The term “mental accounting” describes a specific type of irrational investor behavior. It’s an irrational attitude investors can take when separating their money for investment. But I think a little “mental accounting” can actually be beneficial for families that are investing for generations. Let me tell you why.
Money mind games
How is mental accounting irrational? Let’s assume an investor saved $100,000 from years of hard work, then got $50,000 as a surprise bonus from their job, and then won ...More →