Intelligence Does Not Immunize You From Financial Idiocy

The Problem with Mutual FundsThis woman spews intelligence: Harvard PhD, worked for the US Treasury, worked for the Federal Reserve, was a member of the President’s Council of Economic Advisers… the elite of the elite in the sense of academia and intelligence in her field. Yet: “Just because you have a Ph.D. in economics doesn’t mean you know how to invest for retirement… taking responsibility for your own investing is “too hard,” she says.” She is as clueless as the average Joe on the street when it comes to investing and her retirement savings. This just blows my mind. How does this happen? How many cognitive biases are at work here? I just can’t comprehend it. I’m left to conclude that intelligence does not immunize you from financial idiocy.

6 thoughts on “Intelligence Does Not Immunize You From Financial Idiocy

  1. As someone who is not so smart, I am thankful for this. Otherwise those with mere raw intelligence would monopolize all the financial capital, leaving none left to dolts like me!

    1. It’s just so curious. My wife said it best when she said this isn’t any different from the hordes of nurses who smoke during their breaks or doctors being the worst patients – experts and practitioners in the field of health should know better, yet…

    1. I shouldn’t be so surprised, as on further reflection, I met many brilliant people in higher education who were incredibly book smart but were utterly out of their element in the real world.

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