Pascal’s Wager: The 0.1 Percent Risk
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The following is an excerpt from Hello Harold, a book by Harold Evensky - click here for a free Kindle version!
Playing Russian roulette with a thousand-chamber gun might not seem so risky until you consider the consequence of that 0.1 percent risk.
I’ve been working with Linda, my client, for the last hour, entering data into MoneyGuide, our planning program. We’re now discussing the plan’s time horizon—how long her nest egg needs to last so she can keep groceries on the table.
“Linda,” I asked her, “one of the major guesses we need to make is how long you will need money.” (That’s my tactful way of asking what age she thinks she’ll die.)