Skip to Content
Advisor Insights

Coaching to Mitigate Panic

Helping clients manage emotions has a significant impact on portfolio returns.

What is the value of behavioral coaching? The frequently cited “Advisor’s Alpha” study by Vanguard estimates that the annual financial value of behavioral coaching for investors is 150 basis points, based on observed investor behavior with target-date funds.[1] In a recent Journal of Financial Planning article, I take a deeper dive into the dollars and cents of behavioral coaching—and how it can help investors succeed.[2] Here, we’ll jump straight into the results and what they mean.

Why Do We Need Behavioral Coaching?
One of the benefits is obvious: It can mitigate panic during market downturns. Advisors can help clients avoid selling at the wrong time and missing a subsequent upswing. Beyond the obvious answer, behavioral tools to help investors avoid panic are needed because the industry’s current approach of matching investors to investments is well-intentioned but incomplete. We are putting two competing demands on the investing process by trying to select investments that will both a) deliver the returns that investors need to reach their goals and b) avoid volatility that might lead them to abandon their investment plan.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.