Murray Coleman recently interviewed Lee Munson on his views regarding behavioral coaching.
“Behavioral coaching is almost a lost art — too many advisors see it as crossing a line between acting like an amateur psychologist and serving as a trusted financial pro,” says Lee Munson, chief investment officer at Portfolio Wealth Advisors in Albuquerque, N.M., which manages $250 million.
Clearly, the industry sees behavior as the biggest threat to an investment plan, but why do many advisors ignore or fear this essential element? Lee Munson has a theory that most advisors were simply stockbrokers that are RIAs (Registered Investment Advisors) in name only. Most want to continue to pick high priced mutual funds and ignore the very reason people seek a world-class financial advisor. But, does holistic planning cross the line of an advisor’s skill set?
“You don’t have to be trained as a psychologist to become a good coach,” says advisor Munson, who considers himself a student of behavioral finance. “You just need a real desire to find out what people truly want to do with their money and how they see it affecting their lives.”