Retirement Advisor: Changed Thinking, Changed Behavior (Podcast)

Summary

• In periods of turbulence, like Q4 of last year, did your clients despair or did they remain calm? Achieving the latter should be a benchmark for being an effective advisor.
• If we’ve learned anything from the field of behavioral economics, it is that a rational approach to investing is decidedly not our default setting.
• To change behavior, we need to change the thinking behind it. And adopting certain kinds of behaviors is supportive of changing one’s thinking.

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In periods of turbulence, like Q4 of last year, did your clients despair or did they remain calm? Achieving the latter should be a benchmark for being an effective advisor.

This podcast (3:55) argues that client education and behaviorally sensitive wealth management can change a vicious cycle into a virtuous one.