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Discover how investor psychology and behavioral finance affect your portfolio and your bottom line.
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When portfolio managers are buying, they think like business owners. But when they sell, they too often devolve into stock jockeys.
See More On: Stocks & Bonds | Investor Psychology
Normal market cycles can stir up your emotions and push you to invest unwisely, but being aware of your behavioral biases can help you focus on your long-term plan.
See More On: Investor Psychology | Markets
Successful savers have prospered by living below their means. Frugality often becomes a preference—sometimes to an excessive degree.
See More On: Investor Psychology | Smart Buying
Researchers discovered that, when it comes to investment fees, diversification efforts can backfire.
See More On: Investor Psychology | Stocks & Bonds
These one-decision investments can teach you to stick with your investing strategy and remain calm no matter what's happening in the markets.
See More On: Mutual Funds | 401(k)s | Saving for Retirement
Objecs that have special meaning to you could be the key to identifying your savings goals.
See More On: Investor Psychology | Saving for Retirement | Saving Money
Some behavioral biases seem tailor-made to foil retirement savers. But their ill effects are smaller for those who are aware of them.
The best defense against a bubble is a well-diversified portfolio. That helps ensure that losses in one sector or asset class won’t sink you overall.
When imagining your financial life, clarity counts. A vague desire for peace of mind might become “I want to have at least $1 million.”
See More On: Investor Psychology | Financial Planning | Stocks & Bonds
When it comes to managing our portfolios, we tend to fall into one of four behavioral types.
If you are taking on more risk than you can emotionally tolerate, you’ll hit the panic button and sell at the
worst possible time.
See More On: Stocks & Bonds | Saving for Retirement
While the stuff we own grows old and obsolete, memories of things we did are often burnished with time.
See More On: Family Finances | Travel
Comparing yourself with others may provide a helpful nudge when it comes to saving for retirement or staying healthy.
See More On: Investor Psychology | Healthy Living on a Budget | Stocks & Bonds
Parents often believe the most recent request for money will be the last, the one that finally launches Junior on the path to success.
See More On: Family Finances
Research shows that women tend to differ from men in their approach to investing.
See More On: Investor Psychology
Markets are complicated, so we often rationalize that a complicated strategy is necessary to beat them. That logic is faulty.
A Fed study finds that couples with higher credit scores are more likely to stay together.
See More On: Credit Reports & Scores | Family Finances