Manage the Stress-related Financial Risks of Your Clients


Are your clients worriers?? If they are close to retirement, the answer is yes. And even if they are 15-20 years away from retirement, the answer is still yes. The difficult part of your job is to determine the extent of your clients worries and how it might affect their investment decisions.

A recent Gallup poll shows 59% of respondents were very or moderately worried about having enough money for retirement. ?A notable 70% of persons aged 30-49 are worried and even 50% of young adults aged 18-29 are concerned.

Advisors are worried too!? According to a Jefferson National Retirement Income Survey, 83% of advisors dont believe that the typical client has accumulated enough assets to live on using the safe withdrawal rate of 2.8%.

Objectively understanding how each of your clients will react and behave under stress or when worried will be the key to keeping them on track and committed to the agreed upon retirement plan.

Related: Learn how to Protect Clients from Themselves

Increasing costs of health care, food, transportation, and insurance can cause the golden years to seem a bit tarnished.? The thought of running out of money, being dependent on a volatile stock market and/or just being on a budget or fixed income can seem like a constraint and add stress.

How does each of your clients operate under stress?? One may want to spend more even though they know they are on a fixed budget.? Another client may want to take unnecessary market risks to make up for the shortfall.? Yet another client may be so safety conscious that they fail to make any decision and habitually second-guess your recommendations.

It is critical for advisors to go beyond the numbers and understand their clients at deeper levels.? Make the decision to become a behaviorally smart advisor. Adopt an objective system for uncovering behavior to help your clients manage their emotions to stay on track for a successful retirement.

Save your clients and yourself from stress

Peggy Mengel

Peggy Mengel

Peggy Mengel - Business Coach - The Biz Sherpa

As CEO and founder of The Biz Sherpa, I coach and consult with executives on developing deep and strong relationships with clients, staff and most importantly, themselves. When you align your talents, passions and strengths with a strategy that fits your uniqueness, you will transform yourself, your client experience and your business.

Throughout my career, one my driving principles is to understand people before numbers. It is this philosophy that ignites my desire to help financial services firms meet the challenge of driving results through a behaviorally based strategy.

How can your firm balance the demands of effectively managing people and maximizing profits? Start building business from the "inside-out" with a coach who understands your industry and your challenges.

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