50 Minute Breakout Session: Fast and Slow Thinking in Client Conversations
Based upon Daniel Kahneman’s behavioral economics survey book, “Thinking: Fast and Slow,” we examine the ways in which behavioral biases enter into conversations between financial advisers and clients.
There are universal errors in judgment (behavioral biases) that we are hard-wired to make as humans. The field of behavioral economics studies how these intersect with decisions individuals make about risk. In any given client conversation, as many as ten or twenty biases can reveal themselves to us in different ways:
- We recognize them in the client’s history (the client says, “I was stupid to do that”).
- The client comes in with a new and different idea (“I saw this on TV…”).
- Or, maybe, we realize we are victims of biases ourselves (“I knew better and I still did it.”)
We will review a survey of common biases and discuss ways in which we can discover and arrest fast, emotional thinking in favor of slow, rational decision making, for both our own good and for that of clients.
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Workshops - Our Relationship with Money 