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Some Clients Feel Fear, Anxiety, and Worry More Than Others The tendency to feel worry, fear, and anxiety is normally distributed. Practically, this means that some of your clients will tend to experience these negative emotions more frequently than others, regardless of your efforts to help them become “fearless” investors, budgeters, etc. We refer to the tendency to feel negative emotions in an investing context as volatility composure, and it is related to neuroticism (also …
Article Title: Re-Examining the Experiential Advantage in Consumption: A Meta-Analysis and Review Publication: Journal of Consumer Research Authors: Evan Weingarten, Joseph K. Goodman Citation: Weingarten, E., & Goodman, J. K. (2020). Re-examining the experiential advantage in consumption: A meta-analysis and review. Journal of Consumer Research, 47 (6), 855–877. https://doi.org/10.1093/jcr/ucaa047 Premise Previous research has demonstrated that consumers experience an experiential advantage when they buy experiences rather than material goods. The authors (Weingarten & Goodman, 2020) completed …
When Ashley Quamme and I set out to start Trove, we felt something was missing in the industry. Specifically, we felt like advisors were missing a community that focused on practical advice and guidance on the behavioral side of financial planning. To address this, we wanted to create a space where advisors could receive specific, actionable feedback on client scenarios and ways to incorporate behavioral assessments to address challenging client situations. Most importantly, we wanted to facilitate a community that learns …
Why do so many financial planning websites include sailboats and sunsets? The idea behind this is, of course, that sailboats and sunsets may equate to a satisfied retirement or contentment in life (at least, to the target market of those firms). We want to believe that the plans we provide lead to positive financial outcomes, and in most cases, we can see objectively how those plans work out. The value of achieving financial goals …
Clients have various characteristics that influence their investment decisions. Many advisors understand that a significant part of the value of working with clients is helping them manage their mindset when it comes to investing. However, understanding investor psychology requires knowing what to measure. In the following text, we will examine several characteristics that can influence a client’s overall investor psychology, also known as behavioral risk tolerance. By measuring investor personality, advisors can identify which …