Psychology Of Financial Planning

Key Highlights: The Psychology of Financial Planning: Practitioner Resource Guide is a companion volume to The Psychology of Financial Planning. The Psychology of Financial Planning provides the what; The Psychology of Financial Planning: Practitioner Resource Guide provides the how. The Psychology of Financial Planning: Practitioner Resource Guide addresses every principal knowledge topic for the psychology of financial planning domain. Includes step-by-step guides, do's and don'ts lists, exercises, assessments, examples and other helpful figures and lists. Topics Covered: Understanding risk tolerance, including measuring risk tolerance and the impact of risk tolerance on financial decisions How to develop and maintain a successful client-planner relationship, including how to forge a trusting relationship How to gather data about clients' goals and values, as well as addressing clients' cultural values Understanding how cognitive biases and heuristics impact a client's financial decisions Identifying clients' psychological barriers, including pathological financial behaviors such as compulsive buying disorders, hoarding, financial dependence and financial enabling How to build a clients' motivation to achieve their financial goals Examining couple and family financial transparency, including facilitating goal congruence How to recognize and mediate financial conflict Identifying financial manipulation and abuse Utilizing verbal and nonverbal communication How to help your clients navigate change and crisis situations

A Client-Centered approach to Financial Planning Practice built by Research for Practitioners The second in the CFP Board Center for Financial Planning Series, Client Psychology explores the biases, behaviors, and perceptions that impact client decision-making and overall financial well-being. This book, written for practitioners, researchers, and educators, outlines the theory behind many of these areas while also explicitly stating how these related areas directly impact financial planning practice. Additionally, some chapters build an argument based solely upon theory while others will have exclusively practical applications. Defines an entirely new area of focus within financial planning practice and research: Client Psychology Serves as the essential reference for financial planners on client psychology Builds upon and expands the body of knowledge for financial planning Provides insight regarding the factors that impact client financial decision-making from a multidisciplinary approach If you’re a CFP® professional, researcher, financial advisor, or student pursuing a career in financial planning or financial services, this book deserves a prominent spot on your professional bookshelf.

Psychology of Financial Planning: The Practitioner’s Guide to Money and Behavior In PSYCHOLOGY OF FINANCIAL PLANNING: The Practitioner’s Guide to Money and Behavior, distinguished authors Drs. Brad Klontz, CFP®, Charles Chaffin, and Ted Klontz deliver a comprehensive overview of the psychological factors that impact the financial planning client. Designed for both professional and academic audiences, PSYCHOLOGY OF FINANCIAL PLANNING is written for those with 30 years in practice as well as those just beginning their journey. With a focus on how psychology can be applied to real-world financial planning scenarios, PSYCHOLOGY OF FINANCIAL PLANNING provides a much-needed toolbox for practicing financial planners who know that understanding their client’s psychology is critical to their ability to be effective. The PSYCHOLOGY OF FINANCIAL PLANNING is also a much-needed resource for academic institutions who now need to educate their students in the CFP Board’s newest category of learning objectives: psychology of financial planning. Topics include: Why we are bad with money Client and planner attitudes, values, & biases Financial flashpoints, money scripts, and financial behaviors Behavioral finance Sources of money conflict Principles of counseling Multicultural competence in financial planning General principles of effective communication Helping clients navigate crisis events Assessment in financial planning Ethical considerations in the psychology of financial planning Getting clients to take action Integrating financial psychology into the financial planning process PSYCHOLOGY OF FINANCIAL PLANNING goes beyond just theory to show how practitioners can use psychology to better serve their clients. The accompanying workbook provides exercises, scripts, and workshop activities for firms and practitioners who are dedicated to engaging and implementing the content in meaningful ways.

