“Learning From the Game: Poker and Personal Finance - PokerListings.com” plus 3 more |
- Learning From the Game: Poker and Personal Finance - PokerListings.com
- Harry Gross: Personal-finance record could come in ... - Philadelphia Daily News
- Eileen Ambrose: Personal Finance - baltimoresun.com - Baltimore Sun
- Terry Savage biography :: - Chicago Sun-Times
| Learning From the Game: Poker and Personal Finance - PokerListings.com Posted: 24 Mar 2010 12:55 PM PDT By: Jason Kirk Success at the poker table usually allows you spend a fair bit of money buying toys. But after you've got all the flat-screen TVs, iPods and laptops you could want, what's next? Several experts with ties to both the financial and poker industries say poker players can always apply the tenants of good personal finance to come out ahead of the game. And by following a few basic rules of thumb that apply to both poker and personal finance, poker players can make the transition to managing their own money more effectively. Most players understand that having a long-term goal, such as moving up in stakes or winning a major tournament, can help a player focus and play better poker. Jim Wang, the man behind the financial community at Bargaineering.com, says setting up a major financial goal to work towards is similarly key to staying motivated enough to do the hard work that goes into successfully managing your finances. Just as important as those big goals, though, is having smaller ones to meet along the way. If you're looking to buy a house, Wang says you'll want to focus on monthly savings goals so you can have a sense of accomplishment along the long path to buying your own home. In poker and finance, there will always be days when things don't go your way. Whether it's taking on sudden unexpected expenses due to a leaking roof or learning that your Toyota stock unexpectedly tanked when someone's Prius decided to run away, Wang says being able to look at your success in meeting small goals can help ease the pain of temporary setbacks by giving you perspective and keeping you focused on the long term. One of the most fundamental aspects of winning poker is getting value out of your hands by getting your money in the pot when you're getting the right price. If you're constantly calling pot-sized bets with flush draws, chances are you'll go broke pretty quickly. But if you're tagging along when your opponents bet too small, you'll find yourself winning over the long run. Wang says that concept translates directly to the financial world in the form of value investing, where you put your money into stocks that are underpriced compared to their book value. For instance, if the book value of a company is $1 per share and it's currently trading for $.80 per share, generally speaking, that's where you want to put your money. Looking for value is what allowed billionaire banker and world-class Limit Hold'em ace Andy Beal to become one of a small handful of Americans to actually increase his net worth during the current recession. By picking up what he recognized as underpriced assets during a market downturn, Beal was able to reap the benefits to the tune of more than $1 billion while everyone else was running scared. Amy Calistri, the co-author of Check-Raising The Devil and editor of the StreetAuthority.com investment newsletter, who covered Beal's heads-up matches against Ted Forrest, says there's no difference between his strategy and what any non-billionaire investor can do by digging around and looking for the kind of deals that others may pass up. While there are some poker savants who don't have to worry about things like reading up on poker strategy and reviewing their own play, for the rest, these can be the very foundation of long-term success in the game. If you're putting in your time at the tables and staying sharp by constantly reviewing your play to fix your leaks, a solid win rate will follow. Similarly, Calistri says investing is about more than just picking a stock and waiting for the price to go up. Time spent studying all the available data are what allow you to determine whether you're going to be getting good value. Likewise, studying your results will help you to incorporate what you've learned from experience into refined strategies and experience is the difference between mediocre returns and true success. "The same instincts that tell you whether a trade is going to be good are the same instincts that tell you whether your hand is good or bad," says Dan Shak, a hedge fund manager by day and tournament poker champion by night. "It's a feeling that says, 'I've been here before, I've felt like this before, this is what happened before.'" In another parallel with poker, Calistri says the Internet has made becoming a successful investor much easier than it used to be, simply because there's so much information out there to help you learn and make good decisions. "Mom and pop investors can get access to all the SEC reports that