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Making Best Use of Your Behavioral Biases for Retirement Saving
With some 95% of its activity occurring subconsciously, your brain can be quite tricky. With every spontaneous signal, our cerebral synapses expose us to countless behavioral biases, duping us into making misguided money moves long before our rational resolve kicks in. Since many of our most powerful biases are based on reflexive rather than reflective thinking, it’s not enough just to be aware of them. We must also learn how to defend against them. Or better yet, turn them to our advantage. How do you do that? By tricking your brain right back. Auto-Save Yourself In their aptly entitled book,
3 Ways to Apply the 80/20 Rule to Your Financial Pursuits
Ever heard of the 80/20 rule? It suggests 80% of an outcome is often the result of just 20% of the effort you put into it. This doesn’t always work. Sometimes, it’s worth going the extra mile. But often, by prioritizing the 20% of your efforts that makes the biggest splash, you can reduce excess commotion. In that spirit, here are 4 financial best practices that pack a lot of value per “pound.” 1. Investing: Be There, and Stay ThereYou could do far worse than to invest according to a sentiment attributed to Woody Allen: “80% of success is showing
Ask these 3 questions when shopping for an investment
Investors who pay attention only to an investment’s return are missing out on valuable information. Determining how it achieved its returns can be just as important as analyzing the returns themselves. Evaluating an investment candidate properly not only helps you compare it to its peers; it lets you see whether it matches your investing needs and how it would complement your other investments. If you’re in the market for a fund or other investment vehicle, ask yourself these three questions before you decide: What is the investment objective? For some investors, analyzing a potential investment basically consists of looking at
College protestors are right. We should know what we own.
As they were grieving the loss of life in the bombardment of the Gaza Strip, college students across the US learned that they had been indirectly tied to the weapons industry through their university endowments. Many began protests and set up encampments on school grounds earlier this year to call for a reexamination of university investment policies, including disclosure and divestment. It’s estimated that US universities have holdings worth $850 billion combined, some of which is certainly invested in weapon makers like Boeing, Lockheed Martin, and Northrup Grumman. University endowment money is usually managed by third-party external managers and placed in