Wealthy Barber (87)

From Chilton, David

Type: Book

Price: 9

Link: http://www.amazon.com/gp/product/0761513116/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=0761513116&linkCode=as2&tag=famifinafutu-20


Make Wills (and Living Wills and Medical Powers of Attorney) for all adults/asset-holders in family (6) Chapter 5
Pay down your Credit Cards (25) Chapter 8
Automate savings for specific goals (100) Chapter 8
Sign up for maximum matched level of employer 401k (106) Chapter 6
Be skeptical of managed mutual funds and investment managers (117) Chapter 4
Pay down your non-credit-card debts (student loans, cars, etc.) (127) Chapter 9
Buy Life Insurance for all adults (150) Chapter 5
Sign up for maximum allowable level of employer 401k (157) Chapter 6
Review types of retirement accounts. (164) Chapter 6

Public Notes/Forum


This is a "classic" of financial planning. It's written like fiction, using narrative to convince you to take simple actions.

The specific actions he pushes:

  • make a will

  • buy term LifeInsurance

  • invest 10% of your income for growth - this is not for retirement income, this is extra!

    • PayYourselfFirst (automate your cash flow)

    • put into equity actively-managed mutual funds

    • also OK to invest in RealEstate - buy rental home - but much messier/riskier

  • retirement: invest however much it takes to plan on matching your after-tax income in retirement - ideally living off the income not the principal

  • use appropriate tax-advantaged fund: IRA, Keogh, SEP, 401k

  • buy your home

  • minimize other debt (definitely avoid credit-card debt). If you get a windfall, use it to pay off non-deductible debt

2012-10-11 13:44:01.605139
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