For many years we’ve been having better conversations about retirement. It’s no longer a matter of finding a job, staying in it for 40 years, and then retiring for fifteen years under the assumption that the company pension scheme will finance that entire period for us. It simply doesn’t work that way anymore. Finding a job can take considerably longer; the chances of us staying in one position for more than ten years, saving early (and […]
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A powerful mental trick to master the markets
If someone is selling something, their primary goal is most often to convince you to buy what they’re selling. If you follow financial accounts on social media, your timeline is likely crowded with people touting the next big winning investment. As we look back on market history, there is an obvious attraction to finding the big winner – the tiny tech stock that turns into the next Amazon or the virtual coin that makes overnight millionaires. […]
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How does the stock market work?
The fastest way to lose half of your money is not a stock market crash but a divorce, separation or a poor business decision (so it’s a good idea to make sure you’re on the same page with your partner when it comes to joint finances.) Many have felt disheartened by the stock market in recent times, especially with the historic GameStop trading fiasco. It’s easy to feel confused and assume the market is rigged against […]
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Is anchoring holding you back?
One of the challenges of financial planning is its complexity. Not only is it mathematically layered, but it’s also fraught with bias and emotional influence. For most of us, we only scratch the surface of about seven areas of financial planning and allow experts to make recommendations and decisions that will hopefully create a better financial position for us in the future. When it comes to investing (just one area in about seven), there are loads […]
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Crypto can be taxing
One of the early appeals for cryptocurrencies was that they would not be taxed as they are not fiat currencies (yet), in that they are not owned by a country or used for trade inside of geographical tender regulations. However, as these platforms grow and develop, we are seeing that this is most likely not the case. According to several governments, cryptocurrencies, such as Bitcoin, are classified as “intangible assets” – as opposed to, say, property […]
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Dualistic Thinking
Dualistic thinking assumes a universe where there are only two opposing, mutually incompatible options or realities. This type of thinking is either/or, good/bad, negative/positive, and has a significant impact on our beliefs and behaviours. Our development is stymied by dualistic thinking. The sooner we can break free from this either/or mindset, the sooner we can nurture greater success in the workplace and in our personal lives. This either/or mentality contributes to our fears and concerns by […]
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Don’t be a lemming
One long-held belief is that lemmings purposefully run off cliffs in their millions. This myth has become a metaphor for the behaviour of crowds of individuals who follow each other blindly, regardless of the consequences. Herd instincts are prevalent in all parts of life, including the financial industry when investors follow what they feel other investors are doing rather than conducting their own research. A herd instinct is a type of behaviour in which people react […]
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I’m not sure I want to know
There’s a story that was told many years ago (it may or may not be true…) about a Microsoft call-centre agent and their call with a deeply irate customer. Having recently purchased a computer that came pre-installed with Windows, the customer called to find out why his computer would not respond. It goes a little like this: Call-center Agent (CCA): Thank you for verifying your purchase; how can we help you today? Customer (C): My computer […]
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Are you money-mental?
The simple answer is: Yes, we all are! In a recent blog, we looked at five financial trip-wires and glanced over the term ‘mental accounting.’ Introduced in 1999, it’s a concept that refers to the different values we place on money. These values are often based on subjective criteria; sometimes, this subjectivity benefits us, and sometimes it doesn’t! Mental accounting enables us to create emotional connections with our financial plan. When we consider investment strategies or […]
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Hold the line
“It’s not in the way that you hold me It’s not in the way you say you care It’s not in the way you’ve been treating my friends It’s not in the way that you stayed till the end It’s not in the way you look or the things that you say that you’ll do Hold the line Love isn’t always on time.” If you have the tune of Toto’s yacht-rock hit from 1978, Hold the […]
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