Moderate versus adapt
Certified Financial Planner glossary · Certified Financial Planner
Definition
Behavioral intervention rule: moderate cognitive errors with education; adapt the plan around stubborn emotional biases.
Moderate versus adapt in plain English
A client miscalculates probabilities yet will not sell a beloved concentrated stock for emotional reasons. Moderate versus adapt says educate to moderate cognitive errors, but adapt the plan around stubborn emotional biases instead of fighting them with complexity. Product push that answers an emotional bias with a fancier product usually fails. Name the bias type first: if it is cognitive, teach; if it is emotional and entrenched, redesign the plan so the client can live with it.
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