September 4, 2016

The Nine Types of Investment Risk

In this article we are going to discuss about “The Nine Types of Investment Risk”. I remember when I first heard the word ‘investment’.  It was like hearing a new language.  People talking about portfolio’s, diversification, and volatility just did not fit into my understanding. Then I heard the word ‘Risk’.  As a teen, my mind went to the board game and the fun the game provided.  Unfortunately, many people today don’t understand this word.  Perhaps like me, the word ‘risk’ means something totally different than an investor would intend. If you are thinking about starting an investment account, it is very important that you have a critical understanding of the various risks involve so you will able to manage your emotions effectively. The an old adage says; the higher the risk, the higher the return. While this may not always be the exact case, as a general rule, the more risk you take the better the expected return. Risk can, therefore, be defined as the possibility of injury or loss specifically when you make investments. It can also be referred to as the possibility of loss. In this post, we are going to look at 9 types of investment risk. The […]
September 3, 2016
Emotions of Retirement

The Emotions of Retirement

The change to retirement is not at all times easy, particularly the emotional adjustments of it. The emotional stability for individual approaching retirement is always a mixture of excitement with underlying nervousness. You might feel thrilled, nervous and even scared thinking about your retirement. The Emotions of Retirement Retirement should and can be a thrilling time. For possibly the first time in many years of working, you have the rest and lack of restrictions to pursue travel or other interests liberally, to slow down and to enjoy every moment with your family and friends. On the other hand, for some men, retirement can be challenging. It is not only to adjust to the loss of a steady work custom and its related sense of purpose that can be tough. Retirement brings fresh relationship concerns, and for some who do not find new significant activities to substitute work, there is the threat of boredom and a sense of insignificance that can lead to hopelessness and other health issues. Here are some emotions retiree may experience when entering into their retired life Excitement To start doing everything you want to do will definitely be fun. For some people starting their retirement journey is […]
July 20, 2016

Do You Understand Your Emotions About Money?

If you’ve ever felt a rush of excitement at making a big purchase or experienced feelings of shame at making a financial mistake, you know that our relationship with money isn’t completely rational. For most people, money comes with a lot of emotional and psychological baggage that affects the decisions we make. Psychologists call these emotions “money scripts” and have found that these unconscious beliefs can drive many positive and negative financial behaviors. Many of our money scripts come from our families and the way our parents handled and discussed their finances. It’s one of the reasons why we encourage our clients to talk to their kids about money and teach them good financial skills early in life. As adults, it’s also our responsibility to explore and understand our own feelings about money and how they drive our behavior. As financial professionals, we know that money is a very emotional subject. We have seen many instances where emotions drive negative actions. Emotional investing decisions can wreak havoc on long-term performance by leading to overconfidence when markets rally and panic when markets decline. Anxiety about the unknown can leave people feeling paralyzed with worry and unable to make financial decisions or […]