Behavioral Factors in Wealth Management: Addressing Client Biases

Emily is a recently retired CEO who has accumulated significant wealth throughout her career. She is now working with a private wealth manager to formulate her investment strategy. However, Emily expresses a strong desire to maintain control over her investment decisions and often second-guesses professional recommendations, fearing she might miss out on high-return opportunities.

As her wealth manager, analyze how behavioral factors, including loss aversion and overconfidence, may affect Emily's investment decisions. Furthermore, propose strategies you could employ to address these behavioral biases and assist her in making informed investment choices.