Ted Richards

increasing their spending and buying all these other things that's actually going to influence our spending behavior too and so keeping up with the jones as we start taking on a bit more financial risk to try and keep up with them so this doesn't make sense it's stupidest thing ever but this has been proven yeah so um i guess that's just an example of you know when emotions are high logic is low

Yeah, you're right.

And so our investment philosophy is quite passive and that's probably a bit of a fancy adjective to describe someone that invests in ETFs and index funds.

But where we do think it is important is to get diversification right over multiple asset classes and in different countries around the world.

And

That is our investment philosophy.

And if you can have some form of dollar cost averaging where you're consistently adding to your portfolio and the ability to stay calm in times of high volatility or even corrections or, God forbid, the odd crash, it's a fantastic strategy.

mindset to have when it comes to investing and I think you're so right about the behaviour because I can remember reading about often some of the portfolios where investors have forgotten that they own them are the best performing yeah the dead investors are the best I've even heard of say once again bringing it back to Sixpack but having these portfolios for people where you can actually when they're

Yeah, you're exactly right.

And we don't actually have that feature to give people the nudge about the –

Yeah.

Yeah.

And it's all that if you're selling at a gain, you're probably creating a tax event.

And if you can make people aware of that, they might think, well, there's actually a benefit in just leaving that.

i guess with through technology um behavioral economists call it choice architecture how you can actually implement strategies to ensure that people's behavior we're not you know nudging to them for the right reason not for the wrong reason to try and do the right thing and that is a nudge to maybe set up an automatic payment plan or a nudge to remind people that um

their actions here might create an unnecessary tax event.

And I guess that's one of the benefits of technology because before things like APIs and all the fantastic technology that we've got right now, it was people on a phone and, you know, by themselves and a newspaper trying to work it out.

Yeah, and pay a lot per trade too.

Yeah, well, I think I study more in finance from the investing side as opposed to all the other aspects.

And with investing, the conversations that I think I have and probably similar to you is so much about the recency bias.