Clients have various characteristics that influence their investment decisions. Many advisors understand that a significant part of the value of working with clients is helping them manage their mindset when it comes to investing. However, understanding investor psychology requires knowing what to measure. In the following text, we will examine several characteristics that can influence a client’s overall investor psychology, also known as behavioral risk tolerance. By measuring investor personality, advisors can identify which …
Knowledge is power, and the basis of all knowledge is having the right data. Datapoints (or, data points, if you like) are the smallest form of data. Think of them like information atoms. Alone, they’re seemingly small and insignificant. But when you combine them, you can discover trends, uncover essential information, and better understand the world around you. These minuscule particles of information can be essential to learning about others and ourselves. Here’s what …
Bob Veres, the renowned author and publisher of Inside Information, recently reviewed each test from DataPoints. Here are a few of the highlights from his review: Read what this titan of the financial planning community had to say about the behavioral assessment library from DataPoints. Download the review of DataPoints here. …
With the year almost in the rearview mirror, I wanted to share with you what you can expect from DataPoints in the new year. Our team is focused on providing our advisor clients tools to uncover client money mindset, personalize advice and guidance, and apply the psychology of financial planning. Focus: Identifying Client Money Mindset If you’re a small business owner like us, you know it is tempting to be all things to everyone. …
What Are Money Scripts? Money scripts are general beliefs about money that are often unconscious and learned during childhood or early adolescence. Money scripts tend to be passed down through generations. These beliefs tend to be partial truths about money or those who have (or do not have) money. Money scripts are related to different financial outcomes. Money scripts are often measured in financial planning or coaching to understand how financial beliefs might impact …