Mastering Investor Psychology: Strategies for Financial Advisors to Keep Clients Invested

The Bucket Plan® On-Demand Podcast

Mastering Investor Psychology: Strategies for Financial Advisors to Keep Clients Invested

In This Episode

You already know the effect emotions can have on your client’s investment preferences, but what about the effect it has on their portfolio performance?

Join host Dave Alison and special guest Mark Peterson, Director of Market & Portfolio Insights at BlackRock, as they discuss the critical role of investor behavior in financial planning.

Discover how understanding and managing client emotions can lead to better investment outcomes and more resilient financial plans.

Key Points Discussed:

The Importance of Investor Psychology: Learn why controlling emotions is fundamental to successful investment planning and how it can prevent clients from making irrevocable decisions during market volatility.
Behavioral Pitfalls: Identify common investor biases such as recency bias and overconfidence, and understand how these can derail investment performance.
Best Practices for Advisors: Gain practical tips on how to initiate conversations about investor behavior with clients, including the use of tools like the volatility tolerance analysis.
Bear Market Planning: Understand the importance of having a bear market plan and how to discuss it with clients proactively.
Educational Strategies: Explore ways to continuously educate clients about market behaviors and the benefits of a diversified portfolio to mitigate emotional decision-making.
Real-World Examples: Hear about real-life scenarios where investor psychology played a crucial role in financial outcomes, including the impact of the 2020 market downturn on retirees.

Tune in to gain valuable insights on how to incorporate investor psychology into your advisory practice, help clients navigate market uncertainties, and ultimately achieve better financial outcomes.

Resources:

Chart Referenced: S&P Envy chart
Webpage Referenced: Psychology of Investing at BlackRock
Tool Referenced: Student of the Market by BlackRock

Statistics:

About the Host:

Dave Alison is an accomplished financial planner and business leader committed to helping advisors expand their reach and improve the quality of their service to clients. In addition to being the President and a Founding Partner of C2P and the Founder and CEO of Alison Wealth Management — his own financial services firm — he is also the President and Founding Partner of Prosperity Capital Advisors, an acclaimed planning-first RIA. Dave leverages his expertise in all things financial planning, particularly taxes and solutions for high-net-worth clients, to educate financial professionals on best practices and ways to raise the bar in their own practices. Wealth Management, his own financial services firm.

About the Guest:

Mark Peterson is a Director on the Market & Portfolio Insights team, focused on investment strategy and education. He is a 25+ year industry veteran with extensive expertise and experience educating advisors and investors on market and investment topics. Mark’s responsibilities include relating BlackRock’s investment strategy and investment views to advisors and investors. Mark is the author of the popular Student of the Market monthly publication that is distributed widely to advisors across the country.

Prior to joining BlackRock, Mark was a Director and Head of Product Strategy and Economics at Deutsche Bank. Mark has also spent time on the floor of the Board of Trade and Chicago Mercantile Exchange. Mark received a BS from Arizona State University.