We often talk a lot about proper income planning, and managing tolerance, or even how to choose the right advisor. One area of finance that is sometimes neglected is the idea of how an investor’s individual behaviors and emotions can severely influence their chances at success – specifically in retirement.
Pre-retirees and retirees have been saving money their entire lives with hopes that one day that will have saved enough to retire comfortably and enjoy their golden years. It doesn’t take much to let the emotional ties you have to your own money get in the way of making smart, sound financial decisions. Here are a few questions to think about:
- Why do you feel so tied to your money?
- Do losses hurt your accounts more than gains help?
- Do losses on a day-to-day or month-to-month basis make you feel worried or uneasy?
Tune in to Income For Life Radio next week as we discuss How Your Emotions Can Influence Smart Investing.
Matt Nelson, president and host of Income For Life Radio
Income For Life LLC
877-284-8929 toll free | www.IncomeForLife.org