Financial Account Framework
Investment objective, liquidity, and time horizon are three variables that can be used as a basis for a financial account framework. Financial accounts are considered those that comprise financial assets and includes bank, brokerage, retirement, education accounts, and others based on personal circumstances.
Cognitive Biases and Emotions
Cognitive biases and emotions work in concert to influence our decisions, thus we need to be aware of both and deploy mechanisms to mitigate negative influences. Similarly, investors need to be aware of how firms also deploy mechanisms that mitigate biases and emotions within firms when making decisions, because it is the sum of these decisions that determines if firms, and our investments, succeed or potentially fail.