Weighing Your Options

In the language of computers, you have a binary system made up entirely of zeros and ones. It took me a long time to realize that the language of financial planning is not binary. For a perfectionist, it is very hard to break out of the mode of complete optimization and maximization. As I’ve matured as a planner, I’ve learned how incredibly important the qualitative factors, the psychology, and the investor’s preferences are to the equation. Today, I’d like to dig into three examples of where we often get stuck thinking through financial decisions in a binary fashion – this or that. I’ll introduce the power of “hybrid” options and hopefully encourage you to expand your perspective when it comes to financial decision-making. Links mentioned in this episode: http://thoughtsonmoney.com http://thebahnsengroup.com