How can we show our value as an advisor when “doing nothing” is the answer to our clients’ questions?
Clients, and most people in general, can be blind to the risk they create.
It’s easy to spot the underlying assumption that this is a client’s belief when they call saying frantically:
“Have you seen what the market is doing?! Shouldn’t we do something?!”
Again, you may be tempted to roll your eyes or groan, but that won’t save them. Almost everyone’s normal reaction is to “do something” when we hear the news.
Fact: It’s normal to be emotionally affected. If you’re honest about it, I’m sure there have been times you’ve felt this way as well… I know I have!
So the next time these calls come in and we are tempted to give that same old talk about how timing the market is a bad idea, or we want to point out the obvious fact that buying high and selling low is a bad idea, we have to remember that what they really need is someone to listen to them.
If we just try to throw facts and figures at someone who is making an irrational decision, we know that won’t work. And they’re going to wonder, “what is this advisor actually doing for me?”
They are scared. At times like this, it is normal to be scared.
They want to make an irrational, emotional decision. One they will clearly regret.
That’s where a real advisor comes in. It’s your job to patiently bring them back around to the rational reality that the best, most valuable advice you can ever give them is to do nothing.
In order for them to see the value in “doing nothing,” this 3 step framework has helped me many times:
1- Absorb with empathy.
2- Listen and clearly understand the concern.
3- Refocus the client on what they can control (values, goals, specific investment strategies).
There are 2 things that need to happen so that they make the right decision and realize you’re helping them in a big way:
1- They need to see the value in “doing nothing.” Stories of other clients’ mistakes will help with this.
2- They need to feel empathy from you. If we’re dismissive with their concerns, that can harm the trust we’ve built. They have to know we really care about them and their fears.
-Carl Richards
www.realfinancialadvisors.com
future proofing your finances
advice@townclosefp.co.uk
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