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Behavioral Finance: New Year; New Habits

Lose Weight ... Work Out More ... Cut Back on Spending ... Get a Financial Plan – Sound familiar?

We all start with strong resolve and we are determined to crack the nut this time. But then what happens?

The Willpower Trap

Funny that this runs contra to everything we’ve previously been told: If we just have enough willpower we’ll be able to make that change … almost overnight. And yet that’s not the typical result.

Are we really that weak in our resolve? Behavioral science says “No”.  

Willpower alone is not the key ingredient, and our thinking that it should be often creates a new dilemma, instead of getting us to our goal.  So best to avoid that trap.

Women In The Bulls Eye: The Good, The Bad, and The ...?

The Good:The Age of Women Is Now Fully Recognized

Well, finally, some 40 years after Gloria Steinem and other feministas did those unthinkable things to bring on the revolution, they are noticing. "They" being everyone from Madison Avenue marketers to Wall Street ... and even more recently from the heights of the president of the World Bank. The demographics - and actuarial tables - are finally indisputable.

Meanwhile women are rockin' it, and "They" know we're going to bring it.

The big questions are: Do we know? ... Are we prepared? ... and, as importantly ... Have we stepped up to full ownership?

Why Are My C.D. Rates So Low?

Yes, there's no denying it: Interest rates are abysmally low right now. Understanding "why" and the impact on your bottom line, can make a big difference in how you use C.D.'s in the future.

What are interest rates anyway?

Simply put, interest rates can be defined as the “Cost of Capital”, which to put in regular language just means the 'cost of doing business'. Let's take a look:

What Were You Doing Two Years Ago? A Stock Market Post-Mortem

Do you remember what you were doing 2 years ago today?  For most people there was a lot of hand–wringing and much worse as the stock market was cratering again to new lows ...

I remember one client in particular who called me to say she was going to liquidate her entire portfolio … she just couldn’t take it anymore.  She had been advised to do so by her CPA.  As you all l know I don’t manage money any longer, but I do help clients in selecting their financial advisers as just one part of our work together.  Given my 26+ years of watching markets and having lived through some past very dark market days, I recognized this as a sign.  A sign that things were about to turn for the better …

The Five Most Common TRICK Investment Proposals

Investment proposals often seem like they are simply too good to be true, and unfortunately they usually are. We created five of the most common investment sales tactics purposely used to trick you into making a shaky investment. Here are FIVE quick and easy phrases that everyone needs to beware of:

What Your 401K Means Today

In September of 2008, I wrote an article discussing why putting a halt on your 401K contributions during the recession is not a "smart money" decision. According to a survey from The Investment Company Institute, people have been following my advice (Thank you!)

A study following 3,000 households found that 90% of those households had a favorable view of their 401K system and 73% are confident that their plan will help them achieve their retirement goals. Another survey reported that six out of ten Vanguard 401K participants through the third quarter of 2009 had a balance in their accounts that was similar to or larger

401K's: How to Evaluate Your Asset Allocation

Chances are right about now, you may be wondering about those 401K investments; like many, you may also be immobilized or you may be thinking that because you picked some funds from the menu that your company gave you,...that you're done. But,Wait...There's more!!

Here's one simple thing anyone can do RIGHT NOW to insure that you're not shortchanging yourself.  READ: Maximize your opportunity for performance through asset allocation in your portfolio.

I've written previously about the tremendous significance of asset allocation and its being one of the key things anyone can do right now to fortify their portfolio.

Its more than salutary effect on your investment performance...Plus proven ability to cushion bumpy rides (help mitigate risk), remains a constant - even for uber-hero-investor, Warren Buffett. (If it's good enough for the Oracle, it's good enough for me!)

Economic Turmoil Complicates Bay Area Divorce Proceedings

SILICON VALLEY, California (August 26, 2008)  -- Coming to an equitable divorce settlement is difficult in the best of times, but the current economic climate brings even more challenges to divorcing couples and their attorneys. To address these issues, more and more Bay Area couples are turning to Certified Divorce Financial Analysts(CDFA) for help finding the best long term solutions.

“Due to taxes and other investment costs, a party may receive what appears to be a fair 50% allocation, but after-cost valuations and practical considerations can skew the ultimate result, compromising the parity of the exchange,” says Teresa Dentino, a licensed CDFA with more than 25 years of financial planning experience in the Bay Area.

The Story of Anne Scheiber: Discipline Trumps Math Ability

Consider the remarkable case of Anne Scheiber. She represents not only the superb returns that can be enjoyed from a dedicated and systematic buy and hold strategy, but also the pluck to jump back in the game after losing everything...