Commentary: A recent white paper titled The Silent Value: Advice for the 21st Century describes the challenges most of us face when attempting to make good financial decisions. Using the science of neuroeconomics (a combination of economics, neuroscience and psychology) the authors state that many of us hamstring ourselves by maintaining various bias’ and emotional connections which end up resulting in bad investment decision-making.
The white-paper shared the neuroeconomic tendencies outlined below that lead to poor individual financial decisions. I have added suggestions on how to overcome these biases with your 401(k) participants.
