Comments on: Is Your Life Too Expensive? Harvard Study Provides Solution http://wealthpilgrim.com/is-your-life-too-expensive-harvard-study-provides-solution/ WealthPilgrim.com - A Journey To Self, Health and Wealth Thu, 09 Sep 2010 18:58:42 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Digital Camera Purchase Disaster – What Did I Do Wrong? http://wealthpilgrim.com/is-your-life-too-expensive-harvard-study-provides-solution/comment-page-1/#comment-3400 Digital Camera Purchase Disaster – What Did I Do Wrong? Fri, 15 Jan 2010 11:35:47 +0000 http://wealthpilgrim.com/?p=12927#comment-3400 [...] Solutions You might have seen my piece on Wednesday on how to approach those things that are too expensive. In that piece, I used my brand new “Pilgrim-cam” – it’s a Canon FS20.  I absolutely love [...] [...] Solutions You might have seen my piece on Wednesday on how to approach those things that are too expensive. In that piece, I used my brand new “Pilgrim-cam” – it’s a Canon FS20.  I absolutely love [...]

]]> By: Rob Bennett http://wealthpilgrim.com/is-your-life-too-expensive-harvard-study-provides-solution/comment-page-1/#comment-3391 Rob Bennett Thu, 14 Jan 2010 16:08:21 +0000 http://wealthpilgrim.com/?p=12927#comment-3391 Neal: You look great on the video! I ask that you and your readers reflect on whether we all have been paying too much for stocks for a long, long time now. Stocks were priced at three times fair value before the crash. That means that, for every $300 we put into our 401(k) accounts, we got back $100 worth of stocks and $200 worth of cotton-candy nothingness that of course was fated to go "Poof!" over the course of time. The Efficient Market Theory (the intellectual framework for the conventional investing wisdom of today) says that this is impossible. The entire Buy-and-Hold model starts with an <b>assumption</b> that humans would never collectively overpay for stocks, that the market always gets the price roughly right. This study suggests that this is wrong. Humans overpay for things all the time because they get caught up in the excitement of "beating" others (why else would people pay $300 for a one-hundred-dollar bill?) If we considered that stocks are owned by humans and that humans simply do not behave in accord with the assumptions of the conventional model, we could all invest far more effectively, retire many years sooner, and quickly get out of this economic crisis. This study is teaching us something important. Rob .-= Rob Bennett´s last blog ..<a href="http://arichlife.passionsaving.com/2010/01/14/my-google-knol-on-why-buy-and-hold-investing-can-never-work/" rel="nofollow">My Google Knol on “Why Buy-and-Hold Investing Can Never Work”</a> =-. Neal:

You look great on the video!

I ask that you and your readers reflect on whether we all have been paying too much for stocks for a long, long time now.

Stocks were priced at three times fair value before the crash. That means that, for every $300 we put into our 401(k) accounts, we got back $100 worth of stocks and $200 worth of cotton-candy nothingness that of course was fated to go “Poof!” over the course of time.

The Efficient Market Theory (the intellectual framework for the conventional investing wisdom of today) says that this is impossible. The entire Buy-and-Hold model starts with an assumption that humans would never collectively overpay for stocks, that the market always gets the price roughly right.

This study suggests that this is wrong. Humans overpay for things all the time because they get caught up in the excitement of “beating” others (why else would people pay $300 for a one-hundred-dollar bill?)

If we considered that stocks are owned by humans and that humans simply do not behave in accord with the assumptions of the conventional model, we could all invest far more effectively, retire many years sooner, and quickly get out of this economic crisis. This study is teaching us something important.

Rob
.-= Rob Bennett´s last blog ..My Google Knol on “Why Buy-and-Hold Investing Can Never Work” =-.

]]> By: Neal@Wealth Pilgrim http://wealthpilgrim.com/is-your-life-too-expensive-harvard-study-provides-solution/comment-page-1/#comment-3380 Neal@Wealth Pilgrim Wed, 13 Jan 2010 19:12:32 +0000 http://wealthpilgrim.com/?p=12927#comment-3380 It's an honor....thanks for your kind words.... It’s an honor….thanks for your kind words….

]]> By: Shirley Docken http://wealthpilgrim.com/is-your-life-too-expensive-harvard-study-provides-solution/comment-page-1/#comment-3379 Shirley Docken Wed, 13 Jan 2010 18:55:35 +0000 http://wealthpilgrim.com/?p=12927#comment-3379 I am enjoying your blogs, YouTube videos and all that food for thought.  This one especially.  Thanks, Neal. I am enjoying your blogs, YouTube videos and all that food for thought.  This one especially.  Thanks, Neal.

]]> By: Neal@Wealth Pilgrim http://wealthpilgrim.com/is-your-life-too-expensive-harvard-study-provides-solution/comment-page-1/#comment-3374 Neal@Wealth Pilgrim Wed, 13 Jan 2010 15:21:41 +0000 http://wealthpilgrim.com/?p=12927#comment-3374 Oh Sam......I don't know if that's a compliment (given the results of these goof balls) Oh....here's a solution if you want to pay less tax....make less money! I know you wont' be making any ROTH conversation mistakes - and needlessly paying taxes. Oh Sam……I don’t know if that’s a compliment (given the results of these goof balls)

Oh….here’s a solution if you want to pay less tax….make less money! I know you wont’ be making any ROTH conversation mistakes – and needlessly paying taxes.

]]> By: Financial Samurai http://wealthpilgrim.com/is-your-life-too-expensive-harvard-study-provides-solution/comment-page-1/#comment-3373 Financial Samurai Wed, 13 Jan 2010 15:12:24 +0000 http://wealthpilgrim.com/?p=12927#comment-3373 Neal, thnx for highlighting the study. You kinda look like a Harvard professor! lol. I spend too much on taxes. Gotta fix that! .-= Financial Samurai´s last blog ..<a href="http://www.financialsamurai.com/2010/01/13/you-are-already-wealthy-stop-complaining/" rel="nofollow">You Are Already Wealthy, Stop Complaining!</a> =-. Neal, thnx for highlighting the study. You kinda look like a Harvard professor! lol.

I spend too much on taxes. Gotta fix that!
.-= Financial Samurai´s last blog ..You Are Already Wealthy, Stop Complaining! =-.

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