All right, hi everyone, My name is Brian Morgan and I am a product director here at Orion and welcome to unlocking behavioral finance, a deep dive into Orion's B Fi tools. So before we get started, thank you everyone for joining. As we go through this webinar, feel free to ask, ask us any questions along the way in the chat and, and we're going to go through a PowerPoint presentation. But also mostly, and what I'm excited about is, is really taking you through functionality that exists today that you can use with your clients. So this functionality is going to, you're going to be able to use this through Orion Planning, which is a financial planning tool and a client portal. Orion Planning is great to do comprehensive financial planning. You are able to also do very fast workflow. So if you're looking to have focus conversations or you know, do a complete comprehensive financial plan, Orion Planning is a great tool for that. But we're excited to be here just because of behavioral finance as as you can probably imagine, really is the next wave of financial planning. And our markets are are going to be choppy for probably for a while or they have been at least this first quarter. And these are going to be some great tools. The behavioral finance tools are going to be some great ways for you to connect with your clients, you know, versus just focusing on, you know, how am I doing versus the S&P? It's it's, you know, building a deeper relationship with them, understanding not just their goals, but what they're really looking to accomplish with their money. And Kate's going to walk you through some more of the behavioral finance, you know, aspects to this, really the studies around this. We partner with our chief behavioral officer, Doctor Daniel Crosby. He's a through Orion. So he's really the brains behind these tools and the research behind these tools. But Kate is who I'm going to be turning this over to in a minute here. He's really the person who actually built these tools. He is ACFP, he is a former financial advisor. So he has a great perspective of what it's like to be in your seat, a financial advisor's seat. But he's also then built these tools with our development team. And you know, we're really excited to show these to you. So with that, I'm going to pass it over to Ted Lasso. I mean, I'm sorry, Katie Nazario Acres to take it from take it Over. Thanks, Katie. Thank you, Brian. I appreciate the introduction and I've got a soccer team to coach, so I'm just going to keep it real brief. But I do just want to under score one thing that you said, which I think is really important right now with the markets being sort of choppy and there's a lot of uncertainty, You know, the beefy tools among all of their other values, which I will, which I'll elucidate a little bit more in some of the demos. It's the non market based value add that advisors can can add to their client, to their clients lives and to the the the relationship overall. So without any further ado, let's jump into some of the kind of an irresponsibly short why of BFI. Although I will say before I get into it, I really recommend consuming Doctor Daniel's content because as as Brian mentioned, he really is the brains behind the operation and he's a fantastic public speaker and really helps to to hammer home some of the really important points. So I'll just go through some of the if he is the brains, I don't even know if I want to be the face. Maybe Brian is the face of the operation. But but anyway, I'll go through a couple of the demos for you and I think at least at the end of this you'll have some questions that we can answer further and some things to explore. So really looking forward to it and thanks for being here. And let's get into some of the why and some of the demo. If you're anything like me, then having a strong why is as important or maybe more important than any other part in the learning process or, you know, as big of a of a motivator to take action as really any other any other element that I could point to. And in service of that, I, I did just want to do a quick review of the Y of B5. And this will be a sort of irresponsibly short version. I do it encourage you to get this right from the horse's mouth. And in this case, the horse is Doctor Daniel Crosby, our chief behavioral officer. And of course, being that that's true, I mean horse in the most complimentary of ways. So let's start with a quote from McKenzie. Advisors will gradually shed their role as investment managers and become more like integrated life coaches who advise clients on investments, banking, healthcare protection, taxes, estate and financial well-being needs more broadly. This is important that McKenzie is saying this. This is, you know, a survey that they did actually in 2020. I think this sentiment rings more true now even then it did in 2020, given, you know, the emergence of artificial intelligence. And so I think, you know, as this really sets the tone for kind of the rest of the why. But it's important that it's not just us at Orion saying that this stuff is important and that advisors would be wise to lean into the behavioral approach. Human connection may well be the product when the investment problem is truly, truly solved. Another statistic that I like to share is 64% of financial planning clients report that they have nobody to talk to about their money. That includes their advisor. Now, usually when we present this statistic in a room full of people, I'm slightly entertained by watching the expressions that suddenly overtake the the hitherto neutral faces that were in the crowd. This one is is is pretty arresting. There obviously is some kind of gap in between the value that advisors believe that they're deploying and and how that's how that value is actually landing on their clients. So the tools that we're going to review here, of course, are just really trying to chip away at the potentially negative valence that these statistics would suggest what clients most want in an advisor. 