10/16/2019 “Investing is not really the study of finance. It’s the study of how people behave with money .” ~Morgan Housel 1 2 Behavioral *what-a-nomics*? 3 4 1
10/16/2019 The ‘Big Three’ - Cognitive ( how we think ) -Emotional ( how we feel ) -Social ( how we’re influenced ) Image: ‘The Simpsons ’ Image: ‘The Far Side” 5 6 Source: geekwrapped.com 7 8 2
10/16/2019 Source: Ben Carlson, AWOCS 9 9 10 Returns won’t always be smooth … Source: Michael Batnick, The Irrelevant Investor 11 12 3
10/16/2019 Mind the Gap Source: Morgan Housel 13 14 Source: Ben Carlson ‘A Wealth of Common Sense’ 15 16 4
10/16/2019 Have a dialogue about what you will / won’t do What we will do What we won’t do Get to know you – your goals, desires Do all the talking and passions Try to avoid every drawdown Set proper expectations about how we will work together; markets; and Try to time the bottom various scenarios for your wealth Put you in a black box or “rule of Determine an appropriate asset thumb” asset allocation model allocation and financial plan for you Overcomplicate it for the sake of Build portfolios in service to that plan appearances Ensure goals are on track with Set it and forget it periodic reviews Source: Morningstar & Fidelity Investments 17 18 20 19 20 5
10/16/2019 Compliance Disclosure Investing in securities is subject to a number of risks and is not suitable for all investors. Investors should carefully consider their investment objectives, risk tolerance, financial situation, and other information before investing. Additionally, the financial planning process is a great tool for providing clarity regarding your financial life, however this process cannot provide certainty. 21 6
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