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Envision Philly July
- 1. Synsapiens By Envision : _________________________ A Confluence of parallel wisdoms
- 2. Professional background • Clinical, organizational, forensic psychologist • Executive coach/consultant • Mediator, Parent coordinator • ChFc, CDFA • Mindfulness
- 3. The Spirit of This Presentation • We have different experiences and knowledge, not more/less, better/worse. • Intent: to Introduce a Mind Set, with some practical considerations. • Giving Circle • Challenge, mutual exchange • Question generation, not just answers
- 4. Setting the Stage : What’s real is “weal” • APA Survey • Millionaire anxiety • Depression/prosperity/growth • Sea change in attitudes regarding quality of life • GDP bears no relation to QOL
- 5. The Allianz Study Boomers Elders • Values and Life Lessons • 77% - 77% • Instructions and wishes to be fulfilled • 65% - 53% • Personal possessions of emotional value • 34% - 30% • Financial Assets or Real Estate • 10% - 39%
- 6. Dionysian & Promethean: “The Mother Art is Architecture” - Wright
- 8. Psychology • Positive Psychology is not pathology or healthcare • Accessibility/Acceptability Increased • Organizational , Sport, Coaching • Emotional Intelligence, Behavioral Finance, Leadership • Telehealth Trends, CA
- 9. Financial Planning • Holistic Planning 20 yrs. Ago, No Map. • Enhanced Developmental Awareness • “One Trick Ponies”, MTA are not sustainable • “Normal” is changing • Commoditization , Disintermediation, P2P of FP • Decrease Faith in Markets • Refocus upon relationship as core element • Converging Fees with Psychology
- 10. The Housing/Market Meltdown Changed Everyone’s Way of Thinking
- 11. Technology • Connectivity between Planner and Client • Connectivity between Client and File, Resources • High Transparency • Social Connectivity • Resource Democratization • Multimedia Connection • Zero Cost for Multiple Resources
- 12. Mindful Financial Planning Wealth Positive Behavioral Psychology Finance Emotional Intelligence Personal Narrative
- 13. The Driver: The Personal Narrative • Stories drive entire cosmologies, and shape meaning. They are ubiquitous and persistent. • The Personal Narrative is dynamic, developmental, and an act of ongoing creation: Being is Becoming. • Narrative can address Heritage, Legacy, the Present and the Money Story. • Narrative is the Nexus of Planning and Psychology. • Appreciative Inquiry (AI) is narrative that can be Individual/Organizational (Family Business)
- 15. What Questions Do You Have? Genograms: The Deserting, Drinking, Disappointed Dad Michael Ellen Scanlan Broder ~1825 1829 1832 186 182 178 Hugh Elizabeth James Elizabeth James Margaret Martin Flynn Quinn Furey Masterson Guerin Scanlan Kennedy John Rose 1858 1861 1869 John Catherine Flynn Furey 153 150 Kennedy Moylan 142 Elizabeth Michael John Guerin Guerin J. Marie Jenny Guerin Grim O'Connor Rose Patrick Ellen 1894 - 1971 Kennedy Flynn ~1892 77 119 Charles Lillian Thomas Mary John William Leo Mary Guerin Guerin Guerin Guerin Guerin Alice Guerin Hines Jones ~1926 85 ~1920 1925 - 2004 Don John Peggie 91 78 Patrick Lee Thomas John Margaret Vincent Catherine Detw eiler Kennedy Frieler Kennedy Sloan Kennedy Dolan Kennedy Haugh Kennedy Charles Alice John Joseph Sue Mary Alice Fr. Francis Leo Marie Joseph Guerin Connor Jane Guerin William A. X. Jean Imelda Guerin Mansf ield Guerin Guerin Guerin Guerin Boyle McGuckin Mary Joanne