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Financial psychology is at the heart of our product development and ongoing research here at DataPoints. Part of our research program includes examining investor-related characteristics. Our analyses include areas like confidence and composure. Our latest Client FinPsych Report explored the preferences, knowledge, and confidence of over 2,600 financial planning clients between February 2018 and May 2021. The results of this research help to identify areas where advisors can help clients’ improve investing-related decision-making. In other …
Financial planners and coaches use the KMSI-R (Klontz Money Scripts Inventory-Revised) test to assess client money beliefs. Why? There is a continued and increased focus on financial psychology in the financial services world. The CFP Board has recently updated its knowledge topics to include the psychology of financial planning, covering everything from client attitudes to critical life experiences that could shape a financial plan. Financial planners recognize that money personality is a key component impacting …
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 …