Uncertainty and volatility in financial markets have lead to increased stress and anxiety among investors, particularly those in the all-important retirement and pre-retirement age groups. Advisors can find it difficult to work with clients who are overwhelmed by the unpredictability of markets that seem to be lurching from one crisis to another; these clients may be unable to ignore short-term volatility in favor of long-term strategies and may disregard financial advice.


However, these are the types of investors who may benefit the most from financial advice from professionals. This article will give financial advisor some tips on helping high-anxiety clients cut through the noise and see the path towards a successful financial future.

Help Clients Focus On The Big Picture

One of the most important things an advisor can do is help their clients understand what their current and future needs are and how they can be served by investing. For most clients, the most important and immediate need is saving and investing for retirement. Many of these clients have high anxiety about whether or not they have saved enough and whether they can afford to retire. Helping these clients understand what their personal retirement dreams look like and how much they will cost can be the first step in allaying those fears.

A common criticism of the financial services industry is that advisors and brokers are too focused on delivering solutions (in the form of investments and strategies) and don’t focus enough on helping their clients understand the problem first.

By helping your clients put the pieces of their personal financial puzzle together, you may build the trust necessary to sell them on a strategy.

Put Negative News Into Perspective

Many high-anxiety clients read the news and fill their heads with negative headlines about the latest financial boondoggles. While it can be frustrating and stressful to spend valuable time countering this negative news, focusing on the positives and having some credible third-party materials can train them to look beyond the headlines. Advisors can stay ahead of their clients by understanding their needs and stressors and routinely sending them information. For example, many unsophisticated muni bond investors panicked at the news out of Detroit and Puerto Rico, without understanding that the affected bonds are drops in the bucket compared to the total size of the muni bond market.

Knowing how to counter negative information is key to helping your clients over the bumps and potholes that come with today’s financial territory. While you may not be able to provide the certitude and stability that your clients crave, you can certainly help them put events into perspective and understand that there are opportunities even in the volatility.

Be the Expert Your Clients Need

Successful advisors understand that they need to focus on building quality, trust-based relationships with clients instead of just managing portfolios. Investors have a lot of choices in where to put their money; advisors need to become the trusted experts that their clients turn to in times of need and uncertainty. Getting to know your clients means understanding the parts of their life that cause them stress. Some clients have aging parents and may need help managing their parents’ affairs; an advisor who can connect them with an expert will earn their gratitude and trust. Others may have children who are leaving the nest and could benefit from lessons on starting adulthood on the right financial track. One of the benefits of partnering with other experts is that you can keep an increasing amount of business in-house and control the experience that your clients have with other service providers.