Personal Finance for Everyone (Stripe 2014)Adam Nash
Ā
This is the version of my talk, Personal Finance for Engineers, that I gave on February 20, 2014 at Stripe HQ in San Francisco. It has minor modifications to broaden the language for the whole company.
Personal Finance for Engineers (Github 2014)Adam Nash
Ā
This is the version of Personal Finance for Engineers given at the Github HQ in San Francisco on Feb 20, 2014. This version is made extra awesome by the appearance of octocat.
Personal Finance for Everyone (Stripe 2014)Adam Nash
Ā
This is the version of my talk, Personal Finance for Engineers, that I gave on February 20, 2014 at Stripe HQ in San Francisco. It has minor modifications to broaden the language for the whole company.
Personal Finance for Engineers (Github 2014)Adam Nash
Ā
This is the version of Personal Finance for Engineers given at the Github HQ in San Francisco on Feb 20, 2014. This version is made extra awesome by the appearance of octocat.
Personal Finance for Engineers (AirBnB 2013)Adam Nash
Ā
This is the version of Personal Finance for Engineers given on November 19 at AirBnB headquarters in San Francisco. It is largely the same content as the version for Twitter.
Personal Finance for Engineers (Stanford Computer Forum, Apr 2017)Adam Nash
Ā
This is the version of my talk, Personal Finance for Engineers, given at the Gates Computer Science Building at Stanford for the Stanford Computer Forum.
Personal Finance for Engineers (Stanford CS 198, Nov 2015)Adam Nash
Ā
This is the version of my talk, Personal Finance for Engineers, that I gave at Stanford University on November 2, 2015 for the CS 198 Section Leader program.
Personal Finance for Engineering (Pinterest, 2014)Adam Nash
Ā
This is the version of Personal Finance for Engineers, covering behavioral finance, liquidity, savings, compounding, and long term investing. It was given at Pinterest HQ in San Francisco on Jan 23, 2014.
Personal Finance for Engineers (Stanford Society of Women Engineers / SWE, 2016)Adam Nash
Ā
This is the version of my talk, Personal Finance for Engineers, given at Stanford on April 26, 2016. It was hosted by the Stanford Society of Women Engineers and the Stanford Society of Latino Engineers.
Personal Finance for Engineers (Stanford CS Forum, 2018)Adam Nash
Ā
This is the version of my talk, Personal Finance for Engineers, that I gave at Stanford University in the Gates Computer Science building for the Stanford CS Forum on February 8, 2018.
PDMA 2008 World Class Web 2.0 Product OrgAdam Nash
Ā
This is the presentation from the PDMA 2008 presentation by Adam Nash on "Building a World-Class Web 2.0 Product Organization" from September 15, 2008.
These are the slides from a talk given on March 4, 2012 at the Harvard Business School Entrepreneurship Conference. It summarizes ten key lessons in being a great product leader from over a decade of experience in consumer software.
It is based on a lecture given on the same topic on August 31, 2011 at LinkedIn.
Personal Finance for Engineers (AirBnB 2013)Adam Nash
Ā
This is the version of Personal Finance for Engineers given on November 19 at AirBnB headquarters in San Francisco. It is largely the same content as the version for Twitter.
Personal Finance for Engineers (Stanford Computer Forum, Apr 2017)Adam Nash
Ā
This is the version of my talk, Personal Finance for Engineers, given at the Gates Computer Science Building at Stanford for the Stanford Computer Forum.
Personal Finance for Engineers (Stanford CS 198, Nov 2015)Adam Nash
Ā
This is the version of my talk, Personal Finance for Engineers, that I gave at Stanford University on November 2, 2015 for the CS 198 Section Leader program.
Personal Finance for Engineering (Pinterest, 2014)Adam Nash
Ā
This is the version of Personal Finance for Engineers, covering behavioral finance, liquidity, savings, compounding, and long term investing. It was given at Pinterest HQ in San Francisco on Jan 23, 2014.
