{"id":279501,"date":"2026-02-04T01:58:19","date_gmt":"2026-02-04T01:58:19","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/279501\/"},"modified":"2026-02-04T01:58:19","modified_gmt":"2026-02-04T01:58:19","slug":"why-retirement-can-make-investors-trade-too-much-the-irish-times","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/279501\/","title":{"rendered":"Why retirement can make investors trade too much \u2013 The Irish Times"},"content":{"rendered":"<p class=\"c-paragraph paywall \"><a href=\"https:\/\/www.irishtimes.com\/tags\/retirement\/\" target=\"_blank\" rel=\"noreferrer nofollow noopener\" title=\"https:\/\/www.irishtimes.com\/tags\/retirement\/\">Retirement<\/a> is supposed to give people the gift of time. For investors, however, more hours in the day can backfire.<\/p>\n<p class=\"c-paragraph paywall \">A recent study using Swedish <a href=\"https:\/\/www.irishtimes.com\/tags\/tax\/\" target=\"_blank\" rel=\"noreferrer nofollow noopener\" title=\"https:\/\/www.irishtimes.com\/tags\/tax\/\">tax<\/a> data finds retirees become far more active in the stock <a href=\"https:\/\/www.irishtimes.com\/business\/markets\/\" target=\"_blank\" rel=\"noreferrer nofollow noopener\" title=\"https:\/\/www.irishtimes.com\/business\/markets\/\">market<\/a>, but their portfolios perform worse.<\/p>\n<p class=\"c-paragraph paywall \">Freed from the time pressures of work, retirees increase trading by 7.7 per cent. Their portfolios become more diversified, holding 8.2 per cent more stocks, and they take a more cautious approach to borrowing.<\/p>\n<p class=\"c-paragraph paywall \">More stocks and less leverage might suggest that retirees are trying to be more informed, careful and engaged investors. However, the extra effort doesn\u2019t pay off. Even with extra time to focus on the markets, retirees\u2019 portfolios perform worse than before. <\/p>\n<p class=\"c-paragraph paywall \">In other words, spending more hours analysing and buying stocks does not result in smarter investment decisions.<\/p>\n<p class=\"c-paragraph paywall \">It might seem paradoxical, but the results are hardly surprising. Behavioural finance has long shown that more trading usually reduces returns, as emotional reactions and overconfidence creep in. <\/p>\n<p class=\"c-paragraph paywall \">Retirees may also be falling prey to the so-called work ethic fallacy, the belief that more effort automatically produces better results. The simple, boring reality is that buying and holding a diversified portfolio routinely outperforms even the best-intentioned tinkering. <\/p>\n<p class=\"c-paragraph paywall \">Retirement may deliver more time, but the market continues to favour those who mostly leave it alone. <\/p>\n","protected":false},"excerpt":{"rendered":"Retirement is supposed to give people the gift of time. For investors, however, more hours in the day&hellip;\n","protected":false},"author":2,"featured_media":198999,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[72,176,61,975,60,174,175,1611,1859],"class_list":{"0":"post-279501","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-finance","10":"tag-ie","11":"tag-investment","12":"tag-ireland","13":"tag-personal-finance","14":"tag-personalfinance","15":"tag-retirement","16":"tag-sweden"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/279501","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=279501"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/279501\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/198999"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=279501"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=279501"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=279501"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}