How Trust Advisors Can Stay Afloat When Market Turbulence Tries to Drown Them

It goes without saying that inevitable market downturns can rattle even the best of us, or the most resilient of us. That's when investors start racking their brains trying to figure out how to stay afloat and survive the turbulent scenario. Some are wondering if it's even possible to get through the turmoil, let alone come out on top.

So if you feel stressed, the pointers below will help you regroup and weather the “raging storm” and help your clients thrive even under the most turbulent circumstances. That’s when candid conversations can make a world of difference – no matter the circumstances.

Here is your Market Volatility Survival Guide that couldn’t have come at a more appropriate time.

Always be ready for the challenge. I mean…REALLY ready. I can’t stress enough the importance of being well-prepared. Put as much time as you can into reading and listening to everything the analysts are saying. Before you start calling clients, review their portfolios (patiently and thoroughly) and think about what you are going to say. Do whatever you can to alleviate their fears and take good care of them emotionally.

As a trust advisor, you are probably overwhelmed by phone calls and emails from clients expressing their frustration about the “unfolding chaos” and begging you to steer them in the right direction. Why is it important? Simply because our limbic system that generates emotion, comprises a large portion of our brain, turning emotions into directional signals. It is crucial to keep in mind that when emotions are heightened, as in the case of market fluctuations, people may be incapable of making the right decisions.

What makes the situation even more challenging is the fact that experienced advisors have a different, more pragmatic perspective on things. They may not be under the same amount of duress during periods of economic uncertainty. Their composed demeanor may not always resonate with “panicky” clients who may feel like the world is coming to an end.

So what exactly should estate planners do to counteract rising concerns, fears and emotional turmoil so many clients are experiencing in today’s market environment? Preparing a long, inspirational speech may not do the trick. You may be surprised to learn that asking the right questions (a lot of questions) is a great way to uncover solutions. It is essential that advisors prepare questions as diligently as they prepare their recommendations. And if you think you can counteract emotion with logic, think again. The overwhelmed clients may not even hear what you have to say. Best way to proceed? Encourage them to talk and open up and reveal exactly what they feel.

In other words, do not talk them off the ledge – listen to them off the ledge. You may open the proverbial floodgates just by saying: “I want to know how you are feeling right now” or “I want to know what you are thinking.” Resist the urge to counter their responses or blatantly express disagreements about their situation. Leave your ego at the door and show genuine compassion. Their fears are justifiable, and their concerns are completely understandable given what is going on.

By the way, when you encourage a client to open up in a stressful situation, you accomplish three things:

1) Your client will feel heard.

2) Your client may eventually calm down and become more receptive to your suggestions.

3) You will learn even more about a client his or her unique circumstances.

It goes without saying that your relationship with clients is a highly important one. The more you learn about each one of them, the more likely you are to address their specific needs and deliver the results they deserve. Don’t you want the best for them?

Without question, we are living in challenging times. There is so much uncertainty in the market, and so many people are racking their minds trying to figure out how to move forward or how to make the right decision. If you are overwhelmed, you are not alone. That being said, it’s in the challenging times, when the going gets rough, that we are more likely to build trust and form strong bonds with our clients – the bonds that may last for years to come.