The Inertia of Inaction A few years ago, my wife and I watched The Way Back, a “based on a true story” account of prisoners who escaped the Siberian Gulag on foot, finding their freedom in India. The following is a conversation between two of the escapees: JANUSZ: He has a plan. SMITH: Who? JANUSZ:… Continue reading May 2021 Update
I wish I’d started earlier taking advantage of 529 accounts. I’m running out of precious years of compounding. But what about the so-far untapped compounding for any future grandchildren? Using current assumptions, what would a plan to fund college-bound grandchildren look like? Comfortably on the Couch I can’t open 529s for grandkids that don’t yet… Continue reading Couch to 529
Last month, my 2000 Honda Civic LX turned twenty-one. Most of its 156,498 miles were earned during the first seven years of its life when it was our only vehicle. When I bought it in 2000, I drove it off the lot, brand new, for $15,631. What I didn’t know at the time is how… Continue reading How to get a brand new Honda Civic for $4,000!
Recently, while reading Lifecycle Investing by Ian Ayres and Barry Nalebuff, I wondered how to calculate my relative risk aversion(RRA). Financial advisors often ask their clients a series of questions to calculate their risk and determine the suitability of different types of investments. These questionnaires are challenged because many people often say one thing but… Continue reading How much risk will I tolerate?