Financial wellness and planning

Human investors make human decisions

April 19, 2023

Janelle McDonald

Janelle McDonald

Principal and Head of Vanguard Relationship Management Group

In episode 2 in this series on the importance of financial advice, experts from Vanguard and elsewhere in the financial services industry offer perspectives on a number of investor behavior questions, including how the number of choices an investor faces can affect their ability to make decisions, what types of investors look for advice, and how investors can feel more confident about their choices no matter how many options there are.

As Americans' investment choices increase, along with their control over those investments, so does their uncertainty about their ability to manage their finances. This episode looks at how financial advice can help investors navigate this paradox.

This audio series of three 20-minute episodes highlights insights from Vanguard and other financial experts and details results of the recent Economist Impact survey of 1,200 American investors.

 “Investing is emotional…It’s hard to get away from that," says Janelle McDonald, principal and head of Vanguard Relationship Management Group.

Listen to episode 2

00:00 / 00:00
Audiocast transcript

Podcast sources:

  • “Americans Can’t Get Enough of the Stock Market”, The Wall Street Journal, May 2, 2021.
  • The New American Investor: Finding Confidence in Their Financial Future. Economist Impact, The Economist Group, May 2022.
  • A Visual Depiction of the Shift from Defined Benefit (DB) to Defined Contribution (DC) Pension Plans in the Private Sector, Congressional Research Service, December 27, 2021.
  • The New Map of Life: A Report from The Stanford Center on Longevity, Stanford University, April 2022.
  • "Choice Proliferation, Simplicity Seeking, and Asset Allocation".  Sheena S. Iyengar and Emir Kamenica, Journal of Public Economics, 2010.
Related links:

Notes:

All investing is subject to risk, including the possible loss of the money you invest.

Diversification does not ensure a profit or protect against a loss.

Vanguard’s advice services are provided by Vanguard Advisers, Inc. (“VAI”), a registered investment advisor, or by Vanguard National Trust Company (“VNTC”), a federally chartered, limited-purpose trust company.  

This information is for general guidance only and does not take into consideration your personal circumstances or other factors that may be important in making investment decisions. We recommend that you consult a financial or tax advisor about your individual situation before investing.

Vanguard podcasts, produced by Economist Impact, originally appeared in June 2022 as “The expanding universe of choice.”

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