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Whether you’re making a decision that has apparent, immediate consequences that could affect the rest of your life, like deciding to quit your job and open a business, or making a purchasing decision big or small, it is worthwhile to gather information and think about the future. When you gather information, you have to be careful, because people, businesses, and even statistics that provide that information might contain inherent biases.

Survivorship bias is often hidden in plain sight, but recognizing the bias when it exists could be the difference between building wealth over the long term and going broke. If a logical argument neglects to recognize that failure is a possible outcome, the argument may be subject to survivorship bias. If a statistic reflects the outcome of only the successful set, ignoring the set of those who fail, survivorship bias is at play, and can give someone a false understanding of the data.

David McRaney, the author of You Are Not So Smart explains survivorship bias:

Survivorship bias [...] flash-freezes your brain into a state of ignorance from which you believe success is more common than it truly is and therefore you leap to the conclusion that it also must be easier to obtain. You develop a completely inaccurate assessment of reality thanks to a prejudice that grants the tiny number of survivors the privilege of representing the much larger group to which they originally belonged.

It’s probably easier to illustrate survivorship bias than to explain.

Survivorship bias in the stock market.

Mutual fund managers rely on survivorship bias for selling their products. Overall, and over the long term, actively managed mutual funds cannot beat the relevant market benchmark. Considering actively managed mutual funds are more expensive to own than their index counterparts, index-based, non-managed mutual funds are better choices. But mutual fund managers continue to attract investors because they’re able to advertise higher returns.

Money managers can advertise these higher returns overall because poor-performing actively-managed mutual funds are eliminated or merged into other mutual funds. This hides poor performance. As a mutual fund manager, kill the low performers, and when you report performance results for the funds that survive, your track record looks better than it is.

The danger in ignoring survivorship bias in the stock market. Well, it’s all about making the best decisions with your investments. If you are taken in by promises of big financial returns, you may not be putting your future self in the best position possible. When an investment manager says 90 percent of his or her funds beat the market, he or she isn’t including those that no longer exist. And your money could end up in an investment that, someday in the future, will no longer exist.

Survivorship bias in stock recommendation scams.

Step one: build a sufficiently large mailing list. Ten thousand names will do, if the recipients are already inclined towards buying.

Step two: Pick a stock, and send a letter to half the recipients on the list predicting the stock price will go up in the next week. Send a letter to the second half predicting the opposite.

Step three: In the following week, determine which half received letters that correctly predicted the stock’s performance. Delete the other names from the list of recipients.

Repeat steps two and three, each time eliminating the half of the mailing list that saw an incorrect prediction. After a few weeks, a couple thousand people will consider you a stock market prognosticating genius, and each week, you have a better chance of selling something to those who were lucky enough to be on the winning side of each prediction.

This approach isn’t limited to bottom-feeding stock scams. Hedge funds catering to the wealthy often employ a similar strategy by initiating many funds, waiting for performance results, and marketing and reporting to indexes only the successful hedge funds.

The danger in ignoring survivorship bias in stock scams. This should be apparent. If something sounds too good to be true, it is. Don’t invest in stocks recommended to you by a stranger. Or by a friend who thinks he or she has insider information. Or in individual stocks at all unless you are Warren Buffett, can negotiate for a discount, have a say in management decisions, or are conducting an investment experiment.

Survivorship bias in entrepreneurship.

Do you ever wonder why all business owners seem to be successful? In the classic book, The Millionaire Next Door, the authors point out that entrepreneurship is the path to success. This message permeates, and many people believe that owning a business is the best way to grow wealth. While investing as much as possible in broad stock-based index mutual funds can get you to financial independence over a long period of time, barring bad timing as many people who were in retirement during the latest recession might have realized, owning a business is said to be the key to speeding up wealth accumulation.

Of course business owners are better off financially than equivalent employees. If they weren’t successful, they would — and do — stop their pursuit of owning a business. In other words, those who don’t succeed drop out of the statistics.

The danger in ignoring survivorship bias in entrepreneurship. It’s easy to be seduced by the promise of riches that being a business owner seems to hold. Encouraging books and gurus often ignore the risk of leaving a job with a salary and benefits behind in favor of getting a project off the ground. At the same time, they emphasize the risk of staying in a job, subject to random layoffs and other stresses of answering to a boss. According to Bloomberg, eight out of ten new businesses fail within the first 18 months.

