At the foundation of any planning conversation is saving and saving automation can help make that easier and promote good money habits. Those that start saving early and do it throughout their entire working days are setting themselves up for
Hindsight bias is reading beneficial past events obviously predictable, and bad events as not predictable and without cause (called black swans). In the decade between 1999 and 2009, we have many explanations for poor investment performance. Brokers and talking heads
The bandwagon effect, or groupthink, describes gaining comfort in something because many other people do the same. After all, “there is safety in numbers” correct? This is a falsehood. But let’s separate bandwagon-ing, from conventional wisdom. There is value that
Information bias is the tendency to evaluate useless or the wrong information when determining value. It’s the belief that certain commonly held data points are helpful in understanding the value of an investment, when they may not be. The key
Confirmation bias is the natural human tendency to seek specific supportive sources, or overemphasize information confirming our decisions. People will often come to a conclusion, then seek information confirming the decision. Think about buying a car, once you bought the
This is the belief that you own a “winner” and you will keep that winner for reasons that aren’t justified by the return. Owning companies is fun, and investors like to celebrate their victory over the market by stashing great
Loss aversion is the tendency for people to strongly prefer avoiding losses at the detriment to obtaining gains. This puts an unnecessary fear on an investment not supported by the risk prima. This might be one of the most common
Everyone has heard a mantra about first impressions and their lasting impact. That works for investors too. Because our brains thrive on recognizing patterns and the relationship one element has with another. This mental phenomena is called anchoring. This want
A fiduciary is a person or organization that acts on behalf of another person or persons. They at all times must put their clients’ interest ahead of their own. Being a fiduciary thus requires being bound both legally and ethically
Inflation is a measurement of the rise in the cost of goods and services. Thus the inflation rate is the decline of the purchasing power of your money over time. So over time your money simply can buy less. Several
Cash flow is for us the best leading indicator of the success of a business or a personal balance sheet. Cash flow math is simple, revenue (income) minus outflow (expense) equals cash flow. This amount in surplus to outflow allows
Asset An asset represents a positive economic value owned in whole or in part by a company or individual. It represents ownership over the positive benefits and values that the entity inherently has, could have or creates continuously. Generally speaking
