Loss Aversion:- The Fear of Losing Money Loss aversion happens when people tend to feel a more painf

Loss Aversion:- The Fear of Losing Money
Loss aversion happens when people tend to feel a more painful pain of loss than the gainful pleasure of a gain. The retirement planning of that often leads individuals to aversion towards investment, especially such which have high potential in terms of return on value as they fear more being looted rather than benefiting from it. It makes more portfolios to be overcautious and in critical phases of market declines may prove less rewarding.

• How to Fight Loss Aversion:-
Diversify Your Investment
The better-diversified portfolio will ease the psychological blow of market moves. By investing in the widest possible spread of different asset classes (stocks, bonds, real estate, and others), individuals can further minimize the chance of sustaining huge losses in any individual area.