Jeff Brown in NewJersey.com provides three tips he says are derived from Freud’s psychoanalysis that investors can use to overcome their in-built psychological flaws:
- By knowing they are there. And by stoking their egos another way.
- Feel superior by playing the odds rationally: Put the same amount of new money into your investments every month. Divide it according to a standard asset allocation model for someone your age, such as 60 percent stocks, 30 percent bonds and 10 percent cash.
- Emphasize a set of low-fee, tax-friendly index-style mutual funds that try to match the market rather than beat it.
- And stick with the program for the long haul.”
Read the entire article at NorthJersey.com
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