91 of 91% of respondents in this particular survey reported that they wanted someone who simply quote gets them. And getting someone can be a really nebulous process, you know, and in some ways this can take years and years, but really our, our, our goal here is to demystify what that means. And we really think, you know, conversations, deep conversations and the deepening of a relationship is the best way to give clients what we know that they want. We also have a lot of this study comes from Morningstar in 2023, they did an analysis of why investors cite kind of breaking up with their advisors. And I, I'm kind of cheating a little bit. I do like to lump some of these together. Generally, I'll take the quality of the relationship at 21% and I'll lump that with the 9% quality of communication on the bottom right. Even if it was just, you know, those would add up to 30%. But even if you know roughly 1/3 of the instances where advisors and investors break up, I mean, if behavioral finance could address these things, and of course I think the the thesis here is that we believe it can, then then that would be a statistically compelling reason to lean into this stuff. But if I cheat even a little bit more, I would argue that there's even some overlap in the quality of advice and services, you know, the ability to communicate persuasively about the value that you're adding. And you know, I think, I think some people might confuse that for the quality of the financial advice as well. But anyway, let's just stick on the conservative side of things and say that, you know, 30% if we add two of these categories together are potentially preventable breakups. And certainly we'd like to, to help you avoid any kind of unnecessary attrition. One more study I'd like to point to is an assessment by Merrill Lynch and Merrill Lynch really nicely associated a an actual alpha, an actual return and and stated as basis points to advisor behaviors. Now of course the lead here, which I don't want to understate is that everything that advisors do is additive. It's helpful, it's good. And so I'm not making the argument that that advisors should stop doing any of these things. I do want to point out, however, and we've just sort of, you know, colloquially split these into old school and new school. The old school being, you know, think of all that sort of traditional behaviors and tools that advisors deploy, asset allocation, tax management, product allocation, rebalancing. Totally important and absolutely expected that that's going to be a part of the arsenal that an advisor has available to them. But the new school client assessment, behavioral coaching, goal optimization, savings and withdrawal guidance. I just want to point out that the most valuable item on the left hand side of the screen, tax management at 62 basis points of of added value is less valuable then the least valuable item on the right hand side of the new school, which would be client assessment. The idea here is not that the old school is bad and the new school is good or that we should have been in the old school for the new school. It's not. It's not of that it really just is. There's a lot of opportunity and we'd be remiss not to point that out and suggest that advisors are, are, if they're not leaning into the behavioral finance are, are also leaving some value on the table. And certainly we know you don't want to do that. And, and we believe obviously the the tools that we're about to show you can at least assist in those efforts. Starting with the 3D risk profile. We will go through just a really quick product demo just in case you haven't seen this before. My guess is that you have. But really the virtue of this tool is that it's simple. And instead of just focusing on a risk tolerance, we also capture risk capacity and risk composure. I would say composure is really what makes this a behavioral finance tool. So we'll just go through this really quickly. I don't expect anybody to remember what's on the screen. And it's really easy to access this. You know, keep in mind that you can send this out proactively to a prospect or a client in the get to know you phase or in the rediscovery phase. I'm a big fan of that phase. And you know, this is, this is about 21 questions, a little bit longer than a standard risk tolerance questionnaire, but that's because we're actually assessing a lot more than just tolerance. So here I've got the tolerance score and now we're getting into the composure score. So just get a sense of