The Dilbert Guide to Personal Finance

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.

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