Personal Finance for Engineers (Stanford Society of Women Engineers / SWE, 2016)Adam Nash
Ā
This is the version of my talk, Personal Finance for Engineers, given at Stanford on April 26, 2016. It was hosted by the Stanford Society of Women Engineers and the Stanford Society of Latino Engineers.
Personal Finance for Engineers (Stanford CS Forum, 2018)Adam Nash
Ā
This is the version of my talk, Personal Finance for Engineers, that I gave at Stanford University in the Gates Computer Science building for the Stanford CS Forum on February 8, 2018.
PDMA 2008 World Class Web 2.0 Product OrgAdam Nash
Ā
This is the presentation from the PDMA 2008 presentation by Adam Nash on "Building a World-Class Web 2.0 Product Organization" from September 15, 2008.
These are the slides from a talk given on March 4, 2012 at the Harvard Business School Entrepreneurship Conference. It summarizes ten key lessons in being a great product leader from over a decade of experience in consumer software.
It is based on a lecture given on the same topic on August 31, 2011 at LinkedIn.
This is the version of my talk, Be a Great Product Leader, given at Zynga on Feb 22, 2016. It includes six lessons on product leadership from my time at eBay & LinkedIn.
Learning Objective: Examine the methods that minorities can use for achieving financial success
A growing minority population presents opportunities for financial success. Financial success is about changing your perspective on wealth, how you grow it, how you maintain it, and how you preserve it. It first starts with getting vested into helping change the trajectory of your future. Wealth transfer is happening. So what can be done to deliver financial education and financial planning to minorities? How do we position ourselves to be a part of it and benefit from it? This seminar will help you to understand the behavioral pitfalls we fall into as a community; the personal, social, and mental roadblocks to obtaining wealth; and how we are a part of that ride to investing.
At the end of this seminar, participants will be able to:
a. Recognize financial fundamentals to building wealth.
b. Identify the factors that lead to lower wealth accumulation among members of underrepresented groups.
c. Identify personal habits and values that can impact a strong financial future.
d. Create an action plan for achieving financial goals.
Recent news of financial misappropriation by employees, brand hijacking and even natural disasters have left many businesses in the lurch and even closed many. As a business owner or leader, time and knowledge is critical. The pace of each day leaves little time for knowing every facet of your business. As budgets tighten, you are pressed to do more with less. It is not uncommon to have a myriad of things fall through the cracks - blind spots! This year's 7-7-7 panel will explore the many blind spots that exist and offer some simple and practical tips for identifying and preventing them from doing further damage.
Stanford CS 007-01 (2020): Personal Finance for Engineers / IntroductionAdam Nash
Ā
These are the slides from the 1st session of the Stanford University class, CS 007 "Personal Finance for Engineers" given on September 15, 2020. This seminar covers a survey of the students enrolled in the course, with an overview of the topics to be covered over the course of the series.
Stanford CS 007-05 (2021): Personal Finance for Engineers / Assets & Net WorthAdam Nash
Ā
These are the slides from the 5th session of the Stanford University class, CS 007 "Personal Finance for Engineers" taught on October 19, 2021. This seminar focuses on liquidity, emergency funds, assets & liabilities, and net worth.
Stanford CS 007-03 (2022): Personal Finance for Engineers / CompensationAdam Nash
Ā
These are the slides from the 3rd session of the Stanford University class, CS 007 "Personal Finance for Engineers" given on October 11, 2022. This seminar covers compensation, equity & comparing offers.
Stanford CS 007-02 (2022): Personal Finance for Engineers / Behavioral FinanceAdam Nash
Ā
These are the slides from the 2nd session of the Stanford University class, CS 007 "Personal Finance for Engineers," given on October 4, 2022. This seminar covers the topic of Behavioral Finance.
