Sir John Templeton: “Invest at the point of maximum
pessimism.”
#2
Don’t mistake a low P/E ratio for a value stock.
#3
Benjamin Graham: “Patience is the fund investor’s single most
powerful ally.”
#4
Let your attorneys ride shotgun, but not in the driver’s seat.
#5
Remember Enron; reduce your employer’s company stock in
your 401(k).
#6
Warren Buffett: “Rule No. 1 is never lose money. Rule No. 2 is
never forget Rule No. 1!”
#7
Fund a Roth IRA if you’re eligible; your money grows tax free
for retirement, and in an emergency you can take your
contribution back without penalty.
#8
Barry Sternlicht: Pay attention to the big themes, because they
are what will help you earn ten times your money.
#9
Back a friend or relative’s startup with a convertible loan, so
you share in the upside.
#10
Use commodities as a hedge against inflation.
#11
Raise the deductibles on your auto and home insurance.
#12
Form family limited partnerships to transfer assets at a tax
discount.
#13
Beat death taxes in 20 states by making big gifts while you’re
alive.
#14
For simple federal tax-free wealth transfer, make $14,000
annual gifts to children and grandchildren. It won’t cut into
your $5.25 million lifetime exemption from gift and estate
taxes.
#15
Get tax advice before settling a lawsuit.
#16
Read Reminiscences of a Stock Operator by Edwin LeFèvre.
#17
To keep peace with both relatives and the IRS, document all
family loans.
#18
Peter Lynch: “Never invest in any idea you can’t illustrate
with a crayon.”
#19
View collecting as a hobby first and investment second;
psychic returns can make up for a lower average return than in
stocks.
#20
Add a personal items floater to your homeowner’s insurance to
cover collectibles.
#21
When the bear charges, stand your ground.
#22
For protection from inflation and currency devaluation, buy
the “gold you can eat”—farmland.
#23
Know your risk tolerance. Pick an asset allocation that lets you
sleep at night, so you won’t panic and sell stocks at the
bottom.
#24
Don’t keep too much in cash equivalents—over time, this
“safe” investment barely keeps up with inflation.
#25
After setting an asset allocation, rebalance yearly; it forces
you to take profits when stocks have surged and to buy more
shares when they’re cheap.
#26
Benjamin Graham: “Adopt simple rules and stick to them.”
#27
Buy Bitcoin as a speculation or political statement, not a
hedge.
The Forbes E-book On Bitcoin
Secret Money: Living on Bitcoin in the Real World, by Forbes
staff writer Kashmir Hill, can be bought in Bitcoin or legal
tender.
#28
Be a tax-smart investor. Hold taxable bonds in a 401(k) or IRA.
Put individual stocks in taxable accounts so you can sell losers
to harvest tax losses.
#29
Pay attention to the IRS’ wash sale rule when harvesting
capital losses.
#30
Don’t invest in a hedge fund unless its audited results are
reported in compliance with Global Investment Performance
Standards.
#31
Build an emergency fund outside your 401(k).
#32
For the biggest tax break when donating collectibles to
charity, make sure they’ll be displayed and not sold.
#33
Put alternative investments like real estate (but never
collectibles) in your IRA.
#34
Burton Malkiel: “All index funds are not created equal. Some
have unconscionably high expenses.”
#35
Keep an eye on—but don’t obsess over—mutual fund fees and
expenses.
#36
Even committed indexers should use actively managed funds
to buy municipal and high-yield bonds and value stocks.
#37
Yield is nice, but total return is the metric that matters.
#38
Gold is overrated as an inflation hedge—historically, its price
moves are unrelated to inflation.
#39
For inflation protection, buy floating-rate corporate bonds.
#40
Don’t let the mood swings of Mr. Market coax you into
speculating.
#41
Beware affinity fraud; find God, not hot investments, at your
church, synagogue or mosque.
#42
Sir John Templeton: “The four most dangerous words in
investing are: ‘this time it’s different.’”
#43
Don’t put more than you can afford to lose into a crowdfunded
deal; startups are always risky, and the new JOBS Act reduces
both paperwork and investor protection.
#44
Don’t underrate the importance of liquidity.
#45
Use Quicken or a Web service to track all your finances and
see your big picture.
#46
Use different passwords for each of your online financial
accounts; add optional security questions whose answers can’t
be found in your Facebook or LinkedIn profiles.
