{"id":1323,"date":"2015-06-14T20:06:09","date_gmt":"2015-06-15T01:06:09","guid":{"rendered":"http:\/\/www.holypotato.net\/?p=1323"},"modified":"2015-06-14T22:32:49","modified_gmt":"2015-06-15T03:32:49","slug":"the-bad-idea-that-wouldnt-die","status":"publish","type":"post","link":"https:\/\/www.holypotato.net\/?p=1323","title":{"rendered":"The Bad Idea That Wouldn&#8217;t Die"},"content":{"rendered":"<p>I keep thinking that there are a lot of people who really want or need a course on personal finance and investing, and there aren&#8217;t many resources for it. There are books of course, but some people just aren&#8217;t book learners, or prefer a course for one reason or another. There are some good continuing education courses offered through UofT and a few other universities across the country, but for most people who don&#8217;t live close to campus they&#8217;re out of luck. So I&#8217;ve thought about putting together a full online course on the matter, and while few people think it&#8217;s needed, <a href=\"https:\/\/www.holypotato.net\/?p=1307\">when I actually asked<\/a> who would sign up for such a beast the response was under-whelming. <\/p>\n<p>A full course would be something like 12-16 hours of lectures and discussions, which would take hundreds of hours to prepare, practice, and coordinate. It&#8217;s madness to put in that kind of work before knowing for sure that there&#8217;s actually an audience at the other end. So it&#8217;s a bad idea. No one wants it, at least not online. <\/p>\n<p>And yet it&#8217;s an idea that won&#8217;t die. I&#8217;ve kept thinking about how to put it together, how to change and add to the content of the book for a course, and moreover talking myself into thinking that it is needed and maybe the reason for the previous response is that people just don&#8217;t want to raise their hands over vague hypothetical options (also, the people who would want a course are likely not on r\/PFC or here, excusing the underwhelming response earlier). So I&#8217;ve doodled a bit and come up with a preliminary syllabus for such a course. <\/p>\n<p>But it&#8217;s still a terrible idea that&#8217;s going to take way too much time that I don&#8217;t have. Fortunately I&#8217;ve heard that <a href=\"http:\/\/www.ellenroseman.com\/11717\/Investing-For-Beginners-Course.htm\">Ellen Roseman<\/a> plans to take one of her UofT courses online next year, and <a href=\"http:\/\/www.moneyaftergraduation.com\/products\/\">Bridget of Money After Graduation<\/a> is putting together an online course on investing too. So maybe I can bow out and let them solve the problem. <\/p>\n<p>Here is the preliminary course outline\/syllabus, make of it what you will. Maybe it will get you excited and you&#8217;ll want to enroll or back a kickstarter-type thing to make it happen. Maybe Ellen and\/or Bridgette will liberally borrow for their courses (and the outline is not the hard part of creating a new course so I don&#8217;t really mind). Maybe you will tell me that my outline is bad and that I should feel bad.<\/p>\n<p><strong>Planning, Investing, and Other Grown-up Money Concerns<\/strong><br \/>\nProposed Course Outline (each unit approx. 45 minutes + time for questions)<\/p>\n<ul>\n<li>1.\tIntroduction and Money 101 Review<br \/>\na.\tWhat you should already know and have mastered.<br \/>\nb.\tBudgeting and living within your means.<br \/>\nc.\tSaving saving saving<br \/>\nd.\tEmergency funds (insurance?)<br \/>\ne.\tCredit cards, lattes, etc., etc.<br \/>\nf.\tClever parables, Diderot\u00e2\u20ac\u2122s housecoat, Chilton\u00e2\u20ac\u2122s four most dangerous words.<br \/>\ng.\tReading list to kick-start the course.<\/li>\n<li>2.\tFree Your Mind and Your Ass Will Follow<br \/>\na.\tThe importance of attitude, behaviour, and long-term thinking.<br \/>\nb.\tNeat grey matter tricks, including why free makes us stupid.<br \/>\nc.\tSocial animals and keeping up with the Joneses.<br \/>\nd.\tHeuristics and rules-of-thumb (or should this be a whole other class?).<br \/>\ne.\tPoints-of-view.<br \/>\nf.\tOn uncertainty, and why a scientist is talking right now.<\/li>\n<li>3.\tCanoeing Down the Spanish River: Goals, Direction, and Having Fun [w\/ Sandi Martin]<br \/>\na.\t Sandi\u00e2\u20ac\u2122s talk from TPL, expanded a bit.<\/li>\n<li>4.\t Needs, Wants, and Other Sundry Topics<br \/>\na.\tSome concepts, because I had to stick them somewhere (inflation, compound returns, how to read graphs, use a spreadsheet, probably some other stuff).<br \/>\nb. \tNeeds and wants, and creating your minimum plan and ideal plan.<br \/>\nc.\tOther goals and things that will affect your planning.<br \/>\nd.\tAn aside on the industry, some ranting, why I push the do-it-yourself way.<br \/>\ne.\tSketching out a plan and how to get there.<\/li>\n<li>5.\t Finally, the One in Which He Talks About Investing<br \/>\na. \tInvestments help us make our plans a reality.<br \/>\nb. \tTypes of investments.<br \/>\nc.\tInvesting in businesses.<br \/>\nd.\tLessons from active investing: intrinsic vs market value, and what it means for long-term investing in a world that survives the coming zombie apocalypse.<br \/>\ne.\tInvesting in bonds, real estate, commodities, and other stuff.<br \/>\nf.