We're All Irrational, But It's OK

My favorite speaker at last week's Financial Planning Association National Convention was Dan Ariely, Ph.D., professor at Duke University and author of two books, Predictably Irrational and The Upside of Irrationality.

Dr. Ariely was severely burned over most of his body a number of years ago, and as he endured the long months of hospitalized recovery, he began thinking about the nature of pain and how our minds handle it.

One of the first questions he considered, naturally enough, was the question of how quickly to remove bandages. The nurses who treated him thought it was best to yank off the bandage quickly: there was intense pain for the patient, but it was over quickly. It turns out, however, that when given a choice, the patient perceives less overall pain when the bandage is removed slowly: although the pain lasts longer, it is far less intense and therefore more bearable.

This was just the first of many examples Dr. Ariely gave into the nature of our thinking and how it affects everything we do and every decision we make. Just because we believe something to be true does not necessarily mean that it is true. This insight has tremendous implications in all areas of our lives, including our financial decisions.

Although I have just started Dr. Ariely's Predictably Irrational, based on his fascinating talk, I believe I can recommend both books highly. If you'd like to see video of a recent interview Dr. Ariely did for CBS Moneywatch.com, just click on the image below:



Ah, fall: my favorite time of year. Enjoy your week!

A Quick Hello From Denver

This week's post is coming to you from Denver, where I am attending the Financial Planning Association's annual national convention. Some of the best and brightest in our industry are sharing their insight in such subjects as financial planning, investments, and practice management, among others. The event is always enlightening and invigorating.

Here's just one example: Dr. Dan Ariely (pictured here), professor at Duke University and author of the new book The Upside of Irrationality, gave an outstanding and thought-provoking talk in the Saturday afternoon general session.



I hope to share more detailed information from the convention in a future update. In the meantime, have a great week!

-Andy

Road Trip to Lake Waccamaw

About this time every year, Juliet and I take the 90-minute drive to Charlotte for the Financial Planning Association of Charlotte's Symposium. The annual event is two days packed with educational content.

This year's symposium did not disappoint, and we added an extra day to the trip in order to keep a promise to a dear friend. If you care to see a brief video of the trip, click on the image below:

It's fall all of a sudden; have a great week!