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In this video presentation, Michael Finke, PhD, CFP® and David Blanchett, PhD, CFP® discuss how neuroeconomics and behavioral economics help advisors better understand how individuals make decisions about saving and investing for retirement. We present the 2-systems cognitive model and explain how it is consistent with inertia and loss aversion in retirement savings. Recent data from retirement savers is presented and we discuss which investors respond to losses in the market by shifting money out of stocks.
Learning Objectives
Upon successful completion of this course, you will confidently be able to:
- Recognize how the 2-systems cognitive model
- Understand the importance of savings defaults, and how they both harm and benefit savers
- Recognize how policies such as auto-escalation take advantage of inertia to produce better savings outcomes
- Evaluate which investors are most likely to experience an emotional response to investment risk
Presenters
Michael Finke, PhD, CFP®
David Blanchett, PhD, MSFS, CFA, CLU®, ChFC®, CFP®
CFP® CE Credit
This content is eligible for two hours of CFP® continuing education (CE) credit.
If you hold the CFP® mark and would like to receive CFP Board CE credit for this content, please ensure your CFP® ID number is entered here.
The College’s Professional Recertification Program (PRP)
This content is eligible for two hours of PRP continuing education credit.
To begin, click on the button below. As you move through the content, make sure to mark each page complete by clicking on the appropriate button, and then click Next Lesson at the bottom of each page. Once you complete the entire activity, the progress bar will show 100%.
Behavioral Finance and Retirement Planning
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