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Louis R. Hancock

Financial literacy

RI’s Mandatory Financial Literacy Courses Face a Tough Deadline

This story is published in partnership with The 74, a non-profit, non-partisan news site covering education in America.

Seven years after students at a small suburban Rhode Island high school successfully advocated for statewide financial literacy standards, lawmakers made mastery of personal finance a requirement for high school graduation from the class of 2024.

Enacted by Governor Dan McKee on June 1, the requirement carries a December 31 deadline to develop and approve state-specific consumer education and personal finance standards. By the start of the 2022-2023 school year, all public high schools in Rhode Island must offer a course that meets these standards.

“It is very aggressive to put these standards in place within the time frame that we have set, but we know that it is really necessary,” said state education commissioner Angélica Infante-Green. One reason: On average, Rhode Island graduates have the second highest student loan debt of any state, at $ 36,193.

After meeting with students from across the state who thought they weren’t ready to go to college, and given the impact of the pandemic on student engagement, the commissioner said this Now was the time to consolidate what they had been building for years.

“[Students] felt like it was something they were wronged [on]. We have therefore endeavored to move this agenda forward. ”

Rhode Island approved the National Council on Economic Education standards in 2014. On average, only about 5% of students in Rhode Island receive financial literacy training, according to the state Department of Education; until now, schools could choose whether or not to adopt the program.

Last year, East Greenwich High School senior Saloni Jain took a personal finance course in a blended learning setup, with three days of e-learning. She said lesson simulations, such as making false tax returns on TurboTax and creating a budget spreadsheet, kept her engaged during virtual learning.

“We were getting paychecks – how do we put that money into a 401 (k) and pay all of our bills and pay off our credit card or student loan debt?” It’s been very helpful in visualizing, you know, how we might live in the future, ”Jain said. “It was just a semester course, but honestly it changed my thinking a lot.”

Financial Literacy: An Antidote to Poverty?

Nationally, 21 other states have a version of the Financial Literacy Standards, which can be incorporated into math or civics classes; only seven require a full-semester stand-alone course to be taken before graduation.

In 2021, more than 25 states introduced bills to strengthen personal finance education. Advocates argue that literacy is the key to breaking cycles of poverty, especially as the younger generation grapple with the economic fallout from the pandemic. When loans, budgeting, and debt management are explicitly explored during the school day, young people are exposed to life-changing information as they move into adulthood.

A 2018 study by researchers at Montana State University found that financial literacy degree requirements translate into lower credit card balances, less high-interest student loan debt for students at low income and a decrease in the use of private loans for high income students. Working-class and lower-class students who took financial literacy classes were also able to work less while in college, which could encourage persistence and graduation. Expanding access to personal finance courses can help reduce racial wealth gaps and support homeownership down the line.

Even in states considered to have the highest standards and requirements, students are looking for more real-world connections to prepare for the future. Whitman Ochiai, who recently graduated from high school in Alexandria, Virginia, described his compulsory course as “broader than deep.”

Left to ponder retirement decisions, building a balanced budget, and the intuition behind big purchases, he launched the MoneyEd podcast in 2019 to explore these topics. He said there had been increased interest throughout the pandemic, likely with more students working and families facing economic uncertainty.

“Often the only people who have access to this information are the ones who would have had access to it anyway,” Ochiai said. “Especially for first-generation college students, and parents who may not be homeowners, this is a way for them to gain a deeper understanding of finance.”

In RI, a scattershot approach so far

Some teachers in Rhode Island have created elective courses in their schools in recent years, taking into account student desires and seeing how financial literacy can make connections to hard-to-grasp concepts like compound interest. But until now, funding and implementation has been left to the priority of teachers or schools.

Samantha Demairias teaches math, financial literacy, and computer science at Central Falls High School. She hopes the legislation will open the door to state financial support for accreditation and hiring, thus strengthening the ability to teach the subject.

Otherwise, she said, “there’s going to be a disproportion between the districts that are able to move around their budgets or their staff and make it work and the districts that are weighted by all these other things.” .

Demairias teaches about three sections of finance per year; enrollment is still higher even with its elective status, at around 25 to 30 students per class. This fall, she will also teach a section for English language learners to introduce students to the American money and credit systems.

“If you like to learn something today, spread this news and talk it over with your friends. There is no reason why talking about money is such a taboo subject, ”she explains to her students.

