If you search the net for some of the basic things you need for a retirement planning tool, well I guess there are a lot of them that you can find. Some of them are very convincing in the first place because of its marketing strategy but if you dig it deeper then you?ll realize that still they?re doubtful for you. There are others that are biased because they?re not based on the actual cases or maybe they?re just there to fill you up for your hunger to invest for something that you think you can have in the future.
Having said that, assumptions are good but not to the extent that the obvious ones are still considered to be assumed. All are expert in giving advises and tips but the questions is do they really know what will happen in the next ten or fifteen years in the future? There are things that you should need to avoid and these things are very common but you only have it known a little in your whole life.
The other exciting subject with reference to this area of interest. The first known form of bias in retirement planning plan is known as ?anchoring?. By the name itself you?re aware that it?s not good to be trapped by it. Anchoring is simply being captured or having the tendency to stick unto one information of fact that we can discover lately in our research for the best retirement plan portfolio. This will later on affect our decision making skills because we?re only given a single or shall we say a couple number of examples that will make us anchor ourselves to only a single point of view.
BalanceZone Investing Frequent Question 7: Why is it that when I compare BalanceZone?s Skill Builder results with hypothetical illustrations from several different investment firms, these hypothetical?
The next one is the ?Confirmation Bias?. This is the tendency of a certain person to search or to interpret further the information that was fed to us initially ever since we?re anchored for something. From this better options or solutions to our problems are lately disproved because of our initial belief of the previous one. We tend to eradicate the ones that are best for us. It?s very dangerous for our side if we?re fed wrong inputs even from the start because this will affect the next steps that we?re going to tackle. This will be accompanied sometimes by the term known as the wishful thinking because all you have to find out in the next part are the ones that we think that satisfies or the pleases our own way of thinking.
The next one is the ?Optimism Bias?. Being optimistic is not that bad at all as long as you can balanced it out with other options you have in hand. The critical part of being optimistic is when you become too focused on the higher side of your investment without looking now the tendency of the lower part to arise if not well handled.
The most common problem also that we?re almost all of the time facing is the tendency to become slave of money or what they called as ?Money Illusion?. This kind of thinking or behavior is very dangerous also because we?ll have the tendency to look money only at its nominal value only. We now forget to look the capacity or the power of money to have the power to purchase. Thus we?ll have the tendency also now to think an outcome that?s always positive.
Tools for financial retirement planning are good, but be sure to have experts or advisers along with you for you to be guided accordingly and for you to stay on the right track until the end.
Lam Bong is an Author living in Sydney, Australia. He?s interested in reading and creating websites. His latest website is about diabetes food list and finding the best r diet list for diabetes on the web today.
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