tag:blogger.com,1999:blog-5624436327404149621.post2815443951829644957..comments2024-03-28T20:07:31.640-07:00Comments on Quantitative Ease by Carola Binder: Wealth and Motivations for SavingCarolahttp://www.blogger.com/profile/12783977056485775882noreply@blogger.comBlogger12125tag:blogger.com,1999:blog-5624436327404149621.post-5487089021927852742020-08-17T11:10:07.194-07:002020-08-17T11:10:07.194-07:00QuickBooks gives you reminder feature in the busin...QuickBooks gives you reminder feature in the business with finest version of Quickbooks software to manage all financial transactions<a href="https://thestandarddaily.com/quickbooks-support//" rel="nofollow">Quickbooks customer support number</a>sam smithhttps://www.blogger.com/profile/12003358823024192876noreply@blogger.comtag:blogger.com,1999:blog-5624436327404149621.post-18645213443245995232013-04-05T07:35:21.870-07:002013-04-05T07:35:21.870-07:00Hey don't have time for a long comment, just t...Hey don't have time for a long comment, just to say that this JW Mason paper is very much to the point:<br /><br />http://repec.umb.edu/RePEc/files/FisherDynamics.pdfSteve Rothhttps://www.blogger.com/profile/11895481216028771016noreply@blogger.comtag:blogger.com,1999:blog-5624436327404149621.post-78566720980168139132013-04-01T01:49:34.124-07:002013-04-01T01:49:34.124-07:00Great post! Some business owners are looking for t...Great post! Some business owners are looking for trustworthy and reliable financial planner for their investments.<br /><br /><br /><a href="http://www.davincifinancialdesigns.com" rel="nofollow">financial planner columbia sc</a>teresa bowenhttps://www.blogger.com/profile/07534290439844564640noreply@blogger.comtag:blogger.com,1999:blog-5624436327404149621.post-74488424217162208392013-03-26T10:26:27.114-07:002013-03-26T10:26:27.114-07:00It seems to me that there's an additional issu...It seems to me that there's an additional issue that't not being addressed: Risk, and in particular the risk of capital loss. People may recognize that there is, in fact, a trade-off between risk of capital loss and current return on investments/saving. So maybe their behavior is more rational than it appears, unless we know about their willingness to assume risk.Don Coffinhttps://www.blogger.com/profile/07198988872512792834noreply@blogger.comtag:blogger.com,1999:blog-5624436327404149621.post-43899774381033153342013-03-26T03:11:48.408-07:002013-03-26T03:11:48.408-07:00Perhaps many have suspected that the historic retu...Perhaps many have suspected that the historic returns on savings in stocks etc are unsustainable. They reflect a period where central banks etc have bent over backwards to sustain the prices of risky assets. This is certainly what has kept me in relatively conservative assets, but I must admit, I have been infuriated by the authorities' willingness to resort to all manner of previously almost unimaginable debauchery (abandoned inflation targets, QE, even the "help-to-buy scheme in the latest UK Budget etc). The stakes keep getting bigger.RebelEconomisthttps://www.blogger.com/profile/13241098878248190971noreply@blogger.comtag:blogger.com,1999:blog-5624436327404149621.post-84947135515086778122013-03-25T23:25:53.504-07:002013-03-25T23:25:53.504-07:00Ok, actually re-reading your post more slowly, I s...Ok, actually re-reading your post more slowly, I see you are interpreting things largely like I was.<br /><br />There may be the thinking that I'm not trying to get so rich I can live off of the return to my fortune, I just want to be able to retire comfortably and have money for emergencies. But this kind of attitude may come from not realizing how powerful a strong compound return is with something like stocks for the long run, and how you can really realistically strongly supplement your labor or Social Security earnings with just the returns on your savings if you start early.Richard H. Serlinhttps://www.blogger.com/profile/09824966626830758801noreply@blogger.comtag:blogger.com,1999:blog-5624436327404149621.post-36467245837613683992013-03-25T23:05:02.581-07:002013-03-25T23:05:02.581-07:00"saving to generate income from interests or ..."saving to generate income from interests or dividends"<br /><br />But, you do have to think carefully about how people are interpreting the question, or misinterpreting it. They may be thinking something very different than what you think. The wording can be so important.<br /><br />Here, they may think that I'm not saving so that I can be rich and not have to work; that's not realistic for me, and too much sacrifice. I'm just saving for retirement and to cover unforeseen circumstances, emergencies (as they said). But still, I do understand that I'll save for retirement a lot better if I have a lot higher return. I do understand that that's important.