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Old 10-17-2020, 10:17 AM   #21
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Originally Posted by AtlasShrugged View Post

Here's one cause of bad decisions that's really worth remembering.

"Being influenced by the actions of people who are playing a different game than you are. The idea that advice can be good for one person and terrible for another is rarely obvious. Taking your cues and advice from people with different goals, abilities, and desires than you is an easy road to misery. But it’s common, because smart people you look up to tell you it’s good advice. The number of things that are true for everyone in finance is small; everything else is just figuring out how much risk you want to take and what you want out of life, which is different for everyone."
There is a lot of truth in the above especially if the smart person is also wealthy. As Tevye said in Fiddler on the Roof, "When you're rich they think you really know."

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Old 10-17-2020, 12:01 PM   #22
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Good article.
One of the things I so enjoy about this forum is different perspectives, but all focused on helping others achieve financial goals, whether FIRE or SIRE. I don't often see a "you should do this" but more often "have you considered...". Most posts are focused on helping and giving information, so others can make their own decisions.
Along with the numerous other interesting forums, I learn so much here.!
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Old 10-20-2020, 03:58 PM   #23
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The problem with taking advice is you may be letting someone else do your thinking for you. "Advice" should only be a data point in the decision you ultimately make.

Yes, you should listen to 70 and 80 year-olds and consider their advice and guidance as part of the equation but not the answer.

Humans usually learn better from their mistakes rather than their successes. But sometimes they learn the wrong things from either. Listening to someone tell you about how they did something and more importantly, what did not work for them, may help keep you from making a similar mistake. If nothing else you may become aware of an unanticipated potential pitfall simply because someone shared their experience with you.

Ray
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Old 10-20-2020, 04:35 PM   #24
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Here is a link to Scientific American article by Dan Kahan on same subject.
https://blogs.scientificamerican.com...-before-truth/

It's on my list of to-read articles now.
Kahan has an interesting point, but I wonder if the people lower on the 'ordinary science intelligence' scale and the 'actively open-minded thinking' scale simply didn't care enough when filling out the questionnaire. I can just see them (whether they identified themselves as liberal or conservative) saying (in my best SoCa teen accent) "whut-EV-arrrrr" and just picking something.
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Old 10-20-2020, 05:52 PM   #25
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His recent book "The Psychology of Money' is well written also.

Good luck & Best wishes....
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Old 10-20-2020, 06:33 PM   #26
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Reminds me of one of those satire motivational posters:
"None of us is dumb as all of us"
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Old 10-21-2020, 07:29 AM   #27
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DEmotivational. See dispair.com
Ah, despair.com. One of my long-time tribes!

One of my favorites: "The only common denominator in all your failed relationships . . . . is you."

And on a poster I had at work years ago hanging behind my door:

"All we ask here is that you give us your heart" (underneath a picture of a Mayan temple).
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Old 10-21-2020, 07:34 AM   #28
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This rampant on bogleheads. The advice from long time posters on that site comes from a perspective of 70 and 80 year olds, advising 30 year olds on "what I would do".

A 30 year old should not do what an 80 year old would do, financially speaking.

Nothing wrong with being 70 or 80. I hope to achieve that some day, God willing. Financial actions and strategies for people on that site, and probably this one, are vastly different because of different situations and goals.
I visit b-heads 1-2x/mo. I don't see most responses the way you see them. I see them more of recommending what they would do investment-wise if 30, not what they would for themselves at whatever age they are.

That said, yes they all reco buy & hold for long-term, not frequent changes. But they also reco rebalancing periodically or if circumstances change. If day trading ought to be the recommendation for some people, then you're right that all b-heads reco the same thing.
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Old 10-21-2020, 03:47 PM   #29
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I enjoyed reading this article. Years ago I was doing some research on what makes scientists successful for a class I was reaching. One thing that stood out was that older scientists would abandon an idea if there was evidence that contradicted it, but younger ones would ignore any disconfirming evidence. I find this to be true. Many people (including me) will often stick to ideas they already have, even when new information comes along.
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Old 10-22-2020, 08:56 PM   #30
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Originally Posted by NXR7 View Post
The problem with taking advice is you may be letting someone else do your thinking for you. "Advice" should only be a data point in the decision you ultimately make.

Yes, you should listen to 70 and 80 year-olds and consider their advice and guidance as part of the equation but not the answer.

Humans usually learn better from their mistakes rather than their successes. But sometimes they learn the wrong things from either. Listening to someone tell you about how they did something and more importantly, what did not work for them, may help keep you from making a similar mistake. If nothing else you may become aware of an unanticipated potential pitfall simply because someone shared their experience with you.

Ray
@NXR7 I agree with this, to listen to people and add their views into the big pot for consideration.

This summer I was speaking with a mid-80s yr old gentleman who is/was a successful investor for himself, and whom I respect. He was talking glowingly about 3% dividend stocks. From his point of view, what he told me makes perfect sense. From my point of view as an early 50s yr old, I think it makes very little sense.

Investing discussion sites skew higher in age than many site participants may realize. This needs to be taken into account when evaluating advice.
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Old Yesterday, 08:40 AM   #31
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If more people played it with "strong convictions, loosely held", everybody would be better off. Unfortunately, that's not the default behavior mode; nobody wants to have been wrong. Read "Mistakes Were Made, But Not By Me" to get a taste of this. I find the topic fascinating.
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