behavioral economics Archives | Wealthfront Blog Personal Finance & Investing Insights Tue, 24 Sep 2024 19:03:40 +0000 en-US hourly 1 https://www.wealthfront.com/blog/wp-content/uploads/2019/09/cropped-wave-logo-transparent-hi-res-500x500.png behavioral economics Archives | Wealthfront Blog 32 32 Why You Should Keep Investing When the Market Is Volatile https://www.wealthfront.com/blog/invest-despite-volatility-2-2/ Thu, 03 Feb 2022 21:06:43 +0000 //wealthfront.x5view.co/?p=4842 When markets are volatile (as they are right now), investors sometimes get uncomfortable. When your portfolio temporarily loses value, it can be very tempting to try and minimize your losses by stopping your regular investment account deposits. Unfortunately, when it comes to investing in a volatile market, what feels right is often wrong. In this […]

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]]> Wealthfront’s Guide to Financial Health https://www.wealthfront.com/blog/introducing-guide-to-financial-health/ Tue, 08 Jan 2019 23:54:30 +0000 http://www.wealthfront.com/blog/?p=9690 This year, get specific with your financial resolutions. Explore Wealthfront's Guide to Financial Health and learn how to take small steps to reach bigger goals — whether it’s optimizing your cash savings, building sound investing habits, or finally paying down your debt.

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]]> Tax-loss harvesting as a behavioral tool https://www.wealthfront.com/blog/tax-loss-harvesting-behavioral-tool/ Thu, 22 Oct 2015 17:56:39 +0000 http://www.wealthfront.com/blog/?p=5262 It’s extremely hard to invest when markets are down. We all know it’s the “right” thing to do, but it’s hard to act in the face of fear. Unfortunately, the popular media doesn’t help. As an investing culture, we have a gaggle of catchphrases that warn you away from buying when things get tough. Aphorisms […]

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]]> The Right and Wrong Reasons to Change Your Risk Tolerance https://www.wealthfront.com/blog/right-and-wrong-reasons-to-change-risk-tolerance/ Fri, 05 Dec 2014 17:30:19 +0000 http://www.wealthfront.com/blog/?p=4874 Our clients sometimes ask us how often they should change their risk tolerance score. The answer is: Not often. You won’t be surprised to find that the question comes up most frequently when the markets are either up big or down big. Human nature leads us to want to increase our risk tolerance when we […]

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]]> Why You Should Invest Despite Volatility https://www.wealthfront.com/blog/invest-despite-volatility-2/ Tue, 11 Nov 2014 13:01:01 +0000 http://www.wealthfront.com/blog/?p=4842 Refraining from investing in a volatile market is yet another example of how what feels right isn’t necessarily the right thing to do when it comes to investing. Let your rational mind guide you: Don’t let your fear of loss take control.

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]]> Meir Statman on What Investors Really Want https://www.wealthfront.com/blog/meir-statman-on-what-investors-really-want/ Thu, 24 Oct 2013 14:50:37 +0000 http://www.wealthfront.com/blog/?p=4194 Meir Statman, a member of Wealthfront’s investment advisory board, is a leader in the field of behavioral finance. He has researched and written much about investor behavior and its reflection in capital markets. We asked him to talk to us about what investors really want, how they can make smarter financial decisions, and what brought […]

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]]> Investors’ Most Serious Mistake https://www.wealthfront.com/blog/top-investor-mistake-time-market/ Thu, 28 Feb 2013 17:21:36 +0000 http://www.wealthfront.com/blog/?p=3581 Without doubt, the most serious mistake individual investors make is trying to time the market. Neither individual nor professional investors are able to make consistently accurate calls on the direction of market prices. In fact, I have never known anyone who knows anyone who has consistently made accurate directional bets on either equity or bond […]

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]]> How to Talk to Your Partner About Money https://www.wealthfront.com/blog/talk-money-partner-before-marriage/ Thu, 14 Feb 2013 23:07:14 +0000 http://www.wealthfront.com/blog/?p=3577 Relationship experts say that one of the top reasons couples break up is over financial issues. One poll found two-thirds of couples didn’t talk about money before marriage – in fact, some experts call money the number one taboo in a relationship. Isn’t it a bit strange that the person who knows intimate details about […]

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]]> Why Risk Tolerance Matters https://www.wealthfront.com/blog/what-is-risk-tolerance/ Wed, 15 Aug 2012 21:13:28 +0000 http://www.wealthfront.com/blog/?p=3217 Every year, a top-notch research firm called DALBAR releases a study that shows that the average mutual fund investor underperforms the market, often by a lot. Last year, the difference between the average mutual fund investor and the market was nearly 8 percentage points.[1] Why the difference? People are making the classic investing mistake of […]

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]]> Beware Rising Investment Advisor Fees https://www.wealthfront.com/blog/increased-financial-investment-advisor-fees/ Wed, 14 Dec 2011 00:48:07 +0000 /blog/?p=1663 A few weeks ago, Wealthfront’s VP of Research, Jeff Rosenberger, PhD, clipped a story from an industry trade magazine, titled Five Ways for Financial Advisors To Raise Fees, and hung it up in Wealthfront’s Palo Alto office. We have to admit, it was subject to grafitti. Our team found the article funny. We were in the midst […]

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