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Your Money Guide on the Side

Your Brain Is Stealing $245,000 From Your Retirement (Here's How to Stop It)

Your Money Guide on the Side

Tyler Gardner

Business, Education, Entrepreneurship, Investing, How To

4.9 • 2.4K Ratings

🗓️ 15 December 2025

⏱️ 49 minutes

🧾️ Download transcript

Summary

Here are a few helpful resources from the people who support this show and keep it free for you. Always.  If you’ve ever wondered whether you’re doing “fine” with your money or just hoping future-you figures it out, Facet sets you up with a team of expert CFP® professionals who look at your entire financial life — not just your investments, and not just the parts that are fun to talk about at dinner parties. No commissions. No product pushing. Just real advice for one flat annual membership fee.  If you're interested in heading into 2026 with a real financial plan from real experts, check out Facet today, here. -- Most people don’t lose money because they pick terrible investments. They lose money because they’re human. In Part 1 of this two-part series on behavioral economics, Tyler walks through the five most common psychological biases that quietly, systematically sabotage investment returns — even when you’re invested in low-cost index funds and “doing everything right.” This episode is about the stuff that happens between your ears. The mental shortcuts. The overreactions. The stories we tell ourselves after the fact. In this episode, we cover: Why overconfidence makes investors trade more and earn less How recency bias convinces us that whatever just happened will keep happening Why we overvalue the investments we already own (even when we shouldn’t) How loss aversion turns normal market volatility into bad decisions Why hindsight bias makes the past feel obvious and the future feel predictable (it isn’t) This isn’t about being smarter than the market. It’s about building systems that protect you from your own instincts — automation, diversification, fewer decisions, and a little less checking. If the show has helped you think differently about money — maybe even made you laugh while doing it — please take 30 seconds to leave a review on Apple or Spotify. It helps more than you think and keeps this whole experiment in free, digestible financial literacy alive and well.

Transcript

Click on a timestamp to play from that location

0:00.0

Our brains, magnificent as they are at things like recognizing faces and remembering song lyrics from

0:07.0

1987, were designed by evolution to keep us alive in the jungle, not to optimize our Roth IRAs.

0:16.0

We're running Savannah software on stock market hardware, and it's causing spectacular, expensive errors

0:24.4

that would be hilarious if they weren't happening to our actual money.

0:30.8

Hello, friends, this is Tyler Gardner, welcoming you to another episode of your Money Guide

0:35.9

on the Side, where it is my job to simplify

0:38.5

what seems complex, add nuance to what seems simple, and learn from and alongside some of the

0:44.5

brightest minds in money, finance, and investing. So let's get started and get you one step

0:50.1

closer to where you need to be. Welcome back to your Money guide on the side, the podcast where we attempt to make your money

0:58.1

work harder so you don't have to, or at least so you can worry about it less while you're

1:02.8

working hard at other things, like pretending to pay attention during Zoom meetings or finally

1:07.4

learning to make sourdough, which, let's be honest, you're never going to do,

1:11.3

but I appreciate that we all have our mental endeavors, nonetheless.

1:15.7

I am thrilled you're still here, genuinely.

1:18.6

What I mean by still is we're now at years end.

1:21.8

We've almost made it through an entire year of this podcast journey or endeavor.

1:27.1

So as always, before we jump in, A, thank you,

1:30.7

B, I have a small favor to ask, which I promise is less awkward than asking you to borrow money.

1:36.3

If this podcast has helped you, maybe prevented you from panic selling during a market dip,

1:41.5

helped you understand why index funds aren't actually boring but

1:45.5

brilliant, or both, or simply made you feel less alone in your financial confusion.

1:51.8

Please consider leaving a review on Apple Podcasts or wherever you're listening.

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