by Doug Goldstein CFP® | Mar 17, 2016 | Financial Strategies |
One of the most common wedding mistakes is spending too much on the wedding party. As I often tell my clients, “Plan for a wedding just like you plan for retirement.” A wedding is a big expense, and similar to retirement, if you don’t plan correctly you may find yourself broke in the future. How can you justify having a gorgeous wedding if the next day you wake up broke? Many happy marriages are built on the foundations of a modest wedding party. You don’t need to have a huge, fancy wedding, but if a big party is what you want, make sure you approach the financial aspect wisely. In the same way that you prepare for retirement, when you prepare for a wedding you should: Start saving early. Save money regularly. Invest your money appropriately. Many parents dream of sending their child to college and walking them down the aisle. In the same way that you put money aside for tuition bills, don’t let wedding expenses take you by surprise. When saving for your child’s wedding, keep these points in mind to avoid making common wedding mistakes: Don’t pay for the whole party The bride and groom should pay a percentage of the wedding expenses, too. It is very easy to spend other people’s money, but as soon as the bride and groom feel their own pockets emptying out, they will think twice before adding additional expenses to the event. Don’t take on debt for the wedding In general, going into debt should be avoided at all costs. It is one thing to take on a 15-year mortgage... Click for more
by Douglas Goldstein | Jan 5, 2016 | Decision Making, Financial Strategies, Podcasts |
How much do you know about mutual funds? In this second half of a two-part series on mutual funds (for the previous episode click here), Doug explains what mutual funds are and how an individual investor can profit by investing in them. He reveals an important strategy for making investment decisions in general, which he learned from a discussion with Grandmaster Susan Polgar. At the end of the show, Doug mentions a special link to get additional resources about mutual funds. Don’t forget to click on it! ... Click for more
by Doug Goldstein CFP® | Nov 26, 2015 | Financial Strategies |
Of the many subjects taught in school, personal finance classes are noticeably absent. If kids were taught how to avoid debt and how to start saving for retirement from a young age, it would minimize the chance that later on in their lives they would experience financial hardship. Though teaching personal finance would help improve money management skills, here’s what’s really needed: While writing Rich As A King, Susan Polgar pointed out that what is actually missing in school is education geared towards strengthening strategic thinking. Strategic thinking is the basis of problem solving, and if students aren’t equipped with the skills to develop strategic thinking habits, they will not be able to formulate personal finance goals for their future. Susan advocates teaching strategic thinking by following these three tactics: Look where you are going from the very start In chess, one of the first things a player studies is how to play endgames. Once equipped with that knowledge, he can play the beginning of the game with a clear vision of how to reach his goal. The same applies to personal finance. Before someone tries to earn, invest, or save money, it is very important to figure out what he is actually going to do with his money once he has it. Realistic goal-setting is the foundation of financial success. Pace yourself Once a child is old enough to understand the concept of time, Susan introduces chess timers to the game. The chess clock shows the child that he has to think in a planned, systematic fashion, and can’t wait for the last moment to make his move.... Click for more
by Douglas Goldstein | Nov 10, 2015 | Asset Allocation, Financial Strategies, Podcasts |
Discover how asset allocation can help you build your wealth. This week’s financial podcast will help you get started with using this strategy, favored by many experts. Listen to the whole podcast to get details of a free download with crucial information for diversifying your portfolio.... Click for more
by Doug Goldstein CFP® | Oct 1, 2015 | Behavior finance |
In my twenty-plus years as a financial advisor, I have seen too many investors make the same mistake with their money. What is the all-too-common financial mistake? Investors follow their emotions rather than logic. Sometimes emotions can cause you to make a hasty decision. For example, a compelling ad offering a phenomenally high interest rate on a lucrative-sounding investment may play on your desire to make money quickly and easily. As this is what you want, you may fail to remember the old adage, “If it sounds too good to be true, it probably is.” Feelings of greed and excitement make you rush headlong into a bad investment without stopping to think whether it is really what you need. In a different situation, fear of making a loss or a sentimental attachment to a stock (maybe you inherited it) can hold you back from selling a losing stock or buying a better position. Either way, your emotions are standing in the way of logic, causing you to make some fundamental mistakes. The need to learn There is no “one size fits all” approach to either chess or investing. But looking at the common barriers that cause mistakes, understanding basic concepts, and learning about behavioral finance will help you manage your money more easily because you will recognize many pitfalls that you can avoid. To learn how to avoid other common investing mistakes and to understand why some investors are not successful, read this. Douglas Goldstein, co-author of Rich As A King: How the Wisdom of Chess Can Make You A Grandmaster of Investing, avid chess fan, international investment advisor... Click for more
