Skip to content
Last month a war (of sorts) was declared, pitting various risk tolerance companies against each other concerning their methodologies relating to portfolio risk assessment and analysis. The dispute appeared to be outside the realm of measuring a client’s appetite for risk. However, there is a very real and clear line of demarcation in the world of risk-tolerance assessment “advisortech” with respect to the method employed in assessing the investor’s so-called “risk tolerance,” particularly the …
CFP’s View of Financial Planning and Psychology In 2021, the CFP Board announced changes to their Principal Knowledge Topics for educational programs for those seeking or with the Certified Financial Planner (CFP) designation. This change includes a new section representing 7% of the educational component, entitled “The Psychology of Financial Planning.” For those of us at DataPoints who have been writing about financial psychology and the psychology of building wealth for quite some time, …
When working to help clients achieve financial success, having insights into their financial psychology is crucial. We’re delighted to share that you can now have behavioral insights from DataPoints integrated into Wealthbox CRM. The integration works by: Sending leads and contacts to Wealthbox CRM from DataPoints Sending test scores from any test from the DataPoints library into a Wealthbox CRM note Sending notes taken on the advisor reports from DataPoints into a Wealthbox CRM …
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 $1 million mark. The Science of Frugality In general, the more frugal you are, the more likely you will …
Financial psychology is the study and application of psychological theories, methods, and practices in the areas of personal finance and financial services. The field takes into account two areas. First, financial psychology includes how we relate to and make decisions about money. In other words, financial psychology includes what psychologists refer to as “individual differences” in money-related behaviors and decisions. Second, financial psychology covers the client-advisor relationship, that is, the application of psychology in …