunities. Despite working long hours in the fields, her father was unable to provide properly for his wife and four children. So, she did what any other girl in her position would she quit school and started working with her father on the farm.

Ansa worked hard and with consistency. However, despite working long hours, she was unable to manage her household expenses. Matters worsened when Ansas mother and brother passed away in a road accident. As life got tougher, Ansa realised that it was time to do something more. It was taking a while for Ansa to decide what was she going to do next. Until, one fateful day, a team from FrieslandCampina Engro Pakistan Limited (FCEPL) arrived in her village and approached the local prayer leader with an idea. Around prayer time, the imam made an announcement that FCEPL was going to train villagers about cattle, how to look after farm animals and monitor their health. When she heard the announcement, she just knew that she had to go for this training.

With the goal of creating sustainable livelihoods for women as well as inclusive communities in rural Pakistan, FCEPL initiated the Enhancing Womens Income through Dairy Interventions (EWID) project in 2019. This was just the opportunity that she was looking for and jumped at the opportunity to learn about cattle. The team trained Ansa and other interested villagers for three months, following which they set up a camp in the village and asked farmers to bring their animals over for a check-up.

The camp was an eye-opener for me, shares Ansa. I saw the team at work and observed what they did. I also managed to assist them in some cases. As a result of this exercise, the villagers and farmers started trusting me and my work. Now, they bring their animals to my place for consultations.

This three-month course was a game-changer for Ansa and she was glad that she is able to give back to her community as well. People in my village respect me so much. The experience has been excellent. Several farmers have benefitted from my preventive and nutrition services.

Ansa also believes that the trust and appreciation that she receives from the villagers has encouraged her to do even more than this. The response had been so positive and overwhelming that I have managed to set up my own extension services. The training has empowered me to aim for bigger and better things.

Like a snowball effect, Ansas sister Aqsa followed in her older siblings footsteps. While she was still grieving her mother and brother, Aqsa realised that she had to share the financial burden with her sister as well. While Ansa was working outside the house, Aqsa decided to quit school and help out at home. Aqsa already knew about the training her sister had received but she wanted to do something different.

The team taught her all about procuring milk and this is how Aqsa became the first woman to be a Milk Collection Agent. Then, she shared all the information with others interested in becoming agents and soon, she started her own business.

To help Aqsa and women like her, the team also set up a milk chilling facility, which has helped increased income levels. Earlier, a large quantity of milk would go to waste because of unavailability of a cold storage facility which would impact the supply and demand chain.

However, it was difficult to get the business off the ground. She faced several problems. For example, it took time to get milk from one place to another and she had no way to do it. To get on top of the situation, Aqsa decided that she would learn how to ride a motorcycle. While this made her job easier, the villagers were not accepting to the idea. However, Aqsa was determined and she wanted to work. This was the only way she could do it, and so she went ahead with her mission to break this bias.

Eventually, the villagers got used to seeing her going around on her bike and appreciated the good job she was doing. I was adamant to make this work and slowly the criticism stopped. Soon enough, I started noticing many other girls in the village riding on motorcycles. It made me happy to see the girls going to school, completing their education, and gaining good employment, enthuses Aqsa.

In a small village like Vehari, these two sisters were not only able to defy rigid stereotypes that are deeply rooted in a patriarchal society, but they also paved way for other girls as well. With their hard work and availing the opportunities they found, Aqsa and Ansa became role models for their success, financial independence and confidence.

Tehmina Majid is one such young woman who was inspired by these two sisters. Six years ago, Tehminas life turned upside down when her father passed away. At the time, he was the breadwinner of the family. Unfortunately, a few months after her fathers untimely death, her mother had a heart attack and was severely ill afterwards. This meant that she could not work in the fields anymore but as the eldest sibling, Tehmina was now responsible to put food on the table. Things were getting worse. Tehmina had to drop out of eighth grade to find a full-time job to support her mother and seven siblings and manage the household as well. Looking for work, Tehmina landed a job at a vegetable farm for Rs 6,000, which was below minimum wage. The job was tough but she worked tirelessly from 6 a.m. till late in the evening every day. Seeing her work such long hours and struggling to manage her home, the head of the village discussed her situation with the FCEPL team and recommended that they meet her.

After their first meeting, the team offered Tehmina to train her in livestock extension services. For a month, Tehmina received gruelling training on preventive measures, first aid and nutrition of livestock. To encourage and motivate her to attend training, the company organised a pick and drop transport service for her. Every morning, she was picked up from her residence and dropped off at the training facility a dairy farm on Khanewal Road. At the end of the day, she was dropped back home.

As a part of the learning process, Tehmina had started visiting nearby villages and farms and would talk to farmers about their cattle and illnesses. After completing the month-long training, Tehmina was given a veterinary tool kit and told that she could start work on disease prevention, deworming and nutrition of community animals. With her hard work and dedication, she quickly became popular. Her work encouraged people from different villages and surrounding areas to reach out to her for help. This training gave me courage, confidence and financial independence. The dark days now look brighter. Had my father been alive, he would have been proud to see what I have become, she enthuses.

