Most investors think they know their risk tolerance, but their instincts are often wrong. In this episode, portfolio manager John Joseph De Goey shares why behavioral biases can sabotage your financial decisions, how to assess your true risk tolerance accurately, and why capacity and tolerance must work together. #RiskTolerance #InvestingWisely #WealthDecisions #FinancialPlanning #BehavioralFinance #MoneyManagement #InvestmentStrategy #WealthGrowth #InvestorTips #MoneyMindset
Key Notes
- Investors often misjudge their true risk tolerance, leading to poor decision-making.
- Behavioral biases like overconfidence, recency bias, and optimism bias distort investment strategies.
- Lifeboat drills help simulate market downturns to test emotional and financial resilience.
- Prospect theory shows losses feel twice as painful as gains feel rewarding.
- Risk capacity is as important as tolerance—portfolios should be built to the lower of the two.
- Traditional 3-month cash reserves may not be optimal for everyone.
- Asking the right questions is key to finding a financial advisor who fits your needs
Links
Website www.johndegoey.ca
https://www.linkedin.com/in/johndegoey/
Offer
- Offer: John’s book Bullshift and his podcast Make Better Wealth Decisions
- Website: www.johndegoey.ca
- Book Availability: Amazon, Barnes & Noble, and major book retailers
- Podcast: Make Better Wealth Decisions
Meet John
John De Goey is a portfolio manager in Toronto.
He has spent over 30 years helping retail clients
make better wealth decisions.
more than two
paragraphs) John has written three ground-breaking books
that help advisors and investors work together in
a purposeful manner.
He has a podcast of his own, unsurprisingly called
“Make Better Wealth Decisions” and is a frequent
guest writer and market commentator in the
financial media.
