With the holidays behind us, it’s a good time to explore why we spend money. Heading into year-end, the stock markets were plummeting, wiping out most, if not all, 2018 gains from our equity-based savings accounts. Yet when I walked into my groovy neighborhood gift shop to buy a holiday hostess present, people were lined up for their Curio Spice Aegean Sea salt and Somerville greeting cards for $4.50 a pop. What gives?

When the market heads up or down precipitously, managing your clients’ risk perception is key. But to do so, you must first understand the difference between risk tolerance and risk perception.

People consider filing for bankruptcy for a number of reasons. Perhaps they or a family member experienced a prolonged medical issue, and costs have far exceeded what their insurance will cover. Or maybe their small business failed, and they don’t have enough assets to pay off their creditors. Nearly 800,000 people filed for bankruptcy in 2016, according to the Administrative Office of the U.S. Courts. Although these individuals must seek an attorney's advice to file, they may well consult a financial advisor like you first. Would you know how best to advise them on their options?

Have you ever stopped to think about why or how you made a decision? Was it your logic, intuition, emotion, pressure, or routine? Or were you simply following direction from someone else?

Clients overspend in retirement for a number of reasons. Maybe they can’t say no to their kids (who are financially irresponsible themselves). Maybe they want to enjoy their money before their health fails. Or maybe it’s just habit. Whatever the reason, how can you help your clients who are overspending in retirement—in a way that has a good shot at changing their ways? Luckily, for every bad financial behavior, there are techniques that can lead to positive change.