Carol Aileen Patrick Beth Kennedy Kennedy Kennedy Kennedy Kennedy Christine Patricia Shiela Charles Tracey John Kathleen Margaret Paul Kathy Patricia Edw ard Vincent Rosemary Dennis Robert Steven Bob Sr. Paul Patrick Kennedy Kennedy Kennedy Kennedy Kennedy Dolan Dolan Dolan Dolan Haugh Haugh Haugh Haugh Haugh Haugh Haugh Kennedy Richard Jean Kathryn Joseph James Bernard William Suzanne Gerald Guerin Guerin Diane Guerin Kenneth David Lisa Annette Alice Charles Virginia Leo Marie Marie Guerin Leo Guerin Guerin Guerin Guerin Guerin Guerin Mansfield Guerin Guerin Robert Marie Leo Guerin Guerin Guerin Guerin Guerin Fernley Guerin Guerin 1930 80 Charles Alyce Rose Jared Alexandra Ellen Fernley Fernley Kennedy 1951 1952 1952 1954 1955 1956 1958 1959 1961 1963 1968 1968 60 58 58 57 55 54 53 51 49 48 42 42 Michael John Kathy Dolores Rose Philip Kathleen Daniel Melanie William Connie Charles Patrick Jill Matthew Mark Gina Francis Arlene Guerin Daw son Gregory Marian Francis Ellen Cosentino Cosentino Guerin Suziak Guerin Graves Guerin Guerin Lucas Guerin Guerin Guerin Padron Vaeth Guerin Day Day 1999 12 Shannon Nicole Guerin Melanie Anthony James Evan Eleanor Julia Cooper Brian Conor Lucas Liam Michaela Kennedy Brady Joseph David Benjamin John Eileen Michelle Marisa Rosemary William Christopher Nathaniel Alexander Brendan Michael Roseann Timothy Cosentino Cosentino Cosentino Guerin Guerin Guerin Guerin Guerin Guerin Guerin Guerin Rose Guerin Guerin Guerin Guerin Guerin Paul Guerin Guerin Guerin Vaeth Vaeth Vaeth Vaeth Vaeth Day Sean Day Day Guerin Helen Cass Guerin Day Devine Deary Lisa Kellie Colleen Devine Kennedy Kennedy
- 16. So, What’s Your Story? What’s Your Money Story? • Narratives can be structured, or unstructured (Farnsworth) • Themes that are mirrored back cause “aha!” moments. • Stories “Walk the Walk” better, as values. • Themes mesh with heritage and legacy = insight = direction
- 17. What Questions Can You Answer? The Ethical Will • The 125 year old doll: She was young, once. • When I speak my truth to unknown descendants, I’m creating expectations about my best life now, and gaining perspective • Parent = Better Person
- 18. What is: Positive psychology? • Moves away from healthcare, and the medical model • Focuses upon strengths, and leveraging strength for greater life satisfaction: PERMA • Not threatening • Fits with a coaching model, rather than a therapy model • Fits better with wealth, legacy • Easily administered and monitored. http://www.authentichappiness.com
- 19. What is: Emotional Intelligence? • Self/Other Awareness • Communication, Social Skill • More predictive of success than IQ • Used in OD, Leadership, Measurable, • Not Pathology Based, Skill Based, Trainable • Dovetails with Couples, Business, Families, Estate, Legacy in “Difficult Conversations”
- 21. What is: Behavioral Finance? • Assails the Myth of Rational Markets, Homo Economicus • Explains Both Market & Individual $ Decision Making • Assists in Client Education: Expectation Management/ Retention • Dovetails with Sustainable Investing (SRI, Local, Alternative Investing).
- 22. What is: Financial Planning? • Of Course: It’s a Six Step Process with which we are familiar. • It also addresses issues of: – Financial Independence, Transcendence & Developmental Stage and Their Implications – Money Story, Stories as Overlap Points – Predictable and Unpredictable Transitions – Transitions = Change of Planners in High Percentage of Cases.
