Bias is an inclination of temperament or outlook, a personal and sometimes unreasoned judgment, according to the Merriam Webster dictionary. It is generally considered a negative trait and something to ideally overcome. In an investing context, however, biases are not always bad.
"There are people who fund their future but don't fund their present in the form of emergency cash," Maurer explained. "Then a job loss or a family emergency forces them to access retirement funds at an inopportune time.Taking care of the present is particularly important for people in or near retirement.
Maurer has been a financial advisor for 25 years. He is a believer in diversified investment portfolios and sticking to a financial plan. However, if market volatility is a source of high anxiety for someone, he's not against making changes to a portfolio.
Watching a news channel for ways to manage your stress is like going to a bar to cure your drinking problem.
1. Stop listening to what the TV says you should do.
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