Financial Psychology: Psychological Risk Tolerance

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A client’s psychological risk tolerance, or the client’s enduring personality characteristics related to the ability to withstand the ongoing losses and gains, is a complex and multidimensional set of constructs. This session will help you understand the factors of psychological risk tolerance and how they relate to decisions clients make during times of market downturns.

This session will cover the following client characteristics: self-esteem, self-efficacy, knowledge, emotional stability, risk personality, and risk preference. By understanding psychological risk tolerance, you will have a better understanding of how the client might react to market downturns in the future while also having insights into how you can guide and coach clients to become better investors over time.

Learning Objectives:

  1. Understand how methods from Industrial psychology can be used to identify the tasks performed by clients when managing household finances, including investments
  2. Identify different individual differences characteristics that relate to client decision-making related to investing
  3. Understand the relationship between individual differences characteristics and investing-related outcomes such as trading and comfort with investing

* This webinar is eligible for 1 CFP CE credit. Attendance for the entire live event is required.


Sarah Fallaw



Chris Kopanski

Sr. Product Specialist


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