The Most Important Financial Tactic That Is Often Overlooked

The Most Important Financial Tactic That Is Often Overlooked

Here’s an important financial tactic that is often overlooked, but can help boost both your bottom line and your performance on the chessboard: Use your head! Don’t run on automatic pilot. Be aware of what you’re doing and put clear thought and consideration into every step you take. Don’t just play with your hands When Georges Renaud and Victor Kahn authored The Art of Checkmate, they wrote: “Chess is played with the mind and not with the hands!” If you want to win a game of chess, don’t just move your pieces around the board. Think your moves through very carefully. Where are your opponent’s pieces in relation to yours? Would moving your bishop over there put your king at risk?                                     The same principle of thinking and not just acting also applies to investing. Before making an investment decision, ask yourself (and your financial advisor) the following: What are the risks involved? How much of a loss can I sustain if things don’t work out? Does this particular decision conform to my financial plan and current goals? Review your financial situation Review your financial plan and see if you are meeting your goals and financial objectives. If not, you may need to make changes to your investments after all. Even if you want to leave your portfolio at its current status quo, this is also an active decision that requires logical thought. “Chess is played with the mind, not the hands” can be a metaphor for thinking and analyzing all your... Click for more
How to Win at Chess… Over and Over Again – Rich As A King Episode 151

How to Win at Chess… Over and Over Again – Rich As A King Episode 151

What helped Susan Polgar win at chess over and over again? She began winning chess at age four, and became the first woman in chess history to achieve the title of grandmaster. Find out what strategy she used to win at chess, and how you can use the same strategy to stay ahead even when the market knocks you down. If you aren’t already signed up to receive our newest blogs by email, sign up... Click for more
What You Need to Know about the Return on Investments

What You Need to Know about the Return on Investments

The key to understanding investments is to avoid unrealistic expectations. One of the biggest mistakes investors make is expecting too much from an investment. But why do people have unrealistic expectations of their investments? There’s no such thing as getting rich quick For some people, their ideal is to get rich quickly, without having to work too hard. So when they see a potential investment promising a very high yield, they get very excited. But in their haste to realize their dream of instant wealth, they forget the famous maxim, “If it sounds too good to be true, then it probably is.” In fact, investments with very high yields are either extremely high risk or shady. In their rush to fulfill their unrealistic expectations, these investors ignore their better judgment and have an incomplete understanding of the situation. This can be compared to when you are playing chess and you suddenly see that the path towards your opponent’s king is wide open in front of you. You may not stop to think that things may not be as they seem. It is much easier to just look at the squares in front of you, instead of at the whole board. You move your queen into position, ready for check. Suddenly, your opponent’s piece comes out from a direction that you didn’t expect and takes your queen! You are now left wide open to an attack, and the game is not going in the way you expected. Why weren’t you more careful? Your unrealistic expectation of an easy win impaired your ability to think things through clearly. Consider the risks... Click for more
The Ultimate Way to Protect Yourself from One of the Worst Financial Risks – Rich As A King Episode 150

The Ultimate Way to Protect Yourself from One of the Worst Financial Risks – Rich As A King Episode 150

What is one of the worst financial risks? How about losing money in high tax payments. You can prevent this from happening by putting some of your earnings into a tax-deferred investment. Find out how this helps by looking at the knight on the chessboard, which performs best when it finds a square in enemy territory that can’t be touched by your opponent’s pawns. If you aren’t already signed up to receive our newest blogs by email, sign up... Click for more
Is Financial Support for Your Adult Children Always a Gift?

Is Financial Support for Your Adult Children Always a Gift?

Is it always an act of kindness to give your adult children financial support? Many parents who give their grown children financial assistance have good intentions. While their generosity appears to be a gift on the surface, these adult children may pay a heavy price for the free money. Why is supporting your adult children so damaging? When overprotecting your king ruins your game Let’s take a look at what happens if a chess player is too protective of his most vulnerable piece – the king: As the most important piece on the board, the king needs protection. But sometimes building a strong fortification around the king makes it more susceptible to a deadly attack since it cannot move itself out of harm’s way. Too much protection of a valuable piece can actually stifle its movements. Similarly, as a “chess dad,” who has watched winning and losing tournaments, I can tell you how difficult it is not to help my kids. I know that when the pressure is on, it’s important to let them play their own game. By giving them space to move themselves, they learn how to become self-sufficient. This teaches an important financial lesson: Sometimes overprotecting a valuable asset leads to its ultimate downfall. This may happen if you give too much financial support to your children. Consider those folks who hover over every aspect of their children’s lives, buying their sons and daughters anything they want. Their tuition and extracurricular activities, no matter how expensive, get delivered to them, along with credit cards to use without needing to pay the bills. Finally after grad school,... Click for more
What Is the Truth About Investing in Gold? – Rich As A King Episode 149

What Is the Truth About Investing in Gold? – Rich As A King Episode 149

If you are thinking of investing in gold, you can either buy physical gold or put your money into a gold ETF. Which is better? What are the advantages and disadvantages of each? If you are thinking of investing in gold, find out how to protect yourself against potential fraud and the actual costs of storing gold. How much does it cost to insure gold? Listen to what you need to know about investing in gold on this financial podcast. If you aren’t already signed up to receive our newest blogs by email, sign up... Click for more
How to Boost Your Financial Returns with a Chess Fork

How to Boost Your Financial Returns with a Chess Fork

If you want to boost your financial returns, try applying one of my favorite chess tactics – the chess fork – to managing your money. What is a chess fork, and how does it work? When a chess player forks his opponent, he moves his piece to a strategic square, threatening two of his opponent’s pieces at the same time. Since his opponent cannot save both threatened pieces simultaneously, the chess fork gives its player a distinct advantage. A chess fork can help you achieve two goals through a single action, as illustrated by the expression: “Kill two birds with one stone.” In finance, this can be compared to enhancing one of your assets so that it fulfills two or more of your financial goals. In this way, you receive multiple benefits from a single investment. Enhance your retirement funds One great way to make your assets work double-time for you is to put money into an IRA or a 401(k). These retirement plans are similar to the concept of a using a fork in chess, since a single action reaps multiple benefits: You get a current tax deduction – the money you put into the retirement plan lowers the amount of tax you pay today. Your money grows tax deferred – if you put money into an IRA or 401(k), you are only taxed on the profits when you withdraw any funds. Then, you are only taxed on the amount that you have withdrawn, not what remains inside the account. By leaving your money to grow untaxed, you will gain more. If you have a 401(k) plan from... Click for more