Best Financial Advice

I love this article from the Washington Post. ┬áIt’s brilliantly simple and all anyone ever needs to be able to invest their retirement properly and have all the retirement money they need to live on. Here’s a quick recap of the chicken scratch that is pictured in the article:

  • Max your 401k or equivalent employee contribution.
  • Buy inexpensive, well diversified mutual funds such as Vanguard Target 20XX funds.
  • Never buy or sell an individual security. The person on the other side of the table knows more than you do about this stuff.
  • Save 20% of your money.
  • Pay your credit card balance in full every month.
  • Maximize tax-advantages savings vehicles like Roth, SEP and 529 accounts.
  • Pay attention to fees. Avoid actively managed funds.
  • Make financial advisor commit to a fiduciary standard.
  • Promote social insurance programs to help people when things go wrong.