There are many rural communities in Pakistan that are struggling to make ends meet. And while it can be easier to send out donations and set up temporary help projects, these projects are much more detrimental to a community. To help a community grow, initiatives should ensure that these communities can survive on their own and have a sustainable livelihood. FCEPLs initiative is all about providing long-term benefits in the form of higher yields, employment opportunities for women and a boost to rural economy. The company has trained 8,200+ female farmers, including 3,000+ female farmers and milk collection agents under the Enhancing Womens Income through Dairy (EWID) initiative of the Dairy Development Programme (DDP). Trainings under DDP and EWID include best practices for dairy farming, animal health, milk hygiene and collection, quality testing, farm economics, and calf rearing, among other trainings for capacity-building and capability-building. These trainings have helped improve the quantity and quality of milk collected. The beneficiaries are equipped with veterinary toolkits to start their own shop, offering livestock extension services, and improving resilience of farmers to climatic and economic shocks.

Empowering female farmers and agripreneurs through dairy interventions and ensuring inclusive growth and profitability, are key pillars of the companys sustainability strategy. My financial independence and work gave me the opportunity to send my younger siblings to school. My younger brother is now employed, my mother is also doing much better now and things are looking up, shares Tehmina. When asked about what she wants to do next, Tehmina did not hesitate to reply, To learn more.

The writer can be reached at

rajakamran5@gmail.com

See original here:

The brave women of Vehari - The News International

By Will Gunlicks, CFP

As a financial planner and advisor, my goal is to help clients make important transitions from job to job, and from working to retirement. These transitions can often be difficult and stressful, but with a solid plan in place and a measured approach, its possible to find success in the long run.

Will Gunlicks

A trend Ive seen in recent years involves the desire to work in retirement not at the same job, or even the same industry, and usually not at the same number of hours. People are deciding to leave their long-term job or career but theyre not leaving work entirely. Instead, theyre looking for something new, and perhaps, more fulfilling. While the global pandemic has helped influence this trend, research by Savant Wealth Management and Absolute Engagement found that the urge to work differently in retirement has been building for years. In the study, nearly 70% of respondents told us they would transition to a different kind of work or work on their own terms if they thought it was an option.

If youre considering working differently after your primary career, youre likely to meet plenty of peers in the same boat. But before you decide to be retired and working, I encourage you to consider these three questions:

An old saying, attributed to Alice in Wonderland author Lewis Carroll, reminds us that if we dont know where were going, any road will get us there. But what happens when you arrive to find that you dont like the destination?

To map out your desires and dislikes for your potential work in retirement, you need to start with your vision for the future. What are the goals that working would help you achieve in the short-term, or even in the long term? In your vision of the future, what are you doing and who are you with? How are you spending your time, on or off work? Perhaps youd like to turn a lifelong hobby into a paid position. For example, if you love golf, you might consider working at a golf course with colleagues that share similar interests. Your vision and goals will help narrow the universe of possibilities and help you identify the types of industries and/or jobs that seem most appropriate for your situation. Stating your goals in one or two written sentences can also help you start a firm blueprint for your next chapter.

Next, try jotting down your anti-vision of working in retirement. What do you not want your job to entail? What impact do you not want it to have on your life, or the lives of your loved ones? Mapping out the effect a poor choice could have on your time, money, relationships, and mental and physical wellness helps clarify what you do want. Your anti-vision can often translate into positive goals, such as making an impact in your local community, traveling more with your spouse or family, caring for an aging parent, or pursuing a hobby that fell by the wayside while you were too busy working.

Follow us on Instagram and Twitter!

Once you determine your vision and goals, its time to focus on the financial implications of your potential transition to help ensure you can maintain your planned lifestyle through retirement. Your evaluation should include these five areas:

Understanding cash flow and expenses. While many people dont follow a budget throughout their lives, creating one now can help you understand if your transition plan will work. As part of this exercise, youll need to identify which expenses are fixed (such as your mortgage, car loans, utilities, etc.), and which are discretionary (dining out, entertainment, vacations, etc.).

Next, examine your sources of income in retirement. You may receive cash flow from a pension, Social Security, rental income, or your portfolio in addition to your planned work income. To feel truly confident about your finances in retirement, consider using a robust projection calculator, or working with a CERTIFIED FINANCIAL PLANNERTM professional to crunch the numbers and test your assumptions. This exercise can help you determine your level of financial independence as well as identify how much potential income you may need from your next job.

Healthcare coverage. The next key area involves planning for the healthcare coverage you will need prior to age 65, when Medicare will start. Several options can fill this gap, including COBRA insurance from your current employer, coverage from your spouse or partner, an Affordable Care Act policy, a private market policy, or even a part-time job that includes eligibility for health insurance benefits.

