Your Cheat Sheet For Smarter Investing Investing doesn't have to be hard. We explain how to grow a nice nest egg and avoid that four-letter word that starts with F ... fees.

Here's what to remember:
- Don't pick your own stocks.
- Don't sell stocks if the market crashes.
- Diversify your portfolio.
- Don't pay too much in fees.
- Invest in index funds, not actively managed funds.
- Rebalance your portfolio every year — then leave it alone.
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Your Cheat Sheet For Smarter Investing

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Your Cheat Sheet For Smarter Investing

Your Cheat Sheet For Smarter Investing

Your Cheat Sheet For Smarter Investing

  • Download
  • <iframe src="https://www.npr.org/player/embed/676158680/713979493" width="100%" height="290" frameborder="0" scrolling="no" title="NPR embedded audio player">
  • Transcript
Sitthiphong Thadakun/Getty Images/EyeEm
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Sitthiphong Thadakun/Getty Images/EyeEm

Investing doesn't have to be hard. We explain how to grow a nice nest egg and avoid that four-letter word that starts with F — fees.

Here's what to remember:

1. Don't pick your own stocks.

2. Don't sell stocks if the market crashes.

3. Diversify your portfolio. Here's a breakdown from David Swensen, who manages Yale University's $30 billion endowment and has one of the best track records in the world:

  • 30 percent in U.S. stocks.
  • 15 percent in developed country stocks.
  • 5 percent in emerging market stocks.
  • 20 percent in domestic U.S. real estate.
  • 15 percent in U.S. Treasury bonds.
  • 15 percent U.S. Treasury Inflation Protected Securities.

4. Don't pay too much in fees.

5. Invest in index funds, not actively managed funds.

6. Rebalance your portfolio every year — then leave it alone.