Guest Post: Behavioural Science leads to better returns

Original Article via MoonStone.co.za

Behavioural science leads to better returns

Financial Planner of the Year shares tips – Behavioural science leads to better returnsIn a recent Business Report article, Janet Hugo Financial Planner of the Year, shares how behavioural finance can be used in an efficient and practical manner in the wealth-management process.

 

According to Hugo one of the easiest ways to incorporate investor psychology into financial planning is to apply goal-based investing, which involves creating specific goals with defined time horizons and selecting investments with the correct asset allocation for each goal. She shares that it works very well for pre-retirement clients who are accumulating wealth, as well as for post-retirement clients who need income from their capital.

She also uses behavioural finance in the wealth-management process to create an awareness of emotional biases that affect investment decisions.

Scenario playing is another excellent way to include behavioural finance in the financial planning process.

Click here to read the article.

 
 

P.S.: Are you interested to find out more of the “Why, What, When and How…” uncovered and discovered in the process of writing our thesis (The Psychological impact of past experiences [and rehabilitation thereof])? Sign up to our direct mailing list -> CLICK HERE

S.A. Quote: Decisions

“To make decisions without thought is like participating in a steeplechase with bandaged eyes.”

Jack Penn (Surgeon, Philosopher, Artist)

Would it surprise you to know that approximately only 3% of the global population do actually do proper planning? Making decisions without thinking about it properly.  Impulsive and uncalculated decisions. Almost just living on instinct…

I do not just mean financial planning, but life planning in general…

Disagree? Okay, let me ask you the following questions:

  1. Do you have a goal, vision, mission, purpose for your life written down? A legacy you wish to leave behind? A dream life you want to achieve?
  2. Do you have a clearly written out list of top three (3) goals for the next 369 days? Not just in the form of business planning but personal planning.
  3. Do you have a clearly written out plan/strategy to achieve these goals within the next 369 days?
  4.  Have you done any research, recording of data, data tracking and analysis in accordance with the goals you want to achieve?
  5. Have you reflected and improved on previously gathered data to realistically plan or strategies your next week, month, quarter or year?
  6. Have you spent time inwardly reflecting on your choices, experiences, lessons learned and the reasons why it could have been prevented?

And with these questions, I am not referring to your list of new years resolutions that fell by the wayside somewhere between then and now…

I am talking about goals which are congruent to your true authentic natural self,  true to your values, true to your talents and skills…?

Would it surprise you to know that only the top 3% for Financial Independent Individuals that have perfected this to an art… only because they invested in themselves by working with coaches and mentors – following a basic outline formula?

Interested in more information, view our Products, Services and Free Resources.

Alternatively, if and only if you are ready to be unschooled, have an open mind and are willing to start your process of discovery and achievement of your own determined success … start here

Author:

Yvonne E. Venter-Louw

YEVL (Pty) Ltd. Director & Principal

Researcher, Advisor, Educator, Coach, Mentor and Speaker

– The Psychological impact  and rehabilitation of past experiences on daily driven Financial decisions

[Cert. Financial Planning + GIBS MLOLP  + RE5 + Cert. Financial Coaching + Dip. Psychology + Hypnosis + NLP + Subliminal Therapy + Numerology + Energy Healing]

Naturally creating Freedom, Meaning & Wealth!

 

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