- 23. What is: Mindfulness? • “Heartfulness” • Awareness • Present Focus • Emotional and Intellectual Clearing • Consistent with Pos. Psych, EI, Beh. Finance • Smart/Wise
- 24. So, if this is such a great idea, why hasn’t it happened already? • We speak different languages • We have different business models, practices • Ethics, compliance, regulatory differences • Lack of full mutual appreciation • Project management issues • Ownership territory • Mutual issues in collaboration
- 25. Where DIY is okay, and where judgment is needed
- 26. Opportunities range from simple to complex, in scope and risk • Simple referrals are easy and independent, but can lack coordination and increase slippage. • Occasional PRN referrals require greater coordination, more time and communication. • Ongoing and Multidisciplinary work requires intensive coordination that is central to success. • Coordination can range from simple to complex, for planner and psychologist • Consider ROI as a factor
- 27. Models for Collaboration, Integration • Ad Hoc consultation when needed; usually pathology based • HMO Capitation Model in fee only structure • Models, types of billing (consult, eval., project, ongoing) • Built in overlap, e.g., narratives, conjoint sessions (practice required) • Cafeteria Plans • Back channel consulting • Fully integrated, as branded • Mutual Professional Development • Overlap of professions lets FP DIY • Fully Integrated Model, with add’l. outside Prof’ls.
- 30. Coaching, Therapy, Project Bases In/Out Close/O Basis Tier 2. Psychological Assessment T Either Cl. Ret 0 3. Standard Clinical Interventions: Depression, Anxiety, etc. T Either Open Hrly 0 4. Addiction Intervent/Treat (Chem, Beh, $) T Either Open Hrly 0 1. Positive Psychology, Authentic Happiness C In Neg. Hrly/Ret 2 10. Money Story P In Cl Ret 2 11. Heritage Narrative P In Cl Ret 2 12. Genogram P In Cl Ret 2 13. Legacy Narrative P In Cl Ret 2 14. Current Narrative, Appreciative Inquiry P In Cl Ret 2 Neg 5. Couples Communication T,C Either Hrly/Ret 3 6. Values Clarif., Non-Financial Wealth Assess't P In Cl. Ret 3 7. Behavioral Finance Counseling C In Cl./Neg Ret 3 21. Ethical Wills P In Cl Ret/Hrly 3 8. Emotional Intelligence Assessment, Coaching C In Op/Neg Hrly/Ret 4 9. Mindfulness C In Neg Hrly/Ret 4 15. Heir Preparation C Either Cl/Neg Hrly/Ret 4 17. Marital, Estate Discussions C,P In Neg Hrly/Ret 4 18. Dealing with the New Family (Blended, LGBT) C In Neg Hrly 4 19. Divorce, Death and Other Transitions T,C Either Open Hrly/Ret 4 20. Financial Planning re: Addiction Issues C In Cl/Neg Ret/Hrly 4 22. Family Organization and Governance P,C Either Neg Ret/Hrly 4 25. Family Mediation C Either Neg Hrly/Ret 4 26. Philanthropy P,C In Cl/Neg Ret/Hrly 4 27. Spiritual Sustenance C Either Neg Hrly 4 16. Family Dynamic Analysis and Intervention T,C Either Cl/Neg Hrly/Ret 5 23. Family Business Issues: Success/Exit/Triune Rel. P,C Either Neg Ret/Hrly 5 24. Organizational Assessment and Intervention P Either Neg Ret 5
- 31. Discussion Points: What I’d like to know from you… • What works, what doesn’t – SWOT • What needs refinement • Solutions to barriers
Editor's Notes
- Synsapiens…This is a term that I coined to represent the bringing together of two realms of wisdom. It’s not a protected or service marked term, so feel free to use it, though I don’t think it’s particularly “sticky”. I also don’t think of it as intellectual property, so to speak. Any ideas that I have are built upon other people’s good ideas. As I present both new and borrowed ideas, I’m hoping we can share with each other, to our mutual benefit.
- First, by way of background: I am a clinical, organizational and forensic psychologist. I’ve been an executive coach and consultant, mediator and parent coordinator. I’m also a Chartered Financial Consultant and Certified Divorce Financial Analyst, and a practitioner and trainer in Mindfulness Based Stress Reduction. I first became interested in the psychology of money while living with a compulsive spender, and I learned through sometimes painful experience how money can be a crucible for many meanings. I also found in my clinical practice that people who would willingly discuss intimate details of their sex lives would bridle if I asked them what their income was. I realized that money is the final taboo in communication. So, of course, I decided I wanted to talk about it.
