Asset allocation, at its most basic level, is deciding how to spread (allocate) the risk across your investment portfolio: stocks vs. less-risky instruments such as bonds and certificates of deposit (CDs). These decisions will be the primary determinant of your investment performance; i.e., your portfolio’s rate of return. Beyond this seemingly simple decision, you must consider how much to invest in domestic stocks, international…
Understanding Our Regrets Today Can Improve Our Financial Tomorrow Feelings of regret, especially about financial decisions or inaction, are universal, but it’s possible to turn them into life’s best positives. BY H. DENNIS BEAVER, ESQ. PUBLISHED 7 HOURS AGO “‘Jerry,’ my 65-year-old father, is beating himself up over failing to get out of the stock market months ago when it was so…
LOSS AVERSION: A BEHAVIORAL RISK FOR BOTH FINANCIAL ADVISORS AND THEIR CLIENTS David Dubofsky, PhD, CFA Lyle Sussman, PhD You win some and you lose some. For a moment think about how often you’ve heard or used that phrase. Maybe you said it to someone who was just denied a promotion. Or possibly someone said it to you after you lost…
Financial advisors know that their clients often make investment decisions that may not be purely rational. But because both are human, those advisors are subject to the same cognitive and psychological biases, and irrational decisions as their clients. However, because of their professional training and status, advisors may believe they are immune from irrational biases. This FPA Knowledge Circle Presentation…
Applied Behavioral Economics Knowledge Circle: Tuesday, May 24th at 12 pm ET Speakers: Dr. Lyle Sussman Dr. David Dubofsky
Lyle Sussman, PhD David Dubofsky, PhD, CFA THE BEST WAY TO PREDICT THE FUTURE IS TO CREATE IT Peter Drucker INTRODUCTION The way you treat clients today will determine your success tomorrow. You could be facing a future where one or more clients fire you or a future where clients happily refer you, even without asking. This quiz…
David Dubofsky PhD, CFA Lyle Sussman PhD How important is it for financial advisors to understand the economic and societal impact of the Great Resignation? The significance of this tumultuous labor force disruption is validated by its 2021 entry in Wikipedia, and the ten million Google hits for that phrase. Over 40 million Americans quit their jobs in 2021. Some…
Many Americans lack financial literacy. Moreover, regardless of their financial wealth, many Americans are also not as happy as they could be … lacking what one of our reviewers defined as “life literacy.” We wrote Your Total Wealth: The Heart and Soul of Financial Literacy because of these two reasons. To address the lack of financial literacy, we define what…
Financial planners working with clients as they confront crises like the recent supply chain disruptions need to have a holistic view of planning, increase their own emotional intelligence and improve their communications skills. November 30, 2021 By David Dubofsky and Lyle Sussman Click Here to see article published in InvestmentNews, November 30, 2021 The recent supply chain disruption and…