Elizabeth McFadden of Memphis - What is Behavioral Finance?

Are you wondering what behavioral finance is, and what it refers to? Elizabeth McFadden is a financial planner and mediator with an avid interest in the psychology behind financial behaviors. She, like many of her colleagues, has been studying a relatively new field called behavioral finance. This field of study attempts to explain why people make irrational financial decisions, what motivates change and what keeps clients immobile by combining cognitive and behavioral psychological theories with convention finance and economics.

This is a necessary field of study because it addresses how market decisions are made and what aspects drive client behavior. Behavioral finance can be studied on two separate levels, an individual level and a market level. Some examples of individual irrational financial decisions are credit card usage, massive revolving debt loads, and large purchases that affect a person’s long-term financial standing. Economists and financial professionals are studying the social, psychological, and emotional factors that drive people to make these decisions, and how various markets contribute to those decisions.

Behavioral finance on a market level refers to the errors that markets can make, which result in market inefficiencies. This field of study focuses on market trends, bubbles, and crashes and what contributes to these types of market behaviors. It focuses on the habits of investors and the different emotions and social aspects that determine the way in which they participate in the market.

This field of study allows professionals to understand what factors drive individual decisions and the various market trends. Financial planners, such as Elizabeth McFadden Memphis, use this information to better understand the financial situations of their clients.

Elizabeth McFadden of Memphis - Are you interested in Holistic Financial Planning?

Have you heard of holistic financial planning? Elizabeth McFadden is a talented financial planner.  She can offer her clients holistic financial planning services in order to help them achieve their life goals. Holistic financial planning is a resource by which all aspects of a client’s life, not just the financial pieces.  These goals include, but are not limited to, buying a home, planning for retirement, or saving for your child’s education.

There are several benefits involved with holistic financial planning. This style of financial planning helps provide direction and meaning in your life. It will help your view regarding each of your financial decisions as a part of a whole so that you can determine what short term and long term effects your decisions will have. It is an alternative aspect of financial planning, and will help you make steps towards all of your goals.

This first step of this process is to create a trusting and loyal working relationship with a financial planner. The second step is to gather your data and documentation. You will need to provide information about your financial situation and what your goals are for the future. This information is important tool for your financial advisor.

The next step is to work with your financial planner to develop a plan that will address your goals. You will work with your financial planner to determine what the best course of action is, and then you will work together to implement and monitor that plan. Elizabeth McFadden Memphis enjoys helping her clients in Memphis find new ways to reach their financial goals.