Beware of Conservatism Bias in Financial Plans

Conservatism bias is where one follows prior understandings or projections, without accounting for new evidence[1]. Many investors today may be following prior understandings or projections for asset class returns in creating financial plans, which may prove unrealistic to achieve. In particular, some investors and financial planners are relying on return data dating back to when … Continue reading Beware of Conservatism Bias in Financial Plans