Prepare them for the inevitable. Markets will rise and fall, and there will be urges to chase performance. When clients are comfortable with their long-term goals, advisors should discuss at length why clients have these goals.
Wendel said when clients are in the office, this is the advisor’s moment of strength to “pre-commit clients to action” and encourage them to write a letter to their future self, detailing their goals and their investment path.
By educating clients when they are in a solid frame of mind, it’s easier for them to stay the path when markets are shaky.
“When the markets go crazy, hand this letter over to them,” Wendel said. “You’re pulling the strong self from the past. It’s enabling them to be strong.”