How much misinformation are your clients exposed to on a daily basis? If your clients listens to Jim Kramer or other talking heads on CNBC, read the USA Today or Wall Street Journal and subscribe to several internet news services they may be exposed to all kinds of inflammatory, exaggerated and even misleading articles about how to invest. It is almost impossible to listen to any media without someone suggesting a new way for them to invest. This doesn’t take into consideration discussions among friends about special ‘deals’ you can buy into using their exclusive finance club or investing in the latest penny stock. It is a challenge, especially in volatile times, to keep clients calm and on the right track.
A case in point was the fiscal cliff at the end of 2012. The media made a strong case that it would be the end of the world or maybe just the stock market and the United States economy if we fell off. You can’t really blame them for wanting to sell their product but we all need to be aware of what they are doing. I personally know several high net worth individuals who called up their advisors, took money out of the market and put it in cash because they were afraid of loosing it. The result…they missed out on the Dow’s biggest gain in more than a year during the first week of January.
Supernova advisors use their monthly 12/4/2 meetings with clients to inform them about what is real and what isn’t. They dial back on the hype. For example, you can quote statistics that prove if you stay the course with a diversified portfolio through good times and bad you will make more money than trying to ‘time’ the market by jumping in and out.
A wealth advisor keeps clients focused on their goals. They do that by putting current events into perspective and reminding them they need to stay the course. You can point out historical statistics and current trends. Talk to them about current affairs, listen to their concerns and fears and assure them that you have their best interests at heart. If you don’t talk to them your competition will.
The Supernova client service model is built around our 12\4\2 client communication process. Our advisors deliver one-of-a-kind service. If you would like to learn more, join our member-only website or sign-up for one of our coaching programs.