Some decisions are largely matters of data and analysis. Yet more often, that analysis informs a decision with trade-offs, such as funding retirement or education. Given that we all work with limited resources, financial data is crucial to inform how each dollar may function in these circumstances… yet the data does not produce the definitive right answer. Which raises questions about the ‘other’ type of data: feelings.
In this 196th episode of Kitces & Carl, Michael Kitces and client communication expert Carl Richards discuss what place feelings have as a point of information, data, and analysis to help reveal what ‘truly’ matters. After all, the reality is that gut feelings, physical sensations, or a lingering sense that something is off often represent subconscious recognition of factors that have not yet been fully articulated. Yet a feeling, on its own, is not the end of the journey. Rather, it is the beginning of an excuse to become curious about what is causing those feelings that may have been overlooked. (For example, if a business opportunity looks good on paper, but the advisor’s ‘gut’ isn’t quite bought in, then that signals an invitation for self-examination.)
The good news is that asking questions about what their ‘gut’ says doesn’t have to be complex. Questions as simple as, “What do you think of that option? How does feel?” with a few follow-up questions is often enough to get the conversation started without feeling ‘over the top’. This is especially important as a client’s goals may not reflect what they ‘really’ want subconsciously, so the advisor may be able to find and follow the thread of intuition with the client.
On the other hand, it’s also important to remember that gut feelings come from everywhere, such as exhaustion, intimidation, and even socialization about what a person ‘should’ want, so a feeling of hesitation may not be related to the decision itself. Yet even these feelings are data in their own right; they’re just signals related to different adjustments that may be needed!
Ultimately, the key point is that drawing the deeper information within feelings often takes considerable time and effort – but it is nonetheless worthwhile. Aligning gut feelings with analytical data is often the key to making decisions that are both fulfilling and sustainable in the long-term. Often, the key to this information comes down to contemplation, time, and well-placed questions… but with practice, this becomes easier both for the advisor (to ask) and the client (to answer), creating positive momentum in their decision-making process!
