By employing the lessons taught by behavioral finance, advisors can deliver even more value to their clients, better managed expectations, and potentially build even stronger relationships along the way. And by understanding the behavioral profile of a client, advisors can add significant value by taking a more targeted and customized approach, which can help clients achieve their investment objectives by staying the course.
Behavioral finance concepts can also enable advisors to enhance the asset allocation and portfolio construction processes, while defining a systematic approach for implementation and rebalancing that better match a client’s risk tolerance and their behavioral profile. By doing this work, advisors can potentially achieve better client outcomes and stronger, longer lasting relationships, which can help differentiate advisors in a competitive and fast-changing industry.
Information provided herein is for general information purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any Investment decisions.
This information is not intended to be a substitute for specific individualized tax, legal, or investment planning advice.
Diversification strategies do not ensure a profit and do not protect against losses in declining markets.
Schwab Asset Management® is the dba name for Charles Schwab Investment Management, Inc. Schwab Asset Management is a subsidiary of The Charles Schwab corporation.
