What Is Behavioral Finance?
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.
What Do advisors who Implement Behavioral Finance Do?
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.
The Investments & Wealth Institute in partnership with Charles Schwab Investment Management, Inc., have joined forces to bring greater awareness to the field of behavioral finance. Together, they are leveraging their resources to educate members of the financial community.
The 1st Annual Behavioral Advisor Forum is the premier educational conference, brought to you by the Investments & Wealth Institute, for elite advisors who wish to incorporate into their practice the latest research and best practices in the field of behavioral science. Helping clients make better financial decisions is both an art and science, and a way to add significant value as an investment or wealth advisor. Learn more here.
New survey findings from a collaborative partnership between Charles Schwab Investment Management, Inc., Investments & Wealth Institute® (formerly IMCA) and Cerulli Associates provides financial advisors with new insights and greater understanding of the growing field of behavioral finance. Download the research findings here.
Day 2 includes General Sessions:
Robert Powell, editor of Retirement Daily at The Street, interviews Omar Aguilar, Ph.D., CIO of Equities and Multi-Asset Strategies, Charles Schwab Investment Management, Inc. about how behavioral finance is innovating and advancing the investment advisory industry. Listen to the Exceptional Advisor series on iTunes, Spotify, and SoundCloud or here.
Explore how behavioral biases and sociological influences impact investor decisions, family dynamics, or advisors' practices with this three-part recorded webcast series. Access the web series here.
Advisors face numerous unique challenges when working with clients, especially when market corrections occur. During heightened market volatility, it’s important for advisors to use all available tools to manage clients and their portfolios. Read 4 Tips for Advisors Using Behavioral Portfolio Construction here.
The Applied Behavioral Finance Course gives advisors the tools to understand and properly navigate their clients' roller coaster of emotions and unspoken biases toward investing, as well as their own. Get started here.
Behavioral Advisors redefine the relationships between advisors and clients by instituting insights on biases, risk-tolerance, cultural, and emotional characteristics. Join the conversation on Twitter, Facebook and Linked In. #BeFiWeek
Charles Schwab Investment Management is not affiliated with the Investments & Wealth Institute. 0919-9Y8C
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