Today we’re going to piggyback of our conversation in the last episode by focusing in on recency bias and show you how the concept plays itself out among investors. As Michael will explain, recency bias is the tendency to give more weight to the most recent information when making decisions, which can often lead to skewed perceptions and poor financial choices.

Here’s some of what we discuss in this episode:

• A look at the numbers from stock returns since 1928.
• Treasury bill rates are indicative of what you could be receiving inside money market accounts.
• We're almost right at historical averages for mortgage rates going back to 1964.
• How we build investment strategies with these biases in mind.

See the graphs referenced in this show:

Mortgage Rates: https://caffeinecashflow.com/wp-content/uploads/2025/01/Mortgage-Rates-since-1964-LBS.pdf

Treasury Bills: https://caffeinecashflow.com/wp-content/uploads/2025/01/Treasury-Bills-historical-rates-LBS.pdf

Large Company Stocks: https://caffeinecashflow.com/wp-content/uploads/2025/01/Large-Company-Stocks-LBS.pdf

Learn more: https://caffeinecashflow.com/

Get in touch with Michael-

Web: https://www.westpacwealth.com/team/michael-schulte

Email: michael.schulte@westpacwealth.com

Phone: 702-767-4897

As we begin a new year, it’s helpful to reflect on our financial habits and the biases that may influence them. By understanding and mitigating these biases, we can make more informed decisions and set ourselves up for greater financial success. In this episode, Michael will highlight the most common cognitive biases that he sees in people, which is a topic that could reshape how you approach your financial decisions.

Here’s some of what we discuss in this episode:

• Why biases play a huge role in what we do with finances and there are actually 175 cognitive biases.
• The fear of missing out bias is amplified by social media.
• Herding bias is the phenomenon where you blindly follow what others are doing.
• Confirmation bias involves only being able to see information that supports our current position and beliefs.
• Being open to uncertainty can improve our life.

Learn more: https://caffeinecashflow.com/

Get in touch with Michael-

Web: https://www.westpacwealth.com/team/michael-schulte

Email: michael.schulte@westpacwealth.com

Phone: 702-767-4897

In this festive episode of Caffeine and Cash Flow, Michael guides you through the 12 Days of Financial Wellness. Discover essential tips on managing assets, liabilities, protection, and cash flow as you prepare your balance sheet for the new year. Whether you're planning for personal property, savings, investments, or understanding liabilities, this episode provides practical advice to enhance your financial health.

Here’s some of what we discuss in this episode:

• Protecting your balance sheet.
• The different categories of assets.
• How to view different types of debt and other liabilities.
• Understanding your cash flow and how to use that for retirement planning.

Check out the sample balance sheet here: https://caffeinecashflow.com/wp-content/uploads/2024/12/LBS-sample-client-dashboard-2024.pdf

Learn more: https://caffeinecashflow.com/

Get in touch with Michael-

Web: https://www.westpacwealth.com/team/michael-schulte

Email: michael.schulte@westpacwealth.com

Phone: 702-767-4897