William Bernstein is a very respected physician, adviser and author of six highly praised investment books. His seventh, and latest book, If You Can. How Millennials Can Get Rich Slowly begins with this question:
Would you believe me if I told you that there's an investment strategy that a seven-year-old could understand, will take you fifteen minutes of work per year, outperform 90% of finance professionals in the long run, and make you a millionaire over time?
Well, it is true, and here it is: Start by saving 15% of your salary at age 25 into a 401(k) plan, an IRA, or a taxable account (or all three). Put equal amounts of that 15% into just three different mutual funds:
* A U.S. total stock market index fund.
* An international total stock market index fund.
* A U.S. total bond market index fund.
Sound advice from Bill Bernstein.