I saw a recommendation for "The Intelligent Asset Allocator" by William Bernstein and checked it out of the library. It's supposed to be (with "A Random Walk Down Wall Street" by Burton Malkiel) one of the essential books on investing.
Bernstein wrote two later books on asset allocation. In the …
Asset allocation is the idea that, by combining different classes of assets, you can greatly reduce the amount that your portfolio fluctuates up and down. You get increased stability and safety, probably at the expense of some gains.
For instance, if you invest only in Google stock, you'll have the …
Your next job is to max out your retirement accounts. You should do this (with one exception) after all your debts are paid off.
The one exception is when you have a 401k plan with your employer and your employer will match your contributions. This is free money, which is …
You are Superman, and debt is your Kryptonite. If you're already Financially Competent(or think you are) you can probably come up with a dozen situations where debt is actually a good idea. In some of them, you'd actually be right. But if you're Financially Competent enough to use debt …
There are two essential responsibilities you'll have to take care of on your road to Financial Competence. One will apply to everyone; the other may not depending on your situation.
The first essential responsibility is to have an Emergency Fund -- a cash cushion to handle emergencies. These emergencies include house …
My wife and I missed our savings goals this December, primarily because of Christmas Gifts. We're not proud of that -- and from now on, only people in the family who are under 18 get presents. Grown-ups can buy their own toys.
My wife came up with the idea of limiting …
The most important part of investment is increasing your saving rate. Someone who saves 30% of his income but invests with mediocre returns will be far better off than someone who invests 10% of his income brilliantly.
The chief gurus of the "Save More Money" movement are Jacob of Early …
This is step one in the plan for Financial Competence because all else depends on it. You can not be financially competent if you don't know how much you're earning, how much you're spending, and what you're spending it on.
Some financial advisers suggest you create a budget and try …
After getting married, I discovered a newfound interest in financial planning and financial matters in general. Prior to getting married, I was content to put a little cash away each month in an automatic transfer to an IRA. As long as my income slightly exceeded my expenses, I was content …