|
|
Why geezers give the best investment advice
10-05-2011, 07:35 AM
|
#1
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,021
|
Why geezers give the best investment advice
This guy had obviously had a deadline to meet Interesting perspective on how to choose a financial adviser:
Quote:
...the next time you talk with a financial adviser or broker, instead of inquiring about investment performance, you might want to ask, “How old are you?”
|
Quote:
It’s true that the ability to analyze, process and retain new information—what scientists call “fluid intelligence” — peaks around age 20. But another type of smarts, “crystallized intelligence”— otherwise known as experience and knowledge — actually builds with age. Right around our early 50s, these two divergent trajectories intersect.
Just look at the 20-something day traders and mutual-fund managers during the late 1990s dot-com boom who argued that “this time it’s different.” Meanwhile, famed value-stock investor Warren Buffett, then pushing 70, was dismissed as hopelessly out of touch for not buying the technology hype. Where are those Internet-stock fund managers now and, moreover, their high-octane funds? Not in Buffett’s league, for sure.
|
Why geezers give the best investment advice
__________________
Numbers is hard
|
|
|
|
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 Early-Retirement.org 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!
|
10-05-2011, 07:51 AM
|
#2
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2007
Location: New Orleans
Posts: 47,500
|
Quote:
Based on the evidence found in the research, anyone between 43 and 63 “is really in their cognitive sweet spot,” said David Laibson, a Harvard University professor and, at 45, the oldest of the study’s four authors.
|
I dunno. At 63, I sort of think a 45-year-old might not be the best one to determine that window...
Seriously, I do think that the type of intelligence we have evolves with time. For example the ability to see the big picture is something that seems to improve as we age.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.
Happily retired since 2009, at age 61. Best years of my life by far!
|
|
|
10-05-2011, 08:19 AM
|
#3
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2008
Location: No fixed abode
Posts: 8,765
|
Of course, if the advisor is in his mid to late 60s, your next question might be "if you're so good, why are you still working?" Assuming you would get an honest answer, if it wasn't "because I love what I'm doing" you might want to look elsewhere. No matter how chrystallized their intelligence might be.
__________________
"Good judgment comes from experience. Experience comes from bad judgement." - Anonymous (not Will Rogers or Sam Clemens)
DW and I - FIREd at 50 (7/06), living off assets
|
|
|
10-05-2011, 08:26 AM
|
#4
|
Thinks s/he gets paid by the post
Join Date: Mar 2006
Location: Houston
Posts: 4,337
|
Why would you want a finacial advisor? If I had to have one, I'd want to her to be a hot 20 something that was usually scantily clad. Even then, I certainly wouldn't listen to her advice on what to do with my money.
__________________
The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane -- Marcus Aurelius
|
|
|
10-05-2011, 08:52 AM
|
#5
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2004
Location: the City of Subdued Excitement
Posts: 5,588
|
Quote:
Originally Posted by harley
Of course, if the advisor is in his mid to late 60s, your next question might be "if you're so good, why are you still working?" Assuming you would get an honest answer, if it wasn't "because I love what I'm doing" you might want to look elsewhere. No matter how chrystallized their intelligence might be.
|
Old Dutch saying: "We grow too soon old and too late smart."
It took me a fair amount of time to get smart about personal finance. My folks were a good model, but did not actually teach us what they had learned. Pop worked for the government and admitted that what he knew wouldn't be much help to us vis-a-vis retirement. (He underestimated himself.) I was led down the false path for a long time by financial porn. I made mistakes. Fortunately, I wised up--not early enough to be financially independent by now, but not too late to avoid disaster.
By now, I can be a good financial advisor to my kids. Of course, they won't listen, but at some future time they may remember enough to save themselves.
As it happens, I do enjoy what I am doing (engineering, not FP), but I have no aspirations to become anyone else's financial planner or teach in the community colleges or work for Edward Jones or anything like that.
__________________
I have outlived most of the people I don't like and I am working on the rest.
|
|
|
10-05-2011, 09:05 AM
|
#6
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2006
Posts: 12,880
|
"these two divergent trajectories intersect."
This is such a thoughtless phrase. I know he's trying to say that in the 50s, you're not yet senile and you've gained experience, but there is no intersection of lines because the variables are different. Even if there were, there's no reason to think that the intersection represents some optimal point.
Sorry, I just don't like phrases that have meaning only if you already know what the writer wants to convey.
Logic police out.
__________________
Al
|
|
|
10-05-2011, 09:15 AM
|
#7
|
Moderator Emeritus
Join Date: Sep 2007
Posts: 17,774
|
Even Warren Buffet was young once.
This thread would get a lot of hits if you had just called it "Why geezers give the best....", REW.
__________________
“Would you like an adventure now, or would you like to have your tea first?” J.M. Barrie, Peter Pan
|
|
|
10-05-2011, 09:18 AM
|
#8
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,021
|
Quote:
Originally Posted by Bestwifeever
This thread would get a lot of hits if you had just called it "Why geezers give the best....", REW.
|
Please change the thread title for me...
__________________
Numbers is hard
|
|
|
10-05-2011, 11:09 AM
|
#9
|
Administrator
Join Date: Jan 2008
Location: Chicagoland
Posts: 40,714
|
Quote:
Originally Posted by W2R
I dunno. At 63, I sort of think a 45-year-old might not be the best one to determine that window...
