You can’t prove the assumptions you may rely on. How did you test yours?
Within the archives of HD is this comment:
“I built a spreadsheet and proved that the math worked for me and my wife with our facts and assumptions.”
Making assumptions means accepting something as true or certain without proof, often based on your own beliefs, past experiences rather than on concrete evidence. You can’t prove an assumption, but you can test it.
The exact subject associated with the above comment, is not important. Suffice to say though that it related to lifetime retirement income security - important stuff. The validity of those assumptions will not be tested for many years.
People sometimes make assumptions (sometimes unconsciously) that steer them toward the answers they want. This tendency is linked to cognitive biases. For example, our emotions or goals can shape how we interpret information—so we may make assumptions that favor our preferred outcome.
Planning for years in the future with many possible variables requires assumptions, nothing can be known with certainty.
How did you go about setting your assumptions? How did you become comfortable with your final choice? Have you had the opportunity yet to test those you relied on to make financial/retirement decisions?
“I built a spreadsheet and proved that the math worked for me and my wife with our facts and assumptions.”
Making assumptions means accepting something as true or certain without proof, often based on your own beliefs, past experiences rather than on concrete evidence. You can’t prove an assumption, but you can test it.
The exact subject associated with the above comment, is not important. Suffice to say though that it related to lifetime retirement income security - important stuff. The validity of those assumptions will not be tested for many years.
People sometimes make assumptions (sometimes unconsciously) that steer them toward the answers they want. This tendency is linked to cognitive biases. For example, our emotions or goals can shape how we interpret information—so we may make assumptions that favor our preferred outcome.
Planning for years in the future with many possible variables requires assumptions, nothing can be known with certainty.
How did you go about setting your assumptions? How did you become comfortable with your final choice? Have you had the opportunity yet to test those you relied on to make financial/retirement decisions?
The post You can’t prove the assumptions you may rely on. How did you test yours? appeared first on HumbleDollar.
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