Whole-Life Insurance
Your insurer opens a cash account, deposits your premium, and pays out an annual guaranteed dividend. Sounds good, right? Don't be seduced, says Ric Edelman, an independent financial advisor and author of Ordinary People, Extraordinary Wealth. "These policies are often laden with fees--mortality expenses, underwriting costs, insurance charges. You'll need to hold it 10 years before you break even."
Collision Insurance On Rentals
Odds are you're already protected. "Collision coverage on your car transfers to any rental in the United States and Canada," says insurance veteran Jack Hungelmann. Renting abroad? Find out if your credit card covers you; many do, but coverage varies. Hungelmann likes the Diners Club card. "It's about $100 for a year, and it'll provide full primary collision coverage both in the United States and abroad."
Gold
Don't take a shine to gold--it's vulnerable to market shifts. The price can swing by 15 percent or more a year. "It requires knowing when to get in and when to get out," says Joel Dickson, Ph.D., of Vanguard. "Yet many learn too late that gravity is at work--what goes up must come down." Go with an exchange-traded fund instead, Edelman says. "It looks like a mutual fund but is often 90 percent cheaper."
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