The subject of the latest article featuring PeachCap is financial psychology. The article titled “How Financial Planning Becomes Therapy” in U.S. News & World Report’s money section makes the point that clients often have fear and make poor decisions when they face loss—whether it’s the loss of a family member or potential financial loss during times of stock market uncertainty.
Because people experience emotional turmoil around money issues, financial planners have found that they need to play a greater role in listening to clients, coaching them, and encouraging them to stay firm and committed to their financial goals throughout all challenges.
PeachCap has gamified the process of psychological discovery. When new clients come on board, each client fills out a lengthy survey to determine his or her avatar. (There are seven: giver, connector, problem solver, innovator, perfectionist, rebel and master).
Since investing often comes down to emotional decisions, the survey’s goal is to identify how the client may react to various investment choices and return scenarios. The test determines the investor’s “super power,” or strength, and also a weakness or “kryptonite.” Advisors can use this knowledge to better tailor their advice to each client, especially in the event that he or she is grappling with a stressful life event, PeachCap founder David Miller says.
Read the whole story here: U.S. News & World Report: PeachCap