Financial Tools

Common financial tools for saving, investing and building wealth:

Tools for saving

  • Savings AccountHow it works: Offered through a bank, a savings account is a safe place to keep your money and may pay a small amount of interest. It’s a good place to put money that you could need to access quickly.What it’s for: Growing short- to mid-term savings, building an emergency fund
  • High-Yield Savings AccountHow it works: Typically offered through an online bank, these savings accounts work exactly like the one above except that they pay a higher rate of interest on your money. The only drawback is that these banks may not have a physical location that you can easily get to.What it’s for: Growing short- to mid-term savings, building an emergency fund
  • Money Market Bank AccountHow it works: These work like a checking account but often also pay a small amount of interest. This is a good place to put money that you can’t afford to lose and may need to access quickly.What it’s for: Everyday expenses, growing short- to mid-term savings, building an emergency fund
  • Certificate of Deposit (CD)How it works: A bank or credit union pays a pre-determined amount of interest over a set time span, such as six months or a year. There is usually a penalty for early withdrawal. CDsare a safe place to keep money that you can’t lose but that you won’t need immediately.What it’s for: Growing short- to mid-term savings

Tools for long-term investing

  • 401(k)How it works: This is a type of tax-advantaged retirement account that’s offered through employers. You can use a 401(k) to invest in a range of financial products like stocks, bonds or funds. Money goes in without being taxed and grows tax-deferred, but you will owe taxes when you withdraw funds in retirement. A 403(b) or 457 account operates in a similar way. While there are some options to access funds in these accounts, in general, if you take money out prior to age 59½, you will owe a penalty on top of taxes.What it’s for: Saving for retirement
  • Roth 401(k)How it works: A Roth 401(k) is the same as a 401(k) except that the taxes work a little differently. With a Roth 401(k), contributions are taxed. But then the money is usually never taxed again.What it’s for: Saving for retirement
  • Individual Retirement Account (IRA)How it works: An IRA works in a similar manner to a 401(k) in that contributions are tax deductible and funds grow without being taxed, but you will owe tax when you withdraw funds in retirement. Unlike a 401(k), which is offered through an employer, anyone can open an IRA. As with a 401(k), there may be a penalty if you withdraw funds prior to age 59½.What it’s for: Saving for retirement
  • Roth IRAHow it works: A Roth IRA is the same as an IRA except that the money you contribute is taxed. It’s then usually never taxed again. With a Roth IRA, you’ll be able to access contributions should you need them prior to age 59½. (You would owe taxes and a penalty if you withdraw earnings.)What it’s for: Saving for retirement
  • 529 PlanHow it works: A 529 plan is a tax-advantaged way to save for education expenses. You may get a tax break when you contribute money, and you’ll usually never owe tax on money taken out of a 529 plan as long as it’s used for qualified education expenses.What it’s for: Saving for education
  • StockHow it works: Investing in stock is common. Stock is a partial ownership stake in a company. When you own stock, you may share in the company’s profits, and the price of the stock may go up if the value of the company increases over time. Conversely, if the value of the company falls, your stock may lose value. The values of stocks that trade on the open market tend to fluctuate frequently.What it’s for: Long-term goals
  • BondHow it works: A bond is a loan that you make to a government or company. In exchange for the loan, you get interest payments (known as coupons) for a set period. When that time is over, you receive the amount invested back in full. Bonds can be a less risky way to grow money over the long term. However, they may not grow as much as stocks. Bonds are also not without risk entirely. It’s possible that a company or government could default, failing to make payments.What it’s for: Mid- to long-term goals
  • Mutual FundHow it works: When you buy into a mutual fund, your money is allocated to a basket of investments. Mutual funds can be set up in different ways with different investment objectives. Some may attempt to follow market indexes, while others may invest for growth. You can put money into mutual funds that invest in international or domestic companies. Mutual funds allow you to diversify your investments with a single purchase.What it’s for: Mid- to long-term goals, saving for retirement, saving for college
  • Index FundHow it works: An index fund is also a basket of investments; however, these are designed to mirror a specific index, such as the S&P 500. What it’s for: Long-term goals, saving for retirement, saving for college
  • Exchange-traded Fund (ETF)How it works: An ETF is like a mutual fund or an index fund but with one key difference. With a mutual or index fund, you can only buy and sell once per day at the fund’s closing price for the day. With an ETF, the price moves during the day, and you can buy and sell throughout the day like you can with stocks or bonds.What it’s for: Long-term goals, saving for retirement, saving for college
  • AnnuityHow it works: An income annuity allows you to create steady, guaranteed income in retirement.1  While some people use a portion of their savings to purchase an income annuity when they retire, others purchase annuities many years before they retire.What it’s for: Retirement

The list above is certainly not exhaustive. As you can see, though, different types of accounts work better for different goals. And they can complement each other. For instance, when you get to retirement, it can be beneficial to have a mix of Roth and traditional accounts. This can allow you to strategically withdraw money in a way that minimizes taxes.

