Important Conceptual Underpinnings

We combine expert Financial Planning with Psychology in a unique blend of services. In doing so, we have been mindful to use those areas of Psychology that would be most beneficial and respectful to financial planning clients and their families. So, here is a bit more detail, defining some of the conceptual bases we use.

Positive Psychology - is a recent and growing movement in the field, spearheaded by Dr. Martin Seligman, wherein researchers and practitioners are moving away from the "medical model" of viewing and working with people, and toward a model that focuses upon strengths and mastery. In the medical model, we go to the professional and report what is "wrong", like an ache, or fever, or some other symptoms. The professional then fixes what is "wrong". In a positive approach, an inventory of strengths and abilities is taken, and then those strengths are leveraged to enhance life satisfaction. There is a focus upon what is "right" with us, rather than what is "wrong". As a result, the experience of working in this manner produces a positive emotional experience. The positive approach can be used for both psychotherapy and coaching, including at an executive level. There are also assessment tools that have been developed in this movement that focus upon diagnosing strengths and producing inventories of what enhances a life based upon pleasure, meaning and engagement. Using Positive Psychology in the financial planning process helps a person to better focus upon what creates true and deep happiness in life's pursuits.

Emotional Intelligence - This is a concept that has been popularized by Daniel Goleman, in his book of the same name. Emotional Intelligence has been shown to be a more valid and reliable predictor of success in work, life and leadership than IQ, or traditional intelligence. Emotional Intelligence, or EQ, as it is called, is comprised of a person's level of emotional self awareness, and the depth of their interpersonal emotional awareness and empathy. Persons with highly developed EQ are likely to be able to listen on a deep level, and create emotional connections that make for effective relationships in marriages, families and organizations. In the financial planning process, a focus upon EQ can lead to better coordination and collaboration between couples and family members, and can enhance the process of estate and legacy planning, and family business administration and succession.

Behavioral Finance - is a recent development in the field of economics, wherein, for the first time, Psychologists have won the Nobel Prize for Economics. Research in this field has challenged the notion that "markets are rational" in the traditional meaning of the term, as promulgated by Keynes, and adopted by economists and planners. On an individual level, we do not make rational decisions regarding finances, but may be swayed by emotions, or driven by forces within that are either learned biases, or may be "hard-wired" within us as a species. These irrationalities do not just occur at the level of an individual making financial decisions. They also extend themselves into the upper levels of international markets, and have an impact upon the global economy, and, therefore, the well being of us all. Understanding behavioral finance allows us to overcome inherent biases we may have as inidviduals, and can also allow us to understand some to the behavior of the "Not-So-Rational" financial markets.