Poker Players Need to Know How to Save

October 9, 2008

Many poker players are afraid to save money in anything other than a regular bank account as they want to be able to get their hands on their money when they need it. However, there are many options out there for the poker player that will offer a way to save and still give you what you want.

Not only that, but poker players usually have cash reserves on hand, which opens up special investments to them that many people cannot take advantage of. These give you high return with less of a risk, and are worth it.

Short-term Municipal bonds are good for those in high tax brackets and give you the tax equivalent gain of 5-10%. They are a safe and short term investment. Promotional Certificates of Deposits are good for giving a 3-4% return on your investment. You can even invest smaller amounts and still get a great return. They are also good for poker players because they are a safe and liquid investment.

Institutional Money Market Funds are good because although they offer little interest, they give you a higher return than regular money market funds. SEP IRA and Keogh Plans act like a traditional IRA, but have much higher limits. They accumulate over the years and are funded pre-tax. This will help you get into a lower tax bracket.

Each of the above options are good because any poker player can use them. They also let poker players have a lot of money that is liquid, which is helpful when wanting to play a game.