- The emotional tone I’d like to set for this presentation is one of exchange. While I am the presenter, I am also the facilitator of an exchange.
- The word “wealth” is derived from the English word “weal”, which means “well being”. The word has clearly taken on its own trajectory. In 2010, the American Psychological Association conducted a survey of the sources of stress in American life. Fully eighty percent of the respondents reported that money is the leading source of stress in their lives. A survey of millionaires found that seventy percent of them suffered from anxiety about money. As the standard of living in this country has risen, rates of depression have also risen. Eating disorders, oddly, only seem to occur in countries that are prosperous. There is an unworkable system, where two thirds of the economic growth is premised upon consumer spending, and it is axiomatic that growth must continue every quarter, ad infinitum. Increasingly, people are beginning to understand that their lives and their souls are not being fed by what they consume, and that the Beatles were right. Love will get you through times of no money better than money will get you through times of no love. GDP bears no necessary relationship to QOL.
- The Allianz studies were the largest study of wealth ever conducted that focused upon adult boomers and their parents. The study was important because of the great wealth transfer that has been anticipated to occur over the coming years. We now have our doubts about whether such a transfer of wealth will ever occur, so these results may be modifiable, but the findings are so stunning that it is unlikely that they would completely reverse.
- In thinking about combining the thinking and research in Psychology with Financial Planning, the field of Architecture and the words of Frank Lloyd Wright come to mind. A building must have good engineering and structural strength if is it to endure over time. We also look for the artistic beauty of form, because the spaces within which we live exert a powerful influence on our consciousness. It is not surprising that the longest standing pieces of architecture were built as edifices of worship, the expression of our recognition of a higher power present in the world, and in ourselves.
- Financial Planning and Psychology have done a dance together for quite some time. Usually, it has been most common with individuals and families of high or ultra-high net worth. However, technological development, along with progress in FP and Psych are making the combination more attractive, even necessary. Holistic planning can be done in a manner that is customizable (Small is the New Big – Godin), scalable and fungible.
- In Psychology, there has been a move away from the medical model in recent years. The medical model is pathology based. We go to the doctor, tell him/her our symptoms, the doctor diagnoses what is “wrong” with us, and does something “to us” or prescribes something for us to take to fix the problem. We are the passive recipient of a service. The focus in Psychology has turned more to a strength based approach, where strengths are assessed, and then leveraged to achieve greater life satisfaction. As a result, psychology is more acceptable approachable, inviting. You don’t have to be crazy. It is in the mainstream in our culture as never before, and it is in business, sport and daily life. Organizational leadership, market forces are seen as involving psychological factors. The Nobel in Economics was awarded to Kahnemann and Tversky, psychologists in Behavioral Finance. At the same time, psychology is entering the telehealth arena, through Skype-like platforms, for both therapy services and coaching. Thirteen states require reimbursement for teletherapy.
- The FPA has been advocating holistic planning for amny years. It has immediate intuitive appeal. However, there has nto been an adequate roadmap for how it is done. People like George Kinder and Jay Hughes have made valuable contributions that have raised awareness of individual and family development. At the same time, the field has been driving, as many fields do, toward commoditization, disintermediation and P2P erosion of the professional’s role. The choice that FPs have been given is either to deliver value added services in the form of the relationship, or to develop enough expertise that they can rightfully claim to beat the market. Since our very faith in the market has been rightfully shaken, FP must put the accent on the planning rather than the financial part of the equation, which compels us to focus on the depth and breadth of the relationship. The MTA idea can work, but it’s easier to be a favorite child when you are an only child. Otherwise, you are in direct competition with siblings/other professionals. Some planners have tried to tie planning services to personal epiphanies, or to spiritual values or ideologies, and that can be a source of value for some. However, it can also be exclusionary to some degree, especially as the concept of what a “normal” family is changes. The profession also appears to be moving inexorably to the fee only model, which allows it to overlap, in terms of economic structure, with the delivery of psychological services.
