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Morningstar behavioral economist Sarah Newcomb, Ph.D. examined a survey of U.S. adults to create a model of financial health, and the results showed that financial behavior and emotional well-being are affected by two simple mental factors that advisors can target to better help their clients achieve financial health.
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This new research outlines: |
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The need to incorporate emotional well-being into our definition of financial health. |
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Why financial behavior improves as investors think further ahead and have a clearer picture of the future. |
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Why people who believe they create their own financial destiny experience, on average, more positive emotions with respect to money, than those who believe they have less power. |
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