The Most Important Question You Never Ask Your Clients

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As an investment advisor, you're accustomed to analyzing market trends, understanding financial products, and strategizing to achieve your clients' financial well-being. But there's one crucial question you have been overlooking:

How are you sleeping?

Surprisingly, sleep quality is a significant yet often-ignored factor that profoundly impacts the overall quality of our lives and our ability to make rational investment decisions.

The science behind sleep and decision-making

Studies consistently show a strong relationship between sleep quality, cognitive function, and decision-making abilities. Sleep deprivation, even in short durations, can impair judgment and decision-making.

A recent study used functional MRI to examine the impact of just one night of total sleep deprivation on risky decision-making behavior. It found a significant decrease in brain activation to win-and-loss outcomes, which altered the participant’s perception of risk.

According to Zhuo Fang, a co-author of the study: “These results underscore the importance of maintaining adequate sleep and how individuals should refrain from making important decisions when experiencing chronic or acute sleep deprivation.”