<br /><br />From my experience, though, what most people don't understand is that a higher return rate makes a much bigger difference, that twice the return will result in far more than twice the money over the long run, that it's very non-linear, very exponential. What they don't understand is just how massively powerful is exponential growth over long periods at an interest rate like the stock markets historic average, almost 7% real.<br /><br />And they don't understand just how much higher an average return the stock market has, and how to invest well as a layperson in general -- highly diversified index stock fund for very long run, paying off your home quicker, and not overspending on your home, CDs for shorter run, etc.<br /><br />I spend a lot of time teaching all of this, as you can see from the assignment I linked to -- It's especially beneficial to learn this when you're very young, like a 19 year old undergrad, or younger.<br /><br />But again, be careful of your interpretation of their interpretation of the question. Focus groups can be nice to find out how they really interpret questions.Richard H. Serlinhttps://www.blogger.com/profile/09824966626830758801noreply@blogger.comtag:blogger.com,1999:blog-5624436327404149621.post-6864923564729698152013-03-25T11:37:56.698-07:002013-03-25T11:37:56.698-07:00Am I the only one asking how people are supposed t...Am I the only one asking how people are supposed to save when their income is less than cost of living? And how they can invest in the face of less than 0% return on savings (after inflation) and a systemically unreliable investment and banking industry? You can't get traction on a glass mountain. Mandating money handling classes for students and the poor is useless at best, and infuriating to those who see the whole landscape.Noni Mausanoreply@blogger.comtag:blogger.com,1999:blog-5624436327404149621.post-90693118783077482982013-03-25T09:33:23.065-07:002013-03-25T09:33:23.065-07:00Another stata user...Another stata user...veryshuaihttps://www.blogger.com/profile/08080945508481058665noreply@blogger.comtag:blogger.com,1999:blog-5624436327404149621.post-48181896598281047782013-03-25T08:06:13.810-07:002013-03-25T08:06:13.810-07:00A few thoughts. I do think basic financial literac...A few thoughts. I do think basic financial literacy, such as an understanding of compound interest (on asset or debt side), would be beneficial to many. Not sure it would boost saving but might reduce debt (raising net worth). I disagree with Noah that asset allocation is that first order concern, higher saving rates, which are easy with steadily rising, not stagnating income are the key. Finally, I should note if you have a fairly flat income path over your lifetime incl. OASDI then you may not want to save much. More is not always optimal given the institutions and other constraints on people. Wealth is deferred consumption...not everyone is best served by deferring.Claudia Sahmhttps://www.blogger.com/profile/03501488047889000055noreply@blogger.comtag:blogger.com,1999:blog-5624436327404149621.post-31352127104164335262013-03-25T06:03:00.555-07:002013-03-25T06:03:00.555-07:00Perhaps people misunderstood the question? Did any...Perhaps people misunderstood the question? Did anyone ask them what they understood the question to be asking? Or perhaps you're misunderstanding the question to be asking about return on investment? (Or perhaps the English version is a poor translation, e.g. "interests" (sic), of the original Danish?)<br /><br />To me, "To save so that I generate income from interests [sic] or dividends" would be understood as "I need to generate an income from my savings". So people who want "[interest] or dividends" to accumulate might answer "no" (i.e. a response of 1 on the scale of 1 to 7) to the question.<br /><br />The more I think about it, the more I think you've misunderstood the question to be asking about return on investment, when in fact it is asking if savers need to draw a current income (e.g. interest/dividends) from their savings/investments.Richard Hancockhttps://www.blogger.com/profile/15204521369092922227noreply@blogger.comtag:blogger.com,1999:blog-5624436327404149621.post-21450671736798413762013-03-24T23:02:17.923-07:002013-03-24T23:02:17.923-07:00I agree. Below is a link to an assignment/article ...I agree. Below is a link to an assignment/article I've used in my personal finance I course at the University of Arizona since 2005, and I cover this in many other places, including assigning Elizabeth Warren's book, "All Your Worth" cover to cover, by far the best today.<br /><br />http://works.bepress.com/richard_serlin/13/Richard H. Serlinhttps://www.blogger.com/profile/09824966626830758801noreply@blogger.com