#47
Write down your passwords and hide them; tell one person
where they are.
#48
Don’t fight demographics—allocate a portion of your portfolio
to health care and biotech stocks.
#49
Diversify globally to boost your portfolio’s risk-adjusted
performance.
#50
Benjamin Graham: “Speculation is neither illegal, immoral nor
(for most people) fattening to
the pocketbook.”
#51
Cash in on companies with stealth dividends—meaning stock
buybacks.
#52
Diversify, but don’t overdo it.
#53
Set investing rules for yourself that block impulsive decisions.
#54
Look beneath a fund’s name, with Morningstar’s Style Box
and X-ray.
#55
Use software to track your asset allocation.
#56
Ask for a “brokerage window” in your 401(k)—an opening
that allows you to invest in any mutual fund and even
individual stocks.
#57
Bond laddering is good, but diversifying your income
investments is important, too.
#58
Treasury Inflation-Protected Securities (TIPS) offer protection
from inflation— not from rising interest rates.
#59
John Bogle: “Time is your friend. Impulse is your enemy.”
#60
Use salary increases to boost contributions to your 401(k).
#62
Defy conventional wisdom and increase your stock allocation
after retirement.
#63
To make money in small-cap stocks, look for novel business
methods and niches, not the next blockbuster drug.
#64
Don’t abdicate investment decisions to your spouse.
#65
Be suspicious—and investigate further—when a corporation
changes its auditors.
#66
Carry a $2 million or bigger umbrella insurance policy to
protect your wealth from liability suits.
#67
Warren Buffett: “Be fearful when others are greedy, and be
greedy when others are fearful.”
#68
Invest to meet goals, not to beat indexes.
#69
Clarify your own objectives by writing an Investment Policy
Statement.
#70
When you get restricted stock in a startup, make an 83(b)
election; if the company takes off, you’ll save big on taxes.
#71
Consider your marriage tax penalty (or bonus) before setting a
wedding date.
#72
Aim to have five times your salary in your 401(k) and IRAs by
age 55 and eight times before you retire.
#73
Dan Ariely: “If you can’t save money, be really nice to your
kids.”
#74
Putpeer-to-peer loans in your portfolio using sites like
LendingClub.com for monthly cash flow and yields of from
7% to 9%.
#75
Peter Lynch: “Go for a business that any idiot can run—
because sooner or later, any idiot is probably going to run it.”
#76
Never take on a mortgage just for the tax deduction.
#77
Keep no more than $250,000 in any one bank.
#78
Buy an index fund weighted to fundamentals.
#79
Remain anonymous after winning the Powerball jackpot.
#80
Work for a charity for ten years and get your federal student
debt forgiven.
#81
Beware personal finance gurus pitching products.
#82
The most successful investors spend many hours at it each day
and have passion and patience. There are no shortcuts.
#83
Warren Buffett: “Diversification is protection against
ignorance.”
#84
Like Captain Kirk, have advisors from different planets.
#85
Before funding college accounts make sure you’re saving
enough in your retirement accounts.
#86
To avoid a tax penalty, tap IRAs, not 401(k)s, to pay college
tuition.
#87
Borrow from grandma at 4% for grad school; Uncle Sam’s
Graduate Plus loans go for 6.41%.
#88
Marry a billionaire, or perhaps even more rewarding, divorce
one.
#89
When buying a luxury condo, ignore superfluous amenities
like massage rooms and pet spas; they won’t contribute to
resale value.
#90
Add commercial real estate to your portfolio.
#91
Wait for inflation to rise before buying TIPS.
#92
Howard Marks: “Rule number one: Most things will prove to
be cyclical. Rule number two: Some of the greatest
opportunities for gain and loss come when other people forget
rule number one.”
#93
Before remarriage, discuss estate plans.
#94
Track gambling losses to offset taxable gambling winnings.
#95
Confess any tax crimes to a lawyer, not a CPA.
#96
Deduct your yacht loan as mortgage interest on a second
home.
#97
Don’t do deals between yourself and your own IRA.
#98
Don’t roll your old 401(k) into an IRA if you might face a
lawsuit.
#99
When creating a trust or family limited partnership for asset
protection, don’t give it your own name or one obviously
identified with you.
