Archive: Financial Planning Posts

Gravel Roads and Beer

Particularly peaceful about my recent trip to South Dakota was the absence of modernity. It felt like I stepped back into the days of settlers crossing the plains in covered wagons carring everything they owned. I, like you, am so connected to everybody and everything around me from a technology standpoint. The constant flow of

Intelligent Error

There are distinctive patterns in the errors people make. The reasons for this are many. Daniel Kahneman in his excellent work “Think Fast and Slow,” takes his reader down a thoughtful path to uncover how and why we make decisions – how and why we make the same mistakes over and over again. Kahneman explains

Shooting a Fly with a Shotgun

Once success happens you can no longer say, “I will continue my life now as it was before.” Tennessee Williams in his masterpiece, “The Catastrophe of Success,” lays out a manifesto for the wealthy. His writing is neither flattery of wealth nor demeaning of the trappings that follow. Instead, he points to the mindset that

Money Management In One Lesson

In the classic book, Economics in One Lesson, Henry Hazlitt argues a lucid point. In the absence of strong voices bold enough to contradict bad theory, bad theory eventually argues against itself. Hazlitt points out how economic fallacies are self-expiring. And how the potentially clarifying nuances of the original idea, over time, fall off as

Financial Physics – Part IV

The Safety Net As mentioned in Part III, either we reinvent old ideas (Madonna) or come up with brand new ones. Either way, the market requires we constantly adjust. In this our last installment of financial physics let’s discuss the importance of preparing for change, especially the change you don’t want to happen. I hate