Most of us realize how important questions are in our client . . . → Read More: The Power of Questions]]> Jacqueline Kelm believes that we live in a world our questions create.  In her book Appreciative Living, she writes, “The internal and external questions we ask steer our thinking, attention, and images in one direction or another which in turn directs decisions and creates our experience.”

Most of us realize how important questions are in our client meetings and in our daily interactions with colleagues, family members, and friends.  It seems we are continually either asking a question or responding to a question.  What we are less aware of are the questions that we continually ask ourselves.  Our internal dialogue exists so automatically that we are barely aware it is happening.  What develops are patterns of thinking that shape the way we view ourselves, view others in our lives, and view the world in which we live and work.

As Kelm explains, although it is impossible to monitor every thought that runs through our brains, it is possible to become more aware of the question and answer “habits” that guide our lives.  She wrote, “What we can do is realize these thought processes are going on, appreciate the value they provide, and make a point to ask questions in a more intentional way at appropriate times.”

Kelm also believes that what we pay attention to grows.  In other words, if we choose to study success, we will not only find it, but more success will be generated.  Therefore, she recommends that it is important to ask about what we want more of, and not less.  Kelm explains, “Our attention will create our experience, and if we focus on lack, we create more lack.“  Lou Tice, creator of the Investment in Excellence program, describes the same concept in this way: “You move toward that which you think about.”

In addition, Dan Sullivan, founder of Strategic Coach, Inc., has long promoted the power and value of “strategic questions.”  For well over a decade, he has used one question in particular to foster clarity of vision and motivate positive change.  In meetings with his coaching clients, he asks:  “If we were having this discussion three years from today, and you were looking back over those three years, what has to have happened in your life, both personally and professionally, for you to feel happy with your progress?”  What Sullivan has discovered is that this question provides a framework that enables individuals to simplify their complex lives.  They gain clarity when they identify what will make them happy with their progress.  The result is a new confidence that will lead to important decisions and action steps.

In his long career at Stanford University, Albert Bandura, world-renowned psychologist, has made tremendous contributions to our understanding of human behavior . . . → Read More: Financial Self-Efficacy in Your Clients’ Lives]]> M.Q. President, Carol Anderson, is a regular contributor to the FPA Practice Management Center Blog. Her most recent post explores the psychological concept of self-efficacy and examines how financial self-efficacy affects your clients’ lives.

In his long career at Stanford University, Albert Bandura, world-renowned psychologist, has made tremendous contributions to our understanding of human behavior and motivation.  One of his main areas of focus has been the concept of self-efficacy, a person’s belief in his/her ability to succeed in specific endeavors.

In fact, Bandura’s research has demonstrated that self-efficacy is the most powerful determinant of an individual’s thoughts, feelings, behaviors, and accomplishments.  He found that people with a strong sense of their capabilities 1) view difficult tasks as challenges to be mastered; 2) develop a deep interest in their activities; 3) set challenging goals and maintain a strong commitment to them, and 4) recover quickly from setbacks and disappointments.

In contrast, individuals with a weak sense of self-efficacy 1) view difficult tasks as threats to be avoided; 2) quickly lose confidence and dwell on personal deficiencies and other obstacles to achieving desired results; 3) have low aspirations and weak commitment to goals, and 4) are slow to recover from setbacks and disappointments.

Financial Self-Efficacy

Because self-efficacy has been shown to be a powerful catalyst for positive change, a number of researchers and educators have been exploring the connection between this psychological precept and higher levels of financial well-being.  In fact, one researcher concluded that “financial self-efficacy appears to be the missing link between knowledge and effective action.” Read More: Financial Self-Efficacy In Your Clients’ Lives

Cultures and customs are different, but at the end of . . . → Read More: Teaching the International Language of Financial Life Planning]]> In this article from the March/April issue of  FPA’s Practice Management Solutions magazine, M.Q. Licensee Advisory Board President, Michael Kay, CFP®, recounts how he shared his life-centered approach to financial planning with a group of financial professionals from India and also demonstrated a sampling of M.Q. Tools.

