How to Keep Clients Investing In Uncertain Times Hot

0.0 (0)
Write Review


For the Risk-Averse Investor
Your clients are probably scared of taking any major risks, and who can blame them? Risk is a natural part of investing, and they can reduce their risk by selecting “safer” investments. However, are these investments the best choices? Sit down with each of your clients and explain to them the risk level of their current asset allocation. Show them the average growth of portfolios at similar, higher and lower risk levels. Typically, investors that take higher risks have higher average gains. Loss will happen, but it doesn’t mean that investing in “safer” options will result in the highest or steadiest portfolio growth.
For the Anxious Participant
Clients and participants experience less anxiety when financial advisors communicate with them regularly. If they know what is going on, investors will likely feel more confident and may contribute more to their retirement accounts, even during uncertain economic times.
For Those Who Don’t Want to Invest Right Now
Many investors’ portfolios took more than a few hits in the last year, but that shouldn’t reduce the amount of contributions that participants make to their 401(k)s or other investment accounts. Of course, they may still sustain losses this year, but those losses are nothing compared to missing out on a financially secure retirement. Skipping even one year of contributions can postpone retirement by a few years.
Due to recent volatility, investors are uncertain of their financial futures. This has left many risk-averse and not wanting to contribute to their retirement accounts. Some see investing now as simply throwing away their hard-earned money. However, by explaining risk and asset allocation, by communicating regularly with clients and by encouraging participants not to miss contributions, financial advisors can keep clients investing in their futures. 

This Website Is For Financial Professionals Only

User reviews and Comments

There are no user reviews/comments for this listing.
Already have an account? or Create an account