March 23, 2020

Thought leadership for financial advisors 

It’s March 22, 2020, and I am flying home from California, with a plane full of people wearing masks and rubber gloves. Things are weird and I can see the worry on people's faces. This article is a collection of thoughts and conversations I have had with advisors recently. The last thing I want to share with you is what to do.

You know what to do

You know you need to communicate with clients, sharing leadership and empathy, no surprise here. My thoughts are not for your clients but for you the financial advisor and wealth manager going through this challenge. Your family and friends support you, but do they understand that you take on your client's fears, concerns, and worries. You can justify it with some numbers, but it is the client's emotions that are in the back of your mind. You get the clients who are fine, but you will also get the calls, emails, and messages from clients who are not fine, are not thinking logically, and no matter what you say, they will worry. Try not to get frustrated, and most importantly, take on too much worry. You will have to learn, or relearn to “let it go”. Remember to exercise, eat healthy, and take care of yourself, as this is going to be a stressful time.

Who do you talk to?

Financial professionals in 2008 and 2009 were a stressful group. I remember reading all kinds of articles about burnout by financial advisors. Back then, as a financial advisor, I reached out to a few financial advisor friends I knew and it was comforting, but they didn’t help me with messaging clearly with clients, giving me direction in a time of stress and helping me refocus when the time is right. I remember reaching out and listening to any mentors out there and reading their messages. But most were the same message, ride it out, be patient. I turned to my mentor back then, who gave me the confidence I needed to get through it. Reach out to coaches and mentors who you like their message. They can give clarity around the key tasks to do to get your through this and become a communication leader in stressful times. This may be the easiest call or email to send. Who helps you during this difficult time in history?

Timeframes

What does everyone want? They want timeframes. When will this turn around? When will things return to normal? We all know the answer, which is, no one knows. Be honest, you and I are hopeful and optimistic that things will turn around. But instinctive part of your mind says this is uncomfortable and as much comfort you give others, it’s human to see empty store shelves and not feel weird. It’s human to sit on a plane and see the worry in people's faces. A great article entitled “where did all the toilet paper go” summarizes my thoughts well, read it here. Source: https://iris.xyz/ markets/where-did-all-the-toilet-paper-go/

Statement shock is next

Does your communication protocol deal with statement shock?

You had a good conversation with a client, then you get a call from them about three weeks after you thought everything was fine. The message reads” need to discuss my statement”. Because you don’t know every single client account from the top of your head, the first thing you do is look at their accounts. Depending on your conversation, you are not sure what their expectations are? Sound familiar? This is a conversation that will go back to discussing the clients longer term goals and planning. To quote Nick Murray

“All successful investing is goals-focused and planning driven. All failed investing is market focused and current outlook driven”. Without comprehensive goals-based planning process, what is your competition going to talk to clients about? Talk about an opportunity? When you get these statement calls, go back to your goals and plans with your clients, and start calling prospects!

Don’t sell

I get asked by financial advisors, how can I grow my business during this time? Some say sell more insurance during the downturn to make up for revenue. Other financial advisors say go after prospects. This is a unique time in history. You cannot sell your way through it. Be patient, as hard as it is right now. Talk to prospects, and send them valuable information, such as government changes that affect them, which is valuable for everyone to have. But trust me, there will be plenty of market share after this is over because investors will use this time as the “great excuse” to find another goals based financial advisor. There will be plenty of opportunities. Do you know any lazy financial advisors? How many financial advisors don’t get goals from their clients, and don’t do comprehensive written financial plans? Lots.

It’s different than 2008-2009

You know the most dangerous four words are “this time it’s different”. Just a reminder. I remember vividly in 2008 when people were asking me about the US Financial institutions collapsing and asking if financial institutions like Manulife and Royal Bank of Canada were next to collapse. This is my 30^th year in the financial services industry and those of us who have experienced three major downturns know two things for sure: the markets will return and things will return to normal. To quote financial writer Bob Veres “I only know one thing: which direction the next 100% movement in the stock market is going to be.”

Three things for financial professionals to remember

1. Remember to manage your own health, stress, and emotions. Reach out to someone if you feel you need help!
2. Give your mind as much accurate information as possible, and go back and review your long term plans and goals.
3. Do what you can control. Deliver your communication protocol or plan with your team and with confidence during this unique time in history

Be safe,  Grant Hicks, CIM  grant@ghicks.com President Advisor Practice Management

Enthusiastically yours,

Grant Hicks, CIM, President
Advisor Practice Management
www.advisorpracticemanagement.com

Suite 1625-246 Stewart Green, SW
Calgary, Alberta  T3H 3C8
Cell 403 970 8895
Email grant@ghicks.com   

PS Where do you want to be in 3 years?

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