Reviewing retirement accounts and other benefits. The third item includes reviewing, in detail, your retirement accounts and existing employee benefits. Before you make any big changes, youll want to understand the critical milestones, ages, and vesting schedules you'll need to consider and coordinate into your overall plan. Your company retirement plan, such as a 401(k) or 403(b), likely comprises one of your largest financial assets. If you plan to tap into your retirement account, youll need to review the rules first. Up until age 59 1/2, any distributions you receive from retirement accounts could be taxed and subject to an additional 10% early-withdrawal penalty. However, a special provision allows you to avoid penalty if you separated from service after age 55 and those dollars remain in your 401(k). If you roll those funds to an IRA, you could lose penalty-free access.

Creating a tax strategy. Your fourth key action item is to develop a multi-year tax strategy for at least the first five years of your transition. Up to this point, you likely havent had much control over your taxable income if youve earned W-2 wages. Your tax return could look very different as you transition to your new chapter, and you may find yourself with a lot more control over the sources of your income, how much you earn, and when you receive it.

The period between the end of your traditional working life and age 70 (the latest age to begin collecting Social Security) represents your strategic tax window, because you will have much more control and more opportunities for tax savings. One popular technique to consider to help save on taxes during this strategic tax window includes converting pretax IRA dollars into a Roth IRA, especially if youre in a relatively low marginal tax bracket in a given year. The second popular strategy to consider is to trade out of concentrated positions, like company stock, or other positions that have high unrealized capital gains at low or even 0% rates, if you fall under certain tax thresholds.

Investment alignment. Your overall portfolio allocation and investment mix can make or break your entire transition plan. Youll need to test your overall risk level, or the mix of stocks and bonds in your portfolio, to ensure your future expected return is high enough to keep up with inflation and the growth you need within your nest egg. Youll also need to ensure the amount of risk you're taking in your portfolio doesnt stretch beyond your personal comfort level.

Another critical component of investment alignment is making sure you put the right assets in the right accounts to ensure your overall portfolio mix is tax efficient. Your traditional or Roth IRA, as well as any taxable brokerage investment accounts, often contain a variety of assets, such as stocks, bonds, or liquid real estate. Each involves a different tax treatment, so placing the right assets in the right accounts supports long-term tax efficiency.

The final step to create your retired and working plan is to figure out how to find that next job that fits perfectly with your vision, goals, and overall financial situation. Financial planners and advisors often help clients with the first two steps, but Ive found that also using a career coach for the final step can be a tremendous boost and benefit to making this plan a reality. Mary Ellen Ball, a career coach and owner of Open Delta group, shared her thoughts with me. According to Ball, the transition steps you take may appear simple on paper, but require thoughtful planning (financial and logistical), as well as deep accountability. Her recommendations include:

Transitioning into a retired and working phase in your life can prove to be very rewarding and satisfying when done with careful planning. Hiring professionals, such as a CERTIFIED FINANCIAL PLANNERTM professional and/or a career coach, could also potentially provide you with partners and a sounding board to make this the best transition possible. Best of luck in your retired and working journey!

William V. Gunlicks is a financial advisor and team lead at Savant Wealth Management, a fee-only, independent registered investment advisor. A CERTIFIED FINANCIAL PLANNERTM professional, Will has been involved in the financial services industry since 2003.

This is intended for educational purposes only and should not be construed as personalized investment or tax advice. Please consult your investment and tax professional(s) regarding your unique situation.

Certified Financial Planner Board of Standards Inc. (CFP Board) owns the certification marks CFP and CERTIFIED FINANCIAL PLANNER in the U.S., which it authorizes use of by individuals who successfully complete CFP Board's initial and ongoing certification requirements.

Consider Your Future Living Location before Deciding Whether to Contribute to a Traditional or Roth IRA

Deciding Where to Live in Retirement

Baring All the Facts About Retiring to a Nudist Community

The 15 Best Islands in the World to Retire To

Visit link:

What Does Working in Retirement Mean, and How Do I Do It? - TheStreet

According to KuCoins Into The Cryptoverse research, 35% of Nigerians aged 18-60 have invested in or are trading bitcoin and other cryptocurrencies.

The survey exposes key information about the local population, such as the fact that 33.4 million Nigerians, or 35 percent of the population aged 18 to 60, now hold or have traded cryptocurrencies in the last six months.

Over half of Nigerian cryptocurrency investors put their money into digital currency. 65 percent of Nigerian crypto investors use peer-to-peer trading to put fiat money into cryptocurrency.

Another significant result is that 70% of Nigerian crypto investors want to expand their cryptocurrency investments in the next six months, indicating that digital asset adoption is rising in the nation.

The fact that the Nigerian currency, the Naira, has devalued by nearly 209% in the last six years might be ascribed to such high adoption rates. According to the KuCoin poll, 37% of crypto investors in the nation have been trading cryptocurrencies for more than three years, with 6% trading for more than six years.

With national inflation rates at their highest since 2008, Nigerias difficult economic situation was exacerbated by the COVID-19 epidemic, making cryptocurrencies an appealing alternative source of income, especially in the optimistic market of 2021.

Such explanations are supported by the reports findings, which show that 26% of surveyed crypto investors have started trading cryptocurrencies in the last six months.

According to the report, the strong adoption rate of cryptocurrencies also demonstrated gender parity in crypto investing, with women accounting for 50% of all crypto investors, on a level with males.

