The Human Side of Money

Carl Richards has a mantra for financial advisors that he says changes everything once you can fully internalize it: “Financial advisors are guides in a changing landscape. Not the defenders of an outdated map.” It’s no longer enough for advisors to build a detailed financial plan or construct a portfolio. It’s about building trust and connection with clients, unearthing their values and emotions around money, and changing their behavior for the better. It’s about the human side of advice. We discuss: The two main things he’s learned over the years that he would go back and tell himself when he was an advisor Why understanding a client’s purpose is at the foundation of the work advisors do for their client’s The difference between purpose, values, and goals and what it looks like in the planning process How to effectively help clients develop and prioritize goals Using a “Statement of Financial Purpose” in the planning process To sign up for Brendan’s monthly newsletter focused on the human side of advice → Click Here Connect with Brendan Frazier:  RFG Advisory LinkedIn: Brendan Frazier X:@jbrendanfrazier

When financial advisors work with couples, it’s more than just navigating their finances. It means navigating an emotional and complex relationship dynamic. It’s not just a matter of aligning the numbers. It’s a matter of aligning two completely different belief systems. When you combine two different upbringings and two different sets of belief systems around money, naturally tension arises. Ed Coambs combines a background in financial therapy and financial planning to offer advisors some critical insights on navigating couple dynamics. We discuss: Why most money arguments aren’t actually about money Why our upbringing is the main source of money conflict in relationships Implicit Money Memories: The lessons that were “caught” not “taught” The most effective way to engage an uninterested spouse How to navigate the conversation between a dreamer spouse and a rational spouse And more! To sign up for Brendan’s monthly newsletter focused on the human side of advice → Click Here Connect with Brendan Frazier:  RFG Advisory LinkedIn: Brendan Frazier X:@jbrendanfrazier

When was the last time you thought about: What your office or Zoom background is “signaling” to prospective clients? What minor detail or design on your website could drastically improve conversions? How to package your services in a way that feels less overwhelming and provides clarity around exactly what the client receives? What things could be causing your clients to perceive your services as expensive rather than a bargain? Rory Sutherland, author of Alchemy: The Dark Art and Curious Science of Creating Magic in Business, Brands, and Life, consults with companies around the world to help them enhance their branding and marketing by better understanding the invisible influences that shape our behavior. We discuss: Why you can’t always trust what people say they want The real reason why people go see doctors (and financial advisors) The psychological challenges involved when saving for retirement (and what to do about it) How to use context to influence decision-making and behavior The power of “signaling” – the most underrated component in building trust And way more! To sign up for Brendan’s monthly newsletter focused on the human side of advice → Click Here Resources: “Alchemy: The Dark Art and Curious Science of Creating Magic in Business, Brands, and Life” by Rory Sutherland Connect with Brendan Frazier:  RFG Advisory LinkedIn: Brendan Frazier X:@jbrendanfrazier

Imagine guiding your clients through a process of discovering what a meaningful, fulfilled life would look like and then providing them with the financial strategies to fuel that vision. You help your clients clarify and fund their best life. That is life planning. But, what does life planning actually look like in practice? When do I have these heartfelt conversations? What do these conversations sound like?  Fortunately, Scott Frank is the founder of Stone Steps Financial, has been through the Life Planning trainings, and coaches advisors around the world on the Life Planning process. We discuss: Specific techniques to get clients to open up and tell you the things that are most important to them (and the techniques to avoid!) The #1 goal he has for every prospect meeting that creates connection, buy-in, and follow-through How to create a lens through which to make financial decisions based on life rather than returns A real example of how this process improved a client’s life in a way that simply providing technical knowledge never could To sign up for Brendan’s monthly newsletter focused on the human side of advice → Click Here Connect with Brendan Frazier:  RFG Advisory LinkedIn: Brendan Frazier X:@jbrendanfrazier

Imagine going into a meeting with a complete picture of your client’s money mindset. You know exactly how they like to communicate about money, that they have a tendency to “keep up with the Joneses”, and that they are likely to panic when the market plummets. Armed with that information, you would know exactly which behaviors to focus on changing to improve their financial outcomes. But, that kind of information is not readily apparent and difficult to uncover. Which is why behavioral assessments are on the rise around the industry. They have the ability to deliver that information faster and more reliably. Sarah Fallaw founded DataPoints to equip advisors with these assessments and show them how to use them in their practice. We discuss: The four tools that Sarah recommends advisors use to help assess their client’s money mindset How do these tools help to first bring awareness to behavioral issues and why that’s so important to changing behavior How to communicate to client the benefits of better understanding their own beliefs and behaviors The problem with most risk tolerance questionnaires And way more! To sign up for Brendan’s monthly newsletter focused on the human side of advice → Click Here Connect with Brendan Frazier:  RFG Advisory LinkedIn: Brendan Frazier X:@jbrendanfrazier

