Link Digest: Mixing Work & Passion, Invest in Memories, Stable Value Fund Warning, and More

Here are some more links worthy of sharing:

The Overjustification Effect
A smorgasbord of behavioral psychology that questions the idea that there is nothing better in the world than getting paid to do what you love. This is a very complicated topic but the article makes some good observations.

Memory as a Consumer Durable (Atlantic)
Another twist on the whole “buy experiences, not things” theory. What if you treated a memory as “consumer durable” good much like refrigerators, furniture, or a car? In similar ways, they provide constant satisfaction and/or pleasure, and they last a very long time. In that case, should we acquire them while we’re young so we can enjoy them the rest of our lives?

Stable value 2.0, fewer investor guarantees (Reuters)
If you own a stable value fund in your retirement plan, you should check to see if changes were made to any of its principal guarantees.

The 401(k): Americans ‘just not prepared’ to manage their own retirement funds (WaPo)
401k were designed to be a supplemental account to pensions, but now they are a replacement. If you know what you’re doing, it’s good, and it’s nice because you can take the money with you across jobs. But the total account balances are nowhere near what people need to retire as a whole. Maybe we need something else.

“If the 401(k) is supposed to be the primary retirement vehicle for the average American worker, then it needs to be consistent with the information and financial ability of the average American worker, who is just not prepared to manage funds like that over the course of a lifetime.”

GMO 2012 1st Quarter Letter
The most recent letter from Grantham talks some sense about why most managers can’t afford to have the proper long-term mentality for market-beating returns.

…ignoring the volatile up-and-down market moves and attempting to focus on the slower burning long-term reality is simply too dangerous in career terms. Missing a big move, however unjustified it may be by fundamentals, is to take a very high risk of being fired. Career risk and the resulting herding it creates are likely to always dominate investing.

CarrierCompare: The iPhone app your carrier doesn’t want you to see (CNN)
An iPhone app that takes data (signal strength, response time and speed) from users and analyzes it together to find which carriers have the best service and coverage for any given area. (Update: Apple has since removed it from the App Store.)

Comments

  1. CarrierCompare was later pulled from the app store http://money.cnn.com/2012/04/27/technology/carriercompare-apple/?source=cnn_bin

  2. Experiences last longer, but only if you have some way of recording them. In my case that means not only taking pictures, but also sorting, editing, and cataloguing them, otherwise I won’t look at them again. For a while I kept a regular blog and it has become a personal diary on great experiences, half of which I would have otherwise forgotten.
    For me, investing in experiences means I have to do some upkeep!

    Which reminds me, I should really start writing that blog again…!

  3. @Michael – Thanks for the update.

    @Yinna – Pictures, video, and diaries are like a nice maintenance plan for continuing the use of your memories. :)

  4. I was browsing your site for Roth IRA tips and I learned a lot, but I was wondering if you could explain to us which mutual funds (I’m referring to your asset allocation page numbers now) you actually put in your Roth.

    Keep up the good work, I learn something new every time you post!

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