Planning & Monitoring: The Obvious Wealth Factor We Love to Ignore

In pop psychology and social media, there seems to be more interest in money personality than in financial behaviors when it comes to talking about the things that will have the greatest impact on how successful we are at accumulating wealth. Who doesn’t love a one-question quiz that asks you about your favorite color and then gives you a report telling you you’re a terrible investor because you like magenta? Tests like the Myers-Briggs Type Indicator[…]

The Commoditization of Portfolio Returns: What’s a Financial Advisor To Do?

We have an operating theory here at DataPoints that goes like this: portfolio returns are being commoditized for the vast majority of retail investors–either by robo-style services or index strategies, or both–and that this large swath of the population will be willing to pay less for the (likely illusory) promise of market-beating portfolio returns from their would-be financial advisors. This development will in turn put pressure on the financial services industry in general and financial[…]

Identifying and Guiding Investor Behaviors with the Investor Profile

Working with an advisor can add incrementally to your portfolio, according to Vanguard’s Advisor Alpha study. Half of the contribution is through behavioral guidance – helping clients make better decisions regardless of market decisions, guiding them to ignore the herds, and mentoring them to stick to a plan. These findings beg the question: if we added a framework to the guidance that advisors provide, would these benefits increase? To create a better mousetrap of understanding investor[…]

Building Wealth: The Magic of Focus

The state of flow from a psychological perspective is when you are completely engrossed in a task and are able to work or create in a productive way. It requires removing all distractions and being in a state of deep concentration. You hear about flow when someone shares that she wrote a book in four weeks, or maybe spent 14 uninterrupted hours creating a sculpture. It’s almost superhuman, but it can happen when you work[…]