#100
Profit from stock market volatility: Buy into a VIX futures
fund and use wild, seemingly irrational swings as buying
opportunities.
#101
Gary Shilling: “The market can remain irrational longer than
you can remain solvent.”
#102
Beware dividend traps—fat payouts supported by declining
cash flow.
#103
Bet against weak currencies, like George Soros.
#104
Back up your financial records using a secure cloud service.
#105
Before investing in your own state’s 529, compare its fees and
tax breaks to New York’s rock-bottom cost plan.
#106
Buy liens on homes of real estate tax deadbeats.
#107
Know thyself: Read books like Dan Ariely’s Predictably
Irrational and Your Money & Your Brain by Jason Zweig.
#108
Learn a lesson from each stock-picking mistake.
#109
Julian Robertson: “Buy into forgotten markets.”
#110
Join an angel investing club.
#111
Keep your own entrepreneurial options open by refusing to
sign onerous noncompete agreements.
#112
Buy stocks of companies still controlled by their billionaire
founders.
#113
Leon Black: Do your homework, but still don’t bet the ranch.
#114
Louis Bacon: “As a speculator you must embrace disorder and
chaos.”
#115
Almost all great value investors look for market anomalies or
disconnects that they can exploit.
#116
Warren Buffett: “Big opportunities come infrequently. When
it’s raining gold, reach for a bucket, not a thimble.”
#117
Always keep some investment powder dry.
#118
Allocate investments against your life risks.
#119
Andrew Tobias: “A penny saved is two (pretax) pennies
earned.”
#120
Deduct losses from your sideline/hobby by bunching your
expenses and showing a small profit in 3 of 5 years.
#121
Postpone real estate gains tax with a 1031 exchange.
#122
Qualify as a “real estate professional” to save big on taxes.
#123
Be leery of investments sold for tax savings.
#124
Burton Malkiel: “Start saving now, not later: Time is money.”
#125
Before making a big discretionary purchase, calculate future
cost—what the dollars you’re spending could grow to if
invested for 20 or 30 years.
#126
Read How to Make Money in Stocks by William J. O’Neil.
#127
Buy designer goods at consignment shops; when you get
bored with them, sell for a profit on eBay.
#128
Discuss any prenuptial agreement way in advance of your
wedding.
#129
Hell hath no fury. Never cheat on your taxes and your spouse
at the same time— exes are a big source of IRS leads.
#130
Don’t buy a large amount of a thinly traded stock all at once.
#131
Buy and hold at your own risk.
#133
Don’t be afraid to buy into strength.
#134
It’s okay to chase performance—sometimes.
#135
Burton Malkiel: “In the stock market, past is not prologue.”
#136
Start a 529 college savings plan for yourself before you have
children. If you don’t use it for graduate school, transfer it to
your kid.
#137
Make your kid rich by helping him fund a Roth IRA.
#138
Deplete Junior’s UTMA—you can spend it on a laptop, camps,
private school and tutoring—before applying for college
financial aid.
#139
Reduce your student loan interest rate with auto debit.
#140
Julian Robertson: Suggest your kid take an accounting course
—“It was the course that helped me more than anything.”
#141
Robert Shiller: “If you want to get rich, go into finance or a
related field. Finance is the technology for making things
happen.”
#142
Identify companies that gouge you yet keep your business.
Buy them.
#143
Buy stocks like socks—good quality on sale.
#144
Buy into big ideas just like a global macro hedge fund for as
little as $1,000 to start.
#145
Use limit orders when buying small-company stocks with low
trading volume.
#146
Don’t leave it all in the dollar. Invest globally for currency
diversification.
#147
Dollar-cost average the whole stock market.
#148
Buy companies with high ratios of gross profits-to-total assets.
#149
John Neff: “Buy on the cannons and sell on the trumpets.”
#150
Monitor your individual stocks; set a Google news alert and
watch for signs of possible trouble.
#151
Bone up on “risk parity” diversification.
#152
Always know how a financial advisor is getting paid and what
if any commissions she’ll earn.
#153
Watch out for paid shills at investment seminars.
#154
Ken Fisher: “You know who didn’t have bad years? Bernard
Madoff—until he got caught.”
#155
Buy a retirement annuity cheap by delaying Social Security
until 70.
#156
If you need to tap retirement cash early, study up on the
exceptions that let you avoid h
pessimism.”
