FLBC 015: Making Better Financial Decisions-Part 2

Podcast Details:

Podcast Title:  Making Better Financial Decisions-Part 2
Podcast Series: Financial Literacy Boot Camp

Full Illustrations available on YouTube Version here.

Questions/Issues We’ll Address on this Episode:

– Introduction to the Idea of what biases are and why our brains get in the way of good financial decision making.

– Cognitive Bias (Head) – mental misfire
– Emotional Bias (Heart) – avoid pain, produce pleasure “fight or flight”

Loss Aversion Bias – you want to avoid the loss

Examples: Not selling a losing stock in your portfolio because you’re emotionally tied to it…it represents something.

Confirmation Bias – This is the view that people generally look to confirm what they already believe about something ignoring evidence to the contrary.

Examples: holding too much employer stock in your retirement plan

Helpful Links:

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Where to Find Us:

Website
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Twitter #FinancialLiteracyBootCamp

Bio:

Dominique is owner of DJH Capital Management, LLC. a full service, comprehensive financial planning firm helping individuals build roadmaps to reach their financial dreams.

© 2016 DJH Capital Management, LLC.

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The Maven of Financial Literacy
 

Dominique is owner of DJH Capital Management, LLC. a full service, comprehensive financial planning firm helping individuals build roadmaps to reach their financial dreams.