elharo comments on Preparing for a Rational Financial Planning Sequence - Less Wrong

21 Post author: elharo 22 May 2013 11:48AM

You are viewing a comment permalink. View the original post to see all comments and the full post content.

Comments (65)

You are viewing a single comment's thread. Show more comments above.

Comment author: elharo 22 May 2013 03:11:37PM *  2 points [-]

My goal is more aimed at normal retirement planning. This book is for people who don't get a kick out of seeing just how little money they can live on, and who don't live in Detroit or other areas with exceptionally low costs of living. The Mr. Money Mustache and Early Retirement Extreme type blogs are pretty solid as far as investment advice goes; but in terms of earning and spending, they're advocating a lifestyle the vast majority of U.S. citizens would never want to consider.

Comment author: gjm 23 May 2013 08:47:00AM 5 points [-]

It seems to me that, especially for an LW audience, an important part of Part II should be an examination not only of whether to save for retirement, but of how much. And that's got to consider how much real benefit you get from any given amount of spending now. And the MMM and ERE guys aren't just advocating the lifestyles they do because they get a kick from spending less money (though I think that's part of it) but because they reckon the tradeoff of a less spendy lifestyle in exchange for an earlier and/or more comfortable retirement is a good one. You or your readers may well disagree, but it's a question as worth asking as "can I just use the Singularity as my retirement plan?" which I see you have in there.

MMM-level unspendiness is well within the range of lifestyles LW readers would (I think) be willing to consider. (It's easier if you have a fairly high income, and many LW readers either have or expect to have in the future; it's easier if you have a lower discount factor, which I think LW readers tend to; and there are LW participants who give away the majority of their income, which is surely harder for most people than saving it.)