Although behavioral finance is still primarily an academic field dominated by scientific research, it is important to see how we might be able to apply the theory to the real-world situations we encounter. Identifying and understanding those aspects of behavioral finance relevant to our own financial lives can help us make more sensible decisions and achieve better results for ourselves and our families.
Next week we’ll talk about how investors sabotage themselves.
John Spoto is the founder of Sentry Financial Planning in Andover and Danvers. For more information, call 978-475-2533 or visit www.sentryfinancialplanning.com
This article is for general information purposes only and is not intended to provide specific advice on individual financial, tax, or legal matters. Please consult the appropriate professional concerning your specific situation before making any decisions.