One of the best ideas offered in 2012 for differentiating yourself and growing your business in the process is to bring in the psychological aspect of financial advice.
Becoming schooled in behavioral finance—a phenomenon that influences investment decisions that is grounded in psychology—is a great start.
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But the ways money affects relationships go far beyond behavioral tendencies. They’re grounded in the particular world view of each member of your client’s family.
It starts with your client, of course, since he or she usually is the primary decision maker.
These issues may seem difficult to address but if you step back and look at the critical nature of their influence, the connection to investment and wealth management decisions makes sense.
These are also the issues that have the greatest effect on your business. And they’re usually made before your client even crosses the threshold of your door.
How can you approach these issues in a neutral fashion that puts both you and your client at ease?
Asking questions is powerful and also a very innocuous way to encourage your clients to reveal their deepest concerns about their money.
Learning how to ask good questions takes practice. You can practice on your own family members. You might learn more than you bargained for but then, when is it not a good idea to get family input?
You may not use that input to govern your final decisions. But knowing how family members feel about money and the decisions surrounding it is a powerful way to deepen relationships.
It also will make those decisions much easier to make because you and your client will be able to better anticipate issues that may pop up over time.
If the questions you ask reveal problems you don’t want to deal with or for which you are unequipped to deal, it’s a good idea to establish a relationship with an experienced wealth consultant or some type of therapist.
Wealth consultants and advisors have been working together since the 1990s. The 2008 financial crisis threw the trend into overdrive. But there’s still time to use this powerful tool
to differentiate yourself and grow your business exponentially.