130: Behavioral Finance Ideas Proven To Enhance Client Outcomes with Dan Egan

As Betterment’s Director of Behavioral Science, Dan Egan knows that understanding human behavior is key to your client’s financial success. But knowing that’s true and knowing what to do about it are two different things. There are a lot of opinions thrown around in the behavioral finance space on what works and what doesn’t. And you probably don’t want to “test” some of these ideas on clients you hope to work with for 10-30 years. For years, Dan has been testing behavioral finance interventions to figure out what actually works (and what is a waste of time). In this episode, he reveals proven ideas you can implement to enhance your client’s outcomes without having to go through your own trial-and-error process. What You’ll Learn: How to frame taxes to prevent impulsive decisions How visualizing goals makes saving more consistent Why you should NOT engage clients during a market downturn How robo-advisors actually enhance the value of human advisors The two types of clients most likely to panic during market volatility *To sign up for Brendan’s newsletter packed with resources to master the human side of advice → Click Here Resources: “Siddhartha” by Hermann Hesse “Zen and the Art of Motorcycle Maintenance” by Robert M. Pirsig “Atomic Habits” by James Clear 30 Lessons for Living by Karl Pillemer, Ph. D. Research by Dilip Soman Research by Eric Johnson Research by Abby Sussman Michael Kitces Connect with Brendan Frazier:  RFG Advisory LinkedIn: Brendan Frazier Connect with Daniel P. Egan: LinkedIn: Daniel P. Egan Betterment Advisor Solutions About Our Guest:  Dan Egan is a behavioral finance professional and the Director of Behavioral Science at Betterment. With years of experience applying behavioral principles to financial technology, Dan focuses on improving client outcomes by helping people make better decisions, especially during stressful times. His work highlights the powerful intersection of psychology and technology in shaping the future of financial advice. – Content here is for illustrative purposes and general information only. It is not legal, tax, or individualized financial advice; nor is it a recommendation to buy, sell, or hold any specific security, or engage in any specific trading strategy. Information here may be provided, in part, by third-party sources. These sources are generally deemed to be reliable; however, neither our guest nor RFG Advisory guarantee the accuracy of third-party sources. The views expressed here are those of our guest. They do not necessarily represent those of RFG Advisory, its employees, or its clients. This commentary should not be regarded as a description of advisory services provided by RFG Advisory, or performance returns of any client. The views reflected in the commentary are subject to change at any time without notice. Securities offered by Registered Representatives of Private Client Services. Member FINRA / SIPC. Advisory services offered by Investment Advisory Representatives of RFG Advisory, LLC (“RFG Advisory or “RFG”), a registered investment advisor. Private Client Services and RFG Advisory are unaffiliated entities. Advisory services are only offered to clients or prospective clients where RFG Advisory and its representatives are properly licensed or exempt from licensure. No advisory services may be rendered by RFG Advisory unless a client agreement is in place. RFG Advisory is an SEC-registered investment adviser. SEC registration does not constitute an endorsement of RFG by the Commission, nor does it indicate that RFG or any associated investment advisory representative has attained a particular level of skill or ability.