It seems that Paul Farrell at MarketWatch thinks that Scott Adams' 9 point financial plan is worthy of a Nobel Price in Economics. Scott (yes, the Dilbert guy) sees this as another example of being in over his head.
Let's look at Scott's plan. It's actually not a bad personal finance benchmark:
- Make a will
Nope. I haven't done that yet.
- Pay off your credit cards
- Get term life insurance if you have a family to support
No family to support, so no life insurance.
- Fund your 401k to the maximum
Done. Thank you, Vanguard!
- Fund your IRA to the maximum
Done. Thank you, Schwab!
- Buy a house if you want to live in a house and can afford it
Done. It's not even close to paid off, but I'm chipping away at it.
- Put six months worth of expenses in a money-market account
- 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
Sort of. I have more like 95% in stocks right now, but I'm also nowhere near retirement yet.
- 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
I'm not confused, retiring, planning for college, or having tax issues.
Overall, I guess I benchmark pretty well. How do you do?
Posted by jzawodn at October 10, 2006 03:37 PM