Distraction-Proof® Advisor Ideas

When people nervously ask you about market volatility, make sure you maximize the opportunity.

Today we’re talking about volatility again, and thanks for your feedback with last week’s video post about how to talk to clients about volatility.

I had a coaching client ask me this week about speaking to friends or acquaintances about the market volatility that we’re experiencing. He mentioned that he had somebody talk with him in the gym, nervously wanting his guidance about what was happening in the markets.

This is a fantastic opportunity. Here’s how you respond:
“I am hearing a lot from people these days about what’s happening in the market. Not so much from clients, but from friends and family of clients who understandably are nervous about what’s happening. They don’t have a financial plan. They don’t know exactly where they’re heading, and understandably, who wants to experience this?

“My clients have financial plans. We know exactly where we’re heading, so when short-term volatility like this comes along, we’re set for it.

“Who wants to jump on a plane and experience turbulence just for the sake of it? But actually, it’s more tolerable when you’re going to a destination, when you’re visiting friends. Or it’s like swimming: who wants to train for six hours a day, stinking of chlorine in the evening? Oh, yeah, unless you’re training for an Olympic medal.”

By clarifying to people that your clients do have a financial plan in place, and it makes the short-term turbulence way more tolerable, you’re also sowing in that person’s mind, you need to have a financial plan and these are the people I’m talking with (people who are desperately seeking guidance).

Resist the urge to ask that person if they are hearing from their financial advisor. I heard this advice given several months ago, and I disagree with this. If you ask that yes/no question of that person, and say, “So, are you hearing from your financial advisor?” With a quick, “Yes, I am,” because they might not want to get into that discussion, they’ve shut the conversation. Conversation over. So resist that urge.

When you get asked a question about what’s going on in the markets with this turbulence or hear “I suppose you’re busy talking with clients,” just respond like this:

1. Let them know, “Clients are doing fine. It’s actually their friends and family I’m hearing from.”
2. Clarify why: because they’re not hearing from their advisors and they don’t have a plan or understand exactly where they’re tracking toward.
3. Mention, “This is the peace of mind my clients have, and it’s been great sharing with these [other] people and trying to allay their fears about what’s going on in the markets.”

Short-term turbulence is going to be here for a little while, actually. It won’t be so much short-term; we’ll be rolling with this for a little while to come. So clarify that to the person who asked the question. Answer strongly, and leave it at that. Then you’ve kept the conversation open.

I look forward to bringing you another Distraction-Proof Advisor Idea next week.