Making Financial Decisions

Updated 8 months ago

I have a degree in Business with a concentration in Finance, so I am equipped to understand the world of investing, but I also want to help clients feel good about the process of creating their financial plan. To help me do that part of my job better I study books on decision-making. In the Paradox of Choice author Barry Schwartz explains that there are several stumbling blocks to making good decisions. Some of them we control, some is the result of too much choice.MaximizersVs.SatisfiersMaximizers vs. Satisfiers- There are two basic kinds of decisions makers. Maximizers are those of us who want the perfect, only the best choice in their decision. They are plagued by fears that they have not seen all there is to see so they cannot have seen the ‘right’ choice yet. When they finally make a decision they fret and worry that there were better choices out in the world they have missed so even after their decision they are depressed and dissatisfied.Satisfiers have high standards in their decision-making but they believe that their choice is a good one and they let any belief in what else might have been purchased or decided upon, slip away and they rejoice in their choice.The paradox Schwartz refers to in the title is that when we are presented with 6 choices, 30% of people can make a decision and follow through on their choice. But when we are faced with 24 choices of an item, like chocolate, only 3% of people buy. The ‘freedom of choice’ is many times a tie that binds.Why discuss this in a finance section? Investment decision are critical to your retirement future and the book explains how folks decide – very unscientifically- for their investment plans. Overwhelmed and trying to do what is ‘right’ people put a small amount in each investment choice. That wasn’t the reasoning in offering those options. Doing nothing because you are overwhelmed is another common thing I see as an advisor. Decide today to seek help and partner with an advisor who will wisely assist you in planning you financial future. Marion R. Syversen, MBA – PresidentNorumbegaFinancial207.862.2952Marion@NorumbegaFinancial.com Check out our website that includes weekly streaming videosWWW.NorumbegaFinancial.com Voted Bangor’s Best Financial Planning Firm 2009 by Market Surveys of AmericaIn compliance with requirements from FINRA, all e-mail sent via the WSFG domain will be subject to review and archiving by Wall Street Financial Group, Inc. Email management, archiving & monitoring technology powered by Smarsh, Inc. Disclosure: Only securities and advisory services offered through Wall Street Financial Group, Inc.(WSFG). Registered Investment Advisor. Member FINRA/SIPC. Norumbega Financial, WSFG and all other individuals mentioned are separate entities: they are independently owned and operated. Opinions expressed are those of the author and not necessarily those of WSFG.


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