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Part of brain may be resisting financial planning; Advisers should appeal to the prefrontal cortex, avoid the limbic system.(News)

Byline: Gary S. Mogel

NEW YORK - Advisers hoping to convince clients that they need a long-term financial plan should do their best to appeal to the prefrontal cortex of their clients' brains - and steer clear of the limbic system altogether.

"The prefrontal cortex - the analytical part of the brain that controls contingency planning - is what differentiates us from lower life forms,'' said David Laibson, an economics professor at Harvard University in Cambridge, Mass., who specializes in the link between investment decisions, and physiological and psychological factors.

The limbic system, on the other hand, is emotional - it is a procrastinator that lives for ...

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