The craft of being a wealth management advisor brings together a potpourri of skills necessary to succeed. A wealth manager has to be analytical, yet posses the communication skills to express complicated concepts while being empathetic to clients feelings. There also must be an understanding that investors may act different with investments than with other purchases or activities. In many cases, the psychology of investing is often nonsensical or the opposite of normal behavior. For example, consumers typically purchase less of an item if the cost of that item has increased. If the cost of a good or service has a historical increase, consumers may cut out that good or service all together or find an alternative. Yet, investors are attracted to rising prices. Recently, several of my clients have brought up the idea that real estate is going to be the answer to making money quickly. While real estate has seen the largest increase in Denver’s history over the last three years, is there another product you would want to buy more of when the prices have gone up irrationally? What are the known and unknown risks? Now, it may work out and money may be made, but at what risk? The most recent article published in ColoradoBiz Magazine explores some of these irrational nuances with the psychology of investing…ColoradoBiz!
Tags: Colorado, Denver, investing, psychology, real estate, Wealth Management, westminster wealth management
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This article is written by Kevin J. McNab. Kevin is President of ACE Wealth Partners, LLC and is a CFP®, ChFC®, and CRPC®. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. The views expressed in this blog post are as of the date of the posting, and are subject to change based on market and other conditions. This blog contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Please note that nothing in this blog post should be construed as an offer to sell or the solicitation of an offer to purchase an interest in any security or separate account. Nothing is intended to be, and you should not consider anything to be, investment, accounting, tax or legal advice. If you would like investment, accounting, tax or legal advice, you should consult with your own financial advisors, accountants, or attorneys regarding your individual circumstances and needs. No advice may be rendered by ACE Wealth Partners, LLC unless a client service agreement is in place. If you have any questions regarding this Blog Post, please Contact Us. Please read our website DISCLOSURE carefully for additional information.