People talk a lot about behavioral finance but don’t know how to use it systematically. We have figured it out.
Taking a modular approach, we break it down into a set of behavioral factors, such as investor type, behavioral biases and financial IQ, each independently assessed, giving you maximum flexibility.
All behavioral factors are then rolled up into a Behavioral Risk Index, a single number to indicate how likely the client will make irrational investment decisions during market turmoil. You can use it to prioritize and have better targeted conversations.
This page provides explanations and talking points to help you use it effectively with clients.