alt Hacker NewsI wonder how incentives could be better aligned.
Had an interesting case study where a coworker liked to gamble - he was fairly responsible, kept to his budget and treated it like an expensive hobby he enjoyed- but at the same time, he had someone else handle his retirement investments, which is an unpredictable payoff market where you come out ahead on average. I asked a couple times why he didn't replace gambling with investing and never got a good answer. He was certainly smart enough that he could have had fun with the research and chance.
Then there was a market downturn and his investment advisor had to talk him down from selling in a panic, and I was like "oh... It's not an information problem at all. It's entirely an emotional regulation problem"
I should sell a "meditation for investors" course
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I'm not sure it's irrational to sell in a market downturn. It's a way to pad your emergency savings rather than try to catch a falling knife later when you're already fired. Of course if you sell more than you need to survive a layoff, then that's probably not smart.
I think your coworker was quite smart. Investing and gambling are close enough that for many parties they are indistinguishable. I've heard investing described as 'gambling for people with more money'. The biggest difference is that if you have enough money you can legally manipulate the market. If it's your retirement investment that might just be over the horizon far enough to get you into danger. Just having access to that with a habit could already be an issue.