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The Behavior Gap: Simple Ways to Stop Doing Dumb Things with Money (Your Coach in a Box) Audio CD – Audiobook, CD
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About the Author
independent advisors. He contributes to the Bucks blog at The New York Times and is a columnist for Morningstar Advisor. Richards appears regularly on National Public Radio's Marketplace Money, and is a frequent keynote speaker at financial planning conferences and visual learning events. You can find more of his work at BehaviorGap.com. He lives in Park City, Utah, with his family.
Top Customer Reviews
|Length: 2:21 Mins|
This is a good book for both the consumer and the financial planner. I think a lot of financial advisors tend to get caught up in the nuances of financial planning such as getting a higher interest rate or saving the maximum amount on taxes, but it is really behavior that challenges most people with their money.
People usually know what to do with their money, but they don't always do it. This book addresses those topics and is an important contribution to both the public and the financial planning community.
In full disclosure, I received an advance copy, but I did not know the author prior to reading the book. I highly recommend it.
Also, while I did not expect to receive actual financial advice (where to put money, how much, etc), I felt that the author could have used more examples of what he typically recommends to his clients in specific areas (not just, "move out of stocks" or "invest in bonds") for those of us who are new to the process of saving.
Overall, a good book for the thought concepts that one can appreciate when it comes to finances.
Here are my notes from the book:
1. Cycles and other factors do cause markets to go to ‘inefficient’ high and low extremes.
2. Stocks should be treated as potentially useful, but also dangerous. And increased potential upside does generally come with increased risks (but the converse isn't true: higher risk doesn't always mean increased potential upside).
3. In the long run, the vast majority of people who attempt market timing do worse than the markets, and we shouldn’t fall prey to the hope that we can rely on others to make such predictions. So it’s best to formulate an approach which will likely work well long-term regardless of how markets fluctuate in the short and intermediate terms, since the long-term trend is up; but this does assume that the future will repeat the past in the long-term, whereas there have been bear markets of more than a year in the past, so 'riding out' long bear markets can be a painful process which wouldn't be a good situation for people nearing retirement or already retired.
4. The most effective investors are moderate and humble rather than overconfident, and recognize their inability to reliably make accurate predictions. In fact, people with the highest proportion of accurate extreme forecasts tend to do worse overall.Read more ›
When my golf game goes astray, I visit my local pro to seek advice. Guess what? He doesn't suggest new expensive clubs or improved golf balls, no! he checks my fundamentals...stance, grip, muscle tension, etc. All very basic fundamentals! It is no different in managing your money. Just the basics and keep it simple.
Managing your financial affairs is nothing more than using common sense and the avoidance of emotional decisions. After living nearly 75 years, I have to say that I practice most of what Carl Richards has to say. However, many of his suggestions I have had to learn the hard way and sometimes these lessons were very expensive. The 2000 stock bubble was a very expensive lesson for me. On the other hand, the 2011 stock market dip of nearly 19% was very profitable, because of the lesson I learned in 2000.
I recommend this book to anyone who thinks they can do a better job in managing their money. I think it will be especially beneficial for young people just starting to bear the responsibilities of managing their own financial affairs. Perhaps some expensive mistakes can be avoided.
The only negatives I have about the book are that I think it is a bit pricey (I always seek value) considering that it is a compilation of the author's past New York Times articles in the Your Money Section. I also think that some of the napkin sketches don't make any sense relative to the point the author tries to make, however I don't consider this a major flaw. I would consider giving a copy of this book to family members as a Christmas gift if it wasn't so expensive.
Most Recent Customer Reviews
Great read regarding the psychological profiles of people and investments. I recommend to anyone in the financial services business who is on the front lines meeting with clients. Read morePublished 2 months ago by KHoss
This was good, exactly what I needed to "hang in there" on my investments in spite of terrible market conditions. I believe this captures the important issues.Published 6 months ago by missy
Makes you think about what really drives your decisions, and how to make better decisions. A well written and easy to read bookPublished 11 months ago by Artephius (.
Not a lot of specific advice. I have other books with more detailed plans that i like better.Published 13 months ago by Mama Link
Although this book is short,there is some valuable information concerning investing but more importantly, knowing what's important in life. Read morePublished 14 months ago by nick s
In plain simple English, the author shows how we chase money and make awful decisions time after time after time. Read morePublished 16 months ago by Laurie Radheshwar