Behavioral Finance

Retirement Is a Glide Path, Not a Cliff | Morningstar

Behavioral Finance, Financial Planning, Retirement

Why Financial Independence Is a Tonic Against Career Burnout

Christine Benz: I wanted to talk about the news that you were financially independent. It sounds like it was anticlimactic, but you also said that it was a great tonic against career burnout because you are continuing to work. It sounds like you really like your work as a physician, but can you talk about that, how crossing that threshold and hearing that you were financially independent was kind of

Source: Retirement Is a Glide Path, Not a Cliff | Morningstar

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Most Overlooked Part Of Retirement Has Nothing To Do With Money

Behavioral Finance, Financial Planning, Health & Fitness, Retirement

Most people prepare financially for retirement, but far fewer prepare for the life transition itself. You may have circled a date on the calendar, built up your savings, or met regularly with a financial advisor, but retirement is not just a financial event. It is a major life change that alters identity, structure, purpose, and daily rhythm. And like any meaningful transition, it requires preparation.

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Why “Buying the Dip” Can Hurt Returns Over Time | Zacks Investment Management Blog

Behavioral Finance, Markets

“Buying the Dip” is a Flawed Long-Term Investment Strategy.

Stocks have been on a roll over the past few years. But strong performance also has many investors concerned, especially those with extra cash on the sidelines. With elevated valuations and noisy headlines, I often hear investors say: “At these levels, I’d rather wait for a pullback before investing.”

In stock market parlance, this approach is commonly referred to as “buying the dip.” But recent quantitative research shows that such a strategy is flawed, and it can actually hurt investor returns over time.

To be fair, I understand the appeal of a ‘buying the dip’ approach. By waiting for markets to pull back…

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a neon sign for a motel lit up at night

Financial Advisor IQ – Ex-Wirehouse FA Accused of Forcing Client to Trade Sex for Account Access

Behavioral Finance, Lifestyle

A former wirehouse advisor has been accused of abusing his role as a fiduciary to further a sexual relationship with a client and compel her to recruit other clients on his behalf.A statement of claim filed Thursday in the Financial Industry Regulatory Authority’s dispute-resolution system accuses San Francisco–based advisor Sam Su of assault, sexual battery and sexual harassment during a long-running extramarital affair with a client.

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Are You a Retirement Millionaire Who Is Too Scared to Spend? | Kiplinger

Behavioral Finance, Lifestyle, Retirement

Bill Van Sant has seen it many times among those he has helped with retirement planning. As a managing director at Girard, a Univest Wealth Division, Van Sant has worked with several retirees sitting on piles of cash in retirement but are scared to spend.

There’s the one client who continued to pour money into an old car even though he could afford a newer one that was more reliable. Or the multiple clients who planned to travel in retirement but kept putting it off out of fear they would outlive their savings only to suffer an illness or medical condition that prevented them from realizing their dream.

Even Van Sant’s own father keeps delaying the purchase of a newer boat that has a bathroom even though he has the resources to upgrade.

Read the entire article: Are You a Retirement Millionaire Who Is Too Scared to Spend? | Kiplinger

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Now and Future – Behavior Gap

Behavioral Finance, Markets

Investing in the stock market is not a physical science like weather forecasting. Although the market is difficult to predict, there are proven strategies that can help you invest wisely. Learn why guessing is not a good way to make investment decisions in this article by Carl, and stop pretending to know something you don’t.

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Market forecasting isn’t like the weather… – Behavior Gap

Behavioral Finance

The facts have remained the same. Over time (think 10, 15, or 20 years), stocks typically do better than bonds, and bonds typically do better than cash. Low expenses are typically a good sign of future relative performance. We also know that a diversified portfolio will help protect you from the variability of the stock market.

Read the entire article: Market forecasting isn’t like the weather… – Behavior Gap

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The Algebra of Wealth | No Mercy / No Malice

Behavioral Finance, Financial Planning, Markets

The news of the (second) impeachment seems strangely pedestrian after the blowtorch intensity of Reddit vs. The Hedge Funds.

The good news is that the hedge funds didn’t conspire with market makers and trading apps to suppress a (warranted) generational revolution.

The inevitable Netflix/Hulu/Starz versions will not be so romantic; Reddit mainly inspired a transfer of wealth from one hedge fund to others. It was a pump and dump masquerading as a movement … with many retail investors left holding the bag.

Read the entire article: The Algebra of Wealth | No Mercy / No Malice

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The Dead Bodies I Left – Contrarian Thinking

Behavioral Finance, Lifestyle

Humans. I’m tired of it. I’m tired of emails that say “I hope you’re doing well in these trying times,” (although I may, cough, be guilty of sending 1 or 70 of ‘em). I’m tired of conversations (mine included) that default to politics, protests, posturing.

Conversations where we are all-knowing and the other is an imbecile. Yes, I am very worried about our government, Big Tech, overreach, social unrest, and tactical things like inflation, stock market plunges, and economic downturn.

But here’s the truth…we all need to gander a second or two longer in the mirror and do a little less pointing with those trigger-happy index fingers. I’ve never met a perfect human. I’m not, and I’d wager a bet you also aren’t.

Read the entire article: The Dead Bodies I Left – Contrarian Thinking

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Massachusetts Regulators File Complaint Against Robinhood – WSJ

Behavioral Finance, Markets

Massachusetts securities regulators filed a complaint Wednesday against the wildly popular trading platform operated by Robinhood Financial LLC, alleging the company aggressively marketed to inexperienced investors and failed to implement controls to protect them.

Read the entire article: Massachusetts Regulators File Complaint Against Robinhood – WSJ

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5 Rules on How to Win Any Argument

Behavioral Finance, Industry

Let me start out by saying, Lord above I hope I am wrong. I hope everything I lay out here is ridiculous, never comes to fruition and that all the happenings in the world today lead only to progress in freedom, in opportunity for all and in a better country for our next generations. I will wildly dance upon the grave of my wrongness alongside my critics if that happy scenario plays out. The horrifying problem is, I don’t believe I am. But my hope is that his blog gives you a way to fight back, to better articulate your views, to win debates with rationality.

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Americans Focused on Short-Term Risks When It Comes to Retirement Planning

Behavioral Finance, Financial Planning, Retirement

SAN MATEO, Calif., June 05, 2017 (GLOBE NEWSWIRE) — Americans are almost equally as concerned about short-term market volatility (47 percent) as they are about not achieving their long-term retirement investment goals (53 percent)

Read the entire article: Americans Focused on Short-Term Risks When It Comes to Retirement Planning, Franklin Templeton Investments Survey Finds – NASDAQ.com

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5 worst investment calls of this century

Behavioral Finance, Markets

There’s a reason that I think it’s foolhardy to put too much stock in the predictions of our so-called “experts” in times of duress. Their track record is often (ahem) less than stellar. -Jeff

A lot of people have given some bad advice over the years. Here are the five worst investment calls of the century, according to Howard Gold.

 

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