8. They worry interest rates will push up the carrying costs of their variable rate debt. This worry makes sense. Banks will pass on interest rate increases immediately. This is a problem if your client has a large home equity line of credit.
Advisors add value: The first step your client should take is to examine how much they owe and who is charging the highest rate of interest. Those are the ones to pay down first. If their debt is going to stay with them for a long time, look at converting it into a fixed rate loan, either through your firm’s banking arm or another bank.
9. They worry their financial advisor will retire or leave the industry. They rely on you for advice. They are worried about the stock market. What happens if you get disillusioned or quit?
Advisors add value: There are several solutions. One is telling your client you are not going anywhere. This is your career. Another is having a team looking after your clients. If you are close to retirement, you should have a succession plan in place. Even if none of these things happened, this person is a client of the firm. They will see someone steps in to provide continuous coverage.
10. They worry Covid is here forever. They think we will see endless mutations and variations. Masks will come back. Overseas travel will remain difficult or become even tougher. They think this is the new normal.
Advisors add value: The U.S. (and the world) has gotten through pandemics before. If there are future strains of Covid, maybe they will be milder. We might have vaccine boosters and be wearing masks in crowded places, but we will adapt and cope.
Client concerns are valid. They are important to them. They should not be ignored or minimized. Often in hindsight, we wonder why we were so upset in the first place. But we need to put the problem behind us first.
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 is available on Amazon.