If there ever were a time for proactive leadership and demonstrating the value you provide, it is now. Your role as a trusted advisor is to help your clients manage through bear and bull markets and keep them on track towards what matters most—achieving their long-term goals! There is no better time than today to have that conversation.

What really crystalized this for me was talking to an advisor who works with us in northern Virginia. A few months ago, she started having extensive conversations about risk with her clients. She reviewed their plans, and if a client was ahead of goal, she discussed dialing back some of the risk in the portfolios. She also educated her clients about the historical inevitability of down markets, and how, in the larger context of most long-term plans, declines may be little more than a brief, necessary pause.

As more than one client told her, “I am so relieved that you are thinking about this.”

We feel this kind of risk discussion with clients is so important that we recently sent 3,000 “Risk Conversation” kits to all the advisors who work with us. In the kits were educational materials, including brochures, charts, even a letter advisors could use to help educate clients and put down markets in perspective. The reaction has been overwhelming. Advisors are grateful for the support and encouragement and more importantly, for making it easier for them to educate clients. 

I was heartened to see how many any advisors sent out special mailings and e-mails of the materials in the package to their clients and started scheduling meetings. As one advisor wrote me, “I think our clients will be much more prepared and less rattled because of your thoughtfulness.”

From rats to investors, stress is a universal response to potentially frightening situations. By staying ahead of down markets with education, perspective and a focus on long-term goals, you can make investing much less stressful and help clients weather whatever markets throw our way.

Alex Potts is the president and CEO of Loring Ward Group Inc. and the SA Funds – Investment Trust family of mutual funds. He has also served as CEO of RNP Advisory Services Inc., a registered investment advisory firm.

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