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3/21/2019 1
ASKING BETTER QUESTIONS:FINANCIAL THERAPY 101
For Financial Producer use only. Not to be reproduced or shown to clients.
RETIREMENTSOLUTIONS
Lecturer – Clemson University◦ Teaching Areas:
◦ Corporate Finance◦ Personal Finance◦ Financial Planning
Board Member – Financial Therapy Association
Founder – JW Financial Guidance
Incoming Doctoral Student – Kansas State University
Featured On: SC Public Radio, U.S. News, NerdWallet
Research Focus:◦ Financial Therapy◦ Clinical Supervision◦ Financial EthicsMore about the Speaker
What is Financial Therapy?Traditional Financial Services is focused on behavior change and financial security improvement.
Financial Therapy incorporates therapeutic techniques to focus on helping clients implement behavior change as well as change their thoughts and emotions with regards to money.◦ Decreased levels of debt◦ Decreased levels of anxiety◦ Increased willingness to seek
advice◦ Increased adherence to advice
Financial Therapy is a process informed by both therapeutic and financial competencies that helps people think, feel, and behave differently with money to improve overall well-being through evidence-based practices and interventions.
How can Financial Therapy be used?There is no one single Financial Therapy method.
Systems Theory
Cognitive Behavioral
Therapy
Narrative Therapy
Motivational Interviewing
Experiential Financial Therapy
Solution-Focused Financial Therapy
Collaborative Relational
Model
Ford Financial Empowerme
nt Model
Stopping Overshoppin
g Model
Motivational Interviewing
Applied Communication TechniquesQuestion Styles
Planner-Focused Client-Focused
Close-Ended Open-Ended
Tell me about how you’re saving for
retirement.
Do you have an employer-sponsored
retirement plan?
Applied Communication TechniquesQuestion Styles - continued
Swing Questions
Close-Ended question that prompts a client to reveal more than a simple “yes” or “no”
Scaling Questions
Useful in helping client and planner gauge their progress, impression or observation
On a scale of 1 to 10, with 10 being the most confident, how confident are you in your savings for retirement?
Can you tell me a bit more about your employer-sponsored retirement plan?
What would it take to move you up/down?
Applied Communication TechniquesNon-Directive Communication◦ Designed to encourage clients to talk and open up
Clarification◦ Used to recheck something a client says or does
Primary Outcome: Obtaining Emotional Evidence
“I want to make sure I heard that correctly. Can you restate what you just said?”
Applied Communication TechniquesNon-Directive Communication◦ Designed to encourage clients to talk and open up
Summarization◦ Used to clarify a client’s goals and wishes◦ A brief summary of the content shared – not a restatement
Primary Outcome: Obtaining Emotional Evidence
“I want to make sure I fully understand your concerns. What I’m hearing is…”
Applied Communication TechniquesNon-Directive Communication◦ Designed to encourage clients to talk and open up
Reflection◦ Used to connect with a client emotionally
Primary Outcome: Obtaining Emotional Evidence
“I have never seen you so angry. You are really mad.”
Applied Communication TechniquesNon-Directive Communication◦ Designed to encourage clients to talk and open up
Paraphrasing◦ Used as a confirmation device to clarify what was said and meant
Primary Outcome: Obtaining Emotional Evidence
“So, you are worried that you might make the wrong choice when choosing a health plan this year. Is that correct?
Applied Communication TechniquesDirective Communication◦ Designed to lead clients to a solution
Interpretation◦ Helping a client articulate their thoughts and feelings using financial terminology
Primary Outcome: Enacting Behavior Change
“I don’t’ think it is anything about paying the bills. We have the money. I just can’t explain how I am feeling.
“Your anxiety is totally normal. What is likely happening is…”
Applied Communication TechniquesDirective Communication◦ Designed to lead clients to a solution
Reframing◦ Designed to help a client shift his or her perspective
Primary Outcome: Enacting Behavior Change
“You cannot be suggesting that there is anything good in all of this…?”
“Let’s look at this from a different angle…”
Applied Communication TechniquesDirective Communication◦ Designed to lead clients to a solution
Explanation◦ A descriptive statement used to make something plain or understandable
Primary Outcome: Enacting Behavior Change
“Okay, but when you say a report, what does that mean?”
“Great question. The initial reports will give…”
Applied Communication TechniquesDirective Communication◦ Designed to lead clients to a solution
Advice◦ Giving a client direction about what to do in a particular situation
Primary Outcome: Enacting Behavior Change
“What do you mean by ‘tax-inefficient?’”
“Given your household income, if you take out a parent loan for your son, you are not going to receive a tax benefit on the interest paid. So, I would not do the local university loan package at this point.”
Applied Communication TechniquesDirective Communication◦ Designed to lead clients to a solution
Suggestion◦ Helping a client choose a course of action using his or her own initiative
Primary Outcome: Enacting Behavior Change
“What do you think I should do?”
“My suggestion is to…”
Applied Communication TechniquesDirective Communication◦ Designed to lead clients to a solution
Urging◦ Tends to be crisis-driven
Primary Outcome: Enacting Behavior Change
“Is the letter from the IRS really that big of a deal?”
“I cannot urge you enough to get the help of an enrolled agent. They can represent you before the IRS…”
Applied Communication TechniquesDirective Communication◦ Designed to lead clients to a solution
Confrontation/Ultimatum◦ Involves voicing a disagreement◦ Occurs when a client’s behavior becomes dysfunctional and disruptive
Primary Outcome: Enacting Behavior Change
“I do not want to lose you as a client, but I also don’t want you to keep making these types of decisions…”
“Are you firing me?”
“I would not say that. I simply want you to think about the value of our services compared to the price you have been paying…How about we meet again in two weeks to talk about our future together?”
Question & AnswersThank you for having me!
Contact Information:
Josh Harris, MBA, CFP®