Election Day has finally arrived, and investors are nervous. Regardless of political affiliation, nearly 70% of adults report feeling stressed by the 2020 election1 and 84% feel the election will impact their investments.2
How can financial advisors help clients stay on track toward their goals, despite the uncertainties surrounding one of the most contentious elections in history? Here are three suggestions:
1. Actively listen. Investors want an advisor they can trust, and an effective way to build trust is to be a good listener. Conscious listening forges deeper relationships and can help you understand why a client is truly worried about the election. It’s also essential for client retention, as the failure to understand a client’s goals and concerns is cited as a top reason for switching advisors. 3
2. Reassure. Clients pay advisory fees for personalized advice and guidance that gives them peace of mind. Now is the time to remind clients they have a financial plan in place based on their objectives and risk tolerance that considers the impact of potential market downturns. Let them know that the market has experienced increases under each political party. So, time in the market is what works, not timing the market.
3. Provide thought leadership. Uncertainty creates an opportunity to demonstrate your expertise and commitment to client goals. Advisors who are consistently producing informative and useful blogs and social media posts provide added value by giving their clients a greater sense of participation and control.
Finally, remember that every vote counts! So please be safe, but vote!