According to the breakdown of reasons for investment, 53% of investors consider cryptocurrencies to be a reliable value-storage and payment means, 50% invest to gain higher long-term returns, and 40% attempt to start their own businesses and improve living conditions.

Another 36% invest as a supplement to their salaries, 34% strive for financial independence, and 26% hope to rely on cryptocurrencies as their primary source of income.

In times of economic difficulty, cryptocurrencies are becoming a significant financial tool for Nigerians in times of payment and value storage, according to the Cryptoverse research.

.

Link:

Study Reveals That Over A Third Of Nigerians Have Invested In Crypto In The Last 6 Months - TronWeekly

Stock market holidays are non-weekend business days when the two major U.S. stock exchanges, the New York Stock Exchange (NYSE) and the Nasdaq, are closed for the day. These holidays typically closely follow federal holiday schedules, as they are usually major holidays like Christmas and Independence Day.

Regular operating hours for both exchanges are Monday-Friday from 9:30 a.m. 4 p.m. ET. Markets do not operate during the weekend.

Sometimes, if a holiday falls on a weekend, stock markets will close on the Friday prior to the holiday, as is often the case with Good Friday and Easter.

Below is the schedule for 2022 stock market holidays when the NYSE, Nasdaq and bond markets are closed:

The Securities Industry and Financial Markets (SIFMA) provides this holiday schedule as a recommendation for bond markets, and is subject to change. (Heres a list of days when banks are closed for the holidays, too.)

The stock market generally follows its holiday schedule without any additional early closures, with the exception of the day before Independence Day (falls on a Sunday in 2022), Black Friday and Christmas Eve (falls on a Saturday in 2022), when the Nasdaq and NYSE close at 1 p.m. ET.

Bond markets, however, have some early and additional closures throughout the year. Bond markets close early, at 2 p.m. ET, on the following days:

Read more from the original source:

Stock market holidays 2022: The US markets are closed on these days - Bankrate.com

The financial independence movement is inspiring new followers - as young as 28 - who want to quit their day job and do their own thing.

The pandemic has prompted people like 30-year-old Michelle Ives to realise how fragile her financial security is.

"Anything can happen that has the potential to shake the normalcy of our lives. It has reminded me of what matters - it's not sitting at a desk for eight hours a day," says Michelle.

She is drastically overhauling her family's finances, so they have more control over their lives. She wants to have the freedom to make choices about her life and work.

Michelle was already plugged into the growing personal finance movement that offers an abundance of information about saving and investing online. It is FIRE, an acronym for financial independence, retire early. As well, there is a more laid-back version, FI, or financial independence.

"If anything, the pandemic has just encouraged us to reach our goal more aggressively," says Michelle.

Michelle and her husband are saving 70% of their income and hope to retire in a few years. They have been FIRE followers for seven years. While she loves running her own copywriting business, she wants to take back her life while she is in her 30s and healthy, and to get out and enjoy it.

"In some ways, COVID-19 has actually galvanised the importance of FIRE for many because we've now had a glimpse of what a better work-life balance feels like."

People have increasingly realised that they don't want to be stuck in a soul-crushing job, with long commutes, well into their 60s. They didn't want the anxiety that comes with working flat out, explains Serina Bird, who was connected to a work chat group and emails with alerts pinging from early morning until late at night.

So much so that two in five Australian workers (43%) are unhappy with their work and are planning to actively search for a new job in 2022, according to a survey by Elmo Software. Workers are prioritising more flexibility, working remotely more often, access to extra annual leave as well as increased wages and promotion.

A third of workers say they plan to quit their current job as soon as they secure a new role, with 19% intending to quit before lining up another job.

"The 'great resignation' is a thing and most employers don't get it," says Serina, who retired at 47 from a desirable public sector position.

There are newcomers switching onto the FIRE and FI philosophies to get rid of debt, rigorously save, invest sensibly and enjoy a modest, agreeable life. Those people on the FIRE journey retire in their prime.

"The pandemic has reinforced for many the value of the basic building blocks of FIRE, such as having a cash cushion in uncertain times," says Jason, who has accumulated $2.7 million and will retire early next year.

FIRE is based on the philosophy of Peter Adeney, aka Mr Money Mustache, who kicked off the movement in 2011 (see mrmoneymustache.com).

It is about building up enough investments so you can live off the returns for the rest of your life. Once you hit the point where the income exceeds your living expenses, you no longer need to work because you are financially independent.

Adeney came up with what he calls a "shockingly simple" formula. You take your annual expenditure and multiply it by 25. This calculation is based on "the 4% rule", where retirees withdraw no more than 4% of their total savings each year.

He says if you can save 50% of your take-home pay from the age of 20, you can retire at 37. If you can save 75%, you can retire in seven years.

Adeney's "mustachianism" lifestyle is about 50% cheaper than that of most of his peers and the surplus is invested in simple exchange traded funds and a rental house or two. He has inspired not only our six case studies but has resonated with millions of followers.

