To mitigate the negative effects of overconfidence and status quo bias, financial planners should implement a strategy based on a proper risk tolerance profile, a diversified asset allocation strategy using mutual funds and exchange-traded funds, and yearly portfolio rebalancing.

Authors

• Person: Not available Organization: Financial Planning Association
  Understanding Behavioral Aspects of Financial Planning and Investing

Sources

• Understanding Behavioral Aspects of Financial Planning and Investing www.financialplanningassociation.org Financial Planning Association via serper

Referenced by nodes (5)

• overconfidence bias concept
• risk tolerance concept
• financial planner concept
• portfolio rebalancing concept
• Mutual Funds concept