Advocates say personal finance education offers students the opportunity to break the stigma attached to conversations about money before embarking on big financial decisions such as student loans, car ownership and financial decisions. credit card debts. The lessons learned can also find their way home and support families facing economic challenges.

Pat Page

“I see the state’s implementation of this financial literacy guarantee as a kind of gateway to meaningful engagement with families,” said Pat Page, business educator and vice president of the Personal Finance Coalition. JumpStart from Rhode Island.

Page, a former teacher of the year in Rhode Island, has been a strong advocate for broader financial education for years and was one of the first in the state to teach a stand-alone course. She has helped students, including Sunny Sait, testify before the state legislature about the need for broader financial education – in 2014, 2019 and again this year.

See money as something to invest

Although Sait took Page’s course two years ago, he said he still uses the concepts on a daily basis. Now in a gap year after graduating last spring, he opened a Roth IRA and is budgeting his internship salary to make sure he can still afford the things he loves, like karate.

“My mindset has definitely changed a bit from thinking about money in terms of things, but more about thinking about money as a means of growth, saving and investing. My goal is really to move on. from buying, like being a consumer, to becoming an investor. ”

Treasurer Seth Magaziner, who started his career as an elementary school teacher and is currently running for governor, helped introduce financial education legislation.

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“The most ardent advocates, who worked very hard to get this bill passed, were the teachers and students – students who really wanted it taught, and teachers who are willing to teach it,” said Shop.

Both the treasurer and the education commissioner see signing the law as the first phase in creating a larger financial literacy landscape in the state, and their hope is to extend lessons to classes. medium and elementary. Education, says Magaziner, will make a special difference in Rhode Island.

“We have a large and continuing immigrant population, students who are learning English. We have one of the highest poverty rates in the Northeast. Financial education is not a panacea, it is not a panacea, but it is an important part of the puzzle of how we solve these inequalities and correct them.


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Financial resources

BCT: the Management Board concerned about the acute drying up of external financial resources

The Management Board of the Central Bank of Tunisia (BCT) expressed Wednesday during its periodic meeting its concern about the acute drying up of external financial resources, facing the significant closure needs of the State Budget for the year 2021, reflecting the fears of international donors in view of the deterioration of Tunisia’s sovereign rating and the absence of a new program with the IMF.

This will require an intensification of bilateral financial cooperation by the end of the year in order to mobilize a maximum of external resources and to avoid monetary financing during this period as this implies spillover effects on both the level of inflation and on foreign exchange reserves and management. the upward trend in the dinar exchange rate of commodity prices on international markets following its negative impact on Tunisia’s relations with international donors and sovereign rating agencies.

On the other hand, the Council underlined that the deterioration of public finances, suffering from a situation of vulnerability, as well as the rise in international oil prices, are likely to slow down the sustainability of the public debt, in addition to the negative effects. the increase in public debt the sector’s indebtedness to the banking system on its ability to finance economic operators.

She added that the persistence of this situation will have strong negative repercussions on the external balances and on the foreign exchange market.

After discussions and deliberations on the aforementioned issues, the Council reiterated its deep concern over the current critical financial situation, stressing the need to send clear signals to local and foreign investors regarding the resumption of economic activity and global and financial balances, consolidation of public sector governance, improvement of the business climate and intensification of investment efforts.

In this regard, the Council affirmed that the Central Bank will continue to play fully its role of supporting the economy and closely monitor the development of economic, monetary and financial indicators.
It has decided to keep the key rate of the Central Bank of Tunisia unchanged.

Relative recovery of certain sectors

The Council reviewed recent economic, monetary and financial developments, including data on economic activity. Indeed, the GDP posted in the second quarter of 2021 an increase of 16.2% compared to the same period of last year and a decrease of 2% compared to the previous quarter, mainly due to the effect base induced by the contraction of the economy. activity during the same period of the previous year.

“These results also underline the relative recovery of certain sectors, in particular exporting manufacturing industries, in relation to the continued improvement in demand from the euro area, in addition to the significant recovery in fuel production thanks to the contribution of “Nawara” and “Halk El Menzel” and the gradual re-establishment of the phosphate industry. On the other hand, certain sectors continue to be affected by the health crisis of COVID-19, in particular that of services. “

As for the evolution of prices, the Council noted a stabilization of the inflation rate in September 2021 at around 6.2%, year-on-year, for the second consecutive month, against 5.4% in the same month. of the previous year.

