How to Talk to Clients with Market Jitters

February 22, 2018

Barron’s

While most advisors recognize that volatility can be a good thing, many clients don’t share the same opinion. But calling them with rout advice about how to weather the storm isn’t necessarily the best course of action.

That’s according to several veteran advisors interviewed by Financial Advisor.

“It’s important to always be in front of the conversation about market risk. Don’t just call your clients with a formulaic bullet-point conversation,” David Bach, co-founder and director of investor education at AE Wealth Management, tells the publication. The conversation should be more of a check-in, he says. Let the client talk, he says, while you take notes and listen carefully. Bring the client in for a face-to-face if he or she is really nervous, he tells Financial Advisor.

Another advisor, Rose Price, partner at VLP Financial Advisors in Vienna, Va., says she sent out the firm’s market outlook and commentary to clients during the latest volatility and it was well-received. All the responses centered on whether she saw a buying opportunity for them.

“It took some time … but now we have clients who see volatility as an opportunity instead of the sky falling,’” Price tells the publication.

Another advisor tries to put the ball in the court of a nervous client—asking when he or she thinks the right time to get back into the market would be. This helps the would-be seller recognize the imprudence of selling low merely to buy high later, John Gugle, a financial advisor at Alpha Financial Advisors in Charlotte, N.C., tells Financial Advisor.


This article appeared online on February 22, 2018 at https://www.barrons.com/articles/how-to-talk-to-clients-with-market-jitters-1519326308