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Four tips to restore client confidence

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The economic turmoil of the last two years shows signs that it’s finally tapering off. How do you rebuild some of that lost confidence for your clients? David Port offers these suggestions for a fresh start.

  1. Give them guarantees. Products with guarantees to protect income and principal are an advisor’s antidote to that fear. To protect income, consider suggesting single-premium immediate annuities. For principal protection, offer fixed annuities with short surrender periods.
  2. Get them back in growth mode. Scars from the market downturn linger, but for many investors, the equities market beckons. The idea of getting back into the stock market, at least to a modest extent, appeals to many people’s optimistic side and makes good sense from a portfolio-balancing perspective.
  3. Pre-qualify. Ask a few simple questions of prospects in advance of them attending a seminar about their biggest financial concerns or the aspect of their financial situation they most want to improve. This provides the advisor with discussion fodder when appointment-setting time comes around.
  4. Demonstrate diligence. People want assurance that the companies they’re investing with are stable and built to last. To afford them that confidence, advisors suggest narrowing the range of insurance and annuity providers used and going only with the highest-rated carriers.