Uncover client personality with behavioral assessments

How to Add Behavioral Assessments To Financial Planning

Individual personality traits can (and do) impact whether a client achieves financial goals. Behavioral assessments can help uncover client personality, values, attitudes, and beliefs. In turn, you can use this information to help provide the client with personalized guidance, education, coaching, or nudging to help them follow the financial plan and otherwise achieve goals. Below,[…]

Becoming more frugal

Can Clients Become More Frugal Over Time?

One of the hallmarks of a millionaire-next-door client is that they use their resources wisely. The “frugality chapter” of The Millionaire Next Door highlighted how frugality was part of the millionaire journey of small business owners, c-level millionaires, and others. If you’re familiar with the books, many continued those practices even after they passed the[…]

What is Financial Psychology?

Financial psychology is the study of the mind and behavior as it relates to spending, saving, and investing decisions. Financial psychologists apply psychological theories, methods, and practices to the areas of personal finance and financial services. The field takes into account both individual differences in money-related behaviors and decisions as well as client psychology, that[…]

Is Your Risk Tolerance Assessment A Cosmo Test?

If you have ever taken a quiz entitled “How to tell if your boyfriend is cheating on you” or “Answer these five questions to learn to see if you’re a good friend,” then you’ve probably taken something akin to what we call a “Cosmo test.” Your answers to just a few questions will result in[…]

Gambling With the Assessment of Risk Tolerance

In his “Intelligent Investor” column in the September 7, 2019 print edition of the Wall Street Journal, Jason Zweig wrote about an idea that we’ve thought about a good deal in the recent past: the fact that not all risk tolerance assessments are created equal. In the piece, Mr. Zweig—himself an accomplished and noted author[…]