In my last article on kids & Money we saw that it is very important to teach our kids about money. We also saw that financial education that we need to give our kids can be divided into two parts : 1) Practical Aspect of Money. 2) Philosophical Aspect of Money. Now let us see …
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While reading the title of the article “Kids & Money” you must have a question that what is the relationship between kids & money? or why kids have to learn money matters ? It’s we adults who have to deal with money matters and need to understand and learn better money management techniques. My answer …
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Retirement Planning : Facts & Figures with Case Study. In my last article I discussed about the importance of Retirement Planning, in this issue I would like to discuss on how to plan your retirement. So here I would like to help readers with some numbers. For that here below I am discussing two illustrations …
Retirement planning is one of the most important part of total financial planning of an individual. Retirement years are the beautiful years of life. After taking his education when an individual starts his working life, he is burdened with lots of different responsibilities in his life. But retirement years are the years when one can …
One of my friends is working in an engineering company at senior management level. 60% of his personal investment portfolio consists of his employer company shares. When, I ask him why he is buying so many shares of his employer’s company. He always gives me details of performance and future plans of his company. When …
Continue reading ‘Availability Bias in Investing : How it affects your Financial Decisions?’ »
On 8th of Nov. 2016, When Govt. Of India took a strong step to demonetize 500 & 1000 rupee currency notes, Nifty 50 which is one of the most important indices of National Stock Exchange and looked as a benchmark index to see markets of our country was trading at 8500. It was like an …
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If I ask you to recall name of 10 people you met this month, whom do you recall? Just observe, mostly you will recall name of 10 people whom you mate recently. This is recency effect. Similarly, if I ask you for opinion on behaviour or performance of any of your colleagues or employees kindly …
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Recently me & my wife were sitting idle at home so we planned to watch a movie. Bought the tickets online and went to watch the movie. In first 20 minutes we realized that the movie was boring and it was waste of time. I told my wife, let us move out and go for …
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In my last article I wrote about what is Anchoring Bias and we also saw few examples of anchoring Bias. Now this month I would like to throw some light on how it affects our investment decisions and How to get out of Anchoring Bias? How Anchoring Bias affects our investment decisions? Anchoring is basically …
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Anchoring Bias in Decision Making: In my last article we saw that while taking our financial decisions mostly we react emotionally. We also discussed left brain: right brain theory as well as System 1 and system 2 theory given by Danial Kahneman. In this article I want to discuss Anchoring Bias which affects our decision …
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