FINANCIAL: LC$

Wednesday, March 15, 2017

A menagerie of fallacies
http://www.rationaloptimist.com/blog/statistical-fallacies/

 — via my feedly newsfeed

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Pretty funny stuff.
 
I have seen a lot of “hippos” in my career and completely agree about the coin flip risk — although in my case it’d be 10k$ to 10k$+100 before I’d puke. (I wouldn’t take such a risk unless it was for “life changing money” aka LC$). Hence my play of the lotto when it’s over 400M$. Then, I wouldn’t mind the 50% tax bite.
 
Less than that, shrug! It’s not LC$. Remember 85% of winners of more than 1M$ go bankrupt in 3 years.
 
1M$ at 5% is 50k$ per year forever.
 
Hmmm, maybe I need to lower my definition of LC$? I think I’ll move the selctor dial down to 8M$ — half for taxes, and that 200k$ per year. Have to check with Dan the Finance Man, but that would make different life.
 
Maybe I could afford another additional gal pal, better car, or even a plane.
 
Yup, that’s how folks go broke. Laugh!
 
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