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« The Four Dimensions of a Perfect MBA Applicant, Part 1 | Main | The Four Dimensions of a Perfect MBA Applicant, Part 2 »

January 24, 2012


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Thanks for highlighting this book! :) I love books which aren't the same old rehashed advice, or they find a different tack to reshash the old stuff. Guess it's time for me to actually.. umm.. read something other than blogs this year.

It will be strange in a few years when the house is paid off. Shortly after that, all three of my kids will be done with college, and we will have basically no expenses outside of the usual fixed ones like taxes and utilities. (Although I think travel will become a 'fixed expense' :) )

We kind of did things in reverse in that we had kids pretty quick after college and a lot of our savings will come when we hit 50 or so. We have still saved quite a bit over the years, but definitely not as much as those who started their families later.

I think the lifetime balance sheet is an interesting idea, however it is dangerous to count on Human Capital. It will always be an estimate, and one that is tricky to get right. A career change or poor health would radically change the value.

I wouldn’t trust any calculations based on Human Capital- especially something like consumption smoothing where you borrow (or save less) when you are young on the assumption that your Human Capital will allow you to make up the savings in the future.
-Rick Francis

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