every company files, and they can go through detailed statistics," she said. "There's much more information out there than there was even five or ten years ago. Sites that do detailed calculations for you, or compare companies - those just didn't exist before." Once a strategy is developed, the need to stay disciplined is important in poker and investing. Shak says getting too emotional can lead to making bad decisions, which in turn can lead to going broke. "I try to keep my highs not too high and my lows not too low," he said, of both poker and running a hedge fund. "I just assume that successes are temporary. I never take anything for granted." That realism means even though Shak cashed in the first five major events he played this year, including a January heads-up win over Phil Ivey in the Aussie Millions $100,000 Challenge, he doesn't assume he's going to continue cashing at the same pace. "I know that the chance of making the money in any event is generally 10 percent," he says. "So even if I cash in five tournaments in a row, I still have a 10 percent chance for the next one." Discipline is also as important when it comes to your own finances, says Wang. Diversifying your investments can work like bankroll management does in poker, by limiting the effects of variance and keeping a downswing in one investment from affecting your entire portfolio. And much like poker, early success can sometimes be a bigger long term problem than early failure, if you lose your discipline and develop bad habits as a result. "Every investor thought they were a genius in the mid-to-late 1990s with all the tech stocks going up, like an online poker player who starts off on a lucky streak and doesn't recognize it for what it is," said Calistri. Only by keeping a critical eye on your results can you avoid making those kind of mistakes and by continuing to do the legwork necessary for making good investment decisions, Calistri says you are more likely to repeat your successes. Plus, even when you fail - and just like in poker, there will be moments of failure - You can learn from your experience and improve your future results.
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| Harry Gross: Personal-finance record could come in ... - Philadelphia Daily News Posted: 24 Mar 2010 10:46 AM PDT Dear Harry: I just saw a magazine article in which the author indicated that in the majority of business bankruptcies, failure to keep adequate or proper records was a major factor in the bankruptcy. Does this also apply to individuals? For years, I have been urging my husband to keep better records of what we spend and save. We are not in trouble (that I know of), but I think I now have a glimmer of hope since a good friend just filed for bankruptcy. How would you suggest I go about getting started? What Harry says: I don't have any authoritative figures for the effect of poor records on individual bankruptcies, but I feel certain that they're pretty high. The best place to start is with your 2009 tax return. Make a list of all the income you receive by category (salaries, interest, dividends, etc.) Then list your actual expenditures by category. I used the word expenditures rather than expenses because some expenditures are not expenses. The most common example would be mortgage payments that are part principal. So are furniture payments. This type of cash-flow statement will help to show where you may be spending too much. Then you should list your assets at about current value. Finally, you should list your liabilities, including both those due in the near future and those due over a longer period. The excess (I hope) of the assets over your liabilities is what you're worth. It's a good idea to do this annually right after you file your tax return. If you have trouble getting all these numbers, estimate them for now, but make a habit of keeping daily records for 2010. If you'd like a more formal approach, you can easily get forms you can fill in by a download from the Internet. Write Harry Gross c/o the Daily News, 400 N. Broad St., Philadelphia, PA 19130. Harry urges all his readers to give blood - contact the American Red Cross at 800-GIVE LIFE. Five Filters featured article: Chilcot Inquiry. Available tools: PDF Newspaper, Full Text RSS, Term Extraction. |
