Cognitive and emotional biases are deviations from rationality. Almost all discussions of biases in financial planning focus on how to reduce or eliminate them; to be rational decision-makers. Despite these efforts, most people most of the time make biased decisions – even highly motivated, highly capable people like hedge fund managers and the leaders of large global corporations. Have we yet to discover the secret for eliminating bias? Dr. Matt J. Goren, CFP® argue this is the wrong question. Matt's belief is biases are byproducts of how our brains work and cannot be eliminated. Instead, financial planners can utilize biases to help our clients make better decisions.
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The session opened my eyes to expanded lines of client questioning.
- Wayne W.
love the idea of "removing client from decision-making process", through automation, rules, etc.
- Michael H.
"The application of scientific cognitive bias research to financial planning and advisory activities in general.
New perspectives on artificial intelligence. This was an excellent presentation which aligned with some areas I am currently interested in."
- Mark Z.
Attendees Comments:
The session opened my eyes to expanded lines of client questioning.
- Wayne W.
love the idea of "removing client from decision-making process", through automation, rules, etc.
- Michael H.
"The application of scientific cognitive bias research to financial planning and advisory activities in general.
New perspectives on artificial intelligence. This was an excellent presentation which aligned with some areas I am currently interested in."
- Mark Z.