by Douglas Goldstein | Nov 15, 2016 | Behavior finance, Financial Strategies, Podcasts |
What’s the difference between a casino and the stock market? On this week’s financial podcast, find out why the odds are much better if you invest your money in the stock market than if you try to make a huge win at a casino. Learn how to determine your real chances of winning, and why investing is not... Click for more
by Douglas Goldstein | Nov 1, 2016 | Decision Making, Financial Strategies, Podcasts |
Despite enjoying popularity on the street, not every “rule of thumb” or popular investing strategy works. A “rule of thumb” is a principle that can be broadly applied to a situation, and by definition, lacks a certain amount of accuracy. Sometimes rule of thumb guidelines can be safely followed. Other times, it may be best to scrutinize common wisdom, like “sell in May and go away.” Today’s episode provides tips on what to think about when deciding what your next financial step should be. Should you follow a general rule of thumb or should you take customized action steps based on your specific situation? If you enjoyed this financial podcast, leave a review for it on... Click for more
by Doug Goldstein CFP® | Oct 26, 2016 | Financial Strategies |
In both chess and investing, a large focus is put on protecting your most important pieces, or core assets. These are the pieces (or financial assets) that are crucial to your success. In chess, the king is the most important piece on the board. When he is lost, the game is over. To prevent this from happening, many players will castle. Castling is a chess move that allows you to switch the location of your king and rook. (To see an example of castling, watch this short one-minute clip.) The king’s new location on the side of the board grants him extra safety from enemy pieces. Similarly, in the finance world it is crucial to make sure all of your core assets are safe in order to protect your family’s security. (Click here for a free download on how to plan for retirement and protect your family’s financial future.) Here are three of your most important financial assets…and some practical ways to safeguard them: Core Asset: Retirement savings Protective strategy: Protect retirement savings from taxes as long as possible. Retirement savings are a crucial asset for your future retirement. The two most popular retirement savings accounts are IRA or 401(k) accounts. This is because they are tax-deferred, meaning that the money in them is not taxed until you withdraw it. Core Asset: Your earning ability Protective strategy: Protect your family with insurance. Your ability to earn money is your household’s most important asset. As your family’s survival depends on you, it is your responsibility to make sure there is an alternative source of income coming in, if you are... Click for more
by Douglas Goldstein | Oct 19, 2016 | Financial Strategies, Podcasts |
What happens if you miss an investment opportunity? Are you doomed to have lost the chance to have made money? Luckily, successful investing rarely involves making once-in-a-lifetime choices. The majority of Wall Street wealth was not made timing the market. Perseverance, rather timing the market may be the key to financial success. Listen to the story of how the Hungarian government tried to stop Susan Polgar from competing in international competitions during her youth, and what it teaches about using available opportunities. Get information about our upcoming real-life finance course and send your financial questions to be answered on a future... Click for more
by Doug Goldstein CFP® | Oct 13, 2016 | Decision Making, Financial Strategies |
What should you do if you made a bad investment? Should you hold onto stocks that aren’t doing well in case they improve, or should you sell them before you lose more money? The answer to this question, which most investors face during their investment career, can be found in chess. When you play chess, you may find that the best way out of a bad situation is to get rid of a useless piece that isn’t helping your position. Similarly, investors must also consider when to let go of a bad investment. An underperforming position can often wreak havoc on your overall situation, so try to dispose of it as soon as possible. Don’t wait for a magical solution Though you must expect volatility in the stock market, when fundamental changes occur in a company, don’t wait around for a magical solution. Follow the wisdom of the Steve Miller Band: “Take the money and run.” Don’t spend weeks mulling over a decision to sell a stock. If the original reasons for owning it no longer apply, get out even if it means you will lose money. Cutting your losses now may avert an even greater potential loss in the future. For example, when Washington Mutual, Inc., which used to be America’s largest savings and loan association, lost its high investment rating on September 15, 2008, some of its investors sold out immediately and got some of their money out. But those who waited ten days woke up to the headline that the U.S. government seized the Washington Mutual Bank and placed it into the receivership of the Federal... Click for more
by Douglas Goldstein | Oct 5, 2016 | Financial Strategies, Podcasts |
If markets fall, and your stock portfolio takes a beating, don’t despair. On this episode of Rich As A King, find out why it’s important to stick to your strategy even when things go wrong. Falling stock prices isn’t the main threat to your portfolio. Listen to find out what the real danger is. Get information about our upcoming real-life finance course, and click here to send us your financial... Click for more
