Most financial advisors have experienced the frustration: a well-crafted financial plan is presented, the client nods with enthusiasm, and then… nothing. No action. No follow-through. Despite the best technical advice, the plan stalls out. Why does this happen and more importantly, how can you improve the odds that your clients act?
The answer lies in behavioral financial advice (BFA) an approach that addresses the emotional, psychological, and behavioral factors that influence client decision-making. By incorporating behavioral insights into the planning process, advisors can improve follow-through, enhance outcomes, and elevate their relationships with clients.
The Real Problem Isn’t the Plan It’s the Behavior
In most cases, the plan itself isn’t the issue. The problem is behavior. Clients often intend to act but fail to follow through due to stress, fear, habits, or underlying beliefs. As Ryan Goulart of think2perform put it, “Investments work. Investors don’t.”
Technical plans assume rational actors. But research including decades of investor behavior analysis from firms like DALBAR consistently shows that investors underperform their investments due to poor timing and emotional decisions. It’s not about knowledge. It’s about execution.
The Brain on Money: Why Logic Alone Fails
Your clients are not just spreadsheets and statements they’re humans with complex emotions, biases, and mental shortcuts. Neuroscience shows that emotions can biologically restrict cognitive thought especially under stress. That means during market downturns or big life decisions, your client may literally not be thinking straight.
When clients experience fear (like during a bear market), their brain processes it similarly to facing an actual bear in the woods. The instinct? Run. Which leads to reactive, irrational decisions that often derail the best-laid financial plans.
Behavior Follows Meaning: The Power of Values
One of the most powerful ways to influence client behavior is by helping them connect their values to their financial goals.
Values + Goals + Behaviors = Collaborative Advice
When clients articulate what really matters to them family, freedom, impact, legacy they’re more likely to take the steps required to support those values. This creates emotional alignment with the plan, which is the key to action.
The Values Exercise, a free tool used in the BFA program, gives clients the language to define their core values. Advisors then use those insights to frame financial decisions in a more meaningful way.
From Expert to Guide: Your Role Is Evolving
Clients no longer just need experts who deliver data they want guides who help them navigate uncertainty. As an advisor, your greatest value lies not just in creating the plan, but in helping clients make decisions they will stick with.
This mindset shift from technical expert to behavioral guide builds trust and deepens relationships. You help clients clarify what they want, confront what’s getting in the way, and take action that aligns with who they want to become.
Three Ways to Increase Client Follow-Through Using BFA
- Start with values, not numbers.
Before you get into projections and asset allocations, ask: What matters most to you? and How should money support that?
- Understand the behavior gap.
If clients hesitate to follow through, explore this question: What emotion or belief might be blocking this action?
- Anchor decisions to meaning.
Use the values exercise to reveal what your client truly cares about—and use those insights to drive behavior change.
The Outcome: Better Results, Stronger Relationships
When clients feel understood, seen, and supported in a way that goes beyond the numbers, they are more likely to commit to the plan and follow through on it. Advisors who integrate behavioral financial advice into their practice report:
- Increased implementation rates
- Higher client retention
- Greater emotional resilience during market volatility
- More fulfilling, purpose-driven work
Ready to Elevate Your Practice?
Behavioral financial advice isn’t just about soft skills. It’s a performance-enhancing framework for serious advisors. It helps you create plans that stick, advice that resonates, and relationships that last.
Interested in learning more? Explore the BFA program or try the free Values Exercise with your next client.
