The Psychology of Financial Planning

CFP® Certificants in the News

Rational clients seem to make irrational financial decisions to the puzzlement and frustration of financial advisors. Why? One school of thought blames our emotions for our financial miscues.  Regrettably, we are not always self-aware of the power wielded by our sub-conscious emotions in the following behaviors and more:

  • The buy-high/sell-low decision error,
  • Refusal to sell a stock despite evidence that it’s in a performance slide for the long term, and
  • Making buy and sell decisions based upon TV “experts” (some experts are well informed while others are considered more actor than analyst by some).

Your CFP Board (the Board) is not only aware of these emotional drivers, but has created an entirely new domain entitled “The Psychology of Financial Planning.”  To enhance our profession’s understanding of these potential pitfalls for clients and planners alike, the Board hosted a webinar summarizing key issues and offering resources.

How the Board Positioned the Webinar

The following is taken from a Board Announcement dated August 25, 2022. “During this webinar, which is part of CFP Board’s Psychology of Financial Planning™ Presentation Series, the experts who edited and contributed to CFP Board’s new book, The Psychology of Financial Planning, shared why this addition to the CFP® certification curriculum is a game-changer, equipping CFP® professionals with proven methodologies that deepen the client-planner relationship.

Topics addressed include:

  • Overview and origin of the Psychology of Financial Planning Domain
  • The Principal Knowledge Topics that make up the Psychology of Financial Planning Domain
  • CFP Board’s Competency Framework
  • Psychology of Financial Planning resources for practitioners, including the CFP Board’s book, The Psychology of Financial Planning
    • Answers to questions from the live audience.”

If You Missed the Webinar

The author attended the webinar and found it helpful from several perspectives. You too can gain those insights if you missed the webinar.  Click here for access to the recording.