the kinds of questions we're asking. We're asking about stress and worry, calmness under pressure, locus of control and outside events, general emotionality versus relaxed versus being relaxed. And I can generate this report and this 56 value that you see here actually is a weighted average among these three. And it's really interesting to point out any differences or, you know, note, maybe not point them out explicitly to investors, but at least to notice and have a plan of action for folks who have a low composure score relative to their capacity and tolerance scores. Of course, I'll submit this and then I've chosen at least internally in this environment, that 56 means a moderate portfolio. Of course, you can be the author who decides the definitions of you know what it what a 56 will mean for you. And of course what a moderate portfolio will mean for you as well. We also have the the companion PDF outputs. So if you are want to generate a, you know, a deliverable to drop in the document ball, you certainly can do that with the risk profile. So just a 3D risk tolerance questionnaire in review, it tells a much thicker story about risk. I was a former advisor and I don't think I ever saw an assessment that that addressed anything other than risk tolerance. And of course, with the 3D RTQ we get, you know, both capacity and composure in in addition to tolerance, it frames conversations, really helps you frame conversations with your clients around anxiety, adjusted returns rather than just shooting for the moon. Really where we're, we're wanting to take a sustainable route to, to grow investments in such a way that increases the probability of the achievement of those goals and the actualization of the values. And this tool is a, is a helpful aid in driving those conversations and then finally promotes and normalizes deep discovery. I mean, really this, this tool does invite advisors and investors alike to share their thoughts and perspectives and fears. And those are all good, substantive conversations that we believe are very beneficial. And there's that there should be a space for those in in the office as you're having these conversations around financial planning. So really we just want to normalize that process. The next tool to review quickly is Protect Live Dream. And what you're looking at now is I like to think of it as a behavioral balance sheet. We know that people like to tie their money to a meaning, or maybe better said, we know that behavior is a lot more predictable when people have tied their money to a meaning. So this really hinges on the idea of mental accounting, which is that just the propensity for people, all humans, it doesn't matter if you're a CFA or CFP or CPA or just a just a layperson. All people have the tendency to change their behavior based on the way that they've framed something emotionally. And you know, if there's a bunch of famous cases about this with money, for example, rebates and bonuses, people will spend 1 and save the other. There's also interesting data about criminals and they're not wanting to spend their illicit earnings on, on wholesome activities like buying their grandmother a gift, you know, with with illicit earnings. So that it's just, you know, there's not really a rational reason why people do that, but it is emotionally reasonable. And So what this tool does is help advisors and investors get on the same page. And what we can do here is actually customize and create a balance sheet for each client, if you so choose, that better resembles the way that they're actually mentally and emotionally framing their assets. So just to put this in action really quickly, if I wanted to edit this standard language, I could do that. You can choose between 2:00 and 4:00 columns. This headline and all of the text that you see here is customizable. So just to show you what I'm talking about, I'll go from three buckets to four. I'll create a charity bucket. And you know what? I'm going to just copy and paste this text and then I'm going to drag and drop some of these assets and I'll, you know what? I'll take this business and I'll say it's going to charity and even down to the level of the individual holdings. I'll take this Apple stock and move it from protect into charity. Now, the charity bucket has substantial assets and these buckets actually will resize in real time. And I can go ahead and save this. And let's just say that this, you know, is an actual balance sheet of a client who is really thinking about, you know, donating their business to charity or has some plan. Now this balance sheet is way more compelling and I'll just compare it really quickly to a standard balance sheet, which in so many cases just kind of becomes a wall of text and numbers and often is, you know, most used by advisors and least used by investors. And so if you can tell somebody what their long term capital gains are going to be in the year of 2032, that might be a personal victory. But I can promise you it's probably not going to be as persuasive as as this output right here. So the only thing that's required to generate this this behavioral balance sheet or our protect live dream output is just the entry of accounts. So if you go through a little bit of financial discovery, you add