A high percentage of your clients are worried or confused about what might happen to their portfolios, their jobs, and their future lifestyles.\u00a0 Even though there is much uncertainty in the economy and the markets, you can provide an important service to your clients that will both lower their anxiety and reduce the likelihood they will fire you if the market should fall further.<\/p>\n
That service is to equip your clients to address worst case scenarios.\u00a0\u00a0 You execute this by raising the WHAT IF scenarios and create contingency plans.\u00a0 These scenarios need to include:<\/p>\n
By raising the WHAT IF\u2019s, you help clients articulate their fears and concerns.\u00a0 This conversation helps address the concerns about their investments and helps the clients identify the specific steps they should be taking now.\u00a0 Their action plan may include cutting back on expenses, creating a bigger emergency fund, or adding more income investments to their portfolio.<\/p>\n
There is another important reason to do this.\u00a0 During the wild ride in October, we conducted a special session on “How to Deal with Panicked Clients and Roller Coaster Markets”.\u00a0 During the session, our guest psychologist explained that the anxiety clients feel will intensify unless the situation resolves or the person takes what they feel is productive action.\u00a0 When people are left to “stew in the juices” of their anxiety, they feel out of control.\u00a0 This will eventually lead to either an explosion (anger at you) or a melt-down.\u00a0 Neither is healthy for the client or for your relationship.<\/p>\n
By helping clients “face the music”, you get them into action.\u00a0 This is healthy for both your clients\u2019 financial health and your relationship with them.\u00a0 By raising these issues and helping your clients develop contingency plans, you also demonstrate that you are someone they can count on in a difficult situation.<\/p>\n