PFP2435. Applying Behavioral Finance In Your Financial Planning Practice

An increasing volume of research is making clear what financial planners have long known – that clients do not always act in a purely rational manner. But it’s one thing to recognize that clients sometimes make irrational decisions, and another to really understand what drives those decisions and how to help clients avoid the most damaging mistakes. In this session, advisors will learn what the behavioral finance research has shown about our not-always-rational decision-making process, and how to consider making adjustments to the delivery of their financial planning services to help clients achieve more desirable outcomes through better communication and enhanced trust.

Learning Objectives:

• Identify the brain’s decision-making process and the limitations of rational thinking on decision making.
• Apply behavioral finance concepts to how clients are engaged and communicated to as part of the financial planning process.
• Apply behavioral finance concepts to reshape planning recommendations so that they are better communicated to clients in order to better facilitate client implementation.