Everything will change after the elections…how many times have we heard that over the past few months? While some take comfort in the fact that there will likely be some changes (hopefully for the positive) after the election, others are panicking. Are you getting more calls from your clients who want to make rash decisions with their investments because they’re worried about what will happen after the election? One of the perks of being an independent advisor is that you not only can act as an advisor to your clients, but you can also be their counselor. This means you can address mindsets and limiting beliefs that lead to poor decision-making and counsel your clients on the dangers of being an emotional investor. Not sure how? Here are some tips on advising clients who are having pre-election panic.
Walk the Walk
The best way to help your clients keep calm during this apocalypse du jour is to keep calm yourself. It’s easy to freak out when life gets chaotic—especially if all your clients are freaking out. This is one of the reasons why you need to adopt healthy boundaries with your clients. You simply cannot let their emotions affect your mindset and steer you in directions you know aren’t beneficial. When you stay calm and understand that this too shall pass, you can be a rock and a role model to those you work with.
Suggest They Avoid the News
If you’ve realized that you are the result of your thoughts as an independent advisor, you already know that watching too much news is the best way to get seriously stressed out. If your clients are having pre-election panic, it’s likely they’re overdosing on media and need to take a step back. Reassure them that their strategy is solid and that checking their stocks every day or watching every piece of election news that comes on only leads to anxiety. Instead, suggest they read a good book, get some exercise, or listen to an entertaining podcast.
Tell Them to Imagine Five Years into the Future
One of my favorite strategies for dealing with uncertain times is to fast forward and ask myself if this will still be an issue in five or ten years. Yes, COVID is changing how we live right now and yes, the election will likely bring about some upheaval. But will it really matter all that much in ten or fifteen years? Remind your clients that there will quite likely be a new apocalypse du jour by that time and the election and virus will be a thing of the past. When you help them see it through this perspective, they can often change their mindset and realize they’re panicking over something insignificant in the grand scheme of things.
Advise Them to Stay the Course
When you first helped your clients get their financial houses in order, you created a strategy for them. This strategy was meant to stand the test of time no matter what spikes or dips the market went through. Now is the time to remind your clients that you prepared for circumstances just like this and that making rash decisions based on emotion will destroy all the hard work and planning you’ve done together.
If you have clients suffering from pre-election panic, you’re not alone. When you model calm behavior to them and make suggestions to help them stay in the right frame of mind, you act as a valued counselor and help them get through this chaotic time. Want more information on acting as a counselor for your clients? Take our Evolved Advisor course.