How to Create a Framework for Navigating Major Financial Decisions, Ep #168

How do you deal with a major financial or life decision? When this happens there can be many choices that you need to make. Without the right decision-making framework, navigating these choices can lead to analysis paralysis.

Allison Berger joins me today to share some of what she has learned while studying for the CFT designation (Certified Financial Transitionist). The coursework for this professional title combines financial planning with cutting-edge research in neurology, sociology, and psychology. With her newfound knowledge, Allison will help us learn how to navigate the technical and personal side of major life decisions. Listen in to learn how to build a framework that can help you navigate major financial decisions.

There are 2 sides to money

As financial advisors, we often help our clients work through significant financial decisions. By offering a decision-making framework, we help our clients look out for opportunities and risks that they could encounter through the decision-making process. Before trying to make major financial decisions it is important to understand the way money affects people.

There are 2 sides to money: the technical aspects that you work with in retirement and tax planning and the personal side which includes relationships, emotions, self-esteem, and your sense of well-being. You may be able to come up with a wonderful technical plan, but if you can’t get on board with the personal side then you may not fully buy into the plan.

For example, you may recognize that a bear market is a great time to buy stocks at a discount. However, it can be hard to make those purchases when you see the markets continuing to drop each day. A financial advisor can help you work through the personal side of your financial plan so that you can make the best decision.

The stages of major financial stages

Major financial changes transition in stages. The first stage is anticipation. The anticipation stage occurs when you know a change is coming soon and try to anticipate what will happen and how it will affect your life.

Next is the passage stage. There are so many decisions to make during this stage that it can be helpful to construct a decision-free zone in your life and take an intentional decision-making time out. Recognize which decisions must be made immediately and which ones you can hold off on for a while.

Before you begin to make life-altering decisions, think about trying new ways of life. By using ‘what if’ planning you can try out different scenarios. Since there are so many decisions to make, what if planning can offer you many possibilities and help you embrace the power of yet. Even though you may not have everything figured out yet, eventually you will.

Check out our FREE resources

Our goal is to enhance your today and enrich your tomorrow. Check out the resources page on our website. In addition to various free ebooks with tips and checklists, you’ll see our newest guidebook with 7 tips on how to handle market volatility.

Listen in to hear Allison share her knowledge so that you can begin to build a framework for navigating major financial decisions.

Outline of This Episode

  • [0:44] What is the CFT designation?
  • [2:32] The two sides of money
  • [8:23] The 4 stages of money
  • [17:50] Questions to ask during transitions
  • [19:29] The progress principle

Resources & People Mentioned

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