Navigating the personal and emotional aspects of money conversations

  • Financial advisers are becoming more like family therapists, as money conversations often involve personal and emotional aspects
  • Elijah Kovar, co-founder of Great Waters Financial, underwent life coach training to better assist clients with complex family financial situations
  • Certified financial planners are now tested on the psychology of financial planning, recognizing its importance in client relationships
  • On-the-job experience and empathy are crucial for financial advisers to effectively navigate personal and sensitive money conversations
  • Personal stories and childhood experiences often shape individuals’ financial identities and can impact their relationship with money

Financial advisers are increasingly taking on the role of family therapists as money conversations often delve into personal and emotional territory. Elijah Kovar, co-founder of Great Waters Financial, recognized the need for additional training and became a certified life coach to better assist clients with complex family financial situations such as divorce, death, estate planning, and caring for aging parents. This shift in the financial planning industry is reflected in the updated certification requirements by the CFP Board, which now includes a focus on the psychology of financial planning. While formal training is important, advisers emphasize the value of on-the-job experience and empathy in effectively navigating personal and sensitive money conversations. Understanding the impact of personal stories and childhood experiences on individuals’ financial identities is crucial in building trust and establishing a strong client-adviser relationship.

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Key People: Elijah Kovar (Co-founder of Great Waters Financial), John Loper (Managing Director of Professional Practice at the CFP Board), Brian McGraw (Senior Wealth Adviser with Hightower Wealth Advisors), Dan Casey (Founder of Bridgeriver Advisors)

Factuality Level: 7
Justification: The article provides information about financial professionals receiving additional training as life coaches to better handle personal and emotional topics with clients. It includes quotes from professionals in the field and mentions the certification process for financial planners. The information provided seems accurate and objective, without any obvious bias or misleading information. However, the article does contain some tangential information and personal anecdotes that may not be directly relevant to the main topic.

Noise Level: 3
Justification: The article provides relevant information about the importance of addressing personal and emotional aspects in financial planning. It includes insights from financial professionals and their experiences with clients. However, the article lacks depth and analysis, and it does not provide actionable insights or solutions.

Financial Relevance: Yes
Financial Markets Impacted: No

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: This article discusses the personal and emotional aspects of financial planning and the importance of understanding clients’ individual situations. While it does not pertain to specific financial markets or companies, it highlights the need for financial professionals to have training in areas such as life coaching and psychology to effectively assist clients with complex financial situations.

Reported publicly: www.marketwatch.com