#2
Don’t mistake a low P/E ratio for a value stock.
#3
Benjamin Graham: “Patience is the fund investor’s single most
powerful ally.”
#4
Let your attorneys ride shotgun, but not in the driver’s seat.
#5
Remember Enron; reduce your employer’s company stock in
your 401(k).
#6
Warren Buffett: “Rule No. 1 is never lose money. Rule No. 2 is
never forget Rule No. 1!”
#7
Fund a Roth IRA if you’re eligible; your money grows tax free
for retirement, and in an emergency you can take your
contribution back without penalty.
#8
Barry Sternlicht: Pay attention to the big themes, because they
are what will help you earn ten times your money.
#9
Back a friend or relative’s startup with a convertible loan, so
you share in the upside.
#10
Use commodities as a hedge against inflation.
#11
Raise the deductibles on your auto and home insurance.
#12
Form family limited partnerships to transfer assets at a tax
discount.
#13
Beat death taxes in 20 states by making big gifts while you’re
alive.
#14
For simple federal tax-free wealth transfer, make $14,000
annual gifts to children and grandchildren. It won’t cut into
your $5.25 million lifetime exemption from gift and estate
taxes.
#15
Get tax advice before settling a lawsuit.
#16
Read Reminiscences of a Stock Operator by Edwin LeFèvre.
#17
To keep peace with both relatives and the IRS, document all
family loans.
#18
Peter Lynch: “Never invest in any idea you can’t illustrate
with a crayon.”
#19
View collecting as a hobby first and investment second;
psychic returns can make up for a lower average return than in
stocks.
#20
Add a personal items floater to your homeowner’s insurance to
cover collectibles.
#21
When the bear charges, stand your ground.
#22
For protection from inflation and currency devaluation, buy
the “gold you can eat”—farmland.
#23
Know your risk tolerance. Pick an asset allocation that lets you
sleep at night, so you won’t panic and sell stocks at the
bottom.
#24
Don’t keep too much in cash equivalents—over time, this
“safe” investment barely keeps up with inflation.
#25
After setting an asset allocation, rebalance yearly; it forces
you to take profits when stocks have surged and to buy more
shares when they’re cheap.
#26
Benjamin Graham: “Adopt simple rules and stick to them.”
#27
Buy Bitcoin as a speculation or political statement, not a
hedge.
The Forbes E-book On Bitcoin
Secret Money: Living on Bitcoin in the Real World, by Forbes
staff writer Kashmir Hill, can be bought in Bitcoin or legal
tender.
#28
Be a tax-smart investor. Hold taxable bonds in a 401(k) or IRA.
Put individual stocks in taxable accounts so you can sell losers
to harvest tax losses.
#29
Pay attention to the IRS’ wash sale rule when harvesting
capital losses.
#30
Don’t invest in a hedge fund unless its audited results are
reported in compliance with Global Investment Performance
Standards.
#31
Build an emergency fund outside your 401(k).
#32
For the biggest tax break when donating collectibles to
charity, make sure they’ll be displayed and not sold.
#33
Put alternative investments like real estate (but never
collectibles) in your IRA.
#34
Burton Malkiel: “All index funds are not created equal. Some
have unconscionably high expenses.”
#35
Keep an eye on—but don’t obsess over—mutual fund fees and
expenses.
#36
Even committed indexers should use actively managed funds
to buy municipal and high-yield bonds and value stocks.
#37
Yield is nice, but total return is the metric that matters.
#38
Gold is overrated as an inflation hedge—historically, its price
moves are unrelated to inflation.
#39
For inflation protection, buy floating-rate corporate bonds.
#40
Don’t let the mood swings of Mr. Market coax you into
speculating.
#41
Beware affinity fraud; find God, not hot investments, at your
church, synagogue or mosque.
#42
Sir John Templeton: “The four most dangerous words in
investing are: ‘this time it’s different.’”
#43
Don’t put more than you can afford to lose into a crowdfunded
deal; startups are always risky, and the new JOBS Act reduces
both paperwork and investor protection.
#44
Don’t underrate the importance of liquidity.
#45
Use Quicken or a Web service to track all your finances and
see your big picture.
#46
Use different passwords for each of your online financial
accounts; add optional security questions whose answers can’t
be found in your Facebook or LinkedIn profiles.
