Do We Really Know Our Financial Selves?

financial behavior, risk profiling, risk tolerance, financial researchWith the progress of technology we have got used to instant gratification. We use the internet to research whatever grabs our immediate attention and we use social media to pass this information on. Similarly Reality TV has become a staple in many peoples everyday activity ? they watch it, they talk about it and they share commentary through social media. Whether we like it or not short term focus is the order of the day. And maybe it shouldnt be. Longer term perspectives and rational thinking to focus on what is really important is becoming harder to do, especially if you a trend follower of one sort or another.

Nowhere is this more obvious than in the area of personal financial matters.

Every so often, stock markets crash. Technically this should always start with economic reassessment but more often than not such falls get exaggerated by investor overreaction to the information at hand. Sometimes investors think that If everyone is selling the market then I should as well Such following of the herd, so to speak, is quite common and is fed primarily by the financial media. Nothing sells like a bad story ? Markets have fallen by xx%. investors fleeing the market and so on.

Once markets bounce back, you will rarely see anything similar in media coverage terms to the upswing. It isnt traumatic or sensational enough to grab our attention. This herd mentality to aversion is usually fed by instinctive reactions of investors where especially in adversity we tend to make decisions quickly and emotionally. But not rationally.

But of course once shares are sold, the financial position is crystallized. Then, as it is wont to be, the market creep back up happens almost anonymously in dribs and drabs. A quarter of percent here, half a percent there and before you realize the market occasionally jumps by one or two percent in a day. The losses have been reversed and so a wealth accumulation opportunity has been lost out on. Blink and youve missed it.

The financial media can also appear to provide expertise. In the US there are no shortages of financial pundits who will expound the virtues of particular stocks or investment strategy, so much so that they are almost entertainment in their own right so outrageous are some commentators statements. This can lead viewers to become over confident, thinking that they can be more successful at investing than they really can. Hand in hand with this is an optimism bias and an exhilaration got by investing in a certain way even if they know it is difficult to be successful.

behavioral finance, risk profile, financial dna, risk tolerance, investment riskOver the years I have got plenty of client phone calls in times of market turbulence but thankfully these numbers have become less and less as time moves on. This reducing number isnt due to a reducing client bank ? we have tripled the amount under advisement in the last five years ? it is due to our emphasis on making clients understand themselves first and then the markets second. Client behavioral education is a keystone of our approach in advising clients. If people appreciate themselves and their deep rooted financial preferences they can then make informed choices about the issues that they can control rather than those they cant, namely the reactions of others to stock markets.

By focusing on their own needs which are usually long term rather than the short term noise of financial media real benefits accrue. Market rises arent missed out and additional trading expenses arent incurred. Patience and calmness are real virtues that are often overlooked and undervalued.


Eamon is a Human Behavior integrator at DNA Behavior, and one of Irelands leading independent fee based financial planners. His single goal is to help clients make wise decisions with their money now and for the rest of their lives especially in the areas of investing and retirement planning.

Visit the DNA Behavior website to learn more about managing financial behavior and risk through greater self awareness.

Eamon Porter

Eamon Porter

Eamon Porter

As one of Ireland's leading independent fee based financial planners my single goal is to help clients make wise decisions with their money now and for the rest of their lives, especially in the areas of investing and retirement planning. I am also a recognised thought leader in the financial services industry on behavioural finance and practice management strategies that leverage human behavioural insights.

274 replies
  1. Avatar
    Willis Skar says:

    I just want to tell you that I’m very new to blogging and absolutely enjoyed this blog site. Probably I’m want to bookmark your website . You really have amazing well written articles. Thanks a lot for sharing your web site.

  2. Avatar
    adreamoftrains web hosting sites says:

    Please let me know if you’re looking for a writer for your weblog.
    You have some really great posts and I believe I would be a good asset.
    If you ever want to take some of the load off, I’d absolutely love to write
    some articles for your blog in exchange for a link back to mine.

    Please send me an email if interested. Cheers! adreamoftrains
    website hosting

  3. Avatar
    Kerry Comment says:

    I just want to say I am just new to blogging and absolutely loved your blog site. Very likely I’m going to bookmark your blog post . You really come with incredible articles and reviews. Thank you for sharing with us your web page.

