This week I’m talking about how to rebalance your investment portfolio. Rebalancing is the process of realigning your portfolio back to its intended position. We all get a little out of what sometimes in all areas of life, but when it comes to your investment portfolio, I can’t emphasize enough how important it is to bring things back into alignment when it gets out of whack. 

A recent Vanguard study actually quantified the impact of rebalancing vs. just letting things ride in your portfolio, and they found that rebalancing adds about .26% a year in returns. While that seems like a small amount, over a lifetime of investing it can be as much as 6-figures in portfolio value. 

And I’m glad you’re with me today, because it’s probably the most important rebalancing tip of the week, and it’s also the easiest to understand. 

If you haven’t rebalanced your portfolio recently - and by recently I mean in the last year, 3 years, 5 years or longer - it doesn’t really matter. Chances are that if you haven’t been paying close attention to your portfolio, it’s way out of whack. Why? Well, the last 10 years have seen a 300% gain in the stock market and an even bigger gain in certain stocks and industries.

We are now officially in the longest economic expansion in the history of the United States. If you do not take this opportunity of tremendous growth that you’ve likely had in your investment portfolio to review your current allocation to stocks, bonds, and every position in your portfolio and ask yourself if that mix is right for you at your current age and stage in life, you are playing with fire. 

I don’t know when the next recession will be, and how deep the next stock market downturn will be, but I do know this - it will happen. And the time to rebalance is when the seas are calm and you can sell your bloated positions, bring everything back into alignment at or near a high water mark in your portfolio. 

If you wait too long, and you don’t do it before the next major market downturn arrives, you miss your opportunity. So take the time this week to review your portfolio. Look at your current mix of stocks and bonds, and the current positions you own and determine if any of it is out of whack, and rebalance if necessary. 

That’s it for today, but before you go, would I be correct in saying that your retirement is perhaps the most important financial decision you’ll ever make? You want to get it right. Well, so do I. For the last 12 years, I’ve been helping clients just like you make the transition into retirement. If you want to talk one-on-one with me about whether or not you can retire, head on over to truenorthra.com, where you can book a 15 minute call with me, at a time that’s convenient for you. The call is confidential, free, and I promise to help guide you on whatever is weighing most on your mind right now regarding your retirement. So head on over to truenorthra.com and book a call today. 

Thanks for listening. My name is Ashley Micciche and this is the One Minute Retirement Tip. 

----------

>>> Subscribe on iTunes: https://apple.co/2DI2LSP

>>> Subscribe on Amazon Alexa: https://amzn.to/2xRKrCs

>>> Check out our blog: https://truenorthretirementadvisors.com/blog/

----------

Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance, wealth management, fee only financial advisor, financial planner, financial podcast, retirement podcast, financial independence podcast, how to rebalance your portfolio, portfolio rebalancing strategies, how to rebalance portfolio, should you rebalance your portfolio, how to rebalance your portfolio without paying taxes, how to rebalance your mutual fund portfolio, balanced portfolio by age, automatic rebalancing, selling funds in 401k

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

This week I’m talking about how to rebalance your investment portfolio. I’ll be talking about why it’s so important to rebalance, the 3 steps I take whenever I rebalance a portfolio (which I have done literally thousands of times), and how to know when you should rebalance. 

Rebalancing is the process of realigning your portfolio back to its intended position. We all get a little out of what sometimes. Last year my daughter dislocated her thumb and we had to go to the doctor to have him pop her thumb back in place. After a couple weeks of wearing a cute little splint, she was as good as new. If you don’t keep close tabs on your investment portfolio, it can get out of whack too. 

The overall proportion of stocks can get bloated, especially when the stock market is up over 300% from it’s low in March 2009, just 10 years ago. If you haven’t rebalanced in the last few years or at all since March of 2009, you could have way more in stocks than you realize and be taking on way more risk than you should. 

Many people go years without rebalancing their portfolio. This is especially a problem if you have money in an old 401k or an account that you don’t watch closely, where you tend to just set up the investments once and then just glance at your statement once a year without ever bothering to review your investment strategy and rebalance. 

If this sounds familiar, this week’s tips are for you. Because that’s where rebalancing comes in. When you pay attention to your investments and realign your portfolio when it gets out of whack, it can make a meaningful difference to your long-term returns. 

