Personal Finance

3829 readers

1 users here now

Learn about budgeting, saving, getting out of debt, credit, investing, and retirement planning. Join our community, read the PF Wiki, and get on top of your finances!

Note: This community is not region centric, so if you are posting anything specific to a certain region, kindly specify that in the title (something like [USA], [EU], [AUS] etc.)

founded 1 year ago

MODERATORS

[email protected]

Your ‘Set It and Forget It’ 401(k) Made You Rich. No More. — WSJ (apple.news)

submitted 1 year ago by [email protected] to c/[email protected]

22 comments fedilink hide all child comments

For four decades, patient savers able to grit their teeth through bubbles, crashes and geopolitical upheaval won the money game. But the formula of building a nest egg by rebalancing a standard mix of stocks and bonds isn’t going to work nearly as well as it has.

you are viewing a single comment's thread
view the rest of the comments

[–] [email protected] 2 points 1 year ago

Exactly.

The strategy that pretty much always wins is to buy and hold a diversified portfolio. Keep funneling money into it and focus on staying out of debt, maintaining a healthy budget and event fund, and finding fulfillment in life.

There are absolutely no guarantees in life, but generally if you save 10-20% if your money and invest it into broad market index funds, you'll be better off than those who don't, and probably set up for retirement.

That kind of advice doesn't draw clicks, but it's what middle class people who retire wealthy do. If you constantly follow the clickbait advice, that's how rich people end up in middle class retirements and how poor people end up working forever. Save 10-20%, invest in broad market indexes, and don't sell, and you'll likely have a middle class or better retirement.