These are the days when advisors earn their fees.
If you did it perfectly right, you got in front of it this past weekend. You laid out the possibility of an emotional market event to clients and prospects.
More importantly, you reminded investiors following your advice that the madness will pass.
If you are diversified and consistently diligent, you will be just fine. Tell clients that.
The reason people need financial advisors is because they have no interest in worrying about their finances themselves.
As a fiduciary or honest broker, you owe clients reassurance and facts about their personal situation.
If you’ve paid attention to what I’ve been saying on A4A, you handled your most fearful clients already.
You tweeted, blogged, leveraged content and have been in touch and available to clients that needed reassurance.
For the rest of you, stop doing things halfway and reach out to people you know.
The market turmoil is an opportunity.
I hate to be so cynical and self-serving but when I say that this is when advisors earn their fees, I am including selling people right now on what you do.
Yes, it is an uncertain market. But it is always an uncertain market.
While you cannot predict the market’s ups and downs—this bear market right now could be a big one—you can enforce a discipline. You can look for tax-loss selling opportunities, you can ensure people are properly protected with insurance, you can help people understand what they can reasonably expect from financial markets in the future based on the short amount of history recorded in modern times.
Remind people that they will still go to Starbucks, watch TV, and go out to dinner. Jersey Shore will not go off MTV. We will still be urged politely to squeeze the Charmin. The world is not ending and markets are not overpriced. We will all be okay if we keep all of this in perspective.
You are preventing people from reacting emotionally to events and you are keeping the history of finance in mind as you advise individuals.
You are listening to them. You are offering advice based on reliable research.
You are doing the best you can, and that means you have indeed earned your fee.