Behavioral finance has been given a significantly increased level of importance at a practical level with the UK regulator taking a greater behavioral finance direction in its overseeing of financial services.
Compelling research and behavioral finance insights illustrate how discovering your clients’ financial personality will help them to manage the risks that have a significant impact on their financial planning.
As a financial advisor, you have done a good job of helping your pre-retired clients dream, define their ideal goals and manage a portfolio to achieve those goals. But that may or may not have anything to do with their reality.
Three thoughts that could change the way your customers view risk.
If you don’t decide strongly for yourself the favorable outcome you want out of a client/advisor relationship, your success as an advisor will likely come from others’ definition of success.
What client behavior risks do you address when building and managing a financial plan for your clients? Do you limit your risk analysis to investment risks? Or do you address a broader range of investment risks?
Turbulent markets and the need to add value are bringing the topic of client and advisor behavior to the forefront. Capture all dimensions of financial personality using a highly validated and reliable psychometric model.
With the end of the year approaching, it’s time for a review of your business performance in 2012. The following 10 behavioral strategies will ensure a successful year-end and help you plan for the new year.
When discussing financial planning issues, there is so much talk about investor behavior. However, rarely does the discussion get to the advisor’s behavior. Have you ever considered how much the advisor’s behavior impacts the investors performance?
You don’t need a parachute to skydive; you only need a parachute if you plan to skydive twice. Likewise, you don’t need a good financial plan, you only need a good one if you plan to keep your wealth.