Scott Adams (Dilbert) takes on financial advisors

[Nords]

Scott Adams Blog: Investing 07/09/2009

Part of the pitch for this financial service was that I would get to approve any adjustments to the portfolio they recommend.
Pause to digest that.
If I were smart enough to override the advice of experts, why would I pay the experts for advice?
The entire system depends on me being dumb enough to think that concept makes sense. And what exactly was the opposite of that arrangement? Do other companies propose to invest your money against your will?

One of the recurring themes of his (heavily followed and commented) blog is that he'll propose an out-of-the-box idea, and then commenters will compete to be the first to point out that his idea already exists:

Someday someone will create a web service that has a few dozen sample portfolios that can fit just about any need. The user will answer a series of questions about his situation, and the system will spit out a portfolio suggestion. After that, the system will generate e-mails asking you to update your personal situation, in case that changes the portfolio recommendation, and alert you if any of your investments need to be tweaked.
Now you will tell me it is already being done.

 

[LOL!]

Bogleheads :: View topic - A toy portfolio designer is a link to one such portfolio design tool. Very simple.

I love the comment about "Bayesian filter system" in the first comment. I use Bayesian inference and statistics every single day. It's great stuff!

For more personal portfolio design, Bogleheads will do that as well. One just needs to anonymously post their assets, income, tax-bracket, goals and whifty-snoo you get a portfolio given to you that is discussed by several folks to reach a reasonable consensus just for you personally.

 

[clifp]

Personally, I love the idea of giving 1/2 the portfolio to the FA to manage. Then duplicate what the FA does thereby saving 1/2 the fee.

Scott Adams is no dummy.

 

[pedorrero]

i didn't know he had a blog. In one of his books ("The Way of the Weasel" I think), he had a rare serious section, talking about talking to a financial advisor. Then, he capsulized the main advice into like 1/2 a page. Then, Adams concluded "The only joke here is the one on you, if you pay for advice like this."

 

[mickeyd]

Dilbert on Investing • 1

 

[Nords]

In one of his books ("The Way of the Weasel" I think), he had a rare serious section, talking about talking to a financial advisor. Then, he capsulized the main advice into like 1/2 a page. Then, Adams concluded "The only joke here is the one on you, if you pay for advice like this."

Scott’s 9-Point Investment Plan
Do these steps in the order shown…
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

The Dilbert Blog: Happiness Formula

 

[FinanceDude]

The Dilbert Blog: Happiness Formula

70% stock index fund and 30% in bonds? That didn't work too well the last 10 years. 10 bucks says he's in zero coupons like Suze Orman......