Personal Financial Advice In Tucson-www.75zzz.com

Personal-Finance Professional Wealth Strategies in Tucson wants to give you personal financial advice that will help you work past fear. A big aspect of fear that affects investors is the fear of losing it all. It is more painful to unexpectedly lose 40-70% of your net worth than it is to fall short of your long-term financial goals. The fear of losing was demonstrated in a study by Kahneman and Tversky in which a group of people were told to imagine they had $300. They had a choice between receiving another $100 and tossing a coin. If they won the coin toss, they would receive an additional $200, if they lost, they wouldn’t receive any additional cash. It’s not surprising that almost everyone chose the first option. A bird in the hand is worth two in the bush. Another study was conducted in which a group of people were told that they had $500. They were given a choice between giving back $100 and tossing a coin. If they lost the coin toss, they would have to pay back $200, but if they won, they didn’t have to give anything back. Most people chose to flip the coin. Probability analysts know that all of the given choices are actually equal because they all yield an expected outcome of $400. Mathematically that may be true, but human nature prefers some choices over others. We hate losing. When faced with a loss, we are willing to gamble. However, when it comes to gains, the opposite is true. That is why hardly any people take profits when the market is on the rise, but most will sell when it is going down. The educated investor does not let the fear of losing control their investments. They know that it is occasionally better to endure a procession of small losses for the prospective of ultimate gain. Professional Wealth Strategies, 3573 East Sunrise Drive, Suite 119, Tucson, Arizona 85718, (520) 529-3644. Securities and Advisory Services offered through Commonwealth Financial Network, .FINRA.org/.SIPC.org, a Registered Investment Adviser. This .munication is strictly intended for individuals residing in the states of AZ,CA,CT,HI,MI,OH,OR,TX,UT,VA,WA. No offers may be made or accepted from any resident outside these states due to various state regulations and registration requirements regarding investment products and services. About the Author: 相关的主题文章:

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