InSight

Financial Planning Dentist
Investment With

InSight

Menu

Zending: The Art of Mindful Spending and Lasting Joy

Financial Planning Dentist

In the quest for financial stability and discipline, it’s common to be besieged by feelings of guilt and unease whenever we spend money on non-essentials. However, there exists a sweet spot where financial responsibility and pleasurable spending merge harmoniously. This sweet spot is known as “Zending,” a fusion of Zen (meaning complete and absolute peace) and spending. This article dives into the harmonious joy of Zending and how it can redefine our relationship with money.

Understanding Zending

Zending isn’t about spending extravagantly or living frugally. It’s about experiencing genuine happiness and peace in the spending choices you make, rooted in the confidence that you’re living within your means and aligning with your financial plan.

The Power of Guilt-free Spending

We’ve all been there: the thrill of purchasing followed by the sinking feeling of buyer’s remorse. But imagine a world where every penny you spend is accompanied by a feeling of satisfaction, a knowledge that you’re not compromising your future for immediate gratification.

Guilt-free spending isn’t about how much or how little you spend. It’s about ensuring every dollar aligns with your personal and financial goals.

The Zending Framework

  1. Mindfulness in Finance: Begin with a clear understanding of your current financial status. Be honest about your income, expenses, debts, and savings. This foundation is crucial for any financial plan.
  2. Budgeting with Purpose: Rather than a restrictive tool, view your budget as a reflection of your values and desires. Allocate funds for necessities, savings, investments, and personal pleasures.
  3. Plan and Prioritize: Establish clear financial goals. This might be a yearly vacation, monthly dinners at your favorite restaurant, or saving for early retirement. Knowing what you’re working towards will make spending and saving more purposeful.
  4. Savor Every Purchase: When you buy something within the framework of your budget and plan, relish it. You’ve earned this without compromising your future.
  5. Review and Adjust: Like any other strategy, it’s essential to periodically review your financial plan. As life changes, so do our needs and desires. Adjust your plan to stay aligned with your goals.

The Joy of Zending in Action

Imagine you’ve always dreamt of vacationing in the Maldives. With Zending, you would:

  1. Budget for it: Save a portion of your monthly income for this trip.
  2. Plan the Details: Research accommodations, flights, and activities, and allocate funds accordingly.
  3. Experience the Vacation with Complete Presence: Once you’re on the trip, every experience is enriched with the knowledge that you’ve planned for it. Every dinner, activity, and souvenir is devoid of financial guilt or stress. You get to be fully immersed in the joy you have designed without the concerns for costs, and the ramifications for enjoying your time on this vacation. 
  4. Return with Joy: Once back, instead of dreading credit card bills, you return to your regular life, content and ready for your next Zending adventure.

Conclusion

Zending offers a refreshing perspective on spending. By approaching our finances with mindfulness and intention, we can derive genuine, long-lasting joy from our expenditures. In a world where consumerism often leads to stress and remorse, Zending serves as a reminder that it’s entirely possible to find peace, pleasure, and purpose in the way we spend.

More related articles:
Articles
Kevin Taylor

What is the CIMA® Designation?

