Page 5 - Seasons Of Money Life FINAL

SUMMER: PROTECT
As summer arrives, many throw caution to the wind. We might take a dip in the sea.
Fire up the barbecue. Cycle around the lake.
No matter the choice, we can’t escape the fact that every decision involves risk—some prudent, others not. Successful financial planning takes a broad view on risk. In the markets, volatility can emotionally compel people to make rash decisions.
Humans tend to crave certainty, but good risk management means thinking probabilistically. The best financial planners help their clients play the odds methodically and patiently.
COMING THIS SEASON
๏ How overconfidence, anchoring, and other biases make it hard to distinguish between subjective and objective risks.
๏ Why a deep understanding of “loss aversion” turns good financial planners into great ones.
๏ Why managing investment risk is more about looking in the mirror than looking at the markets.
๏ How “lower risk” opportunities can mask potentially bad consequences.