How to Make Your Investment Account Management More Efficient

How to Make Your Investment Account Management More Efficient

How can you improve your investment account management? The answer is to consolidate your investments. If your investments are scattered among different companies, it’s difficult to keep track of what you own, and you may even have duplicate investments.  Additionally, you may end up paying more in fees to maintain multiple accounts. To manage your investments more efficiently, follow this chess strategy: Consolidate your assets After a chess team participates in a competition, they review their games and perform a “post mortem” together.  The coach and the players analyze the games so that everyone will play better in the future. This purpose of this is to learn from both the good and bad moves, to make the next game even better. The players consolidate their brain power (their assets), to become more effective. This same teamwork applies to managing your money. Your coach (your financial advisor) and your team (your lawyers, accountants, and other professionals) should all look at your portfolio from different perspectives. Each angle brings a unique view to the overall picture. ​Consolidate your brokerage accounts If your assets are spread out among different firms, your financial advisor won’t know about all of your investments and therefore won’t be able to keep track of them. Without the entire financial picture, he won’t be able to advise you properly. Instead, use one firm – and one advisor – to oversee all your investment or brokerage accounts. Choose one main financial advisor to ACAT (automatic account transfer) accounts from the other brokerage firms into his firm. For example, you could consolidate your IRA accounts, 401(k) accounts, CDs, and bank deposits all into the same firm. This way, all of your assets will... Click for more
The Best Way to Profit From Low Interest Rates– Rich As A King Episode 130

The Best Way to Profit From Low Interest Rates– Rich As A King Episode 130

If you like investing in bonds and other conservative investments, how should you invest when interest rates are low? Low interest rates and high inflation can actually lower the real value of your money if it is invested in bank savings accounts or CDs. So what are your options if you don’t want to take on a high risk (read: potentially high return) investment? Listen to this financial podcast to learn about a strategy that can help you make the best out of your investments during times of low... Click for more
Do You Need to Improve Your Financial Literacy?

Do You Need to Improve Your Financial Literacy?

Almost two thirds of Americans today can’t pass a basic financial literacy test. Can you? According to the FINRA Foundation’s National Capability Study, most Americans only got three out of six answers correct on a financial quiz… only 50%! FINRA (Financial Industry Regulatory Authority) is an organization dedicated to, among other things, protecting investors from investment fraud. It regulates stock brokers and brokerage companies, and works to create transparency in the marketplace. So it is especially interesting that FINRA reports that the majority of Americans are financially illiterate. Why does financial literacy matter? Imagine that you’re going to play a game of chess. What would happen if you had no idea what each piece was or how it moved, let alone the rules? You certainly wouldn’t be able to play. Your opponent could easily take advantage of your ignorance at every turn. In the same way, you aren’t going to get very far in the world of investing without sufficient knowledge of financial concepts. You can easily fall prey to scams or make uninformed decisions that can have serious ramifications. This is why financial education and literacy are extremely important, no matter your age or size of your bank account. Test your financial literacy How does your financial knowledge compare to that of the average American? Take FINRA’s five-question quiz to check your financial literacy now. Do America’s poor financial literacy scores mean that FINRA should tighten its regulations (in efforts to protect the innocent investor), or should organizations (the government?) provide more financial education? Financial education doesn’t have to be confined to the classroom. You can also get... Click for more
Which is the Best Country to Invest in For Global Diversification? – Rich As A King Episode 129

Which is the Best Country to Invest in For Global Diversification? – Rich As A King Episode 129

Global diversification, spreading out your investments among various countries, is an important part of investing. But how can you determine the best countries to invest in?  Global diversification is an important part of asset allocation. Want a chess metaphor to think about the importance of diversification? Think of diversification as “castling” ? a way to protect your investments. What are the tactics that you can use to diversify, yet invest safely? Need a guide to diversify and allocate your assets efficiently and responsibly?  For the first steps to take, go to www.richasaking.com/tools and use our asset allocation... Click for more
How Changing Your Spending Habits Can Make You Rich

How Changing Your Spending Habits Can Make You Rich

You don’t have to be a financial genius to get rich – simply change your spending habits. What are the most effective changes you can make to your spending habits? Changing your spending habits can be like changing the way you play chess Look at the way you play chess. Do you keep making the same mistakes on the chessboard? If so, it may be time to change your strategy. Maybe your usual strategy isn’t working because you’ve developed some bad playing habits. The way to improve your skill is to either practice more, or to try a different strategy/tactic. Similarly, if your current financial habits aren’t enabling you to meet your financial goals, try changing the way that you spend money. By budgeting wisely, you can save more. Being good at budgeting is not the ticket to wealth; however, without good stewardship of your money, which starts with careful spending, you’ll be hard-pressed to become a financial success. How? It’s not simple to alter the habits of a lifetime, especially if you are accustomed to a certain lifestyle or have learned bad financial ways. Changing your standard of living and how you handle money needs to be done with “baby steps,” carefully and gradually. Watch this 4-minute video for some easy-to-implement techniques for changing your habits. If you improve your spending habits, you can improve your financial life. If you enjoyed this video, subscribe to get more of my four-minute movies on The Douglas Goldstein Channel on YouTube.   Douglas Goldstein, co-author of Rich As A King: How the Wisdom of Chess Can Make You A Grandmaster of... Click for more
How to Stop Emotions from Interfering with Decision Making

How to Stop Emotions from Interfering with Decision Making

Letting emotions interfere with decision making is a common cause of mistakes… both on the chessboard and off. Why is it a problem when your emotions interfere with decision making? Swept away Let’s imagine the following scene: In a game of chess, your opponent moves his queen into a square that is exactly diagonal to your bishop. You didn’t expect this, and you are very excited at the thought of taking the queen. The rush of excitement at taking this important piece stops you from thinking straight –what you didn’t notice was that by so doing, you opened a pathway that threatens your king. Not only that, but your opponent’s knight was just waiting to take your bishop. What you thought was a brilliant move turned into a disaster: You lost a major piece and put your king in check! Since you didn’t take a critical moment to think, your emotions swept you away, taking control of your actions. As a result, you lost the game. The dangers of jumping in Chess player Charles Buxton warned of this when he said: “In life, as in chess, forethought wins.” The same concept applies to finance. If someone offers you a seemingly amazing financial opportunity, don’t let your emotions agree before you analyze the deal. Stop and think. What are the risks involved? Could you tolerate the loss if it turned south? A few moments of forethought and analysis could save you from a financial disaster. To help you remember not to let emotions interfere with decision making, print out this poster (and other chess posters) and hang it somewhere where... Click for more