What is on the index card?

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. 4. Save 20% of your money. 5. Pay your credit card balance in full every month.

Should you buy a mutual fund or a financial index card?

Here’s the next bit of advice from the financial index card: It’s about buying mutual funds. A mutual fund takes a pool of money from investors and buys a basket of securities such as stocks or bonds. They are an important tool investors can use to diversify their portfolios. Diversification is a way to help reduce risk in your portfolio.

What is a financial index card?

It’s a concept that the researcher who popularized the idea that the most effective strategies could be summarized on a small piece of paper, whether you pin that to your fridge, carry it in your pocket, or keep it next to your laptop. Here, you’ll learn the story of that financial index card and what exactly is written on it.