The remaining two become part of the statistics that show how worthwhile owning your own business could be, but chances are more likely any new business owner will eventually give up and no longer be counted among the “entrepreneur class.”

Survivorship bias in other aspects of life.

I go the gym three times a week to work out with a personal trainer. And after going this for about a year, not including time away for travel, I’ve made some progress. But I still look around the gym and see that I’m not nearly as in shape as just about everyone else. That’s to be expected, but not because of survivorship bias. Unless you work out constantly, every time you go to the gym, most of the people will be in better shape. The reason is that any person you see is a statistical representation of someone who is most likely to be at the gym at any particular time. And the people most likely to be at the gym at any particular time are the people who go to the gym the most often.

But survivorship bias manifests within fitness philosophies. An intense program can report high success rates for two reasons. First, the people who are most likely to fail don’t start in the first place. Second, people who being the plan but are destined to fail leave, and they are no longer included in the group of followers of the fitness plan.

Diets follow the same pattern. This phenomenon could also be considered selection bias, but selection bias is also important to marketers. If they can stop the “wrong” customer — someone not likely to succeed — from buying their self-help products initially, the seller can continue to report good success ratios with a clear conscience.

The key is to always ask questions.

I tend to be more skeptical than people I know. I don’t trust statistics immediately. I look to the source of information, and I try to think about logical holes, fallacies, and biases before making decisions. I may not always be perfect and may not always be the smartest person in the room, but recognizing biases has helped me make better decisions with my life.

If you’re only looking at successes for modeling your behavior, you’re missing an important piece of information. It’s quite possible that those who failed employed the same strategies as those who succeed. It’s also possible that failures vastly outnumber the successes, and are just not reported as such. So if you want to avoid failure, pay attention to potential survivorship bias.

Photo: Universitat Stuttgart (a tardigrade, Earth’s survivor)

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It’s time to get naked! (Again!)

Last year, we started Naked With Cash, a series and feature at Consumerism Commentary. Last year’s introduction can provide you with the in-depth look at the purpose of the series. This year, I’m joined by Miranda Marquit to help organize the series. She, I, and the financial experts you’ll meet below, have selected four Consumerism Commentary readers who will work with those experts as they publicly track their finances throughout the year.

This year, we have four participants who will share their financial reports, exposing the results of their financial choices. Each participant is paired with one of our Certified Financial Planners (CFPs). The experts will provide insight and guidance that will, hopefully, help our participants take their finances to the next level by the end of 2014.

We’re also adding a video component this year, which should be a lot of fun. We will keep our participants anonymous, but the CFPs will share their thoughts in video format.

Meet the experts

Naked With Cash features four experts, offering commentary and advice on the participants’ financial situations.

Neal Frankle

Neal Frankle is an independent Certified Financial Planner™ based in Southern California. He founded Wealth Resources Group in 1994 to provide comprehensive fee-based financial planning exclusively.

His firm specializes in helping clients make smart decisions about their money so they can stop worrying and start enjoying the things that matter most to them.

I know what it’s like to have financial trouble. Both my parents passed away while I was still in high school. I took a tiny insurance settlement to a financial advisor. Rather than help me grow it safely to help me get through college, he churned and burned the account. It was horrible. But this experience made a deep impact on me and helped me really understand what it’s like to be in a tough situation with limited resources and almost no financial understanding. This motivated me to help others by developing a top-rate financial planning firm offering clients a comprehensive range of investment and financial planning services that are customized to clients’ needs.

Neal writes for Wealth Pilgrim and MCMHA.org.

Connect with Neal: @nealfrankle on Twitter · LinkedIn · Facebook

Sara Stanich

Sara Stanich is a Certified Financial Planner (CFP®) practitioner and Certified Divorce Financial Analyst (CDFA™) based in New York City. She provides financial planning and investment advice to her clients who include dual-income couples, entrepreneurs and couples going through divorce.

Mom to an energetic preschooler, Sara Stanich has first-hand knowledge of the costs and challenges involved in raising a family. She finds that the responsibilities of parenthood motivate many growing families to deal with issues previously put on the back-burner such as investing, insurance, college savings and estate planning.

Sara Stanich lives in NYC with her husband and son. When not working, she enjoys gardening, being outdoors and spending time with her family.

Sara blogs about financial planning topics at Cultivating Wealth. You can also find out more about working with Sara at Stanich Group.

Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC.

Connect with Sara: @sarastanich on Twitter · LinkedIn

Roger Wohlner

Roger Wohlner, CFP®, is a fee-only financial adviser based in Arlington Heights, Illinois. He provides comprehensive financial advice to individual clients and investment consulting services to retirement plans, foundations, and endowments. Roger’s blog is The Chicago Financial Planner where he provides information about financial planning, investments, and retirement plans.

Roger has been quoted extensively in the financial press including The Wall Street Journal, Investment News, and Reuters. Roger is also a regular contributor to the US News Smarter Investor Blog.

Connect with Roger: @rwohlner on Twitter · LinkedIn

Jeff Rose

Jeff is a Certified Financial Planner™ and CEO of Alliance Wealth Management, LLC a registered investment adviser. He is the founder of Good Financial Cents (a top 25 finance blog according to Wisebread) and author of the best selling book Soldier of Finance. He also runs Life Insurance By Jeff

He currently writes for US News and Equifax and has been featured in major sites such as Huffington Post, Wall Street Journal, Reuters, Kiplinger’s, and Fox Business.

In his free time, he loves hanging with his family, tortures himself with Crossit workouts, and daydreams frequently when he can chow down on an In-N-Out Burger again.

Connect with Jeff: LinkdedIn · Twitter · Facebook · Google+

Meet the participants

Laura and Leon

Laura and Leon met in 9th grade and started dating in 12th grade. They lived apart during college, and when they finished their undergraduate work, the married. They recently celebrated their five-year anniversary.

The two are 28 years old, and plan to start a family at some point. Here is what Laura shares about their financial history:

Our financial history is one where we never did anything particularly wrong, but we never did anything right either. We are natural homebodies, so we never spent a lot of money and our cash balance was able to keep growing, but our money just sat there in a checking account for a long time. No credit card debt, no retirement accounts, not even an interest-bearing savings account.

If it weren’t for the fact that our parents paid for our respective undergrads and provided each of us with a car, I think we would have been in trouble early in our early adult lives. That level of apathy is simply not something we can afford going forward.

Laura has a B.S. in Engineering, and a state Professional Engineering licensure. She earns $63,200 per year. Leon has a law degree and has passed the bar in three different states. He earns $60,000 a year. They have $44,000 in student debt. They max out contributions to tax-advantaged retirement accounts and hope to begin aggressively paying down debt. Laura and Leon hope that they can get a plan together to better use their financial resources, eliminate student loan debt, and save up to buy a house.

Laura and Leon’s updates: January | December

Jake and Allie

Jake and Allie are 47 and 42, respectively. They have no children, but they do have pets. Jake and Allie are employed by the same company, and they make a combined $140,000 a year. Jake has a Master’s degree in Computer Science and is an IT Director. Allie has a BBA and works as a Creative Manager.

They contribute to their company’s retirement plan, taking advantage of the employer match. They love to travel, and arrange matters so that they can take two week-long vacations each year and smaller getaways in between. Here is what Jake has to say about their financial goals:

In the short term, I plan to remain at my company to take advantage of a buyout plan when (and if) the company sells. Allie would like to start a photography business and eventually do that full time if we find that it can be financially reasonable to do so. We also would like to move to another state that we would enjoy more (to some mountains and a little snow). The time and location is still to be determined, mostly dependent on the buyout.

In the long term, we want to retire early (by the time I’m 55 and Allie is 50) and do some more traveling. After retirement, I’ll probably do some consulting here and there (or possibly open a luxury dog boarding business) and Allie plans to continue with her photography business.

They hope to move from the Southeast U.S. to a state with mountains and snow when they have a little more financial freedom.

Jake and Allie’s updates: January | December

Brian

Brian is a 30-year-old engineer. He has a wife and two young children. He works as a software engineer, and his wife stays at home. One of their biggest recent adjustments was dropping to a single-income family after being a dual-income family for so long. Brian’s parents paid for his college education, but his wife has student debt from her time at college. They have student loans and a mortgage, but they have never had credit card debt. They had two car loans in the past, but have paid those off.

Here is what Brian has to say about his goals and current situation:

My number one priority is being a good steward of the money God has given me. I have much to improve but is a strong priority for our family. Second is providing for my family and making sure all the needs are met with a little fun money. Making sure we will have enough to retire on and help the kids get through college are priorities.

