Presented by Mark Phillips
Reprinted with permission of the Squared Away Blog at Boston College’s Center for Retirement Research. Note that I’ve embedded the link to our blog in “Squared Away Blog” and here it is again – so people can find us and read more:http://squaredawayblog.bc.edu/
Our personal biases can play havoc with how we handle our finances.
Two such biases have long been suspected as obstacles to saving for retirement. The first is a tendency to procrastinate on decisions that may benefit an individual in the long run, but also involve short-term costs, like saving for retirement – economists call this “present bias.”
The second bias is a failure to perceive the power of compounding investment returns and how this can build wealth over decades of saving.
Our Blind Spots Cut Retirement Savings click to read more
