Looks like a bubble, feels like a bubble

Picture speaks a thousand words

USD per Bitcoin

USD per Bitcoin

 

UPDATE 12:00 Noon PST.

AND DROP LIKE DUBSTEP

Via Business Insider

Bitcoin Daily Price

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529 Plans – Are they worth it?

One of the biggest expenses to hit households is college education for their kids. 529 plans are the most common vehicle available for parents to save for their kids education. Via the SEC

A 529 plan is a tax-advantaged savings plan designed to encourage saving for future college costs. 529 plans, legally known as “qualified tuition plans,” are sponsored by states, state agencies, or educational institutions and are authorized by Section 529 of the Internal Revenue Code.

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Welcome, its going to be a fun ride as long you have the right behaviors

Hey Son.

Hope things are well. At this time all you are supposed to do is eat, crap and sleep, thats it, nothing more nothing less. Daddy and Mommy are really happy that you are here. These are your formative growing years so how about we start with some lessons on behavior.

Most humans have what we call cognitive biases, these were great things when we were evolving from animals, but cripple us today. A lot of research is now being done on this topic and marketers have made a fortune using these biases to make money of you. So its a good idea to understand what these are and how to counter. We will talk about two big ones today, Confirmation Bias and Loss aversion.

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Whats the endgame, and will Facebook be part of it?

<Disclaimer>This is going to a wonkish post. More of a brain dump on a few interesting ideas in my head, not fully flushed out by any means!</Disclaimer>

I’ve been really intrigued by the “Beyond Scarcity” series by Izabella Kaminska over at FT alphaville. The main thrust of the theory is that humanity has a certain set of needs like food, shelter, security and consumable goods i.e has a level of consumption. Throughout history there has been a scarcity of these items and mankind furiously progressed to make these items available. To grease this production of these items the concept of “money” was invented. Money facilitates the exchange of these goods better than the barter system.This is also why we have entreunpership. There was opportunity to provide humanity with things that it needed in a productive way and earn some “money”. The general public now also had to “earn money” to buy goods. Thus now everybody had to have a “job” and had to work for a living.  This general model now caused money to have a positive time value and it itself became an appreciating good. Money had to grow and therein came the concept of interest and the expectation that money should always grow in value. The flip side was the concept of inflation. Since we were still in a scarcity environment, even as more goods started coming to market, demand was still high so prices rose and inflation came into being. Also as money kept getting interest and growing in quantity, there was more money chasing fewer goods, again leading to the concept of inflation. So the need for certain goods and the scarcity of those goods, has what led to mankind creating the concepts of money, interest and inflation. Continue reading

How to manage your life like a product manager

I’ve been thinking a lot lately on how to be more productive than I currently am. At the beginning of each year I always write down a list of things I think I should get done this year, but never get around to actually doing all of them. I don’t even know at the end of the year which part was complete and which was not! So naturally I gravitated towards, maybe if I write everything down into a task list and just start checking it off, I might actually get more done. Off I went in search of a perfect TODO list tool. Many many tools later, still not getting stuff done 😦 Continue reading

Notes to my son

We are going to have a new addition to the family and hopefully a new reader to this blog. I really, really liked the google ad where the dad catalogs and writes emails to his daughter through the years via all the google applications. I wanted to do something similar for my son. Here is the first in a regular series of blog posts called “notes to my son”. Hopefully he reads them someday and gets something out of it. Hopefully y’all get some thing out of it too. Comment on the posts, so that he gets to see all sides of the argument :).

Hey Son,
Welcome. Dad here, hope all is well. I hope you are enjoying your stay inside the womb. We would really like it if you stay in there a little longer. Its good for you

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Some truths for the individual investor Part 2

In a previous post there was tough love, lets move on to happier things, what are the things that are going well for the individual investor?

Indexing
Index funds are pretty prevalent and everybody knows about them. Indexing  leads to lower fees and fees are the biggest killer of your portfolio. Lower the fees, less the hit. Today’s investor has many more low cost choices available. You can construct a good diversified portfolio with minimal cost yourself without needing a Phd.

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