Good advice, bad advice

Here’s an interesting article with some good advice and some that’s a bit questionable. They say that young people shouldn’t have 6 months worth of cash on hand. I have no trouble with this advice (as long as it’s for young people) although as we age having cash makes sense. Once you hit 30, you probably earn enough to put some cash aside without messing up your retirement plans and the like.

I also don’t mind the don’t buy a big house and don’t buy more life insurance than your family needs advice. My big issue is with the 60% stocks and 40% bonds advice. Sure they say switch to 90% stocks after a couple of years but this seems strange to me.

One Response to “Good advice, bad advice”

  1. Peter Yin says:


    I think the advice is too general. I think that it all boils down to personal preferences. I personally think that having 6 months worth of cash on hand is a good thing, especially for people who trade the market.

    I have set up my personal blog here at to tell people more about my experiences in trading, and what journey I’ve taken and the mistakes to avoid.