Anxious?
Concerned?
Mildly panicked?
How would you describe the general feeling among your clients in the run up to today’s budget?
According to the Skipton Building Society, 70% of people admit to feeling worried or anxious about what the government will reveal today at 12:30pm.
The research, which surveyed 2,000 UK adults, found 49 % of people speculate that the budget will have a negative impact on their personal finances.
Uncertainty is always present in financial planning.
Whether it’s in anticipation of a Budget, market volatility or changes to tax laws, stressful moments (for clients) can underscore your value.
Not just by providing technical advice but by offering emotional support, guidance and hand holding.
You, as advisers and planners, can play a critical role in helping clients stay grounded.
The trouble is, you’re probably not trained in how to do this.
As such, it can be tempting to try and reassure clients with facts and figures when they ring feeling anxious.
But that’s not what people want to hear when they’re scared.
STEP 1. They want you to understand their fears:
“Tell me more about your concerns….”
STEP 2. They want you to listen.
(Listen to understand, not respond)
STEP 3. They want to know you hear them.
“It sounds like…(relay back what you’ve heard and understood).”
Only then can you begin to offer support.
STEP 4. Normalise how they’re feeling and that they aren’t alone.
“You’re not the only one to be worried about this, I’ve spoken to lots of clients this week who are understandably worried about the impact of the budget…”
STEP 5. Remind them that their financial plans were designed to weather such storms.
“When we put your plan together we knew changes like this would happen, we didn’t know when exactly but we knew there would be movement. Your plan has been designed to weather these storms and moves in the markets.”
And this is where it can be especially helpful to have had the conversation about what their money is FOR.
In a simple example, if your clients are looking to spend more time with their grandchildren in their retirement, is a change in pensions going to radically change that goal?
STEP 6. Then you can start sharing facts and figures.
The order is important.
Connect then direct.
Whether it’s a downturn in the markets or a shift in tax policies, a well-diversified and carefully structured plan will often hold up, provided clients resist the urge to panic.
And as Carl Richards often says: “You stand between the client and them making a big mistake.”
And I say: As long as your human skills are honed.
If you want to ensure your clients love talking to you, consider the Ace your Annual review pack. Designed to reposition the meeting in the client’s mind, show your value and make the most of your time.