Your Clients Need You Now – And You Can Help Them!

Your Clients Need You Now – And You Can Help Them!

It has never been a more important time to be a financial advisor. Your clients are likely fearful and confused, while some are facing dramatic changes to their financial circumstances. They need you now – and you have the tools, training and experience to help.

The economic fallout of the coronavirus is far-reaching and plans that were suitable yesterday may no longer be suitable today. It is time to revisit the suitability of advice at the most fundamental levels.

We must get to know our clients again

Are their goals and priorities still the same, or have they been changed or re-ordered because of what’s going on? Their risk profile requires updating as the risk capacity of many people will be different now, even though their risk tolerance is unlikely to have changed.

We know from previous crashes and booms that risk tolerance, for most people, tends to remain steady. There are more details about that in the story Rely on risk tolerance in uncertain times‘ in this month’s bulletin.

We must help our clients understand their investment experience

Clients will have seen market losses of 30% or more, followed by wild bounces and falls of 5% – 10% a day. Many will be wondering how bad it can get, how long it will last, and some will be questioning whether, or not, they should run to the safety of cash.

Again, we know from previous market patterns that selling in a bust is often the worst choice, as it locks in losses and locks out the hope of recovery. But clients may not know those stories or might need to be reminded of them. As advisors, we have the data – and the skills – to re-anchor and frame their experiences and expectations.

The FinaMetrica Risk and Return Guides are critically important tools to help you in those discussions, as they contain that historic data about crashes and recoveries for the United States, United Kingdom and other major markets. Find out more about how to use them in this month’s newsletter article How to talk your clients through the Corona-crash

We need to give suitable advice

People crave, and need, advice right now. And it has never been more important that the advice be structured around their needs and situation so that it is suitable for them. It is always true that each person is unique, but at times like these the differences between them may be profound. The suitability of advice is both a challenge and a necessity.

As you know, here at PlanPlus we have been early travelers on the road to suitability.

Our SuitabilityPro suite is your trusted partner in these times. The FinaMetrica Profiler gives you the risk assessment tools you need, ProPlanner delivers goals-based financial planning and ProTracker enables the continuous monitoring of suitability. As you may also have heard, PlanPlus is now part of Morningstar, giving you the benefits and comfort of its global reach and strength.

These are challenging times, but you have the power to make a difference to your clients. These are the moments when the true value of good financial planning comes into focus.

I have been using FinaMetrica for over 17 years for onboarding new clients. They like the extensive value of the reports; but what we appreciate is the innovations in technology, the value of the client-facing materials and the development of the life-long client relationships as I get to really know their behavioral tendencies. FinaMetrica has assisted me in building a very successful practice and we highly recommend it for any advisor who wants to enhance the overall value of their client relationships.

Ron Wilkinson - Portland, Oregon, USA
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