Learn about preparing for life after full-time work through posts from Don's upcoming book.
This is my take on how responsible institutional investors act, in practice
Introducing the stages in Route 2 of Freedom, Time, Happiness (and a note about the podcasts)
Of course we hope for good outcomes when we invest. But we must consider the possibility that outcomes will be bad, perhaps even over long periods. That’s what risk means. Let’s take a look at history again, this time looking at bad news.
One for the geeks among you. Equities embody growth-seeking. But many people hope that they can use equity dividends as a component of their safety-oriented investments.
When partners find that they have different attitudes to risk, there are many sensible ways to proceed.
Sometimes partners find that they have different attitudes to risk. This post shows several examples.
Once we have made a calculation of the effect of good and bad outcomes, we need to think about how we’d react to these outcomes. That enables us to make a decision on our attitude to risk.
We know that investments can be focused on safety or on growth. That doesn’t help us to decide where in the safety-growth spectrum to place ourselves. Another complication, right? Actually, as this post shows, the key is to consider the extent to which good and bad outcomes affect our lifestyle.
After all the analysis, you still have to decide: active or passive. This post lays out precise reasons that tilt you in one direction or the other — or both.
If we make enough choices, some will work out and some won’t. How do we distinguish luck from skill? Is there skill? What is it worth? This post looks at those questions.