Financial advice is no longer just about managing assets. Clients expect more—peace of mind, better decision-making, and guidance that aligns their money with their values. This is where Behavioral Financial Advice (BFA) becomes the differentiator
What Clients Actually Value from Financial Advisors
According to Vanguard’s 2022 study, the top three things clients value when working with a financial advisor are:
- Peace of mind (86%)
- Time saved (76%) – about 100 hours per year compared to DIY investors
- Positive emotions (71%)
Notice what’s missing? Investment performance. While important, performance is not the top driver of client loyalty or satisfaction. What clients want most is a trusted partner who helps them feel confident and aligned.
Why the AUM Model Limits Growth
The industry has long relied on assets under management (AUM) as the foundation of growth. But as referrals get harder to sustain and competition increases, performance alone is no longer enough.
The Organic Growth Study (2024) showed that firms chasing only larger and larger clients hit a ceiling. Differentiated growth now comes from offering unique, human-centered value, not just competing on basis points.
The Advisor Capacity Problem
Advisors face a challenge: time. Research shows that advisors spend about 55% of their time with clients, 23% on operations, 13% on team development, and the rest on admin work.
Technology and AI can help by automating routine tasks, but they won’t replace human connection. As Adam Holt, CEO of Asset-Map, shared at think2perform’s 10th Annual Evolve Conference:
“Advice engagement is the glue of client lifetime value.”
AI may outperform humans in math and efficiency, but only advisors can build trust, empathy, and lasting relationships.
How Behavioral Financial Advice Creates Differentiation
Behavioral Financial Advice integrates behavioral finance, neuroscience and psychology into the planning process. Advisors trained in BFA help clients:
- Make better decisions under stress and emotion
- Stay aligned with their stated values and goals
- Build trust through deeper conversations that go beyond money
One BFA-trained advisor shared a story about a client struggling to save for education while overspending. By placing a sticker labeled “Education”—the client’s top value—on their credit cards, the advisor created a real-time reminder that reshaped daily financial choices.
This is the power of values-based advice.
The Alignment Model: Values, Goals, Behaviors
Think2Perform’s Alignment Model gives advisors a simple framework:
- Values – What matters most?
- Goals – Where does the client want to go?
- Behaviors – What actions will get them there?
When all three align, clients increase the probability of making rational financial decisions—even when emotions are running high.
Building Trust in the AI Era of Financial Advice
At Think2Perform, we believe the future of advice isn’t about replacing human expertise with algorithms—it’s about deepening human connection. Trust remains the ultimate differentiator.
Clients want advisors who:
- Understand what drives me – uncovering the values and motivations behind my financial decisions.
- See the full picture – connecting my money to my family, career, health, and long-term goals.
- Guide me with clarity – helping me make confident choices that reflect both my priorities and my possibilities
This is the essence of Behavioral Financial Advice: aligning values, goals, and behaviors to build lasting trust. No algorithm can replicate the human ability to listen with empathy, uncover motivations, and hold clients accountable to the life they want to live.
As Doug Lennick often says: “Plans and pie charts don’t change lives—people do.” Advisors who integrate BFA into their practice don’t just differentiate; they create stickier relationships, stronger referrals, and sustainable growth by helping clients live their ideal lives with confidence.
Ready to Differentiate and Grow?
At think2perform, we believe that plans and pie charts don’t change lives—people do. Advisors who integrate behavioral financial advice move beyond money and create lasting impact for their clients and communities.
Take our free Values Exercise to discover how values shape financial decisions.
Explore the Behavioral Financial Advice Program to integrate BFA into your practice.
Frequently Asked Questions (FAQs)
What is Behavioral Financial Advice (BFA)?
Behavioral Financial Advice is a designation and training program that teaches advisors how to integrate emotional intelligence, values, and behavioral finance into client conversations.
Why do clients choose advisors beyond performance?
Clients value peace of mind, time savings, and positive emotions more than portfolio returns. They want advisors who reduce stress and help them make better life decisions.
How does BFA help advisors grow?
By differentiating beyond performance, advisors deepen client loyalty, increase referrals, and build more resilient practices.
What is the Alignment Model?
The Alignment Model is a framework that connects values → goals → behaviors, helping clients stay aligned and make rational financial choices.
