Markets, A Decade Later

Be afraid. Be very afraid. Your retirement savings are about to be wiped out.

That’s what your clients are hearing, anyways. It’s difficult to justify a 1% fee when your clients’ portfolios are plummeting along with their faith in you. Even flat-fee advisers are going to find their clients feeling antsy during this tumultuous market. In clients’ minds, they’re paying you to lose their money.

Perhaps you’ve educated your clients about the nature of the market and staying the course when times get rough. But even if you think you’ve done a great job of preparing your clients for market missteps, when they see a negative return how will you show you’re worth your fee?

We’ve written at length about the importance of proving value through personalized financial planning. If you didn’t believe us then, you probably do in 2019.

The thing is, we’ve been here before.

Voyant was launched in 2008, a devastating year for the markets, but a great year for us – a proprietor of financial planning solutions. Why? Because we help advisers illustrate that their value goes beyond a year of low market return.

Here’s how Voyant helped advisers stick it out in 2008 and we’re helping them do the same in 2019.

Using Déjà vu

When we interview advisers for our Professional Spotlight feature, one of the things they almost always mention is our Market Crash simulation. They speak about how when they show their clients their futures are safe during a major market crash, a market correction seems like nothing in comparison.

Although it’s a little late to completely preempt a rocky market, showing your clients how they can survive through even worse times will imbue them with a sense of familiarity. And with familiarity comes calm.

Family Matters

Clients want to hear that their kids are taken care of. Voyant makes it easy to create goals like college tuition and test them through poor markets. Knowing that their safety expands beyond retirement and extends to personal wishes – like their children – will make your clients feel acknowledged and protected from a wholistic perspective.

Are your clients’ children set to attend university during a market storm? Show them you’re sheltering their children’s dreams from the bad weather.

This idea of protected personalization expands beyond clients’ children, of course. We demonstrate how clients’ personal goals are taken care of as well as their needs. It’s one thing to protect their retirement, it’s another to validate their dreams through times of struggle.

Bottom Line

Although a market correction may leave your clients anxious, it’s actually a perfect time to reaffirm your role as a financial adviser to them. Although you can’t make the market bounce back quicker, you can bounce back their confidence in both you and the financial planning process in general.