After five years of frustratingly inconsistent prospecting meetings, Dan Solin decided there had to be a better way. So, he spent a year researching and learning everything he could about the neuroscience and psychology of what it took to seamlessly convert a prospect into a client. From that, he built an evidence-based process that flipped everything he knew on its head. And, in his first year prospecting with this new approach, he brought in $100 million under management (no, that’s not a typo). In this episode, Dan explains what he learned from his research and what he changed to see such massive growth. We discuss: The science behind why it’s so powerful to get someone to talk about themselves The power of questions to build trust and credibility in a way nothing else can compete with The reasons why you shouldn’t take notes during meetings How to answer “What do you do?” and why most advisors get it way wrong The question to ask at the end of every prospect meeting instead of closing And way more game-changing insights! To sign up for Brendan’s monthly newsletter focused on the human side of advice → Click Here Connect with Brendan Frazier:  RFG Advisory LinkedIn: Brendan Frazier X:@jbrendanfrazier

Most financial advisors conduct some version of goals-based planning. If you’re helping a client use their money to accomplish a goal, then you’re doing goals-based planning. But goals are formed and shaped by values. Yet, “goals-based planning” is an industry buzzword, and “values-based planning” is more like a foreign language. Natalie Taylor CFP®, BFA™ has built her practice around “Values-Based Financial Advice That Works In Real Life” and joined the show to explain why her values-based approach is more effective than a goals-based approach and how she implements it throughout her work with clients. We discuss: Why she prefers advice that gets 90% of the results rather than 100% optimal advice Why defining goals with clients comes after assessing values, net worth, and cash flow The “Values Exercise” she developed to help clients define their values The “Big Win” Natalie gets for most of her clients that helps create momentum during implementation The skills humans possess that computers will never replicate To sign up for Brendan’s monthly newsletter focused on the human side of advice → Click Here Connect with Brendan Frazier:  RFG Advisory LinkedIn: Brendan Frazier X:@jbrendanfrazier

There are at least three things every financial advisor wants in their relationships with clients: 1) Great conversations and connection 2) Use their money to live a fulfilled life doing the things they love 3) Seamless buy-in and follow-through on the advice given to avoid spending time following up Amy Mullen is the President of Money Quotient, a company that arms advisors with tools, resources, and a process to consistently deliver on all three of these things. In Part II of our conversation, we move from the “Why” to the “How” as Amy offers up specific examples from advisors she’s worked with over the years: The 5 Steps of the True Wealth™ Process The case for having two separate discovery meetings Why memorable conversation and lasting connecting actually starts with the mindset of the advisor A structured process to help clients create a robust vision of their ideal life How to plan and prepare for barriers to implementation To sign up for Brendan’s monthly newsletter focused on the human side of advice → Click Here Connect with Brendan Frazier:  RFG Advisory LinkedIn: Brendan Frazier X:@jbrendanfrazier

There are at least three things every financial advisor wants in their relationships with clients: 1) Great conversations and connection 2) Use their money to live a fulfilled life doing the things they love 3) Seamless buy-in and follow-through on the advice given to avoid spending time following up Amy Mullen is the President of Money Quotient, a company that arms advisors with tools, resources, and a process to consistently deliver on all three of these things: great co In Part I of our conversation, we discuss: The #1 factor in determining action towards retirement goals Why starting with the past is the most effective way for advisors to help client’s uncover meaningful goals How a client’s inability to follow-through is likely a roadblock stemming from their past The importantly subtle shift from “advice-givers” to “thinking partners” Why “advice kills conversations” To sign up for Brendan’s monthly newsletter focused on the human side of advice → Click Here Connect with Brendan Frazier:  RFG Advisory LinkedIn: Brendan Frazier X: @jbrendanfrazier

Financial success relies just as much on knowing yourself as it does knowing what to do with money. After spending the majority of her career teaching people what to do with their money, Rachel Cruze realized that knowing what to do wasn’t enough. That the gap between knowing and doing is forged by how we think, feel, and behave with money (our mindset and motivations). And it’s these mindsets and motivations that drive most of our financial decision-making. The key to behavior change and financial success is helping clients understand why they handle money the way they do and what to do about it. In this episode, Rachel discusses: The percentage of personal finance that is behavioral vs tactical The Four Money Classrooms that reveal how your childhood impacts your decision-making today Why dreaming is the key to boosting savings The “Why Statement” that she says everybody should use to start their money conversations Three insights on how to create lasting behavioral change To sign up for Brendan’s monthly newsletter focused on the human side of advice → Click Here Connect with Brendan Frazier:  RFG Advisory LinkedIn: Brendan Frazier X: @jbrendanfrazier