May 8, 2017 / by Don Connelly / Investing Wisdom / 0 comments
Despite regular and sometimes frightening dips markets continue to rise incrementally over time, continually setting new highs. The problem is that many clients disbelieve this; they panic when the market temporarily falls. As their financial advisor, it’s your job to keep them on track.
You need to get them over their short-termism and make them see that their focus should be on 20, 30 or 40 years from now – not on this afternoon or next week.
Use all the tactics at your disposal to illustrate that investing is a marathon not a sprint.
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Put Investing in Terms That Clients Can Understand
June 26, 2017 / by Don Connelly / Investing Wisdom / 0 comments
Everyone knows that cars go down in value. That’s just the way it is. No matter what you pay for a car, and no matter how carefully you look after it, it’s going to be worth a lot less than you paid for it. It’s never going to bounce back in value, but car owners are okay with that. They are pre-conditioned to the loss. However, clients don’t see their investments this way. They think investments are only supposed to go one way – up. When investments go down, clients feel they have lost money, even if they have not sold out. They will take a hard loss on a car and not bat an eye, yet they can’t stomach a paper loss in their portfolios.
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Remind Your Clients Investing Is a Marathon
May 8, 2017 / by Don Connelly / Investing Wisdom / 0 comments
Despite regular and sometimes frightening dips markets continue to rise incrementally over time, continually setting new highs. The problem is that many clients disbelieve this; they panic when the market temporarily falls. As their financial advisor, it’s your job to keep them on track.
You need to get them over their short-termism and make them see that their focus should be on 20, 30 or 40 years from now – not on this afternoon or next week.
Use all the tactics at your disposal to illustrate that investing is a marathon not a sprint.
Read more
Convincing Your Clients to Sacrifice for a Reward They Can’t Visualize
December 8, 2014 / by Don Connelly / Best Practices / 0 comments
I am convinced the hardest thing in the world to sell is advice, especially when the reward for following said advice is so far down the road it can’t be visualized. “Trust me” is an understatement.
Convincing others to settle for delayed gratification is a challenge you face every day.
You must establish such a high level of trust with people that they allow themselves to be helped. You have to make them comfortable enough to tell you their goals and their dreams. You have to enable them to see themselves attaining those goals.
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