  4. Avatar
    cialis reviews says:

    To bole and we all other the former ventricular that corrupt corporeal cialis online from muscles nonetheless with soundless principal them and it is more average histology in and a crate and in there very useful and they don’t unvarying death you are highest dupe dotty on the international. sildenafil dosage Saypzw tkvuet

  5. Avatar
    professional viagra 100mg says:

    Oh my goodness! an outstanding article man. Thanks However I am experiencing issue with ur rss. Don?t understand why Unable to register for it. Is there any individual getting identical rss issue? Anybody that knows kindly respond. Thnkx

  6. Avatar
    Shaunna Brocklebank says:

    I’ve been exploring for a little for any high-quality articles or weblog posts on this sort of house . Exploring in Yahoo I eventually stumbled upon this site. Studying this information So i am satisfied to exhibit that I have a very excellent uncanny feeling I discovered exactly what I needed. I most indubitably will make sure to do not put out of your mind this site and provides it a look on a constant basis.

  7. Avatar
    Sex vienna says:

    KAISERSLUST Plattform der Wiener Sex Scene Sex in Wien – Girls in Wien – Escorte Wien – Transen Wien – Hostessen Wien Escort Wien – Massagen Wien – Studios Wien – Laufhaus und Bordelle Wien Asiatinnen Wien – Sex in Wien – Kaiserslust – Der Kaiser hat Lust – Sex

  8. Avatar
    cheap flights says:

    This design is steller! You certainly know how to keep a reader amused.
    Between your wit and your videos, I was almost moved to
    start my own blog (well, almost…HaHa!) Excellent job. I really enjoyed what you
    had to say, and more than that, how you presented it. Too cool!
    32hvAj4 cheap flights

  9. Avatar
    cheap flights says:

    Hmm is anyone else encountering problems with the
    pictures on this blog loading? I’m trying to figure out
    if its a problem on my end or if it’s the blog.

    Any suggestions would be greatly appreciated. cheap flights 3gqLYTc

  10. Avatar
    inner tranquil cbd oil says:

    I was extremely pleased to find this web-site. I wanted to thanks for your time for this terrific read!! I absolutely delighting in every bit of it as well as I have you bookmarked to have a look at brand-new things you blog post.

  11. Avatar
    fast home buyers says:

    David-Home Northeast is your premier source for all of your Real Estate investing needs. We provide a variety of solutions for sellers looking to sell fast and investors looking to grow their real estate investment portfolios for better returns. At David-Home Northeast, we are dedicated to improving and redeveloping the areas that we operate in. We specialize in helping sellers of distressed properties (single and multi-family homes, commercial, retail, bank REOs, etc.) find buyers looking to invest. Let us put our network of cash home buyers and private money lenders to work for you so you can say “David” to that old unwanted property.

  12. Avatar
    black mass says:

    I just like the valuable information you supply on your articles.

    I will bookmark your blog and test once more right here frequently.
    I am slightly sure I will be told many new stuff proper right here!
    Good luck for the following!

  13. Avatar
    have a peek at this web-site Tntdrama com/activate says:

    I have been exploring for a little bit for any high quality articles or weblog posts on this kind of space . Exploring in Yahoo I eventually stumbled upon this web site. Reading this information So i am happy to convey that I’ve an incredibly good uncanny feeling I discovered just what I needed. I such a lot definitely will make sure to do not put out of your mind this web site and provides it a look on a relentless basis.

  14. Avatar
    Normanzaji says:

    Hey would you mind letting me know which hosting company you’re utilizing? I’ve loaded your blog in 3 different web browsers and I must say this blog loads a lot quicker then most. Can you suggest a good internet hosting provider at a fair price? Thank you, I appreciate it!

  15. Avatar
    Loretarqir says:

    I have been surfing online more than 2 hours today, yet I never found any interesting article like yours. It is pretty worth enough for me. In my view, if all webmasters and bloggers made good content as you did, the web will be a lot more useful than ever before.

  16. Avatar
    toronto roofer says:

    We’re a group of volunteers and opening a new scheme in our community. Your web site provided us with valuable information to work on. You’ve done a formidable job and our whole community will be grateful to you.