Stanford CS 007-01 (2022): Personal Finance for Engineers / IntroductionAdam Nash
Ā
These are the slides from the 1st session of the Stanford University class, CS 007 "Personal Finance for Engineers" given on September 27, 2022. This seminar covers a survey of the students enrolled in the course, with an overview of the topics to be covered over the course of the series.
Stanford CS 007-10 (2021): Personal Finance for Engineers / Additional Topics...Adam Nash
Ā
These are the slides from the 10th session of the Stanford University class, CS 007 "Personal Finance for Engineers" offered on December 7, 2021. This seminar covers student requested additional topics for the course, including bitcoin / cryptocurrency, derivatives, futures, options, private equity & venture capital.
Stanford CS 007-09 (2021): Personal Finance for Engineers / Real EstateAdam Nash
Ā
These are the slides from the 9th session of the Stanford University class, CS 007 "Personal Finance for Engineers" offered on November 30, 2021. This seminar covers real estate and related financial decisions: buying, renting, rent vs. buy, real estate investment, rental properties & tax advantages.
Stanford CS 007-08 (2021): Personal Finance for Engineers / Financial Plannin...Adam Nash
Ā
These are the slides from the 8th session of the Stanford University class, CS 007 "Personal Finance for Engineers" offered on November 16, 2021. This seminar covers financial planning, financial goals, couples & life insurance.
Stanford CS 007-07 (2021): Personal Finance for Engineers / InvestingAdam Nash
Ā
These are the slides from the 7th session of the Stanford University class, CS 007 "Personal Finance for Engineers" given on November 9, 2021. This seminar covers compounding, types of investments, diversification, how to invest, and the four keys to good investing (all boring).
Stanford CS 007-06 (2021): Personal Finance for Engineers / DebtAdam Nash
Ā
These are the slides from the 6th session of the Stanford University class, CS 007 "Personal Finance for Engineers" on October 26, 2021. This seminar focuses on compounding, mortgages, auto loans, student loans, credit cards and credit scores.
Stanford CS 007-04 (2021): Personal Finance for Engineers / Savings & BudgetsAdam Nash
Ā
These are the slides from the 4th session of the Stanford University class, CS 007 "Personal Finance for Engineers" given on October 12, 2021. This seminar covers savings rates, income & expenses & budgeting.
Stanford CS 007-2 (2021): Personal Finance for Engineers / Behavioral FinanceAdam Nash
Ā
These are the slides from the 2nd session of the Stanford University class, CS 007 "Personal Finance for Engineers," given on September 28, 2021. This seminar covers the topic of Behavioral Finance.
Stanford CS 007-01 (2021): Personal Finance for Engineers / IntroductionAdam Nash
Ā
These are the slides from the 1st session of the Stanford University class, CS 007 "Personal Finance for Engineers" given on September 21, 2021. This seminar covers a survey of the students enrolled in the course, with an overview of the topics to be covered over the course of the series.
Stanford CS 007-10 (2020): Personal Finance for Engineers / Additional Topics...Adam Nash
Ā
These are the slides from the 10th session of the Stanford University class, CS 007 "Personal Finance for Engineers" offered in November 2020. This seminar covers student requested additional topics for the course, including bitcoin / cryptocurrency, derivatives, futures, options, private equity & venture capital.
Stanford CS 007-09 (2020): Personal Finance for Engineers / Real EstateAdam Nash
Ā
These are the slides from the 9th session of the Stanford University class, CS 007 "Personal Finance for Engineers" offered in November 2020. This seminar covers real estate and related financial decisions: buying, renting, rent vs. buy, real estate investment, rental properties & tax advantages.
Stanford CS 007-08 (2020): Personal Finance for Engineers / Financial Plannin...Adam Nash
Ā
These are the slides from the 8th session of the Stanford University class, CS 007 "Personal Finance for Engineers" offered on November 3, 2020. This seminar covers financial planning, financial goals, couples & life insurance.
