Client Management Tips

Client Management Tips: What to Do If Your Clients Are Worried About the Election Results

Client Management TipsThis past November, Donald Trump sent shockwaves around the world with his unprecedented victory in the presidential election. Whether you’re red, blue, green, or somewhere in between, you’ve likely given some thought as to what effect the Trump Administration will have on your finances. And as a financial advisor, you’ve likely also had to deal with some of your clients freaking out over the election results. In fact, “election stress disorder,”[1] has even been recognized as a real thing. Here are some client management tips to help you deal with the panicked phone calls, emails, and office visits from your clients:

  • In this time of great uncertainty and anxiety, client relationship management is of utmost importance. It is imperative that you remain calm and be a “hand-holder” for your clients. You’re going to need to do everything you can to help quell your clients’ fears. Be honest and transparent at all times.
  • While you can’t predict the future, you can prep your clients for a variety of outcomes—whether they be good bad, static, volatile, rapid cycling, or somewhere in between. Remind your clients that financial planning is ultimately about the long-term and that this is likely neither the first nor the last potential time of financial upheaval and uncertainty that you will weather with them. Volatility tends to surge around every presidential election season, especially when the political party in power changes. However, the markets tend to go back to normal and the U.S. economy has shown strong resilience to change over time.
  • Now, more than ever, is the time to stress the importance of a balanced, diversified portfolio for your clients. You must emphasize the importance of your clients sticking with this balanced portfolio approach no matter what panicked news they may be hearing from pundits, the news, social media, and their friends and family. If your clients have a portfolio that is currently lopsided and heavy in equities, now would be an opportune time to help them develop a more balanced, diversified portfolio. While it takes an enormous amount of self-discipline to be buying when the masses are frantically selling, you must have resolute willpower and avoid the mistakes so many financial advisors and their clients made during the last bear market.
  • As a general rule, a financial advisor should not discuss his or her personal political beliefs with his or her clients. Not only does this have the potential to alienate clients with opposing political views but also it shifts the topic of conversation away from the client’s needs, which should be the primary goal of the financial advisor-client relationship. However, keep in mind that in some states your party affiliation and voting record may be a public record that your clients can access if they are so inclined. For more information about how to deal with clients who bring up politics, check back soon on the Summit Brokerage Blog for a new blog entitled “Effective Client Management: My Client is Trying to Talk Politics, What Should I Do?”
  • Encourage your clients to also focus on the financial things they can control such as their spending and savings habits. After all, the decisions you make about your spending tend to impact your financial livelihood and future just as much as your investment decisions do.

For more information on Summit Brokerage Services and our independent financial advisors, visit https://www.summitbrokerage.com or call us at (800) 354-5528.

 

About Summit Brokerage Services, Inc.

Summit Brokerage Services is part of Cetera Financial Group. Summit Brokerage provides a broad range of securities brokerage and investment services to primarily individual investors. Summit Brokerage also sells insurance products, predominantly fixed and variable annuities and life insurance through its subsidiary, SBS Insurance Agency of Florida. Summit Brokerage also provides asset management services through its investment advisor, Summit Financial Group, Inc.

About Cetera Financial Group

Cetera Financial Group® (“Cetera”) is a leading network of independent retail broker-dealers empowering the delivery of objective financial planning advice to individuals, families and company retirement plans across the country through trusted financial advisors and financial institutions.  Cetera is the second-largest independent financial advisor network in the nation by number of advisors, as well as a leading provider of retail services to the investment programs of banks and credit unions.

Through its multiple distinct firms, Cetera offers independent and institutions-based advisors the benefits of a large, established broker-dealer and registered investment adviser, while serving advisors and institutions in a way that is customized to their needs and aspirations.  Advisor support resources offered through Cetera include award-winning wealth management and financial planning and advisory platforms, comprehensive broker-dealer and registered investment adviser services, practice management support and innovative technology.  For more information, visit www.ceterafinancialgroup.com.

*”Cetera Financial Group” refers to the network of retail independent broker-dealers encompassing, among others, Cetera Advisors, Cetera Advisor Networks, Cetera Financial Institutions, Cetera Financial Specialists, First Allied Securities, Girard Securities, The Legend Group and Summit Brokerage Services.

 

[1] http://www.forbes.com/sites/judystone/2016/11/03/how-to-survive-the-stress-of-the-coming-election-and-thereafter/ – 10870e803928

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