As behavioral finance has moved into the mainstream, one thing has become clear.

It’s great to know there’s a way to explain a client’s sub-optimal behavior. But, it’s an entirely different challenge to know what to do about it.

In other words, behavioral finance has done a great job of providing advisors with a list of diagnoses: Overconfidence, anchoring, Dunning-Kreuger

Barry Ritholtz has been on the cutting edge of behavioral finance for years. In this episode, he peels back the curtain to share the specific ways that Ritholtz Wealth Management focuses on improving client behavior.

We discuss:

Why steer clear of market forecasts and focus instead on probabilities
A question to ask clients who believe everything they hear on TV
Effectively setting expectations in the midst of uncertainty
How they minimize bias by naming their portfolios
The “Milestone Rewards” program that discounts fees for optimal behavior

To sign up for Brendan’s monthly newsletter focused on the human side of advice → Click Here

Resources:

The featured partner for this episode is Knudge, an automated system to help clients actually follow through on their tasks and reach their financial goals

Connect with Brendan Frazier:

Epiphany Fellowship Church Podcast

How to Hold in Turbulent Skies | Pastor Mark Lyons | Sunday, March 26, 2023

Remember Everything You Learn from Podcasts