The idea of loss aversion—that, to an irrational degree, individuals avoid losses more than they pursue gains—has been influential in the field of behavioral finance. It has been imputed to drive ...

Loss aversion is a bias to feel the pain of losses more strongly than the pleasure of gains - and this can impact how you invest for your retirement. Nobel Prize-winning economist Daniel Kahneman’s ...

One of the more well-known behavioral biases is loss aversion. Loss aversion is a common trait people display where they feel the pain of losing money much more acutely than the pleasure from gains.

Imagine this scenario: a friend offers to flip a coin and give you $20 if it lands on heads. If it lands on tails, you give her $20. Would you take that gamble? For most of us, the amount you could ...

Life is a series of choices. Every time you make a decision, there is a possibility that things won’t go as expected (risk) or that something bad will happen (loss). Aversion to risk and loss have ...

Nobody wants to lose money, and loss aversion is a prudent part of an investment strategy. But when it goes to extremes, it can hurt retirees more than it helps. When planning for their futures, many ...

The idea of loss aversion—that, to an irrational degree, individuals avoid losses more than they pursue gains—has been influential in the field of behavioral finance. It has been imputed to drive ...