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Whether you’ve been an advisor for four days or four decades, you’ve already realized that your client’s success requires more than spreadsheets, monte-carlo simulations, and portfolio construction.
In fact, what’s more important than all of the facts, stats, and knowledge in the world is how the client behaves.
I still remember a client asking me when they should start saving and investing money.
I figured all I had to do was show them a chart like this:
And, of course, he would immediately leave our conversation, log into his computer, set up an account and start investing that night.
Only, that’s not what happened.
When we reconvened six months later, his account had the same amount of money as it did when I showed him the chart: $0.
Or, maybe you’re meeting with a couple who just retired.
For the 10 years leading up to their retirement, you spent conversation after conversation envisioning the trips they were going to take with their family, the charities they were going to invest in, the vacation property they were going to buy.
But, a year later, they haven’t done any of those things. And it’s not a lack of desire.
It’s the fact that they attribute their financial success to their ability to save money.
And, doing all these things they envisioned requires parting ways with the money they’ve saved for the last 30 years.
So, naturally, you pull up a projection that shows even if they funded all of their retirement dreams, they still have a 98% probability of success!
Surely, if you can show them a number like this, that’s all they need to know.
Unfortunately, it doesn’t work that way.
It’s not just about money. It’s about their mind.
It’s not just about balance sheets. It’s about behavior.
It’s not just about portfolios. It’s about the person.
Fortunately, Dr. Brad Klontz is one of the foremost authorities in the entire profession on financial psychology and works with advisors and planners who know that understanding their client’s psychology is critical to their ability to be effective. He focuses specifically on applying psychology to real-world financial planning examples.
Things You’ll Learn
- Why and how he became a TikTok sensation
- Why looking into the past is the most powerful way to change a client’s money life
- How our ancestors and genetics have programmed us for failure with money
- How money memories called “financial flashpoints” influence our current money beliefs
- The 4 “Money Scripts”: Avoidance, Worship, Status, and Vigilance
- The importance of knowing client’s money scripts and HOW to uncover them
- The way he communicates the role of “financial psychology” to prospects and clients
- Why he lets clients choose if they want to engage in financial psychology
- The importance of visualization for changing behavior
- The three conditions necessary for change
- The one technique every advisor needs to know to help clients change behavior
About Dr. Brad Klontz
Dr. Brad Klontz is an expert in financial psychology, finanical planning, and applied behavioral finance. He’s an Associate Professor of Practice at Creighton University, the co-founder of the Financial Psychology Institute, Managing Principal of Your Mental Wealth Advisors, and author/co-author of five books on financial psychology (all listed in “Resources” below).
Other Episodes You’ll Like On Psychology, Money, and Behavior
- The Psychology of Decision-Making in Financial Planning with Hal Hershfield
- The Psychology of Referrals with Dan Allison
- The Path to Building a “Behavioralized” Practice with Dr. Daniel Crosby
Whenever you’re ready, there are 3 ways I can help you master the human side of advice:
- HSOA Masterclass: An 8-week group program on building trust & connection, aligning money and life, and delivering frictionless advice.
- The Ultimate Discovery Meeting: A proven framework to seamlessly convert prospects into life-long clients in one meeting.
- HSOA Community (COMING SOON!): An online space to meet, collaborate, discuss, brainstorm, learn and grow with other advisors passionate about the human side of advice
If you’re interested, let me know here.