How financial advisors are factoring for emotions in money management [Video]

New technologies have given people access to more information and new tools to manage their money.

Robo-advisors can build and rebalance portfolios based on customer preferences. However, automation doesn’t factor in people’s emotional needs.

Experts say adding behavioral science to investing knowledge can help financial advisors get better results for their clients. 

Advisors are increasing their use of artificial intelligence tools for more rote tasks, such as research, scheduling and even stock picking.

That change is one of the drivers that has more investment advisors focused on behavioral science to understand how and why people make the financial decisions they do. Behavioral economics combines the study of economics and the study of psychology to understand how people make financial decisions.

“For too long as a profession, we have been taught that we should be ignoring emotions,” said certified financial planner Tim Mauer, chief advisory officer at SignatureFD, which has offices in Atlanta and …