Source:  https://www.northwesternmutual.com/life-and-money/4-steps-to-building-a-solid-financial-foundation/

Financial Plan

The first step to creating a financial plan is to sit down and think about what you really want—your financial goals—both now and in the future.

The best financial plans include:

An emergency fund. Life happens! An emergency fund means you won’t have to worry about how to pay for that leaky roof, new transmission or any other problems that will inevitably creep up when you least expect it.

A plan to manage debt. Debt is a reality for many folks. But if it’s not managed carefully, it can be a drag on your ability to meet your financial goals over time.

Ways to protect your finances. While an emergency fund helps cover short-term expenses when something goes wrong, insurance protects you and your family financially against big risks, like losing the ability to work or the death of a loved one.

A plan to grow your money. Investments like stocks and bonds can help grow your money over time for long-term goals like buying a home, paying for college or saving for retirement. A financial plan will make use of tax-advantaged accounts whenever possible to stretch your dollars even further.

An estate plan. Whether you’re young and starting out or already in retirement, an estate plan is an important part of making sure your wishes are carried out after you’re gone.

A retirement plan. When you get to retirement, a retirement plan will help you tap all the options in your financial plan to reliably generate the income you’ll need to support your lifestyle. These options could include your investments, life insurance and annuities, which pay guaranteed income.

While some plans may focus more on one area than another based on your situation, all these components work together. For instance, having an emergency fund helps you avoid taking on more debt or withdrawing from your investments if you lose your job.

Source:  https://www.northwesternmutual.com/life-and-money/what-is-a-financial-plan/?

President Biden’s Final Days

Presidents always have gatekeepers. In Biden’s case, the walls around him were higher and the controls greater as aides managed the limitations of the oldest president in American history.

Top advisers frequently acted as go-betweens, and public interactions became more scripted.

The administration denied Biden has declined and said advisers were working under his direction.

Interactions with senior Democratic lawmakers and some cabinet members—including Defense’s Lloyd Austin and Treasury’s Janet Yellen—were infrequent or grew less frequent. Some legislative leaders had a hard time getting the president’s ear at key moments.

“The Biden White House was more insulated than most. I spoke with Barack Obama on a number of occasions when he was president and I wasn’t even chairman of the committee,” said Rep. Adam Smith of Washington, who sought to talk to Biden ahead of the U.S. withdrawal from Afghanistan but couldn’t get him on the phone.

To adapt the White House around the needs of a diminished leader, aides told visitors to keep meetings focused. Staff often repeated instructions to him, such as where to enter or exit a stage.

“They body him to such a high degree,” a person who witnessed it said, adding that the “hand holding” is unlike anything other recent presidents have had.

Press aides who compiled packages of news clips for Biden were told by senior staff to exclude negative stories about the president. The president wasn’t talking to his own pollsters as surveys showed him trailing in the 2024 race.

If the president was having an off day, meetings could be scrapped altogether. On one such occasion, in the spring of 2021, a national security official explained to another aide why a meeting needed to be rescheduled.

“He has good days and bad days, and today was a bad day so we’re going to address this tomorrow,” the former aide recalled the official saying.

Read more: https://trib.al/4GeEtNV

How Fusion Energy Works

Fusion energy is produced by fusing two light atomic nuclei, typically isotopes of hydrogen like deuterium and tritium, to form a heavier nucleus. This process releases a tremendous amount of energy, similar to the reactions that power the sun and other stars. The key steps involved are:

  1. Heating the Fuel: The hydrogen isotopes are heated to extremely high temperatures (millions of degrees Celsius) to form a plasma, a hot, charged state of matter.
  2. Confining the Plasma: The plasma must be confined long enough for the nuclei to collide and fuse. This is typically done using powerful magnetic fields in devices like tokamaks or stellarators.
  3. Energy Release: When the nuclei fuse, they release energy in the form of heat, which can be used to generate electricity.

Potential Benefits of Fusion Energy

  1. Abundant Fuel Supply: The primary fuels for fusion, deuterium and tritium, are abundant and can be extracted from water and lithium.
  2. Clean Energy: Fusion produces no greenhouse gases or long-lived radioactive waste, making it a much cleaner alternative to fossil fuels and traditional nuclear power.
  3. Safety: Fusion reactions are inherently safe. Unlike fission reactors, fusion does not involve chain reactions, so there is no risk of a runaway reaction or meltdown.
  4. High Energy Output: Fusion has the potential to produce significantly more energy than current energy sources, making it a powerful solution for meeting future energy demands.

