I love this article from the Washington Post. It’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.