This week’s theme on the One Minute Retirement Tip Podcast is behavioral finance. You might be asking…What is behavioral finance?
Behavioral Finance is a relatively new field of study that has become more commonly understood over the last 20 years. It’s the study of the influence of psychology on the behavior of investors. Since investors aren’t always rational, we have limits to our self-control, and we are all influenced by their own biases – these factors influence how we make decisions with our money.
So it’s important that you understand the impact of your conscious and subconscious behaviors, in order to make rational decisions and avoid some common blunders.
This week, I’ll help you understand:
- What behavioral finance is
- How to be more aware of your psychology and how it impacts your decisions when it comes to your money
- How to avoid some of the biggest blunders
- How to avoid falling into the traps of loss aversion and herd behavior
My goal for this week is that you will develop a deeper understanding of how you make decisions with your money, which will hopefully lead to you making better decisions with your money!
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The views outlined in this newsletter are those of True North Retirement Advisors (TNRA) and should not be construed as individualized or personalized investment advice. Any economic and/or performance information cited is historical and not indicative of future results. Economic forecasts set forth may not develop as predicted.
Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly, will be profitable, equal any corresponding indicated historical performance level(s), or be suitable for a given client or portfolio.
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Moreover, you should not assume that any discussion or information contained in the newsletter serves as the receipt of, or as a substitute for, personalized investment advice from TNRA or from any other investment professional. To the extent that you have any questions regarding the applicability of any specific issue discussed above to your individual situation, you are encouraged to consult with TNRA or the professional advisor of your choosing. All information, including that used to compile charts, is obtained from sources believed to be reliable, but TNRA has not verified its accuracy and does not guarantee its reliability.