December 2021 Issue: Powerful Books with Real-Life Value-Powerful Books with Real-Life Value by Linda Leitz

Powerful Books with Real-Life Value by Linda Leitz

Pdf Summary

The article highlights several books written by authors with doctoral degrees that provide valuable insights for financial professionals and their clients. <br /><br />Daniel Crosby, with a background in psychology, explores behavioral finance in his books "The Laws of Wealth" and "The Behavioral Investor." He emphasizes the importance of rules-based investing and sticking to predetermined principles even when emotions run high. Crosby's work blends academic research with practical application and humor.<br /><br />Ted and Brad Klontz tackle behavioral finance through the lens of money scripts, which are individual perspectives on money shaped by past financial experiences. Their book "Mind Over Money" offers exercises to address unhealthy financial patterns and improve money relationships.<br /><br />Meir Statman's "Finance for Normal People" delves into academic theories and offers common-sense advice. He addresses behavioral finance topics like investor reluctance to realize losses due to regret and the different attitudes of knowledgeable and less knowledgeable investors. Statman also provides strategies for consumers at different income levels.<br /><br />The article suggests three ways to share these books with clients: creating a lending library, giving clients personal copies to mark up and discuss together, or informing clients of book titles and offering to discuss them in future appointments.<br /><br />By reading these books and understanding their content, financial advisors can better educate their clients, refute questionable advice, and reinforce their own professionalism. These books provide a solid foundation based on academic principles while also offering practical insights for financial planning professionals and their clients.

Keywords

books

authors

doctoral degrees

financial professionals

clients

behavioral finance

rules-based investing

money scripts

unhealthy financial patterns

academic theories