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behavioral bias

Financial Planning Information

Sherman Wealth Management provides you with relevant financial planning information to give you the resources you need to make informed choices. Read through our posts below and contact us to set up a free call for more information on creating a custom financial plan.

February 15, 2018

Shocked by the Market’s Drop? Chalk it Up to Recency Bias

Whether you realize it or not, chances are good that you are prone to something called Recency Bias, which is the common tendency to think that what has been happening recently will continue to happen in the near future. If you, like many investors, are shocked and concerned about February’s sudden market volatility, it’s probably […]
August 1, 2017

Why Utilize a Financial Advisor?

Personal finance.  Don’t underestimate the adjective. In today’s world, the rise of “robo advisors” have led some to (incorrectly) conclude that managing investment portfolios is simple.  As far as they are concerned, as long as you have a software program, you’re set.  Within minutes, a computer system can analyze your risk tolerance, determine the best […]
August 10, 2016
playing it safe

Why Playing It Safe Could Hurt Your Retirement

A new survey from Bankrate indicates that many Americans hold quite a low view of the stock market. In answering what was the best way to invest money unneeded for at least 10 years, real estate (25%) and cash (23%) took the top spots, followed by the stock market and gold (16% each) in a […]
June 9, 2016
Investors Can Be Their Own Worst Enemy

Why Investors Can Be Their Own Worst Enemy

Investors often think they are doing better than they actually are. But the reality is that most investors are actually underperforming their benchmark. Two recent articles regarding behavioral finance — Which Investor Personality Best Describes You? and 8 Common Investor Biases That Impact Investment Decisions — detail a concept which is the thought that our […]
May 23, 2016
Investor Biases

8 Common Investor Biases That Impact Investment Decisions

This article was originally published on investopedia.com One of the biggest challenges to our own success can be our own instinctive behavioral biases. In previously discussing behavioral finance, we focused on four common personality types of investors. Now let’s focus on the common behavioral biases that affect our investment decisions. The concept of behavioral finance […]
May 12, 2016

Which Investor Personality Best Describes You?

This article was originally published on investopedia.com According to many studies, our different personality traits and preferences, along with a range of emotional and mental behavioral biases, have a strong impact on the way we invest. This is commonly referred to as behavioral finance. As part of a two-part series on Behavioral Finance, we will […]