Yale Economist James Choi Analyzes Popular Financial Advice : Planet Money : NPR

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A "For Sale by Owner" sign is posted in front of property in Monterey Park, California on April 29, 2020. - Home prices in the US grew in February to its highest level in over a year heading into the traditional Spring selling season but momentum in the nation's housing market has been reversed due to the coronavirus pandemic. (Photo by FREDERIC J. BROWN/AFP via Getty Images)

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“Save aggressively for retirement when you’re young.” “The stock market is a sure-fire long-term bet.” “Fixed-rate mortgages are better than adjustable-rate mortgages.” Popular financial advice like this appears in all kinds of books by financial thinkfluencers. But how does that advice stack up against more traditional economic thinking?

That’s the question Yale economist James Choi set out to answer in a paper called Popular Personal Financial Advice Versus The Professors. In this interview, he tells Greg Rosalsky what he found. Their talk marks another edition of Behind The Newsletter, in which Greg shares conversations with policy makers and economists who appear in the Planet Money newsletter.

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