Monthly Archives: October 2017

Why do we fear losses more than we value gains?

Gain and Loss

The answer lies in our evolutionary past. Our ancestors may have enjoyed occasions when food was in abundance, but periods without enough to eat were potentially fatal. These primal forces still have a powerful influence on our decisions today.

Loss Aversion

Economists have identified loss aversion as a major factor in financial decision-making, in that most people would rather avoid losing money than acquire more. The psychological impact of losing is thought to be twice as powerful as the pleasure of gaining.

The True Value of Protection

The True Value of Protection

Many people think of wealth as the value of their savings, investments and assets. However, the ability to keep earning an income is equally important.

Ensuring that you have adequate financial protection for you, your family and any dependants is an important element of financial planning. As a healthy working person with a good income, you may feel reasonably confident that you are able to provide for your family. However, your finances could be more precarious than you think.