Comments on: 25 Rules to Grow Rich By #11: Building Knowledge http://www.thesimpledollar.com/2006/11/27/25-rules-to-grow-rich-by-11-building-knowledge/ Simple, applicable personal finance advice for the modern world Sat, 13 Mar 2010 22:37:20 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: Jeff http://www.thesimpledollar.com/2006/11/27/25-rules-to-grow-rich-by-11-building-knowledge/comment-page-1/#comment-504 Jeff Sun, 03 Dec 2006 05:10:05 +0000 http://www.thesimpledollar.com/2006/11/27/25-rules-to-grow-rich-by-11-building-knowledge/#comment-504 Matt and Trent -- I actually disagree with your take on this rule. First, let me say that I am very indepedent and I make all my own investment decisions. I feel I've educated myself reasonably well about money and investing, and I'm certainly not scared of researching new opportunities. But I would never, ever, buy an investment that I didn't understand. If, after doing some research, I find that I'm "not smart enough" for a particular investment, I won't do it. The bottom line is that most things that are too complicated are that way for a reason -- someone is trying to confuse you. Investing is not rocket science, and don't believe anybody who tells you otherwise. I didn't really pick up on any hubris in this rule. Hubris would be a rule saying trust your financial advisor at all times. And trying to be a genius by buying a derivative you didn't understand would also be hubris. But not buying an investment you don't understand is just common sense. Matt and Trent — I actually disagree with your take on this rule.

First, let me say that I am very indepedent and I make all my own investment decisions. I feel I’ve educated myself reasonably well about money and investing, and I’m certainly not scared of researching new opportunities.

But I would never, ever, buy an investment that I didn’t understand. If, after doing some research, I find that I’m “not smart enough” for a particular investment, I won’t do it. The bottom line is that most things that are too complicated are that way for a reason — someone is trying to confuse you. Investing is not rocket science, and don’t believe anybody who tells you otherwise.

I didn’t really pick up on any hubris in this rule. Hubris would be a rule saying trust your financial advisor at all times. And trying to be a genius by buying a derivative you didn’t understand would also be hubris. But not buying an investment you don’t understand is just common sense.

]]> By: Matt http://www.thesimpledollar.com/2006/11/27/25-rules-to-grow-rich-by-11-building-knowledge/comment-page-1/#comment-316 Matt Mon, 27 Nov 2006 19:33:52 +0000 http://www.thesimpledollar.com/2006/11/27/25-rules-to-grow-rich-by-11-building-knowledge/#comment-316 But that requires work... people don't want to work for their money. I completely agree with your take on the rule unfortunately we live in a society that is incredibly cushy and extra effort is seen as too much effort. Its a shame that more financial literacy isn't taught in schools. I know I would have benefited greatly from such knowledge when I was younger. But that requires work… people don’t want to work for their money. I completely agree with your take on the rule unfortunately we live in a society that is incredibly cushy and extra effort is seen as too much effort.

Its a shame that more financial literacy isn’t taught in schools. I know I would have benefited greatly from such knowledge when I was younger.

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