History of Apsrtc

THE 7 New Rules of Financial Security and why you need to know them
Bigda, Carolyn, Lim, Paul J.
John Maynard Keynes, the Depression-era economist who's having quite the comeback, once quipped when he was accused of inconsistency: "When the facts change, I change my mind. What do you do, sir?"
MONEY has long advocated the benefits of consistency in your investing and financial planning. People who swing between bold risk taking and neurotic conservatism almost always get their timing wrong, falling for the hype in the good times and missing the real opportunities in the bad. But occasionally the facts change too much for you to stick to old ways of thinking. This is one of those times.
The past year has seen the simultaneous collapse of the stock, housing, and credit markets-and now of an economy that relied too much on all of the above. So how do you adjust? First, think hard about the risks you face, because they may not be what you thought they were. This can change how you save, invest, borrow, and plan. In this story, we'll examine the flaws in the conventional wisdom about managing your money and propose some new rules for the road ahead. In the foldout that follows, we'll show you how to apply them to each stage of your life.

RULE No. 1
OLD THINKING: If you can stomach the ups and downs that come with risk, you'll be rewarded.  
NEW RULE: Risk isn't about your stomach. It's about making or missing an important goal.  
RULE No. 2
OLD THINKING: Keep enough money in ultrasafe accounts to cover life's emergencies, but no more.  
NEW RULE: Relying more on cash can rescue you in an "asset emergency."  
RULE No. 3
OLD THINKING: The longer your time horizon, the more stocks you should own.  
NEW RULE: Time isn't everything. You must also consider your earnings potential.
RULE No. 4
OLD THINKING: Borrowing sensibly is a good way to build wealth.  
NEW RULE: Borrow cautiously. You have to worry about the other guy's debt too.  
RULE No. 5