Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Dirk Cotton : Minimizing regret
Old 01-08-2018, 10:10 PM   #1
Thinks s/he gets paid by the post
walkinwood's Avatar
Join Date: Jul 2006
Location: Denver
Posts: 3,021
Dirk Cotton : Minimizing regret

I enjoyed this post by Dirk Cotton and thought I'd share it here.

The Retirement Café: Minimizing Regret

It is more about a philosophy than any specific action - and that is to act in a way that will minimize future regret. And to do so by imagining yourself in the future, living with a bad outcome based on the decision you're about to make. If you can say that you'd make the same decision again (given what you knew at the time), then its the right one to make.

I hope I explained that correctly. He's a much better writer than I am. Dirk is another blogger that's worth following in my humble opinion.

walkinwood is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 01-10-2018, 10:36 AM   #2
Recycles dryer sheets
Join Date: Feb 2013
Location: San Jose
Posts: 201
I wonder if this may be why I can't seem to let go of OMY syndrome, I've got a pretty good work arrangement now, and while the income isn't necessary, who knows if it might help me or someone close to me in the future?

I think this "minimize regret" only works when all your unknowns are known or foreseeable because even though I can estimate what I'd give up by pulling the plug at work, I think there's no way to know what I miss out on by not taking the time to look hard for something better. Of course I could easily regret chasing waterfalls, as I have a relative who did exactly this-- and he actually doesn't regret it at all, but I think I probably would if it all happened to me.

Maybe this scheme is easier to apply for those starting their careers after finishing school, like in the decision to at least grab the company match on the 401k. To me the FI part is pretty one-sided but the RE isn't as clear.

dunkelblau is offline   Reply With Quote
Old 01-10-2018, 11:15 AM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jun 2005
Posts: 9,840
It's an OK article, but I thought it was going to be more about Regret than about making good decisions based on probability.

The book Decisive by Heath & Heath covers making good decisions across a broad spectrum of issues including investing in a much better way.

Behaviorial finance books cover Regret better. For instance, normal people seem to have an irrational fear of a poor outcome from a decision they might make. Some people will avoid decision making (analysis paralysis) even when a good decision-making process leads to a good enough decision (say based on probability and other things).

So how to get over this analysis paralysis and/or how to not worry about Regret is something that can be taught.

Anyways, thanks for sharing the article.

And sometimes in a basketball game, your teammates are passing the ball to you because you have the best chance of making the shot. They don't want you to avoid regret and pass the ball away.
LOL! is offline   Reply With Quote
Old 01-10-2018, 12:15 PM   #4
Thinks s/he gets paid by the post
38Chevy454's Avatar
Join Date: Sep 2013
Location: Cincinnati, OH
Posts: 2,346
I didn’t read the article but it seems obvious to me that we always make decisions based on some measure of probability. Rarely do you have 100% of information, at least on bigger decisions. As an engineer I routinely made decisions based on a limited amount of data. The key is knowing when you have enough and therefore maximize the good result probability.
The advice we're giving you is invaluable, that's why it's free
Experience is a good teacher, but the tuition can get expensive real fast

Semi-Retired 7/1/16: working part-time (60%) for now [4/24/17 changed to 80%]
Retired Aug 2, 2017; age 53
38Chevy454 is offline   Reply With Quote
Old 01-10-2018, 01:18 PM   #5
Thinks s/he gets paid by the post
Huston55's Avatar
Join Date: Jul 2011
Location: The Bay Area
Posts: 2,505
I’m a big Dirk Cotton fan but, this article was just OK. He’s written many better posts.
You may be whatever you resolve to be.

100% x 10% > 10% x 100%
Huston55 is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Investment Accounts - Minimizing Taxes in the Long Run ThisIsMe Young Dreamers 8 01-10-2017 10:05 AM
Dirk Cotton -"Statisticians Make the Worst Clients" haha FIRE and Money 30 10-10-2013 10:10 PM
Minimizing MAGI for PPACA FinanceGeek Health and Early Retirement 133 10-08-2013 05:31 AM
Minimizing long term capital gains wanaberetiree Other topics 17 12-30-2011 02:19 PM
Long term storage of cotton (Linen) Drapes Lakewood90712 Other topics 3 11-26-2010 08:24 AM

» Quick Links

All times are GMT -6. The time now is 01:23 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2020, vBulletin Solutions, Inc.