• Warren Buffett
  • Volvo
  • NASDAQ Composite Index
  • 10 Year Treasury
  • Commercial Banks
  • JPMorgan Chase
  • Emerging Markets
  • Commerce Department
  • Stock Market
  • Home
  • Practice Management
  • Research & Insights
  • Alternatives
  • ETF Managed Portfolios
  • Home>Practice Management>Practice Builder>Uncovering Client Tendencies: Thinking vs Feeling

    Related Content

    1. Videos
    2. Articles
    1. Retail Sales Not as Bumpy as They Look

      Looking past the month-to-month volatility in retail sales reveals a trend of slow, tapering growth, with some hope for improvement in the months ahead.

    2. Swing Factors and Wild Cards in the August Employment Report

      Quirks in auto and education employment, plus recent strength in the consumer sector could impact Friday's jobs report, says Morningstar's Bob Johnson.

    3. Pros and Cons of Retirement Catch-up Strategies

      Morningstar's Christine Benz outlines the advantages and drawbacks of working longer, tapping Social Security early, upping your savings rate, and tilting toward riskier assets to offset retirement-saving shortfalls.

    4. Experts Answer Your Retirement Questions

      Financial planner Mark Balasa and Morningstar's Christine Benz and David Blanchett tackled viewers' most pressing retirement questions, from determining savings rates and income needs to planning for Social Security and maximizing retirement accounts.

    Uncovering Client Tendencies: Thinking vs Feeling

    Determining if a client is more aligned with the Thinking or Feeling preference gives advisors two huge pieces of information about how best to work with them.

    Justin A. Reckers and Robert A. Simon, 08/23/2012

    In our last couple of articles, we began drilling down on the four continua of personality and psychological preferences that underlie the Myers-Briggs Type indicator:

    --Extraversion v. Introversion
    --Sensing v. Intuition
    --Thinking v. Feeling
    --Judging v. Perceiving

    An individual's personality will give us vital guidance to the client's psychological needs, behavioral patterns, and the way in which emotions interact with and interrupt financial decision-making. So far, we have covered the Extroversion vs. Introversion continua and the Sensing vs. Intuition continua. We offered observations of both sides of the continua and uncovered some common biases and barriers that advisors might encounter on the way to economically rational decision-making.

    This month we take on the next leg of the Myers-Briggs Type indicator and discuss the Thinking vs. Feeling preference. As an advisor, this overview will help you 1) recognize which side of the ledger your clients occupy and 2) give some ideas and advice as to how you can best work with them and the specific behavioral and cognitive biases they may bring into their financial decision-making.

    In previous articles, we presented a brief description of the Thinking individual juxtaposed with the Feeling counterpart and gave a ten thousand foot view of their communication styles and tendencies toward certain economically irrational thought processes. Determining if a client is more aligned with the Thinking or Feeling tendency gives advisors two huge pieces of information about how best to work with them. Stated very simplistically:

    1) The Thinking preference is objective in decision-making, placing more weight on facts.

    2) The Feeling counterpart is expected to be more subjective and place more weight on personal concerns.

    Clients are mostly Thinking or Feeling but are likely to still have traits of the other. A Thinking person may make a decision based on his or her need for objectivity but test the decision for success and soundness with a Feeling style of decision-making. So it would not be accurate to pigeonhole individuals into one classification. Although we will discuss them as two separate categories for purposes of contrast, advisors must avoid the misconception that a Thinking person must be overly intelligent and a Feeling person must be overly emotional.

    Justin A. Reckers, CFP, CDFA, AIF is director of financial planning at Pacific Wealth Management www.pacwealth.com and managing director of Pacific Divorce Management, LLC www.pacdivorce.com, in San Diego.

    Robert A. Simon, Ph.D. www.dr-simon.com is a forensic psychologist, trial consultant, expert witness, and alternative dispute resolution specialist based in Del Mar, Calif.

    The author is a freelance contributor to MorningstarAdvisor.com. The views expressed in this article may or may not reflect the views of Morningstar.