I have a lucky friend. Chances are you know him. He has written several New York Times best sellers. By any outward appearance, he has officially made it. I wanted to know what role he thought luck played in his career. Without batting an eye, he said: “Oh, luck has been everything. I can point…
Articles by Carl Richards
Carl Richards is a Certified Financial Planner and a columnist for the New York Times, Morningstar magazine and Yahoo Finance. He is author of 2 books, The Behavior Gap & The One-Page Financial Plan. Carl lives with his family in Park City, Utah. You can find his work and sign up for his newsletter (which has an international audience) at www.behaviorgap.com/
This statement contradicts just about every evolutionary instinct we possess. We tend to seek out safety and avoid risk whenever possible. A classic example has to be the instinct that (still) tells us we are safer staying with the group. If members of the herd stray, they are easier for predators to pick off. Staying…
I have a question for you. Now, this will work best if you grab a piece of paper, and write out your answer. Here’s the question: Why is your money invested the way it is? Before you go on, write down your answer on that paper. I’ve had a blast with this question over…
A few years ago, a friend of mine who happens to be a really well-known journalist had a conversation with a really well-known academic. Because the conversation was private, I’m not mentioning names. But I did want to share one fascinating part of their discussion. They were talking about cognitive biases A cognitive bias is…
The more you consume, the less content you are. If you don’t believe me, think back to the last time you ate just a bit too much of your favourite ice cream. For me, that’s Jeni’s salty caramel. There are few things in life better than that first spoonful. Except, that is, for the second bite,…
Do you remember playing pretend when you were little? Maybe you were a superhero, a dinosaur or a princess. It’s normal when you’re little, and it’s usually harmless. Most children know the difference between pretending to be a superhero and jumping off the roof thinking they can fly. But adults often forget. For instance, we…
I read somewhere that average Americans will spend more time planning their vacation to Disneyland than they will planning their financial future. I’m not sure that’s correct, but it wouldn’t surprise me. There are a number of reasons why we are hesitant to spend time planning for our financial future, but the biggest one is…
Finding time is hard. I often think about all the things I would do if I could just find the time. But really, what a crazy thing that is to say. Find the time? Where should I look? Did I hide it in the bushes outside the White House? Can I find it on Aisle…
There are two types of experts in the world: real experts, and fake ones. The real experts are the people who spend many years refining their knowledge and skill set in a particular area and becoming masters of pattern recognition. But all too often, they end up toiling away in relative obscurity and poverty, neither…
A while back my wife and I hired a financial planner. It was a big change to sit on the other side of the desk and see the process from the client’s perspective. I received some interesting reactions when I told people. The most common one was: Why does a Certified Financial Planner need to…