Step Ten: Troubleshooting, A User’s Guide

This last section acts as a troubleshooter’s guide in the kind of investor you are. We will discuss numerous topics on how investors fall prey to loss aversion, narrow framing, and anchoring. We will look at the effect of diversification, herding and regret, the influences of the media and the possibility of misplaced optimism. Our discussion on risk will conclude with a look at the wide variety available, often hidden, inside our retirement plans and the investments we use to achieve those goals.