“[The best personal finance advice] can fit on a 3-by-5 index card, and is available for free in the library.”
“So, if you’re paying someone for advice, almost by definition, you’re probably getting the wrong advice because the correct advice is so straightforward.”
- Max your 401(k) 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-advantaged savings vehicles like Roth, SEP and 529 accounts.
- Pay attention to fees. Avoid actively managed funds.
- Make financial advisors commit to the fiduciary standard.
- Promote social insurance programs to help people when things go wrong.
Source: The Index Card