Financial Wisdoms to Ignore

Karen Queen of Fox Business notes that there are several conventional financial wisdoms that one should ignore today. These financial wisdoms include - (1) saving 10% of your income (2) buying a house instead of renting (3) saving for your children's college tuition (4) invest heavily in stocks then steadily ease out to bonds as you grow older and (5) start reducing your estate now to reduce estate taxes. The ideas are spot-on especially in regards to heavy investment in stocks. The 80-20 rule should not apply in a volatile market and a tactical, short-term approach is heavily favored over the 80-20 rule's long-term approach in our current economy.