How To Hack Investor Biases, Part 1: The Agreeable Personality Type

How To Hack Investor Biases, Part 1: The Agreeable Type

On the 15th episode of the Retirement Explained show, we’re getting to know ourselves a little bit better. We’re talking about personality types and investor bias and how knowing yourself can help you better invest and avoid the pitfalls that come inherently with bias. It's nearly impossible to avoid bias because you're emotionally attached to your money, and of course you are.

Money is the storage of time. Your time, your life is literally stored in those numbers that you see when you pull your bank accounts up and it's no joke! One of the reasons that my clients hire me is because I'm emotionally unattached to their money and I can make better decisions with their money than they can. They're trying to read the label from inside the can, so to speak, whereas I'm looking at the label from the outside.

Whether you're a do-it-yourselfer or you work with a financial advisor, like me, I think you're going to enjoy this episode. I discuss the loss aversion bias, status quo bias, recency and hindsight biases, as well as the confirmation and availability biases. I also discuss tips on how to use your knowledge of your personality and the biases you're more easily susceptible to better make you able to read the label from inside the can. It's all about process. If you have a process and a plan, you can overcome your biases.

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