Is market volatility impacting advisors’ big picture view?
In this challenging environment, what should advisors focus on?Certainly, the recent DOL rule has the potential to affect all aspects of how advisors manage their businesses. But other key advisory challenges, such as succession planning, managing the transfer of wealth, and competition from robo-advisors should receive more of an advisor’s attention. We suggest that advisors look at the bigger picture and evaluate the sustainability of their business model—a habit top advisors develop to identify key success metrics and maximize resources.
What should advisors do to address investor concerns about volatility?We encourage advisors to focus their client relationships on goals-based planning and solutions. The benefit of this emphasis is that it allows the advisor to anchor both the client perspective as well as the advisor’s value proposition on the client’s progress toward goals. Over time, the client can become conditioned to focus on the appropriate benchmark, goal-achievement, rather than the short-term volatility in the markets that don’t always register a material impact on their goal progress.
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