Scott Adams (creator of Dilbert) guide to finances

Unlike Scott Adams cartoon, this advice is serious. It is great if you don't have special circumstances and just want a simple way to to invest.

I would insert before 4 to setup an emergency fund that is at least 3 months of living expenses in case you lose your job, car breaks, a/c goes out, family death that require travel, etc. I would also say that if you don't have a 401 (k) available then get an IRA or Roth IRA, or do automatic investment into a mutual fund.

Regardless the list below is good advice.

Do in the order below:

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 401(k) to the maximum. Fund your IRA to the maximum. Buy a house if you want to live in a house and you can afford it.
5. Put six months' expenses in a money market fund.
6. 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.
7. 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.

Understanding Volatility

Most people judge the risk of an investment by its volatility—how sharply its value may rise or fall over time. The amount of volatility you may feel comfortable with depends on your investment goals, time horizon and tolerance for risk. For mutual fund investors, risk is often measured by two statistics that use volatility of returns in their determination: standard deviation and beta.

STANDARD DEVIATION
Standard deviation measures a fund's volatility relative to its own past performance. If a fund's annual returns vary widely from year to year, the fund will have a relatively high standard deviation of returns. If a fund's annual returns are fairly consistent from year to year, the fund will likely have a lower standard deviation of returns.

BETA
Beta compares a fund's volatility to an appropriate benchmark, often the S&P 500 Index for broad U.S. stock funds. A beta of 1.00 means that a fund's total returns have shown the same degree of volatility as the S&P 500 Index. A beta greater than 1.00 indicates more historical volatility than the index, while a beta less than 1.00 indicates less volatility.

HISTORY LESSON
Investors concerned about volatility may want to look for funds with a lower standard deviation or a beta that is equal to or less than the broader market. Looking at standard deviation and beta together is one way to get a good picture of a fund's historical volatility. .


-- Taken from SmartMoney THE WALL STREET JOURNAL MAGAZINE

Get Sky High Heating Bills Down to Earth

The cost of home heating continues to hit the homeowner harder each year. But sometimes you can end up spending even more than necessary by overlooking energy wasters in your home that, in many cases, are easy to remedy.
A home energy audit can help by pinpointing these areas and identifying ways to cut energy costs. In fact, you can conduct a simple audit on your own by following a few recommendations from the Department of Energy. To take stock of your home energy use:
• Check insulation levels in your attic, exterior and basement walls,ceilings, floors, and crawl spaces.
• Check for holes or cracks around your walls, ceilings, windows, doors, light and plumbing fixtures, switches, and electrical outlets.
• Check for open fireplace dampers.
• Check caulking and weather stripping, and repair if necessary.
• Schedule an annual tune-up for your heat pump, furnace or boiler.
• Seal and insulate leaky ducts to ensure that the airflow distribution system serving your heating equipment is operating at peak efficiency.
• Clean warm-air registers, baseboard heaters, and radiators as needed; make sure they're not blocked by furniture, carpeting, or drapes.
• Seal holes around plumbing and heating pipes.

As Winter sets in, make an effort to set your thermostat as low as is comfortable. Or consider having us install a programmable thermostat that will automatically lower temperatures at night or during the day when the home is unoccupied. When you call us for a tune-up, ask for an estimate of how much you can save with a new energy-efficient system.

-- Taken from airfactor cooling and heating, inc newsletter

What are sector funds?

Investors hoping to pursue specific growth opportunities may want to talk to their financial advisor about sector funds. A sector fund focuses exclusively on a well-defined segment of the economy such as technology, financials or health care. If your portfolio is underweighted in a specific sector, a sector fund can help you diversify and pursue specific growth opportunities that you believe may exist in the marketplace. However, with additional opportunity comes additional risk. Sector funds are typically more volatile than broad market funds, so you should carefully review your investment goals and tolerance for risk before considering whether or not a sector fund may be right for you.

Drunk Irishman Joke

An Irishman had been drinking at a pub all night.

The bartender finally said that the bar is Closing. So the Irishman stood up to leave and fell flat on his face. He tried to stand one more time; same result. He figured he'll crawl outside and get some fresh air and maybe that will sober him up.

Once outside, he stood up and fell on his face again. So he decided to crawl the four blocks home. When he arrived at the door he stood up and once again fell flat on his face. He crawled through the door and into his bedroom.

When he reached his bed he tried one more time to stand up. This time he managed to pull himself upright, but he quickly fell right into the bed and was sound asleep as soon as his head hit the pillow.

He was awakened the next morning to his wife standing over him, shouting,
"SO YOU'VE BEEN DRINKING AGA1N"

Putting on an innocent look, and intent on bluffing it out he said, "What makes you say that?'

'The pub just called; you left your wheelchair there again."

Max pain reliever per day

According to the Food and Drug Administration (FDA), more than 56,000 people visit the emergency room each year due to an overdose of acetaminophen, the active ingredient in popular pain relief drugs like Tylenol. The major reason for an acetaminophen overdose is because people do not pay close attention to their daily dose of the drug. So, the FDA recommends you take no more than 8 extra-strength pills (4,000 milligrams) per day.

MLS listing codes

Every wonder what all those letters mean when you look at the MLS listings. Wonder no more.

F - Family room
B - Both evaporative cooler and a/c
D - Formal dining room
X - Fireplace
P - Pool
S - Spa
Q - Quest house
1G - 1 car garage
1C - 1 car carport
1S - 1 car slab
2G - 2 car garage
2C - 2 car carport
2S - 2 car slab