Behavioral finance sounds like a laborious upper level college course required for financial geeks, like myself. But, behavioral finance (at least my definition) is actually one of the top driving forces behind the successes or failures in our personal financial lives.
Investopedia’s definition of behavioral finance: a field of finance that proposes psychology-based theories to explain stock market anomalies.
My definition of behavioral finance: the behavior we exhibit which impacts our personal financial well-being.
Okay, this definition is not found in Webster’s dictionary. There’s probably not a college level course in this area…..although, I feel there should be.
Our financial …Read More
It’s a little-known fact that distributions from an IRA or a Qualified Retirement Plan can be taken in kind, rather than in cash. You can in any circumstance take distribution from the account of stocks, bonds, or any investment that you own, just the same as if it were cash.
The downside to this is determining valuation for the distribution. You could value the distribution on the day of the distribution by opening price, closing price, average price, or mean between the day’s high and low prices. Where you really get into trouble is when the security that you …Read More