Client Testimonial
"Over 28 years in the business, I've attended many professional development opportunities. Doug Lennick's Behavioral Advice / Behavioral Finance Workshop was the best investment I've made. He gave me the tools to better manage client emotions, beginning with my own."
Client appointments are more productive and positive. They are taking a longer view and making reasoned, more values-based decisions. I feel my relationship with clients, while always good, are getting stronger.
If you are a conceptual thinker, I highly recommend the Lennick Aberman Group's Behavioral Advice Workshop Series."
- Michael E. Smith, CFP, Senior Financial Advisor, Ameriprise Financial
Top 5 Benefits of Behavioral Advice / Behavioral Finance
1. Financial advisors who practice Behavioral Advice / Behavioral Finance and deliver it to their clients is the biggest differentiator in the financial services industry today.
2. Advisors who manage their own emotions while helping their clients manage theirs during difficult market conditions will enable advisors to deliver superior client portfolio performance. (Click here for White Paper Study & Results)
3. Behavioral Advice training not only supports client satisfaction and retention, but also impacts advisor satisfaction, retention and performance.
4. Behavioral Advice will not replace financial planning. It will simply increase the effective usage of the financial plan by improving decision-making behavior.
5. Financial advisors who develop their Behavioral Advice competencies will ultimately improve their leadership of staff, associates, clients and themselves.
What is Behavioral Advice / Behavioral Finance?
Behavioral Advice / Finance has existed for several years, working in conjunction with the field of traditional finance.
In brief, financial advice is based primarily on Nobel Prize-winning, modern portfolio theory. All learnings related to asset allocation, efficient frontier and model portfolios remain important. However, all are based on the premise that investors and consumers make rational decisions without bias and essentially will trade-off decisions based on risk and reward potential.
Behavioral Advice involves the integration of traditional finance, behavioral finance and neuroscience. While conventional theory predicts that people behave rationally, research has proven that people frequently behave irrationally. Irrational behaviors are often stimulated by extreme emotions, either positive or negative.
With a focus on Behavioral Advice, LAG helps financial advisors understand that people often behave in an irrational, biased-manner.
More specifically, LAG points out that people are more averse to loss than originally thought, and that loss tolerance is dynamic, not static. As a result, more time should be spent focusing on loss tolerance than risk tolerance.
LAG enhances the effectiveness of financial planning advice by more explicitly adding the concepts of Behavioral Advice. LAG trains, develops and improves the moral and emotional competencies necessary to help advisors and clients make better decisions throughout the financial planning process.
Behavioral Advice does not replace financial planning. It simply increases the effective usage of the financial plan by improving decision-making behavior.
Through workshops, training exercises, assessment tools and coaching support sessions, LAGâwill deliver Behavioral Advice Services to you so you can deliver outstanding service to your clients.