Fix It Friday - Beyond Bear Markets and Recessions: Learn the Two Biggest Risks to Investor Wealth

Welcome to another insightful episode of Fix-It Fridays, the podcast segment that simplifies financial strategies to help you make smarter decisions. Hosted by Jonathan Blau, CEO of Fusion Family Wealth, each episode dives into common biases that impact our financial choices—and how to fix them. This week, Jonathan tackles the two biggest threats to investor wealth: inflation and investor behavior. Focusing on long-term financial success, he offers valuable advice on navigating these challenges. Tune in!

IN THIS EPISODE:

• 00:00 Podcast Intro and Disclaimer
• 00:50 What are the external and internal threats to wealth?
• 02:24 How does inflation erode purchasing power?
• 04:26 What are Loss Aversion and Ambiguity Bias in Investing?
• 05:58 How can investor behavior become an internal threat?
• 06:59 Long-term stock market performance despite volatility
• 08:31 How bond investments can impact your portfolio
• 09:32 Gold as an Inflation Hedge: Myth vs. Reality
• 10:34 External threats: how the media influence investors

KEY TAKEAWAYS:

• Inflation impacts purchasing power, making it essential to consider an inflation hedge within your portfolio to protect investor wealth.
• Investor behavior, influenced by biases such as loss aversion and ambiguity bias, can lead to poor investing decisions. Understanding these biases is crucial for effective financial planning.
• Predictions and media influence can skew investor psychology, often leading to volatility misconceptions and missteps during bear markets.
• Jonathan emphasizes the importance of a diversified portfolio to mitigate threats to wealth, including sequence of return risk.
• Bond investments play a strategic role in safeguarding against the sequence of return risk, especially for those approaching retirement.

ABOUT THE HOST: Jonathan is the President and CEO of Fusion Family Wealth, founded in 2013 to focus on behavioral finance and guide clients toward rational financial decisions. A sought-after speaker in wealth management, Jonathan previously held senior roles in tax and estate planning at Arthur Andersen. He has a BS in Finance, an MS in Taxation, and an MBA in Accounting. Based on Long Island, Jonathan is active in the local business community, supports causes like the Middle Market Alliance and Sunrise Day Camp, and enjoys boating with his family.

RESOURCE LINKS 

Fusion Family Wealth - Website

Jonathan Blau - LinkedIn

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https://www.fusionfamilywealth.com/disclosures