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The human advisor is NEVER going away.
Humans are irrational. Through multiple studies, we see that decision-making by humans is not rational. One example that we look at is how an individual would react to a $7 savings on a pen that costs $15 and then the study looks at how the individual will react on a $7 savings on a suit that costs $450. And the study found that the reaction in each scenario was different, yet the savings was the exact same. This causes a major challenge for individuals when it comes to saving and investing because economic and investment theory is based on a “rational” decision-making process. Thus, individuals need a sounding board and a counterpart to help them stay as rational as possible. That is the core job of a financial advisor.
Our upbringing impacts how we view and make decisions. Despite our situation being different (either better or worse) relative to our upbringing, we have a difficult time adjusting our decision-making process. This leads to us spending too much money or not investing properly based on our current situation and goals. In order for us to ensure we reach our own, unique financial goals and objectives, we need the support of another person to help us see where our upbringing may be holding us back from reaching our goals. And this is, yet another way that the advisor is extremely valuable to the relationship and something that only a human is able to help with.
One way to ensure you are doing this, which Dr. Cash explains in the book, is to create an environment that encourages openness. Throughout the entire book, Dr. Cash shows how he creates an open environment with all of his clients that have a hesitancy to come into his office. All advisors are able to read this book and learn a few new things, but the main takeaway is to ask questions and make the solution a team solution as opposed to having everything be one-sided.
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