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Investment Strategy and Avoiding Emotional Interference

Plan Ahead to Overcome Emotional Reactions that Can Skew Prudent Investment Strategy

By Kathy Longo, CFP®, CAP®, CDFA
Wednesday, 06 October 2021

Investment Strategy and Avoiding Emotional Interference

I write a lot about the interconnectedness of money and emotions, and I also talk about it frequently on my Flourish Financially podcast. That’s because we humans are emotional creatures, and our feelings can have a tremendous impact on our behavior. Of course, that includes financial decision-making, which permeates many aspects of our lives. When it comes to investing, in particular, the natural highs and lows of the stock market can have emotional effects. If we’re not careful, these emotions can inhibit our ability to make sound financial judgments. In fact, many poor investment decisions have been made by investors who became too emotional and let their behavioral biases overrun their rational thoughts.

For this reason, it’s crucial to understand how emotion can interfere with your investment success. We all go through life with various ups and downs and hiccups along the way. This can cause fear and uncertainty – both fertile fields for emotional financial decision-making.

Below we will discuss three emotional biases that can wreak havoc on your investment strategy – if you let them.

8 Ways to Bounce Back When Divorce Damages Your Finances

How to Find Firm Financial Footing After Your Marriage Has Ended

By Kathy Longo, CFP®, CAP®, CDFA
Monday, 27 September 2021

8 Ways to Bounce Back When Divorce Damages Your Finances

While none of us head into marriage expecting a divorce, it’s an unfortunate truth that for many marriages divorce is the outcome. Divorce can lead to a complete upheaval of your life, impacting your personal life, your emotional well-being, your physical well-being, and, especially, your finances. For most people, coping with life after a divorce is one of the most difficult challenges they will go through. However, if you’re in the unfortunate position of leaving the divorce with limited or no funds, rebuilding a new life may seem nearly impossible.

If divorce has ruined your financial plans, thrown you off track, and made you feel like life is spinning out of control, know that it doesn’t have to be like that forever. Life is transient; it’s all about rolling with the punches and getting back up after tough falls. One of the most crucial parts of taking back control of your life is to come to terms with your new financial situation. This is especially true if you were in a relationship where you heavily depended on your spouse for your financial support. So, if you’re coming out of a divorce and struggling financially, try incorporating these eight steps into your money strategy to get yourself back on firm financial footing.

How the Wage Gap Impacts Women’s Retirement (And Tips to Overcome It)

Finding Ways to Develop a Successful Retirement Plan Despite the Odds

By Kathy Longo, CFP®, CAP®, CDFA
Monday, 13 September 2021

How the Wage Gap Impacts Women’s Retirement (And Tips to Overcome It)

When it comes to retirement savings, women are at a disadvantage compared to their male counterparts. From the impact of the gender wage gap compounding over a lifetime, to caregiving responsibilities, divorce implications, and more, women often make and save less money than men. Yet, the data shows that they outlive men and are much more likely to end up widowed. When all that combines, the reality for many women is that their typically smaller savings for retirement must cover a longer timeframe. 

Work-Life Balance Strategies for Female Entrepreneurs

Six Tips to Excel Personally and Professionally

By Kathy Longo, CFP®, CAP®, CDFA
Monday, 30 August 2021

Work-Life Balance Strategies for Female Entrepreneurs

Over the past decade, more and more women have found a new and commanding role in the workforce: the entrepreneur. In fact, women-owned businesses account for 40 percent of all U.S. businesses, and they generate nearly $2 trillion a year in sales. While there has been a considerable shift in the numbers surrounding female entrepreneurship, which increased by 58 percent from 2007 to 2018, the social and domestic responsibilities traditionally placed on women haven’t changed much at all.

Female entrepreneurs face all the same challenges as their male counterparts - and more. In addition to being successful in business, they also shoulder the societal expectations placed on them as females, bearing the brunt of housework and childcare. What’s more, women also take on most of the invisible work or the mental workload that comes with managing the logistics of the family, including making appointments, organizing schedules, remembering birthdays, planning meals, maintaining ties with extended family members, and much more.

While the conversation around work-life balance unveils a host of gender inequality issues, the truth is women aren’t slowing down in the office or at home despite the unequal workload. The tips below offer options to take a step back and evaluate how best to approach the many roles in which female entrepreneurs find themselves to find some balance and peace of mind.

Portfolio with a Purpose: The Benefits of ESG Investing

Making an Impact with Your Investments By Kathy Longo, CFP®, CAP®, CDFA

Monday, 16 August 2021

Portfolio with a Purpose: The Benefits of ESG Investing

There’s a growing trend among those who are interested in making a positive impact on their portfolio – and the environment and society around them. To accomplish these dual goals, which were often considered to be at odds with each other in the past, many savvy investors are actively seeking Socially Responsible Investments (SRI) and Environmental, Social and Governance Criteria (ESG) investments when making investment decisions.

Over the past two decades, more individuals have been pursuing opportunities for socially responsible or mission-related investing, which was previously only available to large institutions. As concerns surrounding the environment, sustainability, and data privacy have grown, so has an interest in ESG investing.

Aligning your values and financial goals allows you to make investment gains and, because you are simultaneously supporting causes that are close to your heart, you’ll feel good about those investments in more ways than one. Below, we’ll discuss how you can build a portfolio with a purpose.

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