It feels like our decisions have been made for us over the past two years, so now, people are ready to take decisive action towards their financial goals. As a financial adviser, this is your shot to connect, align and offer real value to your clients.
The hardest, most challenging parts of the pandemic may be behind us, but that doesn’t mean we’ve returned to normal. In its wake, the Covid crisis has left its mark on the economy in the form of a number of issues, including increasing inflation, the prospect of a rising cash rate and an employment market that has irrevocably changed.
Add the pressures of the Russia-Ukraine conflict and an election year, and it’s clear the past few years (and months to come) have been characterised by uncertainty.
For professional financial advisers, this period, as challenging as it has been, has created a unique opportunity. Advisers can add significant value to a client through everything from bespoke investment advice to structural tax strategies, based on a close understanding of their client's needs.
To convey the value of your advice to existing and potential clients, its important to recognise that:
People are craving a clear way forward
There’s a reason why the phrase “uncertain times” landed in Dictionary.com’s list of 8 pandemic terms we never want to hear again. Both personally and professionally, we’ve never collectively lived through a period more volatile and less stable. You’ve shepherded countless clients through difficult decisions and uncertain outcomes over the past two years. Consider contacting them for testimonials or referrals based on your support, which you can use to demonstrate value in helping others move forward from this pivotal period of history
People are empowered to be decisive
After an extended period of having many decisions taken out of their hands, due to lockdowns, forced business closures and vaccination rules, people are ready to take decisive action. Many feel empowered to start moving towards their goals and desires again. This makes it an ideal time to connect with existing clients and potentially reach new clients. Reach out to your database and ask how you can assist or add value as they work through these decisions? An email as simple as “I’m here to help” could procure a dozen or more responses.
People are ready to make a profit
Quality, personalised financial advice can offer clients a greater retirement lifestyle, better cash flow in the immediate term and the peace of mind of avoiding bad investments. As financial advisers, the data is on our side to quantify this value: according to the Russell Investments 2020 Value of an Adviser Report, an adviser charging an advice fee of $3,250 to a client with a $250,000 balance can potentially deliver $13,250 of value. That's $10,000 extra value to the client.
One of the most interesting was the ability an adviser has when it comes to assessing behavioural decisions. Advisers have the ability to help investors avoid behavioural mistakes, the report found, such as chasing profits based on short-term market volatility, or trying to replicate past performance in an environment that has changed.
This is because the key value advisers can provide in periods of uncertainty ranges from the macro (being a trusted source of wider market information and broad strokes trends and updates) to the micro (providing strategic, bespoke advice suited to the individual). Both roles are extremely valuable, and as we return from a period of extreme volatility to a more streamlined period, advisers will continue to demonstrate their value.
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