Behavioral & Psychological Finance with Jay Mooreland, MS, CFP

Over the past 20 years or so, we’ve observed many doctors making common mistakes at all stages of their careers. We have taken our observations, as well as enlightening discussions with well-established professionals in wealth preservation spaces to bring you our Asset Protection Series: Interviews dedicated to bringing awareness to various risks that can affect your wealth. Every Friday, Anthony Williams and our guest of the week will discuss critical questions to consider and provide tips on how to work towards obtaining comprehensive asset protection.  This week we are excited to present our interview with Certified Financial Planner practitioner, Investment Advisor Representative and Behavioral Economist Jay Mooreland.

To help advisors increase their value and coach their clients to make better financial decisions, Jay founded The Behavioral Finance Network and has created several behavioral applications for businesses. In addition to speaking across the globe on the topic of investor behavior, he has published several articles in industry journals and wrote the Amazon bestseller, The Emotional Investor: How Biases Influence Our Investment Decisions…and what you can do about it. Academically, Jay obtained a Bachelor of Science in Finance from San Jose State University and a Master of Science in Applied Economics from the University of Minnesota.

Interview Questions & Topics

1) Thinking about retail investors specifically, what are some of the behavioral issues you’ve witnessed or experienced, and what can they do to overcome them?

  • Propensity to be influenced by the news & other media
    • Availability bias: the human tendency to think that examples of things that come readily to mind are more representative than is actually the case
    • Media is not there to help investors retire or make good decisions; they are there to make people tune in
  • Educating and becoming aware of self behavior is the first step to rational decision making

2) Taking into consideration COVID-19 & all of the social/civil movements happening, what are some of the things wealth strategists can do to overcome mental biases?

  • Understand & share communication plan with clients
    • Learn by practicing
  • Develop good habits of discipline
    • “This is who I want to become, and this is how I get there.”
  • Turn off the media

3) What can people do when facing a loss that will help them manage expectations and make better decisions?

  • Understand types of financial loss
    • Temporary
    • Permanent
  • We cannot control volatility, but we can control our actions
    • Stop looking and stick to the plan

Watch the full interview with Jay Mooreland:

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Securities and advisory services offered through Cetera Advisors LLC, Member FINRA/SIPC, a broker/dealer and a Registered Investment Advisor.  Cetera is under separate ownership from any other named entity.