Why do investors behave as they do? That is the question posed and answered by the book “Investor Behavior: The Psychology of Financial Planning and Investing,” edited by H. Kent Baker and Victor Ricciardi and published by Wiley Finance.
This 30-chapter book (available from Amazon) covers the major principles of investor psychology and how personality, emotions, financial planning strategies, and the behavioral underpinnings of various trading and investment topics play into how clients make decisions.
Dr. Dave Yeske, CFP® and Elissa Buie, CFP® Managing Director and CEO of Yeske Buie, respectively, were part of the dynamic team of academics and experienced practitioners who contributed to the body of knowledge in “Investor Behavior.” Their contribution, “Policy-Based Financial Planning: Decision Rules for a Changing World,” places Policy-Based Financial Planning squarely within the context of behavioral finance and “choice architecture.” They describe the concept as follows:
“Although the field of behavioral finance helps to provide a deeper understanding of the cognitive biases present when individuals make financial decisions, practitioners need not only understanding but also practical tools. Policy-based financial planning is one such tool, offering a framework and approach that allows practitioners to craft decision rules that can keep clients committed to a consistent course of action in a seemingly chaotic and unpredictable world. . . . These comprehensive yet compact decision rules serve as a touchstone for both client and advisor, providing clear guidance in the face of rapidly changing external circumstances. In their ideal form, financial planning policies are both broad enough to encompass virtually any external change and specific enough to return clear answers as to appropriate action.”
Ms. Buie and Dr. Yeske have been writing and speaking on the topic of Policy-Based Financial Planning since 2006, when their article “Policy-Based Financial Planning Provides Touchstone in a Turbulent World,” was published in The Journal of Financial Planning. The Journal also published their most recent collaboration, “Evidence-Based Financial Planning: To Learn. . . Like a CFP®,” which appeared in the November 2011 issue.
The Yeske Buie Team came together earlier this month for one of our semi-annual staff retreats, this one focused on mindfulness and servant leadership.
Our retreat was held at the 13,000 acre Anvil Ranch, located 36 miles west of Healdsburg in Sonoma County, California. We had a great time exploring the natural beauty of the Ranch while learning the value of breath and mindfulness practices and engaging in several team building exercises, including the construction of two labyrinths. For our opening night dinner, Ranch staff prepared pizza in an outdoor wood-fired oven which we enjoyed while seated in the middle of a vineyard. Our staff also formed two cooking teams which twice took turns preparing a full dinner for each other. All of this ultimately prepared us for an intense and productive session setting Yeske Buie’s firm goals for 2014.
On the afternoon of November 7, we drove back to San Francisco ready to open our doors for the Open House. We were pleased that so many of you were able to join us and enjoy the food, the wine, the fortune teller, and especially the “Live Big” wine glasses!
Below are pictures we took throughout both events.
Firm News & Events
•on October 24th, 2013
P. Kemp Fain Jr.’s son presents the award to Elissa Buie
ORLANDO, FL, Oct. 20, 2013 – The Financial Planning Association (FPA®) awarded the profession’s equivalent of a lifetime achievement award, the P. Kemp Fain Jr. award, to Elissa Buie, CFP®, CEO of Yeske Buie.
“The award recognizes an individual who has made outstanding contributions to the financial planning profession in the areas of service to society, academia, government and professional activities, and upholds FPA’s Core Values: competence, integrity, relationships and stewardship,” according to the FPA announcement.
At the award presentation ceremony in Orlando, Florida, Buie was lauded for her significant role in merging the Institute of Certified Financial Planners (ICFP) and the International Association for Financial Planning (IAFP) to form the Financial Planning Association, of which she is a past-chair. Her contributions as a thought leader to the advancement of the profession through her writing, presenting, and teaching were also highlighted, as were her contributions to society and the profession through her work at the Foundation for Financial Planning.
