The Best Way to Rob a Bank is to Own One

The best way to rob a bank? Own one.

This according to William Black, author of the book The Best Way to Rob a Bank Is to Own One: How Corporate Executives and Politicians Looted the S&L Industry

Currently an Associate Professor teaching Economics and Law at the University of Missouri, his book paints a picture of the fraud that occurred during the 1980’s Savings &Loan  crisis from his front row seat as a senior regulator.

William Black calls it as he sees it.

Our current financial meltdown a “moral crisis” and one of calculated dishonesty.

“A single bank, IndyMac, lost more money than the entire savings and loan crisis.”

The difference between now and then, explains Black, is a drastic reduction in regulation and oversight, “We now know what happens when you destroy regulation. You get the biggest financial calamity of anybody under the age of 80.”

What is so important to understand that the checks and balances, the regulations meant to protect our fiinancial system, vanished once again. Will we never learn?

Watch the April 3rd Bill Moyers’ PBS video interview to hear William Black’s insight and full analysis. (opens in a new window) Please share your thoughts.

Financial Serenity – Second Step Acceptance

Financial serenity begins with acceptance.

The second step in the Swan Circle of Wisdom is Acceptance.  You must embrace your current reality before you map out and begin your personal journey to financial serenity.

Balancing the wisdom of knowing what you actually control and learning what you must accept will transform your life. You cannot control the passage of time, world events, or the daily fluctuation of the stock markets.

But you can control your thoughts, attitudes and perspectives.

You can choose how you spend your time, how much you choose to spend or save, and where you place your money to ensure either its protection or potential growth. You can choose to find an advisor you trust.

You can decide to make an investment that is guaranteed to provide you with an exceptional return on your time and money. Education and skill building.

By laying a foundation of personal awareness, you will realize that the power to change direction lies with you. Watch the video and understand that the most serious threat to your future and that of your children is our country’s addiction to debt.

Accept the truth. Then take control. I’m here to help. Please take time to share your thoughts. Let me know if you are interested in a Women & Money workshop by either posting below or contact me.

Next Step Accountability, the Freedom of Responsibility

Financial Serenity: First Step Awareness

Not sure how to get out of debt and gain financial serenity?

Our decision-making process, the Circle of Wisdom, teaches that awareness is the first step in creating a life you love. So how does that help you get out of debt and gain financial serenity?

It’s just like dieting. When you begin a weight loss plan, an “in your face” reality check can clearly show you that what you are consuming is the problem. This awareness can be the wake up call that transforms and energizes your goals. Now that you know the problem, you can achieve success.

If you don’t know where your money is going, it’s impossible to plug the leaks and gain financial peace of mind. Although I use QuickBooks for my business, I have been searching for a simple financial software system I could recommend for personal financial planning.   You Need a Budget is more than a simple, effective personal budget financial software system. It is a tool that will help you quickly gain an awareness about money and lead you on the path to financial peace of mind.

Get Out of Debt, Stop Living Paycheck to Paycheck and Stop Fighting with Your Spouse

End sleepless nights and the stress that financial insecurity brings. Create a written spending plan (I’m not fond of the term budget) that simply and effectively works. Money management is made easy when you know what you want, realistically look at your income and debt, and create a spending and saving plan that works for you and your family. Sometimes a simple financial software tool helps takes the dread out of budgeting.

Do you need a personal financial software tool to get out of debt?

Not necessarily. But gaining clarity about your current money situation will be your lightbulb moment. A true foundation to regaining financial control.

Whatever financial planning tool you decide to use (even a simple Excel or Numbers spreadsheet or spiral notebook), gaining a clear insight or awareness into your current situation is essential to get a snapshot of your financial picture.

These tools will shine a strong light on the problem and you will immediately know what you need to do to get out of debt and gain financial peace of mind. Awareness is the important first step.

An Amazon best seller with 93 5-star reviews, this You Need a Budget personal financial software can be up and running within minutes, allowing you to import your banking transactions, track all your spending, and quickly gain financial peace of mind by gaining control of your money. Compatible with Windows Vista/2000/XP, not Macs.  Users claim it is easier to use than Quicken or Money. As I haven’t used those tools, I can’t comment.  I do know You Need a Budget is a much less expensive financial planning software tool especially considering the provided support options.

Created by Jesse Mecham, a Certified Public Accountant, and based on four rules of cash flow, this personal financial software budgeting program helps you maximize your money as you set and fulfill all your financial goals. Get out of debt, save for retirement and remove guilt about spending money by having a defined spending plan already in place. Spreadsheets, online video tutorials, and community forums are made available.

Is this financial planning tool right for you? Maybe. Maybe not.

If you are interested, there is a 60-day free trial available to see if it’s a good fit.

Reviews:

“Just what I was looking for. I was looking for software that used the “envelope system” of budgeting where you take your cash and divide it up into different envelopes for your budget categories and then is removed as you spend. This software fit perfectly…”

“This software is very easy to use. The company goes way above and beyond to make sure you are comfortable through extensive video tutorials and customer support. You can even attend free webinars that go step by step…”

“I love it!! It is so freeing to get a month ahead on paying bills, but even if you aren’t planning to do that, you can use this software and tell your dollars where to go instead of wondering where they went!!!”

“The best thing about YNAB is that I know exactly how much money I have for everything. I know how much I want to spend on clothing, so I dont feel guilty when I buy something…”

“I have used Quicken and Money for several years and I can honestly say that, this is the best tool I have used so far. YNAB is a powerful budgeting tool, but if you only need to track and budget your income and spending, then this is the tool for you. “

Check out more success stories here.

The bottom line? Awareness is the first step to Take Control of Your Money

It is important to face reality, find the money leak and make the decision to fix it. Money matters. Start your Get Out of Debt Journey today.

