Via FireVault:
According to Adams, everything you need to know about financial planning boils down to these eight principles:
- Make a will.
- Pay off your credit cards.
- Get term life insurance if you have a family to support.
- Fund your 401(k) to the maximum.
- Fund your IRA to the maximum.
- Buy a house if you want to live in a house and you can afford it.
- Put six months’ expenses in a money market fund.
- Take whatever money is left over and invest 70% in a stock index fund and 30% in a bond fund through any discount broker, and never touch it until retirement.[Original Source Vanguard]
It is pretty good…nice and simple. The Asset mix should 50/50. 70/30 add more risk (variability) with little additional return.
Hmmm…I am overdue in re-balancing my retirement assets.
