When people find out what I did for a living I generally ready myself for The Most Frequently Asked Question – “Do you have any stock tips” (or some variant thereof).
My answer is boring. Really boring.
My first response is a question – how much do you have saved up in liquid assets – cash, money markets, savings accounts – for emergencies. Do you have enough liquidity to pay all your bills (rent, groceries, insurance, utilities, etc.) for 6-12 months. “Yes” means we can keep talking. “No” means go save some money. Now.
Assuming the answer was yes we then move on to a spirited discussion of Index Funds. This generally meets with some disappointment.Continue Reading