Dilbert’s Unified Theory of Everything Financial

Paul Farrel at MarketWatch.com argues that Dilbert creator, Scott Adams, deserved to win the Nobel prize in economics for his ‘Unified Theory of Everything Financial’. Adams’ revealed “everything you need to know about personal investing.” in nine simple points in his book, Dilbert and the Way of the Weasel.

His formula:

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

Too simple? Things missing off the list? Sure, but have you taken care of these items in your own personal finances?

HatTip: Scott Adams: In Over My Head