asking better questions with financial therapy techniques

3/21/2019 1

ASKING BETTER QUESTIONS:FINANCIAL THERAPY 101

For Financial Producer use only. Not to be reproduced or shown to clients.

RETIREMENTSOLUTIONS

Asking Better Questions with Financial Therapy TechniquesJOSH HARRIS, MBA, CFP®

Lecturer – Clemson University◦ Teaching Areas:

◦ Corporate Finance◦ Personal Finance◦ Financial Planning

Board Member – Financial Therapy Association

Founder – JW Financial Guidance

Incoming Doctoral Student – Kansas State University

Featured On: SC Public Radio, U.S. News, NerdWallet

Research Focus:◦ Financial Therapy◦ Clinical Supervision◦ Financial EthicsMore about the Speaker

What is Financial Therapy?Traditional Financial Services is focused on behavior change and financial security improvement.

Financial Therapy incorporates therapeutic techniques to focus on helping clients implement behavior change as well as change their thoughts and emotions with regards to money.◦ Decreased levels of debt◦ Decreased levels of anxiety◦ Increased willingness to seek

advice◦ Increased adherence to advice

Financial Therapy is a process informed by both therapeutic and financial competencies that helps people think, feel, and behave differently with money to improve overall well-being through evidence-based practices and interventions.

How can Financial Therapy be used?There is no one single Financial Therapy method.

Systems Theory

Cognitive Behavioral

Therapy

Narrative Therapy

Motivational Interviewing

Experiential Financial Therapy

Solution-Focused Financial Therapy

Collaborative Relational

Model

Ford Financial Empowerme

nt Model

Stopping Overshoppin

g Model

Motivational Interviewing

Applied Communication TechniquesQuestion Styles

Planner-Focused Client-Focused

Close-Ended Open-Ended

Tell me about how you’re saving for

retirement.

Do you have an employer-sponsored

retirement plan?

Applied Communication TechniquesQuestion Styles - continued

Swing Questions

Close-Ended question that prompts a client to reveal more than a simple “yes” or “no”

Scaling Questions

Useful in helping client and planner gauge their progress, impression or observation

On a scale of 1 to 10, with 10 being the most confident, how confident are you in your savings for retirement?

Can you tell me a bit more about your employer-sponsored retirement plan?

What would it take to move you up/down?

Applied Communication TechniquesNon-Directive Communication◦ Designed to encourage clients to talk and open up

Clarification◦ Used to recheck something a client says or does

Primary Outcome: Obtaining Emotional Evidence

“I want to make sure I heard that correctly. Can you restate what you just said?”


Summarization◦ Used to clarify a client’s goals and wishes◦ A brief summary of the content shared – not a restatement


“I want to make sure I fully understand your concerns. What I’m hearing is…”


Reflection◦ Used to connect with a client emotionally


“I have never seen you so angry. You are really mad.”


Paraphrasing◦ Used as a confirmation device to clarify what was said and meant


“So, you are worried that you might make the wrong choice when choosing a health plan this year. Is that correct?

Applied Communication TechniquesDirective Communication◦ Designed to lead clients to a solution

Interpretation◦ Helping a client articulate their thoughts and feelings using financial terminology

Primary Outcome: Enacting Behavior Change

“I don’t’ think it is anything about paying the bills. We have the money. I just can’t explain how I am feeling.

“Your anxiety is totally normal. What is likely happening is…”


Reframing◦ Designed to help a client shift his or her perspective


“You cannot be suggesting that there is anything good in all of this…?”

“Let’s look at this from a different angle…”


Explanation◦ A descriptive statement used to make something plain or understandable


“Okay, but when you say a report, what does that mean?”

“Great question. The initial reports will give…”


Advice◦ Giving a client direction about what to do in a particular situation


“What do you mean by ‘tax-inefficient?’”

“Given your household income, if you take out a parent loan for your son, you are not going to receive a tax benefit on the interest paid. So, I would not do the local university loan package at this point.”


Suggestion◦ Helping a client choose a course of action using his or her own initiative


“What do you think I should do?”

“My suggestion is to…”


Urging◦ Tends to be crisis-driven


“Is the letter from the IRS really that big of a deal?”

“I cannot urge you enough to get the help of an enrolled agent. They can represent you before the IRS…”


Confrontation/Ultimatum◦ Involves voicing a disagreement◦ Occurs when a client’s behavior becomes dysfunctional and disruptive


“I do not want to lose you as a client, but I also don’t want you to keep making these types of decisions…”

“Are you firing me?”

“I would not say that. I simply want you to think about the value of our services compared to the price you have been paying…How about we meet again in two weeks to talk about our future together?”

Question & AnswersThank you for having me!

Contact Information:

Josh Harris, MBA, CFP®

[email protected]

[email protected]

mailto:[email protected]

mailto:[email protected]

(800) 589-3000www.ashbrokerage.com

For Financial Producer use only. Not to be reproduced or shown to clients.

asking better questions with financial therapy techniques

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