The philosophy of FIREs isn't about getting rich quick, but about taking a slow path. Forget about market timing - trying to find the best time to get in and out of the market - because, as Adeney says, it generally sucks.

The FIRE movement is evolving in a time of interesting financial changes. While the focus is still on saving and taking frugal steps, it is also about the choices that open up as you edge towards financial independence.

You can fire up any part of your life with a FI strategy. It can mean you live overseas and travel 52 weeks a year. You can volunteer to help others. Or, in Tasha's case, you can have a baby on your own.

You can connect with all sorts of FIRE communities for support and feedback from real people.

Financial independence increasingly is for people who don't want to retire young or sacrifice too many of life's indulgences, but want flexibility in their lives.

"Early retirement conjures up hazy images of long golf games and pastel leisurewear," says Jason. "For seekers of early retirement, this vision doesn't connect with them very often - they are usually highly motivated and goal-oriented people with no desire to sit around on the couch for 30 to 50 years following early retirement."

"Many actively seek alternative passion projects, or to simply approach work from a strong negotiating position. This has led many to observe - myself included - that it's the financial independence we seek first and foremost, with the retire early part being optional or even irrelevant."

Dave Gow, who retired at 28, says: "You can choose your own adventure. It's not a one-size recipe for early retirement."

Some FIREs, like Matt, who runs the Aussie Firebug podcast, wants to "start a small business, spend time with my family and not have to commute to work".

Matt says he has always wanted to be able to scale back his work from five to three days a week when kids came along.

"Also, the free time to keep fit is a priority for me. I understand that when kids come on the scene things change and most people give up some of their 'me' time. I don't want to sacrifice my health and still want to be able to do all things I do now," he told the blogger Adventures with Poopsie.

Some people may not believe that retiring early in their 20s, 30s or 40s is really an option, but our case studies show that you don't need a windfall or a high-paying job or a lucrative tech start-up to retire early.

Serina, Leo, Michelle all show it is possible to save and retire early with a young family despite plenty of people telling them that financial independence wouldn't happen if you had kids and all the financial responsibilities that came with them.

Of our six case studies, Dave, Serina, Michelle, Jason and Tasha run blogs. Dave Gow hasstrongmoneyaustralia.comand, with Pat Seyrak fromlifelongshuffle.com, hosts fortnightly podcasts, FIRE & Chill. Serina Bird:joyfulfrugalista.com. Michelle Ives:thatgirlonfire.com Jason runsthefiexplorer.comand doesn't give his real name as he is apprehensive about talking to his work colleagues about his plans to retire early. Nataasha Torzsa:tashagetsfrugal.com.

The pandemic, and now the Russia-Ukraine war, have challenged short-term plans for some FIREs, especially those who enjoy travelling.

Jason, for example, says his plans to travel around Australia and overseas are now "up in the air". But it's also an opportunity to "keep my head down investing, until the outlook becomes a little clearer".

The economic fallout from the war may also hit saving and investing targets in the short term, but it's the long term that counts.

"The war in Ukraine is many things - most obviously an urgent and tragic humanitarian event as well as an opportunity for giving - but it is not a reason to change overall investment direction for someone seeking financial independence through a well-diversified portfolio," says Jason.

Markets, especially sharemarkets, tend to climb a wall of worry and expand even across periods that are objectively challenging.

"There are always sensible-sounding reasons to hold off investing, and await more certainty, but inaction just delays the powerful force of compounding returns getting underway over time. Putting in place simple automatic systems can help avoid the temptation to just wait and see that can end up costing investors dearly as markets recover and grow."

Jason says most major events reflected in newspaper headlines today will have little impact on returns over long-time investment frames of 10, 20, and 50 years.

Stay tuned over the next three weeks as Michelle, Serina, Dave, Leo, Tasha and Jason share their FIRE journeys. Or,order a copy of the April issue of Money!

Get stories like this in our newsletters.

Original post:

How the pandemic has 'galvanised the importance' of early retirement - Money magazine

April is Financial Literacy Month

The National Financial Educators Council (NFEC) defines financial literacy as possessing the skills & knowledge on financial matters to confidently take effective action that best fulfils an individuals personal, family & global community goals.

keywords? Take Effective Action.

This week I want to talk about the very basis and foundation of financial planning, the pillars on which this is all built, namely your income and expenses. How are these connected? How do they fit into an overall financial plan? How and what action should you take?

There are two types of Income Active Income and Passive Income. Active Income is earnings you earn by being physically present to work (does not have to be geographical). This includes salaries as an employee and owner drawings as an owner. Passive Income is all income you earn when not physically present or by ownership. It includes rents, dividends even your share as a silent partner in a business.

If you are employed, you earn a salary; even as the business owner, you get paid by showing up. The active earnings you make are time-bound because you cannot work forever. Thus, the plan is to slowly convert your active income to passive income. Created a closed system when you invest, then reinvest your earnings from your portfolio to compound your returns. See figure 1.

An example will be you earn N500,000 a month. You have a plan to save a minimum of 10% of every paycheck, thus N50,000. Therefore, your action goal is to invest N50,000 into an asset class that either

Thus, if you buy Zenith Shares with that N50,000, you want to take dividends paid by Zenith Bank and buy more income-generating assets or expense reducing future expenses like paying for rent.

