HYPERBOLIC DISCOUNTING: THE IMPACT OF TIME ON ASSET ALLOCATION DECISIONS (1 CFP CE APPROVED & BY IMCA FOR CIMA®, CPWA® OR CIMC®)

Contrary to “rational thought” as defined in economic theory, real investors make different choices depending on the time horizon of their investments. They feel differently about money they need tomorrow and money they will need in 10 or 20 years.  Understanding clients’ preferences for different asset classes over different holding periods is key to building portfolios that balance their simultaneous desire for predictability and long-term returns. Helping retired clients navigate the tradeoffs between predictability and long-term returns leads to portfolios that clients find intuitive, they can stick to through turbulent markets and lead to a better chance of achieving their financial plans.  Find out:

·        Why clients tend to prefer smaller payoffs now over larger payoffs later

·        How hyperbolic discounting tends to impair retirement saving and portfolio construction

·        How you can frame investment strategies to fit your clients view of money through time