Here are the Steps to Success in Chess and Investing

Here are the Steps to Success in Chess and Investing

When you play chess, you need to take small steps to success rather than making grandiose moves or waiting for your opponent’s blatant blunders. A good chess player builds his defensive and offensive fortress slowly, accumulating small advantages wherever possible. The same idea applies to finance. Since it’s unlikely that you will win enough money in the lottery to support you forever, you’ll need to accrue money in reasonable, steady amounts. Over time, a collection of seemingly trivial sums adds up. The book Rich As A King: How the Wisdom of Chess Can Make You a Grandmaster of Investing suggests the following small steps to help you build your nest egg. (To watch a 3-minute video about this, click here.): Regular savings. Squirrel away $5 per day, and put it into a stock mutual fund monthly or quarterly over twenty years. If you net 6% per year on that pool of money, you’ll end up with over $67,000. (If you can save even more, great!) Lower fees and expenses. Look for ways to reduce small, recurring cash outlays. You could transfer your banking relationship to a lower-priced firm (saving $400 per year), pay off your credit card every month (or better yet, switch to a debit card) and save $2,000 per year in interest payments, and renegotiate your cable and cell phone bills (save $30 per month). Examine your budget to find other possible savings routes. Implementing these alone would allow you to sock away $3,800 every year. Get a better salary or find a second income. Could you find a job with a better salary, or perhaps work... Click for more
Two Ways Baby Boomers Can Have a Successful Retirement – Rich As A King Episode 132

Two Ways Baby Boomers Can Have a Successful Retirement – Rich As A King Episode 132

Baby boomers are approaching retirement. Find out about a strategy baby boomers can use to help them have a successful retirement. Click here to use the “lunch savings calculator” to help you prepare your finances for the future – no matter how old you are. This link is good for baby boomers as well as anyone else planning to retire one... 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
When is the Right Time to Buy Stocks? – Rich As A King Episode 127

When is the Right Time to Buy Stocks? – Rich As A King Episode 127

When should you buy stocks? When they are riding high, or when they are at an all-time low? What does the expression, “Buy when there is blood in the streets” mean? How does it relate to investing? Listen to Susan Polgar’s explanation of when the best time is to strike at your opponent in chess, and learn a how to apply a chess strategy to investing. For more inspiration from the game of chess, get a free download of the Rich As A King poster book... 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