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- Cognitive (how we think)
- Emotional (how we feel)
- Social (how we’re influenced)
The ‘Big Three’
Image: ‘The Simpsons’ Image: ‘The Far Side”
Source: geekwrapped.com
Investing is not really the study of finance. Its the study of how - - PowerPoint PPT Presentation
Investing is not really the study of finance. Its the study of how - - PowerPoint PPT Presentation
10/16/2019 Investing is not really the study of finance. Its the study of how people behave with money . ~Morgan Housel 1 2 Behavioral *what-a-nomics*? 3 4 1 10/16/2019 The Big Three - Cognitive ( how we think ) -Emotional
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Source: Ben Carlson, AWOCS
Returns won’t always be smooth …
Source: Michael Batnick, The Irrelevant Investor
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Source: Morgan Housel
Mind the Gap
Source: Ben Carlson ‘A Wealth of Common Sense’
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Source: Morningstar & Fidelity Investments
What we will do
Get to know you – your goals, desires and passions Set proper expectations about how we will work together; markets; and various scenarios for your wealth Determine an appropriate asset allocation and financial plan for you Build portfolios in service to that plan Ensure goals are on track with periodic reviews
What we won’t do
Do all the talking
Try to avoid every drawdown
Try to time the bottom
Put you in a black box or “rule of thumb” asset allocation model
Overcomplicate it for the sake of appearances
Set it and forget it
Have a dialogue about what you will / won’t do
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Compliance Disclosure
Investing in securities is subject to a number of risks and is not suitable for all investors. Investors should carefully consider their investment objectives, risk tolerance, financial situation, and other information before investing. Additionally, the financial planning process is a great tool for providing clarity regarding your financial life, however this process cannot provide certainty.