Money Mysteries: Money advice in a nutshell

It’s a Catch-22 situation. People who do not understand the investment, and are still trying to understand things, of course, should take the advice of another person. However, they are not equipped to determine whether the advice they receive is good or bad.

Everyone is willing to offer advice, but the advice that some have actually worked for the person who gave it, could be quite inappropriate for someone else.

Business advisory providers are also problematic. If they work on commission, boards are certainly motivated by business considerations, rather than their interest. So where should you seek advice?

How about the financial advice of a designer, although very experienced? As a reader of this publication, who surely familiar with Scott Adams, the comic strip Dilbert is a very funny but desperate aspect in the reality of the business.

Few people know that Adams also wrote some of the best personal finance tips. He calls it a “book,” and his title is all he needs to know about financial planning. Except this “book” has not been published and only has 87 words.

Here, everything: make a will. Pay your credit cards. Get term life insurance if you have a family to maintain. Finish your 401 (k) to the max. Finish your IRA to the fullest. Buy a home if you want to live in a house and you can afford it.

Put six months of spending on a money market fund. Take the money you have left and invest 70% in equity funds and 30% in a bond fund through a discount broker, and never touch it until retirement.

Adams has a bachelor’s degree in economics. He also has an MBA and worked in a bank for eight years. It is so wonderful that despite these disadvantages, it is still talking about personal finances.

Adams said he started planning to write a book about personal finances. However, when he had thought in detail what the book had been simplified and the whole logical end, it was just these 87 words.

The good news is that these 87 words contain everything you need to know to plan your lifetime savings and investments.

Obviously, in India, 401 (k) and IRAs are replaced by appropriate equivalents such as PF, NPS and annual investments in ELSS funds.

For 70:30 plates, choose good mixed backgrounds and start SIP in each. Profits are tax-free even after one year.

Scott Adams has good comics in what he called the “financial entertainment” industry. In one, evil Dogbert explains his plan to launch an investment fund, “We are entering the game into financial services.

In this way, all our products can be imagined. We will start 10 mutual funds, each with values ​​selected at random. Later, we will build our ads around so does the best by chance. My goal is to be the first provider of imaginary experience. ”

I am sure that some managers of Indian investment funds recognize this strategy from personal experience. Obviously, Scott Adams understands much more than office life.