Goal: To plan to convert 100% active income to passive income over a period. Keep it simple, target 1%, then 2%then 3% over

Figure 1. Relationship between Income and Expenses

Just like income, there are two types of expenses. You have your Non-Discretionary Expenses, which are expenses you must make irrespective of income or even ability to pay, for instance, food and rent. We can call these necessary expenses. Then there are Discretionary expenses, which are expenses you are at discretion to make. Expenses like a holiday to Greece or a new suit fall into this category.

With expenses, spending becomes critical. Spending is an activity based on emotions. Humans are not always rational when making spending decisions. Remember that every naira earmarked as non-discretionary means fewer funds are available to be spent as discretionary. If all expenses are tagged as essential then it makes budgeting a cumbersome process.

Your total income, (both active and passive) should meet and exceed expenses. If your expenditures exceed your income, you can either cut back on spending or learn a skill and grow your income. Cutting back on spending is 100% in your control. Its also not easy to distinguish between Non-Discretionary and Discretionary spending. Take food, is eating out at a restaurant non-Discretionary? You can save money by eating at home.

The long-term goal is to ensure not only your income meets expenses, but the acid test is how much of your passive income can offset your non-discretionary expenses. See figure 2

Managing expenses is creating and using a budget to capture and track spending. Your budget should have all four elements

I write about this in more detail in my book Lets talk about your money

There is a gap between income and expenses, which is usually covered by debt. Its important not to borrow to fund non-Discretionary expenses but to use debt to grow passive income generating sources.

Retirement is not a chronological date but the period when your passive income can meet and cover your non-Discretionary expenses. Again, we refer to diagram 2.

Figure 2: Financial Independence

Your goal, employee, or employer, is first to earn an income, then slowly invest that income to earn and grow your passive income. Next is to seek to pay your essential non-discretionary expenses with the income from your passive income. Once you can achieve that, you have hit your financial independence milestone and can retire.

Its that simple.

Related

Visit link:

The secret to financial independence is when your passive income crosses this milestone - Nairametrics

How to find the right financial adviser for you. Getty Images/iStockphoto

Question: Im about three years from FIRE (Financial Independence, Retire Early) status and have been looking at placing a portion of my investable assets with an advisor, which would still be seven figures. As Ive been conducting interviews with many of them, they all have two areas of concern that I do not like and give me pause. One, they want to charge a fee even if they are not making my assets grow (they get paid no matter what the portfolio does), and two, they want me to place my assets all at one time, whereas I prefer a leg in strategy over time, much the way I handle any stocks I buy. Since I dont know the advisor nor their firm, Id like to move assets over in tranches, perhaps 25% each quarter for 4 quarters. (You can use this tool to get matched with a financial adviser who might meet your needs.)

Have a question about working with your financial adviser or looking to hire one? Email chill@marketwatch.com.

Are these expectations of mine unrealistic, and am I going to have a very difficult time finding an advisor that fits my preferences with which I am comfortable? Ive been in the markets for over 20 years and have been comfortable, up to this point, in managing my own investments. But I want to spend less time on that and allocate time to other pursuits during my second act, and I also want to be sure the investments are being managed for my wife in the event I predeceased her since she is not financially savvy.

Answer: Lets start with your first issue: why all the advisers wanted to charge you a fee no matter how the assets performed. Thats probably because one of the most standard fee structures among financial advisers is for them to charge a percentage of your assets under their management (roughly 1% is common). They do it because markets do go up and down, and advisers want to protect themselves. And adds Steve Stanganelli, certified financial planner at Clearview Wealth Advisors: Many, not all, investment advisers will also be providing retirement projections, portfolio withdrawal scenarios, advice on Social Security, tax projections budgeting and cash flows or even real estate issues in addition to standard rebalancing and investment allocation. No doubt, they want their time on those tasks paid for as well, so the assets under management system may work well for them.

Thats not to say that you cant find someone who doesnt work like this. Some advisers charge performance-based fees, though certified financial planner Mark Brinser of Stewardship Advisors says this may be difficult to find. Performance based fees are when an adviser only collects a fee if they outperform a certain benchmark and the fee is forfeited if the adviser does not beat the benchmark, says Brinser. This compensation method was actually banned for registered investment advisers for a time, and now, its only allowed for clients who meet certain criteria. (You can use this tool to get matched with a financial adviser who might meet your needs.)

And one thing to note: Even in a traditional assets under management model, should an account value drop and the dollar amount decrease, the adviser still has an incentive to make good investment decisions to help the account recover as quickly as possible, says Brinser. In fact, I would argue that a good financial adviser demonstrates their value the most when markets are volatile. We can listen to clients concerns and help them develop a strategy to get through market turmoil, says Brinser.