Mandatory vs. Voluntary designations? Several of the designations involved in our industry are often associated with being a mark of distinction. Series exams, for example, are often cited as a way clients will understand the legitimacy of their advisor. And while there are differences in the varied series designations they’re all more accurately described as mandatory designations. These exams allow people to carry out certain sales activities and securities actions in compliance with state and federal laws.  Voluntary designations, by contrast, show an advanced understanding and often years of study into specific technical, strategic, and legal strategies that arise in an investor’s journey. These financial commitments often reflect an advisor’s commitment to their craft, and several of the designations have education and experience requirements that amount to years of study and difficult examination to attain. Some of these designations year in and year out have failure rates in the 35-50% range. Meaning that even after years of independent and classroom study that over a third of those in pursuit will still fail the final examination requirement. There is a marked distinction between advisors who maintain an advanced designation and those who carry securities or insurance licenses. There will be a notable quality that should be apparent in their ethical, technical, and experiential expertise. What is involved in the CIMA® Education? There are only three universities that offer the core education platform for achieving a CIMA® designation. They all are required to maintain the highest ethical and educational standards to keep their standing with the Investment and Wealth Management Institute. The U.S. schools that currently offer the required education for this designation are as follows: The University of Chicago Booth School of Business The Wharton School, University of Pennsylvania Yale School of Management, Yale University The curriculum for the CIMA® designation covers five core areas of technical and experiential disciplines. The program’s core topics and content are designed to be congruent with client expectations of the roles of an investment manager or financial advisor. The current make-up for the CIMA® designation requires applicants to understand and pass the examination on the following five topic areas: 1. Fundamentals This area covers the statistics and methods of investment analysis, applied finance and economics, and the working of global capital markets. The fundamentals of a company’s balance sheet, economic conditions, and the marketplace give investors a baseline case for evaluating a company’s cost of capital, risk and interest rate exposure, and the general health of a company.  2. Investments Knowledge of the variable upside, risk, and performance expectations of the different vehicles is key to portfolio construction and investment advice. The proper use of Equity, Fixed Income, Alternative Investments, Options/Futures, and Real Assets can help an investor achieve a wide range of outcomes, mitigate risk, and better understand the route they want to follow.  3. Portfolio Theory and Behavioral Finance The behavior of different investments is the first level of mastery, the advanced understanding covered in a CIMA® designation also understands the interplay between these vehicles and how usage of several correlated and uncorrelated assets can constrain risk and drive excess returns. Portfolio theory and different behavioral models in finance theory can help CIMA® advisors better match a prospect or client with a risk profile that will accommodate their expectations. Different investment philosophies and styles coupled with the right tools and strategies help clients gain the comfort of aligning their expectations with reality and help them avoid the mistakes of fear and poor judgment. 4. Risk and Return Price discovery and the attributes of risk are an important part of the investment process. Different nuances in risk and performance measurement and attribution help CIMA® advisors uncover the right trends inside of a fund’s performance to both isolate and mitigate the unwanted risks and capture the desired exposures over long arcs of time.  5. Portfolio Construction and Consulting Process The difference in how a CIMA® practice runs will be felt in several different ways. The Investments & Wealth Institute Code of Professional Responsibility and Ethics governs a large portion of the interactions CIMA® advisors have with their clients. This allows clients and prospects to have elevated expectations for the fiduciary and ethical touchpoints in their relationship. Client discovery, the drafting of an investment policy, and portfolio construction become great examples of how the engagement with clients looks and feels different for the investor. How an advisor documents a manager search or selection of a portfolio will help clients find a better fit and avoid the feeling of a ‘lazy portfolio assignment.’ The goal of advanced designations is to bridge the satisfaction gap The divorce between client expectations and the relationship they have with an investment advisor is never more apparent than when asked “what do they own and why do they own it?”. Far too many investors own funds they don’t understand, and strategies they are prescribed that may fit in compliance terms, but clients cannot relate to. This creates a void where clients expect to have an understanding and comfortability with their investment decisions, but these expectations are not met by the advisor or insurance agent that they have done business with. This void creates a vacuum that is inevitably filled with fees, fear, greed, and poor decision-making. The structure prescribed in the CIMA® designation is focused on bridging that gap and further connecting the designee with the client and their goals.   

Read More »
April 27, 2021 No Comments
Articles
Peter Locke

What is a Credit Freeze? and How can you use it for Cyber Risk Management?