WINNER, Business: Personal Finance/Investing, 2015 USA Best Book Awards FINALIST, Business: Reference, 2015 USA Best Book Awards Investor Behavior provides readers with a comprehensive understanding and the latest research in the area of behavioral finance and investor decision making. Blending contributions from noted academics and experienced practitioners, this 30-chapter book will provide investment professionals with insights on how to understand and manage client behavior; a framework for interpreting financial market activity; and an in-depth understanding of this important new field of investment research. The book should also be of interest to academics, investors, and students. The book will cover the major principles of investor psychology, including heuristics, bounded rationality, regret theory, mental accounting, framing, prospect theory, and loss aversion. Specific sections of the book will delve into the role of personality traits, financial therapy, retirement planning, financial coaching, and emotions in investment decisions. Other topics covered include risk perception and tolerance, asset allocation decisions under inertia and inattention bias; evidenced based financial planning, motivation and satisfaction, behavioral investment management, and neurofinance. Contributions will delve into the behavioral underpinnings of various trading and investment topics including trader psychology, stock momentum, earnings surprises, and anomalies. The final chapters of the book examine new research on socially responsible investing, mutual funds, and real estate investing from a behavioral perspective. Empirical evidence and current literature about each type of investment issue are featured. Cited research studies are presented in a straightforward manner focusing on the comprehension of study findings, rather than on the details of mathematical frameworks.

A Client-Centered approach to Financial Planning Practice built by Research for Practitioners The second in the CFP Board Center for Financial Planning Series, Client Psychology explores the biases, behaviors, and perceptions that impact client decision-making and overall financial well-being. This book, written for practitioners, researchers, and educators, outlines the theory behind many of these areas while also explicitly stating how these related areas directly impact financial planning practice. Additionally, some chapters build an argument based solely upon theory while others will have exclusively practical applications. Defines an entirely new area of focus within financial planning practice and research: Client Psychology Serves as the essential reference for financial planners on client psychology Builds upon and expands the body of knowledge for financial planning Provides insight regarding the factors that impact client financial decision-making from a multidisciplinary approach If you’re a CFP® professional, researcher, financial advisor, or student pursuing a career in financial planning or financial services, this book deserves a prominent spot on your professional bookshelf.

