Sunday, February 10, 2008

Seven Financial 'Rules-of-Thumb' That Make Little Sense

http://finance.yahoo.com/banking-budgeting/article/104387/Seven-Financial-Rules-Of-Thumb-That-Make-Little-Sense.
1. Subtract your age from 100
2. Keep three to six months of salary in an emergency fund
3. Set aside 10% of gross income for savings
4. To retire comfortably, your investments must generate 70% to 80% of the income you received while working
5. The stock market will give you a 10% annual return
6. Life insurance benefits should equal five times your current income
7. Refinance your home when interest rates drop by 2 percentage points

Read the article for more details. Here is another link to the article on MarketWatch:
http://www.marketwatch.com/news/story/seven-financial-rules-thumb-deep/story.aspx?guid=%7B51AEC6AA%2DCB7B%2D4803%2DA4D5%2D7036B767F215%7D.