Psychophysiological Finance and Intelligent Wellness: A New Financial Planning Practice Model

Abstract

The Certified Financial Planner Board of Standards, Inc. requires CFP® professionals to identify and respond to a client's attitudes, behaviors, and situations that impact decision-making, the client-planner relationship, and a client’s financial well-being. This practice requirement acknowledges the importance of identifying and analyzing psychological reactions, physiological responses, and financial triggers, which interact to influence client intentions, actions, and outcomes. The paper provides an overview of the way financial stressors and acute and chronic stress can impact the well-being of clients. Building on this background, the paper describes a vision for a new advice-delivery model based on the emerging fields of psychophysiological finance and intelligent wellness. The practice model described in this paper shows how advances in mobile health, psychophysiology, and psychology can be blended with a traditional financial planning practice approach to provide clients with comprehensive advice and guidance, attempting to reduce the effects of stress and improve client well-being.