It's that time of year again, when politicians, activists, business honchos and other luminaries don cap and gown to dispense sage advice to newly minted college grads in the time-honored form of commencement speeches. Somehow I didn't receive a request to speak. Maybe my less-than-cum laude record as a student at Penn more than 40 years ago scared schools off. But I've never been one to let the mere lack of an invitation stop me from weighing in. So here, from someone who's spent the bulk of his career writing about personal finance, are five tips and observations designed to help recent grads get onto the right financial path.
You may be financially fit—but are you financially healthy? It's an important distinction. Achieving true financial health isn't just a matter of saving money and building wealth. There's also an emotional component that involves feeling positively about your finances and your ability to determine your financial future. Which means that in order to attain true financial health, you need to ensure that both the economic and emotional dimensions of your finances are sound. New research from Morningstar points to two techniques that can help.
Ask Real Deal Retirement
My nest egg is invested in a relatively simple portfolio of stock and bond index funds. What's a reasonable rate of return for me to expect in the future?