Here are some interesting (and fun) reads for wealth advisors.

Behavioral Finance

• Nic Colas, of ConvergEx, says “risk on, risk off” might be the most essential hallmark of the current market, but just focusing on the day-to-day whims of capital markets ignores longer-term changes to investor risk preferences. ConvergEx looks at the topic from the vantage point of gender-specific investment choices. (ZeroHedge)
• In May, four people died trying to summit Everest. Using this example, Jeff Wise explains the different kinds of mind traps that can snare victims in different circumstances. (Psychology Today)
• Used TV sellers are anchored on the wrong price — the price they paid for their new TVs. (Priceonomics)
• Anchoring is just one of the biases in this big list of behavioral biases. (The Psy-Fi Blog)
• Dan Ariely, a professor of psychology and behavioral economics at Duke University, examines how, why, and by how much people cheat in his new book, Why We Lie. (Wall Street Journal, excerpt)
• Ariely discussed his book in an interview on NPR. (All Things Considered)

Social Media

• Rich LoPresti, founder and president of Recommended Advisor, wonders if the financial services industry is bearish on social media and, if so, why? (Recommended Advisor)
• In a separate blog post on the “common sense” way for financial advisers to get started in social media, LoPresti says: “Be there, be you, be authentic, be creative, and demonstrate that you actually care to help others. That’s it.” (Recommended Advisor)
• And if you are already on Twitter, check out Josh Brown’s (@ReformedBroker) twitter advice for Goldman Sachs. (The Reformed Broker)

Management

• Chris Barbin, chief executive of Appirio, shares his favorite interview question: “If I were to ask those same three best friends to use one word to describe you, and they can’t use the same word, what’s the one word each would say? What are the three words?” (The New York Times)
• How many times have you heard about friends going into business together and then having a massive falling out? Well, Noam Wasserman, a Harvard Business School professor, says the most common choices for start-ups are the ones most fraught with peril. (The New York Times)

Tax and Estate Planning

• U.S. Trust says one vehicle for philanthropic giving — the charitable lead trust (CLT) — appears to have become attractive to more people. (Capital Acumen)

And Now for Something Completely Different

• For good laugh from @ReformedBroker, read his recent blog post “About your panel discussion…” (The Reformed Broker)

For more news and trends, visit the Private Wealth Management Community of Practice.