100% of emails from third-world countries promising to make you rich are scams and should be ignored. (below) I wrote a book about this.
•When a group goes out to eat, announce at the meal’s beginning that the check will be split evenly. This should prevent Steve from ordering nine beers and Sally from ordering an extra meal to go home as part of the group’s check. If people are abusive, exclude them from future meals. If one or some folks plan to do a lot of drinking, have them ask the server for a separate beverage check.
•If you find surprisingly good deals on something you want to buy—particularly a camera or electronic product—check to see if the bargains are “gray goods” or “parallel imports.” These are products not intended for the country in which they are being sold. They often lack the manufacturer’s warranty, may have different features from the models intended for use in your country, may not comply with government regulations and may not be compatible with other items (including accessories and software) you want to use with them.
•In general, you do not have to send in a form to register a product for warranty coverage. Your receipt should be enough.
•Think twice before you provide your cellphone number to a store, utility or other company that extends credit. You may be driving in your car with other people and suddenly you’ll receive a call about a missed payment and everyone will hear it through the speakers.
•Many online and bricks-and-mortar “factory outlet stores” are not really outlets for the factories that made the products being sold. Be careful that you don’t get junk and no warranty.
•Don’t be fooled by “as seen on TV.” All that means is that the company can afford to pay for commercials. It doesn’t mean that the commercials are truthful or the TV networks and stations recommend the advertised products or services.
I’m a huge fan of Amazon Prime. For just $99 per year, I get free two-day shipping on almost everything Amazon sells (even huge and heavy stuff) and can pay just $3.99 for next-day delivery—which often includes Saturday.
I order from Amazon at least twice a week. Until the company offers teleportation, or a pneumatic tube from its warehouse to me, I’ll have to settle for quick delivery via the brown truck. I see our UPS driver more often than I see my mother or siblings—and UPS brings me much better toys than they buy for me.
Prime also includes free borrowing of over 500,000 Kindle ebooks and unlimited, commercial-free, instant streaming of tens of thousands of movies and TV shows (including lots of HBO original programming, like The Sopranos) and a gazillion songs.
Movies and TV included with a Prime membership can be watched instantly on Macs, PCs and hundreds of models of Internet-connected TVs, Blu-ray players and set-top boxes that are compatible with Amazon Instant Video. The system is also integrated with my new Amazon Fire TV itty-bitty box.
This is not a book about investing but I will give you a few tips:
•Buy low and sell high.
•Decide on your goals before you spend money.
•Learn about tax advantages and disadvantages for different kinds of investments.
•Don’t buy stocks, bonds or commodities just because you like the voice of the person who called you to tout them. I knew a broker who had at least three different telephone personalities and voices.
•Unless you have the nerve and devotion to become a day trader, hold the stock or mutual fund for months or years as long as the overall trend is upward (or even level if the rest of the market is sinking). Prices are very volatile in the short term.
•Before you invest, find out what’s involved in getting your money out. How long will it take? How many forms do you have to fill out? How much will it cost?
•Diversify, perhaps with one or more mutual funds.
•Don’t get involved in ‘fancy’ investments like options, futures and derivatives unless you really understand them.
•Be dubious of insider tips. You might lose money—or go to prison.
•Learn about the people who control the companies you are considering investing in. Don’t turn over your precious money to knaves or fools.
•The more an investment can earn, the riskier it is.
•Interest rates are usually pretty close to the inflation rate. Savings accounts that pay 1% interest may seem nearly useless, but when CDs paid 12% or more in the 1980s, inflation was 13.5% in the USA. In 2013 it was just 1.5%.
•Sadly, the interest rates charged on credit cards do not generally drop when inflation drops. You may be able to negotiate a lower rate or switch to another card with a low “balance transfer” rate.
•Don’t borrow money to finance an investment.
•Don’t invest more than you can afford to lose.
•Try to find a secure investment that will earn more than the inflation rate and have low (or no) service fees.
•Consider tax-free government bonds.
•Use stop-losses to minimize what you can lose when a stock’s price moves down.
•As you investigate investments you’ll frequently encounter the phrase “Past performance is no guarantee of future results.” That’s certainly true, but past performance is a pretty good indicator of how the people who run companies (and brokerages) will perform in the future.
•No stock will increase in value forever. At some point you should take the money and run.
This not a book about insurance but I will give a few tips:
•There are two main types of life insurance: term (pure insurance coverage) and whole life (a combination of insurance and investment which should build cash value).
•Many people carry both types.
•You’ll get the most coverage for the least cost with term insurance. This is probably the right kind of insurance if you have children to provide for.
•Don’t think of life insurance as an investment.
•Insurance agents will probably push whole life because it generates higher commissions than term insurance.
•You can probably borrow against a whole life policy.
•The length (term) of a policy should coincide with your needs. It should last until you expect your kids to become independent.
•Buy life insurance when you’re young and healthy.
•Tell the truth on the application.
•There is no simple and
