Personal Finance 101: The complete guide to managing your money

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Creating a financially secure life can feel like a daunting task. This Personal Finance 101 guide lays out seven key steps to get you working toward long-term security.

By age 50, experts say to have six times your salary saved. By age 55, have seven times your salary saved.There are online calculators that can help you hammer out a sense of how much monthly income you may be able to safely generate from your retirement savings, Social Security check and pension benefit — if you have one.You may enjoy being a DIY retirement saver.

Saving for retirement breaks down into how much you want to invest in stocks and how much in bonds. As if this needed pointing out now, stocks can be volatile at times, though over long periods they have historically delivered higher returns than bonds. Bonds are more chill. They don't fall like stocks in rough times — in fact, they typically rise when stocks are cratering. However, they don't gain as much as stocks, either.

A hidden risk to consider when you are deciding on your mix of stocks and bonds is inflation. That's the annoying fact that, over time, stuff costs more. Even at a benign 2% inflation rate, what costs $1,000 today will cost more than $1,600 in 25 years. Stocks over long stretches have produced the best inflation-beating gains.

The right stock-bond mix depends on your personal goals, stomach for risk and time horizon — or number of years you expect to hold your investments. Jack Bogle, renowned founder of Vanguard and tireless advocate for individual investors, suggested this simple rule of thumb: Subtract your age from 110. That's how much, percentage-wise, you might want to keep in stocks.

 

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I guess for a basic financial guide its decent... but most of this should be obvious.

this is terrible news

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