Simple financial advice that works for many investors

by Grace

This 4×6 index card has all the financial advice you’ll ever need

20140924.COCPersonalFinanceCard1


This summarized financial advice is the result of University of Chicago social scientist Harold Pollack’s interview with personal finance expert Helaine Olen.

Keep it simple and be wary of financial advisors.

… the lesson here is that once you have an income that you can live off of and save a little bit besides, managing your finances shouldn’t be all that hard. The people making it complicated are often trying to make money off of you.

Sometimes it is a little more complicated.

I would agree that most of this card’s advice makes sense for most people.  But buying and selling individual securities can be completely appropriate for higher income investors.  And target funds have their downsides, so they’re not for everyone.  Many of them allocate most of their assets to bond funds during the retirement years, a strategy that could leave older investors with meager income and vulnerable to the volatility caused by shifting interest rates.

Related:  ‘passively managed index funds outperform almost all actively managed funds’ (Cost of College)

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