The main core inflation indicators also increased slightly to reach + 6% against + 5.9% the previous month for “inflation excluding food and energy” and + 5.4% against + 5.3% for “Inflation excluding controlled products and costs”.

Regarding recent trends in the external sector, the Council underlined the decrease in the current account deficit during the first eight months of 2021, to 3.5% of GDP against 4.8% a year earlier.

This result is mainly explained by the continued consolidation of labor income (+ 42.8%) with a relative improvement in tourism receipts (+ 5.2%), while the trade deficit (FOB-CIF) s’ is dug by 13.7% in line with the evolution of imports. .

As for the net external capital flows, they recorded a sharp drop due to the drop in the volume of external resources mobilized, in addition to the increase in expenditure on the repayment of the principal of the debt. In view of these developments, net foreign currency assets fell to 20,962 MTD, i.e. 127 days of importation at the end of September 2021 against 23,099 MTD and 162 days of importation at the end of 2020.


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Financial literacy

EPCHS awarded for financial literacy education

EVERGREEN PARK, IL – Evergreen Park Community High School has been recognized as an NGPF Gold Standard school for implementing a personal finance degree requirement.

Next Gen Personal Finance, a nonprofit organization that has developed a free personal finance program for grades 6 to 12 students, listed 1,591 high schools across the country, and 66 in Illinois, which require at least one semester of a personal finance course to graduate. According to an NGPF press release, less than 18.3% of all U.S. high school students receive a high school financial literacy class.

Alabama, Missouri, Tennessee, Utah, and Virginia are the only five states that require this of all their high school students. Other than that, it is a requirement in only a fraction of the schools in any given state.

According to EPCHS Conditions for obtaining the 2022 class, students are required to complete at least one semester of a course titled “Financial Literacy in the 21st Century,” which may meet a consumer education requirement.

“Gold Standard Schools are showing remarkable leadership, surpassing the state’s progress in financial education instead of waiting for a term. The teachers, parents, students, administrators and community leaders of these schools are showing what can happen when a coalition commits to building the capacity of the next generation, ”said Tim Ranzetta, co-founder of NGPF.
Click on here to see the full list of NGPF Gold Standard schools.


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Financial literacy

Stock-Trak Partners with W! Se to Offer Financial Literacy Certifications to Students

The partnership allows students using PersonalFinanceLab.com’s virtual financial literacy platform to take the W! Se Financial Literacy Certification Test

Now, StockTrak’s PersonalFinanceLab.com website brings all the tools personal finance and business educators need in their classrooms.

MONTREAL, QUEBEC, CANADA, October 6, 2021 /EINPresswire.com/ – Stock-Trak, Inc., the leading provider of personal budgeting and scholarship simulations for the education market, has partnered with W! Se (Working in Support of Education) and its certification program in Financial Literacy to provide certifications to students using its PersonalFinanceLab.com website.

The partnership allows students using PersonalFinanceLab.com’s virtual financial literacy platform to take the W! Se Financial Literacy Certification test and become Certified Financially Literate ™ by W! Se if they pass the test.

Now, StockTrak’s PersonalFinanceLab.com website brings all the tools personal finance and business educators need in their classrooms. This includes a budgeting game, a scholarship game, a customizable program and certifications to complement the offerings of PersonalFinanceLab.com.

By providing students with this opportunity, PersonalFinanceLab.com will help students take advantage of W! Se’s coveted and nationally recognized credentials. The certification demonstrates that students graduate with the knowledge and skills to lead a life of financial well-being. It will also help them with their college admissions and job search applications.

For schools, the W! Se certification is a great way to measure the financial literacy of students who have used PersonalFinanceLab.com and the results of personal finance instructors courses.

For more information on this new partnership, please click here.

About Stock-Trak and PersonalFinanceLab.com

PersonalFinanceLab.com is an online experience-based teaching and learning tool designed for college and high school personal finance, economics, business, social studies, and math courses. It is owned by Stock-Trak, Inc., the world’s leading provider of online financial simulations for universities, colleges, and the financial services industry.

This unique fusion of technology, real-world market activity and educational content is uniquely designed to bring financial literacy to life, increase student engagement and maximize retention, through applied activities, exercises, interactive calculators, videos, quizzes and more.

PersonalFinanceLab.com is completely web-based, which means teachers and students can access all features, lessons, content and portfolio simulation from anywhere with an internet connection. There is also an integrated learning resource center which includes over 300 lessons in a variety of business subjects.

