Archive for November, 2009
Monday, November 30th, 2009 by Cass Chappell, CFP®
In my experience, Mental Accounting is by far the most common bias exhibited by investors. It can also do the most harm to an otherwise well conceived financial plan.
Basically, it works ...
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Tags: mental accounting
Posted in Behavioral Finance, Investments | No Comments »
Monday, November 23rd, 2009 by Cass Chappell, CFP®
There is a popular indicator of investor sentiment that follows the net inflows and outflows into certain investments. In a nutshell, it goes like this:
o When investor inflows are at their ...
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Tags: Anchoring, Bandwagon Effect, Cognitive Dissonance, Endowment Effect, House Money Effect, Investor Bias, Misdirected Worry, Overconfidence, Representativeness, Snake-bite Effect
Posted in Behavioral Finance, Investments | No Comments »
Monday, November 16th, 2009 by Charles Mayfield, CFP®
If you should happen to catch a glimpse of Santa this holiday season...take a look at that big belt he is wearing. Chances are he has cinched that thing in a ...
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Tags: belt-tightening, budgeting, Christmas gifts, Christmas shopping, gifting, giving, goal-setting, Holiday season, presents, Santa, shopping, spending
Posted in Financial Planning | No Comments »
Monday, November 9th, 2009 by Cass Chappell, CFP®
The last two years have exposed a lifetime of emotions for most investors. Plummeting markets brought fear. Those who held the course were rewarded with a strong, rapid recovery bringing a ...
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Tags: Behavioral Finance, kahneman, prospect theory, prospective gains, prospective losses, tversky
Posted in Behavioral Finance, Investments | No Comments »
Monday, November 2nd, 2009 by Cass Chappell, CFP®
A comparison of popular gifting strategies
Summary:
· If the gift is meant to be used in 18 years (in the case of a college education) or more, I tend to favor strategies ...
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Tags: 529 Plans, 529 Savings Plans, College Planning, College Savings, College Savings Plans, financial aid, generation-skipping gifts, gifting, gifting to minors, investing for college, Life Insurance, multi-generational wealth, newborn baby, Saving for College, UGMA accounts, UTMA, wealth building
Posted in Financial Planning, Investments | No Comments »