You and Your Biases: The Blind Spot Bias Within
August 17, 2018 — I continue today with my periodic review of investors’ most dangerous instinct-driven biases. Today, I want to talk about blind spot bias. It’s perhaps the biggest bias around, because it explains why we still fall for all the rest of them (such as recency and familiarity, where we favor people, places and events that are more recent or familiar to us) even once we’ve learned how they trick us.
Target Date Funds: Simple May Not Be Ideal
August 3, 2018—Employers are increasingly offering Target Date Funds (TDFs), in their company retirement plans. I understand their appeal. TDFs manage themselves and are easy to understand. They’re turnkey portfolios that start with a prefab mix of stocks, bonds and cash; they then automatically shift toward an increasingly conservative, 20% stock/80% bond & cash “target” allocation by a particular year.
Frustrating Phone Scams and Financial Fraud
July 20, 2018—For better or worse, most people who fall victim to phone scams, identity theft or other financial fraud don’t broadcast the news; it’s painful and embarrassing, so they confide only in close friends and family.