NerdWallet's Smart Money Podcast
Behavioral Finance Mistakes That Hurt Your Portfolio and What “Good” Returns Look Like
Mon, 24 Feb 2025
Learn how behavioral biases impact your investments and what a “good” return from your portfolio looks like. How do behavioral biases affect your investing decisions? What kind of returns should you expect from your investments? Hosts Sean Pyles and Elizabeth Ayoola discuss common psychological traps investors fall into and how to set realistic expectations for long-term portfolio growth. They begin by speaking with Behavioral Financial Advisor Yohance Harrison, founder of Money Script Wealth Management, about behavioral finance, with insights on anchoring bias, recency bias, and how emotional decision-making can hurt your investments. They also discuss strategies to counteract these biases, how long-term planning can override emotional investing, why patience is key to market success, and how robo-advisors can help you stick to your plan. Then, investing Nerd Sam Taube joins Sean and Elizabeth to answer a listener’s question about whether their investment returns are on track. They discuss what a "good" return looks like, how different types of mutual funds impact performance, and when to consider adjusting your investment strategy. 7 Best Mutual Funds for February 2025 and How to Invest: https://www.nerdwallet.com/article/investing/how-to-invest-in-mutual-funds In their conversation, the Nerds discuss: behavioral finance, investment biases, anchoring bias, recency bias, emotional investing, stock market psychology, long-term investing, short-term investing, market volatility, mutual fund returns, index fund returns, S&P 500 average return, risk tolerance, investment performance, robo-advisors, automated investing, when to sell stocks, how to manage investments, financial anxiety and investing, how to pick mutual funds, investment education, investment portfolio strategy, when to rebalance your portfolio, how to diversify investments, investment growth expectations, financial planning, how to avoid bad investments, investment risk management, and active vs passive investing. To send the Nerds your money questions, call or text the Nerd hotline at 901-730-6373 or email [email protected]. Like what you hear? Please leave us a review and tell a friend.
Full Episode
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If you want a smartwatch that delivers more for less, then visit amazfit.com slash smartmoney to get 10% off. That's Amazfit, A-M-A-Z, fit, dot com slash smartmoney. Sometimes your brain can be your own worst enemy when it comes to making progress on your financial goals.
Whether it's keeping your impulse spending in check or sticking to your investment strategy, it's all too easy to get in your own way and do things that aren't in your best interest.
This episode will help you overcome at least one self-imposed roadblock so you can make smarter money moves. Welcome to NerdWallet's Smart Money Podcast, where you send us your money questions and we answer them with the help of our genius nerds. I'm Sean Piles.
And I'm Elizabeth Iola. On this episode, we answer a listener's question about what kind of returns they can expect from their investments.
But first, I want to share an exciting update. Longtime listeners have heard Elizabeth join me on the podcast many times over the past few years, but I'm thrilled to announce that she is officially moving into a new role as my full-time co-host on Smart Money. For folks wondering, we will still have Sarah Rathner join us on the pod occasionally too. But hey, Elizabeth, welcome to the hosting seat.
I'm so excited to be in the co-hosting seat and listeners. My hope is that you aren't throwing virtual tomatoes at me. I plan to give it my best. I love talking about money and it's an honor to help people navigate their financial decisions.
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