some accounts, as long as this is enabled in the firm settings or at the level of the advice advisor or the client, and of course, it can be enabled or disabled at any of those levels, this output will be available to you. This is sort of our, our OG behavioral finance tool. It's been around the longest and, and you know, relies on, on age-old research around, you know, behavioral finance and sort of the economics of, of human behavior. So for Protect Live Dream in Review helps investors and advisors identify and discuss what is rational versus what's emotionally reasonable. There is no right or wrong. Just because something is rational doesn't necessarily mean that it's the most emotionally reasonable or persuasive or compelling or even the right option for them. Allows investors to visualize their balance sheet in a way that mirrors their actual internal framing. And that's really important. And the idea there is that it just would promote, you know, plan fidelity, like sticking to the plan if it, if somebody has a purpose behind their money, we've seen time and time again that they make fewer changes and the changes that they make are less dramatic and less consequential, which is good. That means that the advice that you're giving folks has more time to percolate and actually demonstrate its value. And then of course, you know, such a great, such a great value here is that it's customizable investor by investor. It's also customizable at the firm level and it's customizable at the advisor level. Those are all permissions that you can toggle on or off depending on your firm's preferences. The next tool to review is B Fi 20. Takes about 3 minutes. And again, you can really quickly and easily send this out to investors and someone who's going through the B 520 does not have to answer questions about retirement planning or state planning. So this is a great discovery tool. It's a great tool to engage the non CFO spouse. What what we're doing in the background as I'm going through the assessment is scoring all of these responses against five key categories. And those categories are communication, worry, purpose, use, and importance. And then at the end of the assessment, now this is an individual's assessment, we will generate this report. This is this person's financial persona. Think of this as, you know, their most distinct attitudes and dispositions around money. And we will provide some text, you know, that contains, hey, this is the signature of what it means to have this financial persona. And then across all of those five different categories that I mentioned, you can visualize your clients or of course, they can visualize their own position across these different Spectra. Now, for the investor, this is intrinsically valuable because they've likely not gone through an assessment like this before and didn't quite know if they had a distinct financial persona or if they had strong attitudes and dispositions around money. But of course, we all do. This is just really the the extracting and inspecting of those values and attitudes for you as the advisor. This is valuable because now you know so much more about the client who's taking this. So if you know that they're very high and worry in this case, you know, that would really help you to adapt your style to ask certain kinds of questions and to frame, you know, fear and you know, the loss of money and financial outcomes etcetera, etcetera in a different way. And that can be really helpful in the deepening of the relationship. Now, just from a product perspective, one really cool thing about this is that two people can compare their financial values. So if I just pop in someone's name and e-mail and hit send, they'll receive a request to compare their financial values with Kurt here. And I'll just show you what that looks like really briefly. Now. This is a report that displays the results of two people having gone through the assessment. This text is all new. It actually unpacks the unique intersection of these two people's values. And and then we've got this other indicator that shows up. And so you can actually visualize the alignment or dare I say misalignment. And I don't want to disadvantage any misalignment. It's not necessarily a bad thing. And in service of that idea, we also will will populate some some tips and insights. So what does this person need from you? What do you need from them? If you're different or if you're, if you're not perfectly aligned, you might need different things from each other. And that's really useful for business partners and, you know, adult children and their parents or, you know, love relationships for, for two partners to know about each other. So just a quick review of, you know, our opinion of the real value of BeFi20 helps investors understand their unique relationship to money. We all have a, a unique relationship to money, a, a, a very different background and feelings, so important to understand and start to have those ideas percolating. Allows two people in a financial relationship, some kind of financial relationship. And we discussed some of those use cases to compare their financial values and provides deep insights and ideas. And I, you know, I can't believe I haven't deleted this word from, from