Financial Planning

Source: NPR Life Kit Podcast (Dec 2018) | Maria Story, MD

Here’s what to remember:

• Don’t pick your own stocks (use mutual funds)
• Don’t sell stocks if the market crashes
• Don’t pay too much in fees. Max of 0.15%
• Invest in index funds (passively managed funds), not actively managed funds
• Rebalance your portfolio every year — then leave it alone

Diversify your portfolio. Here’s a breakdown from David Swensen, who manages Yale University’s $30 billion endowment and has one of the best track records in the world:

• 30 percent in U.S. stocks
• 20 percent in domestic U.S. real estate
• 15 percent in developed country stocks
• 15 percent in U.S. Treasury bonds
• 15 percent U.S. Treasury Inflation Protected Securities
• 5 percent in emerging market stocks