Go Back  S2KI Honda S2000 Forums > Off-Topic > Money and Investing
Reload this Page >

Investing - Before you Start

Money and Investing Discuss stock picks, portfolios, retirement and other investment related topics.

Investing - Before you Start

Old 10-16-2008, 10:28 AM
Thread Starter
cthree's Avatar
Join Date: Oct 2000
Location: Toronto, Canada
Posts: 20,273
Likes: 0
Received 3 Likes on 3 Posts
Default Investing - Before you Start

One of the most frequent questions asked in this forum is "How do I get started?".

The real question is "Am I ready to start?".

Before you decide how or where you want to invest or save money, whether it's for a large purchase, a home or your retirement there are 3 things you need to take care of first and foremost. If you don't do these things first then you fail before you've even started.

#1 - Pay off all debts

If you carry debt, even $1 worth, you cannot invest or save money, period. It is mathematically impossible to earn enough of a return on savings or investments to offset the interest you pay on debt. I don't care how much you work the numbers, it simply can't be done so don't even argue the point. It doesn't matter if it's an IRA contribution, a 401K plan or just stuffing $100 from each pay-check in a savings account, it's all for nothing so long as you are paying interest on credit card balances, car loans or lines of credit.

The only exception to this rule is your mortgage.

#2 - Get Health Insurance

You must have health insurance. If you don't you could be wiped out financially in the blink of an eye. Health insurance is not optional, it is essential.

#3 - Get Disability Insurance

Again, just like health insurance, if you suffer some illness, disease or misfortune and cannot earn an income for an extended period (forever) you will be quickly wiped out and anything you've saved or invested will be gone in a blink.

You must do ALL of these before you can start saving or investing and you must continue to do these 3 things, forever. Please make sure you've got this covered before you ask how or where or we can't help you.
cthree is offline  
Old 10-16-2008, 01:31 PM
Registered User
Join Date: Nov 2005
Posts: 1,857
Likes: 0
Received 0 Likes on 0 Posts

I agree with Erik.
PearlwhiteS2k is offline  
Old 05-26-2010, 11:50 AM
Join Date: Mar 2010
Posts: 4,190
Received 73 Likes on 44 Posts

Is #3, Disability insurance really necessary? I would say no. Certainly not a "required" thing to do before you start investing. This is certainly not a black and white kind of thing, but much more of a "gray area." To each his own in this regard.

I will throw my bit of info into this as I looked into DI for the wife not too long ago. DI is not all the same. There is a VERY large discrepancy between a crap plan and a true "own occ." Do the research. For a true "own occ" plan, via guardian (which is a subsidiary of berkshire) or any other "reputable" insurance company, it's most certainly not cheap per month, and ends at the age of 65. Whether this "risk" is worth it is upto the individual imo.
SlowTeg is offline  
Old 12-05-2011, 03:44 AM
Registered User
Join Date: Dec 2011
Posts: 18
Likes: 0
Received 0 Likes on 0 Posts

What if you interest rate to your auto loan is lower than your rate for your investments.
grand_prix_wyte is offline  
Old 04-09-2013, 09:30 PM
Registered User
Join Date: Apr 2013
Posts: 20
Likes: 0
Received 0 Likes on 0 Posts

reidiboi is offline  
Related Topics
Thread Starter
Last Post
Money and Investing
09-12-2011 11:45 PM
Money and Investing
08-16-2007 03:49 PM
Off-topic Talk
06-08-2007 08:48 AM
Off Topic and General Discussion
08-09-2004 08:53 AM
Off-topic Talk
11-13-2001 12:17 PM

Quick Reply: Investing - Before you Start

Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service

© 2019 MH Sub I, LLC dba Internet Brands