Comments on: Die Broke: A Radical Four-Part Financial Plan http://mindyourdecisions.com/blog/2008/12/19/die-broke-a-radical-four-part-financial-plan/ Articles on game theory and personal finance Thu, 29 Jul 2010 12:43:59 -0500 hourly 1 http://wordpress.org/?v=3.0 By: Presh Talwalkar http://mindyourdecisions.com/blog/2008/12/19/die-broke-a-radical-four-part-financial-plan/comment-page-1/#comment-4232 Presh Talwalkar Sun, 28 Dec 2008 00:51:17 +0000 http://mindyourdecisions.com/blog/?p=1093#comment-4232 Thanks for the supportive comments... To answer Mark W. on the "outdated" information, I can recall a discussion in the book about savings accounts. Pollan says that savings accounts are useless because they don't offer high enough rates--money markets and CDs are better. While true in 1997, it is not true any more. Now online savings accounts such as ING or Emigrant Direct offer rates higher than most 12 month CDs and they are completely liquid! So yes, overall the advice and philosophy is great but one has to be cautious about specific recommendations. Thanks for the supportive comments…

To answer Mark W. on the “outdated” information, I can recall a discussion in the book about savings accounts. Pollan says that savings accounts are useless because they don’t offer high enough rates–money markets and CDs are better. While true in 1997, it is not true any more. Now online savings accounts such as ING or Emigrant Direct offer rates higher than most 12 month CDs and they are completely liquid!

So yes, overall the advice and philosophy is great but one has to be cautious about specific recommendations.

]]> By: Patrick http://mindyourdecisions.com/blog/2008/12/19/die-broke-a-radical-four-part-financial-plan/comment-page-1/#comment-4186 Patrick Tue, 23 Dec 2008 16:55:01 +0000 http://mindyourdecisions.com/blog/?p=1093#comment-4186 Great post. It is always smart to try to break down your favorite assumptions and beliefs to determine if they still hold true. Great post. It is always smart to try to break down your favorite assumptions and beliefs to determine if they still hold true.

]]> By: Mark W. http://mindyourdecisions.com/blog/2008/12/19/die-broke-a-radical-four-part-financial-plan/comment-page-1/#comment-4155 Mark W. Sun, 21 Dec 2008 15:47:05 +0000 http://mindyourdecisions.com/blog/?p=1093#comment-4155 Thanks Presh for this great post - entertaining and informative but not complete so it makes me want to read this book. :) BTW 1997 is not that long ago - it's relative you know but I get your drift as many things have changed since then and they're changing at a much faster pace as time goes on. I like your analysis of Ulysses and the comparison to the modern day worker. It's not just about working smart. You also have to grasp the overall picture and find your balance for living. You've incorporated this concept in your previous posts and shown examples. It's the reason why I enjoy reading this blog! Thanks Presh for this great post – entertaining and informative but not complete so it makes me want to read this book. :) BTW 1997 is not that long ago – it’s relative you know but I get your drift as many things have changed since then and they’re changing at a much faster pace as time goes on. I like your analysis of Ulysses and the comparison to the modern day worker. It’s not just about working smart. You also have to grasp the overall picture and find your balance for living. You’ve incorporated this concept in your previous posts and shown examples. It’s the reason why I enjoy reading this blog!

]]> By: Jamie Holzhauer http://mindyourdecisions.com/blog/2008/12/19/die-broke-a-radical-four-part-financial-plan/comment-page-1/#comment-4147 Jamie Holzhauer Sat, 20 Dec 2008 19:48:07 +0000 http://mindyourdecisions.com/blog/?p=1093#comment-4147 Nice blog, I like the clear and explanatory style of writing. Nice blog, I like the clear and explanatory style of writing.

]]> By: P http://mindyourdecisions.com/blog/2008/12/19/die-broke-a-radical-four-part-financial-plan/comment-page-1/#comment-4133 P Fri, 19 Dec 2008 23:33:09 +0000 http://mindyourdecisions.com/blog/?p=1093#comment-4133 The book title Die Broke communicates much by itself. There's alot of utility in front-loading savings early in one's career, in order to hitch a ride on the compound interest train. Howover there are problems with excess savings. One is the idea of consumption smoothing, and the law of diminishing return. Someone frugal is unlikely to be able to indulge later in life, to burn off excess wealth, and really enjoy it. Sort of like eating second steak after just having had a first. Two, many people will see their wealth evaporate in the medical and assisted living machine later in life. It would be a shame to be hard working and frugal for four decades, only to pay $60k/year for a family member to languish in assisted living. The book title Die Broke communicates much by itself. There’s alot of utility in front-loading savings early in one’s career, in order to hitch a ride on the compound interest train. Howover there are problems with excess savings. One is the idea of consumption smoothing, and the law of diminishing return. Someone frugal is unlikely to be able to indulge later in life, to burn off excess wealth, and really enjoy it. Sort of like eating second steak after just having had a first.

Two, many people will see their wealth evaporate in the medical and assisted living machine later in life. It would be a shame to be hard working and frugal for four decades, only to pay $60k/year for a family member to languish in assisted living.

]]>