How would you describe the general feeling among your clients in the run up to the Autumn Budget?
Anxious?
Concerned?
Mildly panicked?
More than two thirds (68%) of financial advisers cited clients wanting to make changes ahead of the Budget as their biggest challenge, according to Rathbones.
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 lead with logic. 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.
Here are 6 steps to help calm anxious clients…
1. Normalise their fears
They want to feel like they’re not alone.
“You’re not the only one asking these questions, I’ve spoken to lots of clients recently who are understandably worried about the impact of the budget…”
2. Listen to understand, not respond.
Let them speak so they can lay it all out on the table.
3. Empathise, empathise, empathise
“With so much speculation in the press, it’s no wonder you’re concerned…”
Now hopefully they feel calmer as you’re more emotionally connected. They now have the mental bandwith to hear some logic.
Then, and only then, can you begin to direct the conversation towards facts and figures.
4. Storms, static and signal
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.”
Other points to make (if relevant):
Signal not static
Not every headline reflects confirmed policy.
The interest of the press isn’t aligned with long term investing.
Mike Legassick, author of The Art of Storytelling, encourages clients to tune out of the storms and speculation – as if they were wearing “noise cancelling headphones”.
Phased in changes.
Reiterate that most Budget announcements are phased in.
Even immediate changes often allow time for a careful and strategic response.
No knee-jerk reactions required.
In summary: 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’d like some support in honing your humans skills, do get in touch. There are a variety of ways we can work together.