Blog
Investor Psychology
Article by Lynn Phillips-Gaines
(Published on July 4, 2021, in Starkville Daily News)
When I hear that one of the most conservative CPAs in the Golden Triangle is making stock recommendations to his buddies, I know the market is flying high. When skittish investors are stock experts, it is one of the telltale signs of a possible market peak.
What is old is new again. The issues which we had to plan around for clients in the 1980s are circling back. The three challenges impacting financial independence are increased taxation, increased inflation, and the reluctance to get serious about a bonified investment plan.
It is hard to take these issues seriously unless you have lived through these times. According to Morgan Housel in The Psychology of Money, your investment behavior develops through your experiences during adolescence or early adulthood.
Interestingly, people from different generations, born into other economies, different families in different geographical regions, learn very different lessons about investing. And, behavior psychology tells us that what you experience is more compelling than what you learn second-hand. Your personal experiences with money are tiny relative to what happens in the world of finance; however, part of what happens in the world will constitute 80% of how you think the world works. Thus, “experts” differ widely in explaining what is happening in the world of finance.
See below for the full article that was published in the Starkville Daily News.
Sharon Grace, DVM is an excellent example of the good stewards we work with giving back to the community!
Initially launched by Dr. Grace in 2008, the MSU CVM-based Safe Haven for Pets program was recently awarded a generous donation to continue its efforts and expand its reach. Safe Haven for Pets offers shelter and often much-needed care to pets of domestic abuse victims seeking refuge at select domestic violence shelters, at no cost to the victims.
To date, the program has provided 3,000 days of shelter for pets of fifty families.
To read more about this worthy cause, click here: Safe Haven for Pets (Miss State) 2020
Lynn Phillips-Gaines, CERTIFIED FINANCIAL PLANNER™ Professional, of Phillips Financial was recently named to multiple national top financial advisors lists. These are prestigious national rankings that spotlight elite advisors across the country who were nominated by their firms – and then researched, interviewed, and selected to receive the honor. Those honors include:
- Forbes 2020 Best-in-State Wealth Advisors* (third consecutive year)
- Forbes 2020 Top 200 Women Wealth Advisors** (fourth consecutive year)
- Barron’s 2020 Top 1200 Financial Advisors List*** (fifth consecutive year and includes recognition in The Wall Street Journal)
Career milestones such as these would not be possible without continued trust and support by the clients her team serves.
Phillips-Gaines joined the financial services industry in 1982, opened her own practice in 1984, has nearly forty years of experience, and manages over $200Million in client assets.
Part of providing financial planning is understanding our client’s financial personality and using that to adapt how we explain concepts and make decisions together based on their needs.
We found this article interesting that discussed the different financial personality types. Which is yours?