The coronavirus wrecking ball has been nothing short of ter- rible, leaving heartbreak, economic ruin and social disruption in itswake on a scale never before seen ina generation, with undoubtably moreto come.
What does this crisis mean for thebusiness of wealth management?
The ancient Chinese used two brushstrokes to write the word “crisis” withone stroke representing danger — andthe other opportunity. This metaphorhas never been more relevant as we sortthrough the aftermath of social distancing, sky-rocketing unemployment, market volatility and economic recessioncaused by this insidious pandemic.
If you ask experienced advisorsabout these types of interesting times,they will tell you that in periods ofmarket volatility and economic recession is when they have experiencedsome of their best growth; they knowthat there is true opportunity in crisis.Their playbook is fairly simple andstraightforward to follow — all it takesis a dose of confidence, perspective andpro-active communications.
WHERE TO BEGIN
Ultimately, what most crises do is createmoney in motion. A big chunk of thismoney comes from two market segments of investors: those looking foradvice from a professional advisor forthe first time, and those who are dissatisfied with the response from theiradvisor and financial services providerduring these chaotic times.
That first segment of “DIYers,” who
have finally experienced a bear mar-
ket after a decade of non-stop upward
market moves, are in shock and many
realize they shouldn’t be going it
alone as society, markets and govern-
ment involvement change dramatically.
Particularly after going through a his-
toric market drop — both in terms of the
velocity and depth of decline — many
are realizing that this market induced
body-blow wakened them to the fact
that they had taken on more risk than
they thought or were comfortable with.
In fact, a recent investor researchproject revealed that one in four investors are working with an advisor for thefirst time as a result of the pandemic.Accordingly, now more than ever, it isthe time for advisors to be pro-activeand visible.
To capture these first-time buyers,
firms can think about a content strategy
to publish timely perspectives on what
investors can be doing to rebalance port-
folios, better align risk with their invest-
ments, as well as the many benefits for
getting a comprehensive financial plan
in place to better position them to meet
their goals and objectives. At this point,
everyone needs an update to their plan
if they have one, and for those without,
never before has financial planning been
The key to this “marketing duringa crisis” approach is not to be too self-promotional, after all, these are times ofreal pain and suffering. Instead investors need a value-added approach: howcan advisors help during these times?
Evelyn Zolen, president of InspiredFinancial and national president of theFPA, said it well: “Planners should thinkof their work as a public service rightnow. That can mean telling existingclients that they are available for anyfriends or family who are struggling.That is a very soft pitch, and it falls onVideo becomes a powerful tool tocreate awareness of how you can help.
By Tim Welsh
Never Let a Good Crisis Go to Waste
During a market crash, there are those who need an advisor for the first
time, and those looking to replace the ones they have.