Exactly this. The brokerage surveys of risk tolerance are usually one question and do little to probe for a true level of tolerance because it can be so hard to imagine watching assets plunge. For us and friends the dotcom losses in 2000 were staggering. I do know a couple of people whose paper gains from exercised stock options plunged, leaving them with terrible IRS problems for years, and neither has ever financially recovered.
To your last point, I would like to see better assessments for risk tolerance—most I’ve seen are basically one question rate yourself on a scale—and good advice on how to manage disparities between partners whose tolerances diverge. Also, how to handle either willful ignorance or disengagement by one partner (or family members if considering estate planning).
We have always owned houses and condos, and pretty large ones, but when my husband and I first met he thought buying several small apartments in different cities would be fun, and I suspect it would have been the better financial move. The houses have been not only a drain but a massive headache with the upkeep. We’ve also moved all around the country for work, but it took us 30 years to basically realize that your plan is a solid one.
Lots of folks either cannot travel because of physical or financial reasons, or because they don’t want to, and it’s not necessarily “sad”. That’s a personal judgement that assumes traveling is the only or the toppest most way to experience history, geology, geography, culture and art. Books, videos, online lectures do a grand job of making all of the above accessible and usually with more detail and time for reflection than one has on a one-time museum or historic site visit. But go to the places if that works for you! I met a retired theoretical physicist the other day who understands much more deeply about the matter and energy that enable our lives, and it was clear that, to him, his research and readings are exploration enough, the beauty of the mathematics is all the awe he requires. He only travels for family events, and it wasn’t the least sad to him.
Hi Nicholas, as this entry of yours creeps up on being a year old, I just wanted you to know that of all the informative, excellent pieces on HD, this one is my favorite. The combination of community activism, collaboration and benefit; meaningful retirement activity; and purposeful physical endeavor provides an excellent roadmap of what I want out of retirement. So thank you!
If we don’t get photo proof of you enjoying a big ole bubble bath in that tub 🛁, this post is just a tease! Can’t thank you enough for your uniquely wise, useful and entertaining site; it’s certainly sharpened and challenged my own ideas over the years, and we continue to admire your work, Jonathan. Enjoy that tub!
Comments:
Interesting place to find a risk tolerance assessment!
Post: Do you understand your tolerance for risk? Really, honestly? I’m not sure most of us do. By RDQ
Link to comment from January 18, 2025
Exactly this. The brokerage surveys of risk tolerance are usually one question and do little to probe for a true level of tolerance because it can be so hard to imagine watching assets plunge. For us and friends the dotcom losses in 2000 were staggering. I do know a couple of people whose paper gains from exercised stock options plunged, leaving them with terrible IRS problems for years, and neither has ever financially recovered.
Post: Money Grows Up
Link to comment from January 18, 2025
To your last point, I would like to see better assessments for risk tolerance—most I’ve seen are basically one question rate yourself on a scale—and good advice on how to manage disparities between partners whose tolerances diverge. Also, how to handle either willful ignorance or disengagement by one partner (or family members if considering estate planning).
Post: Money Grows Up
Link to comment from January 18, 2025
We have always owned houses and condos, and pretty large ones, but when my husband and I first met he thought buying several small apartments in different cities would be fun, and I suspect it would have been the better financial move. The houses have been not only a drain but a massive headache with the upkeep. We’ve also moved all around the country for work, but it took us 30 years to basically realize that your plan is a solid one.
Post: Home Free
Link to comment from January 18, 2025
One of my residences is a city apartment in a high-tech area with about half the apartments with children.
Post: Home Free
Link to comment from January 18, 2025
Truly a doubting thomas if not for fleeting, curated-for-tourists trips!
Post: No “Go-Go” by Kristine Hayes Nibler
Link to comment from January 7, 2025
Lots of folks either cannot travel because of physical or financial reasons, or because they don’t want to, and it’s not necessarily “sad”. That’s a personal judgement that assumes traveling is the only or the toppest most way to experience history, geology, geography, culture and art. Books, videos, online lectures do a grand job of making all of the above accessible and usually with more detail and time for reflection than one has on a one-time museum or historic site visit. But go to the places if that works for you! I met a retired theoretical physicist the other day who understands much more deeply about the matter and energy that enable our lives, and it was clear that, to him, his research and readings are exploration enough, the beauty of the mathematics is all the awe he requires. He only travels for family events, and it wasn’t the least sad to him.
Post: No “Go-Go” by Kristine Hayes Nibler
Link to comment from January 7, 2025
Hi Nicholas, as this entry of yours creeps up on being a year old, I just wanted you to know that of all the informative, excellent pieces on HD, this one is my favorite. The combination of community activism, collaboration and benefit; meaningful retirement activity; and purposeful physical endeavor provides an excellent roadmap of what I want out of retirement. So thank you!
Post: Things I’ve Picked Up
Link to comment from January 7, 2025
If we don’t get photo proof of you enjoying a big ole bubble bath in that tub 🛁, this post is just a tease! Can’t thank you enough for your uniquely wise, useful and entertaining site; it’s certainly sharpened and challenged my own ideas over the years, and we continue to admire your work, Jonathan. Enjoy that tub!
Post: Model Behavior
Link to comment from December 21, 2024
Hoping for a follow-up in 90 days on how easy it is to get your deposit and bonus out.
Post: Making Me Earn It
Link to comment from November 16, 2024