The Lake Wobegon Effect
You know Lake Wobegon from NPR and Garrison Kielor. It is the mythical place where “all the women are strong, the men are good looking, and the children are all above average.”
Unfortunately, we cannot all be above average. However, if asked we will generally claim that distinction no matter what the subject, and this can lead to behavioral mistakes that cost our bank accounts real dollars.
In finance like other areas of your life, try to play to your strengths and recognize your weaknesses. If you lack patience, the stock market is no place to learn. If you like taking risks, the markets will let you take plenty, and then send you home with nothing. If you are timid, you could easily talk yourself into staying on the sidelines- the ultimate financial mistake.
Work with an advisor who helps you use your strengths and fills in for your weaknesses. It is not always about the opportunity, sometimes it’s about our attitude.
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