Section 1: Client and Planner Attitudes, Values and Biases Section 1 includes Chapters 1, 2 and 3, and provides an overview of client and planner attitudes, values, and biases. This section discusses the importance of understanding how a client''s psychology, background, learning style and values can all impact the financial planning process. It also discusses the importance of the financial planner framing advice in a way that accounts for all those psychological characteristics, leading to a more effective client-planner relationship and a higher probability of success. Research has shown that when clients can see that financial planning recommendations are demonstrably connected to their personal values and goals, they are much more likely to act on those recommendations and achieve success. Chapter 1: Framing Advice in Light of Client''s Risk Tolerance (Swarn Chatterjee and Dave Yeske) Chapter 2: Developing a Productive Client-planner Relationship That Addresses the Psychological Elements of Financial Planning (Megan McCoy and Neal Van Zutphen) Chapter 3: Identifying and Responding to Client Values and Goals (Megan McCoy and Meghaan Lurtz) Section 2: Behavioral Finance Section 2 includes Chapters 4 and 5, and introduces key concepts from the area of behavioral finance. This section provides an understanding of the impact of cognitive biases and heuristics on people''s financial decision-making and well-being, and discusses strategies for overcoming some of the common client psychology barriers in the financial planning process. Chapter 4: Impact of Cognitive Biases and Heuristics on Financial Decision-making and Well-being (Ron Sages and Swarn Chatterjee) Chapter 5: Client Psychology Barriers in the Financial Planning Process and Strategies for Overcoming Them (Ron Sages and Swarn Chatterjee) Section 3: Sources of Money Conflict Section 3 includes Chapters 6 through 10, and provides an overview of the major sources of money conflict. This section focuses on the harnessing of client''s motivation for achieving their financial goals, examining couple and family financial transparency, and discusses strategies for mediating potential financial conflicts and facilitating goal congruence. This section also discusses counseling strategies that can be used for identifying when money is being used for purposes of manipulation. Chapter 6: Building the Client''s Motivation for Achieving Their Financial Goals (Rick Kahler) Chapter 7: Examining Couple and Family Financial Transparency (Emily Koochel and Meghaan Lurtz) Chapter 8: Mediating Financial Conflict (Sonya Lutter and Emily Koochel) Chapter 9: Facilitating Goal Congruence (Rick Kahler) Chapter 10: Identifying When Money Is Being Used as Manipulation (Saundra D. Davis, Meghaan Lurtz and Megan McCoy) Section 4: Principles of Counseling Section 4 includes Chapters 11 and 12, and introduces the principles of counseling. This section includes the application of counseling theory in the financial planning process, and discusses strategies for forging trusting client-planner relationships. Chapter 11: Applying Financial Counseling Skills to the Financial Planning Process (Emily Koochel, Megan McCoy and Saundra D. Davis) Chapter 12: Forging Trusting Relationships (Megan McCoy and Sonya Lutter) Section 5: General principles of effective communication Section 5 includes Chapter 13, and provides an overview of the general principles of effective communication. This topic is of great importance as effective communication has been shown to be the single largest predictor of client trust and relationship commitment, which in turn can lead to a greater propensity by clients to reveal personal and financial information, engage in effective conflict resolution, and act on financial planning recommendations. Chapter 13: Multifaceted Communication (Swarn Chatterjee and Ron Sages) Section 6: Crisis Events with Severe Consequences Section 6 includes Chapters 14 and 15, and discusses strategies for helping clients who experienced crisis events with severe consequences. The strategies discussed in this section focus on helping clients navigate unanticipated personal and environmental crises, and the importance of empathy when working with clients who experienced such events. As is true across all topics in this book, self-awareness and self-development by the financial planner is as important as understanding the client''s psychology when helping them navigate difficult circumstances. Chapter 14: Navigating Change (Sonya Lutter, Megan McCoy, Saundra D. Davis, and Lance Palmer Chapter 15: The Necessity of Empathy (Megan McCoy and Sonya Lutter)

Money-related stress dates as far back as concepts of money itself. Formerly it may have waxed and waned in tune with the economy, but today more individuals are experiencing financial mental anguish and self-destructive behavior regardless of bull or bear markets, recessions or boom periods. From a fringe area of psychology, financial therapy has emerged to meet increasingly salient concerns. Financial Therapy is the first full-length guide to the field, bridging theory, practical methods, and a growing cross-disciplinary evidence base to create a framework for improving this crucial aspect of clients' lives. Its contributors identify money-based disorders such as compulsive buying, financial hoarding, and workaholism, and analyze typical early experiences and the resulting mental constructs ("money scripts") that drive toxic relationships with money. Clearly relating financial stability to larger therapeutic goals, therapists from varied perspectives offer practical tools for assessment and intervention, advise on cultural and ethical considerations, and provide instructive case studies. A diverse palette of research-based and practice-based models meets monetary mental health issues with well-known treatment approaches, among them: Cognitive-behavioral and solution-focused therapies. Collaborative relationship models. Experiential approaches. Psychodynamic financial therapy. Feminist and humanistic approaches. Stages of change and motivational interviewing in financial therapy. A text that serves to introduce and define the field as well as plan for its future, Financial Therapy is an important investment for professionals in psychotherapy and counseling, family therapy, financial planning, and social policy.

Doing well with money isn’t necessarily about what you know. It’s about how you behave. And behavior is hard to teach, even to really smart people. Money—investing, personal finance, and business decisions—is typically taught as a math-based field, where data and formulas tell us exactly what to do. But in the real world people don’t make financial decisions on a spreadsheet. They make them at the dinner table, or in a meeting room, where personal history, your own unique view of the world, ego, pride, marketing, and odd incentives are scrambled together. In The Psychology of Money, award-winning author Morgan Housel shares 19 short stories exploring the strange ways people think about money and teaches you how to make better sense of one of life’s most important topics.