How financial advisors can best manage biases.

A recent study conducted by Cerulli Associates and MarketCast found that a majority of affluent investors exhibit behavioral biases that can be addressed by financial advisors. The study surveyed investors with over $250,000 in assets and prospective clients under 45 years old earning over $125,000 annually. The most common biases identified were availability, confirmation, recency, and loss aversion. The study also highlighted the importance of technology and holistic financial planning in addressing these biases and creating sustainable long-term portfolios. Fintech firms like DataPoints and Morningstar offer tools and resources to help advisors navigate these biases and have meaningful conversations with clients. Additionally, the field of financial therapy is growing, with more advisors incorporating therapeutic methods and behavioral finance tools into their practices. [Extracted from the article]