How Overconfidence Can Lead to Financial Destruction

The Bird’s Eye View:

Overconfidence in your financial life can sometimes lead to destruction. Find out if any of these examples apply to you and why you can’t put too much confidence in any of these planning areas.

Your Guide:

On this episode of Your Retirement Elevated podcast with Scott Dougan, we’re sharing some ways overconfidence in your financial life can cause problems for you. 

Overconfidence in the stock market

When the market is doing well, sometimes we can become overconfident and think it will last forever. As always, the markets will correct. They take a deep breath, and they continue marching on.

Overconfidence in your ability to manage your portfolio

You want to invest in quality companies that you can feel confident about. The emotional side is the toughest part to manage.

If you looked at the fee we charge to help our clients, about 20% of that fee goes to the selection and management of assets. The other 80% is keeping our clients on track to achieve their goals.

You want to have a professional in your corner to keep you from making bad decisions. We can help you create a plan, even during tough times.

Overconfidence in a certain amount of money

Some people think, “Once I get to $1 million dollars, then I can retire.” The problem with that is $1 million is just a goal. Will it actually deliver the income you want to live the life you want?

You might find out that $1 million won’t give you all you want. On the other hand, you might realize you don’t need $1 million.

There are a couple of other items we’ll run through on the show so make sure you check out the full episode. If you are worried about your own overconfidence in any of these items, please reach out and we’ll be happy to look things over with you. 

Listen to the full episode or use the timestamps below to find specific segments.

[6:00] – Stock markets

[9:05] – Managing your own portfolio

[13:24] – A million dollars

[14:31] – Rules of thumb

[16:23] – Certain products

Thanks for checking out the Your Retirement Elevated Podcast. We’ll talk to you again on the next show.

 

In case you want the chili recipe we talked about, check it out here: https://www.meatchurch.com/blogs/recipes/texas-chili

 

Your Guide:

Home Insight About Scott

Scott Dougan, RFC, Investment Advisor – Contact