I believe in this method of thinking and try to impart it to my clients at a financial level. In fact, it's one of the reasons that the portfolios I design for clients partly contain products and services millions use every day. This point is important, because when you develop your story it's important to find a way to connect it to the client and their account. By linking your experience to their portfolio, they perceive a personal benefit and thus receive added value during a difficult time.
Using Humor
I recently wrote that the debt ceiling talks reminded me of Fred Sanford faking a heart attack. "You hear that, Elizabeth? I'm coming to join ya, honey!" Essentially suggesting that the politicking was all for show and attention. My analogy emerged from extensive research of past debt ceiling talks and government shutdowns. Additionally, I made sure not to violate my three critical rules for using humor with clients:
1) Never joke about clients' children, even if the clients initiate the sarcasm.
2) Never joke about their money, net worth or account balance.
3) Never joke about your ability to manage it.
Using humor with clients can be more of a slippery slope than sharing personal stories because it's hard to know what an individual client thinks is "funny." Times like these are challenging, and many people need a dose of humor, but before exposing yourself to your ultimate critic, think carefully about the timing and the context of the humor you plan to use. Here's a couple of jokes I avoided using because they imply something negative about account balances and my ability to add value during tough times:
"How can you end up with a million dollars in the stock market? Start with two!"
"If you had purchased $1,000 of shares in Delta Air Lines one year ago, you would have $49.00 today. If you purchased $1,000 of shares in AIG, you would have $33.00. If you purchased $1,000 of shares in Lehman Brothers, you would have $0.00 today. But, if you purchased $1,000 worth of beer, drank all the beer and turned in the aluminum cans for recycling, you would have $214.00. Therefore, the best current investment plan is to drink heavily and recycle."
The wrong kind of humor or bad timing can easily backfire. Obviously, advisors don't want clients to think they're not taking a situation like the S&P downgrade seriously. Therefore, I suggest using humor only after providing solid facts and statistics, which you can regurgitate while simultaneously chewing gum and patting your head. By separating research from opinion, you're better positioned to relate a subsequent humorous analogy or comment without being offensive or perceived as not taking things seriously.
This week, I incorporated the two comments at the beginning of this article into my newsletter and blog. Prior to that, however, I sent out two serious and well-researched e-mails. I also conducted several hand-holding phone calls detailing our stance on the market, its historical relevance and our view for the second half of the year. After first calming client fears, I felt comfortable revealing my sense of humor as a means of further easing their concerns in a genuine way. Advisors who use humor first and without ample support run the risk of glossing over client concerns and creating relationship barriers.
Market downturns can be gut-wrenching and time-consuming for advisors, but they can also be a great time to draw your clients closer and allow them to see their planner or advisor as more than just a stuffed shirt. Personal stories and small doses of humor can serve as an ideal means to accomplish this. To do it successfully, though, be sure to create a story that has relevancy to the client, and that the timing and context of the humor is positioned properly.