ABOUT HOSTS

Joe Anderson
ABOUT Joseph

As President of Pure Financial Advisors, Joe Anderson has led the company to achieve over $2 billion in assets under management and has grown their client base to over 2,160 in just ten years of the firm opening. When Joe began working with Pure Financial in 2008, they had almost no clients, negative revenue and no [...]

Alan Clopine
ABOUT Alan

Alan Clopine is the CEO & CFO of Pure Financial Advisors. As CEO he currently leads Pure Financial Advisors along with our executive team. As CFO he is responsible for the financial operations of the company. Alan joined the firm about one year after it was established. At that time the company had less than [...]

Published On
August 29, 2015

Joe and Al discuss a recent U.S. News article about 7 behavioral biases that can hurt your investments (loss aversion, confirmation bias, mental accounting, illusion of control bias, recency bias, hindsight bias and herd mentality). They also go over some of the top things you need to know about a market correction. How do you deal with a market downturn and how do you prevent your emotions from driving your actions? Tune in to find out.


2:20 “As a consequence, this loss aversion really tends to wreak havoc when the market seems to be going down; it magnifies the problem”

4:08 “You have to understand risk and expected return. If you need a certain expected rate of return, you have to take on some risk but you have to take the right types of risk; you have to have calculated risk”

7:27 “When an asset class hasn’t done as well recently, there’s a higher expected return and if you’re going to tilt (your portfolio) at all, you want to tilt in that direction, and people tend to do just the opposite”

11:22 “There are certain strategic moves you want to make with your portfolio when markets are this volatile”

14:20 “It’s that rebalancing; that’s really what you want to be looking at right now; look at the integrity of your portfolio—is it what you want it to be?”

17:39 “When you do have a capital gain, it nets against that gain dollar for dollar”

22:04 “You want to make sure that you have the right portfolio in place so you have the confidence that when [a stock market] happens, you know what to do”

25:54 “You don’t want to be all in the market; you should never be that way because if the market declines, all your positions are down. That’s why you want to have a fair amount of safety in your retirement portfolio and as you get closer to retirement or you’re in retirement, you want to make sure there’s enough safety to handle your cash flow needs”

27:07 “It’s a great time to buy investments at a bargain”

34:30 “Sit down with a fee-only fiduciary that’s there to look out for you…what we do is try to incorporate everything together in a meaningful way”

38:12 “Our baby boomer generation is just not quite ready [for retirement]”