How to Train Yourself to Make Better Investment Decisions

Preparing for retirement can be a very emotional process. You have many goals and dreams baked into your retirement plan, and it can be unnerving to think that your actions today can have a significant impact on your success in the future.

In this webinar, Nick Johnson, a financial advisor at Willis Johnson and Associates, highlights how following your emotions, conscious and not, can wreak havoc on your investment strategies, and what steps you can take to ensure you’re making logical, head-driven financial choices.

During the webinar, Nick will cover the risk factors and common behaviors that can lead to emotional investment decisions, including:

 

The Scientific Reason It Hurts So Much To Lose $100 (Or More)

People are much more affected by losing $100 than they are by gaining $100; in fact, they feel the pain of a loss 2.5x more acutely than the thrill of a win. When your emotions are riding that rollercoaster, it can be easy to pull back out of fear and make an emotional decision to hide from risk.

 

How It’s Not Always A Bad Thing If You Stick Your Unopened Bank Statements In A Drawer

We’ll discuss research that has found people who review their accounts less frequently are more comfortable with taking reasonable amounts of risk. The lower levels of scrutiny on long-term accounts can be beneficial because it gives you the chance to trust the market’s generally good returns without stressing over or reacting to short-term volatility.

 

How Hometown Pride Can Impact Your Investments

Studies show investors tend to buy what they know. For example, U.S. investors place the majority of their money in U.S. firms, and specific regions tend to cluster their investments in industries with which they feel familiar.

 

How Diversification Makes Sense For Investors Of Any Age

Diversification makes sense because it’s a form of protection. Keeping a mix of investments in your portfolio means you’ll have the capability to bounce back faster when you encounter issues or hit unexpected bumps in the road. And, intelligently diversifying creates a financial structure that can minimize worry and emotional concerns regarding your investment options.

Rather than becoming overwrought regarding financial issues and reacting frequently to market conditions, Nick highlights the importance of knowing how your investment pieces fit together. Understanding their connections and taking a measured approach to your investment portfolio can be key factors in successfully preparing for retirement.

At Willis Johnson and Associates, we have years of experience helping our clients take emotion out of the equation and positioning them for a successful retirement.

Watch the webinar by filling out the form below, and then if you need assistance with making sense of your finances, take a look at the services our team can offer.

 

 

 

 

 

Nick Johnson

Nick Johnson

Nick Johnson CFA®, CFP® believes that financial planning is more than numbers on a balance sheet and a standardized process. People are unique and should be treated as such. As vice president and wealth manager at Willis Johnson & Associates, Nick’s goal is to develop a solid understanding of his clients while providing a proactive approach to comprehensive wealth management.

 

Willis Johnson & Associates is a registered investment advisor. Information presented is for educational purposes only. It should not be considered specific investment advice, does not take into consideration your specific situation, and does not intend to make an offer or solicitation for the sale or purchase of any securities or investment strategies. Investments involve risk and are not guaranteed. Be sure to consult with a qualified financial advisor and/or tax professional before implementing any strategy discussed herein. Insurance products and services are offered or sold through individually licensed and appointed agents in various jurisdictions.