Stock-Trak, Inc.
101 boul. Marcel-Laurin # 330 – Montreal, QC, Canada – H4N 2M3
For more information: https://www.personalfinancelab.com/
Media contact: [email protected]

Mark T. Brookshire
Stock-Trak, Inc.
+1 514-871-2222 ext. 365
write us here


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Financial plan

Reviewing Your Financial Plan: 20 Circumstances That May Need A Review

Today being World Financial Planning Day, now is the time to review your financial plan. A financial plan is a living, fluid document that needs to be flexible enough to change and adapt to your personal and financial circumstances. While it’s always advisable to review your financial plan at least once a year, there are other circumstances that may require a more frequent review of your plan. In this article, we explore 20 life events that may cause you to revisit your financial plan:

A change in your income: Your income is the foundation of your financial planning because your goals can only be achieved by allocating your income appropriately. If your income changes in any way, it’s always a good idea to revisit your financial plan. An increase in income may allow you to meet some of your financial goals sooner or start funneling funds to a goal you haven’t started funding yet. This may mean that you can devote a larger amount to your retirement pension or afford a more comprehensive medical assistance plan. The danger of earning more is allowing a lifestyle drift – buying more home, vehicle, or physical assets than you actually need – without first determining how your extra income can be used to fortify your future. financial.

Purchase of a fixed asset: If you’ve bought a fixed property, whether it’s funded or not, it’s always a good idea to revisit your financial plan. Keep in mind that acquiring real estate may require updating your will. Additionally, if you have taken out a mortgage, you may need to adjust your life coverage to make sure there is no shortfall in the event of death or disability. Additionally, there are additional monthly costs associated with owning a property, and it is always advisable to adjust your monthly budget to account for these costs.

Receive an inheritance: Receiving an inheritance will likely mean that you will have to make investment decisions regarding the inherited funds. This is also a good time to revisit your goals, keeping in mind that a significant inheritance can give you the financial freedom to plan a different path and pursue different lifestyle goals.

Job change: Switching from one employer to another can lead to a number of discussions about financial planning, especially when it comes to funding your group retirement and covering risks. As a first step, you may need to make investment and / or withdrawal decisions regarding your group retirement fund and the various tax implications that apply to it. Second, you’ll need to understand how well your new group life and disability coverage meets your needs and whether additional solutions need to be put in place.

Entrenchment: Getting fired will undoubtedly come with a number of key decisions that need to be made, and it’s almost always advisable to seek financial planning advice – preferably at the start of firing negotiations. You’ll need to make critical decisions about your severance pay and severance pay, while making sure you understand the tax implications of each decision. In addition, the loss of your group risk coverage may cause you to have to take out coverage on a personal basis in order to ensure adequate protection. Depending on the decisions you make regarding your termination plan, you may need to make investment decisions and update your retirement plan accordingly.

Business creation : Deciding to start a business usually means seeking start-up capital, withdrawing from investments to finance the business, replacing group risk coverage with personal insurance, tightening your budget, and preparing business cash flow projections for the future. support of its business plan. You may even need to realize an asset to help fund your business idea or take out a loan to help finance the start-up, in which case a financial planning review is a must.

Consider retirement: Retirement is an important step to take, and it is always advisable to seek financial advice several years before formal retirement. There are a number of crucial decisions to be made in the years leading up to retirement, so avoid waiting until after you retire for professional advice. In the years leading up to your retirement, you’ll want to make sure that you are adequately funded and invested appropriately for retirement, and that your post-retirement goals are realistic and achievable. If there are retirement funding anomalies or deficits, at least you give yourself time to change course and update your retirement plan.

Addition of financial dependents: Any new dependents, such as the birth or adoption of a child, or the financial support of an aging parent, may require you to reconsider your planning. The arrival of a child will require updating your will and estate plan and reviewing your life coverage to ensure your child is well provided for. You will also need to review your budget, start funding education, and incorporate the costs of raising a child into your financial plan. You may also need to change the beneficiary designations on your policies and investments.

Consider emigration: Before making the decision to migrate, it is advisable to review your plan to make sure that you fully understand the financial impact of such a decision. No matter where you intend to settle, emigration is an extremely expensive business that requires careful planning. Moving your assets abroad is a complex and time-consuming process, and it is advisable to plan your emigration with an experienced advisor.