Stanford CS 007-07 (2020): Personal Finance for Engineers / InvestingAdam Nash
Ā
These are the slides from the 7th session of the Stanford University class, CS 007 "Personal Finance for Engineers" given on October 27, 2020. This seminar covers compounding, types of investments, diversification, how to invest, and the four keys to good investing (all boring).
Stanford CS 007-06 (2020): Personal Finance for Engineers / DebtAdam Nash
Ā
These are the slides from the 6th session of the Stanford University class, CS 007 "Personal Finance for Engineers" This seminar focuses on compounding, mortgages, auto loans, student loans, credit cards and credit scores.
Stanford CS 007-05 (2020): Personal Finance for Engineers / Assets & Net WorthAdam Nash
Ā
These are the slides from the 5th session of the Stanford University class, CS 007 "Personal Finance for Engineers" This seminar focuses on liquidity, emergency funds, assets & liabilities, and net worth.
Stanford CS 007-2 (2020): Personal Finance for Engineers / Behavioral FinanceAdam Nash
Ā
These are the slides from the 2nd session of the Stanford University class, CS 007 "Personal Finance for Engineers," given on September 22, 2020. This seminar covers the topic of Behavioral Finance.
Stanford CS 007-10 (2019): Personal Finance for Engineers / Additional TopicsAdam Nash
Ā
These are the slides from the 10th session of the Stanford University class, CS 007 "Personal Finance for Engineers" offered in December 2019. This seminar covers student requested additional topics for the course, including bitcoin / cryptocurrency, derivatives, futures, options, private equity & venture capital.
Stanford CS 007-09 (2019): Personal Finance for Engineers / Real EstateAdam Nash
Ā
These are the slides from the 9th session of the Stanford University class, CS 007 "Personal Finance for Engineers" offered in November 2019. This seminar covers real estate and related financial decisions: buying, renting, rent vs. buy, real estate investment, rental properties & tax advantages.
how can i use my minded pi coins I need some funds.DOT TECH
Ā
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. š I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
The secret way to sell pi coins effortlessly.DOT TECH
Ā
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
Ā
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new productāit signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
what is the best method to sell pi coins in 2024DOT TECH
Ā
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
Ā
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a āRoaring Twentiesā? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. governmentās aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
āIn order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,ā says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
What website can I sell pi coins securely.DOT TECH
Ā
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
how to sell pi coins at high rate quickly.DOT TECH
Ā
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
What price will pi network be listed on exchangesDOT TECH
Ā
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ ā 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
how to swap pi coins to foreign currency withdrawable.DOT TECH
Ā
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
The European Unemployment Puzzle: implications from population agingGRAPE
Ā
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Ā
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
2. Caveats & Preface
ā¢
I am not a ļ¬nancial planner
ā¢
This presentation is not ļ¬nancial advice
ā¢
You would be extremely foolish to make investment
decisions based solely on the content of this
presentation or discussion
ā¢
The opinions in this deck are intended purely to provoke
discussion & further education
wealthfront.com | 2
3. Why Personal Finance?
ā¢
Poorly covered in traditional education, even
top tier universities
ā¢
Not technically diļ¬cult, but signal:noise ratio
is terrible
ā¢
Massive impact on your life
-
Money is one of the top 3 reasons āØ
for marital problems
wealthfront.com | 3
4. Fast Five Finance Basics
1. Behavioral Finance Basics
2. Liquidity is Undervalued
3. Cash Flow Matters
4. The Magic of Compounding
5. Good Investing is Boring
wealthfront.com | 4
5. How many of you think
you are rational with
your money?
(show of hands)
7. Anchoring
ā¢
People estimate answers to new /
novel problems with a bias towards
reference points
ā¢
Example: 1974 Study
ā¢
Most common examples:
ā¢
Price you bought a stock at
ā¢
High point for a stock
wealthfront.com | 7
8. Mental Accounting
ā¢
Money is fungible, but people put it
in separate āmental accountsā
ā¢
Lost movie tickets example
ā¢
āFound Moneyā problem
ā¢
Vacation fund & credit card debt
wealthfront.com | 8
9. Confirmation & Hindsight Bias
ā¢
We selectively seek information
that support pre-existing
theories, and ignore / dispute
information that disproves them.
