Overconfidence Bias:- Overestimation of One's Knowledge or Abilities

Overconfidence Bias:- Overestimation of One's Knowledge or Abilities
Overconfidence bias refers to the psychological effect where one overestimates his or her ability to predict outcomes or even his or her level of expertise in a given area. In retirement planning, overconfidence can cause excessive risk-taking or even poor investment choices, given that individuals may believe that they can "time" the market or pick winning stocks. This can then lead to underperforming portfolios that fail to meet retirement objectives.
How to Combat Overconfidence:-
• Seek Professional Advice: It can be countered by consulting with a financial advisor. A financial advisor can provide objective recommendations based on data and help set expectations for risk and return.
• Use a systematic investment strategy. Instead of trying to pick individual stocks or time the market, focus on a disciplined investment strategy based