Cultivate the Habit of Gratitude

Gratitude is more than saying “thank you” when someone gives you something, states Rabbi Harold Kushner, author of THE LORD IS MY SHEPHERD.

Gratitude, in Kushner’s view, is a mindset and a way of looking at the world so that you recognize the things in your life as gifts you might just as easily not have been given. It encourages you to see the “givens” in your life – your looks, your talents, your family – as gifts, and even if you might have wished for a fancier or more expensive gift, it is selfish not to express appreciation for the gifts you have, states Kushner in an interview.

“When the psalmist, a man who has known the “valley of the shadow,” writes “my cup runneth over,” he is saying that he has learned to be grateful for what he has rather than lamenting what he may have lost or missed out on,” says Rabbi Kushner.

Gratitude: Spreading Your Wings

“I have come to accept the feeling of not knowing where I am going. And I have trained myself to love it. Because it is only when we are suspended in mid-air with no landing in sight, that we force our wings to unravel and alas begin our flight.
And as we fly, we still may not know where we are going to. But the miracle is in the unfolding of the wings. You may not know where you’re going, but you know that so long as you spread your wings, the winds will carry you.”~ Dr Maya Angelou

In that space of not having all the answers, you will discover something extraordinary: the freedom to let go and trust the process.

It is only when you are suspended in mid-air, without a clear destination, that you can summon the courage to spread your wings.

In that unfolding, you begin to soar—not because you know where you’ll land, but because you’ve found the strength to rise.

The beauty lies in the flight itself, in trusting that the winds, coupled with God’s goodness, grace and mercy, will guide you to where you need to be.

It is in that surrender to the unknown and living in faith that you truly begin to live, carried by faith in the journey rather than the certainty of the outcome.

What You Focus on Expands

“What you focus on grows, what you think about expands, and what you dwell upon determines your destiny.” – Robin Sharma

“What you focus on expands” suggests that the things you give your attention to—whether positive or negative—tend to grow in significance and impact in your life.

Your brain is wired to filter out distractions, allowing you to focus on what you deem important. This means that when you concentrate on specific thoughts, feelings, or experiences, you enhance their presence in your life.

Additionally, by focusing on certain aspects of your lives, you become more aware of them. This heightened awareness can lead to increased opportunities and experiences related to those focal points.

When you concentrate on positive aspects—such as gratitude, goals, or strengths—you often find more reasons to feel good and motivated. This can lead to improved mental health and greater success.

Conversely, if you dwell on negative thoughts or challenges, those feelings can amplify, leading to stress, anxiety, or a sense of helplessness.

“What you focus on expands” is not just a motivational saying; it’s a principle rooted in psychological research that highlights the importance of intentional focus in shaping your experiences and outcomes.

By consciously directing your attention towards positivity, growth, and gratitude, you create a more fulfilling and enriched life.

Each day, you should note things you appreciate in a gratitude journal; this shifts your focus to positivity and increases feelings of gratitude in your life.

Source:  https://ninaamir.com/prove-what-focus-on-expands/

 

 

Aerobic and Strength Training Benefits

Doing both aerobic and strength training exercises reduce risk of dying 41% to 47% compared with people who did no exercise. ~ Harvard Health

Doing both aerobic exercise and strength training exercise are extremely beneficial for individuals above the age of sixty, according to a study published in the November 2022 issue of the British Journal of Sports Medicine.

Researchers found that weight lifting alone was linked to a 9% to 22% lower risk of dying.

Moderate to vigorous aerobic exercise appeared to lower risk by 24% to 34%.

But the greatest longevity gains were among people who did both types of exercise; their risk of dying during the follow-up period was 41% to 47% lower compared with people who did no exercise.

Studies attest that strength training, as well as aerobic exercise, can help you manage and sometimes prevent conditions as varied as heart disease, diabetes, arthritis, and osteoporosis.

One of the best ways to stay fit and healthy as you age is by doing strength and power training exercises. You may know that starting in our thirties, we all begin to lose muscle mass. This loss actually contributes to achy joints, increased risk of injury, and the “middle-age spread” we all dread. What’s more, the older we get, the faster muscle mass disappears. That means that eventually, simple tasks like getting out of a chair and climbing stairs can become more difficult.

Strength training can help you build muscle, make you strong, increase your endurance and make everyday activities easier. By combining strength and power training exercises you’ll not only get stronger, you’ll build speed and improve your reaction time. That’s critical as you age, because it can help prevent falls.

