Behavioral Finance

In our last blog, we discussed several questions to answer when contemplating your relationship with money. This exercise is meant to stimulate a self-analysis of the role of money in your life.

Your relationship with money is a lifelong, ever-changing process. Reflecting on this relationship from time to time is encouraged as you may discover something you did not know about yourself. Below are several questions to ponder and observe how your relationship with money has changed over time.

Do you think a porcupine has more or less than 1000 quills (i.e. the spikes on its back)?

Since reading that sentence, it’s likely you experienced a harmless example of Anchoring Bias.

This post was written by Ken Weingarten and Frank Fernandez of Weingarten Associates

Let’s assume for a moment that your current investment portfolio was all in cash and you had to start from scratch. How would you invest it? What would be your asset allocation (stocks vs. bonds)? Where would you begin to look for help? If you did a simple web search for “How to invest in the stock market” you would be thrown down a rabbit hole of information and an overwhelming amount of choices.