- Technology is quite a blessing. It allows us to do much of our work more easily and efficiently. At the same time, its availability to everyone means that while there is greater connectivity between planner, client and the markets, there is much greater transparency to services rendered. Social connectivity can compete with the professional/client connection. Resources are not owned exclusively by the experts, but are domcratized and rendered in multimedia formats. Price barriers to resouces fall, as tools, once introduced, tend to move toward zero in terms of cost. (Free – Christian)
- When speaking about the integration of FP and Psych, it seemed to me that the Venn diagram gives a nice graphical representation of the overlap of these areas. Positive Psychology, combined with Emotional Intelligence, contribute a distinctly psychological orientation. Behavioral Finance is a mixture of psychology and finance, and financial planning is what it is . The intersection of these factors is what I would call Mindful Wealth. The driver of these factors that is shared in common is the personal narrative. I will go into each one of these areas in turn, beginning with the narrative.
- Psychological services, coaching and financial planning all have a beginning in a common process: the personal narrative. Stories are how we build reality, and shape meaning, whether it be our religious cosmology, parables of the gospels, or Aesop’s fables. When we tell a story, though, it changes both the teller and the listener. Each telling of a story is unique and changes over time, so that narratives are dynamic and developmental. Who we are is not just about who we are, but who we are becoming. Narratives can be about where we came from, our heritage. They can be about where we are going, or want to go: our legacy. They can be about our present life, or they can coalesce around a theme, such as our Money Story. Narratives form a common starting point for both planning and psychology, and allow Appreciative Inquiry to be used as a tool for planning and for change, either on an individual or an organizational level.
- It’s more important that you walk the walk than that you talk the talk.
- The Heritage Narrative is about where we have come from. However, it can also be much more. If I look at this genogram of my family, I can look at the story of how I came to be, and the values, courage and decisions that caused me to exist. For example, James…. When I know my story, it tells me what it took for me to be here, and places a set of expectations on me. It gives me a broader vision, a deeper grounding in values. It also makes sense of some things, like the “shirtsleeves to shirtsleeves” idea. My bequest, if my great grandfather had put $1 million in investments that earned 8%, even during the Great Depression, would have been $17,000. My legacy is to value education. So, as with the Allianz study, which would you say is more valuable, his money or his story?
- This is my dad. You see the sneakers, tennis racket, vest and tie. He looks like he’s in a daguerrotype from the nineteenth century, when people dressed up to play tennis. But, this was in the early eighties. I have ten siblings, and the first thing my father did when he came home from work is that he would spend time playing with his kids. On this day, and many other days, he didn’t even give himself time to change before the play began. This is him. He is me. With ten siblings, money was tight. It wasn’t said that it was, but dinner was served by my mother, portioned out so that everyone got some. We had weekly family meetings, allowance on an explitit age related scale, and a stron alliance with each other. I lied about my age to get my first job, a newspaper route at the age of ten. Money meant independence, the ability to make choices, to buy the clothes I wanted, even to eat the food I wanted. It goes on from there. My story and my money story are bound together, and reflect where I came from. When a person tells me their story, sometimes they need a structure, and that is easy to give. Like Scott Farnsworth, I can simply ask a person to speak on a theme, like: The Angels I Have Known, or My Most Difficult Trial, or The People I Come From. All of those themes lead to the story that the person needs to tell. Invariably, when a person tells me his/her story, and I reflect back what I’ve heard them say, the mirror always contains some surprises for them, things they didn’t know about themselves, about the themes the’ve developed, or the values they have lived. In many ways, the story is much more revealing than just asking a person what their values are, because the story tells of values lived , not just the talk they talk, but the walk they’ve walked. From the telling of the story, values line up with past heritage and point toward legacy in a manner that is insightful and meaningful.
- It used to be that a person would write their “last will and testament”. Now, it appears that people write their will, their estate plan. They deal with the business and taxation that death requires, for the preservation of financial wealth. But what about non-financial wealth? What about the social, intellectual, spiritual, emotional capital that we have received from our legacy and amassed over our lifetime? My grandmother was young once, but I didn’t know her then. I need to be reminded. “Let’s all get up and dance to a song that was a hit before your mother was born…” The Ethical Will is a testament, the telling of stories, the transmission of non-financial wealth. “This is what I stand for”. “This is what I’ve done, what/who I’ve loved, how I’ve prevailed, what it all meant to me.” When I speak my truth to an as-yet-unknown descendant, I’m creating expectations for myself about my best life now. And we all know, that being a parent makes us be better people.
