12 Money Topics You Need to Discuss During a Volatile Market

Advisors can discuss these 12 topics with clients during market volatility.

Periods of Market volatility can be burdensome for customers. Savvy financial advisors know, however, that volatile market conditions present an opportunity to connect with clients and demonstrate value. Here are 12 topics Vanguard says advisors can discuss with clients during volatile times.

If you are looking to grow your financial advisory business, check out SmartAsset’s SmartAdvisor platform. We match Certified Financial Advisors with suitable clients across the United States12 Topics Advisors Can Discuss With Their Clients During Market Volatility

Many advisors recommend that clients stay the course when the markets are upside down. But Vanguard Notes that “staying the course does not necessarily mean standing still”.

Volatility provides an opportunity to discuss portfolio assumptions and clean up clients’ financial plans. “These conversations can help your clients take advantage of market disruption windows for potential long-term benefit,” says Vanguard.

These conversation starters also let clients know their advisor is thinking of them, help prevent emotional reactions to market upheavals, and present opportunities for planning.

Here are Vanguard’s 12 conversation starters to have with clients during market volatility:

  1. Discuss rebalancing.

  2. Examine clients’ risk tolerance and whether it has changed while the markets are in turmoil.

  3. Analyze the advantages of active assets over passive assets.

  4. Review high-cost versus low-cost assets and discuss opportunities to trade.

  5. Trade concentrated equity positions and consider opportunities to dilute them when stock prices are lower.

  6. Review the tax efficiency of funds and consider replacements where warranted.

  7. Take stock of accounts, including tax-advantaged versus taxable accounts, and consider strategies to improve asset tracking.

  8. Talk about the benefits of a Roth Conversion.

  9. Update spending plans retirement.

  10. Discuss the order of retirement withdrawals from taxable and tax-advantaged accounts.

  11. Review expense rates.

  12. Explore methods to maintain a sufficient liquidity buffer.

Broadly, these topics fall under the categories of “asset allocation“, “tax efficiency” and “retirement strategies”. But how you start your conversations — and which of these questions you address — will vary from client to client.

Clients crave communication with advisors during market volatility

Advisors can discuss these 12 topics with clients during market volatility.

Advisors can discuss these 12 topics with clients during market volatility.

Increased market volatility often intensifies client and advisor stress. But these market events can have a positive side: they can increase request for financial advice.

The desire for more financial advice tends to increase among investors after periods of heightened volatility, according to Cerulli Associates Research.

The study analyzed three notable increases in volatility as measured by the CBOE Volatility Index (VIX) over the past decade. Several investor groups have seen a slight increase in net demand for advice over the year after each spike in volatility.

For financial advisors, this trend can present an opportunity to demonstrate value to potential clients and strengthen ties with existing clients.

How customer communications changed in 2022

Sound client communication strategies are an essential part of a consulting practice. This is especially true during times of market uncertainty.

According to a 2022 SmartAsset surveyapproximately one in three advisors report an increase in the frequency of communications with clients in 2022 compared to the corresponding period in 2021.

In fact, about 42% of advisors report being in contact with their clients every quarter, according to a survey of about 230 financial advisors. About 32% and 11% of advisors report checking in monthly and weekly, respectively.

Additionally, financial advisors have shifted to more virtual communications, including video calls, text messaging, and email.

Tips for growing your financial advisory business

  • Let us be your organic growth partner. If you are looking to grow your financial advisory business, check out SmartAsset’s SmartAdvisor platform. We match Certified Financial Advisors with suitable clients across the United States

  • Expand your radius. Smart Assets recent survey shows that many advisors expect to continue meeting with clients remotely after COVID-19. Consider broadening your search and working with investors who are more comfortable hosting virtual meetings or spacing out in-person meetings.

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Jessica C. Bell