Behavioral Finance
What makes up your mind?
You think before you act. But unconscious biases could be clouding your judgment.
Watch the videoReady to find out
what makes up your mind?
Choose between two responses to these everyday life scenarios.
Don’t overthink it – just select the option that feels most like you.
Every decision you make – from where to get coffee in the morning to how you approach your portfolio – is influenced by the things you know, the lessons you’ve learned, the factors you can observe and a range of biases you might not even be aware of. A cognitive bias is an unconscious deviation in the way humans process and interpret information. Here we cover four of the most potent and how you can overcome them.
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Familiarity
From your takeout order to the contents of your investment portfolio, explore how relying on familiarity can hold you back.
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Loss aversion
From clinging to rarely used items to fearing defeat, loss aversion can keep you from realizing your goals.
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Overconfidence
From overestimating your odds to underestimating outside influences, see how overconfidence can undermine you.
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Mental accounting
From treating unexpected money differently to pursuing conflicting goals, mental accounts can obscure the bigger picture of your wealth.
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The right advice
starts with a trusted relationship
We believe financial advice is about more than just having a plan. It’s about having the right plan for you. And that only happens with a true understanding of your whole life, beyond just your finances. Because as your needs become more complex, sophisticated advice and a relationship built for the long term become even more important.
Is your mind made up?
Talking with a financial advisor can help you explore – and manage – the impact of behavioral biases on your biggest goals.
Find an advisor