Seriously, I do think that the type of intelligence we have evolves with time. For example the ability to see the big picture is something that seems to improve as we age.
|
There's a saying in spanish
Quote:
Más sabe el diablo por viejo que por diablo
|
very roughly translated,
Quote:
the devil knows more just because he's old, not because he's the devil
|
There's a lot to be said for grey hair, piloting jets and managing portfolios.
|
|
|
10-05-2011, 12:19 PM
|
#10
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Oct 2005
Location: North Oregon Coast
Posts: 16,483
|
Quote:
Originally Posted by Ed_The_Gypsy
Old Dutch saying: "We grow too soon old and too late smart."
|
Or this one attributed to Mark Twain:
"Life should begin with age and its privileges and accumulations, and end with youth and it's capacity to splendidly enjoy such advantages."
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
|
|
|
10-05-2011, 12:29 PM
|
#11
|
Moderator Emeritus
Join Date: Oct 2007
Location: Portland
Posts: 4,946
|
It's hard to beat Abe Simpson:
I leave these: a box of mint-condition 1918 liberty-head silver dollars. You see, back in those days, rich men would ride around in Zeppelins, dropping coins on people, and one day I seen J. D. Rockefeller flying by. So I run out of the house with a big washtub and--Where are you going?
Ah, there's an interesting story behind this nickel. In 1957, I remember it was, I got up in the morning and made myself a piece of toast. I set the toaster to three - medium brown.
|
|
|
10-05-2011, 01:46 PM
|
#12
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2008
Location: East Nowhere, 43N Latitude, NY
Posts: 9,037
|
From the article..."Based on the evidence found in the research, anyone between 43 and 63 “is really in their cognitive sweet spot,” said David Laibson, a Harvard University professor and, at 45, the oldest of the study’s four authors."
Hmmm...I just turned 53.
Does that entitle me to sit at the sweet spot of the author's Sweet Spot?
__________________
"All our dreams can come true, if we have the courage to pursue them." - Walt Disney
|
|
|
10-05-2011, 01:49 PM
|
#13
|
Recycles dryer sheets
Join Date: May 2011
Posts: 496
|
My father's advice was the best:
Never give your money to an investor who still has to work for a living. If he's so smart, why ain't he rich?
__________________
Inside me is a skinny person crying to get out, but I can usually shut the b*tch up with cookies
|
|
|
10-05-2011, 02:12 PM
|
#14
|
Thinks s/he gets paid by the post
Join Date: Jul 2009
Location: Miraflores,Peru
Posts: 1,992
|
"Youth is wasted on the young"!
|
|
|
10-05-2011, 03:09 PM
|
#15
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2007
Posts: 14,328
|
Quote:
Originally Posted by Nuiloa
My father's advice was the best:
Never give your money to an investor who still has to work for a living. If he's so smart, why ain't he rich?
|
I felt the same way about "guidance" counselors in high school.
|
|
|
10-05-2011, 03:25 PM
|
#16
|
Recycles dryer sheets
Join Date: May 2011
Posts: 496
|
Quote:
Originally Posted by travelover
I felt the same way about "guidance" counselors in high school.
|
Lol!
Or priests giving "marriage preparation" classes.
__________________
Inside me is a skinny person crying to get out, but I can usually shut the b*tch up with cookies
|
|
|
10-05-2011, 04:42 PM
|
#17
|
Moderator Emeritus
Join Date: Dec 2002
Location: Oahu
Posts: 26,860
|
Quote:
Originally Posted by 2B
Why would you want a finacial advisor? If I had to have one, I'd want to her to be a hot 20 something that was usually scantily clad. Even then, I certainly wouldn't listen to her advice on what to do with my money.
|
If I had a financial advisor like that then I'd probably do anything with my money that she wanted me to. I'd even throw in my spouse's money too.
What were we talking about again?
__________________
*
Co-author (with my daughter) of “Raising Your Money-Savvy Family For Next Generation Financial Independence.”
Author of the book written on E-R.org: "The Military Guide to Financial Independence and Retirement."
I don't spend much time here— please send a PM.
|
|
|
10-05-2011, 04:52 PM
|
#18
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2005
Location: Lawn chair in Texas
Posts: 14,183
|
Quote:
Originally Posted by Nords
If I had a financial advisor like that then I'd probably do anything with my money that she wanted me to. I'd even throw in my spouse's money too.
What were we talking about again?
|
The spread?
__________________
Have Funds, Will Retire
...not doing anything of true substance...
|
|
|
10-05-2011, 04:58 PM
|
#19
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Oct 2005
Location: North Oregon Coast
Posts: 16,483
|
Quote:
Originally Posted by Nords
If I had a financial advisor like that then I'd probably do anything with my money that she wanted me to. I'd even throw in my spouse's money too.
|
You'd probably be inclined to short Pfizer, realizing that one of their cash cows was unnecessary....
(Sorry. Couldn't resist. )
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
|
|
|
10-05-2011, 09:46 PM
|
#20
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2004
Location: the City of Subdued Excitement
Posts: 5,588
|
Quote:
From the article..."Based on the evidence found in the research, anyone between 43 and 63 “is really in their cognitive sweet spot,” said David Laibson, a Harvard University professor and, at 45, the oldest of the study’s four authors."
|
Well, poo. Off the cognitive map. Guess I will have to sit in my corner and count my pennies.
__________________
I have outlived most of the people I don't like and I am working on the rest.
|
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Thread Tools |
|
Display Modes |
Linear Mode
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|