Financial Tip of the Month
Topic: Your Investment Personality
Money makes people act quirky, eh?! The field of Behavioral Finance continues to gain recognition because economists are realizing that people make irrational decisions when it comes to money. As Richard Thaler, a recent Nobel Prize winning economist, says, "it's not that people are dumb, its because the world is hard."
An action where people consistently hurt their financial futures is to sell their investments (in IRAs, 401(k)s, and in other accounts with exposure to the stock markets) when the big swings happen in the global markets.
For example, the people who sold their positions when things got scary in 2008 missed the rebound in 2009. The Total Stock Market Index Vanguard ETF (VTI) lost 38.35% in 2008, Yet, in 2009, the same position gained 25.99%. Many people sat on the sidelines in cash rather than being invested in a good year for the stock market.
Understanding your Investment style and also your investment composure are necessary foundations to building an appropriate money strategy. I recently partnered with DataPoints so we can help clients understand their own behaviors when it comes to money and how to improve the habits which can build wealth.
We are in the process of implementing this new software with our clients but here's an opportunity for you to see your own Investment Personality!
Complete this short survey where you'll learn about your own behaviors when it comes to money:
How Do You React When Markets Move?
If you want personalized guidance and encouragement from someone trained in comprehensive money planning, please visit our Well-Rounded Success Services website to see how you can work with a CERTIFIED FINANCIAL PLANNER™ professional.
Financial Quote of the Month
"Money is the opposite of the weather. Nobody talks about it, but everybody does something about it."
Well-Rounded Success Around The Web
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Want some quirky inspiration and financial tips mixed with dog pictures? Follow our Instagram page where we share posts of our happenings plus our mailed postcards where you can find my dog in the majority of our posts!
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