How reducing exposure to a catastrophic event, such as running out of money during retirement, is a better strategy than trying to accurately predict a catastrophic event. In this episode you’ll learn: How repeated exposures to low probability events can lead to ruin. How bonds have outperformed stocks over long stretches of time . How the success of retirement spending rules depend on the market environment and why a flexible approach to retirement spending makes the most … [Read more...]
196: How To Survive Financially
Why relying on averages is dangerous given our fate is often determined by extreme events and how we react as financial markets, the economy and our own lives evolve. Photo by William Beem In this episode you’ll learn: How times ensures only the best ideas survive.Why we should focus on tail risk.Why are reaction to actual events as time passes is more important than the average expected outcome of multiple scenarios. Show Notes If it's Tuesday, it's a workday in … [Read more...]