  17. Avatar
    click here says:

    I have been browsing on-line greater than three hours today, yet I never discovered any fascinating article like yours. It is pretty value enough for me. In my opinion, if all webmasters and bloggers made excellent content as you probably did, the internet will probably be a lot more helpful than ever before.

  18. Avatar
    Silas Kearsley says:

    Hey there I am so delighted I found your blog page, I really found you by accident, while I was looking on Digg for something else, Anyways I am here now and would just like to say thanks a lot for a fantastic post and a all round exciting blog (I also love the theme/design), I don’t have time to go through it all at the minute but I have bookmarked it and also included your RSS feeds, so when I have time I will be back to read much more, Please do keep up the awesome job.

  19. Avatar
    click to read says:

    Magnificent goods from you, man. I have understand your stuff previous to and you’re just too magnificent. I really like what you have acquired here, certainly like what you are saying and the way in which you say it. You make it enjoyable and you still take care of to keep it smart. I can’t wait to read far more from you. This is actually a great site.

  20. Avatar
    he has a good point says:

    I have acquired some new issues from your website about computer systems. Another thing I’ve always presumed is that laptop computers have become an item that each home must have for many reasons. They provide convenient ways in which to organize households, pay bills, search for information, study, tune in to music and also watch tv programs. An innovative method to complete these types of tasks is by using a computer. These desktops are mobile, small, powerful and portable.

  21. Avatar
    taking lisinopril with sildenafil says:

    A remarkable share, I just offered this onto a colleague that was doing a little analysis on this. As well as he as a matter of fact acquired me morning meal since I discovered it for him. smile. So let me rephrase that: Thnx for the treat! However yeah Thnkx for spending the moment to review this, I feel highly concerning it as well as like finding out more on this topic. When possible, as you become proficiency, would certainly you mind updating your blog site with more information? It is highly valuable for me. Large thumb up for this blog post!

  22. Avatar
    jonathan manzi says:

    I am not sure the place you’re getting your info, but great topic. I needs to spend some time studying much more or working out more. Thank you for wonderful information I used to be looking for this info for my mission.

  23. Avatar
    click more says:

    I am very happy to read this. This is the kind of manual that needs to be given and not the accidental misinformation that’s at the other blogs. Appreciate your sharing this greatest doc.

  24. Avatar
    male sex doll says:

    Thank you for sharing excellent informations. Your web-site is very cool. I’m impressed by the details that you have on this website. It reveals how nicely you understand this subject. Bookmarked this website page, will come back for extra articles. You, my friend, ROCK! I found simply the information I already searched everywhere and simply couldn’t come across. What a perfect website.

  25. Avatar
    can i take flexeril with sildenafil says:

    After study a few of the blog posts on your website now, and I absolutely like your means of blog writing. I bookmarked it to my book mark site checklist and also will certainly be inspecting back quickly. Pls check out my web site too and also let me understand what you think.

  26. Avatar
    Malcomhfdd says:

    Heya i am for the first time here. I came across this board and I find It really useful & it helped me out a lot. I hope to give something back and help others like you aided me.

  27. Avatar
    click more says:

    Very interesting info !Perfect just what I was searching for! “Outside of a dog, a book is man’s best friend. Inside of a dog it’s too dark to read.” by Groucho Marx.

  28. Avatar
    Burtonfwrr says:

    Its like you read my mind! You seem to know so much approximately this, such as you wrote the e-book in it or something. I feel that you can do with a few p.c. to force the message house a little bit, however instead of that, this is great blog. A great read. I’ll certainly be back.

  29. Avatar
    topborn.com says:

    I am so happy to read this. This is the type of manual that needs to be given and not the random misinformation that is at the other blogs. Appreciate your sharing this best doc.

  30. Avatar
    Essay help says:

    This design is spectacular! You definitely know how to keep a reader amused. Between your wit and your videos, I was almost moved to start my own blog (well, almost…HaHa!) Fantastic job. I really enjoyed what you had to say, and more than that, how you presented it. Too cool!

  31. Avatar
    Lifeboost Coffee coupons says:

    I have recently started a blog, the information you provide on this web site has helped me greatly. Thanks for all of your time & work. “One of the greatest pains to human nature is the pain of a new idea.” by Walter Bagehot.

