Rising gasoline prices, higher food costs at the grocery store, and an uncertain stock market – today’s economic climate is full of client fear factors. During this era of uncertainty and turbulence, it is vital that you be proactive to remind your clients of the solid investment decisions you worked out together. This should guide your clients’ thoughts – not the nightly news or finance tickers on their computers.
Sit down with your clients and make sure they have developed a solid investment philosophy, which serves to ensure their money is invested in a risk profile that suits their unique situation. Clients should also have a well-defined investment horizon. Once both have been determined, your clients should not be fearful of the market’s unpredictable twists and turns. It is only when a client does not have a clear understanding of the different investments they’ve made that they allow their emotions to take over, and fear or greed come into play.
All indications show that the economy will continue to face a long and bumpy road. Read my online column in Senior Market Advisor to learn more about guiding your client through these uncertain times.
