In a new survey sponsored by Charles Schwab Investment Management, more than 300 advisors revealed what they think about behavioral finance and how they're using it.

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Top survey trends

  • Advisors are more likely to incorporate behavioral finance into their everyday communication with clients, rather than in their portfolio construction process.

  • Advisors say the most common behavioral biases impacting their clients are recency, loss aversion and confirmation. Advisors rank loss aversion and overconfidence as their most prevalent personal biases.

  • Advisors cite strengthening trust, improving clients' investment decisions and better managing expectations as the greatest benefits of behavioral finance.

  • While advisors recognize the value of behavioral finance, many find it challenging to apply it in everyday practice.

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We can help

Charles Schwab Investment Management is committed to providing insights and resources to help advisors implement behavioral finance into practice which can enhance the client experience, deepen relationships, and potentially improve client outcomes.