• MillenialDad

Scott Adams' One Page Financial Advice

Scott Adams is famously known as the creator of the Dilbert comic strip. Adams also has a daily live stream called Coffee with Scott Adams that can be found on YouTube and Periscope or Apple Podcast where he talks about news, current events, politics, and deciphers this information through his knowledge in hypnosis and persuasion. I find this episode where he explains cognitive dissonance and the various ways it manifests very valuable and a good introduction to understand what he's about.

On a recent episode of his show, he mentioned how he considered writing a book about financial advice about a decade ago. He realized that all the information people need was contained in the following bullets and if he were to write a book, he'd have to fill it with lots of fluff. This advice is so good that the author of one of the most famous stock investing books A Random Walk Down Wall Street asked if he could add it to the next revision of his book. Adams claims he never followed up to see if it was actually added and published, he still found the endorsement of an investment professional a badge of honor.

The list is as follows:

  • Make a will.

  • Pay off your credit card balance.

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

  • Fund your company 401K to the maximum.

  • Fund your IRA to the maximum.

  • Buy a house if you want to live in a house and can afford it.

  • Put six months’ expenses in a money market account.

  • Take whatever is left over and invest it 70 percent in a stock index fund and 30 percent in a bond fund through any discount brokerage company and never touch it until retirement

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

This is pretty simple, straight forward information that applies to nearly every adult American. There are plenty of free, online resources to find out more information about any of these points but to have the big picture and save many hours reading a 300 page book by some self proclaimed financial guru, you now know what you need about approaching your finances.

Be sure to follow Scott Adams on Twitter:

And if you're already a fan, consider following him on Locals for more in depth content.

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