The Case Against Mutual Funds
One of the first heuristics taught in any course on personal finance is the Rule of 72. This is the observation that if we want to figure out how many…
The Origin of Risk Aversion
Risk Aversion (as opposed to Loss Aversion) is the extent of the preference for certainty in quantifiable, positive outcomes. When presented with a choice between guaranteed and variable outcomes. It…
Move to Bonds with Age – Maybe Not!
The almost universal position among financial planners, and those in the financial media is that investors with an eye on retirement should reduce the “risk” of their portfolio with age.…