In this episode, we welcome back Hal Hershfield, Associate Professor of Marketing and Behavioral Decision Making at UCLA Anderson School of Management. Hal is renowned for his pioneering work in understanding how individuals make financial decisions, and he shares invaluable insights that can help us navigate the complexities of financial planning. In our conversation, live from Future Proof, we explore the intersection of behavioural economics, financial decision-making, and the potential for AI to enhance financial advisory services through the lens of Hal’s latest research findings. We explore framing insurance decisions, the impact of generative AI on financial choices, and the often-overlooked realm of end-of-life decisions. Discover why the key to success lies in understanding different consumer segments, how advisors can optimize the frequency of client meetings, and how clients and advisors should be working together. We also unpack the importance of personalized decisions, the value of a decision-making journal, the framework for making the right financial choice, and much more. Tune in to gain valuable insights into behavioural economics, consumer preferences, and the evolving financial planning landscape with Hal Hershfield!
Key Points From This Episode:
(0:02:41) Hal shares his motivation for writing the paper and why the topic of financial decision-making is so vital to understand.
(0:04:28) An overview of our current understanding of financial decision-making and interesting findings from the latest work on the subject.
(0:09:00) How to leverage the current knowledge of financial decision-making to your benefit.
(0:10:27) Opportunities for the industry to improve, both in academia and industry.
(0:15:09) Characterizing the framework for conceptualizing financial decisions, from decision-making to the consequences.
(0:18:13) The biggest gaps and opportunities for future research and the value of writing and maintaining a decision journal.
(0:22:33) The potential of AI to influence financial decision-making, and an example of an exciting use-case.
(0:26:31) Exploring the role of human financial advisors in an AI-dominated world.
(0:29:56) Insights into the steps for a client and advisory firm to work together effectively.
(0:34:07) What area of research in behavioural finance excites Hal the most.
(0:36:23) Bridging the gap between industry and academia.
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Episode 141: Hal Hershfield — https://rationalreminder.ca/podcast/141
Episode 256: Hal Hershfield — https://rationalreminder.ca/podcast/256
