Comments on: Evil Plans of the Assumer http://www.behaviorgap.com/evil-plans-of-the-assumer/ Exploring the relationship between people and their money. Tue, 09 Mar 2010 06:52:18 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Carl Richards http://www.behaviorgap.com/evil-plans-of-the-assumer/comment-page-1/#comment-932 Carl Richards Thu, 08 Oct 2009 22:10:42 +0000 http://www.behaviorgap.com/?p=1339#comment-932 Adam-<br>Thanks for the perspective. My experience with clients that I have had for a<br>decade or longer is that most of our "planning" gets done on the back of an<br>napkin.<br><br>More than anything they are looking for assurance that the path they are on<br>is "reasonable". You can use sophisticated software to help put some<br>framework around "reasonable" but in the end I wonder if that is any better<br>then a NPV calculation on the back of napkin? Adam-
Thanks for the perspective. My experience with clients that I have had for a
decade or longer is that most of our “planning” gets done on the back of an
napkin.

More than anything they are looking for assurance that the path they are on
is “reasonable”. You can use sophisticated software to help put some
framework around “reasonable” but in the end I wonder if that is any better
then a NPV calculation on the back of napkin?

]]> By: Adam S http://www.behaviorgap.com/evil-plans-of-the-assumer/comment-page-1/#comment-931 Adam S Thu, 08 Oct 2009 17:29:22 +0000 http://www.behaviorgap.com/?p=1339#comment-931 I think the planning aspect has to be a relationship between a client and the adviser over a long period of time. The plan should evolve based on changes in peoples lives and circumstances. Portfolios get rebalanced, tax losses get taken etc etc. My dad is a financial adviser and this is the approach he takes with his clients. He's had most of them for a decade or more. So in summary, I agree that it's the planning, not the plan, that's important. I think the planning aspect has to be a relationship between a client and the adviser over a long period of time. The plan should evolve based on changes in peoples lives and circumstances. Portfolios get rebalanced, tax losses get taken etc etc. My dad is a financial adviser and this is the approach he takes with his clients. He's had most of them for a decade or more. So in summary, I agree that it's the planning, not the plan, that's important.

]]> By: thinkingcarl http://www.behaviorgap.com/evil-plans-of-the-assumer/comment-page-1/#comment-739 thinkingcarl Thu, 08 Oct 2009 15:10:42 +0000 http://www.behaviorgap.com/?p=1339#comment-739 Adam-<br>Thanks for the perspective. My experience with clients that I have had for a<br>decade or longer is that most of our "planning" gets done on the back of an<br>napkin.<br><br>More than anything they are looking for assurance that the path they are on<br>is "reasonable". You can use sophisticated software to help put some<br>framework around "reasonable" but in the end I wonder if that is any better<br>then a NPV calculation on the back of napkin? Adam-
Thanks for the perspective. My experience with clients that I have had for a
decade or longer is that most of our “planning” gets done on the back of an
napkin.

More than anything they are looking for assurance that the path they are on
is “reasonable”. You can use sophisticated software to help put some
framework around “reasonable” but in the end I wonder if that is any better
then a NPV calculation on the back of napkin?

]]> By: Adam S http://www.behaviorgap.com/evil-plans-of-the-assumer/comment-page-1/#comment-737 Adam S Thu, 08 Oct 2009 10:29:22 +0000 http://www.behaviorgap.com/?p=1339#comment-737 I think the planning aspect has to be a relationship between a client and the adviser over a long period of time. The plan should evolve based on changes in peoples lives and circumstances. Portfolios get rebalanced, tax losses get taken etc etc. My dad is a financial adviser and this is the approach he takes with his clients. He's had most of them for a decade or more. So in summary, I agree that it's the planning, not the plan, that's important. I think the planning aspect has to be a relationship between a client and the adviser over a long period of time. The plan should evolve based on changes in peoples lives and circumstances. Portfolios get rebalanced, tax losses get taken etc etc. My dad is a financial adviser and this is the approach he takes with his clients. He's had most of them for a decade or more. So in summary, I agree that it's the planning, not the plan, that's important.

]]> By: thinkingcarl http://www.behaviorgap.com/evil-plans-of-the-assumer/comment-page-1/#comment-736 thinkingcarl Wed, 07 Oct 2009 19:08:56 +0000 http://www.behaviorgap.com/?p=1339#comment-736 Russell- That assumes there will be one... Russell- That assumes there will be one…

]]> By: Russell http://www.behaviorgap.com/evil-plans-of-the-assumer/comment-page-1/#comment-735 Russell Wed, 07 Oct 2009 19:05:44 +0000 http://www.behaviorgap.com/?p=1339#comment-735 Great - looking forward to that post in the future! Great – looking forward to that post in the future!

]]> By: thinkingcarl http://www.behaviorgap.com/evil-plans-of-the-assumer/comment-page-1/#comment-734 thinkingcarl Wed, 07 Oct 2009 17:07:11 +0000 http://www.behaviorgap.com/?p=1339#comment-734 UPDATE: this conversation prompted me to write something in the same vein over at Morningstar this morning. If you have a minute give me your thoughts here: <a href="http://www.morningstaradvisor.com/articles/blogentry.asp?id=17398" rel="nofollow">http://www.morningstaradvisor.com/articles/blog...</a> UPDATE: this conversation prompted me to write something in the same vein over at Morningstar this morning. If you have a minute give me your thoughts here: http://www.morningstaradvisor.com/articles/blog...

]]> By: thinkingcarl http://www.behaviorgap.com/evil-plans-of-the-assumer/comment-page-1/#comment-733 thinkingcarl Wed, 07 Oct 2009 17:05:31 +0000 http://www.behaviorgap.com/?p=1339#comment-733 Thanks Chris. Thanks Chris.

]]> By: thinkingcarl http://www.behaviorgap.com/evil-plans-of-the-assumer/comment-page-1/#comment-732 thinkingcarl Wed, 07 Oct 2009 17:04:53 +0000 http://www.behaviorgap.com/?p=1339#comment-732 What I mean by "don't lose money" is that losses have far greater impact on performance in dollar terms than most of us account for. I have working on ways to protect against downside risk because "not losing" have become so important to me. <br><br>This is obviously a topic for another day, but for the sake of this discussion lets just say that I view not losing as the #1 rule of investing. <br><br>How you do that is clearly up for debate. What I mean by “don't lose money” is that losses have far greater impact on performance in dollar terms than most of us account for. I have working on ways to protect against downside risk because “not losing” have become so important to me.

This is obviously a topic for another day, but for the sake of this discussion lets just say that I view not losing as the #1 rule of investing.

How you do that is clearly up for debate.

]]> By: Wednesday links: trade opportunities Abnormal Returns http://www.behaviorgap.com/evil-plans-of-the-assumer/comment-page-1/#comment-731 Wednesday links: trade opportunities Abnormal Returns Wed, 07 Oct 2009 16:15:29 +0000 http://www.behaviorgap.com/?p=1339#comment-731 [...] How’s this for a financial plan?  (behavior gap) [...] [...] How’s this for a financial plan?  (behavior gap) [...]

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