Emotional Wealth: Your Guide to Financial Well-Being

Dr. Matt Goren CFP® | PVP - Financial Planning Education | BIO: Dr. Matt J. Goren, CFP® has created educational programs and taught courses on topics ranging from the psychology of personal finance to investing, global financial planning, cultural psychology, and statistics. As CeriFi's Product Vice President - Financial Planning Education, he oversees educational program development and administration, including the popular Dalton Education and Dalton Review programs for students pursuing the CFP® designation. Formerly, he served as Director of Knowledge for Practice at CFP Board. His past affiliations include The American College of Financial Services, UC Berkeley, and The University of Georgia. Matt lives in Chicago and is a regular world traveler, hiker, and news junky. Summary: In this conversation, Dr. Matt Goren discusses the role of emotions in decision-making and how they can be used as tools to make better financial decisions. He emphasizes the importance of listening to both negative and positive emotions and using them to guide financial choices. Matt also explores biases such as the anchoring bias, status quo bias, overconfidence bias, and the Dunning-Kruger effect. He suggests strategies for managing these biases, including providing relevant anchors, segmenting accounts, and creating controlled environments for testing investment strategies. Overall, the conversation highlights the need to understand and work with our emotions to achieve financial well-being. The conversation explores the shift towards psychology in financial planning and the declining importance of technical skills. It highlights the simplification of technical aspects in finance and the need for financial planners to focus on the human element. The blurring of roles in financial planning is discussed, as well as the evolution of financial planning education. The integration of subjective and objective thinking is emphasized, along with the importance of emotional skills in financial planning. Takeaways Emotions are a tool that can be used to make better financial decisions. Listening to negative emotions can provide valuable information and help avoid destructive decisions. Positive emotions can also guide financial choices, but it's important to be aware of their potential pitfalls. Technical skills in financial planning are becoming less important due to advancements in technology. Simplification of technical aspects in finance, such as budgeting and insurance products, is making financial planning more accessible. Financial planners must focus on the human element and develop coaching and counselling skills. The future of financial planning involves a blending of roles, with all planners needing to be coaches and therapists to some extent. Financial planning education is evolving to include more content on emotions and communication. Meeting clients where they're at and recognizing their individual needs is crucial in financial planning. The integration of subjective and objective thinking is essential in the field of financial planning. LINKS: Dalton Education CERIFI Dr. Matt Goren Linkedin: CLICK HERE