Financial planning goes way beyond numbers and charts

By Morningstar |  23-08-19 | 

Much of financial advice consists of numbers and ‘shoulds.’

But financial planning goes beyond spreadsheets and charts. And advisers who understand their clients’ lives and motivations, have the best chance of getting through to them.

The reality is that we make all of our financial decisions in the larger context of our emotions, our desires, our sense of identity, and our desire to be accepted. Very little of it really has to do with numbers. It has to do with these stories that we’re telling ourselves and the stories that we want to believe about ourselves.

We do a lot of things with our money because we want other people to like us or accept us or look up to us. We’ve got to admit that and then ask ourselves: "How much am I willing to spend for others to think I’m awesome? How much is just not worth it?"

The above insights are of Sarah Newcomb, Director of Behavioral Science at Morningstar. She shall be presenting at the 9th Morningstar Investment Conference, and will conduct a workshop for financial advisers and planners.

Do join us for the 9th Morningstar Investment Conference to be held on September 17-18, at Hotel Sahara Star, Mumbai.

Chief Guest: Marc Faber


List of Speakers


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