Cultures and customs are different, but at the end of the day we all want to put our head on the pillow at night and feel a sense that we are financially secure or at least on the road to security. It is that need that drew several dozen Japanese financial professionals to the Financial Focus offices in Livingston, N.J., in March 2011—shortly after the tsunami—to hear about what we do with and for our clients. The same message drew a dozen delegates from India to spend several hours with me before FPA Experience 2011 in San Diego last September. Read More: Teaching the International Language of Financial Life Planning

This “Licensee Spotlight” shines on Evan Shorten, CFP®. Evan is the founder and President of Paragon Financial Partners, a boutique Financial Life Planning firm based in Los Angeles, California that provides . . . → Read More: Licensee Spotlight: Evan Shorten]]> M.Q. “Licensee Spotlight” articles interview veteran M.Q. Licensees and ask them to share their experiences with M.Q. tools and materials and the Financial Life Planning® Process.

This “Licensee Spotlight” shines on Evan Shorten, CFP®. Evan is the founder and President of Paragon Financial Partners, a boutique Financial Life Planning firm based in Los Angeles, California that provides comprehensive coaching and guidance on the financial aspects of people transitioning in life.

Prior to establishing Paragon Financial Partners, Evan led a private wealth management team at Fidelity Investments, providing financial guidance and comprehensive financial planning solutions to a select group of high net worth individuals and families.

Q: What attracted you to Money Quotient’s approach to life-centered financial planning?

For many years I was working with clients on a consultative basis regarding their finances. In doing so I actively sought to learn about who they were and what motivated them to move their lives forward. Intuitively, I was asking many of the right questions to become more intimate with my clients. However, at times I was concerned or felt there was a fine line regarding what was okay ask. M.Q. afforded me the structure, and in turn the confidence, to explain to clients how important it is to ask the right questions.

Q: How long have you been using M.Q. materials? How long did it take to implement and feel comfortable with the process?

I have been using the M.Q. materials for about five years now. Immediately after completing “Fundamentals of Financial Life Planning” training I began using the materials. Like any new process it felt uncomfortable at first. However, I adjusted quickly since the concepts complimented how I ran my business. M.Q. offers a process and tools that support client-centered conversations and the growth of deeper advisor-client relationships. You are able to get to the core or root of developing a new client relationship and add new dimensions of learning to existing relationships. The more I use the tools, the more comfortable I become.

Q: How many M.Q. Tools have you implemented into your client meetings? Describe the process you followed to implement the tools.

I have used the majority of the Level 3 M.Q. tools. The process I followed was quite simple. For me it was all in my mindset. I wanted to make sure that I was considered an expert and a professional. I explained to my clients that in order to best help them live the life they desired, it was necessary for me to learn more about them. I asked them to “play along” and explained that hopefully the process would allow us to build an even more special relationship. With these goals in mind, I use the Satisfaction and Values, Biography, and Transition tools to begin the process of learning about my clients and their relationships with money and other areas of life.

Q: How do the M.Q. Tools enhance your client experience?

The M.Q. tools really show my clients that I mean business. They display a structure (which is crucial) that articulates how deep our relationship will become, if allowed. The M.Q. tools and process help the client know I am their partner and hopefully allow them to feel more comfortable, quicker. They also help create an environment that fosters intimacy. This is how I chose the word “partner” in my firm name—Paragon Financial Partners.

Q: What has the life-centered approach done for you, both professionally and personally?

The life-centered approach has allowed me to recognize so many things, including that I was not interested in working for a large corporation (so I opened my own firm), that I needed more of a balance in my own life, and how important it is to be present—not just with my clients. My clients have always told me that they feel I am very authentic. Now, my family and friends tell me the same because I have made the time to be present when in their company.

Present Financial Life (PFL) is a tool designed to create a life-focused, values-based context for your initial data gathering efforts with prospective and new clients. PFL will help to build rapport with your prospective and new clients while also keeping your “get acquainted” conversations efficient and . . . → Read More: Tool Examiner: Present Financial Life]]> This “Tool Examiner” article looks at the Present Financial Life tool.

