Transcript Tools & Techniques of Financial Planning Leimberg, Satinsky, Doyle

Attitudes and Behavioral
Characteristics of Clients
Chapter 5
Tools & Techniques of
Financial Planning
Personal Financial Planning
Emphasis on Personal: Even if your client is a closely-held
corporation, its principals are individuals who will have
different agendas, emotional attachments and attitudes.
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Attitudes and Behavioral
Characteristics of Clients
Chapter 5
Tools & Techniques of
Financial Planning
Influential Factors
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Cultural background
Family experience
Emotional and medical factors
Life Cycle stage & Age
Knowledge
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Attitudes and Behavioral
Characteristics of Clients
Chapter 5
Tools & Techniques of
Financial Planning
Stereotypical Behavior
Although not every person from a certain group will
react in the same way, stereotypes exist because most
people do react similarly to others with the same
background, experience, and personal circumstances.
Working within the expected parameters of a stereotype
is not prejudice: It is simply being efficient. Good data
gathering will reveal those people whose behavior falls
outside the stereotype.
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Attitudes and Behavioral
Characteristics of Clients
Chapter 5
Tools & Techniques of
Financial Planning
The Planner & Client Goals
Cultural background shapes what goals a person
feels are appropriate.
When the planner and client are from different
groups, the planner must submerge his own mores
to those of the client.
However, the planner must never violate ethics to
accommodate a client, even if there is risk of losing
the client.
Example: How much money is appropriate to
spend on a wedding (and its formality) varies
considerably across social groups.
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Attitudes and Behavioral
Characteristics of Clients
Chapter 5
Tools & Techniques of
Financial Planning
Stereotypical groups
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Retirees
Divorced people
Widows & Widowers
Young singles
Young married couples, no children
Young married couples, with children or expecting
children
What do you think would be the expected behavior of
each group?
Copyright 2007, The National Underwriter Company
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Attitudes and Behavioral
Characteristics of Clients
Chapter 5
Tools & Techniques of
Financial Planning
Further Reading
• Kennedy, E. (2001). On becoming a counselor, revised
edition: A basic guide for nonprofessional counselors
and other helpers. New York: Crossroad Classic.
ISBN: 0824519132.
• Bachrach, B. and S. Shapiro. (2002). Its all about
them: How trusted advisors listen for success. Los
Angeles: Chico Publications.
• Bachrach, B. (2000). Values-Based Financial
Planning : The Art of Creating and Inspiring Financial
Strategy. San Diego, CA: Aim High Publishing. ISBN:
1887006036.
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