My goals for the next year are to keep paying down the remaining consumer debt and really start to save. Overall, I think we are in a good place for now, but not dealing with this change in our earning level could change that fast.

Brian’s updates: January | December

Betsey S.

Betsey is a 27-year-old government analyst. She recently moved 500 miles to start a new job with the government. She is single, and lives with two roommates, with whom she can split rent and utilities. They occasionally split grocery costs. Betsey has a net worth $10,268, and her assets include a bank account, IRA, security deposit, and I-bonds. She has $3,418 in credit card debt.

Here is what Betsey says about her hopes for her finances and participation in this series:

My biggest goal for 2014 is to save a significant portion of my income for a house down payment. In addition, I am a 20-something living in a high cost of living area (Washington, DC), so a related goal is to make sacrifices and keep my discretionary expenses down while I save up for a house.

I’m hoping for more insight on my finances from a broader audience that is interested in personal finance. I’m also looking forward to input from the certified financial planners – especially on taxes and retirement planning, as I am relatively new to having a real paycheck and handling extra income. Finally, I’m looking for some accountability and hoping that the public angle will help hold me to my goals.

Betsey has a passion for craft beer, and thinks that, perhaps, when she is ready to “retire,” she would like to open a brewery.

Betsey’s updates: January | December

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Financial self-help gurus, professional financial advisers, and bloggers who write about personal finance as a hobby or a job all tend to agree on a few basic tenets. One of these is that saving today can generate more financial freedom in the future. Financial freedom is important because it allows you to pursue activities you’d most like to pursue, whether that involves spending or giving, without barriers related to money.

There are many variations on this theme of delayed result. Some writers and advisers propose extreme savings today to reach financial independence as fast as possible, while others propose gradual but persistent savings with the goal of being self-funded by the time retirement age arrives. Some offer advice on investments, entrepreneurship, or building real estate empires as methods of enhancing progress towards the goal of financial independence.

All advice, but especially the advice that’s presented without any knowledge of each specific reader or listener, is based on a number of assumptions. For instance, financial planners want college graduates entering the work force this year to immediately begin investing a portion of their incomes in retirement plans like 401(k) plans and Roth IRAs. This isn’t necessarily bad advice, but it’s based on the assumption that not only is any particular student going to live to retirement age, but also the assumption that the retiree will continue to live a number of years in retirement to make use of those saved funds.

Assumptions like these are based on averages, and science has shown that actuarial tables, which predict the chance of any individual dying within the next year, are useful for these predictions. As a 37-year old male, I have a 0.1807% chance of dying in the next twelve months, and I can expect to live another 41 years. In reality, I may live longer or shorter, but on average men my age will live to 78. This is based on the IRS’s actuarial table.

For the most part, that’s the best advice-givers can offer: assume that everyone’s experience will fall close to average. Generic advice will be best for most people. And even many advice recipients who don’t consider themselves “average” will end up close enough.

Whether I live another 41 years or not, money is only useful when used. When I die, I can leave any remaining wealth to descendants or to causes I believe are worthy, but until then, I want to live my life. And I want to do a better job of that than I have so far. I’m looking for a balance between my present and future that’s a little more biased towards the present than the future than it has been.

Here’s how I plan to re-evaluate my balance.

Spend more, while still maintaining financial solvency. One of the most common pieces of financial advice is to spend less than you earn. I first encountered this phrasing of the concept over a decade ago when I was learning about money management primarily by reading message boards, particularly the “Living Below Your Means” message board on The Motley Fool.

It’s hard to find fault with the concept of spending less than you earn. Some writers have even called it the only thing you need to know about managing your money. It prevents you from borrowing money from other people or businesses like high-interest credit cards, and not having to pay interest keeps more money in your pocket. Interest you pay eats away at your ability to reach the point of financial independence and delays your life-long goals further.

While I was building my business, I managed to spend less than I earn, and when the business was earning its most profits in 2011, I couldn’t even imagine spending that much. Eventually, I sold the business, and I recognize that it’s unlikely I’ll ever personally earn that much income again.

My retirement is probably safe at this point, but my income from working is the lowest it’s been in five years. It’s not a desperate situation because I saved a good portion of what I’ve earned, but it does point out how I let my lifestyle creep slightly higher when I was earning more money. I’m still spending less than I’m earning overall when I include income from investments, but the numbers are more volatile and some months, because I actually don’t see reinvested income from investments, my cash balances dwindle.

