Understanding the Intersection of Mind and Markets with Dr. Daniel Crosby

The Admired Advisor Podcast

As a financial advisor, it is essential to ensure that clients make informed investment decisions that secure their financial futures. However, client behavior, emotions, and biases can often get in the way. These factors can cloud judgment and impact the ability to make smart investment choices.

In this episode, Steve talks with Dr. Daniel Crosby, Chief Behavioral Officer at Orion. Daniel is a psychologist, behavioral finance expert, and asset manager who applies his study of market psychology to everything from financial product design to security selection. He is co-author of the New York Times bestseller Personal Benchmark: Integrating Behavioral Finance and Investment Management and founder of Nocturne Capital. Daniel was named one of the "12 Thinkers to Watch" by Monster.com, a "Financial Blogger You Should Be Reading" by AARP, and in the "Top 40 Under 40" by Investment News.

A psychologist and behavioral finance expert who helps organizations understand the intersection of mind and markets, Daniel talks with Steve about behavioral management, the framework for helping clients make better investment decisions, and how advisors can differentiate themselves from their peers.

Key Takeaways

• [02:28] - How Daniel got to where he is today.
• [06:14] - How Daniel simplifies psychology into a practical, solution-focused approach.
• [09:07] - What a typical week looks like for Daniel.
• [16:02] - How advisors can learn behavior management.
• [21:28] - What Daniel thinks about advisors showing vulnerability to clients.
• [24:17] - How to determine whether a client is on board with an advisor.
• [27:04] - Why clients fail to implement a financial plan.
• [30:14] - The framework for helping clients make better investment decisions.
• [35:07] - How advisors can differentiate themselves from their peers.
• [40:02] - Daniel's biggest 'aha' moment in his career.

Quotes

[18:55] - "The number one reason people fail to seek an advisor is the fear of being judged." ~ Dr. Daniel Crosby

[20:33] - "Looking at behavioral finance as a mirror of your own behavior, doing your own work, putting yourself in situations where you're a rung down on the power ladder, and getting feedback are powerful ways to learn behavioral skills." ~ Dr. Daniel Crosby

[38:52] - "People don't want wealth management. They want happiness, and they want freedom and time with family. Help them understand how you're going to get that." ~ Dr. Daniel Crosby

Links

• Dr. Daniel Crosby on LinkedIn
• Dr. Daniel Crosby on Twitter
• Standard Deviations Podcast
• The Behavioral Investor
• Eric Clarke
• Predictably Irrational
• Morningstar

Connect with our hosts

• Steve on LinkedIn
• Buckingham Strategic Partners

Subscribe and stay in touch

• Apple Podcasts
• Spotify
• Steve on LinkedIn
• Follow Buckingham Strategic Partners on Twitter

Disclosure

For informational and educational purposes only and should not be construed as specific investment, accounting, legal, or tax advice. Certain information is based upon third party data which may become outdated or otherwise superseded without notice. Third party information is deemed to be reliable, but its accuracy and completeness cannot be guaranteed. Some analysis presented is based off current economic information and may become outdated or irrelevant without notice. Individuals should speak with their qualified financial professional based on his or her unique circumstances. Neither the Securities and Exchange Commission (SEC) nor any other federal or state agency have approved, determined the accuracy, or confirmed the adequacy of this podcast. © 2022 Buckingham Wealth Partners, LLC. Buckingham Strategic Wealth, LLC and Buckingham Strategic Partners, LLC (collectively, Buckingham Wealth Partners)