- Make a will.
- Pay off your credit card balance.
- Get term life insurance if you have a family to support.
- Fund your company 401K to the maximum.
- Fund your IRA to the maximum.
- Buy a house if you want to live in a house and can afford it.
- Put six months’ expenses in a money market account.
- Take whatever is left over and invest it 70 percent in a stock index fund and 30 percent in a bond fund through any discount brokerage company and never touch it until retirement
- If any of this confuses you, or you have something special going on (retirement, college planning, tax issue), hire a fee-based financial planner, not one who charges you a percentage of your portfolio.
Category: Personal Finance
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