Welcome to a new week and a new theme here on the One Minute Retirement Tip! This week, 

I’m talking about behavioral finance. An incredibly important topic when it comes to your money and your retirement, yet at the same time it’s something that few people really, truly understand. 

So this week, I’m breaking down for you what behavioral finance is, what it means for your retirement, and how you can use behavioral finance concepts to avoid some of the biggest blunders when it comes to your retirement. 

Let’s start with what behavioral finance is in the first place. According to the corporate finance institute, Behavioral finance is “the study of the influence of psychology on the behavior of investors or financial analysts. It also includes the subsequent effects on the markets. It focuses on the fact that investors are not always rational, have limits to their self-control, and are influenced by their own biases.”

Our psychology and our biases impact how we make financial decisions and investment decisions in a big, big way! Understanding that there is a lot at play each time you make a decision will help you take a pause, and hopefully make better decisions as a result. 

Dick Vitale, or Dickie V as he is affectionately known in the college basketball scene, once said: “Life is simple. Make good decisions and good things happen. Make bad decisions and bad things happen.” Very true in sports, life, and in your retirement. 

So stick around with me this week as I talk about the core concepts of behavioral finance to help you make smarter and better decisions. 

That’s it for today, thanks for listening. My name is Ashley Micciche...and this is the One Minute Retirement Tip. 

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