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Freedom Week: Financial Bill of Rights

Bill of Rights

To celebrate the birth of our nation and the freedoms that we are afforded, I am writing three posts this week with a twist. Each post is based on an influential document which has given us rights.

On Monday, I outlined the Financial Declaration of Independence. Today’s post, based on the United States’ Bill of Rights, is the Financial Bill of Rights.

  1. First Amendment – Freedom from debt, credit cards, and HELOCs
    We shall take out no unnecessary debt living beyond our means, which prohibits free exercise of other rights; or overspend through the use of credit cards; or enslave ourselves through the use of HELOCs; rather save the necessary sum to pay cash for wants and needs.
  2. Second Amendment – Right to keep and have savings
    A well regulated Automatic Savings Plan, being necessary to the security of a financially free Family, the right to an Emergency Fund, shall not be infringed.
  3. Third Amendment – Protection from bank failure through FDIC insurance
    No Investor shall, in time of peace place cash savings in any bank, without FDIC insurance, nor in time of war, but use multiple banks as necessary.
  4. Fourth Amendment – Refusal of Interest Only and Adjustable Rate Mortgages
    The right of the people to be secure in their houses, condos, and town houses, against needless foreclosures and bankruptcies, shall not be violated, and no Interest Only or ARMs shall be issued, but upon probable cause, supported by Oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized.
  5. Fifth Amendment – Health, life, AD&D and LTD insurance
    No person shall be without Health insurance, or adequate Life insurance, sufficient for final expenses and income replacement, except in cases when no financial means to purchase insurance exists, while actively seeking new employment or other income source; nor shall any income producing person be without Accidental Death and Dismemberment insurance; nor shall any income producing person be without Long Term Disability, sufficient to replace 60% of the normal wage.
  6. Sixth Amendment – Right to steady, growing mutual fund returns
    In all mutual fund investments, the investor shall enjoy the expectation of steady, growing returns, by careful fund selection based on principles of positive alpha, fair management fees, consistent performance, and passive management where appropriate; each fund consistent with a target asset allocation plan; to have compulsory purchases avoided and decisions based on sound investing principles.
  7. Seventh Amendment – Consistent asset allocation by rebalancing
    In accordance with a predetermined asset allocation plan, where the values are determined through evaluation of your risk and investing objectives, the right of rebalancing, or realigning investments which have deviated from their allocation, shall be exercised, and no given investment, shall be allowed to overwhelm the returns of other investments, which may result in large, unexpected losses.
  8. Eighth Amendment – Abolishment of excessive management fees
    Excessive management fees shall be avoided, nor 12b-1 fees paid, nor front end or back end loads paid.
  9. Ninth Amendment – Protection of rights not specifically enumerated in credit card agreements
    Where credit cards are used, the enumeration in the Agreement, of certain rights, shall not be construed to deny or disparage others retained by the credit card account holder.
  10. Tenth Amendment – Powers of spouses and family councils
    The powers delegated to the Head of Household by the Family, are reserved to the Spouses respectively, and decisions discussed in family council.

Signed this 30th day of June, 2010,

Adam Williams and the Rabbit Funds team

Sign the Financial Bill of Rights by leaving a comment in the comments section below and follow Rabbit Funds on Facebook for more great financial planning info.


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  • Elaine

    Well Adam, Let me begin by wishing you a Happy Independence Day! America is a mere 234 years young this year. She's come a long way and has a long way to go.
    You could call me a restorationist as I am a huge fan of Glenn Beck and believe we have awaken, never to be in the dark again. Fir every negative thing we can say about this president and administration, the one favor they have done for us is they have united us. We stand strong, resolute, and ready to restore America to something that has long been nothing more than a vision. Since her founding there has been endless debate and bickering. From now on we stand united in our uniqueness and differences and strong in our patriotism and conviction to let our commonality connect us as lights in the darkness to restore FREEDOM, Independence, and a more perfect union. To enjoy our Liberty and abolish tyranny. To remind politicians that we elect them and they a re public servants, we are not their slaves. We will vote them out of office until we get a Congress that reduces the debt, energizes the economy, grows jobs in this country and we will put an end to pork barrel spending, to special interest groups, and we will create a more perfect union than there has ever been before.
    -Elaine Willingham
    Kirkwood, MO

  • Hey Elaine, thank you very much for your comment and strong sense of patriotism. I too love this nation and hope that elected officials will strive to represent our desires. Or like you said, we'll vote them out!

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