Client Engagement Skills FPC007B Task 1: Forum Submission and Review

This discussion post analyzes the issue of status quo bias in client engagement within financial planning, specifically addressing the reluctance of clients to alter their portfolio compositions even after experiencing positive returns. The author identifies this behavior as a significant challenge, particularly for retirees, and connects it to the behavioral bias of loss aversion, which ironically leads to increased risk exposure. The post also includes a response to another student's post, discussing the relevance of the status quo bias, along with the potential for other behavioral biases like chasing trends and overconfidence. The author also provides references to academic articles that provide additional insights into the topic. The assignment highlights the importance of understanding and mitigating behavioral biases to improve client outcomes in financial planning.