In times of market volatility, uncertainty reigns—and that uncertainty can cause even the most level-headed clients to question their strategy, their advisor, and their future. But while we can't control the markets, we can control something even more powerful: our communication and our planning.
Now more than ever, advisors must lean into proactive outreach and reinforce the strength of the strategies they’ve put in place. Here’s how.
Control What You Can Control
Markets will go up. Markets will go down. This is not new.
What is in your control is how your clients are positioned for those ups and downs—and how clearly you communicate that positioning.
The key? A diversified income and investment strategy with defined roles.
- Fixed Bucket (Short-Term Needs): This is your client's safe zone. Cash, CDs, fixed annuities, and fixed indexed annuities (FIAs) make up this bucket. These are assets that don't lose value in market downturns or swing wildly with interest rate fluctuations. They're there to draw from when the market is in decline—preserving growth assets and buying time for recovery.
- Equities (Long-Term Growth): Stocks still play a vital role. They're the fuel for long-term growth and the “extra” bucket—used when markets are doing well and rewards can be harvested. But they should never be the go-to for short-term income needs during a downturn.
- Secure Income Stream (Non-Market Dependent): This is what brings peace of mind. Income sources like Social Security, pensions, or annuity payments that keep flowing regardless of market movements or interest rates. This stream is crucial for funding essential expenses—and your clients need to know theirs is protected.
Communication Is Your Superpower
During turbulent times, silence breeds fear. Many clients don’t need major adjustments—they just need reassurance that their plan is still sound and that their advisor isn’t hiding.
Here are a few high-impact ways to stay connected:
- Email Updates: Share market context, portfolio strategy reminders, and a calming tone. Frequency matters less than consistency.
- Short Videos: A 1–2 minute video with your face, your voice, and your message can go a long way. Talk to the camera like you’re speaking directly to them.
- Phone Calls or Robo Callers: Don’t underestimate the power of a phone call, even if it's automated. A pre-recorded message saying, “We are watching the markets. Your portfolio is built for this. You're well-positioned and there's nothing you need to do right now,” can ease a lot of anxiety.
Normalize the Market Cycle
Remind clients: this is normal. Every three years, on average, markets dip about 20%. Every seven years, about 40%. It’s not fun, but it’s not unusual.
They don’t need a crystal ball. They need a calm, experienced advisor reminding them that this is part of the plan.
Bottom Line: Just Communicate
Even if your message is simple — even if it hasn’t changed—say it again. Repetition builds trust. Silence breeds doubt. Your clients aren’t expecting you to predict the future; they just want to know you’re there, paying attention, and managing their plan.
Control what you can. Communicate what matters. And remember, this too shall pass.
