The Psychology of Investing & Retirement: Why Smart Investors Still Fear Spending Money

About this episode

The episode explores the psychological barriers that prevent successful investors from enjoying their wealth, featuring insights from behavioral expert Hal Hershfield.

Why do so many successful investors struggle to actually enjoy the wealth they’ve built? In this Memorial Day weekend episode of Allworth’s Money Matters, Scott and Pat talk with UCLA professor and behavioral expert Hal Hershfield and explore the emotional side of money, retirement, and investing. From fear of running out of money to recency bias and loss aversion, this episode dives deep into the hidden psychological forces that shape financial decisions — even for millionaires. If you’ve ever wondered why investors panic during market drops, hesitate to spend in retirement, or obsess over past financial mistakes, this conversation about investing will completely change how you think about money. Scott, Pat, and Hal unpack why wealthy retirees often struggle to spend confidently, how emotions influence investing decisions, and why understanding investor psychology may be just as important as understanding the stock market itself. They also discuss longevity insurance, risk tolerance, mental accounting, and how advisors can help clients align money with purpose and happiness. Whether you're approaching retirement or simply want to become a smarter long-term investor, this episode…

People in this episode

Hosts: Scott, Pat

Guest: Hal Hershfield

Topics covered

• psychology of investing
• retirement spending
• behavioral finance
• emotional decision-making
• loss aversion
• recency bias

Keywords

• investing psychology
• wealth management
• financial decisions
• retirement fears
• market behavior

Mentioned in this episode

Organizations: UCLA

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