By David Dubofsky and Lyle Sussman Oct. 20, 2022 2:46 pm ET As we approach the midterms, some clients may want to revisit their portfolios based on their fears or hopes about which party will control Congress. Why? Investors’ economic views have always been influenced by politics. Americans often vote their pocketbook believing that their party’s victory will lead to…
AUM Special Guest Interview – Dr. David Dubofsky – Research Based Marketing Event by Kalli Fedusenko, Financial Advisor Marketing Click here for LinkedIn Interview with Kalli Fedusenko: YouTube Interview with Kalli Fedusenko
“Achieving Your Total Wealth is a journey that begins with WHY, not WHAT and HOW” I love great writing and especially appreciate it when authors write in a style that might break a few rules to deliver complex information clearly. Dr. Sussman and Dr. Dubofsky have done that masterfully. This isn’t the usual finance book, likely because it’s written by…
By Lyle Sussman, David Dubofsky November 30, 2023, 6:00 a.m. EST 3 Min Read Loss aversion, one of the major behavioral finance biases, is often defined as the pain of losing an amount of money exceeding the pleasure of gaining that same amount of money. It also refers to the reluctance of investors, and individuals in general, to realize losses,…
Anyone who made a final mortgage payment for their house now owns an asset that is probably worth more than it was when the first mortgage check was written. But that homeowner owns much more than a physical asset. They not only built equity they also built self-esteem. Our latest #yourtotalwealth BLOG discusses the psychology of paying off a mortgage,…
We recently posted a short primer on HEDGING and the possible financial implications created by trying to mitigate risks. We now add to our BLOG on HEDGING with a different perspective focused not on finances per se, but on the perceptions and emotions while confronting the uncertainty. Is the situation a problem or merely an inconvenience? Carefully consider your unique…
Financial advisors may have clients who have “done their homework” and are considering HEDGING their risks. When that happens both the client and advisor should discuss the potential risk inherent in any hedging strategy; hedging is a double edged sword. Our latest contribution to the #Yourtotalwealth BLOG provides a primer for this discussion on hedging. Enjoy, learn and share.
DECISION MAKING BIASES IN PERSONAL FINANCE OBJECTIVES • Reality check. Financial professionals and their clients are both constrained by their decision-making biases. • 3 Behavioral Finance biases affecting counselors and their clients: Confirmation Bias, Overconfidence, and Loss Aversion. • Strategies for mitigating the effects of these specific biases, and cognitive biases in general. Q and A. References for further…
The following example illustrates the long-term benefits of tax deferred investing: Assume that you invest $4000/year in a typical taxable mutual fund or ETF that generates an 8% annual rate of return in taxable income. You will get $320/year before tax. If you are in the 25% tax bracket, you will get to keep $240/year after taxes. If you reinvest…
You don’t like your job or the company, but you need the money. Should you go or should you stay? This question is the essence of the “Golden Handcuffs” metaphor and describes many in these chaotic times. The metaphor has special significance if the decision is contingent on vested benefits, and a vesting period. It’s also a significant issue for…