How to Separate Emotions from Investing

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We are defined by our experiences, even the ones we’d rather forget. Actions, reactions, feelings, beliefs – everything we say and do is influenced by echoes of the past. Emotionally charged memories have a way of erupting like long-buried landmines when we step too close, dragging us straight back to the painful days we’d thought were long behind us. Even decades-old memories, faded beyond conscious recollection, retain their potency and ability to evoke visceral responses when triggered by the right stimuli.

You already know that money can be a very touchy subject. As a financial advisor, you’ve seen it dozens of times: the faint embarrassment when a client lays out their financial situation for you, the way jaws tighten and shoulders stiffen when you start talking about realistic retirement planning or suggest a more aggressive investing strategy.

Welcome or not, emotions surface and enter the conversation.