Resource: 
You Need a Budget

Financial Security in Uncharted Waters

Take Heart. Seasons Change. Bears Hibernate. The Tide Will Come In.

It’s the nature of the beast. Change is inevitable. How do you achieve financial security in uncharted waters?

If you haven’t done so yet, it is vital you protect yourself and conserve cash now, so when the true buying opportunities present themselves (and they will), you’ll be ready, with cash to invest. Unlike the masses, you can profit from this beastly decline.

Take advantage of upticks in the market to sell investments. Don’t mistake them for a new bull market. Not yet. ***

The ebb and flow of the ocean tide provides powerful life lessons. I’ve just returned from spending time at Cape Canaveral, walking and biking the beach each day, quieting the soul to open myself to the life lessons I would discover.

Ocean tides are predictable; just like clockwork they naturally and alternatively rise and fall. But the choppiness of the waters, height of the waves and color of the ocean change unpredictably each day. Some days the wind creates whitecaps even within a sheltered bay. Other times the ocean itself is calm and flat waters prevail.

But the tides?

Predictable. Expected. Unavoidable.

Understand the tides of investing are similar. Don’t fight reality nor bury your head in the sand. Neither will help your situation. When times are prosperous and the market is rising, no one thinks those times will ever end.

When the market is in a downward spiral, there also doesn’t appear to be an end in sight. Neither belief is true.

Contrarian wisdom wins every time. It is time to prepare for the next wave. Think about this …

Read more

The Fox and the Goat: Who do you trust?

Are you listening to a fox or trusted advisor?

By an unlucky chance a Fox fell into a deep well from which he could not get out.  A Goat passed by shortly after and asked the Fox what he was doing down there.

“Oh, have you not heard?”said the Fox, “there is going to be a great drought, so I jumped down here in order to be sure to have water by me.  Why don’t you come down too?”

The Goat thought well of this advice, and jumped down into the well.  But the Fox immediately jumped on her back, and by putting his foot on her long horns managed to jump up to the edge of the well.

“Good-bye, friend,” said the Fox, “Remember next time,
Never trust the advice of a man in difficulties.” Aesop

Whose guidance are you following?

Surrounding yourself with people who all spout the same financial jargon, from newscasters, brokers and so called journalists, is dangerous to your wealth. Look for the advisor who has a fiduciary duty to watch out for your best interests. Someone who isn’t afraid to take a stand. Look for the contrarian and listen with an open mind. Get a second, unbiased, opinion. What do the experts say? Read more

Mama Said There’d Be Days Like This

Ups, downs, twists and turns. There are always days like this.

As much as we’d like the road of life to be smooth, the path we travel is often filled with potholes, detours,  and unexpected hairpin turns.

“Wear clean underwear,” she’d say. “Just in case.”

Yep … Mama said there would be days like this.

Prepare – Don’t Predict

You can’t predict the future. Change is always on the horizon, just a moment away. Prepare. For the unexpected. The unthinkable. The inevitable. How? Read more

Truth or Consequences – What Now?

In the land of the blind, the one-eyed (wo)man is king. Irish Proverb

The 2008 turmoil in our financial markets has been a true “black swan” event. Improbable. Not expected. Life changing.

Anyone not living in a bubble could see a day of reckoning fast approaching, but we were all caught off guard by the swift fierceness of the meltdown.

Life as we know it cannot continue. This is not just about overspending by the government, the banks, or the Wall Street investment banks. This is about greed, short term thinking, bad judgment, and the pervasive self-interest of “what’s in it for me.” Change has to come at a fundamental level. It is Read more

An Economic Pearl Harbor says Warren Buffett

“It’s not the return on my money I’m worried about. It’s the return of my money.” Yogi Berra

Who would ever imagine voluntarily investing in an investment that pays only 1/20th of 1%?

Yet that is what happened when $40 billion moved into 7 day Treasury Bills. Almost as bad as putting your cash under the mattress, isn’t it?  Fear is running rampant and despite it’s low return, there is a trust factor built into treasuries that at least you will get your money back.

Warren Buffett says he has never seen anything like the current fear and tsunami of financial crisis in his lifetime. When asked if we could be facing another Depression, he said, yes, it is possible. The root cause? Derivatives and false accounting.  (Sounds like greed and self-interest to me.)  However, Mr. Buffett also has strong confidence in the ability of America to be better off ten years from now than we are today.  He is a realist, not a doomsayer.  He believes in the “bailout plan”, but also realizes this is not an immediate answer.

He refers to the Reconstruction Finance Corporation which was used during the Great Depression.  Here is his interview with PBS journalist, Charlie Rose, about the bailout plan and our country’s future.

It’s time for fundamental change and accountability. It’s time for ethical, strong leadership. It starts with us.

Do You Have an IRA at Vanguard? Beware!

Were you one of the 170,000 Vanguard investors who received a letter in July of 2007 explaining that its

“Change in beneficiary policy will help you simplify your planning?”

If you received the letter, did you understand the consequences? If you are like most people, you didn’t.

Ignore Vanguard’s Letter at Your Peril

When Forbes showed Vanguard’s letter to IRA experts, they were outraged. What did the experts have to say? Read more

Comparison of Traditional IRAs and Roth IRAs

Another Women and Money conference question that is often asked is “What is the difference between a Traditional and ROTH IRA?” Lots.

A few of the more important considerations to keep in mind when choosing the right vehicle for your IRA contributions include:

• Tax Treatment (both at time of contribution and distribution)
• Income Limitations
• Age Limitations
• Required Minimum Distributions
• Early Withdrawal Penalties
• Contributions after 70 1/2
• Beneficiary Tax Consequences

IRA Comparison Chart

This handy comparison chart should help you answer questions you didn’t think to ask and help end some of the confusion.  Read more

Next Page »