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Practical Planning Tip: The Four Sons of Investing - The Angry Son

April 18, 2024

In the theme of the upcoming Passover holiday we will continue our discussion on financial planning lessons from the seder. In particular discussing the four sons of investing.

Yesterday we discussed the son the wise son. Who turned out to NOT be as wise as he thinks he is. Today we will discuss Stage 3: The investor who is angry: Most people are not necessarily evil, they are just misinformed or frustrated by their struggles. This brings us to the angry investor who realized that despite feeling like they had solved the investment puzzle, they just made a mess of their finances.

This may include chasing strategies that

  • Promise to outpace the S&P 500, which won’t succeed.
  • Alternative investments like hedge funds and private equity that won’t work out
  • A real estate deal recommended to you by your friend from shul or college roommate that implodes
  • Opening accounts at various different firms trying to chase the next hot thing
  • Day trading which NEVER EVER WORKS OUT
  • Buying a book from a financial “guru” who’s background is in self promotion and not in personal finance.
  • Or taking investment advice from your brother-in-law

Not surprisingly, all these things end up wasting a lot of time, money, and cause much frustration.

The best approach is to have “Stage 3” last as short as possible. Recognize your mistakes, cut your losses, chalk up the first years of your investment journey as a learning experience, and move on with life.


You can WATCH the full video here.