A recent study by Vanguard determined that rebalancing a portfolio adds about .26% annually to the return of your portfolio compared to not rebalancing. A quarter of one percent doesn’t seem like much but when you add that up over 20, 30, or 40 years of investing, we’re easily talking a difference of 6 figures in portfolio value over time for many of you. 

So stick around this week as I cover a critical topic to successful investing, and I show you the steps I’ve taken thousands of times to rebalance a portfolio. 

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

----------

>>> Subscribe on iTunes: https://apple.co/2DI2LSP

>>> Subscribe on Amazon Alexa: https://amzn.to/2xRKrCs

>>> Check out our blog: https://truenorthretirementadvisors.com/blog/

----------

Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance, wealth management, fee only financial advisor, financial planner, financial podcast, retirement podcast, financial independence podcast, how to rebalance your portfolio, portfolio rebalancing strategies, how to rebalance portfolio, should you rebalance your portfolio, how to rebalance your portfolio without paying taxes, how to rebalance your mutual fund portfolio, balanced portfolio by age, automatic rebalancing, selling funds in 401k

It’s Sunday, which means...It’s recap time! 

The theme for this week was: behavioral finance blunders. 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 talked about how some of the biggest behavioral finance blunders can infiltrate your own decision-making and how you can avoid making mistakes that can derail your retirement. 

Here are the specific behavioral finance blunders that we covered in each episode this week: 

• Choice Overload
• Anchoring
• Confirmation Bias
• Decision Fatigue
• And...Overconfidence Bias

If you missed any of these episodes or if you want to revisit any of them, you can find them on iTunes, Spotify, or Google Play by searching for the “One Minute Retirement Tip with Ashley”. 

Tomorrow we’re starting a new topic: How to rebalance your investment portfolio. I’m going to talk you through the process on how you should rebalance your portfolio, and why now is an ideal time to look seriously at rebalancing. 

So don’t miss out on next week, where I’ll give you the tools to rebalance well, and don’t miss the opportunity to rebalance, after 10+ years of massive gains in the stock market. 

That’s it for this week! Thanks for listening and I hope you have a blessed Sunday! 

My name is Ashley Micciche and this is the “One Minute Retirement Tip”.

----------

>>> Subscribe on iTunes: https://apple.co/2DI2LSP

>>> Subscribe on Amazon Alexa: https://amzn.to/2xRKrCs

>>> Check out our blog: https://truenorthretirementadvisors.com/blog/

----------

Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance, wealth management, fee only financial advisor, financial planner, financial podcast, retirement podcast, financial independence podcast, behavioral finance, behavioral finance concepts, behavioral finance examples, behavioral finance biases, why is behavioral finance important, behavioral economics, investor psychology, behavioral biases, herd behavior, herd behavior and investment, herd behavior financial crisis, loss aversion, prospect theory, choice overload, confirmation bias, anchoring, decision fatigue, overconfidence effect

This week is devoted to better-equipping you to make careful, self-controlled, unemotional decisions as often as possible, through better understanding the behavioral finance concepts that influence your decisions. 

Today, I’m talking about overconfidence bias. Overconfidence bias is when people’s subjective confidence in their own ability is greater than their actual performance. 

If you think you’re a good driver, you’re probably just falling victim to overconfidence bias. More than ¾ of Americans say they are above average drivers, but if you think about it, that’s statistically impossible, since ¾ of drivers can’t be above average. Clearly overconfidence bias is at work here. In fact, this statistic probably seems laughable to you, considering that most of us witness poor driving on a daily basis, and 93% of drivers admitting to unsafe behavior behind the wheel. But that’s other people right? Not you or me? I’m a good driver. 

Overconfidence bias can not only be a big problem for bad drivers who don’t think they need to improve their behavior. It can also be a big problem for your investment portfolio. 

I’ve been in conversations with people before who clearly have selective memory. They tell you that they’ve made 16% per year going back to 1984, or that their real estate holdings have never lost value. They may actually believe that this is the case, but they’ve just put their mistakes and blunders out of their mind. 

Overconfidence can also be a big problem for professional investors, portfolio managers, and your financial advisor, so be careful about working with anyone with a big ego, who can’t or won’t admit that they’ve made some mistakes over the years. Even the most talented investors in the world like Warren Buffett have made some big mistakes. Part of why he and others like him are so successful is because they have the humility to see that they were wrong and they learn from their mistakes. 

