One size fit all financial advice

A couple years ago, the index card craze swept through financial news. Everyone loves simplicity.

The thought that all financial advice for everyone could fit on a single 3″x5″ index card? Can't get simpler than that.

Harold Pollack's one size fits all financial advice (WaPo article)

Here's what the card says:

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

It's not bad.

Here's the thing – one size fit all financial advice doesn't exist. Sadly.

But you probably knew this already…

BUT – the card gets you 90% of the way there. (you could use a financial advisor for the last 10% if you wanted guidance)

And getting start on your “90% of the way” today, is better than waiting for the 100% to present itself before you make the journey.

Remember, perfect is the enemy of good.