Effective intervention involves acknowledging clients' cognitive biases with delicacy and honoring their beliefs based on experience. It is crucial to recognize that many beliefs are subconscious, thus mirroring back what the client expresses can be very powerful. By reflecting their attachment to certain beliefs or investments, advisors can build rapport and guide clients towards more informed decisions.
Dr. Charles and Dr. Brad talk about the usefulness (and lack thereof) of behavioral finance as it relates to financial planning practice. They then dive into several of the biases and heuristics that they see as most relevant to a practitioner and how each can be applied in practice.