Overconfidence bias can lead to excessive risk-taking with your retirement portfolio, lead to concentrated positions where one industry or one company makes up a bloated portion of your portfolio, and too much trading - all of which can lead to some big blow ups that derail your retirement. 

So be on guard for overconfidence bias both with yourself and the professional advisors you work with.

That’s it for today. Thanks for listening. Tomorrow, we’re going to recap the week and I’m going to give you a little preview of next week’s theme. 

My name is Ashley Micciche and this is the One Minute Retirement Tip.

----------

>>> Subscribe on iTunes: https://apple.co/2DI2LSP

>>> Subscribe on Amazon Alexa: https://amzn.to/2xRKrCs

>>> Check out our blog: https://truenorthretirementadvisors.com/blog/

----------

Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance, wealth management, fee only financial advisor, financial planner, financial podcast, retirement podcast, financial independence podcast, behavioral finance, behavioral finance concepts, behavioral finance examples, behavioral finance biases, why is behavioral finance important, behavioral economics, investor psychology, behavioral biases, herd behavior, herd behavior and investment, herd behavior financial crisis, loss aversion, prospect theory, choice overload, confirmation bias, anchoring, decision fatigue, overconfidence effect

Your decisions about money, investing, and retirement must be made based on logic and rational thinking. The problem is that we often make money decisions with our emotions, which can wreak havoc on your retirement and impact you for the rest of your life.

This week is devoted to better-equipping you to make careful, self-controlled, unemotional decisions as often as possible, through better understanding the behavioral finance concepts that influence your decisions. 

Today, I’m talking about decision fatigue. Decision fatigue refers to the deteriorating quality of decisions that you make when you’re in a situation where you must make a lot of different decisions. When you are burdened with too many decisions, it’s just so exhausting, that you can’t stay sharp. So you start making some pretty crappy decisions, just because you’re not as sharp and your just kind of over it. 

The key to overcoming decision fatigue is to just decide on what you can, when you can and stop putting so much pressure on yourself to figure it all out. 

When my husband and I created a will, I was pregnant with our first child. We met with an attorney for about an hour and a half, deciding on everything from when we would pull the plug if I ever became incapacitated, to who would take care of our children if we both died in a fiery roller coaster accident. 

The weight of those decisions was overwhelming, and it would have been nice to take some more time to think through it. But this attorney was expensive, so we pressed ahead, making decisions that would impact our family in big ways with the clock ticking and the attorney bill running higher. 

Sometimes the weight of making decisions on your will, your estate, your social security, medical insurance options, your retirement is overwhelming. And its tiring. So you start doing what I did and just say screw it, let’s just get this over with. That’s when you know you’ve crossed the danger zone. 

As soon as you become overwhelmed, decision fatigue has set in. If you press on, your fatigue can lead you astray into some poor decisions. 

The cure for decision fatigue is just to step away. For an hour, a day, a week, or a month. Sometimes you feel pressured to make a decision right then and there, like I did, but unless you have the presence of mind to realize that you’re not capable of making a smart decision in the moment, you may make a decision that’s fatigued. 

I think I’ll go back and review our will and make sure I still agree with those decisions we made after I was already feeling overwhelmed and fatigued....

If you haven’t already left a review in Amazon or iTunes for the One Minute Retirement Tip, can I ask a favor of you to go do that right now? It just takes a minute.  

Mary Ann recently wrote on Amazon: “I had to shut you off..not good with my coffee”. 

Ouch, Mary Ann! Whether you have a 1 star review and think I taste terrible with your coffee, like Mary Ann, or if these tips are valuable for you and you think it’s worth 5 stars, or anywhere in between, please take a minute to leave an honest review for the One Minute Retirement Tip in Amazon or iTunes. It helps to spread the word, and helps other people find this podcast. 

