What is a Wealth Psychologist?
A wealth psychologist is a person who helps people cope with the emotional aspects of money.
How Does a Wealth Psychologist Work?
Let's say that John and Jane get married. John is a spender and Jane is a saver. Over the years, they fight on and off about money but become increasingly worried about their retirement savings. Though they have accumulated approximately $1 million in savings (largely thanks to Jane's savings habits), the couple disagree about how to spend it in retirement. Also, Jane expects to inherit about $2 million from her mother when she passes and feels guilty about having that much money, but doesn't know whether to give it to charity or put it in a trust for her daughter. John wants to spend the money on a boat and an RV.
The couple realize that their problems aren't as much about which investments to choose as they are about the emotional problems that they have around money. Accordingly, they seek out a wealth psychologist, who helps John understand why Jane needs to save and helps Jane figure out how to feel good about her inheritance.
Why Does a Wealth Psychologist Matter?
Wealth psychologists can help families cope with the financial ramifications of addiction, family-owned businesses, large estates, unfairness among siblings, guilt about success, and estate planning. Often, these issues have more to do with how people feel about money than about which investment or tax decisions to make. Accordingly, wealth psychologists understand both sides of the issue.