August 2020 NAPFA Advisor Magazine - Full Issue-August 2020 NAPFA Advisor Magazine

August 2020 NAPFA Advisor Magazine - Full Issue

Pdf Summary

Behavioral economics studies the irrational aspects of decision-making, challenging the assumption that individuals always act in their best interest. It is important for financial advisors to consider clients' emotions and biases when providing advice, as emotional responses can influence decision-making. Engaging clients through open-ended questions and active listening can help address their concerns and build trust. Self-awareness of biases and emotions is also crucial for advisors. Behavioral economics in financial planning enhances client-advisor relationships by considering both rational and emotional factors. NAPFA members have provided insights and expertise in various media outlets.

Keywords

behavioral economics

decision-making

irrational aspects

financial advisors

emotions

biases

advice

engaging clients

active listening

trust