“That’s why market timing and pulling out of the market don’t work,” he said in the email. “Especially when it comes to retirement savings: slow and steady wins that race.”
LaVigne said that investor behavior was being driven by a belief the vast majority of respondents (81%) expressed in the study: Market volatility would continue to be the order of the day for the rest of the year.
“That’s why early preparation with the assistance of a financial advisor is so important,” he said in the email. “It is another reason why advisors should focus on helping their clients become smarter investors who make written long-term plans that account for market risks.”
Asked how advisors could or should address their clients’ fears, LaVigne said that working with the client one-on-one to draw up a long-term plan involved them in the planning process, while at the same time educating them about potential risks they may encounter on the path toward financing their retirement.
“Advisors can ease their clients’ immediate fears by proactively communicating with them whenever market volatility rears its ugly head,” he said in the email. “Products like buffered annuities or buffered ETFs can help mitigate risks to retirement savings and provide guarantees the client will be able to depend on during their retirement years.”