| Eileen Ambrose: Personal Finance - baltimoresun.com - Baltimore Sun Posted: 24 Mar 2010 03:23 AM PDT The Baltimore Sun's Eileen Ambrose has been writing on taxes, retirement, saving for college and other personal finance issues since 1999. Got questions? She'll try to find answers. She also contributes to the blog Consuming Interests. March 23, 2010 Higher interest, but a catchThe interest you earn on your checking account might be so low that you don't even notice it. But some banks and credit unions are now paying generous rates - with a slight catch, of course. March 21, 2010 Student loan industry's 'takeover' by federal government is overdueThe federal student loan program has gone through many changes in its 45-year history, and now it's time for the next big step: cutting out the middleman.  March 16, 2010 Struggling to pay taxes? The IRS is here to helpThe tax deadline is a month away, and the Internal Revenue Service wants you to know that it's going to lighten up. March 14, 2010 PERSONAL FINANCE Build a better 401(k)The fastest-growing segment of the population these days: centenarians. March 9, 2010 February was standout month for dividendsAfter two of the worst years ever for dividends, payouts to shareholders are making a comeback. March 7, 2010 Marylanders joining Move Your Money campaignA nationwide campaign to stick it to the big banks seems to have caught on with consumers who are withdrawing their money and moving on.  March 2, 2010 Legislation would shine light on tax refund loansTax season is upon us, and some filers literally can't wait. February 28, 2010 Consumer's quest for refund shines a light on ID theftDeborah Tewey unwillingly joined a large and fast-growing club: victims of identity fraud. February 23, 2010 Con artists target folks desperate for workCon artists have the canny ability to home in on what we are most concerned about and then exploit it for their own gain. Right now, it's jobs. February 21, 2010 As consumer reforms roll out, beware new credit card company feesCredit card issuers are going to have to play by a whole new set of rules that take effect Monday and are considered consumer-friendly - but will also cut into some of their traditional sources of revenue. February 16, 2010 Don't dawdle on college aid requestsColleges are bracing for another year of high demand for financial aid - and that means students need to get their applications in as quickly as possible. February 14, 2010 All you need is loveCouples this Valentine's Day will exchange cards, kisses and - if they're really serious - chocolates. Why not credit reports? February 9, 2010 How protected are you from snow damage?With 2 feet of snow this past weekend and more flakes forecasted, many homes in the Baltimore area are likely to end up with some weather-related damage.  February 7, 2010 PERSONAL FINANCE Rife with mythThe U.S. tax code is massive and complicated - the perfect fodder for myth-making.  January 31, 2010 Tax breaks 101This may be the tax season where even die-hard do-it-yourselfers break down and hire a preparer or at the very least invest in some tax software. January 26, 2010 Look out for confusion over end of estate taxThe one-year suspension of the federal estate tax may be a bit of good news for the bereaved - but it also could upend some careful estate planning. January 24, 2010 Personal finance Beware of bursting bubblesIn the aftermath of the 2008 stock market crash that wiped out retirement accounts, nervous investors stampeded for cover and poured a record number of dollars into bond mutual funds last year.  January 19, 2010 Personal finance Your rights and what to do when debt collector callsWhen a leading debt collections law firm that had been accused of breaking consumer protection laws collapsed in Maryland last week, debtors searched for answers about what Mann Bracken LLP's demise would mean for them. January 17, 2010 Personal finance It's raining reformsThe credit card industry will undergo its most sweeping overhaul in history when new regulations kick in next month.  January 12, 2010 Personal finance Filers, beware: Pick your tax preparer wiselyThe days are numbered for paid tax preparers who don't understand tax law - or intentionally flout it - yet file returns anyway, leaving the taxpayer to suffer the consequences. January 10, 2010 Personal finance Is the Roth right for you?The buzz in the financial industry right now: Roth IRA conversions. January 5, 2010 Personal finance Be careful dealing with debt settlement firmsThe number of debt-settlement companies nationwide has grown into the thousands as more strapped consumers are turning to them to help wipe away debt. January 3, 2010 Personal finance Turn the lights out on the 'aughts'The first decade of the new millennium is now over and most of us might say, "Good riddance." December 27, 2009 Personal finance No estate tax for a year? Don't count your blessingsJust a few weeks ago, it was unthinkable that Congress would allow the federal estate tax to temporarily disappear next year. October 11, 2009 PERSONAL FINANCE Danger: Low inflationInvestors and economists worry about higher inflation, but the more immediate concern is inflation that's flat or even negative. February 1, 2009 Eileen Ambrose: Tips to help you save some of your moneyGather your W-2, charitable receipts and investments statements. Tax season is here. Copyright © 2010, The Baltimore Sun Five Filters featured article: Chilcot Inquiry. Available tools: PDF Newspaper, Full Text RSS, Term Extraction. |
| Terry Savage biography :: - Chicago Sun-Times Posted: 24 Mar 2010 09:56 AM PDT
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