45: Behavioral Finance and How Betterment is Optimizing Around It

Dan Egan is the Director of Behavioral Finance and Investments at Betterment. He has spent his career using behavioral finance to help people make better financial and investment decisions. Dan is a published author of multiple publications related to behavioral economics. We were fascinated at the prospects of how technology and psychology may be blended to help us as investors make better decisions, and in many ways, make fewer decisions. Dan joins us to talk about his background in the field, analysis of mountains of behavioral data, and how Betterment is optimizing their platform around a very important part of investing – human emotions. Links: WebsiteLinkedin @daniel_eganBetterment archives for Dan Egan > Try Betterment for 6 Months Free with this link Discussed: Betterment CEO Jon Stein: A Decade of Pioneering Robo Advisory - ILAB 22 Sam Mark’s Personal Millions and Show Introduction - ILAB 01 From $1k to Future Millionaire: Johnny FD’s Investments - ILAB 02 From $0 to Self Made, How to 300X Your Investment - ILAB26 Time Stamps: 03:53 - Beginning in behavioral finance 06:50 - Stock market crash 10:20 - Altering decisions from emotion 14:20 - Personality traits for investing 19:00 - Tax impact preview 23:30 - Conservative and liberal taxpayers 26:00 - Buy and hold vs. active manager 28:00 - Getting hired at Betterment 31:00 - The Betterment team 34:44 - Design and user experience 38:00 - Recession and market crisis plan 43:28 - Marketing timing and dips 46:22 - Internal growth vs. the competition 51:20 - Call in advisor service 56:10 - Making quick emotional decisions 59:30 - Anticipating the next downturn 1:00:30 - Investing in yourself 1:06:00 - Surfing in Bali & skiing in Tahoe 1:06:40 - Betterment vs. other Robo-advisors   If you enjoyed this episode, do us a favor and share it! Also if you haven’t’ already, please take a minute to leave us a 5-star review on iTunes and claim your bonus here! Copyright 2017. All rights reserved. Read our disclaimer here.  

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Interviews with the world's best investors and find out what they are currently investing in whether it be the stocks, retirement accounts, Wealthfront, Betterment, Vanguard, mutual funds, real estate, Forex, REITs, or other types of Investing methods. Millionaire and Entrepreneur Sam Marks, Johnny FD & Derek Spartz invest alongside listeners as they share their personal portfolios as they save their hard earned money for travel, life and retirement. Invest Like a Boss covers all aspects of investing in the modern age in a fun, entertaining way. The show hosts interview the worlds best investors, financial Insiders, entrepreneurs and CEOs to find out what they are investing in and strategies to gain outsized returns. In this modern age of investing, new investment instruments are popping up each day, from P-2-P lending, to robo-advisors, equity crowd-funding to REITS. Investors today need to combine centuries of investment wisdom with an modern outlook and approach. Entrepreneurs Sam Marks, Johnny FD & Derek Spartz each took different paths to success to now focus on learning how to invest alongside the listeners in order to put their hard earned money to work. Copyright Invest Like a Boss Inc.