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Monday, October 16, 2006

Best Financial Advice Ever!!!

Dilbert's Unified Theory of Everything Financial'

1. Make a will

2 .Pay off your credit cards

3. Get term life insurance if you have a family to support

4. Fund your 401k to the maximum

5. Fund your IRA to the maximum

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

9. If any of this confuses you, or you have something special going on (retirement, college planning, tax issues), hire a fee-based financial planner, not one who charges a percentage of your portfolio

1 comment:

Brian Y. said...

I disagree with the statement about putting 6 months of bills into money market. It doesn't need to be that liquid of an asset. Putting that same money into CD's will get a better return. Just make sure the penalty for taking your money out early is not that bad. I think I have a few CD's where the penalty is only 2 months interest. If you never need the money, you get a better return and if you DO need the money, who cares if you lose a little interest?