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Grant Hicks, CIM
It’s March 22,
2020, and I am flying home from California, with a plane full of people
wearing masks and rubber gloves. Things are weird and I can see the worry
on people's faces. This article is a collection of thoughts and
conversations I have had with advisors recently. The last thing I want to
share with you is what to do.
You know what to do
You know you need to communicate with clients, sharing leadership and
empathy, no surprise here. My thoughts are not for your clients but for you
the financial advisor and wealth manager going through this challenge. Your
family and friends support you, but do they understand that you take on
your client's fears, concerns, and worries. You can justify it with some
numbers, but it is the client's emotions that are in the back of your mind.
You get the clients who are fine, but you will also get the calls, emails,
and messages from clients who are not fine, are not thinking logically, and
no matter what you say, they will worry. Try not to get frustrated, and
most importantly, take on too much worry. You will have to learn, or
relearn to “let it go”. Remember to exercise, eat healthy, and take care of
yourself, as this is going to be a stressful time.
Who do you talk to?
Financial professionals in 2008 and 2009 were a stressful group. I remember
reading all kinds of articles about burnout by financial advisors. Back
then, as a financial advisor, I reached out to a few financial advisor
friends I knew and it was comforting, but they didn’t help me with
messaging clearly with clients, giving me direction in a time of stress and
helping me refocus when the time is right. I remember reaching out and
listening to any mentors out there and reading their messages. But most
were the same message, ride it out, be patient. I turned to my mentor back
then, who gave me the confidence I needed to get through it. Reach out to
coaches and mentors who you like their message. They can give clarity
around the key tasks to do to get your through this and become a
communication leader in stressful times. This may be the easiest call or
email to send. Who helps you during this difficult time in history?
Timeframes
What does everyone want? They want timeframes. When will
this turn around? When will things return to normal? We all know the
answer, which is, no one knows. Be honest, you and I are hopeful and optimistic
that things will turn around. But instinctive part of your mind says this
is uncomfortable and as much comfort you give others, it’s human to see
empty store shelves and not feel weird. It’s human to sit on a plane and
see the worry in people's faces. A great article entitled “where did all
the toilet paper go” summarizes my thoughts well, read it here. Source: https://iris.xyz/
markets/where-did-all-the-toilet-paper-go/
Statement shock is next
Does your communication protocol deal with statement shock?
You had a good conversation with a client, then you get a call from them
about three weeks after you thought everything was fine. The message reads”
need to discuss my statement”. Because you don’t know every single client
account from the top of your head, the first thing you do is look at their
accounts. Depending on your conversation, you are not sure what their
expectations are? Sound familiar? This is a conversation that will go back
to discussing the clients longer term goals and planning. To quote Nick
Murray
“All successful investing is goals-focused and planning driven. All failed
investing is market focused and current outlook driven”. Without
comprehensive goals-based planning process, what is your competition going
to talk to clients about? Talk about an opportunity? When you get these
statement calls, go back to your goals and plans with your clients, and
start calling prospects!
Don’t sell
I get asked by financial advisors, how can I grow my business during this
time? Some say sell more insurance during the downturn to make up for
revenue. Other financial advisors say go after prospects. This is a unique
time in history. You cannot sell your way through it. Be patient, as hard
as it is right now. Talk to prospects, and send them valuable information,
such as government changes that affect them, which is valuable for everyone
to have. But trust me, there will be plenty of market share after this is
over because investors will use this time as the “great excuse” to find
another goals based financial advisor. There will be plenty of
opportunities. Do you know any lazy financial advisors? How many financial
advisors don’t get goals from their clients, and don’t do comprehensive
written financial plans? Lots.
It’s different than 2008-2009
You know the most dangerous four words are “this time it’s different”. Just
a reminder. I remember vividly in 2008 when people were asking me about the
US Financial institutions collapsing and asking if financial institutions
like Manulife and Royal Bank of Canada were next to collapse. This is my
30th year in the financial services industry and those of us who have
experienced three major downturns know two things for sure: the markets
will return and things will return to normal. To quote financial writer Bob
Veres “I only know one thing: which direction the next 100% movement in the
stock market is going to be.”
Three things for financial professionals to remember
1. Remember to manage your own health, stress, and emotions. Reach out to
someone if you feel you need help!
2. Give your mind as much accurate information as possible, and go back and
review your long term plans and goals.
3. Do what you can control. Deliver your communication protocol or plan
with your team and with confidence during this unique time in history
Be safe, Grant Hicks, CIM grant@ghicks.com President
Advisor Practice Management
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