My favourite financial blog, Alphaville (link), reiterates some simple and sound financial advice:
“In his 2002 treatise, Dilbert and the Way of the Weasel, [Scott Adams] laid out one of the most sensible and succinct approaches to financial planning:
- Make a will.
- Pay off your credit cards.
- Get term life insurance if you have a family to support.
- (*)Fund your Pillar 3 account to the maximum
- Buy a house if you want to live in a house and you can afford it.
- Put six months’ expenses in a money market fund.
- Take whatever money is left over and invest 70% in a stock index fund and 30% in a bond fund through any discount broker and never touch it until retirement.”
(*) Note that the original advice here was “Fund your 401(k) to the maximum” and “Fund your IRA to the maximum”, but these are valid for the US; Pillar 3 is, more or less, the Swiss equivalent.