The Smith family is considering how to allocate their investment portfolio to meet both their short-term and long-term financial goals. They have expressed concerns over recent market volatility and its potential impact on their investments. Jason, the patriarch, has successfully invested in equities for years but is now hesitant due to fear of losses, influenced by availability bias resulting from recent market downturns. Meanwhile, Linda, the matriarch, tends to overestimate the risk associated with fixed income securities based on past experiences, leading her to prefer cash reserves over potentially higher yields from bonds.

Considering aspects of behavioral finance, particularly cognitive errors such as availability bias and loss aversion, analyze how these psychological factors may influence the investment decisions of the Smith family. Discuss strategies you would recommend for both Jason and Linda to mitigate these biases and enhance their portfolio management approach, ensuring alignment with their overall financial goals.