An article in The Wall Street Journal warns: “Your 401(k) is up. Don’t let it go to your head.”

Checking your 401(k) is the feel-good move of the year. After the stock-market rally, it now feels safe to peek at your 401(k) balance again. That is a relief for the millions of people whose retirement accounts are still recovering from the bruising they took in 2022, when the S&P 500’s total return was -18.11%.

Don’t let your self-worth balloon along with your net worth, financial advisers warn. They say the overconfidence that comes with making big gains can cause people to take bigger risks with their investments. And that makes us feel like we’re savvier investors than we really are.

Neuroscience backs up the idea of overconfidence being a problem. Research on the brain has found that increases in dopamine, a brain chemical that likely gets released when you see large returns in your account, can lead to more financial risk-taking.

Possible Preaching Angle:

That’s good financial advice, but the Bible also warns that, more importantly, it’s good spiritual advice.