#47
Write down your passwords and hide them; tell one person
where they are.
#48
Don’t fight demographics—allocate a portion of your portfolio
to health care and biotech stocks.
#49
Diversify globally to boost your portfolio’s risk-adjusted
performance.
#50
Benjamin Graham: “Speculation is neither illegal, immoral nor
(for most people) fattening to
the pocketbook.”
#51
Cash in on companies with stealth dividends—meaning stock
buybacks.
#52
Diversify, but don’t overdo it.
#53
Set investing rules for yourself that block impulsive decisions.
#54
Look beneath a fund’s name, with Morningstar’s Style Box
and X-ray.
#55
Use software to track your asset allocation.
#56
Ask for a “brokerage window” in your 401(k)—an opening
that allows you to invest in any mutual fund and even
individual stocks.
#57
Bond laddering is good, but diversifying your income
investments is important, too.
#58
Treasury Inflation-Protected Securities (TIPS) offer protection
from inflation— not from rising interest rates.
#59
John Bogle: “Time is your friend. Impulse is your enemy.”
#60
Use salary increases to boost contributions to your 401(k).
#62
Defy conventional wisdom and increase your stock allocation
after retirement.
#63
To make money in small-cap stocks, look for novel business
methods and niches, not the next blockbuster drug.
#64
Don’t abdicate investment decisions to your spouse.
#65
Be suspicious—and investigate further—when a corporation
changes its auditors.
#66
Carry a $2 million or bigger umbrella insurance policy to
protect your wealth from liability suits.
#67
Warren Buffett: “Be fearful when others are greedy, and be
greedy when others are fearful.”
#68
Invest to meet goals, not to beat indexes.
#69
Clarify your own objectives by writing an Investment Policy
Statement.
#70
When you get restricted stock in a startup, make an 83(b)
election; if the company takes off, you’ll save big on taxes.
#71
Consider your marriage tax penalty (or bonus) before setting a
wedding date.
#72
Aim to have five times your salary in your 401(k) and IRAs by
age 55 and eight times before you retire.
#73
Dan Ariely: “If you can’t save money, be really nice to your
kids.”
#74
Putpeer-to-peer loans in your portfolio using sites like
LendingClub.com for monthly cash flow and yields of from
7% to 9%.
#75
Peter Lynch: “Go for a business that any idiot can run—
because sooner or later, any idiot is probably going to run it.”
#76
Never take on a mortgage just for the tax deduction.
#77
Keep no more than $250,000 in any one bank.
#78
Buy an index fund weighted to fundamentals.
#79
Remain anonymous after winning the Powerball jackpot.
#80
Work for a charity for ten years and get your federal student
debt forgiven.
#81
Beware personal finance gurus pitching products.
#82
The most successful investors spend many hours at it each day
and have passion and patience. There are no shortcuts.
#83
Warren Buffett: “Diversification is protection against
ignorance.”
#84
Like Captain Kirk, have advisors from different planets.
#85
Before funding college accounts make sure you’re saving
enough in your retirement accounts.
#86
To avoid a tax penalty, tap IRAs, not 401(k)s, to pay college
tuition.
#87
Borrow from grandma at 4% for grad school; Uncle Sam’s
Graduate Plus loans go for 6.41%.
#88
Marry a billionaire, or perhaps even more rewarding, divorce
one.
#89
When buying a luxury condo, ignore superfluous amenities
like massage rooms and pet spas; they won’t contribute to
resale value.
#90
Add commercial real estate to your portfolio.
#91
Wait for inflation to rise before buying TIPS.
#92
Howard Marks: “Rule number one: Most things will prove to
be cyclical. Rule number two: Some of the greatest
opportunities for gain and loss come when other people forget
rule number one.”
#93
Before remarriage, discuss estate plans.
#94
Track gambling losses to offset taxable gambling winnings.
#95
Confess any tax crimes to a lawyer, not a CPA.
#96
Deduct your yacht loan as mortgage interest on a second
home.
#97
Don’t do deals between yourself and your own IRA.
#98
Don’t roll your old 401(k) into an IRA if you might face a
lawsuit.
#99
When creating a trust or family limited partnership for asset
protection, don’t give it your own name or one obviously
identified with you.
