10 Rules: KISS – Keep It Simple Stupid

The third tip of Forbes ten rules for building wealth is one that, I think, applies to almost everything in life: keep things simple. Forbes recommends that you choose three or four index funds that will give you some good exposure – that is, a nice mix of risk and reward instead of all in one asset class (though most funds will be a mix of stocks and bonds, they say an ETF is the way to go if you want to dabble in commodities) or geographic area.

One tip that I think is worth investigating are Target Retirement funds that change their allocation over the years, and will automatically rebalance the assets for you, as you get closer and closer to retirement. I think that target retirement funds are definitely very popular nowadays and they are the definition of KISS.

Source: Fortune