Many financial professionals are trying to figure out ways to communicate with consumers about bad news and uncertainty right now.
Woodmen Financial Services Inc. — the broker-dealer arm of Woodmen of the World Life Insurance Society — and the Russo Law Group P.C., and elder law firm, have put out examples of turmoil communications this week.
Here’s a look at how those organizations are reaching out.
Woodmen of the World is an Omaha, Nebraska-based fraternal benefit society that has been protecting members against misfortune since 1890.
Tim Buderus, the broker-dealer’s president, has put a heartfelt letter to members in the annual report cover letter for the society’s variable annuities.
Buderus notes in the letter that the stock market looked much better at the end of 2019 than at the end of 2018.
“Overall, 2019 was a solid year for the market,” Buderus writes. “Recession fears and an unsolved U.S.-China trade war were a cloud for much of last year, but economic data remained sound and globally stocks stayed strong.”
Now, the world faces some headwinds, Buderus acknowledges.
“There are some things you can control and others you cannot,” Buderus writes. “One thing you can control is working with your financial representative to create a portfolio that matches your time horizon, risk tolerance, risk capacity, and your own personal financial goals.
“If you are sensitive to stock market declines, consider reallocating your portfolio to make sure it also includes enough holdings that produce regular income. A balanced strategy with both growth and income will typically have less volatility and lower downside potential.
“With a long-term focus, your WoodmenLife variable annuity should remain a solid part of your investment plan for retirement. Account values change daily, but portfolios built with prudent asset allocation and diversification have a much better chance to withstand the ups and downs of the market.”