After my webinar for Advisors4Advisors last Friday, entitled "A Healthy Relationship With Money," I received a phone call from a financial planner who was really excited about the topic.
This Website Is For Financial Professionals Only
His name is Neal Van Zutphen and he told me about the journey that led him to become a member of the American Psychological Association.
Neal had just changed his firm's name from Delta Ventures Financial Counsel to Intrinsic Wealth Counsel to reflect how he wanted to work with clients and their money. His new website, reflecting the changes in the way he wanted to practice, was about to launch.
Because he is not a psychologist and is an associate member of the APA, Neal will not be allowed to sign our petition to create the Division of Financial Psychology. I wish we had an easily accessible body of knowledge to offer him that would be relevant to his work. However, Neal will have to hunt through the 54 divisions to find work that relates to his quest to help his financial planning clients move to intrinsic motivations and away from extrinsic motivations.
You may be wondering what the difference is between intrinsically and extrinsically driven styles. The person who is driven by intrinsic motivations is focused on doing a task because he or she truly connects with it.
Reading for the love of reading is an example of this. The person who is driven by external factors is the extrinsic person. This person reads a book to get a good grade, to impress others or because he or she is getting paid $2 for every book read.
We know that when external rewards are primary, the activity becomes less enjoyable. A great example of this is the reading program that pays elementary students to read books. The students who used to love to read and then start to get paid now find reading more of chore and don't like it as much anymore. The students who never liked reading and read only to get the reward never come to like it.
This has a lot of implications for the relationship between money and pleasure and particularly for estate planning and incentive trusts.
I hope that we can continue to work to provide the planning industry with valuable insights like these.
Neal's call lifted my spirits. I've been working for many months to get APA to post my petition online for its members to vote and getting support from a financial advisor like Neal means a lot to me.
I hope the rest of you will help as well.