As we go through life there are certain milestones that we encounter – leaving the home, marriage, having children, job transitions, divorce, retirement, death of a loved one. These events carry with them a lot of emotions – and some such as death and divorce create major stress in our lives.
Even when things are smooth, investing is prone to misconception and biases as Amos Tversky and Daniel Kahneman, the founders of Behavioral Finance, show. In times of emotional distress these biases increase our chances of making costly mistakes.
That’s why when transition happens, it is paramount to keep your financial well being in mind. Review your situation, goals and horizons. Review insurance needs and coverage. These times are the reason why a trusted advisor on your side is invaluable – helping you set realistic goals and keeping your financial well being centered – and taking away some of the stress you are experiencing.
So the Fed finally acknowledged that the inflation is higher and more persistent than what they were trying to convince us all this time. Perhaps