by Carl Roberts
Like many advisers over the past month, I have been constantly on the phone with clients reassuring them and guiding them through the current stock market volatility. As most advisers will tell you, great gains can be made but great losses can occur if clients veer off their financial plan.
At the beginning I spent the majority of these phone calls listening to the clients' worries and then explaining to them (using the best words I could find) that their portfolio was built for these types of shocks. Bear markets are the price of huge wealth building returns over the long term.
At the end of each call I felt satisfied that the client was happier and clear again on what we were doing together.
I produced a couple of articles on these testing times and sent these out to all my clients. I feel it's important we constantly keep our clients updated during this difficult period.
But then the news would change, more panic in the markets would ensue and some of the same clients would call back worried again.
So, I decided to change tact.
At RTS Financial Planning, we've used video meeting software from the start, so luckily most of my clients are used to this type of technology. Instead of picking up the phone, I scheduled a video call with each client who was particularly concerned.
READ: Using Voyant & Webinars To Stay Connected With Your Clients
I have discovered a number of really powerful images that put into perspective:
When I began showing these images to clients they ‘got it' straight away.
For example, one client who is approaching retirement felt their entire pension should now be in cash to stop any further losses. They felt they were too close to retirement to suffer any more falls. I explained to them that we had previously agreed that their investment timeframe doesn't stop at retirement. It lasts throughout their retirement, potentially another 30-40 years.
When I then showed them the long term returns from the stock market and how the bear markets made little difference they understood and instantly felt more comfortable.
I really feel the right images have saved me many words trying to explain things.
Carl Roberts is a Managing Director and Chartered Financial Planner at RTS Financial Planning. Read his full profile here.
