Moderate or adapt or Moderate and Adapt?

[Reallyfrustrated]

I previously thought that emotional biases you’d have to adapt to whereas cognitive you’d have to moderate to. Not sure if this hard and fast rule applies. I thought moderate and adapt would be if there’s a mix. Is this right or is there another approach to figure this out?

 

[Galli]

I think it largely depends.
Cognative biases are more likely to be treated with education
Emotional biases are more likely to be treated through adapting

 

[spork]

I think the size of the investor’s portfolio relative to their spending needs is an important factor.
If they have emotional biases and their portfolio is adequate, then adapt. If it’s clear they won’t be able to meet their goals I think you’ll need to do a mix of the two.

 

[cpk123]

you have the 4 way chart to determine that in the book. refer to that and use it as a guideline. (I am referring to Exhibit 5, of pg 84 of my 2014 books).
Your factors are
SLR = Standard of Living Risk and Wealth Level on the Y-Axis
and Cognitive Emotional on the X axis.

 

[Audacious]

High Wealth (Low SLR); do whatever he wants ; cater for his emotional deficiencies; make him feel he’s important; give him a hug; send flowers in his birthday; marry his daughter
Low Wealth (high SLR) - Cognitive: educate
Low Wealth (high SLR)- emotional: smack him on the face; ask him to shut up and listen to what you’re saying.