Modification of financial objectives: The financial plan you have in place should be fully aligned with your stated goals and objectives – and any changes to your goals should require review. For example, if one of your goals were to fund a trip abroad in five years, your investments would be focused on a five-year investment horizon. If circumstances change and a trip abroad is no longer in sight, you will need to redefine your goals and adjust your investments accordingly.

Wedding: Marriage almost always requires a consideration of financial planning, as there are significant financial implications for both couples, regardless of which matrimonial regime you choose to implement. Not only do each of you want to update their wills, but chances are you will need to develop a joint household budget and update your risk coverage to protect each other in the event of a disaster. This is also a great time to embark on a common goal setting exercise and begin the process of joint financial planning.

Divorced: Likewise, a financial planning exam is almost always required in the event of a divorce, although it is best to seek advice from your financial planner before signing a settlement agreement. Depending on how your assets will be divided in the event of a divorce, a number of key decisions will need to be made, many of which have tax and CGT implications.

Diagnosis of serious illness or disability: A diagnosis of disability or critical illness is likely to impact your income and future earning potential, which, in turn, will require a fully updated financial plan. If you have severe health and / or disability coverage, your advisor should be able to walk you through the claims process and ensure that all payments received are invested appropriately. Depending on the diagnosis, you may also want to make sure that your will is updated and that you sign a living will or an advance health care directive.

Retirement: Formal retirement from your retirement funds requires critical decisions about your investments, purchasing an appropriate life annuity, choosing an appropriate withdrawal rate, possibly downscaling your primary residence and reinvesting capital, preparing a post-retirement budget and determining future cash flow throughout your retirement years, and this process is best managed with the guidance of an expert in retirement planning.

To make donations : If you plan to help your adult children financially, give financial gifts to your grandchildren, or donate to your charity, make sure these intentions are included in your financial plan so that you don’t do not have to pay tax on donations. Make sure your financial plan is updated to include your donation or money donation intentions and that it is supported by a tax-efficient schedule.

Purchase of offshore assets: If you intend to buy assets abroad, talk to your advisor about the financial implications of this transaction. Depending on the jurisdiction in which you intend to purchase your asset and the nature of the asset, you may need to have a foreign will drawn up to deal with those assets. It’s also important to understand the tax implications of buying and selling offshore assets, and how this will affect your estate planning.

Divestment: Divesting any investment will have tax implications that you should be aware of before making a transaction to avoid paying unnecessary taxes. Depending on whether you invest in stocks, bonds, real estate, or cash, it is important to understand the tax implications of doing so before you divest.

Setting up a trust: If you intend to set up a trust to house certain assets for the benefit of your children or other beneficiaries, be sure to review your financial plan, as moving assets into a trust will significantly affect your planning, especially your estate plan. It is important to be clear about your intentions to create a trust, the implications of moving assets into a trust, what it means to lose control over those assets, and how the trust should be structured to best achieve your goals.

Death of a spouse: Losing a spouse will require a complete overhaul of your financial plan. Ranked among the most traumatic events in life, the financial implications of losing a spouse cannot be understated. Every element of your financial planning, including income, expenses, budgeting, money management, risk coverage, retirement funding and estate planning, will be affected by the death of your spouse, and the sooner you revise your financial plan, the better.

Market fluctuations: Fluctuations in the market can leave long-term investors feeling jittery and nervous and can cause them to make instinctive decisions about their investments. If the investment markets are particularly volatile and you need to understand the implications for your long-term investments, allow time to meet with your advisor before making rash decisions. Short-term market fluctuations are normal, and sometimes you just need the reassurance of an experienced investment advisor to refocus on your long-term goals.


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The MPC has so far taken a cautious stance on rate decisions given the difficult economic scenario presented by the Covid-19 pandemic. But there is some comfort this time around due to easing inflation and resuming economic growth.

Five things to note as the RBI prepares for Friday's rate policy decision


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DK Enterprise See profile SME IPO 40 7.99 3000 07-10 12-10
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Paras Defense 175 01-10 475.00 498.75 185 577.25 229.86
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October 07 – 4:00 p.m.

Financial planning and asset allocation



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Financial plan

A fair and efficient agricultural financial plan for all

A 63-year-old grain farmer we’ll call Owen grows 1,000 acres of grain near the Manitoba-US border. He has three children aged 35, 34 and 29. The eldest, Jack, wants to take over the farm. His two siblings, who we’ll call Max and John, have jobs in town and don’t want to farm.