- As I’ve already said, Positive Psychology moves away from the medical model and focuses upon strength based growth. Instead of asking what is wrong and having repairs done to us, we are actively engaged in growing. The questions are: What gives us healthy pleasures, what engages us fully? What resilience do we have? What gives us meaning? What have we achieved and what do we want to achieve? The positive focus is engaging rather than threatening, fits with a coaching model and is measurable, repeatedly. Since I’ve been a willing Guinea Pig thus far, let’s look at my profile.
- EI, popularized by Daniel Goleman, has been shown to be a better predictor of success in career and organizational life than IQ, but is not covered in any school curriculum. We learn to write, but don’t necessarily learn to communicate and collaborate, except haphazardly. Those skills, however, are both learnable and measurable. The can come in handy in everyday planning in terms of getting a couple to be able to communicate around financial issues, rather than leaving it up to one partner, as we often see being done. It is also important in special circumstances, such as with estate issues, family businesses, blended and same sex family issues, trusts, foundations, etc. EI enhances one’s ability to engage in “difficult conversations.”
- When I’ve assessed couples, I’ve often found, surprisingly, that couples with the highest level of conflict share similar personality characteristics. Example of house building. Being different, though, is no “walk in the park”. Kathy and I are diametrically opposed in terms of style in certain respects. The key is to assess these differences, and learn to work with them. Hendrix has stated that we are attracted to someone who is different from us, and then spend the next twenty years trying to make them like we are.
- Behavioral Finance is chiefly important in that it causes a “creative destruction”. It does not appear that it will generate an over-riding model for viewing economics, but it does assail the myth rational markets, and “invisible hands” that will always set things straight. It can be useful in understanding market irrationalities, and examining expectations and decisions. Client education can help to overcome emotional “fast thinking”, which can help manage expectations. This can enhance retention. If we mix issues of market distrust with issues of legacy and values, it can also dovetail nicely with conversations about SRI, Local and alternative investing.
- Financial Planning is, of course, the six step process with which we are all familiar. However, it should be remembered that it is also inherently psychological in its nature. Planning addresses issues of both psychological and financial independence and transcendence (The Number), Financial Developmental Stages and the implications of these things. The money story and personal narratives are a natural overlap with planning. Planning also involves dealing with predictable and unpredictable life transitions.
- Mindfulness has to do with having a present focus, being a human being, rather than a “human doing”. In financial planning, it means having alignment between past, present and future in the plan.
- Read off the slide.
- With tools, such as the Authentic Happiness website, and a format for a Money Story, FPs can certainly administer some assessments on their own, just as a Psychologist can discuss matters of spending and planning. Knowing when to call in the other profession is a matter of judgment. Grubman and Jaffe use a green, yellow, red gradient.
- There will always be instances where a planner will refer a client or client family for psychological services, and this can be done very simply, with boundaries between the work of each professional. The therapist sees the client, tries to help, and presumably, this positively impacts the planning process. This is simple and elegant, and is the way that most psychologists currently work with planners. A downside is that it only takes place under the pathology model, fixing what is broken, rather than enhancing life and family. There is also no explicit and agreed upon coordination between the professionals. Repeated referrals may require some coordination between professionals, which may require time. Ongoing coordination between planners and psychologists, which would happen in a MFO, SFP or integrated practice, requires intensive coordination and some measure of interdisciplinary literacy. An additional consideration to bear in mind is that there is extensive literature on the ROI of coaching, which carries pretty impressive numbers.
- This slide is just a nod to Rob
- Here, I’ve listed an extensive but not exhaustive list of different psychological services that could prove useful in the planning process. As you can see, it is fairly extensive. There are notations in terms of whether the service is consultive, ongoing, or a project, whether it takes place within or outside of the planning relationship, whether it is an open or closed end engagement, whether it is billed on an hourly, retainer or negotiable basis.