this presentation. For some reason, I was so compelled to use the word nutritive and, and I've regretted it ever since. Let's just say provides deep, deep insight and ideas for healthy, productive conversation and discussion around money. The last tool to review is Pulse Check. This is actually our newest tool. It's about a year and change old. I love this tool because I'm kind of obsessed with the idea of intrinsic values versus instrumental values. And money actually is a perfect example of an instrumental value because money would not be valuable if it couldn't offer something more downstream that we valued, like choices or security or, you know, improving the lives of others. So if money couldn't do that for us, it wouldn't be valuable. Therefore, it's an instrument. And what's great about this tool is that it helps to really highlight what people's values are, and there are no right or wrong answers. There's kind of two parts to this exercise. And again, you can send this out proactively and there's of course APDF companion output. But in the first part of this exercise, we really just ask folks to drag and drop these categories in the order of most to least importance. Again, totally subjective, no right or wrong answers. And the reason that we chose these 6 is, you know, when someone looks back at their life retrospectively, they will generally cite these six categories or some derivative of these six categories as having provided either an abundance or dearth of fulfilment. And so these are kind of our six fulfilment categories. Once they've been stack ranked, we just ask folks to rate their current fulfillment. So on a scale of unfulfilled to totally fulfilled, people can rate how fulfilled they are currently in each of the following areas. And then what we'll do is calculate the results and we will surface the category that has the lowest ratio of fulfillment to importance, or in other words, the thing that's the most important but has the lowest relative amount of current fulfillment. And then we will suggest right in the, you know, we just embed it right in the user experience that that might be a good area to set a goal. So let's just say relationships. This is the most important thing to me as an advisor. This is really important because you can help people translate their resources, IE money, into getting them more proximal to their most preciously held values. So let's just come up with a goal. So create, spend, let's say 10,000 annually to see friends and family. Now, that's not the best smart goal that ever was, but it's not terrible. I do need to introduce some savings or budgeting to achieve this goal. So it's it becomes a financial goal. But know that you can also set a non financial goal in a financial planning tool. That's pretty novel, I would say. So I'm going to do a future purchase goal. That means I'll get to actually save and and earmark and invest this money. I think I did say 10,000, inflation 2%. I'll say this is a recurring goal starting the current year every year for the next, let's just say 15 years. And now we're just setting a simple financial goal. Anybody on this call, I promise, could do this in their sleep. Let's choose this enormous CD account to fund this goal. But the idea here is that you can earmark any of these accounts to help fund the goal. We give a quick playback and then I can see that this goal is funded. And so something pretty powerful has just happened. We've identified the areas in a client's life that are the most important to them. And it's just embedded in the experience so you don't have to feel like you're prying. And and then we've translated resources into an action plan that will help this person realize, you know, the the great virtue of achieving more fulfillment in the category of relationships. Fantastic. Now, this is in this case, Kurt has done pretty well. And so this goal is on track, but you can use our what if functionality to save more to this goal, to change the price of the frequency to allocate additional savings and, and that might help you bring an unfunded goal to a funded status. So that is, you know, just a quick product demo of Pulse Check and just to review and summary the value of Pulse Check as far as we see, it helps investors prioritize intrinsic and instrumental values. It frames wealth as a tool to help investors advance toward fulfillment and uses values as a basis for goal setting. Well, Kate, that was an, you know, amazing job. No surprise from the great soccer coach that is Ted last. So I mean from you, Kate, so thank you for taking us through all those tools and, and really the research behind it. And hopefully that really beyond just seeing what the tool is like, hopefully for everyone watching, you have a really great understanding of, of how you can use, you know, these tools with your clients and even prospects. And you know, look, we're still going to be here for a little while. So if you have any more questions, you know, please feel free to add those into the chat. But with that, just want to say thank you for joining and, and if, let's say you do come up with questions afterward, always feel free to reach out. We're here, you know, happy to help. So, so and, and Kate, great job. Thank you. _1744823473330