Kitces and Carl - Real Talk for Real Financial Advisors

Financial Planners As The Guide To Help Clients Navigating Potentially Changing Terrain: Kitces & Carl Ep 166

Jun 12, 2025
Explore how financial advisors can help clients unlearn unhelpful habits and make informed decisions instead of relying on luck. Discover the metaphor of skiing to navigate the unpredictable terrain of investing risk. Learn about the importance of empathy and adaptability in financial planning, especially during significant life changes. The hosts discuss the complexities of personal biases and the limitations of traditional risk assessments, emphasizing resilience as key to successful financial strategies.
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INSIGHT

Wicked vs. Kind Learning Environments

  • Wicked learning environments have ambiguous rules and delayed, misleading feedback.
  • This can reinforce wrong lessons, as in backcountry skiing where danger is not always immediately apparent.
INSIGHT

Financial Planning as Avalanche Terrain

  • Financial planning is more like navigating avalanche terrain than playing chess.
  • Many client decisions are influenced by delayed consequences and luck, not skill or clear rules.
ADVICE

Niche Marketing in Kind Environments

  • Niche marketing works when the environment is mostly kind and stable.
  • A strong core client segment builds resources for future adaptation if things change.
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