Professional Education Program Flashcards
What are the 2 possible issues that a rigid adherence to discovery tools may lead to?
- Insufficient data collected - may not gather sufficient and specific enough information from the client.
- Too focused on quantitative data, not focused enough on qualitative data.
What is choice architecture?
The influence of design of features on human behaviour and the way people process, compare and choose between various options.
What is post-completion error in regards to choice architecture?
Post-completion error occurs when you abandon a task before all steps have been completed.
For example: choice architecture of ATMs was changed so clients have to remove card before cash can be withdrawn.
For financial planning: could fill in all the boxes and assume all information has been collected when there is still information missing.
What is unintended segregation in regards to choice architecture?
When the architecture of your questionnaire deters you from listening for information outside the area you are currently focusing on, leading you to overlook critical information.
For example: when asking questions about retirement, you may overlook answers related to other topics such as estate planning.
What is the behavioural concept of therapeutic alliance?
The nature of the working relationship between any professional and their client, originally developed from the context of a healthcare professional and their patient.
What is the primary goal of a therapeutic alliance?
To ease social discomfort, which will in turn make the client more comfortable and build trust.
What are the 4 strategies to develop a therapeutic alliance?
- Agree on the goals and tasks of the process
- Start from points of comfort
- Focus on qualitative points first, then move to quantitative
- Use your client’s language
What are “ruptures”?
Breakdowns or strains in the financial planning relationship, reflected by non-verbal or verbal cues such as silence or sarcasm.
What is the best way to get past unintended segregation in a discovery meeting?
Use a blank piece of paper to write down pieces of information that the client provides that are valuable but do not fit comfortably in a question or category box of your questionnaire.
What is the theory behind classical economics?
People are rational. The theory is based on assumptions.
What is the theory behind behavioural economics?
People are irrational. The theory is based on research and explains why people make certain choices over others.
When do you conduct a trade-off analysis vs an optimization analysis?
Trade-off analysis - when the client’s resources are inadequate to allow for full adoption of the suggested strategies.
Optimization analysis - if the client’s resources are adequate. Helps ensure that the adoption of suggested strategies will optimize the client’s financial position.
