Let’s assume your clients are healthy. Ditto their family. They are waiting for the pandemic to end and life to return to normal. Not so fast. They picked up some good habits. Let’s keep them.
1. Their household budget never looked better. When you take vacations, weekend hotel breaks, wedding presents and constant dining out off the table, your client has been spending a lot less. Thanks to your advice, this extra cash has been used to pay down credit card debt. Their balance sheet is looking great.
Going forward: Let’s not go back to having fun = spending money. Ease back into vacations and dining out gradually. Continue debt reduction.
2. The stock market was a place to be, not just visit. At the start of the pandemic, there were plenty of reasons to bail on the stock market. You held their hand. You shared your firm’s guidance on where they should put their money. 2020 saw good returns in the equity markets.
Going forward: Remember the old saying: It’s about time in the markets, not timing the markets. They should be comfortable staying invested, following your advice.
3. Did they catch a cold or the flu in 2020? Probably not. Why? Because they learned about social distancing, wearing masks in crowded places and frequent hand washing. It protected them from not only Covid-19, but from other common seasonal illnesses.
Going forward: Continuing to exercise common sense in personal hygiene should keep them healthier than before the pandemic.
4. There are many ways to keep in touch. How often did your clients videoconference or FaceTime with family members near and far? Not as much as they are doing now. It’s strengthened bonds within families and among friends. Once they were used to seeing people casually, in their silos. Now they are putting work into relationships.
Going forward: Your clients likely have stronger relationships with distant family members. They also have gotten to know local friends on a deeper level. Keep digging.
5. You don’t need to spend money to be having fun. Before the pandemic your clients probably had a burn rate of a couple, maybe a few hundred dollars every weekend. They went out to dinner, to sporting events or the theater. They went to malls and bought things they didn’t need. Why? Because it was their routine. Then their routine changed.
Going forward: There are many different types of clients. Some discovered cooking. Others bought jigsaw puzzles, took up birdwatching or joined a book club. They learned about ways to have fun that didn’t cost a lot. Keep some of these interests alive. Don’t pack them away into the “lockdown box.”
6. The importance of a cash reserve. Some clients didn’t fare as well. They learned why you need a “rainy day fund.” It’s money you can access regardless of what’s happening in the stock market. For years, your clients thought this was boring. When a friend or family member fell on hard times, your clients were silently thankful they had an emergency fund.
Going forward: Some clients learned “jobs for life” weren’t exactly what they thought. Remind them of the scouting motto, “Be prepared.”
Your clients developed some good habits. You were likely responsible for at least a couple.
Bryce Sanders is president of Perceptive Business Solutions Inc. He provides HNW client acquisition training for the financial services industry. His book, Captivating the Wealthy Investor can be found on Amazon.