The neglected variable affecting portfolio choices in the 21st century investment committees to debate whether the just as easy. Ideally, the increased engagement glidepath should be adjusted to reflect the triggered by constant account monitoring should frequency of monitoring. In particular, does more actually be leveraged to encourage improved frequent monitoring call for a more conservative financial planning, and not investing paralysis. allocation to avoid investors panicking and selling Summary when markets sneeze? We don’t necessarily have In the 21st century, technology has transformed the answers, but we feel these are important the ways in which investors get information about debates for investment committees to start their retirement accounts. The task for financial engaging in. advisors and plan sponsors is to ensure that the 3. Foster longer-term thinking newfound convenience of mobile access doesn’t One of the crucial tasks of financial advisors and lead to increased myopic loss aversion. Whenever plan sponsors is to help individuals focus on their possible, investors should be reminded of their long-term goals, even if they are monitoring their true investment horizon. To paraphrase Daniel investments every hour on a smartphone. While Kahneman, what they see at the moment is not these individuals who engage in a high frequency all there is. of monitoring might prefer an all-cash portfolio, effective communication can help foster longer- The task for financial advisors and plan sponsors term thinking. From a behavioral perspective, the is to ensure that the newfound convenience of most intuitive and important information to convey mobile access doesn’t lead to increased myopic to individuals is their projected retirement income, loss aversion so this information should be prominently displayed.9 Because this figure is relatively stable, it will smooth the emotional reaction to market volatility, but it will also discourage clients from seeking constant updates. (Sometimes, making 10 information boring is a virtue. ) 4. Make the responsible choice easier It has never been easier for investors to monitor market performance. We should make more responsible actions, such as raising savings rates,