Since the dawn of time (well, that might be a tad exaggerative), financial advisors have been trying to devise ways to mathematically calculate and predict the very subjective and complex matter of their clients’ risk tolerance. Even the supposedly “objective” side of risk tolerance, also known as “risk capacity” (how much loss can a client […]
Food for Thought
Listen to Understand: The True Purpose of Client Discovery
In our work with financial planners, we frequently point out that a successful practice is built on getting to know and understand their clients. We also emphasize that this objective can only be met through exploring each client’s unique frame of reference. This is so important in client relationship development because each person’s “frames” shape […]
What is True Client-Centered Discovery?
At Money Quotient, we believe that the most successful client relationships are built on asking the right questions. That’s because good communication is so much more about listening than it is about talking. And, to this end, the best financial planners continually seek to perfect their inquiry skills. Several years ago, I read an interview […]
How Financial Planners Can Support Behavior Change
In his article “Why Good Financial Behavior Isn’t Achievable Until You Believe That It Is,” Derek Tharp addresses the frustration that financial planners experience when trying to help clients adopt healthier financial habits. He explains the root cause of self-sabotaging money beliefs and behaviors in this way: As almost all financial advisors have […]
Elicit, Provide, Elicit: The Art of Skillful Advice-Giving
Advice is inherent to financial planning. Heck, it’s in your title: advisor. But how you give advice can make or break the client/advisor relationship and directly impact the follow-through. The Righting Reflex The righting reflex is our natural reaction to hearing someone else’s problem. This is the powerful urge to provide our own opinions, solutions, […]
Nurturing Financial Resilience
The COVID-19 pandemic has demonstrated to us once again that economic uncertainties are ubiquitous and often hard to predict. We need to stay vigilant and be prepared for the rainy days. -Standard Center for Longevity To launch the “Financial Resilience in America” project, researchers at the Stanford Center on Longevity teamed up […]
The Pandemic has Changed Perceptions of Wealth & Well-Being
At Money Quotient, we frequently point out that a successful financial planning practice is built on getting to know and understand your clients. We also emphasize that this objective can only be met through exploring each client’s unique “frame of reference.” There are many other terms for this concept—such as perspective, world view, and mode […]
MQ Recommended Reading
A growth mindset seems to be at the heart of shared purpose relationships with our MQ Partners. Those who are consistently seeking ways to improve and expand how they interact with the profession and world resonate with us. Whether it’s our training, educational webinars, or annual events, we reference and quote several pieces of literature […]
We Can Do Better Than “New Normal”
As nature starts to show signs of a changing season, here we are, again. The pandemic continues to upend plans we thought we made in confidence just a few months ago. School leadership is trying to adapt. Businesses continue to explore hybrid models to serve their customers. We have all found ways to marry the old […]
Curiosity: The Magic Ingredient
Tim Maurer hit the nail on the head in his recent Forbes.com article, “Curiosity: The Most Important Trait for Financial Advisors.” I first met Tim in 2009 when—as the recipient of the Ken Gillaspie Legacy Fund scholarship—he participated in our “Fundamentals of True Wealth™ training course. We have kept in touch over the years and […]