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Joshua Bacchus, CPA, CFP®, CLU®
Joshua Bacchus, CPA, CFP®, CLU®
Financial Advisor

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Personal Wealth and Finance


Neuroscience and Financial Planning

June 1, 2020

In the information age, we are inundated with data, to such a degree, we can get distracted from our principal wealth creation goals. Neuroscientist, Dr Daniel J. Levitin points out in his book, The Organized Mind, with regard to a never-ending stream of social media, news, and career info, that “our brains are hungrily soaking all this in because that is what they’re designed to do, but at the same time, all this stuff is competing for neuro-attentional resources with the things we need to know to live our lives”. And one of the key things we need to know is how to get our finances on track for retirement!

Why people fail to plan A recent article in CNN noted after surveying 1,000 people about retirement stated that “many people spend more time researching which car to buy or where to go on vacation than they do investigate the right investments. More than half said they had spent five hours or more doing research the last time they bought a car, and 39% said they spent more than five hours exploring vacation possibilities. Meanwhile, a mere 11% said they had spent that amount of time evaluating investment options.

Dr Levitin makes a case for the need for categorical thinking if we are to wade through the information best suited for our lifestyle. Applying his wisdom, the secret is to determine how you break down your financial strategies categorically speaking, and then determine how you prioritize your processes in relation to your goals. By asking how you organize your finances it forces you to look at and list the most pertinent categories with a realistic application for financial survival:

Dr Levitin points out that “successful people – or people who can afford it – employ layers of people whose job it is to narrow the attentional filter. That is corporate heads, political leaders, spoiled movie stars, and others whose time and attention are especially valuable to have a staff of people around them who are effectively extensions of their own brains, replicating the functions of the prefrontal cortex’s attentional filter”.  In the same way, in order to be successful at retirement planning, you may need to engage the help of a professional advisor, someone who often does not charge for his or her services (some advisors are paid via other means), as well as fund specialists and/or investment managers trained to help you achieve financial success. Again, the logic of The Organized Mind, when applied to finance is simply to get financial guidance – applying the resources of fiscal counsel available. Again, Levitin summarizes this concept of getting someone to handle the daily distractions of life – and unfortunately many view financial organization as a distraction lumped in with all the other media distractions, when it comes down to getting through a basic day, month, year, and so on! Little wonder most people procrastinate when it comes to their finances.

These highly successful persons–let’s call them HSP–have many of the daily distractions of life handled for them, allowing them to devote all of their attention to whatever is immediately before them. Daniel J. Levitan PhD, The Organized Mind  -published by Allen Lane

Mindful financial strategies must be organized

We all want to be successful in our career and workplace as well as in our investment planning. Why not talk to us about implementing an organized financial plan. We have the trained expertise to help you get on the right track. Look at the graph below depicting the capital needed on which to retire. And ask yourself, “is it time that I get help?”

assets

Graph Source: Adviceon®Media

 

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