Meet with PWL Capital: https://pages.pwlcapital.com/en-ca/contact-us?utm_source=content&utm_medium=youtube&utm_campaign=rationalreminder_yt Avoid Online Scams https://pwlcapital.com/stay-safe-online/ Ben Felix or any PWL employee will never reach out to you on social media platforms or WhatsApp to give financial advice. These are scammers trying to commit fraud. PWL Risk Profile Tool — https://research-tools.pwlcapital.com/research/risk-profile Ben Felix and Braden Warwick are joined by Dr. Charles Chaffin, a leading voice in financial psychology, to explore why investors so often act against their own best interests—and how better tools and frameworks can help bridge the gap between rational plans and real human behavior. The conversation blends behavioral finance, goal setting, and risk profiling, while also introducing a new evidence-based risk tolerance questionnaire now being made publicly available to listeners. The episode digs into why humans are wired for short-term survival rather than long-term optimization, how biases and environment shape financial decisions, and why coaching—not transactions—is becoming the advisor’s most important role. Charles explains concepts like money scripts, financial flashpoints, identity-based goals, and financial self-efficacy, tying them directly to investing behavior and client outcomes. The discussion also goes deep on financial risk tolerance: what it really is, why people consistently misjudge it, and why psychometric tools outperform traditional questionnaires. Timestamps: 0:00:00 Intro 0:10:21 Describing the role psychology plays in the financial planning process 0:17:54 Identifying some of the tools or techniques for overcoming biases in financial planning 0:24:02 How our environment shapes our financial psychology 0:29:39 Defining financial flashpoints 0:31:15 Other areas where peoples' beliefs about money tend to come from 0:32:55 How beliefs about money affect financial decision making 0:40:00 Identifying money scripts 0:44:39 How and should people should understand their money scripts 0:48:22 How people can recognize and mmitigate bad behaviours 0:54:33 The role identity plays in goal setting 0:59:41 How people can think through setting goals that align with their values and long-term vision 1:05:57 How to know when it's time to quit on a goal 1:09:30 How risk tolerance relates to setting and achieving long-term financial goals 1:11:58 How stable risk tolerance is over time 1:16:33 The differences between psychometric and revealed preference risk questionnaires 1:17:52 How to know which questionnaire is "better" 1:20:02 Where common risk tolerance assessment tools fall short 1:22:40 What the output of the Money and Risk Inventory questionnaire tells us 1:24:40 How the full set of information from the Money and Risk Inventory helps someone make better financial decisions 1:25:46 Charles defines success in his life Links From Today’s Episode: MRI — https://moneyandriskinventory.com/ Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on YouTube — https://www.youtube.com/channel/ Benjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/