Investorideas.com – big ideas for global investors Search www.investorideas.com
   Member Access       Sign-up       Newsfeeds        Companies        Stock Directories       Research       Video       Funding   




How to Keep Your Emotions from Dictating Your Financial Future

4 Tips from World-Renowned Financial Advisor

Ideas get bigger when you share them...

March 7, 2014 (www.investorideas.com newswire) You've probably heard of emotional eating, but financial advisor Matthew T. Shafer says emotional investing is a problem that needs to be recognized society-wide, especially since the economy has been in such sharp focus this past half decade.

Join Investor Ideas Members to access the Renewable Energy stocks directory, water stocks, biotech stocks, defense stocks directories and the Insiders Corner

"The words of an experienced mentor have proven to be spot on throughout my career; he said that no matter how smart they are, most people don't know what to do with their money," says Shafer, named one of the top 1,000 financial advisors in the U.S. by Barron's Magazine.

"It wasn't that people were ignorant, and it wasn't that they were incapable of analyzing investment opportunities. The challenge occurred when emotion clouded their judgment."

People become too optimistic and enthusiastic when their investments are on the rise, and too fearful and skeptical when they see a decline, he says. This holds true for all income levels, says Shafer, author of "The Future of Your Wealth," (http://mattshafer.us/).

He offers tips for avoiding what he calls the No.1 detriment to your financial well-being.

  • Create a buffer of expertise. It's impossible to completely separate your emotions from your finances. But you can create distance between them by putting experts in the middle. "During the financial crisis, I had a number of clients who would have made painful mistakes if I hadn't helped them manage their emotions," he says.
  • Sometimes, you have to do the tough thing. Financial advisors, too, experience emotional responses to market crashes and other startling events. That's why it's tough to exercise discipline, and caution against over investing assets that are hot. Why? For the same reason buying a home during the peak of the real estate market turned out to be a poor decision – because bubbles burst. Similarly, after housing prices have crashed – that's the best time to invest in property.
  • Build your knowledge; it breeds confidence and prevents panic. "The more I can educate clients about how markets work, and the cycles that they go through, and what is going on now, the more confidence I believe those clients will have in their investment strategy," Shafer says. On the other side of the spectrum, people tend to get more emotional about things they don't completely understand "—I think that's basic human nature," he says.
  • Don't let malaise dominate your future; embrace optimism where you can. Today, I believe the number one emotion that clouds the future is pessimism. Even though we're coming out of the Great Recession and things are starting to improve, a lot of people are still scarred by their experiences of the past decade, fearful that our world has permanently changed and we face insurmountable problems. Excessive pessimism is just as detrimental to your future wealth as too much optimism; balance and objectivity based on solid information will serve you best.

About Matthew T. Shafer

Matthew T. Shafer, author of "The Future of Your Wealth," (http://mattshafer.us/), is a graduate of American University, where he obtained Bachelor of Arts and Master of Arts degrees in economics, with a concentration in International Financial Markets. In 2005, Matthew attended the Haas School of Business at the University of California, Berkley, where he obtained the title of Certified Investment Management Analyst (CIMA®) and joined the Investment Management Consultants Association (IMCA). He has been named one of the top 1,000 Financial Advisors in the U.S. by Barron's Magazine (2009) and has received several national recognitions, including "Premier Advisor" by the National Association of Board Certified Advisory Practices (2012).

If you would like to run the above article, please feel free to do so. I am able to provide images if you would like some to accompany it. If you're interested in interviewing Matt Shafer or having him write an exclusive article for you, let me know and I'll gladly work out details. Lastly, please let me know if you'd be interested in receiving a copy of his book, The Future of Your Wealth, for possible review.

Ginny Grimsley
National Print Campaign Manager
News and Experts
3748 Turman Loop #101
Wesley Chapel, FL 33544
Tel: 727-443-7115, Extension 207
Twitter: @PrintcessGinny
www.newsandexperts.com

More Info:

This news is published on the Investorideas.com Newswire and its syndicated partner network

Publish Your News - Send a release
News now!

Get free news alerts: Sign up here

Published at the Investorideas.com Newswire - Big ideas for Global Investors

Disclaimer/ Disclosure:The Investorideas.com newswire is a third party publisher of news and research as well as creates original content as a news source. Original content created by investorideas is protected by copyright laws other than syndication rights. Investorideas is a news source on Google news and Linkedintoday plus hundreds of syndication partners. Our site does not make recommendations for purchases or sale of stocks or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investment involves risk and possible loss of investment. This site is currently compensated by featured companies, news submissions, content marketing and online advertising. Contact each company directly for press release questions. Disclosure is posted on each release if required but otherwise the news was not compensated for and is published for the sole interest of our readers. More disclaimer info: http://www.investorideas.com/About/Disclaimer.asp

BC Residents and Investor Disclaimer : Effective September 15 2008 - all BC investors should review all OTC and Pink sheet listed companies for adherence in new disclosure filings and filing appropriate documents with Sedar. Read for more info: http://www.bcsc.bc.ca/release.aspx?id=6894. Global investors must adhere to regulations of each country.



Free News Alerts
Email:  

Read more News





TOP

Investor Ideas © 2000 - 2014 InvestorIdeas.com®, ECON

Free Investor Stock Alerts
Sign up here

login | logout | about us | contact | disclaimer / disclosure |
advertise | company profile directory | partners / links |
job search | privacy policy | trade | services | sitemap |