Source:  Julie Corliss, Executive Editor, Harvard Heart Letter, Adding weight lifting to workouts may boost longevity, Harvard Health Publishing, January 1, 2023.

and,

Strength and Power Training for All Ages, Harvard Health Publishing

Focus is the Key to Success

“Success demands singleness of purpose.” – Vince Lombardi

“Starve your distractions, feed your focus.” – Focus Quote

Recently, there was a story circulating on social media in which Bill Gates and Warren Buffett were asked the question, “what would you say is the most important skill for success?”

Both men answered “focus”. Focus, in their opinion, is the most important requirement for success and great achievement.

With focus, you can do anything. And without focus, you can do nothing.  Focus is the key to success.

“Whenever you want to achieve something, keep your eyes open, concentrate and make sure you know exactly what it is you want. No one can hit their target with their eyes closed.” – Paulo Coelho

Thus, it’s important to focus on the one or two things in your professional career or personal life that you can do right now that will have the greatest positive impact or return on you investment of time, talent and treasure.

Because, everything else you do has a lesser impact and return, or no impact or return, on your life.  Focus is the key to success.

“Focus on the journey, not the destination. Joy is found not in finishing an activity but in doing it.” – Jack Canfield

Most people live distracted by technology, specifically their cell phones and social media.  They are addicted to distraction, the tiny screens in their hands, in which they’re hooked to social media.

To achieve great success and sustainable high performance, you must break free of addiction to distraction. Instead, you must focus on the most important and impactful things and activities in your life to achieve great success.

The ability to control your focus and attention is the most important key to success. Thus, you should focus on the one to three key things or variables that are most critical to the success of your business, relationships and life.

Learning and becoming skilled at meditation is very helpful practice to strengthen your focus muscle. Focus is simply choosing the right thought among the hundreds of competing and distracting thoughts.

“Don’t dwell on what went wrong. Instead, focus on what to do next. Spend your energies on moving forward toward finding the answer.” – Denis Waitley

 

Personal Mission Statements

Personal mission statements reflect the values, passions, goals and the impact individuals aim to have on the world.

Below are several personal mission statements:

  • Oprah Winfrey: “To be a teacher. And to be known for inspiring my students to be more than they thought they could be”.
  • Maya Angelou: “My mission in life is not merely to survive, but to thrive; and to do so with some passion, some compassion, some humor, and some style”.
  • Elon Musk: “If something is important enough you should try, even if the probable outcome is failure”.
  • Richard Branson: “To have fun in [my] journey through life and learn from [my] mistakes”2.
  • Serena Williams: “To be the best version of myself on and off the court, inspiring others to pursue their goals with passion and perseverance”.
  • Jane Goodall: “To foster a greater understanding and compassion for the natural world and inspire action to protect all living beings”.

Crafting a personal mission statement can provide you with clarity and direction in your life. Here are some steps to help you create one:

  • Reflect on Your Values: Think about what is most important to you. What principles guide your decisions and actions?
  • Identify Your Passions: Consider what activities or causes you are passionate about. What brings you joy and fulfillment?
  • Define Your Goals: Outline your long-term goals. What do you want to achieve in your personal and professional life?
  • Consider Your Strengths: Recognize your unique strengths and talents. How can you use them to make a positive impact?
  • Think About Your Legacy: Reflect on how you want to be remembered. What kind of legacy do you want to leave behind?
  • Draft Your Statement: Combine these elements into a concise statement that captures your purpose and aspirations.

Here’s a template to get you started:

“My mission is to [action/verb] [what you want to achieve] by [how you will achieve it], so that [the impact you want to have].”
For example:

“My mission is to inspire and empower others by sharing knowledge and fostering a supportive community, so that everyone can achieve their full potential.”

Here are five inspiring personal mission statements that you can adapt to your own goals and values:

  • To live a life of significance by making a positive impact on others and striving for continuous growth.” This statement emphasizes the importance of contributing to the world while also focusing on personal development.
  • To embrace challenges, learn from failures, and persevere in the pursuit of my dreams.” This statement highlights the importance of resilience and a growth mindset.
  • To inspire and empower others to reach their full potential through acts of kindness, compassion, and understanding.” This statement focuses on helping others and making a difference in the world.
  • To live a balanced life of purpose, passion, and joy, cherishing relationships and making the most of every moment.” This statement emphasizes the importance of work-life balance and personal fulfillment.
  • To be a lifelong learner, always seeking knowledge and wisdom, and using my skills to create a better future for myself and others.” This statement highlights the importance of continuous learning and using one’s talents to make a positive impact.

The best personal mission statements are the ones that resonates with you personally and inspires you to take action. It should be concise, clear, and meaningful.