Buie is currently the chair of the non-profit Foundation for Financial Planning, the only organization solely focused on supporting the delivery of pro bono financial planning advice. Its mission is to help people take control of their financial lives by connecting the financial planning community with people in need.
She has contributed regularly to the profession through her articles and publications. Her article, “To Feel . . . Like a CFP,” was published in July 2000 in The Journal of Financial Planning (JFP). Together with husband and co-owner of Yeske Buie, Dr. Dave Yeske, CFP, they co-authored, “Policy-Based Financial Planning Provides Touchstone in a Turbulent World,” which was published in the July 2006 issue of the JFP. Their most recent collaboration, “Evidence-Based Financial Planning: To Learn . . . Like a CFP,” appeared in the November 2011 issue of the JFP.
Buie contributed 17 chapters to the CFP Board’s “Financial Planning Competency Handbook,” published April 1, 2013 by John Wiley & Sons. She was part of a select writing team that produced this first-of-its-kind comprehensive guide to financial planning. She also co-authored a chapter on Policy-Based Financial Planning that will appear in “Investor Behavior: The Psychology of Financial Planning and Investing,” to be published by Wiley Finance February 10, 2014.
Buie is dedicated to the growth and development of future financial planners. Her work as a Dean of the FPA Residency program has helped hundreds of new advisors learn to better understand the goals and values of their clients and to develop financial planning recommendations that are better matched to those goals and values. She is also a professor in Golden Gate University’s Ageno School of Business, where she co-teaches the capstone Cases in Financial Planning course, where students learn how to develop and present comprehensive financial plans.
The P. Kemp Fain, Jr. Award’s namesake was a notable pioneer in the development of the financial planning profession. Kemp Fain was the first person to enroll in the nascent CFP education program and among the first class of graduates in 1973. He formed the first chapter of the International Association for Financial Planning (IAFP), served as national president and chair of the Institute of Certified Financial Planners (ICFP), and was twice chair of the CFP Board of Standards, the licensing body for CFP Professionals. Kemp wrote a seminal white paper, “One Profession, One Designation,” in which he argued that financial planning’s emergence as a true profession required a commitment to a single mark of competence and ethics, the CFP mark.
Buie earned an MBA from The University of Maryland and a B.S. in Commerce from the University of Virginia. She has been practicing financial planning since 1983 and is CEO of Yeske Buie, a financial planning firm with offices in Vienna, Virginia and San Francisco, California.
The Yeske Buie Team on stage with Elissa, including youngest daughter Alisson (far right)
Ross Richardson’s appreciation in the Journal of Financial Planning
Firm News & Events
•on July 11th, 2013
Early last month, Dave walked the Virginia Wine Country Half Marathon, as did daughter Lauren and a handful of other relatives, including: Jillian, Karen, Melissa, and Tony. All of the group but Dave can be counted as accomplished athletes who would normally run the half marathon. Niece Jillian and her fiance Karen, however, chose to walk the entire course with Dave, noting, “13 miles is a long way to walk alone.” Indeed it is and Dave was very grateful for their company!
The walk begins
Karen being silly
Dave faking it
The finish line beckons!
We made it!
By the end of the race, marathon officials had determined that Dave was the only one of the 2,100 participants who covered the entire 13.1 miles wearing blue jeans. Perhaps a Levi’s endorsement is in the offing . . .
Firm News & Events
•on July 3rd, 2013
Our Client Service Administrator Summar Alaskary and her fiancé Will Briede were married last Friday, June 28th at a beautiful ceremony and reception in Chantilly, VA.
The wedding took place at the picturesque Sunset Crest Manor.
The bride got a moment to herself upstairs before the big reveal.
With family and friends looking on, Summar and Will exchanged their marriage vows.
For the first time, Mr. and Mrs. William Briede.
The lovely decorations in the manor and the scenery in the surrounding areas created many attractive spots for pictures for the wedding party and guests.
Before the reception got underway, the newlyweds had a surprise treat in store.
Congratulations Summar and Will!