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Personally, I used to work in finance, so I had to know it - but I think it's essential knowledge for both employees and entrepreneurs. Employees - well, if yo
by zavulon 16y ago
Personally, I used to work in finance, so I had to know it - but I think it's essential knowledge for both employees and entrepreneurs.
Employees - well, if you're planning to make a career in some big company, you might as well invest in 401K, especially if they're offer matching. And then you usually get a choice between various funds. And obviously, you need to get educated about finance, because if you make wrong choices, you could get really fucked.
Entrepreneurs - obviously you need to be good at that when money valuations come into play for your startup. And here - same situation, if you're not educated about how that works, you're gonna get fucked.
And those are just some of the examples of situations you're going to run into where that knowledge is required.
- btmorex 16y agoActually, you don't really need to know much to do a decent job investing for retirement. Invest in a low-cost, index-based stock fund and similarly low-cost, diversified bond fund. Follow one the many simple formulas to decide what percentage should be in bonds vs stocks (usually based on years to retirement.) What I wrote above will easily beat most of the more complicated plans out there especially after factoring in cost. You can of course get more complicated, but you usually only need to get more complicated if you have an awful lot of extra money which most people don't.