𝘞𝘩𝘢𝘵 𝘪𝘴 𝘵𝘩𝘦 𝘨𝘳𝘦𝘢𝘵𝘦𝘴𝘵 𝘵𝘩𝘳𝘦𝘢𝘵 𝘵𝘰 𝘺𝘰𝘶𝘳 𝘸𝘦𝘢𝘭𝘵𝘩?

A Wedding? Volatility? Inflation? Shifting tax codes? A sudden lawsuit?

While I am not a licensed psychologist, I am a Wealthcare Provider. As such, I discuss private and confidential information on a daily basis. To most citizens of the United States, money is one of the most sensitive topics which is discussed within their personal lives.

The conversation never fails to lead to cognitive or emotional bias, in one manner or another. These characteristics tend to impact every decision which is ensuring, the inevitable dialogue with clients. This phenomenon can be explained through the lens of evidence-based behavioral biases.

Illusion of Control Bias occurs when people believe they have control, or an ability to predict circumstances which they have no influence over.

By searching for external threats, investors are frequently searching for an information advantage relative to the market. An adage in the industry is that markets will perform as a voting machine in the short-term. That is, as daily movements are driven by popular sentiment, news, fear, greed, and speculation. Investors "vote" with their money. Over long time periods, the market trends to act more so as a weighing machine, objectively measuring a company's intrinsic value, including earnings, cash flow, and financial strength. If investors are able to access valuable information which is not reflected within the current share price, this provides an informational advantage over other market participants. This action could allow the shift of focus from the things which can be controlled, such as their own savings rate, asset allocation, and discipline.

Self-Attribution Bias is the cognitive habit of taking personal credit for successes, while blaming other factors for failures.

We have a natural inclination to search for external forces to dismantle our failures because it protects our egos. It is much easier to point a finger than it is to admit that a lack of financial literacy.

Availability bias causes us to rely on information that is 'available.' This generally tends to be the more recent information or information that comes to mind easily.

The human brain naturally prioritizes 'available' information, therefore it is essential to remain deliberate. We are pulled to readily available forces as our environment and subconscious convince us they are of more importance, one of our many internal cognitive blind spots.

Overconfidence bias leads investors to overestimate their knowledge, abilities, and skills.

When an investor feels they possess a great level of expertise, a feeling of confidence above one which is justified may capture the mind.

Now, if you will indulge, if only, for a moment.

What is the greatest risk to your wealth?

I want to plant a concept in your mind. A concept which I encourage you to maintain for the remainder of your life.

The greatest threat to wealth is the human mind.

As a fiduciary, my oath as a Wealthcare Provider is to act in the best interest of the clients whom I represent.

After the red-eye flight from Daniel K. Inouye International Airport in Honolulu on Wednesday evening, I had spent the following day immersed in discussing state-of-the-art research with the Chartered Financial Analyst Society of Los Angeles. I started writing this article at 4:10 AM on Friday after another evening of no rest, sitting within the lobby of Omni, Los Angeles. At the time of writing, I had typed that the audience may be able to determine the number of interruptions, based on the delivery time. As circumstances has it, I was invited to attend the Society of Nuclear Medicine and Molecular Imaging Annual Meeting, which has only now concluded on Tuesday. While I would have this categorized as time well spent, as opposed to an interupption, the reader may decipher insight into my life at present.

That said, while being accompanied by this level of exhaustion is rare, I have always found the suffering worthwhile. When it comes to guarding client wealth, staying ahead of the curve, and bad actors, is essential.

As Ruth Bader Ginsburg so fiercely stated, "fight for the things that you care about, but do it in a way that will lead others to join you." I was moved by Her statement, perhaps due to my tendency to value Human Capital above financial.

In any event, I strive to collaborate with those who are actively achieving, or are on the path to achieving greatness, regardless of how the term is defined. I find nothing more rewarding than earning the trust of another human, and I feel privileged by your consideration alone.