Course Overview

Description: Behavioral finance attempts to explain the what, why, and how of finance and investing, from a human perspective. This implicitly recognizes the difference between "rational financial decision-makers" and "irrational financial decision-makers.” In a perfect world, everyone would make rational financial decisions. But, in the real world, people often make sub-optimal decisions for all sorts of reasons — some of which are predictable. As financial planners, we can be better positioned to be of far greater value to clients by understanding the often predictable ways clients make suboptimal financial decisions. And, by integrating behavioral finance into a financial planning practice, planners will be able to better explain, anticipate, and ameliorate client behavior. In a changing financial services landscape that features robo-advisors, internet technology, and zero commissions, dealing with the uniquely human aspects of financial planning is clearly the future of financial planning. In this session, Gary Clement, President at Clement Asset Management, LLC, will cover what behavioral finance is, why it’s becoming more important, how a planner might implement behavioral finance in their practice, and make the case that behavioral finance is the future of financial planning.

 Learning Objectives/Outcomes: After this session, participants will be able to: 

  • Understanding the predictable ways clients often make suboptimal financial decisions. 
  • Integrate behavioral finance into your financial planning practice 3. Explain, anticipate, and ameliorate client behavior


Instructor: Gary Clement

Principle Knowledge Topic: General Financial Planning Principles

Credits: 1