Salient to Investors:
Nobel Laureate Robert Shiller said:
- People make better decisions with financial advisers.
- A lack of good financial advice was one of the problems that led to the financial crisis. Many Americans went into unsupportable debt to buy homes, which a good financial adviser would not have let them do.
- Financial advice is particularly critical for low to moderate income families, on a par with medical advice, and should be made available to those without the resources to pay for it.
- The government should compensate advisers who help lower-income people with financial problems.
- Tax deduction for some investment costs subsidizes the wealthy because low-income Americans do not itemize deductions.
- Investor overconfidence can put advisers in a tough spot because people do not like to be told they are wrong.
- Financial advisers should pursue a second degree in psychology to better manage behavioral tendencies that lead some clients to make poor financial and investing decisions.
Read the full article at http://www.investmentnews.com/article/20131205/FREE/131209947
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Nobel Laureate Robert Shiller said:
People make better decisions with financial advisers.
A lack of good financial advice was one of the problems that led to the financial crisis. Many Americans went into unsupportable debt to buy homes, which a good financial adviser would not have let them do.
Financial advice is particularly critical for low to moderate income families, on a par with medical advice, and should be made available to those without the resources to pay for it.
The government should compensate advisers who help lower-income people with financial problems.
Tax deduction for some investment costs subsidizes the wealthy because low-income Americans do not itemize deductions.
Investor overconfidence can put advisers in a tough spot because people do not like to be told they are wrong.
Financial advisers should pursue a second degree in psychology to better manage behavioral tendencies that lead some clients to make poor financial and investing decisions.