Owen’s dilemma is how to transfer the farm to Jack, earn an income of $ 50,000 a year at age 65, and provide a living income or compensation for the two children who do not want to farm. The problem is both a question of fate, that is to say to ensure the sustainability of the farm through the management of Jack, and to ensure a fair settlement for Max and John.

Owen enlisted the help of Colin Sabourin, a Certified Financial Planner from Harbourfront Wealth Management in Winnipeg, Manitoba, to prepare for the farm transfer.

We need to look at the basic finances of Owen’s farm. The farm company has current assets of $ 6.5 million, current liabilities of $ 1,013,000 and net worth of $ 5,487,000. There are also non-farm assets, including a $ 450,000 house, Owen’s Registered Retirement Savings Plan (RRSP) of $ 245,000, and his Tax-Free Savings Account (TFSA) of $ 90,000. $. Non-farm assets total $ 785,000. Total net worth is $ 6,272,000.

The best solution – do an estate freeze at age 65, then buy back $ 60,000 of the preferred shares of the farming company for the rest of Owen’s life, suggests Sabourin.

The company is worth $ 5,487,000. Assuming it grows by five percent a year, it will be worth $ 6,049,420 in two years when Owen is ready to retire, notes Sabourin. He can then issue new ordinary shares to his farmer son. Any future growth of the company will be in the hands of his son.

In the first year of retirement, Owen can buy back $ 60,000 of preferred stock and do so annually, increasing the funds withdrawn from the company by 2% per year to slow inflation.

This process is expected to generate an annual income of $ 60,000, and there is $ 6,000 from the Canada Pension Plan and $ 7,380 from Old Age Security (OAS).

After tax, this cash flow would generate $ 58,768 per year. There would be a deficit of $ 1,232, which Owen can cover by drawing on his RRSP or TFSA, explains Sabourin.

OAS clawback could be problematic as it is triggered when net income exceeds $ 79,845. The repurchase of preferred shares is treated as dividend income, so there would be a loss of a few thousand dollars on clawback. This process will leave Owen with sufficient retirement income until he is 90 years old.

The estate freeze will allow Jack to avoid having to shell out money for the buyout. Owen will continue to control his farming company. If the oldest son Jack doesn’t run the farm well, Owen can step back and regain control, warns Sabourin.

In two years, in 2023, farm assets before inflation adjustment would be $ 5,487,000. Assuming Jack withdraws $ 60,000 from the farm in the first year of the transition and assuming 2% inflation going forward, the preferred stock would generate a lifetime payout of up to 90 years of 1,960,254 $. At 90, the farm would have an undistributed value of $ 4,089,163, Sabourin estimates.

Add $ 250,000 in personal investments and the farm house of $ 450,000, Owen’s total life equity would be $ 5,089,163. A million dollar life insurance policy Owen bought ten years ago will fund an inheritance of $ 500,000 for each of the off-farm children. They will have to sell the preferred shares they hold to the farming company, Sabourin explains. The farm child will have to buy these shares along with the $ 1 million life insurance policy that will be paid to the farm corporation tax-free. This money will allow the child farmer to buy his siblings’ shares at $ 500,000 each.

With all of this done, the non-farming children will have received $ 1 million each, while the farming child will have inherited the $ 3,089,163 of preferred stock.

Is it equal and fair? The child farmer is going to have $ 3 million in preferred stock while the two brothers will only get $ 1 million each. But the farm child will have to sweat for their income, get up to feed the animals each morning and run the farm, while the non-farmer siblings will each receive $ 1 million in passive inheritance. The million dollars per child at an assumed rate of return of five percent per year will provide them with $ 50,000 per year each for life. Overall, it’s a fair and effective plan, concludes Sabourin.

This plan sounds complex, but it’s really just a tax-free, tax-free distribution of life insurance payouts to keep the operation going and provide a means of reorganize the social capital of the operation. It is open, fully compliant with tax legislation, and not difficult to administer once the plan is in place. Most of all, it allows Owen to treat his three sons fairly, with the farm going to Jack and a good chunk of the money to his two nonfarming brothers.


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Financial literacy

Egypt celebrates Global Investor Week by promoting financial literacy

Rania Al-Mashat, Minister of International Cooperation, and Mohamed Farid, President of the Egyptian Exchange (EGX), inaugurated the EGX trading session on Tuesday, as part of Egypt’s participation in World Investor activities Week 2021.

The event also brought together heads of private and public universities, stock exchange executives, members of EGX’s board of directors and representatives of associations operating on the stock exchange.

