Invest Well, Be Well

Dr. Daniel Crosby - The Soul of Wealth: Money with Meaning

Episode Summary

A podcast for wiser investing and stronger living. Success in the markets and in life requires sound investments — in our portfolios and our personal wellness. A weekly show, Invest Well, Be Well explores the principles of long-term investing, behavioral finance and peak performance with top-performing investment professionals and cross-industry leaders. Hosted by investment executive Rusty Vanneman and seasoned journalist Robyn Murray, each episode offers practical strategies for building wealth and prioritizing well-being, so you can make better decisions, grow your resilience and elevate your life. This week, we spoke with Dr. Daniel Crosby, Orion’s Chief Behavioral Officer. Educated at Brigham Young and Emory Universities, Dr. Daniel Crosby is a psychologist and behavioral finance expert who helps organizations understand the intersection of mind and markets. Dr. Crosby's first book, Personal Benchmark: Integrating Behavioral Finance and Investment Management, was a New York Times bestseller. His second book, The Laws of Wealth, was named the best investment book of 2017 by the Axiom Business Book Awards and has been translated into Japanese, Chinese, Vietnamese and German. His latest work, The Behavioral Investor, is an in-depth look at how sociology, psychology and neurology all impact investment decision-making. Daniel was named one of the “12 Thinkers to Watch” by Monster.com, a “Financial Blogger You Should Be Reading” by AARP and a member of InvestmentNews prestigious "40 Under 40". When he is not consulting around market psychology, Daniel enjoys independent films, fanatically following St. Louis Cardinals baseball, and spending time with his wife and three children.

Episode Notes

In this episode, we take a closer look at Dr. Daniel Crosby’s new book, The Soul of Wealth and some of its Behavioral Finance applications. In particular, we look at some of the most common behavioral mistakes investors make and what accounts for their persistence.

Tune in to hear:

What brought Dr. Daniel Crosby from practicing Clinical Psychology to Behavioral Finance?
What does the phrase “Soul of Wealth” mean to Dr. Crosby personally?
How do Psychology, Finance and Philosophy all come together in Dr. Crosby’s new book, The Soul of Wealth?
How would Dr. Crosby describe his three books and how they differ from one another?
What does Dr. Crosby think is one of the most common behavioral mistakes that investors still make today and why are they so persistent?
Has investor behavior actually improved with all of the tools and information that Behavioral Finance provides to investors?
How can advisors instruct their clients on how to navigate their biases and better align their investments with their values using Behavioral Finance?
What role does self-awareness play in becoming a better investor?
How can we better integrate emotion and reason when making financial decisions?
How does Dr. Crosby personally define a successful life?
What routines, or practices, help Dr. Crosby maintain clarity, focus and purpose in his work?
If someone only has the time to improve one thing about their financial life this year, what would Dr. Crosby recommend?

Quotes

“Those are the three things advisors can do. They can teach their clients, they can educate their clients on how markets work. They can attend to the environment, give them a portfolio that maximizes the likelihood of their ability to stay the course. [Lastly]...they can be a friend, they can encourage them, during that dark night of the soul, to stay the course” - Dr. Daniel Crosby

“Rather than trying to grit our teeth, and just be emotionless, I think it pays to put emotion on our side in ways that matter and try to make it work for us, because it’s always there” - Dr. Daniel Crosby

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