Behavioral finance in practice

behavioral-finance-1

How Behavioral Finance Can Boost Goals-Based Investing

For many financial advisors, the practice of behavioral finance still remains somewhat abstract. They recognize the importance of understanding investor behavior and working through it to improve investment outcomes, said Chuck Widger, founder and executive chairman of investment management firm Brinker Capital, but, largely because of a lack of practical tools, finding the best way to implement and incorporate behavioral finance into their practice is still a challenge for many advisors. Widger and Daniel Crosby, behavioral finance expert and founder of consulting firm IncBlot, co-authors of the new book “Personal Benchmark: Integrating Behavioral Finance and Investment Management,” believe behavioral finance works best when it’s meshed into a workable investment management solution that’s grounded firmly in the idea of goals-based investing. ….[READ]

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