Weekend Content for New Planners

Weekend Content for New Financial Planners (June 10-11, 2023)

“Weekend Content for New Financial Planners” is a collection of articles, podcasts, videos, etc. that I’ve been consuming regarding breaking into financial planning, industry trends, career development, and more.

Three disciplines within the psychology of financial planning—and how each can be implemented [Article]:

“Since the CFP Board added the psychology of financial planning as a required competency for certified financial planners in 2022, I’ve often heard the separate disciplines—financial therapy, behavioral finance, and client psychology—used interchangeably. That’s not surprising. 

The psychology of financial planning as practiced by a planner is broad-based and holistic. It focuses on how financial planners influence the client’s behaviors with their words and actions as well as how the client influences the process with their own words and actions. Still, advisors should understand how these disciplines differ.”

More Financial Planners Are Acting Like Psychologists. Here’s How. [Sonya Lutter, Barron’s Advisor]

Ramit Sethi on the psychology behind budgeting and paying down debt, how to set aside personal values when providing financial advice, and more [Podcast with Transcript]:

“When I met Sarah and Reggie, who on the show were discussing a wedding, I asked them, ‘Is this important to you?’ They said, ‘Yes.’ I said, ‘Is it part of your rich life?’ They said, ‘Yes.’ I got curious. I said, ‘Tell me why.’ And I know their background. They have a cultural background, which also encourages family bonding over weddings. I said, ‘OK great. We need to find a way to make sure that you can afford this. But if you want to spend a lot of money on this, let’s find a way to do it.

And so, my approach when it comes to working with people, whether on the show, my podcast, or through my newsletter, is not to tell people that’s a bad decision, because first of all I think a big wedding is awesome as long as you can afford it. I also think if you want to buy a dirt bike—I’m not into dirt bikes. I don’t ride on dirt bikes, but if you want to buy a dirt bike and it’s your rich life, I go, ‘Fantastic, let’s figure out how to use your money to do it.’ So, often I have to put aside my own personal views. Like someone tells me, ‘Ramit, we retired in our 30s using your book and we drive around the country in an RV.’ Personally, I don’t want to get an RV, but they love it. I go, ‘Fantastic. That’s your rich life; it’s totally different than mine.’ That’s the beauty of intentionally designing your rich life.”

Ramit Sethi: Investing Shouldn’t Be Your Identity [Christine Benz & Jeffrey Ptak, The Long View]

The types of questions to lead with in initial meetings that get clients to open up, methods to uncover clients’ actual values, and more [Podcast]:

“If we are requesting a lot of financial information, there’s likely going to be stuff in there that maybe they don’t understand what you’re asking for specifically. Also, a lot of people do find financial information to be very private and personal. For them to be asked to share a bunch of that before they’ve even met you and built any trust with you is creating a barrier for that prospect to even to want to come in and talk with that advisor.”

5-Steps For Values-Based Financial Planning [Dr. Daniel Crosby, Standard Deviations]

If you’re studying for the CFP® examination or another industry exam, a look at the effectiveness of mnemonic devices versus flashcards [Article]:

“While mnemonics might seem like the obvious choice for learning a ton of new information, research rigorously comparing the efficacy of various studying strategies paints a somewhat different picture.

In their excellent review of ten popular studying techniques, Dunlosky and colleagues summarized the research on both the keyword mnemonic method and practice testing (which includes flashcards). In this review, practice testing got the highest possible rating for usefulness, while the keyword mnemonic got a low grade.

The keyword method does work—that is, students who use it tend to remember the words they were memorizing better than those who didn’t. But it had a number of limitations…”

Why Flashcards Beat Mnemonics For Studying [Scott Young, ScottHYoung.com]

Why now is the best time to raise fees [Article]:

“But one RIA owner stood up at a recent conference breakout session and confidently declared the current environment to be ‘the best time to raise fees in a decade!’ He said he’s had no trouble raising fees across his book of business, reminding clients of inflation and labor cost increases. ‘Everywhere our clients go, they are experiencing price increases—hotels, airlines, grocery stores and even fast food restaurants are raising their prices. Why should we be any different?’ He said he has received zero pushback from clients after notifying them of a fee increase. ‘We tell them, ‘We want to keep our team happy so they can continue to provide the exceptional service you’ve come to expect from us,’ and we haven’t received one complaint.'”

Now Is the Best Time In A Decade To Raise Fees [Matt Sonnen, WealthManagement.com]

Which was your favorite takeaway? Comment below!

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