Could Your Financial Behaviors Wreck Your retirement?
In recent years, there has been a huge push in the field of “behavioral finance.” That is, what types of behaviors do people that can affect one’s portfolio. That’s what we are going to talk about on the today’s show. We're going to discuss if it's possible that your financial behaviors could affect your retirement.
To dive in deeper we’ve outlined 4 biases people tend to run into! More specifically, the bad behaviors that could impact your financial life. Believe it or not, science has shown there are certain human emotions and behaviors, we all exhibit, that hurt our chances of financial success.
A Closer Look:Odds are that you have probably never heard of its application until right now. These problems and emotions that investors face are very real, and they can be very impactful to your financial future if you ignore them. Most people do not process information solely on objectives and statistical numbers, so the financial planning process can be subjective. And therein lies the entire problem.
Money is emotional, the entire idea of it. I mean think about it. You’ve worked a lifetime to accumulate what you have. You spent long, hard hours to save it. You made sacrifices. Went through some tough times. When it comes to positioning your money into investments and making the final decisions on that, it’s hard to set your emotional tie to your money aside and make a rational decision. Let’s go over a few examples of behavioral biases and behavioral finance issues that you may be able to avoid simply by having a slight understanding and awareness that they are indeed there!
We want to avoid making some of these simple behavioral mistakes. We would be happy to help you develop a game plan to avoid these emotional and behavioral pitfalls.