I’d like to say I’m spending that money wisely, enjoying experiences for myself that improve the quality of my life, but I’m not sure that’s always the case.

The reason I feel comfortable thinking about the present is because I’ve already taken care of my future. Even if an emergency situation exists later in my life, I should be able to manage while maintaining a good amount of my net worth. It’s time to start thinking about the present. But it’s worthwhile to remember that, regardless of your financial situation, life is only lived “today.” You have to make the most of your time because, although actuarial tables may tell you one thing about how much time you have left, you never know what your personal lifespan will be.

This is not an excuse to be reckless, but it is a reminder that personal finance is about more than putting all of your income away for the future.

Plan for the future but live in the moment. Once you’ve planned for the future, you’re in a better position to be concerned about making the most out of every day, but you can live in the moment without sacrificing your future. While you’re accumulating wealth to meet your long-term goals, enjoy life frugally. You don’t need to spend a lot of money to have a good time. But as your future becomes more secure, you can safely begin shifting your spending towards the present. Find a balance that doesn’t leave you in the cold later, but allows you to make the most of your saving efforts while you still can.

How do you balance your future needs with the idea that you are only alive today?

Photo: Flickr/Cooperweb

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As I’ve mentioned often on Consumerism Commentary, after a a false start or two with jobs following my undergraduate studies, I started my career working for a non-profit organization involved in the arts. I followed one of my passions without considering my financial needs.

I want to be able to look back and see that despite my problems, the non-profit was a good choice for me, but I can’t honestly say that. I strongly believe in this organization’s mission, but maybe I wasn’t the right person for that kind of job.

Working as an employee for a non-profit organization can be rewarding — often more rewarding for your conscience than for your wallet, however. I came away from my three years as a non-profit employee with skills and traits that helped me succeed in other jobs:

When you work for a non-profit, you work hard. The best non-profit organizations use their funding, often from private donors but also from the government, to invest in their programs. Human resources are often an after-thought. You can see this with non-profit rankings on sites like Charity Navigator; charitable organizations are judged on how much of their funding goes to their programs.

As a result, many non-profits lack the resources necessary to do the best job they can. Working in this type of environment, it’s easy to develop skills related to making the most out of nothing and doing more with less.

You learn to fill multiple roles. One side-effect of small administrative budgets is that there isn’t always someone to fill each unique role in the organization. Where I worked, I was the associate director of a division that related mostly with high schools, but I was also the office’s tech guy and troubleshooter, the web and database administrator, and an event planner. I often dealt with stakeholders other than the high schools.

No one in this organization would dare say, “That’s not in my job description.” For me, the most difficult part was the manual labor. I never pictured myself loading and unloading trucks, installing signage, or being a chauffeur as part of my occupation, but these were things that needed to be done, and everyone chipped in.

Talent and passion are contagious. When your occupation is built around a mission, you meet talented and passionate people who are interested in the same mission. Putting yourself in an environment where most people are motivated helps you rise to their level. Leadership differs from organization to organization, but if you have a culture of excellence and high expectations, it can be a stressful existence but it is rewarding.

You learn how to maintain high expectations in other aspects of your life. You expect to be surrounded by high-functioning adults. Life can be disappointing when you move on and realize that not everyone is as highly motivated or concerned about excellence, but when you find yourself in leadership roles, the environment of excellence can help make you a great leader.

Non-profits can force you to be frugal. Within the organization, you learn how to do more with less, and that bleeds into your personal life. Many times, it must, because you are unlikely to be paid the same salary you’d be able to garner with a private company (that is, not a non-profit organization).

There are many reasons for the lower salaries in non-profit. One I mentioned above: organizations want to devote more of their funding directly to programs instead of human resources. Non-profit executives believe that the reward of psychological fulfillment makes up for the low salaries. But non-profits simply offer lower salaries because they can. People will take the jobs. Now, you can’t always hire the best people with low salaries, and if the revolving-door employment of the organization I used to work for was any indication, great employees leave because their talents are valued by companies willing to pay much more.

Another reason non-profits can offer less money is because in many cases, people see non-profit work as their “third act.” They’ve worked a fulfilling career in some other field and are ready to retire. But they want to continue doing something rewarding with their time, and non-profit is a haven for people who have already earned their money. They aren’t looking for organizational advancement, and they aren’t looking to earn competitive income.

