February 2023

Much of financial planning revolves around your retirement planning strategy – a strategy that very likely involves investing. On the surface, investing may seem to be all about facts and figures, like principles and interest rates. However,  there’s always a human element that shouldn’t be overlooked. In fact, an entire domain of psychology known as behavioral finance shows we are all susceptible to cognitive biases and emotional influences that impact self-control, risk tolerance, and rational behavior.

In this article, we’ll explore two of the most common cognitive biases – herd behavior and overconfidence – and how they could be sabotaging your financial plans. Once you are aware of them, you can combat these negative behaviors and move beyond them for greater financial security in retirement.

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