Posted by: patrick | February 18, 2009

really short investment advice

After all my investing and personal finance reading over the past decade, I can sum it up to some basics that’ll work for 90% of us. Here goes.

  • Live within your means. “In”come must be more than expenses in the long run.
  • Pay off credit card debt ASAP. Paying off a 15% card is better than saving in a 2% account.
  • Save up at least 6 months of spending in an emergency fund. Keep in a conservative savings or money-market account.
  • Find the lowest-cost investment accounts (Vanguard, Fidelity, T. Rowe Price, and a few others).
  • Index, index, index. 50% stock, 50% bond. Let simmer until you pull Medicare.
  • Stop reading all the investing tips elsewhere and go find a Haruki Murakami novel to lay back and relax with.

Hit me back with any other ideas or comments. Simplicity is bliss.

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