Advisors need to communicate clearly to clients, noting that in most cases, the most prudent approach for investors is to simply stay the course when it comes to their retirement portfolios. They should talk to individuals about their goals and how those goals haven’t changed just because of the current crisis. And, remember, that clients are often emotional, worried about more than just their finances.
Some advisors have shown clients their performance over the last year, which they say, shows gains in most cases. When shown they still made money, despite all the doom and gloom, they become less stressed.
Cerulli Associates, for its part, says that when looking at the 2008 financial crisis, advisors who proactively reached out to clients were able to retain clients and even gain new ones.Last modified on Wednesday, 25 March 2020