One option you may want to consider is paying an adviser hourly or a one-time fee to set you up a plan. You might be able to enlist an advice-only, fee-only, certified financial planner to help streamline your investments to a point where you can still enjoy your pursuits without handing it over to someone else, says Jay Zigmont, certified financial planner and founder of Live, Learn, Plan. The challenge is that you are going to have to find a sweet spot between do-it-yourself and delegating responsibility, says Zigmont. For this reason, you should work with your adviser to create a comprehensive financial plan that takes into account both your preferences and consideration and the advisers approach and experience. (You can use this tool to get matched with a financial adviser who might meet your needs.)

Zigmont says its not odd for people to move only part of their portfolio to an investment adviser and plenty of advisers should be willing to work with you on this.

So why did the advisers not let you move money slowly over to them? One possible reason is this: The more assets they have under management, the more they take home from your accounts, so they want more, not less money. Some firms even have asset minimums. Advisers can make such accommodations given a clients particular circumstances, but each firm has an assets under management minimum for a reason, says wealth adviser Bruce Tyson at Morton Wealth. The reason firms may have minimums is to keep their client roster within a certain range and to possibly dissuade short-term investors from taking up time that could be spent on longer-term clients. And moving over the funds in increments creates special challenges when planning a clients asset allocation. As with any business, there is much more under the hood than most clients may initially realize, says Tyson.

You can use this tool to get matched with a financial adviser who might meet your needs.

If youre concerned about your less money-savvy spouse, Stanganelli says you should consider adding life insurance to the mix. This will provide replacement income and even liquidity for any state-level taxes that your wifes estate may ever end up having to pay, says Stanganelli.

Read the original:

2 things all the financial advisers I talked to told me that I dont like - MarketWatch

Money has a bit of a bad rep. Especially when women prioritise their financial well-being above marriage or having children. But at the same time, every woman has, at some point, faced the inevitable question of whether she should let her life partner take care of her financially or continue to remain largely independent.

Which is why we just had to talk about thisRedditthread where women are discussing what they would do if their partner asked them to quit their job, in exchange of financial support. Maybe we can all find something to relate to in here? Let's take a look.

-contextISeverything

-Idrialis

-windysunshine

-kitty_withlazers

-Idrialis

-freckled8082

-No_Airline_970

-19CatsInATrenchCoat

-Batsarebest

-WuTangraisedme

Financial independence is freedom. You never know what could happen and he would always have the upper hand. Want space? Too bad cant afford it. Want some thing he doesnt want to pay for? Too bad, cant afford it. He does something warranting breaking up? How will you afford leaving? Itll be hard, it'll take much longer. Big nope. Unless there is some form of monetary compensation for running the household (and using your tax credits, in certain countries).

-Ladidaladidi

-MyLife-is-a-diceRoll

-malaavida

-tsh87

-Kind-Set9376

-shrimpfajita

-Joia_Floof

-ClaireHux

What would you do if you were in a similar position?

Link:

18 Women Reveal What They Would Do If Their Partners Asked Them To Quit Their Jobs - ScoopWhoop

Press Release - Apr 12, 2022 12:00 EDT

CALVERTON, Md., April 12, 2022 (Newswire.com) - Potomac Financial Group (PFG), a Maryland-based provider of premier financial planning and wealth management services,announced today that Managing Partner Todd Wike has once again been named to Forbes'distinguished list of America's Best-in-State Wealth Advisors. Out of approximately 34,925 nominations,the annual ranking spotlights more than 6,500 advisors who are researched, interviewed, and assigned a ranking based on an algorithm of qualitative and quantitative criteria. This is the third consecutive year Wike has appeared on the prestigious list, which was released on April 7, 2022.

"To be recognized among the nation's leading wealth advisors for a third consecutive year is an honor and tribute to the entire PFG team," said Todd Wike, Managing Partner at Potomac Financial Group, Financial Advisor and CERTIFIED FINANCIAL PLANNERprofessional at Raymond James Financial Services."In these uncertain and often volatile times, we understand more than ever our important role in delivering financial confidence to our clients. It's this very commitment that drives us every day as we help our clients find their financial freedom."

The Forbes ranking of Best-In-State Wealth Advisors, developed by SHOOK Research, is based on an algorithm of qualitative criteria, mostly gained through telephone and in-person due diligence interviews, and quantitative data. Those advisors that are considered have a minimum of seven years of experience, and the algorithm weights factors like revenue trends, assets under management, compliance records, industry experience and those that encompass best practices in their practices and approach to working with clients. Portfolio performance is not a criteria due to varying client objectives and lack of audited data. Out of approximately 34,925 nominations, more than 6,550 advisors received the award. This ranking is not indicative of an advisor's future performance, is not an endorsement, and may not be representative of individual clients' experience. Neither Raymond James nor any of its Financial Advisors or RIA firms pay a fee in exchange for this award/rating. Raymond James is not affiliated with Forbes or Shook Research, LLC. Please visit https://www.forbes.com/best-in-state-wealth-advisors for more info.

Visit PotomacFinancialGroup.com to learn more about PFG's wide-ranging financial planning and personal wealth management solutions.

