2006-10-10 02:37:12 · 3 answers · asked by Villain 6 in Business & Finance ➔ Investing
Unified Theory of Everything Financial
Revealed in Dilbert and the Way of the Weasels
By Scott Adams
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
Check the bottom line: A portfolio with an asset allocation of 70% in Vanguard's Total Stock Market Index (VTSMX) is doing just fine, performing remarkably close to the S&P 500 index. Moreover, that simple two-fund portfolio is perfect for the vast majority of America's 95 million investors who are passive much as Adam's Dilbert character.
The truth is, most investors have little or no interest in Wall Street's casino action; all the time-consuming research, the sophisticated stock-picking tricks, the costly trading necessary to play in a market drowning in 10,000 stocks, 18,000 funds and more than 100,000 bonds. Most investors have jobs and kids as their top priority. Moreover, Dilbert's simple two-fund portfolio compares favorably with our other lazy portfolios.
2006-10-10 04:34:58 · answer #1 · answered by dredude52 6 · 1⤊ 0⤋
Good performance is not forever; this years rising stars could be next years poor performers. This is your hard earn money that you put into these funds. You need to follow your fund and see where it is going periodically. Also, don't think some fund manager is going to give you a call and tell you your fund will not outperform, there job is to keep your money.
2006-10-10 05:35:46 · answer #2 · answered by Grandpa Shark 7 · 0⤊ 0⤋
Can't disagree with Dilbert too much but might have a few etfs like IAU (physical gold) & EWA (Australia) to keep some inflation protection along with my bonds & world index fund. If not going to do a lot of work/research better offf that way though it is not a casino.
2006-10-10 05:32:38 · answer #3 · answered by vegas_iwish 5 · 0⤊ 0⤋