Resource Type: Behavior Tendencies: Domains:

In order to prevent its clients from succumbing too much to the Myopic Loss Aversion phenomenon, Wealthfront prevents them from adjusting their risk tolerance more than once a month:

We go to great lengths in our communication and our information design to portray things in their most appropriate light and to limit self-destructive behavior. For example, we only allow people to adjust their risk tolerance once per month. But in the end, it’s your money, so we design the tools and apps that you demand. Source: How Often Should You Check Your Portfolio? on Wealthfront


About the Author:

Julien Le Nestour
Applied behavioral scientist & international consultant — I am using the results and latest advances from the behavioral sciences—specifically behavioral economics—to help companies solve strategic issues. I am working with both start-ups and Fortune 500 groups, and across industries, though I have specific domain knowledge in banking, asset management, B2B and consumer IT, SAAS and e-commerce industries.

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