Would you take a coin flip where you could win $200…but risk losing $100?
Most people say no—and there’s a real, psychological reason behind that.
In this episode of Wisdom in Wealth, Chief Behavioral Officer Brendan Frazier explores one of the most powerful psychological forces in investing: loss aversion. Grounded in behavioral finance research of psychologists Daniel Kahneman and Amos Tversky, Brendan breaks down how the fear of loss can hijack logic, even when the odds are in your favor.
You’ll learn how this common bias shows up in real life, from holding on to losing investments to avoiding bold career moves. More importantly, you’ll walk away with five actionable steps to reframe how you think about risk, regret, and financial growth.
Tune in to explore:
- Why potential losses impact us more deeply than potential gains
- How loss aversion affects investing, retirement spending, and decision-making
- Five ways to reduce the emotional weight of “what if I lose?”
Understanding loss aversion doesn’t just change your perspective; it can also influence your financial future.
Click play to watch the full episode or explore our library of Wisdom in Wealth episodes.
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