By Stephen Wershing via Iris.xyz
It’s coming. It is a bear market. Not sure when, but it is inevitable. Boost your business by being ready for it.
Advisors who appear on top of a downturn, who have a process for dealing with it, inspire confidence in clients, retain more clients, inspire loyalty, and get more referrals. So how can you be ready?
Have a communication plan. Just like financial planning, right? Have a strategy. Know what you will communicate and when. And the best time to work that out is before anything disruptive happens. Here are a few tips on what to consider when putting together your plan.
Know when to broadcast something. I see an interesting dichotomy across client advisory boards. We have been asking them when their advisor should send an out of cycle communication in response to a market decline. In other words, how far does the market need to fall before your advisor should send a message about it? And we get two different answers.
If your firm is in the practice of sending out regular market updates, even if only in quarterly letters, your clients are likely to see an additional communication as helpful, providing additional insight. If your firm tends not to send out regular updates on the markets, a special bulletin responding to market events may just make them more anxious. The way I have heard it form boards is “If my advisor is moved to reassure me about the market, it must be REALLY bad!”
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