• / Free eNewsletters & Magazine
  • / My Account
Home>Practice Management>Practice Builder>5 Biases of 'Accumulator' Clients

Related Content

  1. Videos
  2. Articles
  1. Paying Up and Paying Out

    News this week showed market players paying up for media assets, paying out for tax relief, and more.

  2. Dividends Not Just for Retirees

    A strong and growing dividend can be a great signal of a quality stock for any kind of investor.

  3. Four Key Areas for Assessing Municipal Health

    Pensions and other post-retirement benefits will continue to be a growing concern for municipal governments and muni investors for years to come, says Morningstar municipal credit analyst Rachel Barkley.

  4. Conservative and Aggressive Picks for CEF Income

    Morningstar's Cara Esser offers several closed-end funds for an income-seeker's watchlist.

5 Biases of 'Accumulator' Clients

Overconfidence and illusions of control, among other issues, can complicate the investing lives of accumulator-type clients.

Michael M. Pompian, 12/18/2014

This month's article is the 12th in a series called "Deep Dives into Behavioral Investor Types." This series is intended to help advisors create better relationships with their clients by deeply understanding the type of person they are dealing with from a financial perspective and adjusting their advisory approach to each type of client.

As we learned in the last series, there are four behavioral investor types (BITs): the Preserver, the Follower, the Independent, and the Accumulator. If you missed any of these articles, you can find them in my MorningstarAdvisor.com archive.

We will discuss each BIT in a series of three articles:

Part I will be a diagnosis of each BIT and discussion of its general characteristics.

Part II will be a deep dive into the biases of each BIT.

Part III will cover how to create a portfolio for each BIT.

This article is Part II of the Accumulator BIT. (Click here to see Part I.)

A Deep Dive on the Accumulator
The biases of Accumulators tend to be emotional--relating to how people feel--rather than focusing on cognitive aspects--relating to how they think. The biases of the Accumulator BIT are overconfidence, illusion of control, affinity, self-control, and outcome.

The author is a freelance contributor to MorningstarAdvisor.com. The views expressed in this article may or may not reflect the views of Morningstar.

blog comments powered by Disqus
Upcoming Events
Conferences
Webinars

©2014 Morningstar Advisor. All right reserved.