Behavior Gap Radio: Exploring human behavior...with a Sharpie

In June, I wrote a column for the New York Times that focused on the concept that dealing with money is both an art and a science. We see this play out in what I've referred to as spreadsheets and stories. Today, I wanted to share with you how you can help your clients navigate both the spreadsheets and the stories they tell themselves to relate to money. It's one of the things that separates real financial advisors from algorithms. To learn more about being a real financial advisor, sign up for the Behavior Gap Newsletter: www.behaviorgap.com.

The Fear Driving an Election by Carl Richards: Human Behavior, Creativity, Behavioral Finance

A lot of people describe their home as the best investment they ever made. We know the numbers make that a bit of a stretch, but it's understandable. Owning a home is one of the few "investments" that we hold on to for 30 years without constantly debating whether we should sell. It's much harder to stay that committed to investing in equities. One option is to buy boring things. To learn more about being a real financial advisor, sign up for the Behavior Gap Newsletter: www.behaviorgap.com.

After real financial advisors have done the hard work of building a well-designed portfolio, one of the best things we can encourage our clients (and ourselves) to do is ... drum roll please ... nothing! I know it sounds counterintuitive until you consider Warren Buffett's perspective on investing: "Benign neglect, bordering on sloth, remains the hallmark of our investment process." However, it turns out that doing nothing can be really difficult. To learn more about being a real financial advisor, sign up for the Behavior Gap Newsletter: www.behaviorgap.com.

Spreadsheets and Stories by Carl Richards: Human Behavior, Creativity, Behavioral Finance

When most people celebrate anniversaries, they do something for themselves. But Tadas Viskanta at Abnormal Returns isn't most people. To celebrate the 10 year anniversary of his amazing blog, he's launched a limited edition t-shirt, and for every t-shirt sold, he'll donate $10 to charity: water. You can learn more here: http://abnormalreturns.com/2016/05/30/the-abnormal-returns-1010-campaign/. After listening, if you're ready to buy, you can snag your t-shirt here: https://teespring.com/abnormal-returns. If you already have plenty of t-shirts, you can donate direct: https://donate.charitywater.org/abnormal-returns/abnormalreturns

There's a false sense of precision in the finance industry, and it's start with the financial plan. It's no wonder clients struggle when we ask them where they want to be in 20 years. Who know what will happen between then and now? But a guess, on the other hand, is whole different tool. To learn more about being a real financial advisor, sign up for the Behavior Gap Newsletter: www.behaviorgap.com.

It can be a struggle to feel peaceful when it comes to financial decisions, both before, during, and after. There have been times when I've gotten caught up in rehashing a money decision I've made. As a result, I've missed some amazing things along the way. But it doesn't have be that way. Real financial advisors can help people find some much-needed peace. To learn more about being a real financial advisor, sign up for the Behavior Gap Newsletter: www.behaviorgap.com.

Politics. Sex. Religion. Money. For years, we've been told not to talk about these subjects. Today, we probably talk about 2-3 of them more than we should, but we're still really good at NOT talking about money. In your role of real financial advisor, you can help people have these important money conversations. To learn more about being a real financial advisor, sign up for the Behavior Gap Newsletter: www.behaviorgap.com.

Leave a Little Slack by Carl Richards: Human Behavior, Creativity, Behavioral Finance

Every time I suggest financial advisors keep things simple, I hear a pretty common fear. "If it's too simple, they won't need us anymore." I get it, but I also want you to remember that the real reason people are working with advisors doesn't stop when you stop using jargon and help people cut through the complexity. To learn more about being a real financial advisor, sign up for the Behavior Gap Newsletter: www.behaviorgap.com.

This episode concludes my three-part series on why I hired a real financial advisor. Even though I'm an advisor, I'm also human. Being human means I'm still open to making emotional decisions. So to avoid making the big mistakes of buying high or selling low, I can benefit from having someone stand between me and doing something stupid. To learn more about being a real financial advisor, sign up for the Behavior Gap Newsletter: www.behaviorgap.com.

Why Not by Carl Richards: Human Behavior, Creativity, Behavioral Finance

In part two of my series on why I hired an advisor, I reflect on the need to have someone remind me of my goals and the reasons why I said these things were important to me. Specifically, I wanted someone who would be there during those moments when I'd be tempted to throw aside my plan and my goals for something new to say, "Wait just a minute. Has what you valued most changed or is this something else?" To learn more about being a real financial advisor, sign up for the Behavior Gap Newsletter: www.behaviorgap.com.

If you're a real financial advisor why could you possibly need your own advisor? Today's show is the first in a three-part series on why I believe it's so valuable to hire a financial advisor. Because here's the reality, very few people will enter your office knowing the real value that they'll receive from working with you. To learn more about being a real financial advisor, sign up for the Behavior Gap Newsletter: www.behaviorgap.com.