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Matthew Ritter's avatar

> Being honest about fucking up is almost always worth it

Through several channels, I think this has a subtle but powerful impact on self-honesty. Those channels include: Self-evaluation practice, cementing an honest self-image, and exposure therapy to self-criticism. Self-honesty reduces the amount of energy spent on things which are no longer likely to work out.

I know several people who are struggling in life despite being smart and hardworking. A common thread I've seen is an inability to update a core belief. This often results in the belief that they're "almost there" to being proven right, while other life options (all quite respectable) quietly fade away. Multi-level marketing is a systematic exploitation of this propensity, sucking energetic people out of the actual economy. But many other people create their own hype-traps in more subtle ways.

In the last few years, I've come to evaluate some of my best early moments where where I let go of a comforting illusion (often about my realistic options). Later, while making progress on a less sexy path, I saw opportunities that were at least as good as the original, especially considering that my preferences had changed.

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Peter McLaughlin's avatar

I agree on the index fund thing, but so long as you've not got your money in something insanely stupid I think better advice in the UK is 'get the wrapper right'. At least intuitively, it seems that the loss to tax from not putting your money in an optimal wrapper (which is probably ISA when you're young, SIPP when you're older, workplace pension if it's offered) is greater than the loss to fees from investing in a managed fund. Haven't crunched the numbers, though, so maybe I'm wrong about this. Obviously the best thing is to have your money in an optimal wrapper *and* in low-fee index funds, but if I was just picking one piece of advice for investing I'd focus on getting the correct wrapper rather than the correct fund. Would be interested to hear if you've crunched the numbers and think that getting the correct fund is more important.

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