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Money Tips from Alice in Wonderland

Money Tips from Alice in Wonderland

Robin Applegarth | Divine Caroline

July 09, 2010

2. Ignore the jabberwocky, and invest in things you understand. Alice met many strange creatures on her journey—Tweedledee and Tweedledum, talking cards, and the Mad Hatter. Most of them spoke nonsense, warnings, or in riddles.

Our modern Allison lived through the economic downturn of 2008–09. It too was marked by warnings and confusion. Bankers touted complex mortgages. Wall Street sold entangled derivatives, and used financial language that sounded like jabberwocky. Where was the money? Your guess was as good as the dodo bird’s.

Be sure you understand where you’re putting your savings. Ask questions, and learn something new. That way you’ll know that TIGRs don’t bite—they’re Treasury Investment Growth Receipts. GNMAs are tame Government National Mortgage Association bonds, and LURMS … well, they’re imaginary.

3. If you don’t know where you’re going, get directions. In the story, Alice eventually wandered into the deep woods. Here, at a fork in the road, she saw the elusive Cheshire cat, and asked him which way to go. He responded by asking her where she was headed. When she couldn’t answer, the cat said, “If you don’t know where you’re going, any road will take you there.”

Don’t get lost in the forest of finance. Find your purpose and choose the clearest path to reach it. Good financial advice can provide you with “maps.” Or, you can get help from a financial professional. It’s best to choose a fee-based advisor for more objectivity.

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