Ric Edelman is founder of Edelman Financial Engines and the host of the radio-broadcast “Ric Edelman Show.” (He and his wife just paid for a private jet to deliver 7,440 N95 surgical masks to New York hospitals.)
Focus on each client’s financial goals; remember that investment strategy is subordinate to that.
It’s easy to say that “this too shall pass” (it will) and that this is a great buying opportunity for long-term investors (it is). But does that really matter for every client?
If a client who’s distressed and sleepless due COVID-19 has enough income and assets to meet their financial needs for their lifetime, why should they subject themselves to the volatility that a 65/35 portfolio is experiencing during this crisis?
It’s paramount that advisors not anchor themselves on prior financial, investment and economic strategies and instead revisit the financial plan they crafted for each client.
Remember: your job is to make sure your client is taking no more risk than is necessary to achieve their goals.
Be willing to accept the fact that you might need to reevaluate each client’s plan, and where necessary, alter the advice you previously provided.
Sticking with old advice merely out of habit, and solely to avoid looking foolish, is not what your clients need from you right now.