Today, investors need the wisdom and skill of a seasoned human advisor with the intuitive ability to make adjustments on the fly and to guide them through all market environments, functions that robo-solutions have not been able to achieve. Financial technology does not have the ability to have human interaction, and astute advisors can use times of financial turmoil to solidify the relationship they have with their existing clients while building new ones.
Warren Buffett famously said, “Be fearful when others are greedy and greedy when others are fearful.” He was talking about investing, but he could just as easily been referring to financial advisors and their businesses.
Don’t be scared when uncertainty settles in. While making sure all investors have a sound, tailored and goals-based financial plan capable of weathering all seasons should hardly be considered bold, given the outlook of many advisors today, this approach is indeed unique. And by taking this approach, advisors will position themselves for success now and in the future.
Chad Smith is wealth management strategist at HD Vest Financial Services, the Irving, Texas-based financial services firm.