Studies have shown that people experience the same level of emotional pain when losing money as they do when experiencing physical pain. Therefore, managing emotions around finances is crucial for making sound investment decisions and achieving financial success.

In this episode, Nicole speaks with Will Howson, CFP®, CPFA about managing our emotions when discussing finances. Will highlights the significance of both traditional and behavioral finance in investment decisions, emphasizing the importance of education and sticking to an investment plan. He also discusses how positive emotions around finances can impact investment decisions and how to identify common biases such as loss aversion, recency bias, and analysis paralysis.

Will discusses: 

• The difference between traditional finance and behavioral finance
  
• The importance of both education about investing and sticking to your investment plan
  
• How positive emotions around finances can interfere with investment decisions just as much as negative emotions
  
• What loss aversion, recency bias, and analysis paralysis are, and how to identify them in someone’s investment patterns
  
• Some of the common mistakes he helps their clients avoid
  
• And more
  

Resources:

• Everything You Need To Know About Private Vista With Nicole Romito (Ep. 1)
  
• DALBAR Quantitative Analysis of Investor Behavior (QAIB) Index
  
• DALBAR.com
  
• Vanguard Advisor® Alpha
  
• Investopedia: Loss Aversion
  
• Investopedia: Recency Bias
  
• Investopedia: Analysis Paralysis 
  

Connect with Nicole Romito: 

• LinkedIn: Nicole Romito
  
• MyPrivateVista.com
  
• info@myprivatevista.com
  
• Call: 312-831-4370
  

Connect with Will Howson:

• Linkedin: Will Howson
  
• MyPrivateVista.com: Will Howson
  

About our Guest: 

Will Howson, CFP ®, CPFA is a financial advisor at My Private Vista, based in Chicago. After training at a large asset management firm on the East Coast, he returned home to Chicago as an advisor at a wealth management company, specializing in investment management, financial planning, and qualified plan consulting. Will’s impressive achievements include creating an educational curriculum for institutional and individual clients, showcasing his expertise and dedication to his clients’ success. He is passionate about helping people achieve their life goals and enjoys working with colleagues who share that same enthusiasm at Private Vista.