https://vimeo.com/340056513

I recently spoke to students at the University ofCalifornia, Berkeley.  Here’s what I toldthem.

Save 15%-20% of your gross salary, starting with your firstpaycheck.

Invest your savings in Vanguard’s Target Retirement 2065Fund.

Then I told them about the Solin 5-year rule.

They could only look at their portfolio once every 5 years.

You can learn from this advice.

There are two factors that really impact your success as an investor.

1.  Costs
2.  Yourbehavior

You want to keep your costs as lowas possible. 

You can do this by limiting yourinvestments to low management fee index funds, ETFs or passively managed funds.

That’s the easy part.

Paying attention to your portfolioevery 5 years is difficult.

Doing so will permit you to ignore short-term news and much of the financial media.

The financial media often works toharm investors by generating fear, anxiety and greed.

Following my rule insures you don’tfall into this trap.

The next time someone asks you howyour portfolio is doing, here’s how I want you to respond:“I don’t know. I only check it every 5 years.  Ifollow the Solin 5-year Rule.”