The International Organization of Securities Commissions (IOSCO) launched Global Investor Week in 2017, with the aim of improving financial literacy and strengthening the culture of investing in capital markets.

The week includes many events and activities, as more than 80 global stock exchanges are very active and put a lot of effort into spreading financial culture related to the capital markets, with trading sessions from October 4 to 11, on the occasion of World Investor Week. , based on the invitations it receives from the World Trade Federation (WFE).

Al-Mashat stressed the importance of Global Investor Week, to promote the activities and role played by EGX in the development of the Egyptian economy. She noted the importance of capital markets in the coming period in light of the global demand for green and innovative financing tools to advance the 2030 agenda for sustainable development, and efforts to Egypt to use this type of financing tool to improve its vision of development.

The Minister indicated that the financial markets play a major role in financing large and small businesses as well as small and medium-sized businesses, which allows them to finance their expansions, increase their business volume and increase their opportunities. growth.

For his part, Mohamed Farid said that Egypt’s participation in Global Investor Week reflects the growing involvement in supporting and promoting financial literacy and raising awareness of capital market issues as one of the most important elements for developing the Egyptian market.

He revealed several efforts of the current administration to establish partnerships with several ministries concerned with education and culture, to develop and produce educational content that helps spread financial literacy for all groups, especially for children. , through interactive and dramatic story content.

“The current management believes that the process of improving financial literacy and increasing levels of financial awareness and knowledge is one of the most important goals of the value chain to develop the market, increase efficiency and competitiveness. This would happen by increasing the number of companies listed on the supply side and the number of investors on the demand side, as well as developing products, “he said.

He added that the strategy to improve financial literacy includes several aspects. It includes training employees and university students, developing social media platforms and updating the website, as well as launching an unprecedented media campaign to raise awareness and publicize the fundamentals of investing in stock Exchange.

Nadini Sukumar, president of WFE, said financial literacy is not optional. “We have always invested in spreading financial literacy, convinced of the importance of inclusive growth and market-based financing that contributes to sustainable economic growth. This is very dear to us, given the nature of the securities industry, which sees the protection of brokers as a major concern. “

Martin Moloney, Secretary General of IOSCO, said that the promotion and dissemination of financial literacy is a major player in the different lines of work of the organization.

“It’s a cornerstone. We will always work to design programs to educate clients as a key factor in ensuring their protection, ”he added.




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Financial plan

What to ask clients to start their financial plan

Clients are often concerned about the past, such as filing last year’s tax returns, rather than the future. Accountants can be of tremendous benefit to these clients by providing them with cutting edge services. It means financial planning.

There are many reasons why clients often think they don’t need financial planning services. They may think the good times will last forever, that retirement is too far away, or that they should focus on immediate concerns rather than future events like college education or weddings. Even if your client thinks they don’t need financial planning, you can take a proactive approach that shows you are invested in your client’s future success.

Showing your client that financial planning is critically important begins by asking them the following questions:

How confident are you that you will have a comfortable retirement?

You can also ask them how long they plan to work or if financial independence is a goal.

Why: The bottom line is that most people are unprepared for retirement. According to Synchrony Bank, the average retirement savings for an American aged 50 to 54 is $ 146,068. The 80 percent rule is often used to determine retirement income based on a person’s current income, while four to five percent is often considered a prudent level to mine retirement assets.

How? ‘Or’ What: You can use Monte Carlo simulation programs to examine your client’s current retirement assets as well as planned future savings and growth and compare it to planned spending, adjusted for inflation over time. This will give you a good idea of ​​how long your customer’s money will last.

What is your plan for eliminating credit card debt?

Many Americans have revolving credit card debt. According to creditcards.com, the average credit card interest rate is 16.2%. Now compare that to what your customer is making in cash, which is next to nothing.

Why: According to valuepenguin.com, the average credit card debt for Americans aged 45 to 54 is $ 7,670, and 51.7% of people in that age group have revolving credit card debt. Personal interest is not tax deductible. Many people make minimum payments while increasing their balance. If the Fed raises its interest rates, those rates will rise as well.

How? ‘Or’ What: Start by determining the extent of the problem for your customer. How many cards do they have? What rates do they pay? Look at their monthly statements showing how they could pay off the balance quickly using the examples provided. Can they make balance transfers to other cards with lower introductory rates? Help them develop a debt reduction plan.