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

----------

>>> Subscribe on iTunes: https://apple.co/2DI2LSP

>>> Subscribe on Amazon Alexa: https://amzn.to/2xRKrCs

>>> Check out our blog: https://truenorthretirementadvisors.com/blog/

----------

Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance, wealth management, fee only financial advisor, financial planner, financial podcast, retirement podcast, financial independence podcast, behavioral finance, behavioral finance concepts, behavioral finance examples, behavioral finance biases, why is behavioral finance important, behavioral economics, investor psychology, behavioral biases, herd behavior, herd behavior and investment, herd behavior financial crisis, loss aversion, prospect theory, choice overload, confirmation bias, anchoring, decision fatigue, overconfidence effect

Your decisions about money, investing, and retirement must be made based on logic and rational thinking. The problem is that we often make money decisions with our emotions, which can wreak havoc on your retirement and impact you for the rest of your life.

This week is devoted to better-equipping you to make careful, self-controlled, unemotional decisions as often as possible, through better understanding the behavioral finance concepts that influence your decisions. 

Today, we’re taking a look at Anchoring bias. Anchoring bias occurs when you rely on the first piece of information to make subsequent decisions. And by relying too heavily on that first impression, you anchor to it, hence the name anchoring bias. 

If you have ever bought something that you probably shouldn’t have just because it was on sale, you have been guilty of anchoring bias. Black Friday deals are a perfect example of this. You probably don’t need 20 new pairs of socks, but when 20 pairs are $3, originally $15, you’re not going to NOT buy them. That’s anchoring. You’re making a decision solely on the discount you’re getting off the original price, and you’re so sucked into the screaming deal you’re getting on those socks, you don’t pause to ask yourself if you even want or need 20 additional pairs of socks. 

It’s important to be mindful of anchoring when making purchase decisions, so you don’t get so easily sucked into making a decision based on a screaming deal. Anchoring bias also rears its ugly head with your investment decisions, and I’ve seen this all too often with my own clients. And even myself. 

When I was 22 years old, I bought a Chinese index fund. I had been hearing a lot and doing quite a bit of research on China, and like many people at the time, I was convinced that China was going to topple the U.S. as the dominant global economic superpower. Their tremendous economic growth prospects were undeniable. So with a couple thousand dollars, which was lot when you’re 22 and fresh out of college, I bought this Chinese index fund. Just a few short months later, the global economy plunged into the great recession of 2008, and my beloved Chinese index fund plunged in value. 

I lost ½ of my original investment in less than a year, but because I was anchored to the original price I paid, I was determined to hold on and stick it out until I got back to even on my original investment. This didn’t happen. Another 2 years passed and I was still underwater on my original investment. Thankfully, I did sell and move on, but I ignored the fundamentals and some serious problems that still need to be sorted out with the Chinese government and their economic system. 

Investors commonly make this mistake. Stubbornly holding on to a bad investment and ignoring the compelling reasons to sell, all because they are anchored to the original price they paid or their high water mark in the stock. 

This is a mistake. Investment decisions should ALWAYS ALWAYS ALWAYS be made with the future potential in mind, not based on anything in the past. So if you are underwater in something, and you know it’s time to cut your losses, don’t let anchoring bias influence you in making a bad decision and holding on to a bad investment because you’re anchored to what you paid or what the investment was worth before things went south. 

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

----------

>>> Subscribe on iTunes: https://apple.co/2DI2LSP

>>> Subscribe on Amazon Alexa: https://amzn.to/2xRKrCs

>>> Check out our blog: https://truenorthretirementadvisors.com/blog/

----------

Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance, wealth management, fee only financial advisor, financial planner, financial podcast, retirement podcast, financial independence podcast, behavioral finance, behavioral finance concepts, behavioral finance examples, behavioral finance biases, why is behavioral finance important, behavioral economics, investor psychology, behavioral biases, herd behavior, herd behavior and investment, herd behavior financial crisis, loss aversion, prospect theory, choice overload, confirmation bias, anchoring, decision fatigue, overconfidence effect 

This week, I’m talking about how you can avoid some of the biggest behavioral finance blunders. Essentially, behavioral finance looks at how your psychology, your emotions, and your biases impact your decisions and your behavior when it comes to your money. 

Because your decisions about money, investing, and retirement can impact you for the rest of your life, being better equipped to make careful, self-controlled, unemotional decisions as often as possible is essential. 

Today’s behavioral finance blunder is confirmation bias. Confirmation bias is the tendency to search for, interpret, favor, and recall information in a way that affirms one's prior beliefs or hypotheses. We are guilty of this and it’s part of what’s ripping us apart as a country right now. If you only follow friends on facebook or news outlets who share your viewpoint, you are guilty of confirmation bias. 

