Quote:
Originally Posted by Tom M
As much as people want to be analytical about money, the truth is that money evokes emotional responses. That's the key.
The good news is that most people are great at rationalization and will end up being happy with the choice they made.
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The definition of behavioral finance.
However, by exposing the hidden biases, with financial education, one can potentially see the benefit of different options on their lifestyle.
But not always. CFP had constantly recommended to my dad to gift money from this estate prior to his death for estate tax, usefullness and control reasons. My dad could not do it, did not see or understand the benefit, as he was a depression era engineer with physics approach. his response was largely a depression generational response and partly a personality type bias. Concepts and abstract future were incomprehensible to him. ie, I put up his mailbox without taking measurements, and he did not like that at all. . . measurements assured him of his process were correct.
So totally agree with Tom M, which is why when posting on an open global forum, one has to accept the debaters, the lawyers, and the common knowledge statements. Good read:
Amazon.com