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The latest financial craze, strategy or money influencer can be a helpful jump-off point if you’re looking to elevate your financial situation, but it’s important to bear in mind this advice should be taken with a grain of salt.READ THE ARTICLE
Make note: Generalized financial guidance is exactly that – general, and for the masses. Here, you will find a breakdown of some of the most popular personal finance strategies, as well as the drawbacks you will want to note too. Three include:
📌 50/30/20 Rule – This budgeting strategy allocates after-tax income into three areas: 50 percent to needs, 30 percent to wants and 20 percent toward saving or paying off debt. This strategy doesn’t take into account age or nearness to retirement, and could be best for personal finance beginners.
📌 Dave Ramsey’s 7 Baby Steps – As another means to create more financial stability, we all know Dave Ramsey is focused on debt-minimization, but again, this guidance is typically aimed at those with substantial debt, not your everyday retiree.
📌 Bogleheads – Named after John Bogle, this strategy revolves around low-cost investments and diversification, but is often aimed at those taking a DIY investment approach.
My thoughts: Pretty much every generalized financial strategy was created for those in the early stages of accumulation. Once you have accumulated significant assets or a level of financial stability, it’s most likely time for a more personalized approach.