ā¢
We overestimate our ability to
predict the future based on the
āobviousnessā of the past.
(example: real estate)
wealthfront.com | 9
10. Gamblerās Fallacy
ā¢
We see patterns in independent,
random chains of events
ā¢
We believe that, based on series
of previous events, an outcome is
more likely than odds actually
suggest
ā¢
Coin ļ¬ip example
ā¢
Itās because with human behavior,
there are no āindependentā events
wealthfront.com | 10
11. Herd Behavior
ā¢
We have a tendency to mimic the
actions of the larger group
ā¢
Crowd psychology is a major
contributor to bubbles (believed)
ā¢
Easier to be āwrong with everyoneā
than āright and aloneā
ā¢
No one gets ļ¬red for buying IBM?
wealthfront.com | 11
12. Overconfidence
ā¢
In one study, 74% of investment
managers believe they deliver
above average returns.
ā¢
Positively correlated with High IQ...
ā¢
Learn humility early
wealthfront.com | 12
13. Overreaction & Availability Bias
ā¢
Overreact to recent events
ā¢
Overweight recent trends
ā¢
Studies demonstrate that checking
stock prices daily leads to more
trading and worse results on
average
ā¢
Worse in high tech, because we
are immersed in āgame changersā
wealthfront.com | 13
14. You have $1,000 and you must
pick one of the following choices:
Choice A: āØ
You have a 50% chance of gaining $1,000,
and a 50% chance of gaining $0.
Choice B:āØ
You have a 100% chance of gaining $500.
15. Now, you have $2,000 and you must
pick one of the following choices:
Choice A: āØ
You have a 50% chance of losing $1,000,
and a 50% chance of losing $0.
Choice B:āØ
You have a 100% chance of losing $500.
16. Loss Aversion (aka Prospect Theory)
ā¢
We hate losses more than we love
winning
ā¢
Average loss aversion is 3:1 (!)
ā¢
Aļ¬ects views on wide range of
situations, including taxes, holding
on to losing stocks, āsunk costā
mistakes
wealthfront.com | 16
18. Itās OK to Not Be Rational
ā¢
The key is that humans are predictably irrational
ā¢
Know your own ļ¬aws, and you can set up systems to
account for them
ā¢
Self-awareness is keyāØ
(yes, my Mom is a psychologist...)
wealthfront.com | 18
19. Liquidity
ā¢
Almost universally undervalued
ā¢
Strictly deļ¬ned - itās the
quantiļ¬cation of how much money
you can get, and how fast.
ā¢
Liquidity is the power to take
advantage of great investment
opportunities
ā¢
Liquidity is also, in the end, the
only thing that matters when you
need to pay for something.
wealthfront.com | 19
20. Liquidity & Returns
ā¢
In almost all cases, liquidity is inversely
correlated with returns
ā¢
Examples:
-
ā¢
Cash = very liquid
Private equity = very illiquid
Common mistake: Safety != Liquidity
wealthfront.com | 20
21. Practical Outcome: Emergency Funds
ā¢
Standard recommendation is that you
have 3-6 months of living expenses in
cash / cash-equivalents.
ā¢
That number increases if you are in
highly volatile industry / career.
ā¢
Worth considering length of time for
potential job search.
wealthfront.com | 21
22. Cash Flow
ā¢
The ultimate secret to personal ļ¬nance is
quite simple:
-
Spend less than you makeāØ
(on an ongoing basis)
ā¢
Very easy to measure, but few people do.
Annual budget is a great idea.
ā¢
Donāt forget to model in annual expenses
& āpersonal spendingā
wealthfront.com | 22
23. Savings Targets
ā¢
Whatās the right number? 3%? 6%?10%? 20%?
