Race through your work, and loudly proclaim you are finished. Such is the pattern of some elementary school students (and adults, by the way). You’ll undoubtedly see this tonight: kids racing up to a door, quickly getting their reward (and hopefully saying thank you…or at the least, “trick or treat”), and then they are off to the next task, the next house. A wise teacher in one of my children’s classes is teaching that in …
Using an arbitrary minimum asset level for clients unduly limits the market for financial services providers to those who have already “made it,” and ignores the substantial number of prospects that are ultimately headed for financial success. For advisors, using minimums often means excluding the coveted Millennial group because they do not meet asset requirements . . . yet. So why does the industry continue to focus on current asset levels? Defining target markets by …
According to Dalbar’s 2015 Quantitative Analysis of Investor Behavior (QAIB), the worst gap between market and investor performance in the past 30 years was in October 2008 when, as the report states, the S&P 500 index lost 16.8% but investors lost a little over 24%. There are, of course, many psychological factors that explain the disparity: behavioral finance biases that model why investors act irrationally. However, to be able to anticipate this behavior, and …
What separates those who have the highest potential for building wealth from others? Is it exotic investments or timing the market? In many cases, it’s the basics of financial planning. In our latest white paper, we discuss how Wealth Potential groups differ in terms of their behaviors and self-reported experiences related to financial management. We measured Wealth Potential with Data Points’ proprietary assessment of frugality, confidence, level of responsibility for one’s finances, and focus on …
If clients are to increase their likelihood of becoming wealthy, they have to understand and change how they behave with respect to areas that are, perhaps, a little more personal. Clients that focus intently on what others buy and consistently want the latest and greatest in possessions (such as technology or accessories) are less likely to build wealth over time. Social Indifference predicts net worth regardless of age, income, or how much wealth one …