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

Related Content

  1. Videos
  2. Articles
  1. Roth Advantage May Be Bigger Than You Thought

    Even if your tax bracket doesn't change, using a Roth can mean 20% or more aftertax income in retirement versus a Traditional IRA , says T. Rowe Price senior financial planner Christine Fahlund.

  2. How to Make the Most of Your 401(k)

    In this special presentation, get the answers to key questions about the quality of your plan, whether your savings are on track with your goals, how to allocate assets, and what to do with assets when you leave your job.

  3. 10 Missteps With Tax-Sheltered Accounts

    IRAs, 401(k)s, and Roth accounts are key components of your toolkit, so make sure you get the most out of them.

  4. Tax Talk: What to Do With Dividend Payers

    Christine Benz answers reader questions about how to handle dividend payers in light of potential 2013 tax increases.

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.