Meanwhile, sunk cost fallacy makes us want to hang onto the loser ‘until it comes back.’įirst, if you’re thinking about selling off an asset that’s performing well, ask yourself: What’s the real motivation? Do you want to book a profit for the sake of booking a profit? Or do you believe that some underlying fundamental has changed? Why? We get a dopamine hit when we sell a winning asset and lock in our gains. #1: The disposition effect – Humans have a tendency to sell their winners and hold their losers. Here are a few irrational biases that destroy wealth: He shares tips on how to master the mental game of investing, especially in turbulent times. In today’s episode, Scott Nations, who spent his career studying market volatility, describes some of the most common cognitive biases and irrational behaviors that investors make. This fear triggers us to act even more irrationally than usual – which can lead to making expensive mistakes in our investment portfolios. Market crashes often bring out the worst in people’s anxieties and fears. In this episode, we discuss how to inventory your time, cash and connections (you might have more than you think!), as well as what to do if you’re lagging in one or more of these arenas. Plenty of successful investors start out with empty coffers in one or more of these arenas. These four factors will have a major influence on your experience as a long-distance investor. Time, capital and relationships are the resources at your disposal, and your mindset governs how well you’ll use those resources. In this episode, we’ll help you take a personal inventory of four factors: your time, capital, relationships, and mindset. How can you methodically, systematically dig into answering this question? “Maybe I should just stick to index funds …” “What’s the upside? Is this worth my time and effort?” “Should I bother investing in real estate?” Today we tackle one of the most common questions we hear: Invest Anywhere airs on the First Friday of each month and is co-hosted by Paula Pant and Suni Rao. Welcome to Invest Anywhere, our monthly series on long-distance real estate investing. What should he do?ĭo you have a question on business, money, trade-offs, financial independence strategies, travel, or investing? Leave it here and we’ll answer them in a future episode. Steve is a landlord who needs his property to cash flow, but doesn’t like to raise rents. However, he questions whether that rule should really be applied to the FIRE community. John liked the episode with Bill Bengen, where we discussed the 4% rule. Ideally, she’d also like to buy a house in Europe within the next 10 years. She wants to shake up her investments so that she can tap her assets in order to make her payments. How should she approach the next 10 or 20 years, so that she can enjoy her financial security?Ī different anonymous caller (“Starlight”) has the opposite problem: her expenses are mounting. She wants to relax about her spending more, and start including more joy into her life. We start this episode with two anonymous callers who have opposite problems: one says her bills are too high, while the other is worried that she’s saving too much.Īnonymous (“Izzy”) saves A LOT.
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