In times of economic volatility, financial advisors need to be proactive in reaching out to clients. Steep fluctuations in the market can cause clients to question their long-term financial plans. While it may be tempting to respond with market commentary, graphs and charts, your true value as an advisor lies in creating an open dialogue where clients feel heard and understood. This approach both addresses your clients’ immediate concerns and promotes confidence in their overall financial strategy.
By engaging clients in meaningful conversations, you can help them see beyond the market roller coaster and understand how various elements of their financial strategy work together. Validating clients’ emotional responses to volatile markets is key to reinforcing the reason your clients decided to hire you — not to outperform the market but to build a detailed financial plan and structure a personalized investment strategy for them. This holistic perspective reassures clients that they have a comprehensive plan in place, allowing them to navigate uncertainty with greater clarity.
Continuing these conversations over time helps clients maintain a sense of calm during turbulent times. For instance, reviewing insurance policies might reveal gaps in coverage that could be addressed, providing reassurance. Similarly, discussing estate planning can confirm that their wishes will be honored, regardless of market conditions. Tax planning conversations can uncover potential savings or strategies that enhance overall financial health, further instilling confidence.
Moreover, many advisors may overlook these client-centered approaches, leaving a gap in the marketplace. This presents a unique opportunity for those advisors who are willing to step up and provide comprehensive support. Clients may be seeking new advisors who prioritize their well-being beyond mere investment performance. Steve Caruso, associate director of Cerulli Associates’ wealth management practice, shares, “The data we’re seeing right now is that 75% of investors reported that their primary portfolio goal is to be protected from significant losses compared to just 24% of retail investors who want to outperform the market.”1 By actively engaging current clients and prospects alike, advisors can build trust and demonstrate their commitment to helping clients navigate both market fluctuations as well as the broader financial landscape.
Ultimately, building these deeper connections enables clients to feel more grounded and secure in their decisions. When they see their advisor as a partner in all aspects of their financial journey, they are less likely to feel overwhelmed by volatility and more inclined to stay committed to their long-term plans. Now is the time to reach out, listen and explore opportunities together — because in doing so, we not only add value but also strengthen the advisor-client relationship for the long term.
For Investment Professional use only. Not for use with the public.
Sources:
1https://www.wealthmanagement.com/ria-news/how-some-rias-seek-to-buy-the-dip-of-client-attraction-during-market-volatility