PFP2302. 5 Common Behavioral Finance Issues & What To Do About Them

Financial professionals (CFPs, PFPs, CPAs and others) run into behavioral finance issues - biases and heuristics based on human cognitive ability, all the time. These behavioral finance issues can make work with clients difficult, and frustrating for both parties. In this presentation we will discuss five common behavioral finance issues and talk about what to do about them. It can be helpful for financial professionals to be able to recognize these issues in clients, it is even more helpful to understand how to work through them.

Learning Objectives:

• Define behavioral finance among other similar terms like behavioral economics or financial psychology.
• Identify the unique purpose and understanding that behavioral finance brings in work with clients.
• Review and define common behavioral finance issues that financial professionals face.
• Identify how to respond to common behavioral finance issues financial professionals and clients face.
• Highlight research on behavioral finance and glean information from research and apply it to practice.