January 2023: Behavioral Finance
Brought to you by
Ryan Insurance
COVER STORY
Untangling Behavioral Finance and the Psychology of Financial Planning
By Bradley T. Klontz, Psy.D., CFP®
Recognizing a client’s behavioral bias doesn’t necessarily mean that planners are equipped to address it without causing more pushback.
PRACTICE MANAGEMENT
Developing Leadership Capabilities to Drive Engagement
By Gerry Herbison, CFP®, D.B.A., ChFC, CASL, CLF
The most effective leaders focus on getting results and inspiring team members who stay engaged and focused on the firm’s objectives.
FEATURE
Availability Bias: Retrievability, Narrow Range of Experience, and Client Behavior
By Sydney Hanson and Blain Pearson, Ph.D., CFP®, AFC
Patience is key to addressing these two forms of availability bias among clients that can hamper an investor’s financial wishes.
FPA NEXT GENERATION PLANNER
Featured Article
Expanding Your Practice with Tax Planning and Preparation
By Luis Rosa, CFP®, EA
Case Study
Kyle and Megan Lancett—Just Starting Out and Feeling Overwhelmed
By Tanya Staples, CFP®, and Ashlyn Rollins-Koons
My Career Path
Anora Gaudiano on the Transition from Financial Journalist to Financial Planner
Planning a STUDY GROUP? Check out suggested questions and other resources to make your study group a success!
COLUMNS
Fintech
Where Behavioral Finance and Embedded Finance Intersect
By Dani Fava
Clients encounter myriad opportunities for impulse spending. How does that affect financial planning and goal setting?
Leadership
Three Strategies for Team Resilience During Volatile Markets
By Barbara Kay, LPC, RCC, TIPC
Relentless stress can drain energy and effectiveness. Planners can help clients and employees focus on the positive.
Marketing
Behavioral Finance, Meet Behavioral Marketing
By Kalli Fedusenko
Understanding why clients do what they do helps planners maximize the impact of their communications.
Social Security
An Evaluation of Recent Social Security Reform Proposals
By William Reichenstein, Ph.D., CFA
Two proposals have the potential to dramatically change Social Security’s role in retirement income.
RESEARCH
Which Social Security Claiming Strategy Generates the Highest Legacy Value?
By Wade D. Pfau, Ph.D., CFA, RICP, and Steve Parrish, J.D., RICP, AEP, ChFC, CLU
It’s time to analyze whether delaying Social Security as long as possible for a higher payout or claiming earlier to invest the distribution provides a longer lifetime value.
Earn one CFP CE® credit by reading this month's Journal and access past exams for additional credits.
DEPARTMENTS
STARTING THOUGHTS
When Procrastinating Pays Off
By Danielle Andrus
OBSERVER
Impacts of the Inflation Reduction Act on Medicare: What Financial Advisers Need to Know
Stat Bank
Q&A
James Lee on Title Protection and What It Means for Clients
VOICE
The Path to True Financial Wellness
JFP ACADEMICS
Upcoming Research
IN CASE YOU MISSED IT
The Science of Building Trust and Commitment in Financial Planning: Using Structural Equation Modeling to Examine Antecedents to Trust and Commitment
By Megan McCoy, Ph.D., LMFT, AFC, CFT-I; Ives Machiz, CFP®; Josh Harris, CFP®, AFC; Christina Lynn, CFP®, AFC, CDFA; Derek Lawson, Ph.D., CFP®; and Ashlyn Rollins-Koons
Technical skills aren’t enough to earn clients’ trust. New research identifies five antecedents to building trust and getting client buy-in.
