— Editor’s note: This article is the second in a series by CLS Investments CEO Ryan Beach covering his firm’s research on advisor-client relationships. Read the first installment here.
As in the medical world, in the financial world we are dealing with individuals, each one unique, each one presenting different scenarios and unique solutions to those scenarios. Medicine and biology are to doctors what finance and psychology are to wealth managers.
Taken as a whole, it may be rather daunting for advisors to consider the endless possibilities they may be presented with when taking a client’s financial life into account. However, it is reassuring to know that if we add certain principles of psychology to the equation, we can apply some order to the inherent chaos. We can begin to understand, to get to the root cause of various issues — external and internal forces that together define a person’s path forward and cause them to take financial action — sometimes positive, sometimes not.