Chapter 15: Psychological Aspect of Financial Planning

Financial Behavior: Players, Services, Products, and Markets. H. Kent Baker, Greg Filbeck, and Victor Ricciardi, editors, 265-284, New York, NY: Oxford University Press, 2017.

Posted: 8 Jun 2017

See all articles by Dave Yeske

Dave Yeske

Golden Gate University - Ageno School of Business

Elissa Buie

Golden Gate University - Ageno School of Business

Date Written: June 1, 2017

Abstract

This chapter discusses personal financial planning, which is an interdisciplinary practice that employs a six-step process to develop integrated strategies for individuals and families to efficiently mobilize their human and financial capital to achieve their life goals. Financial planning draws from various disciplines, including counseling, psychology, finance, economics, and law. It includes budgeting and cash flow planning, risk management, insurance planning, investment planning, retirement and employee benefits planning, tax planning, and estate planning. The strategic process whereby financial planners develop integrated strategies that draw from all these fields in pursuit of client goals is the profession’s unique domain. Heuristics and mental biases to which clients may be prone overlay the entire financial planning process, however. Financial planners should understand and consider these issues when developing recommendations uniquely suited to each client, maximizing the probability that the client will embrace and implement the recommended strategies.

Keywords: behavioral finance, behavioural finance, financial planning, integrated strategies, heuristics, mental biases

JEL Classification: A12, D81, G00, G30, G10, M00, M10, M41

Suggested Citation

Yeske, David and Buie, Elissa, Chapter 15: Psychological Aspect of Financial Planning (June 1, 2017). Financial Behavior: Players, Services, Products, and Markets. H. Kent Baker, Greg Filbeck, and Victor Ricciardi, editors, 265-284, New York, NY: Oxford University Press, 2017., Available at SSRN: https://ssrn.com/abstract=2982383

David Yeske (Contact Author)

Golden Gate University - Ageno School of Business ( email )

536 Mission Street
Room 4332
San Francisco, CA 94105
United States
415-442-6524 (Phone)

HOME PAGE: http://www.yebu.com/about/dr-dave/

Elissa Buie

Golden Gate University - Ageno School of Business ( email )

536 Mission Street
San Francisco, CA 94105
United States

HOME PAGE: http://www.yebu.com

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