NerdWallet's Smart Money Podcast

Behavioral Finance Mistakes That Hurt Your Portfolio and What “Good” Returns Look Like


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Learn how behavioral biases impact your investments and what a “good” return from your portfolio looks like.


How do behavioral biases affect your investing decisions? What kind of returns should you expect from your investments? Hosts Sean Pyles and Elizabeth Ayoola discuss common psychological traps investors fall into and how to set realistic expectations for long-term portfolio growth. They begin by speaking with Behavioral Financial Advisor Yohance Harrison, founder of Money Script Wealth Management, about behavioral finance, with insights on anchoring bias, recency bias, and how emotional decision-making can hurt your investments. They also discuss strategies to counteract these biases, how long-term planning can override emotional investing, why patience is key to market success, and how robo-advisors can help you stick to your plan.


Then, investing Nerd Sam Taube joins Sean and Elizabeth to answer a listener’s question about whether their investment returns are on track. They discuss what a "good" return looks like, how different types of mutual funds impact performance, and when to consider adjusting your investment strategy. 


7 Best Mutual Funds for February 2025 and How to Invest: https://www.nerdwallet.com/article/investing/how-to-invest-in-mutual-funds 


In their conversation, the Nerds discuss: behavioral finance, investment biases, anchoring bias, recency bias, emotional investing, stock market psychology, long-term investing, short-term investing, market volatility, mutual fund returns, index fund returns, S&P 500 average return, risk tolerance, investment performance, robo-advisors, automated investing, when to sell stocks, how to manage investments, financial anxiety and investing, how to pick mutual funds, investment education, investment portfolio strategy, when to rebalance your portfolio, how to diversify investments, investment growth expectations, financial planning, how to avoid bad investments, investment risk management, and active vs passive investing.


To send the Nerds your money questions, call or text the Nerd hotline at 901-730-6373 or email [email protected].


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NerdWallet's Smart Money PodcastBy NerdWallet Personal Finance

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