New Generation of Young Investors, New Ways of Investing

Young investors that are digitally savvy are upending traditional investment industry business models. The gateway for this new generation of investors is cryptoassets. These investors source information about investments from financial influencers on social media. To attract these new entrants, investment firms will need to innovate and embrace new tools, technologies, and data sources. CFA Institute Research and Policy Center has launched this research series—New Generation of Young Investors, New Ways of Investing—to help professionals, firms, and policymakers understand and react to forces of change that are driven by these young investors.

Decoding Investor Behavior and Avoiding Mistakes
In this CFA Institute Research Foundation Financial Thought Exchange podcast, Peter Lazaroff, author of Making Money Simple, CIO at Plancorp ($7B AUM), and host of The Long Term Investor, shares insights on how behavioral finance is shifting from spotting biases to strategies that help clients feel more confident and content. He covers among other topics:

• The evolution of behavioral finance and how it’s reshaping wealth management practice.
• Why avoiding mistakes (especially misaligned expectations) is more valuable than chasing perfect returns.
• Tailoring financial education across generations, from Baby Boomers to Millennials.
• How risk aversion and liquidity shape portfolio design, and the art of customizing strategies to match client psychology.