In this episode of the Adviser 3.0 The Podcast, Abraham Okusanya welcomes Dr Sarah Newcomb, a renowned behavioural economist at Morningstar and author of Loaded: Money, Psychology, and How to Get Ahead without Leaving Your Values Behind. This conversation offers advisers a rare window into the psychological forces that shape financial decisions — and how those forces can be harnessed to improve retirement outcomes.
Understanding investor behaviour: beyond the numbers
Sarah shares how her research into money psychology helps decode investor behaviour. Rather than focusing solely on risk tolerance or returns, she advocates for a deeper look into the emotional and cognitive patterns that drive financial choices. These insights can help advisers build better rapport, encourage behavioural discipline, and support long-term planning success.
From research to real-world planning
Sarah discusses how her work at Morningstar bridges the gap between academic theory and everyday financial advice. She explains how behavioural economics can be turned into tools that advisers can use in client conversations, from goal setting to reframing financial narratives.
Highlights from Loaded
Drawing on her book, Loaded, Sarah unpacks the concept of money scripts — unconscious beliefs formed early in life that shape how we view money. She explains how understanding these scripts can lead to more meaningful, values-aligned financial decisions. Advisers can use this approach to personalise planning and build trust.
Lessons from advisers and clients
Through years of research and fieldwork, Sarah has learned invaluable lessons from both financial professionals and their clients. She shares examples of where psychology made the difference in outcomes and what truly effective advisers do to connect, educate, and guide.
How Sarah invests her own retirement money
In a moment of professional candour, Sarah outlines how she manages her personal retirement portfolio. Her approach reflects behavioural best practices: automated, diversified, low cost, and aligned with her long-term values.
Listen in for leadership, insight and inspiration
This episode of Adviser 3.0 The Podcast is essential listening for financial planners interested in client experience, operational efficiency, and long-term success.
