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This Index Card Contains Outstanding Financial Advice


Photo: Daniel Sanchez

When Harold Pollack, PhD, Professor at the University of Chicago, discussed personal finance with Helaine Olen, author of Pound Foolish, he jotted down his thoughts on managing ones financies:

  1. Max your 401(k) or equivalent employee contribution
  2. Buy inexpensive, well-diversified mutual funds such as Vanguard Target 20XX funds
  3. Never buy or sell an individual security. The person on the other side of the table knows more than you do about this stuff
  4. Save 20% of your money
  5. Pay your credit card balance in full every month
  6. Maximize tax-advantaged savings vehicles like Roth, SEP, and 529 accounts
  7. Pay attention to fees. Avoid actively managed funds
  8. Make financial advisor commit to a fiduciary standard
  9. Promote social insurance programs to help people when things go wrong

I've heard our instructors say these same things in our classes!