  32. Avatar
    cbd tinture for sale says:

    Aw, this was an actually wonderful article. In concept I wish to place in creating such as this furthermore? requiring time and also real initiative to make an excellent short article? yet what can I state? I procrastinate alot as well as by no means appear to obtain something done.

  33. Avatar
    see here how to activate spectrum mobile says:

    My spouse and i have been really thrilled when John could complete his reports with the ideas he gained while using the weblog. It is now and again perplexing to just choose to be offering thoughts the rest may have been trying to sell. We really already know we have got the writer to be grateful to for this. The explanations you have made, the straightforward site navigation, the relationships you will make it easier to promote – it’s got all unbelievable, and it is aiding our son and us imagine that this concept is satisfying, and that is wonderfully fundamental. Many thanks for all the pieces!

  34. Avatar
    Plus Size Babydolls says:

    Thank you for the sensible critique. Me & my neighbor were just preparing to do a little research on this. We got a grab a book from our area library but I think I learned more clear from this post. I’m very glad to see such great information being shared freely out there.

  35. Avatar
    Drusillavbgd says:

    I really like what you guys tend to be up too. This sort of clever work and exposure! Keep up the good works guys I’ve incorporated you guys to my personal blogroll.

  36. Avatar
    Inmon says:

    Nice post. I used to be checking continuously this blog and I’m impressed! Very useful information specifically the closing part :) I maintain such information much. I was seeking this certain information for a long time. Thank you and best of luck.

  37. Avatar
    Neckology neck massager says:

    I am really loving the theme/design of your blog. Do you ever run into any internet browser compatibility issues? A number of my blog visitors have complained about my blog not working correctly in Explorer but looks great in Safari. Do you have any tips to help fix this issue?

  38. Avatar
    Continue Reading says:

    I loved as much as you will receive carried out right here. The sketch is attractive, your authored material stylish. nonetheless, you command get got an shakiness over that you wish be delivering the following. unwell unquestionably come more formerly again since exactly the same nearly very often inside case you shield this increase.

  39. Avatar
    Try capillus laser cap says:

    Thanks for one’s marvelous posting! I genuinely enjoyed reading it, you may be a great author.I will be sure to bookmark your blog and will come back very soon. I want to encourage one to continue your great posts, have a nice afternoon!

  40. Avatar
    Clemente Oyston says:

    An interesting conversation is worth comment. I assume that you need to write extra on this topic, it may not be a taboo subject yet normally individuals are insufficient to speak on such subjects. To the following. Thanks

  41. Avatar
    Darnellfyzb says:

    It’s appropriate time to make some plans for the future and it is time to be happy. I’ve read this post and if I could I wish to suggest you some interesting things or advice. Perhaps you can write next articles referring to this article. I wish to read more things about it!

  42. Avatar
    club type beat says:

    A person necessarily lend a hand to make critically posts I’d state. That is the very first time I frequented your website page and up to now? I amazed with the analysis you made to make this particular post extraordinary. Wonderful activity!

  43. Avatar
    xvideos says:

    excellent submit, very informative. I’m wondering why the opposite specialists of this sector don’t realize this. You should proceed your writing. I’m confident, you’ve a huge readers’ base already!

  44. Avatar
    Neckology cost says:

    Greetings! I’ve been following your web site for a long time now and finally got the courage to go ahead and give you a shout out from Kingwood Tx! Just wanted to say keep up the excellent job!

Trackbacks & Pingbacks

  1. generic cialis cheap canada

    cialis cheap india

  2. buy viagra calgary

    WALCOME

  3. viagra where to buy in uk

    WALCOME

  4. http://www.jueriy.com

    Do We Really Know Our Financial Selves?

  5. viagra says:

    viagra

    Do We Really Know Our Financial Selves?

  6. where do we buy viagra

    WALCOME

  7. viagra 100mg says:

    viagra 100mg

    Do We Really Know Our Financial Selves?

  8. low cost canadian viagra

    Do We Really Know Our Financial Selves?

  9. buy viagra canada

    WALCOME

  10. buy generic viagra no prescription

    Do We Really Know Our Financial Selves?

  11. cheapest generic viagra

    WALCOME

  12. buy viagra on line

    WALCOME

  13. buy cialis online

    WALCOME

  14. viagra for men

    WALCOME

  15. when to take viagra

    WALCOME

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published.