In this discussion, Harold Pollack, a University of Chicago Professor and co-author of 'The Index Card,' simplifies personal finance profoundly. He advocates for decluttering financial advice to essentials that can fit on an index card. Pollack explores effective savings strategies, the importance of prioritizing retirement over college funding, and emphasizes a disciplined, diverse investing approach. He highlights the emotional aspects of financial decisions and the value of having a financial advisor to navigate complexities, making prudent choices accessible to everyone.
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Pollack's Financial Awakening
Harold Pollack reached 40 without prioritizing personal finance, facing a crisis upon his mother-in-law's death.
This personal crisis, coupled with a banker's blunt advice, prompted Pollack's deep dive into financial management.
insights INSIGHT
Financial Literacy Gap
Most people lack financial literacy due to inadequate education.
Despite advanced degrees, Pollack's financial struggles highlight this common issue.
volunteer_activism ADVICE
Prioritize 401(k)
Maximize 401(k) contributions, especially employer matches, as a foundational step.
This 'free money' grows tax-deferred and forms the bedrock of retirement savings.
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In this highly acclaimed book, Dr. Robert B. Cialdini explains the psychology behind why people say yes and how to apply these insights ethically. The book outlines six universal principles of influence: Reciprocation, Commitment and Consistency, Social Proof, Liking, Authority, and Scarcity. The new and expanded edition includes a seventh principle, Unity, along with new research, insights, and examples. Cialdini uses memorable stories and relatable examples to make the subject accessible and easy to understand, helping readers become more skilled persuaders and defend themselves against unethical influence attempts.
The millionaire next door
William D. Danko
Thomas J. Stanley
The book challenges the common perception that millionaires live in affluent neighborhoods and instead shows that many wealthy individuals live modestly in middle-class and blue-collar areas. The authors identify seven common traits among these millionaires, including being dedicated to a vision, making appropriate career decisions, valuing financial security over social standing, and efficiently spending time and money. The book also distinguishes between 'Under Accumulators of Wealth' (UAWs) and 'Prodigious Accumulators of Wealth' (PAWs), emphasizing the differences in their spending and saving habits.
The Index Card: Why Personal Finance Doesn't Have to Be Complicated
Helaine Olen
Harold Pollack
This book, co-authored by Harold Pollack and Helaine Olen, expands on the nine simple financial rules that Pollack initially wrote on an index card in 2013. The rules include maxing out 401(k) contributions, investing in diversified mutual funds, paying credit card balances in full each month, and supporting social insurance programs. The book provides an easy-to-follow action plan that works in both good and bad economic times, aiming to help readers take control of their financial lives by avoiding complicated and often misleading financial advice.
On this channel we conduct deep-dive discussions with hundreds of experts a year, doing our best to see through their eyes and chart a wise course through the economic waters ahead.
But with all the different approaches, opinions and conclusions, it's important to remind ourselves not to overcomplicate things.
The fundamentals to wealth building aren't rocket science.
And for most non-professional investors, keeping it simple, consistent and disciplined makes success more attainable.
In fact, today's guest claims that everything the average investor needs to know can fit on a standard index card.
So what's on that card? We'll ask the man himself.
Today we'll talk with Harold Pollack, University of Chicago Professor and co-author of the best-seller The Index Card: Why Personal Finance Doesn't Have to Be Complicated
Folks if you have children in college or starting out in life, this may be a particularly valuable discussion for them to hear.