A Tale of Two Kingdoms

My friend Bill at Wealth Well Done writes some true-ish stories as a creative way to communicate financial wisdom. So, in honor of Bill and of the parables of Jesus (many of which had to do, at least on the surface, with money), I've created a parable of my own:

A Tale of Two Kingdoms

https://pixabay.com/en/stirling-castle-scotland-stirling-202103/

There once was a kingdom with a very powerful army. One day, the king realized that he could make money while also providing protection for the nations he had conquered: he would allow the conquered nations to maintain their existing social orders, including their own forms of government. In return, each nation could choose one of a few different levels of protection—the amount of the conquered nation’s annual tribute depended on the level of protection they selected.

Links for your financial health, January 2017

Links for your financial health

Confused about the difference between Roth IRAs and regular IRAs or 401(k)s? Mr. Tako explains clearly and succinctly at http://www.mrtakoescapes.com/give-yourself-the-gift-of-wealth/:

"IRA / 401(s) — Don’t pay taxes now, pay later!

Roth IRA — Pay taxes now, but don’t pay taxes later!"

The above link at mrtakoescapes.com provides a great resource on wealth-building--a recommended read! Some other interesting and important thoughts for your financial health:

• Want a free guide on how to invest? Paul Merriman provides actually free downloads of some of his work--you don't even have to give him your e-mail or anything!  http://paulmerriman.com/how-to-invest-series-complimentary-download/
   
• This is also great advice! Don't follow the hype, even if it is coming from "trusted" sources. Just stay the course, and let your money do the work for you! http://collegeinvestr.com/5-things-every-new-investor-should-know/ Similarly, this is how "buy low, sell high" works:  http://tenbucksaweek.com/im-terrible-investor
   
• Do experiences really make you happier than tangible possessions? https://www.keepthrifty.com/2016/07/14/experience-or-stuff.html Chris at KeepThrifty provides a balanced view on the topic, and I think his reflections are quite valuable to consider! Also see TJ Pridonoff's piece on the same topic.
   
• Does working in a well-respected position in a corporation mean you're successful? http://www.livingafreelifetoday.com/blog/side-corporate-job/ Not if you're not happy, as Living Free notes!
   
• An outstanding allegory for the #1 skill you'll need to succeed:  http://www.wealthwelldone.com/change-your-life/  A well-done piece; be sure to read this one!
   
• A fair point: http://www.someecards.com/confession-cards/money-solves-all-problems-funny-ecard Don't just wish for it: make it happen!
   
• Might the disenfranchisement of most Americans be an impetus for the growing FIRE movement? http://www.huffingtonpost.com/robert-reich/why-so-many-americans-fee_b_7150874.html
       -Oh, and on the topic of disenfranchisement, this well-done long-form piece provides a well-argued economic explanation of how free trade led to the rise of Donald Trump's presidential candidacy: http://qz.com/840973/everything-we-thought-we-knew-about-free-trade-is-wrong/
   
• At risk of sounding like a broken record, the lack of financial literacy education is a HUMONGOUS problem in society today: http://collegeinvestr.com/what-high-school-didnt-teach-you/
• You know how all those personal finance bloggers tell you to plug your ears and ignore the news reports? This research illustrates EXACTLY why we preach "set and forget" index fund investing: http://www.marketwatch.com/story/how-retirement-investors-hurt-themselves-2014-05-07
      -Vanguard lays out a compelling case for investing in index funds:
        https://personal.vanguard.com/pdf/s296.pdf
   
• I want to nitpick this piece: http://collegeinvestr.com/beginner-finance-where-to-begin/  Smart parents (and kids) won't wait until age 18 to get their first checking OR savings accounts!
   
• The cost of divorce can be higher than the cost of life during marriage! An excellent, excellent post by iVigilante for Physician on Fire: http://www.physicianonfire.com/top-5-ways-derail-financial-independence-early-retirement/
       -Also see http://www.realworlddivorce.com/Introduction, brought to my attention by commenter "John" at this page. A thoroughly alarming eye-opener, for sure!
   
• This. So much this -> http://www.millennial-revolution.com/freedom/how-i-built-a-seven-figure-portfolio-and-retired-at-31/ No, seriously. this is exactly on point! People over ~age 50 are giving us advice based on what worked for them. But times have changed, and the old models don't necessarily work anymore--a topic that I've been thinking/writing about for a while (with intent to eventually turn into an e-book). The TL;DR: Listen to your parents at your own risk...
   
• Crazy? Or crazy like a fox? http://penniesanddollars.com/smart-people-save-money/ [I happen to think I'm crazy like a fox... :)]
   
• Good advice from a financial professional and author! A bit on the dry side, but packed full of highly useful information: https://www.youtube.com/watch?v=Bin_9svYcjI
• Just made this meme today [1/23/17], and here's an excuse to use it :)
   
• A little meme fun about college financial aid: https://s-media-cache-ak0.pinimg.com/564x/66/7e/a4/667ea42fdc15cdcc1dcde750f8a35f8e.jpg
   
• It is important to have control over your money, but even more important to have control over YOURSELF: http://www.budgetsaresexy.com/2016/12/financial-confessions-i-became-so-obsessed-with-being-rich-that-im-now-sitting-in-prison/ Money is important, but it isn't everything!
   
• When is 'enough' enough? http://www.makingyourmoneymatter.com/2017-year-theme-enough/
   
• Planning to catch on FIRE? [FIRE stands for "financial independence, retire early"] Here's a good guide to help you begin the journey: http://www.poweroverlife.com/retirement-basics-permanent-vacation/ Also see http://www.poweroverlife.com/investing-ultimate-collection/ Long articles, but plenty of useful stuff!
   
• Are your friends' social media accounts turning into personalized commercials? Seeing your friends' luxuries can tempt you to spend more; don't take the bait! http://thefinancialdiet.com/how-unfollowing-my-friends-on-social-media-helped-my-finances/
   
• Point #6 (embrace inconvenience) is right on the money! The whole piece is worth a read: http://www.mysterymoneyman.com/30-kick-ways-improve-your-finances-2017/
   
• "Fees of 1% on my investments aren't that bad, right?" WRONG. https://www.nerdwallet.com/blog/investing/millennial-retirement-fees-one-percent-half-million-savings-impact/