Will Ackerman: The Impending Death of the Virgin Spirit
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| Anne about to enter The Void. |
This list of personal finance rules is not a substitute for Andrew Tobias' The Only Investment Guide You'll Ever Need (or even TBTSNBN) but it is really good. Worth reading (I don't agree with everything). My edited (their list has much redundancy) summary list (with my own additions):
- Always Pay Off the Credit Card
- Spend within Your Means
- Prioritize
- Live a Little
- Understand How Emotions Impact Financial Decisions / Understand How to Make Good Financial Decisions
- Recognize the Relationship Between Money and Time
- Never Loan Money to Family or Friends
- "Diversity" in Portfolio Is Overrated
- Don't Project Current Conditions into the Future
The last two are from me. #8 - for example: you are told to hold more in bonds the closer you get to retirement because they are (supposedly) less volatile. But the last few years have shown that not to be true. Our bond funds were down as much as our stock funds but without the upside in good years. We used to have target-date funds, and those suck (not just performance, but also the "management" expenses).
Re: 9: I'm writing this when the markets are hitting irrational highs. (Our couple of shares of Nvidia stock - recommended by our pal Ken - is up more than 1000% on - crazy. Truly crazy.) I wrote TBTSNBN when the market wasn't doing well:
Don’t pay attention to the market. There will be several scary financial times in your life. As an earning adult, I’ve lived through 1987’s Black Monday, the bursting of the tech bubble in 2000, the collapse following 9/11, the Great Recession of 2007-08, the market cataclysm early on in covid, and the current (2022) bear market. The worst thing you can do is react to market conditions. The best thing you can do is keep to your investment schedule no matter what. Some of the best market gains follow the worst declines.
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