Author Topic: How a Harvard Economist Screwed Up, and Then Saved, Her Retirement  (Read 20577 times)

dramaman

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Re: How a Harvard Economist Screwed Up, and Then Saved, Her Retirement
« Reply #50 on: July 31, 2015, 08:33:50 AM »
This is actually a good example of why some people (even very intelligent economists) can't be trusted to make smart decisions regarding their own personal finances. The folks in the MMM community are really in the minority in terms of being able to look at their own finances objectively, define a goal, and follow through with discipline.

forummm

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Re: How a Harvard Economist Screwed Up, and Then Saved, Her Retirement
« Reply #51 on: July 31, 2015, 09:11:14 AM »
This is actually a good example of why some people (even very intelligent economists) can't be trusted to make smart decisions regarding their own personal finances. The folks in the MMM community are really in the minority in terms of being able to look at their own finances objectively, define a goal, and follow through with discipline.

This is a big reason why I think SS is pretty genius. It prevents even really smart people from screwing up too badly.

nereo

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Re: How a Harvard Economist Screwed Up, and Then Saved, Her Retirement
« Reply #52 on: July 31, 2015, 09:32:56 AM »
This is actually a good example of why some people (even very intelligent economists) can't be trusted to make smart decisions regarding their own personal finances. The folks in the MMM community are really in the minority in terms of being able to look at their own finances objectively, define a goal, and follow through with discipline.

This is a big reason why I think SS is pretty genius. It prevents even really smart people from screwing up too badly.
Agreed.  Every time someone floats the idea of 'privatizing' SS and allowing individuals to invest and manage their benefits I tell them I think it's a horrible idea.  As bad as the government may be with managing some projects, as individuals we are collectively worse at managing our own long-term finances.  With a 40 year time frame, anyone can retire a millionaire by 62 with nothing more than IRA contributions ... but do most people do that?  heck no.

gReed Smith

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Re: How a Harvard Economist Screwed Up, and Then Saved, Her Retirement
« Reply #53 on: July 31, 2015, 11:01:53 AM »
Dave Ramsey isn't a retirement guy, and he doesn't preach minimalism to those who have no debt.  He wants you to get out of debt and become rich.  But then, spend away!

I can't believe I'm defending Dave Ramsey :(

wenchsenior

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Re: How a Harvard Economist Screwed Up, and Then Saved, Her Retirement
« Reply #54 on: July 31, 2015, 11:02:24 AM »
This is actually a good example of why some people (even very intelligent economists) can't be trusted to make smart decisions regarding their own personal finances. The folks in the MMM community are really in the minority in terms of being able to look at their own finances objectively, define a goal, and follow through with discipline.

This is a big reason why I think SS is pretty genius. It prevents even really smart people from screwing up too badly.
Agreed.  Every time someone floats the idea of 'privatizing' SS and allowing individuals to invest and manage their benefits I tell them I think it's a horrible idea.  As bad as the government may be with managing some projects, as individuals we are collectively worse at managing our own long-term finances.  With a 40 year time frame, anyone can retire a millionaire by 62 with nothing more than IRA contributions ... but do most people do that?  heck no.

I totally agree with you guys. Privatizing SS is insane idea, unless we want to return to the days of extreme poverty in the elderly.

As I said in my post earlier in the thread, there are a lot of people on this message board who practically break their own arms patting themselves on the back for how superior they are to the rest of humanity, which would be fine (I also like to pat my own back) except they don't seem to understand how unusual that aptitude is in the population at large; also, I seriously doubt everyone on this board makes optimal decisions in all the OTHER areas of their lives apart from finances. Because we are human and mostly pretty irrational.

wenchsenior

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Re: How a Harvard Economist Screwed Up, and Then Saved, Her Retirement
« Reply #55 on: July 31, 2015, 11:02:53 AM »
Dave Ramsey isn't a retirement guy, and he doesn't preach minimalism to those who have no debt.  He wants you to get out of debt and become rich.  But then, spend away!

I can't believe I'm defending Dave Ramsey :(

And defending him in the wrong thread :)

nereo

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Re: How a Harvard Economist Screwed Up, and Then Saved, Her Retirement
« Reply #56 on: July 31, 2015, 11:19:32 AM »
Dave Ramsey isn't a retirement guy, and he doesn't preach minimalism to those who have no debt.  He wants you to get out of debt and become rich.  But then, spend away!

I can't believe I'm defending Dave Ramsey :(
I slipped that in there just to give myself a good chuckle.  Perhaps DR's main message isn't retirement, but he certainly does spend a lot of time talking about retirement planning.  As for his trophy-house, I think it's still a good example because I think it conflicts with the end of his 7-step program, where he says people can: "Build wealth, become insanely generous, and leave an inheritance for future generations. "  13,000+ft2, $5MM home isn't really good for any of those things.

Meh, it was just meant to be a light-hearted jab.  Tkae it how you will...

forummm

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Re: How a Harvard Economist Screwed Up, and Then Saved, Her Retirement
« Reply #57 on: July 31, 2015, 11:42:24 AM »
As I said in my post earlier in the thread, there are a lot of people on this message board who practically break their own arms patting themselves on the back for how superior they are to the rest of humanity, which would be fine (I also like to pat my own back) except they don't seem to understand how unusual that aptitude is in the population at large; also, I seriously doubt everyone on this board makes optimal decisions in all the OTHER areas of their lives apart from finances. Because we are human and mostly pretty irrational.

I think we all have a lot of reminders in our personal lives that most people are idiots with money:
http://forum.mrmoneymustache.com/antimustachian-wall-of-shame-and-comedy/relatives-who-just-don't-get-it/

And I agree about the selective areas of mastery. While I may be very good with money, I certainly have other areas where I have shortcomings or I've made very costly mistakes.

gReed Smith

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Re: How a Harvard Economist Screwed Up, and Then Saved, Her Retirement
« Reply #58 on: July 31, 2015, 12:20:12 PM »
Dave Ramsey isn't a retirement guy, and he doesn't preach minimalism to those who have no debt.  He wants you to get out of debt and become rich.  But then, spend away!

I can't believe I'm defending Dave Ramsey :(

And defending him in the wrong thread :)

My God!  I'm all screwed up today.

 

Wow, a phone plan for fifteen bucks!