Mike MilliganFounder and CEO, 1.oak Financial · Founder and CEO, 1.oak Financial

Why Smart People Make Emotional Money Decisions

9 Feb 2026 · 1 min

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In this interview excerpt, financial expert Mike Milligan explains why retirees often react emotionally to market volatility. He identifies the availability bias—people’s tendency to focus on the most recent, loud headlines—as a driver of panic selling and account‑checking when markets fall. Milligan stresses that without a solid long‑term investment strategy, retirees are more likely to make impulsive decisions. He advises that a well‑defined long‑term plan acts as a filter, turning market noise into background chatter that can be ignored, thereby helping retirees stay grounded and avoid costly panic actions.

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So how do you do it? How do retirees stay focused when the market's going bonkers? What do people do?
Well, let's face it, headlines are loud, markets are jumpy, and people check their account balance more often when the market goes down than when it's going up. Behavioral finance calls this availability bias, focusing on what's loudest, not what's most relevant. That can lead to panic selling and freezing altogether. So here's some tips on how to stay grounded in your financial plan. If you're— if you don't have a long-term strategy, or, uh, if you don't have a long-term strategy, you're more apt to panic sell. That's why having a long-term strategy makes that just noise, and it's something that you can ignore.