Financial advisors can be among the first professionals to know when something's wrong. Whether it's a client with a sudden obsession with market volatility, an unexpected new spending habit or another concerning signal, knowing how to spot warning signs of mental health struggles, and how to connect clients with outside help, is an important way advisors can help protect clients' wealth.
Mental health and financial well-being
Ninety percent of financial decisions are emotional, said Elana Feinsmith, a financial therapist and financial coach at Sunnyvale, California-based Oak Financial Coaching.
Layoffs, falling short on retirement goals and volatile markets can all take a toll on clients' mental health. Nearly 70% of Americans said financial uncertainty has made them feel depressed or anxious, according to a 2025
In situations where clients are experiencing mental health issues, from anxiety to addiction, advisors must navigate the situation mindfully while pointing clients to the appropriate support.
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How to spot potential struggles
Clients typically don't tell a planner directly that they're experiencing a mental health crisis, said Carolyn McClanahan, founder of Jacksonville, Florida-based Life Planning Partners. Instead, advisors should watch for unusual behavior.
For example, if a client is constantly calling,
"I'll talk to clients and ask them, 'Tell me about how often you worry?'" McClanahan said. "It's about learning how to ask open-ended questions that don't put people on defense."
Advisors need to strike a balance between giving advice and creating a safe environment where clients feel comfortable opening up, McClanahan said.
Observing clients during meetings can also help gauge where they are mentally, Feinsmith said. Changes in eye contact, decision-making and spending habits can tell a broader story.
Family dynamics can also be a signal. Advisors and their team members may sometimes find it necessary to reach out to a client's family members, like a son or daughter.
"I've had a number of clients who have had a family member who's in crisis, and a family member in crisis puts the family in crisis," Feinsmith said. "It puts a big strain — especially with parents — deciding what needs to happen."
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Build a strong referral network
Mental health crises may be indicative of bigger problems, including marital issues or
"Approach them and say, 'It seems like you're having an issue. We have a lot of good therapists that our other clients have worked with,'" McClanahan said.
An extra step McClanahan likes to take for struggling clients is to volunteer to reach out to the mental health professional for them.
"Bring that human-to-human [approach] to help them take those initial steps," McClanahan said. "It doesn't take that much time."
For advisors looking to build a referral network of mental health professionals, McClanahan advises asking for recommendations through discussion forums in the National Association of Personal Financial Advisors and the Financial Planning Association.
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When financial therapy is a fit
Some financial advisors are uncomfortable with the "T" word — therapy. But they shouldn't be deterred if a client who is clearly struggling initially resists help, Feinsmith said.
Financial therapy focuses specifically on helping clients work their way through intense emotions tied to money matters.
"I like to tell my clients to think that you are on a sled, and you need the sled dogs to pull you through the snow to a warmer place," Feinsmith said. "You've got to make sure you have the right sled dogs on your team: a financial planner, an accountant, an estate planning attorney and a financial therapist."
When clients address their relationship with money, it can make the planner's job easier, she said.
"They can get clear on what's going on with each of them and with their relationship to create financial intimacy," Feinsmith said. "Once they create that intimacy, it makes it just easier for the planner to come back and say, 'OK, we need to make a decision.' Then, they are much more engaged as clients."
Financial therapists can help clients at different stages of a mental health crisis, from diagnosis through recovery, she added.
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Addiction — of all kinds
Addiction can be particularly damaging to a client's finances, whether it involves gambling, day trading,
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For advisors, the key, McClanahan said, is knowing your clients and making sure they are connected to the right specialist. The consequences of failing to get treatment can be especially severe for professionals like doctors, who may risk losing their licenses.
"If it's a gambling addiction, alcohol or drugs, it's getting people to the specialist in the area that somebody is in. If it's a financial issue, to a financial therapist," Feinsmith said. "We need to be careful and don't want mental health practitioners giving financial advice and telling people how to do their portfolio. It's not our area. There are lines, and ideally, we know to stay in our lanes."
