Financial Planning

Investing Tip Sheet

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

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