How to Invest in Real Estate Without Being a Landlord – Rich As A King Episode 135

How to Invest in Real Estate Without Being a Landlord – Rich As A King Episode 135

Real estate investors hope to get a quick return on their initial purchase. While multi-millionaires are often real estate moguls, is this a good investing strategy for the ordinary person? Regular folks don’t realize what being a landlord entails or the time-consuming and expensive problems that may arise. On this financial podcast, find out how to invest in real estate without having to be a landlord. Even more importantly, learn to diversify your real estate investments. Also, get a free tool to help you work out your STRATegic... 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
This Investment Strategy Can Increase Your Wealth

This Investment Strategy Can Increase Your Wealth

What’s an effective investment strategy for when interest rates are low? The problem with investing during periods of low interest rates is that your returns may not beat inflation and your money may lose its real value. One practical solution is to invest with a bond ladder. What is a bond? To understand why bond ladders are a frequently used investing strategy, you need to know how bonds work. A bond is a loan that you make to a corporation or government. Each loan has a set time period (term) and rate of interest. When the bond reaches its maturity date (the end of the set time period), you get back your original loan in addition to the final interest payment. What is a bond ladder? A bond ladder is a portfolio of individual bonds or CDs (certificates of deposit in a bank) that you buy to diversify your account. Each bond matures at a different date and has its own rate of interest. Buying bonds/CDs in this manner means that you don’t tie up all of your money in a single issue at one set interest rate. For example, you may buy a ladder of individual bonds that mature in one, two, three, four, and five years. If you have $100,000, you may decide to put $20,000 into each bond, which will then mature over consecutive years. Why this is helpful to lock in good interest rates If you invest the $100,000 mentioned above into a single bond with a rate of 1% for five years, you won’t benefit if an interest rate rise occurs during this time.... Click for more
Consolidating Your Money Can Actually Improve Diversification – Rich As A King Episode 113

Consolidating Your Money Can Actually Improve Diversification – Rich As A King Episode 113

How can you improve your portfolio’s diversification? By consolidating your money under the watchful eye of a single financial advisor. Last episode discussed how consolidating your investments can make more money.  Listen to this episode to discover the benefits of using money managers or mutual funds to manage specific sections of your portfolio. By consolidating your assets under one account, you can make sure that you are properly diversified.  Listen to the whole show for a link to a free video about money... Click for more
Why Asset Allocation is One of the Most Important Aspects of Investing

Why Asset Allocation is One of the Most Important Aspects of Investing

Asset allocation may be even more crucial to investing than picking the “best” stocks or funds. This is because by dividing your assets among different asset classes rather than looking at individual investments only, you spread out your risk. By diversifying your investment among different products, you lower your chances of losing everything because of a single bad call. How many different asset classes should you own? Asset allocation spreads out your investment among different asset classes (stocks, bonds, real estate, cash, etc.) as well as within a particular asset class (for example, large cap stocks, mid and small cap stocks, foreign equities, and different types of companies). Depending on the amount of money you’ve got, it may be impossible to diversify on your own. In that case, learn about mutual funds and ETFs (Exchange Traded Funds), which often have the benefit of broad diversification. For the average investor, having between four and eight different funds that give you exposure to different areas of the market could be sufficient, but you should check with your own financial advisor before making a final decision. As you age and your risk tolerance changes, your asset allocation should be reevaluated to make sure it best meets your current situation.  And, even if your personal situation doesn’t change, it’s wise to reevaluate your asset allocation periodically to make sure the market’s volatility didn’t knock your asset allocation out of whack. Like they say, “don’t put all your eggs in one basket… unless you’re at the grocery store, in which case you should because it makes it easier to carry them.” Listen to this... Click for more