Using Behavioral Economics To Motivate Your Clients To Stay The Course

 

Brad Klontz, who runs YourMentalWealth.com, has a number of tricks for getting investors on the right page emotionally.

 

Some of them may work for specific clients, but it really boils down to showing them what you mean on an intuitive level -- and not simply blowing them away with facts and figures.

 

Many advisors like using numbers and statistics to speak to clients' rational side. Unfortunately, Klontz says, those facts are at best ignored.

 

 

Other things you can try to convince especially stubborn clients that the long-term perspective is the right one to take include using examples, not statistics.

 

The emotional brain loves stories, so concoct a few scenarios -- supported by real math, of course -- and see if that helps. Your recalcitrant client may see himself or herself in the happy endings or recoil from the sad ones.

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