Opinion: Thaler’s Nobel Prize tells investors to mind their manners around money
By Dan Egan
You can see Thaler’s influence in the work we do at Betterment to help investors optimize their behavior. Using simple methods like email and in-app notifications, we’ve tested how we can improve customer behavior with randomly controlled trials. A more complete expression of Thaler’s influence in individual investment advice is in our Tax Impact Preview feature, which informs investors of the potential tax cost when making a change to their account. In our initial test, we found that customers who were given access to this feature executed about 14% fewer changes to their allocations than those who didn’t have access.