Buzz
My dad and I couldn't be more different if we tried. For 18 years, he shaped my life with his Midwestern roots—he’s a lawyer passionate about Michigan football, while I’m a self-assured East Coast transplant, a proud University of Michigan graduate who’d rather enjoy a tailgate than the game itself.
Despite these important differences, we do share a love for discussing the finer points of our finances (feel free to invite us to your next gathering). My dad enjoys poring over annual investment reports and sending me clippings from the Wall Street Journal, and I truly appreciate that he reads my articles for fun, not because he feels obligated as a parent.
In that same spirit, I sent him a “401(k) fast facts” sheet for my Fidelity account. While I’m happy with my current portfolio, I thought he might enjoy seeing the available options. He replied with some suggestions, shared his enthusiasm for a few funds he’s invested in, and concluded his message with what I consider to be a very thoughtful piece of advice:
Contribute as much as you can afford from each paycheck, focus on delivering your best work, and review your retirement account at year’s end.
I appreciate this advice not because it’s revolutionary, but because it’s exactly the opposite—too often, we get obsessed with maximizing every opportunity and trying to outsmart the market (and each other), forgetting that many aspects of personal finance are actually pretty simple. You should save and invest as much as you can, but beyond that, much of it is out of your hands. Focus on what you can control, and you’ll likely make more money while also enjoying life.
When it comes to where to invest, the dull answer is often the right one—low-cost index funds and ETFs. With about 40 years until I hit “retirement age,” I’m fully invested in stocks, spread across large, mid, and small caps, with a sprinkle of international stocks. For more details on how I allocate my assets, check out this post.
That said, this isn’t to suggest you shouldn’t monitor your fund performance and make adjustments when necessary—knowledge is power. But sometimes, it’s helpful to get a good old-fashioned dad reminder not to get so wrapped up in the details that we forget the fundamentals.
