by Douglas Goldstein | Sep 19, 2017 | Chess Strategies, Financial Plan, Podcasts |
What are three financial moves that you can make now to ensure that you will have a comfortable retirement? Consider basing your financial moves on chess strategies. You can adapt chess maneuvers to put your finances in order and prepare for retirement. Download this financial podcast to learn a how to apply chess moves to your finances. Longer lifespans mean longer retirements. Therefore, in order not to run out of money, it’s critical to prepare properly. For more about preparing for retirement in the “age of longevity,” listen to my interview with Professor Andrew Scott, author of The 100-Year Life: Living and Working in an Age of... Click for more
by Doug Goldstein CFP® | Sep 12, 2017 | Chess Strategies, Decision Making |
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
by Douglas Goldstein | Sep 5, 2017 | Decision Making, Financial Plan, Podcasts |
Do you need a perfect plan to be a successful investor? You might be surprised to hear the answer is NO! It’s possible to be a successful investor, even without the perfect plan. As a matter of fact, there is no such thing as a “perfect plan” since investors need to be flexible enough to react to market changes. Action is the key to becoming a successful investor. Compare it to a successful chess player who doesn’t spend the whole game dreaming about the best moves. He acts while the clock is ticking. Act now, and listen to this podcast about how to be a successful... Click for more
by Doug Goldstein CFP® | Aug 29, 2017 | Financial Strategies |
Some people think that if they invest in property, they can boost their cash flow income easily, with little work involved. However, buying properties and renting them out is not as simple as it seems. Playing chess is also not as easy as it looks. You need to know how each piece moves and consider each move you make very carefully. In the same way, before purchasing a property for investment purposes, make sure you are familiar with the various risks and challenges that landlords experience. Then, decide if you still want to go ahead with the purchase, or if you prefer to look for alternative options to buying real estate without becoming a landlord. Learn the business of property management Before renting out a property, it’s important to familiarize yourself with the responsibilities you have towards your property and your tenants: Make sure you understand all the tax implications of owning a second property. Anticipate technical repairs to the apartment. You may need to learn how to do them yourself, or be ready to call a handyman whenever the need arises. It is your responsibility to make sure the property has proper building codes and answers all safety requirements. If someone is harmed on your property as a result of negligence, such as in a fire caused by faulty electric wiring, as landlord this may be your responsibility. What are the risks involved in renting out real estate? Going into debt – Relying on monthly rental income to cover your debt expenses is risky because there may be times when you can’t find anyone to rent your property.... Click for more
by Douglas Goldstein | Aug 22, 2017 | Decision Making, Financial Strategies, Podcasts |
When is the best time to invest? When the markets go up or down? This financial podcast explains why timing the market may not be the best investing strategy. The best chess players don’t let their emotions affect their performance on the board. Learn how to transfer that knowledge to the finance world, and get tips on how to be objective when making financial... Click for more
by Doug Goldstein CFP® | Aug 15, 2017 | Decision Making |
Some people treat market trends like any other kind of fashion. Just as many people dress in a certain style because it’s popular, some investors choose a particular type of investment or react in a particular way to the markets because “everybody’s doing it.” But is that wise? Don’t follow the crowd Imagine taking this approach when playing a game of chess. Instead of thinking whether your strategy is of any real benefit to your particular situation and if it’s actually helping you win, you blindly follow a specific approach simply because you read about it on a couple of chess blogs. Without questioning it, how do you know if it’s a good strategy for you? In fact, when Susan Polgar and I wrote Rich As A King, she said a common problem she sees with amateur players is that they often memorize openings of world champions, but then get stuck because they don’t really know what to do once the board develops into the mid-game. While a particular strategy may be popular because it really is effective, that doesn’t automatically mean that it’s right for you every time. You need to look at what’s happening on the chessboard, what your opponent is doing, and then determine which strategy can help you win in your specific situation. Blindly following a strategy just because it sometimes works or because it worked for someone else, without stopping to think about its actual effectiveness in your particular situation, can be a huge mistake. As Ralph Charell wrote, “Avoid the crowd. Do your own thinking independently. Be the chess player, not the chess... Click for more
by Douglas Goldstein | Aug 8, 2017 | Asset Allocation, Financial Strategies, Podcasts |
One way of strategic investing is to buy ETFs (Exchange Traded Funds). Sometimes investors are worried about risk, and as a result, limit their choices of ETF to local companies that they already know. Learn about the wide range of ETFs that you can choose from, and why playing a defensive chess game of chess (or being too conservative with your investments) is not always enough in order to succeed. Click here to learn about the different varieties of... Click for more
by Doug Goldstein CFP® | Aug 2, 2017 | Chess Strategies, Financial Strategies |
One very effective, but often overlooked way of saving money is increasing your monthly mortgage payments. The idea of spending money in order to save sounds like a contradiction, but if you look at your bigger financial picture it makes a lot of sense. Here’s why: Remove all obstacles in your path When you play chess, your main objective is to checkmate your opponent. To achieve your goal, you need to find strategies and tactics for removing those obstacles so that you can move forward. Occasionally you might even have to sacrifice a valuable piece to get ahead. In the short term, sacrificing a piece may not seem advantageous, but in the long term a sacrifice may help you win the game. Similarly, in personal finance, you need to eliminate the debts blocking your path towards a comfortable retirement. These debts include credit card balances, bank overdrafts, and also your mortgage. By making larger monthly payments, you can pay off your mortgage more quickly. You actually end up spending more money over the long term if your monthly payments are smaller and the mortgage is spread out over a longer duration. But why is this, if you are borrowing a specific sum of money in both cases? The answer lies in the way that a mortgage is usually built. How does a mortgage work? A mortgage is a loan you pay to the bank with your house as collateral. In America, mortgages usually vary from 10 years to as long as 50 years. The debt that you pay back consists of the principal, or the actual sum that you... Click for more