These challenges make it difficult to decide whether you should work for a non-profit.

I didn’t think about these concerns right out of college. I didn’t know how difficult my life was going to be; nobody warned me. Then again, even if I was aware of the consequences, I’m not sure I’d make a different decision. There are some questions you should consider before pursuing a career in non-profit.

1. Do you really believe in the organizations mission? You’re going to be putting a lot of yourself into your work. If you aren’t 100% committed to the organization’s mission, you’ll be losing a part of yourself for something you don’t really care about. At the same time, you’re gaining something important, perhaps a sense of fulfillment if you are committed to the mission. The mission will often be the excuse for your sacrifices.

2. Are you prepared for life sacrifices? My non-profit job took my weekends away from me. During certain times of the year, I worked more than 80 hours a week (without overtime pay). I had no time for the social life I would have liked to have had, and the commitment to my job negatively affected my personal relationships, especially the one with my girlfriend at the time.

3. Are you prepared for the financial sacrifices? My salary barely covered my living necessities and commuting to work. I was going further into debt each month, and it was easier for me to ignore my financial realities. By the time I was ready to make another personal sacrifice, moving away from my friends and closer to the office, where housing was much more expensive anyway, I was already halfway out the door at the job.

It’s not uncommon to see non-profit workers who come from privileged backgrounds, who rely on another family member for household income, who are living off of their retirement funds, or who are otherwise financially independent. I was taken aback the first time I met some of the people who worked or interned for one of the biggest music ensembles in the world, housed in New York City. Those interns could work for free without making any financial sacrifices, and sometimes working for a non-profit is close to working for free. Is that something you can do?

4. Are you capable of handling the demands? When I worked for a corporation later in my life, a few co-workers performed their duties with a sense of urgency. There was some kind of value in the perception that every task one pursued was important. People would rush around just to show everyone else how busy and important they believed they were. Coming from a non-profit background, it was hard for me to take that attitude seriously. In my experience, people were busy because they had to be — because they were trying to accomplish world-changing projects with a skeleton staff.

The “corporate urgency” was a joke to me — and that’s probably one reason I never fit in there. The demands in that corporate environment — demands on time, effort, and talent — were nothing compared to the work that needed to be accomplished in non-profit. If you want to work in non-profit, there’s a good chance it will consumer your life with its demands.

5. Is there anything else you could possibly do with your life to achieve fulfillment? First-year college students often hear this some time during their first few weeks: “If you can picture yourself being satisfied in any other field, this isn’t the right field for you.” I heard it when I was studying to become a music teacher. Engineers hear it, too, for different reasons. It’s even more relevant before considering a career in non-profit, especially for a college graduate with student loan debt.

The non-profit industry can be rewarding for your soul, particularly if you find an opportunity that is aligned with your passions. It isn’t an easy life for some of the most talented people who would like to pursue that type of path. Give the choice some consideration.

Photo: Flickr/robert.claypool

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Money Systems That Lead to Success: Always Ask Questions

by Luke Landes
Always Ask Questions

Last Thursday, I drove to the place that was my home for four formative years of my life, my undergraduate university. I’ve written before about how the degree and overall course of study during college isn’t directly related to what I do today. Nevertheless, I still feel strongly about the importance of music and arts ... Continue reading this article…

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Financial Problems Impair Cognitive Abilities

by Luke Landes
Brain

Need more evidence that the financially disadvantaged are in a worse position to succeed in education and work than those without financial concerns? A new report published in the journal Science shows how financial constraints, particularly poverty, impede cognitive functioning. I find one of the experiments interesting not only because of the results, but because ... Continue reading this article…

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Responsibility Without Authority

by Luke Landes
Soldiers

A past employer had a hard time keeping his employees from running away within three years of starting their jobs; for this small organization, the turnover rate was high, and without consistency, the organization compromised the service it intended to provide and the mission that was its essence. There is nothing unique to this situation; ... Continue reading this article…

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Albert Einstein’s Philosophies For Growing Wealth

by Luke Landes
Albert Einstein

Although blogs and newspapers alike have oft posthumously placed a familiar quotation pertaining to compound interest — it being the most powerful force in the universe or man’s greatest invention — in the mouth of Albert Einstein, there is no evidence he ever said such a thing. He might have; the sentiment matches what seems ... Continue reading this article…

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