/ by Don Connelly / Storytelling, analogies and power phrases / 0 comments
Obviously, the stock market’s volatile and you’re going to encounter volatility your entire career. It’s the normal part of the market. Even though volatility is normal, it makes clients very nervous. Fear is a bigger emotion than greed.
One of the challenges for you in volatile markets is that clients can slip into a behavior called anchoring. When clients give you a specific amount of money, that becomes the anchor amount of their portfolio. They refer back to that initial amount when evaluating any ups and down in value. Let’s say hypothetically that a $100,000 portfolio falls in value to $90.000. Right away, they think to themselves, “Oh, it’s broken.” Something’s wrong.”
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Three Analogies to Use in Volatile Markets
/ by Don Connelly / Storytelling, analogies and power phrases / 0 comments
Obviously, the stock market’s volatile and you’re going to encounter volatility your entire career. It’s the normal part of the market. Even though volatility is normal, it makes clients very nervous. Fear is a bigger emotion than greed.
One of the challenges for you in volatile markets is that clients can slip into a behavior called anchoring. When clients give you a specific amount of money, that becomes the anchor amount of their portfolio. They refer back to that initial amount when evaluating any ups and down in value. Let’s say hypothetically that a $100,000 portfolio falls in value to $90.000. Right away, they think to themselves, “Oh, it’s broken.” Something’s wrong.”
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Explaining the Nature of the Relationship (Acapulco Cliff Divers Analogy)
/ by Don Connelly / Managing the Relationship / 0 comments
“Mr. and Mrs. Client, I want to give you a word of caution in the event we experience volatility and turbulence. Investing money can and often does feel counterintuitive. There will be times when I urge you to add money to your account when the market is going down. That’s not going to feel right to you even though that’s exactly the time we should be adding to your account. It’s important that you understand why I would do that. May I tell you a story?
Watch this video or read the transcript below, adapted from the video, to learn a great story and analogy to help cement the relationship with a client.
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Educate Clients about Market Volatility so They Can Confidently Stick to the Plan
/ by Diana Marinova / Best Practices, Connelly Corner / 0 comments
Happy New Year from all of us at Don Connelly & Associates! Hopefully everyone will enjoy good health during the new year, achieving great success both personally and professionally.
As promised, this week we’re posting the second part of the recap blog post, covering two more popular topics our community of Advisors was most interested in during 2020 – market volatility and how to communicate with prospects and clients about it. We’ll also share a few stories and analogies you can use to convince clients to stick to the plan, no matter the market conditions.
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Every Financial Advisor Needs to Tell Great Stories
/ by Don Connelly / Storytelling, analogies and power phrases / 0 comments
Human beings have an innate desire to tell and listen to stories. Good stories grab the attention and inspire people to act, which is why storytelling should be an essential tool in your armory. If you become a great storyteller, prospects and clients will leave your office remembering both you and your message.
Stories are also a great way to help make the unfamiliar familiar – they promote the understanding of complex issues. Plus, they’re effective at creating an emotional bond between storyteller and listener.
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3 Analogies on Long-Term Investing to Use with Clients
/ by Don Connelly / Investing Wisdom, Storytelling, analogies and power phrases / 0 comments
Today, I’d like to talk about the long term. You know that I like visuals; I like props; I like things that talk in mom-and-dad language. So I’ll share three analogies you can use with prospects and clients to help them commit to the long-term nature of investing.
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