Dilbert Guide to Investing

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
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Guido
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Dilbert Guide to Investing

Post by Guido »

pkcrafter
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Post by pkcrafter »

Thanks for the post--entertaining and accurate.

Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.
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mickeyd
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Post by mickeyd »

Mr. Adams says he doesn't consider buying broad index funds and index ETFs to be "investing"—and he means that as a compliment. He doesn't believe ordinary investors or financial pros really have any insight into what is going to work, so he equates investing—or trying to boost returns by making selections based on some intelligence or research or expert advice—with "junk science and astrology," he says.


I have always suspected that Scott Adams is a closet Boglehead. I would not be surprised if he is a "secret" poster here.
Part-Owner of Texas | | “The CMH-the Cost Matters Hypothesis -is all that is needed to explain why indexing must and will work… Yes, it is that simple.” John C. Bogle
chaz
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Post by chaz »

Thanks for the nice link.
Chaz | | “Money is better than poverty, if only for financial reasons." Woody Allen | | http://www.bogleheads.org/wiki/index.php/Main_Page
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BigFoot48
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Post by BigFoot48 »

mickeyd wrote:I have always suspected that Scott Adams is a closet Boglehead.
Sounds highly probable!
Almost 10 years ago, the cartoonist did a lot of reading about investing as part of an effort to write a "Dilbert" ebook about personal finance. But he says that when he went to put his thoughts into writing, he was "highly disappointed that they all fit on half of one page."
Retired | Two-time in top-10 in Bogleheads S&P500 contest; 15-time loser
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Taylor Larimore
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Scott Adams' "Nine rules for investing"

Post by Taylor Larimore »

Hi Bogleheads:

Mr. Adams' nine simple rules for investors:
Everything you need to know about investing:

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
"Simplicity is the master key to financial success." -- Jack Bogle
YDNAL
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Re: Scott Adams' "Nine rules for investing"

Post by YDNAL »

Taylor Larimore wrote:Hi Bogleheads:

Mr. Adams' nine simple rules for investors:
Everything you need to know about investing:

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
Some other investing thoughts.
Betting on the Bad Guys
Landy | Be yourself, everyone else is already taken -- Oscar Wilde
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Dan Moroboshi
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Post by Dan Moroboshi »

Image

Here's the cartoon that accompanies the article.
chaz
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Post by chaz »

Dan Moroboshi wrote:Image

Here's the cartoon that accompanies the article.

Thanks for posting that good "comic strip".
Chaz | | “Money is better than poverty, if only for financial reasons." Woody Allen | | http://www.bogleheads.org/wiki/index.php/Main_Page
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Sunny Sarkar
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Re: Scott Adams' "Nine rules for investing"

Post by Sunny Sarkar »

Taylor Larimore wrote:Hi Bogleheads:

Mr. Adams' nine simple rules for investors:
Everything you need to know about investing:

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
I am a HUGE fan of this list, but I never understood why #8 (asset allocation) applies only to taxable account and was not worded to include #4 (401k) and #5 (IRA) in the asset allocation - I mean what does the investor do with her fully funded 401k & IRA money? Shouldn't the 70/30 asset allocation spread across all her accounts?

Best,
Sunny

p.s. I think putting "Make a will" at #1 on the list is pure genius - I've not seen any other place where this often forgotten and neglected part of personal finance is given its due importance.
"Buy-and-hold, long-term, all-market-index strategies, implemented at rock-bottom cost, are the surest of all routes to the accumulation of wealth" - John C. Bogle
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SSSS
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Post by SSSS »

I read the comments attached to that article. This one is rage-inducing:
I don't know why everyone who is so quick to complain about the cost and complexity and cost of actual investments doesn't just put all their money into an inexpensive and straightforward passbook savings account.

No muss, no fuss, no restrictions, no risk, no greedy greedy greedy investment advisor.

Oh wait, I do know why.
Most of the post makes him sound like a shady broker/advisor, and the phrase "passbook savings account" makes him sound about 140 years old.
Fallible
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Post by Fallible »

mickeyd wrote:

I have always suspected that Scott Adams is a closet Boglehead.
I think Adams is one of the most financially astute cartoonists going, not to mention an excellent writer. But I think he is first and foremost a cartoonist and I'd bet that most, if not all, cartoonists are closet Bogleheads.

Also, can't resist passing on a New Yorker cartoon a few years ago by Leo Cullum that Bogleheads have got to love: A broker says to a potential client, "My fees are quite high, and yet you say you have little money. I think I'm seeing a conflict of interest here."
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stratton
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Post by stratton »

The WSJ article mentions his asset allocation.

20% S&P 500
5% MSCI EM index (EEM)
75% individual muni bonds.

Looks like he doesn't have a high need for more wealth.

Paul
...and then Buffy staked Edward. The end.
Early
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Post by Early »

I'm sure that his investment strategy is a little different and he does just fine.
FafnerMorell
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Post by FafnerMorell »

Given all the books, etc he's got out, I would expect he's got a steady royalties stream. Also, I'm pretty sure he lives in California - so he's got heavier state taxes (as a likely "high income individual") to manage.
NYnative
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Post by NYnative »

[quote="SSSS"]I read the comments attached to that article. This one is rage-inducing:

[quote]I don't know why everyone who is so quick to complain about the cost and complexity and cost of actual investments doesn't just put all their money into an inexpensive and straightforward passbook savings account.

No muss, no fuss, no restrictions, no risk, no greedy greedy greedy investment advisor.

Oh wait, I do know why.[/quote]

Most of the post makes him sound like a shady broker/advisor, and the phrase "passbook savings account" makes him sound about 140 years old.[/quote]

This is a comment by a reader, not in the actual Adams article. Why would it be rage inducing? It's just a comment by someone and has no affect on the article itself.
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Rob5TCP
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Post by Rob5TCP »

Here is the link to the New Yorker cartoon: "


http://www.cartoonbank.com/1989/my-fees ... vt/113947/
Fallible
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Post by Fallible »

Rob5TCP wrote:

Here is the link to the New Yorker cartoon:
Thanks for adding that; I should've taken time to find it. Another frequent New Yorker cartoonist, Charles Barsotti, may also be a Boglehead at heart. Here's the thread to one of my favorites:

http://www.cartoonbank.com/2009/invest- ... vt/133985/
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