April 12, 2016

Our Blind Spots Cut Retirement Savings

"Our personal biases can play havoc with how we handle our finances.
Two such biases have long been suspected as obstacles to saving for retirement. The first is a tendency to procrastinate on decisions that may benefit an individual in the long run, but also involve short-term costs, like saving for retirement – economists call this 'present bias.'
The second bias is a failure to perceive the power of compounding investment returns and how this can build wealth over decades of saving." Read more about "present bias" at http://squaredawayblog.bc.edu/squared-away/our-blind-spots-cut-retirement-savings/

No comments:

Post a Comment

Financial Planning for Women does not sell, rent, loan, lease or otherwise provide any personal information collected at our site to any third parties.