\tHistory and setting reasonable expectations. <\/li>\n<li>6. \tThe Quick and Dirty Yet Completely Convincing Explanation of Index Investing<br \/>\na.\tThe importance of fees.<br \/>\nb.\tFor repetition sake, a discussion of how fees matter.<br \/>\nc. \tWhat can be controlled and what cannot be.<br \/>\nd. \tActive vs passive \u00e2\u20ac\u201c theory and past results.<br \/>\ne.\tThe added benefit of simplicity.<br \/>\nf.\tOther ways of investing, and what they entail.<br \/>\ng.\tThe importance of \u00e2\u20ac\u0153I don\u00e2\u20ac\u2122t know\u00e2\u20ac\u009d.<\/li>\n<li>7.\tRisk, the Gom Jabbar, and the Unfortunate Gambling Analogy<br \/>\na. \tRisk in everything.<br \/>\nb.\tMany definitions of risk, and blending of volatility and uncertainty with risk of lifestyle impairment.<br \/>\nc.\tRisk on different timescales.<br \/>\nd. \tRisk tolerance.<br \/>\ne. \tEnduring a market-crash in real time and Dune\u00e2\u20ac\u2122s Gom Jabbar.<\/li>\n<li>8.\t Let\u00e2\u20ac\u2122s Do It: Asset Allocation and Your Plan<br \/>\na.\tThe canonical portfolio.<br \/>\nb.\tHow to decide on an allocation that will work for you.<br \/>\ni.\tThe age-based rule-of-thumb, and the completely arbitrary equity split.<br \/>\nii. \tThe classic 60\/40 one-size-fits-all portfolio.<br \/>\nc.\tApocrypha.<\/li>\n<li>9.\tHow You Actually Do This: Three and a Half Investing Options<br \/>\na.\tRobo-advisors.<br \/>\nb.\tTangerine.<br \/>\nc.\tTD e-series.<br \/>\nd.\tETFs.<\/li>\n<li>10.\tHow You Actually Do This: Taxes and Tax-Shelters<br \/>\na.\tTFSA.<br \/>\nb.\tRRSP.<br \/>\nc.\tRESP.<br \/>\nd.\tRDSP.<br \/>\ne.\tNon-registered: taxes, dividend tax credit, capital gains, ACB.<\/li>\n<li>11.\tHow You Actually Do This: Writing Stuff Down and Making Spreadsheets (Or Whatever)<br \/>\na.\tCondensing your goals and direction down into a written plan.<br \/>\nb.\tWriting down your asset allocation and a rebalancing plan.<br \/>\nc.\tTracking stuff with spreadsheets (or pieces of paper in a binder, or whatever works for you).<br \/>\nd.\tTools that already exist and can help.<\/li>\n<li>12.\tWhere I Talk About Processes and Take a Break to Riff<br \/>\na. \tProcesses, lessons from engineering and health care.<br \/>\nb. \tGood enough solutions.<br \/>\nc.\tExecution risk, and some more talk about the behaviour gap.<br \/>\nd.\tSome slack time to review any material from the previous classes that needs further discussion.<\/li>\n<li>13.\tAu Secours, Au Secours!<br \/>\na.\tWhen to get help.<br \/>\nb. \tHow to find help.<br \/>\nc.\tGetting value-for-money.<br \/>\nd. \tWhat an advisor\/coach can do, and what they can\u00e2\u20ac\u2122t do.<\/li>\n<li>14.\tThe One Where I Reveal My Thoughts on Real Estate and You All Hate Me for It.<br \/>\na.\tThe biggest purchase \u00e2\u20ac\u201c and biggest expense \u00e2\u20ac\u201c in your life, and why it deserves more thought than it gets.<br \/>\nb.\tRent vs buy analysis, and busting myths about renting. The ball pit analogy.<br \/>\nc.\tIncome suites are not magical.<br \/>\nd.\tThe housing bubble, and the pernicious myth of the property ladder.<br \/>\ne.\tA look back at US housing bubble and why it\u00e2\u20ac\u2122s not really different here.<br \/>\nf.\tReal estate as an investment, direct and REITs.<\/li>\n<li>15.\tThe Hardest Problem in Personal Finance [hopefully w\/ secret guest(s)]<br \/>\na.\tThe options that open up as you near retirement (annuities).<br \/>\nb.\tGovernment benefits in retirement, CPP.<br \/>\nc.\tSequence-of-returns risk, longevity risk.<br \/>\nd.\tSustainable withdrawal rate, and the various schemes to convert a pile of investments into lifetime income.<br \/>\ne.\tDecumulation plans.<\/li>\n<li>16.\tAn Hour for Questions, or Lacking Those, Delicious Discussions of Dirty Dealing<br \/>\na.\tQ&#038;A.<br \/>\nb.\tWhy I hate market-linked GICs and their dirty advertising.<br \/>\nc.\tTANSTAAFL in general, being skeptical.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>I keep thinking that there are a lot of people who really want or need a course on personal finance and investing, and there aren&#8217;t many resources for it. There are books of course, but some people just aren&#8217;t book learners, or prefer a course for one reason or another. There are some good continuing [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5,16],"tags":[],"_links":{"self":[{"href":"https:\/\/www.holypotato.net\/index.php?rest_route=\/wp\/v2\/posts\/1323"}],"collection":[{"href":"https:\/\/www.holypotato.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.holypotato.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.holypotato.net\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.holypotato.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1323"}],"version-history":[{"count":0,"href":"https:\/\/www.holypotato.net\/index.php?rest_route=\/wp\/v2\/posts\/1323\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.holypotato.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1323"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.holypotato.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1323"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.holypotato.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1323"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}