Hi Robert. I think it's important to question the status quo of personal finance gurus. They have a lot to say and a lot of what they say is helpful; however, accepting their advice uncritically is the wrong answer.
On the other hand, I spent the last eleven months on a deployment teaching Financial Peace University. I witnessed that people intuitively grasp the Ramsey Solutions Seven Baby Steps but lack even a basic knowledge about personal financial concepts. They value neatly-packaged ideas and simple concepts. Life, though, is complex.
I appreciate your academic take on these subjects. You mentioned in your article above the complexity of evaluating, say, a savings habit. You highlighted the complexity of estate planning for an individual with no dependents or extended family compared to someone with many dependents potential bequests. Life is complex.
The iterative process of practice (real life) and academic (research) results in the development of knowledge and a better understanding of the nuts and bolts of personal finance. My hope as a financial advisor is to stay current on academic trends to make the greatest positive impact possible on my clients. My hope for you is that you will continue to stimulate our thinking and provide research and insights into this developing field. Keep it up, Robert! Thank you for challenging common ideas and working hard to help us understand personal finance better.
Hi Robert. I think it's important to question the status quo of personal finance gurus. They have a lot to say and a lot of what they say is helpful; however, accepting their advice uncritically is the wrong answer.
Caveat: Michael Kitces, one of the most respected voices in financial planning, recently posted this article about the value of checklist type planning to his website, Nerd's Eye View. https://www.kitces.com/blog/checklist-style-financial-planning-dave-ramsey-baby-steps-money-guy-show-order-of-operations/. Ramsey and others have a lot of good things to say.
On the other hand, I spent the last eleven months on a deployment teaching Financial Peace University. I witnessed that people intuitively grasp the Ramsey Solutions Seven Baby Steps but lack even a basic knowledge about personal financial concepts. They value neatly-packaged ideas and simple concepts. Life, though, is complex.
I appreciate your academic take on these subjects. You mentioned in your article above the complexity of evaluating, say, a savings habit. You highlighted the complexity of estate planning for an individual with no dependents or extended family compared to someone with many dependents potential bequests. Life is complex.
The iterative process of practice (real life) and academic (research) results in the development of knowledge and a better understanding of the nuts and bolts of personal finance. My hope as a financial advisor is to stay current on academic trends to make the greatest positive impact possible on my clients. My hope for you is that you will continue to stimulate our thinking and provide research and insights into this developing field. Keep it up, Robert! Thank you for challenging common ideas and working hard to help us understand personal finance better.