Markets are in turmoil. And significant downside volatility, inflation’s continued rise, contentious political divisions, war, and eroding savings can make for scary times—especially for those in or nearing retirement who can be hardest hit from these equity shocks. So, what can you do to help clients stay cool amid all the current challenges?
Before your clients panic, reach out to add perspective and provide tools that make them feel more confident and less fearful about staying invested. One way to do this is by helping them avoid making irrational moves. Let them know you are there, monitoring their situations, and implementing necessary (not panicked) measures to ensure they can achieve their goals. Explain that market volatility is part of the journey, and go over the risk mitigation measures you already have in place.
Depending on your clients’ needs or fears, many tools are available to help them navigate these choppy markets.
There are several options to help de-risk portfolios:
All of these involve some cost and can potentially limit upside. They are used to preserve assets, not necessarily grow them, although that can certainly happen.
Look at your client’s portfolio and identify the protection measures you have in place or have previously advised him or her about for just this scenario. Remind your client that you have tools to use just for such a reason, and these downturns are an inevitable part of the market cycle.
Remember, solid relationships are built when you reach out to your clients first, versus waiting for them to reach out to you. Go into the conversation with the tools to help reduce their concerns and reinforce why they chose you to help them realize their retirement visions.
For more information about retirement-planning, please contact our Retirement Strategies Group at RSG@PacificLife.com or (800) 722-2333, ext. 3939. Annuities.PacificLife.com
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