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

Related Content

  1. Videos
  2. Articles
  1. Fourth-Quarter To-Dos for Retirees

    Medicare enrollment, required minimum distributions, and fixed-income risks are just a few of the items retirees should check before year-end.

  2. Benz: 5 Tips for Your Third-Quarter Portfolio Checkup

    Beyond noting their stock/bond split, investors should also check their small-cap exposure, overall rate sensitivity, and vulnerability to the wealth effect.

  3. What Are My College-Savings Options?

    Coverdells, UGMA/UTMAs, and 529s are among the most popular college-savings vehicles, and savers need to educate themselves on their best option for investing cost-effectively.

  4. Bite From Shutdown Still to Come

    Many of the effects from the shutdown haven't even touched the economy yet, says Morningstar's Bob Johnson.

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.