Media Contact:SaraAulebachExecutive Assistant & Marketing CoordinatorPotomac Financial GroupTel: 301.595.8600Sara.Aulebach@RaymondJames.com

About Potomac Financial Group|Since 1973, Potomac Financial Group (PFG) has served as a premier financial planning and wealth management firm singularly committed to helping its clients and families achieve financial independence and security. With almost 50 years of combined experience, PFG has grown to be one of the region's most trusted financial planning firms through its innovative financial solutions and commitment to exemplary personal care. To learn more, visit PotomacFinancialGroup.com.

4061 Powder Mill Road, Calverton, MD 20705Phone: 877.595.8605

Potomac Financial Group is not a registered broker/dealer and is independent of Raymond James Financial Services. Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC.

Investment advisory services are offered through Raymond James Financial Services Advisors, Inc. Certified Financial Planner Board of Standards Inc. owns the certification marks CFP, CERTIFIED FINANCIAL PLANNER, CFP (with plaque design) and CFP (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.

Source: Potomac Financial Group

Continue reading here:

Potomac Financial Group's Todd Wike Named to Forbes' 2022 List of Top Wealth Advisors for Third Consecutive Year - Newswire

(Justin Paget via Getty Images)

As people are living longer and many young adults are struggling to gain financial independence, about a quarter of U.S. adults (23%) are now part of the so-called sandwich generation, according to a Pew Research Center survey conducted in October 2021. These are adults who have a parent age 65 or older and are either raising at least one child younger than 18 or providing financial support to an adult child.

Americans in their 40s are the most likely to be sandwiched between their children and an aging parent. More than half in this age group (54%) have a living parent age 65 or older and are either raising a child younger than 18 or have an adult child they helped financially in the past year. By comparison, 36% of those in their 50s, 27% of those in their 30s, and fewer than one-in-ten of those younger than 30 (6%) or 60 and older (7%) are in this situation.

Men and women, as well as adults across racial and ethnic groups, are about equally likely to be in the sandwich generation, but there are some differences by educational attainment, income and marital status. About a third of married adults (32%) are in the sandwich generation, compared with 23% of those who are divorced or separated, 20% of those who are living with a partner, and just 7% each of those who are widowed or have never been married.

To assess the share of U.S. adults who are in the sandwich generation, that is, who have an aging parent age 65 or older and are raising children younger than 18 or providing financial support to adult children, the Center surveyed 9,676 U.S. adults during the period of Oct. 18-24, 2021. Everyone who took part is a member of Pew Research Centers American Trends Panel (ATP), an online survey panel that is recruited through national, random sampling of residential addresses. This way nearly all U.S. adults have a chance of selection. The survey is weighted to be representative of the U.S. adult population by gender, race, ethnicity, partisan affiliation, education and other categories. Read more about the ATPs methodology.

Here are the questions used for the report, along with responses, and its methodology.

Adults with at least a bachelors degree (30%) are more likely than those with some college or less education (20%) to be in the sandwich generation. And while 27% of those with upper incomes are sandwiched between an aging parent and their own children, a smaller share of those with lower incomes (21%) are in this situation. About a quarter of adults with middle incomes (24%) are part of the sandwich generation.

The family circumstances of sandwiched adults vary considerably by age. In their 30s and 40s, most have an aging parent and at least one child younger than 18, but no adult children theyve supported financially. This is the case for nearly all sandwiched adults in their 30s (95%) and 65% of those in their 40s.

By the time theyre in their 50s, far smaller shares of sandwiched adults are raising children who are minors. Instead, a majority of those in their 50s (59%) and those 60 and older (83%) are sandwiched between an aging parent and an adult child theyve helped financially.

Among those in their 40s and 50s, the two age groups most likely to be in the sandwich generation, about one-in-five have both a child younger than 18 and an adult child theyve helped financially, in addition to having an aging parent. There arent enough sandwiched adults younger than 30 to analyze separately.

Adults who are sandwiched between an aging parent and a minor child or an adult child theyve helped financially are more likely than those who are not in this situation to say they are very satisfied with their family life (48% vs. 43%, respectively). This difference is particularly pronounced among those in their 40s: About half of sandwiched adults in this age group (49%) say they are very satisfied with their family life, compared with 38% of other adults in the same age group.

When it comes to assessments of some other aspects of life, adults who are and are not sandwiched give similar answers. About a quarter in each group say they are very satisfied with their social life and with the quality of life in their local community, and 17% in each express high levels of satisfaction with their personal financial situation.

Adults who are sandwiched between an aging parent and their own children are about as likely as other adults to live in a multigenerational household, though they may not be living with the family members they are sandwiched between. About one-in-five in each group live with multiple adult generations under the same roof (19% of those in the sandwich generation vs. 18% of other adults).

A Pew Research Center survey conducted in 2014 also found that 23% of U.S. adults were in the sandwich generation. However, the 2014 survey was conducted by phone rather than the Centers online American Trends Panel, so these results arent directly comparable.

Note: Here are the questions used for the report, along with responses, and its methodology.

Follow this link:

More than half of Americans in their 40s are 'sandwiched' between an aging parent and their own children - Pew Research Center