#behavioral-finance

#behavioral-finance

When Ramsey was asked a question about when to claim Social Security, he replied, "it usually makes sense to take it early if you're going to ... invest every bit of it." This occurred in a podcast in 2019, and Ramsey explained that he would recommend this approach because he believes that investing the money could help you end up with more wealth in the long run than if you simply waited to claim Social Security benefits and let the benefit grow that way.

The truth is, what scares most people isn't the balance in their bank account ... it's the unknowns around money: Am I spending too much? Am I saving enough? Will I run out? Should I feel guilty for wanting something joyful? That's where financial mindfulness comes in. It's not about restriction; it's about awareness, intention, and aligning your money with the life you actually want to live.

I think a lot of people don't realize that investing is a problem that's been solved. We know what the average returns are for equity, for fixed income. We know what inflation looks like over the long haul. We know what the economy broadly does, what the range looks like. The variable, the wild card, that we haven't yet solved for is our own behavior.

In the high-stakes crypto landscape, volatility is more than a market characteristic; it is a psychological battleground, filled with euphoric highs and crushing lows. In this environment, every moment feels like a rollercoaster, fuelled by fear, hope and hype, and while some investors thrive, not all do; in fact, they may end up burning out because they react emotionally to price dips.

Join us for a full day of expert advice on managing your finances and planning for the future. Get free, objective, no-strings-attached one-on-one counseling from CERTIFIED FINANCIAL PLANNER(TM) professionals and attend financial workshops throughout the day. All financial workshops will take place in the Koret Auditorium and be livestreamed on Zoom. This is a hybrid event. Registration is required for Zoom attendance.

She prefaced the meet-up with this note: I'm waiting for the market to drop before putting my recent, big commission payment into the market. This came within days of another message from a listener: Should I do something with my 401(k) before the bottom falls out? If only we knew when that was going to be! I'm often asked to peek into portfolios when stock market indexes reach new highs or after gut-wrenching plunges.

Nationwide also found that nearly half of plan participants have made reactive decisions to shift their funds to more conservative assets. And the percentage is slightly higher among people ages 22 to 34 who have more time to invest and save. Furthermore, respondents who expressed the highest levels of confidence were more likely to make risky financial decisions. They were 12 percentage points more likely to have reallocated savings to more conservative assets,

The investment decisions people make are often influenced by cognitive biases that can lead to irrational decisions or behavior contrary to personal financial goals. Cognitive biases, like the status quo bias, showcase a tendency to prefer existing circumstances over change.