How much will it cost to prepare your child for a career?

Most people ignore the overall cost of raising a child to college age. Some assume that their child’s school fees will cost the same as what they paid for their own education, but they may not be wondering if their child’s career will require a graduate degree.

Why: According to the most recent USDA figures, the average cost to raise a child to age 17 is $ 233,610. US News & World Report says the average cost of tuition for in-state students at a public school is $ 10,338, while outside students pay an average of $ 22,698. Private college tuition fees average $ 38,185.

How? ‘Or’ What: As the costs of a university education will continue to rise, your client needs a tax-efficient savings strategy. They should also develop a thorough understanding of how financial aid programs work.

What would happen if you suddenly suffered a career setback?

While this question can be difficult to ask, it is important to think about it. What would happen if your client lost their job due to the downsizing of the company? Even if their spouse is employed, they might need two incomes to make ends meet.

Why: Millions of Americans have been made redundant during the pandemic and businesses have closed. Many companies are looking to rehire, but often for low paying positions. Maybe your client realized that his “permanent job” might not be that permanent.

How? ‘Or’ What: Your client needs a reserve fund, which is usually made up of six months of income. Since this can be difficult for many customers, they should consider what they have on credit. Having a home equity line of credit is a good idea. Your client should also understand the rules governing retirement account loans. Most importantly, they need to plan ahead and have a strategy for finding a new job.

How would your family be fed if you were no longer in the picture?

You may have young clients who are just starting their careers and married life. Often they have young children. They may own a home and have mortgage debt. When we are young, we assume that we will live forever. What if we don’t?

Why: CNN reports that a young family should purchase insurance that covers at least 10 times their annual income, while 20 times is even better. Your client will need a reserve of cash to generate income to replace lost income.

How? ‘Or’ What: Start by discussing the importance of being able to replace income. Think about “what if” strategies and discuss the pros and cons of term and whole life insurance.

What are your long-term plans for your business?

If your client owns a business, most of their wealth is likely tied to the business. Their children may not want to continue their legacy, so they need an exit strategy.

Why: In 2015, the Vancouver SW Washington Business Journal reported that 90 percent of US businesses are owned or controlled by families. Of these, 30 percent belong to the second generation and 12 percent belong to a third generation. Your client must either prepare the business to move on to the next generation or plan to sell it.

How? ‘Or’ What: Let your customer do the talking. Will their family inherit the business and, if so, how are they preparing for this day? If the business is to be sold, it must be put in optimal conditions to get the best price. Start talking about ratings and how they’re calculated.

By itself, financial planning does not appear to be an immediate need. But the more in-depth and specific the discussion, the more pressing the need becomes.


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Financial literacy

NKU joins two national initiatives to boost civic engagement and financial literacy

Northern Kentucky University will participate in two American Association of State Colleges and Universities (AASCU) initiatives designed to improve civic engagement and economic literacy among students, and to build campus-community partnerships.

The two-year-long initiatives involve hundreds of resource-sharing colleges and universities across the country, according to an announcement.

One program, Re-Imagining Campus-Community Partnerships, will help colleges and universities deepen their engagement work with community partners, especially
during the ongoing COVID-19 pandemic, according to the announcement.

The initiative will identify trends and patterns of engagement and allow NKU to learn from other institutions and share our most impactful community engagement practices, unique educational goals as well as common goals among participating institutions, the school said.

“Over the past year, we have seen tremendous changes in the way citizens interact and engage civically in their communities,” said Samantha Langley, vice-president of graduate studies, research and outreach. “It’s important for us to delve deeply into how civic engagement has changed over the past year to help us deepen and
strengthen our regional commitment.

In the second initiative, the Economic Literacy Project, NKU will work with other colleges to improve students’ knowledge of US national debt, tax policy, and financial literacy.

“Helping students understand the importance of money and finance is extremely vital for their role in society after graduation,” said Dr Abdullah Al-Bahrani, NKU economics professor at Haile College of Business. “From understanding their personal budgets to US tax policy, finances play a huge role in everyday life.”

NKU President Ashish Vaidya is a long-time active member of AASCU. In addition to being appointed to the AASCU board of directors, he also sits on the association’s committee on manpower and economic development and has also chaired its engagement and research council. Vaidya represented NKU at the AASCU Annual Meeting in 2018, where he joined the Bill and Melinda Gates Foundation’s “Keeping the Promise of Public Higher ED” podcast.

-Staff report


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