Here’s how you can freeze your credit to protect yourself from identity theft and fraud. It’s free to file a credit freeze, and don’t worry, it won’t have any negative impact on your credit. This is the most secure method of risk management on your credit – if you have no near or intermediate need to establish a new line of credit (i.e. a new credit card, home or car purchase) then this is a full lockout from credit predators.  What is a Credit Freeze? A credit freeze, also known as a security freeze, is a powerful tool that helps safeguard your credit reports. By implementing a credit freeze, you block unauthorized individuals from accessing your credit reports and prevent them from opening fraudulent accounts in your name.  When you apply for credit, such as a loan or credit card, the lender or card issuer usually checks your credit history to make an informed decision. However, if your credit is frozen, the potential creditor is unable to access the necessary data to approve the application. This provides an added layer of protection against identity theft and fraudulent activities. By initiating a credit freeze, you take control of who can access your credit information. It puts a barrier in place, ensuring that only authorized entities can view your credit reports. This proactive measure significantly reduces the risk of scammers misusing your personal information to exploit your credit and financial well-being. Remember, a credit freeze is a powerful tool to protect your credit and prevent unauthorized access. It gives you peace of mind and empowers you to take charge of your financial security. When should you get a Credit Freeze? Knowing when to get a credit freeze is crucial for protecting your financial well-being. Here are some instances where freezing your credit is highly recommended: Not actively seeking credit: If you’re not currently in the process of applying for a new credit card, loan, or any other form of credit, it’s wise to freeze your credit. By doing so, you create a proactive barrier against potential identity theft and unauthorized access to your credit reports. With the ease and cost-free nature of credit freezes today, it’s a recommended practice for all consumers to safeguard themselves in this way. Suspected data compromise: If you suspect that your data, such as your Social Security number or other identifying information, may have been compromised, it’s crucial to get a credit freeze. This is particularly important in the event of a data breach, where your sensitive information could be at risk. By freezing your credit, you prevent fraudsters from exploiting your compromised data to open fraudulent accounts or commit identity theft. Your Social Security number is especially vital to protect, as it holds significant value for potential identity thieves. If there’s any indication that your Social Security number may have been disclosed, initiating a credit freeze becomes even more crucial. In summary, it’s advisable to freeze your credit when you’re not actively seeking new credit and as a proactive measure to protect yourself against potential data breaches or compromised personal information. By taking these preventive steps, you can significantly reduce the risk of falling victim to identity theft and financial fraud. How to Freeze Your Credit: First, you’ll need to reach out to each of the three credit bureaus individually to freeze your credit. Take note of these names: Equifax, Experian, and TransUnion. You can contact them through the following methods: Equifax: Give them a call at 800-349-9960 or visit their website. You can also find a step-by-step guide for freezing your credit with Equifax. Experian: Go online to initiate the freeze or call 888-397-3742 for more information. If you need a detailed walk-through, we have a guide for freezing your credit with Experian as well. TransUnion: Call them at 888-909-8872 or visit their website. You can find a comprehensive guide for freezing your credit with TransUnion. Remember, freezing your credit with these three major bureaus should be your top priority. However, for an extra layer of security, you can also freeze your credit report with two lesser-known credit bureaus that may have information about you: Innovis: Reach out to them at 866-712-4546 or visit their website. National Consumer Telecom & Utilities Exchange: Contact them at 866-349-5355 or visit their website. Before initiating the credit freeze, it’s a good idea to gather all the necessary documents. While the specific requirements may vary slightly among the credit bureaus, you will generally need to provide the following information: Social Security number Date of birth Address Depending on how you choose to initiate the credit freeze (online, by phone, or by mail), you might also need additional documents, such as: Copy of your passport, driver’s license, or military ID Copy of tax documents, bank statements, or utility bills Proof of address, such as a utility bill If you opt for a phone freeze, be prepared to answer some authentication questions as well. Once the credit freeze is in place, your credit file will be secure until you decide to lift the freeze temporarily. This is necessary when you want to apply for new credit. To unfreeze your credit, simply visit the website of the credit bureau and use the same account you used to freeze your credit. Alternatively, you may be able to unfreeze your credit by phone or postal mail by providing certain verifying information. Unfreezing typically takes effect within minutes if you do it online unless you choose postal mail. There are various reasons why you might need to unfreeze your credit temporarily. For example, when applying for a new credit card, loan, rental apartment, or cell phone, the lender will need to check your credit. Some “buy now, pay later” services, like Affirm, also require you to lift credit freezes at all bureaus where they’ve been placed. When unfreezing your credit, keep these tips in mind: Visit the website of the credit bureau where you originally froze your credit. Use the same account you used

Read More »
July 6, 2023 No Comments
Taxmageddon
Articles
Kevin Taylor

What about ‘Taxmageddon’ should you be worried about?

What about ‘Taxmageddon’ should you be worried about? For years, the common belief has been that taxes, particularly income taxes, will be lower in the future for workers. That differing tax into the future almost always meant keeping more money in your pocket. But now, maybe not. The lower individual federal income tax rates ushered in by the Tax Cuts and Jobs Act (TCJA) are already scheduled to expire at the end of 2025. But with Biden’s November victory that looks to change sooner rather than later. We think the most likely and probably the best-case scenario would be a return to the pre-TCJA deal starting in 2021. This means a reversion for most earners to pay the same rates they were in 2016 and the decade prior. For many, this means about 2-3% higher taxes in their effective tax rate. The worst-case scenario we anticipate would include higher rates on ordinary income. And higher rates on dividends and long-term capital gains too, which are currently taxed at 0%, 15%, 18.8%, 20%, and 23.8%. These rates, often criticized as being far lower than the income rate, are likely to see some changes. Both in the top-line rates, with Bidens’ opening bid raising that to the ordinary income rate. It’s very likely to see the benefits of such a low tax threshold become a source of change.  The next, worst-case scenario will be if Washington includes eliminating more write-offs for individual taxpayers, while simultaneously subjecting all wages and self-employment income to the dreaded Social Security tax. This would be 6.2% withheld from employee paychecks but 12.4% from self-employment income. A major change for independent contractors and the self-employed.   The absolute worst-case scenario that we can imagine for investors and workers, is that most or all of these changes, and more, are imposed retroactively. Meaning that the damage has already been done and that the proposed changes could be from as early as the start of 2021 (unlikely but possible) or from the proposal of the legislation which could mean the changes are in effect as early as May of 2021. What should we be doing if ‘Taxmageddon’ is real? First, make some assumptions for what your income is going to be over the next 3-5 years. This will help you uncover some of the tax issues for those in the highest two tax brackets. If you are individually making more than $207,000 or jointly making $414,700 you should be reworking your assets today, to be able to handle the coming changes.  One of the oddest recommendations, as alluded to above, is that if you’re traditionally differing taxes, is to realize some gains sooner rather than later. This might be a first for many investors who have not seen a tax increase, particularly one that affects the capital gains process. Additional Resources for ‘Taxmageddon’ Tax Mitigation Playbook Download Opportunity ZoneOverview

Read More »
May 12, 2021 No Comments

Pin It on Pinterest