-
You can have it
all: no, must have goals and make choices.
-
Get a good job
and you'll be set for life: no, save and invest intelligently.
-
Stocks are risky:
no, stocks are your best bet to beat inflation and taxes.
-
You can't go wrong
with IBM: no, divvy between stocks, bonds, and cash.
-
You can beat the
market: no, focus on holding down your costs.
-
Your investments
will make 10 percent a year: no, be more reasonable.
-
You can't go wrong
with mutual funds: only if low-cost, well diversified.
-
You can find the
next Magellan: look for consistent manager.
-
Index funds are
guaranteed mediocrity: actually, they're the top
choice.
-
Nothing's safer
than money in the bank: inflation & taxes eat,
get money market
-
If you need income,
buy bonds: they're volatile, tax-inefficient, hard
to trade.
-
Hedge your bets
with hard assets: expensive, hard to trade, poor
performers.
-
You should own
a balanced portfolio: now both halves driven by int.
rates.
-
You need a broker:
no-load mutual funds, no-load stocks, fee only planners.
-
Keep six months
of emergency money: 3 months is plenty, put rest
in stocks.
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Debt is dangerous:
use margin accounts, home equity, retirement plans.
-
Buy the biggest
house possible: take shorter mortgage or make extra
payments.
-
You can't beat
the mortgage-tax deduction: it's still costing, put
in money mkt.
-
Invest in your
house: home improvements are a guaranteed money loser.
-
Trade up as soon
as you can: real-estate transaction costs are too
high.
-
Protect against
every disaster: buy broad protection against catastrophic
loss.
-
Life insurance
is a good investment: too expensive, rotten way for
money to grow.
-
Invest in your
kid's name: you lose control, wreck financial aid
chances.
-
Max out your IRA
every year: money locked up until age 59.5 and tax
issues.
-
One day, kids,
all of this will be yours: live 20-25 years more
and need the money.
