065: Daniel Crosby on Why Financial Advisors Need to Understand Human Behavior to Better Serve Their Clients

065: Daniel Crosby on Why Financial Advisors Need to Understand Human Behavior to Better Serve Their Clients

Bo Eason

On today’s podcast, Dr. Daniel Crosby is back for round 2! Daniel’s first appearance is still one of our show’s most-downloaded episodes to date. So, I’m honored to have him back on and I know all of you are going to get a ton of value from this one.

In this conversation, we dive into Daniel’s most recent book, The Behavioral Investor, in which he examines the sociological, neurological and psychological factors that influence our investment decisions and sets forth practical solutions for improving both returns and behavior. It’s one of the most comprehensive examinations of investor behavior done to date, and he provides readers with concrete solutions that will refine their decision-making processes, increase self-awareness, and help them constrain the fatal flaws to which most investors are prone.


Here are 3 of my big takeaways from this episode…
  • [04:06] Daniel’s advice for financial advisors whose clients are interested in cryptocurrency and other emerging tech or investments.
  • [15:46] What your primary role as a financial advisor is and what your clients are wired by evolution to want (which also tend to be in constant opposition).
  • [37:42] How the best financial advisors build financial plans for their clients (rather than portfolios) in order to help them get to where they want to go.


  • [04:06] Why Daniel doesn’t own any cryptocurrency, but has more respect for it than he did initially – and his advice for financial advisors whose clients are interested in cryptocurrency and other emerging tech.
  • [15:46] We talk about Daniel’s new book, The Behavioral Investor. He explains why there’s no understanding of capital markets without understanding human behavior, as well as how financial advisors can use this knowledge to protect their clients from themselves.
  • [22:48] What people looking for a new financial advisor should be searching for – and why training, education, and approach aren’t good predictors for success in any industry.
  • [25:45] Why clients tend to do the opposite of what they should in bull and bear markets – and how the market you begin investing in influences your worldview and philosophy.
  • [37:42] The reason decades of experience makes it hard for many financial advisors to be true fiduciaries – and the mentality you need to adopt to offer the best possible service.
  • [41:14] How financial advisors unintentionally let marketers define the products they offer.
  • [45:14] The biases that affect not just clients, but financial advisors themselves – and why we’re so bad at taking our own advice.
  • [50:25] How watching video of Daniel’s psychology practice in graduate school greatly benefited his work as a financial advisor.
  • [52:34] Why women are perfectly positioned to be financial advisors and asset managers despite the myth that men are better with money.
  • [55:28] Daniel’s first memory of money – and how travel and mission work transformed his mindset.
  • [1:03:25] Daniel’s advice to his 21-year-old self.
  • [1:05:07] How Daniel uses Twitter to build his following and stay authentic – and how financial advisors can use the platform to grow their audience.




Thanks for checking out the latest show on to this weeks’ featured reviews.

This weeks’ first review comes to us from user Harrier86.

Thanks so much for the review and for listening in! I find it fitting that so many of these reviews mentioned the episode I did with John Israel who did the Mr. Thank You Project where he wrote five handwritten thank you cards a day for an entire year. It’s fitting to read reviews like this one in the month of November where obviously we have Thanksgiving to take time and just be grateful for everything we all have. I know sometimes in financial services the days are fast, and client meetings can sometimes be stressful, but we really do work in the best industry out there where you can make a massive impact on not only your clients but on generations to come… so if you haven’t lately, take a moment to just sit there, be present, and realize the amazing work you do because we truly all sit in a seat where we can make a massive difference for those we serve!

The next review comes to us from user Irish2478…

I appreciate the kind words Irish2478! Love the fact that the show has become a part of your morning routine. I find most top performers turn their commute into a time where they can educate themselves whether with an audio book, a podcast, or some other form of bettering themselves. In fact for those of you who haven’t checked out the episode with Hal Elrod, he discusses his Miracle Morning routine on episode 32 (available at www.bradleyjohnson.com/32). Awesome to hear that our show can be that for you, and for those of you out there that have an idea or a guest that may be an awesome fit for the show, don’t hesitate to connect with me out on Twitter and make some introductions. Some of my very best guests have come from our audience’s suggestions. You can find me at @brad_johnson out on Twitter. Please connect with me there!

The last featured review for this week comes to us from mfrye6140.

So awesome to hear that you’re out there making an impact for others! Thanks for taking the time to leave a review and for listening in. Since a few of these reviews have mentioned gratitude and showing thanks and we do happen to be in the month of November… here’s a quick idea that I would love for you all to run with.

This has become a bit of a family tradition for our family that we do around Thanksgiving every year. We call it being a “secret shopper”. It’s one of the most amazing experiences and you can literally pull it off in an afternoon and just create an incredible experience for some lucky strangers.


Take the 1st Step to Building Your Ideal Practice: Apply for “Virtual Discovery Session

For those of you that have interest in diving deeper or figuring out how you may be able to have our team help you implement many of the ideas shared on the show, my day job happens to be consulting financial advisors from all over the US on how to grow their business and design a practice that serves them, versus them serving it. Yes it’s possible to grow your business and work less, this is a model we’ve replicated over and over in markets all over the country… So, if you’d like to apply to see if it makes sense for us to have a 1-on-1 conversation on how to overcome what may be getting in your way, you can do that at bradleyjohnson.com/apply. It takes about 5 minutes to fill out the application so we can understand what your business looks like, what challenges you may be facing and how myself and my team may be able to help. We then dive into a Discovery session where we ask a lot of questions based on your survey. We do a lot of listening, and take a lot of notes to build a rough draft of our proprietary Elite Advisor Blueprint – 90 Day Plan™. Taking the first step is as simple as applying at bradleyjohnson.com/apply 🙂


Already heard it once or twice? Please leave a short review here, and tell me which guests I should have on!

Chris McChesney - iTunes

Chris McChesney - Stitcher


Read More



Elite Advisor Blueprint Podcast is provided for informational purposes only. Producers are ultimately responsible for the use or implementation of these concepts and should be aware of any and all applicable compliance requirements. Results from the use of these concepts are no guarantee of your future success. Financial professionals should always follow current policies regarding the discussion of cryptocurrency, including Bitcoin as required by any broker-dealer or

Registered Investment Advisor with which they may be affiliated, the insurance carriers they represent, federal regulations and state insurance regulations. Investment advisors are strongly encouraged to obtain pre-approval from the broker-dealer and/or registered investment advisor with which they may be affiliated.

Posted in

Brad Johnson

Subscribe for new episodes of The Elite Advisor Blueprint® Podcast.

Subscribe to Brad's Podcasts and Updates

Brad podcast v2

Also, get access to WealthManagement.com exclusive articles with key takeaways that you can put into action at your own practice!

Robert Glazer

081: Robert Glazer on Elevating Your Team and Creating a High Performing Company Culture

kirk lippold

080: Commander Kirk Lippold on USS Cole Al-Qaeda Attack & How to Lead in Times of Crisis – The Virtual Financial Advisor Series™

Maria Konnikova

079: Maria Konnikova on The Psychology of High-Stakes Poker and How it Applies to Financial Services

Simon Bowen

078: Simon Bowen on How to Use Visual “Whiteboarding” Models to Simplify the Complex – The Virtual Financial Advisor Series™