{"id":9523,"date":"2020-07-07T16:41:01","date_gmt":"2020-07-07T07:11:01","guid":{"rendered":"https:\/\/jigsawprivatew.wpengine.com\/?p=9523"},"modified":"2021-08-12T16:02:03","modified_gmt":"2021-08-12T06:32:03","slug":"adelaide-financial-planning-retirement-planning-how-to-stop-investment-biases-ruining-your-retirement","status":"publish","type":"post","link":"https:\/\/jigsawprivatewealth.com.au\/adelaide-financial-planning-retirement-planning-how-to-stop-investment-biases-ruining-your-retirement\/","title":{"rendered":"How to stop investment biases ruining your retirement?"},"content":{"rendered":"

Would you like a short-cut? To reduce the number of errors your mind has control over.<\/p>\n

The biggest risk to your retirement is not market movements nor inflation.<\/em><\/p><\/blockquote>\n

We explored cognitive biases which affect your financial decisions in our previous post. You can read the post by clicking here>><\/p>\n

Repurposing emotion for more favourable outcomes!<\/h2>\n

Back in my university days, I had a few anger issues. Probably from many years of being teased and bullied in my high school years. I thought I’d try my hands at martial arts, Tae Kwon Do to be exact.<\/p>\n

It was a great outlet. Yes as you would expect we were taught to fight. But also restraint and discipline. I applied myself in the sport at the time. To the extent, I entered my first and last fight. I lost the first round and then came back to win in the last two rounds.<\/p>\n

After that fight, I was invited to train with the Victorian state team which at the time included some Olympians. It was three hours of torture every Sunday morning.<\/p>\n

The one valuable lesson learnt was managing emotions in stressful situations. Being prepared and having automatic reactions for any situation. Knowing exactly what to do when someone attacked you for example.<\/p>\n

Imagine for a moment your face to face with a would-be attacker. They rush at you with full force, arms out, knife in hand. Rather than take the full impact head-on. You sidestep your would-be attacker. Deflecting his outstretched arm. Leading him to rush past leaving him open to a counter-attack.<\/p>\n

Your working with a powerful force, not against it. A valuable lesson for making improved investment decisions.<\/p>\n

In financial terms. Daniel Crosby (author of “The Behavioural Investor”) calls it, bumper sticker thinking<\/strong>.<\/p>\n

Workarounds for managing your mental shortcuts.<\/p>\n

The twenty fives times the income you need in retirement is a great start. Or, the 4% rule.\u00a0 Easy calculations for working how much money you’ll need to fund your retirement.<\/p>\n

Protecting your money from it’s worst enemy, YOU!<\/h2>\n

If you can’t manage your investment behaviour. Your retirement portfolio will suffer. Your lifestyle will suffer.<\/em><\/p><\/blockquote>\n

If you get this behavioural part right. You set yourself up for success.<\/p>\n

Your strategies or retirement portfolio designed to optimise your wealth. Which allows you to live your best life. The one you can live with and sleep well at night. One you can put in place.<\/p>\n

So that you are not making costly mistakes when the markets collapse around you.<\/p>\n

The one strategy or retirement portfolio that is right for you. There is no one size fits all.<\/p>\n

Strategies to make better more informed financial decisions!<\/h2>\n