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
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
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 You Need to Know to Invest in Stocks Strategically – Rich As A King Episode 148

What You Need to Know to Invest in Stocks Strategically – Rich As A King Episode 148

To invest in stocks, you need to know how to choose the ones that are best for you. In this financial podcast, apply Susan’s way of choosing which chess pieces to move on the board to determine which stocks to buy. Once you’ve chosen your stocks, decide how involved you want to be with managing your investments and take a look at the different options that are available to you. If you aren’t already signed up to receive our newest blogs by email, sign up... Click for more
What’s Your Most Powerful Money-Making Asset?

What’s Your Most Powerful Money-Making Asset?

What is your most effective money-making asset? The answer is – your inner potential. If you work hard and maximize your abilities, you, and by extension your wealth, have amazing growth potential. When you play chess, there are many different pieces and techniques to choose from. But YOU are the only one who can actually move the pieces around the board. Even if you play an automated chess game, it’s ultimately your decisions that help you win. Without you and the choices you make, there’s no game. Even the queen, arguably the most effective and versatile chess piece, can’t move by herself. You have the power Similarly, the surest way to build your wealth is to maximize your potential. How do you do that? Education Knowledge is power. Even if you were not raised with good financial habits, you can always learn. There is a wealth of online information about the basics of personal finance – such as stocks and bonds, how to budget, and investing techniques such as asset allocation, and much more. Arm yourself with knowledge, and you will have a greater potential to make sound financial choices.  Get good advice Don’t make financial decisions alone. Find an objective, qualified financial advisor to give you clear advice and teach you. Although you ultimately make the choices it’s always good to have help in the form of a qualified professional. Make the most out of yourself More than any other wealth-building tool, your own earning capacity and self-discipline can determine whether you will succeed in becoming as “rich as a king.” In order to maximize your career opportunities,... Click for more
How to Avoid This Surprise Chess Tactic, Which Could Mess up Your Finances

How to Avoid This Surprise Chess Tactic, Which Could Mess up Your Finances

One of the most deadly surprise chess tactics to watch out for in a game is the skewer. (Click here to watch a short video about the tactic.) A skewer targets two of your opponent’s pieces that are lined up. Usually, the more valuable of the two pieces flees, allowing the capture of the other one. Very often, this takes place in the form of a surprise attack. If you are extremely vigilant, however, you may be able to prevent this from happening. The same kind of surprise tactic can derail your finances, throwing them into disarray. Stop and think As an investor, you lack the same vantage point that allows chess players to observe every piece on the board. However, in many situations, if you just stop, think, and assess all the possibilities, you may be able to prevent yourself from falling victim to a surprise attack. Here’s an example: What would happen if you didn’t have an emergency fund? You have some savings, but they are in long-term investments that you can’t access in a hurry. One day, unexpectedly, your car breaks down and needs a very expensive repair. What do you do? Without an emergency fund, this huge expense is hard for you to bear. You can’t take the money out of your long-term savings as you need it as soon as possible, and you don’t have enough cash in your current account to cover it either. If you had built an emergency fund gradually, putting a little money aside over the preceding few months and years, you would have been able to cover this repair... Click for more