WhealthChat Glossary
A reference guide to key terms in aging, health, cognitive decline, behavioral finance, advisor communication, and the role of AI in financial planning.
Aging, Health & Longevity
- Aging-in-Place
- The ability for older adults to remain in their homes safely and independently...
- Activities of Daily Living (ADLs)
- Basic self-care tasks such as bathing, dressing, eating...
- Instrumental Activities of Daily Living (IADLs)
- More complex tasks needed for independent living...
- Health Shock
- An unexpected medical event or diagnosis...
- Chronic Condition
- A long-lasting medical condition that influences costs and care needs.
- Frailty
- A syndrome involving reduced strength, endurance, and physiological function.
- Functional Impairment
- A decline in physical or cognitive ability that affects daily tasks.
- Caregiving Burden
- Emotional, financial, and physical strain placed on caregivers.
- Caregiving Fatigue
- A state of exhaustion caused by prolonged care responsibilities.
- Housing Transition
- A move to a residence offering more structured support.
- Memory Care Unit
- A specialized facility for individuals with dementia.
- Assisted Living Facility
- A community providing housing, meals, and limited medical oversight.
- Home Health Care
- Medical or supportive care delivered in the home.
- Long-Term Care (LTC)
- Care for those needing assistance with daily tasks or supervision.
- Continuum of Care
- A structured set of services supporting evolving health needs.
- Aging-Related Risk
- Risks that increase with age, including health events and decline.
- Life Expectancy
- Estimated average lifespan influencing planning assumptions.
- Longevity Risk
- The risk of outliving one's financial resources.
- End-of-Life Planning
- Preparing for medical and financial decisions late in life.
- Palliative Care
- Supportive care focused on comfort for serious illness.
Cognitive Decline & Vulnerability
- Cognitive Decline
- A reduction in memory, judgment, and processing ability...
- Mild Cognitive Impairment (MCI)
- Early-stage decline that does not yet impair daily life.
- Dementia
- A condition with significant impairment in memory and reasoning.
- Alzheimer’s Disease
- The most common cause of dementia...
- Executive Functioning
- A set of mental skills for planning, organizing, and problem-solving.
- Financial Vulnerability
- Susceptibility to poor decisions or exploitation.
- Decision Fatigue
- Reduced decision quality due to cognitive overload.
- Scam Susceptibility
- Increased likelihood of falling for fraud.
- Trusted Contact
- A person financial institutions may reach out to if concerns arise.
- Diminished Capacity
- A decline that impairs understanding of financial decisions.
- Behavioral Red Flags
- Signs of emerging cognitive impairment.
- Financial Exploitation
- Unauthorized or improper use of assets.
- Care Planning
- Preparing for future health and care needs.
- Memory Screening
- A brief test to detect early cognitive issues.
- Intervention Protocol
- A structured plan for responding to concerns.
Behavioral Finance & Psychology
- Loss Aversion
- The tendency to feel losses more intensely than gains.
- Availability Bias
- Overweighting recent or vivid events.
- Confirmation Bias
- Seeking information that confirms existing beliefs.
- Anchoring
- Relying excessively on initial values.
- Risk Perception
- Subjective evaluation of financial risks.
- Overconfidence Bias
- Overestimating one's own ability or knowledge.
- Status Quo Bias
- Preferring existing conditions over change.
- Framing Effect
- The effect of presentation on decisions.
- Choice Overload
- Performance decline when faced with too many options.
- Emotional Decision-Making
- Financial decisions driven by psychological states.
- Behavioral Coaching
- Advisor strategies to guide emotional regulation.
- Trust-Building Cues
- Behaviors that strengthen trust and rapport.
- Client Readiness Assessment
- Evaluating preparedness for decision-making.
- Regret Aversion
- Avoiding choices that may cause regret.
- Time Inconsistency
- Short-term preferences conflicting with long-term goals.
Advisor Communication & Practice Management
- Sensitive Conversation
- A discussion involving emotionally charged or personal topics.
- Conversation Protocol
- A structured method for guiding discussions.
- Advisor Burden
- The emotional strain advisors may experience.
- Interpersonal Competence
- The ability to communicate and listen effectively.
- Client Segmentation
- Organizing clients by shared characteristics or needs.
- Client Narrative
- A client’s story about their goals and fears.
- Family Dynamics Assessment
- Evaluating family relationships that shape finances.
- Professional Boundary Management
- Balancing support with objectivity.
- Crisis Communication
- Guiding clients during stressful or unexpected events.
- Decision Support Tool
- A structured resource to guide complex choices.
- Pre-Commitment Strategy
- Helping clients commit to future decisions upfront.
- Client Activation
- Encouraging proactive planning behaviors.
- Documentation Protocol
- A standardized method for recording observations.
- Trusted Contact Workflow
- A process for engaging trusted contacts when risks arise.
- Escalation Path
- Steps advisors follow when serious risk is identified.
AI, Automation & Technology in Advice
- AI-Augmented Advice
- Using AI to enhance advisor communication and planning expertise.
- Expertise-Augmenting Automation
- Automation designed to elevate human expertise.
- Expertise-Replacing Automation
- Automation that substitutes for expert human judgment.
- Conversational AI
- An AI tool like WhealthChat that interacts using natural language.
- Decision Engine
- An AI component that produces structured guidance.
- Behavioral Language Model
- An AI trained to understand emotional cues in conversation.
- Knowledge Base Integration
- Embedding firm-specific materials into an AI’s training layer.
- Communication Analytics
- Technology that evaluates the quality of advisor–client communication.
- LLM (Large Language Model)
- An advanced AI system capable of generating human-like responses.
- Advisor Enablement Platform
- A platform designed to improve advisor performance, communication, and client experience.