THE SUMMARY
This time on the Pulse: Advisor/client communication strategies for troubled times; JPMorgan trading desks succumb to a glitch; and an IRA expert urges advisors to scrutinize the dates for 2019 IRA contributions, now due by July 15.
THE QUOTE
Before we turn to the news, let’s consider the value of avoiding panic — this time with insight from two leaders in their respective fields. We’ll share their ideas shortly.
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THE NEWS
Helping Clients Cope with Crisis When There’s No End in Sight
With a young bear devouring portfolios, financial advisors are getting inundated with calls from worried clients.
Before Covid-19 started dominating deadlines a few weeks ago, most advisor/client conversations were about the coming US presidential election and how much more room the market had to grow after 11 years of expansion. That’s what Wells Fargo market strategist Scott Wren tells the Financial Times.
But now, clients want to know where the “bottom” is, and how bad the coming recession will be, Wren says.
To sharpen advisor communication in these troubled times, wealth-firm consultant Beverly Flaxington shares five important points to consider when reaching out to clients.
Be proactive.
“No news is not good news in times of crisis” because it “stokes fears, and lets clients think you have something
to hide,” Flaxington writes. Instead, “create a communication campaign to let clients know, step-by-step, what you are thinking and doing.
Customize your messaging.
Design client-specific communication plans for those who are vulnerable to Covid-19, very important to your business, or tough to deal with in the best of times. “Allocate time to call certain clients directly and talk through your strategy for their portfolios