Financial Rules of Thumb

These “Rules” are just some that I have either heard or seen used. A Rule Of Thumb is great as long as you realize every situation is different and there is no law of nature that provides for Rules of Thumb to be correct or even close.
1) Close credit accounts you no longer use
This is absolutely wrong if you need your credit score to be as high as possible. The rating services such as FICO look at past activity, amount of credit available, and your utilization. A good account can help even if you do not use it.
2) Set up an emergency fund to cover three to six months’ worth of expenses
This is probably a good number. I would lean to the six-month figure if possible. You never know when something major can go wron and you always underestimate.
3) The percentage of stock in your portfolio should equal 100 minus your age
Your financial position dictates what this should be. If you are 65 and only 35% of your investable assets are in stocks or some vehicle that at least has a chance of beating inflation you are cutting your throat if you live to 100.