This is an updated version of my talk “Personal Finance for Engineers” given at Twitter HQ in San Francisco on October 9, 2013.

Oct 09, 2013

Category: Cognitive Foibles, Investing

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

6 Responses to “Personal Finance for Engineers (Twitter, 2013)”

  1. davebarnes says:

    I was fine with this presentation until slide 33. I HATE this type of crap.

  2. scottinnj says:

    Great presentation.

    One nit – why once a year rebalance? I rebalance quarterly which seems to be working well for me, some quarters I dont. My one caveat: The rebalance is in my IRA so tax considerations moot. Exchanging between Vanguard Index Funds as well.

    • rd says:

      I have seen various studies that have shown the frequency of rebalancing doesn’t make much difference in the long run. So quarterly, annually, or even every couplefo years doesn’t seem to matter. The key is to do it often enough that the sectors don’t get too imbalanced.

  3. withere says:

    Why is because it doesn’t matter over the long term. Mainly makes you feel good because you get to “do” something.

  4. theexpertisin says:

    Excellent presentation.

    If only the basics of personal finance were taught, and reinforced, in middle through high school.

  5. muysbfu_9481 says:

    @theexpertisin, the closest we got in my senior year of high school. gov/econ class was dividing the class into several groups, each picking $10k worth of stocks (minimal class discussion devoted to planning/strategy of any kind) and looking at returns after 1 semester (monitoring in the meantime was an out-of-class ‘activity’)…nearly everyone lost money, those who did achieve a gain were clueless as to why, and the general consensus was that we should all “just stay away” from the stock market…truly a wasted semester…freshman year in college, calculus professor finished class 15min early one day, and reviewed several scenarios of savings and assumed returns to illustrate the importance of early and regularly-allocated savings…the only thing i could think was ‘why didn’t some one teach us this in junior high?’