What’s a ‘Good Enough’ Financial Plan?

Group 1 - The article emphasizes the importance of simplifying investment strategies for satisficers, recommending a focus on broad, diversified investments rather than individual stocks or complex portfolios [1][2] - Research from Morningstar suggests that investors perform better with total-market index funds compared to actively managed funds over the long term, indicating that satisficers should prioritize these types of investments [2][3] - A minimalist approach to financial relationships, such as credit cards, is advised for most households, particularly for those who prefer a satisficing strategy, suggesting that one or two well-chosen credit cards are sufficient [4][5] Group 2 - The article highlights that a portfolio with fewer components is easier to manage and document, which is beneficial for both the investor and their loved ones or financial advisors [2] - It is noted that managing multiple credit relationships can be time-consuming and requires discipline, making a minimalist approach more practical for the average household [5]