For the latest Advisors’ Advice, ThinkAdvisor asked advisors to tell us what they do to get their clients to not check their 401(k) balances during a bear market.
Several of them stressed the importance of communicating with clients and reminding them that sticking with a long-term financial plan makes a lot more sense than letting their emotions lead them to make decisions they will likely regret later when the market inevitably improves.
One advisor said he points out to clients that the market is either going to keep doing what it has always done (go up and down, but more up than down) or it will go to zero. And, if it goes to zero, they will have bigger concerns than their retirement plans.
Check out advisors’ responses in the gallery above.