May 29, 2013
AdvisorOne - To many veteran planners, the recommendations of scientists don’t always seem that useful. Even if an advisor knows that a recommended strategy is theoretically optimal, that doesn’t necessarily mean a client is going to follow it. The right recommendation may be one that recognizes both the theoretical optimum and the behavioral idiosyncrasies of the client. Financial planner and Texas Tech University Adjunct Professor Harold Evensky developed the so-called two bucket strategy to help client’s maintain a scientifically optimal investment portfolio through the use of a behavioral trick—narrow framing.
tags : Texas Tech in the News