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Dr. David Edward Marcinko; MBA MEd
SPONSOR: http://www.MarcinkoAssociates.com
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A Hobson’s choice = “take it or leave it.” Not choosing is often just as costly as choosing.
Below is a structured list of the most common Hobson‑style dilemmas investors face.
1. Invest or Lose Purchasing Power
Choice:
- Invest in risk assets
- OR hold cash and watch inflation erode it
Why it’s Hobsonian: Doing nothing (holding cash) is itself a guaranteed loss in real terms.
2. Take Market Risk or Take Longevity Risk
Choice:
- Invest in volatile assets
- OR risk outliving your money by staying too conservative
Why it’s Hobsonian: Avoiding volatility creates a different, equally dangerous risk.
3. 401(k) Default Options
Choice:
- Accept the employer’s default fund (often a target‑date fund)
- OR opt out and lose the employer match
Why it’s Hobsonian: Not participating leaves free money on the table.
4. Buy at Today’s Prices or Miss the Market
Choice:
- Invest now at valuations that may feel high
- OR wait and potentially miss years of compounding
Why it’s Hobsonian: You can’t invest at yesterday’s prices.
5. Pay Taxes Now or Pay Taxes Later
Choice:
- Roth (pay taxes today)
- Traditional (pay taxes in the future)
Why it’s Hobsonian: There’s no option to avoid taxes entirely — only when you pay them.
6. Diversify or Concentrate
Choice:
- Diversify and accept average‑ish returns
- OR concentrate and accept higher risk of ruin
Why it’s Hobsonian: There’s no “high return, low risk” option.
7. Use Financial Intermediaries or Go It Alone
Choice:
- Pay fees to advisors, brokers, or funds
- OR manage everything yourself and accept the time/knowledge burden
Why it’s Hobsonian: Either you pay in money or you pay in time and effort.
8. Accept Volatility or Accept Illiquidity
Choice:
- Public markets: liquid but volatile
- Private markets: stable‑looking but locked up
Why it’s Hobsonian: You can’t get both liquidity and smooth returns.
9. Take Career Risk or Take Portfolio Risk
Choice:
- Keep a stable job and invest conservatively
- OR take entrepreneurial risk and rely more on your portfolio
Why it’s Hobsonian: Risk shifts categories, but never disappears.
10. Follow the Herd or Stand Alone
Choice:
- Follow consensus and risk mediocrity
- OR go contrarian and risk being wrong alone
Why it’s Hobsonian: There’s no option that avoids both regret and uncertainty.
COMMENTS APPRECIATED
SPEAKING: Dr. Marcinko will be speaking and lecturing, signing and opining, teaching and preaching, storming and performing at many locations throughout the USA this year! His tour of witty and serious pontifications may be scheduled on a planned or ad-hoc basis; for public or private meetings and gatherings; formally, informally, or over lunch or dinner. All medical societies, financial advisory firms or Broker-Dealers are encouraged to submit an RFP for speaking engagements: CONTACT: Ann Miller RN MHA at MarcinkoAdvisors@outlook.com -OR- http://www.MarcinkoAssociates.com
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