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Tag Archives | Behavioral Finance

Perception, Reality, and the Psychology of Risk

My kid’s favorite TV show is Mythbusters. The host, Adam Savage, is known for saying, “I reject your reality and substitute my own.” He often says this in jest, but he is actually describing the human condition, especially when it comes to money. When it comes to investments, your perception is your reality, regardless of […]

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Scaring Your Brain Into Saving for Retirement

Do you need motivation to help you save for retirement? Here’s a suggestion: try living for a month on nothing but your projected Social Security check. The reason this might work lies within the human brain. There’s a big difference between what we know and what we do. Most of us intellectually “understand” that someday […]

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Knowing Financial Wellness When You See It

What does financial wellness look like? A lot is written on the symptoms and consequences of poor financial health. These days we are surrounded by news stories of financial disease in individuals, corporations, and nations. Financial instability seems to be the new normal. A recent survey done by Jean Chatzky found that 15% of US […]

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This Is Your Brain In a Stock Market Crash

Bryan flipped on MSNBC to catch the stock market’s closing numbers. It was March 9, 2009. A visibly shaken reporter was telling viewers the Dow Jones had fallen to 6547, its lowest closing in over thirteen years. Retirement accounts had lost trillions of dollars, and many experts expected the market to continue to fall. Bryan’s […]

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Top Ten Beliefs Behind Poor Money Choices

Each of us has a set of unconscious beliefs about money, or “money scripts.” These beliefs, commonly formed in childhood, shape our financial choices in adulthood. Money scripts are partial truths, but one of the reasons they cause problems in our lives is that we unwittingly act on them as if they are completely true. […]

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