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20 "New Money Rules" from Forbes
Old 11-28-2011, 11:36 AM   #1
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20 "New Money Rules" from Forbes

I'm amazed at the trite stuff that passes for wisdom in financial magazines. The majority of these new rules are just common sense and common practice for many on here, while some are still a bit stupid.

#2 is a bit stupid as it only considers stocks,
#4, taxes are important, well duh
#12, know your sell rules.....isn't this rebalancing, tax loss harvesting etc.
and #17 contradicts #9


The 20 New Rules Of Money - Matt Schifrin - Forbes
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Old 11-28-2011, 12:00 PM   #2
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There are other contradictions, at least partially. One rule warns against relying on diversification. Another says to "focus on your needs, not beating the index" -- but isn't that part of what diversification intends to do? And yet another suggests using ETFs to expand horizons -- again, isn't that encouraging diversification?

And yeah, the "rule" to not focus on beating the index is at odds with the "it's OK to chase hot money" rule.

The "buy on dips" rule is great as long as you can identify the difference between a short-term speed bump and the start of a long-term downward trend. And wouldn't we all be rich if we could do that?
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Old 11-28-2011, 12:40 PM   #3
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These rules cover all bases, some encourage indexing, some chasing returns and to hell with the inherent contradictions. None are new. When was it ever a bad idea to pay down credit card debt? an argument could be made for having mortgage debt, but may of us have been making extra principal payments on that for a long time too.
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Old 11-28-2011, 02:22 PM   #4
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Man.... I hate the Forbes way of making you go through a bunch of slides....

I think I will pass from now on....


PS... most of these are stupid recommendations IMO....
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Old 11-28-2011, 02:44 PM   #5
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1. Canceled my Forbes subscription. (before da internet)

2. Max auto deduct into IRA, 401k, Roth or whatever is available - my case Bogle's Folley.

3. Live on the rest - don't watch the market watch football. I had no problem being smart and/or dumb with credit cards, mortgage, car payments periodically - when it was time to let the good times roll in New Orleans, I let em roll.

4. When ER time comes -take what you got and cut expenses to within 4% SWR.

heh heh heh - even what I posted is too complicated.
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Old 11-28-2011, 03:23 PM   #6
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Originally Posted by unclemick View Post
1. Canceled my Forbes subscription. (before da internet)

2. Max auto deduct into IRA, 401k, Roth or whatever is available - my case Bogle's Folley.

3. Live on the rest - don't watch the market watch football. I had no problem being smart and/or dumb with credit cards, mortgage, car payments periodically - when it was time to let the good times roll in New Orleans, I let em roll.

4. When ER time comes -take what you got and cut expenses to within 4% SWR.

heh heh heh - even what I posted is too complicated.
Might include:

Choose 50/50 AA in low cost index funds and rebalance, this won't be the optimal solution, but it will get you a long way.

Max out retirement accounts and live off less than you are left with saving the excess for ER.

Don't listen to the Black Friday, Cyber Monday hype, you can live without a 60" LCD TV. Frugality is the best investment.....funny Forbes didn't mention that, but that goes against the consumer dogma of our economy.
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Old 11-28-2011, 04:23 PM   #7
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Quote:
Originally Posted by nun View Post
I'm amazed at the trite stuff that passes for wisdom in financial magazines. The majority of these new rules are just common sense and common practice for many on here, while some are still a bit stupid.

#2 is a bit stupid as it only considers stocks,
#4, taxes are important, well duh
#12, know your sell rules.....isn't this rebalancing, tax loss harvesting etc.
and #17 contradicts #9


The 20 New Rules Of Money - Matt Schifrin - Forbes
I subscribe to the magazine, but I won't renew if they keep publishing gibberish like that. They need to stop wasting my time.
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Old 11-28-2011, 05:06 PM   #8
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Originally Posted by Gearhead Jim View Post
I subscribe to the magazine, but I won't renew if they keep publishing gibberish like that. They need to stop wasting my time.
I feel bad about posting the link as it is such a waste of time, but the banality of it tipped the balance. Sort of like the reason you look at a car wreck.
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Old 11-28-2011, 07:33 PM   #9
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Originally Posted by nun View Post
I feel bad about posting the link as it is such a waste of time, but the banality of it tipped the balance. Sort of like the reason you look at a car wreck.
I wouldn't feel bad about it at all. It's actually reassuring to read something like this from a supposedly high-end magazine and not takeaway anything new.

Thanks for posting.
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Old 11-29-2011, 11:56 AM   #10
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Quote:
Originally Posted by nun View Post
I'm amazed at the trite stuff that passes for wisdom in financial magazines. The majority of these new rules are just common sense and common practice for many on here, while some are still a bit stupid.

#2 is a bit stupid as it only considers stocks,
#4, taxes are important, well duh
#12, know your sell rules.....isn't this rebalancing, tax loss harvesting etc.
and #17 contradicts #9


The 20 New Rules Of Money - Matt Schifrin - Forbes
Agree, but that's just it. To sell magazines, you must appeal to the masses, not the 5% at the end of the bell curve who hang out here.

And since when is "diversification won't save you" a "new" rule? They saw that it didn't save you in late '08/early '09 and now say it's a new rule in retrospect? Wow, that's so insightful of them.
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Old 11-29-2011, 12:21 PM   #11
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It's too bad we don't have a financial pornography thread to dump these articles.
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Old 11-29-2011, 12:23 PM   #12
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Originally Posted by nun View Post
Frugality is the best investment.....funny Forbes didn't mention that, but that goes against the consumer dogma of our economy.
Well, Forbes calls itself "The Capitalists Tool" -- or at least they once did. No self-respecting "capitalist's tool" would suggest not padding the ol' earnings report for their readers' portfolio...
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Old 11-29-2011, 06:11 PM   #13
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The Boglehead's View has been added to their columns but it's not enough to get a subscription renewal out me as I already read the other forum.

heh heh heh - a Boglehead with a medical condition - male, hormones, a few good stocks - reading Forbes other columns might exacerbate my medical condition.
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Old 11-29-2011, 08:37 PM   #14
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"capitalist's tool"
I read that as "capitalist tool"....that's the socialist in me
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Old 11-29-2011, 08:47 PM   #15
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I tread that as "capitalist tool"....that's the socialist in me
[butthead]heh heh, you said "tool"...[/butthead]

Heres' my rules for whatever it is we need rules for:
  1. Save.
  2. Save some more.
  3. It's not hurting yet...
  4. Oh, yeah, invest in low-cost index funds.
  5. I forget...
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Old 11-30-2011, 10:39 AM   #16
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I'm jaded. From my outlook the financial porn is aimed to get investors flocking to brokers.
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