Investor Psychology. Created by Erica Abbott USU Family Finance Student and Dr. Jean M. Lown. Last October’s FPW program is available at www.usu.edu/fpw under past presentations. Outsmart your brain: Trick your mind to treat your finances Focused on money management
Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
Created by Erica Abbott
USU Family Finance Student
Dr. Jean M. Lown
We become psychologically invested in what we own…
Own a winner? Can‘t part with it
Own a loser? To sell would reinforce the pain
Manage risk by diversification &
Establish a % share for each asset
category based on risk tolerance
& time horizon
$10,000 & invest $500/month @ 8%/yr.
For 30 years
Index fund 0.20%: $818,639
Active fund 1.2%: $662,916
Behavioral Principles http://www.ideas42.org/category/theory
Small Steps to Health & Wealth
the time to set it up
You’re less likely to undo that decision & more likely to start a good habit
“One of the most powerful motivational strategies to… increase wealth is visualization. People can alter their lives just by altering their mindset. Visualization (a.k.a., mental imagery) is a powerful step in the process of setting and achieving goals.” SSHW
What is your vision for your goal?