Simple But Hard

Great post last week on the Vanguard blog

When it comes to investing, my message really comes down to “Get your investment priorities straight.” In short, here’s what matters:

1) Invest 12‒15% of your income for retirement.

2) Create an emergency reserve.

3) Balance investing and debt reduction.

From our years of experience seeing hundreds (maybe thousands) of prospects and clients, it is  these three things that ultimately separate the middle class from the upper class. The great part of young people is that it is timeless. It was true 50 years ago and will likely be true 50 years from now. And, it doesn't require you to have to do a lot of planning at first. Close your eyes and do it. At some point, I believe you will need expert advice and help but the need for that help is a direct result of doing these three things. The downside of these three? It is hard to do and that is why even young folks need help and advice. The industry is seeing this and developing more and more ways to serve you. For now, focus on what you can control. These three things.