When you fall victim to confirmation bias, you only see the intersection of the facts or data that already confirm your bias. It’s like making a decision with blinders on. You ignore what doesn’t already fit into your narrative, keeping you closed off to all the facts, and sometimes really important facts that should be weighed when making a decision. 

Here’s how this is relevant for your money decisions. Let’s say you love tech stocks. You love technology companies so much that they make up your entire retirement portfolio. Instead of objectively looking at that situation and realizing what’s inherently wrong with owning companies from one sector, all you seek out online are stories and articles that confirm that technology will only go up from here. Or 3 additional tech stocks you need to add to your portfolio this year. 

By not expanding your research and searching for reasons to NOT own tech stocks, all you’re doing is digging yourself deeper and deeper into the hole. 

Succumbing to confirmation bias only serves to further entrench us in our skewed and bias beliefs. And when we don’t make a decision with all relevant information, we’re doing ourselves a disservice. 

So here’s my challenge to you today. REsearch a topic from the opposite point of view from your own. Try to pick a topic where you’re already entrenched in your beliefs. Spend 15-20 minutes researching the topic from the other viewpoint and see if you can at least see the other point of view. Practicing open-mindedness is uncomfortable, but building this skill is incredibly valuable in all aspects of life. 

Expanding your worldview and being open-minded to possibilities and opposing viewpoints can pay big dividends in your relationships and in the case of your money and investment portfolio, help you make better and smarter decisions. 

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

---------

>>> Subscribe on iTunes: https://apple.co/2DI2LSP

>>> Subscribe on Amazon Alexa: https://amzn.to/2xRKrCs

>>> Check out our blog: https://truenorthretirementadvisors.com/blog/

----------

Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance, wealth management, fee only financial advisor, financial planner, financial podcast, retirement podcast, financial independence podcast, behavioral finance, behavioral finance concepts, behavioral finance examples, behavioral finance biases, why is behavioral finance important, behavioral economics, investor psychology, behavioral biases, herd behavior, herd behavior and investment, herd behavior financial crisis, loss aversion, prospect theory, choice overload, confirmation bias, anchoring, decision fatigue, overconfidence effect

This week, I’m talking about behavioral finance blunders. Essentially, behavioral finance looks at how your psychology, your emotions, and your biases impact your decisions and your behavior when it comes to your money. Because our decisions about money, investing, and retirement can impact us for the rest of our lives, we must be especially on guard to make careful, self-controlled, unemotional decisions as often as possible. That means having a working knowledge of behavioral finance and the forces working in the background on our decisions. 

So this week, I’m focusing on some of the biggest blunders of all so you can be on guard! 

Today, I’m talking about choice overload. You experience this first hand whenever you walk down the wine aisle at the grocery store, and you don’t already know what you’re looking for. Why are there 42 different pinot noir choices, all with different attributes, price points, pretty labels, and AVA regions? It’s downright overwhelming. 

The same is true for investing. There are endless ways to invest your money, and I commonly see the choice overload problem rear its ugly head in 401k plans. I’ve seen some plan lineups that have 85 different funds. When you have a lot of different choices, what ends up happening is you feel overwhelmed and you end up making no decision at all. 

There is well-documented research to back up the choice overload problem, especially when it occurs with your 401k plan at work. Plans with more options actually have lower participation among employees, and those who do participate in the plan, end up saving at lower rates compared to plans that have a more manageable 10-15 investment choices.

So the next time you’re overwhelmed with the amount of choices thrown at you, understand that the temptation is to make no choice at all and do nothing. Understanding that a “do nothing” choice is the temptation will hopefully help you press on in making a better decision. 

But if doing nothing means you’re not going to participate in your 401k plan or save less, you’re obviously making a big mistake with your retirement. So when you are faced with a choice, seek out help from someone who can help you. In the case of your 401k plan, chances are you have access to an advisor who can help you, or some type of easy auto-pilot option like a target date fund to pick from instead. 

Just don’t let choice overload frustrate you into making a decision to do nothing. 

