Some wise personal finance advice
What’s the best personal finance advice you’ve ever gotten? Bankrate.com asked eight financial experts that same question. What did they say?
These experts provided good advice. For example, Gary Belsky wrote, “Be afraid when people are greedy, and greedy when people are afraid. It’s basically, ‘Buy low and sell high.’ In general, I’ve been doing better than market averages when I’ve been handling my investments.” This is very good advice–a solid portfolio of index funds over a significant period of time will almost always be more successful than a portfolio of rapidly changing stocks. Especially after taxes.
Robert Kiyosaki also shared some great advice: “My rich dad gave me lots of advice. One of the better ones: There’s good debt and bad debt. Bad debt is debt you have to pay for and makes you poor … Good debt makes me rich and someone else pays for it.” It’s okay to sometimes have debt, as long as it is the right kind of debt. If you are borrowing money to buy sun glasses, then you are taking on bad debt. However, borrowing money to get a quality house or to pay for education can be a very good investment.
Check out all of the advice in this article, but make sure you read the advice of Peter Navarro: “Take every piece of advice you get from any investment adviser with a barrel of salt.” People are individuals, and not every piece of advice is appropriate for every person. Whether you’re investing in P2P loans on Lending Club or buying stocks and bonds, make sure that your investment plan makes sense for you based on your own particular situation.
Wednesday, November 14th, 2007 at 9:52 am