The time perspective of financial advisors and its effect on their decision-making

Abstract

Psychological research suggests individuals often display past, present, or future time perspective (TP) biases that impact decision-making. This article examines the TP biases of financial advisors from different backgrounds and whether or not the biases impact client recommendations. Consistent with literature that suggests a link between TP and career choice, advisors are future oriented as a
group, regardless of their professional background. However, contrary to prior TP research, the bias does not appear to impact their professional decisions. Instead, the findings are consistent with research that demonstrates psychological biases are mitigated when professional decision makers perform job related tasks.