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

----------

>>> Subscribe on iTunes: https://apple.co/2DI2LSP

>>> Subscribe on Amazon Alexa: https://amzn.to/2xRKrCs

>>> Check out our blog: https://truenorthretirementadvisors.com/blog/

----------

Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance, wealth management, fee only financial advisor, financial planner, financial podcast, retirement podcast, financial independence podcast, behavioral finance, behavioral finance concepts, behavioral finance examples, behavioral finance biases, why is behavioral finance important, behavioral economics, investor psychology, behavioral biases, herd behavior, herd behavior and investment, herd behavior financial crisis, loss aversion, prospect theory, choice overload, confirmation bias, anchoring, decision fatigue, overconfidence effect

Welcome to a new week and a new theme here on the One Minute Retirement Tip! Last week, I talked about behavioral finance 101. This week, I’m continuing with the behavioral finance theme to go deeper on some of the biggest behavioral finance blunders.

Last week was a good overview, but we really gotta dive deeper into this essential topic, so that’s what I’m doing this week.  

Let’s start with defining behavioral finance. 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 happening in the background each time you make a decision will help you take a pause, and hopefully make better financial decisions as a result. 

So stick around with me this week as I talk about the inner workings of that mind of yours and how sometimes it can lead you astray. I’ll provide real world examples of how behavioral finance concepts like anchoring and choice overload can lead you down the wrong path if you aren’t careful. 

That’s it for today, but before you go, would I be correct in saying that your retirement is perhaps the most important financial decision you’ll ever make? You want to get it right. Well, so do I. For the last 12 years, I’ve been helping clients just like you make the transition into retirement. If you want to talk one-on-one with me about whether or not you can retire, head on over to truenorthra.com, where you can book a 15 minute call with me, at a time that’s convenient for you. The call is confidential, free, and I promise to help guide you on whatever is weighing most on your mind right now regarding your retirement. So head on over to truenorthra.com and book a call today. 

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

----------

>>> Subscribe on iTunes: https://apple.co/2DI2LSP

>>> Subscribe on Amazon Alexa: https://amzn.to/2xRKrCs

>>> Check out our blog: https://truenorthretirementadvisors.com/blog/

----------

Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance, wealth management, fee only financial advisor, financial planner, financial podcast, retirement podcast, financial independence podcast, behavioral finance, behavioral finance concepts, behavioral finance examples, behavioral finance biases, why is behavioral finance important, behavioral economics, investor psychology, behavioral biases, herd behavior, herd behavior and investment, herd behavior financial crisis, loss aversion, prospect theory, choice overload, confirmation bias, anchoring, decision fatigue, overconfidence effect

It’s Sunday, which means...It’s recap time! 

The theme for this week was: 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 talked about 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. 

Here’s what we covered in each episode this week: 

• How behavioral finance influences your decision-making and can easily lead you astray
• Why people are such bad investors...and how you can avoid the biggest blunder of all
• And a couple of important behavioral finance concepts, namely loss aversion & herd behavior 
• How awareness can help improve your money decision-making skills

If you missed any of these episodes or if you want to revisit any of them, you can find them on iTunes, Spotify, or Google Play by searching for the “One Minute Retirement Tip with Ashley”. 

Tomorrow we’re actually continuing on this behavioral finance theme, and I’m going to going into more detail on several other behavioral finance topics. You can actually get a college degree in this topic, so it’s a pretty deep topic that we could spend many many weeks covering. But I want to give you a deeper understanding of this important topic to help you improve your decision-making skills when it comes to your money, your investments, and your retirement. 

Come on back next week, where we’ll continue our studies of behavioral finance and its impact on you. 

That’s it for this week! Thanks for listening and I hope you have a blessed Sunday! 

My name is Ashley Micciche and this is the “One Minute Retirement Tip”.

----------

>>> Subscribe on iTunes: https://apple.co/2DI2LSP

>>> Subscribe on Amazon Alexa: https://amzn.to/2xRKrCs

>>> Check out our blog: https://truenorthretirementadvisors.com/blog/

----------

Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance, wealth management, fee only financial advisor, financial planner, financial podcast, retirement podcast, financial independence podcast, behavioral finance, behavioral finance concepts, behavioral finance examples, behavioral finance biases, why is behavioral finance important, behavioral economics, investor psychology, behavioral biases, herd behavior, herd behavior and investment, herd behavior financial crisis, loss aversion, prospect theory