dr. daniel crosby
ABOUT Daniel

Educated at Brigham Young and Emory Universities, Dr. Daniel Crosby is a psychologist and behavioral finance expert who helps organizations understand the intersection of mind and markets. Dr. Crosby is the author of The Behavioral Investor and The Laws of Wealth: Psychology and the Secret to Investing Success. He co-authored a New York Times Best-Selling book titled, Personal [...]


Joe Anderson
ABOUT Joseph

As CEO and President, Joe Anderson has created a unique, ambitious business model utilizing advanced service, training, sales, and marketing strategies to grow Pure Financial Advisors into the trustworthy, client-focused company it is today. Pure Financial, a Registered Investment Advisor (RIA), was ranked 15 out of 100 top ETF Power Users by RIA channel (2023), was [...]

Alan Clopine

Alan Clopine is the Executive Chairman of Pure Financial Advisors, LLC (Pure). He has been an executive leader of the Company for over a decade, including CFO, CEO, and Chairman. Alan joined the firm in 2008, about one year after it was established. In his tenure at Pure, the firm has grown from approximately $50 [...]

Published On
October 1, 2016

Joe & Al start off the hour answering personal investing questions, then welcome New York Times and USA Today bestselling author, Dr. Daniel Crosby on the show to discuss his book The Laws of Wealth on behavioral finance.

1:07 “Will I be penalized for an excess contribution to my IRA?”

2:57 “You may or may not be able to deduct it based on your income level and if you’re in another retirement plan.”

8:25 “Will the 401(k) distribution tax be offset by the loss of my section 1231 property?”

10:26 “That qualifies for a special tax treatment because it’s a business asset, it’s under code section 1231 which simply means this – if you sell the rental property at a gain, you get that lower capital gains rate.”

17:15 “Once you get to know what some of the rules are, you can actually pay a lot less in taxes.”

18:43 “Should I cash out my investments or continue to invest?”

21:21 “You can make your own dividend, which people still don’t understand. A dividend is not a coupon payment.”

25:16 Start of Interview with Dr. Daniel Crosby

27:36 “People who watch more CNBC tend to have worse results. People who are monitoring every little thing that Janet Yellen does are actually getting outperformed by people doing nothing at all, so there are a lot of ways investing runs contrary to our natural human tendencies.”

30:06 “Part of the reason why I wrote the book was to try and address the delta between what the research says are the determinants of investment returns and what most people understand them to be.”

30:18 “What do you think is the biggest bias that hurts us the most?”

33:55 “Most people are overconfident and the people who aren’t overconfident tend to be depressed – there isn’t a lot of middle ground.”