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

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

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Comment author: Benito 22 May 2013 03:59:58PM 2 points [-]

Like a lot of people, I'm interested.

By the way, the word is' optimal', not 'rational' financial planning :-)

Comment author: arundelo 22 May 2013 07:05:33PM 9 points [-]

"Rational financial planning" < "optimal financial planning" < "financial planning".

Comment author: pragmatist 22 May 2013 04:22:09PM *  0 points [-]

Except I really doubt it will be genuinely optimal (nothing against elharo, I'd say say this about any financial planning guide). At least "rational" doesn't seem like an obvious false promise. It reads to me as a reasonable claim about procedure ("my approach to financial planning draws on tools of the sort LWers talk about") rather than an incredible claim about outcomes ("this is the best possible way to do financial planning").

Comment author: Benito 23 May 2013 05:19:09AM 1 point [-]

See this and this (and this) :)

Comment author: pragmatist 23 May 2013 05:59:52AM *  0 points [-]

I don't think calling it "rational financial planning" is a great idea. All I'm saying is that it's better than calling it "optimal financial planning". It's probably a good thing to replace "rational" with "optimal" if you have good reason to believe your approach is in fact optimal. But financial planning is a game of such complexity and with so many possible moves that it would be the height of hubris to regard your approach as an actual optimum.

ETA: Ah, I see this in one of your links:

Optimal on the other hand doesn't so much require specific contrast because pretty much everything is suboptimal by default to some degree or another -- optimizing is understood as an ongoing and very relativistic process.

Fair enough. Disregard my whining.

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