-
ā¢
There is no question - the more you save, the more
secure you are. Income comes & goes, but expenses
/ lifestyle are sticky!
A lot of models assume working 40 years, and
producing savings to generate 80% of working
income.
-
These models donāt actually match anyoneās real
world experience.
-
There are a lot of models out there, and rules of
thumb, but itās important to run the numbers yourself.
wealthfront.com | 23
24. The Magic of Compounding
ā¢
Not convinced that Albert Einstein said it was the
greatest force in the universe.
ā¢
Itās the key to almost all long term ļ¬nancial planning.
ā¢
Exponentials are bad in algorithmic cost, good in
savings returns.
wealthfront.com | 24
25. Simple Model
ā¢
Rule of 72
ā¢
In Excel, for each year, just use āØ
=POWER(1+rate, year)
ā¢
4% over 20 years is 2.19x
ā¢
8% over 20 years is 4.66x
ā¢
Careful: it works on debt just as well as savings...
in reverse!
wealthfront.com | 25
26. The Benefits of An Early Start
ā¢
Compounding really takes oļ¬ over long time periods
Years
Return at 8%
10
2.16x
20
4.66x
30
10.06x
40
21.72x
50
In most retirement planning
models, money saved between
ages 25 - 35 produces more
money than all savings between
35 - 65!
46.9x
wealthfront.com | 26
27. The Dangers of Debt
ā¢
Bankruptcy is literally when you canāt pay your debts.
You canāt go bankrupt if you donāt have debt.
ā¢
You will never ļ¬nd an investment that pays 8%
guaranteed, let alone 20%+
ā¢
You will ļ¬nd *tons* of credit oļ¬ers out there that will
charge you that.
ā¢
āBadā debt is toxic, your best return is to pay it oļ¬.
But emergency fund takes precedence.
wealthfront.com | 27
28. Good Investing is Boring
ā¢
No one wants to be average, but with investing,
average is actually well above average.
ā¢
You will beat most mutual funds, and a large majority of
your peers with simple, low-cost index funds.
ā¢
Asset allocation explains ~90% of the variance between
fund performance
wealthfront.com | 28
29. Basic Asset Allocation
ā¢
Diļ¬erent types of assets (stocks, bonds, etc) have
diļ¬erent volatility & return characteristics
ā¢
There is an eļ¬cient frontier of combinations that
can maximize return for a given volatility
ā¢
Complication: historical performance does not
predict future performance
wealthfront.com | 29
30. Simple Operating Model
ā¢
2 hours of work per year.
ā¢
Pick an asset allocation that is appropriate for your
emotional character & time frame & goals.
ā¢
For each asset class, pick the cheapest index fund with
the lowest drift and best liquidity.
ā¢
Rebalance every year.
wealthfront.com | 30
31. Recommended Books
ā¢
WSJ Guide to Understanding Money & Investing
ā¢
The Millionaire Next Door
ā¢
A Random Walk Down Wall Street
ā¢
The Essays of Warren Buļ¬ett
ā¢
Common Stocks & Uncommon Proļ¬ts
ā¢
The Intelligent Investor
ā¢
Devil Take the Hindmost
ā¢
When Genius Failed
ā¢
Against the Gods: The Remarkable Story of Risk
ā¢
http://blog.adamnash.com/2007/02/14/personal-ļ¬nanceeducation-series-2-recommended-books/
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32. Disclosure
Nothing in this presentation should be construed as a solicitation
or offer, or recommendation, to buy or sell any security. Financial
advisory services are only provided to investors who become
Wealthfront clients pursuant to a written agreement, which
Text
investors are urged to read and carefully consider in determining
whether such agreement is suitable for their individual facts and
circumstances. Past performance is no guarantee of future
results, and any hypothetical returns, expected returns, or
probability projections may not reļ¬ect actual future
performance.Ā Investors should review Wealthfrontās website for
additional information about advisory services.Ā Ā Ā
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