Show Links
*If you want to be notified when the next episode packed full of practical tips and strategies to master the human side of money will be released, you can:
- Subscribe to the Show
- Join the community of like-minded advisors and planners across the world being notified via email. You’ll also receive our monthly “Wisdom Round Up” newsletter where we deliver to you the best content from around the industry on specific ways to apply the human side of advice in your practice, process, and conversations.
*The featured partner for this episode is a must-have tool for helping clients follow-through and implement advice. After all, the best advice is useless in the absence of execution. Rather than stressing about follow-up calls and emails, Knudge provides a built-in system designed to improve follow-through. Here’s the best part…you can try it for free with 12 clients.
Episode Summary
Financial advice requires more than an understanding of money.
It requires an understanding of people.
Working with money is the easy part.
You need a calculator and some decent math skills.
Working with people is the hard part.
Your calculator and math skills won’t convert your prospects into life-long clients.
They won’t help your client who wants to retire but has yet to save any money.
And they won’t help your client who has saved their entire life and now can’t spend the money.
Those situations require an understanding of people and behavior.
In fact, here’s how Ted Klontz, the father of financial psychology, puts it:
“The more you understand how the brain works, the more effective you’ll be working with people.”
In other words:
Want more prospects to become clients? Start by understanding what’s going on in their mind.
Want to better communicate your ideas and messages so they resonate? Learn how the brain processes information.
Want to better connect to create life-long clients that stick with you and refer their friends and family? Find out how to tap into the emotional side of the brain.
Want to inspire and motivate your clients to change their behavior and follow through on your recommendations? Learn how the brain needs to be motivated.
Fortunately, Ted Klontz has spent 50+ years learning how the brain works and now teaches advisors what they need to know in order to better motivate, communicate and connect with clients and prospects.
Things You’ll Learn
- What horses can teach us about effectively changing behavior
- The least effective way to address a client’s fear
- Why giving someone advice is the least effective way to change behavior
- Pre-Loading Plans: A technique to effectively set expectations to address uncertainty
- Why helping a client craft a vivid vision of their future improves their follow-through and behavior
- Ted’s personal story of struggling to save for retirement and how he changed his own behavior
- How to most effectively communicate to the decision-making part of the brain
- Why palm trees are better than charts/graphs for improving financial behavior
- What car dealers and ice cream stores teach about prospect conversations
- A must-ask question for every prospect coming from a previous advisor
- The power of metaphors and how to create them on the spot
- Three keys to developing exquisite listening skills
- Why great listening starts with never asking a question
- Why 8 out of 10 people who come to you for advice aren’t actually ready for it
- “Capturing the essence” of what people say to improve connection and clarity (and how to do it)
About Ted Klontz, Ph.D
Paul T (Ted) Klontz, Ph.D. is an Associate Professor of Practice of Financial Psychology and Behavioral Finance at Creighton University’s Heider College of Business, Founder and CEO of Klontz Consulting Group and Co-Founder of the Financial Psychology Institute®. He has a 50+ year career in counseling, consulting and advising that has included co-authoring eight financial psychology-related books.
He is also a published researcher, professional speaker and trainer with corporate groups focusing on communication skill development and anxiety management.
Other Episodes You’ll Like On Psychology in Financial Planning:
- Advisor’s Guide To Money And Behavior with Brad Klontz
- The Psychology of Communicating and Delivering Advice with Derek Tharp
- Tools For Discovering And Changing A Client’s Money Mindset with Rick Kahler
Resources
The Financial Psychology Institute
A List of Ted’s Financial Psychology Books on Amazon
Motivational Interviewing: Helping People Change by William R. Miller and Stephen Rollnick
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 want more information on any of these, let me know here.