by Doug Goldstein CFP® | Jun 20, 2017 | Chess Strategies, Financial Plan |
Market crashes are inevitable. Just as they happened in the past, they are also likely to occur again in the future. So what should you do to protect yourself from a volatile market? Chess strategy can help you deal with volatile markets The following anecdote, from the world of chess, provides an insight on how to deal with a bad situation (like a market crash) when it occurs: In November 1986, the World Chess Federation (FIDE) decided to intervene in the chess rating system. In an unprecedented event, they granted all woman chess players 100 extra bonus points – except for Susan Polgar. They claimed that since she competed mainly against men, she did not need the extra points. Besides the unfairness and humiliation that it caused, FIDE’s decision hurt Susan’s ranking and she was displaced from the top of the list of world-class chess players. But instead of giving up, Susan continued to work hard to regain her top position. She earned her Grandmaster title and became the world champion. Susan’s sudden and unexpected loss of her rating could be compared to a stock market crash, which can also be unpredictable and sudden. If your stock portfolio takes a dive, it is important to hold onto your stocks if the fundamentals are still sound. The moral of both Susan’s story and how to react to a downward trend in the market is the same: bad things will happen, but if you give into despair it will be difficult to get back on course again. Is there anything you can do before the market crashes? While moving on and... Click for more
by Douglas Goldstein | Jun 13, 2017 | Chess Strategies, Podcasts |
A “fork” is a chess technique that involves using a single piece to attack two targets simultaneously. How does this move work, and how can you apply it to retirement planning? Listen to this financial podcast to get tips and advice on how to utilize your assets to achieve more than one investment goal at a... Click for more
by Doug Goldstein CFP® | Apr 13, 2017 | Chess Strategies, Decision Making, Inspirational Quotes |
What makes a player win in chess? Is there a special, secret formula that always guarantees victory? As chess is a multifaceted game, there’s no one uniform tactic or strategy that works for every single player all the time. Every player has his or her own unique style of play. What works for one player may not work as well for another. However, despite their differences, people who win in chess have one thing in common. What is it? The secret ingredient to make you win Grandmaster Aaron Nimzowitsch said, “Many men, many styles. What is chess style, but the intangible expression of the will to win?” In other words, it’s not enough to memorize dozens of possible chess moves. You need to have the will and determination to win the game. Chances are that in any single game you lose several valuable pieces along the way, and you’ll have to change strategies mid-game. But if you‘re determined and believe you can win, you won’t give up, and will play the game to its end. The will to win also helps you succeed in finance The financial world is similar to the chessboard. While it’s obviously harder to get on your feet after sustaining a financial loss than it is to restart a failed game of chess, you still need the will to win to become a successful investor. The market may have its ups and downs, but don’t give up. If you are determined to “win,” (read: prepare for a financially successful life) you need to keep reassessing your investing strategies and tactics as you go along. As... Click for more
by Douglas Goldstein | Mar 21, 2017 | Chess Strategies, Podcasts, Strategic Thinking |
Higher education is a great investment for your future, but is it worth taking on student debt? How much debt is your degree worth, and how will you repay it? This financial podcast warns you about two major pitfalls of student loans. If you already have student debt, download a free tool to help you accelerate paying it back.... Click for more
by Doug Goldstein CFP® | Mar 14, 2017 | Chess Strategies, Strategic Thinking |
What happens if you make a mistake when filing your tax return? Regardless of whether it was an innocent error or a purposeful act of omission, your signature on a completed form attests to its accuracy. While sometimes the tax code has broad interpretations, filings need to be accurate. (Disclosure: I am a Certified Financial Planner and not a tax advisor. See a qualified accountant/tax lawyer for your tax questions.) What should you do if the IRS finds a mistake? The penalties for owing tax to the IRS can be quite severe, ranging from fines to jail time, depending on the problem. If the IRS catches you in a deliberate lie, you are in a very sticky situation. What should you do if you’ve made a mistake on your tax return? Go for the stalemate with the IRS This scenario can be compared to being backed into a corner during a game of chess. Your king is threatened all around and you know that it is impossible to win. What do you do? The answer is to go for a stalemate, as a stalemate is always better than a loss. Rather than hiding a problem or ignoring it, deal with it as best you can. You may still have to pay tax or interest, but this is better going to jail. A stalemate is not always a negative thing. You may not win the game of chess – or chase away the IRS, but at least you didn’t lose. Watch Grandmaster Susan Polgar demonstrate how to use a stalemate in a game of chess in this two-minute video. Page... Click for more
by Douglas Goldstein | Mar 7, 2017 | Chess Strategies, Financial Strategies, Podcasts |
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
