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Why a Financial Advisor Who Focuses On Behavior

As a principal of the Affinity Group, LLC, I am often asked, “What exactly does it mean when you say you are a Financial Advisor Who Focuses On Behavior?”

I can understand the question, as there is big line up of “coaches” around right now that are not part of a sports team. Many seek to help people achieve success, or realize their dreams.

Interesting enough, as Behavioral Finance Coaches, we focus on the results of success, and more importantly on solving the problems that can arise from being highly successful.

It is all about behavior.

So often people assume that high incomes, great investment decisions, luck or inheritance create wealth. Certainly, any of these can be major factors.

However, more often than not, it is our choices and behaviors over the course of our life that create our financial standing.

It's the lifestyle we choose, how expensive of a home we buy, the cars we drive, or how we vacation. Each and every decision either conserves wealth so that it can grow or consumes wealth so that it may not grow.

There is a simple tried and true concept that is the foundation of creating wealth: living on less than we earn. If people can get that part right they can become very secure financially. However, we know that is not always so easy, even for those who are highly successful.

It is important that we take all the time necessary to get to know our clients, who they are and what makes them tick. We learn what is really important to them gain an understanding their core values.

The questions we pose: Is your behavior consistent with your top priorities and values? Are your buying decisions in line with these, or do emotions and immediate wants or demands take you off course.

We help clients set clear cut goals with time frames, and then assess how aligned their behaviors and decisions are with achieving those goals. Once that model is created, we will work with them to see what, if any changes are needed and help guide them through that process.

When we have worked through the behavioral piece, we then have to make sure that all the financial pieces are working together in maximum efficiency: taxes, cash flow, debt, investments, risk management, estate and business planning.

Usually our clients have most of this, but the pieces may not be working together. Strategies and polices that were created over the years may no longer be appropriate in light of the current circumstances.

Our needs and plans change. So does the way we make decisions.
Our behavior may not be lining up with our core values and goals.

This is the alignment behavioral finance coaching can create.

CRN 202010-238166