#100
Profit from stock market volatility: Buy into a VIX futures
fund and use wild, seemingly irrational swings as buying
opportunities.
#101
Gary Shilling: “The market can remain irrational longer than
you can remain solvent.”
#102
Beware dividend traps—fat payouts supported by declining
cash flow.
#103
Bet against weak currencies, like George Soros.
#104
Back up your financial records using a secure cloud service.
#105
Before investing in your own state’s 529, compare its fees and
tax breaks to New York’s rock-bottom cost plan.
#106
Buy liens on homes of real estate tax deadbeats.
#107
Know thyself: Read books like Dan Ariely’s Predictably
Irrational and Your Money & Your Brain by Jason Zweig.
#108
Learn a lesson from each stock-picking mistake.
#109
Julian Robertson: “Buy into forgotten markets.”
#110
Join an angel investing club.
#111
Keep your own entrepreneurial options open by refusing to
sign onerous noncompete agreements.
#112
Buy stocks of companies still controlled by their billionaire
founders.
#113
Leon Black: Do your homework, but still don’t bet the ranch.
#114
Louis Bacon: “As a speculator you must embrace disorder and
chaos.”
#115
Almost all great value investors look for market anomalies or
disconnects that they can exploit.
#116
Warren Buffett: “Big opportunities come infrequently. When
it’s raining gold, reach for a bucket, not a thimble.”
#117
Always keep some investment powder dry.
#118
Allocate investments against your life risks.
#119
Andrew Tobias: “A penny saved is two (pretax) pennies
earned.”
#120
Deduct losses from your sideline/hobby by bunching your
expenses and showing a small profit in 3 of 5 years.
#121
Postpone real estate gains tax with a 1031 exchange.
#122
Qualify as a “real estate professional” to save big on taxes.
#123
Be leery of investments sold for tax savings.
#124
Burton Malkiel: “Start saving now, not later: Time is money.”
#125
Before making a big discretionary purchase, calculate future
cost—what the dollars you’re spending could grow to if
invested for 20 or 30 years.
#126
Read How to Make Money in Stocks by William J. O’Neil.
#127
Buy designer goods at consignment shops; when you get
bored with them, sell for a profit on eBay.
#128
Discuss any prenuptial agreement way in advance of your
wedding.
#129
Hell hath no fury. Never cheat on your taxes and your spouse
at the same time— exes are a big source of IRS leads.
#130
Don’t buy a large amount of a thinly traded stock all at once.
#131
Buy and hold at your own risk.
#133
Don’t be afraid to buy into strength.
#134
It’s okay to chase performance—sometimes.
#135
Burton Malkiel: “In the stock market, past is not prologue.”
#136
Start a 529 college savings plan for yourself before you have
children. If you don’t use it for graduate school, transfer it to
your kid.
#137
Make your kid rich by helping him fund a Roth IRA.
#138
Deplete Junior’s UTMA—you can spend it on a laptop, camps,
private school and tutoring—before applying for college
financial aid.
#139
Reduce your student loan interest rate with auto debit.
#140
Julian Robertson: Suggest your kid take an accounting course
—“It was the course that helped me more than anything.”
#141
Robert Shiller: “If you want to get rich, go into finance or a
related field. Finance is the technology for making things
happen.”
#142
Identify companies that gouge you yet keep your business.
Buy them.
#143
Buy stocks like socks—good quality on sale.
#144
Buy into big ideas just like a global macro hedge fund for as
little as $1,000 to start.
#145
Use limit orders when buying small-company stocks with low
trading volume.
#146
Don’t leave it all in the dollar. Invest globally for currency
diversification.
#147
Dollar-cost average the whole stock market.
#148
Buy companies with high ratios of gross profits-to-total assets.
#149
John Neff: “Buy on the cannons and sell on the trumpets.”
#150
Monitor your individual stocks; set a Google news alert and
watch for signs of possible trouble.
#151
Bone up on “risk parity” diversification.
#152
Always know how a financial advisor is getting paid and what
if any commissions she’ll earn.
#153
Watch out for paid shills at investment seminars.
#154
Ken Fisher: “You know who didn’t have bad years? Bernard
Madoff—until he got caught.”
#155
Buy a retirement annuity cheap by delaying Social Security
until 70.
#156
If you need to tap retirement cash early, study up on the
exceptions that let you avoid h
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