Not to quibble too much, but I would put saving as number one. Pay yourself
first; how you diversify those savings comes second.
Let me add- pay the Lord first. Everything else will follow.
I'm ok with promoting policies to help when things go wrong.I'm not ok forcing people to pay for the wrong choices made by others.
Now if we can get a copy of this card to the following:CongressSenatePresidentVice PresidentEvery US citizenFederal
ReserveThe trouble is, it's too simple and makes sense and it
makes people have responsibility for themselves. In this day of entitled know it
all, and the government will bail you out because you are too big to fail or to
poor to fail mentality.....The best thing is to allow people to
fail. They will learn very quickly how to get themselves back up. We always
do.But for those who will heed this advice will be able to retire
young and enjoy the golden years and live like no one else, because they lived
like no one else. (I stole that from Dave Ramsey).
I don't see anything about having an emergency fund which is something
every person so have.
greatbam22: how about "Save 20% of your money"?
My relatives in Nevada might add the following to the card: No gambling!
There is always risk. So how long until the collapse. You have to give your
money to only get penney's on the dollar.
The idea that individual shouldn't own individual stocks is overly
simplistic. Owning individual stocks can give you great tax and estate planning
advantages, enhance one's ability to maximize the value of charitable
gifts, and gives investors flexibility to tailor a portfolio to match one's
inflation and risk profile (e.g. if you have natural exposure to health care
cost inflation, energy cost inflation because of where you live, family history,
etc.).It takes work, but most things that are valuable and
worthwhile often require effort that most people are unwilling to do.p.s. Owning individual stocks does not have to be speculative. If one's
portfolio is of even modest size, it can be done with adequate diversification
and without much more risk that an indexed portfolio. And it can be very