Posted on March 13, 2019

Getting Client Calls After A Stock Market Shift? Here’s How To Reassure Them


The stock market is known for its ups and downs, but when a major shift happens, many investors go into panic mode. As a financial advisor, you’ve likely received frantic calls from your clients during these times: Are their investments safe? Do they need to make changes to their portfolios? What does this mean for their financial future?

When worried clients come to you for guidance and reassurance, it’s important to be aware of what they might not understand and assuage their concerns to keep them confident in the services you’re providing. Below, members of Forbes Finance Council share what they tell anxious clients to reassure them following a big stock market move.

Members of Forbes Finance Council share what they tell clients looking for reassurance in times of stock market volatility.

1. Volatility, Corrections And Bears Are Natural Market Processes

Clients should refer to a comprehensive financial plan, anchored to the standard deviation or potential volatility of the agreed-upon portfolio allocation. Clients need help understanding how portfolios expand and contract, yet also assure them that the portfolio volatility (which can be very different than market volatility), should not jeopardize the attainment of long-term financial goals. – Richard RossoClarity Financial LLC

2. Portfolios Are Built To Anticipate, Not React To, Volatility

For years we have coached our clients that portfolios are built in anticipation of volatility, not in reaction to it. On the rare occasion that a client needs some reassurance, we revisit their written Investment Policy Statement with them and show them how many years of their upcoming spending needs are sitting in low-risk investments we call their “stability bucket.” – Erik ChristmanOxford Financial Partners


Read on Forbes