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Behavioral Finance: How to Help Clients Avoid Bad Investments

By Suresh Sadagopan, CFP, India

Do we change the fundamental course of our lives based on what is happening in our environment? We may do some course correction, but fundamental changes are unlikely and we most likely persist with what we have believed in all along.

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Investment Behavior: How to Help Clients Steer Clear of Irrational Decisions

By Simon Hassan, CFP, New Zealand

It’s a real challenge protecting clients and ourselves from natural “thinking mistakes”.

Behavioral economics has drawn our attention to the fact that the central assumption of traditional economics – that we behave rationally, often fails to hold.

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How Does your Advice Process Reflect the Findings of Behavioral Finance?

By Taylor Liao, CFP, Chinese Taipei

As a financial planner, it was hard for me to understand what it was like for my clients. Consumers get their information from and are influenced by several mediums such as the media and product sellers. Banks or fund houses, for the sake of selling more products, will release market information that a market has potential to grow in the future and usually this information causes consumers to invest, no matter how high the price of the fund is.

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The Lemming Effect and Its Impact on Financial Planning

Daehong Kwon, CFP, KoreaBy Daehong Kwon, CFP, Korea

Recently there have been an increasing number of attempts made to integrate behavioral finance into financial planning. It is indeed only recent that behavioral finance has been systemized as a science, getting a lot of limelight, even though studies on human behavior and psychology have been done for a very long time.

I have learned from my experiences of talking to clients that knowing something is one thing and putting it to action is quite another. More indicative of the limitation of human beings than making a mistake due to lack of knowledge might be making one even with knowledge. One good

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Behavioral Finance: Progress Makes Perfect

By Cora Pettipas, CFP, Canada

There have been many times I have questioned people’s sanity in their relationship with money. My most vivid memory of this was when I waddled into a Starbucks (I was eight months pregnant). On the way to the counter, I passed a young opulent-looking couple sipping lattes and saying to their toddler son, “you are never going to college, no you’re not, no you’re not!”

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Financial Planet Poll: What is the most important behavioral characteristic you look for in new clients?

Trends in the Financial Planning Industry

Mukesh Dedhia, CFP, IndiaBy Mukesh Dedhia, CFP

In India, about 10 or 20 years ago, if you were lucky enough to have a relative who was an insurance agent, your family would receive financial advice. With growing complexity in financial products, more people started looking for somebody to help them make the right decisions.

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How do Clients Feel During the Financial Planning Process?

By Steve Helmich

All of you know and hopefully love the 6 stage advice process. It’s what financial planning is built on – the foundation of great advice. It is familiar, reliable and structured – as a planner you can manage your time and your business because you know where you stand. But what about your clients?

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