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Survivorship Bias Is Everywhere
During World War II, researchers at the Center for Naval Analysis were trying to decide on where to add reinforcements to damaged aircrafts returning from their bombing missions. Reinforcements add extra weight so not all…
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A Spectrum Of Uncertainty
Bonds are safer than stocks. Cash is safer than bonds. Investing in startups is not for the faint of heart. On a risk-return spectrum, we see an upward sloping line as we go from safe…
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Any Fool Can Make A Fortune
Cornelius ‘Commodore’ Vanderbilt, the American railroad and shipping tycoon, died in 1877 and left behind a $95 million fortune to his eldest son, William H. Vanderbilt. $95 million might not put you anywhere in the Forbes…
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Kids & Money
There is seldom a parent who hasn’t gone through the tantrum-throwing phase of their kids’ lives. You walk into a store, the kid sees a toy and she must have it. You say no and…
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One Banker, Thousand Borrowers
What you feel is a good investment because of what you see and hear is seldom a good investment. A good investment is usually the one you don’t hear much about. Or if you do,…
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Bridging The Gaps
President Dwight D. Eisenhower was once quoted as saying that in preparing for a battle, I have found that plans are useless, but planning is indispensable. There is no perfect plan because change is the only constant.…
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If You’d Bought This Stock 20 Years Ago
You’d see these clickbait stories every now and then. They let you dream about the easy riches you would have earned had you wagered on this or that stock. Dreams are great but acting upon…
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Adding Fuel To Fire
Mary Hunt profiles three types of people in her book 7 Money Rules for Life on how they deal with money and how it impacts their well-being and happiness. So, say they made the same amount of money…
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Your Retirement Number
William P. Bengen, an aeronautical engineer turned financial advisor, first talked about the 4 percent rule in a 1994 paper he published in the Journal of Financial Planning. That rule later turned into a widely…
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The Three-Legged Stool
Post-World War II retirement planning was easy. We had pensions. There was income from Social Security. And we had our own savings. Those three things made up for a sturdy three-legged stool that took us…