The Human Side of Money 130: Behavioral Finance Ideas Proven To Enhance Client Outcomes with Dan Egan
As Betterment’s Director of Behavioral Science, Dan Egan knows that understanding human behavior is key to your client’s financial success.
But knowing that’s true and knowing what to do about it are two different things.
There are a lot of opinions thrown around in the behavioral finance space on what works and what doesn’t.
And you probably don’t want to “test” some of these ideas on clients you hope to work with for 10-30 years.
For years, Dan has been testing behavioral finance interventions to figure out what actually works (and what is a waste of time).
In this episode, he reveals proven ideas you can implement to enhance your client’s outcomes without having to go through your own trial-and-error process.
What You’ll Learn:
- How to frame taxes to prevent impulsive decisions
- How visualizing goals makes saving more consistent
- Why you should NOT engage clients during a market downturn
- How robo-advisors actually enhance the value of human advisors
- The two types of clients most likely to panic during market volatility
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Resources:
- “Siddhartha” by Hermann Hesse
- “Zen and the Art of Motorcycle Maintenance” by Robert M. Pirsig
- “Atomic Habits” by James Clear
- 30 Lessons for Living by Karl Pillemer, Ph. D.
- Research by Dilip Soman
- Research by Eric Johnson
- Research by Abby Sussman
- Michael Kitces
Connect with Brendan Frazier:
Connect with Daniel P. Egan:
About Our Guest:
Dan Egan is a behavioral finance professional and the Director of Behavioral Science at Betterment. With years of experience applying behavioral principles to financial technology, Dan focuses on improving client outcomes by helping people make better decisions, especially during stressful times. His work highlights the powerful intersection of psychology and technology in shaping the future of financial advice.
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