Present Financial Life (PFL) is a tool designed to create a life-focused, values-based context for your initial data gathering efforts with prospective and new clients. PFL will help to build rapport with your prospective and new clients while also keeping your “get acquainted” conversations efficient and productive. PFL questions will assist you in getting to know your clients, and will provide insight in these important areas:

• Financial beliefs and behaviors
• Current family circumstances and responsibilities
• Current and future transitions
• Fears and concerns
• Values and priorities
• Hopes and dreams

PFL can be used to facilitate “get acquainted” conversations that focus on the lives of your prospective or new clients. As a result, you will be demonstrating your client-centered approach. This tool is available as both an interview form and as a worksheet that can be completed by your prospective or new client. When using the interview version, use the form to guide your conversation in prospective or new client meetings. As an alternative, the worksheet version can be used as a questionnaire that your prospective or new client can complete and return prior to meeting with you.

Each question is designed to focus your initial data gathering efforts on the current circumstances and priorities of your prospective or new clients.  Here are two examples:

“Tell me about your family.”

Reveals current family structure and enhances understanding of the individual’s financial responsibilities. Indicates degree of importance of family and the role of “family” in the individual’s life. Reveals the life stage of family members whose needs should be considered in the financial planning process.

“What are some of the factors or circumstances in your life that could affect your financial plan?”

Provides the opportunity to express fears, concerns, and problems the individual may not otherwise express. Allows the advisor to learn of family or work situations that may impact the individual’s financial security. Responses may indicate a need for specific financial planning products and actions.

Remain flexible in this discovery process. Use PFL as a guide only; allow for spontaneity. Also remain attentive to your client’s answers and let those responses lead to additional inquiry. Really listen and maintain good eye contact. Jot a few notes regarding significant pieces of information. Be on the alert for information that reveals your prospective or new client’s concerns, circumstances, values, and priorities. Ask yourself how this information is pertinent to his or her current financial life and how it will likely influence his or her future financial life.

If you are meeting with a couple, it is advisable that each partner be given a PFL worksheet to complete. The areas considered to be relevant or cause concern are likely to vary between the two individuals. It is important to note the differences and similarities and to include that information in your discussions and in the advice you give. Each partner should feel that his or her responses are respected and given equal consideration.

Make notes of key points that surface in your conversation with your client—do not try to rely on your memory alone. Use your notes to focus your thinking on your client and increase your understanding of his/her perspective, needs, circumstances, values, priorities, and aspirations. Also use your notes to guide future meetings and create a plan of action.

Note: The Present Financial Life tool is included in all Money Quotient Licensing Levels–1, 2, 3 & 4. For information about becoming an M.Q. Licensee, please e-mail info@moneyquotient.org. “Tool Examiner” articles take an in-depth look at a specific tool from within the Money Quotient suite of Financial Life Planning® materials, and provide tips and techniques for successfully using the tool with clients.

Although a number of studies have focused on the effect of income on happiness, Elizabeth Dunn, a social psychologist at the University of British Columbia, . . . → Read More: The Psychology of Giving]]> M.Q. President, Carol Anderson, is a regular contributor to the FPA Practice Management Center Blog. Her latest post shares the results of recent research into the relationship between spending choices and happiness.

Although a number of studies have focused on the effect of income on happiness, Elizabeth Dunn, a social psychologist at the University of British Columbia, also wanted to understand the effect of spending choices on happiness.

For example, previous research clearly demonstrated that income has a predictably positive effect on level of happiness, but these levels remained flat over time even as income increased. This finding puzzled Dunn, and she wanted to find out why happiness did not increase along with income.

Could the reason be, Dunn wondered, that people poured their increasing wealth into purchasing consumer goods that did not provide lasting happiness? As an alternative, could spending money on other people have a more positive impact on well-being than spending money on oneself? Read More: The Psychology of Giving – New Research Provides Surprising Insights