/ by Don Connelly / Presentation Skills / 0 comments
Undoubtedly, you are familiar with the theme: You have a prospect in front of you with a clear objective. After gathering all the facts and probing them on why it’s important to them to achieve the goal, you present an iron-clad solution that checks all their boxes, throughout which they nod in agreement. You lay out the steps to get started and ask them for their approval to move forward. When they shift back in their seats, you know what’s coming—the pause, the hesitancy, and the anxiety over making a decision, leading to the standard, “We’d like to think about it.”
After addressing their concerns, walking them through how your solution helps them achieve their objective, once again with approving nods, they again shift in their seats and confide that they just don’t think it’s a good time to start investing.
That’s a very good sign—a strong indication you’ve done your job—up to this point. But your job is not complete until your prospects take action to improve their situation. All they need now is a reassuring nudge. All they might need is some perspective—some time perspective.
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How to Educate Clients About the Importance of Investing Beyond Their 401(k)
/ by Don Connelly / Investing Wisdom / 0 comments
For most people, there’s little to think about when it comes to making contributions to their 401k plans. They enjoy reduced current taxes, deferred taxes on account earnings, and, for most, a matching contribution from their employer. That’s a huge incentive to contribute as much of their earnings as possible—up to $23,000 in 2024, and those over 50 can add $7,000 in annual catch-up contributions.
But is maxing out 401k contributions really the best retirement savings strategy for your clients?
While deferred taxation in a 401k is great for capital accumulation, they will owe ordinary income taxes on their withdrawals, impacting their cash flow in a critical life stage. Many retirees are shocked by the amount of taxes they owe on their retirement income.
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6 Essential Investment Tenets to Instill in Your Clients for 2024
/ by Don Connelly / Investing Wisdom / 0 comments
The stock market has taken investors on another wild rollercoaster in recent years. The market recovered from a bear market in 2022, and after a solid up year in 2023, there’s bound to be another one at some point. Going into 2024, the market will keep investors guessing, which is why helping your client maintain a long-term perspective is essential.
We can’t know what stocks will do today, next week, or next month. But we know that, over the long term, stocks will continue their century-long advance. Reacting to short-term swings in the market means moving in and out of the market at the wrong times, locking in permanent losses, and often missing out on the biggest gains in the market.
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Overcoming Information Overload: What Advisors Can Do to Help Their Clients
/ by Don Connelly / Best Practices / 0 comments
Living in the digital world, with its instantaneous access to information, has made us smarter and more empowered. In many ways, it has leveled the playing field for clients who now have access to much of the same information once only available to investment professionals. Information is so highly valued that it is churned out 24/7, accessible on any number of devices people carry around. For clients especially, this should be a good thing, right?
The barrage of headlines and hype around market events often leads to behavioral mistakes, like following the panicky herd over the cliff during a market selloff or frantically trying to buy into the market after a massive rally. Studies show it is the primary reason why investors consistently underperform the market.
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Use the Perspective of Time to Move Your Prospects to Action
/ by Don Connelly / Presentation Skills / 0 comments
Undoubtedly, you are familiar with the theme: You have a prospect in front of you with a clear objective. After gathering all the facts and probing them on why it’s important to them to achieve the goal, you present an iron-clad solution that checks all their boxes, throughout which they nod in agreement. You lay out the steps to get started and ask them for their approval to move forward. When they shift back in their seats, you know what’s coming—the pause, the hesitancy, and the anxiety over making a decision, leading to the standard, “We’d like to think about it.”
After addressing their concerns, walking them through how your solution helps them achieve their objective, once again with approving nods, they again shift in their seats and confide that they just don’t think it’s a good time to start investing.
That’s a very good sign—a strong indication you’ve done your job—up to this point. But your job is not complete until your prospects take action to improve their situation. All they need now is a reassuring nudge. All they might need is some perspective—some time perspective.
Read more
How Financial Advisors Should Manage Emotional Clients
/ by Don Connelly / Managing the Relationship / 0 comments
People aren’t rational. We’re all creatures of emotion. Good salespeople bear that in mind. Whatever your training and education, as financial advisors, we’re not engineers. We’re not technicians. Not in the sales interview.
We deal with people first.
Not numbers. Not machines.
Advisors who understand this are going to do better than advisors who don’t.
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A Reminder: The Trend Is Your Friend
/ by Don Connelly / Investing Wisdom / 0 comments
I get asked a lot if I coach Advisors and the answer is “No, I don’t coach. I remind.” Literally. I think teaching is showing someone how to do a job. Coaching them is showing them how to get better. I think you get better by going backwards, by going back to the basics, so let me give you the most basic investing thought I can give you.
Watch the video or read the transcript below to learn the most basic investing thought and why the trend is your friend.
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Sacrificing Instant Gratification
/ by Don Connelly / Best Practices / 0 comments
I was talking with an advisor in Beverly Hills and she asked me a question. She actually made an observation, but it was in the form of a question. She said to me that she finds it a bit odd that financial success is a function of delayed gratification in a world that insists on instant gratification. Do I have any thoughts about that? And the answer is ‘Yes, I do!”
Listen to this audio episode or read the transcript below to learn what Don Connelly thinks about sacrificing instant gratification.
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How to Prepare Yourself for Market Corrections
/ by Don Connelly / Best Practices / 0 comments
Stocks will edge higher, sometimes for prolonged periods of time, but this should never give rise to complacency. Because there’s always a ‘bear market’ waiting just around the corner.
Don’t get caught out when the markets start to fall. Prepare yourself in advance, both for your own peace of mind – and so you’re ready to reassure clients that there’s no reason to panic.
Here are some things you can do to make sure you’re in command when market corrections take place.
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4 Misconceptions about Market Volatility Your Clients Need to Be Aware of
/ by Don Connelly / Investing Wisdom / 0 comments
As a financial advisor it’s your responsibility to get your clients to stick to their financial plan for the long term. This means you’ll need to change any pre-conceived notions they may have about market volatility. In particular, you need to get across that volatility does not equate to risk or loss.
Here are some common misconceptions about market volatility your clients may have and how to address them.
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5 Ways to Reduce Risk
/ by Don Connelly / Best Practices / 0 comments
I want to talk about reducing risk. I believe in my heart to not invest money is to go broke safely. You simply can’t save enough for retirement. Bertrand Russell said, ‘to conquer fear is the beginning of wisdom’. All clients are afraid of investing; they are afraid of losing money. In order to trust you with their money, clients have to conquer or at least control their fear.
Watch the video or read the transcript below to learn how to address their concern about risk and explain you can reduce risk.
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