The next six months will be “topsy-turvy” for advisors and their clients, which “screams opportunity” for the advisors, according to Michael Kim, executive vice president and chief client officer at AssetMark., a turnkey asset management platform based in Concord, Calif., that provides technology and wealth management services for 8,400 advisors.

“This is the best time of year for advisors to engage with their clients,” Kim said in an interview today. ”With the uncertainties of the election and Covid-19 still in the air and the end of the year coming up with its planning and tax implications, [it is a prime time] for advisors to make sure they smooth out the bumps for clients. Advisors need to educate clients about what the uncertainties mean to their portfolios.”

Many clients are still sitting on too much cash, much of which was withdrawn from the market in the spring when clients were decreasing risk. Advisors need to discourage clients who are tempted to wait on the investing that reinvesting is in their best interest by demonstrating to them the long-term cost of pulling money out of the market and educating them to how much upside they will likely miss if they wait until it is ‘safe’ to get back in, he said.

At the same time, the clients who are near or in retirement have to compensate for the current extremely low interest rates that are dragging down their fixed income investments, he said.

Educating the client to the year-end planning that is needed, to the tax implications of a Biden administration, and to the need to navigate the uncertainties ahead should be a top priority for advisors, Kim said.

“Equities are still the best source of returns over the long-term. Helping their clients stay invested or re-invest builds a bond between the client and advisor,” he added. “Financial advisors should be looking at current asset allocations to see if any rebalancing is needed and to see if any tax loss harvesting or other strategies are advisable.” The current uncertainty and upcoming tax implications of the election will mean different things for the client who is a business owner and the individual, he said.

“AssetMark recently surveyed 2,100 investors and more than half said they want more education” about the markets, the economy and their portfolios, Kim said. “That tells us education should be a top priority for advisors.”

In the next two months, Kim said advisors should set several priorities. They need to do what they can to keep investors focused on the long-term amid a contested election, rising COVID numbers and overall volatility.

They should schedule meetings with their clients’ CPAs and legal experts to explore the tax and estate planning implications of a Biden Administration for small businesses, business owners and high net worth individuals while factoring in the effects of another stimulus package.

Advisors should “reconsider the 60/40 stock/bond portfolio allocation that had been an investment strategy mainstay for decades, but is now delivering diminished returns, and look at ways to provide diversification, risk adjustment and new sources of income,” Kim said.

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