December 21, 2021

The Cobra Effect and Inflation

The Cobra Effect is an unintended consequence where unintended behavior is ignored, making a problem worse than it originally was. When Delhi India was under British rule in the late 1800s, Delhi was infested with Cobras. As a result, the British incentivized farmers and locals to kill cobras by paying them a bounty when they brought a dead cobra to them. This effort worked in the short-run, reducing the population of cobras in the area, but eventually it became hard to find cobras at all. Despite this, the people still wanted to make money from the bounty, and since there […]
December 6, 2021

TRUE Traits for Successful Investing

When it comes to investing, the big decisions are driven by how much money to have in stocks, bonds, and cash. TRUE’s Traits for successful investing are listed below to help you allocate your money based on your long-term plan. Trait #1: Try to have 4-6 months of cash on hand for emergencies. Trait #2: If you need the money in the next 12 months, then it should be in cash. If you need the money to start a business in the next year, there is no sense in risking this money in the stock or bond market. We recommend […]
February 27, 2020

Plan for a lifetime of experiences… Aesop on Finance – Part Three

Being Prepared for Retirement When I ask people what their number one financial goal is, many of them say things like “Pay off my house; buy a better car; go on vacation; pay off my credit card debt. Those are all really good goals to have, but there’s one I think that’s just as important as all the rest: preparing for retirement. Now, just about everyone would agree that preparing for retirement is important. But thinking something and actually doing it are two completely different things. It can be hard to prepare for retirement because when you retire, you’re not […]