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Page history last edited by Scott Tietjen 15 years, 9 months ago

Investments= (Long Term Investments + Short Term Investments) + Insurance + Real Estate


Investments both produce and consume Money.


Scott’s 9-Point Investment Plan - Wikified


Do these steps in the order shown…

  1. Make a will.
  2. Pay off your credit cards.  If you don't have a credit card then get a cash back card and use it, but ALWAYS pay the full balance.  This will not only get you cash back, but will help build your credit.  Never have more than 3 credit cards under any circumstances.
  3. Get term life insurance if you have a family to support.  Also consider health insurance, auto insurance (if applicable), and long-term disability insurance.
  4. Fund your 401(k) or 403(b) as much as you can afford to, and to the limit of company-matching if at all possible.  Aim for a 70/30 allocation to low-fee stock and low-fee bond funds, depending on what choices are available.
  5. Fund your Roth IRA to the maximum--usually $4000 a year, depending on your income and age.  Try to maintain your 70/30 overall allocation while investing your Roth IRA.
  6. Buy a house if you want to live in a house and can afford it.
  7. Put six months worth of expenses in a money-market account.
  8. Take whatever money is left over and invest it so that 70% of your total investments (including 401(k) and Roth IRA) are in a low-fee stock index ETFs and 30% are in low-fee bond funds or ETFs.  Use any discount broker, but beware of heavy discounts that require active trading to be realized.  Never touch it until retirement.
  9. If any of this confuses you, or you have something special going on (retirement, college planning, tax issues), hire a fee-based financial planner, not one who charges a percentage of your portfolio.



Maybe each point could be explained on a page of its own. For example, how does making a will impact on your investment plan?


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