Brought to you by Charles Schwab Investment Management Inc., Cerulli Associates and the Investments & Wealth Institute
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About Behavioral Finance

What You Need to Know

Behavioral finance is a sub-field of behavioral economics. It proposes psychology-based theories to explain stock market anomalies, such as severe rises or falls in stock price. The purpose is to identify and understand why people make certain financial choices.

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Behavioral Advisors

Why it Matters

Behavioral Advisors redefine the relationships between advisors and clients by instituting insights on biases, risk-tolerance, cultural and emotional characteristics. They use psychology and behavioral science to remove emotional friction and “coach” their clients based on the techniques they learned from academics, research scientists and practitioners, that can help maximize outcomes for the end investor. They also identify patterns and behaviors to mitigate risks.

Read the exclusive blog on September 11, 2020.

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Benefits of Adopting BeFi Methodologies

How it Helps Advisors

  • APPLY behavioral science techniques to help create better outcomes for clients
  • ADD VALUE by building thoughtful portfolios based on neuroscience
  • REMOVE emotional friction from family planning dynamics
  • EXPLORE many of the driving forces behind financial decisions
  • LEARN how behavioral patterns can affect investment outcomes
  • GAIN insights on how behavioral factors can influence financial markets
  • RETHINK client financial planning, asset allocation, investment manager selection and the creation and execution of investment strategies, based on people’s behaviors

Listen to the BeFi Podcast, Advisor Behavioral Finance Trends Amid Covid-19 w/Omar Aguilar, PhD, brought to you by the Investments & Wealth Institute in partnership with Charles Schwab Investment Management Inc. 0820-0NXY

Listen to the Podcast
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How We Can Help

Get the latest in behavioral finance tips and best practices to ensure that in volatile times, clients are making decisions that are objective, fact-based and best for their long-term goals. We have a full library of online resources to help get you up-to-speed and ready to act with confidence, knowledge and facts.

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Latest Research

Download the BeFi Barometer 2020 Findings 

In today’s ever-changing landscape it is important to raise awareness about the benefits of behavioral finance for advisors and their clients. Our field research helps to educate advisors like you and your clients about the biases that drive disruptive decision making. Now, more than ever, advisors are turning to the world of behavioral finance to help navigate these uncertain times and our research helps uncover the struggles advisors face and offers methods to improve client conversations.



Charles Schwab Investment Management, Inc. (CSIM) is the investment advisor for Schwab Funds, Laudus Funds, and Schwab ETFs and provides non-discretionary advisory services to the Charles Schwab Trust Bank (CSTB) Collective Trust Funds (each a “Trust”, collectively the “Trusts” or “Collective Investment Trusts (CITs)”).Schwab Funds and Laudus Funds are distributed by Charles Schwab & Co., Inc. (Schwab), Member SIPC. Schwab ETFs are distributed by SEI Investments Distribution Co. (SIDCO).  CSIM, Schwab, and CSTB are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation and are not affiliated with SIDCO. 0820-OFFW


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