Behavioural science and financial planning: Three key adviser tips

'People often act against their long-term best interests'

clock • 4 min read

Dan Kemp shares his top three tips drawn from behavioural science to help clients reach their goals. One of the key insights of behavioural science is that people are predictably irrational. That is, they often act against their long-term best interests to address an immediate need. This creates a particular challenge for advisers as financial planning tends to require clients to make good decisions in the present in order to reap the rewards in the future. This task is especially challenging when the capital markets are volatile as we all tend to respond poorly to nasty surprises....

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