The End Of History Illusion And Goal Based Investing

End of history illusion

The very essence of financial planning is about helping clients to formulate the strategies to achieve their future goals. The problem is that we’re not very good at figuring out what our future goals will be. We just don’t know how to envision the ways we’ll be different in the future. This is the “End Of History Illusion”.

We may be encouraging retirees to save towards a vision of retirement that they won’t actually care about when retirement comes.

Which means investors should actually be cautious about tying their saving and investing habits in a way that over-commits to a particular and specific long-term goal.

Instead, if we recognize the uncertainty of future goals themselves, planning for flexibility to adapt to future goals may be more effective than investing for the goals themselves!

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The End Of History Illusion And Goal Based Investing

by Mike Rawson time to read: <1 min