Working with the Emotional Investor: Financial Psychology for Wealth Managers

An invaluable resource for wealth managers advising individuals, couples, and families, this book explains why human emotions drive all investor behavior and makes a powerful case for why advisors need to be aware of such emotions in advising clients--especially in high-stakes situations.

Despite the fact that wealth advisors may employ algorithms, fancy financial models, economic theory, and predictive reasoning to forecast future investment returns, according to seasoned wealth management advisor Chris White, people--in other words, clients--basically decide how much risk to take with their money based on emotional factors such as the love they received as children, early life experiences of loss and ＂imperfect love,＂ psychic wounds, and family traumas. A must-read for anyone in the wealth management profession, including wealth advisors, financial consultants, certified financial analysts, and retirement advisors, this groundbreaking book offers a radically new and well-articulated framework for managing relationships with clients as well as the essential tools to advise, mentor, and guide clients in making financial management decisions.

Readers will understand how to recognize the emotional and psychological factors behind investor behavior and apply this insight to be a better wealth advisor. The author explains why early childhood experiences of love, joy, and loss and sometimes very subtle family dynamics play a key role in adult investor behavior; why being sensitive to an individual’s unique psychological ＂systems＂ is key to being able to accurately assess his or her tolerance and acceptance of risk-taking as part of the wealth management process; what can cause a client’s personality to change, especially in high-stress or high-stakes situations; and how to employ sophisticated client relationship management practices such as curiosity, appreciative inquiry, and powerful questioning to understand clients’ needs at a deep psychological level.

Chris White, CFA, is an experienced wealth management advisor and strategist who has invested on behalf of hundreds of individuals, families, couples and institutions for more than 25 years.

Richard Koonce is an accomplished author, executive coach, and former broadcast journalist based in Philadelphia, PA.