Psychology of Financial Planning

Chapter 9Helping Clients Navigate Crisis Events

Financial planners are intimately involved in the most important aspects of their clients' lives. Inevitably, clients will be forced to face crisis events, which we define as “an event that the client experiences as extremely difficult, emotionally troubling, or potentially dangerous.”¹ That makes the role of the financial planner critically important in the lives of their clients as they help them navigate loss (e.g., the death of a loved one), transition from divorce or separation, or cope with natural disasters, diminished capacity, or a host of other expected and unexpected life events. While not therapists, financial planners are in an important position to not only help the client manage the financial aspects of a crisis event, but to be a source of emotional support and help them feel less isolated and alone.

The Financial Planner's Role in Helping a Client Navigate Crisis

In Psychology of Financial Planning we introduced a six‐step model financial planners can use to help a client navigate a crisis event. The model was based on some of the core tenants of the Critical Incident Stress Debriefing (CISD) process.² CISD is not a form of psychotherapy, but rather an approach that helps a client return to normal functioning. As always, if a client is experiencing significant distress and/or having difficulty managing their lives, a referral to a mental health professional is highly recommended. However, it is possible that ...