Advice to Avoid
Clements warns against some common financial advice targeted at young people that may not be in their best interest.
- Create a 6 month emergency fund.
- Buy the biggest house possible.
- Buy cash value life insurance.
- Invest in all or almost all equities.
On the positive side he does recommend
- Funding 401K
- Eliminating credit card debt
- Buy term life insurance
- Start with a 60/40 portfolio and ride that through a bear market before deciding to invest more aggressively.
I would add ensuring you have heath and disability coverage since future earnings are your most important asset.
This entry was posted by David on July 9, 2007 at 11:16 pm, and is filed under Investing. Follow any responses to this post through RSS 2.0.Responses are currently closed, but you can trackback from your own site.