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Wealth Psychologist

What is 'Wealth Psychologist'

A wealth psychologist is a mental health professional who specializes in issues relating specifically to wealthy individuals. Wealth psychologists are also called money psychologists or wealth counselors. Wealth psychologists help their ultra-rich clients deal with issues such as the guilt they feel about being wealthy, or advise on inheritance issues and counsel parents on how to raise children who are not spoiled by money.

Explaining 'Wealth Psychologist'

Many modern wealthy families built their wealth in one generation. They may not be comfortable with all aspects of being rich, and may have a lot of guilt associated with it. Even for those people who find themselves financially prepared, more are beginning to realize they may not be psychologically or emotionally prepared to cope with wealth. Ample evidence points to the notion that, the more people are prepared in this way, the happier they are throughout their remaining life stages. The younger people are when they begin to work toward full preparation, the more productive their lives.

Wealth Psychology’s Role in Holistic Planning

Financial planning that emphasized the quantitative side of life has given way to a practice intended to broaden the scope and clarity of one’s vision of the future, and the values that drive the commitment to living a full and complete life. Expectations of longer lives, uncertainty over a frail economy, fear of market risk, disillusionment with government and concerns over world chaos are contributing factors to new attitudes about money and happiness.

Preparing Future Generations for Wealth

Wealth psychology is becoming more prominent in legacy planning, preparing family members and future generations for the emotional transfer of wealth. While the precepts for effectively maximizing the transfer of assets are well established within the traditional wealth management community, the guiding principles for preparing family members and future generations for the emotional transfer of values and beliefs are often minimized or ignored. The role of the wealth psychologist is to help families bridge the communication and trust gap for building solidarity of vision and purpose among disparate family members and generations.


Further Reading


The wealthy: A financial psychological profile.
psycnet.apa.org [PDF]
… Mental-health professionals are not immune to negative beliefs about money and wealth … of the financial psychology of wealthier individuals can help the consulting psychologist better serve … A deeper understanding of the wealthy can help consulting psychologists better serve …

What matters to the rich and the poor? Subjective well-being, financial satisfaction, and postmaterialist needs across the world.What matters to the rich and the poor? Subjective well-being, financial satisfaction, and postmaterialist needs across the world.
psycnet.apa.org [PDF]
… Mental-health professionals are not immune to negative beliefs about money and wealth … of the financial psychology of wealthier individuals can help the consulting psychologist better serve … A deeper understanding of the wealthy can help consulting psychologists better serve …

A psychological perspective on economicsA psychological perspective on economics
www.aeaweb.org [PDF]
… Mental-health professionals are not immune to negative beliefs about money and wealth … of the financial psychology of wealthier individuals can help the consulting psychologist better serve … A deeper understanding of the wealthy can help consulting psychologists better serve …

Using psychology theories in archival financial accounting researchUsing psychology theories in archival financial accounting research
papers.ssrn.com [PDF]
… Mental-health professionals are not immune to negative beliefs about money and wealth … of the financial psychology of wealthier individuals can help the consulting psychologist better serve … A deeper understanding of the wealthy can help consulting psychologists better serve …

How financial literacy affects household wealth accumulationHow financial literacy affects household wealth accumulation
www.aeaweb.org [PDF]
… Mental-health professionals are not immune to negative beliefs about money and wealth … of the financial psychology of wealthier individuals can help the consulting psychologist better serve … A deeper understanding of the wealthy can help consulting psychologists better serve …

Decision making in the stock market: Incorporating psychology with financeDecision making in the stock market: Incorporating psychology with finance
papers.ssrn.com [PDF]
… Mental-health professionals are not immune to negative beliefs about money and wealth … of the financial psychology of wealthier individuals can help the consulting psychologist better serve … A deeper understanding of the wealthy can help consulting psychologists better serve …

Some costs of American corporate capitalism: A psychological exploration of value and goal conflictsSome costs of American corporate capitalism: A psychological exploration of value and goal conflicts
www.tandfonline.com [PDF]
… Mental-health professionals are not immune to negative beliefs about money and wealth … of the financial psychology of wealthier individuals can help the consulting psychologist better serve … A deeper understanding of the wealthy can help consulting psychologists better serve …



Q&A About Wealth Psychologist


What is a wealth psychologist?

A wealth psychologist is a mental health professional who specializes in issues relating specifically to wealthy individuals.

What does bounded rationality mean?

Bounded rationality means that people make decisions based on limited information and time constraints.

How can you use insights from psychology , neuroscience , and microeconomics together ?

You can use insights from psychology , neuroscience , and microeconomics together by studying human behavior in order to help you make better predictions about future events .

What is public choice theory ?

Public choice

What are guiding principles for effectively maximizing transfer of assets within traditional community?

Guiding principles for effectively maximizing transfer of assets within traditional community are well established but often minimized or ignored by families when it comes time for emotional transfer.

What role do they play during this process ?

They serve as mediators between generations helping them understand one anothers perspectives while also helping them identify opportunities where they can work together toward common goals."

Who can bridge communication gap between family members when it comes time for emotional transfer?

Wealth psychologists can bridge communication gap between family members when it comes time for emotional transfer.

What is a heuristic?

A heuristic is a mental shortcut that helps us make quick judgments or solve problems more efficiently by using readily accessible examples or rules of thumb. Heuristics are often used when we lack time to think through a problem completely but still want to come up with an answer or solution quickly. They can also be used as a way to simplify complex situations so that they become easier for us to understand them better.

How do institutions influence our behavior ?

Institutions such as governments, corporations, schools, etc., all have an effect on our behavior because they set the rules for how things should be done in society .

Who are some people who have contributed to behavioral economics?

Daniel Kahneman and Amos Tversky are two well known contributors to behavioral economics.

What is the study of behavioral economics?

Behavioral economics studies the effects of psychological, cognitive, emotional, cultural and social factors on decision making.

Why do people act differently than what classical economic theory would predict ?

People don’t always act rationally , which means their actions don’t always match up with what classical economic theory would predict .

How has financial planning changed?

Financial planning that emphasized the quantitative side of life has given way to a practice intended to broaden the scope and clarity of ones vision of the future, and the values that drive commitment to living a full and complete life.

How do emotions affect economic decisions?

Emotions can affect economic decisions in many ways including how we process information and how we weigh certain options against others.

What does the wealth psychologist help their ultra-rich clients deal with?

The wealth psychologist helps their ultra-rich clients deal with issues such as the guilt they feel about being wealthy, or advise on inheritance issues and counsel parents on how to raise children who are not spoiled by money.

Why have expectations changed?

Expectations of longer lives, uncertainty over frail economy, fear of market risk, disillusionment with government and concerns over world chaos are contributing factors to new attitudes about money and happiness.

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