Kristy Archuleta, Michael Kothakota and Ed Coambs on the Psychology of Financial Planning

In this week’s episode, Johnny Sandquist and Brodrick Lothringer sit down with three industry powerhouses to discuss the intersection of financial planning, psychology and technology.

For clients, the emotional stakes are high when it comes to financial decision-making. Unfortunately, portfolio performance doesn’t always translate into client satisfaction –  and even the highest-performing portfolios can still result in financial anxiety. 

That’s why it’s so important for advisors to have a firm grasp of the psychology behind individuals and their finances. Luckily, today’s guests have a plethora of knowledge to share about emotional investing and how advisors can make those connections!

In today’s episode of On the Circuit, you’ll hear about:

• How different generations expect different levels of coaching and communication from their advisors
• How the four main emotional approaches to investing require different tactics from advisors
• Why AI-powered technology can’t get to the nuances of humanity – or replace advice from real-world advisors

Our three guests, Dr. Kristy Archuleta, Dr. Michael Kothakota and Ed Coambs each bring a different perspective to the table based on their unique journey to the financial industry. Plus, stick around to hear all about their perfect “fiestas” – which might actually turn out to be a “siesta.”

Click above to start listening or explore our other episodes of On the Circuit now. 

Key Takeaways

1. AI can complement the work done by advisors, but it cannot replace the human intuition and understanding that sets advisors apart. Advisors can pick up on cues that a computer cannot, such as body language and unconscious behaviors.
2. Advisors need to meet Gen Z where they are by using social media and other digital platforms. However, they also need to push for human interaction to build intimacy and connection. 
3. It’s important for advisors to put people at the center of financial planning by building relationships with clients and understanding their individual needs and concerns. 

Key Timestamps and Topics

• 00:03:48 – The guests define human-centric financial planning as an integrated approach where clients are the center, but advisors are there to empower them by paying attention to all of the human elements. 
• 00:07:48 – The guests discuss the impact of AI on financial planning. 
• 00:12:52 – Dr. Kristy Archuleta explains that her passion for helping people led her to blend her interests in personal finance and marriage and family therapy. 
• 00:16:24 – Financial planning needs to be an integrated approach to how we work with clients, shifting the paradigm to prioritize human emotions and behavior over technical financial pieces. 
• 00:19:32 – Advisors need to meet Gen Z where they are by utilizing social media and other digital platforms. 
• 00:29:11 – The goal of financial planning should be to integrate the psychological and relational aspects of money into the process.
• 00:32:57 – Ed Coambcs discusses his background in finance and how becoming a therapist helped him better understand the emotional side of financial planning. 
• 00:35:13 – Ed Coambs explains how attachment theory can be used to better understand couples’ relationships with money. 
• 00:42:59 – Coambs discusses the importance of building trust with both partners in a relationship when providing financial planning advice. 
• 00:48:01 – Coambs discusses how eye contact and financial transparency are related.
• 00:53:24 – Ed Coambs shares his thoughts on attachment theory and how it relates to human relatedness and bondedness. 

Relevant Links

• Download our free ebook, The Advisor’s Guide to Starting a Podcast
• Connect with a member of our podcasting team
• Learn more about starting your own podcast

About Three Crowns

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