Sound Advice

Canadian Capitalist highlights Dilbert’s Financial Plan, with a key modification for Canuck audiences.  Now you might think that Dilbert author Scott Adams writes an awful lot of stuff tongue-in-cheek, and you’d be right, but this is in earnest.  It’s worth reading, and more than that, it’s worth putting into practice.

  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 RRSP to the maximum
  5. Buy a house if you want to live in a house and can afford it
  6. Pay down your mortgage (if you have one) as fast as possible
  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

Like Canadian Capitalist, I haven’t written up a will yet, so I suppose I should put that on the near-term To-Do list.

Category: Finance
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