Behavioral Finance 2.0: Meeting Clients Where They Are

Oh, congratulations.

And you're right, as a history nerd, you got to share with the folks the story of Lydia and the name, because I think that's what stuck out to me the first time I heard you tell that story.

Yeah, you and I are both history buffs.

This is more world history than U.S. constitutional history, so we're expanding your horizons.

The very first coin, the very first hard money that humanity ever used was discovered in modern-day Turkey, what, 2,700 years ago was the Empire of Lydia.

So the very first coin that we know was the Lydian coin.

If you Google it or look on perplexity, it's a really neat looking metallic coin with a lion emblazed on it.

So Lydia, yes, it's a pretty name, but it's also a shout out to the human journey with money.

which as we know is emotionally fraught, exciting, and a lot is involved with it, so yeah, Lydia's our shout out to the human journey with money.

I love it, and I'm gonna key in on that word you said, journey, because one of the things that stood out to me, one of the first times I ever heard you speak, this notion of there's the mechanic and the guide, right? There's these two forces as an advisor.

And the guide is the part that stood out to me is where you can really add value.

So let's lean into that a little bit more.

Tell us a little bit about that framework that you've created.

We can go a little bit down that path.

Yeah, happy to.

When we think about the evolution of the advice business over the last half century, it's what I call the 50-year arc from Gordon Gekko to Brene Brown.

And so this was a brokerage business.

We sold product.

We sold securities.

It wasn't that long ago that capital markets access was hard, if not impossible, for regular individuals.

We take for granted sort of direct brokerage and things like that.

So financial advice was really a brokerage business for many decades, and it's evolved significantly to the point now where we're not only building financial plans for people, advisors, coaches, and guides, we are having deep conversations about the meaning of life and where money fits into that.

And so the framework that we've come up with at Shaping Wealth to capture that is that the modern advisor wears two hats, the mechanic and the guide, the expert and the coach.

I'd want to stress that they're both incredibly important.

I just think one's less understood than the other.

Oh, congratulations.

And you're right, as a history nerd, you got to share with the folks the story of Lydia and the name, because I think that's what stuck out to me the first time I heard you tell that story.

Yeah, you and I are both history buffs.

This is more world history than U.S. constitutional history, so we're expanding your horizons.

The very first coin, the very first hard money that humanity ever used was discovered in modern-day Turkey, what, 2,700 years ago was the Empire of Lydia.

So the very first coin that we know was the Lydian coin.

If you Google it or look on perplexity, it's a really neat looking metallic coin with a lion emblazed on it.

So Lydia, yes, it's a pretty name, but it's also a shout out to the human journey with money.

which as we know is emotionally fraught, exciting, and a lot is involved with it, so yeah, Lydia's our shout out to the human journey with money.

I love it, and I'm gonna key in on that word you said, journey, because one of the things that stood out to me, one of the first times I ever heard you speak, this notion of there's the mechanic and the guide, right? There's these two forces as an advisor.

And the guide is the part that stood out to me is where you can really add value.

So let's lean into that a little bit more.

Tell us a little bit about that framework that you've created.

We can go a little bit down that path.

Yeah, happy to.

When we think about the evolution of the advice business over the last half century, it's what I call the 50-year arc from Gordon Gekko to Brene Brown.

And so this was a brokerage business.

We sold product.

We sold securities.

It wasn't that long ago that capital markets access was hard, if not impossible, for regular individuals.

We take for granted sort of direct brokerage and things like that.

So financial advice was really a brokerage business for many decades, and it's evolved significantly to the point now where we're not only building financial plans for people, advisors, coaches, and guides, we are having deep conversations about the meaning of life and where money fits into that.

And so the framework that we've come up with at Shaping Wealth to capture that is that the modern advisor wears two hats, the mechanic and the guide, the expert and the coach.

I'd want to stress that they're both incredibly important.

I just think one's less understood than the other.