August 01, 2016 Feature

Retirement Planning for Lawyers

Christine Hotwagner

Here’s a big word for you from the world of behavioral finance: hyperbolic discounting. Hyperbolic discounting is a time-inconsistent model of discounting. Okay, that didn’t help much. Think of it this way: Humans have a tendency to value short-term rewards over longer-term rewards, even when mathematically the rewards are worth the same. The farther away the reward is, the more we tend to discount it.

Premium Content For:
  • Solo, Small Firm and General Practice Division
Join - Now