Are you falling prey to Status Quo? Faced with a decision about their investments the “Status Quo Bias in Decision Making” study revealed 75% of participants tended to either do nothing or simply stick with a previous choice over a 12 year period. Since the plan members had new information, new options and were moving closer to retirement, is this rational?

Our economic and investment models are based on rational decision making. Sometimes, however subtly, decisions are driven by emotion – and this can hurt your finances. As part of our regular series, the Science of Investing, John Budden of CFRA’s  and I talk about ‘status quo’ bias and how to protect yourself from ‘not making a decision’.

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