You can’t have a goal if you don’t know what you need. The goal is only personal if it is the result of an internally guided process rather than from external inputs. When you conduct an honest audit, what are the needs and expectations that must be satisfied? Planning for your future goals requires you…
Your values and priorities change over time. When we reflect on our younger selves, we identify how much we have grown and changed over time. When we look ahead, we expect to stay the same. The extent to which we underestimate how much we will change in future has been the subject of a study…
How often do you expect to experience your target return in any given year? You probably heard that the stock market generates about 10% annual returns on average. Sounds pretty good, doesn’t it. From 1926 to 2020, the average return for the U.S. stock market was basically 10% per year. That’s a great average for…
Fund flows are explained by short-term recent performance. There is a near perfect correlation between a fund’s recent performance and the flow of assets. A fund with strong recent performance, typically experiences strong inflows. Conversely, when performance was poor it suffers outflows. This is evident in a vast body of surveys that were done. It…
We like to think of ourselves as rational decisionmakers making decisions that will serve in our own best interest. Your future will be the result of your actions not your intentions. Why do we persist with behaviours that dilutes our future opportunities? The body of evidence is clear that investors frequently move assets to funds…