Behavioral Finance: The study of how psychology affects finance Psychology is the basis for human desires, goals, and motivation. In addition, psychology is the basis for a wide variety of human errors that stem from perceptual illusions, overconfidence, over-reliance on rules of thumb, and emotions. Wikipedia has 54 pages in this category. Some items have … Read more
“Golf is a good walk spoiled” -Mark Twain The economic recovery in the U.S. turned six years old on June 30, 2015. According to the Bureau of Economic Analysis GDP data since March 9, 2009 our economy has been in bull mode. The S&P500 index has returned a whopping 248.3% since. Despite things getting better … Read more
As a money manager, a tremendous amount of pride comes from watching an account grow over the million dollar mark. Many a millionaire has told me that true diversity has much to do with controlling one’s investments. My dad was famous for saying things like, “I never buy anything that I thought could be taken … Read more
$30,000! That’s what several home-owners who live relatively close to Chambers Bay Golf Course are getting as the world prepares for the US Open Championship. The event can send the message that some rental tax breaks work especially well for retirees. The relevant tax break: anyone, not just retirees, can rent a home (primary residence) … Read more
“Economize. The secret to golf is to turn three shots into two”. Under-saving isn’t a golf professional phenomenon. It’s a human phenomenon. There is a gap between the perception and reality of the amount of retirement income their savings can buy. Fifty percent of all Americans over the age of 65 are living entirely on … Read more
Personal finance, like golf, is “deceptively simple and endlessly complicated”. Since the crash of 2008/2009 our economy has gone through a metamorphosis. We have all had to tighten our belts, spend less than we make, save for retirement, fear another crash and become timid with our investment decisions, relocate for jobs, etc. If you now … Read more