What are Dilbert’s 9 Financial Secrets?

Paul Farrell over at MarketWatch had a good read on Scott Adams, creator of Dilbert, and his simple financial rules. Few people know that Scott Adams came in second place in the voting for the Nobel Prize in Economics with this landmark discovery. Without further ado:

1. Make a will (Don’t forget your living trust while you are at it).
2. Pay off your credit cards.
3. Get term life insurance if you have a family to support (Don’t forget long term health care insurance).
4. Fund your 401k to the maximum.
5. Fund your IRA to the maximum (What, no Roth funding?)
6. Buy a house if you want to live in a house and can afford it.
7. Put six months worth of expenses in a money-market account.
8. Take whatever money is left over and invest 70% in a stock index fund and 30% in a bond fund through any discount broker and never touch it until retirement. (Then what happens-Is that bond fund going to fund my monthly living expenses. Do I sell a portion of those index funds? When and how much?)
9. If any of this confuses you, or you have something special gong on (retirement, college planning, tax issues, hire a fee-based financial planner not one who charges a percentage of your portfolio.

There you have it ladies and gentlemen everything you need to know about investing in the “Unified Theory of Everything Financial.” Sweet…There is now no need for Suze Orman or Robert Kiyosaki to write another book on the subject matter. 😉
Via: MarketWatch

Steve Mertz
Thanks Dilbert!

3 Responses to “What are Dilbert’s 9 Financial Secrets?”

  1. Anonymous says:

    Anything to get rid of Suze and Robert.

    Bill
    Ask Uncle Bill

  2. Sharon Tucci says:

    Steve, thanks for sharing that… but I have to say that – like most of the lists out there – this doesn’t necessarily ‘fit’ every situation. It’s suitable for your typical middle class white collar worker but what about the rest of the population?

    For example, I fall into the self-employed professional category. WHY would I put whatever is left aka point 8 into a stock index fund and bond fund when I can realize considerably better returns by investing directly into my own business or into other businesses?

    Personally, I think that point #9 should be first on the list. Sit down with a certified financial planner (who won’t be making a cut off of whatever financial products you are pushing them on) to design a financial plan based on *your* needs.

    Just my two cents.

  3. Andrew says:

    Great post. I am amazed at the amount of people who are so against a financial advisor or planner getting paid commission. If you run your own business then you are charging for some product or service you offer. A financial planner is doing the same thing, i.e. offering a service and advice based on their experience and expertise.

    Number 3 is the typical one size fits all term life insurance. Term life is not for everyone just as permanent life insurance is not for everyone. Most people that say “term good, permanent bad” know little about how life insurance policies work.

    As always every single person and family is in a different situation and therefore one financial plan will not fit all.

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